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Value of College Diploma in Job Search; Calm in Crisis: Tapes Reveal Unflappable Pilot; Michael Phelps Suspended for Three Months
Aired February 06, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR, CNN NEWSROOM: The economy gets another slap upside the head. Just in January job loss at historic levels, and a warning from the president if the stimulus is stalled.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES: Millions more Americans will lose their jobs. Homes will be lost. Families will go without health care. Our crippling dependence on foreign oil will continue. That is the price of inaction.
(END VIDEO CLIP)
WHITFIELD: This hour, where the stimulus stands right now. Plus the big issues that have senators stuck.
It's Friday, February 6th. I'm Fredricka Whitfield in for Heidi Collins and you're in the CNN NEWSROOM.
The economy in a tailspin, the latest evidence in these new numbers. Just minutes ago, we learned the nation's unemployment rate has surged to 7.6 percent. Just last month, nearly 600,000 jobs vanished. It's the biggest one-month loss since 1974, but this may be the most disturbing figure. Analysts predict as many as 3 million jobs will vanish this year alone.
This morning, we look beyond the numbers. CNN's Money team is in New York and on Wall Street. Among the questions, what is a college degree worth in this economy? We'll also look at the stimulus package. Is help on the way for all of us?
Later in this hour, one man's struggle. He went from a six-figure salary to the unemployment line. Are you prepared if disaster strikes?
Millions of American families now struggling to make end's meet and the rest of us face a chilling reality. The worst may be yet to come. CNN's Christine Romans is in New York.
Very grim numbers.
ROMANS: It's true, Fredricka. And I wish I could say, OK, this is the worst of it, now we're going to move on. But we can't say that with any kind of certitude at all. This 598,000 people lost their jobs in the month of January.
We know that December's number was worse than the government originally reported. We know that since this recession began late in 2007, 3.6 million people have lost their jobs with about half of that coming in just the past few months.
That tells you that the rate of deterioration in the labor market is quickening here. It's really a deepening recession. That's what we're seeing and that's what these numbers are telling us.
It's a very broad set of industries that are losing jobs here. Manufacturing employment loss another 207,000 jobs and we've been seeing this, frankly, for years now. Construction lost 111,000 jobs. The temporary health agency lost 76,000 jobs. Even if you're trying to get a temp job in between you're having trouble there.
Retail employment, the people at the malls and at the grocery stores and also at the -- at the restaurants down 45,000, and transportation and warehousing lost another 44,000 jobs.
You're seeing it across the board except for the government. The government is creating jobs and in health care and education. Teachers and people who work in hospitals and in health care field are seeing a little bit of a job gain.
Look at just the past six months. These -- wow. These losses get bigger and bigger. Now 598,000. You know, we look over the, over the tables and that's the fourth largest job loss on record. You know, these are not the kind of numbers that you like to see. They're not the kind of numbers that you see very often and they are certainly, certainly evidence of a labor market and an economy in distress -- Fredricka.
FREDRICKA WHITFIELD, CNN ANCHOR: It certainly is hard to see how in the world all this is going to turn around.
ROMANS: It's absolutely right. And when you look ahead you can see about six months when you look out at the leading indicators and you're not seeing really any kind of signs of perking up. There are few economists and even the Fed noted that maybe there could be the beginning signs of a recovery by the end of the year. But where that evidence is, we just haven't seen it yet.
One thing I want to point out as well that the layoffs are quickening but also there's not a lot of hiring and that -- that's a real kind of ugly combination here for people right now, not a lot of hiring. So it's an important time here to remember to not take any risks with your job, quite frankly, and -- there were people who will offer a lot of advice about what to do and how to hunker down and make sure you keep that job.
But, remember, that in every industry, you're seeing this. You're seeing mass layoffs from all kinds of different corners of the economy, so you're not alone, that's for sure.
WHITFIELD: Yes, no risks on your job and no risks in spending either these days.
ROMANS: That's right. WHITFIELD: Christine Romans...
ROMANS: That's absolutely right.
WHITFIELD: Thanks so much from New York. Appreciate it.
All right, well, laid off and looking for work. Later this hour, we'll hear from a successful mid-level manager who has been out of work since spring. Hear what he has been doing to weather this financial storm.
No deal and no vote. At least so far. The president's economic stimulus package still in doubt in the Senate. Well, now he's turning up the heat on the nay-sayers.
Live now to the White House and correspondent Suzanne Malveaux. Suzanne?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Fred, looking at these numbers, the White House is not yet commenting. They want to see how the market actually responds but, obviously, these are not good numbers. It's the kind of thing that we've been hearing from the president over the past couple of weeks that things are getting worse.
He is using dire language to explain things that he believes will happen with the economy, a deeper recession if this economic stimulus package is not passed and passed fairly quickly.
Now, it was interesting what we saw, Fred, last night, really kind of the language, the tough language that he was using, essentially calling for Democrats to get on board. He was throwing red meat to the base. Obviously, needing some support here, but the reason why he went before the cameras, this was a closed event, originally opened it up to the cameras and to the American people, is to try to seize the message here, the tone of the debate.
Obviously, they feel like they need to be a lot stronger. You heard from the president last night. We also saw him on the plane, Air Force One, coming back to reporters, simply giving the same restrain but a much more aggressive message here saying that he needs the cooperation of Congress to get this economic stimulus bill through.
Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When they say, well, why are we spending 800 billion? We've got this huge deficit.
First of all, I found these debts when I showed up. Number one.
(CHEERS AND APPLAUSE)
OBAMA: I found this national debt doubled wrapped in a big bow waiting for me as I stepped into the oval office. Number two, it is expected that we are going to lose about a trillion dollars worth of demand this year, a trillion dollars of demand next year because of the contraction of the economy.
So the reason that this has to be big is to try to fill some of that lost demand and, as it is, there are many who think that we should be doing even more.
(END VIDEO CLIP)
MALVEAUX: So, Fred, really, a very different tone from the president, one that we saw in the campaign. Not so much bipartisanship but really going straight for it. This is something that is not accidental and was not accidental. Later this morning, Fred, you're going to see him roll out this Economic Recovery Advisory Board. It's headed by the former Fed chair, Paul Volker.
He's essentially saying, look, I've got heavy hitters with me. These are outside economists, academics. They are all weighing in here, they are all supporting my economic plan. He wants to show people he is not alone here, that he has some backing because, obviously, this is a big risk.
It's a very big risk in putting forward such a huge economic stimulus package which they've been trying to whittle away at the costs just a little bit, but it's far from certain whether or not they're going to get those votes, the three critical votes needed to even pass this thing on the Senate side.
So what you're going to see is the president, really, side-by- side with the CEOs of Caterpillar and G.E., and some heavy hitters from Yale and Harvard, other folks all weighing in, saying, look, we believe this is the right way to go, this is a good thing to do, but it's far from certain, Fred, whether or not it's going to be enough.
WHITFIELD: And Suzanne, we know there are a lot of closed door meetings on the Hill involving various lawmakers. We know that the president has extended that olive branch even before we got to this juncture by going to the Hill and talking to both Republicans and Democrats.
Any idea whether, in the short term, he plans to invite some more Republicans or invite members on both sides to the White House to have more talks?
MALVEAUX: His team is certainly reaching out to both Democrats and Republicans. Not sure if they're actually going to physically come here to the White House later today but that might happen. Obviously, he's going to be working over the weekend.
And what they're focusing on, Fred, is the treasury secretary, Tim Geithner, is working on this kind of, what they're calling some sort of financial stability plan that they're going to roll out next week, perhaps as early as Monday, to say, look, we are holding people accountable, these financial institutions, these big companies that have already received some funds and some funds that are coming their way that this is going to be transparent.
It's, obviously, part of this big campaign, Fred, to get people to sign on to this fairly quickly, because it may not happen today. Fred?
WHITFIELD: All right, Suzanne Malveaux, at the White House, thanks so much. Appreciate it.
Let's take a closer now look at the president's scheduled day. In just over half an hour from now, he'll attend the Daily Economic Briefing in the oval office. Then at around 11:15 a.m. Mr. Obama will introduce high-profile members of the president's Economic Recovery Advisory Board.
It will be headed by former Federal Reserve chairman, Paul Volker, as you heard Suzanne explain. And at 3:30 the president will meet with families whose loved ones were victims of the September 11th attack and attacks on the USS Cole.
All right, after huddling all day, off and on yesterday, a bipartisan group of senators will be back at work next hour trying to find ways to pare down the more than $930 billion recovery measure.
Let's head to the Hill and CNN congressional correspondent, Brianna Keilar -- Brianna?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Fredricka, it's expected to be -- possibly another day, another long day of discussions for this group. Now, yesterday, when we saw these Democrats and Republicans meeting, 17 of them by our count, a handful of them Democrats, they were very optimistic in the beginning of the day and then you could tell they kind of hit some speed bumps.
They were having some difficulties in realizing just really what a challenge it is to hash out their differences when it comes to this plan but we're expecting here, Fred, in the next half hour for at least some of them to convene again and start talking about where they can afford to compromise.
WHITFIELD: And what are the differences? What are the hang-ups?
KEILAR: Well, we know broadly there's a couple. One is the overall price tag. We heard from Susan Collins, the moderate Republican who's a key member of this group of about 17 senators, and she said that when she spoke with President Obama, she was wanting, really, a package of about $600 billion for the stimulus and she said he told her that he is under the understanding that it's really not going to work unless it's at least $800 billion.
So there's a -- of course, though, many Republicans who still think that is too much and then the other issue is what is in this, what can they cut from this to satisfy some of those Republicans, some of those moderate Democrats who think that some of the spending doesn't create jobs.
We're talking -- in this bill, there's, you know, energy provisions, health care provisions, education provisions, and, Fred, when it comes down to it, those things are some people people's babies and they really don't want to let them go.
We heard Joe Lieberman, senator from Connecticut, saying they're trying to find the sweet spot where they gain some Republicans enough to pass this but they don't lose Democrats who are already committed to this package as it stands right now.
WHITFIELD: And we heard the president said that he wanted this nailed down by the end of this week. I guess that means either the end of today or maybe even tomorrow if we want to count part of tomorrow as well.
KEILAR: Yes...
WHITFIELD: What's the consensus on it?
KEILAR: Yes, or maybe even to the end of the weekend.
WHITFIELD: Right.
KEILAR: But we have heard from Senate Majority Leader Harry Reid is that he's optimistic this could happen today. We did, as well, though, hear that yesterday, Fredricka, so it's certainly not a definite.
WHITFIELD: All right. Brianna Keilar on Capitol Hill, thanks so much. Appreciate it.
All right, more controversy over the stimulus. So what is not to like? Some senators say plenty. We'll get a breakdown of the opposition from a top U.S. economist.
ROB MARCIANO, CNN METEOROLOGIST: I'm Rob Marciano at the CNN Severe Weather Center. Another cold day east of the Mississippi but a big warm-up in store and storms slamming into the west coast. Details coming up when the CNN NEWSROOM comes right back.
(COMMERCIAL BREAK)
COLLINS: All right, too much pork and too few tax cuts. That's what opponents say about the president's stimulus plan. They even wonder whether the plan will get the economy moving at all.
Joining us from Washington now to talk about that opposition, renowned economist, Peter Morici.
Good to see you, Peter.
PETER MORICI, INTL. BUSINESS PROF., UNIV. OF MD.: Nice to see you, too.
WHITFIELD: All right, let's talk about those tax cuts off the bat. Some complaining too much, others too little. Which is it?
MORICI: Well, the tax cuts won't have a large effect. They won't have a big stimulus effect. That's what we learned from last May and June. Individual tax cuts, most of it gets either saved or spent on imports. We only get about 45 cents back on a dollar.
Investment tax credits that the Republicans want, they don't have much effect either. They're really arguing over what is less effective.
WHITFIELD: And you're talking about -- and you're talking about, like, for example, the real estate, you buy a home over $150,000 and you get $15,000?
MORICI: On that and also accelerated depreciation or permitting businesses to deduct 2008 losses against profits from previous years.
WHITFIELD: All right. Well, let's talk about the wiggle room here because there are some who say they want to cut out about $300 billion or maybe even $100 billion. What areas can afford to be cut and still allow for this to be a stimulus package to get the economy moving?
MORICI: What you want to spend it on is direct purchases of goods and services. Infrastructure projects, incentives for people who buy automobiles, things of that nature, which means that, you know, expanding the budget of the Department of Education or the National Endowment for the Arts, that's not going to create any jobs. The Medicaid program isn't going to create any jobs or very few, very few.
A lot of it are these social program initiatives that are -- don't really create very much in the way of employment. Additional unemployment insurance benefits for part-time workers, for example, doesn't create employment.
WHITFIELD: When we talk about creating jobs, for example, where? When we heard our Christine Romans earlier talking about the industries that were hardest hit, particularly from the latest unemployment numbers, we're talking construction, temporary help, retail, transportation, warehousing.
So where is there room to increase some sort of job outlook?
MORICI: The place where we could do the most is in manufacturing. It's lost the most jobs over the last several years because of an imbalance in trade. That imbalance in trade has to be corrected or the economy cannot accomplish a sustained recovery. So manufacturing is the first place. If you do it there, then it ripples to all of those other places, workers buy homes, they go to the stores and things of that nature.
WHITFIELD: Will this economy actually get a boost from the stimulus package? We heard the president say last night very emphatically, well, spending package, that's one and the same with stimulus package and the idea is to get the economy moving again.
Is this a package that's created to do that? MORICI: Not all spending is the same. Some spending is much more potent than others. This package is full of spending that won't be terribly effective, along with some that will.
It will not deliver three or four million new jobs like he promises. He will be lucky if he delivers the number of jobs that will be lost starting from the first day of his administration.
WHITFIELD: But in the other mindset is, if something isn't done, then we may be looking at catastrophic results as it resists to -- as it pertains to the economy?
MORICI: It's not free to be foolish. We're going to borrow this money from abroad, from the Chinese and the Saudis and -- this may be the last time we can borrow this much money for a very long time. So we have to make it as effective as possible.
Unfortunately, the Democrats and Republicans in the Senate are arguing over ineffective tax cuts and ineffective spending programs. Neither side seems to want to strengthen the bill in a way that will create more jobs. That's what troubles me most.
WHITFIELD: All right, Peter Morici, thanks so much. Always good to get your insight. Appreciate it.
MORICI: Take care.
WHITFIELD: All right, China's formation from communism to capitalism has created a startling reality for millions of young people. For the first time they are facing an economy that isn't booming. Enter a one-man movement to spend less and save more.
CNN's Emily Chang has the story.
(BEGIN VIDEOTAPE)
EMILY CHANG, CNN CORRESPONDENT (voice over): Wang Hao takes the subway to and from work every day. A total of four Chinese yuan round trip or 60 U.S. cents. He's a Web editor at a local real estate firm. Lunch is modest. He orders a lunch box and eats at his desk. It costs just 8 yuan or a dollar 20. It's all an effort to spend only 100 yuan Monday through Friday.
"I bought an apartment in Beijing last year," he says. "I had to pay off the debt but I never saved money before."
He blogged about his saving strategy online and quickly started a trend. Now about 100,000 people have joined the 100-yuan-per-week club, most of them young, white-collar workers learning how to manage their money for the first time.
"It's challenging. Impossible," some say. A colleague says Friday nights are the hardest. "I failed at first," says this man. "But now I calculate all my expenses in advance."
It's not just about being frugal or having a bottom line, they say, but learning how to be financially independent and plan ahead for important things, like a car or a gift for Valentine's Day.
(On camera): What is your girlfriend think about you spending only a hundred yuan a week?
(Voice over): "She supports it," he says. "We want to get married someday so both of our parents think it's a great idea, too."
(On camera): Before Wang Hao took a taxi to and from work every day. He ate out for lunch and dinner every day. He spent almost a thousand yuan Monday through Friday, or 150 U.S. dollars. Almost 10 times what he spends now.
(Voice over): After another subway journey home, Wang Hao cooks dinner. Not bad for a meal that costs only 7 yuan or about a dollar.
"When I first started, I didn't know how to cook," he says. "I had to call my mother for help every day."
But he's reminded he does it because he wanted to buy this apartment. This place is his reward after a hard day worked and carefully spent.
Emily Chang, CNN, Beijing.
(END VIDEOTAPE)
WHITFIELD: Another health battle for a U.S. court justice.
(COMMERCIAL BREAK)
WHITFIELD: In the hospital this morning, U.S. Supreme Court Justice Ruth Bader Ginsburg. She had surgery yesterday for pancreatic cancer. Court sources say it went well. The doctors found the tumor early.
This is Justice Ginsburg's second bout with cancer. A decade ago she had colorectal cancer and had surgery, radiation and chemotherapy and never missed day on the bench.
All right, February is National Heart Health Month and every Friday this month, we'll be running stories on how to keep your heart healthy. We kick off our heartbeat series with a look at what tests you need and you don't need.
Here now is CNN's Judy Fortin.
(BEGIN VIDEOTAPE)
JUDY FORTIN, CNN CORRESPONDENT: Carrie Vincent is your typical busy mom but 18 months ago, without warning, she had a heart attack at 31 just days after giving birth to her son Griffin.
CARRIE VINCENT, SUFFERED HEART ATTACK AT AGE 31: They told me that I had 90 percent blockage to my left side.
FORTIN: Carrie suffered from a clotting disorder. A simple blood test warned her of her condition but she never expected heart problems in her 30s.
VINCENT: When I was 31, I had a heart attack.
FORTIN: Now an advocate for women's heart health she holds seminars to let women know the signs of heart disease and what tests they can take to prevent it.
VINCENT: Know your numbers and what they mean.
FORTIN: But what numbers and tests are important and for whom?
According to the American Heart Association, everyone after the age of 20 should have their blood pressure checked along with their good and bad cholesterol levels, and don't forget testing for triglycerides. Those are the fats in your blood that can lead to heart problems.
If you're at high risk, meaning you're obese, a smoker, have diabetes or family history of heart disease, ask your doctor about a test that measures your LDL size.
DR. SCOTT JEROME, UNIVERSITY OF MARYLAND MED. CTR.: Some people, if you look at them, they have completely normal LDL numbers but then you break down their LDL size, OK, and we find they have small particles.
FORTIN: According to the National Cholesterol Education Program, the smaller the LDL particles the more likely they will enter the vessel lining increasing a patient's risk of heart blockages.
Another test to consider, C-reactive protein. It's a market for inflammation that can lead to heart problems.
JEROME: Well, we think it irritates the lining of the blood vessels. I mean, when you irritate the lining of the blood vessels, you allow the cholesterol, the plaque, to get inside the blood vessel.
FORTIN: Cardiologists say this test is a must if you have heart disease in the family. If you don't you can probably put this one off. And interested in those CT and MRI scans hospitals are touting?
JEROME: They actually look at the blood vessel and see if you've got hardening of the arteries.
FORTIN: Be careful. Although some scans can provide good information like coronary calcium scores, the American Heart Association warns, due to radiation levels, people with no risk should think twice before having the test. And if you have family history of heart disease, talk to your cardiologist to see if the scans are right for you.
Judy Fortin, CNN, Atlanta.
(END VIDEOTAPE)
WHITFIELD: And join us next Friday for another heartbeat report. In the meantime, check out our Web site, CNN.com/Health, for more on what's good for your heart.
Keeping cool under immense pressure.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This is cactus 1539. Hit birds. Lost thrust on both engines and turning back towards LaGuardia.
(END VIDEO CLIP)
WHITFIELD: The pilot of U.S. Airways Flight 1549 remaining calm just moments after realizing the jet had lost both engines and was headed for the Hudson River. You heard those words along with me yesterday in the NEWSROOM. Now, we've got more of these amazing tapes.
(COMMERCIAL BREAK)
WHITFIELD: All right, there you're hearing the opening bell on Wall Street, even though we're talking about a very grim look at today, economically, with a very dismal numbers for the unemployment coming out last month. Job losses upwards of 600,000 -- jobs that as on Capitol Hill they tried to hammer out some sort of stimulus package.
Our Susan Lisovicz is at the New York Stock Exchange with more on that. And I imagine, there will indeed be some sort of response on Wall Street to all that we're hearing.
SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. And we're actually seeing a tiny bit of pop at the open, Fredericka. Why is that? In the words of one analyst, any number that wasn't the end of the world would be taken as good news. In other words, Wall Street was prepared for bad numbers. They basically came within range. Meanwhile, we are expecting some sort of movement soon on stimulus and a bank bailout. Both of them seen as positives. And the end result is that the street is taking it in stride. I'll be along shortly with a better, more complete check of the markets.
Fredricka?
WHITFIELD: All right, perfect. Thanks so much, Susan. Appreciate it.
All right, the economy sinks even deeper. The nation's unemployment rate a little bit more on that now has surged to 7.6 percent, nearly 600,000 jobs vanished just last month. It's the biggest one-month loss since 1974, but this may be the most disturbing figure. Analysts predict as many as 3 million jobs will vanish this year.
We're looking beyond the numbers. CNN's money team is in New York, and on Wall Street, next step, what is a college degree worth in this economy? And just minutes from now, one man's struggle. He went from a six-figure salary to the unemployment line. Are you prepared if disaster strikes? All right, degrees of difficulty. Unemployment at a 16-year high. So with the economy bleeding jobs, is there hope for someone who doesn't have a college degree to nail down an opportunity? CNN personal finance editor Gerri Willis is here with some advice.
Gerri?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, Fredricka. Good to talk to you. Yes, the numbers this morning were bad. And you may think if you only have a high school degree, you're out of luck. But guess what? It's just not true. Fully 44 percent of all the jobs in this economy go to people with just high school degrees or high school equivalencies. So there is opportunity out there for people.
And you may say, well, but they don't pay well. And that's true. They do pay less than jobs for folks with bachelors degrees, but more than you might think. Check out these numbers. Bachelor degree jobs pay $52,000, but a high school degree will get you 41,000. About $11,000 less. Of course, that is a very big difference, but it may be less than you expected, especially when you look at the typical kinds of jobs that go to high school graduates like crossing guards who make just $21,000.
Fred?
WHITFIELD: And so what are some of the other jobs that perhaps people without a degree can try to pursue right now?
WILLIS: Well, let's talk about high-paying jobs, right? These are jobs that this isn't the first job you get in the work force. This is something you work up to. Typically, they are supervisory positions. Consider somebody who runs a margin department. They are making $83,000. That's a lot of money for somebody with just a high school degree out there. These are folks who actually keep track of pay and collections at a company. They're making sure that all of the clients of a company are paying their bills, and because they are in that position, that important position of managing money, they make a decent salary. Service station manager, $72,000. And Fred, get this, a Web surfer, $70,000. This is somebody --
WHITFIELD: That's a job?
WILLIS: Yes, I know! For a living actually gets on the Web and surfs. Figures out what they call the user interaction, the user experience and then reports it back. Usually, these are pretty young folks who are Web savvy. Now let me show you some more jobs here. Chemical supervisor, $57,000. We talk a lot about jobs in the health care field.
You know, we talk about home care aides, but what about the supervisor who runs those people? $56,000 a year is the pay for that. Collection supervisor, in this economy, there are lots of collections trying to get people to pay their late bills. They make a decent amount of money. And a flight service manager, you may not know who that is, Fred. It's actually somebody who runs the flight attendants, $54,000. So there are jobs out there. And I want to tell you right now the jobs most in demand for people with high school degrees, you can guess these. April 15th is coming up on us so it's people who do tax preparation. And it's also people who install satellite television dishes because of the conversion to digital. So there are jobs out there. You know, they may -- the best jobs with the highest pay actually requires some experience in the field, but 44 percent, almost half of the jobs in this country only require that high school degree.
WHITFIELD: Wow. And sometimes it means really stepping out of your comfort zone, perhaps pursuing an industry that you haven't necessarily had experience in, but maybe some of your skills are applicable and transferable.
WILLIS: Flexibility is key here. You got to be willing to change it up. Maybe get a little more training. A lot of these jobs that I described, you get training on the job. So you got to be putting yourself out there and really being aggressive in this marketplace.
Fred?
WHITFIELD: Right. Great advice. Gerri Willis, thanks so much. Appreciate it.
WILLIS: My pleasure.
WHITFIELD: All right, perhaps this is you. Laid off and looking for work. In just a few minutes, we'll hear from a successful mid- level manager who has been out of work since spring. Hear what he has been doing to weather this financial storm.
And speaking of storm, another sleepless night for growers in Florida. Temperatures again dipped below freezing. And tomato growers say they have taken a hit, but they don't know just how badly yet. Citrus growers say it appears their crops are OK.
And going nowhere fast in England. Police and army troops helped rescue 200 motorists early this morning trapped in the latest blizzard. It's the worst winter there in 18 years.
And more federal aid is on the way for Kentucky. President Barack Obama has issued a major disaster declaration after both a blizzard and ice storm in one week for the folks there.
Rob Marciano in the weather center. It would be nice if the folks can thaw out a little bit in Kentucky, but it's still very cold.
(WEATHER REPORT)
WHITFIELD: Roll those dice. All right, thanks so much, Rob. Appreciate it.
All right, total shock. That's what Captain Chesley Sullenberger said he felt when he realized the US Airways jet that he was piloting had lost its engines, and that plane was going down in the Hudson River.
(BEGIN VIDEO CLIP)
CHESLEY "SULLY" SULLENBERGER, US AIRWAYS PILOT: It was the worst, sickening, pit-of-your-stomach-falling-through-the-floor feeling I've ever felt in my life. I knew immediately it was very bad.
KATIE COURIC, 60 MINUTES: Did you think how are we going to get ourselves out of this?
SULLENBERGER: No. My initial reaction was one of disbelief.
(END VIDEO CLIP)
WHITFIELD: Amazingly, the captain kept his emotions in check as he communicated with air traffic control. Here now is CNN's David Mattingly.
(BEGIN VIDEOTAPE)
SULLENBERGER: This is Cactus 1549, 700, climbing 5,000.
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): U.S. Airways Flight 1549 had just begun to climb out of New York La Guardia when FAA tapes captured the moment the flight took a fateful turn.
SULLENBERGER: This is Cactus 1539. We hit birds. Lost thrust in both engines. I'm turning back towards La Guardia.
MATTINGLY: And just like that, behind a cool steady voice, Sully Sullenberger's jet is powerless and headed down. In the heat of the moment, everyone seems to get the flight number wrong. And listen as air traffic control seems stunned by the emergency.
UNIDENTIFIED MALE: It's 1529. Bird strike. He lost all engines. He lost the thrust in the engine. He's returning immediately.
UNIDENTIFIED MALE: Cactus Flight 1529 which engines?
UNIDENTIFIED MALE: He lost thrust in both engines he said.
UNIDENTIFIED MALE: Got it.
MATTINGLY: Next, there's a scramble to find him a safe place to land.
UNIDENTIFIED MALE: If we can get it to you, want to try to land runway 1-3?
SULLENBERGER: We're unable. We may end up in the Hudson.
UNIDENTIFIED MALE: All right, Cactus 1549. It's going to be left traffic to runway 3-1.
SULLENBERGER: Unable.
UNIDENTIFIED MALE: OK. What do you need to land? Cactus 1549, runway 4 is available. If you want to make left traffic to runway 4.
SULLENBERGER: I'm not sure if we can make any runway. What's over to our right? Anything in New Jersey? Maybe Teterboro?
UNIDENTIFIED MALE: OK. Off to your right side is Teterboro Airport.
MATTINGLY: It takes just 30 seconds to clear a runway in New Jersey. But by then there is no chance for a dry landing.
UNIDENTIFIED MALE: Cactus 1529, turn right 2-8-0. You can land runway 1 at Teterboro.
SULLENBERGER: We can't do it.
UNIDENTIFIED MALE: OK, which runway would you like at Teterboro?
SULLENBERGER: We're going to be in the Hudson.
UNIDENTIFIED MALE: I'm sorry, say again, Cactus?
MATTINGLY (on camera): But this time there was no reply. The conversation lasted less than two minutes, and it was the last time air traffic control would hear from Captain Sullenberger. All anyone knew was that Flight 1549 had disappeared from radar.
UNIDENTIFIED MALE: Cactus. Cactus 1549, radar contact is lost. You also got Newark Airport off your 2 o'clock in about 7 miles.
UNIDENTIFIED MALE: Two-one-zero, 47-18. I think he said he was going in the Hudson.
UNIDENTIFIED MALE: Cactus 1529, you still on?
MATTINGLY (voice-over): As they continue to try and help, no one could see Sullenberger's masterful splash-down in the river. And it would be long, agonizing minutes until they would hear that a miracle on the Hudson had taken place. All 155 aboard were rescued alive.
David Mattingly, CNN, Atlanta.
(END VIDEOTAPE)
WHITFIELD: And hear more from the pilot of Flight 1549 and the rest of the US Airways crew. They will make their first prime time appearance on "LARRY KING LIVE" this coming Tuesday, right here on CNN.
A successful professional earning good money. Finds himself in the unemployment line. Hear what advice he has for people in his position.
(COMMERCIAL BREAK) (BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: We are not going to get relief by turning back to the very same policies that for the last eight years doubled the national debt and threw our economy into a tailspin. I don't care whether you're driving a hybrid or an SUV, if you're headed for a cliff, you've got to change direction.
(END VIDEO CLIP)
WHITFIELD: An urgent call for action from President Barack Obama directly aimed at the U.S. Senate. Members are taking up the president's economic stimulus package again today. A group of nearly 20 moderates from both parties are looking to pare down some spending provisions. We'll keep you updated on what's happening there throughout the day.
And in the next hour find out if the stimulus bill has a real chance of getting out of the Senate and on to the president's desk.
And hundreds of thousands of people aren't just hearing about the bad economy and the massive job cuts, they are actually experiencing it. Laid off and looking for work.
Our next guest, Eric Bell, was a manager at a financial services company in Phoenix earning a pretty good salary. Well, now, he is unemployed.
So, Eric, what happened?
ERIC BELL, UNEMPLOYED MID-LEVEL MANAGER: I was laid off in May of 2008 after my company was acquired in September of 2007.
WHITFIELD: So did you expect that this was coming? Had you prepared yourself mentally, financially to be laid off?
BELL: Financially, yes. My family had a rainy day fund in place so that's helped us from that perspective. Mentally, no. It's always a shock to, you know, I worked at my company ten years, so, no, it was a shock.
WHITFIELD: So you have that rainy day fund in place. Now you're receiving, what, $216 a week in unemployment and your job search has taken a bit longer than you expected, especially given you've got an MBA. It's been what, six or seven months?
BELL: It has. It's been an arduous process and it was particularly difficult in the fall with all of the economic turmoil.
WHITFIELD: And what have you been finding? What happens when you knock on the doors, when you send out your resumes, you know, when you're on the phone with people, what kind of response are you getting?
BELL: Sure. Number one, despite applying or sending your resume online into -- to post for a job, very little response. It's all about if you want to call it going through the back door, having someone in that company get your resume into the hands of the hiring manager and through that process, you actually get -- you usually get the opportunity then to interview and meet with the hiring manager.
WHITFIELD: So is this an issue of you finding out that there are jobs available at a particular outfit and whether you have to go through the backdoor or not, you are pursuing those jobs, or is it that you're, you know, just kind of casting the net pretty wide and just hoping that there is an opportunity that fits your skills?
BELL: You know, I spent the first four to five months of my process casting a wide net, using that shotgun approach and I really found very little success with that. And starting in January, my focus has been on my target companies, whether they have a job today or not, I'm working very diligently to network into those companies. I want them to know I'm the a candidate out there, that I was a strong manager, I led teams through challenges, and I see this is no different.
WHITFIELD: And so when you hear the latest report the job numbers of 500,000 jobs lost, eliminated just in one month alone, you know, the biggest since 1974, what does that tell you about the prospect for you and other people like you trying to land a job soon?
BELL: It's just one more mountain to climb, but I'm ready to climb. That's what I do. I overcome challenges. I'm excited about it. I mean, what can I do?
WHITFIELD: You're still optimistic.
BELL: I can't look back. I have to look forward. I have to get up every day and go charge out there, and I'm going to land and find that right spot.
WHITFIELD: And you have a 5-year-old at home. You know, how -- what do you say to your 5-year-old or does your 5-year-old even know?
BELL: Yes. He doesn't quite understand the concept yet. And I actually started a contract opportunity that's a short-term engagement here this last week. So we had to start our day a little earlier and I get home a little later and that was a real struggle for him. He is like, wait a second, it's too early to get up! I don't want to get up!
WHITFIELD: Something's wrong here. Well, Eric Bell, we wish you the best. Keep us posted on your job hunt.
BELL: Thank you so much, Fredericka.
WHITFIELD: Good luck to you. Thanks for your time.
All right, all morning long, we'll be looking at the numbers and the people behind the numbers. CNN's money team is in New York, on Wall Street and looking out for your money. Among the questions, would a stimulus package actually help all of us? We may face challenges off the court. But on the floor, on the hard court, he's a star! Team manager suits up and hits three. It's a story that you won't forget.
(COMMERCIAL BREAK)
WHITFIELD: All right. Michael Phelps has been suspended from competition. The three-month ban comes after a picture surfaced showing him smoking marijuana. USA Swimming says, quote, "He disappointed so many people, particularly the hundreds of thousands of USA Swimming member kids who look up to him as a role model, and a hero." Phelps spoke about the incident outside his training facility in Baltimore.
(BEGIN VIDEO CLIP)
QUESTION: Michael Phelps, what were you thinking?
MICHAEL PHELPS, OLYMPIC SWIMMING CHAMPION: Honestly, not much. And, you know, I mean, like I said, a bad judgment, and, you know, I can learn from it and try to make my life better than it has been in the past. Like I said, I made mistakes, and I have to live with every mistake that I've made.
I think it's hard to really, you know, to be ready for any of this. You know, to understand anything that's going to happen, I think, is -- it's impossible for anybody to really know the definite answer. But, you know, I've actually -- I've been able to talk to a lot of people, and, you know, a lot of people that have been in my shoes in other sports, and I've been able to get their perspective and just talk to them a little bit. And I think that's been helpful over the last few days.
QUESTION: Has this made you rethink Rome this summer and maybe London in 2012?
PHELPS: You know, honestly, like I said, swimming makes me happy. It's part of been my life for so many years now. And, you know, I just feel it's good to be -- it's good to get back in the water. I'm not going to make any decisions yet, but, you know, we'll just see what happens. I'm going to do everything I can, you know, in the pool, and I'm already back in the water training, still deciding on a lot of things. But, you know, I'm happy to be back in the water. And that's a place where I feel at home and feel comfortable.
(END VIDEO CLIP)
WHITFIELD: And as a result, Phelps has lost his first sponsor. Kellogg's is letting his advertising contract expire at the end of this month. Kellogg's let its sponsorship deal with USA Swimming expire back in December.
So here is a sports story, not from the headlines, but from the heart. Senior night, Greeley High School, Cumberland, Maine, and Patrick Thibodaux is suiting up for the first time, thanks to first string classmates and teammates who stepped aside so that he could play. So the hard-working team manager has Down Syndrome.
Though it was his dad's medical condition that actually concerned the family, he actually had suffered a stroke, but was determined to see his son play. And doctors decided that dad was well-enough to leave the hospital. So there they were, watching their son. It's a good thing, since the son there scored. Patrick's three-pointer electrified the home crowd and his teammates. One of whom gladly took the bench so that Patrick could play.
(BEGIN VIDEO CLIP)
SAM THOMPSON, GREELEY HIGH SCHOOL STUDENT: He comes to practice every day, you know. I mean, he comes to every game. I mean, he works really hard, and he just deserves it. I mean, if I could just help him, have a special experience tonight, I'll do whatever it takes.
(END VIDEO CLIP)
WHITFIELD: So Patrick wasn't finished. He came back in the game to hit another three-pointer, just before the buzzer. And was mobbed by his teammates, six points in the box score, but definitely the first star -- there you go, of the game.
And one more hoop highlight. This one for the ages. Tennessee women's coach Pat Summit reached the peak, recording her 1,000th win as The Lady Vols topped Georgia. She's the first division one coach to hit that milestone. Her post-game party presence included a contract extension, taking her through to the 40th season in 2014. Congrats to her.
All right, the markets have been open for about 25 minutes now, any effect from that dismal job number?
(COMMERCIAL BREAK)
WHITFIELD: All right, you've heard all about her. Now she is telling her own story. The mother of those California octuplets speaking out for the first time.
(COMMERCIAL BREAK)
WHITFIELD: All right. The stock market has been open now for nearly 30 minutes, and you would expect the stocks to fall after the dismal jobs report that we received. But so far, it doesn't seem to be the case. That's good. Let's check in with Susan Lisovicz at the New York Stock Exchange.
Susan?
LISOVICZ: Fred, well, it's one of the many reasons why the stock market can be so confounding. We just received the worst jobs report in decades, a sure sign of economic distress. What does the market do? We see the early going. We are seeing a nice rally, because Wall Street is actually breathing a sigh of relief that the numbers were not even worse. There's also hope that economic stimulus will be passed by the Senate today.
The thinking is, the loss of nearly 600,000 jobs last month may be just what Washington needs to push President Obama's plan through the unemployment rate, jumping to 7.6 percent. Some economists say it's likely to hit 9 percent before we start to see any improvement.
In the meantime, nearly 30 minutes into the trading. Check it out. The Dow up 147 points, the Nasdaq composite up 29. Each up about two percent. Advancing stocks swamping decliners by about five to one right now, Fredricka.
WHITFIELD: All right.
LISOVICZ: Go figure.
WHITFIELD: I know. Can't figure it all out. But thanks so much, Susan. Appreciate it.
LISOVICZ: You're welcome.
