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Colorado's Green Economy Plan; Lack of Optimism at NYSE; Auto Industry Trying to Stay Alive; Alex Rodriguez's Press Conference
Aired February 17, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: We're pushing forward to high noon in the mile high city; 12:40 to be exact, 2:40 p.m. Eastern, signing time for the stimulus.
So when does the recovery start? We're pushing for answers. The foreclosure fix comes tomorrow. Are livable mortgages and higher home values just around the corner?
Hello, everyone. I'm Kyra Phillips, live from the CNN World Headquarters in Atlanta. You're live in the CNN NEWSROOM.
Well, as you know with this economy, times are tough all over. Take this one businessman in China. He loses his money, his wife, and all five of his mistresses. You better believe this one made our "what the" file.
And now, batting cleanup. Third baseman Alex Rodriguez, A-Rod, meeting the press for the first time since admitting that he juiced. The slugger on his steroid use live in about 30 minutes.
But first, eyes on the skies in Denver. Air Force One due to land shortly for a brief but momentous presidential visit. President Obama coming to sign the economic stimulus bill that may well set the framework for the first two years of his term.
CNN's Dan Lothian sets the stage now for us from the White House.
Hi, Dan.
DAN LOTHIAN, CNN CORRESPONDENT: Hello, Kyra.
Well, indeed the president going out to Denver to sign that bill. You know, this is something that normally you would think would be happening in the East Room here of the White House, but the president decided to take it on the road again, this White House saying that the president really feels better about selling his ideas out there in front of the American people.
It's something that we saw him do the last week, holding town- hall meetings in Florida and also in Elkhart, Indiana. So he feels very comfortable. They feel that those forums have been very effective. But that's why the president's out there.
But there have been a lot of questions about what the benefits of this bill will be. The administration has been touting that it could save or create between 3.5 to 4 million jobs, but there have been some critics that think this, the $787 billion was simply too much money and won't create the jobs that the administration is promoting as quickly as they say.
But today Melody Barnes earlier on CNN defended the plan. Take a listen.
(BEGIN VIDEO CLIP)
MELODY BARNES, WHITE HOUSE DOMESTIC POLICY COUNCIL: This plan was absolutely necessary. One of the things we heard consistently from economists is that we had to act quickly and decisively. We worked with some of the best people around the country to put this together. And we do believe that will create or save the number of jobs that we've been talking about.
(END VIDEO CLIP)
LOTHIAN: Kyra, of course, the president not spending a lot of time focusing on this. After today he focuses on the foreclosure crisis, going to Phoenix, Arizona, tomorrow.
Phoenix area they've a major impact on foreclosures there. They've seen the median home price decrease by about 35 percent over the last year. So what this White House is looking at is infusing about 50 billion, perhaps as much as $100 billion from bailout money that was approved last fall into stemming foreclosure crisis -- the foreclosure crisis and also perhaps even lowering mortgage payments, Kyra.
PHILLIPS: And Dan, a lot of questions coming from our viewers about how this money within the stimulus plan is going to be spent. So I understand the White House has set up something now, Recovery.gov? You can actually -- tell me about it.
LOTHIAN: Exactly, Recovery.gov. This was announced within the first week of the administration. Mr. Obama did announce Recovery.gov. It went online, though, within the last hour or so.
And the way that they're touting this, it's a way to sort of have unprecedented transparency. And for taxpayers to go online and track state by state or even nationally how all of their dollars are being spent. So this was launched today. And if the stimulus bill is signed and the money starts flowing out there, according to the administration, taxpayers will be able to track every dime.
PHILLIPS: All right. We'll be tracking it, too. Dan Lothian, thanks so much.
Well, the bill signing takes place at 2:40 p.m. Eastern. You'll see it live right here in the CNN NEWSROOM.
But before that, we're going to talk with a pair of Colorado lawmakers that we met last month. One is the House speaker, the other the Senate president. Each is the first African-American to hold his post. Now, tomorrow pushing forward, the focus turns to Phoenix, one of countless cities left high and dry in the housing crisis. The president will walk us through his plan to stem foreclosures and put a floor under home prices. It is expected to cost at least $50 billion but could cost twice that. It aims to help overextended homeowners modify unaffordable mortgages, perhaps by subsidizing lower payments.
Now, some experts say it's a good first step but only that.
(BEGIN VIDEO CLIP)
PETER MORICI, ECONOMIST, UNIVERSITY OF MARYLAND: We are likely looking at $1 trillion in mortgage losses before this is all over and putting $50 billion or $100 billion in is not going to solve the problem.
PHILLIP ROBINSON, FORECLOSURE ATTORNEY: You lived in a culture in the last ten years where mortgage originators said that you could use your house as a credit card to pay off your cars, to pay your credit-card bills. Well, that doesn't exist anymore.
(END VIDEO CLIP)
PHILLIPS: And as our Dan Lothian mentioned, the median Phoenix home price is $150,000. That's down more than 40 percent from its peak.
Now, today is also the deadline for General Motors and Chrysler to tell the government how they plan to survive and pay back the billions of dollars that they're getting from taxpayers. And here's what the government wants both companies to do: show the ability to ensure long-term viability; ensure that stakeholders share equally in the industry turnaround; and show a commitment to protect health and pension benefits. The government also wants to see a commitment to restructure debt and protect taxpayers' interests and, as conditions improve, assure that taxpayers benefit. There's also a demand that GM and Chrysler achieve or exceed fuel efficiency requirements.
Now, Chrysler is taking some drastic steps to save money. "The Detroit Free Press" says that the company has taken down most of the clocks from the walls at its Michigan headquarters. That move will save $20,000 a year on batteries and labor to reset the clocks when there's a time change. Now, the company has removed half of the 80,000 light bulbs in that building to save $400,000 a year and turned down the thermostats this winter from 72 degrees to 68 to save $70,000 a year. Another move that it's taking: no more snowplowing on the parking deck. That's going to save $350,000 this winter. Now, Chrysler is also selling 32 pieces of art worth more than $2 million.
Massive layoffs. That's the fate of thousands of state workers in California right now with lawmakers still at an impasse over the state budget.
CNN's Dan Simon is in San Francisco with more -- Dan.
DAN SIMON, CNN CORRESPONDENT: Well, hi, Kyra. The state senate should be back in session right now. And the Senate president has told his colleagues to bring a toothbrush, because he says they are not going to leave until they have a budget agreement in place. I'm not sure how successful he'll be, because after all, they've been haggling over this budget for the last three months.
Let me tell you where we are right now. Today 20,000 pink slips are going to be sent to government workers. That does not mean that those workers will lose their jobs. What it means is that there is a possibility that, come July 1st -- that's the start of the fiscal year -- that there may not be a job for them.
The reason why we're seeing this problem is because California is close to running out of money, Kyra. We're talking about a $42 billion deficit. That's what these negotiations have been about in Sacramento.
The problem is, is they don't have the votes right now to pass this budget. What are they lacking? They're lacking just one vote: a single Republican. That is all that is needed to get this budget plan in place.
The problem is this budget plan contains $14 billion in tax increases, and these Republicans, they are reluctant to go along with the increases from a philosophical point of view and also from the point of view that they signed anti-tax pledges. A lot of them fear that, if they go along with it, the theory is, is that there could be some problems, come re-election time -- Kyra.
PHILLIPS: All right. Dan Simon, thanks so much.
And California is not the only state with money problems, as you know. According to a report now by the National Conference of State Legislators, only seven states had a balanced budget for 2009.
In Kansas, as well as California, money is so short that the states have delayed payment on state income tax refunds. And in New York, Governor David Paterson has proposed a state tax on downloaded porn, music and movies to help bring in more revenue.
When it rains it pours, even for Wal-Mart. The world's largest retailer says its fourth quarter profit fell by 7.4 percent. The company says its international division was hurt by the stronger dollar, and the company will also pay $640 million to settle labor lawsuits. The results are still better than Wal-Mart expected and better than any other retail chain.
And the economy will be the focus of a special "AC 360" hour tonight. The "CNN Money Summit" with Anderson Cooper and Ali Velshi, 11:00 pm Eastern time.
President Obama is set to sign the stimulus plan in Colorado. Two history-making Colorado state lawmakers are inside the room where it all happened. They're on the phone with us straight ahead in the CNN NEWSROOM. (COMMERCIAL BREAK)
PHILLIPS: A-Rod sets up for some media hardball. He'll face reporters for the first time since coming clean about playing dirty. Live from Florida in about 15 minutes.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: 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 -- the amount that we're 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)
PHILLIPS: CNN iReporters appeal to the president: cut taxes to help ease the country's financial crisis.
Well, when President Obama signs a $787 billion stimulus plan into law, it won't be the first time that he's done a big event in Denver. Remember his rock-star-style nomination acceptance speech at football stadium there last summer?
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I'll invest $150 billion over the next decade in affordable, renewable sources of energy, wind power and solar power and the next generation of biofuels, an investment that will lead to new industries and 5 million new jobs that pay well and can't be outsourced.
(END VIDEO CLIP)
PHILLIPS: Well, in less than two hours, President Obama's biggest plan of all will be the law of the land. And one Colorado state lawmakers is inside the Denver museum right now where the president will sign that bill.
Colorado State Senate President Peter Groff joins me now on the phone.
Senator, give me a feel for what it is like inside as everybody is building up for this momentous occasion?
PETER GROFF, COLORADO STATE SENATE PRESIDENT: Everybody is filing in. It's -- it's an electric atmosphere in here. And it's a pretty small area. You know, you'll probably see on your cameras that it's not a great deal of space. And they've got a lot of people packed in here to watch this occur. PHILLIPS: And let's set the scene, Senator. You know, what does this bill mean for the state of Colorado, a state that has been very progressive when it comes to green energy production, a big reason why the president is there today?
GROFF: Well, this bill clearly will help our state. You know, I'm flabbergasted by governors who have said that it's not going to help. When we look at a budget that, in this current fiscal year, is $600 million in deficit, that we are actually moving legislation through the process today and tomorrow, this afternoon and tomorrow, to plug that hole, the money that the president will be signing and handing over to states is critical.
And as you've said, we have really tried to be a leader on renewable energy. And it's an honor to have the president sign the bill here because of what we've done on that issue in the state.
PHILLIPS: And your counterpart, good friend, Representative Terrance Carroll, on the line with us now, as well.
Representative Carroll, just to play off what the senator said, why has Colorado been pushing and investing in these types of wind and solar and green-energy companies for such a long time?
TERRANCE CARROLL, COLORADO STATE REPRESENTATIVE: Well, Colorado has had a significant downturn back in the '80s when the oil and gas industry went bust here. And we understood back then that we had to diversify our economy and that we couldn't rely on those old ways of doing business anymore. So we made a conscious decision in this state to move toward the new energy economy and creating sustainable green- collar jobs for the citizens of Colorado.
PHILLIPS: All right, gentlemen, you're both inside there where the big event is going to happen. The president going to sign this bill today. Representative Carroll, maybe just quickly, you know, a reality check. Your state is facing a $1 billion budget shortfall, so how soon can this bill that the president is about to sign -- actually going to help you and your state?
CARROLL: I think it will start helping us pretty quick here, especially with the shovel-ready projects. As soon as we get people to work, working on our transportation infrastructure, they'll be getting pay and they'll be reinvesting money back into the economy. So I suspect it will help us pretty quickly.
PHILLIPS: Senator, before you go, do you want to add to that?
GROFF: No, I think the speaker really hit the nail on the head. The money that will come in to allow us to preserve some of the safety net projects and programs that we've created over the past couple years under Governor Ritter, will not -- we will not have to cut those programs. And we'll be able to get people, I think, to work much quicker because of what the president is going to do in about an hour.
PHILLIPS: Well, I know you guys are heading over to the table right now where he's going to sign that bill. Senator Peter Groff, Representative Terrance Carroll, the state of Colorado, gentlemen, thanks so much.
GROFF: Thank you.
CARROLL: Thank you.
PHILLIPS: Well, if you've always wanted to be a land baron, here's your chance. The owner of a Texas town put it on the block. Price tag: negotiable.
(COMMERCIAL BREAK)
PHILLIPS: Hi. Let's take you over to Wall Street while we wait for the president's arrival there in Colorado. We're seeing big losses on the major averages, as investors grow increasingly worried about whether the $787 billion stimulus plan is enough to turn the economy around.
Susan Lisovicz on the floor of the New York Stock Exchange wit, I guess you could say, the grim numbers from today's trading.
Hey, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Kyra.
That's right. I mean, we're coming off a rough week. Last week was the worst week of the year for the Dow Industrials, and the selling clearly not done. In fact, we're testing the lows of this bear market. It's not only the stimulus plan, as if $787 billion wouldn't be enough. That's exactly what a lot of analysts say: it's not the shock and awe that was promised. Or maybe just the hopes were just too high about it.
Meanwhile, a lot of concern about the stability of our nation's banks. There's a closely-watched bank index that is hitting an all- time low today. It's down eight percent.
The fate of GM and Chrysler. GM shares right now are down 14 percent. And that is the worst performing Dow stock, which says a lot, since 29 out of the Dow 30 stocks are down.
Check it out. Blue chips down 288 points, at 7562; 7552 is the low of this bear market. It was hit in November, and the Dow got within one point of it.
Just to perhaps put it in better perspective, just sort of the sentiment here today, the lack of optimism is that we have something like 2,800 stocks at the New York Stock Exchange that are trading to the downside, about 200 to the upside. So it is just -- just a rout. There's simply no other word for it. It's been very consistent from the opening bell to this midpoint in the session, Kyra.
PHILLIPS: Sure, because this is -- you know, obviously, this is a big day, Susan. The president of the United States about to sign this huge stimulus bill, a lot of questions. Is it going to work? How long is it going to take for it to work? Who's going to get what? How is it going to affect our economy.
And already analysts -- while people sit and wait and wonder, analysts are definitely worried about the declines that we're seeing today. But then again, this does happen a lot when we're waiting for some type of big announcement or something to come out of the White House with regard to the economy.
LISOVICZ: Well, you know, unfortunately, something like this -- I mean let's be clear here. To think that, you know, that even if this was the shock and awe in 1,000 pages, it's not going to work overnight. This crisis did not happen overnight. There are so many things that contributed to the state of affairs where we are now.
And so there is a realization it's going to take time. And the realization also is that every single day, there are signs of distress.
And yesterday when the markets were closed, for instance, Japan, the second biggest economy in the world, showed that its GDP dropped 12.7 percent. Today an hour before the opening bell, we got a posting manufacturing report from New York state which hit a low, much worse than expected, hit an all-time low. So you have those kinds of distress, a lot of worries.
And you know, there's two prevailing emotions that drive -- drive the direction of the stock market: fear and greed. And we could say that the fear is prevalent. It's been prevalent for some time. It is going to take a while. Remember the stock market is a forward-looking indicator. We're not seeing the light at the end of the tunnel, I think, is what the markets are telling us. Not yet on the economy.
PHILLIPS: Susan Lisovicz, thanks so much.
And the New York Yankees have arrived for spring training, equipment in tow. Maybe you've heard third baseman Alex Rodriguez brought a ton of baggage, too.
In about five minutes he's going to face the music and the media for the first time since last week's admission that he did use steroids.
CNN's John Zarrella in Tampa, Florida, awaiting the start of A- Rod's news conference.
Hey, John.
JOHN ZARRELLA, CNN CORRESPONDENT: Hi, Kyra.
There are really big bags that he's carrying around right now, no question about it.
You know, it is an absolutely spectacular day for baseball: a blue sky here, not a cloud in the sky, temperatures in the 70s. But nobody here is talking about what's going on on the field or the fact that pitchers and catchers are reported and position players reporting today, taking their physicals. It's all about Alex Rodriguez. You see behind me all the media gathered. In just a few minutes Rodriguez will leave the clubhouse, come out here. About 200 members of the media are gathered to hear Alex Rodriguez explain what came out about a week ago, when he finally admitted, after a "Sports Illustrated," report that he did, in fact, take performance-enhancing drugs between 2001 and 2003 when he was with the Texas Rangers.
A lot of pressing questions he's expected to have to address very candidly about perhaps has he taken them then, although he says he hasn't. He'll be pressed on that. Exactly what did he take? Because he said he didn't know what he took. And quite frankly, very few people believe that a supreme athlete like Alex Rodriguez would not know what he was putting in his body.
So there will be a number of tough questions asked of him. And again, about 200 members of the media from all over the world are literally here to hear Alex Rodriguez' explanation of what happened back in 2001 and 2003 -- Kyra.
PHILLIPS: All right. We'll take it when he steps up to the mikes. John Zarrella, talk with you more then.
These are anxious times for car dealers across the country. And today General Motors and Chrysler unveiled their plans for the future. We're going to go live to a Cadillac dealership in New York.
(COMMERCIAL BREAK)
PHILLIPS: Live pictures now -- actually, no, this is moments ago. I apologize. In Aurora, Colorado. It is Buckley Air Force Base. The vice president of the United States arriving there in Denver to get ready for the president to sign the stimulus bill that's going to happen at 2:40 Eastern Time. Vice president there touching down.
And right now I understand we have a live picture of the president's aircraft that just is taxiing in right now. These live pictures coming to us from our affiliate out of Denver, KUSA. So the president now touching down. The vice president is there.
What they're going to do prior to the signing of this stimulus bill is they are going to tour one of the most popular industries there in Colorado -- actually, no, they're going to tour the museum solar panel installation project. That's right. There's a number of businesses there that are also very powerful when it comes to green -- the green energy industry.
But what they're going to do -- the bill signing's going to be at the Denver Museum of Nature and Science. So they're coming in early to tour that, actually see this solar panel installation project.
You know, we were talking to two lawmakers from Colorado just a little while ago, just talking about how Colorado's been very progressive when it's come to alternative energy, a main reason why the president has picked Denver to come and sign that bill. And of course, it gets him out of Washington, where this $787 billion piece of legislation had really turned into a bit of an ugly partisan battle. And this gets him away from all that, into a bit of a comfort zone, where he's surrounded by the type of companies and people that are supporting what his stimulus bill will do, what he says, for the future of progressive energy production.
So we're following the president, the vice president as they get ready to go onto that tour. And of course, we'll take the signing live at 2:30 Eastern Time.
Meanwhile, the White House project, as many as 3.5 million jobs are told will be saved or created over the next two years. And today aides are breaking down those numbers for us state by state.
California stands to pick up 396,000 jobs, according to this bill. Texas, 269,000; New York, 215,000; Florida, 206,000; and Illinois, 148,000. So, it's not just Colorado that's going to benefit from the stimulus bill, it's a number of other states you see as well. We're going to follow that list closely and track how exactly that money is doled out.
Also, Americans are tightening their belts in these tough times. One sign of that, a jump in the savings rate. And that puts a smile on Suze Orman's face. She's the personal-finance expert that was a guest on CNN's "LARRY KING LIVE." As we continue to monitor this live picture of the president and he gets ready to sign that stimulus bill, let's hear what Suze Orman had to say about what this bill could do for our economy looking forward.
(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. 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 end of 12 months I'll give you $100. Go to saveyourself.com, everybody. We (ph) pay 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 start putting things on your credit card that you can't do anymore. That's when you then start to become an aid, you know, 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)
PHILLIPS: Well, Orman says that one way to save money is to learn to distinguish between your needs and your wants and to stop spending money on things you really don't need.
We continue to follow a live picture there from our affiliate, KUSA. The president of the United States getting ready to stop off -- or get out of Air Force One there in Aurora, Colorado at Buckley Air Force Base.
As we wait for him, we're also waiting for word from two of the country's Big Three automakers about their plans for getting back in the black and paying back billions of dollars in government loans. That's also happening today. The deadline is today actually for General Motors and Chrysler to actually bet the government know their restructuring plans.
GM already has received almost $9.5 billion in loans, Chrysler $4 billion, and Treasury officials say that GM will pick up another $4 billion today.
Now, it's an anxious wait for GM and Chrysler dealerships across the country. CNN's Richard Roth joins us now from a Cadillac dealership in New York. And Richard, as we do go to you, I want to bring to your attention in case you can't see the monitors, we are waiting for the president of the United States to step off of Air Force One here, landing in Aurora, Colorado, Buckley Air Force Base, as he heads in to the big city to return once again to not only -- well, I guess you could say the second, one of the second biggest parts of his career, first going to Denver, Colorado during the convention to make his speech there at the stadium, which was a packed house.
Now another momentous part of his career, probably the first step to see how successful the next two years will be, and that is the signing of this $787 billion piece of legislation, as we know the stimulus bill, which folds in to where you are as well. We're talking housing, we're talking the auto industry and we're talking jobs.
RICHARD ROTH, CNN CORRESPONDENT: Well, I'm in a dealership here in Manhattan, New York's West Side, Potemkin Cadillac. Other brands, of course, are being sold here. And everyone here of course is anxiously watching what will happen later.
The auto industry, specifically General Motors, Chrysler, they have to tell the government, justify the $13 billion loans for General Motors from the federal government. Customers have been here -- little bit more traffic on the weekend. Earlier I saw Robert Abdenower (ph) and his son looking at a car, a Cadillac, he was buying for his mother. This person also said, look, times are tough, why should General Motors, even though he is buying a car from them, get a bailout?
(BEGIN VIDEO CLIP)
ROBERT ABDENOWER (ph), CADILLAC CAR BUYER: It is unfortunate of the situation. I don't think -- no, nobody bails me out when I have problems. So, why should anybody be bailed out like that? But you know, we need American cars, right? Can't just have Toyotas and Hondas out there. (END VIDEO CLIP)
ROTH: The people here at this General Motors dealership say that credit -- and we've heard that elsewhere -- that's a big problem. There are good customers, they say, who are here and they're unable to get money either from General Motors financing or from other banks, though other banks say that they have been willing to lend.
People are not walking in, Kyra, with a check here for $35,000 for a car. They need the financing. General Motors, Chrysler, they have to be able to shrink their costs, they have to be able to restructure, show the government that the loan is worthwhile and valid and that they're going to be able to repay it.
General Motors and Chrysler, they are in heavy talks once again with unions, big heath care costs that have to be cut down, give- backs, concessions. This seems like a never-ending story. With Detroit an old-line industry in American history, it was said that as General Motors goes, that's how the country goes. I think can you make your own analysis of that statement now -- Kyra.
PHILLIPS: Well, we're definitely going to follow all of that tomorrow when the president heads to Phoenix, Arizona and talks about housing and cars, of course. And we're continuing to monitor the live picture. Richard Roth, thank you so much.
Coming out of Aurora, California -- or Colorado, rather, there at Buckley Air Force Base, the president getting ready to step off and get ready to sign his American Recovery and Reinvestment Back -- or Reinvestment Act, rather, of course, we know as the stimulus plan. As soon as he steps off that plane, we're going to track him as he heads over to the museum there in Denver, the Museum of Nature and Science, where he and the vice president will actually be touring the museum's solar panel insulation project.
As you know, Colorado has become very well-known for green energy industry. A lot of pet projects of the president there in Denver, Colorado.
There we go, the president of the United States stepping off of the plane right now. Will be heading over to that museum, as you know. We will be carrying live coverage, about 2:40 Eastern time. We will take that live when he does that. And a lot of people remember the president prior to becoming president, obviously, when the Democrats held their convention in Denver last August, then-Senator Obama actually made -- officially accepted his party's presidential nomination.
You remember he packed out the stadium there in Denver, Colorado, and then of course, he ended up winning Colorado in the presidential contest. One of the three western states that actually swung from Republicans to the Democrats. Now he's coming back for another historic moment in his now presidential career, because as we know, this stimulus bill will really dictate how the first two years of his presidency is going to carry out, how successful it is going to be. A lot of questions to how quickly this money can go into effect, and local and state governments, everybody putting in their bids now for how much money they need, what they want to put it toward, what type of jobs to help relieve the ailing economy. Right now, in particular, Colorado, known to be very progressive when it comes to growing green energy industries, solar, wind, and the president is actually going to tour one of those companies, the Namaste Solar Company there in Denver, Colorado.
So, we'll be tracking the president and the vice president as they head over to the Denver Museum of Nature and Science. Getting ready to sign that big stimulus bill.
Well, North Korea raising another ruckus by threatening to test- fire a long range missile. Well, that's triggered a sharp warning from Secretary of State Hillary Clinton. It came during her visit to Japan. CNN's Jill Dougherty reports from there.
(BEGIN VIDEOTAPE)
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT (voice-over): A picture of serenity as Hillary Clinton pays an early-morning visit to Tokyo's Meiji Shrine. But in Asia, nerves are jangling with indications that North Korea may be preparing to test-fire a long- range missile, and that threat is overshadowing her weeklong visit to Asia.
At a news conference with Japanese Foreign Minister Hirofumi Nakasone, Secretary Clinton warns North Korea any possible missile launch would be very unhelpful in moving the north's relationship with the U.S. forward.
HILLARY CLINTON, U.S. SECRETARY OF STATE: The North Koreans should in no way be mistaken. President Obama, on his inauguration, during his address, made it clear that the United States will reach out a hand to those with whom we have differences so long as they unclench their fists. But the decision as to whether North Korea will cooperate in the six-party talks, end provocative language and actions is up to them. And we are watching very closely.
DOUGHERTY: The U.S. says it's ready to normalize relations and provide aid if the north ends its nuclear program. But the north's recent provocative action may, in reality, be a sign that its ailing leader Kim Jong-il wants to talk with the U.S. That's the opinion of one American professor just back from a trip to North Korea.
PROF. GERALD CURTIS, COLUMBIA UNIVERSITY: They're trying to set themselves up for a negotiation with the U.S., and they're -- you know, they have a -- their approach to negotiation is brinksmanship. Take a very hard line, threaten disaster, and then walk away from it as you can -- to see how much concessions you can extract from the other side.
DOUGHERTY: Secretary Clinton took time to meet with the families of Japanese citizens abducted by North Korea in the 1970s and '80s. The north has never fully accounted for the fate of the abductees, and the issue is highly emotional in Japan. Leaving the meeting with Clinton, one mother said she felt the secretary understood.
SAKIE YOKOTA: (SPEAKING FOREIGN LANGUAGE)
DOUGHERTY: Sakie Yokota saying, we feel sure that she is a mother herself, and she should recognize such a clear and cruel fact and fight for us.
The families want the U.S. to reverse the Bush administration's decision to remove North Korea from the list of state sponsors of terrorism.
(on camera): At that news conference, Secretary Clinton was asked, was that decision by the Bush administration a mistake. She said she's not going to go into any analysis of the past.
Jill Dougherty, CNN, Tokyo.
(END VIDEOTAPE)
PHILLIPS: A positive sign today on the misery in Darfur. Sudan's government and Darfur's most powerful rebel group taking a small but significant step, one that could finally end a six-year conflict that the U.N. says has killed 300,000 people. The two sides signed a declaration to conduct formal negotiations starting in two weeks. That's the word from the state news agency in Qatar, where the agreement was signed. Now, the flip side, it failed to agree on a hoped-for cease-fire, and other rebel groups aren't included in the new agreement.
Your medical history online could be convenient. But how secure is it?
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PHILLIPS: More than $20 billion of the stimulus package is slated for healthcare. That could mean some big changes when you visit your doctor's office. Senior medical correspondent Elizabeth Cohen here to talk about how exactly that money's going to be used.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: It's quite a bit of money, actually. I mean, you wouldn't necessarily think a stimulus plan, healthcare. But really, there's a lot of dollars in there. Let's take a big-picture look at how much money is in this plan for healthcare.
Nineteen billion dollars for doctors to create electronic medical records, $2 billion for community health centers, $1 billion to be spent on prevention and wellness. And another $1 billion for research to compare treatments -- which treatment is best for a given illness.
And this is just some of the money that is in there for healthcare. There's all sorts of other smaller amounts as well.
PHILLIPS: All right, let's look at the big-ticket item. Why so much money to make electronic medical records? COHEN: Well, Kyra, when you go to the doctor, I'm just going to bet here that there's a paper -- you get one of those paper folders. Right, with all the papers?
PHILLIPS: OK, here's what's interesting. I went yesterday, actually. This is very timely. And I had to fill out a bunch of paperwork that they had to put into the computer. But when I met with the doctor, everything was computerized. He talked into a little, what is it -- dictation type...
COHEN: Right. Right.
PHILLIPS: ... OK, and said, this is what the symptoms are, this is what she's dealing with, here's what I'm going to give her. And everything, boom, went right into my file.
COHEN: Into the computer.
PHILLIPS: Yes, and he also said he was one of the first in the country to implement this process.
COHEN: Ah, there you go.
PHILLIPS: And he said to me, actually, yesterday, I wonder how Obama's plan is going to affect my operation here.
COHEN: Well, he may get more money. He may get more money to sort of fully implement that plan, because when "The New England Journal of Medicine" published a study last summer, looking at how many doctors have electronic medical records, only 4 percent have fully functioning electronic medical records.
Most of them have what you see here, paper records. And you know what happens when you have paper records is that sometimes you get errors. Hard to read the doctor's handwriting. Hard to find what you're looking for in that record.
When the doctor needs to convey that record to the hospital if a patient gets admitted to a hospital, that's hard to do. It's hard to take a paper record and get it to a hospital. So, it's sort of like, Kyra, imagine doing your newscast without using computers. I mean, that would be very odd.
PHILLIPS: I remember the day that that used to happen, actually.
COHEN: Right. Right.
PHILLIPS: It was hard.
COHEN: And it's much more efficient to use computers, and it's much more -- things are much more accurate when you use computers.
PHILLIPS: OK, but there's privacy issues with computers.
COHEN: Absolutely.
PHILLIPS: So, how do you know who can, can't hack into all your personal information?
COHEN: Well, the way that it's designed, here's who's supposed to be able to get access: only people who need it. So, for example, maybe you can get access online to your medical records. Your doctor, your pharmacist, your chiropractor, people who are supposed to have access.
Of course, the concern is that once your pharmacy and your doctor and your hospital and all those people have access, well, who else is going to have access? Now, in the stimulus plan, there are plans for a chief privacy officer, so that there is someone responsible for making sure that these records are kept private.
But yes, of course there are concerns. Because you know what? A lot of people would pay good money for this huge database. I mean, think about what it would mean to marketers. Think about what it would mean to pharmaceutical companies to have access to all that data. So yes, big concerns, but we're told, don't worry, the privacy controls will be in place.
PHILLIPS: All right. We'll track it. Hey, have you heard about this pill to erase bad memories? Have you read about that?
COHEN: Sounds good to me.
PHILLIPS: All right, here's the details. I'm going to try and let my medical correspondent know about this crazy story that we found across the Web sites today. I was kind of going through all the various, you know, places that we find these interesting stories. And just imagine taking a pill and erasing bad memories. It caught our attention.
Scientists actually say that it may be possible with a common beta blocker used to treat high blood pressure. Apparently it happened in a study in the Netherlands. Dutch researchers gave participants a mild electric shock when they looked at pictures of spiders, creating a fearful until memory. That was just one example.
And then part of the group got the drug propranolol. Have you heard of that, Elizabeth?
COHEN: Propranolol. It's a beta blocker.
PHILLIPS: It's a beta blocker. OK, there we go. So, that got the drug, and it greatly reduced fear response to the pictures 24 hours later. So now researchers now believe that drug interfered with how the mind recalls memories and actually altered it. All right, interesting.
Probably a pill that A-Rod would like to take, considering the trouble he's in right now. For the first time, we're going to hear from him in a news conference setting. You know, it's become a near- annual February rite for the Yankees with the drug-related apologies. First you had Jason Giambi, then Andy Pettitte and now A-Rod. It looks like it's his turn. Not quite sure what he's going to tell us about using banned drugs. The Yankees apparently still don't know how many specifics of his drug use that he plans to divulge. But we're going to go ahead and listen in and see what he has to say. Here we go. There we go. Let's go ahead and listen in.
UNIDENTIFIED MALE: Good afternoon, ladies and gentlemen, and welcome to George M. Steinbrenner field. I'm going to make some very important announcements here in regards to a baseline that I'm going to form with the reporters here today. So, please bear with me and listen atentively. First and foremost, please turn off your cell phones or at least on vibrate.
Obviously, there's a lot of people here. We have two wireless mikes. Mike -- not mike the mike, but Mike the person -- and Ed in the back here. Please note that you're going to need to be patient. I need you to please raise your hands. We will get to as many of you as possible.
Also, another very important note, there will not be any follow- up questions because we need to get to as many different people as we can. Once you are done asking your question, please give it back to Mike or Ed so they can move on to the next person to keep this as efficient as possible.
Following the formal Q & A, we will have Yankees Manager Joe Girardi, at one of the Yankee banners to my right. We will also have Brian Cashman at a Yankee banner to my left. Those, of course, will be informal settings. There's a lot of people here. Please don't trample. We will wait, and we will get through this and make sure that everybody has a chance to talk to the manager and the general manager.
Before I turn this over to Alex Rodriguez, I want to acknowledge a few people that are here today. Obviously, I just mentioned them, but seated next to Alex, to his immediate right, is Yankees General Manager Brian Cashman. To Brian's right, Yankee Manager Joe Girardi. To my very far right, obviously are a large contingent of Yankee players and front-office personnel and support staff.
A couple people that should be singled out, Hank Steinbrenner, who I think is standing somewhere in the back, Yankees general partner, and Felix Lopez, the senior vice president of the Yankees, seated to my right. With that said -- actually, correction. I do need to make special mention of someone that we're very happy and privileged to have with us today.
To my left, seated to my immediate left, is Don Hooton, who many of you know as the president of the Taylor Hooton Foundation. We welcome him and his partner at the foundation, Rod Houseman. Gentlemen, we appreciate you being here. Mr. Hooton and Alex have begun a relationship, and we have information about Don's foundation and the venture that he and Alex are going towards. Mr. Hooton, I would also like to mention, will be made available in an informal setting following the Q & A process. With that, Alex, I'd like to turn this over to you. I know you have a written statement. And then we will take questions accordingly. Alex?
ALEX RODRIGUEZ, NEW YORK YANKEES INFIELDER: Thanks. First, bear with me. I'm a little nervous, or a lot nervous. So, bear with me a little bit.
Let me start by thanking the Yankees, my teammates, our fans for your support over the last couple of weeks. The fact that you're sitting here with me today means the world to me. The last couple weeks have been difficult and emotional. On one hand, it's extremely tough to admit mistakes. But on the other hand, it feels great to be moving forward.
I know that I'm in a position where I have to earn my trust back, and over time, I'm confident that at the end of my career, people will see this for what it is, a stupid mistake and a lesson learned for a guy with a lot of baseball to play. Last Monday, I began the first step in the process of earning back trust when I sat down with Peter Gammons.
I did so to accomplish two things: To tell the truth and to apologize to my teammates and baseball fans everywhere. Now the next step is to address the media about what I took and where it came from.
On reflection, here's what I remember. As I discussed with Peter Gammons, in the year 2001, 2002, 2003, I experimented with a banned substance that eventually triggered a positive test. In September of 2004, I had a meeting with Gene Orza. During that meeting, he explained to me that I had been among the players from which people might conclude that I tested positive. That was as specific as Gene could be, because Gene stated to me that there were a number of players on that list who might not have actually tested positive.
I think it is important to note that the tests that were taken in 2003 were requested and voted by players to determine the extent of the drug problem in Major League Baseball. Going back to 2001, my cousin started telling me about a substance that you could purchase over the counter in D.R. (ph) known as -- in the streets, it's known as Bole (ph) or Bolay (ph). It was his understanding it would give me a dramatic energy boost and otherwise harmless.
My cousin and I, one more ignorant than the other, decided it was a good idea to start taking it. My cousin would administer it to me, but neither of us knew how to use it properly, providing just how ignorant we both were. It was at this point we decided to take it twice a month for about six months during the 2001, 2003 and 2003 season.
We consulted no one and had no good reason to base that decision. It was pretty evident that we didn't know what we were doing. We did everything we could to keep it between us. And my cousin did not provide any other players with it. I stopped taking it in 2003, and haven't taken it since. I stopped taking the substance for several reasons. In 2003 I had a serious neck injury, and it scared me half to death. I was scared for my career, and truly, my career after baseball, my life after baseball. Secondly, after our voluntary test, all the players voted for a Major League drug policy. At that time, it became evident to me how serious this all was, and I decided to stop then.
Since that time, I've been tested regularly. I've taken urine tests consistent with Major League Baseball and drug tests for the Baseball World Classic. Before I walked here today, I took a test as part of my physical. And I'll take another blood test next week for the Classic.
In the days ahead, I know that a lot of people are going to debate my past with various opinions. People are going to talk about my future as though it's already been determined. However, I realize that these opinions are out of my control. What is in my control is going out and doing the job that I'm blessed to do. Spring training represents a new start for me and a chance to win a championship, two opportunities I'm very excited about.
It isn't lost on me the good fortune I've received from playing baseball. When I entered the pros, I was a young kid in the major leagues. I was 18 years old, right out of high school. I thought I knew everything, and I clearly didn't.
Like everyone else, I've made a lot of mistakes in my life. The only way I know how to handle them is to learn from them and move forward. One thing I know is for sure, that baseball is a lot bigger than Alex Rodriguez. And to my teammates -- thank you.
UNIDENTIFIED MALE: OK, I'm going to need the still photographers, please, you need to clear this aisle. We've got wireless mikes. I can't tell if there's stills in that aisle there, but would you kindly move. We can begin the Q & A. The guy in the front here, Ed. Please be reminded there are no follow-ups.
MARC BENARZYK, ESPN RADIO 1040: Marc Benarzyk, ESPN Radio 1040 in Tampa Bay. Alex, if your name was never revealed in the "Sports Illustrated" report, would you have come out on your own volition?
RODRIGUEZ: I haven't thought about that much. The fact is that it came out, and I'm here to, you know, share my story.
