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Show Us the Bailout Money; Stimulus Reality Check; Executive Pay Caps; Senate Stimulus Showdown; Jobs on the Block

Aired February 04, 2009 - 12:00   ET

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

DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon in the CNN NEWSROOM, live at the CNN world headquarters in Atlanta. Tony is off today.

Here are the headlines from CNN on this Wednesday, the 4th of February.

(BEGIN VIDEO CLIP)

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: Well, I think this was a mistake. I think I screwed up, and I take responsibility for it, and we're going to make sure we fix it so it doesn't happen again.

(END VIDEO CLIP)

LEMON: A softer tone from the White House. An apologetic president admits to early personal missteps. This hour, extended portions of Mr. Obama's interview with CNN's Anderson Cooper.

And the president sends a signal to Wall Street. The era of mega salaries and monster bonuses, that is over. That's it if you want taxpayer bailout money.

All right. President Barack Obama this morning, really a shot across the bow when it comes to CEOs. He says if your company takes government bailout money, be prepared to take a pay cut. The president unveiled a plan to limit executive pay. He did that just last hour.

And our White House Correspondent Suzanne Malveaux listened in on that. She joins us now from the White House -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, Don. Obviously President Obama, as well as the treasury secretary, Tim Geithner, taking on the fat cats. That was part of their message today.

They want the American people to be confident that their taxpayer dollars are being spent responsibly. So the main highlight of all of this was that CEOs would be capped at salaries to $500,000.

Now, this is for the big companies, the biggest companies who have actually borrowed quite a bit of money, taken advantage of the federal bailout money. We're talking about the kinds of companies like AIG, $152 billion that they got from the federal bailout, or Citigroup, $325 billion. These are the kinds of corporations that the administration says has to be more responsible, that they have to limit their compensation. And it is all about, Don, trying to create a sense of confidence now that people are going to see their money being used wisely and that the economy is going to turn around.

Take a listen.

(BEGIN VIDEO CLIP)

OBAMA: This is America. We don't disparage wealth. We don't begrudge anybody for achieving success. And we certainly believe that success should be rewarded. But what gets people upset, and rightfully so, are executives being rewarded for failure, especially when those rewards are subsidized by U.S. taxpayers, many of whom are having a tough time themselves.

(END VIDEO CLIP)

MALVEAUX: And Don, part of the purpose of the president's announcement today is obviously to try to put pressure on members of Congress to get through, to pass the economic stimulus package in the tune of $900 billion. He's really putting pressure on them.

He said today there is a sense of urgency that if they did not act, that this crisis would turn into a catastrophe -- those are his words -- and that it would guarantee a longer recession. So we saw actually some Republican governors here at the White House early in the week. Today, it was a group of nearly two dozen mayors from around the country who also came out to the stakeout cameras and said they are putting pressure on members of Congress as well. They believe this economic stimulus package should be passed.

And I want you to take a listen, Don, to one of the mayors who came out and made that position very clear.

(BEGIN VIDEO CLIP)

MAYOR DONALD PLUSQUELLIC (D), AKRON, OHIO: It may be fun and games up here for senators to argue details and get down in the weeds. But, just as mayors have to do in facing issues firsthand, when the snow hits, we've got to get it off the street, we've got to get the garbage picked up, we have to respond with police and fire.

There are immediate needs in our society right now. The senators need to stop business as usual here in Washington and get to work on a bill that can be presented to get people back to work.

(END VIDEO CLIP)

MALVEAUX: So Don, what you're seeing is part of this initiatives put forward by the administration, but also a real public relations campaign using Republicans, using the mayors, the governors, anybody who supports this plan, to get out there publicly and say this is something that has to happen, and it has to happen quickly. The president still expressing a sense of hope that he can get that legislation to his desk in the next couple of weeks, but as you know, Don, this has been quite a tough sell.

LEMON: Yes. Most cities around the country facing huge economic problems. I know Atlanta is, and many other cities are as well.

Let's get to -- can we go to Tom Daschle, talk about Tom Daschle, Suzanne? What is the fallout on this? What happens next?

MALVEAUX: Well, certainly, they go back to the drawing board when it comes to the vetting process. They're looking at possible alternatives for the health and human services position. But greater than that, Don, what we saw here is really a lesson learned.

The question came up in the vetting process, whether or not this had failed. President Obama saying that he took responsibility for at least the failure on Daschle's and a couple of other people's part, that it did not work so well. In the president's words, he said that he essentially screwed up. And the question was whether it was naivete or hypocrisy, that the bar had been raised to the point where he had to break his own rules or set some exceptions in order to fill his cabinet.

Clearly, the president has expressed confidence in the process, but also acknowledging that things did not go so well the last couple of days. But they're hoping to get that behind them, move forward, and find some folks who actually will meet that standard -- Don.

LEMON: A work in progress. A work in progress.

All right. Thank you very much for that.

Suzanne Malveaux at the White House.

We want to take a look now at President Obama's schedule on day number 16, day 16.

As we mentioned, last hour he unveiled salary limits for executives of companies receiving bailout money. A meeting with Secretary of State Hillary Clinton and Mideast envoy George Mitchell was next on the agenda. And later, the president signs the SCHIP bill to expand the health insurance program for low-income children. A very busy day there.

The Senate is wrangling over amendments and alternatives to that massive economic stimulus bill.

Let's get an update now on where that stands, and Senior Congressional Correspondent Dana Bash, who joins us now from Capitol Hill.

Dana, where does it stand, that stimulus package?

DANA BASH, CNN SR. CONGRESSIONAL CORRESPONDENT: Well, it stands in a state of limbo. And that is because they are certainly having rigorous and vigorous debate on the floor of the Senate. But at this point, you know, as we have been talking about for the past couple of days, it is abundantly clear that the form that it is in now, as Suzanne was talking about, a nearly $900 billion stimulus package, it does not seem to have the votes to pass. And that is not just because of Republican opposition, but even more importantly, and interestingly, because of the fact that there is an increasing number of Democrats who are clearly uncomfortable with what they consider excess spending in this bill.

And I've got to tell you, we stumbled on a meeting last night with about 14 Democratic senators. Many of them are new senators from conservative states who were talking with Senator Ben Nelson of Nebraska, who's kind of been leading the charge among Democrats to try to find a way to put something on the Senate floor that strips out tens of billions of dollars and maybe dozens of programs in this legislation. And that's what the Democratic leadership and Barack Obama is sort of confronting in that, if they want to get this done, it seems that that is something that they're going to have to likely compromise on.

And today you heard Suzanne talking about Barack Obama having the mayors at the White House, but we also are going to see two Republican senators, Susan Collins and Olympia Snowe of Maine. They're going to go and have one-on-one meetings with the president of the United States.

In fact, I just spoke with Susan Collins. She has been one of those working with the Democrats, looking for a bipartisan solution. And she said she is going to tell the president that she understands he could try to pick off a couple of Republicans, people like her. But if he really wants to do this in a bipartisan way, he's going to have to listen to concerns.

And one of those big concerns is, how much spending is in this bill that many people think just doesn't do the trick? And that is to create jobs.

LEMON: All right. Dana Bash from Capitol Hill.

Dana, we appreciate it. Thank you very much.

Electronics giant Panasonic is joining the list of companies that are on a job-cutting binge. Panasonic will lay off 15,000 workers and shut 27 plants over the next 13 months. About half of those jobs will be on Panasonic's home turf in Japan, but a lot of them are going to be around the world.

And CNN's Christine Romans is at the business desk in New York to fill us in on that and much, much more -- Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Don.

And this is what it's all about, right? The stimulus, the financial market rescue, everything that we're talking about in Washington and Wall Street, this is what it's about. It's about creating jobs.

We know that we haven't seen this many job cuts in seven years. We know that 98 percent of American cities are seeing their joblessness rise. We know that the national unemployment rate now is about 7.2 percent, and we're going to get another reading on that on Friday, which is expected to be, again, pretty grim.

It's going to show what we all know, that companies have been slashing headcount every single day for the month of January. So we'll get that report on Friday. It's expected to be pretty grim.

This is what it's all about. The president, when he spoke earlier today with Tim Geithner, he didn't get to the CEO pay cut -- pay limitations until the third thing he said. The first thing he talked about was the deepening pain for the American people in terms of the economy and what they're feeling. And the second thing he said was about, you know, the financial system and how they're going to be announcing a big overhaul of the financial system maybe later next week.

So, you know, the pay thing is third on the list on what the president was talking about -- Don.

LEMON: Yes, third on the list. But you know what? We've heard that the president's plan to limit executive compensation for those CEOs, certain CEOs, not all of them.

How hard is it going to make for those companies to do business? Is it going to make a difference there?

ROMANS: Well, here's the sort of devil's advocate view that I'm getting from a lot of my sources on Wall Street and in the business world, who are saying, look, how are you going to attract very top talent for a company that's in major, major trouble if you kick out the old CEO and you need to get a new one, and you say, we can only pay you $500,000, and there really aren't a lot of perks involved with this? They think that it's going to limit their ability to attract talent for turning around a company.

That's at least what they're saying about it. They're concerned about the government putting strings on what is still, frankly, a free market.

I mean, the government didn't nationalize these banks and these companies. It is still a free market economy with certain restrictions. So there is a big debate about it now.

Now, when I call people on Wall Street and I say, "What do you think about this?" they say, "Well, I really don't want to talk about it." I say, "What do you think about this off the record?" and I get a real earful.

They just -- they say two wrongs don't make a right. You know, they say that government intervention again isn't going to make it better.

And a few people pointing out to me, Don, that it looks like it would be pretty hard to trigger these CEO pay caps. It has to be exceptional help. It looks like it would only really be AIG and Citigroup which would really qualify for these restrictions as they are right here.

You know, the president is trying to restore confidence. That is what this is really all about. You've got to restore confidence.

LEMON: All right. Christine Romans, yes, we do have to restore confidence. And let's hope we get around to doing that very soon.

ROMANS: Right.

LEMON: Thank you so much.

Christine was talking about the president's plan. Our Anderson Cooper sat down with the president yesterday and spoke bluntly about the loss of Tom Daschle from his cabinet and his efforts to get a stimulus plan passed, and get it passed soon. You're going to want to stick around to hear what he had to say.

(COMMERCIAL BREAK)

LEMON: Welcome back, everyone.

CNN iReporters are not mincing words about Tom Daschle and the unpaid taxes that cost him his cabinet nomination.

Here's reaction from iReporter David White.

(BEGIN VIDEO CLIP)

DAVID WHITE, IREPORTER: Could you believe what Tom Daschle -- Tom Daschle, I can't believe you did this. First of all, it's difficult to fathom how you could possibly expect to get a free pass on failing to acknowledge these tax errors when you sat on the committee that wrote the tax laws. There are no mitigating circumstances whatsoever for that level of behavior.

(END VIDEO CLIP)

LEMON: Outspoken there.

Another iReporter weighing in. Kaywood Hopkins of Seattle says he's glad President Obama is taking the blame for vetting shortcomings in the Daschle debacle.

(BEGIN VIDEO CLIP)

KAYWOOD HOPKINS, IREPORTER: In over eight years of George Bush, did we ever hear him say, "I screwed up," "I messed up"? No!

(END VIDEO CLIP)

LEMON: There's no denying Tom Daschle's tax troubles are a distraction as President Barack Obama tries to sell his stimulus plan to Washington, to the country, and really to the world.

Take a look.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, HOST, "AC 360": You've let one of the most important domestic issues, which is health care, get caught up in what looks to many Americans like politics as usual.

OBAMA: Well, I think what happened was is that Tom made an assessment that, having made a mistake on his taxes, that he took responsibility for, and indicated was a mistake, made the assessment that he was going to be too much of a distraction in trying to lead what is going to be a very heavy lift, trying to deliver health care.

And...

COOPER: Do you feel you messed up in letting it get this far?

OBAMA: Yes. I think I made a mistake. And I told Tom that. I take responsibility for the appointees and...

COOPER: What was your mistake? Letting it get this far? You should have pulled it earlier?

OBAMA: Well, I think my mistake is not in selecting Tom originally, because I think nobody was better equipped to deal both with the substance and policy of health care -- he understands it as well as anybody -- but also the politics, which is going to be required to actually get it done.

But I think that, look, ultimately, I campaigned on changing Washington and bottom-up politics. And I don't want to send a message to the American people that there are two sets of standards, one for powerful people, and one for ordinary folks who are working every day and paying their taxes.

COOPER: Do you feel you have lost some of that moral high ground which you set for yourself on day one with the ethics reform?

OBAMA: Well, I -- you know, I think this was a mistake. I think I screwed up. And, you know, I take responsibility for it. And we're going to make sure we fix it so it doesn't happen again.

COOPER: Let's talk about the economy, the stimulus. Every day, you get an economic briefing, along with an intelligence briefing. Which, to you, is more sobering, the economic news you get or the national intelligence?

OBAMA: Well, look, the national security briefing is always sobering, because my most important job is obviously keeping the American people safe. And we have to remain vigilant. The threats are still out there.

But I will tell you, in terms of what is alarming right now, is how fast the economy has been deteriorating. I think, even two or three months ago, most economists would not have predicted us being in as bad of a situation as we are in right now. And...

COOPER: It keeps a lot of Americans right now up at night.

OBAMA: Absolutely.

COOPER: Does it keep you up at night? OBAMA: It keeps me up at night, and it gets me up...

COOPER: Literally?

OBAMA: ... literally, because -- because we have got a range of different problems, and there is no silver bullet. We're just going to have to work our way through the problem.

So, number one, we have got to have a recovery package that puts people back to work and ensures that states that are dealing with rising unemployment can deal with unemployment insurance, can provide health care for people who have lost their jobs. So, that's one set of problems.

Then, you have got a banking system that has undergone close to a meltdown. And we have got to figure out, how do we intelligently get credit flowing again, so that small businesses and large businesses can hire people and keep their doors open and sell their products?

And, you know, part of the problem, unfortunately, is, is that the first round of TARP, I think, drew a lot of scorn. You know, we learned -- you know, we have now learned that, you know, people are still getting huge bonuses, despite the fact that they're getting taxpayer money, which I think infuriates the public. So, we also have to set in place some rules of the road. And tomorrow, I'm going to be talking about executive compensation and changes we're going to be making there.

Even after we get that done, we still have to get a financial regulatory system in place that assures this crisis never happens again. And we have got to do this in the context of a world economy that is declining, because, in some ways, the Europeans are actually doing at least as badly as we are.

You have even seen China, which has been growing in leaps and bounds over the last two decades, starting to decline. So, trying to do all those things on parallel tracks, at a time when people are scared -- and legitimately so -- I think, is going to be a big challenge.

I think we're up to the challenge.

COOPER: On the stimulus plan for you, what is non-negotiable with Republicans?

OBAMA: The unemployment insurance, health care for people who have lost their jobs, you know, providing some relief to the states on those fronts, and providing families relief, that's very important.

Infrastructure investments that lay the groundwork for long-term economic growth, I think, is critical. You know, so, for example, when we say we're going to weatherize two million homes, that's not just make-work. First of all, you can employ people weatherizing those homes. We are also then saving families, individual families, on their energy bills. But the third thing is, it's making this country less dependent on foreign oil. So, the same is true for health, IT. The same is true when it comes to education. We want to train thousands of teachers in math and science, and invest in science and technology research. All those things will make us more competitive over the long term.

What I do think is negotiable is some programs that I think are good, good policy, but may not really stimulate the economy right now.

COOPER: But how did they even get into the bill in the first place?

OBAMA: Well, Anderson...

COOPER: I mean, why did it get this far?

OBAMA: ... you know, there are 535 members of Congress who have their own opinions about...

(LAUGHTER)

COOPER: Do you think some of the House Democrats went too far?

OBAMA: You know, I think that, if you look at -- first of all, I think, in fairness to the House Democrats -- and this hasn't been talked about enough -- if you tally up all the programs that have been criticized on "AC 360" or anywhere else, that amounts to less than one percent of the total package. So, they actually were remarkably disciplined, considering the size of this package. We have -- they left out, at my request, all earmarks, so there aren't private pet projects. And by the way, many of the critics of the current package can't say that about any of the budgets they passed over the previous six or eight years.

COOPER: But this is what American people are hearing about, whether rightly or wrongly. And, I mean, did the -- did the Republicans beat you on selling this, on selling the message? Did you lose the message?

OBAMA: Well, no, no, I don't think we've lost the message. That's why I'm here with you. Everybody is going to be watching me talk to you today.

But I think that the American people understand something has to be done. They want to make sure that we're serious about it and that we're not using this to promote politics as usual. And that's what I'm insisting on.

You asked earlier, do I lose sleep? Look, the only measure of my success as president, when people look back five years from now, or nine years from now, is going to be, did I get this economy fixed?

I have no interest in promoting a package that doesn't work, because I'm not going to be judged on whether or not I got a pet project here or there. I'm going to be judged on, have we pulled ourselves out of recession?

(END VIDEOTAPE) LEMON: It's just getting interesting. There's much, much more. That wasn't it. We've got more for you from President Barack Obama.

Find out why he doesn't use the term "war on terror," and how his battle to quit smoking, how that's going. Our Anderson Cooper has that and much more coming up a little bit later on in this hour.

Meantime, a representative for the California mom who just gave birth to octuplets was on "LARRY KING LIVE" last night. Larry asked her about rumors her client is trying to turn her life into a reality show.

(COMMERCIAL BREAK)

LEMON: This was our breaking news earlier in the day. FBI investigators are at the scene right now of an apparent car explosion that critically injured the chairman of the Arkansas Medical Board.

It happened in West Memphis, Arkansas, shortly after the doctor got into his Lexus hybrid. That's the SUV there. The hood blown up, there's extensive damage to the front end. And our affiliate WREG is reporting that police do not suspect foul play in this and that they are looking into the possibility that the car malfunctioned.

We're following the developments on this story and we'll update you as soon as we get some more information on it.

Well you have probably had just about enough of winter, but it is not through with us just yet. I mean, it's just -- February is just staring. We still have a ways to go.

Kentucky taking another lashing. Heavy snow showers made a complete mess of the roads yesterday. More than 200,000 people in that state still don't have power from last week's ice storm.

And check out the scene in North Carolina today. About an inch expected to fall in places like Charlotte. We're talking about snow. Six inches of snow in the mountains. Some schools are closed. Drivers are being urged to stay off the roads there.

(WEATHER REPORT)

CHAD MYERS, CNN METEOROLOGIST: I guess they like that too.

DON LEMON, CNN ANCHOR: They're pretty hearty. They're going to survive this, right?

MYERS: Absolutely. Oh, no, no problem at all. This water is no more than one or two degrees colder than normal. We're OK.

LEMON: All right. Cool. Cool. But the crops are definitely going to have some problems.

MYERS: Yes.

LEMON: I'm glad you pointed that out, Chad. Thank you very much. MYERS: You got it, Don.

LEMON: You know what, this is a hold on a minute story. You know, the mother of those California octuplets wants you to know all that stuff that you're reading about her isn't necessarily true. The public's "aw, shucks" moment over the birth of eight babies, well it soured. It soured very quickly after it was revealed that the mother already had six other children and was said to be shopping her story for mega bucks. Well, the mother's spokeswoman sat down with CNN's Larry King last night

(BEGIN VIDEO CLIP)

LARRY KING, CNN'S "LARRY KING LIVE": What's not true?

JOANN KILLEEN, MOTHER'S SPOKESWOMAN: It's not true that she is being paid multiple millions of dollars for going on the media. She is not doing a talk show in London. She is not going to have her own reality show about how to be a mom. I mean all those stories that people are making up is just not true.

KING: How about "People" magazine?

KILLEEN: Larry, everybody's called me. I mean I've been retained as of Friday night. I have multiple packages and proposals to review. I've told everybody that's called me -- and of course everybody wants me to make a decision yesterday, what are we going to do. So I'm looking through every single proposal and I'm going to sit down with my client this week and say, here are the pros and cons, you know, where do you want to go, how do you feel most comfortable and, you know, which one of these media do you want to go to and tell your amazing story.

(END VIDEO CLIP)

LEMON: That was an amazing story on "Larry King Live" last night. Great interview.

But we have another -- something that you should pay attention to. You see that. That's the waters of the Hudson River. Remember this story? Coming up Monday on CNN's "Larry King Live," the crew from U.S. Airways Flight 1549, well, they'll take your calls. They're going to take your calls and e-mails about the incredible landing on the Hudson River. You can really call that miraculous. They're going to speak live to Larry King, take your questions. Of course, you want to call in 9:00 p.m. Eastern Monday night, of course, right here on CNN.

The popular social networking site MySpace has booted 90,000 accounts. MySpace identified the users as registered sex offenders. You hear that, parents? Registered sex offenders on MySpace, 90,000 accounts booted. Connecticut's attorney general is spearheading a plan to make social sites safer for children. He calls that number appalling. MySpace has turned over the 90,000 names to authorities. Of course, we'll follow that story for you.

What's being done to track the billions in bailout dollars that have gone to American banks? Well, we'll show you who's on the trail.

(COMMERCIAL BREAK)

LEMON: All right. Here's some good news if you want to take a look at the big board. The Dow up about eight points. Nasdaq, 20 points. At least it's in the plus territory today. We're glad for that. We'll keep checking in and go to our Susan Lisovicz a little bit later on, on CNN.

Well, show us the bailout money. The government is getting ready to demand that banks account for how they're spending your tax dollars. About time, isn't it? Well, critics of the bailout say it is about time, as I said, and that story now from CNN's Jim Acosta.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: The motion is adopted.

JIM ACOSTA, CNN CORRESPONDENT, (voice over): Ever since the bailout was passed, it's been a mess. Banks buying private jets, spending billions of dollars on bonuses, and so on.

REP. BARNY FRANK, (D) FINANCIAL SERVICES CHAIRMAN: They have to avoid being stupid.

ACOSTA: The chairman of the House Financial Services Committee, Barney Frank, says the party's over. The government is finally gearing up to follow the money.

FRANK: As I've said to a couple of the bankers, here's this problem -- people really hate you and they're starting to hate us because we're hanging out with you. And you have to help us deal with that.

ACOSTA: There are signs the banks may be listening. Wells Fargo, which got $25 billion in bailout money, says it's pulling the plug on its upcoming annual conference in Las Vegas, an outing the company had planned to hold at a ritzy Wynn Hotel & Casino later this month. In previous years, the Associated Press says attendees were treated to performances by Cher and Jay Leno. But a Wells Fargo spokesperson defends the event, saying its bailout money is being used to help its customers. "In light of the current environment," the statement reads, "we have now decided to cancel this event." Craig Holman with Public Citizen says, now's the time to open the books on the bailout.

CRAIG HOLMAN, PUBLIC CITIZEN: We need to know exactly how they're spending that money and, on top of it, we should be applying conditions as to where that money can be spent.

NEIL BAROFSKY, SPECIAL INSPECTOR GENERAL: I fully intend to keep you fully and promptly apprized of significant findings and concerns.

ACOSTA: The special inspector general overseeing the bailout is preparing to send notices to banks demanding they document where the money has gone. How far will the government go? A spokesman for the Treasury Department says, "we have subpoena power." The banking industry says it has nothing to hide. STEVE BARTLETT, FINANCIAL SERVICES ROUNDTABLE: The Treasury is going to ask us to review it monthly? We welcome that. We would like for that to happen.

ACOSTA: That's going to happen.

BARTLETT: That is going to happen and it should happen because we've got a good story to tell.

ACOSTA: In the fact of mounting criticism, some of the big bailout recipients are starting to offer a peek at what they've done with the money, saying much of it has gone to new lending. The Treasury Department says don't expect to see their findings on the bailout until the spring.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

LEMON: All right, Jim.

Well, so many claims about the $800 billion stimulus bill. Which ones are true? Our Josh Levs joining us to look at the facts.

Is this a truth squad or a fact check or . . .

JOSH LEVS, CNN CORRESPONDENT: OK. It's all of the above.

LEMON: All of the above.

LEVS: It's all of the above. But in this case we also get to quote (ph) from the great websites out there that we love that do some of this truth squadding, reality checking all the time.

First, let's do this. Zoom in because I want everyone to see -- 736 pages. Can you see it, tiny little print there. That is the version of this bill the Senate's been working on. It's so massive. And, of course, that means, a lot of fodder potentially for some claims. So our good friends at PolitiFact have this really cool think going on. This Truth-o-meter in which they're rating some of those claims. We're going to start with this one.

(BEGIN VIDEO CLIP)

SEN. JON KYL, (R) MINORITY WHIP: Millions of dollars to World War II Filipino veterans in the Philippines. Now that may be a good thing to spend money on, but not in a stimulus bill. It doesn't stimulate anything.

(END VIDEO CLIP)

LEVS: All right. Now Politifact rated that one half-truth. And I'll tell you really simply why. The bill does includes a section, about $198 million. I highlighted it here. All you need to see is that it is there and that's for Filipino veterans. But that's actually -- and welcome to our sometimes crazy legislation -- that's actually not part of the stimulus funding. The head of PolitiFact, Bill Adair, explained how this will work on "American Morning."

(BEGIN VIDEO CLIP)

BILL ADAIR, FOUNDER, POLITIFACT.COM: The money was actually appropriated last year but has not been authorized. So what Senator Inouye of Hawaii has done is put the authorization in the stimulus bill. That's become controversial.

(END VIDEO CLIP)

LEVS: So basically this legislation would make the government release that money that was already appropriated, Don. So that's the idea. It was appropriated last year. Now they're saying, by the way, let's make sure to go ahead and spend this.

LEMON: I've got to ask you this. I've got to ask you this, Josh. Can I look at you when I ask you this. So there's a claim about -- let's turn this way.

LEVS: Hi, Don.

LEMON: Hi, Josh. What is this thing about spending $1 million a day since the life of Jesus? Is that really a claim?

LEVS: That is an actual claim, yes.

LEMON: Are you kidding me?

LEVS: Well, it's interesting because lawmakers are doing what they can to try to contextualize (ph) the concept of $1 trillion. Actually, you know what, we have it right here. Let's zoom in. This is it, from Mitch McConnell, who's a minority leader in the Senate. He specifically said the other day, this was on CBS "Face the Nation." He was trying to talk about this figure. He said "if you started the day Jesus Christ was born and spent $1 million every day since then, you still wouldn't have spent $1 trillion." And PolitiFact said that's true. And they're right. I mean, it is. Anyone can do the math. If $1 million was spent every day since what's believed to be the birth date of Jesus, then you still would not have spent yet $800 billion.

Don.

LEMON: OK. You know what? Here's the thing. This is what most people want answered, right. Is it going to work? That's really it.

LEVS: Right. That's what it boils down to, right. That's the thing most people want to know. And there are all sorts of different arguments out there.

There's another great reality checking website called, factcheck.org. And I made a graphic out of something they said because it really summarizes very well what they're trying to say here. They're like, you know what, "we just don't know the answer to this one. For that matter, even the experts don't know." And all of us in our industry, of course, Don, would love to be able to say the same thing, will it work, will it not work? But, unfortunately, we're just going to have to wait and see. And that means it could be days, weeks, months, years, who knows, decades before we're actually able to find that one out.

LEMON: I thought you were the answer man. That's your new title. I'm coming up with a new title for you, Josh Levs, the answer man.

LEVS: All right. So now we've got reality check, truth squad and answer man?

LEMON: I like "the answer man."

LEVS: Let's talk to the producers. For now on maybe we can show that I'm (INAUDIBLE).

LEMON: But if I call you "the answer man," the producers are giving us a wrap.

LEVS: Did you hear that. They're like, don't talk any more.

LEMON: Right? Yes. If we call you "the answer man," you've got to have some answers.

LEVS: That's my answer. Closing the mouth.

LEMON: All right, man, answers.

LEVS: See you, guy.

LEMON: Thank you, Josh Levs.

LEVS: All right.

LEMON: All right. Other than the economy being in the tank and growing problems with this cabinet, what's life been like as a president? Our Anderson Cooper sits down to get some answers.

(COMMERCIAL BREAK)

LEMON: President Barack Obama speaks out now on the war against terrorists and life in the White House 16 days after moving in. Here's more of the interview our Anderson Cooper had with the president.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN CORRESPONDENT: I noticed you don't use the term "war on terror." I think I read an article that you've only used it once since the inauguration. Is that conscious? Is there something about that term you find objectionable or not useful?

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Well, you know, I think it is very important for us to recognize that we have a battle or a war against some terrorist organizations. But that those organizations aren't representative of a broader Arab community, Muslim community. I think we have to -- you know, words matter in this situation because one of the ways we're going to win this struggle is through the battle of hearts and minds.

COOPER: So that's not a term you're going to be using much in the future?

OBAMA: Yes, want I want to do is make sure that I'm constantly talking about al Qaeda and other affiliated organizations because we, I believe, can win over moderate Muslims to recognize that that kind of destruction, annialism (ph), ultimately leads to a dead end and that we should be working together to make sure that everybody's got a better life.

COOPER: Final question. Just a quick lightening round of just a couple of fun questions. What's the latest in the dog search?

OBAMA: We are going to get it in the spring. I think the theory was that the girls might be less inclined to do the walking when it was cold outside.

COOPER: Portugese Water Dog? You don't know yet?

OBAMA: You know, we're still experimenting.

COOPER: Coolest thing about your new car?

OBAMA: You know, I thought it was the phones until I realized that I didn't know which button to press. That was a little embarrassing.

COOPER: Have you had a cigarette since you've been to the White House?

OBAMA: You know, I haven't had one on these grounds and I -- you know, I -- you know, sometimes it's hard, but, you know, I'm sticking to it.

COOPER: You said "on these grounds." I'll let you pass on that.

And final question. You read a lot about Abraham Lincoln. What is the greatest thing that you've learned from your studies of Lincoln that you're bringing to the office right now?

OBAMA: You know, when I think about Abraham Lincoln, what I'm struck by is the fact that he constantly learned on the job. He got better. You know, he wasn't defensive. He wasn't arrogant about his tasks. He was very systematic in saying, I'm going to master the job. And I understand it's going to take some time. But, in his case, obviously, the Civil War was the central issue. And he spent a lot of time learning about military matters, even though that wasn't his area of experience. Right now I'm learning an awful lot about the economy. I'm not a trained economist, but I'm spending a lot of time thinking about that so that I can make the very best decisions possible for the American people.

COOPER: Mr. President, thank you very much.

OBAMA: Thank you. Appreciate it. (END VIDEOTAPE)

LEMON: President Barack Obama has been on TV a lot, a whole lot lately. And much of the time he is pushing his stimulus package. But some say it is overkill. That may be undercutting his message. CNN's Carol Costello checked it out.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I, Barack Hussein Obama . . .

CAROL COSTELLO, CNN CORRESPONDENT, (voice over): Ever since Barack Obama took the oath . . .

OBAMA: Lay the foundation for long-term growth . . .

COSTELLO: He has become, shall we say, ubiquitous. There he is Sunday interrupting your Super Bowl party. There he is Tuesday with Anderson Cooper, Brian Williams, Chris Wallace, Charlie Gibson, and Katie Couric.

MARK MCKINNON, MEDIA CONSULTANT, PUBLIC STRATEGIES: I think he wants to make sure that he is -- has hit the entire universe of potential listeners and viewers. I don't think he wants to leave any rock unturned in this effort.

COSTELLO: But some, like "The Wall Street Journal's" Peggy Noonan, are now saying Obama mania is reaching "the saturation point" and is in danger of "demystifying" and "robbing" the presidency of its power. While some say she's overreaching, they can see her point.

JOHN AVLON, THEDAILYBEAST.COM: There is a danger for presidents speaking too much and too off the cuff. It can diminish the authority from which they speak.

COSTELLO: Perhaps "US" magazine is an early sign. Its cover shows Michelle Obama and the kids. Where's the president? Look closely and you can see his arm. But the rest of him has been cropped out, in favor of an allegedly chubby Jessica Simpson in her dreadful mom jeans. That slight aside, others say the president's star still shines brightly. A good thing since his stimulus plan has lost its luster.

MCKINNON: This could be the most important bill of his presidency. So he's got to use the capital that he's got. He's a very effective communicator. And I think it's actually a smart strategy to get out and hit all the media really hard right now.

COSTELLO: Especially when many Republicans, like John McCain, are saying they will vote . . .

SEN. JOHN MCCAIN, (R) ARIZONA: No.

COSTELLO: On what they say is not a stimulus plan but a spending plan. Effective Republican spin since many Americans believe liberal Democrats are guilty of padding Obama's stimulus plan with pork. And until President Obama can persuade them otherwise, expect him to continue to hog the spotlight.

(END VIDEOTAPE)

LEMON: Well, will stimulating renewable energy help stimulate the economy? We're checking it out in today's "Energy Fix."

(COMMERCIAL BREAK)

LEMON: Well, you know what the Obama administration says the huge stimulus package, now working its way through Congress, will create millions of green jobs. But could a big chunk of them end up overseas? We asked that question to cnnmoney.com's Poppy Harlow in New York.

Poppy, could they?

POPPY HARLOW, CNNMONEY.COM: They definitely could. It's a big concern among senators debating this bill right now. A major goal of the stimulus, as we all know, is to put Americans back to work. But some lawmakers are very concerned that this push for renewable energy could really just end up creating more jobs in Asia and in Europe than it does in this country.

That's because right now, Don, most wind turbines, most solar panels, they're made overseas. Actually, only one U.S. company is in the world's top 15 suppliers of wind turbines and that, of course, is General Electric.

Now, in a move to try to encourage more domestic manufacturing, some Senate Democrats are backing what is a $2 billion tax break in the stimulus bill. What it would do is it would give companies roughly a 30 percent rebate or tax credit, this could be foreign or domestic companies, if they build any plants geared towards renewable energy in this country. Take a listen.

(BEGIN VIDEO CLIP)

SEN. JEFF BINGAMAN, (D) NEW MEXICO: We have ignored this issue for a long time. It's time for us to begin to put an emphasis on it, begin to encourage companies to come here and produce the jobs involved with this transition of our economy from high carbon to low carbon.

(END VIDEO CLIP)

HARLOW: All right, that is a goal that a lot of them back. But let's take a look at wind power alone. According to a recent study, every additional mega watt of wind power that we use creates nearly five full-time jobs. Right now, though, three of those jobs are not even in this country because they involve making those components for wind turbines. Most of that, again, as I said, happens overseas.

But even some renewable energy experts say a tax credit, that might not be the right move to try to spur that job creation. They say you really need to put the money right into those companies. And they say, right now, this credit crunch, this recession, means the funding is just not out there, Don, for these companies. So there is money towards renewable energy in this bill. Not everyone agrees on if it's the right way to do it.

LEMON: All right, Poppy, we appreciate it. Thank you very much.

HARLOW: You're welcome.

LEMON: Turning a party drink into a career? We'll introduce to you two guys who are trying to overcome unemployment with the help of SharkWater.

(COMMERCIAL BREAK)

LEMON: All right. Here's hoping you'll drink to this. Two unemployed men are turning their hobby of stirring up alcohol concoctions into quite a business. The plan to overcome the economic crisis they do with SharkWater. Sarah Sell of our affiliate WZZM has their story. Look at this.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It just seemed to roll off the tongue. It was blue. It was kind of fun. I love the beach. Kind of whole nautical theme.

SARAH SELL, CNN CORRESPONDENT, (voice over): For Jeff DeYoung (ph) and Don Rogers (ph), this bottle of blue tropical liquor means hope for the future.

UNIDENTIFIED MALE: It is a learning process. It's a risk. And we know that. But we're willing to take the risk.

SELL: The timing couldn't be better. Both men are unemployed. Don was laid off and Jeff took a buyout.

UNIDENTIFIED MALE: For the business portion, yes, it provides us much more time to be able to go out and promote and get the stuff on the shelves.

SELL: The idea came when Jeff an Don and their two wives started mixing drinks and serving them to their friends.

UNIDENTIFIED MALE: And once we had the feedback from that, which was 100 percent positive, we said, well, let's check into, see what we can do.

SELL: The men found a distillery in Temperance, Michigan, that was interested in bottling the blue concoction. SharkWater is a tropical mix with a bite. Most liquors are 30 proof. This one is 40.

UNIDENTIFIED MALE: And it was yummy. It was delicious.

SELL: Jeff and Don are now in the process of marketing the product nationwide. It's set to hit the shelves in about a month. The hope is to turn SharkWater into a profitable, full-time job. UNIDENTIFIED MALE: For two people, two men unemployed, to come up with an idea and to go forward with a business, a brand-new business, it's risky in these trying times and we're hoping to live the American dream.

(END VIDEOTAPE)

LEMON: Forty proof!

FREDRICKA WHITFIELD, CNN ANCHOR: That's some heavy duty stuff.

LEMON: We could use that after a long week.

WHITFIELD: That would straighten out my throat, wouldn't it?

LEMON: I know, that would take your of your -- take your cold right out. I don't know, would you drink it?

WHITFIELD: No. Probably not.

LEMON: (INAUDIBLE). But best of luck to them, right?

WHITFIELD: Yes, exactly.

LEMON: Good to see you.

WHITFIELD: Good to see you too.

LEMON: NEWSROOM continues right now with my friend Fredricka Whitfield. Take it away.