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Watching Wall Street; General Motors, Chrysler Unveil Restructuring Plans; $787 Billion Pen Stroke

Aired February 17, 2009 - 10:59   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Tuesday February 17th, and here are the top stories this hour in the CNN NEWSROOM.

GM and Chrysler turn over their turnaround plans to Washington today. Will the roadmaps to the future lead to more taxpayer loans?

Let the spending spree begin. The president set to sign the $787 billion stimulus bill today. Then what? We follow the money.

A half-century later, a son of a civil rights icon follows his father's footsteps to India to pay homage to Gandhi.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

So let's dive right into the latest economic news out this morning, which includes a multimillion-dollar deal, a bankruptcy filing, and a mediocre earnings report, all from some of the nation's most well-known companies.

Susan Lisovicz is at the New York Stock Exchange with more.

And oh, by the way, Susan, did we mention what was happening with the Dow this morning?

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Yes, Tony, the Dow is testing its low of the bear market, basically getting, you know, very close, frightening close to 12 -- 12? Boy, it's been a long time since we've been at 12,000 -- 7,552. Right now we're at 7604.

And basically, I mean, yes, there is a lot of concerns about whether the stimulus plan will stimulate the economy, the lack of details over TARP, the details that we're supposed to get tomorrow on a plan to help out the troubled mortgage market, the concerns about GM and Chrysler. And what you're seeing in the meantime is a rout in the stock market. There are 2,700 stocks trading to the downside at the New York Stock Exchange right now, and only 200 -- a little bit more than 200 that are trading to the upside.

Some details with specific companies. Liberty Media coming to the rescue of Sirius XM, saving the satellite radio company from a likely bankruptcy filing. Liberty will invest more than $500 million in Sirius in exchange for both stock and seats on its board of directors. Another troubled company, we know the name here. Trump Entertainment Resorts filing for bankruptcy protection for a third time. The move widely expected.

The company -- well, hit hard by the ongoing recession, as well as a mountain of debt. Donald Trump and his daughter Ivanka resigned from the Atlantic City casino firm's board late last week after growing frustrated with bondholders. Trump, in typical fashion, said the company represents less than one percent of his net worth. And that his investment in it is "worthless."

Meanwhile, Wal-Mart. Wal-Mart has been a real aberration, Tony, in the retail, the very troubled retail sector. It has reported money, profit, you know, in its, you know, month after month. It did see its profit for the fourth quarter fall, but it recorded record sales.

The stronger U.S. dollar hurt its sales overseas, but a lot of folks here are going to Wal-Mart. About half of its revenue comes from food, and people are buying essentials like food.

Wal-Mart is the only Dow 30 stock that is higher. It's up three percent. But the overall market is down about three percent. The Dow, the Nasdaq, and the S&P 500.

The blue chips right now, down 243 points at the low. We're down nearly 300 points, and as I said, it got real close to the low that reached last November.

HARRIS: And Susan, can I push you on something?

LISOVICZ: Yes.

HARRIS: I know I sent you a note earlier and you sent a note back, and I didn't get an opportunity to read your response. And my question is -- and I don't want to suggest that Wall Street is operating in an alternate universe. Sometimes it feels that way because...

LISOVICZ: Well, it's been accused of that and much more, Tony.

HARRIS: That's right. We all have money in our 401(k)s, and we need the markets to work for us. But I'm sort of curious, is the kind of stimulus spending on infrastructure and modernizing the schools, is that the kind of stimulus the markets are even interested in?

LISOVICZ: Yes. Investors are very interested in job creation, and I think that's what you're talking about, as these shovel-ready projects that would create jobs.

In the meantime, you know, of course it's concerns about the banking sector, because as long as credit remains tight and banks remain on the ropes, you're going to have real problems with capital lending to consumers and corporations alike. The whole thing is of interest. The problem is, is that the economy has been -- the economy has been in a recession for more than a year now. These things take time.

HARRIS: Yes. Good point.

LISOVICZ: You know, there is a lack of clarity on TARP II, and the market has expressed that for days now. And with the stimulus plan, well, there's a lot of hand-wringing over something that's a thousand pages or more. And, you know, some of the things that investors and analysts have said is, you know, there are concerns that, well, it's not quite the shock and awe that was promised.

HARRIS: Right.

LISOVICZ: And, you know, it's going to take time. All of this is going to take time.

In the meantime, you get daily examples of the kind of distress that we're seeing, including yesterday, when the markets are closed. The world's second biggest economy, Japan, saw its GDP -- annual GDP decline 12.7 percent.

HARRIS: Ouch.

OK, Susan. Thank you. Appreciate it.

LISOVICZ: You're welcome.

HARRIS: You know, GM and Chrysler are unveiling new, sleek models today. We're not talking about cars, but business blueprints. The plans will cut jobs, benefits and brands, all to keep taxpayer loans flowing.

CNN Business Correspondent Stephanie Elam is in New York.

Stephanie, good to see you.

What is it exactly that the government wants to see in GM and Chrysler's plans for viability?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hi, Tony.

Yes, well, today is the day of reckoning for General Motors and Chrysler. And we do expect to hear the details of their turnaround plans later today.

Those plans, if they don't prove viability, then the U.S. government could actually recall the loans. So this is important.

So far, Chrysler has gotten $4 billion. General Motors had received $13.4 billion, but will get an additional $4 billion from the U.S. government today. That will fulfill the Bush administration's agreement to help GM restructure -- or its restructuring efforts overall.

Now, in a letter to the heads of GM and Chrysler, Speaker of the House Nancy Pelosi and Chairman of the House Financial Services Committee Barney Frank said they want to know the car company's plan for long-term viability. Also, for insuring stakeholders' share equally in the industry's turnaround, as well as their commitment to protecting benefits. And beyond that, the House wants to see a plan that protects taxpayers while ensuring that they benefit as conditions improve. Pelosi and Frank want the automakers to also commit to meeting or beating fuel efficiencies requirements, as well -- Tony.

HARRIS: Yes. And Susan was good to remind us just a moment ago we didn't get into the situation overnight, and we're not going to get out of it overnight. But it is interesting to note. Are we aware of what kinds of actions have been taken so far by the carmakers to turn things around?

ELAM: Yes, definitely. And you know, that's one of the things that we've been looking into.

We have been hearing them say that, hey, they may get rid of some of their brands. Like you're saying, GM might say, you know, what Pontiac, Saab, Hummer, all these brands might go by the wayside. They're also looking for concessions coming out of the United Auto Workers Union, which looking to maybe give up some of their benefits moving forward, but making sure that still their retirement is insured. And looking for concessions when it comes to their debt. Perhaps the people who are holding their debt are willing to take on payments later so that they can get back on their feet.

Those are some of the things that we have been looking at these brands doing, these companies doing, so that they can stay viable, streamline their operations, and actually prove that they can be viable to go forward.

HARRIS: Appreciate it, Stephanie. Thank you.

ELAM: Sure.

HARRIS: All right. GM's plan could be the end of the road for several iconic brand names and some of the dealerships that sell them.

Let's go inside the showroom right now with CNN's Richard Roth at a GM dealership in Manhattan this morning.

Where -- Richard, look, the man who owns that dealership where you are right now admits there are some tough decisions ahead for the industry.

RICHARD ROTH, CNN CORRESPONDENT: Yes. They say they had a very good weekend on presidents' weekend here. General Motors, of course, has to justify to the U.S. government why it needs $13 billion in loans. Chrysler also has similar issues.

With us now is one of the salesmen here at the Potamkin Cadillac dealership, Arvind Singhal.

Why should the government give $13 billion to General Motors?

ARVIND SINGHAL, CAR SALESMAN: In order for us to get out of this situation, we do require this help. And I feel, strongly believe, that GM is making better products than ever before. So in order for us to survive, in order for us to be very competitive, we do deserve this loan.

ROTH: What do you have to do now to draw customers in? How are you approaching them? Give me your best sales pitch to someone who wants to buy a car in these troubled times.

SINGHAL: Well, there is no ideal sales pitch, so to speak. GM is doing their part by offering super incentives and making better products. So it's -- as long as government helps us, we're able to do our job and sell more cars.

ROTH: There were mistakes made by General Motors. They're talking about dumping some brands. What do you think should be done?

SINGHAL: That's right. The restructuring is very important, and we are seriously considering restructuring our product portfolio. That will only streamline our profitability. That is required, because we need to make certain changes based on demographics of the people.

ROTH: Now, the big issue I'm hearing here is credit. We've heard that elsewhere, but customers who can't get financing, even from General Motors financing, to buy cars, is that correct?

SINGHAL: That is correct. Leasing is a large part of our portfolio, and leasing is not being offered by General Motors. Therefore, here in Northeast, 70 to 80 percent of our portfolio's leased. So as long as they come back with it, we can be back in business, as long as credit is provided to individuals.

ROTH: GM going to survive?

SINGHAL: You bet.

ROTH: All right. Arvind Singhal, I don't really bet. I don't like wagering.

Thank you very much.

One of the main salesmen here at Potamkin Cadillac.

General Motors looking to present the U.S. government with more plans for restructuring today. It still has issues with unions, and it's a long way to the end.

Tony, back to you.

HARRIS: OK. Richard Roth for us.

Richard, thank you.

Walk into a car dealership, walk out with peace of mind and a new ride. One automaker sees sales surge by offering a little assurance. That story, just a few minutes away.

(BEGIN VIDEO CLIP)

CHARMAINE NYGAARD, IREPORTER: Everything we save is taxed. Social Security is taxed, savings are taxed, capital gains are taxed, retirement is taxed. We need some tax cuts. And the amount that we are allowed to write off of our tax this year is only $3,000.

One of the issues you ran on was that you were going to increase that to probably $8,000. Please, do that for this year and probably next year.

(END VIDEO CLIP)

HARRIS: Wow. On the soapbox, a CNN iReporter's appeal to the president, cut taxes to help ease the country's financial crisis.

President Obama just hours away from signing $787 billion worth of tax cuts and spending. He is hoping the economic stimulus plan will help resuscitate an economy in critical condition.

White House Correspondent Dan Lothian live now with details.

Dan, good morning to you.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Good morning, Tony.

HARRIS: Hey Dan, you know, today's signing ceremony in Denver, the events in Florida and Indiana last week -- I think there was one more in Illinois.

LOTHIAN: Right.

HARRIS: Is this a sign of things to come, this president taking big initiatives right to the American people?

LOTHIAN: It really is. And not just big initiatives.

He really wants to get out there in front of the American people. The White House has indicated that this president plans to take a road trip at least once a week. And as you pointed out, he was in Ft. Myers, Florida for that town hall meeting. Also in Elkhart, Indiana, a town hall meeting there, and got out to the Caterpillar plant in east Peoria, Illinois.

And the White House believes that he is better at selling his ideas when he can get outside of Washington. And that's in part why he is headed out to Colorado today to sign the stimulus bill ow there. But also, there's another reason.

They want to highlight some of the jobs that they think will be created by the stimulus bill. In particular, green jobs. You know the president has been talking so much about that. And the Colorado area, certainly in the Denver area, there are some of these companies that make solar panels. And those are the kinds of things that the White House wants to focus on, and that's the reason they're headed out there today to sign this -- Tony.

HARRIS: All right. Dan Lothian for us at the White House.

Dan, appreciate it. Thank you.

And we will have live coverage of President Obama's signing ceremony, signing this massive stimulus bill into law, right here on CNN. That's scheduled for 2:40 Eastern. That's 11:40 Pacific.

California getting hit hard. Severe budget cuts and severe weather. We are bringing you the information you need to know.

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UNIDENTIFIED FEMALE: It was very scary, because we were driving an RV, and the wind was rocking it back and forth, and rain is coming straight at us. There's snow and ice all on the road.

(END VIDEO CLIP)

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HARRIS: Take a look at the Big Board, New York Stock Exchange. This is a story we're going to be following all morning long here. What a rocky start for Nasdaq, down 51.

Is that what you mentioned just a moment ago, Margie (ph)?

All right. Nasdaq down 51, as you can see. And the Dow down 243 points. And believe it or not, that is a bit of a bounce back off of session lows.

OK. A story we'll be following for you throughout the day, right here in the CNN NEWSROOM.

And Dow stocks, for a while they were flirting with 2008's low mark. But right now, the blue chips again down more than 240 points. The Dow set its low for 2008 on November 20th at 7,552. So something we'll be watching throughout the day.

California is mailing out 20,000 notices to state workers today, warning them they may be out of a job soon. It's because lawmakers can't agree on a state budget, a crisis that hinges on a single vote.

CNN's Dan Simon is in Sacramento.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT: Tony, California lawmakers trying to come up with a budget agreement, trying to erase that $42 billion deficit. And when you look at corporate America and you see these layoffs, pretty much on an everyday basis, well, those layoffs could soon be coming to state government in Sacramento. This is a full-blown crisis, no question about it, in Sacramento, California. And how did we reach this point? Well, you have this astronomical budget and lawmakers unable to reach a compromise.

But at this point, all they need is one Republican vote. But Republicans, by and large, are opposed to this budget deal because it contains $14 billion in tax increases, and they fear that possibly if they vote for this measure, it will cost them at the polls at re- election time.

Now, we should look at this 20,000 number and sort of put it in perspective. It doesn't mean that automatically, 20,000 state workers are going to be left unemployed. What it does mean is that they should prepare for that eventuality. The target number is said to be about 10,000, but nonetheless, they have gone ahead and sent out these pink slips to 20,000 workers, warning them that they could possibly lose their job.

When you look back at the process and you wonder, how did California reach this point, how did they get to that $42 billion deficit, well you want to consider this -- the state unemployment rate is at 9.3 percent, 2 points above the national average. That has meant a huge reduction in income taxes for the state. And that is has created a tremendous ripple, and that's why now you're seeing another ripple with these potential layoffs.

Tony, back to you.

(END VIDEOTAPE)

HARRIS: OK, Dan. Appreciate it. Thank you.

Living in a world without violence, it is a timeless message that is still being spread around the globe.

(COMMERCIAL BREAK)

HARRIS: From different worlds, but sharing a similar path -- Martin Luther King Jr. and Gandhi. Our Sara Sidner making the connection in New Delhi.

Sara, great to see you.

How did Martin Luther King III describe his trip to India?

SARA SIDNER, CNN CORRESPONDENT: Well, I'll let you know. You know, 50 years ago this month, Dr. Martin Luther King Jr. came to this country on what he called a pilgrimage to try to better understand the teachings and methods of Mahatma Gandhi. Today and this week, his son came, and he followed in his father's and Gandhi's footsteps.

(BEGIN VIDEOTAPE)

SIDNER (voice-over): Mahatma Gandhi and Dr. Martin Luther King Jr. led a people to freedom. Thousands of miles apart, their method to achieve that goal was strikingly similar. One of the men who walked alongside King during the civil rights movement says there is a simple explanation for that.

UNIDENTIFIED MALE: We refer to Gandhi, we study Gandhi. Dr. King studied Gandhi. We studied the teaching of a path of resistance.

SIDNER: In 1959, Dr. King made a pilgrimage to India to further understand Gandhi's message. Fifty years later, Dr. King's son is retracing his father's footsteps to celebrate the anniversary with a delegation of civil rights leaders from the U.S.

Martin Luther King III honors Gandhi by laying a wreath at Gandhi's memorial in Delhi. Both men of peace were killed in the most violent of ways, but their message lives on.

MARTIN LUTHER KING III, SON OF MARTIN LUTHER KING JR.: My dad used to say that violence is the language of the unheard. For so long, we, in the world community, disallowed people to express their points of view.

SIDNER (on camera): The movement, King says, has made some significant advances. For example, the United States is celebrating its first African-American president, and India has been celebrating its independence for more than 60 years now. But civil rights leaders caution, the struggle isn't over. And they say there are some of the same old sights that persist.

UNIDENTIFIED MALE: Gandhi died because he was trying to get India and Pakistan to live together as brothers. Gandhi's message would be, can India take responsibility for helping Pakistan to develop?

SIDNER (voice-over): The message of this delegation is pulled straight from the late Dr. King. "It's no longer a choice between violence and nonviolence in this world. It's nonviolence or nonexistence."

(END VIDEOTAPE)

SIDNER: The visit to New Delhi culminated in a star-studded concert with Grammy award winners Chaka Khan, George Duke, and Herbie Hancock, among others -- Tony.

HARRIS: Wow. That's pretty sensational.

Sara, how did Indians in New Delhi respond to King's visit?

SIDNER: You know, they were very, very excited, but also quite proud of Mahatma Gandhi, and quite proud that his teachings had such an impact on Dr. King and on the world as a whole -- Tony.

HARRIS: All right. Sara Sidner for us in New Delhi.

Sara, great to see you. Thank you.

President Obama signing the Recovery and Reinvestment Act this afternoon. We will bring you the ceremony live. But first, we will show you how to follow the money. (COMMERCIAL BREAK)

HARRIS: Saving money to save yourself during this economic crisis. Personal finance expert -- personal finance expert Suze Orman says she is encouraged to see Americans putting more money away these days. She was a guest on CNN's "LARRY KING LIVE" last night.

(BEGIN VIDEO CLIP)

LARRY KING, HOST, "LARRY KING LIVE": The U.S. savings rate was 0.8 percent last August, jumped to 3.6 percent in December, even though the average income was the same, maybe a little lower. Is that a good sign?

SUZE ORMAN, PERSONAL FINANCE EXPERT: I think it is a great sign. You know forever I've been on this campaign of, America, we have got to increase the savings rate. Save yourself.

You know I created that savings account where with -- you know, if you put in $100 every month, at the end of 12 months I'll give you $100. Go to saveyourself.com, everybody. Be paid to save.

If you don't have a good savings rate and something happens, where are you going to go? That's when you all of a sudden stop putting things on your credit card that you can't do anymore. That's when you, then, start to become an aid - where you're asking the state to aid you, food stamps and everything. So if you have savings and something goes wrong, you will be able to save yourself.

(END VIDEO CLIP)

HARRIS: Love it. Orman says she has always been against people spending money they don't have.

So, the $787 billion for the stimulus, where will it come from, and how exactly will it get to you? Our Josh Levs is here to trace us through the steps.

I love this; "Schoolhouse Rock" style. Take it away, Josh.

JOSH LEVS, CNN CORRESPONDENT: Check it out, Tony. Dollars are falling off my head.

This is all there is to it, right? I mean, Uncle Sam is throwing all this cash up in the air and everybody in America can reach up and catch it. It's like a good day at the casino.

HARRIS: If only it were that simple.

LEVS: If only; I know. Let's go to the next screen. I want to show everyone how this actually works, because as you know, we're a nation in massive debt as it is. And if we're going to have any money to use in the $787 billion, we've got to raise it.

So, this right here, is the idea. Here you got the U.S. Treasury, right? In order to raise this money, they sell bonds at auction. And here are the people who buy those auctions, the U.S. public that will buy them at auction. Also, foreign governments owned a lot of the debt. This is why we say we're often very indebted to other nations, because we sell these bonds, U.S. public buys them, so do foreign governments, and that's where all this money comes from.

Keep in mind, we pay interest on all these bonds and this is true whether we're talking about spending or tax cuts, because either way, the government has to make up the money that it's tossing out there.

All right, let's go to the next screen. Here is how that money then gets to you. The U.S. Treasury gets it, and Tony, they disburse it to places all over the country in order to fund these kinds of projects that we're hearing about are going to end up as part of this stimulus.

Now, one more screen. I'm just choosing one random example.

HARRIS: OK.

LEVS: We decided to go with Texas, because why not? Everybody loves Texas. OK? So, for example, Texas Department of Transportation will get some of that money. That's how it gets funneled to them. They, then, for example, will use it to pay for workers too, whatever they're doing here - fix a road, work on a bridge, whatever the project is. That is the step by step - now, most people are going to look at this and say, wait a second, I'm not a worker. How am I getting a piece of that?

That's when we get to this last screen here, which you keep hearing about, which is an extra 15 bucks in your paycheck. Now, here is where this one comes from. Part of what they're doing is adding tax cuts, as you know. And if you make $75,000 or less per year, you're going to end up with about a $400 tax credit. A $400 tax credit which will come out - most people, Tony - to about $15 extra per paycheck.

HARRIS: OK.

LEVS: So that's how it shows up. It starts all the way at the beginning, selling this stuff at auction. Works its way through to you that way. And in the end, Tony, that is how you, in your own little way, catch a little piece of that cash from Uncle Sam.

HARRIS: Awesome. And ultimately, look, this could cause more than a trillion dollars when you add it all up.

LEVS: More than a trillion. Yes, a lot of people don't realize that. You know, what we were seeing before, selling those bonds, about $787 billion for the plan, but you have to keep in mind that we pay interest on all of that. And even the Financial Budget Office has at this point said, when you factor in the interest, easily more than a trillion dollars for what's happening here.

So this is one benefit. We'll see others in the short term. Ultimately, how much it will cost depends on time.

HARRIS: Good stuff, Josh. Appreciate it. Thank you.

LEVS: Thanks, Tony.

HARRIS: All right In the next hour in the CNN NEWSROOM, we will take you inside the $787 billion stimulus debate. Which strategies worked? Which ones failed? We will talk live with Melody Barnes, director of the White House Domestic Policy Council.

You know, it might seem reasonable that jobs created by the stimulus should go to workers who are in this country legally. But an extension of a program that verifies the status of workers was booted from the bill. The mystery is, why?

Bill Tucker looks for answers.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Somewhere between the House and the Senate, E-Verify disappeared from the economic stimulus plan.

UNIDENTIFIED SENATOR: Now, let me ask my colleagues, is it the desire of the members of this body that the stimulus money to create jobs, that those jobs should be given to people illegally in the country?

TUCKER: E-Verify is an electronic database run by the Department of Homeland Security that allows employers to check to see if their newly-hired employees are legally eligible to work in the U.S. Not everyone was upset. Groups like the ACLU and the U.S. Chamber of Commerce openly and vocally opposed the E-Verify program. They were pleased the program was cut, calling it expensive, bureaucratic and inaccurate. Yet, no politician seems to want to take credit for stripping it out of the bill. The Congressional Hispanic Caucus has sent a letter to the congressional leadership opposing E-Verify, but efforts to reach them for comment or clarification were unsuccessful. Some politicians tried to act like they would support it, even if they didn't.

One key Senator sounded almost apologetic to Senator Sessions for not including it.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: ... it's a good idea. It got dropped, or it didn't get a chance to offer it, I think was the case. I know how he feels.

TUCKER: E-Verify is free to employers, and claims an accuracy rate of 99.6 percent. The critics say that's not good enough; yet supporters highlight it.

KRIS KOBACH, IMMIGRATION ATTORNEY: The accuracy argument is a complete red herring. This is the most accurate database and most effective and efficient program that the United States has ever assembled; indeed, that any government has ever assembled. It's ironic that one time when the federal government gets it right and has something that's really, really working, some people in Congress are trying to kill it.

TUCKER: Other expressed reasons for opposition include that it slows the hiring process. But on the E-Verify website, it clearly noted that, "The earliest the employer may initiate a query is after an individual accepts an offer of employment."

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

HARRIS: Layoffs, foreclosures, uncertainty. Aren't we all looking for a little assurance these days? One small car maker is offering it with a unique sales pitch that is actually driving an impressive surge.

CNN's Maggie Lake explains.

(BEGIN VIDEOTAPE)

PEOPLE SHOUTING: Hyundai! Hyundai! Hyundai!

MAGGIE LAKE, CNN CORRESPONDENT (voice-over): Hyundai's on the lips of a lot of people these days. The South Korean automaker spent almost $10 million running ads like these in the Super Bowl, while most cash-strapped rivals spent nothing. The spot's helping promote Hyundai's new "Assurance Program": Lose your job, and in most cases, return your car at no cost.

Dealers like Frank Valanzola in Jersey City, New Jersey, say the promotion is helping move cars off the lot.

FRANK VALANZOLA, HYUNDAI DEALER: And this gives them the peace of mind, knowing they're not going to be saddled with a loan if they, you know, get laid off.

LAKE (on camera): You think it's the deciding factor for people? I mean, are they sort of interested in the car, but they're just afraid to pull the trigger? And does that make the difference for them?

VALANZOLA: Well, I honestly think so. If it comes down to Hyundai and another brand, this could be the deciding factor for them.

LAKE (voice-over): There's no guarantee rivals won't offer similar plans, but for now, Hyundai seems to be in a stronger spot than the competition. While most big names reported plunging sales in January, Hyundai saw U.S. sales jump of 14 percent, the largest year- over-year increase for any automaker in almost a year. A small but sweet victory for a company with a hard to pronounce name that spent years fighting to be taken seriously in the U.S.

But auto watchers say Hyundai still faces a challenging environment.

CHRIS ISIDORE, CNNMONEY.COM: When you have a relatively small part of the market share, it doesn't take much of an increase to show a 14 percent increase. They could certainly grow that, but no one is going to grow too much in this market. There are some projections that we could be staying near these low levels for the rest of this year, maybe into next year. Worst-case scenario, for four years.

LAKE: Times may be tough, but Hyundai believes it can keep the momentum going.

Maggie Lake, CNN, New York.

(END VIDEOTAPE)

HARRIS: And as the most serious credit crisis in decades rocks your finances, CNNmoney.com has some advice and answers. We update this page all of the time. Check out our special report, "America's Money Crisis." Again, that's at CNNmoney.com.

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HARRIS: And here's a look at what's clicking with you on our website. The fireball over Texas is the most watched story on CNN.com. The U.S. Strategic Command says the bright light flying through the sky may have been a meteor.

The number two, most watched story: driver flips over police car. A suspect evaded one police officer - yipe - I - man, look at this. By ramming his car, the police car flipped over. The suspect was taken into custody after slamming into a concrete barrier. Man!

The next most watched story: the "sexting" allegations of Massachusetts. Six boys could face child pornography charges for texting partially nude photos of a 13-year-old girl.

Also in the top ten, the violent rampage by a 200-pound chimpanzee, also one of the most watched stories at CNN.com. The attack ended with the animal dead and a woman in critical condition.

Heather Hegedus of our affiliate from WFSB reports from Stamford, Connecticut.

(BEGIN VIDEOTAPE)

HEATHER HEGEDUS, WFSB REPORTER (voice-over): Police had dealt with Travis the chimp before. In 2003, he escaped from his owner's car in downtown Stamford for a few hours. Still, he was considered to be a celebrity in this city. He posed for photos, appeared in TV commercials, including one for Old Navy.

But not everyone here thought he was friendly. Don Mecca says he was afraid for his life around the animal.

DON MECCA: Dangerous. Totally 100 percent dangerous. He hated me. He would storm up to the cage and just, you know, punch with his fists against the cage. HEGEDUS: Yesterday, police got a 911 call that the 200-pound pet was on the attack. He had taken his owner's keys and wanted to go for a ride. The chimp's 70-year-old owner, Sandra Harold, slipped Xanax into his tea, but it didn't work. So Harold called her friend, Carla Gnash, who knew the animal well. But as Nash got out of her car...

CAPT. RICH CONKLIN, STAMFORD, CONNECTICUT POLICE: It jumped on her and began biting her and mauling her.

HEGEDUS: The details too brutal for television. Harold tried to wrestle the chimp off her friend, but eventually grabbed a butcher's knife and stabbed the pet she had loved like a human.

LYNN MECCA: She lived for this chimp. This chimp was like her child.

HEGEDUS: When police arrived, Travis was still moving around. He chased officers. They tried to Taser him, but the chimp opened a police car door and cornered the officer. Police say, that officer then had no choice but to fire point-blank into Travis's chest, killing him.

(END VIDEOTAPE)

HARRIS: Oh, boy. And you can see more videos, just log on to CNN.com.

What happens in Vegas could be illegal. Authorities are warning about a card-counting program. It works on the Apple iPhone and iPod Touch. The program can help players beat the house of blackjack. Card counting is not illegal under Nevada gambling laws, but it is considered a felony to use devices to help count cards.

(BEGIN VIDEO CLIP)

DAVID SCHWARTZ, CENTER OF GAMBLING RESEARCH: I think a big part of the gambling game is people are always trying to get an edge and I think people working for the house or the casino are always trying to detect that edge and eliminate it.

(END VIDEO CLIP)

HARRIS: Nevada Gaming authorities say they learned of the program from gambling regulators in California.

Sign of the times. Starbucks serving up a recession-brew, hoping for instant success.

Our Carol Costello has a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Grannin au com latte.

CAROL COSTELLO, CNN CORRESPONDENT (voice-over): Starbucks made its money on fancy expensive brew. But that was then, this seems to be now.

ANNOUNCER: Not a powder, not a grind, but millions of tiny flavor buds of real coffee, ready to burst instantly into that famous Maxwell House flavor.

COSTELLO: No, Starbucks isn't turning to Maxwell House but to its own brand of instant coffee. The companies execs insist will replicate the taste of Starbucks coffee, a three pack of instant will cost you $2.95, who to dunk it. A grande you can make at home in an instant for a buck. Some customers are intrigued.

UNIDENTIFIED MALE: I mean I would be more likely to buy it but probably wouldn't still buy it.

COSTELLO: Note I said intrigued, not sold on the idea. On a blog site that's critical of the coffee seller, starbucksgossip.com, they weren't even intrigued saying things like "I wanna cry now" and "there are no words." And they say the new coffee is unlikely to attract younger customers hip to new things or even older customers hip to new things.

UNIDENTIFIED MALE: I roast and brew my own coffee at home so I could probably do a better job.

COSTELLO: You don't want to do it at home yourself?

UNIDENTIFIED FEMALE: No way. Reminds me of Sanka.

UNIDENTIFIED MALE: It's like the old Sanka.

UNIDENTIFIED MALE: The coffee for folks who love good coffee, outstandingly good coffee.

UNIDENTIFIED MALE: It sounds very cheap.

UNIDENTIFIED MALE: It's cheap.

COSTELLO: But some marketing experts are not discounting the idea, saying if Starbucks instant coffee is tasty, fast and cheap it just might be a hit. A hit the company sorely needs. First quarter profits were down more than 60 percent and the instant coffee market is a $17 billion business.

UNIDENTIFIED MALE: In going with instant, they're trying to get into a bigger market and by going into a bigger market, they can try to rebuild sales which have been slipping significantly.

UNIDENTIFIED FEMALE: Tall latte.

UNIDENTIFIED FEMALE: Grande macchiatto.

COSTELLO: For now, most of you will have to be content with your old favorite. The new instant Starbucks will only be available in a few cities, unless, of course, it catches on.

(END VIDEOTAPE) HARRIS: And putting your resume to music. What happens when karaoke and unemployment collide.

(COMMERCIAL BREAK)

HARRIS: You know, when we talk about the recession and pork, it's usually the Washington kind. But this is real bacon and ham news here. The world's largest pork processing company is cutting 1,800 jobs. Virginia-based Smithfield Foods is also closing six of its 40 processing plants. Smithfield blames the credit crisis and consumers who are switching to less expensive, off-label brands.

You know, it is in tune with the flat economy. A talent competition where unemployed people sing for a new job.

John Zarrella has the story from Orlando.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): Nicole Nagy's three young children are a loving handful.

NICOLE NAGY, UNEMPLOYED: Whoa! Where you going?

ZARRELLA: Compared to the Orlando family's financial struggles, the kids are a walk in the park.

A pizza is a big deal. Ordering a pizza is a luxury we don't have any more.

ZARRELLA: Nicole lost her job, couldn't find another. She enrolled in nursing school hoping a career change will help, but there's tuition and books. The Nagys are a month behind on the mortgage payment. So, risking embarrassment, Nicole decided a better future might lie in a video. It landed her here, a party for finalists in a contest called "Careereoki," worth thousands to the top three online vote getters. The contestants submit videos of themselves singing and dancing about the career they long for.

JENNIFER FALK, CONTESTANT: The day does not go by that I don't go online and look for something. And there's just nothing out there. I mean, everybody wants experience.

ZARRELLA: One of the Careereoki sponsors, Workforce Central Florida, trains people like Jennifer and helps them find jobs. Knowing where to look helps a lot.

KIMBERLY CORNETT, WORKFORCE FLORIDA: And over the past 12 months, every industry in central Florida has experienced a decline in jobs, except the healthcare industry.

ZARRELLA: With thousands in dollars of prize at stake, including a career training scholarship, personal and resume makeovers, the finalists are keeping their fingers crossed that song in their heart doesn't end up a "Song Sung Blue."

John Zarrella, CNN, Orlando.

(END VIDEOTAPE)

HARRIS: Pretty good. All right, it is your money; his stroke of the pen. We will have live coverage of President Obama signing the stimulus bill. That is scheduled for 2:40 Eastern time, that is 11:40 Pacific.

The president promised change. Apparently, Congress didn't get the memo. The politics of bipartisanship in the next hour of the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And this just in to CNN - two border patrol agents have been released after their sentences were commuted by President Bush last month. Ignacio Ramos has been released from prison in Phoenix and Jose Compean got out of prison in Elkton, Ohio. The men had been serving sentences for chasing down and shooting a suspect drug dealer. The suspect allegedly ditched a vehicle containing more than 700 pounds of marijuana and made a run for the Mexican border. He received immunity from prosecution in exchange for his testimony against Ramos and Compean, both who, as you know, were involved in that incident.

More to come on this story right here in the NEWSROOM.

Hello, everyone. I'm Tony Harris in the CNN NEWSROOM. And here are the headlines for CNN for this Tuesday, the 17th day of February.

President Obama flying to Denver right now. He will sign the economic stimulus into law in 2 1/2 hours from right now. Then what? I'll ask a top Obama advisor how the White House will crank up the stimulus and start the process of rebuilding the economy.

A small car with a lot of zip gets zapped by the recession. The Minicooper hits a bump in the road in the NEWSROOM.