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Stimulus Bill May Pass Soon; Continuing On the Food Stamp Diet; GM Betting on Volt; Bailout Announcement Delayed
Aired February 09, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLINS: President Obama taking his case for the stimulus to the people. You just saw a few minutes ago him leave on Air Force One for a town hall meeting in Elkhart, Indiana. We're going to have that for you live right here in the CNN NEWSROOM.
Lining up for blocks outside Wrigley Field. Not for tickets, though, this time for jobs. The Chicago Cubs hiring seasonal and part-time workers. Some people stayed in line overnight to get their applications in.
The Senate moves closer to a vote on the stimulus bill. We look at the road blocks and how the president is selling the plan today.
And the death toll rises in Australia's wicked wildfires. The prime minister who calls the possibility of arson mass murder. It's Monday, February 9th, I'm Heidi Collins, you are in the CNN NEWSROOM.
Your money, his sales mission. President Obama on the road and on television to sell the massive stimulus plan to the public. Right now, he's on his way to Indiana and then will return home for a primetime news conference tonight.
Want to begin our coverage this morning with White House correspondent Suzanne Malveaux.
A tough sell for some.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Absolutely, Heidi. And what he's doing is he's trying to sell this huge economic stimulus package to members of Congress by taking it directly to the American people to say, look, I understand you're suffering, I want to hear how can I help? But certainly making the pitch that his economic stimulus package is the way that he believes that he can help them in creating some four million jobs and there are a couple of things that we've been looking into, Heidi.
This morning, obviously, Elkhart, Indiana is devastated by this recession. 15 percent unemployment, that's triple the amount within a year or so. And part of it is because it's really the capital of manufacturing recreational vehicles. These RVs. Folks are not taking vacations. They're not purchasing these vehicles. So they had to lay off a lot of jobs.
I asked a White House official how does this economic stimulus package, this investment in these infrastructure projects, how does it help these RV manufacturers? Well, the officials said not necessarily addresses their business. They may have to look elsewhere. They may have to get involved in say a railroad building project or a theater renovation or something like that. That the RV business isn't necessarily going to come back any time soon.
So this is really kind of a cold hard reality of people looking at their businesses and trying to figure out how do they actually get those jobs that the administration says is going to create.
Another thing we've been looking into is that Elkharts, the local paper there says that the mayor has about $92 million worth of these shovel-ready projects.
COLLINS: Right.
MALVEAUX: One of them to go ahead and build a railroad overpass. Another one to renovate a theater, and if you take the numbers here and look at it, $34 million for the railroad overpass, $17 million for the theater renovations here. Again, asking White House officials, you know, how do you account for the priorities here? It may create some jobs, but is it necessary to put $17 million into renovating an old theater?
And they said, well, this is the job of the OMB, the Office of Management and Budget. They're going to take a look at these projects to see what people are actually pitching to the government to get this kind of money. And they said there's a website, recovery.gov, which allow all of us to take a look and see how this money is being spent. So all of these things are coming up here, obviously.
When you have people who are looking for money, they want the government money, and the administration responding in terms of what kind of jobs are they going to create, Heidi?
COLLINS: Yes, all good questions, obviously. Suzanne Malveaux for us outside the White House this morning.
Thanks, Suzanne.
MALVEAUX: Hundreds of people have been lined up since yesterday morning to get their hands on a ticket for President Obama's town hall meeting tomorrow in Ft. Myers. The tickets are free, but there are only 1,500 of them. The president will talk about his economic recovery plan. Ft. Myers' unemployment rate has climbed to 10 percent, and it's housing market is among the nation's worst.
You can join us tonight as the best political team on television takes on President Obama's first prime time news conference. It's happening at 8:00 p.m. Eastern. Afterwards, we'll break it down. What was said, what wasn't, and what it really means. And at 10:00, make sure you catch "ANDERSON COOPER 360."
The worldwide recession forces big cuts at Nissan, Japan's third largest automaker says it will eliminate some 20,000 jobs. They will also get rid of bonuses for its board of directors and reduce board members' salaries by 10 percent. The reason, Nissan's net revenue down by more than one-third now. Help wanted, the line forms here. In metro Atlanta, job seekers began lining up before dawn this morning. They're applying for work at a part supplier to a future Kia auto plant. In all 600 jobs will be created. The Kia auto assembly facility is being built in nearby West Point.
Take a look at big board now, Dow Jones industrial average down by double digits there. You see down about 72 points, resting at 8,206. We will keep our eye on those numbers for you throughout the day right here in the CNN NEWSROOM.
This is a critical day for the massive stimulus plan. In fact, the Senate could end debate and set the stage for a vote for tomorrow. Let's go now to Capitol Hill and CNN congressional correspondent Brianna Keilar.
So really, is this going to happen tomorrow, Brianna?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Today, Heidi, we're paying attention to this vote so much because it's a key test vote to see if that deal that was brokered on Friday night to win over a few Republicans, if it's really is enough to get this economic stimulus package out of the Senate with another vote tomorrow.
Then, the next step in the process is for the House and the Senate to hash out the differences in the two bills they've passed and figure out one bill.
But in the meantime, we're talking about all these votes, though, it has been weeks where small cities and towns have been eyeing the stimulus, eyeing the infrastructure spending money in it and trying to get a piece of the pie just like one small town that we visited just a short drive from Capitol Hill.
(BEGIN VIDEOTAPE)
KEILAR (voice-over): Taneytown, Maryland, just 70 miles from Washington, D.C. but talk to folks in this rural community and they'll tell you it's another world.
BILL RAINES, TANEYTOWN, MARYLAND RESIDENT: I don't think government really realizes how bad it is out here.
KEILAR: Unemployment here is the highest it's been in 10 years. Businesses have closed, and residents are facing tax hikes to fund the city's crumbling infrastructure.
MAYOR JIM MCCARRON, TANEYTOWN, MARYLAND: Our water system and our sewage system probably goes back 55 to 60 years.
KEILAR: Taneytown's mayor Jim McCarron has a plan to help the city. He's launched an all-out lobbying effort to get a piece of the billions Washington could spend to jump start the economy, drawing up a list of projects that could begin within 90 days, meeting with members of Congress, talking to the governor's office. KEILAR: It's a full court press, isn't it?
MCCARRON: It is, indeed. It's you know, it's the old squeaky wheel theory. I've subscribed to that for many years. This is not fluff. This is not expanding the city or buying another staff car. This is stuff that affects everybody's lives and affect everybody's pocketbooks.
KEILAR: On Mayor McCarron's $20 million to do list, drilling a new well like this one for the city's at capacity water system. Replacing more deteriorating water pipes and building a road.
MCCARRON: This is the Antrim (ph) road and this is the extension.
KEILAR: A road to open up land for new businesses that McCarron says will bring new jobs to the area. You would think more government spending would be a tough sell to people in this conservative stronghold angry with the Wall Street bailout, but they see this economic rescue as Main Street's chance to get the help it needs.
UNIDENTIFIED MALE: As long as it gets down to the lower levels like Taneytown and some of the other small towns, it would be beneficial.
(END VIDEOTAPE)
KEILAR: Now economists have said this money for infrastructure in the economic stimulus package really needs to be spent within the next 18 months to stimulate the economy. And these small towns in cities like Taneytown, their mayors they're pretty savvy. For instance, Mayor McCarron, Heidi, isn't pitching a single project that isn't scheduled to be finished up within or later than 18 months. All within the next year and a half.
COLLINS: All right. We'll be watching very closely. Brianna Keilar in Capitol Hill this morning.
Thanks, Brianna.
And more now on the politics behind the economic stimulus package. Three moderate republicans have signed on to a slimmed down version of the stimulus package, even though most Republicans still oppose it, Democrats believe they can avoid a filibuster and get the bill through on Tuesday.
That won't mean the end of the battle, though. The Senate will have to work out differences with the House. President Obama still hopes to have a final bill on his desk by Presidents' Day, February 16th. We're going to have live coverage of President Obama's town hall meeting in Elkhart, Indiana as we mentioned. That is scheduled to come your way at noon Eastern.
The $700 billion bailout has been criticized for helping big banks and ignoring homeowners. Tomorrow, Treasury Secretary Timothy Geithner will announce an overhaul. It will set aside as much as $100 billion to address the foreclosure crisis. One example, banks who accept the bailout money will be required to work with homeowners and try to avoid foreclosure. Also part of the overhaul, freeing up the credit markets by buying the troubled assets that are weighing down some of these banks.
So which stimulus bill is better? The House version or the Senate's? We're going to be talking with Emory University business professor Jeffrey Rosensweig in just a few minutes.
Rob Marciano joining us now from the weather center. Tell us everything that's happening all across the country. I saw the top line there that said mountain snow. Mountain snow?
ROB MARCIANO, CNN, METEOROLOGIST: Is that what it says up there?
COLLINS: Mountain snow across the mountain.
MARCIANO: Yes. This time of year, that's always a good bet to throw it up there and you -
COLLINS: I love the accuracy.
MARCIANO: No, we're going to highlight the areas that are going to see mountain snow. (inaudible) in the mountains and it's out west. And out east, we're looking at temperatures today it will be in the lower 70s in spots. So early spring, at least it feels that way after what has been a pretty cold winter for a lot of folks in the eastern half of the country. So welcome that news.
But the bad news is, whenever you build up the heat this time of year, you're going to have some atmospheric energy that will trigger that heat and fire up storms. That's what we're seeing today and we'll also see that, I think, tomorrow. The threat for severe weather right across this area, northeastern parts of Kansas, eastern Nebraska, and parts of Iowa, and the fire is behind this first system because of windy and dry conditions. So we're going to highlight that in just a second.
We do have one travel delay, 15 to 30 minute travel delay at Chicago O'Hare. And mostly on the arrival side and they are on the increase. All right. Here's the radar loop, which is showing showers and thunderstorms all the way down to the Texas gulf coast, all the way up to Kansas City, and we're seeing, actually, some of these get a little bit more intense and the storm's prediction center, actually issued a severe thunderstorm watch until 1:00 local time and that includes Kansas City proper.
And this line of thunderstorms is about to slam into that area. Some of these thunderstorms could have wind gusts of 50, 60, in some cases 70 miles an hour. So straight line winds that could do some damage. Storm number two is heading into the Pacific Coast, mostly central and southern California after a brief break yesterday, rainfall coming in your way, and heavy mountain snow into the Sierras, one punch, and then two punch, we could see 12 to 20 inches in spots here, but also in parts of Arizona. We take you to Phoenix, a live shot, temperatures there, today we'll hover in the 50s. We're on the chilly side, KTVK. Thanks for (inaudible) on that. Some clouds there, but winter storm warnings posted for the mountains just north of Phoenix and into the southern areas of Colorado as well. So there's your mountain snow highlighted for fresh powder hounds who want it in Utah, California, Colorado, even New Mexico and Phoenix.
Tomorrow's daytime highs, 73 degrees in Dallas. Again, we start to build this heat, which will have to be released and probably will be with this second system that will come through. And this threat for severe weather will begin tomorrow afternoon and last you through tomorrow night and it could very well go across the mid south and mid Tennessee, mid Mississippi into the Tennessee and Ohio River Valley, which are, you know, still dealing with the after effects of that ice storm they had a couple of weeks ago. So a different tale for them, but it could mean more trouble, unfortunately. We'll keep an eye.
COLLINS: Oh, boy. Yes. Lots and lots of people still without power and heat and all of that. We're thinking about them, certainly. Rob, keep us posted on that.
MARCIANO: All right.
COLLINS: Meanwhile, an unoccupied luxury hotel in Beijing going up in flames. The 40-story Mandarin Oriental has been under construction. We don't know right now what caused the fire. But there are no reports of injuries at this time. So that's obviously a good thing. The pictures we've been looking at are pretty incredible. Fire crews on the scene. They do appear to have it under control now.
The hotel had been scheduled to open last year, but that date was pushed back. In fact, look at this. I-reporter Yann Rouseau was able to take these pictures. Looks like the very beginning of the fire I'm kind of assuming there, but just by the way those flames are moving and sparks flying into the air. He lives near the building - he was able to get those pictures for us. Boy, oh, boy. We'll keep our eye on that story for you, of course.
At least 156 people are now dead from wildfires. Australian police are calling the nation's worst ever. Investigators believe some of the fires were set prompting the prime ministers to call acts like this mass murder. Police say two towns in Victoria state have been destroyed now with thousands of people left homeless. Survivors are in disbelief over how fast their lives have changed.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: All the best friends are dead, their kids are dead, and I played golf with a 12-year-old kid on Saturday, he's not here anymore. It's just devastating.
(END VIDEO CLIP)
COLLINS: Australians are used to wildfires, but certainly nothing like this. Droughts, dry bush, and one of the most powerful heat waves in memory are combining for a deadly formula.
All this talk now about the stimulus bill. But didn't we already pour hundreds of billions into an economic bailout plan a few months ago? We're going to talk to an expert about how much is left and where it's all going.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
SEN. RICHARD SHELBY (R), ALABAMA: We're going down a road to disaster. We've never seen this kind of spending ever, and there's a lot more to come. There's got to be some other way better than what we're doing. Not the socialist way, but to try to get our free markets working again.
(END VIDEO CLIP)
COLLINS: Senator Richard Shelby there. So which stimulus bill is better? The House's version or the Senate's? And what about all of the money we've already poured into the TARP bailout just last year. And how much is left? And where is it all going? Lots of important questions that we want to get to.
So here to talk about it with me now, Jeffrey Rosensweig, a business professor at Emory University, and becoming a friend of the NEWSROOM as we like to call it. So we appreciate you being here.
In fact, I want to go ahead and put on the screen sort of the difference between the Senate and the House version of the stimulus bill. So people get a better idea. You can see it there. We're talking about tax cuts, government spending, and, of course, the direct payments to individuals who feel a bit of difference there obviously.
Which one of these in your best opinion would really help the economy? More and perhaps faster because we keep on talking about how quickly this all needs to happen.
JEFFREY ROSENSWEIG, EMORY UNIVERSITY: Interestingly, some studies have shown tax cuts, if they're targeted, if they're the right kind of tax cuts can happen a little more quickly.
On the other hand, we should balance two things, which is what will be good for the economy in the longer run with getting something quickly. Some aspects of spending can create jobs directly which is needed. But they can also help us in the long-term, spending on research, development, schools.
So I don't want to throw that out. And some of what the Republicans were trying to do in the Senate was throwing that out. So ultimately I do want spending to create jobs and to create a better long run future.
COLLINS: But I think a lot of people have a hard time understanding how tax cuts then really create jobs. Yes, I mean, they understand when you have a tax cut, usually there's money that goes into the economy faster because people are supposed to spend it, right? But how exactly do they create jobs?
ROSENSWEIG: And that's one reason on balance I'm in favor of government spending that directly creates jobs. Hire people, get them fixing, get them building a bridge. Particularly last spring, we did give tax cuts, and it wasn't clear that any of them created spending or jobs. You can save that tax cut, you can buy goods from china, nothing wrong with china, but what we need is to get jobs going here and spending often does that.
Tax cuts, though, that maybe help a small business, put people to work. Maybe some kind of credit for that. So we have to really target that way about tax cuts to create jobs. Not just to give money out.
COLLINS: Exactly. All right. So it needs to be very detailed and refined obviously. Now what about the people at home or the people without homes I should say now, who have had to foreclose? We're talking about $100 million in the stimulus plan that is apparently going to be set aside, reporting it this morning, for these people and their situation. Is that enough?
ROSENSWEIG: It's a very big starting number. You know, we were talking $50 billion yesterday. So I think what both sides in Congress, on the administration is getting is the American people have some clear ideas, and one is they're smart enough, sometimes smarter than Congress people to know the root of this problem was in the housing market.
COLLINS: Right.
ROSENSWEIG: And it's totally counterproductive to put people out of their homes. Doesn't help the people, obviously, terrible. Doesn't help the housing in the neighborhood when there's so many houses for sale, doesn't help the banks, which we're trying to shore up. So I think it is the smartest place to be increasing the spending.
On the other hand, you mention what if you've been put out of your home? Well, in that regard, there's things we can do for people who are really hurting. They're unemployed and there is some talk in the plans about let's pay a lot of the premium on their cobra(ph), on their health insurance that they no longer get because they lost their jobs.
COLLINS: Yes.
ROSENSWEIG: Let's extend their unemployment benefits, the amount of time and maybe even the amount they get. Let's extend food stamps. So we don't have to worry about those without a job? Those who have been put out of their home, anyone in their home. Let's keep them in right now. And that's the core of the problem.
COLLINS: All right. Well, we appreciate you being here as always. We're going to keep you around. Because I think this is going to be an issue, obviously, for a long, long time. And a very big one. Jeffrey Rosensweig from Emory University. Thank you very much.
President Obama taking his economic message on the road today. He left Washington just a little while ago heading for Elkhart, Indiana. It is a town hit very hard by the recession. And the president is holding a town hall meeting there less than two hours from now. We're going to bring you live coverage as soon as it begins.
Living off food stamps. Always a challenge when there's a family to feed. But what about when costs go up. One part of the stimulus plan could help out.
(COMMERCIAL BREAK)
COLLINS: Food stamps, not stretching as far in these tight times, but the Obama administration is looking to help families and by extension farmers and food producers.
Our Sean Callebs is joining us now live from New York with a second in a series.
Sean, you have been living on food stamps to try to kind of see what this is all about and how it's done. And now we get the second installment here. How are things going?
SEAN CALLEBS, CNN CORRESPONDENT: Yes, exactly. We actually got started on this because there's so many people, 31 million in the United States living on food stamps right now.
So far, I think it's going OK. It was rough the first few days trying to get used to it. You know, not snacking, you would get hunger pangs at certain times during the day. But I think I kind of have my sea legs in getting used to it at this point. That's not to say it's easy and not to diminish how difficult it is for entire families to try to live like this.
And because of that. Part of the economic stimulus package actually involves dramatically increasing the amount of food stamp recipients received. Now how will that benefit the economy? Listen.
(BEGIN VIDEOTAPE)
CALLEBS (voice-over): This is the front line in the fight against hunger. A food bank, you can find them everywhere these days. This is the Mustard Seed Food Distribution Center for people living in St. Bernard Parish in New Orleans.
DYNEL BIENEMY, HOMELESS: I don't have to beg, do you have a can of vegetables I can borrow? I can bring them home that day. I've been given a can.
CALLEBS: Forty-four-year-old Dynel Bienemy worked in the healthcare industry, but lost her job. Here she applied for food stamps and then stocked up on as many items as she could carry away. But she says, it won't last long.
BIENEMY: It's like going through hell. You just don't know what to expect the next day. You've got to live day by day.
TOM VILSACK, AGRICULTURE SECRETARY: We all have a stake in getting this economy back headed in the right direction.
CALLEBS: Newly appointed secretary of agriculture, Tom Vilsack runs the agency that oversees the food stamp program, part of President Obama's economic stimulus package calls for a 13 percent increase in payouts to families on food stamps.
VILSACK: You'll see a significant increase millions of dollars going into this program because it will help to create jobs and help take care of families during these tough times.
CALLEBS (on-camera): Here's how he says it will help the economy. Spending more money on food helps guarantee jobs for farmers and producers as well as the people who sell and distribute our food. More money also means healthier diets and that will help keep the nation's poor out of hospitals saddled with doctor bills they simply cannot pay.
CALLEBS (voice-over): But the cost of food has spiked about six percent this past year. And that has not made living on food stamps any easier. It's been more than a week now, I will have about 100 of the original $176 left. Dinners have included chicken, lean ground beef, tuna. But it has been a carbohydrate heavy diet. Rice, pasta and beans are filling but can get old.
(END VIDEOTAPE)
CALLEBS: Obviously I live in New Orleans, but I'm in New York right now. And Heidi I have to tell you, I actually brought a lot of the food with me from home up here spending some time with family.
I want to show you some of - this is a bag of rice I've gone through just about half of this. This is one of the more popular items I've really invested in. This stuff here makes 48 quarts of lemonade. It was only 99 cents, that's a pretty good buy. A lot of black beans, this was 79 cents, just a generic brand.
COLLINS: Yes.
CALLEBS: Same thing with tuna, dirt cheap, as well. I want to show you what I brought for lunch today, two cheese sandwiches. I got the cheese at a dollar store and I got the bread at a dollar store. So that was incredibly expensive. Also a salad and an apple. So a pretty well-rounded lunch ahead of me.
COLLINS: Yes, I think probably what you're learning from what you've been reporting is that you really have to plan ahead. You really have to think through every single shopping trip to certainly get the most of the money that you're able to use here.
CALLEBS: Yes, exactly. I think that that's one reason that when we talk to the people at the agriculture secretary's office, they really are trying to push this through saying that people may not think that how can food stamps can benefit the economy? But we could really harm the economy if these people in need continue to drop lower and lower on the economic ladder and we're going to have to pick up these expenses in the long run, especially medical expenses for kids.
COLLINS: Yes, got it. All right. CNN's Sean Callebs.
Sean, we'll check out the last part of your series coming up very soon. Appreciate that.
President Obama talking about the economy in his first prime time news conference. It'll happen tonight. So any affect on Wall Street this morning? The Big board says down double digits there by 54 points or so. Resting at 8,225. S&P and NASDAQ down a bit, as well. Quick break here, we're back in a moment.
(COMMERCIAL BREAK)
COLLINS: President Obama taking his economic message on the road today. First stop Elkhart, Indiana, where the unemployment rate is a whopping 15.3 percent. Hundreds of people camped out for hours trying to get tickets to hear the president speak. Same thing happening today, Ft. Myers, Florida. People waiting to get a free ticket for tomorrow's appearance there by the president.
Elkhart seems like the right choice for President Obama to visit on his stimulus campaign tour. According to labor statistics now, the Indiana county leads the country in unemployment. The auto and manufacturing industry had long been the backbone of employment in the city. But, with the deep slump in sales, most families there have been hit hard. And as we mentioned, President Obama is also making a trip to Ft. Myers, Florida, tomorrow. That district represented by republican members of Congress who voted no for the bill. But the governor, Charlie Crist, who is Republican, supports the stimulus package.
So joining us tonight as the best political team on television sets the stage for President Obama's first prime time news conference coming your way 8:00 p.m. Eastern. Afterwards, we will break it down for you. And then at 10:00, you can, of course, catch "ANDERSON COOPER 360."
The Senate clocks back in this afternoon with time ticking away on that stimulus plan. Looks like they have an agreement on a version worth more than $800 billion. And today the Senate will vote on whether to end that debate over the bill, and that means that it could clear the way for the final vote, which is expected tomorrow.
Many Republicans, though, aren't happy with the hefty price tag for the stimulus, but they probably won't be able to block it thanks to a few members of their own party.
Here now, CNN's Elaine Quijano.
(BEGIN VIDEPTAPE) ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): In the fight for the massive economic recovery plan, only a handful of Republican Senators supports the bill. Richard Shelby is not one of them.
SEN. RICHARD SHELBY (R), ALABAMA: We're going down a road to financial disaster. Everybody on the street in America understands that. This is not the right road to go, we'll pay dearly.
QUIJANO: Senator John McCain also opposes the bill.
SEN. JOHN MCCAIN (R), ARIZONA: This is generational theft, what's taking place now. We're laying multitrillion dollars of debt on future generations of Americans. I can't support such a thing.
QUIJANO: Only GOP Senator Susan Collins, Olympia Snow, and Arlen Specter back the plan, lonely positions in their party acknowledged in radio ads by Obama supporters.
COMMERCIAL ANNOUNCER IN OBAMA ADVERTISEMENT: Maine's two Senators, Snow and Collins ,are providing the leadership we need to get the job done.
QUIJANO: The plan is expected to pass in the Senate, but will face another hurdle when Senate and House negotiators try to resolve differences between their versions of the bill. The president's economic advisers sought to minimize the differences.
LAWRENCE SUMMERS, DIRECTOR, NATIONAL ECONOMIC COUNCIL: But the most important thing is that people come together and create the three to four million jobs. You know, there's 90 percent overlap.
QUIJANO: But the remaining differences could prove to be difficult sticking points for House Democrats. One example, the Senate version calls for billions less in state aid for education and school construction.
(on camera): President Obama will try to sell his stimulus plan this week with town hall meetings in Indiana and Florida, two states hard hit in an economic downturn. The president also plans to hold his first prime time news conference Monday night.
Elaine Quijano, CNN, the White House.
(END VIDEPTAPE)
COLLINS: Opening day isn't for another two months, so why are all of these people lined up outside of Wrigley Field? Well, they're looking for jobs with the Chicago Cubs. The ball club is taking on some seasonal and part-time workers. Hundreds of people turned out and some of them, in fact, waiting overnight.
They're angry, barely holding on to their homes. They want to hold someone accountable. So, a group of homeowners in Connecticut along with a non-profit group headed to the homes of bank CEOs. The group, National Neighborhood Assistance of America, says the CEOs aren't helping keep homeowners out of foreclosure. (BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The furniture here symbolizes the hundreds of thousands and millions of homeowners who are losing their homes.
PROTESTORS (chanting): Fix our loan so we can save our home.
(END VIDEO CLIP)
COLLINS: The homeowners say they know protesting isn't going to get them out of foreclosure. More than anything, they just want to be heard.
With auto sales at a 26-year low, GM is struggling to stay afloat and it's making a big bet on a plug-in hybrid that won't be profitable for years. CNNmoney.com's Poppy Harlow has our "Energy Fix" now this morning.
So, it is going to be a while before they see any profit from this.
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: And a lot of critics say it's not good enough for the position they're in right now. We're talking, folks, about the Chevy Volt. We've heard a lot of buzz about this car. It's going to hit showroom floors, GM says, in 2010. But the big question still, are people going to like it and are they going to buy it? It can go 40 miles without gas, so that saves folks money. But some auto analysts say it could cost upwards of $40,000, no exact price tag on it from GM yet, but GM does say a $7,500 tax rebate should help attract buyers.
Take a listen.
(BEGIN VIDEO CLIP)
TONY POSAWATZ, VOLT LINE DIRECCTOR: If you're driving a less than 40 miles a day, you will literally not use gas. You'll drive quietly. You'll have an instantaneous torque and performance very akin to a sports car. So it's a very distinct and different vehicle than some of the hybrids on the market today. Not to mention, how much you save with electricity going only one to two cents of mile of cost to the customer.
(END VIDEO CLIP)
HARLOW: All right, so that is compared to about six to eight cents a mile with regular gas cars with gas at about $2 a gallon. But remember, GM had an electric car back in the '90s, that was the EV-1, they pulled it from the market and now say that was a pretty big mistake. The company, though, does says this Chevy Volt is a huge improvement from the EV-1.
(BEGIN VIDEO CLIP)
POSAWITZ: It's 400-pound battery, so a third of the size. Gets very good range, has a range extending capability, and it's a no compromise vehicle. Four passengers, cargo space, fun to drive, we think this one's going to be a hit.
(END VIDEO CLIP)
HARLOW: They're certainly betting on it, Heidi. Sales for GM, down about 50 percent last month alone and as we know it, is operating on tens of billions of dollars of government money at this point, Heidi.
COLLINS: All right, cnnmoney.com's, Poppy Harlow.
HARLOW: You're welcome.
COLLINS: To Wall Street now. The announcement of a massive overhaul of the bank bailout plan has been delayed by a day and that has investors feeling a little bit jittery. Susan Lisovicz on the floor of the New York Stock Exchange with more on why the Treasury secretary is holding off and a look at what he's likely to say when that plan is rolled out.
Hi there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hello, Heidi.
It looks like we're going to have a "two-for" on Tuesday. Well, the reason why that the Geithner plan has been delayed by a day is because we still don't have the stimulus package passed. So it looks like we could get both on Tuesday. And what this involves for rescuing the nation's banks is the remaining $350 billion in TARP money. It's an awful lot of money. As you know, the first portion of it went to 300 banks, as well as to GM and Chrysler. The Bush Administration obviously coming under a lot of pressure over that because there really wasn't a lot of explanation as to the decision making - who got the money, why, the transparency, and finally, the accountability, because a lot of criticism, as well, that the bank simply hoarded the money and didn't really lend it out, when, in fact, that's what the credit crisis is all about.
The "Wall Street journal" says that the Geithner plan is likely to include partnering with the private sector to purchase banks' troubled assets. Other details that may come with it, fresh tax injections into the banking system as well as new programs to help possibly the millions of homeowners who struggle with their mortgages, as well as an expansion of a Federal Reserve program to jump start consumer lending.
In the meantime, we're not seeing any jump start for the major averages. The Dow right now, giving back a little bit of the triple digit gains we saw on Friday. Right now, the blue chips down 38 points, the NASDAQ, meanwhile is off 16 - 16 points. Not a lot of movement here.
COLLINS: No, not a whole lot. Hey, Susan, that first portion of the bailout was used to help companies that found themselves in over their heads financially of course, and we're not expecting that problem to go away this year, of course. LISOVICZ: No. You know, it's not just the nation's financial system, obviously that's struggling with this recession. Just today, Whirlpool, for instance, makes dishwashers and washing machines, it's quarterly profits plunged 75 percent. The company says it expects this could be the most challenging year in its history. Hasbro, the toymaker, said its profits fell by a third. All in all, the "Wall Street Journal" says profits at big companies last year publicly traded companies fell 32 percent last year and that is the biggest decline in more than 20 years.
Obviously, for the market to recover, that's one of the things you want to look forward, you want to hear companies say it's not going to be the most challenging year in the company's history. You want to see some light at the end of the tunnel. And that's one of the reasons, one of the things holding back the markets as this recession continues. You know, we're not really seeing any improvement yet, obviously, in the economy.
COLLINS: I think it's going to take quite a while. All right, Susan Lisovicz, sure do appreciate that.
LISOVICZ: You're welcome.
COLLINS: Something else is happening where you are, Susan, New York City for the pilot and crew of US Airways 1549. Their remarkable story goes on. Today, live pictures in fact for you right there - they get the keys to the city that never sleeps. Live pictures inside New York City Hall. Mayor Michael Bloomberg presenting Captain Chesley Sullenberger, "Sully," as I'm sure you've heard him called before, and his crew with the keys to New York city. They've been getting the celebrity treatment ever since they were hailed as heroes for successfully crash landing the damaged plane, an airbus, on the Hudson River just last month. All 155 aboard that plane did survive.
We see Mayor Michael Bloomberg walking into the room there right now. So do we want to listen in? I think we probably do.
MICHAEL BLOOMBERG, MAYOR, NEW YORK CITY: Good morning.
(LAUGHTER)
You want to know why we're here, right? Well, I will tell you why we're here because it is - come on.
(LAUGHTER)
We do this for a living.
It is now my great pleasure to introduce five real American heroes: the crew of US Airways Flight 1549.
(APPLAUSE)
All right. On behalf of 8.3 million grateful New Yorkers, it is my honor to welcome you to City Hall this morning. Why don't you sit down and relax and enjoy? I certainly hope you feel at home here. And you should. New York City, as you know, I think, is a city full of heroes, whether it's our firefighters or police officers, emergency workers, every day citizens who show their own brand of courage. And that's why, I think, we have all felt such a strong connection to the story of Flight 1549. Not just because it happened right on our doorstep, but because these brave individuals who managed to save every single passenger on that flight lived up to an ideal that to all of us in New York we all aspire to and that many of us have reached.
Now, the crew has probably relived the events of January 15th many times. But one thing that you may not be aware of was that while you were preparing to take off at LaGuardia, I was giving my annual "state of the city" speech at the same time.
You weren't listening, were you? Hope not.
Because in some ways it really does feel like you were. In that speech, I talked about New York city's indomitable spirit and that no matter how bad things may get and how rough a patch we have to endure, New Yorkers always find a way to pull through together. And we certainly showed that on the frigid afternoon. A day that could have been one of our most tragic, but became one of our most triumphant.
Our first responders coordinate an amazing rescue. It was an unbelievable job. They brought pride to our entire city and I think they showed the world why they are the best. But the bottom line is they couldn't have - they could have been facing a far more difficult rescue if not for the quick-thinking, cool composure, and the extraordinary skill of the flight crew. The two pilots pulled off a remarkable landing, and then as water poured into the cabin, the crew came together as a team to quickly evacuate the plane.
It's been called a miracle, but in this case, there is no miracle without the years of experience and training by the people sitting right to my right. Air passengers everywhere have been reminded, thankfully, that these true professionals aren't just there to serve drinks and snacks, they're there to keep us safe. And I think they demonstrated that they do.
Ladies and gentlemen, on behalf of all New Yorkers, I want to thank you, thank you for saving so many lives. Thank you for sparing our city and so many families from an awful tragedy. And thank you for renewing our faith in the strength of human spirit. You've reminded us why - that we can do anything if we put our minds to it. That we can achieve the impossible.
And for your unforgettable actions, it is now my pleasure to present each of you with a rare honor, the key to the City of New York. So if you would come up as I call your name. First, flight attendant Doreen Walsh.
(APPLAUSE)
Plenty of time, just relax, OK? Why don't you hold it up? OK, we'll come over and do it the other side in a minute. Turn it so they can see - you have to hold it. Good, come on over to this side.
(APPLAUSE)
Sit down, guys. Sit down. OK. Thank you.
(APPLAUSE)
Flight attendant Sheila Dail.
(APPLAUSE)
OK, we'll come over to the other side.
(APPLAUSE)
Flight attendant Donna Dent.
(APPLAUSE)
And the two men at the controls, First Officer Jeffrey Skiles.
(APPLAUSE)
OK. And over to the left.
And "Captain Cool" himself, Chesley Sullenberger, "Sully."
(APPLAUSE)
OK. Excuse me, sir, would you move down?
COLLINS: All right. So this is the moment that we have been waiting for, of course, to see Captain Chesley Sullenberger, "Sully," to get his key to the city. The Captain of the aircraft - US Airways Flight 1549 as it went into the Hudson River January 17th, standing right there with New York City Mayor Michael Bloomberg. You see some of the pictures from that day and the rest of his crew members, as well. And I've been kind of doing some math here, it looks like they have all racked up, all three flight attendants and the two pilots, more than 150 years experience. So very interesting. Captain Sullenberger, in fact, 29 years experience with the airline. So very interesting. Flying Airbus A320 on that day. He has flown many other aircraft. He's actually a former fighter pilot in the Air Force.
So, again, Captain Chesley Sullenberger, trying to make his way through a very loud and somewhat boisterous press there. Everybody trying to stand in the way of each other for the nice shot.
So, once again, Mayor Michael Bloomberg handing over the key to New York City for the pilot and crew members of flight - US Airways Flight 1549.
All right, tonight - CNN Tuesday night, I should say, at 9:00, the heroic US Airways pilot and crew are going to be talking to our Larry King about the miracle on the Hudson. You can catch that once again "LARRY KING LIVE" CNN, Tuesday night at 9:00 p.m. Eastern.
New rules on expected consequences. Tough new standards could force thrift stores throughout the country to close. We're going to get to that story in just a moment. In fact, want to go back, though, to Mayor Michael Bloomberg for more addressing the crowd there.
BLOOMBERG: Now, I do want to give Captain Sully one more token of our appreciation. We'd heard that you left a book on the plane, which you had borrowed from the library at Fresno State. And even though the library generously, you should know, replaced it in your name on its shelves so you have to pay for that. We didn't know whether you ever got a chance to finish the book.
CHESLEY "SULLY" SULLENBERGER, CAPTAIN, US AIRWAYS FLIGHT 1549: I did not.
BLOOMBERG: Well, that's good because we were able to find out the title, not from the library, but another source. And with our complements and gratitude and with no due date, I would like to present to you. It is called, just so you know, "Just Culture: Balancing Safety and Accountability" by Sidney Dekker. With that title, it sounds like you might have written this, so good luck.
OK, we'll come right over here. We have one more of the book.
COLLINS: All right. There's a very special book, obviously, to Captain Chesley Sullenberger. There you see getting one presented to him by our mayor, Michael Bloomberg, there in New York City, the ceremony that we have been watching. You see all of the cameras snapping their photos as the entire crew gets a key to the city.
Let's go back and listen to what more the mayor has to say.
BLOOMBERG: ... the Airline Pilots Association and Mike Flores and the Association of Flight Attendants.
MIKE FLORES, PRESIDENT, AFA-CWA US AIRWAYS: Thank you, Mr. Mayor.
(APPLAUSE)
Quite a tough act to follow. But my name is Mike Flores and I'm the president of the US Airways Chapter of the Association Of Flight Attendants,. And on behalf of the AFA and the US Airlines Pilots Association, we want to thank you and your staff for honoring this crew.
Equally important, we think is to thank all of the first responders that helped make the miracle on the Hudson possible. I personally worked with all of the crew members, and I know that their skill and experience led to the beginning of the event. But the landing was only the beginning of the story. And the skill and dedication of the first responders is what made the story happen.
So on behalf of AFA and USAFA and the crew, I'd like to thank the following - and if we leave anybody out, please accept our apologies: the New York City Police Department, NYPD; the Patrolman Benevolent Association, PBA; the Detective Endowment Association, DEA; the Captains Endowments Association; 56 Locals of District Council 37; the EMTs; the Port Authority; New York Transport Workers...
COLLINS: A little bit more thank yous all around here. That is the US Airways head of all Flight Attendants Association thanking the first responders as you see there. Obviously, everybody really worked together on that day. Such an incredible story that many people are still talking about and likely will for quite some time.
Again, we've been watching little snip-its here and there. Mayor Michael Bloomberg handing over the keys to the city to the crewmembers of US Airways Flight 1549.
(COMMERCIAL BREAK)
COLLINS: All right, we have been watching, very closely here, the key to the city ceremony that's been taking place in New York City's City Hall. You see Mayor Michael Bloomberg there. We just saw Captain Sullenberger during the break come before the microphones and say a very quick few words. Just want to remind you, you can catch him - oh, there he is again. Let's listen.
SULLENBERGER: ... I have flown several times as a passenger. And after - I have visited my colleagues in the cockpit in-flight, and after a brief few seconds of it being not as familiar as usual, it quickly felt right at home.
QUESTION: So you're comfortable getting back in?
Absolutely. I'm looking forward to returning to my profession.
QUESTION: Captain (OFF-MIKE)
BLOOMBERG: Why don't we get everybody up here? Why don't you stand around here? I think it would be easier to make sure everybody gets a chance to talk. The question, Captain, there's a question for you about - go ahead.
QUESTION: (OFF-MIKE)
SULLENBERGER: I think the question is, did I specifically pick that area because of the being in the vicinities of the boats? The answer is yes.
QUESTION: Were you surprised?
SULLENBERGER: I was very happily surprised at the quickness and the efficiency of the rescues. By the time I left the aircraft, there were already several boats around us beginning the rescues.
QUESTION: How will you see New York differently after this experience, Captain?
SULLENBERGER: It's even more beautiful than I imagined.
BLOOMBERG: Way to go. Why don't we get, maybe, ladies...
UNIDETIFIED MALE: Let's share the wealth a little bit.
