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Scary Times; Severance Packages; Stimulus Wars

Aired February 06, 2009 - 10:00   ET

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

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: These are scary times. We are in - if you look at this, the basic structure wasn't happening. It does look like the beginning of the great depression.

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WHITFIELD: Economy's ills and possible cure. We're following both angles this hour. First the stimulus. Senators strive to reach a deal.

And 598,000 more reasons to get something done. January's job loss, the worst in decades. It is Friday, February 6th, I'm Fredricka Whitfield, in for Heidi Collins. And you are in the CNN NEWSROOM.

(BEGIN VIDEO CLIP)

PRES. BARACK OBAMA, UNITED STATES: If we do not move swiftly, to sign the American recovery and reinvestment act into law, an economy that is already in crisis will be faced with catastrophe.

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WHITFIELD: A dire warning from the president to senators, reluctant to pass his economic stimulus package. The price tag of the bill now stands at more than $900 billion. Senators working this hour to pare it down and broker a deal that it will pass. Live now to CNN's congressional correspondent Brianna Keilar. So what are the sticking points in these discussions?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: The big one that you just mentioned, Fred, $900 billion. That is so much money to so many of these moderate democrats and republicans who think that one, that's a lot of money, especially when they think there is a lot of stuff in this plan that maybe isn't going to create jobs. We heard from a republican who met with President Obama.

He really wanted it to be $800 billion, at least. Feels that only that much money will really stimulate the economy. But it's really hard for a lot of these moderates to really sign on. So what you have is democrats and republicans, about 17, 18 of them, working together, literally going through this package, line by line, trying to pull certain things out.

Some of these folks here that you see on your screen. A couple of examples of what they're looking at, $870 million for pandemic flu preparedness. $150 million for the Smithsonian Museum. And what you have is basically a discussion that goes on, where you have some folks who say pandemic flu preparedness. This is great, right? You know, this is something that can kill millions of people. We need to do it, it's very important.

But on the other hand, you have people who say, yes, it's important, but it doesn't create jobs. So why is it in this stimulus package? And keep in mind, though, these are just a couple of examples. You never really know moment to moment what's in and what's out as these senators when they talked to us reporters, they're keeping it pretty close to the vest, as Arlen Specter did last night.

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SEN. ARLEN SPECTER (R), PENNSYLVANIA: When you're in the middle of discussions like this, it would be harmful, prejudicial, to talk about specifics. But I think it's fair to say that we're making some progress, and we hope to find common ground, which will draw a real bipartisan bill. That's our hope. And, you know, now, with the audacity of hoping, popular, that's our hope.

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KEILAR: So republican Arlen Specter, one of the folks in this meeting. You can see him taking a jab there at the name of the president's book. You can really sense the frustration among this crowd. And as we speak, you've got about a handful of republicans in his office. These republicans who have been meeting with democrats, Fred, trying to work through this, trying to hash out a compromise.

And we're hearing from democratic and republican sources that still, they just have huge issues with the price tag, this huge price tag, and so there's still a lot of ground to cover today.

WHITFIELD: And so you wonder, even from those last words from Senator Specter, whether they feel like they can get this done today.

KEILAR: Oh yes and I should tell you that was from late last night -

WHITFIELD: Right.

KEILAR: The sense is there's going to be more discussions today, could be, you know, continued to be another long day. We're hearing from Harry Reid, the top Democrat in the Senate. He is optimistic. It could be done today but Fred, we heard that yesterday. It's going to be definitely some discussions. No guarantee this will happen today.

WHITFIELD: Well, you mentioned the top democrat, Harry Reid, in fact he is speaking right now, Brianna. Let's listen in.

SEN. HARRY REID: Henderson, Nevada, second largest city in Nevada. But it closed. People had invested an entire life savings in this little business, $350,000, and they are broke. And the business is shattered. It's this way all over the country. In January alone, 600,000 people lost their jobs. Nevada, unemployment rate, now over nine percent. Leading economists are now comparing today's crisis to the early years of the Great Depression. Now, Mr. President, we're not in a depression. But as I mentioned yesterday, during the Great Depression, stock market values went down 89 percent. Unemployment was 25 percent. And millions of others underemployed. We're not there.

But we've got to do something to turn this around, or we will be there. That's why the American people are looking at us to do something about it. Create jobs. That's what we need to do.

Now, the package that President Obama has come up with is a mix of tax cuts, and spending. And we are now in the throes of trying to work something out to approve that plan. It is - as we mentioned yesterday, in the evening, the vast majority of American people know something has to be done. They approve of what President Obama is doing. Trying to do.

Now all economists, conservatives, moderates, and liberals - for example, just a week ago, we met with Fellstein, Blinder, and we met with Xandi, John McCain's chief economic advisor, somebody from the republican administration, and a democratic, and an economist blinder. They all said the program has to be bold. It has to create jobs. So, Mr. President, experts at all points along the political spectrum agree that if we fail to take bold action, this recession will last for many years in the future.

America is waiting to see what we're going to do here in the next 24 hours. The world is waiting to see what we're going to do in the next 24 hours. Everyone knows that this crisis was not created by Barack Obama. He has been present for a matter of a couple of weeks. The crisis was inherited from his predecessor, and this man, George Bush, took office over a ten-year period there was a $7 trillion surplus. That has long since been gone.

Now, President Obama is taking responsible steps that we need to begin the long road to recovery. First step is this bill that's before us called the American Recovery and Reinvestment Act, which the House of Representatives has passed and we have debated all this week. This is a critical day for our country. And this Congress. Faced with this grave and growing economic crisis as indicated by the unemployment figures that came out at 8:30 this morning, democrats and republicans must decide today whether they will work together to come up with a plan and join the president in this road to recovery.

Now, I've been very concerned that we shouldn't talk about names here on the Senate floor, because sometimes it does more harm than good. But there is a small group of Republicans who are working to try to work - are working to come up with a solution. They have been genuine in their efforts. They have been responsible in their efforts. And while I don't agree with everything they're trying to do, I agree with the efforts that they have made.

And we've made progress. We've made progress since last night. We've been in a number of meetings already this morning. We worked into the night last night, and I think that we're going to be able to work something out. I feel very comfortable that we can do that. If we succeed, Mr. President, there's going to be a lot of credit to go around. If we fail, there's going to be a lot of blame to go around.

As I've indicated, our entire country will suffer, and the world will suffer. We are the economy that drives the world economy. During this week of floor debate, we have embraced good ideas, including tax relief and other investments from both parties. We'll continue to embrace all efforts borne of good will to reach a bipartisan compromise. But we're nearing the time when negotiations must be completed and action must begin.

So I urge to my colleagues, both democrats and republicans, to dedicate this day to responsibly passing this legislation, sending it to the president, and so that we can say that we have marched down that road, that road to economic recovery. There is no perfect solution to what we are attempting. There is no book we can check out of the library to say this is what should be done. There is no group of economists who we can go to and tell them to prepare paper in the next couple of hours to give us directions what to do.

We must do this on our own, and we will do this on our own. So, Mr. President, I hope that everyone understands we have a number of amendments. In fact, we have now pending one, two, three, four, five, six, seven amendments. We're going to continue working through these. I don't want to get more than about ten pending at any one time. So we have three more that can be offered and then we have to vote and get rid of some of these, because we can't have a bottleneck if, in fact, we arrive at a point that we have an amendment, a bipartisan amendment that we need to move forward on, and I think that time will come.

I tell all members that I think we're going to be spending a lot of time here today. I would hope, this being a little bit futuristic, probably around 5 -- between 5:00 and 7:00 today, I'm confident that we'll have something that we can vote on that would be kind of the big picture of what we need to do to move this to conference.

I would be happy with my colleague, the republican leader here, to respond to any questions or concerns that you may have about the schedule. I haven't had the opportunity this morning to talk to him about schedule. I try to do that on days like this, but I haven't had time.

SEN. MITCH MCCONNELL (R), KENTUCKY: Mr. President, I have a brief opening.

UNIDENTIFIED MALE: The Republican leader.

UNIDENTIFIED MALE: I have a brief opening statement, and would be happy to confer with the majority leader after that, if he's available.

From the very first moment of this debate, there's been strong bipartisan agreement on one thing. The original version of this bill was too big, and too unfocused to work. The President, Senate democrats and just about every single Senate Republican agreed this bill needed a massive, massive overhaul. One democratic senator said he was very committed to making sure we get it scrubbed clean of many of these programs. Another democrat said it needs some work, it needs some surgery.

Virtually everyone agreed this bill lacked focus, didn't create enough jobs, had too much permanent government expansion, and was just way too expensive with the national debt already reaching frightening new dimensions. The morning paper suggests that in the Senate, these bipartisan concerns persists, and so do the concerns of most Americans. The more the American people learn about this bill, the less they like it.

Americans realized that a bill which was meant to be timely, targeted, and temporary, has instead become a Trojan horse for pet projects and expanded government. We've got a trillion-dollar deficit. Our national debt exceeds $10 trillion. Soon we'll vote on our omnibus appropriation bill that will cost another $400 billion, bringing the total to $1 trillion for appropriations this year alone. That's a new record.

The president is talking about another round of bank bailouts that could cost as much as $4 trillion. And when you include interest, the bill before us will cost nearly $1.3 trillion. At some point, the taxpayers will have to pay all of this back, and they're worried. Americans can't afford a trillion-dollar mistake, however well-meaning the intent.

And at this point, that's what many of us think this bill would be. Republicans are ready to support a stimulus bill. That really hasn't been in question. But we will not support an aimlessness spending spree that masquerades as a stimulus. The economy is in terrible shape. Millions are out of work. This morning's unemployment numbers are further sign of the severity of the crisis. But putting another trillion dollars on the nation's credit card isn't something we should do lightly. We need to get a stimulus, but more importantly, we need to get it right. I yield the floor.

UNIDENTIFIED MALE: Mr. President? Mr. President?

UNIDENTIFIED MALE: Under the previous order - the leadership time is -

WHITFIELD: All right. Some pretty strong words there coming from Senator Mitch McConnell there, saying that he and others will not support what he believes to be an aimless spending spree that masquerades as a stimulus. We also heard from top democrat Harry Reid who said that we must do something in order to get around what would eventually become a depression.

He says, we're not there yet, but we're on the road to that. And he says there are about seven amendments that they are going to continue to work on throughout the day before perhaps there would eventually be a vote there in the Senate.

All right. Well, the economy news certainly goes from bad to worse. This morning, we learn the nation's unemployment rate has surged to a 17-year high. The staggering jobless numbers are front and center in the House and in the Senate. This hour, the joint economic committee is holding a hearing on the January jobs report. The commissioner of the bureau of labor statistics is expected to answer some questions about the national employment trends.

Boosting the economy, and saving jobs. President Obama insists that his plan will do that. But some senators, as we just heard, want to make some major changes. More on the drama, playing out right now on Capitol Hill.

(COMMERCIAL BREAK)

WHITFIELD: All right. The government is taking action against the company at the center of the Salmonella outbreak. The U.S.D.A. has suspended Peanut Corporation of America from doing business with the government. The agency is saying that PCA lacked business integrity and business honesty. The outbreak was also the subject of a congressional hearing on Thursday. Here are some of those highlights.

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STEPHEN SUNDLOF, FDA CENTER FOR FOOD SAFETY: For the most part, in a routine inspection, those records may not be revealed to us, because the company is not - is not required to give us that information.

SEN. THOMAS HARKINS (D), IOWA: Well, it seems to me, that is one gaping loophole. That a company that does its own testing finds Salmonella, does not even have to report that to the FDA.

SEN. PATRICK LEAHY (D), VERMONT: I would like to see some people go to jail! You know, I don't really care what kind of a fine is put on a company that ignored this. Because I don't think that really bothers people.

GABRIELLE MEUNIER, MOTHER OF SICKENED CHILD: There was no one place I could go. And I have to say, I was not even aware that the FDA was involved. I thought this was between the CDC and my state health department. And never - so I was never told that there was this FDA web site that I could go to.

Furthermore, it should be one website when there is a food borne illness, not two. So I would just like to make that clear, because people are totally confused as far as who is in charge. Is it my state, is it the federal government?

ADM. ALI KAHN, CDC: I'm actually quite disturbed that you tried to contact somebody at the CDC, and was not able to. We do have a system that allows people to do so. But the heart of this issue is communications and we are doing a lot of innovative things with communications such as you've said blogs and twitter and widgets, that go on to website pod casts, and it's disturbing that people don't recognize that the CDC website is available there for information. CAROLINE SMITH DEWAAL, CENTER FOR SCIENCE IN THE PUBLIC INTEREST: I can tell you, PCA was not considered a high risk facility because peanut butter generally isn't.

WILLIAM HUBBARD, FORMER FDA OFFICIAL: Despite all of the advances we've made in science and technology, we have not evolved (inaudible). We simply haven't. In fact FDA has a food safety system that is a relic of the 19th century. It is outmoded, outdated. It does not use modern scientific techniques, and it clearly needs a serious examination in my view by the Congress and the new administration.

SEN. THOMAS HARKIN (D), CHMN. AGRICULTURE COMMITTEE: I just want to again reassure parents across the country that the peanut butter THAT they buy in these jars, whether it's Skippy - what was that other one you said?

UNIDENTIFIED MALE: Peter Pan.

HARKIN: Peter Pan, of course, all those are safe. These are safe, and if anyone disagrees with me, say so. But I believe that is factual. You don't have to worry about it. And I'll even eat my own peanut butter sandwich while I listen to the witnesses just to show you that I don't have any fear of eating peanut butter.

WHITFIELD: All right. CNN's senior medical correspondent Elizabeth Cohen joins us now from New York this morning. Elizabeth I understand there is some new information out this morning as it pertains today.

ELIZABETH COHEN, CNN SENIOR NMEDICAL CORRESPONDENT: That's right, Fredricka. The "Washington Post" is reporting that three states received peanut butter from Peanut Corporation of America for school lunches in 2000.

Minnesota, Idaho and California schools again received peanut butter from this company. Not clear whether any of that peanut butter was tainted or if any kids got sick. But that's the news today. Now, if you want to know more, you saw the senator with his peanut butter sandwich. If you want to know more about what's safe and what's not, you can go to noncom/tips, and we have a link to the FDA site that lists everything that has been recalled.

CHETRY: All right. You know in that earlier sound bites we heard Patrick Leahy say I want to see someone go to jail. So we're talking about eight who have died as a result of this and nearly 600 people have been sickened as a result of the Salmonella. So what kind of punishment might there be out there.

COHEN: You know, I think Senator Leahy is going to be sorely disappointed. Because this as the law stands now. This is the punishment for getting those people sick and for possibly killing those people. A maximum of $1,000 fine and/or a year in jail. That's right. That's the punishment for eight deaths and nearly 600 illnesses right now as the law is written. WHITFIELD: And the questions are still being asked, you know how could this happen? Is there one specific answer? Because we've heard a lot of different things coming from PCA.

COHEN: You know, there is no one specific answer. But here is part of the answer that kind of came out in these hearings. People have this vision that there must be FDA or state inspectors at the plant all of the time. Well, you know what, that's not the case. Often, they don't go more than let's say once or twice a year, and when they go, they are just looking at what it looks like that day.

So the plant may look fine that day, but who knows what it looked like the day before or the day after. These inspectors do not live at these plants, they visit, they come and they go, and they don't go that often.

WHITFIELD: So I wonder if there is going to be more responsibility placed perhaps place on some of the employees since inspectors can't get there all the time. Maybe it's going to have to be in part up to the employees to be the whistle blowers.

COHEN: Sure. That may happen, and here is another thing that might happen. There may be stricter laws about doing actual testing. I think people think that when these inspectors go in and they take some of the food and they look at it under the microscope, well that's not always the case. I was talking to Scott Bronstein who is an investigative producer here at CNN. Often, they just go in and they look around with the naked eye. Well you know, the naked eye cannot see Salmonella. So we may see that changing, as well.

WHITFIELD: All right. Thanks so much, Elizabeth Cohen there joining us from New York. All right. Lots of people, obviously, very concerned about what's taking place with a lot of people very concerned about what is taking place with Salmonella.

But also now on the Supreme Court as well. U.S. Supreme Court Justice Ruth Bader Ginsburg is battling pancreatic cancer. Yesterday she had surgery and court sources say that it went well, and that doctors found the tumor early. The 75-year-old justice is expected to stay in the hospital about a week. Ten years ago, she was diagnosed with colon cancer. She had surgery, radiation and chemotherapy, and never missed a day on the bench.

All right. Still top priority, and huge concern up on Capitol Hill. And really throughout the rest of the country. The Senate continues to haggle over what to do with the proposed stimulus plan. We heard from top democrat Harry Reid, who earlier said there are about seven amendments that they're trying to work through. He says, I'm quoting now, "we must do something to turn this around, or we will be there. " There is a depression. Then we also heard from Senator Mitch McConnell who said that he's not so happy with this plan, because he says it is masquerading as a stimulus, when it is really a spending spree.

So that is sort of the tone there on Capitol Hill as the senate tries to work through the stimulus plan. The president is hoping that there will be a vote sometime at the end of this week. We shall see. Much more, straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: So if you get a pink slip, you also get some severance pay? That money can make a world of difference in a flooded job market. CNN senior correspondent Allen Chernoff has some answers that just might surprise you. Allen?

ALLEN CHERNOFF, CNN SENIOR CORRESPONDENT: Fredricka, this is actually a little wit bit of good news in this just awful stark economy. I mean companies as you now have been chopping jobs by the hundreds of thousands, but at least most American companies are not cutting back on their severance. The average in the U.S. is two weeks of severance for year of service at a company. And the fact is, more companies actually have been increasing the amount of severance they give out to laid off workers.

WHITFIELD: Really?

CHERNOFF: Than decreasing. So that's an improvement. And only - in terms of plans going forward, only three percent of U.S. companies actually plan to cut back on severance. That's according to a recent survey by Wright management.

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TONY SANTORA, EXECUTIVE V.P., RIGHT MANAGEMENT: It shows the employees that aren't affected by downsizing that the company does care, and they always are thinking in the back of their mind, what if that's me. And that is certainly an opportunity to retain good employees.

(END VIDEO CLIP)

CHERNOFF: Well, as you might expect, of course, the more senior you are in that corporate ladder, the better you're going to do. Let's have a look at some numbers. First of all, top executives, well, on average, they are actually getting three weeks severance. Then we move down the road. If you're a manager, well, it's more likely to be 1.8 weeks on average, a professional technical worker, 1.6 weeks. So, the people at the top, they're getting the sweet stuff, as you'd expect. And let's compare the U.S. overseas because this will -- this is maybe not such encouraging news for Americans. This is nothing new, though.

Compared to the Europeans, we're not doing that well at all. Let's look at what's happening also in Japan. Japan averaging 3.8 weeks of severance. Germany, 3.6 weeks. Canada, 3.4. The U.K., 2.9. And then there's the U.S. at 2 weeks of severance.

So, the good news is companies have not been cutting back on severance. The bad news is, it's better -- if you're going to be laid off, better to be laid off overseas than in the U.S.

WHITFIELD: Oh, my goodness. Boy, very sad. But you know, got to find a little humor in all of this, right? All right, Allen. Appreciate it. Thanks so much.

All right. You're watching live pictures now of the Senate confirmation hearing for Leon Panetta. He is President Barack Obama's choice to head the CIA. We'll keep an eye on it and bring you updates as they become available.

And just a little bit of background information on Leon Panetta right now. He served as White House chief of staff under President Clinton. He is a former chairman of the National Economic Council. He's the former director of the U.S. Office for Civil Rights. And Panetta is the former director of the Office of Management and Budget. He was born June 28th, 1938 and received his law degree at Santa Clara University. And Panetta is a veteran of the U.S. Army.

In economy now, on the skids. Your money in the headlines. This morning we learned the nation's unemployment rate shot up to a 17-year high. January saw the biggest one-month loss of jobs since 1974. Those grim numbers the focus right now on Capitol Hill this hour.

The Joint Economic Committee is looking for clues in 12 straight months of job losses. What's new in the labor market? And are there national trends emerging? And the search for a stimulus package. Senators scrambling to whittle down some of the $900 billion price tag. The president warning that more bad times could be ahead.

But the president insists his stimulus plan will start turning that tide and boost the economy by creating jobs and cutting taxes. He urged senators to quickly approve his package so that the recovery process can begin.

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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This package is not going to be absolutely perfect, and you can pick and that's the game that we all play here. We know how to play that game. What I'm saying is, now we can't afford to play that game. We've got to pull together.

There are going to be some things that don't get included that each of us would like to see included. All of us are going to have to make some sacrifices. And we have to accommodate the interests of a range of people, and the House is going to have to work with the Senate. But let's think big right now.

(END VIDEO CLIP)

WHITFIELD: A group of moderates from both parties looking to pare down some spending provisions. We'll keep you updated on what's happening there throughout the day.

So, right now, let's take a look at the president's schedule. Last hour, he attended the daily economic briefing in the Oval Office. At around 11:15 this morning, Mr. Obama will introduce high-profile members of the president's Economic Recovery Advisory Board. And it will be headed by former Federal Reserve Chairman Paul Volcker. And at 3:30, the president will meet with families whose loved ones were victims of the September 11 attacks and the attacks on the U.S.S. Cole. All right, another look at the numbers right now. Well, despite very dismal job loss numbers of nearly 600,000 jobs lost last month alone, the Dow up 135 points.

We'll continue to watch the market for you all day long.

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WHITFIELD: All right. The U.S. economy lost nearly 600,000 jobs last month alone. That's roughly the population of Boston. Susan Lisovicz is on the floor of the New York Stock Exchange with more on the dismal report, along with how stocks are reacting. And surprisingly, at least they're not going down. At least the Dow isn't.

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, I've been down so long, it's starting to look up to me. I mean, you kind of have that theme going here on Wall Street today, Fredricka. Yes, nearly 600,000 jobs lost in one month alone, January. That is the worst in in 34 years. Meanwhile, the unemployment rate up to 7.6 percent. And that is the highest rate in 16 years.

The U.S. economy now has given up more than 3.5 million jobs since the recession began December of '07, nearly half of it coming in just the last three months. It shows the urgency of the problem, and how deteriorating, how quickly the market is deteriorating. Only bright spots in the economy continue to be health care, education and the government.

But as you mentioned, the market really not having the reaction must might expect. And why is that? Because basically, these numbers came within a range.

As one analyst said, you would have to be -- have to be the end of the world for -- anything short of that is considered good news. Plus also, there's hope for the stimulus package to be passed in Washington. And is so there is some optimism. It's translating into triple-digit gains for a second day. The Dow is right now up 138 points, the Nasdaq up 24, Fred.

WHITFIELD: And just as we're trying to die jugest the fact there are so many job losses, now we have to deal with the fact that there are hiring freezes. But I think we mostly knew that, didn't we?

LISOVICZ: You know, this is something that is really flying underneath the radar, but it is a crucial part of economic recovery when it comes. And that is, yes, the layoffs, those headlines steal the thunder. But the fact is, it's hard to find a job. That's why millions of people are still on -- getting unemployment benefits, because so many companies have instituted hiring freezes.

And those declines are actually greater than the increases that we've seen in the layoffs. When will that change? Well, it's when confidence returns to the -- to corporate America, and that is a very, very elusive thing right now.

And anyway, there is an excellent story by Chris Isidore on cnnmoney.com. Check it out, Fredricka. It's a crucial part of the equation, and that's why Washington is so much in focus by Wall Street these days.

WHITFIELD: All right. Thanks so much, Susan. In fact, let's focus a little bit more on Washington and Capitol Hill. Yes, we know they're trying to hammer out a stimulus package, but we also know that right now a hearing is under way, a joint economic hearing, trying to understand the trends of these job losses. Which sectors are being hit the hardest?

The commissioner of the Bureau of Labor Statistics just moments ago articulated some of the numbers. Commissioner Keith Hall from the Department of Bureau and Labor Statistics saying in part that by demographic, African-Americans experienced some unemployment changes, job losses that have increased now to 12.6 percent. Unfortunately, I don't know the time span that we're talking, whether they're talking -- OK, apparently since December of 2007 right now, so over the past year and a half or so.

Latinos experiencing from a 6.2 percent job-loss rate to now rising up to 9.7 percent. And among white Americans, the number has increased, as well, from 4.4 percent to 6.9 percent, roughly between an average of 2.5 to just over 3 percent in those three demographics experiencing job losses. What they're trying to do there at the joint economic hearing is try to figure out why, and in what industries are they seeing this kind of job loss being suffered the most. Of course, as we learn any more information out of that hearing, we'll bring that to you as soon as we can.

All right. A helping hand for military families. Giving them a place to stay while their loved ones try to recover.

(COMMERCIAL BREAK)

WHITFIELD: All right, a grand opening in Los Angeles today. The newest addition by a group dedicated to helping wounded troops and their families. Our Heidi Collins has more.

(BEGIN VIDEOTAPE)

HEIDI COLLINS, CNN CORRESPONDENT (voice-over): Helping families stay together at a critical time. It's the mission of the Fisher House Foundation. For nearly 20 years, the group has raised money and awareness for families of wounded troops. Fisher Houses make it possible for family members to stay near the hospitals and medical centers treating their loved ones, all at no cost.

SHARON HUDSON, MANAGER, FISHER HOUSE LOS ANGELES: When you're having a loved one who's going through a very difficult time, sometimes it affects the family, as well. It doesn't just affect that one patient or that one veteran. It affects their whole family.

DONNA BEITER, VA HEALTH CARE SYSTEM: We find with our returning war vets is their family are just as needy as the patient in many ways in terms of getting support. So, having them right there available to work with the health care team. Because they're very stressed, you know. Their son, husband comes back, missing a leg, with traumatic brain injury. They don't know how to deal with it. So having them close by, so they can become really incorporated into the health care team and the plan of care really helps them also very, very much.

COLLINS: There are 42 Fisher Houses open right now across the country in 15 states, Washington and Germany, including facilities at Walter Reed Army Medical Center and Bethesda Navy Medical Center. Fisher House was founded in 1990, and according to the foundation, more than 120,000 family members have come through their doors, saving more than $100 million on lodging, food and transportation.

HUDSON: Every member of the family is generally affected when one member is ill or going through a very serious surgery or that type of thing. Most of the families who come here may spend a lot of the time at the hospital. And when they come back from the hospital, they just need someplace where they can go and feel comfortable and just let things go. The staff is just overwhelmingly excited about having you here, and we're just appreciative to having the veterans' families to come.

COLLINS: The average stay for a family, just over two weeks. The not-for-profit Fisher House Foundation depends largely on donations and volunteers.

Heidi Collins, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: The 43rd Fisher House is opening today in Los Angeles. And joining me now from the living room of the new home is retired Army Specialist Jerral Hancock. Good to see you. Also, Ken Fisher, chairman of the Fisher House Foundation. Good to see both of you.

Well, Gerald, let me begin with you because you had a firsthand experience of what it is to stay at a Fisher House in Palo Alto, California after your injury while serving in Iraq on your 21st birthday back in 2007. Back to Palo Alto, receiving your medical treatment, what kind of difference did the Fisher House make for you, and what kind of comfort did it offer for your family?

JERRAL HANCOCK, WOUNDED IN IRAQ: The Fisher House was awesome for me, because I was at the -- at that time, I had been living in a hospital for seven months. So, to be able to have my family right there and be able to eat a real meal and have a place to get out of the hospital for a little bit was -- it was real great for me, at least. And I know my family enjoyed it, as well.

WHITFIELD: And I bet the camaraderie among other military families and the injured all staying under one roof, being together, you know, in this fight of recovery had to be very comforting as well.

HANCOCK: Oh, yes, most definitely. Having other injured soldiers around and other families that are going through the same situations that you are definitely makes it a lot easier to cope with what you're going through.

WHITFIELD: All right. Mr. Fisher --

HANCOCK: And for your family to cope.

WHITFIELD: Absolutely. Well, you know, Mr. Fisher, coping and being comfortable, you know, you've got to have those two things together. You all helped create the Fisher Houses for these very reasons. This is the 43rd now one. You must be incredibly proud.

KEN FISHER, CHAIRMAN, FISHER HOUSE FOUNDATION: I'm very proud. Most importantly, though, I'm proud of Jerral, and I'm proud of the service men and women that are out there laying it on the line for us. And this is exactly why we do it, is so that Jerral can have his family with him.

And having them as part of the recovery process is the most important thing. We like to say that a family's love is the best medicine of all. And when you come here and see it, it just reinforces what you do.

WHITFIELD: Do you feel pretty confident that the healing process for those who get a chance to stay at Fisher House along with their families might be a bit more progressive than the more traditional settings where families and the injured are separated during that kind of healing?

FISHER: Well, it's not only being separated. You know, it's -- you know, it's being in a hotel, and being in that kind of an environment, whereas you come to a Fisher House, the families now -- you know, are in a home feeling, a home environment.

And what Jerral said before, and I think the point that you touched on about the support system that forms here I think is important, because it also helps the families help their loved ones, as well. So, it's not just about, you know, supporting each other, which they do. But it makes them better at supporting their loved ones.

WHITFIELD: When you first came up with this idea, I imagine just setting, you know, laying the groundwork for the first house, you know, that was a huge undertaking. But now you're at house number 43. Had you any idea that it would blossom into a project as big and as vast as this?

FISHER: Well, the project was founded by my Uncle Zack (ph) in 1990. I actually became chairman in 2003. And at that point, there were 24 houses.

And if you had told me back then that we'd be dedicating house number 43 some five or six years later, I wouldn't have believed you. But it's not so much what we do, it's the the generosity of the American public that has allowed this program to flourish. And they finally realized that you can have a political disagreement with your government, you may not agree with what's going on, but you can't hold the men and women who are out there, you know, of the armed forces, you can't hold them responsible. So, the generosity of the American public has made this foundation what it is.

WHITFIELD: Well, congratulations on this now 43rd house, and it keeps growing. Ken Fisher and Jerral Hancock, thanks so much for sharing your story as well. All the best.

FISHER: Thank you very much.

HANCOCK: Thank you. No problem. .

WHITFIELD: All right, defending her actions. The mother of those California octuplets, speaking out for the first time.

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WHITFIELD: Yoga, it's a great stress reliever, both physically and mentally. That's something we all need during these tough economic times. Well, in today's "Fit Nation," our chief medical correspondent, Dr. Sanjay Gupta, shows us a new style of yoga.

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DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): This isn't your mother's yoga. This is the new face of yoga. Irreverent yoga.

KIMBERLY FOWLER, FOUNDER, YAS YOGA: My tagline: no chanting, no granola, no Sanskrit.

GUPTA: Kimberly Fowler, the founder of Yas Yoga in Venice, California, says the ohm is out, and new yoga for the Type-A busy professional is in.

FOWLER: To the beginner, when you walk into a class and the teacher is teaching Sanskrit and wrapping themselves up in pretzels, and you just go, oh, OK, not for me. It's a shame to have that experience.

GUPTA: Combining traditional yoga poses with fast-paced modern music and stretches designed to help athletes develop better stamina, Fowler's style of yoga is developing quite a following.

LUIGI LOPRESTI, YAS YOGA PARTICIPANT: Yoga to a lot of people is kind of -- I don't want to say weird, but, you know, intimidating. This place has always been super-welcoming, and it allows people to kind of come in here and do their own thing and work at their own pace.

UNIDENTIFIED FEMALE: It's open enough that people can take what they need out of it.

GUPTA: If this popular YouTube video isn't proof that the traditions of yoga are falling by the wayside, Fowler says her seven brand-new franchise locations might be. FOWLER: When I first opened Yaz, I got, like, hate e-mail. Now everybody is trying to do yoga for athletes.

GUPTA: For the Type A in all of us.

FOWLER: It calms you down and gives you energy at the same time, which is a huge benefit.

GUPTA: Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

WHITFIELD: All right, a look right now inside the White House, advising the president. Just a few minutes from now, President Obama will announce a high-profile team of outside economic advisers, and they're all filling the room to see who and hear from whom. It will be headed by former Federal Reserve Chairman Paul Volcker. We'll bring that to you live next hour.

(COMMERCIAL BREAK)

WHITFIELD: All right, the birth of Nadya Suleman's octuplets last week captured the nation. But the single mother quickly became the target of criticism when it was revealed that she already had six children. Well, now in an exclusive interview with NBC, Suleman explains her actions.

(BEGIN VIDEO CLIP)

NADYA SULEMAN, MOTHER OF OCTUPLETS: I'm providing myself to my children. I'm loving them unconditionally, accepting them unconditionally. Everything I do. I'll stop my life for them.

(END VIDEO CLIP)

WHITFIELD: All right, Suleman says all 14 of her children were born by in vitro fertilization from sperm donated by a friend.

I'm Fredricka Whitfield. Join us again Monday morning starting at 9 a.m. Eastern. I'll see you throughout the weekend. For now, CNN NEWSROOM continues with Tony Harris.

TONY HARRIS, CNN ANCHOR: Some friend.

WHITFIELD: Oh, hey! There you are.

HARRIS: Friend, huh?

WHITFIELD: Yes.

HARRIS: Some friend. Thanks, Fred. Have a great weekend.

WHITFIELD: OK. At least the children now will have the same father, right?

HARRIS: Absolutely.