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Surviving the Recession; Vying For Votes in Iraq; The Peril of Ice Storm Evacuees; New Political Leadership in Illinois

Aired January 30, 2009 - 11:00   ET

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

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: While our GDP may have grown smaller, it's undiminished when it comes to our innovative spirit, our work ethic, our values, and our resolve and resilience as Americans.

For two years, I traveled across this country. I met thousands of people, hard-working, middle class Americans who shared with me their hopes and their hardships. These are the men and the women who form the backbone of our economy, the most productive workers in the world. They do their jobs; they build the products and provide the services that drive America's prosperity.

These are the folks who approached me on the campaign trail, in union halls and church basements and coffee shops and VFW halls and shop floors, and they told me about jobs lost and homes foreclosed, hours cut, and benefits slashed, the costs of life slowly slipping away and shipping away at the hopes of affording college or a new home or retirement. It's like the American dream in reverse.

These are the families who have, by no faults of their own, been hit hardest as the economy has worsened. They need action. Now.

They need us to pass the American Recovery and Reinvestment Plan, a plan that will save or create more than three million jobs over the next few years, and make investments that will serve our economy for years to come. We intend to double our capacity, generate renewable energy, while redoubling our efforts to use energy more efficiently.

We will rebuild crumbling roads and retrofit aging transit systems and renovate 10,000 schools for our children. We'll bring health care into the 21st century by computerizing medical records, counting -- saving countless lives and billions of dollars.

I am pleased that the House has acted with the urgency necessary in passing this plan. I hope we can strengthen it further in the Senate.

What we can't do is drag our feet or delay much longer. The American people expect us to act, and that's exactly what I intend to do as president of the United States. But passing my plan is not the end; it's just the beginning of what we have to do.

We know we need to create jobs, but not just any jobs. We need to create jobs that sustain families and sustain dreams; jobs in new and growing industries; jobs that don't feel like a dead end, but a way forward and a way up; jobs that will foster a vibrant and growing middle class. Because the strength of our economy can be measured directly by the strength of our middle class.

And that's why I've created the Task Force on Middle Class Working Families. And why I've asked my vice president, Joe Biden, to lead it.

There's no one who brings to bear the same combination of personal experience and substantive expertise. Joe's come a long way and has achieved a great deal, but he has never forgotten his roots as a working class kid from Scranton, Pennsylvania. He has lived the American dream, and lived and worked to make that dream a reality for others.

This task force will bring together my economic advisers and members of my cabinet to focus on policies that will really benefit the middle class. Policies to create jobs that pay well and provide a chance to save; to create jobs in growing fields and train workers to fill them; to ensure that workplaces are safe and fair, as well as flexible for employees juggling the demands of work and family.

And I think I should note that when I talk about the middle class, I'm talking about folks who are currently on the middle class, but also people who aspire to be in the middle class. We're not forgetting the poor. They are going to be front and center, because they too share our American dream. And we're going to make sure that they can get a piece of that American dream if they're willing to work for it.

I also believe that we have to reverse many of the policies towards organized labor that we have seen these last eight years. Policies with which I've sharply disagreed.

I do not view the labor movement as part of the problem. To me, it's part of the solution.

(APPLAUSE)

We need to level the playing field for workers in the unions that represent their interests, because we know that you cannot have a strong middle class without a strong labor movement. We know that strong, vibrant, growing unions can exist side by side with strong, vibrant and growing businesses. This isn't an either/or proposition between the interests of workers and the interests of shareholders. That's the old argument.

The new argument is that the American economy is not and has never been a zero sum game. When workers are prospering, they buy products that make businesses prosper. And we can be competitive and lean and mean and still create a situation where workers are thriving in this country. So I'm going to be signing three executive orders designed to ensure that federal contracts serve taxpayers efficiently and effectively.

One of these orders is going to prevent taxpayer dollars from going to reimburse federal contractors who spend money trying to influence the formation of unions. We will also require that federal contractors inform their employees of their rights under the National Labor Relations Act. Federal labor laws encourage collective bargaining, and employees should know their rights to avoid disruption of federal contracts.

And I'm issuing an order so that qualified employees will be able to keep their jobs, even when a contract changes hands. We shouldn't deprive the government of these workers, who have much so much experience in making government work. And we need to keep our energy focused and our eyes fixed on the real measure of our prosperity, the success of folks that Joe and I have met across this country who are working hard each and every day.

I'm eager to see this task force in action. I'm eager to discuss its findings with Joe Biden, and working with the people in this room. I intend to get this economy on track to create the jobs of the future, and to make sure that the American people can achieve their dreams not just for themselves, but for their children.

So with that, let me introduce our chair of our Middle Class Task Force, my vice president, and the pride of Delaware, Joe Biden.

(APPLAUSE)

JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: Thank you, Mr. President. Thank you, Mr. President, for that generous introduction.

It's a pleasure to see all of you here today as we announce this task force on our -- on the middle class.

Folks, I want to thank the outstanding individuals, many of whom are in this room, members of Congress, members of labor, members of business, interest groups that are here representing nonprofits. I want to thank you all for being here today. It's good to see so many of my friends from -- our friends from organized labor, as well.

Welcome back to the White House.

(APPLAUSE)

You know, one of the things that all of us in this room know is those very leaders, Mr. President, of organized labor have dedicated their lives to the thing that this task force is about, making the lives of working people better. I would argue, there would be no middle class, were there not an organized labor movement that started 150 years ago. And I'm proud that this administration, with your leadership, Mr. President, will be allied in that effort.

And I want to thank you for convening and empowering this task force, Mr. President. In doing so, I think you send a very, very clear signal to everyone in this country who goes to work every day, without expecting a claim or big bonuses. The people that President Teddy Roosevelt referred to as the "doers of deeds," the men and women who teach our children, who protect our neighborhood, who build our homes, staff our hospitals, work on the line, all those people.

To this, the great American middle class, you have simply said, we're on your side again. And it's just -- it's that basic, from my perspective. And so for too many years, we have had a White House that has failed to put the American middle class at the front and center of our economic policies. And even when our economy -- even when our economy was growing, there was a -- and it was very solid ground on which to build, the middle class found itself slipping.

Productivity went up almost 20 percent between 2000 and 2007, yet income for working families fell by $2,000 a year. And now, with our economy struggling, the pain is significantly worse. Trillions of dollars in home equity, retirement savings, college savings, gone. And every day, more and more Americans are losing their jobs. And for many people, the work of a lifetime has literally disappeared. It's cruel, but it's also threatening to sap the spirit of the country.

Mr. President, you said it best in your inaugural address, in my view. You said, and I quote, "A nation cannot prosper long when it favors only the prosperous." Quite simply, a strong middle class, in our view, equals a strong America.

Clearly, our most urgent task is to stabilize the economy, which the president is well on his way to putting in place the building blocks to do that, and to put us on the path to recovery. But on top of this urgent task, though, we have an important long-term task, as well.

We need to make sure that the benefits of the strengthening economy, which we're looking forward to, reach the people responsible for generating that strength. That's why President Obama has asked me to lead this task force, to bring together those cabinet members who have the greatest impact on the well-being of the middle class in our country, as well as seek the opinion and ideas of others in society as to how we can best accomplish these notions.

We'll be looking at everything from access to college at the Department of Education, to business development in the Department of Commerce, to child care and elder care with Health and Human Services, to restoring the balance in the workplace with the Department of Labor, and restoring labor's place with the Department of Labor. And so this task force, I think, reflects a critical insight by President Obama, that we have to bring together the knowledge, the talent, and the skill of the people across the whole range of government to best tackle these problems. And as I said, and invite the private sector to offer the best ideas available to help us do that.

With this task force, we have a single, highly visible group with one single goal -- to raise the living standards of the people who are the backbone of this country, the middle class. Because when they, in fact -- their standard is raised, the poor do better. And, by the way, the wealthy do better, as well. Everyone does better.

So today, with the signing of the president's executive orders, which he is about to sign, we begin the work of the task force. And I want to announce that our executive director will be Dr. Jared Bernstein, a man who has dedicated a substantial portion of his professional career and his writing and studying to the economic issues that most impact on the lives of middle class families. We're also launching a Web site today. The Web site will be astrongmiddleclass.gov. Now, this Web site won't just be a source of information. Hopefully, it will be a place for conversation, as well.

We invite Americans to interact with us and the ideas that they have. It will be a place where people can find out not only what we're doing, but also share their ideas and experiences with us. We'll also be listening to people's stories as we hold meetings all across the country in the -- during the life of this task force as we prepare a final report.

And our first task force meeting will be held in -- on February 27th in Philadelphia. The focus of that meeting will be green jobs, those jobs that pay well, can't be outsourced, and will help us move toward a cleaner, more self-sufficient energy future.

Each month to follow, we will focus on a different concern in a different part of the country -- how to make retirement more secure; child and elder care, how to make it affordable; improving workplace safety; getting the cost of college within reach of the vast majority of the American people; help weary parents juggle family and work; and create jobs for the future. At the end of the day, it will be our responsibility to offer to the president and to the nation the clear and specific steps that we need to take to meet these and other concerns.

This task force, I might add, which coming out of the vice president's office will be a bit unique, will be fully transparent. Totally transparent.

(LAUGHTER)

(APPLAUSE)

We are going to consult -- we are going to consult openly -- openly and publicly, without side groups, who can help us develop the most far-reaching imaginative solutions to help us solve these problems and create the outcome we're looking for. And we'll put all the material from our meetings and any report we produce up on the Web site. None of this will happen behind closed doors.

We want the American people engaged. We want them engaged from the outset.

There are some people who say -- that are somewhat down on the future economic prosperities -- prospects of the country, who say that we have entered an age when only a few people can prosper and everyone else has to fall behind. We do not accept that proposition.

There has never been, and that has never, ever been a part of America's story, at any part in our history. And the president and I are determined that it will not be any part of America's story today.

The American story is one of expanding opportunity and shared prosperity. It's a story about the future. It's never about the past. It's a story in which we put the middle class families that are at the heart of the nation at the heart of our efforts, because it drives everything else.

Where I grew up, as the president referenced, not only in Scranton, but in Wilmington, Delaware, like many, many of you, there are an awful lot of proud women and men who still reside in those neighborhoods. They don't want the government to solve their problem. But at a minimum, they want the government to understand their problem. To understand their problem, be cognizant of the problem.

They just wanted leaders who not only understood their problem, but leaders who would offer them policies that gave them nothing more than a chance. Nothing more than a chance to make it. And I'm not exaggerating when I say that. You all know that. That's all they want, is a chance.

They want leaders like you, Mr. President. They want leaders like those who are gathered here in this room. And they have wanted and want today a White House who is ready to say that the measure of our success will be whether the middle class, once again, shares in the economic success and prosperity of the nation.

And so, Mr. President, I thank you for giving me this responsibility. I look forward to working with the folks in this room and many others. And I also look forward, Mr. President, to you signing these executive orders.

(APPLAUSE)

OBAMA: I'm getting good at this.

(LAUGHTER)

(APPLAUSE)

TONY HARRIS, CNN ANCHOR: And you have been watching President Obama and Vice President Biden announcing the formation of a Middle Class Working Families Task Force. The vice president will lead the initiative to assess how middle class families are doing and find ways to help them. President Obama also signing several executive orders. Supported by labor unions, the directives reverse previous executive orders viewed by critics as anti-union.

You ready? Let's go.

It is Friday, January 30th. Here are the top stories we're following for you in the CNN NEWSROOM.

It's almost as though you stopped buying cold turkey. Fresh numbers this morning bear out the obvious -- the U.S. economy is falling deeper into the hole.

Security clampdown in Iraq. The country votes in provincial elections tomorrow, the first nationwide poll since 2005.

And crews struggle against scenes like this to get the power and heat back on. A million-plus households in the dark from Arkansas to Kentucky. Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

Issue #1, the shrinking economy. New numbers from the Commerce Department today confirm that the economy is stumbling deeper into recession. Gross domestic product plunged 3.8 percent for the fourth quarter, not as bad as analyst predicted, but it is the steepest quarterly decline since 1982.

Still, for all of 2008, can you believe this? The economy actually grew. The rate of expansion, a meager 1.3 percent.

Let's bring in CNN's Susan Lisovicz to drill deeper on these numbers.

Susan, good morning to you.

If you would, put this number into some context for us.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: OK, Tony.

Well, we all knew that the fourth quarter was a real watershed time for the U.S. economy. In the early part of the fourth quarter, mid- September, Lehman Brothers failed. And that seems to be the demarcation point for what was a credit crunch to a credit crisis. It made the situation of a decelerating economy so much worse.

Consumers were already cutting back on spending, energy prices were high, the housing market was in a recession. But this really gave us a second crisis. And what you saw was, for instance, not something that only impacted the U.S. economy, where we saw consumers and businesses ratchet back their spending even more, but you saw the demand for our exports, which had been a bright spot in the economy, which had really saved a lot of our many companies, a lot of the companies we report about every day, really saw a lot of the stuff make it so much worse. And that's when you started to see job cuts accelerate.

And case in point, just this week, Caterpillar, at the early part of the week, announcing it was slashing 20,000 jobs. Today, saying not enough, 2,100 more, because it just has to -- it has to get the demand for its products and the number of employees on the payroll in sync.

That is an advanced look at the fourth quarter GDP. That number will be revised twice more. It could be bettered or it could be worse.

HARRIS: Right.

LISOVICZ: And, of course, what we're seeing in the early part of the first quarter is not good. I think that a lot of the estimates are obviously for a continued contraction in the U.S. economy, which is in the throes of a deep recession. These numbers confirm it all too graphically -- Tony.

HARRIS: I don't even want to think about the first quarter GDP. But we don't, for now.

All right, Susan. Thank you.

LISOVICZ: We're early in the first quarter.

HARRIS: We're early, yes.

LISOVICZ: Things could improve.

HARRIS: Whew. I hope so.

Thanks, Susan.

LISOVICZ: You're welcome.

HARRIS: OK. Los Angeles teachers out of classes and on the streets. They're angry over expected layoffs. Their union thinks as many as 2,300 teachers could lose their jobs this spring. The L.A. school district is facing a half-billion-dollar budget shortfall.

(BEGIN VIDEO CLIP)

PEGGY MENEDEZ BENNETT, LOS ANGELES TEACHER: They've been cutting benefits for years. And they're using this economic downturn as an excuse to take away more. That's what they're doing. They're using this as a scapegoat to take away more.

They didn't cut their pay salaries. It didn't stop them from buying 100 flat screen TVs that are inside this cafeteria right now. They didn't cut anything from their pockets.

Get your hand out of my pocket. That's what I want to say.

I work hard. I work hard. I love my students. I'm not leaving. I'm not leaving without a fight.

(END VIDEO CLIP)

HARRIS: Whoa. Well, California is staring at budget deficit -- this deficit is north of $40 billion, which means less state aid for local school districts. A spokeswoman says Governor Arnold Schwarzenegger has gone to extraordinary lengths to protect education.

So this week's ice storm caused the largest power outage in Kentucky's history. More than half a million customers are without power in that state. Among those in the dark, nearly everyone in the town of Louisville. Utility company LG&E explains the storm took down more than 11,000 power lines.

(BEGIN VIDEO CLIP)

CHRIS HERMANN, LG&E SPOKESMAN: The good news here in LG&E service territory is that we are continuing to make steady progress on the circuit restoration. We had 52 off yesterday at the afternoon update, and we have restored that down to 46. So as we bring the circuits up and the circuits locked (ph) out, that really gives us a chance to start working out towards the ultimate customer.

(END VIDEO CLIP)

HARRIS: LG&E spokesman Chris Hermann warns there may be more outages this weekend as the ice begins to thaw. We will talk to a woman -- her name is Lori Key (ph) -- who is stuck in the storm, in just a couple minutes. But right now, let's get an update on the situation on the ground.

(WEATHER REPORT)

HARRIS: Credit card debt, home mortgages, student loans. Your money, your questions. Personal Finance Editor Gerri Willis has the answers.

(COMMERCIAL BREAK)

HARRIS: Gerri Willis -- you know, a tough economy triggers questions. Personal Finance Editor Gerri Willis is here with some hard-boiled answers.

Gerri, hey, it's good to see you. You wan to get to our first e-mail?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good to see you. Absolutely. Let's go for it.

HARRIS: OK. It is from Mark, who writes, "I found out last week my brother has $53,000 in credit card" -- wow, $53,000 in credit card debt.

WILLIS: Yes.

HARRIS: I had to think about that for a second -- "... on five different cars. He makes $13,000 a year. I am trying to find ways to help, but I don't know where to begin."

WILLIS: Right. Well, you know, you see the problem here, don't you, Tony?

HARRIS: Yes.

WILLIS: Fifty-three thousand in debt? I make $13,000 a year. It's not a pretty picture, is it? This is a tough spot.

Look, the brother here, should talk to a credit counselor at the National Foundation for Credit Counselors first, and their Web site, NFCC.org. And they may be able to put your brother on a debt management plan where he pays back the debts over three to five years. And the good news here, if you do that, they negotiate a lower interest rate and they get rid of penalties. So that's a very big deal.

But the reality here is, he probably can't afford to repay the debt.

HARRIS: Yes.

WILLIS: He may have to file bankruptcy. Luckily, the NFCC can refer him to bankruptcy attorneys. But Tony, this the problem with credit card debt. This is what happens. It spirals out of control. (CROSSTALK)

HARRIS: Yes.

WILLIS: Yes.

HARRIS: It absolutely does.

Gerri, we have a second question from a viewer who wants to remain nameless. Anonymous. As a college student, how should I go about saving for retirement?

WILLIS: Isn't that impressive?

HARRIS: It is. Really is.

WILLIS: I think that's such good news, right? Well, good job thinking about your retirement when you're still so young. You need an income of some sort, though, in order to contribute to an IRA. But the good news is that even if you have a part-time job, hey, you can put 100 percent of your income towards retirement. And even if it's just a summer job, you can contribute 5,000 bucks towards your IRA. With the stock market at low levels now, you're locking in very low prices. You will be sitting pretty when you retire.

HARRIS: I love it.

WILLIS: Hey, Gerri, you know, with so many people laid off just this week, you know, we're hearing about a government website that perhaps can help some of these people. What have you learned about it?

That's right. You know, you can find what jobs out there, where they are, and you can even fill out an application. The website is called usajobs.gov. You're looking at it right now.

Now, listen to this opportunity, Tony, because it's important. The government employees, almost two million people in this country. It's the biggest employer in the country. And in the first half of 2008 alone, the government added over 91,000 jobs. You get the picture here?

HARRIS: Yes. Yes.

WILLIS: The government is a big employer. What kind of jobs do they have? Well, they hire chemists and biologists, doctors, nurses, art appraisers sometimes. And also office managers, personal assistants, engineers - so it's a great place to go. You can get an application, you can find out what kinds of federal jobs are available in your community, because only 12 percent of federal workers actually work in Washington, D.C.

HARRIS: Yes, that's terrific.

All right, Gerri, see you next hour. Thank you.

WILLIS: All right.

HARRIS: And as the most serious credit crisis in decades rocks your finances, cnnmoney.com has some advice and answers. Check out our special report - there it is - "America's Money Crisis." That's at cnnmoney.com.

Democracy in Iraq. The polls open in just 12 hours and we're breaking it down for you - what it means for U.S. troops and what it means for Iraq's independence.

(COMMERCIAL BREAK)

HARRIS: Curfews and closures in Iraq as the country prepares for this weekend's provincial elections. The government has sealed its border with Iran, plus they're closing the city of Basra and ordering a halt to traffic across Baghdad and other major cities. Polls will be open 12 hours from now. More than 14,000 candidates vying for 440 seats.

Our Arwa Damon reports from Baghdad.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Election propaganda is everywhere, even in the sky if you're Baghdad's governor. The streets a labyrinth of concrete walls recollected to stave off violence now plastered with posters and fake promises.

(on camera): This is Fardus Square, and where that green sculpture is where, if you'll remember, Saddam Hussein's statue came infamously tumbling down in 2003, a time when a single Sunni man ruled this entire country. And now, every single part of the square is plastered with election posters from Sunni, Shiia and Kurdish groups. The company is clearing up for provincial elections, because people that come into power are those that will have regional control over basic services and jobs.

(voice-over): The last time Iraqis voted was in 2005. The Sunnis boycotted and the country's political battles were fought with guns. And many Iraqis. Ehad Shihad (ph), didn't understand what their vote really meant. Everyone voted simply according to their sect, he tells us. Now, he says, the lessons he learnt from the last four years is to make an informed decision.

This university graduate wants people in power who can give him a better life. Others are not all that optimistic about change. The faces peering down are still those of strangers. But this time around, Iraqis will be able to vote for a candidate within a party, unlike the previous elections where they could choose only the party.

STEFFAN DE MISTURA, U.N. ENVOY TO IRAQ: In other words, the Iraqis will be able to say who they want, not just parties - names, people - to become accountable.

DAMON: And Iraqis have a vast field to choose from. Printing presses are making a killing, churning out election propaganda. There are more than 400 political groups countrywide, more than 14,000 candidates.

(on camera): Everything is still in the process of being set up. This is an example of what a polling station will look like, once Iraqis have registered. They come here. If they need to, they can double-check the name of their candidate, which list they belong to, cast their vote, fold their ballot up, and then place it into a box like this.

(voice-over): As polling day draws closer, TV stations, just about all of political affiliations, are blasting the airwaves using powerful religious figures, insurgent propaganda, catchy jingles, even the country's prime minister. Nouri al-Maliki has been campaigning heavily for its party's candidates. And many experts are saying, these elections can be viewed as a referendum on his popularity.

DE MISTURA: It is going to be a X-ray of, a photo Polaroid, of what today the Iraqis feel about even within their own ethnic or religious party.

DAMON: And what expectations they have for the future.

(END VIDEOTAPE)

HARRIS: Our Arwa Damon joining us live now from Baghdad.

And Arwa, great to see you. What are the key issues as we drill down on this? The platforms the candidates are campaigning on.

DAMON: Well, Tony, you would have expected it to be security in the past. That, however, is not the focus anymore. What Iraqis really want and what the candidates are out there promising are things like basic services, water and power. Remember, the nation has pretty much been without that, since the U.S.-led invasion in 2003.

Unemployment is also another critical issue. People want jobs. They want to make money, they want to be able to live, they want to be able to put food on the table.

Some of the candidates, though, especially those part of the prime minister's party are running on a platform of law and order, capitalizing on the prime minister's security improvements over the last year, year and a half. But what Iraqis really want to see right now are those basics. Basic services, and jobs.

HARRIS: And Arwa, you mentioned just briefly in the piece, you talked about Sunni participation this time. Why is it so important?

DAMON: Well, Tony, for a number of reasons. First and foremost, the Sunnies boycotted back in 2005, and were largely underrepresented at the provincial level and at the national level as well. And there are analysts that are saying that that was actually a large contributing factor to the sectarian bloodletting that we saw taking place afterwards. And they're saying that these provincial elections could actually reverse that imbalance within Iraq's government and perhaps help move the country towards more sustainable security. There will be more equal representation. Sunnis will feel as if they a stronger voice and therefore, perhaps be less inclined to try to fight out their political battles using other methods.

HARRIS: A real buy-in, a real stake in the country.

Arwa Damon for us in Baghdad.

Arwa, great to see you.

President Obama's been in office for - what? - 11 days? While he is getting down to business, some of you just can't forget the inauguration.

(COMMERCIAL BREAK)

HARRIS: You know, thousands of folks across Kentucky are staying warm in shelters. One of them is Laura Key. I mentioned her at the top of the newscast, and she is on the line with us right now from Litchfield.

And Laura, how are you and your kids - how are you doing? I know you've got two children, you've got a 10-year-old and a 7-year- old. How are you? How are you doing?

LAURA KEY, ICE STORM EVACUEE: Right now, they have just now opened up the gym here at the Grayson County High School, so my little boy is ecstatic that they finally have something to do. To run around and use some of their energy instead of sitting around. My daughter is just hanging out with me here inside the lunchroom, cafeteria.

HARRIS: Boy. My understanding is that the problems started for you and your family actually Wednesday evening. If you would, just sort of talk us through last couple of days for you and your children.

KEY: OK. Well, Wednesday evening, we got home from work and daycare and we were doing good. The electric was on until about 7:30 - oh, Tuesday, I'm sorry, Tuesday evening.

HARRIS: Oh, Tuesday evening. OK.

KEY: Tuesday evening, I'm so sorry. We've been here now for two days, so I've lost my days.

Tuesday evening, I got home from work and daycare, and lights - everything was out in my neighborhood. They came on about 7:30 Central time, and everything was fine. We went to bed around 9:00. The house was good and warm.

Around 4:00 that Wednesday morning, the house was ice-cold again, and I said, oh, no, the power went back out. Therefore, I got a phone call on my cell phone from my mom in Louisville, Kentucky, and she let me know that there was a shelter open at Grayson County at Potter's Hope Ministries. We made it town, fortunately, to Potter's Hope, and stayed there with the rest of the people that had already previously been there that morning due to their power out for four hours.

And the preacher there, brother Wayne Clemens (ph), had gathered everybody in there, they provided lunch for everyone, chairs, cots. They were bringing in bottled water. So we just kind of just sat around amongst other people and talked about maybe what was going to happen.

I had run into actually into my grandmother and my uncle, so I found I had family right there beside me. So, we got word from the preacher that water had been cut off two hours after we got there, and they had to move everybody to the high school here in Grayson County.

HARRIS: Boy. Laura, so folks who, you know, aren't going through this, and that's a pretty significant part of the country, can you tell us what it is like, what the experience has been like for you, since Tuesday evening? Essentially, being in a shelter with your kids. What has that experience been like for you?

KEY: It's something we've never experience's in our whole life. The kids are used to their beds, their TV, their music, and games and toys and since we've been here, we've had three cots lined up together. I did luckily bring plenty of blankets and pillows and staffed animals for them to have with from the house. And pretty much just sticking together. And my kids have asked me, mom, when are we going to go back home? So it's kind of been just sitting around and with a the lot of hope.

HARRIS: Well, Laura, I'm glad you have your cell phone. And what are they telling you? When are you going to be able to go back home?

KEY: We got word a while ago that people live in the county, at the minimum, possibly Sunday that live outside of the - like towards out in the country, part of the area. Anybody in town, they're starting to get some power. We probably won't getting to home until probably either Sunday or early Monday.

HARRIS: Wow!

KEY: So it was - we've had hot food, thank goodness. We've had plenty of snacks, water. They've been serving hot meals, thanks to a generator here at the high school. But it's nothing like being at home. You know, you don't have your shower. You don't have, you know, things like that. They do have, you know - they're starting to bring in some things to help us get by.

HARRIS: Well, Laura, hang in there. You and your kids. Hang in there, all right? Boy, this is a tough one you're going through.

KEY: Yes.

HARRIS: Thanks for your time.

KEY: Thank you.

HARRIS: Laura Key from Litchfield, Kentucky, just sort of stuck in a shelter right now. Maybe she'll get home on Sunday, maybe she'll get home on Monday. Just doesn't know right now.

And we invite you to stay with us. We will be talking live with Kentucky's governor in the next hour of CNN NEWSROOM.

One governor out, another in. The revolving door in Illinois.

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HARRIS: Illinois's new governor getting right to work. Patrick Quinn was sworn in last night after the State Senate voted unanimously to impeach Rod Blagojevich. Quinn had served as lieutenant governor since 2003. He has a degree in international economics from Georgetown University and a law degree from Northwestern. The 60- year-old democrat is divorced with two sons. He vowing a new course for Illinois.

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GOV. PATRICK QUINN (D), ILLINOIS: Well, we have a serious crisis right now in Illinois. We have to, for example, make sure that we have a construction bill this summer, a public construction bill, to repair our roads, our bridges, to take care of our water needs. Illinois is a state that depends on clean water, like every other state. We have to make sure that we invest in broadband deployment so that we have everybody in and nobody left out when it comes to high- speed internet. So we have to have that bill passed right away. And that will happen, I hope, in the next few months. And get the construction season off to a roaring start in Illinois.

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HARRIS: Wasting no time, Illinois state workers were quick to remove Blagojevich's picture from the state capitol and change the key codes on the doors to the governor's offices.

Meanwhile, Blagojevich is back home in Chicago still sounding like a politician.

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ROD BLAGOJEVICH, FORMER ILLINOIS GOVERNOR: I want to say to all of you, the people of Illinois, who I've been blessed to represent as governor for the last six years and before that as a congressman for six years, and before that as a state legislator, and before that as a prosecutor, that I love the people of Illinois today now, more than I ever did before.

UNIDENTIFIED FEMALE: We love you too.

BLAGOJEVICH: Thank you.

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HARRIS: Blagojevich says he will keep fighting to clear his name. Federal prosecutors are drawing up an indictment against him on corruption charges, including allegations he tried to sell the senate seat vacated by President Obama.

The ice storm that won't go away. Now another winter storm heads to the same area.

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