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Examining the Stimulus Package
Aired February 14, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: You're in the CNN NEWSROOM, the news is unfolding live on this Valentine's Day. Happy Valentine's Day everybody. It is Saturday, February 14th. I'm Betty Nguyen.
T.J. HOLMES, CNN ANCHOR: And hello to you all, I'm T.J. Holmes, the stimulus deal is done. So is the country going to get back to work soon, now, maybe?
NGUYEN: We'll go back to Buffalo, the site of those horrible -- the site of that horrible crash scene where the investigation has begun. We'll delve into that. You are in the CNN NEWSROOM so let's start with this. A whole lot of money, your money in fact. Washington is about to start its largest single spending spree in the country's history. 25 days into the Obama presidency, congress signs off on a $787 billion stimulus bill. Only three republicans in all of congress backed this colossal plan designed to get the economy going again. The package is about two-thirds spending and one-third tax cuts. Predictably, reaction was along party lines.
(BEGIN VIDEO CLIP)
SEN. HARRY REID, (D) MAJORITY LEADER: The most important piece of legislation I have worked on for the country, the country is in trouble. And we're so fortunate we were able to get it passed. It's going to give this country a shot in the arm.
(END OF VIDEO CLIP)
NGUYEN: President Obama is expected to sign the stimulus into law as early as Monday. He calls passage, a quote, major milestone to bring the country back from its worst financial crisis since the great depression.
HOLMES: So what is in this thing and what's in there for you? It's about 1,000 pages long. There's a little something there for just about everybody. And it may really sound little to you, most workers will get an extra $13 a week in your paycheck from a payroll tax break. College students and their parents can get a $2,500 tuition credit. And there's also an $8,000 credit for first-time home buyers if you buy your home by December 1. The new law will also spend $120 bill on infrastructure, that of course includes roads, bridges, things like that, also electric grids under that infrastructure umbrella.
There's also $100 billion for schools, about half of that money will pay teachers salaries in districts that have lost state aid. Also $19 billion to digitize health care records. Other odds and ends in there for you, Pell grants for college would increase to a maximum of $5,500. Also buy a car by the end of the year and you get to deduct the sales tax. If you're out of work the federal government will chip in on your cobra insurance, that's of course insurance that extended federal government programs extended to people who have lost their jobs.
Now once everything is up and running, you'll be able to follow stimulus spending on the web. The site is called recovery.gov. Joe Johns hopped on the internet.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): This is the biggest one- time spending bill ever, which means the potential is enormous to screw it up and lose track of billions.
DAVID WALKER, FORMER U.S. COMPTROLLER GENERAL: It's going to be a real challenge to be able to get all that money out and to have appropriate accountability for it.
JOHNS: The politicians who wrote the stimulus knew that, they give $180 million to beef up the federal inspectors general, according to the house appropriations committee. Another $25 million to the nonpartisan government accountability office which does some heavy duty auditing. They created a new accountability board to oversee this money and they require people who get the money to file reports on how they spend it. A good start, but the guy who used to run the GAO says that's not enough.
WALKER: And it's not just a matter of having, you know, additional transparency through the web, it's not just a matter of having additional people looking at it after the money has gone out. You need to have appropriate objectives, conditions and criteria that have to be met before the money goes out the door. Because once it goes out the door, it's too late.
JOHNS: Speaking of going out the door, when will taxpayers see that money? Some of it pretty quickly. Some road maintenance projects could start in 30 days because local jurisdictions can use existing crews with no heavy lifting, but that doesn't necessarily create new jobs. The $400 a person tax break will start kicking in before the end of the year says Bill Beach of the conservative Heritage Foundation.
UNIDENTIFIED MALE: You can get the money out of Washington very fast, people can adjust -- the IRS can adjust the IRS withholding tables.
JOHNS (on camera): But the tax cut works out to just about $13 a week on the average paycheck. Most of the money will kick in next year and will that translate into jobs? A few weeks ago the congressional budget office was saying it means 800,000 to 2.3 million jobs by the end of this year. But economist Bill Beach thinks it will create less than a million.
(Voice-over): Back when the Reagan administration infused billions for jobs, few jobs were created when the economy needed it most. The GAO said so too. BILL BEACH, HERITAGE FOUNDATION: You know, the surprising thing was despite the emergency it still took a few five years for the federal government to get all of the money into play.
JOHNS: This time around, much of the money will be spent by states which will have their own rules and timetables. So promises out of Washington don't always come true at least not right away. Joe Johns, CNN, Washington.
(END OF VIDEOTAPE)
NGUYEN: President Obama could sign the legislation as early as Monday and CNN's Elaine Quijano is at the White House for us this morning. Elaine, the president didn't get everything he wanted, but overall, he has to be pretty pleased with this.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Pretty pleased and as you noted, the president actually did want to have as a deadline Monday, Presidents Day, to have this legislation on his desk ready for him to sign into law and he is on track to do just that. The president also though at the same time in his weekly address is cautioning that this is really just the beginning of the process of turning the economy around. Nevertheless, he did tout this piece of legislation as being necessary to give the economy a much-needed boost.
(BEGIN VIDEO CLIP)
OBAMA: Congress has passed my economic recovery plan. An ambitious plan at a time we badly need it. It will save or create more than 3.5 million jobs over the next two years, ignite spending by businesses and consumers alike and lay a new foundation for our lasting economic growth and prosperity. This is a major milestone on our road to recovery. And I want to thank the members of congress who came together in common purpose to make it happen. Because they did, I will sign this legislation into law shortly. And we'll begin making the immediate investments necessary to put people back to work doing the work America needs done.
(END OF VIDEO CLIP)
QUIJANO: Now republicans though are highly skeptical that this plan will actually jump-start the economy. In the weekly GOP address, Senator Lisa Murkowski laid out how republicans will be watching closely to see how Washington spends this money.
(BEGIN VIDEO CLIP)
SEN. LISA MURKOWSKI, (R) ALASKA: If Americans can't be assured that these programs will work, they should at least be told what they're going to cost. Taxpayers need to know what Washington is doing with their money. And as republicans continue to pursue policies that strengthen our economy and create jobs, we will insist that taxpayers are not only protected but are also well informed.
(END OF VIDEO CLIP) QUIJANO: Now as we saw in Joe Johns' piece, the Obama administration is saying they plan to launch a website, recovery.gov in order for Americans to better track the money once it starts being spent. Nevertheless, republicans again, Betty, highly, highly skeptical of this plan. They wanted to see more tax cuts and they believe that this legislation just contains too much in the way of wasteful spending.
NGUYEN: And the president we're thinking may sign this as early as Monday. What is he doing over this long holiday weekend?
QUIJANO: Well, you know, that's a good question, no public events. I believe he's out right now perhaps to the gym at last check, but no public events planned in Chicago where the first family is right now. They'll all be returning here to Washington or at least the president will be returning here to Washington Monday afternoon so it's likely there could be a signing ceremony for the stimulus package Monday afternoon. If not, if they're not able to get all of the legislative details worked out that need to be in place before the president signs the bill, it could be pushed to Tuesday morning. But looks like right now they're aiming for Monday afternoon. Betty?
NGUYEN: That's what he said that he wanted it to be on his desk by Presidents Day. So we'll see if indeed he signs it by then. All right, Elaine Quijano live for us at the White House. Thank you Elaine.
QUIJANO: Sure.
HOLMES: Let's turn now to the investigation into the crash of flight 3407, of course it crashed right outside of Buffalo, New York. So much debate right now about exactly how it went down and why it went down the way it did. It went down almost in a nosedive some are guessing right now. Investigators are sifting through a lot of that rubble trying to figure this thing out. CNN's Jason Carroll with the story for us.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN CORRESPONDENT (voice-over): Early Friday, investigators from the National Transportation Safety Board recovered two clues that could help them answer the question of what caused the crash of Continental flight 3407. The plane's cockpit voice recorder and flight data recorder were found in excellent condition. Both discovered in the tail section of the turboprop, the only section of the plane remaining intact after it crashed into a home in Clarence Center, just outside Buffalo, New York. The voice recorder shows at 16,000 feet, the crew discussed problems with weather.
STEVE CHEALANDER, NTSB: They noticed that it was rather hazy and they requested air traffic control to allow them to descend to 12,000 feet.
CARROLL: The plane then descended to 11,000 feet on approach to Buffalo Niagara International Airport when the crew noticed another problem, ice.
CHEALANDER: The crew discussed significant ice buildup, ice on the windshield and leading edge of the wings.
CARROLL: According to the flight data recorder, the pilot activated the plane's deicing mechanism. The plane then lowered the landing gear that was about one minute before the end of the recording. Despite the weather, no sign of distress on the bombardier-8 Q400 on approach according to transmissions from air traffic control.
UNIDENTIFIED MALE: Colgan 34-7, approach.
UNIDENTIFIED MALE: Colgan 3407, Buffalo.
UNIDENTIFIED MALE: Colgan 34-7, now approach.
CARROLL: The plane disappeared from radar as traffic controllers call another plane to see if there was any sign of flight 3407.
UNIDENTIFIED MALE: Delta 1998, look off to your right side about five miles for a dash eight, should be 4300. Do you see anything there?
CARROLL: The flight data recorder indicates the plane went through a series of severe pitches and rolled from side to side. The crew tried to raise the gear and wing flaps before crashing around 10:20 p.m. into this house, killing a man inside and all 49 people on board.
UNIDENTIFIED MALE: As I got closer, you could start to smell the fire. It was really raging. It was a huge fire and I kept seeing nothing but the silhouettes of like 10 plus firefighters around all trying to extinguish it, trying to get crowd control and it was scary.
CARROLL: The plane was operated by Colgan Air and had been in service for just about a year.
PHILIP TRENARY, CEO, PINNACLE AIRLINES CORP. The aircraft is a new airplane, it's what we call a next generation turboprop, very, very modern aircraft that has had flawless service. So no indication there was any problems with the aircraft.
CARROLL: As for what caused the crash, the NTSB says it's still too early in the investigation to know for sure. Jason Carroll, CNN, Clarence Center, New York.
(END OF VIDEOTAPE)
HOLMES: You see some of those pictures there, some of that video about that big fire this thing caused. The crash, it was such an intense fire apparently that nobody could even get close to the scene for hours.
(BEGIN VIDEO CLIP)
DAVE BISSONETTE, EMERGENCY COORDINATOR: The scene has been made safe by the fire department, the Clarence Center Fire Department has completed fire operations there. They've done a great job, it was a stubborn fire in the latter part of yesterday afternoon that was finally accomplished. So the NTSB is now going through their investigative process, the ME's are all working through the rubble to identify the various parts and pieces and the remains have been extricated and they're being processed accordingly.
(END OF VIDEO CLIP)
HOLMES: That whole process is certainly going to take some time. CNN's Mary Snow in Clarence Center for us this morning. Mary, it's going to be a while before this community gets back to normal, if you will. But still, this as a matter of functionality, are they able to get back to their lives in such a way, people that live around that neighborhood, what's it like living and being around that neighborhood right now?
MARY SNOW, CNN CORRESPONDENT: T.J., there were families in 12 homes who had to be evacuated. The sheriff's department here is saying it will escort those families to their houses because they have really nothing with them. They can get necessary belongings, but then they are not allowed to stay there. They're being taken out of the area, it's unclear when they'll be able to return to their homes. Authorities said also because of the sharp nosedive that the plane took, that that is one of the reasons why it only damaged one home in that residential area which is about six miles outside of Buffalo's airport. In that home, amazingly, two women survived, 57-year-old Karen Welinsky and her daughter Jill, very tragically, Karen's husband Doug was killed in the crash. Karen Welinsky spoke to WBEN AM here in Buffalo telling what happened on Thursday night. She was sitting, watching television when the plane crashed into her home. Take a listen in her words of how she described it.
(BEGIN AUDIO CLIP)
VOICE OF KAREN WIELINSKY, HOME DESTROYED IN CRASH: I shouted first in case anybody was out there. And then just kind of pushed what was on me, part of that off and crawled out the hole. I had heard like, you know, a woman crying, when I came out of the hole. You know the back of the house was gone, the fire had started. I could see the wings of the plane, and Jill was over to the side, crying, of course, hysterical. To me it looked like the plane just came down in the middle of the house, unfortunately, that's where he was. He was a good person, loved his family.
(END OF AUDIO CLIP)
SNOW: Karen Wielinsky talking about her husband Doug who was inside the home as well and he was killed. T.J., we do expect to get more information, the NTSB is going to be holding a news conference this afternoon at 4:00 p.m. eastern time. T.J.?
HOLMES: We certainly will cover that live here on CNN. Mary Snow for us, thank you so much.
NGUYEN: There's a big step by the company at the center of that salmonella outbreak, they're calling it quits after disturbing discoveries at one of their peanut plants.
(COMMERCIAL BREAK)
NGUYEN: All right, so, on the road to financial recovery, they hope, GM and Chrysler are facing a deadline to prove that they can turn their money troubles around. The struggling automakers have to submit plans to the government on Tuesday that show they can be viable for the long-term. Now the plans are a condition of the $17.4 billion in federal loans the Bush administration approved back in December. The government could recall those loans if it doesn't deem those plans are up to snuff.
HOLMES: The peanut company at the heart of the nationwide salmonella scare is going out of business and it's happening as the Virginia based Peanut Corporation of America is facing new scrutiny. After inspectors found dead rats at one of its plants. Our Ed Lavendera filed this nasty report last night after the company filed for bankruptcy.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): The Peanut Corporation of America runs this processing plant in the small Texas panhandle town of Plainview. Three days ago health inspectors discovered several dead rats, excrement and bird feathers in a crawl space over an area where peanuts are handled. And preliminary tests in the plant also show the possible discovery of salmonella in some products. The plant is now closed indefinitely and the Texas Department of Health has ordered a recall of all the plants products dating back to when the plant opened four years ago.
UNIDENTIFIED MALE: This is simply outrageous.
LAVANDERA: The peanut plant operated unchecked in Texas for four years. Texas health officials say the Peanut Corporation of America never applied for a license to open here and because of that, health inspectors never checked it out, until a month ago when news of the salmonella outbreak was tracked to the company's Georgia plant. The head of the Peanut Corporation of America refused to answer questions from congressional investigators.
STEWART PARNELL, PRES., PEANUT CORPORATION OF AMERICA: I respectfully decline to answer your question based on the protection afforded me under the United States Constitution.
LAVANDERA: But two years ago, a member of the peanut growers association toured the Plainview plant and did not see any signs of filth.
SHELLY NUTT, TEXAS PEANUT GROUP: The plant was just immaculate, we walked in the door, we put on our hair nets, we put on the foot covers, the lab coats, we didn't touch the equipment, we didn't touch the peanuts, the floor was clean, the doors were sealed tight.
LAVANDERA: The Centers for Disease Control now reports that 636 people in 44 states have been sickened in the salmonella outbreak and that nine people have died.
(On camera): State health officials here in Texas say the Peanut Corporation of America could face heavy fines for operating without a license. Add that to a company that is already under federal investigation that could lead to criminal charges. Ed Lavendera, CNN, Dallas.
(END OF VIDEOTAPE)
NGUYEN: The digital TV switch is coming. You have heard of all the warnings, right? The government ordered a delay but that still may not keep your signal straight.
(COMMERCIAL BREAK)
HOLMES: All right, those rabbit ears on that TV have played out. You're going to have to get rid of that TV, folks, I'm sorry, but you're going to have to let go. Digital television is on its way. This is a good time for you to be thinking about getting a new TV. Hundreds of stations say they plan to shut down their analog signals come Tuesday. That means you won't be able to get the rabbit ears thing. You'll have to find another way to watch those shows of yours. Now even though the government has extended the deadline for stations to make the digital switch until June, broadcasters say it's too costly to keep broadcasting on those old signals until then. The Obama administration asked for the delay after the government ran out of money to give Americans coupons for converter boxes. So a good time right about now, I know you were worried.
NGUYEN: I was because I keep getting letters, every week I get a letter from my cable company saying you need to make the switch to like DirecTV, satellite television, whatever that is. But I have cable, do I really need to switch?
HOLMES: The satellite companies are trying to get your business, it sounds like.
NGUYEN: I was kind of worried they said come Tuesday you're done.
HOLMES: Reynolds, you hear this, she was really worried.
NGUYEN: I was, I was asking T.J. what should I do.
REYNOLDS WOLF, CNN METEOROLOGIST: What are you guys talking about? There's like a switchover? What do you mean? What are you talking about?
NGUYEN: Oh no. You're one of the ones that still has rabbit ears, aren't you?
WOLF: I've got the bunny ears with the tinfoil.
HOLMES: That's why when we came over to your house to watch the game that time, there was nothing but snow on the TV.
NGUYEN: Yeah, it kept going in and out.
HOMLES: You had the kids holding the antenna, it was ridiculous.
WOLF: But the hor d'oeuvres were good.
NGUYEN: That's all that matters, you know. WOLF: Absolutely. It makes all the difference, doesn't it? Now that switchover is coming folks, you've got to be ready for it.
(WEATHER REPORT)
NGUYEN: We're still talking about that trying to figure it out.
HOLMES: She's got something going on, we'll get this worked out for tomorrow.
NGUYEN: I hope my television doesn't conk out on me.
HOLMES: Reynolds, thank you buddy.
WOLF: Any time guys, it's a team effort.
HOLMES: Betty, if your TV does go out, maybe you can just sit up and read.
NGUYEN: The stimulus plan, right, that's 1100 pages, hey, that will be good for what, a month or two?
HOLMES: Eleven hundred pages in there, but is there anything in there for you? About $13. We'll explain. Stay here.
(COMMERCIAL BREAK)
BETTY NGUYEN, CNN ANCHOR: Well, it is half past the hour, here is what's happening right now, after a whole lot of contentious debate, the economic stimulus bill is a done deal, well almost. President Obama says he will sign it into law as early as Monday, but late last night, the senate approved the $787 billion bill, only three, you can count them on one hand, three republicans voted for it. President Obama says it will create or save between 3 million and 4 million jobs.
A two square mile area remains sealed off near Buffalo, New York as authorities search for clues to Thursday's deadly commuter plane crash. That crash killed 50 people when the plane went into a nosedive and then slammed into a house. Federal investigators say icing may have been a major factor in the crash.
T.J. HOLMES, CNN ANCHOR: Congress stripped billions of dollars in military spending from the final stimulus plan. That means the army may have to rethink some of its construction projects. Our pentagon correspondent Chris Lawrence looks at what's in and what's out.
(BEGIN VIDEOTAPE)
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): The military and veterans are getting billions less than what the stimulus package first proposed.
SEN. JOHN MCCAIN, (R) ARIZONA: The (INAUDIBLE) provides more funding for grants to provide high-speed internet to Americans, $7.2 billion than it does for military and VA and Veterans Affairs construction. LAWRENCE: It wasn't always that way, the house initially allocated $7 billion to those projects. The senate about the same. But the compromise cut it down to $4 billion. Senator James Inhoff says its unfathomable that only 1 percent of this bill goes towards defense spending. Pentagon officials say they're not disappointed because the stimulus money is separate from their budget.
UNIDENTIFIED MALE: For us anything helps.
LAWRENCE: Democrats argue the package adds billions for military hospitals, new homes and child care centers and $150 million to hire more people to process veteran's disability claims.
UNIDENTIFIED MALE: Money that otherwise would not have been spent on the VA will be because of the stimulus bill.
LAWRENCE: But some say with two expensive wars, it doesn't make sense to push projects that aren't even required to be the most needed.
WINSLOW WHEELER, CENTER FOR DEFENSE INFORMATION: When you start talking about rushing to the front, daycare centers and chapels and that kind of thing, you're not spending defense money very smartly.
LAWRENCE: Some republicans say the stimulus should have just accelerated the construction plans the pentagon already had scheduled.
SEN. KAY BAILEY HUTCHINSON, (R) TEXAS: We know it is money that we're going to spend anyway, it would be stimulative and it would be the right kind of spending.
LAWRENCE (on camera): So why was so much money cut out of the VA? Remember, the main goal of the stimulus is speed. And a source close to the negotiations tells us that with so much money already invested in veteran programs, money in the pipeline so to speak, there was a concern that the VA couldn't spend that much more money quickly. Chris Lawrence, CNN, the Pentagon.
(END OF VIDEOTAPE)
NGUYEN: The stimulus bill was tweaked and then trimmed as it made its way through the house and senate. Now it is a done deal, but what does it really mean for you. Our Josh Levs is here with a CNN money breakdown. That's the key, what does it mean for main street? When are we going to see the benefits of this?
JOSH LEVS: You know what, I think more people ask that about this bill than ask anything else. Right, I mean it's at the point now where they just want to know what it will actually boil down to. You can see here at CNN Money, covering it really closely. This right here, a story you can link to, how may affect your wallet. I have some graphics here that I can make it pretty simple. Let's start off with this first one because these are two of the biggest things for you to know, first of all, how will you save on taxes? It's a $400 tax credit per worker and then for those who don't work like retired people and some disabled people and others, you get a one-time payment of $250. Now let's go on to the next one, because this is part of a trying to stimulate the economy. They want you to buy a car, if you're going to buy a car, you'll be able to deduct state and local sales taxes. For first-time home buyers now, only the first time home buyers, there's a credit of up to $8,000. It used to be $7,500. So it's gone up $500. One more thing, I chose these two because whenever we ask you what concerns you in the economy, these are the two biggest things we hear. First of all paying for college. We'll show you here how will you get assistance in that? You'll get a credit of $2,500. That's a pretty big jump, it's up from $1,800. So if you're paying for a student to go to college, you get that extra $700 in a credit.
And one more thing, the health insurance for jobless people. This is one of the biggest concerns people have. How do you keep your health insurance? Cobra is so expensive. For a block of time, if you are laid off during a specific block of time, then the government would cover two thirds, 65 percent of your cobra premiums. I know it gets complicated. I encourage you to check out this story you can't miss it at cnnmoney.com. And while you're there guys, this is really cool, check this out, they have this new feature, where you can ask a question and the CNN Money team is going to answer it for you. This woman asked what a lot of people have been asking lately, she's asking if you took all that bailout money and broke it up among taxpayers across America, how much would each of us get? The CNN Money team did the math there, I know you can't see it but it's just under $10,000 each.
You can send in any question you have, yours might get chosen at cnnmoney.com. Hopefully, we put that all together, you'll be able to crunch the figures at home and see how you might actually pragmatically be helped by the stimulus bill. Guys?
NGUYEN: It is a good tool. Thank you for that Josh.
LEVS: Thanks.
HOLMES: Was ice to blame for that crash just outside of Buffalo? Ice has been the cause of deadly crashes in the past. Our special investigations unit taking a look. Stay with us.
(COMMERCIAL BREAK)
HOLMES: Just showing you a few of the faces of the victims who died in that crash just outside of Buffalo. You know of course 50 people died in that Continental commuter plane, it suddenly lost altitude and slammed into a suburban home.
NGUYEN: Want to show you another photograph, this one of Captain Marvin Renslow you see him right there with his family. In fact, his sister gave the media this picture. Officials have identified Captain Renslow as the pilot of Continental flight 3407. And speaking of that captain, his family is talking to the media. His sister described him as a real family man. She told CNN's Larry King that her brother just loved flying.
(BEGIN VIDEO CLIP) LARRY KING: What was he like?
SHIRLENE THESFELD, SISTER OF THE PILOT: He didn't change much. He was a great person. He was a wonderful father. He was very involved in his church and his community. He loved life, he loved sharing his life with his family and friends and involved them. He had a passion for flying. He'll be missed.
KING: How did you learn of this Shirlene?
THESFELD: My brother, Melvin called this morning, around 1:00 and informed us of the incident that Marvin was involved in. That there had been an accident.
(END OF VIDEO CLIP)
NGUYEN: Captain Renslow joined the company that operated the flight in 2005. Colgan Air says he had flown more than 3,000 hours with the airline.
HOLMES: The work continues at that crash site right now, the task right now is removing victims' remains from that site, also investigators trying to piece together pieces of that wreckage. It was such a big fire, a lot of the stuff has been destroyed.
NGUYEN: Absolutely. Aviation experts say it seems likely that ice on the wings played a role in that crash. Drew Griffin from CNN's special investigations unit takes a closer look.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT (voice-over): As investigators now focus on icing on flight 3407, Georgia Tech research scientist Jim Brooks says ice buildup on a wing can take control out of a pilot's hands.
JIM BROOKS, AEROSPACE RESEARCH SCIENTIST: The air is no longer flowing over that air flow as it was designed, it's just disrupted.
GRIFFIN: It would build up slowly, a freezing cold, aluminum skin aircraft suddenly flying into freezing rain and ice adhering first to the outer wings, then building. With the wings becoming heavier, losing their aerodynamic shape due to ice buildup, the plane would begin to lose lift literally sinking in mid air as it slows down. A pilot might not feel it, not see it, but the plane would start to drop. When enough lift is lost, the plane stalls and is now out of control, rolling to the side where the wing ice is heaviest then pitching into a dive. This eyewitness describes just that.
UNIDENTIFIED MALE: So it was pitched and it was headed down.
GRIFFIN: Brooks says to recover from a stall including an ice inflicted stall, a pilot would push the nose down, dive, and regain air flow.
BROOKS: What you have got to do is get that air speed back, to get that air speed back, what do you do? You lower that nose.
GRIFFIN: But at lower altitudes, there's little room to maneuver. There are two different deicing systems on the dash 8, electric heaters that heat air heading into the engine and along the leading edge of the plane's propellers. And a second system called boost that helps shed ice from the wing. Aircraft investigator John Ellis who works for a law firm that has sued over the issue says the boots are really an archaic system, like a rubber balloon inflating and deflating to push and crack away building ice.
TOM ELLIS, AIR CRASH INVESTIGATOR: You're talking about an aircraft that's certified to carry up to 78 people that's using pneumatic deicing booths of bladder technology from the 1930s.
GRIFFIN: In 1994, American Eagle flight 4184 crashed in Rose Lawn, Indiana. The finding, ice built up beyond the reach of the deice boot. 68 were killed and four years ago this week, Tricia Coffman's husband Dave was killed along with seven others when a Cessna citation executive plane crashed near Pueblo, Colorado in icing conditions.
TRICIA COFFMAN, HUSBAND KILLED IN 2005 CRASH: And I had hope that our accident would bring interest into icing that it wouldn't happen again, that nobody else would feel that because you want to feel like there was something significant that came from your loss.
GRIFFIN: Investigators blame the crew for not properly activating the deicing boots, blamed the system itself for not being automatic and also blamed the federal aviation administration's failure to establish adequate certification retirements for flights into icing conditions.
(On camera): The requirement, 15 years now in the making, would require all new airplanes to have ice detection systems that activate or alert pilots to activate ice protection systems. Why has it taken 15 years? An FAA spokesperson told us that the requirement is nearly done but just not done yet. Drew Griffin, CNN, Atlanta.
(END OF VIDEOTAPE)
NGUYEN: Yesterday in reporting on the possibility that ice build up may have played some role in the crash of Continental connection flight 3407, CNN erroneously identified some photos. We showed a high-speed photo sequence of a deicing system that we said was a pneumatic boot system of the type that would be in use on this type of plane. The photos we used were of a deicing system developed by NASA that's not currently in use on commercial aircraft. So we wanted to clear that up.
HOLMES: Well, Valentine's Day, a lot of people expecting gifts, chocolates, flowers, maybe even diamonds. Slow down on the diamonds all right, it's recession time.
NGUYEN: Why is that?
HOLMES: Fredericka? All right, yes, she's over there laughing like I want my diamonds.
NGUYEN: No she's not. Although they are nice.
HOLMES: They are nice, but you can't expect that right now. Tough times. It's all about love yes, as Fredericka says. We do have some Valentine's Day tips coming up for those of you who just can't pay for the diamonds right now.
NGUYEN: There are other things you can do, stay tuned.
(COMMERCIAL BREAK)
NGUYEN: All right, so just because we're in a recession doesn't mean you can't have a little romance on this Valentine's Day.
HOLMES: The romance might be a little different though. A lot of ways to still show that you care without spending a whole lot of money. We listened to some experts, this is what they recommend.
(BEGIN VIDEOTAPE)
HOLMES (voice-over): Roses, chocolates, and jewelry. All romantic gifts for your sweetie on Valentine's Day, but when money is tight, what's a guy to do? Author and dating coach Jula Jane says during these tough times guys will have to step out of the box and get creative with gift giving.
JULA JANE, DATING COACH: You can celebrate Valentine's Day and knock her socks off with simple things that don't cost a dime. Actually, a woman wants two things for Valentine's Day, she wants sentimentality and bragging rights.
HOLMES: But what do the ladies think.
UNIDENTIFIED FEMALE: I would appreciate a creative gift this year. It has to be something from the heart, you know?
UNIDENTIFIED FEMALE: It gives him a chance to show that he knows you more so than just doing the typical things that everybody tends to do.
UNIDENTIFIED FEMALE: Not cooking dinner is a real nice gift for me.
HOLMES: It's not about how much you spend, Jane says, but the thought behind the gift that counts. She offers these tips, start her morning with breakfast in bed, run her a bubble bath complete with candles and music. Make a picnic on the living room floor. Write a handwritten love letter or secretly leave a love note on the mirror in red lipstick. Just don't leave it to her to clean the mirror. Restaurants are always an option especially if you can find one like this where owners have reduced prices for meals this year.
RICK MOORE, VININGS INN RESTAURANT OWNER: You have to pay attention to the consumer. They're still going to go out, but they're looking harder. They're not going to spend on high-end wines and champagnes like they were. They're not going to spend on some of the more exotic, you know, lobsters and filets. People are backing off some. We're trying to keep our menus where it's approachable.
HOLMES: Or if you don't have a sweetheart, you can always pamper yourself.
UNIDENTIFIED MALE: I would like to treat myself to something special. Maybe a bubble bath, maybe some candlelight, I'm going to get the big box of chocolates because I'll just treat myself.
HOLMES: Diamonds may be a girl's best friend but Jane says nothing is better than the gift of time.
JANE: If you do these really creative things, she won't have time to think about where's my bling bling. She might think about it a week later.
(END OF VIDEOTAPE)
NGUYEN: She will think about it.
HOLMES: I don't even want to talk about it.
FREDERICKA WHITFIELD, CNN ANCHOR: Really, you want to (INAUDIBLE) --
HOLMES: I've been dealing with this one all morning.
NGUYEN: The note written in lipstick on a mirror, someone will have to clean that up, you know? And that's hard to get off.
HOLMES: Like (INAUDIBLE) says, that one right there.
WHITFIELD: I'm glad you brought it up because I was going to and then I thought, I'd better not.
HOLMES: All right, yes, please.
NGUYEN: T.J. is boycotting the day altogether.
WHITFIELD: Oh, no.
HOLMES: It's not a boycott, it's just, you should not be forced.
WHITFIELD: But you're wearing red.
HOLMES: It's not a boycott -- see?
WHITFIELD: Happy love day, everybody.
HOLMES: Yeah.
NGUYEN: Share the love.
HOLMES: Can you feel it? Yeah, hello, Fredericka, how are you?
WHITFIELD: Hello. You really want me to change the subject.
HOLMES: Go right ahead.
WHITFIELD: Folks have been pretty obsessed with one young lady out of California, the mother of the octuplets. Some folks have some pretty strong views about her lifestyle choices, the birth of her babies, etcetera. But now apparently it's becoming a legal matter, not just for her because there are some who say, wait a minute, now that there will be possibly public assistance, can we contest this in court? But her doctor is also seeing some challenges that may go the route of the legal way. Did he implant too many embryos and then something that everyone can relate to in these tough economic times. We're asking that you send us e-mails about how you're being rather inventive about pinching pennies and maybe you want to ask a few experts a few things about your personal finance. We'll have them on tap as well throughout the day, but especially at 4:00 eastern hour, we'll have some experts on tap to answer some of your questions so bring them on. E-mail us at weekends@cnn.com.
NGUYEN: That's going to lead to some good information people with their tips and then the experts weigh in as well.
WHITFIELD: You can't get enough of some advice on what to do about your money. People are losing their jobs. They're losing their homes. How do you pinch the pennies and how do you try to stretch that dollar.
HOLMES: Stuff people could use.
NGUYEN: Yeah, if they have a little bit of savings, what do you do with that? What's the best place to get more bang for your buck.
WHITFIELD: Exactly.
NGUYEN: All right Fred, looking forward to it.
WHITFIELD: You can join us in the 4:00 hour too, stick around.
NGUYEN: I'll be online and watching and taking down tips.
HOLMES: Thank you.
NGUYEN: You know, the news is bad and the budget is tight. We've been talking about it, but someone is actually doing quite well during these tough times.
(COMMERCIAL BREAK)
NGUYEN: This is a sweet oasis in a sea of empty store windows. Despite the economy business is booming at a chocolate shop in the Los Angeles area.
HOLMES: Yes, a little Valentine's Day good news from KCAL reporter Amy Johnson.
(BEGIN VIDEOTAPE)
AMY JOHNSON, KCAL REPORTER (voice-over): Empty storefronts, tough economic times have taken a toll on many Ventura businesses on Main Street, but sweet success is still found at Trufflehound's Fine Chocolates. CLAUDIA GILMAN, TRUFFLEHOUND'S FINE CHOCOLATES: You feel really bad and there's a little bit of guilt in that I am doing well. You do feel kind of bad, sad, especially for local businesses.
JOHNSON: Claudia Gilman, co-owner of Trufflehound's Fine Chocolates says business is good. She's expecting a 10 to 15 percent increase this week alone despite other luxury store struggles.
GILMAN: You can buy just a little bit and have that pleasure and you're not spending a lot of money, but you are treating yourself to something special.
JOHNSON: She's not alone. Experts say chocolate sales are up around the country.
KRYSTI KRANZLER, CUSTOMER: I think it's because it's almost like an addiction. It is so good. I have to have chocolate. Krysti Kranzler and her two young daughters enjoy a sweet treat. She understands why in the midst of a down economy chocolate still sells.
KRANZLER: It relaxes you. It's something that you need to kind of settle down or if you've had a stressful day or whatever.
JOHNSON (on camera): While Valentine's Day is good business for any chocolate store, Gilman says it's not just the holiday that seems to be helping.
GILMAN: For a lot of my customers they made a point of saying that they wanted to come to us so that we stayed in business. I've been here 13 years so I have really loyal customers, and I really appreciate that.
JOHNSON (voice-over): Your sweetheart just may appreciate a sweet treat this Valentine's Day. In Ventura, Amy Johnson, KCAL 9 News.
(END OF VIDEOTAPE)
NGUYEN: She has that all over her face.
HOLMES: Are you ok with chocolates though?
NGUYEN: Chocolates are great.
HOLMES: I know you're anti-teddy bear.
NGUYEN: Teddy bears are great if you're 10, 13.
HOLMES: It's a gesture.
NGUYEN: I know, I know, I'm speaking for me. Fred, do you like teddy bears on Valentine's Day?
WHITFIELD: I like teddy bears, I like chocolate, cards all that stuff. Any display of love is good for me.
NGUYEN: I don't know, I'm not arguing with her. HOLMES: Fredricka, let us go. We're going to continue this all afternoon.
WHITFIELD: This can go on for another hour. I'll just hand the NEWSROOM over to you. You guys can talk valentine's stuff.
HOLMES: No, you don't want that.
WHITFIELD: Have a great day.
NGUYEN: You too.
HOLMES: All right, Fredricka.
