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Stimulus: Party Line Vote; Blagojevich to Give Closing Statement; New Focus on Afghan War

Aired January 29, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Thursday, January 29th, and here are the top stories this hour in the CNN NEWSROOM.

Now the Senate gets a shot at the stimulus. The plan breezes through the House, but where are the Republicans?

Four days into his impeachment trial, and now he wants to speak? Will Illinois Governor Rod Blagojevich have his say in front of state lawmakers today?

Don't forget winter. An unforgiving mix of ice and snow clenches two dozen states. More than a million homes, schools and businesses are without electricity or heat today.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

President Obama gets what he wanted, but not the way he wanted it. The House approves an $819 billion stimulus plan with no Republican support. The president hoping for more bipartisan backing in the Senate.

After signing a bill on equal pay last hour, Mr. Obama turns his attention to the economy. He receives his daily economic briefing this hour. Later, he meets with Vice President Biden and Treasury Secretary Timothy Geithner.

We have reports from White House Correspondent Suzanne Malveaux and Congressional Correspondent Brianna Keilar.

Suzanne, let's start with you.

What is the president doing to push forward this stimulus plan in the Senate?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Tony, he's actually going to be trying to do many of the things he had done before, which is reaching out to Democrats and Republicans alike. I spoke with the press secretary, Robert Gibbs, who said that the president was disappointed about what had happened here.

Obviously, he put forward a lot of political capital. He got directly involved, personally involved in trying to craft, shape the legislation by picking up the phone, calling Democrats, asking them to take certain provisions out, and reaching out in this kind of listening session with Republicans on the Hill. Ultimately, it was not good enough to actually get a single Republican on board here.

So what is going to happen? Robert Gibbs says he's going to be doing much of the same thing. He is going to be trying to convince the Republicans and the Democrats that there is some space, there's some wiggle room to find common ground.

Take a listen.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, PRESS SECRETARY: What we need to do is make sure that we get a plan that works. This president reached out to House Republicans. He reached out to House Democrats. He'll do the same thing in the Senate.

I think it's important for the American people to know that just because of one vote, doesn't mean that this president isn't going to try to -- isn't going to stop trying to change the way Washington works, and stop trying to reach out to Democrats and Republicans.

(END VIDEO CLIP)

MALVEAUX: And Tony, the feeling here is that he is going to try to shape the tone in Washington, that it's going to be different. It was right after that -- well, the success, obviously, of the legislation, but the defeat from the Republicans that he held a cocktail party here at the White House, invited all those to participate. And one congressman, John Boehner, saying that, you know, perhaps he was the one who was the skunk at the garden party, but he would show up, and he would smile, nevertheless.

And Robert Gibbs says, look, this is going to be a new time. He has plenty of political capital left to bring these sides together, and try to, at the very least, get them to talk to each other socially, to listen, to engage, and perhaps find some common ground on the Senate side -- Tony.

HARRIS: Just keep talking. All right.

White House Correspondent Suzanne Malveaux for us.

And let's take you to the White House now and the State Dining Room. The first lady, Michelle Obama, making brief remarks. And taking the microphone right now, Lilly Ledbetter. Let's listen to her, and then we'll explain her story in just a moment.

LILLY LEDBETTER, FMR. GOODYEAR FACTORY WORKER: I fell in love with those people campaigning with them. I have to tell you that. And that's not on my prepared speech.

(LAUGHTER)

But I have to tell you, I love (INAUDIBLE) and the president, and I just believe in them and their work so very much.

But thank you very much. Words cannot begin to describe how honored and humbled I feel today.

When I filed my claim against Goodyear with the EEOC 10 years ago, never, never did I imagine the path that it would lead me down. I have spent the past two years since the Supreme Court's decision in my case fighting for equal pay for this day. But to watch you sign a bill that bears my name, the bill that will help women and others fight pay discrimination in the workplace, is truly overwhelming.

Goodyear will never have to pay me what it cheated me out of. In fact, I will never see a cent from my case. But with the passage of the president's signature today, I have an even richer reward.

I know that my daughter...

(APPLAUSE)

HARRIS: Lilly Ledbetter speaking there, the woman who fought the fight for equal pay, for equal work for women for years, better than 10 years, taking her fight all the way to the Supreme Court. The culmination, really, of that fight, the Lilly Ledbetter Fair Pay Act, which was passed by Congress and signed into law by the president just last hour.

The full Senate will likely take up the president's stimulus plan on Monday. Look for senators to tinker with the version passed by the House last night.

CNN's Brianna Keilar, there she is at Capitol Hill this morning.

And Brianna, what are some of the differences between the House and Senate bills?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, and they have already tinkered with it a little bit, Tony. We know one definite difference is going to be that the Senate Finance Committee added $70 billion to patch the alternative minimum tax. That, of course, is that tax that was put in place to get some of those top earners years ago who weren't paying taxes. And then it wasn't indexed for inflation, so then all these middle class families found themselves stuck paying this tax.

So $70 billion for that, Tony. But otherwise, it is a bit of a moving target at this point.

Republicans have said one of the big issues that they want to see some changes on is housing, on foreclosure relief. We don't know exactly how that's going to fit into their demands, but we do know they're making some of the same demands that Republicans on the House side made. More tax cuts they want, and less spending.

This is Mitch McConnell, top Republican in the Senate, on the floor last hour.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R), MINORITY LEADER: We look forward to offering amendments to improve this critical legislation and move it back to the package President Obama originally proposed -- 40 percent tax relief, no wasteful spending, and a bipartisan approach.

(END VIDEO CLIP)

KEILAR: And remember, here on the Senate side, Democrats do need to win over a couple of Republicans to get this through the Senate. But I spoke with one Senate Democratic leadership aide who said the expectation is they will be able to do that. The question, Tony, how bipartisan exactly is it going to be? Because President Obama has really set the bar pretty high on that.

HARRIS: Well, Brianna, it sounds like we're, at least now, not hearing some of the same complaints, specifically, that we heard from House Republicans. House Republicans were complaining that they felt they were being force-fed the stimulus package.

Do senators have that same complaint, or are they more engaged in the crafting process? It sounds like they are.

KEILAR: Well, when you talk with top aides for the top Republican and the top Democrat, they appear to be discussing between Democrats and Republicans in the Senate. Things are a little bit more bipartisan here on the Senate side, Tony, but we're really waiting. We've kind of got our ear open.

There has been so much attention paid to the House side over the last week, this is really just getting started here as they take this up next week. So it's a little bit of a moving target, as I said.

HARRIS: Yes. OK.

On Capitol Hill, Brianna Keilar for us.

Brianna, thank you.

You know, after a whirlwind media tour protesting the hearing, Illinois Governor Rod Blagojevich will get an opportunity, and that is the breaking news here, will get an opportunity to offer what he is describing as a closing argument in his own impeachment trial.

Let's get to CNN's Susan Roesgen, who is covering the story for us in Chicago.

And the breaking development here, Susan, is that the motion has passed, and the governor will be allowed to offer up that closing argument.

SUSAN ROESGEN, CNN CORRESPONDENT: And be careful what you wish for, Tony, because talk about walking into the lion's den here -- not only has he angered the state Senate but not showing up, and by calling the whole impeachment trial a sham, and then by blabbing to everybody else and all these news shows about how he's not getting fair treatment, he has also said that these state senators are specifically trying to get rid of him. And the state House, as well, because they plan to raise taxes. And he says he stands in the way of state lawmakers raising taxes.

So he has infuriated this group, and yet he is still going to come. They still want to hear him. I don't think it will make a bit of difference.

I think he will give a good speech, he is a very good speaker. But then there is going to be a rebuttal from the state Senate impeachment prosecutor. And then I believe the vote is going to come out, and he's going to be out of office. And Lieutenant Governor Patrick Quinn will take over tonight.

HARRIS: Well, Susan, why the change here? He has stayed away, he has criticized the hearings. Why the rush to speak now?

ROESGEN: Well, because it's actually a smart move, Tony. If he had agreed to participate and to defend himself early on, he would have had to take questions from the state senators.

HARRIS: Yes.

ROESGEN: He would have been cross-examined in this trial. This way, by saying he's just going to do his closing argument, he has up to an hour and a half to make a speech, basically, without any questions being taken. And so it's actually a smart move, and I'm a little surprised that the state Senate would allow him to do this, but as I've said before, I believe that their curiosity is greater right now than their anger. And so they want to say, OK, go ahead and talk to us, and then we'll still vote you out.

HARRIS: This could go as long as 90 minutes?

ROESGEN: Yes. He could speak for 90 minutes.

HARRIS: Oh my.

ROESGEN: And then, again, the impeachment trial prosecutor only has 30 minutes to rebut him.

HARRIS: OK. All right.

Susan Roesgen for us.

Susan, appreciate it. Thank you.

Three new economic reports to crunch this morning, and all are gloomy reports, and record-breakers, in fact.

First, unemployment. The number of Americans filing for first-time jobless benefits jumped to 588,000 last week.

Continuing claims closing in on five million. That is the highest since records began in 1967. Orders for big-ticket items like washers and dryers fell for the fifth straight month in December for all of 2008. Durables fell almost 6 percent, the second largest decline on record.

And new home sales for December fell to the slowest pace on record. New home sales down almost 15 percent from November.

So what's in the stimulus bill passed last night by the House that has Republicans smelling pork, smelling bacon?

Here's CNN's Jim Acosta.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): If you listen to some Republicans, and even some Democrats, the president's stimulus plan is a $1 trillion bridge to nowhere.

REP. JAMES COOPER (D), TENNESSEE: There are a lot of old congressional bulls here who put all their wish lists, their projects in this bill.

ACOSTA: But one politician's pet project is another lawmaker's worthy program.

REP. ERIC MASSA (D), NEW YORK: There is not a single earmark in this bill.

ACOSTA: It all depends on your definition of the word "earmark." Members of Congress are squabbling over $335 million in funding for education on sexually transmitted diseases and $650 million for digital TV coupons. A growing number of Republicans and Democrats say measures like those don't create jobs.

UNIDENTIFIED MALE: A stimulus bill should do just that.

ACOSTA: Counting the stimulus plan as pork-free, President Obama is urging Americans to track the spending at a new government Web site, recovery.gov, but note what the site says: "The plan can only be tracked after it's passed."

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: Most of the money that we're investing as part of this plan will get out the door immediately.

ACOSTA: Technically, the Congressional Budget Office estimates most of the money will be spent by September of 2010.

STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: It all depends on your definition of immediate. You know, I mean, essentially, is immediate what most people think, which is tomorrow? No.

ACOSTA: Government watchdogs say while much of the stimulus spending may not meet the criteria of an earmark or pet project, there are agencies like the Army Corps of Engineers that are seeing their budgets double, with no mention how the money should be spent.

ELLIS: Ask the people in New Orleans what they think about some of the Corps of Engineers' projects, particularly the people who live behind the levees.

ACOSTA: The White House acknowledged its plan is no silver bullet. GIBBS: I don't think we're going to wake up on January 1, 2011, you know, like Dorothy in "The Wizard of Oz," and we're going to go from black and white to color.

ACOSTA (on camera): As for that spending on STD prevention, the Democratic rationale is that healthier Americans will be more productive. And those millions for digital television coupons, the hope is that money will go to new call centers explaining how the technology works.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HARRIS: A new commander in chief and a new approach to the war on terror. Is a big troop buildup in Afghanistan the way to go? I will ask a Harvard professor and a CNN reporter on the ground.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Banning Blackwater. The private security firm will no longer be providing protection for U.S. diplomats in Iraq, Baghdad, and not renewing the company's operating license. An Iraqi official tells CNN the decision was mainly due to a deadly shooting incident in September of 2007. Blackwater guards opened fire at a crowded intersection, killing 17 people. The company said the guards were responding to an attack, but an Iraqi investigation concluded the guards fired without provocation.

The commander in chief focusing on Afghanistan. He calls it the central front in the war on terror. The president making plans to pull troops out of Iraq and send more troops to the Afghan war front.

(BEGIN VIDEO CLIP)

OBAMA: We're going to have some difficult decisions that we're going to have to make surrounding Iraq, and Afghanistan most immediately. Obviously, our efforts to continue to go after extremist organizations that would do harm to the homeland is uppermost on our minds. I have every confidence that our military is going to do their job, and I am going to make sure that the civilian side of the ledger does its job to support what they are doing.

(END VIDEO CLIP)

HARRIS: Is President Obama on the right course?

Scholar, author and activist Rory Stewart of Harvard University's Kennedy School of Government joins me from Cambridge, Massachusetts. And from Kabul, Afghanistan, CNN's Atia Abawi.

Atia, let's start with you. Help us sort of establish a foundation, a framework for our discussion here this morning. Tell me why Afghanistan really matters for each and every person watching this program right now.

ATIA ABAWI, CNN CORRESPONDENT: Well, Afghanistan is where the war on terror began in 2001. Obviously, it shifted to Iraq. And Obama has made a -- President Obama has made a promise to bring it back into Afghanistan. And we're seeing that with the promise to back a plan to send up to 30,000 additional troops into the country.

This plan to send the 30,000 additional troops, talking to the Afghan people, they're not in favor of that. They see that as more civilian deaths. You've got to understand, Tony, that on their evening newscast, what they see is civilian deaths on a nightly basis. So they see more troops, more Afghan deaths -- Tony.

HARRIS: Well, Rory, let me come to you.

The president believes Afghanistan is the central front in fighting terrorists. And again, he is planning to send more troops in the order of 30,000 more to take the fight to the Taliban and to al Qaeda.

What do you think of the plan?

RORY STEWART, KENNEDY SCHOOL OF GOVERNMENT: I think this is dangerous, because when you put troops in, it's very difficult to get the troops out again without appearing to be humiliated or defeated. I believe that the real focus for American foreign policy really at the moment ought to be Pakistan.

That's where most of the terrorists are. That's the most unstable and dangerous part of the region, those tribal areas in western Pakistan. And I'm worried that we're putting too many eggs in the Afghan basket.

HARRIS: That's interesting, Rory. But let me ask you something -- why not control particularly the southern portion of Afghanistan, get a better handle on that area, where the insurgency seems to be growing, and use that as a firmer base for whatever operations you pursue in Pakistan?

STEWART: Well, the answer is that you would need to be certain that that's where the priority was. I guess the reason we're probably going into Afghanistan is that Pakistan seems too complicated and too difficult.

In other words, it's as though you're going into a street, and there is a house with a couple of flames lurking out of one room, and there's another house on fire. And you're deciding to deal with the lesser case, because in this case, Afghanistan is easier than Pakistan. I don't think it's a rational policy. I think it's driven really by a sense of what we cannot do in Pakistan.

HARRIS: Interesting.

Atia, let me come back to you and ask you what life is like for people in Afghanistan. The Afghans -- I mean, all of these years after the Taliban was essentially tossed out of control there, what is life like there for everyday Afghans?

ABAWI: Well, Tony, it's not good. Afghans right now, they're not happy. They're hungry, they're jobless, and they're poor.

The main problem here with Afghan people is poverty and unemployment. That's -- yes, there is this big -- there is a war, it's here. There's a big problem with the war. But for the Afghan people, when you talk to the average Afghan on the street, it's the poverty and it's the unemployment.

(BEGIN VIDEO CLIP)

ABAWI (voice-over): They're gathering drops of diesel spilled by a truck that's crashed. Drops worth at most pennies, collected in the freezing cold.

Men, boys, and even young girls, they'll try to sell the diesel or use it for heat. Anything to survive. They are the poorest of Kabul's poor, but they are far from alone.

At this roundabout, the faces tell the story. Men stand for hours every day waiting for work, any work. Seven years after the Taliban were ejected from Kabul, most people here still live well below the poverty line.

Said Kassem is 25 years old. He says he makes 60 cents a day.

SAID KASSEM, UNEMPLOYED AFGHAN (through translator): Everything is expensive. From the moment Karzai became president, he's been bad luck to the people. Because of unemployment, people turn to drugs. People are running insane. Murders, some are forced to kill, and others to steal.

UNIDENTIFIED MALE: This was the previous lesson we had studied before.

ABAWI: The international labor organization provides training centers in cities in various cities in Afghanistan that teach English and skills. Kais had an education and speaks passable English, but he too has no job.

KAIS AL-RAHMAN, UNEMPLOYED AFGHAN: I wish for my government to help our poor people and to give jobs for all of the people. They make a good (INAUDIBLE) for those people. There are poor people.

ABAWI (on camera): In 2007, the government reported the unemployment rate in Afghanistan at 35 percent. Aid agencies believe that number is rising, which is driving recruitment to criminal gangs and the Taliban.

(voice-over): A problem that may threaten President Obama's determination to forge what he called a hard-earned peace in Afghanistan. His military commanders say the Taliban can only be beaten if poverty and unemployment are also tackled.

Twenty-six-year-old Abdul Basir (ph) says he is beyond desperate. "Life?" he asks. "To be honest, death would be better than this."

(END VIDEOTAPE)

ABAWI: Well, Tony, you heard him say that death would be better than this. This is a gentleman that stands at a roundabout with thousands of other men, looking for one day of work. If a car pulls up to him and says, "Look, I can feed your family for a full year, all you have to do is put on a suicide vest, go into a market and blow yourself up, you can put food on your family's table," what do you think his answer is going to be?

Tony.

HARRIS: OK. Atia, thank you.

Rory, let me come to you with another question here. You may not like the idea of a troop buildup in Afghanistan, but you and I both know that it is likely to happen. So let me put you in the position of making it work.

What are realistic goals for this escalation in Afghanistan? Now, as you know, in testimony before the Senate Armed Services Committee, Defense Secretary Robert Gates actually had this to say about goals...

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: While this will undoubtedly be a long and difficult fight if we can attain what I believe should be among our strategic objectives -- above all, an Afghan people who do not provide a safe haven for al Qaeda, who reject the rule of the Taliban, and support the ill legitimate government they have elected and in which they have a stake.

(END VIDEO CLIP)

HARRIS: Rory, what do you think? Are those reasonable goals, attainable goals, in your estimation?

STEWART: I'm afraid even those goals are quite ambitious.

HARRIS: Wow.

STEWART: I think if we're going to deploy more troops -- and as you say, that's something that's going to happen -- the most constructive way to approach this is to limit our objectives, try not to get ourselves in too much of a mess. There are things that we have done well in Afghanistan, we can continue to do -- agricultural irrigation, roads, electricity, economic development and infrastructure projects.

I think we need to be careful, though, to make sure that if our troops are use at all, they are used to try to develop the capacity of the Afghan army, and not to be drawn into a counterinsurgency fight in the south and east, which probably we're not going to be able to win. So my advice to President Obama would be, let's choose things that we have done well, let's reinforce success. And most importantly of all, let's have a pretty simple mission statement for both the American people, and also for the Afghan people, explaining why we're there, what our national security interests are, and what we're going to be able to deliver the Afghan people efficiently and effectively in return.

HARRIS: Rory Stewart, always good to talk to you. Thanks for your time.

And Atia, as I say to you all of the time in our e-mails together, be safe. Thanks.

And still to come in the NEWSROOM, looking for a new job. Maybe you need a whole new career. Personal Finance Editor Gerri Willis can give you a head start. That is next.

(COMMERCIAL BREAK)

HARRIS: Out of a job? No luck finding a new one? Maybe you need to go back to square one and find a new career. Whoa. Personal finance editor Gerri Willis is here with tips. Gerri, pretty drastic, but these are pretty tough times. How do we know the type of jobs we're actually cut out for?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Tony, you know, it may be a long time since you've seen a guidance counselor, right?

HARRIS: True.

WILLIS: That was a long time in your past. You don't know where to stop -- start, so you have to do some self-assessing on your own. Find out what hobbies or interests or other skills you have that can translate into a new career. There are some free Web sites out there you're really going to want to look at.

If you're over 50 years of age, AARP has a work program that will help you assess your skills. Go to aarp.org and check out jobhuntersbible.com. At this site, you can link your skills to possible occupations and learn what your strongest and weakest skill sets are. The rilelyguide.com also has a number of skill- and career- assessment surveys on its Web site. Great places to go on the Web to get some help.

HARRIS: Any tips for getting your foot in the door? Sometimes that's the most difficult part of all of this.

WILLIS: Well, you know, if you're not sure of the career you're interested in, if it's for you, it will be worth doing some volunteering in the field. Think of it as sort of free education. Plus, you get to do some important networking. You may also consider working part-time or taking some classes in the field to see if it's the right fit.

Finally, check in with your college career office. You may be able to spend a few hours or a few days shadowing folks who have the jobs that you're actually interested in.

HARRIS: Nice. If you found a new career, what's the next step? What then?

WILLIS: Well, before you commit to changing careers, do as much research as you can. Page through the industry journals. Read the posting on association Web sites. Find out what people are talking about, and scan job postings to see if there's enough growth potential.

Keep in mind that a successful career change can take several months or longer to accomplish, especially in this economy. And finally, don't expect to start at the same level you were at in your old job. And, of course, Tony, you know what it is this weekend?

HARRIS: Oh, the big new show for you, "BOTTOM LINE." What's ahead for it?

WILLIS: "YOUR BOTTOM LINE."

HARRIS: "YOUR BOTTOM LINE."

WILLIS: It's all about your -- yes, that's right. 9:30 a.m. Saturday, right here on CNN. I'm going to be talking about how to land your next job, plus what the stimulus package could mean to your wallet. That's "YOUR BOTTOM LINE," Saturdays at 9:30 -- did I say this already? Saturdays at 9:30 a.m. right here on CNN.

HARRIS: I don't think you can say it enough. All right, Gerri, thank you.

WILLIS: My pleasure.

HARRIS: OK. As the most serious credit crisis in decades rocks your finances, CNNmoney.com has some advice and answers. Just check out our Special report, "AMERICA'S MONEY CRISIS." That is at cnnmoney.com.

Republicans unified against the president's massive stimulus plan. Is it principle or politics? Has anything really changed?

(COMMERCIAL BREAK)

HARRIS: OK, it is one of the big stories we're watching this morning. Illinois Governor Rod Blagojevich in Springfield, Illinois now, about to offer up a closing argument during his impeachment trial. He spoke to reporters just a short time ago. Let's have a listen.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey, hey, back off.

GOV. ROD BLAGOJEVICH (D), ILLINOIS: A few words.

UNIDENTIFIED FEMALE: Yes, are you nervous about giving your speech? What are you going to say? Come on, I drove three hours for you. Give me a little, will you?

BLAGOJEVICH: Well, I'm not going to give it up now. UNIDENTIFIED FEMALE: Give us -- are you nervous?

(CROSSTALK)

UNIDENTIFIED FEMALE: So, you're not nervous or worried? Give us a hint as to what you're going to say.

UNIDENTIFIED MALE: What are your feelings?

BLAGOJEVICH: Watch yourself, (INAUDIBLE). Watch the snow.

You guys are -- I mean, I wouldn't mind seeing some of you fall, but not (INAUDIBLE).

UNIDENTIFIED MALE: What are your thoughts? What are your feelings (INAUDIBLE)? You won't give away what you're going to say, but what do you feel?

UNIDENTIFIED MALE: Let him walk.

BLAGOJEVICH: (INAUDIBLE) figure out what I'm going to say. My feelings are, what am I going to say?

UNIDENTIFIED MALE: Are you nervous?

BLAGOJEVICH: No.

UNIDENTIFIED FEMALE: Are you sad?

BLAGOJEVICH: I'm philosophical, and I know the truth of things, and I believe in the righteousness of what I'm about (INAUDIBLE) I every day get up and try to fight for great opportunities for them and protect them. And then I'm hoping I get a fair shot today. You know, and --

UNIDENTIFIED MALE: You talked about what you expect to be the outcome. Is there a feeling of sadness that it could be your last time walking into this building?

BLAGOJEVICH: Well, of course there is. Of course there is. That's life, you know? There are peaks and valleys, and there's ups and downs, and there's, you know, moments of triumph, and there's moments of disappointment.

And there are times when you've -- there are times when you experience great joy. And then there's times of sadness. This is not at all unique to me. And I'm not giving up hope here. I'm going to keep fighting for the people of Illinois and fight and do what's right.

And you know, if given a fair hearing and a fair trial, then the outcome of this will be obvious. The question is whether or not the people of Illinois and the governor they elected twice will be given a fair chance to show that he did nothing wrong.

And so far, not allowing me to bring witnesses in -- and I'm talking about every single witness, named in the criminal complaint. I'm talking about Rahm Emanuel and Senator Durbin and Senator Reid and Senator Menendez and Senator Cullerton (ph) and other leaders, and others who were engaged in it conversations with me on a variety of different things, all appropriate and all legal. I'd like every one of them to testify under oath here at this impeachment trial so I can clear my name and restore the public trust that they have every right to expect from their elected officials.

(END VIDEOTAPE)

HARRIS: OK. There you go. Illinois Governor Rod Blagojevich. And maybe we can turn that scene around again and show you. He's arrived in Springfield, Illinois, and a media crush, as you would expect. We are expecting him to offer up his closing argument in his impeachment trial sometime in the noon Eastern hour. And we will, of course, bring that to you live.

We're going to try to get in as much other news as we can before that begins. Let's turn to business here quickly. You know, through rain, snow and dark of night, but just not in a recession. The U.S. postmaster general is issuing a warning about how often you could be receiving your mail if this economic downturn continues. Susan Lisovicz is at the New York Stock Exchange with more. Good morning, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning, Tony. This one is a real surprise. The U.S. Postal Service is warning it may need to cut delivery by one day to five days a week on the heels of plummeting mail volume and revenue. Federal law mandates the six-day delivery. It's been mandated since the late 1800s, I guess the days of the Pony Express.

But if this downturn continues, it will be virtually impossible to continue that schedule. Postmaster General John Potter telling Congress Wednesday that, given the current environment, the USPS could be facing losses of $6 billion or more this year, after losing nearly $3 billion last year. Tony.

HARRIS: Whoa. Is cutting -- I'm not sure of this, but is cutting the delivery schedule to five days really the best option here, Susan?

LISOVICZ: Well, maybe not for the entire country, Tony. I mean, like, for instance, in rural areas, it costs so much more to operate, you know. Maintaining a six-day schedule in high-volume areas would seem to be much more efficient.

It's also possible that cutting the schedule would continue to affect demand, which in turn would take an even bigger bite out of volume, you know, going to overnight services, e-mail, and obviously that's not ideal, either. The agency has reduced its work force by more than 120,000 employees, since '02 to combat the problem.

And job cuts are something that we're talking about today, as well. Starbucks and AstraZeneca each cutting 6,000 jobs. Kodak is letting up to 4,500 go. Truckmaker Oshkosh is cutting 1,000 positions.

We've got a new read today on new home sales. They fell to their lowest level on record in December. And so, after three days of gains for the Dow, it's giving back. The blue chip average right now down 120 points. The Nasdaq, meanwhile, is down 29 or about 2 percent.

Hey, can I just mention...

HARRIS: Sure, sure.

LISOVICZ: ... a bright spot, Tony? Chick-fil-A, a company that is based in Atlanta, is reporting today its 41st consecutive year of system-wide sales increases.

HARRIS: Wow.

LISOVICZ: Sales increases. Continues to flourish, despite the economy. And this is a chain that for all of its years of existence is closed on Sunday.

HARRIS: Closed on Sundays.

LISOVICZ: The founder is a devout -- or was a devout Baptist, and it remains closed to this day. And they're still doing really well. Just thought I would throw in a bright spot. Based in Atlanta, privately held, not something -- not a stock that you can follow.

HARRIS: And a stalwart here in the food court of the CNN Center in Atlanta, I want to add.

LISOVICZ: Those waffle fries.

HARRIS: That's right. Susan, appreciate it. Good stuff. Thank you.

LISOVICZ: You're welcome.

HARRIS: GOP resistance to the stimulus plan. Here's a question. What's behind it? Republicans say they are returning to their fiscally conservative roots, and they think the stimulus bill goes against those principles. Details now from senior political analyst Bill Schneider.

(BEGIN VIDEOTAPE)

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): With the departure of President Bush, Republicans have a new rallying cry, back to basics. Basic to Republicans is smaller government. They believe they lost in '06 and '08 because they became a me-too party, and the Democrats can play that game better.

REP. ZACH WAMP (R), TENNESSEE: Republicans blew it on spending, but now Democrats are like they're on steroids with spending.

SCHNEIDER: President Obama is making a strong pitch for Republican support, because we're all in this crisis together.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What I think unifies this group is recognition that we are experiencing a unprecedented, perhaps, economic crisis that has to be dealt with and dealt with rapidly.

SCHNEIDER: Most Republicans are balking.

WAMP: We're going to vote no.

SCHNEIDER: They appreciate the president's efforts to reach out to them, but say they don't see that spirit of bipartisanship in the Democratic leadership of Congress.

REP. MIKE PENCE, (R), INDIANA: As grateful as we are for the president's spirit, as I told him personally, House Democrats have completely ignored the president's call for bipartisan cooperation.

SCHNEIDER: They argue the Democratic bill is wrong in principle. And it won't work.

REP. MARSHA BLACKBURN (R), TENNESSEE: The best economic stimulus there is, is a job. And this bill is short on the stimulus that is needed to create that.

SCHNEIDER: Republicans do have an alternative plan.

REP. TOM PRICE (R), GEORGIA: If you allow American families to keep more of their hard-earned money, if you allow businesses the opportunity to create jobs, provide incentives to create jobs, and you decrease spending at the federal level, in fact what you'll do is grow the economy.

SCHNEIDER: But the Republicans don't have the votes to pass their own plan.

(on camera): Some Democrats can say Republicans are irrelevant, so they're being irresponsible. But Republicans are not irrelevant. Sure, President Obama doesn't need Republican votes. But he still wants them. He doesn't want his recovery plan to be seen as partisan. Meanwhile, Republicans don't want to be seen as complicit in a policy that violates their basic principles.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Billions already doled out, billions more in the works, and a promise from the new administration to keep better track of your money. We will talk with Elizabeth Warren of the Financial Bailout Oversight Committee next hour, 12:15 Eastern time.

Waiting for the ice to melt and power to come back on, it could be a while.

(COMMERCIAL BREAK)

HARRIS: You know, it is not often you'll find a pipes and drums band at the center of a political controversy. Cue up the machine here. Let's take a trip to CNN.com's iReport desk and check in with -- at Tyson's corner. Tyson is one of the people helping us run that iReport operation down there. Tyson, good to see you. You know, I saw the story a few days ago, when it broke. And it turned into a bit of of a controversy. So now our iReporters are weighing in.

TYSON WHEATLEY, IREPORT PRODUCER: Yes, that's right. Of course, we're talking about the story of John Coleman, the Ohio drum major who famously was suspended last week for nodding-slash-winking-slash- acknowledging President Obama during the inaugural parade. Now, you know, he since has quit the Cleveland Firefighters' Memorial Pipes and Drums Team, saying that the publicity has basically been just overwhelming for him.

The band now has been inundated with phone calls, e-mails, messages on their own Web site since the story broke on Monday. And this is what the band officials are telling CNN.

And on iReport, people are also weighing in. Jeff Lady -- he's an attorney from Roland (ph) Park, Kansas -- he supports Coleman as a lot of people do on iReport.com. He noticed that the band's Web site had taken down their contact information yesterday. And he had something to say about it.

(BEGIN VIDEO CLIP)

JEFF LADY, IREPORTER: It is really too bad that the Cleveland Firefighters' Memorial Pipes and Drums won't even do the stand-up thing and allow for e-mail or for phone contact for those of us who would like to voice our opinion on the shameful way that they have treated their drum major, John Coleman, simply because he acknowledged our new president. It really is too bad.

I have contacted the Cleveland Firefighters Local. They said they'vee received numerous calls from all over the country, and so I would just say to the pipes and drums band, the corps, do the stand-up thing. Put your phone number or your e-mail back up on your Web site, and let those of us who would like to comment, comment. Because we are here, and we're standing behind John Coleman, and we think it was a pretty cool thing that he acknowledged the president.

(END VIDEO CLIP)

WHEATLEY: So, Tony, in all fairness, you know, this is only one opinion. And a lot of people are coming in support of Coleman. But there are other people that are saying, look, we're supporting the fire department's stance on this. So -- but whatever -- you know, if you have an opinion on this, we want to hear it at ireport.com.

HARRIS: All right. Appreciate it. Tyson, thank you so much.

WHEATLEY: Thank you. Do we have time?

HARRIS: No. We are fresh -- sorry! Sorry! See you tomorrow. You're done!

That massive winter storm system that left a heavy blanket of ice and snow from Texas to Maine has pushed into Canada now. State emergency agencies say at least 17 people were killed.

(insert 1150) TONY HARRIS, CNN ANCHORThat massive winter storm system that left a heavy blanket of ice and snow from Texas to Maine has pushed in to Canada now. State emergency agencies say at least 17 people were killed. The storm turned into a snowmaker by the time it reached New York Wednesday, making travel conditions tricky for drivers. In Arkansas and elsewhere, the storm left an icy mess with trees taking out power lines as they went down. Utility companies say more than a million homes and businesses are in the dark; 352,000 in Arkansas - take a look at this - and more than 500,000 in Kentucky.

(WEATHER REPORT)

HARRIS: Bad guys caught on tape and we will show you all the action.

(COMMERICAL BREAK)

HARRIS: A woman on the move. She led police on a high-speed chase in southern California, driving - yes, you see it here - a U-haul. The chase lasted more than two hours yesterday. It ended in Ventura county when the woman got out of U-haul and tried to get away on foot. Stay with it, Tony. Stay with it. Stay with it. Eventually here you'll see she gets taken down, tackled, wait for it - there! Have some! Authorities say the woman was wanted on two warrants. New charges include possession of a stolen vehicle, recklessly evading police. A lot of people could have been hurt in this and driving under the influence.

HARRIS: Call it the not-so-great escape. Two prisoners in New Zealand get all tangled up - take a look at this - during their get- away attempt. The two were handcuffed together, when they ran into a pole apparently they couldn't decide who would go which way. They slammed into each other and ended up on the ground. Jailers re- arrested them when they were struggling to get up. The bungled escape, all caught on - bang! Right there - caught on tape. Hey, Moe. Hey Larry.

OK, we are waiting to hear - live picture now - from the Illinois governor. His closing argument in his impeachment trial any moment now.

(COMMERICAL BREAK)