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Dealing With the Stimulus; President Obama's First Primetime News Conference; Remaking the GOP; Looking for Work; Sports Illustrated: Alex Rodriguez Tested Positive For Steroid Use in 2003; Living on Less: Adjusting Your Lifestyle
Aired February 07, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Senate negotiators say they have a deal. The vote still to come, however, and a lot of Republicans say they are not feeling it.
MELISSA LONG, CNN ANCHOR: As for the new head of the Republican Party, Michael Steele, he says he wants to see some hip-hop Republicans.
Surprised by that clip when you read it. What does that mean for the future of the Grand Old Party?
From the CNN Center on this Saturday morning, this is CNN NEWSROOM. It's Saturday, February 7th.
Good morning. I'm Melissa Long, in today for Betty.
HOLMES: And hello to you all. I'm T.J. Holmes. It's 10:00 a.m. here in Atlanta, Georgia, 7:00 a.m. out in San Francisco.
Let's get you caught up.
And we've been talking a lot about and will continue to talk a lot about that compromise in the Senate. Several senators, they have put their heads together in an effort to get a deal done on that massive economic stimulus bill. But as with every compromise, not everybody's happy.
CNN Congressional Correspondent Brianna Keilar is on Capitol Hill for us this morning. Elaine Quijano at the White House.
Brianna, I will start with you. Of course not everybody's going to be happy. So who's the most upset this morning, maybe I should day?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: The vast majority of Republicans, for sure, T.J. They haven't signed on to this, but the expectation here is that this is going to go forward in a vote as early as Tuesday, that really this deal came to be last night, and this vote that could come as early as Tuesday is really a foregone conclusion as far as pushing this through the Senate.
This is a compromise that came to be because of days of negotiations from a group of centrist senators, Democrats and Republicans. More Democrats than Republicans. You're looking at about a handful of Republicans. But what they did essentially was give this massive economic stimulus package roughly a $100 billion haircut.
So let's take a look at some of the things that stayed in this stimulus. This is according to a list compiled last night by staffers involved in these negotiations.
Some of the things that stayed, $14 billion in Pell Grants. These were untouched. This was what was in the House bill, this $14 billion.
And then you have $3.5 billion to make federal buildings more energy efficient; $7.5 billion for education grants. Those last two things, they were cut down to half the size of what was in the House bill, but you can see, obviously, they're still funded quite a bit.
And then let's talk about some of the things that were cut in their entirety.
There was $25 billion for a general fund for education. And some critics said that this money was a slush fund, that it could have gone to things besides education, and so they opposed it. There was also $16 billion for school construction, and then another smaller thing, $122 million for Coast Guard Cutters. These are like ice-breaking vehicles, and some people said, some critics said, that was pork.
But those other two things, those education things that got cut, big education priorities for Democrats. Definitely a difficult pill to swallow, but they had to do it to get a few of these Republicans on board and get past that 60-vote threshold -- T.J.
HOLMES: And just a few. And just barely -- an expensive haircut, as you called it, a $100 billion haircut.
Brianna Keilar, I know you have been there since early morning, so you're still coming up with different ways to describe this, but we appreciate it. We'll talk to you again soon, Brianna.
KEILAR: All right.
LONG: President Obama is preparing for his first primetime news conference Monday night. Of course we'll bring it live to you here on CNN, and also online, CNN.com/live. The economy and, more specifically, the stimulus deal, will be front and center. So of course the White House watching closely today the Senate action.
CNN's Elaine Quijano join us now live from the White House this morning.
Good morning, Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good morning to you, Melissa.
President Obama tried to ratchet up the pressure on lawmakers once more in his weekly radio and Internet address, saying that the time for lawmakers to act is now. Let's take a listen.
(BEGIN AUDIO CLIP)
BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: From the beginning, this recovery plan has had at its core a simple idea: let's put Americans to work doing the work America needs done. It will save or create more than three million jobs over the next two years, all across the country, 16,000 in Maine, nearly 80,000 in Indiana. Almost all of them in the private sector, and all of them jobs that help us recover today and prosper tomorrow.
(END AUDIO CLIP)
QUIJANO: And President Obama warned that if Congress doesn't take action now, the economic crisis could turn into a national catastrophe. But of course Republicans continue to argue that there's too much wasteful spending contained within this bill. They believe that more tax cuts are the best way to grow the economy and to help those families that are continuing to struggle to pay their bills.
Here is the chairman of the Republican National Committee, Michael Steele.
And apparently we don't have that sound bite, but what Michael Steele does say is that the fastest way, the Republicans believe, to help those families is by letting those families keep more of the money that they earn. Individual empowerment is what Michael Steele said in the Republican address.
Now, all of this is happening, as you know, Melissa, against the backdrop of more bad economic news. We learned of course on Friday that the unemployment rate is now a whopping 7.6 percent. The president said that any further delay on Capitol Hill would be inexcusable and irresponsible. He of course wants to have a bill on his desk, ready to sign by Presidents Day, February 16 -- Melissa.
LONG: And Elaine, we know there's a lot of skepticism on the Hill, on Capitol Hill, about the plan. We know the president is speaking to the American public at 8:00 p.m. on Monday. He's also really trying to sell the plan so it can pass next week.
QUIJANO: That's right. And he's going to be actually hitting the road for a couple of town hall meetings. He's going to be visiting a couple of communities that have been particularly hard hit in this economic downturn -- Elkhart, Indiana, where the unemployment is now, if you can imagine this, more than 15 percent, and Fort Myers, Florida, where the unemployment rate is now 10 percent.
Both those communities have seen their unemployment figures skyrocket, really, in just the last year alone. So President Obama is going to heading to those communities, holding those town hall meetings, and then he'll have a primetime news conference. It will be 8:00 p.m. Monday. Again, his first primetime news conference taking place Monday -- Melissa.
LONG: Elaine Quijano at the White House. Elaine, thanks so much.
So what's in the deal, this tentative deal? Let's break it down for you.
It includes the following: $87 billion for state Medicaid programs; more than $76 billion for education; about $43 billion for roads and bridges, infrastructure; more than $6 billion for water and sewer system; $5 billion for public housing; and then not shown right there, more than $3 billion for new job training as well.
The economy expected to be a big part of President Barack Obama's first primetime news conference. Again, just to stress again, 8:00 p.m. Eastern Time on Monday. You can watch it here on CNN television and online as well. Go to CNN.com/live.
HOLMES: Well, we've got three more bank failures to tell you about that will bring the total to nine that we've seen this year. Here's the list: Firstbank Financial Services near Atlanta has shut down. Also, Alliance Bank and County Bank of Merced, California. Branches of those banks will reopen under new names and new management on Monday. Customers of the failed banks get automatically transferred to new banks.
Take you to Australia now, where 14 people have been killed and 30,000 acres have been scorched in wildfires that are happening there. A record heat wave and gusty winds are what's fanning these things across the central part of the country. Again, as I mentioned, we know of 14 deaths so far. Dozens of homes have been destroyed as well. Officials are asking people in heavily populated areas to stay inside within the windows closed because of bad air quality caused by ash from those fires.
(WEATHER REPORT)
HOLMES: Well, it's come down to this -- keeping their business alive or giving up something else big for one couple. We'll hear their story.
LONG: Yes.
The man who runs the Republican Party now wants to take his organization in an entirely new direction. He wants hip-hop Republicans.
HOLMES: What do you mean?
LONG: What? Hip-hop Republicans?
HOLMES: Who knew, Melissa? Who knew?
LONG: We'll explain coming up.
(COMMERCIAL BREAK)
LONG: A live look at the Capitol this morning, coming up on 10:15 in Washington, D.C., mid-30s right now. For the Senate, they will reconvene an hour and 45 minutes from now, at noon. It's a rare Saturday session.
And of course we know they're resuming debate on the massive economic stimulus package. That's after a coalition of Democrats and just a few Republicans, just a handful, reached a tentative agreement late yesterday on a compromised plan. Again, this is in the Senate.
Vice President Joe Biden says it's time to mend relations between the U.S. and Russia.
(BEGIN VIDEO CLIP)
JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: The last few years have seen a dangerous drift in relations between Russia and the members of our alliance. It's time -- to paraphrase President Obama, it's time to press the reset button.
(END VIDEO CLIP)
LONG: The vice president is traveling today in Germany, attending an international security conference that's going on in Munich. It is his first trip overseas as vice president. He told world leaders NATO and Russia should cooperate to defeat the Taliban in Afghanistan, and also defeat al Qaeda.
HOLMES: The new chairman of the Republican National Committee says he wants to broaden the appeal of the GOP. Republicans have seen their power slip in Congress and, of course, in the White House. New RNC chairman Michael Steele says he wants now to reshape the party.
(BEGIN VIDEO CLIP)
MICHAEL STEELE, RNC CHAIRMAN: I want hip-hop Republicans. I want Frank Sinatra Republicans. That's how it is out there. That's the reality that we have to face. And my job is to do everything in my power to make sure that we not only confront that reality in an honest way, but then engage the people in this country in a way that they want to be part of what we're doing.
(END VIDEO CLIP)
HOLMES: A hip-hop Republican. Let me show you what one looks like.
Lenny McAllister, he's a member of the Republicans for Black Empowerment, and a member of the North Carolina Young Republicans.
Good to have you on. We did this last year around Republican National Committee time. Explain to people right quick -- you don't have to be black to be a hip-hop Republican. What is a hip-hop Republican?
LENNY MCALLISTER, REPUBLICANS FOR BLACK EMPOWERMENT: A hip-hop Republican -- good morning, T.J. A hip-hop Republican is a Republican in the urban environment that understands that we have to apply more conservative principles and free market values to how we address the issues that we're facing in urban America today.
We're at a crisis situation in America, and we're going to have to take a different solution to what we have been doing over the last 40 to 50 years if we're going to stem the tide of what we're seeing, and particularly in black America, especially with Black History Month, President Obama in place, and now Michael Steele heading the opposing party.
HOLMES: Yes. That was going to be my next question for you.
The GOP -- the RNC chair is a black man. My question is, what has the world come to?
Now, I say that to be a little tongue in cheek there, but he was sitting in a room, quite frankly, full of white people, and he was up on stage now as the head of the RNC. This is a party that's not really known for having a lot of diversity, and certainly when it comes to African-Americans.
So what has the world come to?
MCALLISTER: Well, number one, the Republican Party realizes if they're going to be relevant in the 21st century, they're going to have to be able to relate to all the issues in America. They're not going to be able to win the White House giving up anywhere from five to 15 states based on urban populations.
They also have to realize that the voting demographic is changing. America is becoming more diverse, and some of the strategies, including the southern strategy, that they have had in place over the last 40 years is now null and void.
If they're going to be relevant and they're going to be involved in leadership in America, they're going to have to change. And it's going to be more than just having a face up there, Michael Steele. It's going to be somebody that can speak the language, that can relate to urban America, and that can have the conversations that push...
HOLMES: But Lenny, is a part of that what I'm hearing that -- I understand a lot of people give him credit for his background and being that messenger, but how much of this did you think had to do with simply the fact that we want a black man and a new face? We do not want to see another middle-aged white man out there trying to send this new message?
MCALLISTER: It's less about race and more about method. If you look at how President Obama won the White House, it wasn't because he was an African-American. It's because of how he used the Internet, how he used the media, how he articulated his message, and how he was able to relate to America.
Michael Steele has those gifts better than any of the other candidate that ran for the RNC chair over the last several weeks or so. Subsequently, he won the election because the GOP understands that if they're going to be relevant, we need to utilize those traits just as much as the Democrats do. HOLMES: Now, how will -- at the same point, I hate to keep harping on, but this was a big deal, the first black RNC chair ever of the RNC. And something else I brought up to you once before, when you were at the Republican Convention, I asked you if it was kind of lonely there. Not a lot of blacks in the RNC, not a lot of black support for George W. Bush over the past couple of elections.
So, what does this mean for the party now? How do you think it will be viewed differently by African-Americans now that the person out there on the Sunday morning talk shows that will be around giving the message looks like them?
MCALLISTER: Now the trailblazers, the people that are going to be chopping down the trees and creating a new path for political diversity, now have one heck of an ax in their hand. You're no longer out going down and trying to cut down these trees with butter knives.
You're out there, able to trail-blaze (ph), go through the hard conversations, but be able to make tangible results at a lot faster pace than we were previously. I think this is going to be a great thing for America, especially as we try to pull ourselves out of economic crisis and social crisis that we're finding in the first part of this century.
HOLMES: All right, Lenny. We're not done with you just yet. But man, we're going to take a commercial break here, and we're going to come back and talk about the RNC having a black leader. Does this change the way that the GOP can now criticize a black president? That's going to be discussed right after the break.
Lenny McAllister, a hip-hop Republican, coming back with us. Stay here.
(COMMERCIAL BREAK)
LONG: Good morning. Good morning. 10:20 in the morning in Washington, D.C.
A live look at the Capitol this morning. Of course, the Senate due to convene about an hour and 40 minutes from now, resuming debate on the massive economic stimulus package after a coalition of Democrats and just a handful of Republicans reached a tentative agreement on a compromise late on Friday. Again, a rare Saturday session for the Senate.
We'll follow it throughout the day for you, here on CNN.
HOLMES: And we do want to go back to our discussion with Lenny McAllister, a hip-hop Republican, also a member of the North Carolina Young Republicans, talking about Michael Steele, the first black chair of the RNC.
This, of course, as we were talking about, it's going to kind of change things, and perception, and hope to change the message a little bit as well. What have you seen so far? I know he hasn't been in place long, but what is the reaction you've seen maybe from a lot of young people, maybe young Republicans? Maybe young Independents are maybe taking another look at the GOP?
MCALLISTER: They are so far. Young Republicans are very, very excited. People that have been looking for change within the Republican Party are very excited about the leadership of Michael Steele. They supported his candidacy and they were hoping that he would win the chair...
HOLMES: Now, you're saying young Republicans there. Have you seen any Independents, anybody outside the Republican Party maybe giving it another look yet?
MCALLISTER: Not yet. I think part of what they see it as is being just a tactical move to have a black man opposing a black man. And unfortunately that minimizes what President Obama did over the course of 2008, and it minimizes Michael Steele's track to get into this post in his career.
The bottom line is they both bring similar traits to the table. They're both articulate attorneys, they both went through what would be considered a non-typical lifestyle and upbringing for politicians. So if they look less at race and more at background, I think they'll be able to give the Republican Party more of a chance having him as the spokesman now.
HOLMES: Now, we all know he is accomplished and has a heck of a background. But as you say, that perception possibly is there. But at the same time is there, Lenny, in your opinion, any truth to it, that the GOP felt they needed this man, maybe not everybody, but some in that room right there felt they needed this person, a black man, to oppose a black man?
MCALLISTER: I disagree with that. I think that they may think it's easier, but the truth of the matter is, they need a representative of the Republican Party and leadership that can speak to these cameras, that can connect with America, can articulate the message.
There's a reason people such as Mike Huckabee do well in the media, because he does that well as well. You look at Sarah Palin, she didn't speak well in the media, but the initial image of what a conservative should be, she was media friendly when it came to her image.
Michael Steele brings the image and the substance, and now he's in a leadership position for the RNC. These are the type of traits that we need as Republicans in order to be relevant and have the type of dialogues we need to move America forward, while we're working with Democrats, to get us where we need to be.
HOLMES: And about those dialogues, you are now changing the messenger -- the GOP is, changing the messenger -- but how will the message change? I remember talking to one leader, one black leader who was saying, "You know what? Yes, Barack Obama, we're not voting for him just because he's a black man. He's speaking to our issues. If Barack Obama, that same man, was a Republican, black people wouldn't be supporting him." So how is the message going to change and appeal more to a more broader audience, a more diverse audience, including African-American?
MCALLISTER: Let me give you an example. If you look at competition of choice when it comes to schools, to have an African- American that went through Prince George's County growing up, can be able to relate to what a failing school system is like, and why it's important to have competition of choice for disadvantaged children.
That message comes across a lot better than it does than from somebody that may have grown up wealthy, that projects, even if it's not true, projects the image of being an elite, typical Republican, older, white, and non-connected to America. By having Michael Steele in place to do that, it brings a powerful, powerful tool that the Republicans have not had in a long time, if not ever.
HOLMES: All right. The last one I'm going to get you out here on and maybe put you on the spot a little bit.
We talked about this, of course, when you were at the Republican National Convention, and talked about kind of being torn between certainly your political beliefs and not being in step with Barack Obama, versus the fact that this was history, that this was the first black man, you being a black man and all your history and your ancestors, and kind of being torn with which way to go. Now, I will assume you still voted Republican.
MCALLISTER: I did.
HOLMES: OK. Then you did.
Tell me what it was like, then, in that booth. Did you ever have a hesitation and think for a moment as you were looking at those two names about that history and about Barack Obama and about what it meant going forward?
MCALLISTER: You know, the bottom line is you have to vote on principles and you have to acknowledge history and support history. I supported Barack Obama at the inauguration, he was our president there. But I can tell you, T.J., when I saw the first couple of executive orders, the one that talked about funding abortion services overseas, while we're in a crisis, an economic crisis right here, that was an example of why I did not support President Obama.
These are the type of things that I feel we are now, especially with Michael Steele in place, we can talk about issues. And black America in particular is going to have to get to a point in time where they decide, do they love their community more than they hate Republicans?
If they love their community more, we could have dialogues from both sides of the aisle now with two black men heading the Democratic Party in the White House and the Republican Party, the chair of the RNC, and talk about issues that will make America, and particularly black America, better because we all are in a crisis mode right now. HOLMES: Lenny, always good to see you. Really. Glad we could get you back on. And we're going to have you on more often. I hope you'd be willing to come on with us on Saturday and Sunday mornings and lend that voice.
So good to see you as always, my man.
MCALLISTER: T.J., thanks for having me.
HOLMES: All right. Take care.
LONG: It seems every day we're talking about massive job losses.
HOLMES: Yes.
LONG: And the numbers are staggering. But it's, of course, not numbers. It's families, it's livelihoods that are being lost.
HOLMES: It's hard to get caught up in those numbers sometimes...
LONG: Yes.
HOLMES: ... but there's a family behind every single one of those.
LONG: Absolutely. And we're going to talk about that this hour, how to cope with unexpected unemployment.
Plus, Josh Levs is taking a look at a way you can actually find work.
HOLMES: Also, what about those who still do have their jobs, but they've been on edge right now worried about it? Small business owners honing their survival skills in this tough economy. Their survival stories straight ahead.
(COMMERCIAL BREAK)
LONG: Good morning. 10:30 in the morning in Washington, D.C. A rare Saturday workday for our senators.
You're looking at a live picture right now, of course, of the Capitol. The Senate reconvenes once again at noon. They will be debating a huge economic stimulus package. A tentative agreement on a compromise plan was reached late on Friday.
HOLMES: Well, peanut products sent to schools in three states may have been contaminated with salmonella. The U.S. Agriculture Department says between '07 and the end of June of '08, the Peanut Corporation of America shipped potentially tainted peanut butter and roasted peanuts to California, Idaho, as well as Minnesota.
Well, as Washington goes back and forth on that stimulus package, America's mayors, they're on the front lines of the economic crisis. This week, 20 mayors from across the country took their message to Washington. They met with senior White House officials. They're stressing that they're struggling to hold their cities together.
Last hour, I asked three of them what they think of the proposed economic recovery plan.
Listen.
(BEGIN VIDEO CLIP)
MAYOR SHIRLEY FRANKLIN (D), ATLANTA: What I have seen in the House version is a bill that I think we that need to support, and it seems as if on the Senate side, that they have come close to the same decision. So investment in infrastructure, energy and education, and also looking at the tax benefits that would affect millions of Americans.
HOLMES: And Mayor Cicilline, do you agree with that? You know, it's getting better, if you will, but do you have certainly a different perspective than a senator would have or someone in the House would have in that you need something and you need it right now? You just want them to get something done?
MAYOR DAVID CICILLINE (D), PROVIDENCE, RHODE ISLAND: Well, we want them to do it right. But, of course, I think all the mayors would say the same thing, that the first priority is to create jobs, to get Americans back to work again, and to stimulate the economy, to make investments in infrastructure that not only gets people back to work, but lay the foundation for future economic growth. That's what I think the president's plan does.
I think what we know, as mayors, we see this very personally. We know the names of individuals who have lost their jobs, we see them in our cities. We know the names of people who have lost their homes.
So it's much more personal to mayors. We see it and live with it every single day. And so we're in Washington saying, support the president's plan, get Americans back to work again. Make the right investments in infrastructure to rebuild our economy so we can compete in the global economy in the 21st century.
HOLMES: Well, Mayor, Plusquellic, Mayor Villaraigosa out in L.A., he had a comment saying that the bickering needed to stop. Do you see this in what we have been watching up in Washington, D.C., as bickering? Do you see this as, I guess, a lot of -- no Republican support here?
What is your problem with the debate you have seen so far, and what problems might you see with this particular bill?
MAYOR DONALD PLUSQUELLIC (D), AKRON, OHIO: Well, I think you learn early on as a public official that there's never a perfect plan. I don't care what size community, what the issue is, you can debate, talk, discuss on and on and on, argue, but there never will be a perfect plan. If we wait for that, tens of thousands, maybe millions, of more people will be out of work before we take action.
(END VIDEO CLIP) LONG: Now, if lawmakers need any more motivation to pass a stimulus package, Friday's bleak jobs numbers could do the trick. Last month alone, the U.S. lost almost 600,000 jobs. That's the biggest loss since 1974.
Those numbers bumped the unemployment rate to 7.6 percent. That is the highest rate in more than 16 years.
So just who is now looking for work, and where can they actually find it in this economy?
Josh Levs now breaks down the numbers for you.
(BEGIN VIDEOTAPE)
JOSH LEVS, CNN CORRESPONDENT: OK, so you've heard the big picture. I want to give you some key statistics that the government has just released.
Start off with this. The number of unemployed people in America now, 11.6 million. That's when you include the number of people who are not collecting unemployment benefits, and that figure is up 4.1 million just over the past year. It's a huge jump.
Now I want to show you the difference between men and women on this list. It's an interesting breakdown.
Look, for men, 7.6 percent unemployment. But for women, it's at 6.2 percent.
And in fact, one thing you might not have heard is there are actually a couple of fields that gained jobs in January, health care and also private education. Now, those are two sectors in which there are a lot of jobs for women. One of the worst hit sectors is one that favors men, and that's construction.
And one more thing I want to show you here that's very interesting in the government's latest report, and that is a breakdown by race. And you'll see some maybe surprising statistics here. Whites 6.9 percent unemployment. But for blacks, 12.6 percent. Hispanics in America, unemployment, 9.7 percent. Asians 6.2 percent.
And you can get a lot more information about all of this right here at CNNMoney.com.
Back to you.
(END VIDEOTAPE)
HOLMES: All right. Well, some are blaming the financial sector for getting us into this financial mess, but now a lot of those workers, they're looking for jobs too.
As CNN's Mary Snow explains, they might want to be ready to compromise.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): Eric Bell doesn't expect much sympathy.
ERIC BELL, FMR. FINANCIAL SERVICES MANAGER: People all say, you know, poo-poo on him, he was making $100,000. I was making $100,000. You know, I worked hard to get to that $100,000. And I'm going to work hard to get it back up there.
UNIDENTIFIED MALE: I was earning approximately $125,000 a year.
SNOW: Ed Wright (ph) and his wife Lea (ph) traded this West Hollywood apartment for a 35-year-old Airstream trailer they found on Craigslist after he lost his job at an insurance brokerage.
UNIDENTIFIED FEMALE: We went from, like, you know, 1,500 square feet to about 300 square feet.
UNIDENTIFIED MALE: If that.
UNIDENTIFIED FEMALE: If that.
SNOW: They get $1,800 a month in unemployment benefits and live on his parents' farm in Oregon.
UNIDENTIFIED MALE: One minute you're driving down Wilshire Boulevard, the next we're cleaning up after goats and horses.
SNOW: But change can also be for the better. Eric Bell found more time to play with his 5-year-old son after he lost his job last May. He posted a story on CNN's iReport as part of his networking strategy, which he says has worked much better than the hundreds of resumes he's sent out.
BELL: You see this written all the time, you've got to network. So I changed by strategy and my focus for this job search, this career exploration period in my life, to networking.
SNOW: Eric's networking has paid off. He stopped collecting unemployment checks of $900 a month last week when he got a temporary contract position with a health care firm.
ANTHONY SINGH, FMR. FINANCIAL ANALYST: Hey, Mark (ph). How is it going?
SNOW: Anthony Singh has also sent out several hundred resumes in the past year since he lost his six-figure job at Lehman Brothers. He's been in banking most of his life, but now, as he's collecting unemployment checks of $1,600 a month, he's open to a new field.
SINGH: I'd be willing to change probably to health care, for example, or pharmaceutical or even agricultural industries.
SNOW: And Anthony Singh, like many people, says he's willing to uproot his life in New York and move to wherever he can find a job.
Mary Snow, CNN, New York.
(END VIDEOTAPE)
HOLMES: Well, stay with us. Coming up after the break, we have a breaking news story from the world of sports.
This is about another in the steroid scandal. I know you might be tired of hearing another steroid case, this and that. But this one involves one that many believe is the best player currently playing in the game.
Stay with us after the break.
(COMMERCIAL BREAK)
LONG: Good morning once again. 10:41 in Washington, D.C..
A live picture of the Capitol this morning, warming up to the mid-50s today. And that's welcome news for the senators that are off to work. Back on the clock a little bit later, they're holding a rare Saturday session to talk over their version of that massive economic stimulus bill, originally about $900 billion, trimmed now to $827 billion, much more in line with what the $800 billion proposed in the House.
Again, the debate starting, once again, at noon Eastern. We'll follow it for you here on CNN.
HOLMES: Well, something we are getting right now, a break story coming to us from sportsillustrated.com, saying that they have sources telling them that one of the greatest players in the game, maybe not the best -- maybe is the best playing right now, tested positive for steroids. There is the headline.
They are saying that Alex Rodriguez, currently of the New York Yankees, tested positive for steroids in 2003. Again, four sources, anonymous sources, are reporting this to them. This would be a major development in the world of sports.
Larry Smith from CNN Sports is with us here now.
All right. We've got a lot to get into here.
First, it just jars you, because this is the highest paid in the game. Many say the best in the game. This allegation is from several years ago, but still, just talk on the first part about who he is and what it means to have steroids attached to that name.
LARRY SMITH, CNN SPORTS CORRESPONDENT: Well, you talk about Hank Aaron being our former homerun king, and currently Barry Bonds. We know the issue that Barry Bonds has got going right now.
Alex Rodriguez is 33 years old. You mentioned, the highest paid player in the game. He is just over 200 homeruns shy of catching Bonds. He'll be 34 in July. This is someone who not only is right now, you can argue, the preeminent player in the game, highest paid, but also the biggest superstar and the person that everyone says will one day be the homerun champion. When you see the problems that Barry Bonds is facing, Roger Clemens is facing, the difference is those guys are at the end of their careers. Alex Rodriguez is, you can argue, still in the prime of his career.
HOLMES: The prime, yes.
SMITH: He's on his way out of that, possibly. But this is big for baseball.
But as you look through and you read about this Mitchell Report, and stud that, as we have since it came out in December of 2007, George Mitchell, who headed that report for baseball, was looking to try to find the biggest names. And his name, A-Rod's name, was one that he was asking different people when he interviewed, do you have anything on him?
HOLMES: All right. And let's go back and stay with "Sports Illustrated." And again, Alex Rodriguez has always denied he had anything to do with steroids. We're not getting much comment from him or "Sports Illustrated." But let's go through what they do have.
Sources saying that back in '03, this was part of testing that Major League Baseball was doing before they actually had penalties in place for steroid use. You weren't supposed to do it, but there were no penalties in place.
Walk us through what was going on.
SMITH: Well, there were penalties, but they were very loose. And that was sort of the joke among sports, is that you almost -- you can only be tested once, and it took, like, five positive tests before you got a slap on the wrist. I mean, they were very lenient penalties. The penalties have been stepped up several times since then, including after the Mitchell Report in 2007, where now, I believe, it's a minimum 15-day penalty, it's a 25-day suspension without pay, up to a $10,000 fine, and so on and so forth.
Does this come into play under 2003 rules if he did do this? Is it under 2009 rules? I don't know that, if it's been -- I was sort of running in here. But that's the question right now, will that happen? And we don't know.
HOLMES: So will this be one of those things again, where, you know, it happened back then and maybe the penalties wouldn't stick then, so he's not in trouble maybe with baseball, but this is another one of those things where we're going to have to put an asterisk in the Hall of Fame or by the records?
SMITH: Sure. Mark McGwire received less than 25 percent of the vote for this year's Hall of Fame. And it was less than what he got last year. And this is someone that, before Barry Bonds, is considered the preeminent homerun hitter of his generation. The effect is lasting.
Roger Clemens, the issues that he's going through, is a seven- time Cy Young Award winner. You look at what he's going through right now, in terms of his Hall of Fame credibility, when it does come up, we have proof over time that this is a stigma that will be attached to him now.
If this comes out, and if it's proven to be true at any point -- and you do have all these witnesses saying that -- it's not just the records, it's not just the suspension or the money -- I mean, a $10,000 fine -- I think his per diem is probably more than $10,000. It's not a big deal for him. But again, it's the stigma long term in terms of the game.
If this is the case, this is what baseball wanted to do, is clean up steroids. They wanted to go after people. There have been issues before that only the smaller names, the minor league players, or players that only the most diehard of baseball fans would recognize, have been caught and had to serve a suspension, or whatever. Now the question is -- you've got one of the biggest fish, possibly, on the hook.
HOLMES: All right.
And again, we want to reiterate here, this is coming from sportsillustrated.com. They have four sources, anonymous sources, telling them that, in fact, he tested positive for steroids in 2003. Like Larry said, the rules and the penalties were a little loose at the time, so before these strict penalties got in place.
Larry, we appreciate you running back upstairs and chatting with us here. We'll continue to follow this thing. Thanks, buddy.
SMITH: No problem. OK. All right.
LONG: And still to come, stuck in the ice, no hope of a thaw anytime soon. We'll show you what one Washington river look likes today. Crews are struggling to break the ice, but that may not be such a good idea.
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LONG: A lot of people have been hit hard by this tough economy, and they're faced with some really tough choices. Despite the struggle, there are people who are surviving, trying to thrive, and they're sharing their stories with you. And we're doing the very same this morning.
Steve and Vanessa Smith join us live from South Bend, Indiana. They are both entrepreneurs.
Nice to see you. Thanks so much, Vanessa and Steven.
STEVE SMITH, ECONOMY SURVIVOR: Thanks, Melissa.
VANESSA SMITH, ECONOMY SURVIVOR: Thank you for having us. LONG: So tell us how you have been personally affected. As entrepreneurs, you're a realtor, Steven.
Vanessa, you're an entrepreneur. You just opened a boutique, what, six, seven months ago? That has got to be pretty hard for you.
S. SMITH: Yes, it has been pretty tough. But first off, I want to say our hearts and prayers go out to the hundreds of thousands of Americans who have lost their jobs in the past weeks and a lot of people that are enduring a lot of hardships greater than ours. But hopefully we can shed some hope today in some of the things that we're doing to cope with the economic downturn. And so...
LONG: Well, one of the big things you're doing is you put your home on the market. You're a realtor, again. You know how tough it is. So why are you doing it now?
S. SMITH: Well, you know, we're looking forward. We see that this could take a while to resolve itself. And I went through Financial Peace University, David Ramsey's program, back in October, and this is a problem that we wanted to address even if the economy wasn't down. We want to cut back our spending and reduce our debt load, and be prepared to prosper when the economy turns back around.
LONG: Vanessa, you've opened a boutique, I mentioned, a fashion (ph) boutique. And you want it to flourish and you've even tailored your purchases that you're trying to sell to people. It used to be couture, and now it's just more basic items for a woman's closet.
V. SMITH: Yes. We have kind of diversified our products. We have kept a few of the more expensive brands.
But I searched long and hard to find some great clothing lines -- Papillon and Samuel Dong -- I'm actually wearing some of those clothes today -- that retail for usually around $100 or under. And, you know, I'm hoping that those people who are fortunate to still have their jobs and so forth, that even if they're affected, to some degree, that that will be a price point that they find stomachable (ph), and hopefully that that will continue to make my store flourish.
LONG: I have also read that you are thinking about going down to one car. Rather than leasing, buying a used car.
You're really living the American dream though. You're a young couple, 26, 27, high school sweethearts. You have a 3-year-old son, but you have really made some dramatic changes, and you plan to continue to do that.
Tell me about some of the basics you've done to adjust your lifestyle.
V. SMITH: You know, it's the little things that add up to a lot. We're doing things like -- that we didn't used to do, such as clipping coupons. And we have actually turned down friends that have asked us to go out to dinner and stuff. And it doesn't seem like it's a big deal at the time, but, you know, those things add up and they make a difference.
And we know that people are making a lot more sacrifices than that. But we're hoping that we can reach people and just show that everyone can be making adjustments so that they have more peace in their lives. And hopefully if they're in debt, they can get out of debt. If they're not in any debt, then hopefully they can start saving and make the best of any situation that you're in.
LONG: Steve, I'm curious how closely you're watching the stimulus that's before the Senate right now.
S. SMITH: You know, we're watching that very closely. We keep our eyes on the news every day.
And as a realtor, being affected by the housing market for several years now, going into the collapse here back in October, we're watching it very closely, and with some trepidation of spending. But the greatest cost that we can face right now is if unemployment continues to go on the rise. And nearby neighboring Elkhart County has seen the largest rise in unemployment in the entire country, and Obama is coming to Elkhart this week to talk to them.
LONG: Live from South Bend, Indiana, this morning, Vanessa and Steven Smith.
Thanks so much for sharing your story not only on television, but also online.
Thanks so much. Good luck to you.
S. SMITH: Thank you.
V. SMITH: Thank you.
LONG: We want to remind our viewers, you can find their story on the "Living "pages of CNN.com. Go to cnn.com/living.
If you want to share your story of how you're trying to survive in this tough economy, sends us an iReport. Go to ireport.com/survive.
We look forward to hearing from you and hearing about how you are changing your personal bottom line.
Coming up in the next hour, find out what college students are saying as they are contemplating graduating into this economy that's shedding jobs by the thousands.
HOLMES: Also coming your way at noon, what impact will Supreme Court Justice Ruth Ginsburg's cancer have on the courts? We'll check in with our legal analyst, Avery Friedman.
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(BEGIN VIDEOTAPE) UNIDENTIFIED FEMALE (voice-over): Dreaming of gazing out from the Eiffel Tower or walking through the palace doors of the Forbidden City? It could be a reality with some planning.
CHRIS MCGINNIS, EXPEDIA.COM: You can't make a plan for a vacation without really having a goal. The first thing you want to do is add up all your major costs such as airfare, hotel, rental car, gasoline and food. Next, you need to add on about 25 percent for the additional fees such as tips, attraction fees, souvenirs, hotel Internet access, and also the fees that you're going to pay the airlines to carry on all those extra bags.
UNIDENTIFIED FEMALE: And depending on where you travel, you may need to add costs of a passport or visa. To help create and keep track of your budget, there are tools available online. And why not make it a family affair?
MCGINNIS: You need to get your kids involved in the budgeting process. So make it into a game and ask them to help meet the monthly savings goal by making cuts elsewhere.
UNIDENTIFIED FEMALE: A great way to help them learn how to manage money and stay on the go.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
LONG: Breaking down the stimulus package for you. It's massive. It stands at more than $800 billion. And where is the money going?
HOLMES: That's a good question. A lot of people complain that that first stimulus bill might have just kind of disappeared. Poof.
Well, our CNN Pentagon Correspondent Chris Lawrence now reports the military stands to get a sizable chunk, but they're having to pick speed over need.
(BEGIN VIDEOTAPE)
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice over): The U.S. military could get billions of dollars for barracks and buildings. The stimulus package would allocate an estimated $3 billion for housing and facilities, more than $4 billion for hospitals and clinics, and $360 million for child care centers.
The Pentagon says these projects fit the guidelines it was given by the White House.
REP. DOUG LAMBORN (R), ARMED SERVICES COMMITTEE: There are defense projects that could be funded right now.
LAWRENCE: Republican Doug Lamborn says too much of the Pentagon's share is going to renewable energy research and Corps of Engineer construction.
LAMBORN: Really nothing for the weapons and the tools that our troops on the front lines actually need.
LAWRENCE: Lamborn and others argue there's a backlog of repairs for equipment worn out in two wars.
GORDON ADAMS, NATIONAL SECURITY EXPERT: Additional money there isn't really going to produce any impact.
LAWRENCE: Gordon Adams advised the Obama administration during the transition and says those kinds of contractors are at full capacity.
ADAMS: They're already adding third shifts. They've already got full up on the production line. They can't go any faster. They can't go any bigger.
LAWRENCE: Adams says it would take years to ramp up production. And the rules of the stimulus package stipulate speed over actual need.
WINSLOW WHEELER, CENTER FOR DEFENSE INFORMATION: Just throwing money at the thing is a bad idea, both for economic stimulus, and it's a bad idea for defense.
LAWRENCE: Winslow Wheeler was a former executive at the Government Accountability Office. He says the Pentagon is not a good fit in the stimulus package because it's known for high overhead costs and money that gets paid out slowly.
WHEELER: If you're talking about stimulus, if you're going to be smart, it's not the place to spend your money.
LAWRENCE (on camera): Now, there's no doubt that new hospitals and housing will help a lot of military families, but these aren't even required to be the most needed hospitals and housing, just the ones they can break ground on the fastest.
Chris Lawrence, CNN, the Pentagon.
(END VIDEOTAPE)
