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White House Press Briefing; Obama Pushing for Stricter Auto Emissions Standards

Aired January 26, 2009 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I think there's any number of clean energy jobs that can drive not only our path towards energy independence, but also a path towards creating jobs.

QUESTION: Robert, the president wants bipartisan support for his economic package. House Republicans came here on Friday and expressed concerns about the bill, on tax policy and other matters, so two questions. First, specifically what changes is the president willing to make, if any, to accommodate the Republicans' concerns and also, how many Republican votes, in your view, would constitute bipartisan support? Half of all Republicans voting for it, a third, a tenth, what is the level at which you can claim bipartisan support?

GIBBS: Well, let me take that part first. We went through any series of hypothetical situations on this, I think both Thursday and Friday. I'm not going to prejudge an artificial limit one way or the other, and I think it would be dangerous at any given point to start looking at a committee vote or a vote on this or that. I will wait until we get to the end process on this.

Getting back to the meetings you talked about. The president got a letter last week from Republicans asking him to come talk about their proposals. I think on Wednesday, they came to the White House on Friday , the president, as I told you all on Friday, will go to Capitol Hill tomorrow and speak separately to both the House and the Senate caucuses, again to get input from them on what should be part of the bill.

There are already provisions in this bill relating to net operating loss tax cuts and other small business tax cuts that are directly related to suggestions that Republicans have given the economic team, the president of the United States, and other members of Congress that are now part of where we are now on an economic recovery and reinvestment plan.

As I said, this is a long and winding road and it will go through this legislative process for a few more weeks before something hopefully gets soon to the president's desk. The president is very serious about this. I think the jobs numbers today underscore, or the job announcements today, underscore the necessity that Washington not respond to the latest crisis simply by doing what Washington always does best and does most frequently, and that is get into too much of a back and forth and have important issues that the American people are concerned about become a political football. That's why the president is willing and eager to go first to have Republican leaders and Democratic leaders here, now to go talk only with Republican leaders tomorrow to seek their input.

We hope that this is a process that will continue until the president has -- I'm sorry, until the bill goes through Congress and the president has something he can sign.

QUESTION: Would you describe tomorrow as a negotiating session or how is it different from Friday's session?

GIBBS: I think we might need more numbers on our side if it's a negotiation.

QUESTION: What's the goal?

GIBBS: Yeah. What's the goal? The goal is to seek their input.

QUESTION: What do you want to come out of it?

GIBBS: He wants to hear their ideas. If there are good ideas and I think he assumes there will be, that we will look at those ideas, that those ideas will go through a process in Congress, they will be debated and voted on. I worked in Congress some on and off for years. Many of you probably have covered Congress more than I have worked there. But certainly, this is a process that is - originally I think there was some talk there was going to be a bill introduction on Wednesday and bill passage on Friday. This now is a process that's going through multiple committees. There will be amendments to the bill. This is a process that is ongoing.

The president seeks input from Democrats and Republicans, and I think because of that bipartisan dialogue, we'll create a better economic plan for the American people when all is said and done.

QUESTION: Robert, I want to talk to you about the al-Shihiri case. How much of a cautionary tale does the president find in a person released from Guantanamo in 2007, went through a sort of program to take the terrorist out of him, and he becomes part of a plot in Yemen that bombs a U.S. embassy. As he is considering what is clearly represented to the American people a more lenient approach to detention, releases than the Bush administration. How concerned is he, or whatever?

GIBBS: Well, let's not do whatever. If you want to rephrase that part of your question, I'll let you do that.

QUESTION: A different standard from the Bush administration, evaluating those to be dealt with by --

GIBBS: Well, let me deal with the answer to the question because - I'd - we took a lot of questions on this last Thursday. Why don't you have answers to all these questions, right? The answers to these questions are that a prudent review process will ultimately be put in place through these executive orders to determine exactly who is there, to determine their profile. "The Post" had a story this weekend that mentioned that not everybody has a case file. Those case files and information are in different places. And a prudent process will be put in place to make prudent decisions. I think there are admonitions of the al-Shihiri case. I think that is why you see, despite some criticism, this administration going through a deliberative process to ensure the American people are safer. That's the charge he gave to his team and I think despite some criticism of not having all the answers, the criticism is largely unfounded because what we've done is put into place a process to answer those questions on the front end, rather than on the back end.

QUESTION: Does it raise any doubts that no matter how good the process, you may not be able to effectively process these people in a way that continues to guarantee the American people's safety, whether it's here, or in posting overseas?

GIBBS: Well, the president has put in place what he believes is the strongest process to protect the American people, to protect our values, to protect the men and women that fight every day for our freedom. He has confidence in that process. I think there are certainly examples of why a process has been and is need and certainly the one you mention is -- I think is a good case for ensuring that that process be done in a deliberative and prudent way.

QUESTION: When the president said I won, what did he mean by that? He also told Republicans if you allow Rush Limbaugh to affect debate, nothing gets done in this town. What did he mean by those two these statements?

GIBBS: I think the second is largely self-explanatory.

QUESTION: He's live on the air right now.

GIBBS: Tell him I said, hi.

The first one and I think I've had this conversation. I think Rahm has had this conversation with a few of you. There were discussions about the exact composition of tax cuts, different types of tax cuts, the president ran on a series of tax cuts that are -- some of which are and some of which aren't in the recovery and reinvestment plan. Republicans had other tax cuts and ideas. The president believes that the reason that he ran on these tax cuts, he believes this is the single best series of tax cuts to stimulate the economy, to put money into the pockets of middle-class Americans that have watched their wages decline over and over for the past several years.

There was a debate about what would constitute exactly those tax cuts and the president said that he felt confident with the tax cuts that he had run on, that the people had weighed in on what they thought might be a good way to stimulate the economy. He said he won and the next thing that happened is everybody laughed. So this wasn't cowboy diplomacy. This was, I think, a rather lighthearted moment in a meeting that he was pleased to host in order to have Democrats and Republicans talk extensively about their ideas for getting this economy moving again.

QUESTION: Following up on the previous question, what is his mindset when he goes up there to see the Republicans? You say he's seeking input, but is it more than that? There's a steady drumbeat coming from some Republicans, Boehner, Cantor, McCain, there needs to be significant changes in this thing if he will get the kind of Republican support he wants. Is he just seeking input, is he just open-minded, or is he going up there to saying, I'm ready to make serious changes here to get you guys on board?

GIBBS: I think he's certainly open-minded and he's certainly energetic about doing it. I think he and his economic team continue to talk about ways that -- anyway that can be used to improve the package. We don't have pride of authorship. We understand that this is a process of give and take in order to produce what the president believes is the strongest plan to get the economy going again.

So, you know, I think he's anxious to do this. And again, I think there's a very deliberative process whereby these ideas will certainly be discussed with the president and that we'll go through the process of being -- some of which will go through the process of being debated and voted on. I think the president believes that's the best way to get the strongest package to the American people.

QUESTION: Is he willing to make significant changes if that is what it takes to get the Republicans on board?

GIBBS: We'll see what he hears tomorrow.

QUESTION: Yes, Robert, on the banking, you just mentioned the additional $350 billion will be spent differently. You know, the Hill appears to be bracing for a second request. How close are you guys to making a second request, or are you going to wait until the $350 billion is entirely disbursed?

GIBBS: Again, let me go back to the question I think Chuck asked, which is, I think financial stability, financial regulation, and additional measures to deal with foreclosure and bankruptcy are all things that the economic team are working on. And that they will get a decision on from the president of the United States. I don't want to prejudge what the parameters might be, or the decisions that might ultimately be made. The president said he would do everything in his power to ensure that the financial system doesn't collapse. That's certainly what he's prepared to do.

QUESTION: So, without prejudging, is there a second package even in the works?

GIBBS: There's a series of proposals to be put in front of the president in order to address the financial stability of our economy -- Peter.

QUESTION: Does the president believe there's a sincere attempt on the Republicans' part to negotiate this in good faith? Their proposal relies very heavily on tax cuts, little if any on direct spending. Is there common ground here? Can Republicans be accommodated or is this to some degree kabuki theater we are seeing here?

QUESTION: I think the president is genuinely serious about this. I don't think he would have had leaders come down on Friday or go up for several hours tomorrow on Capitol Hill if he wasn't genuinely sincere about hearing their cares and concerns. The president put forward, with his economic team, a series of principles and a framework that combines both tax cuts for families, tax cuts for small businesses. I think $1 out of every $6 in there right now is tax cuts for businesses; but also, direct spending to create jobs, to create private sector jobs.

I think the president believes that through that, we have a balance that he feels will save or create three to four million jobs and get the economy moving again. I think the president's often said there's not one single thing that will get -- that any group can do to get the economy moving as a whole, or we would likely have done that already, but a series of mechanisms along with some of the proposals that will still come to the president's desk from his team. But the president believes that we've struck, at least to this point, a pretty good balance. And that we need some -- we're going to need some direct spending in order to create those jobs.

I was asked last week about monetary policy. We fired most the bullets in that gun, and now we are at a point where we need a fiscal stimulus and that's what the president set out to do. Laura?

QUESTION: Thank you. I heard both you and the president talk about the urgency of moving on these environmental matters. My question is whether you are also concerned about the impact that that may have on the domestic automakers and whether because of that concern, you're considering any direct aid, for instance, when he was in the Senate, Mr. Obama sponsored the health care for hybrids bill. I'm wondering if that kind of idea is still on the table or anything else.

GIBBS: I think the president wants to look through that. Obviously, we care deeply about the life and health of the auto industry - and parts suppliers. We'll hear more this week, I'm sure, in the news as we go through about financial troubles as it relates to parts suppliers, and payments, and things like that. But I think many of you again heard the president talk about this during the campaign. We need to take some swift action but whether it was a proposal in the Senate or speech that he gave in Detroit, he coupled that with help for the auto industry. I think he understands that that's likely to take place.

I think it's important, too, as we talk about -- I talked extensively about the fuel mileage standards, you know, the second executive order, or the first one, I don't know the order. I guess you haven't gotten the e-mail, so I don't know.

The waiver as it relates to California, as most of you know, California has an exemption, the Clean Air Act, to deal with problems largely unique to a state of that size and dealing with some of its pollution problems. They asked for a waiver and the waiver was denied by the previous administration's EPA in 2007. What the president did today was start a process to instruct the EPA not to do something, but to start a process to re-evaluate. That he believes that principles of sound judgment and sound science should come ahead of the dictum of the president of the United States in directing an agency to do one thing or another.

But even in that process, you will hear from all the stake holders. You'll hear from California and the other states that want to mimic what California's proposed. And you'll hear from the auto industry. I think what ultimately will be come up with is something that moves along the twin goals of ensuring a strong manufacturing sector while at the same time ensuring that we take the necessary steps to reduce our dependence on foreign oil.

QUESTION: But given that there's already been millions of dollars committed to the auto industry just last month, does the Obama administration believed that more money is needed to help them?

GIBBS: Obviously there are statutory deadlines coming up as it relates to the auto industry, later in February, that I don't want to get far ahead of.

QUESTION: I mean specifically tied to this.

GIBBS: Right. I'll wait until we get a little farther into the process of the auto industry. Helen?

QUESTION: Why is the president sending more troops --wants to send more troops to Afghanistan to kill people?

GIBBS: In the campaign the president talked about the fact that we have largely taken our eye off the ball in Afghanistan and moved direct resources to Iran -- sorry, to Iraq, to fight there. We have seen in that intervening time a significant deterioration in the situation in Afghanistan, and along the border. I think the president has said that many of the people are the same people that planned terror attacks in this country, are alive and well, likely in those hills, planning more.

QUESTION: How do you know that?

GIBBS: That's told to me and many of the American people through intelligence reports and good reporting. The president has started a process with Secretary Gates, with the chair of the Joint Chiefs of Staff, with military commanders in the individual countries of Iraq and Afghanistan, as well as the wider region, to evaluate our posture as it relates to Afghanistan. He said during the campaign that we ought to move additional troops to Afghanistan.

QUESTION: Why?

GIBBS: Because we have a very dangerous situation there. Because we've got, as I said, terrorists that planned horrific acts here in 2001.

QUESTION: You think they'll come here and -

GIBBS: Likely planning again. We are going to ensure the safety of the American people and make sure that Afghanistan doesn't deteriorate any further.

Yes, Sir.

QUESTION: Does the president feel that it's possible he can reduce the amount of spending in the stimulus bill? A lot of Republicans are talking about less spending. He started at $775, total, now you're up to $825.

GIBBS: He talked about a range -- we started with -- well, I think many, many, many months ago, we started, some started with a range of about $300. The range I think we talked about was -- there was a $100 billion range.

QUESTION: Will you come down on the number is what I'm asking.

GIBBS: I think Dr. Summers spoke to this number yesterday on "Meet The Press". That he feels the range of funding that we have now is an appropriate range, both an overall number and in order to get the economy moving again. You know, we can tinker under the hood with some of the specifics, but I think right now, the broad range is something -- is a number he feels comfortable with.

QUESTION: It's not something that's negotiable with Republicans at this point?

GIBBS: I think you've seen many economists say we need more. Some people have said we need less. Something tells me ending up somewhere in between is probably the right area.

QUESTION: Robert, On TARP you've said several times now you are going to ensure the money is actually used to lend. Can you go a little bit further on that? Is your thinking tending to the encourage side or the require side?

GIBBS: Again, I don't want to get ahead of the economic team. But suffice to say the reports today, and not as - the reports today were empirical. I think the evidence that we had previously was what you suspected was reported today, and that is a lot of places that are receiving these funds aren't using them to unclog the financial system and get credit and capital flowing to businesses and families.

QUESTION: They haven't decided yet what tool you need to use to get that lending to happen?

None of those final decisions have been made. Understanding, though, that as we begin to use that money, that we will do this in a way that's markedly different than the way we've done it in the past.

QUESTION: Just one more thing about the stimulus. Is he committed to defending the proportion of tax cuts versus spending in this package? In other words, the other day when Peter Orszag sent that letter he said he concluded it was 75 percent spend out, in a year and a half, and that included the tax cuts, that's how he got the 75 percent?

GIBBS: Right, right.

QUESTION: Does that mean that you are committed to fighting to keep that proportion of tax cuts as a minimum in the package?

GIBBS: Without getting into some of the push and pull of the numbers, let me state clearly what Peter said. I think that's what -- that's why the administration believes strongly that the initial CBO report, that looked at a very small amount of the stimulus bill at a point in the process that we weren't in when the report was released, and that is that at a minimum, 75 percent of that money will be spent out over an 18-month period of time.

That's what the president feels is at a level comfortable with moving that money out the door, and getting this economy moving again. You know, the numbers inside of those I think mean less than the promise to get whatever that proportion is out the door quickly for either projects, small businesses, or families, to get some life injected back into the economy.

QUESTION: As he tries to get Republican support, I mean, he's not - you're not stating that the tax cuts in there are stimulative, and they need to be in there, in order to have the effect that you want. Is he committed to defending --

GIBBS: We're definitely - We definitely believe that those tax cuts are stimulative. Yes.

QUESTION: But is he committed to defending the proportion of tax cuts that you now have in the package? Is that a minimum for you?

GIBBS: I think he will get a chance to both defend and discuss tomorrow with the Republicans what exactly that is. And I think he looks forward, as I said earlier, to doing that, and to doing it in a way that gets the American people the type of package that we need to get the economy moving.

Chris?

QUESTION: Robert, on the announcement this morning, does the president consult with former Vice President Gore at all in shaping his plan. And is there an official or unofficial role for the former vice president in this idea?

GIBBS: I don't have anything on any discussions particularly with former Vice President Gore. I think some of the announcements shaped today were shaped today and I'm sure former vice president has always been part of longer discussions relating to energy independence and climate change. The president ran on a package that increased fuel economy standards.

As I said earlier, this wasn't just something he did in the Senate. This was a speech that he did in Detroit in front of the auto companies, relating to that. I think he's talked about the need to ensure that science and fact are followed rather than political ideology. I think that's why he believes the EPA reconsidering the decision that was made is one -- is a process that is right to do.

Ken? QUESTION: I wonder, on Iraq, if you could characterize the response you're getting from the military so far. Particularly the implementers and architects of the current policy towards the 16-month plan, particularly General Petraeus. I mean, how are they reacting now that he's in office and this is the policy they developed themselves?

GIBBS: Well, as I talked about last week, the process began I think last Wednesday in the situation room with the vice president, national security advisor, Joint Chiefs, commander of Central Command, General Petraeus, where the president outlined that new mission for Iraq. The process is ongoing, as I talked to Helen about. The president and the secretary of Defense have outlined a process, at some point in the next few days -originally it was going to be yesterday, but the secretary has something else that intrudes on tomorrow. But the next step in that process will be going to meet directly with commanders and planners at the Pentagon.

We'll also sit down with General McKiernan to discuss specifically Afghanistan. The charge related to Iraq is as I said here before, which is to remove our combat brigades responsibly and safely. To ensure that it's done in a way that doesn't put them into increased harm, that puts the onus and responsibility on the Iraqis to take some control over the security and political situation in their country. But to do so in a way that seeks direct input from those commanders, and that only through that entire process, and after that entire process is done, will we -- will the president of the United States make a final decision as it relates to Iraq, Afghanistan and those things.

QUESTION: Robert, in the effort to reduce dependence on foreign oil, does the president believe or support expanded production domestically of oil?

GIBBS: He said that during the campaign, yes.

QUESTION: And he stands by that.

GIBBS: Yes, he does.

April?

QUESTION: Robert, is it realistic for the number 1 million green jobs to be out there and consumers are not opting for solar and wind power because they're saying it's too costly and the benefits are not for decades to come?

GIBBS: Again, the president visited projects throughout the campaign. We visited a project a week and a half ago in Ohio. Ohio is a state that I think many of you have seen about and read about in terms of the economic devastation that we've seen throughout the country, has hit extremely hard in a place like Ohio. We visited a company that lo and behold, had actually hired workers that week because of an increased demand.

The president believes that the price of oil and the price of energy is not likely to stay at the level it is now. Wasn't long ago that we were all paying $4 for a gallon of gas, or I remember driving to the airport in Chicago and it was between $4.50 and $4.60. I don't think it will stay where it is long. We can make the investments necessary and meet the demand in a growing economy for clean energy that reduces that dependence on foreign oil, while at the same time creates a million new clean energy jobs. I think those are -- it's not only a worthy goal, the president believes that's a goal that can and will be met.

Thanks, guys.

(END LIVE FEED)

BETTY NGUYEN, CNN ANCHOR, CNN NEWSROOM: We have been listening to Press Secretary Robert Gibbs speaking at this daily White House media briefing there.

Talked a lot about the -- all right. Actually, it's not over just yet. We're going to take another listen.

(BEGIN LIVE FEED)

GIBBS: I will endeavor to, one, fix the e-mail system.

(LAUGHTER)

And two, if I can't do it audibly, today, that we will certainly send out an e-mail for guidance. I know the biggest event tomorrow will be his trip to Capitol Hill.

QUESTION: What time is that?

GIBBS: I believe he leaves here at noon. I think he's up there --

QUESTION: Is it four separate meetings or two?

GIBBS: It is two separate meetings, as I understand it.

QUESTION: The Senate Republican Caucus, the House Republican Caucus.

GIBBS: I think the House is first, if I'm not mistaken, and then we go to the Senate side.

QUESTION: Not the Democratic Caucus?

GIBBS: No, just the Republican Caucuses.

(CROSS TALK)

QUESTION: (UNINTELLIGIBLE)

GIBBS: We have a statement again, there's only one e-mail system at the White House at a time and unfortunately it's not working. I will get that out to you (INAUDIBLE) good way to end. Thank you. QUESTION: Do you continue to stay ahead of the Geithner vote? There has been some jest but also a seriousness that if Wesley Snipes had been nominated secretary of the Treasury he wouldn't be in jail right now. Just wondering ahead of the Geithner vote --

GIBBS: I can't imagine the number of prospective answers that's currently going through my mind. I think it is safe to say --

QUESTION: Is the president asking the IRS to be more lenient to all Americans in the future when they say I didn't know but I'm sorry?

GIBBS: Let me -- wow. This is one of those questions that can certainly get me in trouble. The Secretary-Designate Geithner, who I believe in a few hours we will be able to call Secretary Geithner because of a strong bipartisan vote in the Senate, admitted that he made honest mistakes that could and should have been avoided. He made amends by paying the back taxes and the interest that he owes. The president also believes that he has a unique experience, unique intelligence and a unique background to tackle the economic crises that we face right now as a country and throughout the world, that he will be a tremendous leader to our economic team and somebody that I think Americans will value having on their side as we try to turn this economy around and get people working again. We look forward to that vote happening, to having a strong bipartisan record, on record with a strong bipartisan vote tonight and if it's done in the time we think it is, we may have -- we may go swear in a new secretary of Treasury soon. Thanks, guys.

BETTY NGUYEN, CNN ANCHOR, NEWSROOM: All right. They tried to fire off a few more questions but it is over. Press secretary Robert Gibbs spending a lot of time today talking about the economy, obviously. One thing he said is the use of the second $350 billion will be different than the first amount and they're going to be addressing the foreclosure situation. He went on to talk about the president's push for a new fuel efficiency and emissions standards and what that means for the auto industry. We're going to be delving more into these issues right here in the CNN NEWSROOM.

Seven days into the Obama administration, issue number one means one thing. That being jobs. Today alone, Home Depot, Caterpillar, Sprint Nextel and General Motors announced thousands more job layoffs and a survey of business economists sees no end in sight. The president says these are quote, extraordinary times, calling for swift and extraordinary action. Well, in particular, he wants Congress to pass his $825 billion recovery and reinvestment plan. It's mostly reinvestment, translation, spending. It also includes $275 billion in tax cuts. All of it's geared toward saving or creating as many as four million jobs. CNN's Suzanne Malveaux is watching the lobbying from her post at the west wing. Suzanne, does this thing sell itself or are there some serious concerns here?

SUZANNE MALVEAUX, CNN CORRESPONDENT: There are some serious concerns Betty. And obviously the president actually has to sell this package. Earlier today, he was in the east room and he talked about those thousands of jobs that are expected to be lost in the next couple months when it comes to Home Depot, when it comes to Sprint and Caterpillar, essentially saying that he believes he needs this money, this economic stimulus package, to create or save these jobs and what he's also trying to do is tie this into the idea that saving energy and using renewable sources of energy also creates these so-called green jobs.

So what you hear the president saying earlier today is that there are important things that have to take place on the environmental front. One of them he said, was the auto emissions standards to allow some states, California and 13 others, to potentially go beyond what is required of Federal law to have stricter auto emissions standards. This was something that California Governor Arnold Schwarzenegger had asked President Bush to be allowed to do. It requires a waiver by the Environmental Protection Agency. President Bush said that was not going to happen. It would be too confusing to have these states with different emissions rules. Well, we heard President Obama earlier today saying he thinks that the EPA should reconsider that decision, reconsider granting that waiver, because he thinks that ultimately, it is going to help with the environment. Take a listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The days of Washington dragging its heels are over. My administration will not deny facts. We will be guided by them. We cannot afford to pass the buck or push the burden on to the states. That's why I'm directing the Environmental Protection Agency to immediately review the denial of the California waiver request and determine the best way forward.

(END VIDEO CLIP)

MALVEAUX: So Betty, there is a controversy over what is the best way forward. It was ironic when you heard the press secretary Robert Gibbs talking about the state of Ohio and how difficult things are for folks there and the economy, the economic situation. Well, the senator from Ohio, George Voinovich earlier today released this statement. He said, I am fearful that today's action will begin the process of setting the American auto industry back even further. The Federal government should not be piling on an industry already hurting in a time like this. Obviously looking at Obama's environmental plan and saying look, there's just too much pressure on these auto makers to begin with in terms of their fuel efficiency standards, trying to meet what's already on the books, so there is a real controversy here. Betty, it is going to be a tough sell for President Obama. That is why you're going to see him tomorrow on the home turf of the Republicans, both House and Senate side, essentially saying this is what I need in this huge economic stimulus package. This is how it's related to energy. This is how it's related to security. This is how it's related to jobs.

NGUYEN: And we'll see what kind of support he gets, Suzanne Malveaux joining us live. Thank you, Suzanne.

Well, hitting main street today, tens of thousands of new job cuts. Companies like Caterpillar, Pfizer and Home Depot are handing out pink slips. Susan Lisovicz is at the New York Stock Exchange with all these details. It seems like there's more grim news every day.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right Betty. It really is not your imagination, because right now, we are in the throes of earning season. This is when companies, public companies, show us their quarterly results and when the quarterly results are as weak as they are, we're expecting a sixth quarterly decline for companies in the S&P 500. We don't see that very often at all, thankfully. They have to take painful measures so by our count, more than 50,000 job cuts have been announced today and earnings, a big reason why.

Among them reporting, Caterpillar reporting lower quarterly earnings for the fourth quarter, said it was whip-sawed by the recession, in particular in the last quarter. It actually reported record sales for the year, but the global recession really did it in. The company says there's no doubt that this year will be difficult as well, so it's cutting 20,000 jobs. Over at Pfizer, the drug giant announcing about 8,000 job cuts, at the same time said quarterly profits, that's year over year, plunged 90 percent.

But it does go the other way as well Betty. As we talked about in the last hour, McDonald's reporting 5 percent sales increase here in the U.S., nice sales overseas as well. So it's opening 1,000 new restaurants here in the U.S. and worldwide. McDonald's shares are doing nothing. Unfortunately that nice rally we saw for the morning session has fizzled. The Dow is down just four points right now. The NASDAQ Composite hanging in there, up two points. Betty.

NGUYEN: So it seems like it's survival of the fittest on a corporate scale here, but really, it's more than just that Susan, because people who do have jobs still have those jobs. They're losing benefits.

LISOVICZ: No question about it. It's one of the reasons why we talk about things like are your wages keeping up with expenses. It's not only job cuts that are happening, that we're seeing right now. Sprint, for instance, among a growing number of companies suspending its 401(k) match program this year and its tuition reimbursement program. Caterpillar is slashing executive pay. It's one thing -- I know it's very painful for all of us, I think we're all affected by this one way or another. Remember, this is a cyclical thing. Caterpillar pointed out today in its quarterly earnings, this is an 84-year old company that survived the great depression, a world war and many recessions, and Caterpillar says it's a question of when, not if, the economy recovers. It's going to benefit from all those roads, all the infrastructure that's being talked about for the stimulus program, as well as eventually the housing market will return. It will return Betty.

NGUYEN: At some point, hopefully sooner than later. Susan Lisovicz joining us live, thank you Susan.

LISOVICZ: You're welcome.

NGUYEN: Ahead this hour, more on these layoffs that just keep coming. Plus, pink slip 101. Don't panic. You want to plan for it. Gerri Willis has some great tips for you. (COMMERCIAL BREAK)

NGUYEN: It is a grim day in the history of Illinois politics and the governor isn't sticking around to watch. If you were watching CNN last hour, you saw Illinois lawmakers opened an impeachment trial that could and probably will drive Rod Blagojevich from office. Meanwhile though, Blagojevich is making the media rounds in New York, but our Susan Roesgen is hard at work in Springfield.

SUSAN ROESGEN, CNN CORRESPONDENT: Behind me, the Illinois state senate is meeting to decide whether or not to kick Governor Blagojevich out of office. That would be the last step in these impeachment proceedings. The state house has already impeached the governor and again state senate has to decide whether to actually remove him from office. But Governor Blagojevich is not here. He is making the rounds of the television talk shows, including CNN's "Larry King Live" later tonight. The governor's case is that he does not believe he can get a fair shake here in Springfield, Illinois. He thinks that this senate trial, as it's called, is a sham. He says that he does not believe that he would get a fair hearing under his constitutional rights and he says that he owes it to the people of Illinois to stay where he is.

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GOV. ROD BLAGOJEVICH, (D) ILLINOIS: I'm not going to violate my constitutional oath of office. I swore on the holy bible that I would support the constitution of the United States and the state of Illinois. To participate in an unconstitutional process that denies fundamental due process and is a violation of the sixth amendment right to bring witnesses in to confront your accusers is to violate my constitutional oath of office. That's what they're doing. I can't participate in that. And I would rather let them throw me out on principle than allow them to get away with some phony process that is undermining the will of the people. Give me a chance to call witnesses and I'll show I did nothing wrong.

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ROESGEN: The truth is, the governor can call witnesses. He just can't call any witnesses that might be related to the criminal case against him. Now, we do expect the state senate here to go ahead and vote to kick the governor out of office, but then the consequences could be much more serious for the governor. He is still facing the actual criminal case. Indictments are expected in April. Then he would go to a trial and if he is found guilty of these various corruption charges, including the charge that he tried to sell Barack Obama's Senate seat, then Governor Rod Blagojevich could spend several years in prison. Susan Roesgen, CNN, Springfield, Illinois.

NGUYEN: Don't forget, the Blagojevich media tour takes him this evening to "Larry King Live." He is taking your calls. That's at 9:00 p.m. Eastern right here on CNN.

(COMMERCIAL BREAK) NGUYEN: It seems the layoff flood gates really opened up today., Caterpillar, Sprint, GM, Home Depot all announcing job cuts. Home Depot will be laying off 7,000 people, mostly by closing all 34 of its Expo design centers. The company says those upscale stores have never really done well. That's why they have to go. Our Brooke Baldwin is at an Expo design center in Atlanta and given the stores' performance, I mean is this much of a surprise?

BROOKE BALDWIN, CNN CORRESPONDENT: Not according to Home Depot's CEO, Betty. He has said even in the past during the housing boom, these sorts of higher-end interior design stores owned by Home Depot have not fared particularly well. This store here in Atlanta is one of 34 of these Home Depot Expo stores that will be closing its doors in the next two months. That announcement came out just this morning, according to the world's largest home improvement retailer. They will be shutting 34 of these kinds of stores, a handful of other types of stores. That comes to about 5,000 job cuts. Add to that, to get that 7,000 mark that you mentioned, 2,000 other non-store employee cuts, 500 of those work at the corporate headquarters here in Atlanta, a grand total of 7,000. That translates roughly into about a 2 percent reduction of the company's overall work force. It does not affect, there's at least some silver lining here, does not affect customer service positions.

Why is this happening? Credit crisis, the housing economic bust. All of that translating into the economy and a need -- a necessary yet difficult need, according to Frank Blake, the CEO, that this had to happen today. I want to read you a statement sort of off the question Betty he sort you asked me off the top here pertaining to how the stores have fared in the past. He says even during the recent housing boom, it was not a strong business, referring specifically to these Expo stores. It has weakened significantly as the demand for big ticket design and decor projects has declined in the current economic environment.

So what about the store employees? We have been out here since fairly early this morning Betty and we talked to a couple folks who headed in. Home Depot tells me that they've been trying to keep everyone in the loop over conference calls the last couple of days, but some of the folks I talked to this morning said they were just learning the news either from us or from some of their co-workers that they would be out of a job come April here. At least Home Depot is offering a two-month severance package among a couple other perks. Bottom line, these folks Betty are out of a job come early April.

NGUYEN: Tough times, all right, Brooke, thank you so much for joining us live. We do appreciate it.

All these layoffs have touched virtually every industry from Microsoft to Starbucks and now Home Depot. So what if you're next? What do you do if you're handed a pink slip? Gerri Willis has your survival guide. She joins us now live. So Gerri, what's the first move that you need to make if you are indeed unfortunately laid off?

GERRI WILLIS, CNN CORRESPONDENT: The first thing you have to do is file for unemployment benefits. The sooner you do it, the sooner you'll get your money. You probably doesn't even have to leave the couch to do it. Call or go online to file. Find out contact info for your unemployment office at servicelocator.org. You will be asked addresses and dates you worked for your employer and remember, to be eligible, you can't voluntarily quit or lose your job due to misconduct.

Now typically you have to work a base period of four of the five last calendar quarters. It generally takes anywhere from two weeks the a month to get benefits once you file. And some states don't even start benefits until your second week of being unemployed. Benefits have been extended to 46 weeks for most workers and 59 weeks for people living in high unemployment rate states. Used to be you only got 26. They really upped that now.

Health care coverage is another area you want to pay attention to. If you lose coverage, you may be able to get on your spouse's plan even though open enrollment is long over. This is by far the cheapest of the options but you have to do this within 30 days of losing your coverage. If you can't get coverage under special enrollment, consider COBRA. This is also a Federally mandated program. It allows folks who were laid off to continue their existing company coverage. Trouble is, you pay the full cost of the program. Benefits last for about 18 months and your family will qualify, too, but again, you have to do it fast. You only have 60 days to elect the coverage.

NGUYEN: For those now needing to find a job, a lot of times they don't have the skills for some of the jobs that are available. Where do you go for that retraining?

WILLIS: If you do find yourself out of work, it may be because your industry is downsizing permanently. In that case, you want to get retraining. The Department of Labor sponsors a website called careeronestop.org. You can find a list of industries with the largest employment and those projected to grow the most quickly. You'll also be able to find employment and wage info. Check out another website here, careervoyages.gov, too. AARP has a great website. This organization has a senior community service employment program. I know it's a mouthful, but it's free of charge and if you're over 55 and meet income requirements, you can get a lot of help. They will assess job skills, interests, connect you with training, help you update your resume and provide you with job leads with employers, so a lot of free help there. Just reach out, pick up the telephone, go online and don't forget to tune in to "Your Bottom Line" this Saturday at 9:30 a.m. Eastern on CNN. We will answer your money questions, telling you what to make of the news of the week and how best to protect yourself in these tough times. That's a new time. Saturday, 9:30 Eastern.

NGUYEN: All right, Gerri Willis as always, we do appreciate it. Thank you.

WILLIS: Thank you Betty.

NGUYEN: And there's much more to come right here on CNN.

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NGUYEN: After a six-year-old boy was killed at a monster truck rally this month, many in the industry stood up and defended its safety record.

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UNIDENTIFIED FEMALE: This is our 16th year and I wish I had a big piece of wood to knock on right now, but we have not had an incident besides the gal slipping in the aisle way at another location has been all.

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NGUYEN: Well, tragically, the day after promoter George Eisenhart (ph) gave that interview, he was killed at one of his own shows. Somehow, he walked into the path of one of the big trucks and the driver, a close friend, never saw him. The driver is said to be devastated. Police say he won't face any charges.

Three workers from the Indiana Department of Transportation could not believe what they found in the rim of an old tire. More than $130,000 in cold, hard cash, just lying there on the side of interstate 70. They turned the money in. Police dogs smelled drugs on the money.

And in Iceland, I-reporters are sharing images of local turmoil that resulted today in the collapse of the coalition government. This video is from (INAUDIBLE) is from a peaceful protest over the weekend. It was a much different scene last Wednesday when the anger spilled on to the streets over soaring prices and rising unemployment. The global financial crisis has hit the island nation very hard. First its national banks collapsed and the country needed an international bailout. Well, now officials are trying to form a new government to rule until elections in May. That's going to do it for us. But the news keeps on coming. The NEWSROOM with Rick Sanchez continues.

RICK SANCHEZ, CNN ANCHOR, NEWSROOM: Which Bush policy is Barack Obama undoing today? I'm Rick Sanchez. Let's cut right to the change. It was foreign policy, domestic and ethics changes last week. Today, with one swipe of a pen, President Obama changes environmental policy in the United States. He's telling states they can set their own auto emissions, something George Bush told them not to do, specifically.