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Debating Stimulus; Phelps Photo Controversy; Weather Damage Severe
Aired February 02, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Plus tarnished gold. Olympian Michael Phelps admits his mistake after a pot-smoking photo surfaces.
It's Monday, February 2nd. I'm Heidi Collins. You are in the CNN NEWSROOM.
Well, it's bigger all right. But will it be better? Today the economic stimulus package makes its way to the Senate. Its price tag now about $890 billion. That's $70 billion more than the approved House version. The massive bundle of spending and job cuts could create about 244,000 government jobs and both Democrats and Republicans are calling for changes to it.
The stimulus plan, hundreds of billions of dollars of your money. Well, how much do you really know about it?
CNN's Christine Romans is part of the CNN money team. She'll take a closer look at some of the Senate provisions and how they benefit you. And Suzanne Malveaux is looking at the politics in play. So let's go ahead and begin now with Suzanne, our White House correspondent.
Suzanne, tell us a little bit more about what is on the agenda for today?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Heidi, obviously, there is some lessons learned here from the last go round. House Democrats largely crafted the legislation, at least their piece, without the input of the president.
He then weighed in after Republicans cried foul saying, look, a lot of these provisions do not necessarily create jobs. Immediately, we want some of this pork, some of these projects taken out. And that is when the president got involved, saying at least one family planning provision, at least, a program, $200 million, should be taken out of that bill.
We're going to see the president actively engage in reaching out to Republicans but also sitting down and talking to Democratic leadership today about some things that could be taken out of the Senate bill and some good ideas that he believes the Republicans have put forward.
I want you to take a listen to what he said on NBC earlier yesterday.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The important thing is getting the thing passed, and I've done extraordinary outreach, I think, to Republicans, because they have some good ideas and I want to make sure that those ideas are incorporated.
I am confident that by the time we actually have the final package on the floor, that we are going to see substantial support and people are going to say this is a serious effort, it has no earmarks, we're going to be trimming out things that are not relevant to putting people back to work.
(END VIDEO CLIP)
MALVEAUX: And, Heidi, there are some things that he's actually going to be supporting, that he's going to talk with Democrats and say, hey, I think that's a good idea. One of them, the alternative minimum tax patch. Ultimately what it does is it puts off the possibility of a lot of middle class taxpayers getting an additional tax that was intended for wealthier folks.
Another thing that he -- that he supports is an increase in a credit for homeowners, first-time homeowners, doubling that from $7500 to $15,000. That's another thing that could be included in the Senate bill that the president supports.
And, Heidi, not only talking to Democrats this afternoon, he is reaching out to Republicans. He is holding a meeting here with Jim Douglas of Vermont. He is a Republican governor who is here pushing for this economic stimulus package. He certainly hopes that the governor will lobby some of the Senate Republicans as well -- Heidi.
COLLINS: Yes, because, obviously, last time around, there wasn't a lot of Republican support. We know he's reaching out so we'll see how all of this goes down.
Thanks so much, CNN's Suzanne Malveaux, out from the White House for us this morning.
Well, the Senate stimulus plan, it is your money and parts of it could actually put some cash back into your pocket. So here with some specifics on that, CNN's Christine Romans.
So, Christine, we're actually talking about a measure that may help homeowners. A lot of people have been waiting a long, long time for this part of it.
CHRISTINE ROMANS, CNN CORRESPONDENT: That's right. Well, there's a couple of different things. You mentioned the price tag. The price tag of this -- the Senate version of the bill is greater because, as we reported to you last week, the -- Senator Grassley will likely get AMT tax relief in there, the alternative minimum tax. That would help middle class taxpayers who get hit with this millionaire's tax that was never the intent of that.
That's an expensive provision, about $69 billion. Then next step, there's a lot of talk about housing help. Still, many Democrats and Republicans, frankly, say there's not enough housing help yet in the stimulus. So, among the things -- remember, it's a work in progress, but among the things that senators are talking about are a 4 percent mortgage rate, a 4 percent fixed rate home loan. Also halting foreclosures for about 90 days.
That would help people who are in a little bit of trouble, it would help them have at least three more months to try to work out their problems with their lender. And also, you can't see the number there, but a $7500 homebuyer credit.
Now we've already talked about that. It's in the House version but there are senators who are saying that maybe they like to expand it to have more people qualify for the $7500 first-time homebuyer credit. And also some Republicans are talking about doubling it to $15,000.
Now back to that first item on there, that 4 percent fixed rate, 30- year home loan, could they get this through? Who knows? It sounds like something that they're going to put in the discussion here. Who would it -- who would qualify for this? It would be people with good credit, people who did not get caught up in all of the mistakes of the housing bubble.
This would be sort of a reward for people out who are able to get in and buy a home or refinance their home, people who, with good credit who have money to spend, who was seen as a little bit of a boon to the economy. That could be an expensive provision, too, though. I mean you have to have the government backing it. It could be expensive even as -- especially if mortgage rates start to rise.
So these are just some of the things that they're talking about in terms of more homeowner, home buyer rewards in the Senate version of the bill -- Heidi.
COLLINS: Well, that's the question. Obviously, you know, where does all of that money come from if we're going to add even more to it? Also, we have a new number to talk about this morning. A report that just came out on consumer spending.
Let me guess. Probably not terrific?
ROMANS: Yes. It's down for the sixth month in a row. And remember, we -- as we always say, I mean, for years and years, the American consumer has defied gravity. Well, no longer. Individual spending down 1 percent. Personal income is down so people are making less money so they can't spend as much money.
And now their savings rate, 3.6 percent in December. Remember, gosh. For a long time people have been saving close to nothing or even just a tiny bit. Now they're saving a little bit more. Not -- I don't think it's because they're being noble, Heidi. I think it's because they see the writing on the wall and they are trying to protect themselves a little bit and in some cases it's because they can't spend, they can't get any more credit to spend so they're spending a little bit less.
COLLINS: Yes. Yes, no kidding. All right.
ROMANS: Sure. COLLINS: Christine, sure do appreciate that. Thank you.
Meanwhile, Republican Senator John McCain says he'd vote against the current stimulus bill passed by the House. In fact, earlier this morning, he talked about one part of the bill that he thinks needs revision.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), ARIZONA: This crisis started with housing. It's going to end when we stabilize housing -- home prices. And I am convinced that a lot of the money that's gone into the banking institutions have not done any good because we haven't stabilized home prices.
We ought to go out, give people mortgages they can afford and be able to stay in their homes. That's goy to be a priority that I still don't think we have here.
(END VIDEO CLIP)
COLLINS: The former GOP presidential nominee also says he's working with a group of fellow Republican senators to come up with an alternative package.
Day 14 now of the Obama presidency. There's a lot on the agenda again today. This hour, the president will attend his economic briefing, happens every day. Later this morning, he meets privately with Vermont's Republican Senator Jim Douglas. Their focus, that Senate stimulus plan. Douglas supports the package. Most Republicans in the Senate do not.
This afternoon, the search for common ground. The president along with the vice president Joe Biden will meet with congressional leaders at the White House.
Also, on the White House radar today, this afternoon, Secretary of State Hillary Clinton will have her ceremonial swear-in at the State Department. She took the official oath of office less than two weeks ago in her Senate office.
And we'll soon have a new attorney general. The Senate is expected to confirm Eric Holder a little bit later today. If so he will become the nation's first African-American to hold that post.
As early as today, the Obama White House could nominate a commerce secretary as well. The leading candidate Republican Senator Judd Gregg of New Hampshire. The three-term lawmaker is known for being a fiscal conservative. New Hampshire Democratic governor will likely fill the vacancy with another Republicans. And that will leave Democrat just shy of a filibuster-proof Senate.
Kentucky looking for relief now after a devastating ice storm. At least seven deaths are blamed on the storm. The entire National Guard spread out across the state helping people recover. They are removing fallen trees, going door-to-door checking on house and giving out food and water.
All over the state, this is the scene. Trees knocked over and power lines down and tens of thousands of people, in fact, still without power this morning. Kentucky's governor said crews are working hard but he admits it is going to be a very long haul.
So more snow and cold temperatures for the Midwest and the south this week. Let's go ahead and get on over to meteorologist Rob Marciano now with more on all of that situation.
Boy, we keep on talking about the aftermath of that storm.
(WEATHER REPORT)
COLLINS: Yikes, what a mess. All right, Rob.
MARCIANO: All right. It's Groundhog's Day.
COLLINS: What was that? Oh that's right. Groundhog's Day.
MARCIANO: Yes. Big day today. So I guess we'll talk more about that throughout the day.
COLLINS: Yes, we will talk about a little bit later. It already happened but, don't tell me that, what the results.
MARCIANO: OK.
COLLINS: All right. Thank you, Rob. We'll check later on.
Meanwhile, the biggest challenge for the commander in chief yet. We've got more information coming in. Very shortly here about troop levels. We'll get that out to you.
Meanwhile, feeling pretty super. Pittsburgh Steelers hit the streets to celebrate their team's win. We check out the Super Bowl's thrilling finish. And we will talk about that right after a quick break.
(COMMERCIAL BREAK)
COLLINS: He wowed the world at the Olympics. Now superstar Michael Phelps is swimming in controversy that could tarnish his image.
(COMMERCIAL BREAK)
ANNOUNCER: Live breaking news, unfolding developments, see for yourself in the CNN NEWSROOM.
COLLINS: Celebrating in enemy territory. Some Pittsburgh Steelers fans mark their team's super win with their own touchdown. A dive on to a table filled of shaving cream. It happened to a bar outside Phoenix.
And what about the game itself? Like last year, it came down to the final seconds. CNN's Larry Smith has a wrap of the game.
(BEGIN VIDEOTAPE)
LARRY SMITH, CNN CORRESPONDENT (on camera): Few teams rise to become Super Bowl champions. Even fewer players rise up to make a play that will live through history. Faced with being known as a team that allowed the biggest comeback ever in a Super Bowl, the Steelers responded with a late game, two-minute drive tapped by Santonio Holmes' remarkable catch grabbing a Pittsburgh championship, a game's most valuable player award, and one of the most great moments in Super Bowl history.
SANTONIO HOLMES, STEELERS WIDE RECEIVER: Just thinking about all of the catches that have happened in Super Bowl history, you know, has made the game-winning catches. Man, I just definitely hope it goes down in history, you know? I wanted to be, you know, a superstar tonight and, you know, I became a superstar.
JAMES FARRIOR, STEELERS LINEBACKER: Oh, man, the catch was outstanding. I didn't know if his feet was in. I couldn't really see it when he caught it. I thought it might have been out of bounds but, you know, what a great play by Tony. He's been doing it all season. You know, big-time players make big plays in these type of games and we're world champions because of that play.
RYAN CLARK, STEELERS FREE SAFETY: To see Santonio catch that ball, you know, I mean, it's like one of those moments you can't close your mouth but you can't really scream. You know, you just, I was just in shock.
KURT WARNER, CARDINALS QUARTERBACK: Santonio, what a tremendous, tremendous catch to win the game. I mean, you know, what can you say? But that's what champions are about. And, you know, again, I'm going to tip my hat to them because they won this game. We didn't lose it. And, you know, and they are the world champs.
SMITH: Ben Roethlisberger grabbed his second Super Bowl ring and put a muzzle on his critics at the same time. The 26-year-old drove the Steelers defense to his first NFL title two years ago, but this championship was his. He completed 6 of 8 passes for 83 yards on that final drive to engineer the greatest comeback of his young career.
FARRIOR: All I was just thinking, you know, just be Ben, just be yourself, make the plays and be smart and, you know, that's what he did.
KEN WHISEHUNT, CARDINALS HEAD COACH: Ben has been a good player ever since I've been around him. I was very lucky to have him as a -- as a first-time coordinator and, you know, he's continued to grow into that position and he's a dangerous player.
BEN ROETHLISBERGER, STEELERS QUARTERBACK: Winning a Super Bowl is all that matters. I said before if I were to play worse and still won I was happy, but it does feel a little better this time. SMITH (voice over): The victory solidifies the Steelers as the NFL's preeminent franchise of the past 40 years, becoming the first to win six Super Bowls. And with Mike Tomlin, now the youngest head coach to win a Super Bowl at age 34, it would seem that this franchise for the ages is just getting started.
(END VIDEOTAPE)
SMITH: Mike Tomlin was hired at age 34 but actually now 36. And what a -- what a night to be there. A quick night last night and right back here in the same position to talk about it this morning. The buzz is still all over the city. The Pittsburgh Steelers setting that record.
And how about Santonio Holmes? He's the sixth wide receiver to win most valuable player award. Three of them have been Steelers. Incredibly. Lynn Swann, the great Hall of Famer.
COLLINS: Yes.
SMITH: Hines Ward three years ago and now Santonio Holmes.
COLLINS: Yes. Lynn Swann, I saw him there before the game. Wow. Unbelievable. It was such a fun game. It ended up being, you know, kind of slow in the beginning but totally worth it in the end.
Hey, Larry, what did you think about those, these 3D commercials? Did you have your glasses? I guess not because you were there, yes?
SMITH: Yes, I was here so we didn't get a chance to see them but the one complainant I've heard from people I've talked to last night and this morning is that not everyone knew that there was -- they were going to be 3D commercials so you spent all this money to produce it...
COLLINS: Exactly.
SMITH: ... but if people don't know about it and they don't have glasses then you kind of lose the effect.
COLLINS: Yes.
SMITH: So maybe next year, they'll think about that.
COLLINS: I felt the same way and I had no idea to where -- where I would go to get them. I mean it would seem like there should have been some sort of campaign...
SMITH: Right.
COLLINS: ... that said, hey, here is where you get them and blah blah blah. Anyway, it was about the football for me, loved it and glad you were there.
Larry, thanks so much. Sure do appreciate it.
SMITH: OK.
COLLINS: Also, before the big game there were cheers for another team that performed very bravely.
(BEGIN VIDEO CLIP)
ANNOUNCER: Please welcome the crew of U.S. Airways Flight 1549 who helped safely rescue 150 passengers on New York's Hudson River last month.
(END VIDEO CLIP)
COLLINS: Captain Chesley Sullenberger, otherwise known as Sully, and the crew of U.S. Airways Flight 1549 were honored last month. As you recall they saved all of the passengers aboard their flight on an emergency landing that a lot of people called the miracle on the Hudson.
Olympic star Michael Phelps leaves thousands of fans disappointed.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I think it would change my image a little bit of him but the fact that he came clean while other athletes have not proves that he can really step up and be a man about it.
UNIDENTIFIED FEMALE: I sort of held him in high esteem, especially for my sons who are athletes so, yes, it does kind of hurt me.
(END VIDEO CLIP)
COLLINS: What he did outside of the pool that has people talking.
(COMMERCIAL BREAK)
COLLINS: It could be decision day on U.S. troop levels in Afghanistan. We have details for you coming up from the Pentagon.
(COMMERCIAL BREAK)
ANNOUNCER: Breaking news, revealing developments, see for yourself in the CNN NEWSROOM.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Steelers, baby!
(END VIDEO CLIP)
COLLINS: Watching the Super Bowl from Baghdad. Soldiers of the 10th Mountain Division, including a few in team shirts, caught last night's game at their mess hall. With the time changing it was actually early in the morning there in Baghdad. Chicken wings, pizza and beer were on the menu anyway.
Soldiers had been granted a onetime exception to a military ban on drinking alcohol in combat zones.
We do have some breakings news to share with you now from the Pentagon. And it's probably the biggest challenge yet for the new administration. President Obama getting specific details today about sending additional soldiers to Afghanistan.
CNN Pentagon correspondent Barbara Starr is live now with more on this.
Good morning to you, Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Heidi. Well, it could, it could be as soon as today when Barack Obama makes his first decision as commander in chief about sending a substantial amount of numbers of troops into harm's way. He is going to be presented with the Pentagon's plan this week for sending up to 15 thousand additional troops to that war zone.
Now Defense Secretary Robert Gates got the plan late last week, according to several U.S. military sources we've spoken to, but decided that before he signed off on it, with only two weeks into this young presidency, it was time to take it across the river from the Pentagon over to the White House and brief top officials, including the president, of course, about the exact plans for sending those troops.
It's generally expected there will be two army brigades and a Marine Corps unit going to Afghanistan. Mr. Gates has said he wants them there by this summer. Security in that country is deteriorating every day and the troops are urgently needed.
This will, again, be the first time this president, as commander in chief, of course, will have signed off on sending that number of troops into a war zone -- Heidi?
COLLINS: OK. And Barbara, you know, we've been hearing so much about the stimulus plan for days and days and days now. I wonder about war time spending and there's a new report on that gives us an idea of what some of these costs are.
STARR: Well, absolutely right. Later this morning will be the first public hearing of a new commissioned created by Congress on wartime contracting in both Iraq and Afghanistan. One of the reasons it's so important, of course, is the amount of money at stake.
We've had an advanced look at what some of the testimony will be in that hearing. And according to what officials will tell Congress at this hearing is that U.S. taxpayers paid nearly $51 billion for projects in Iraq, but that much of it for reconstruction, rebuilding and some support for operations really went down the drain, because they were trying to rebuild Iraq while it was in the middle of a war.
There was friction between officials in Baghdad, officials in Washington, security was terrible. So a lot of that money went to waste. More than $100 billion, in fact, has been spent on contracting in both war zones and as Afghanistan heats up, Heidi, and they try and rebuild that country, this commission is hoping to offer some lessons learned about how to waste less money when you're try and rebuild -- Heidi?
COLLINS: Yes, all right. Important report. We appreciate that. Barbara Starr, thanks so much, live from the Pentagon this morning.
Tens of thousands of layoffs just in 2009 alone. But somebody is hiring. Uncle Sam. We'll tell you about that in a moment.
Meanwhile, we're just a few minutes away from the opening bell, as you know. That comes in about four minutes or so. We'll go back to the New York Stock Exchange live in just a moment.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: The opening bell for a Monday. Just about to ring on Wall Street now. Investors are hoping that stocks can rebound after steep losses at the end of last week.
Stephanie Elam is at the New York Stock Exchange now with more on how the trading day is shaping up.
Good morning to you, Stephanie.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good morning, Heidi. Most of the chatter, so far, has been about the Super Bowl. I can tell you that for sure. On my way in, that's what everyone was talking about. But it looks as though, as far as the markets are concerned, February will start just as poorly as January ended. It was the Dow and the S&P 500 worse January ever and, unfortunately, we're looking at a sharply lower open today.
We've already received the latest reading on personal spending which fell greater than expected 1 percent in December, continuing its downward spiral. Spending has dropped for six months in a row. Consumers are saving more and spending less in the wake of the ever worsening recession. Personal incomes, in the meantime, well, they dipped less that expensive, 0.2 percent in the period.
On the earnings front Mattel. They said they saw their fourth quarter profits fall by nearly half. The toymaker was hit hard by the stronger dollar and the weakest holiday shopping season in decades.
And AT&T, they announced late Friday that they have plans to freeze the salaries of 120,000 managerial employees this year as the telecom giant braces for a rough 2009 rough 2009.
Also want to give you a quick update on oil prices. They are sharply lower this morning, trading around 40 bucks a barrel, despite strike threats from U.S. refinery oil workers and word that OPEC member are generally complying with plans to reduce output.
All right. The markets are open. Let's take a quick look at the early numbers. The Dow off 74 points, 7925. NASDAQ off 14 at 1462. All three of the major averages are off about 1 percent at this time.
COLLINS: Yes.
ELAM: And in case you were listening to the opening bell, Heidi...
COLLINS: Yes.
ELAM: ... you may have heard some big cheers back there? Well, that's because New York Rangers legend Adam Graves was ringing the closing -- the opening bell.
COLLINS: Right.
ELAM: Yes, he's -- you know, one of the most popular players for the 1994 Stanley Cup championship team. The Rangers are retiring his number 9 jersey at Madison Square Garden tonight. So sport season not over here in New York anyway.
COLLINS: Yes. Well, maybe he can make some sort of a hat trick happen out there...
ELAM: Exactly.
COLLINS: ... at the stock exchange. Who knows?
(LAUGHTER)
COLLINS: Better keep him around.
All right. Stephanie, thank you.
ELAM: Sure.
COLLINS: Former senator Tom Daschle continues the fight to defend his nomination as secretary of health and human services. Mr. Daschle has a closed door meeting scheduled with the Senate Finance Committee a little bit later this afternoon. He has apologized to lawmakers for errors he made filing his personal income tax returns.
Some top Democrats are giving public statements of support for Daschle, despite his tax troubles.
A new measure of the grim economy. Just minutes ago, we did learn that U.S. consumer spending has fallen for the sixth straight month now and that is a new record. December's drop of 1 percent was actually more than expected.
Gas prices continue to creep up a little bit. AAA reporting the national average now for unleaded is $1.88 a gallon. That's up 1.3 cents from the previous day. This is the fifth consecutive increase, in fact. On the bright side, though, today's price is still 54 percent less than that record set back in July that we all remember very well.
California's budget crisis. Governor Arnold Schwarzenegger planning to meet with legislative leaders again today. The state is facing a $42 billion shortfall and is running out of cash needed to pay for everything from bills to tax refunds.
Beginning Friday, state workers are being forced to take two days off each month without pay.
(BEGIN VIDEO CLIP)
TAMIKO COLLINS-HEIM, STATE EMPLOYEE: There's nothing I can do about it so I'm not going to cry on what I'm going to do but I'm just going to figure out what to do, tighten up the belt a little bit, a little less fun time, more eating at home.
SCOTT BIRD, TX EXPRESS: People just concerned that they're not going to get anything. State workers, most people, are disappointed. Today was the last day that we could e-file and anybody haven't hope of getting money back directly from the state of California.
(END VIDEO CLIP)
COLLINS: On Saturday now, lawmakers failed to meet their own self- imposed deadline for a new state budget. We will stay on top of that story for you.
Meanwhile, still hiring in the middle of all the layoffs. One employer is looking for workers during these tough times. It's Uncle Sam.
Here's CNN's Kate Bolduan.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT (voice over): The pink slips keep piling up. The Labor Department reports a record 4.78 million people continue to claim unemployment benefits. But while so many companies are cutting jobs, one employer is hiring in a big way -- Uncle Sam.
UNIDENTIFIED MALE: Intelligence people. We're looking for human resource personnel. We're looking for mechanics.
BOLDUAN: Joe (INAUDIBLE) is with U.S. Custom and Border Protection, one of the many federal agencies looking for workers. So much so that agency held career days across the country this weekend with the goal of filling 11,000 jobs.
UNIDENTIFIED MALE: I think that patriotic is a great sour for CBP and that' -- a lot of times, that's one of the best reasons.
BOLDUAN: Patriotism is the draw for some job seekers at this event in Washington but the economy is undoubtedly part of the equation.
Jim McCartin has been in the private sector for the last 15 years.
JIM MCCARTIN, JOB SEEKER: I have a family, so the insecurity of the, of the corporate world has weighed on my head a little bit, weighed on my mind.
JI KWON, JOB SEEKER: It's almost like no job is safe out there but a federal government job is pretty and also something you could feel good about doing.
BOLDUAN: They're not alone. Last month, the FBI announced a hiring blitz. Posting nearly 3,000 job openings. The largest since immediately after 9/11. And the agency received 90,000 applicants.
The CIA is running television ads like this one. Federal employment specialist Kathryn Troutman says so much pain in the private sector and a new administration coming in is the drive behind a surge of interest in government work.
KATHRYN TOUTMAN, THE RESUME PLACE: Huge number first-timers. Private industry to federal is -- more than half of our client base now. Also, military to federal is always very important.
BOLDUAN (on camera): So why all of the job openings? Well, some argue it's growing government but a study released last year by the nonpartisan group, Partnership for Public Service, reports it's an aging work force. According to the study, by 2012 the federal government will lose more than 500,000 employees, the majority to retirement.
Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
COLLINS: Michelle Obama filling out her new role as first lady more today. She is heading to the Department of Education to visit staffers and give a talk. Education issues were close to the heart of her predecessor Laura Bush but no word yet on what causes Mrs. Obama may champion as first lady.
Major cleanup under way in Kentucky after a devastating ice storm. Kentucky's governor warns it's going to be a long haul. Tens of thousands of people still without to you power this morning. Kentucky's entire National Guard now out helping victims.
Well, CNN national correspondent Susan Candiotti shows what they are doing in Breckenridge County.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice over): Kentucky's air and National Guard going door-to-door or should we say farmhouse to farmhouse?
UNIDENTIFIED MALE: How you doing, sir?
CANDIOTTI: Checking out residents like unsuspecting 83-year-old Paul Jenkins who saw a uniform trudging down his driveway.
UNIDENTIFIED MALE: So did you have some pretty significant damage here to your home?
CANDIOTTI: He and his wife are using water stored in buckets. They have medicine, but no power. Using kerosene for heat.
UNIDENTIFIED MALE: We lose power here, we're in trouble because (INAUDIBLE).
CANDIOTTI: Across the Breckinridge County's rolling hills, winding roads are seeing daylight again after locals endured nightmarish conditions.
UNIDENTIFIED MALE: I drove about six miles in what seemed to be a glass tunnel because normally the road is open and the trees on either side had bowed together.
CANDIOTTI: The guardsmen have about 550 square miles to cover. Houses are far apart.
MASTER SGT. KEVIN KAUFMAN, KENTUCKY NATIONAL GUARD: And there's some total losses over there in some of the cabins and homes.
CANDIOTTI (on camera): But everyone was all right?
KAUFMAN Everyone was all right.
CANDIOTTI (voice over): Power could be out for another week or longer in some hard to reach areas. As snow and ice melts, things are getting messy. For the Kentucky Guard, it's the biggest call-up in the state's history.
UNIDENTIFIED MALE: Well, we're working our way, we're working our way down through there.
CANDIOTTI: The Grigsbys haven't waited for help to clear their four acres. Despite the blackout, they are getting buy.
UNIDENTIFIED MALE: You know, we're survivors. You know, times like this, you have to do what you got to do.
CANDIOTTI (on camera): People here have done a very good job of keeping track of each other. Still, what the guardsmen are doing is not a waste of time.
KAUFMAN: You never know when there's going to be one person that's out there that is overlooked and I pray we don't find that person but if we do, then we're here for that so.
CANDIOTTI (voice over): So it's on to the next house and the next, until everyone is accounted for.
UNIDENTIFIED MALE: Appreciate you coming.
UNIDENTIFIED MALE: Sure thing. You're welcome.
CANDIOTTI: Susan Candiotti, Breckenridge County, Kentucky.
(END VIDEOTAPE)
COLLINS: Well, it's more snow and cold temperatures for the Midwest and the south this week, unfortunately. Want to back to meteorologist Rob Marciano for a little bit more on this. But not the same exact areas? Right? MARCIANO: Well, cold air is going to pretty much filter into the same areas.
COLLINS: Really?
MARCIANO: They're getting a little snow in Kentucky now but that shouldn't be too bad.
(WEATHER REPORT)
MARCIANO: Got a couple of iReports we want to show you. Liz Palmer, she's a teacher in Louisville and she sent these in. Classes canceled for the week last week. Still over a hundred thousand people there without power. She says everything in town pretty much is down as far as -- even those big trees. Big decades old trees there being weighted down by that ice and slow go in some cases just completely conservative.
(WEATHER REPORT)
COLLINS: That does sound great, toasty.
MARCIANO: Yes.
COLLINS: All right, Rob. Thank you. Appreciate it.
MARCIANO: Thanks. You got it.
COLLINS: Hard to get your head around those big jobless numbers? Well, we're going to put it in context for you and maybe you might be a little bit surprised by what we found.
That's coming up
And America's golden boy, Michael Phelps, apologizing for a controversial picture.
(COMMERCIAL BREAK)
COLLINS: More fighting breaks out in Gaza despite a two-week-old cease-fire. Israeli took out a police station and some tunnels in the area controlled by Hamas. This after rockets fired for three Israelis yesterday.
An American U.N. official now in the hands of Pakistani militants. Kidnappers grabbed John Solecki in broad daylight and killed his driver. Solecki runs a United Nations office that helps refugees in southwestern Pakistan. The U.N. condemned the attack and says it is doing everything it can to get him back.
Police in Kenya dropped all charges against President Obama's half- brother. Authorities arrested George Obama during a drug raid in Nairobi on Saturday charging him with marijuana possession and resisting arrest. But now police say he was just around some people who had pot on them. George Obama and his famous brother grew up a world apart and barely know each other. Olympic star Michael Phelps says he is sorry after a controversial picture surfaces of him smoking pot.
CNN's Don Lemon looks at what his fans have to say and if it could impact his career.
(BEGIN VIDEOTAPE)
DON LEMON, CNN ANCHOR (voice over): Say it ain't so. Is this really America's Olympic hero? Smoking pot from a bong?
UNIDENTIFIED FEMALE: I sort of held him in high esteem, especially for my sons who are athletes. It does kind of hurt me.
LEMON: This amateur photo of a man in profile lighting a bong, lips to pipe, began circulating on the Internet this weekend.
UNIDENTIFIED FEMALE: He's human. Let the man live. You know? If he wants to smoke a marijuana joint, I don't see any wrong with it. I mean this guy -- it's in his system 24/7, it's not steroids.
LEMON: Rumor became fact after London's news of the world published the picture and Phelps 'fessed up saying, "I engaged in behavior which was regrettable and demonstrated bad judgment. I am 23 years old and despite the successes I've had in the pool, I acted in a youthful and inappropriate way, not in a manner people have come to expect from me. For this I am sorry. I promise my fans and the pubic it will not happen again."
But in 2004, Phelps was arrested in his home state of Maryland on suspicion of drunk driving. Then he told ESPN, "I'm 19 but was taught that no matter how old you are you take responsibility for your actions which I will do. I'm extremely sorry."
He could be sorrier if public support starts to dwindle.
UNIDENTIFIED FEMALE: Really disappoints me because I -- you know I thought he was this great all-American athlete that was, you know, abiding by the rules.
LEMON: The U.S. Olympic committee agrees but says they are confident that going forward, Michael will consistently set the type of example we all expect from a great Olympic champion.
But the jury is still out on advertisers who have committed more than $100 million to the Phelps brand.
Don Lemon, CNN, Atlanta.
(END VIDEOTAPE)
COLLINS: Is spring going to be here sooner or later? It's Groundhog Day, you know. We've got the answer.
(COMMERCIAL BREAK) COLLINS: Grocery store chain Kroger now pulling items some shelves due to the nationwide salmonella outbreak as a precaution. Kroger is recalling select store baked and store packaged cookies and cakes made by the Peanut Corporation of America because they could be contaminated with salmonella.
Kroger says no illnesses have been reported.
And a recall has been issued for Enoki mushrooms produced by Philips Mushroom Farms in Pennsylvania. The mushrooms packed in clear plastic bags with blue or green graphics and sold from January 13th to the 30th. Preliminary test results show potential Wisteria contamination. No illnesses have been reported there either.
Some people in Indiana saying good-bye to their temporary winter wonderland. They were hit by an ice storm over the last week. Here's some pretty good video from iReporter of the ice slowly melting and then raining into her backyard.
If you have any videos or pictures you'd like share, you can always send them to us right here ireport.com.
Putting the groundhogs on the spot. It's their big day, you know,. Punxsutawney Phil is telling us whether it's going to be a longer, colder winter. So did you see his shadow?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hear ye, hear ye, hear ye. On Gobbler's Knob on this glorious Groundhog Day, February 2nd, 2009, Punxsutawney Phil, searer or searers, prognosticator of all prognosticators, awoke to the call of President Bill Cooper. He greeted his handlers, Ben Hughes and John Griffins.
After a casting a joyful eye towards thousands of his faithful followers, Phil proclaimed that his beloved Pittsburgh Steelers were world champions one more time. And as he looked, a bright sky above me showed my shadow beside me, so six more weeks of winter it will be.
(END VIDEO CLIP)
COLLINS: Yes, and they'll be celebrating probably in that part of the country for six more weeks, too, because of that Super Bowl win, right?
MARCIANO: Yes.
COLLINS: Our Rob Marciano is talking with us now.
MARCIANO: Hi. Not sure why I'm here, but, you know, it's a big day for weather folks, I suppose.
COLLINS: Yes, it is.
MARCIANO: Six -- as luck would have it, spring, the official start of it is around six weeks from now give or take a few days. COLLINS: Really?
MARCIANO: You know?
COLLINS: So the whole thing has been a sham? Year after year after year?
MARCIANO: It's not been a sham. And further the sham, I looked at several observation stations around Punxsutawney, I don't have one in.
COLLINS: Like you do, right?
MARCIANO: And all of them said overcast this morning. So where his shadow was coming from, maybe, maybe a conspiracy.
COLLINS: Well, maybe one of his handlers. I don't know if you've heard that, but they said that he's got a handler. You don't have a view of a handler.
MARCIANO: No, I don't.
COLLINS: But maybe he was like shining a light in a certain way that...
MARCIANO: It looks like...
COLLINS: ... perhaps produce the shadow.
MARCIANO: There's a lot of media there so the -- TV lights certainly could help. Did you see all of the people there?
COLLINS: Yes. It's a huge day for them very year.
MARCIANO: 30,000 or 40,000.
COLLINS: It's a huge, huge day.
MARCIANO: And, of course, Pittsburgh won, as well. So it's good. You know, I - just got me thinking about the other night, because everybody has a groundhog, it seems.
COLLINS: Yes.
MARCIANO: You know any of the other names?
COLLINS: No.
MARCIANO: Listen, there's Staten Island Chuck.
COLLINS: Really?
MARCIANO: Yes.
(CROSSTALK)
MARCIANO: What do you think, this is a high big time television production? No.
COLLINS: This seems like a highly produced segment.
MARCIANO: Yes, this is my research that I did on the Web.
COLLINS: On this (INAUDIBLE).
MARCIANO: Yes, General (INAUDIBLE) lee, Sir Walter Wally. That sounds regal.
COLLINS: OK. Yes, sure.
MARCIANO: Buckeye Chuck, and my favorite, Spanish Joe. I don't know...
COLLINS: I don't even know what all those guys do. OK.
MARCIANO: Well, they're...
COLLINS: Looking for their shadows too?
MARCIANO: Yes, they are.
COLLINS: OK. Got it.
MARCIANO: Anyway, congratulations to Punxsutawney, the rest of the Groundhogs and to, of course, that was a great -- did you watch the game last night?
COLLINS: I did. I did. It was rough.
(CROSSTALK)
COLLINS: I was a little sad, I've got to say.
MARCIANO: (INAUDIBLE) Cardinals.
COLLINS: Yes. I was. I was.
MARCIANO: They won in style, though. They won in style.
COLLINS: Yes.
MARCIANO: I mean...
COLLINS: A lot of penalties. We could talk all day. Do we have a show to do? I think we actually do. But hey...
MARCIANO: Look at that.
COLLINS: Look, putting some video up. Yes, this was a...
MARCIANO: There's Harrison tumbling for a long...
COLLINS: Infinitely long run.
MARCIANO: I'll tell you...
COLLINS: Longest ever, yes? Super Bowl history?
MARCIANO: Big boy, this guy can move.
COLLINS: I know.
MARCIANO: I mean he's hurdling, he's bobbing, he's weaving and spinning.
COLLINS: Yes, but later he tried to beat a guy up.
MARCIANO: Yes, it's a violent game. You know? Emotions get...
(CROSSTALK)
MARCIANO: Yes, he did look a little angry. Anyway, congratulations.
COLLINS: It's always been our dream to be sportscasters.
All right, Rob Marciano, thanks so much. Appreciate it.
MARCIANO: Sure.
COLLINS: Putting the jobless picture in perspective. In a moment we look at some easier ways to figure out those numbers.
(COMMERCIAL BREAK)
COLLINS: Well, if this isn't a glaring sign of the times, it's pretty close to it. Check out the legion of people camped out in Miami waiting to be interviewed. More than 200 people looking to join the ranks at Miami fire and rescue.
I slipped outside to ensure their place at the front of the line.
(BEGIN VIDEO CLIP)
EDUARDO GARCIA, HOPEFUL APPLICANT: It's a great job. It's great pay. You get to help people, and there's nothing like saving someone's life. I'm hoping to get hired. I think I can be a great asset to the department. I wish the best for everybody.
(END VIDEO CLIP)
COLLINS: While most of them spent the night in sleeping bags on a cold Miami night. At this point, all we can do is wish them luck. That's for sure.
Three million, 5 million, 11 million. How many Americans do you think are unemployed right now? Well, that real number might actually astound you. There are now enough jobless Americans to fill two major cities or a medium-sized state.
Here's more now coming from Josh Levs. JOSH LEVS, CNN CORRESPONDENT: This is one of the latest statistics we've been seeing for unemployment in America. This 4.8 million figure. Now that's the number of people collecting unemployment benefits, but that does not include people without jobs who are not collecting those benefits. And for some of them, benefits have run out.
So this is how many Americans the government says are unemployed. It's a little more than 11 million. A huge figure, we're putting it in context for you this way.
Check this out, New York City's population, 8.3 million. Let's go over to Chicago, population there 2.8 million. Put those two major U.S. cities together and you have combined 11 million, the same number of people the U.S. says are unemployed.
We've got another example for you. We're going to go over to Ohio. These are figures from the census, the population in Ohio, just over 11 million, about the same number as the number of unemployed people in America.
All right, let's zoom past a few more examples just to keep giving you this kind of context. More unemployed Americans than people in the state of Georgia. More unemployed Americans than residents of Missouri, Iowa, and Nebraska all combined.
And let's shoot out west for a second. We're going to check that out. Los Angeles has a population of 3.8 million. Now you could multiply the population of that city by three to match the number of unemployed Americans.
Of course, this is all just one way to look at that big number, get a sense of how huge it is. And keep in mind, that does not include those considered underemployed who just can't get as much work as they'd like -- Heidi?
COLLINS: All right, Josh. Thanks so much. Always trying to get those numbers in perspective for you.
Meanwhile, also want to get the weather situation in perspective because we've been dealing, at least across the midsection of the country, with a really, really, rotten ice storm, and now the aftermath has still got thousands and thousands of people, Rob, that don't have any power.
(WEATHER REPORT)
COLLINS: Yes, yes. All right, Rob. We'll stay on top of that with you. Thank you.
MARCIANO: All right.
COLLINS: All eyes on Capitol Hill, Senate takes up its version of the stimulus bill. What makes this plan different?
And stretching your food dollar on food stamps. A challenge even tougher in a troubled economy.
It's Monday, February 2nd. Hi, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.
