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New York City and the State of California Face Serious Financial Crisis; Mortgage Squatters; Dire Straits of Kentucky Ice Storm Victims

Aired January 30, 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: You know, the president will continue to do what -- whatever is possible to get this bill going, and to get it moved quickly to his desk.

QUESTION: Do you have anything on his schedule in terms of calling a meeting?

GIBBS: I don't have anything for next week, but I will -- let me see what there is. I know the president will work next week on an economic stimulus bill. And as I have done here several days this week, you know, again, we've got more statistics that remind us just how important it is to get something that stimulates the economy, quickly to the president's desk, so that we can get relief to the American people.

The economy shrank at its fastest pace since 1982, according to statistics released just today. In addition to those statistics, it demonstrated consumer spending is down, I think, for second quarter. Sales of new homes, these were figures released yesterday, were they're worst since the 1960s. More companies announced mass layoffs. And Ford Motor Company reported a huge loss in their quarterly earnings.

Again, I think all of these demonstrate the need for Congress and the president to work together to get something done as quickly as possible for the American people.

QUESTION: (INAUDIBLE) aside the Biden interview, is it understanding that the $350 billion needs to be spent before any other money might be requested?

GIBBS: Let me check on that. I know that, again, the economic team met today with the president. Christina Romer, our newly confirmed director of the CEA was there to talk about the GDP numbers, some of which I just talked about. Secretary Geithner and Doctor Summers were also there, in continuing discussions on what a financial stability package might look like.

I think you heard the president's remarks yesterday. Before focusing on what might come after the money that's currently appropriated, the focus that we have right now is, on how to spend that money differently. How to put together that type of plan, how to get that money back into the economy quicker through lending, how to ensure, as the president talked about yesterday, that we don't see the type of excessive compensation or bonuses that the president was outraged about yesterday; that we do this in a way that's different and transparent than was done before.

I think that's the focus right now. I know there have been different reports about different ideas, and different money figures that have floated around. The administration right now is focused on ways of changing the way that program has been administered for this set of money differently than that last set.

Jeff.

QUESTION: Robert, a question about currency. Secretary Geithner said last week that he supported a strong dollar policy, which the Bush administration said a lot as well, although often at times when the dollar was not strong. What does president Obama believe should be done about that policy differently than President Bush to keep the dollar strong? And secondly, along those same lines, is the administration prepared to work with G7 countries on reducing currency volatility?

GIBBS: Let me get you some much better advice on those two questions from the Department of Treasury. I think that's probably the best place to answer those.

QUESTION: Can you give -- I mean, this is tied in, I guess. Can you give us any details about the conversation with China, too?

GIBBS: I was not in the conversation. But as soon as we can get a readout written up, we'll make sure that you all have that. I wasn't in there. I don't know the specifics of what they discussed.

Jay.

QUESTION: There have been new revelations called into question the ability of the FDA to keep our nation's food supply safe, with the salmonella epidemic. More than 500 people are sick. More than half of them are children. Three people have died. On the campaign trail last year, president Obama said as a parent of two young daughters there are few issues more important to me than ensuring the safety of the food our children consume. So what are you guys doing about this?

GIBBS: Well, obviously we've read reports, I think, on the A.P. wire today about trouble at FDA last year. We've certainly read reports, and I think the Justice Department is looking into business practices of the company in Georgia. And I know the president hopes in the next few days to announce a pick for the commissioner at FDA to address all of what you said.

I think the revelations have no doubt been alarming, that whether it was our own regulatory system, or a company that repeatedly found salmonella in its own testing, would continue to ship out that product, is beyond disturbing for millions of parents. The president, I said in the coming days, will have a new commissioner at FDA. And, hopefully, will be able to announce also extra (ph) things like the Consumer Product Safety Commission, and places like that, to put in place a stricter regulatory structure to ensure that the type of thing that happened in this case doesn't happen again.

Yes.

QUESTION: Senator Judd Gregg said he's under considerations for Commerce secretary. Can you talk a little bit about that?

GIBBS: Well, I - you know, let me give largely the answer I gave to some of you yesterday, which is -- and some of you heard my ranting on this during the transition. I'm not going to get into the name game, or the final four of picks for this job or that. I had talked to the president specifically about a decision on the next Commerce secretary. And the last time I talked to him this morning, a final decision had not been made.

I know that's something that he hopes to make a decision on, and announce shortly. But until the president tells me to make a personnel announcement from this podium, I'll refrain from getting into individual names on that.

Chip (ph).

QUESTION: The February 13th target, is that still etched in stone? Or with would the difficulty on the House side with Republicans, and resistance on Senate side, is there any flexibility on that? Or is that still absolutely the date? And also, could you tell us a little bit about his schedule? I mean, the conventional wisdom is he works well into the night. Is he working nights? Is he staying up late working on this? Is he going to be working all throughout the weekend?

GIBBS: Yes, I don't have meetings on his weekend schedule at this point. You know, he's traditionally a night owl. I'll check and see what -- if anything in particular he's doing. I know he spent a lot of time reading stuff on -- mainly as it relates to the financial stability.

Your first question about the deadline. I actually don't think we've had any delay. I think, you know, we all get focused on what the vote count was, but we tend to forget that the bill by a pretty big margin took a big step forward this week in going through the House. As I understand the schedule, the Senate will take the legislation up and vote on it next week, and we hope the week after that, that differences will be ironed out, and soon after that a bill will be on the president's desk.

Again, Chip, I don't -- we're reminded in this town of statistics that this government and other entities produced relating to how deep and desperate this crisis. Many in America have felt it for quite some time. I think they understand that Congress has to work expeditiously to get help to the American people, to save or create millions of new jobs, and to get the economy moving again. I don't think there's been any delay. I don't think next week we'll see any delay. And I think we're on a path toward getting the president something that he can sign before Presidents Day recess. I think leaders in Congress have said if we don't meet that, then there may be a smaller and shorter recess than might have been previously planned. I think that shows the willingness of all involved to get something, most importantly, out of Congress, out of the president's hands, and into the pockets of the American people. Chuck.

QUESTION: Robert, today on the floor of the Senate, the president's former Campaign Co-Chair Claire McCaskill said, he wants to make it illegal for any of these financial institutions that take government money, to do -- basically make any more money, any salary higher than the president's salary. But the president said yesterday it was shameful for this compensation. Does he want to see it illegal, this next round, that it is illegal for these firms to take government money, to compensate themselves -

(CROSS TALK)

GIBBS: Let's not get ahead of what the team and president will decide to make part of the next round of spending. I don't think anybody should

QUESTION: That's what he said (OFF MIC) for something to be done.

GIBBS: I don't think anybody should take away from those remarks that he doesn't. And I think it is very safe to assume that when a plan is outlined for financial stability, that it will include, and address, executive compensation and bonuses. The president did it better than I could yesterday. He found it outrageous. I think many of you have covered him. I have seen him upset at times. He doesn't really get fired up upset. He's more like that disappointed parent, you know? He doesn't embarrass you in the mall, but you feel like you've let somebody down.

So I think yesterday, when you see something like that from the president, I think you can understand that that was from his gut, and that was real. Nobody begrudges people that are successful and make money. Somebody who's running a very successful company that's making its shareholders money, and serving the American people responsibly, nobody would begrudge that happening. But when the sixth largest year of bonuses fails in any appreciable way to match the huge losses, I think outrageous is probably just the beginning of words one might be able to intone, particularly if we're on TV.

QUESTION: What if somebody wants some sort of action by Congress - asks Congress to do something?

GIBBS: I think you will see the president and his economic team outline a plan to deal with what he found irresponsible yesterday.

QUESTION: Can you describe the relationship between Senator Gregg and the president? Was there a friendship, relationship, did they play basketball together?

GIBBS: I don't think they've ever played basketball. That's a good question. Senator Gregg looks like he might have an inside game. No, I think -- obviously he's somebody that the president has talked to recently about the economic crisis. I know they spoke before the president was sworn in, on a couple of occasions, about financial stability and the recovery plan. Obviously the president shares his concern about the growing federal budget deficit. I mean, they -- he's somebody the president talks to on a host of economic matters.

QUESTION: (OFF MIC) He likes working with him?

GIBBS: I think that would be accurate.

Yes.

QUESTION: Doesn't the president intend to attach any strings to any new stimulus package?

GIBBS: I'm sorry?

QUESTION: You intend to attach strings -- attached to any giving of any more money in the stimulus?

GIBBS: In the bailout money, right?

QUESTION: Right.

GIBBS: Yeah. I think that it is, again, very safe to assume that the way that the money will be used, and what it can be used for, will be different than what we've seen come before. And I think that -- the president is anxious to have that -- those decisions made and outlined. And I think you'll see those relatively soon.

QUESTION: When is he going to hold his news conference?

GIBBS: He is anxious and eager to do so, and we're trying to find him a time to do that. Will you have a question if --

QUESTION: 24 hours a day? In a week?

GIBBS: Are you busy around 2:00 this morning?

(LAUGHTER)

GIBBS: No, I promise you, you'll get your chance.

Yes, sir.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: A couple of questions, but we'll start with this one. The Middle-Class Task Force that the vice president will be heading up. Beyond just meetings and sort of this listening to tour the task force will be going on, what solid -- anything solid will come out of this?

GIBBS: Well, look, I think that one of the main purposes of a task force like this is to orient the policies of this government going forward more toward the demands and the needs of the middle class. I think one of the critiques that the president had of the previous administration was, a tendency to help those that already had done quite well, while many in the middle class were seeing their wages either hold steady, or in many cases decline. So I think it's important that a task force and a group be assembled to ensure that the policies of this administration are friendly to the American middle class. I think the beginning of that is, in this Recovery & Reinvestment Plan, to ensure that the tax cuts that are contained in it are focused towards those that need it the most. I know there's been lots of discussion about that, but the president believes that that's the best way to spend that money.

LOTHIAN: I think it was yesterday or day before yesterday, when you were asked about these outside groups that are running these attack ads, you said the president didn't want to referee, I guess.

GIBBS: Still doesn't.

LOTHIAN: Let me try to get at it at a different angle. You have these groups going after people like Senator Gregg, a Republican, who has admitted that the president's looking at him for Commerce. Is this sort of Washington old --

GIBBS: I'm wondering which question we're trying to get at? Are we trying to get at Ann's question or are we trying to get --

LOTHIAN: I'm not trying to - not that specific, is this sort of Washington as usual where you have the Democrats, or liberal groups, you know, attacking Republicans and this is someone who the president is reaching out to?

GIBBS: Well, I mean, as I said yesterday, the president has a lot on his plate. I think refereeing what this group or that group is doing to this group and that group might not be something that encompasses a lot of the president's daily schedule.

LOTHIAN: Is it more Washington as usual? It's not the tone that the president wants to see here.

GIBBS: I think the president feels like the efforts that he's made, and will continue to make on this, will live up to what he wants to do to reach out to Democrats and Republicans. Again, this is -- it's not just being nice to be nice, it's being nice to get something done that's important for the American people. I think that's what the focus of the president's efforts are and he'll continue it.

I don't know if we sent a list out, and he'll have more members of Congress over here Sunday to watch the "Super Bowl". And again, reach out to and get to know, in a better way members on both sides of the aisle, to see where we can work in concert to improve the lives of the American people.

Cheryl.

QUESTION: Robert, a couple of questions. First, Secretary Geithner, during his confirmation hearing said he would support specific limits on the effective compensation beyond which executives would have to repay the government. In other words, if they got stock or bonuses, or etc cetera, and they were receiving bailout money, they would have to -- they would not be able to receive that until they had repaid the government its bailout money. Is that something that the president supports? Is that the kind of policy that we're going to see announced?

GIBBS: Well, again, I don't want to get ahead of the president, or the secretary. I know that -- I wouldn't dissuade you from anything the secretary said in that testimony. I think that's -- I think those are strong beliefs of the secretary. And I think it's safe to say that many of the secretary's views mimic those of the president.

QUESTION: But how would you calculate the compensation? Would it be a specific amount?

GIBBS: Again -

(CROSS TALK)

GIBBS: Again, since I'm not announcing anything, it would be hard for me to enumerate the reasoning behind what I wasn't announcing. Again, let me not get ahead of that, except to say, stay tuned. Because something on that is coming soon.

QUESTION: A different issue. You spoke earlier about the president would like to announce an FDA commissioner soon. We've got a food safety problem right now that is ongoing and urgent without a commissioner. You don't have a Commerce secretary yet. How much of a problem is this, that some of these key jobs in the administration are not filled? And what's your target for really having all of your top jobs filled?

GIBBS: Well, obviously we want to get jobs filled as quickly as we can. I think we want to make good decisions, and I think the American people can be extremely confident in the professional level of the government that's both in place, hopefully, at the White House and in the executive branch. But, you know, also, you know, each of these agencies and departments has loyal and dedicated career public servants, that can ensure that the safety that needs to happen as it relates to the FDA, or some other charge of government, is being carried out in a way that meets the president's expectations.

Again, trust me, as soon as we have announcements, you'll hear me echo what the president says.

Major.

QUESTION: Two questions. First, talking about the CEOs who met with the president earlier this week, they say they economy clearly has a structural problem. They also said it has a psychological problem. The president today called the economic statistics a continuing disaster. Why does the president believe language like that is helpful when CEOs he met with said part of the problem is the psychology of the country and feeling a sense that things might get better? Why is that rhetoric helpful in the president's point of view?

GIBBS: Major, I think the president strongly believes that the only way that the American people are going to support what the president and the Congress are trying to do is if the president and the Congress are frank and honest with the American people about where we are. I think it's kind of hard to sugarcoat and spin an economy that shrank at a faster rate in any quarter except -- or since, 1982. Or that consumer spending was down, and that drives normally two-thirds of our economy. Or housing, sales of new homes are at their worst since the 1960s. The president also often says we didn't get into these problems overnight. Many of these were years in the making. And then it's going to take us awhile to get out of them.

I think the American people understand that. I think what the American people also want to see is somebody who will level with them about the challenges that we face. And will give them a sense of where he hopes to take them. But I don't think he can do that if he's continually telling people that things are different than what they know to be true in their everyday daily lives.

QUESTION: Second question: The House has a "Buy American" provision in it, affecting steel and iron. The Senate is expanding that. How strongly does the administration support those? And how does it re act to criticism from some of the United States' largest trading partners that they fear this is a protectionist move? And how does it square with the commitment at the G20 meeting that members of the G20 would not take the steps viewed, broadly, as protectionist?

GIBBS: As I think you've seen us respond in the paper, that because of what you've seen and concerns that the administration is reviewing those provisions, as part of the recovery plan, and that review continues.

QUESTION: Would it be fair to say that the administration does not currently support them?

GIBBS: I don't think I said that. I think it's important that the administration review, and once we make a review, we'll have a better idea of the opinion that you just had.

Yes, sir.

QUESTION: Stay on "Buy American" for a second. Is the s the president aware of some of the anger, particularly up north, that this provision is causing? And can that make for any awkward conversation in the upcoming visit?

GIBBS: Oh, Canada? I didn't know if you meant like New York.

QUESTION: New York is still part of America the last time I checked.

GIBBS: But you didn't say up north, not in America. So I was clarifying if we were, like in southern Vermont, or whatever.

Look, I think, as I said the other day, I don't think there's any doubt that trade is going to be on an agenda for a bilateral meeting between the United States and Canada. I think that would have been the case regardless of who those two participants were. But again, the administration will review that particular provision, and will make a determination on that.

QUESTION: (OFF MIC) specifically violates the trade laws --

GIBBS: Which is precisely why the administration is going to review that. And once it makes that review -- guys.

No, no, give me a second. Let me -- I'm going to say this for like the fourth time. The administration is reviewing that provision. It understands all of the concerns that have been heard not only in this room, but in newspapers produced both up north and down south. So let us undertake that review. And when we have something to announce, as it relates to that review, I will be able to answer any number of your questions related to review that is not yet currently been done.

Yes, sir?

QUESTION: What kind of consideration is the White House going to give to this alternative stimulus proposal that is emerging from Senator McCain, and other Republicans, and if a full-blown alternative is out there, what are your concerns about it delaying the overall debate on reaching that deadline of yours?

GIBBS: Well, I mean, I think there was an alternative, if I'm not mistaken, there was an alternative that was voted on in the House that didn't receive a majority. I assume there will be amendments and alternatives in the Senate. But again, I don't see that that will delay the process. I mean, in having encouraged in the House and Senate side, ideas and amendments to be debated and voted on. I think that's part of a process that's been undertaken in this bill that allow everybody to take part.

But again, I don't -- the way we look at the legislative calendar, we don't see delay on the horizon. And I don't think the American people want to watch Washington delay what they know they need. I think we're making progress towards the president's timetable of the Presidents Day recess.

QUESTION: What else can you tell us about this "Super Bowl" get- together? Is it going to be a big schmooze-a-thon?

GIBBS: Bill's bringing a seven-layer dip.

(LAUGHTER)

GIBBS: No, I'll -

QUESTION: You better get the FDA on that one.

(LAUGHTER)

GIBBS: Especially if it's in Bill's kitchen. It's a fairly straightforward deal. Again, I don't know if we've sent out the list of -- we'll hit send on that quickly. You'll see Democrats and Republicans. You'll undoubtedly see Steelers fans and Cardinals fans. Once again, bringing people together. What's that?

QUESTION: Where are you going to watch it?

GIBBS: I think it's in the theater, right?

QUESTION: (OFF MIC) pool on that, or? GIBBS: I think it's closed press. Or maybe we'll do the "Super Bowl" on background.

QUESTION: Who makes up the guest list?

GIBBS: I believe the social office and -- with input probably from many offices, including Inner Governmental and Legislative Affairs.

QUESTION: (OFF MIC)

(LAUGHTER, CROSS TALK)

GIBBS: No.

(LAUGHTER)

GIBBS: Yes.

QUESTION: I have two questions.

GIBBS: Sure.

QUESTION: The first one is, over the last two days we've seen two measures that have -- the labor community has welcomed the bill signing yesterday and today the executive orders. Are you planning anything else further on the labor agenda, and also yesterday the vice president said he expected the Employee Free Choice Act to be acted upon this year. Is that the White House's position that you would like to see action on that this year?

GIBBS: Well, I think the executive orders that the president signed today, as he said, restore some balance in the relationship. And increase the transparency in the workplace, which he's a big proponent of. I think the best phrasing in terms of the president's thinking on Employee Free Choice was part of the transcript from his visit to "The Washington Post" editorial board, which I won't paraphrase. I'll give to you to show the best thinking of the president on that right now.

QUESTION: Well, just to remind those of us who weren't at "The Washington Post" meeting -

GIBBS: That's why we'll send it out. We fixed the e-mail.

QUESTION: Yes? OK, but -- was the vice president speaking for the White House when he said he wanted to see action this year?

GIBBS: Let me get you this transcript so everybody's in line.

Yes, sir.

QUESTION: No wait, my second question was actually something different.

GIBBS: Oh, I'm sorry.

QUESTION: Which is, what in terms of bipartisanship, the S-CHIP legislation was an example during the Bush administration of actual real bipartisanship on the Hill, at least. Maybe not with the White House.

GIBBS: Yeah, I was going to say -

QUESTION: There were a lot of Republican who support --

GIBBS: The reason we have to sign it next week is because that bipartisanship broke down at the point of the president's signature.

QUESTION: The president was not part of that. But, in fact, in the Senate there was a lot of Republican support for that.

GIBBS: Right.

QUESTION: But in fact, the final vote yesterday lost a lot of those Republican supporters. People line Hatch and Grassley, people who had been part of that. And they complained that, hey, if we can't even do this bill, what they view as a bipartisan way, how are we going to do bigger bills like stimulus or health care reform in a bipartisan way? Can you address that?

GIBBS: I didn't watch the debate. Obviously a 62-66 -- or 66-32, I think that was the vote. I think that's a pretty strong endorsement on a bipartisan -- in a bipartisan fashion, for a priority that, as you mentioned, has been shared by Democrats and Republicans. But never made it to the desk of the president -- or I'm sorry, made it to the desk of the president, but never made it past that point.

It's long been a priority of this president, and obviously this president's chief of staff. It's a piece of legislation that will continue to cover six to seven million children and increase and expand that coverage by an additional four million more. I think the - you heard the President talking in the campaign about how important it was to cover, particularly cover children. So the President looks forward to bringing Democrats and Republicans to the White House, hopefully soon. Maybe as early as next week, to sign that bill into law. And to expand health coverage for millions of currently uncovered children.

Yes, sir?

QUESTION: What's the President's expectations for this weekend's elections in Iraq? And how much will they be a litmus test in terms of security, as he makes his decisions on the withdrawal of troops?

GIBBS: Well, obviously the President will watch the results, and believes that the provincial elections this weekend mark another significant milestone in Iraq's democratic development. There are, you know, a series of elections that will happen throughout the country throughout the rest of the year. An important year, again, for that democratic development to continue.

You know, separately the President's met with military advisers, the joint chiefs, the secretary, commanders on the ground in the region over the past, almost two weeks, to hear from them. And quite honestly, for them to hear from him about a way forward in Iraq, Afghanistan. And also, as I think as I mentioned yesterday, a fairly lengthy and engaged discussion at the Pentagon with the joint chiefs this week on the health of the military force that we have right now. I think the Pentagon said this, and it's true, that we expect that we'll have recommendations and decisions on moving forward on Iraq quite soon.

April?

QUESTION: Robert, what are the guarantees of the stimulus package, as the last stimulus package made little impact, as some economists are saying.

GIBBS: Well, I think if you look at the way that this stimulus package is structured, particularly as it relates to the last stimulus package, I think you'll see that we took into account some of the shortfalls in both size, scope and implementation. I think it's safe to say that the President wanted something that he believed would be big enough to get the economy moving.

We've talked about it in this room. The government is out of a lot of options as it relates to monetary policy. And that a fiscal stimulus targeted in the right way that puts money in people's pockets and uses spending to create jobs can have, as Christine Romers (ph) said, an impact in lessening what we believe has already been and will continue to be a fairly deep recession.

We talked yesterday about, in a couple of answers, changing, for instance, the way some of the tax cuts are structured to individuals, in a way that is likely to see them receive and spend that money far more quickly than they would if we simply handed them one lump sum. Instead, to spread out an increase in that pay over a period of time in which people are likely to get more used to having that money in their paycheck and in their pocket and spending that money.

So I think a lot of those issues were taken into account. You see money for infrastructure, for projects that are proven and ready to go. You see investments in a clean energy economy that we believe will stimulate job growth. All of those, I think, are taken into account in order to get the economy moving again.

QUESTION: The question was, are there guarantees - is there a guarantee of some sort of stimulation for job growth, for a loosening of the credit?

GIBBS: I think the CEA chair has said that she believes and her estimation is that this is a piece of legislation that can save or create three million to four million jobs.

Again, I think if you go back and look at those reports, we're talking about graphs that cushion the downward blow some. But make no mistake, in that there are big challenges economically. The President talked this week with Republicans in the House and Senate about not just a recovery plan, but a stability package. And there will be some meetings next week at the White House relating to re-regulation of the financial industry to greatly assure that the structure that enabled some of what happened most recently to happen doesn't come again on this president or another president's watch. That that's very important. And that only by addressing each of those aspects of the challenges that we face in our economy, we would be adequately - able to adequately address those challenges and move the economy forward.

Peter?

QUESTION: Robert, for Americans who are looking at these GDP numbers, unemployment numbers and may be alarmed, may be worried about their own jobs (OFF-MIKE) to unemployed, what is the - what is the White House's message? Essentially is it that if we pass this recovery package, if we re-regulate the financial sector, if we take these steps, maybe a year or two, these numbers will reverse themselves, in the meantime hang on? What would the President say to folks who are just alarmed, frankly, by some of these economic trends?

GIBBS: Well, let me quote him. I think he would likely tell you that if Congress and the President can work together across party lines, put aside differences and get something good for the American people, that help would be on the way.

The President understands that people have hit hard times. He spent two years on the road, and heard about these problems, quite honestly, long before any of these statistics started being spit out by a government computer or out of an agency. We traveled a long way and met a lot of people that have lost jobs, or have seen their jobs go overseas, or were having trouble with mortgage payments for quite some time.

You know, the President in September of 2007, when it was a little lonely out there, went to NASDAQ and Wall Street to talk about re- regulating the financial industry. Something that didn't seem as impressionable at a time, but a year later we were probably emailing you drafts of that speech.

The President understands that people are hurting, and believes that we have a unique opportunity in this town to bridge our usual partisan differences to get the economy moving again. And that that's what the American people expect, and quite frankly, that's what they deserve.

Let me see. Who else. Yes?

QUESTION: More and more people in Europe are wondering about the financial stability in the United States. Is the President considering at one point a global solution to this crisis?

GIBBS: As I said yesterday, and I know the G-20 is going to meet in April, that unless or until we all act in some ways to address the problems that each of us has, not through some global solution, but each of us working together, that unless or until we do that, you're going to see a solution only have a partial impact on the health of the global economy.

I know that one of the things that the President hopes to put on his agenda domestically is that re-regulation that I just talked about. I think that's certainly important for this country and for other countries to have that kind of confidence in the economic system, both here and abroad. To not just understand what happened, to respond to it and to get it moving again. And that through the course of all those things - again, in September, this was a few days after the collapse of Lehman Brothers, one of the things that he specifically said is that we need to take actions together as part of the G-20 to ensure that this doesn't happen again and that we address a series of solutions that doesn't cause capital to swing from one country to the other because one country is making part improvements in their banking system while another doesn't and you see dramatic shifts in capital in swings in that way.

Steve?

QUESTION: Robert, what's he going to do about the trial going ahead, the fellow accused of blowing up the USS Cole?

GIBBS: Well, as I said yesterday, after the ruling, after we received the ruling, or read about it on news reports, that we were in consultation with the Pentagon and the Department of Justice as it relates to that. And we continue those consultations just as we continue to review the cases at Guantanamo Bay, consistent with the President's executive orders to do so with the strong goal of ensuring swift justice that's - and the safety of the American people. That's what we owe the families of those that were - that have been injured or killed as a result of terrorist activities. And that's what we need to do for the American people to keep them safe.

QUESTION: ... an interested party filing a motion in court as he did originally, or is the commander in chief, who can tell the military what to do?

GIBBS: I'm sorry?

QUESTION: How is he approaching this? You're say you're talking to both the Justice Department and the Defense. Is he approaching it as a lawyer who's going to file a motion and request something to happen or as the commander in chief?

GIBBS: Well, let me not get ahead of that consultation. I think that it's safe to say that the President has been a critic of this process, that it's in many ways failed to meet that very test of swift justice.

So not just in this case, but in reviewing all these cases, the goal is to bring about that swift justice and protect the American people. I know the counsel's office here, as I said, is in contact with the pentagon and justice to see what are the next steps that are involved. At some point, before I get questions about what those next steps are, as soon as we finish those consultations, we'll go forward then.

QUESTION: Robert, with the Iraqi elections coming up this weekend, how concerned are you that external forces, neighbors of Iraq, specifically Iran and Syria, might play a role that is not in the best interests of the democracy?

GIBBS: Well, let me not - I don't want to go into hypotheticals about what may or may not happen, other than to say that, you know, we're going to obviously watch these elections, watch their outcome. And believe that Saturday marks just another - that Saturday marks a very important continued milestone for democratic development in Iraq. And that as the President laid out, that, you know, one of the goals of his review process as it relates to our forces in Iraq is to give more responsibility for security and governing to the Iraqi government. And I think these elections, again, mark an important milestone towards achieving that, and we hope very soon to giving them more of that opportunity and more of that responsibility.

QUESTION: Thank you.

GIBBS: Let me do the week ahead real fast.

QUESTION: One more, Robert?

GIBBS: I'm going to do week ahead and then I'm going to try to go get some tea for my throat.

Saturday, the only thing I have right now on the President's schedule, and I will double-check this, is he will attend the Alfalfa Dinner. Nothing says change like the Alfalfa Dinner.

(LAUGHTER)

QUESTION: Will he be speaking there?

GIBBS: He will speak there and I think I just took his first joke.

The President will watch the Superbowl here. We will send out a list of friends and colleagues that will watch the game here. The President - and I apologize, this is going to be somewhat oblique - but we'll have meetings and announcements here at the White House Monday, Tuesday, Wednesday, and Friday. So...

(LAUGHTER)

QUESTION: Is there a conference on Thursday?

GIBBS: Mine does not say that. But he will attend the Democratic Senate retreat on Wednesday.

On Thursday morning, the President will speak at the National Prayer Breakfast and will travel to Williamsburg for the Democratic House retreat on Thursday night.

So I will endeavor to see if there are any other additions to the schedule for the weekend. I do not believe - I think it's just there and back. Do we know? Yes, we'll figure that out. But I think it's just...

QUESTION: Is there a topic on the radio address?

GIBBS: The economy. We will get you guys - we'll get you the address early so that you're not up at 6:00 a.m.

Thanks, guys. Have a good weekend. FREDRICKA WHITFIELD, CNN ANCHOR: White House spokesperson, Robert Gibbs, and I both having throat problems, but gets to surrender to the end of that meeting as of now. He kind of ran the gamut there with the reporters asking a host of questions in what is now wrapping up the final week - or the first week, but the end of this first week of press conferences, daily press conferences.

Talking about everything from a new commissioner at the FDA to he wouldn't get into the commerce secretary pick, even though there have been some rumors circulating on that. Also, he says that it's likely that President Obama will seriously consider a plan outlining how companies must be held responsible when receiving federal funding.

And there are no weekend planned events. However, he says, the President has already made it very public, he's rooting for the Pittsburgh Steelers and will be watching the Superbowl this weekend with some colleagues before going into another full week ahead of meetings and even retreats.

We'll continue to follow the White House throughout the day.

Meantime, another big story that we continue to follow. The economy, and jobs, as more people lose their jobs, lose money and lose confidence. The cities they live in are suffering as well. New York Mayor Michael Bloomberg reacted to that just a couple of hours ago, unveiling a plan to counter plunging tax revenues, a rising budget gap and massive Wall Street losses. It could result in more than 20,000 city workers being laid off. The mayor says revenues could fall by $5 billion next fiscal year, and the projected budget gap is topping $4 billion, he says.

(BEGIN VIDEOCLIP)

MAYOR MICHAEL BLOOMBERG, NEW YORK: The last time we adopted a budget and then last November when we updated our estimates on expenses and revenues, I think we all know that the economy has worsened and worsened significantly, in fact, since November. It's continued its decline and the economic numbers that were released today do not give us any reasons to smile. Unfortunately, they keep deteriorating and with the deterioration in the economy our tax revenues keep falling. And there's an extra $800 million gap for the current fiscal year and $2 billion for the cap in - for the gap in the fiscal year 2010, just from the November update to now.

(END VIDEO CLIP)

WHITFIELD: The mayor's plan also includes $955 million in new budget cuts and a rise in sales tax. And Bloomberg says losses for Wall Street firms last year could end up topping $47 billion and they could lose even more this year. Plus, New York is projected to lose nearly 300,000 jobs through 2010.

All right, in California, the budget crisis is statewide and the cuts run very deep. The state faces a $42 billion budget deficit. Quite simply, it's running out of money. State tax refunds are being delayed by 30 days. And just yesterday a judge signed off on an order that will force state workers to take two days off each month without pay. The order for forced time off takes effect next Friday and it will affect nearly a quarter million workers; quite sizeable.

Millions of Americans have lost their homes or face foreclosure in the nation's mortgage crisis. One congresswoman has some advice for them: Don't leave.

Drew Griffin of our special investigations unit has that story.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT (voice-over): The notices came to her home in April. Andrea Guice's bank foreclosed on her. Behind in payments, out of work, a husband sick, she had nowhere to go. So she decided to follow the advice of her congresswoman and go nowhere. Guice is part of a new movement in the housing crisis, squatters.

(on camera): For lack of a better term, you're kind of squatting in this house, aren't you?

ANDREA GUICE, FORECLOSED HOMEOWNDER: Basically, yes. Yep.

GRIFFIN: Last resort?

GUICE: Last resort, yes.

GRIFFIN (voice-over): More than 4,000 properties were foreclosed on in Toledo's Lucas County last year. This year, it could be worse. There's a county clerk whose full-time job is typing up and sending out foreclosure notices.

UNIDENTIFIED MALE: Tomorrow morning those will be mailed out.

GRIFFIN: Elected officials are saying Toledo is not in a recession, it is a depression. It is this bleak backdrop that inspired Toledo Congresswoman Marcy Kaptur to take the floor of the House earlier this month to tell her constituents to stay put.

REP. MARCY KAPTUR (D), OHIO: So I say to the American people, you be squatters in your own homes. Don't you leave.

GRIFFIN: Kaptur says she has had it with government bailouts for Wall Street banks, but nothing for homeowners. She is advocating for a legal revolution, a demand that not one of her constituents leaves their home without an attorney and a fight.

(on camera): Even if they've been foreclosed on, don't leave?

KAPTUR: If they've had no legal representation of a high quality, I tell them stay in their homes.

GRIFFIN (voice-over): Kaptur is behind a strategy called, "Produce the Note." Mortgages have been so divvied up on Wall Street that banks are having a hard time finding that original paperwork adding a delay to foreclosures. She is also pushing banks to rework loans, especially those banks getting bailouts and holding mortgages of folks getting tossed out.

KAPTUR: They're vultures. They prey on our property assets. And I guess the reason I'm so adamant on this is because I know property law and its power to protect the individual home owner. And I believe that 99.9 percent of our people have not had good legal representation in this.

GRIFFIN: Without a lawyer, Andrea Guice bought a $147,000 home with nearly $40,000 down.

GUICE: I should have had an attorney. I really should have had the attorney. I did not know.

GRIFFIN: She admits she didn't read the paperwork, didn't learn, until it was too late. She had a subprime loan. Her payments of $883 a month jumped in a year to more than $1,500. When it did, she stopped paying.

(on camera): So they foreclosed on you?

GUICE: They have foreclosed on me, yeah.

GRIFFIN (voice-over): The law firm representing the bank in Guice's foreclosure declined comment to CNN. Another one of the banks Guice believes holds her note, Wells Fargo, said it wouldn't comment on individual cases, but tries to work with homeowners. Backed by her Congresswoman, Guice simply is not budging.

Drew Griffen, Toledo, Ohio.

(END VIDEOTAPE)

WHITFIELD: All right, so the congresswoman thinks it's a good idea to stay home. Let's check in with our personal finance editor, Gerri Willis.

So, I don't know, do you side with her? Everybody certainly wants to be empathetic about it.

GERRI WILLIS, CNN BUSINESS CORRESPONDENT: Well, and I am empathetic, because in so many cases these weren't lousy people, they were lousy loans. But here's the bottom line here. The reality is, once you're delinquent and foreclosed on, you typically have up to a year before somebody comes to your door and makes you leave the house. So staying there makes all the sense in the world. And what's more, that's time you can actually use to turn yourself around, to get a new loan. I've actually got a decision tree that I put together for folks out there who are in this situation.

And if you're like Andrea Guice, if you had a toxic loan and your monthly mortgage payments spiraled out of control, here are places to go for assistance. So this is step number one: Call the Department of Housing and Urban Development, 800-225-5342. You see the numbers here. Home Ownership Preservation Foundation, 888-995-HOPE. Or even the National Foundation for Credit Counseling, 866-845-2227. Now, look, it's tough if not impossible to get a new loan, however, if you've lost your job. If that's the case, you'll want to take any employment you can, because without any income, you'll never get a new loan.

Now, if you're truly desperate, you've received a notice of foreclosure and expect the sheriff to knock on your door any day, there are ways then to forestall the foreclosure further. You can file bankruptcy. That's one way to do it. You may not be able to stop the foreclosure, but will delay it and you'll have time to explore or options. A good bankruptcy attorney will actually study your loan in detail to determine whether your lender broke consumer laws in giving you the loan in the first place. Now, this is a strategy that more and more frustrated homeowners are using.

Finally, if you know you'll never be able to afford the house, even if the interest rate is cut or your loan is stretched out over a longer period of time, it may be time to consider cutting your losses, trying to find a buyer or simply handing the keys back to the lender.

But these deadlines, they're not that important. I think that people staying in their homes makes all the sense in the world.

WHITFIELD: Well, I guess that would be very encouraging for a lot of people, because they kind of feel like they have no other options. But you've laid out quite a few so there is a little help out there.

Gerri Willis, thanks so much. Appreciate it.

WILLIS: My pleasure.

All right, well, the biggest power outage in Kentucky's history. That is what the state is dealing with right now after this week's ice storm. We'll go live to hard-hit Louisville.

(COMMERCIAL BREAK)

WHITFIELD: The situation just seems to worsen in Kentucky. Get a look at the images here. Ice, snow, everywhere, bringing down power lines. And worse than that, it means thousands of households are still without power.

Susan Candiotti is there and brings us up to date; Susan?

SUSAN CANDIOTTI, CNN CORRESPONDENET: Twice as many people lost power as did during Hurricane Ike, when that wind storm swept through Kentucky last September.

We're at a shelter now. You can talk about all the numbers in the world, but it comes down to how it affects people. You can see that, here in this particular shelter - it's the largest one in the city of Louisville - they are taking care of a lot of people. Four hundred passed through these doors yesterday; 200 people spent the night. And they're expecting at least that much if not about 100 or so more tonight, since a lot of people still don't have electricity in their homes. Someone who's kindly consented to answer a couple of questions for us right now is Jamie Gunnels.

And you've got little Ashton here, who is only 17 months old. Cute as a button, I must say. You came in here Wednesday night; what was the situation at home that led you here?

JAMIE GUNNELS, STORM VICITIM: We were just sitting there, getting ready to fix him something to eat and put him to bed. We were sitting there being thankful we still had power. About an hour later, it went out.

CANDIOTTI: Just like that at about 9:00 in the evening. Was there even a thought to try to tough it out if you could?

GUNNELS: No, because he's had a cold - runny nose and everything - and it would just be too cold. And couldn't see anything, so...

CANDIOTTI: And not only that, and I'm sure you don't mind my pointing out to your audience, you're in a wheelchair. You could walk, but you're suffering from spina bifida, is that correct?

GUNNELS: Yes.

CANDIOTTI: So here you are as a mom with this - having to deal with this added burden as well. How are you getting along?

GUNNELS: Pretty good. Everybody here has been real helpful and they've kind of adopted him as, you know, their own. Everybody - if I need to go to the restroom or change clothes or something, everybody's taking him. And he's just enjoying running around and playing with everything and everybody. We're doing pretty good. It's warm; place to sleep.

CANDIOTTI: Any idea of how long you might be here?

GUNNELS: They're saying seven to ten days. Hopefully it's not that long.

CANDIOTTI: How do you manage to keep your spirits up?

GUNNELS: Just talking to everybody. Being thankful for what we have. He's always - he always makes me smile.

CANDIOTTI: I can see why. Thank you very much. We hope that you are home just as soon as possible.

It's a tough situation here in the state of Kentucky because they're worried about the forecast for the early part of next week, when they're predicting even more snow. Hopefully most of the power can be back on by then.

Back to you.

WHITFIELD: And if not, Susan, hopefully there's still shelter for a lot of these folks, and perhaps even more, in which to turn to. Thank you very much, Susan Candiotti.

(WEATHER REPORT)

I'm Fredricka Whitfield. See you throughout the weekend; TJ Holmes is up next.