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What to Expect From the President's Housing Plan; Global Housing Problems; Republicans and Democrats Remain on Opposite Sides; California, Kansas Doing What They Can to Get By; Salmonella Outbreak Sickens Hundreds Nationwide; Taliban Leader Strikes a Deal; What Do You Do When Your Neighbor is a Foreclosure?

Aired February 18, 2009 - 10:00   ET

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

HEIDI COLLINS, CNN HOST: The ink is barely dry on the economic recovery plan, and the president is about to unveil yet another rescue plan a couple hours from now. The crisis, record foreclosures. Millions of Americans may be on the edge of disaster. We are covering all of the angles.

Gerri Willis looks at the details of the plan, and White House Correspondent Suzanne Malveaux is traveling with the president. We want to go ahead and begin now with Gerri.

So yes, you have been looking at this for a while now, Gerri, some of it confusing, but there is an executive summary, that sort of try to point out the main items that the White House is going to get to.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Yes, we just got these details about an hour ago right here on CNN, and there is a new number out, even now. The administration saying that this plan could reduce mortgage costs, reduce mortgage debt. The cost of mortgage debt, by a trillion dollars, Heidi.

OK. This plan, called the Homeowner Affordability and Stability Plan. It will help seven to nine million families restructure or re- finance their mortgages to avoid foreclosure. Its cost? $75 billion.

Now, let's drill down a little bit and talk about who the administration is really trying to help here. Because it's an interesting list.

First off, responsible homeowners. These are people who are still paying their mortgage, but maybe having a difficult time doing it. Considering that their prices are falling for their house, still continuing to make payments, worried about that mortgage.

Also to be helped, people struggling to make payments. Maybe people who have lost an income in the family, maybe not getting as many hours on the clock right now, income is going down. People facing foreclosure. They are targeted.

And neighborhoods targeted. Those with high foreclosure rates.

Now, this was a stimulus bill, but this was part of the broad package to really stop slow forces foreclosure problem away. Now, what does this plan do? Well, it offers access to low-cost refinancing for responsible homeowners, helping four to five million American families.

The Treasury Department under this would buy soured mortgage debt, driving down mortgage rates to more affordable levels. Cost of this? $75 billion, again, would be spent on this. Loan modifications, another part of the plan, and of course.

We talked about Sheila Bair at the FDIC and the plan she has had with Indy Mac Bank to take care of the foreclosure problem there. This would really be modeled on her plan, which would drive down mortgage costs to 31 percent of income for people in the plan.

Also, increase funding to Fannie Mae and Freddie Mac. This will also expand the number of mortgages the agencies back. And an interesting part of the plan here, Heidi, the industry will really be incented to help solve the problem. There will be multiple incentives to servicers to modify loans and proactively help at-risk borrowers. For example, servicers could get a fee, 1,000 bucks for each loan modification they make. This is a pay-for-success model.

That's what the administration is calling it. And it also sets up a $10 billion insurance fund that will be guided, developed by the Treasury Department, designed to protect investors and servicers against further home price decline.

So you see it's a multi-headed hydra, there's a lot going on. But real thorough-going plan and I have to tell you, in the days leading up to this, there was really great concern among people in this business, people on the sidelines, in not for profits, will we get a plan, what will it be? Well, there's lots of details here for us to digest in the days and weeks to come.

COLLINS: Very, very quickly, Gerri, I'm curious about the mortgage restructuring. I mean, isn't that really, really difficult to do? Because my understanding is that, of course, a lot of these mortgages were bundled together.

WILLIS: Right.

COLLINS: Pulled together, if you will. And then resold as these security-backed, mortgage-backed securities, pardon me. How do you sift through that? How do you get to the beginning of them and restructure them? How do you do it?

WILLIS: Yes, sort of like a game of pick-up sticks, you take out one stick and everything collapses. But the administration here is saying we are going to incent servicers. We are going to pay them to go out and re-fi, change the terms of these mortgages.

So that's a different tact. We haven't done that to date, so it will be interesting to see how that works, if it is successful. But it is something that goes right at the heart of one of the thorniest problems in this whole mess. How do you get the industry to play? COLLINS: Yes, all right, Gerri, we'll be continuing to talk about this, I'm sure, for many months, obviously, in fact. Gerri Willis, thank you.

WILLIS: My pleasure.

COLLINS: The Phoenix area, a fitting backdrop for a foreclosure rescue plan. It's been exceptionally hard hit by the nationwide crisis.

White House Correspondent Suzanne Malveaux is joining us now in Mesa, Arizona, where the president will be later on today.

Good morning, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Heidi.

Obviously, he is using this as a backdrop to demonstrate that there are a lot of families that are suffering, particularly here in Phoenix, Arizona. And I spoke with an administration official who said the president is really emphasizing that he is going to focus on families who have fallen on hard times, who have acted responsibly, who have followed the rules. That this is a government-driven program, not a government program, per se, and that all of these things are aimed at keeping those mortgage rates low, and helping people who are essentially on the edge.

This could kick in as early as March 4th, I'm told, and really, this is an area that is going to be very much impacted by this program. A lot of people paying attention.

We had a chance in "AMERICAN MORNING" to speak with the Phoenix mayor. He believes that this is actually a good idea and a good approach.

Take a listen.

(BEGIN VIDEO CLIP)

MAYOR PHIL GORDON, PHOENIX, ARIZONA: This would allow people to stay in their homes, stabilize the housing market, and then, therefore, increase the sales and the property tax base which would help all sectors, private and public.

So, it's critically important, and I'm very, very grateful that the mayor, the president has not only focused on the housing market, but understands cities and understands urban cities in particular.

(END VIDEO CLIP)

MALVEAUX: Heidi, I want to give you a sense of just how bad it is in this area, why the president is visiting this particular place to unveil this plan.

We are talking about the Phoenix metro area, foreclosures, 40,000 last year. Arizona foreclosures, this is the third highest rate in the country. We're talking about 117,000, and one of the reasons why the situation has gotten even worse, as you take a look at the home sales, new home sales down by 60 percent, and even resales down by 72 percent.

Had a chance over the last couple of days to talk to people, and they say they are looking to the president for some solutions, some answers, and the president emphasizing, Heidi, that this is something that he wants to do for people who have acted responsibly, but have just fallen on hard times, Heidi.

COLLINS: All right. CNN's Suzanne Malveaux for us this morning from Arizona.

And of course, we are going to have live coverage of President Obama's remarks on relief for homeowners. We expect to hear from him at 12:15 Eastern, 9:15 Pacific.

What can we do to pull ourselves out of this housing crisis? We're going to be talking with a real estate expert with some solutions and ideas to think about coming up in the next half hour.

In the meantime, a look at the big board now, Dow Jones Industrial Average is down by 31 points or so. Dangerously close to those low levels that we have been talking about for the past couple of days, resting at 7519 at this point.

Global skepticism to the Obama economic recovery plan, markets across Latin America tanked amidst fears a turn around will take longer then expected. Brazil's benchmark index plunged 4.8 percent. It appears, beginning back a little bit of territory today. In Mexico, the IPC index fell 3.4 percent.

One goal of the rescue plan, stopping the skid of housing construction. That's a challenge that just got much tougher, though. Construction of new homes and apartments plunged 16.8 percent last month. Building permits for future projects fell five percent. Both measures now sit at record lows.

The United States, of course, not the only country with the struggling housing market. Today we take a look at how Hong Kong and London are coping.

Let's begin with CNN's Eunice Yoon.

(BEGIN VIDEO CLIP)

EUNICE YOON, CNN CORRESPONDENT: In Hong Kong, this is a view that everybody wants, and now you can get it for a whole lot less.

I'm Eunice Yoon.

In a neighborhood over there, known as the Peak, the luxury homes are going for 30 percent cheaper. That's the biggest price drop in over a decade. Because of the financial crisis, people are losing money in the markets, and international bankers are fleeing their homes, unloading apartments worth over $4 million.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

PHIL BLACK, CNN CORRESPONDENT: I'm Phil Black in London.

Less than two years ago, the property market was booming. Since then, prices have fallen dramatically. The latest government figures show those prices have dropped almost 10 percent in 12 months. The average London home now costs around $435,000.

Analysts believe falling prices, record low interest rates could renew some interest in the market. But it's still very difficult to get a loan here. Unemployment is rising. So many predict actual sales and prices will continue to fall for some time yet.

(END VIDEO CLIP)

COLLINS: Bad news for thousands more American workers. The tire maker, Goodyear, announced this morning it will cut 5,000 jobs this year. That's on top of the 4,000 jobs that were eliminated in the second half of last year. For those who remain with the company, salaries will be frozen.

Automakers with hat in hand are asking for more federal bailout money, saying sales are getting worse. GM and Chrysler say they could need almost an extra $22 billion in loans, bringing their overall total for now to a staggering $39 billion. The two automakers also outlined plans to cut 50,000 jobs worldwide by the end of the year. And slash certain models and brands.

GM said it plans to close five more plants in the next few years. The automakers presented their government-required restructuring plans yesterday.

The snow has been piling up for a week in the Sierra, Nevada. Not much fun for drivers, but skiers don't mind a bit. They have been coping with below normal snow packs all winter long. On the opposite side of the coast, i-reporter Richard Lewis captured these water spouts off of Venice Beach, Florida. One was pretty close to his dock, and the others were out in the gulf.

(WEATHER REPORT)

COLLINS: So where are your taxpayer dollars going? President Obama has promised full transparency. We'll show you how to follow the money trail.

(COMMERCIAL BREAK)

COLLINS: One day after signing the economic stimulus package into law, President Obama heads to Phoenix today to tackle the home foreclosure crisis. The $787 billion rescue plan designed to spur spending and create jobs. The president explains what's in it for most Americans.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: About a third of this package comes in the forms of tax cuts. By the way, the most progressive in our history. Not only spurring job creation, but putting money in the pockets of 95 percent of hard-working families in America.

(END VIDEO CLIP)

COLLINS: While he's in Phoenix, Mr. Obama will announce plans to help homeowners on the brink of foreclosure.

Putting the money to work. Missouri barely waited for President Obama to sign the economic recovery plan before starting to use the money for construction on a crumbling 76-year-old bridge. State transportation officials monitored the president's bill-signing by video, and then seconds later, voted to approve several projects, including the bridge replacement.

(BEGIN VIDEO CLIP)

PETE RAHN, DIR. MISSOURI TRANSPORTATION DEPT.: The stimulus bill is funding work in Missouri that otherwise would not be taking place.

(END VIDEO CLIP)

COLLINS: Transportation officials say they got the ball rolling so fast, to show that money on infrastructure projects can quickly jump-start the economy fast.

Tracking your money. The president set up a website, so we all can see where the $787 billion in recovery money is going.

CNN's Josh Levs is here now to take a look. Good morning, once again, Josh.

JOSH LEVS, CNN CORRESPONDENT: Hey, good morning to you, Heidi. It's interesting, the law was yesterday and there has been quite a build-up, we have been hearing about it for a long time from a very wired president. Before we dig in, I want you to know how it's been billed. Here is something President Obama said just the other day.

(BEGIN VIDEO CLIP)

OBAMA: Once the plan is put into action, a new website, recovery.gov, will allow any American to watch where the money goes and weigh in with comments and questions, and I encourage every American to do so. Ultimately, this is your money, and you deserve to know where it's going and how it's spent.

(END VIDEO CLIP)

LEVS: OK. So it's just in its initial stages right now, a lot of the money we don't know how it's going to be spent. But there are some features that you should check out already. Let's zoom in on the board. This is the main page right here at recovery.gov. You can hear a message from the president pretty much saying what I just told you.

But let's go over here. I find this really interesting. This bubble graphic made where the money should be going, it may be showing pretty bright on your screen. Basically each bubble shows an amount of money, $144 billion to state and local fiscal relief. $288 billion to tax relief. What this bubble will do will be to help you track how much makes it to your area. You can read the entire bill if you want to, massive text there.

But check this out, too. This is really cool. On the main page, if you scroll down pretty far, you are able to see a time line of when you should be able to expect that this will get to you. If the money will actually work its way to you. Milestones at a glance. You can just kind of parse your way through it. Saying March 3rd, federal agencies will begin reporting use of funds, as more things get scheduled and money is about to hit your area, you should be able to check out the time line right there and see when it's going to make it your way.

But I am going to tell you, while it is great to check out recovery.gov, we're certainly not going to recommend that you make that your main source of news about what's going on with the money or what's going on at the White House. Obviously, I'm going to use this as an opportunity to tell you about a couple of things we have at CNN. First of all the CNN money team doing an incredible job, 24/7, tracking down what's going on with these trillions of dollars in federal spending.

And one thing you might not have noticed is this first 100 day special section, you'll be able to find it there in which they're pretty much every day updating it with the latest information about what's going on, the bailout funds, the TARP funds, the recovery plan, all of this, the billions and now trillions of dollars, where it's going. Take a look at that.

And, of course, as always, I'm going to recommend two reality check here in truth squatting sites, politifact.com, which today is saying that President Obama is managing to fulfill a bunch of his promises because he managed to get some of his plans inside the recovery plan.

And factcheck.org, another really good one and they are saying stimulus bill bravado, Obama saying his stimulus legislation will do all sorts of things, but there are no guarantees.

So it's a good idea to keep an eye, of course, Heidi, on recovery.gov, in the coming days. Follow that time line, see what money should make it to your area. But keep it here on CNN s well and keep an eye on that reality check and stuff. Because that's what we're going to do, too.

COLLINS: Yes, absolutely. All right. Josh, thank you.

LEVS: Thanks, Heidi.

COLLINS: A beloved pet goes berserk. His owner left with no choice but to call in lethal force. We'll hear her frantic 911 phone call.

(COMMERCIAL BREAK)

COLLINS: A voice filled with terror. A Connecticut woman called 911 when her pet chimp went crazy and attacked a friend. We are now going to listen to that tape.

(BEGIN AUDIOTAPE)

SANDRA HEROLD: He's trying to attack me. Please, please, hurry!

911 OPERATOR: OK, I need you to calm down a little bit. They're on the way.

HEROLD: You got to shoot him, please. Please, hurry, hurry!

911 OPERATOR: If the monkey away from your friend, let me know. OK we can try to help your friend.

HEROLD: No. I can't. She's dead. She's dead.

911 OPERATOR: Why are you saying that she's dead?

HEROLD: She's dead. He ripped her apart. I can't hold on much longer. I can't hold on. I can't. Please have them shoot him.

(END AUDIOTAPE)

COLLINS: Police did arrive to shoot the animal dead, but the victim has life-threatening injuries to the neck, face and hands.

Republicans united against the President's economic recovery plan. They say it's a matter of principle. The Democrats say it's just politics.

CNN's Jessica Yellin has the story.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN CORRESPONDENT (voice-over): President Obama is taking a victory lap.

OBAMA: We have begun the essential work of keeping the American dream alive in our time.

YELLIN: And so are the Republicans who voted against the stimulus.

REP. ERIC CANTOR (R), VIRGINIA: Every Republican in the house voted against this bill for one simple reason. We believe that this Congress can do better. YELLIN: In this new internet video, house Republicans brag that their united opposition to the stimulus will launch their political comeback as fiscal conservatives.

Many believe they were hurt by years of massive budgets under President Bush, the last year Republicans ran Congress, they backed almost a trillion dollars in discretionary spending.

ED ROLLINS, GOP POLITICAL CONSULTANT: I think their back fighting on issues they're comfortable with, and at the end of the day, their constituencies, their donors, their supporters, are going to be very pleased with someone who is looking out for tax dollars.

YELLIN: But democrats see something more sinister, that Republicans want the president's stimulus plan to fail, that they are, in fact, banking on failure. Rush Limbaugh led the charge.

RUSH LIMBAUGH, RADIO TALK SHOW HOST: I don't want this to work! I hope he fails.

PAUL BEGALA, DEMOCRATIC POLITICAL CONSULTANT: Republicans are first betting against Barack Obama, which is a bad bet, believe me. And second, I think they're betting against recovery. You know, Rush Limbaugh said it. I want this president to fail and it seems to be what their bet is.

YELLIN: It's a familiar refrain. Not long ago, Democrats were the ones accused of banking on failure when they opposed increased spending in Iraq.

UNIDENTIFIED MALE: The House, trying to tie the hands of our troops and trying to ensure, frankly, failure in Iraq.

YELLIN: For years, opposing the war in Iraq was a political risk for democrats, who are struggling to win over those security voters. Now, democrats believe Republicans are doing some gambling of their own, by standing nearly united against President Obama's economic agenda.

BEGALA: Even if they are right, it's hard to see them prospering. By simply saying no.

YELLIN: But Republican leaders say they're saying no on principle, not on politics.

REP. MARSHA BLACKBURN (R), TENNESSEE: it is painful to see the recession and to hear about jobs being terminated, and individuals losing their jobs. And we all want something done. It boils down to being, what's the right thing to do?

YELLIN: So far, the numbers are with the democrats. The latest Gallup poll shows support for the stimulus has grown seven percent since President Obama hit the road promoting it.

(on camera): Bottom line, democrats now own this stimulus, and the fate of both parties rests with the success or failure of this massive bill. Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)

COLLINS: The state of California in crisis. Lawmakers locked in until they can reach a deal. We're going to talk with the man who is ordering the all-nighters.

(COMMERCIAL BREAK)

ANNOUNCER: Live, in the CNN NEWSROOM, Heidi Collins.

COLLINS: A major change in the California budget stalemate made late last night by state Republicans. They replaced their Senate leader with someone opposed to the governor's budget plan.

Here's what's happened so far. Tax refunds are being delayed. 10,000 layoff notices were sent out to state workers yesterday, another 10,000 could go out today, and those would take effect on July 1st.

Joining me now to talk more about this from Sacramento this morning, the truth in consequences in California state senate president pro tempore, Darrell Steinberg.

Thanks for being with us, Senator.

DARRELL STEINBERG, PRESIDENT PRO TEMPORE, CALIFORNIA SENATE: Good morning, Heidi.

Well, my thoughts are, I remain focused on gaining the one vote necessary to pass a $41 billion deficit reduction package in California and avert a catastrophe. The fact that the other side, the Republicans, changed their leader doesn't change my resolve one bit.

We have negotiated for 90 days a bipartisan budget, a bipartisan budget, with Governor Schwarzenegger, and the two Republican leaders. It has half cuts, half revenue, and it solves the problem. And we're going to continue to focus on gaining the one vote necessary for its passage. To start out --

COLLINS: Well, if you had to give me like maybe just a couple bullet points as to how this ends up being a deficit-reduction plan, because you're talking about tax increases, correct?

STEINBERG: Well, we are. Of course, states, unlike the federal government cannot deficit spend. We don't print money, we have to actually balance our budget.

COLLINS: Well, to be fair, the federal government doesn't either.

STEINBERG: The federal government can print money, but here's the thing. Because of the national and international economic crisis, our revenue in California has -- will drop over $30 billion. And so, we have a $40 billion deficit, and we have proposed, with the Republicans and the governor, to essentially deal with half cuts and half new taxes.

Now, nobody likes the new taxes, but the alternative is to cut 30 to $40 billion worth of public education, health care and transportation in this state, and that's untenable to most every Californian. We pride ourselves on first-rate public services, and we're not going to decimate them.

COLLINS: Well, nobody likes tax increases, right. I would agree with you there. But people really don't like it when they don't get their tax refund money back. What do you have to say to those people who are not getting their checks?

STEINBERG: Well, the reason why I kept the Senate in all night and will continue to keep the Senate in all night is because whatever minor inconvenience it may be to us, it pales in comparison to the impact of failing to get a budget on real people. Tomorrow, 276 major public works projects will stop. Tens of thousands of people will be unemployed. And as you say, taxpayers will not receive their refunds, IOUs will be issued, and we are going to stay in the Capitol, we're going to stay in Sacramento until we get this budget done.

And we're not changing course. We're open to any new suggestions, but we're one vote away, a 120-member body. We're looking for one Republican member, in the spirit of President Obama, to put the state ahead of any ideology or any other interest.

COLLINS: Well, you say this is a bipartisan effort. I want to have you listen, if you would, along with me, some of the Republicans who are not supporting the budget bill. Because, of course, they say, like most politicians, that they're listening to their constituents. Listen to this.

(BEGIN VIDEO CLIP)

SEN. SAM AANESTAD (R), CALIFORNIA STATE SENATE: We've already had over 40 phone calls. Not one of them says vote for new taxes. Yesterday alone, we had almost 100 phone calls to my office. Only two of them urged us to vote for the budget as-is. They were both state workers.

(END VIDEO CLIP)

COLLINS: So, when they tell you that they are listening to their constituents, can you fault them for that, or is it just that you don't know or don't believe that these calls are coming in?

STEINBERG: Well, of course, it's important to listen to your constituents. But it's also important to demonstrate real leadership. Because we're elected to make hard choices. And, of course, nobody wants their taxes raised. Nobody wants the deep cuts, either.

But when you face a crisis of this magnitude, due to what's happening in the economy nationally and internationally, you have to make difficult choices. Democrats have stepped forward. We're making cuts that we hate. I didn't come to Sacramento to cut education. We're cutting education $8.5 billion, because we have to govern responsibly. We just ask the same of one more senator, one more Republican senator on the other side of the aisle.

COLLINS: All right. So the takeaway today is that you hate this, but it absolutely is the only way that the future of California can become intact.

STEINBERG: The future of California in many ways is really at stake here. And so we're going to stay until the job gets done.

COLLINS: All right. Well, we will continue to follow the situation very, very closely there in California. We appreciate your time very much.

STEINBERG: Thank you, Heidi.

COLLINS: State Senator Darryl Steinberg today. Thanks so much.

They have reached a budget deal in Kansas. The governor, Kathleen Sebelius, signed a bill calling for new cuts, including millions from schools. Republican leaders wanted the bill signed before they would support moving money around to pay the state's bills.

(BEGIN VIDEO CLIP)

GOV. KATHLEEN SEBELIUS (D), KANSAS: If the legislature joins me in taking timely action, it will allow the state to process overdue tax refunds, pay hospitals and doctors for their medical care, pay our state work force and meet our obligations for school payments due later this month.

(END VIDEO CLIP)

COLLINS: A finance committee will be meeting today to decide if the governor can make those commitments. Kansas doesn't have enough money right now to make Friday's state payroll.

To Wall Street now. The Dow Industrials closed less than half a point yesterday off its bear market low. And the selling continues today. Susan Lisovicz on the floor of the New York Stock Exchange now with an early check of the market. Let's see, we have been trading for about hour or so, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, Heidi, we opened tepidly higher and really couldn't hold it, a bad sign. The key, Heidi, is whether the Dow will close below 7552, establishing a new bear market low. What's that what would mean is that it would perhaps be hard to find another support level.

I have to point out that really a lot of market pros really look at the S&P 500, a much broader average, for where the trigger point could be for establishing lows in this market. And we are not at the bear market low for the S&P 500. But the selling that we're seeing today certainly puts it closer to it, and certainly the fact that the Dow is below its low right now is not a good sign.

What's bugging investors? I mean, I don't have enough fingers on my hand to count them. I mean, we've got some of the biggest economies in the world that are seeing a huge downturn. Not only Japan, not only Britain, Germany, as well. Big concerns about Eastern Europe yesterday. That really weighed on markets in Europe, as well as here in the U.S., about the sudden and severe drop in fortune that it's seen with all the investment it's seen in recent years.

It's very worrisome to economists. And to put that in perspective, Alan Greenspan, the former chairman of the Federal Reserve, speaking to the "Financial Times" before a speech last night, said it may be necessary to temporarily nationalize our banks in order to stabilize the system. Quote, "I understand that once in a hundred years, this is what you do." That's a quote from a champion of the free market, Alan Greenspan.

What you're seeing here in this market is an extension of losses but tepid right now. The Dow is down 21 points, but as I mentioned, below that support level that I mentioned a few moments ago. The Nasdaq, meanwhile, is down two points -- Heidi.

COLLINS: All right, CNN's Susan Lisovicz for us watching the markets very closely today. All right, Susan. Thank you.

So many people struggling just to keep a roof over their heads. What can they do, what can we do to get out from under this housing collapse? Financial expert Ilyce Glink joining me now with a few ideas from Chicago. Ilyce, good morning to you.

Boy, an awful lot going on today, certainly, with very -- with respect to foreclosures. What do you make of it all? The people of Phoenix, Arizona, in particular, are going to hear from the president today. What is it that they want to hear, need to hear, from him?

ILYCE GLINK, SYNDICATED FINANCIAL COLUMNIST: I think just looking at my viewer mail or from the listeners who call into my radio show, people are really desperately unable to make their mortgage payment, and it's a lot more than the two or three million people, the number that was bandied about who may be at risk of foreclosure this year. I think the number is probably two to three times that. People want some relief from their payments.

COLLINS: Yes, it's just unbelievable when you start looking at the numbers. If we can really even get a fair look at them, it's an incredible number of people that have been affected by this. I want to talk to you about something that we've been learning as we're kind of getting an early look at this plan that he will unveil. It's called mortgage cram-down. Explain to us what this is, because I think it's going to end up being something that people are going to be talking about for many, many days to come.

GLINK: Sure. President Obama has said from the very beginning that one of the things he wants to do is give bankruptcy judges the right to reduce the principal on people's mortgages, people who are in bankruptcy court. Right now, bankruptcy judges have cram-down powers on almost every other kind of loan out there, except for primary residences.

They can already do it for secondary loans, they can do it for car loans, other kinds of loans that you might have. Cram-down legislation for primary loans has been fought tooth and nail by the mortgage industry. But this is a key piece of President Obama's plan that he's expected to announce.

COLLINS: Yes, well, I guess the question would be, then, I mean, we're talking about incentives to get lenders to lend money, right? And if there's a banker -- excuse me, a judge who says, you know what, you can go ahead and sign up for that loan, but later on, like maybe in the middle of the loan, we're going to change how much these people will be paying you for that same loan. How does that get the lenders to actually say, I'm going to sign up for this, I am going to lend the money?

GLINK: You know, that's the argument that the lenders have put out there. But there's no trouble in lending on second homes. There's no trouble in getting auto lenders to lend. And cram-down legislation has been out there for a long time. The problem, and this is what I think is President Obama's stick for the legislation he's going to announce later today, is that there's going to be a voluntary invitation to all of the mortgage lenders out there to do the right thing, and to help -- there is going to be huge financial incentives for them to help reduce the principal payments or at least reduce the mortgage interest rates on all of these loans, not just for people who are already in trouble, 90 days late, but people who are at lisk of defaulting on their loans.

The idea is to inject a whole lot of stability. If they don't do it, then I guess the final last call would be bankruptcy court, which is very, very damaging for an individual, and with the new bankruptcy laws, hard to get into. But, yes, there would be that stick at the end that the principle balance could be reduced.

COLLINS: Yes, absolutely. All right. Well, we have so much to talk about, I'm sure we'll talk with you again. Ilyce Glink, we sure do appreciate your time. Thank you.

And just a reminder now, we will have live coverage of President Obama's remarks on relief for homeowners. We expect to hear from him at 12:15 Eastern, 9:15 Pacific.

A Texas billionaire being accused of massive fraud. Federal officers raided the offices of R. Allen Stanford. They also shut down his companies, Stanford International Bank and Stanford Financial Group. The SEC says he is at the center of an $8 billion investment scam. Right now, investigators don't know where he is.

Getting the word out. Government agencies are now trying something new, as they try to get ahead of the salmonella scare.

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COLLINS: We have new numbers just into the CNN NEWSROOM now on the scope of the nationwide salmonella outbreak. The CDC now says 643 people have gotten sick in 44 states and Canada. That's six more cases reported since last week. Nine deaths are being blamed on the outbreak.

The spread is, of course, leading agencies to use new technologies to help get the word out. CNN senior medical correspondent Elizabeth Cohen is joining us now.

Yes, it's interesting, because they feel like they've been doing everything they can by way of the media, of course, and now they're going to some alternative measures.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right. That's because everyone is. So, they're sort of joining the crowds, you can say. Look at this. Who would have ever thought the FDA actually Twitters. This is the FDA's Twitter page. It's only been up for, I believe, a couple of months. And they give updates in real time about what's being recalled.

For example, look at this one here. Multiple brands of trail mix and fruit and nut trail mix being recalled. That was just yesterday. A couple of hours before that, the Alps Candy Company recalled some of their products.

So, this is kind of a quicker and easier way of seeing the recalls, because if you go to the FDA Web site, it can get a little confusing. This is just simpler and is more sort of in keeping with what a lot of people are doing these days.

COLLINS: That's exactly right. I mean, it's a little bit different from the actual social networking that we talk about.

COHEN: Right. Someone asked me, is this true social networking? Kind of sort of, but not really. I want to show you something. This right here is my home page. You can see it over here. You can see, there I am.

And so since yesterday, I have been trying to get the FDA to talk to me: "Can I ask you a recall question?" Because this is what people do on Twitter. They talk to each other. That's kind of the point.

But you know what? They haven't gotten back to me. So, for the government, it appears that social networking is a one-way street. It kind of takes the social out of social networking.

COLLINS: True, true. It just sort of gives them another posting site, if you will.

COHEN: Exactly, exactly.

COLLINS: All right. So, is this just the Twittering now that they're doing, or is there more?

COHEN: No, they're doing some actually some pretty innovative things. For example, if you look on the FDA's Web site, if you want to, you can sign up to get text messages about what peanut products you shouldn't be eating.

COLLINS: Wow, like when you're at the grocery store.

COHEN: Exactly. Exactly. And there is over 2,000 of them, so that actually might be helpful. And you can get widgets for your own home page. There's a whole bunch of things you can get these days.

COLLINS: All right. Well, definitely a story to stay on top of. Because it still seems like even though we've been covering it for a long time, that it continues to change and more products are being put on this don't-touch list.

COHEN: Right. Now products being recalled every day.

COLLINS: All right, Elizabeth Cohen, appreciate it. Thank you.

As if the state of California didn't have enough to worry about with their massive budget deficit, look at this now. A nasty mess spilling into the San Francisco Bay. Showing you some live pictures here from our affiliate there, KGO. Thousands of gallons of partially treated sewage pouring into the bay from a water treatment plant.

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OMAR ARIAS, SAUSALITO-MARIN CITY SANITARY DISTRICT: About 60 percent of the solids in something like that has already been removed from the normal sewage. But there's still a high bacterial load. And that poses significant risk to human contact.

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COLLINS: The leak is coming from a corroded pipe four feet under water. Warning signs have been posted all along the Fort Baker shoreline, telling people to stay away. Officials estimate 300,000 gallons of sewage will be released into the bay before the pipe is fixed later on today.

Arguments with the in-laws. Usually, there is nothing too special about that. But a family rift in Pakistan could dictate the outcome of a risky plan for peace.

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COLLINS: Secretary of State Hillary Clinton making a second stop on her Asian tour this morning. Clinton landed in Indonesia just a few hours ago. She's meeting with the country's leaders today to discuss partnerships in Southeast Asia. Clinton was in Japan yesterday. China and South Korea are next on the agenda.

Four weeks into office, Barack Obama has ordered the first combat deployments of his presidency -- 17,000 more U.S. troops will be heading to Afghanistan. On the campaign trail, candidate Obama vowed to bolster U.S. forces there to fight resurgent Taliban militants. Yesterday, Afghan President Hamid Karzai spoke on the phone with President Obama for the first time since last month's inauguration. In Pakistan, the government cut a deal with a Taliban leader in hopes of ending violence in the Swat Valley. But some worry forces within this man's own family could threaten that agreement.

CNN's Stan Grant has more now from Islamabad.

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STAN GRANT, CNN CORRESPONDENT (voice-over): Two men from the same family. Some say they hold the fate of Pakistan's Swat Valley, if not the future of the country, in their hands. The older man, Sufi Mohammed, a militant jailed for six years in 2002 after leading thousands of Pakistani Taliban to fight against allied forces in Afghanistan.

The younger, Maulana Fazlullah, he's Sufi Mohammed's son-in-law, leader of the splinter Taliban group in Pakistan's Swat Valley, a man known as the radio mullah for broadcasting his message of jihad across the airwaves. To spread (INAUDIBLE) religion, this is our purpose, he says. This is why we have been born, for this purpose. He's fond of riding a white horse and launching execution raids.

ZAHID HUSSAIN, AUTHOR, "FRONTLINE PAKISTAN": He was a (INAUDIBLE) school dropout, did not have much future. And finally he found some meaning in life when he joined Sufi Mohammed.

GRANT: Pakistani journalist and author Zahid Hussain has followed both men for years. He says Pakistan government strategy is to work with Sufi Mohammed, who they see as more moderate. It has chosen to cut a deal with him, to impose strict Islamic or Sharia law in Swat.

It comes after a ruthless campaign of terror by the Taliban, beheadings and torching schools. The militants have agreed to a 10- day cease-fire. Sufi Mohammed hailed as a hero in Swat for bringing a break in the violence, thousands of people turning out to see him in Mingora, Swat's main city.

The regional government in Swat, hoping Mohammed can win the people and isolate hard-liners in the Taliban. Those who choose to take the path of violence, I appeal to them to work for peace now, says Ameer Haider Hoti, the chief minister. But to win a permanent peace, Sufi Mohammed needs to convince his own son-in-law to lay down his guns.

HUSSAIN: They believe that Sufi Mohammed has enough support based there to persuade the people, as well as his son-in-law, to give up arms, which is not going to happen.

GRANT (on camera): The Pakistan government is gambling Sufi Mohammed will bring a more moderate influence to Swat. Analysts warn that could backfire badly.

HUSSAIN: Swat had become the main center of jihad for the militants across Pakistan. GRANT (voice-over): Father and son-in-law, teacher and disciple. The Pakistan government may think it can divide them, speak to them separately, but the fear is, they will answer with one voice.

Stan Grant, CNN, Islamabad.

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COLLINS: Foreclosed properties becoming neighborhood eyesores. One man got so mad about it, he did something to preserve his property value and yours, too.

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COLLINS: President Obama in Phoenix to unveil his housing plan today. We are, of course, going to have live coverage of his remarks on relief for homeowners. Should get started a little over an hour from now, 12:15 Eastern, 9:15 Pacific.

It's not just the people whose homes are foreclosed on that suffer. Property values can drop in the neighborhood, and empty homes can become eyesores. In fact, it made one homeowner mad as heck, and he did something about it.

CNN's Ted Rowlands has his story.

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TED ROWLANDS, CNN CORRESPONDENT (voice-over): The people living next door to Mark McKinzie moved out almost two years ago. Now, weeds are actually growing out of the garage.

MARK MCKINZIE, LENDEROFFENDER.COM: I said, well, what can I do? Well, I can create something that might call attention to the problem and give frustrated residents a voice out here.

ROWLANDS: Last month, McKinzie created lenderoffender.com, a Web site where people anywhere in the country can post, for free, information about neglected foreclosed properties. For each entry, there's a photo, a few comments and the name of the lender or bank that owns the home. If the property is cleaned up, McKinzie takes it off the site. He says this house down the street has been vacant for months.

MCKINZIE: Look at the lawn. I mean, that is black, dead lawn. So, no one in this neighborhood deserves to live next to this property. And homeowners in this area deserve to know who owns this property, too.

ROWLANDS: Citibank owns this house. They told CNN it became vacant in late November and is now in escrow. As for the lawn, they said, quote, "We did not sod the lawn because it moved in the market very quickly."

One lender, Wells Fargo, actually cleaned up their properties listed on the Web site. In a statement to CNN, they said in part they are, quote, "very concerned with preserving the condition of homes and neighborhoods," and added they'll keep watching the Web site.

Delores Conway, professor at the University of Southern California specializing in real estate, says lenderoffender.com may push others to act.

PROF. DELORES CONWAY, UNIVERSITY OF SOUTHERN CALIFORNIA: It may help to nudge the lenders along a little bit in terms of coming out and putting in the proper maintenance to the property.

ROWLANDS: McKinzie's hoping she is right, especially when it comes to the house next door.

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COLLINS: Mark McKinzie says he invites anyone living near poorly maintained foreclosed homes to take a few photos and add them to his site. Ultimately, he hopes the problem will be cleaned up so the site won't be need anymore.

I'm Heidi Collins. Join me again tomorrow morning beginning at 9 a.m. Eastern. For now, CNN NEWSROOM continues with Tony Harris.