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White House Briefing; President Expresses Urgent Need For Senate Vote on Stimulus Plan; Obama's Trip To Chicago; Monday's Address To The Nation; Stocks Rally After Jobs Report; Disagreement With President Obam on GITMO; Phelps Tries to Explain; Voices of the Recession

Aired February 06, 2009 - 14:00   ET

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

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: Major.

MAJOR GARRETT, FOX NEWS CHANNEL: A couple. No surprise to you.

GIBBS: The only surprise was it was only a couple.

(LAUGHTER)

GARRETT: Flexible.

GIBBS: I understand it.

GARRETT: On the Senate floor just a few minutes ago, Senator Dianne Feinstein of California, her state's losses; she said, its fair share of jobs in this bad economy. She said, I reserve the right at the end of the day to vote against this package. But I don't think puts those jobs out there.

It begs the first question, who's playing petty politics? Is she specifically, or anyone not yet sold on this package at the moment, playing petty politics, or pushing old, tired arguments and ideas?

GIBBS: Well, I don't know what her arguments are for coming to that. I know the president's argument for moving the process forward is a piece of legislation that will save or create those 3 to 4 million jobs that I talked about.

GARRETT: Is there an "us versus them" dynamic being playing out here, rhetorically, for the president?

GIBBS: I don't think so. Again, the president is going to work each and every day energetically on behalf of the millions of Americans that have lost their jobs. The millions of Americans that are looking at this town to work across party lines, to get something done, to move that process forward, and to get the help that Americans both deserve and expect will happen. That's what the president's focused on.

You know, we've touched on this many of the days that I've been out here, different speeches, and different sayings and different amendments. The president looks forward to the Senate moving this process forward. And I think you'll see at that point that we'll be very close to a package that can meet the president's priorities. And move this economy forward.

GARRETT: A question on Russia. The deputy prime minister said today Russia would not install anti-ballistic missiles in Kaliningrad, if President Obama did not pursue the construction of a missile shield. As the president evaluates that policy choice, where is he and how does this statement from the Russian deputy prime minister affect those deliberations?

GIBBS: Well, this administration will be candid with the Russians when we disagree, but seeks a deeper and greater cooperation on issues of mutual national interest. The president's position on those missiles are, if they're -- if they're technologically capable and effective, and make sense from a fiscal standpoint, then it's something that he'll look at. So, obviously any sense of -- without commenting specifically on what he said -- any sense of greater cooperation from Russia is something that we want to foster. And we look forward to continuing to work with them on mutual areas of agreement.

GARRETT: One last one. Has the White House moved the control of the Census Bureau into the White House for purposes of the 2010 census? And if so, why?

GIBBS: No, the -- I think the historical precedent of this is there's a director of the census that works for the secretary of Commerce, the president, and also works closely with the White House, to ensure a timely and accurate count. That's what we have in this instance.

Yes, sir?

QUESTION: You look ahead to Monday, and the roll out of the rescue package rewrite. Is this just about changing, or clarifying, improving the rules for the second half of the existing program, or are you going beyond that asking for more money?

GIBBS: I don't want to get ahead of Secretary Geithner's speech on Monday, or to pre-judge what amounts may or may not be necessary to stabilize our financial system. The most important thing, as we move forward on this second amount of money to stabilize the system, is that we do it differently than the way it's been done before.

You all saw reports today from Elizabeth Warren's commission about the valuation of assets and the money that the government paid. We had an announcement at the White House that pertains to the way executives are compensated, that they had received an extraordinary amount of assistance from taxpayers to keep their banks going. We hope that the next set of money will also -- money that banks get will be money that banks lend to businesses, large and small, and to families. And that we will also begin to address the burgeoning home foreclosure crisis that affects so many out in America.

All of those will be proposals that in some form or another will be contained in what the secretary talks about, has talked about, will talk about on Monday , and will talk about going forward. QUESTION: Are you not even able to say at this point whether Monday is going to include a call for additional money, whether or not it's further down the road?

GIBBS: I don't have -- I have not read the speech. And I wouldn't get ahead of Secretary Geithner as it relates to that, even if I had.

Jeff.

QUESTION: When I asked you the question about traveling yesterday, you said the president was confident that his message about the stimulus plan was getting through. He said he had made his points clear through interviews and other things. What changed from yesterday at this hour until right now, in terms of traveling to Elkhart, places that have unemployment problems, and Fort Myers?

GIBBS: I don't - the president wants to extend that conversation and continue it directly with the American people. You know, we can do it here, we can do it there. We're going to do it in -- I was going to do a Doctor Seuss, but I decided not to.

(LAUGHTER)

Be careful.

You know, the -- I think the president looks forward to getting out of town for a few hours, and talking directly with people that are affected. He has spent time here working through the process of creating and moving forward the -- an economic Recovery & Reinvestment Plan. Whether it is interviews that happen here and are heard elsewhere, I think this is just a continuing effort by the president to demonstrate what he's fighting for. And why it's so important for the American people.

QUESTION: Has that message not gotten through up until this point?

GIBBS: No, I think the message has. I think we've made significant progress through the legislative process. I think whether it's today or the next few days, we'll take more important steps toward moving this thing forward. And certainly given today's numbers, it's important to go directly to where people are hurting. Whether it's Indiana, or whether it's Florida, and discuss directly with them the price of inaction, and what he thinks we can do to put people back to work and invest long-term in what will help grow our economy for years to come.

QUESTION: if he could take members of Congress with him on this trips? Are these trips aimed at those members of Congress, either who go with him or back to Washington?

GIBBS: No, you can imagine the plane that we -- that I traveled on last night and will travel on Monday or Tuesday is a popular mode of transportation. I believe, and I hope that members of Congress and members of the Senate will travel with the president on each of those trips. This is not designed specifically to cajole or -- any member of Congress. It's an effort for the president to talk to the American people about what's at stake.

QUESTION: Can I ask you a separate question?

GIBBS: Major already did, but sure.

QUESTION: Following his lead.

On the Supreme Court, can you talk about the kind of mechanisms that are in place to think about potential retirement or two down the road?

GIBBS: I think it would be inappropriate for me to get ahead of anything like that. I spoke yesterday that obviously the president's thoughts and prayers were with Justice Ginsburg and her family right now. I believe a little later this afternoon the president is going to talk to her. I'll try to get a readout from that. But I don't want to get too far down the road.

Kristen (ph)?

QUESTION: The president, I understand, is planning to go to Chicago, you say?.

GIBBS: You guys? Did I not make any news from up here?

QUESTION: Can you say what he's planning to do? Does he have public events? And will he be staying in Hyde Park?

GIBBS: I believe he will be staying in Hyde Park. The week ahead is going to be like a few days in the future. Next Friday he will work here in the morning and the afternoon, and then sometime late afternoon or early evening will travel to Chicago and spend the weekend there. I would assume it's Hyde Park. I will double-check.

The only plans I know of is I'm sure the president and the first lady will go out for Valentine's Day. Even if I knew where they were going, I wouldn't tell you until next week. They will definitely -- they'll spend the weekend -- I don't know whether, in all honesty, departure from Chicago back here is Sunday yet, or Monday .

QUESTION: How is the White House responding, or how do you respond to the concerns of African-American and Latino officials about Judd Gregg being in charge of the census, given in the past he's not always supported additional funding for the census, and they don't believe he doesn't have sufficient concerns over making sure everybody is counted?

GIBBS: I think everybody can be assured that any person that is picked by the president to work for this president, implement the views of this president. And President Obama, obviously, is -- believes that we have to, for a lot of reasons, have a fair and accurate count during the next census. And that's as president of the United States, exactly what he intends to do.

QUESTION: Will the White House involvement with the census office, is that partly to ensure that that indeed happens?

GIBBS: No, I think any cooperation with that is historical in nature.

QUESTION: Talking about cajoling a moment ago. This weekend there are going to be economic recovery House meetings conducted by organizers for Obama for America, which is a continuation of Obama for America. Does the president want to see the people who attend those meetings, and the 13 million other names on that mailing list, actually pick up the phone and lobby members of Congress to pass this stimulus bill?

GIBBS: Well, the president has spoken often about the continued involvement, not just of those that were involved with his campaign and election in November, but all over the country weigh in on matters involving them and their government.

It's often said you -- the government you get is equal to the government that you participate in. I think he hopes that regardless of your opinion, that people participate actively in decisions that affect them, and their neighbors, particularly on an issue as important as moving this economy forward.

QUESTION: But will he make an explicit call -- he may be too young to remember when Reagan did this 20 --

GIBBS: You're very kind to say such a thing.

QUESTION: But he gave speeches on TV in which he asked voters, those who supported him --

I remember the rabbit ears.

QUESTION: It was in color back then, too. But he gave speeches asking people to pick up the phone and call their members and make an explicit demand to pass this legislation. I mean, rather than just saying, the people who participate are engaged, won't the president --

GIBBS: I think it would be safe to assume that the president will ask those that support him, or supported him in November, to continue to support his efforts as part of a recovery plan to move this economy forward.

QUESTION: Robert, back on unemployment numbers. Overall, 7.6 percent, but then there's a breakdown, Hispanics 9.7 percent, African- Americans, or blacks, 12.6 percent. Now, are Hispanic and African- American leaders being briefed by this White House, or are these groups in any way vested in the job creation component of the stimulus package?

GIBBS: They looked at last night, when he went to speak to the House Democratic Caucus. I think it's safe to say that the president and his staff have been in touch with many members of Congress about -- you already look like you don't like my answer.

(LAUGHTER)

GIBBS: I haven't even finished yet.

QUESTION: Well, I know, but you're talking Congress. But I'm not just talking Congress. I'm talking the broad-based community. There are more leaders, African-American and Hispanic leaders, than just the Congress.

GIBBS: Sure, some of them were here today as part of the president's new advisory board for the economic recovery; CEOs that have been here, mayors that have been here, governors that have been here, interest groups that have been here. This White House is reaching out, as I've said many times, to anybody, and everyone who wishes to work toward a process and a proposal that will get this economy moving again. And creating the millions of jobs that we need to save or create to replace the millions that we've lost.

QUESTION: Do you believe that the black community and the Hispanic community are vested in this?

GIBBS: I do. I think those numbers demonstrate that their involvement in the economy, they understand the crisis that -- bless you -- they understand the crisis that our economy's in. And they're anxious to see Washington move forward and get something done.

QUESTION: Robert, does the president already feel cooped up in the White House? You said today that the president looks forward to getting out for a few hours. When he was at the charter school the other day, he told the kids he likes getting out of the White House.

GIBBS: Safe to say. Look, you know, some of you have covered him and some of you haven't, but he's a bit of a restless soul. His idea of a crazy day is to take a long walk.

QUESTION: Long walk where?

GIBBS: In solitude and isolation, April.

QUESTION: Out there?

GIBBS: No. On Saturday, the first family will go to Camp David and stay overnight before returning on Sunday.

I feel like we're playing the "Jeopardy" version f the week ahead and so far I'm at Camp David, for $600.

(LAUGHTER)

So I don't know if there's anything else that I have to announce. I'm just going to go ahead and do this. Let's just go ahead and do this. Hold on, hold on, hold on.

On Wednesday the president will be in -- Washington, D.C. As you know, on Thursday he will travel to Springfield, Illinois, and travel back that night. Also on Wednesday, the vice president will visit a school in Northern Virginia to talk about and highlight the recovery package that is moving through Congress. I feel like we just did the whole grand finale.

Yes, sir?

QUESTION: On some of the spending cuts that they're considering, including on schools, you mentioned the vice president will go to a school on Wednesday. Does the president feel possibly because of the PR hits the package is taking and the fact that it's going down in the polls, that it would be better off with the kind of cuts that the bipartisan group is likely to come up with? Or that it be slimmed down in that way? Or does he want to - would he want that amendment to be defeated?

GIBBS: Well, we're not going to get -- as I said yesterday, these - President Obama and Vice President Biden have traded their old jobs for new ones. We're not going to get involved in what each and every move that the Senate is doing. As I said earlier, the president's -- the number the president is focused on right now, and every day, moving forward, is the number of jobs that a piece of legislation and proposal to help this economy recover are the number of jobs it can create. That's what he's focused on.

We will have the process move forward. We look forward to that happening. But our focus is on what that recovery plan will do to put the millions of people that have already received pink slips back to work.

Michael.

QUESTION: I'm going to try again to ask a question that's sort of been asked before.

GIBBS: Camp David?

(LAUGHTER)

QUESTION: No.

Does the president, or do you see a tension between the president's goal of bipartisanship, and the need to get something done urgently? I wonder as the economy's deteriorating at a more rapid rate, whether that is going to necessarily impede that first goal that was more pronounced in the first couple weeks here?

GIBBS: The first goal being bipartisanship?

QUESTION: Bipartisanship.

GIBBS: No, I think -- again, I think today's numbers underscore partly because of the math involved in the Senate, and partly because of the math involved by the Bureau of Labor Statistics, that we do -- that we work in a bipartisan fashion to get something done quickly.

I don't think there has to be an either/or mentality to this. Neither does the president. In order to get something moved forward, we're going to have to work with Democrats and Republicans . But the statistics today underscore, more than ever, more than last month, more than the month before that, and certainly taken in total through the course of this recession, we see a jobs market that is deteriorating rapidly, and that pace is accelerating. That we have to do, in this congress, and this president have to do what is necessary now to move the process forward and to get this economy back on track.

GIBBS: Robert, Guantanamo follow-up. I'm wondering, there's a controversy right now in Britain, and I'm wondering whether President Obama, or the administration, is planning to release, or allow Britain release some classified documents that are related to the alleged torture of a British resident held at Guantanamo . What can you tell us about that? Whether it has been resolved or not?

GIBBS: I don't have any information on that. But I can do some checking.

QUESTION: Is the president concerned that the Pakistani nuclear scientists (UNINTELLIGIBLE) can be a proliferation risk now he's been released from house arrest? And will he renew the U.S. request for him to be interviewed by U.S. intelligence?

GIBBS: Obviously we've seen the reports of the release, but have not received -- have yet to receive official word from the government. Obviously this president has made clear many times the grave concern that he has about nuclear proliferation. And as we hear from the government about these reports, obviously the president and this government want assurances that Dr. Kahn (ph) is not involved or engaged in any of the activity that resulted in his house arrest earlier.

QUESTION: Robert.

GIBBS: Yes, sir.

QUESTION: You mentioned on Guantanamo earlier I think in response to Jake's question, that the president's main concern was that there be swift justice there. My recollection from the campaign, though, was that his main concern was that it was a fundamentally unfair process. Is that still his concern, that this process was going forward, the military commission were going to be unfair to the accused down there?

GIBBS: No, I think that the process has resulted in a failure to move forward in bringing about that justice. The president also has believed that the detention facility there has not made us safer. In signing the executive order, the president discussed, first, his primary responsibility to the American people, which is to keep them safe. Second, to underscore and understand our values, in keeping this country safe.

And finally, to do all that we can to protect the men and women that protect our freedom each day. He thought the best way to ensure all of those things was through the executive order that set up a process by which detainees would be evaluated and the detention facility at Guantanamo Bay would be closed.

QUESTION: So, his main concern was not that people's rights were being violated?

GIBBS: I think his concern was that the American people weren't seeing the swift justice that they deserved.

QUESTION: Robert, you like to say you like to step back on issues, on the --

GIBBS: Mr. Phelps (ph), thank you for that, or I probably would have stepped back.

(LAUGHTER)

(CROSS TALK)

QUESTION: On the legislation, notwithstanding the president's efforts, he did not attract a single Republican in the House and he's having lots of difficulty getting any Republican support in the Senate. What lesson do you draw from that?

GIBBS: As I've said earlier, that sometimes old habits die hard. That changing the ways that the town works won't happen in the first three weeks of the administration. But I think the lesson the president has always drawn in his career is that we can disagree about ideas, or policies, without being disagreeable. And that the best way to move forward is by working together, across party or ideological differences, to get something done for the American people.

GIBBS: Another lesson that was a fist in the valve approach? Last night, his change in tone was pretty tough.

GIBBS: I think the president's tone denotes the economic crisis that we face. Whether it was unemployment claims yesterday, or unemployment numbers today, or numbers that will come in the future, I think they underscore that -- the real need for us to work together, move the process forward, get something on the president's desk, the help that the American people need will get to them as quickly as possible.

(CROSS TALK)

QUESTION: First of all, thank you so much for letting us know in advance on that e-net (ph) and I hope you'll continue that pattern.

GIBBS: We expect the quality of questions will be directly influenced by the amount of time with which you have to prepare.

QUESTION: Really, really, very, very helpful. What will the format be? Will there be an opening statement? How long will it last? And will the president answer questions from a seating chart the way the last president did?

(LAUGHTER)

GIBBS: As if you don't, April. I don't have exact timing. It's at 8 o'clock. The president will give and deliver an opening statement before taking questions. You're ahead of me on the seating chart. The press advance guys will have more information on that. He will make an opening statement on the recovery plan.

QUESTION: Are you doing it in the East Room, Robert?

GIBBS: Yes, it's in the East Room.

QUESTION: It's Friday, let's ask about the raccoons? Have you found the raccoons?

GIBBS: You know, I should have Bill do this, because he's our chief deputy spokesperson for wildlife.

(LAUGHTER)

Actually, right before we came out of here, Bill got on a phone in my office and asked for -- literally asked for a raccoon update. There are a few that roam in my backyard, so I don't have any particular tips.

No, raccoons that I know of have been caught or disbursed into other places in Washington.

QUESTION: Or a few stray acorns?

GIBBS: Or stimulus votes. Thank you.

QUESTION: Are you going to put out a statement on Ginsberg?

(END LIVE FEED)

KYRA PHILLIPS, CNN ANCHOR, CNN NEWSROOM: All right. That's a first. Robert Gibbs now giving coon updates. That will be interesting to see if that's a recurring question.

Other than that, we're still waiting to get an answer on that stimulus bill, still being debated there on the Senate floor; hopefully a decision by the end of the day. We're following it for you live.

Meanwhile, the numbers are staggering, unprecedented for many of you, and defy even the most pessimistic projections. America is hemorrhaging jobs and the commander in chief says we must act now.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES: We'll continue to get devastating job reports like today's, month after month, year after year.

SEN. HARRY REID, (D) MAJORITY LEADER: America's 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.

(END VIDEO CLIP)

PHILLIPS: We wait, the Senate debates, the economy tanks, the urgency grows. President Obama turns up the heat. But can he bring his economic stimulus out of limbo and into life?

Hello, everyone. I'm Kyra Phillips live at the CNN World Headquarters in Atlanta. You're live in the CNN NEWSROOM.

Not only is the economy not only getting any healthier, President Obama says it's getting sicker faster. Today we learned another 598,000 jobs were cut in January alone; 1.8 million in the past three months. And the unemployment data means plenty of work for the Joint Economic Committee of Congress.

But the real action is taking place in the Senate where the Democrats are trying to agree on enough cuts to a super sized stimulus package to win at least a few Republican votes. Brianna Keilar watching what's being called a mad scramble for cuts and votes.

What's the latest, Brianna, since we last spoke?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: It's one meeting after another. Actually, I think one aide at one point said, what meeting? It's all one big meeting. That's really about right here.

Republicans who are negotiating this bipartisan compromise, or an attempt at a compromise with Democrats on this economic stimulus package have been darting in and out of Senate Democratic Leader Harry Reid's office today. One of those Republicans, Susan Collins, saying earlier today we should have something by the end of the day. We heard Harry Reid as well on the Senate floor earlier today saying he was optimistic.

So that is the expectation. But exactly when is it going to come? We're not sure. There's certainly some difficulties that need to be overcome, especially by Democrats. Because what you have here is Republicans in these negotiations, who basically handed over a proposal to Democratic leaders, saying this is what we want to cut. And one of the things on the chopping block, this really tough for Democrats to swallow, a very bitter pill, is putting education on the chopping block. This is something that's going to be very difficult for them. Obviously this is a priority for them, Kyra. So they're obviously going to be wrangling among themselves to see really what they can get back from this.

PHILLIPS: We'll be checking in with you, of course, waiting for some type of answer. Thank you so much, Brianna.

The unemployment lines are growing longer as well. The stimulus debate growing more heated, as we hear from our Briana Keeler.

Now our chief business correspondent, Ali Velshi, taking it all in.

You've been working this since early this morning. Ali, are you getting any sleep?

Oh, we have no Ali.

All right, we'll try to get him with us. I'll just wait calmly for direction. Where would we like to go?

All right. Guess what, we're working Ali Velshi, we're working Susan Lisovicz. This is what happens in live television, folks. We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Kyra Phillips.

PHILLIPS: Well, our people on the Hill right now reporting a pretty mad scramble of closed-door meetings over the fine print for your bottom line. And our chief business correspondent, Ali Velshi is taking it in for us.

Ali, are we going to get an answer today or not?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: About the stimulus bill?

PHILLIS: Yes.

VELSHI: Wow.

PHILLIPS: Am I asking for too much?

VELSHI: You know, I hear these things, like other people do, that they're going to have a deal and all this sort of thing. I don't know how, because the last I checked there were still four versions of this thing floating around. There was one that the House approved for $819 billion. And then there were three more versions. John McCain is still sticking to the idea that he wants mainly tax cuts and a whole lot less of the spending. There's a Republican bill, and there's one that sort of has both of them. You heard President Obama - or you heard talk that President Obama thinks he's got the votes to get some version of this through, but I don't even know what "it" it is that we're talking about.

Ultimately, Kyra, it does comes down to philosophy whether you think, or whether the Congress and Senators think, there should be more tax cuts or direct spending. Which one is going to have more effect in this economy. And I think this jobs number we saw today really sort of put the pressure on. I mean, with 600,000 jobs almost, 598,000 jobs lost in the month of January, that makes it the fourth worst month since we've been keeping records. And two of those months were right after World War II where sort of the industrial complex that was used to fight the war shut down. So now it's really - we're looking at 1974 and now as the worst months for job losses. This is the only three-month period we've lost as many jobs as we have.

So that puts the pressure on. Stimulus is an important idea, but what's going to get America back to work. That debate, I don't know if it will be done by today. I would not hold my breath that that's going to be the case, Kyra.

PHILLIPS: And then there's this talk that it could create three to four million new jobs - new jobs and also saving jobs. Yet, we know that depending on where that money is going to go, it could be years until you actually see those new jobs that can be created.

VELSHI: Right. So let's - let's think about this. Between the time the recession started and now, 14 months, we have lost 3.6 million jobs. Now we've lost. We're down 3.6 million. In a healthy economy, you should actually grow about 100,000 to 150,000 jobs per month. So we should be up close to two million. So we're already sort of five million away from the point we should have been in the first place. So at this point, even the growing or saving three to four million jobs that the Obama Administration wants to do is not going to make up for the loss that we've got.

That said, on the stimulus side of things, there are jobs, you've heard the expression, shovel ready. There are jobs across the country, projects, infrastructure building projects that are ready to go now. We want to dispel the idea that it will be 18 months before that starts. There are jobs that can start, I'm told, within a month to three months. Some of it will take up to 18 months to spend, but the government says about two-thirds will be spent in the first 18 months. An independent report that was shown in front of the Congressional Budget Office says about two-thirds of it. The government says three-quarters; the report says two-thirds. Some of it will get spent fairly quickly if it goes through.

PHILLIPS: Ali Velshi, good to see you.

VELSHI: OK.

PHILLIPS: All right, closer look now at how stocks are reacting to all of that? Let's go to Susan Lisovicz, she's in the New York Stock Exchange.

What are you seeing, Susan?

SUSAN LISOVICZ, CNN CORRESPONDENT: I'm seeing a huge rally that's gaining strength as we get - we're 90 minutes away from the closing bell, Kyra. Investors are taking the jobless reports in stride because as terrible as those numbers are, the rate of decline has basically remained steady over the last few months. And since the stock market is a forward-looking creature, investors are looking forward to shock and awe for the ailing U.S. economy in the form of stimulus.

Also, investors are looking forward to Secretary of the Treasury Geithner is going to say about rescuing the nation's banks on Monday. And financial stocks are leading the charge. Bank of America shares right now are up nearly 28 percent after an influential analyst said that fears that the bank could fail make no sense whatsoever.

Check it out for yourself. Right now, the blue chips are up 224 points or two and three-quarters percent. The NASDAQ and the S&P 500 each up at least two and a half percent as well, Kyra.

PHILLIPS: Well, and the sheer number of job losses isn't the only milestone we're talking about, though, right?

LIZOVICZ: We are seeing profound changes in the nation's work force, Kyra. And listen up on this one: Women may be on the brink of surpassing men in the nation's work force. According to "The New York Times," this would be the first time in American history that women have accounted for the majority of the country's work force. Much of this has to do with the fact that more than 80 percent of the job cuts have fallen upon men. That's because a lot of them hold jobs in the industries that have taken the biggest hits. While women typically work in jobs, or see greater numbers in the "recession-proof" like teaching and healthcare.

In economic downturns, the percentage of families supported by women does tend to rise slightly. However, women have a harder time serving as the main household provider because they work fewer hours and more likely to be in part-time jobs without health or unemployment insurance.

But Kyra, I'm reminded of that famous, "Rosy the Riveter" with her arm flexed - "We can do it!"

PHILLIPS: Exactly.

LISOVICZ: We can do it!

PHILLIPS: Well, think about during the war when the men had to go off to war, those women stepped in and they were working on those airplanes.

LISOVICZ: They were manufacturing.

PHILLIPS: That's right. Making sure all those flyers could take to the skies.

Well, also too, men historically have made a lot more money and those big salaries are getting slashed left and right.

LISOVICZ: You make an excellent point, Kyra.

PHILLIPS: Susan, I'll see you coming up in just a little bit as we follow the developments there on Wall Street.

And also, the Senate trying to figure out what to do about the stimulus bill. We're still waiting for a decision. We'll bring it to you as soon as it happens.

We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Well, as President Obama looks ahead to the future, but he's also looking back on a tragic past. Just about an hour from now, he's meeting with families of 9/11 victims and the 17 sailors killed in the U.S.S. Cole bombing. Many of them see eye to eye with the president when it comes to the handling terror suspects and his decision to close Guantanamo Bay.

Our White House correspondent, Suzanne Malveaux, actually talked to one of them - Suzanne? SUZANNE MALVEAUX, CNN CORRESPONDENT (voice-over): Well, hey, Kyra.

As you know, it was one of the decisions he made his first days in office: to close Guantanamo Bay within a year or so. I got a chance to talk with Jim Riches. He is from New York. His son was killed in the 9/11 attacks. And he actually won a lottery to go to see for himself, to see the detention facility as well as the trial. And he says that he disagrees with President Obama and he's going to tell him so.

(BEGIN VIDEO CLIP)

JIMMY RICHES, DEPUTY CHIEF, FDNY (RET.): Well, I'd like to tell him, you know, I was down there picking up the body parts and I saw the results of what these terrorists did. And I sat down in Guantanamo, and they sat up there and bragged that they were the ones that did it. That they killed my son. That they killed all the others. They were proud of it. They called for Jihad. And you know, we can't go backwards, but we'd like to go forward and see the stress that has been delayed for so long. It's seven years. We'd like to see how he's going to project us forward and bring these men to justice.

The issue is what are we going to do with these GITMO detainees who are all mostly very violent, evil men. And I think there's mountains of evidence against them and I just don't feel like going back. It's up to them if they want to close GITMO and the detention center, but we want to know what plan they're coming up with in the 120 days and what will give us justice, because we're waiting eight years and nothing's happened. And you know, I'd like to see - see these men who are up there bragging that they brought America to their knees, you know, suffer the fate that they deserve.

We're glad that he's meeting with us. We're glad, and we want our voices to be heard. And that's all anybody can ask of government. We think that's just the way it should be done. And hopefully, he'll hear our message and, you know, we'll move on and we'll have a fair and speedy trial for them, and America will stay safe and strong.

(END VIDEO CLIP)

MALVEAUX: And Kyra, Riches says that obviously he's grateful for this meeting with the president, but he still wants some answers. He's not satisfied. A White House aide said that is exactly why the president, he will sit down with these families and try to explain his thinking here and obviously listen to his concerns - Kyra.

PHILLIPS: And we'll follow it.

Suzanne Malveaux, thanks so much.

So, just how safe are school lunches? A lot of parents may be asking that question after a troubling new turn in the nationwide salmonella outbreak. The Agricultural Department said it shipped possibly contaminated peanut butter and other foods to schools in at least three states in 2007. Shipments came from the Georgia peanut processing plant blamed for the outbreak and went to schools in California, Minnesota and Idaho. None of the states reported any illnesses. At least eight deaths are linked to that outbreak and hundreds of people have been sickened.

Supreme Court Justice Ruth Bader Ginsburg remains in a New York hospital today after having surgery for pancreatic cancer. Court sources say it went well and the doctors found the cancer early. The 75-year-old justice is expected to stay in the hospital about a week. Ginsburg was appointed to the highest court in the land in 1993. Ten years ago, she was treated for colorectal cancer.

We'll take a quick break. More from the CNN NEWSROOM straight ahead.

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PHILLIPS: After a bone-chilling week, it feels like a heat wave in parts of the south and the east. Chad Myers is at the CNN weather center.

(WEATHER REPORT)

PHILLIPS: Federal judge could toss some key prosecution evidence from the upcoming trial of baseball slugger Barry Bonds. The judge says that three positive drug tests linked to bond may not be admissible because the only person who can link the test to Bonds is refusing to testify. Bonds is accused of lying when he denied under oath that he knowingly took performance enhancing drugs. His trial is scheduled to start March second.

Gold medal swimmer Michael Phelps has more to say about the photo that appears to show he's smoking pot. Our affiliate WBAL caught up with him and asked the question on everyone's mind.

(BEGIN VIDEO CLIP)

UNIDENTIFIED WBAL REPORTER: What were you thinking?

MICHAEL PHELPS, OLYMPIC SWIMMER: Obviously not much. You know, like I said, it was a bad judgment. And I can learn from it. And try to make my life better than it has been in the past. Like I said, I've made mistakes. I have to live with every mistake that I've learned.

(END VIDEO CLIP)

PHILLIPS: Phelps isn't out of the woods yet. USA Swimming has suspended him for three months and Kellogg's Cereal says it will not renew Phelps endorsement contract.

Well remember Howard Beale in "Network"? Mad as hell and not going to take it anymore? Well, here's one desk-pounding congressman who reminds us of him. Boy, is he mad. So mad that we can't take our eyes off him.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARAK OBAMA, PRESIDENT OF THE UNITED STATE: Somewhere in America, a small business has shut its doors. Somewhere in America, a family said good-bye to their home. Somewhere in America, a young parent has lost their livelihood and they don't know what's going to take its place. These Americans are counting on us, all of us in Washington. We have to remember that we're here to work for them. And if we drag our feet and fail to act, this crisis could turn into a catastrophe.

(END VIDEO CLIP)

PHILLIPS: President Obama using this morning's dismal jobless news to sell lawmakers on an economic rescue plan that's now approaching a trillion dollars.

Well he looks like Don Rickles and he's a bit abrasive, but he's not joking. You've got to hear and see New York Congressman Gary Ackerman rip the SEC officials over the Bernie Madoff investment scandal. Why did they basically ignore a whistleblower and why won't they answer certain questions? It's great theater. Check it out.

(BEGIN VIDEO CLIP)

REP. GARY ACKERMAN (D), NEW YORK: You have single handedly diffused the American public of any sense of confidence in our financial markets if you are the watchdog. You have totally and thoroughly failed in your mission.

Don't you get it?

And now other people are investigating what you should have found out, and you're hiding behind, well, maybe we can't talk because someone else is looking at it. Well, you forfeited your right to investigate by not doing it. Certainly, not doing it properly or adequately. And now you're trying to tell us that because other people are looking at it, you're not going to tell us what's going on? Like hell you won't.

What happened here?

That's a question. Do we start with hear no evil, see no evil or do no evil? Take your pick.

(END VIDEO CLIP)

PHILLIPS: The new head of the SEC said that today she's overhauling certain practices at the commission. Among Chairman Mary Shapiro's pledges, getting rid of red tape so investigators can better track down the bad guys.

Regardless of whose stimulus plan you support, something's got to happen. We've heard a lot of facts and figures, but this recession is personal, very personal. Check out what one man from Maine is going through right now.

Here's his story through the eyes of our CNN photographer Bob Crowley.

(BEGIN VIDEOTAPE)

CORY CLAPSADDLE: It's a nice community, nice place to live.

ON SCREEN: "The towns of Jay and Livermore Falls are located in central Maine."

CLAPSADDLE: Everybody knows everybody.

The biggest part of the economy in these two towns is the paper mills. Livermore Falls and Jay was built on paper. I wanted to work in the mill. I wanted to follow my father's footsteps.

You're looking at the very back side of Wausau Paper, the oldest mill. That paint machine area, that was my work area.

ON SCREEN: "In December of 2008 Wasau Paper laid off nearly 150 workers."

CLAPSADDLE: We all got come complacent in our jobs. We were all comfortable coming to the same place every day.

ON SCREEN: "Cory Clapsaddle was one of them"

CLAPSADDLE: I liked what I did. I liked the guys I worked with. I liked the jobs I did. I kind of miss it all.

Picked it up at a used game shop. Something to pass some time by. I'd rather be working than playing video games, but that's not quite the case.

It's a bad economic time. There's nothing out there. Not very often you find a local job less than a mile from home for the amount of pay we was getting.

There's the boys right there. What's up, pal?

They kind of like having dad around.

You got homework?

Don't get me wrong, I love being here with my family, but there ain't a lot of money coming in. It's tough. It's tough.

We're pinching pennies now. Whether it's cutting down on phone, cutting down on electricity usage. Well, I burn wood in the wintertime. It helps alleviate the usage of heating oil. Money is really tight right now, and we have to make savings any way we can.

I don't believe there's going to be a mill in town left when my boys are out of school. We're heading to the Wilton Career Center.

ON SCREEN: Cory meets with a career counselor. Mill employees were approved for a trade agreement (TAA) from the federal government.

CLAPSADDLE: Hi, how are you? Nice to meet you.

CAREER COUNSELLOR: Let's see if we have your TAA papers.

CLAPSADDLE: So, that allows us to get some sort of school, trade. Get out there and get a job.

CAREER COUNSELLOR: And that's also for your unemployment too. You have to be in attendance.

ON SCREEN: The TAA will pay for Cory to attend a trade school for heating and air conditioning.

CLAPSADDLE: Thank you very much. Appreciate your help.

With the economy and lack of jobs, you know, there's people out there losing their homes left and right.

I was the sole bread winner for this family. I think the biggest factor, the one that stressed me out the most, I didn't want to lose my family's home. There's no way I could have accepted family, my family.

The people that are out there that have lost their jobs, they feel like they failed. My heart's with them.

Just flat-out stinks. Pretty sad that you're not going back. The job you called home. It really stinks.

(END VIDEOTAPE)

PHILLIPS: Thanks to our photographer, Bob Crowley.

Have a great weekend, everyone. I'll see you back here on Monday. Rick Sanchez takes it from here.