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Budget Approval Averts Crisis in California; President Obama Goes to Canada; U.S. Losing Base in Kyrgystan

Aired February 19, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

It all came down to just one vote in California. After an epic all-night session, the legislature passed the state's budget this morning, averting a major financial crisis.

Our Ted Rowlands is in Los Angeles.

Ted, good to see you.

You know, there was the very real possibility of thousands of people being laid off if this hadn't passed.

TED ROWLANDS, CNN CORRESPONDENT: Well, absolutely, Tony. The reason they worked all night was because today, 10,000 pink slips were going to go out. Plus, more importantly, a more immediate effect, 300-plus construction jobs around the state were going to be halted if the legislative body didn't come up with a solution to the $42 billion deficit.

They did it just a few hours ago, after staying up all night. It came down to a Republican state senator in the middle of the state, in Santa Maria. His name is Abel Maldonado, and basically, he broke ranks from the Republican Party and sided with Democrats and Republican Governor Arnold Schwarzenegger.

(BEGIN VIDEO CLIP)

ABEL MALDONADO (R), CALIFORNIA STATE SENATE: All I can say is that this state of mine, California, is my home. It has given me everything.

It has given me an opportunity. It has given my family the American dream. And for me to sit and to watch it be destroyed by partisan stubbornness, I know that there will be dire political ramifications for me when I cast this vote, but the ramifications to the people of California are far much greater.

(END VIDEO CLIP)

ROWLANDS: Now, Tony, he basically had everybody over a barrel, so he didn't just give up his vote. Attached to the budget are three constitutional amendments.

One very important one is going to redefine the way primaries are conducted in this state. He has added an attachment that will make them open primaries, meaning those secure seats on both sides of the aisle are now going to be in jeopardy if this holds. Everybody in the House sort of took a step back. Nobody wanted to agree to it, but they had to.

Here is a little flavor of how disgusting this process was.

(BEGIN VIDEO CLIP)

GLORIA ROMERO (D), CALIFORNIA STATE SENATE: This is a disgusting process. This is not good government, this is not political reform. This is old-fashioned special interests.

(END VIDEO CLIP)

ROWLANDS: That's Gloria Romero. She's a Democrat. Didn't want to go along with this, but as we said, Tony, basically, this was down to the wire.

If something wasn't done, there would have been a citizen revolt probably in this state because of the job losses. Now at least they can start issuing checks for tax returns and getting back to the business.

Nobody is happy with it. There is a lot of spending cuts and tax increases. But at least they have done their jobs, three months too late, but done their jobs.

HARRIS: Yes. Yes. How did we get here?

You know what? We're going to debate the months-long debate over the California budget. And Ted will be back. And we will be joined by Evan Halper with the "Los Angeles Times."

Ted, good to see you. See you again in about 20 minutes or so.

The nation's money problems are glaringly apparent elsewhere, as well. Kansas has stopped mailing income tax refunds because it didn't have enough money in the bank. The situation also threatens state workers' paychecks until the governor signs legislation, moving money from one account to another.

(BEGIN VIDEO CLIP)

GOV. KATHLEEN SEBELIUS (D), KANSAS: We will pay our bills. We have always intended to pay our bills. I'm just sorry that we had to sort of jeopardize the credit rating of Kansas, potentially, and have this high drama that was not necessary.

(END VIDEO CLIP)

HARRIS: Boy. The governor says the state expects to receive almost $1.7 billion in federal stimulus money.

If you're looking for the slightest glimmer of good economic news, this will have to do for now. New jobless claims did not increase last week. They held steady at 627,000. Economists had predicted a slight decline, but that didn't happen.

Perhaps the more important number today, the Labor Department says continuing unemployment claims are closing in on the five million mark. That's the fourth weekly increase in ongoing claims, and that is a new record.

One other note about jobs. Entertainment giant Disney is setting the stage for new layoffs. The company will streamline the unit that runs Florida's Disney World and California's Disneyland. Disney didn't specify how many people would lose their jobs, but the two parks employ nearly 80,000 workers.

Disney has already offered buyouts to 600 theme park executives. The unit's operating income was off 24 percent last quarter.

President Obama visiting our neighbors to the north. He arrived in Ottawa, Canada, last hour on his first foreign trip as president. On the agenda -- listen to this -- the economy and trade, energy and the environment, and global security.

White House Correspondent Dan Lothian is traveling with the president.

And Dan, the president taking key members of his team along for what is being described here as a working lunch.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. Only expected to be on the ground here for about seven hours or so, but he does have with him his key economic adviser, Larry Summers, also his energy and climate czar, Carol Browner, and his national security adviser, General Jim Jones. They will be attending that working lunch with him, as well.

As you mentioned, when he got off Air Force One, he was greeted by several dignitaries, including the governor general, Michaelle Jean, of Canada. Then he'll be making his way over here for that lunch meeting and having a press conference afterward.

As you pointed out, Tony, he'll be focusing on a number of issues, like NAFTA, and also the economy. First of all, the economy in the United States.

The president just signing that $787 billion stimulus plan. Well, here in Canada, Prime Minister Stephen Harper is also pushing his own stimulus plan, a much smaller package, but also focusing on infrastructure and also some tax cuts. So there will be some discussion, we're told, about that.

But NAFTA, of course, is a key component of this lunch discussion, because this is something where on the campaign trail, the president had very strong words, talking about wanting to renegotiate NAFTA to make it more favorable to labor and also environmental, as well. The president, in an interview with Canadian television recently, though, pulled back a little bit from that, saying that in these times, when trade has really fallen off and the economies across the world are hurting, that this might not be the time to really talk about any kind of pullback in trade. But no doubt NAFTA will be an important issue, although a small issue, because this is only a short visit and it's over lunch here today in Ottawa -- Tony.

HARRIS: That's right.

Our White House Correspondent Dan Lothian, traveling with the president in Ottawa, Canada.

Dan, appreciate it. Thank you.

And our Canadian iReporters are putting in their two cents. Hear what they say the president should know about Canada. That's coming up a bit later in the CNN NEWSROOM.

Twisters in February. Strong storms rock the South. Meteorologist Rob Marciano is in the CNN Severe Weather Center.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

GEN. DAVID MCKIERNAN, COMMANDER, U.S. FORCES, AFGHANISTAN: Those forces, of course, are aimed at being operational by the highest part of the insurgent fighting season this summer, and to be in place and operational before the projected elections in August of 2009.

(END VIDEO CLIP)

HARRIS: The U.S. commander in Afghanistan talking about the decision to pour 17,000 more troops into Afghanistan. Defense Secretary Robert Gates is now trying to convince NATO to add more troops.

Even if Gates is mildly successful, there's another problem for the Pentagon. Kyrgystan's parliament has voted to close the base used by the United States to re-supply troops in Afghanistan.

Our Matthew Chance is in Moscow.

And Matthew, it is presumed Russia is behind this vote. What's being said of it in Moscow?

MATTHEW CHANCE, CNN CORRESPONDENT: Yes. Well, it's assumed that by analysts, by U.S. officials, but the Russians deny it. So do the Kyrgystan authorities. They say that their decision to close down this crucial U.S. airbase had nothing to do with the fact that Russia had offered $2 billion in emergency aid and economic measures to the struggling Kyrgystan government at this time.

They're saying that this is an unrelated decision, but certainly what we're seeing here is Moscow attempting to reassert its influence in this former Soviet/Central Asian area. And to say very clearly to the United States, look, we will help you in Afghanistan, but only on our terms. And in that spirit, they may have put influence on the Kyrgystan government to shut this base down. But they're also extending the hand of friendship to the United States on their other western borders and saying they will allow non-lethal supplies to travel across Russian territory by land from NATO countries for the United States en route to other Central Asian countries and also to Afghanistan.

So they're playing something of a double game, it seems.

HARRIS: I see. OK.

And Matthew, if you could clear this up for us, what exactly was the United States military using this base for? Was it simply about supporting the Afghan mission?

CHANCE: Yes. I mean, it was mainly about that.

It was established in 2001, after the 9/11 attacks. It's been the place where thousands of U.S. troops have been ferried in and out of Afghanistan, in the war zone, whether they be injured or whether they're just going on rotation, into combat missions. It's also been an important staging ground to gather the essential supplies of food and of ammunition, of other sort of merchandise that is necessary to support such a big war effort in Afghanistan.

HARRIS: OK.

CNN's Matthew Chance for us in Moscow.

Matthew, appreciate it. Thank you.

The 17,000 additional troops being sent to Afghanistan could be there for as long as five years. That is the word from the commander of U.S. and NATO forces.

CNN's Atia Abawi reports on the challenges and dangers that persist after seven years of war.

(BEGIN VIDEOTAPE)

ATIA ABAWI, CNN CORRESPONDENT (voice-over): A midnight convoy in Afghanistan. Suddenly, a routine mission is anything but. Soldiers of the 10th Mountain Division open fire at a car after the driver failed to heed orders to stop.

It turns out, the driver is a civilian. He has been shot through the arm and is lucky to still be alive. But it shows how hard it is for U.S. units just deployed here to distinguish friend from foe.

More than 3,000 U.S. soldiers are being sent to the volatile provinces of Wardak and Logar, bordering Kabul, in the seventh year of a relentless war. The weather and terrain is severe. These soldiers are at the sharp end of a U.S. plan to snatch back the initiative from the Taliban. COL. KIMO C. GALLAHUE, U.S. ARMY: It is very easy to draw the line why the U.S. should be involved in here. You just have to go back to September 11th. And if we leave chaos, or we cede portions of Afghanistan, in my mind, to chaos, then we haven't protected the world, nonetheless the United States.

ABAWI: The troops get a mixed reception from Afghans. The governor of Wardak Province says security will lead to development.

GOV. HALIM FEDAI, WARDAK PROVINCE, AFGHANISTAN: New forces is an opportunity to improve the security of the people in this province. And also, for us, it means that we can utilize this opportunity for other actors, such as a developmental actor.

ABAWI: This new unit in the town of Jarez (ph), are meeting their Afghan counterparts...

UNIDENTIFIED MALE: I'm Captain Zahm (ph). I'm the commander of Alpha Company.

ABAWI: ... in an area where the Taliban have made inroads. Civilians are more wary, and the soldiers are quickly finding out that there are expectations, even among the youngest citizens.

(on camera): What the children here just told me is that the one thing that they want is their school. The ANA, the Afghan National Army, has taken over their school, and now they say they don't have a place to get educated. But Captain Zahm (ph) here said that now that he knows that that's an issue, he will help.

(voice-over): As the snow melts, the true battle for the future of Afghanistan will begin. It's not just a war of weapons, it's a battle to stabilize an all-too-forgotten country.

(END VIDEOTAPE)

HARRIS: CNN's Atia Abawi reporting.

So many new government programs, so much money. Personal Finance Editor Gerri Willis joins us with how the stimulus and TARP might serve you.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

PATTY LEWIS, IREPORTER: What about the unemployed that have been unemployed for over a year, and are now facing foreclosure and haven't replenished their income? We do not overspend like a lot of American citizens think the people of victims of foreclosures do. We haven't been on vacation in 25 years, we don't go to the movies. Our house is our priority.

(END VIDEO CLIP)

HARRIS: Yes. Our iReporters, smart as ever, asking the really tough questions here. That was CNN iReporter Patty Lewis weighing in on the foreclosure prevention plan. She says she hopes it will address an overlooked issue, people at risk of losing their homes because they have lost their jobs.

So, two battle strategies emerged this week in the war on this recession. The country got a stimulus law, struggling homeowners got a hand. So far, questions are all you have probably gotten out of the deal. So let's talk to Personal finance Editor Gerri Willis. She's with us. She worked up a financial crisis survival guide for us.

Gerri, great to see you.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Great to see you, Tony.

HARRIS: OK. So the stimulus extends unemployment benefit. How do people find out if they're eligible? Let's start there.

WILLIS: Right. Well, you can't get your benefits if you don't know what they are; right?

HARRIS: Yes. Yes.

WILLIS: The stimulus bill provides jobless workers with an additional 20 weeks in unemployment benefits and 13 weeks on top of that if they live in what's deemed a high unemployment state, which there are now about 30. In addition, the weekly unemployment benefit will temporarily increase by 25 bucks, on top of the roughly $300 that jobless workers receive each week.

So for answers, go to the Department of Labor's Web site at servicelocator.org. You're going to find a colored map there. Click on your state, and get detailed info on unemployment benefits and how to file a claim.

HARRIS: Nice. What about government programs like food stamps, Gerri? How do you know if you qualify?

WILLIS: Right. Well, the stimulus bill also included that provision that would increase food stamp payments by 13.6 percent.

Now, to find if you qualify, go to the Department of Agriculture's Web site and screening tool at FNSS -- I'm going to say that again. FNS.USDA.gov. Lots of Web sites here.

On this site, you can also fill out an online application to receive food stamps. The devil is in the details.

HARRIS: Yes, as always.

How does a homeowner know if the foreclosure prevention deal unveiled yesterday is for them?

WILLIS: Well, there's a lot of details here. Homeowners who are paying their mortgage but are under water in their mortgage, or can't refinance because home values have dropped so drastically, they should take to their lender.

If their loan is held with Fannie Mae or Freddie Mac, and they meet other requirements, they may be able to refinance into a fixed 15-or-30-year loan with no prepayment penalties. Now, for homeowners who are struggling with payments because their mortgage debt accounts for more than 31 percent of their income -- that's too much dough -- they may be able to get their loans modified.

Talk to your lender or call the Housing and Urban Development counselors at 800-569-4287.

HARRIS: Yes. And Gerri, any help for people who have lost their jobs?

WILLIS: Well, to get help with your resume, sort through job postings, find career information. A great Web site, careeronestop.org. Now, this site is sponsored by the Department of Labor.

Finally, for folks who may be older, maybe they're having trouble landing a job, finding a part-time job, check out a new Web site the AARP folks have put out. It's aarp.org/realrelief.

And don't forget to tune into "YOUR BOTTOM LINE" this...

HARRIS: There you go.

WILLIS: ... Saturday at 9:30 a.m. Eastern Time. We'll analyze this housing bill, we'll take a look at who gets money, who doesn't. We'll tell you what it means to you and your family.

HARRIS: Hey -- and Gerri, thanks again for your help yesterday in breaking out the president's plan.

WILLIS: Oh, my pleasure.

HARRIS: It was awesome.

All right. Gerri, thank you. Have a good day.

WILLIS: You're welcome. You too.

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

One of the country's biggest states facing a financial shutdown. Lawmakers had to stay up all night to deal with the budget crisis. It wasn't pretty. Billions of dollars, thousands of jobs hinging on one politician's vote.

(COMMERCIAL BREAK)

HARRIS: So after an all-night session that came down to a single vote -- who is this guy? Oh, I know his name. Where's his name? I have it somewhere. The state senate -- that's George Runner. State Senator George Runner who was speaking (ph) there.

The state senate passed a budget deal in cash-strapped California. The state assembly (AUDIO GAP) a fiscal crisis that threatened thousands of state jobs and hundreds of projects. The budget bill is on its way to Governor Schwarzenegger for his signature.

The package includes tax increases, spending cuts, and borrowing to close a projected $42 billion deficit. Democratic leaders made several concessions in order to get the one Republican vote needed for passage. Governor Schwarzenegger has hailed state lawmakers for passing what he calls historic bipartisan reform measures.

Taking a closer look now, Evan Halper is the Sacramento bureau chief for the "Los Angeles Times," and he joins us from Sacramento. And CNN's Ted Rowlands is with us again from Los Angeles.

Ted, good to see you.

And Evan, let's start with you.

Why, oh why, did the legislature have such a difficult time passing this budget? Three months of fighting over it. Boil this down for people around the country. Why did it take so long? It felt to many like the state was being held hostage.

EVAN HALPER, SACRAMENTO BUREAU CHIEF, "LOS ANGELES TIMES": Well, it's always difficult to pass a budget with a deficit this big in California. And the reason particularly is because there is a two- thirds vote requirement, where one of just three states has that. And it basically gives the minority Republicans who don't have a lot of clout in Sacramento power to leverage it for all of the things they want. And so at any time there's, you know, a deficit to bridge, this kind of situation happens here.

HARRIS: Yes.

And Ted, did Dems and Republicans agree on the extent of the crisis? I mean, we're talking about a projected deficit of $42 billion by the middle of next year. Or did they just differ on how to close it?

ROWLANDS: No, they agreed...

(CROSSTALK)

HARRIS: Yes. Let me send that to Ted for a second.

ROWLANDS: ... on the problem, that it was significant, but they just did not agree in terms of how to solve the problem, and that Republicans just said, no, we're not raising taxes. And they put their -- they settled in and said, we're not going to agree to this.

But the pathetic reality in this state is that these lawmakers are beholden to their parties, not the voters. If you break ranks in this state -- and this is on both sides -- you will feel it. They will run a campaign against you the next primary. So lawmakers are petrified.

So when the state really needs these people to rally and get something done like they did this year, because we go through this every year, they can't. They're petrified, because they're going to lose their seat. Luckily, the stakes were so high here today, they pulled the all-nighter and got it done.

HARRIS: Evan, weigh in on that. Did everyone agree on the size of the problem that needed to be tackled here?

HALPER: Yes, absolutely. Everyone agreed the deficit is roughly $42 billion over the next 17 months or so. And he's absolutely right. I mean, every Republican in the legislature had signed a pledge that they would never raise taxes, every Republican but one. You needed six Republican votes to pass the budget. And because we have these term limits in California, you know, folks aren't around that long, and they're reluctant to go out on a limb and, you know, cross their parties.

HARRIS: Ted, did Republicans offer any alternatives? I understand not being in favor of tax increases, but I'm wondering, were there any alternatives offered?

ROWLANDS: Early on, yes, there were. But this is such a huge problem. The governor has said, if you think we can do this without any sort of tax increase, you've got a real issue with your math. This is a new definition of the new math, basically.

And so they were -- but they were also involved in the negotiations leading up to this bill, this budget. So, they did have some involvement. It was just that because of this no-tax pledge that a lot of them had signed, they couldn't vote for it, because they were fearing political backlash.

HARRIS: And Evan, how much of a test was this for the governor, a political test, or otherwise, for Governor Schwarzenegger?

HALPER: Well, it was quite a test, and, you know, he's had problems with the Republican Party here in California. I mean, he's popular nationwide, but any time he needs to get anything done in the legislature that requires bringing the Republicans over, you know, the Democrats say, look, you're a big Republican governor, you know, got swept into office as an anti tax crusader, these are your people, why can't you bring them along. And he never seems to be able to muster up any votes from them, because they feel he's, you know, he's left -- he's parted ways with them.

HARRIS: So, Ted, how diminished is the governor? Opinion polls, where do they stand for the governor right now?

ROWLANDS: He's dropped, but he's nowhere near as low as state lawmakers. And as Evan will tell you, this isn't just Governor Schwarzenegger, it's every governor in California, has the same problem, getting people to come together. It's just a locked up, ungovernorable state.

HARRIS: Locked up, ungovernorable. Evan, I found this little nugget in your reporting. So, the budget now, clearly, has passed, and the governor will sign it. Even if the deal makes it through the legislature and Schwarzenegger signs it, it will unravel if voters do not approve several provisions that would be on the ballot this spring. Evan, explain this.

HALPER: Yes, this is the kind of thing that happens every budget. They pass a plan, and it falls out of balance right away. This one all hinges on a whole bunch of ballot initiatives. Voters have to agree to take money away from mental-health programs and early-childhood education programs. They have to agree to borrow $500 billion against future lottery profits, which is confusing, and they may think is taking money away from education and not do. And if they don't approve those things, suddenly we're billions in the hole again.

HARRIS: Oh, my goodness. All right. Let's leave it there, Evan Halper of the "Los Angeles Times" and CNN's Ted Rowlands. Ted, good to see you. Guys, thank you. We appreciate it.

HALPER: Thank you.

HARRIS: I believe -- do we have the motorcade shots of the president? All right. Let's take a look. The president leaving the Ottawa International Airport, now on his way to Parliament Hill, where the president, President Obama, will meet with the prime minister, Prime Minister Stephen Harper, and parliament officials. The presidential motorcade.

As you know, the president is in Ottawa, Canada right now for meetings with the prime minister, Stephen Harper. And at the top of the agenda, obviously, economic issues, energy, climate. The president taking along Lawrence Summers, his top White House economic adviser, energy and climate coordinator Carol Browner, all for this meeting with the prime minister.

Clearly, topping the agenda will be trade. Discussions on NAFTA, the North American Free Trade Agreement, and World Trade Organization rules will be discussed. Canada, as you know, was among a number of countries voicing concerns about "buy American" requirements in the $787 billion economic stimulus package just passed by Congress last week. The provision was modified in the final legislation to bar requirements that they violate trade agreements.

Canada is -- why is this of concern to Canada? Canada is the biggest market for U.S. exports. So, the presidential motorcade now on its way to Parliament Hill, and we will follow these pictures as we get them here in the CNN NEWSROOM.

So, just how much money is our nation spending? It seems like every day we're hearing about another bunch of bailout billions. Josh Levs is here to talk us through how much all of this is adding up to. Josh, help us through this.

JOSH LEVS, CNN CORRESPONDENT: Tony, you ready for this? HARRIS: Yes.

LEVS: Are you?

HARRIS: No.

LEVS: When you look at it all on one list, which I've actually done for the first time today, it's a little scary.

HARRIS: All right.

LEVS: Check this out. The fine folks at CNN Money put this together.

HARRIS: Share the pain with us.

LEVS: All right. Now, let's keep in mind as we see this, the government says that the recession goes back to December 2007. And we've been doing things for more than a year, right? People got stimulus checks last year.

I'm just going to scroll way down so all these various plans. Check out the totals here. Tony, of all these plans that we've been hearing about, $10.8 trillion combined inside these plans. And this keeps going up.

Don't be surprised if later today this jumps over $11 trillion because there's some (INAUDIBLE). The figure you see here is the amount that's actualy been spent so far, 2.1 trillion. More and more keeps getting spent. Now, there's various ways to contextualize this, but here's one I want to use, which is our official debt as a nation from treasurydirect.gov.

Our official debt, Tony, is $10.8 trillion, and that obviously does not include those other monies that you were just seeing that our nation plans to spend as part of this bailout. So, we're talking about a whopping, massive figure that keeps growing all the time. And you can hear that cash register in the background. I mean, it's astounding what we're looking at here.

And I'll tell you one thing, I mean, every few days, as you were saying, we hear about more and more billions. I have a graphic for you here of just the ones that are some of the latest plans that the nation is talking about.

First of all, obviously, the $787 billion, right? For the stimulus. President Obama is now pushing the $75 billion plan to help homeowners. That would actually come from TARP funds. Short version, it's not extra spending necessarily, it's stuff that's already been promised. We're also talking about another $200 billion now to help Fannie and Freddie.

And you know, we keep hearing about these plans, but as a nation, in the end, keep in mind, not only are we all the way up in trillions, but all of this money, all of it, is borrowed money, Tony, which means we pay interest on all of it. Which means, no matter how much we plan to spend, it's ultimately going to be more, because then you have to pay interest on all of the money, too.

HARRIS: So, we're talking about actual spending in that big figure you showed us. Actual spending...

LEVS: $2.1 trillion.

HARRIS: ... that's promised. And also, commitments of dollars, if they're needed.

LEVS: Exactly.

HARRIS: If they're needed.

LEVS: Well, if they're needed, but I mean, these are all things that the government has said, yep, we're ready to do these as part of these plans. You're right, the actual spending so far, just over $2 trillion.

HARRIS: My goodness. All right, Josh, appreciate it. Thank you.

LEVS: Thanks, Tony.

HARRIS: College students are feeling the pressure of rising tuition in these uncertain times. As part of my "Class in Session" series, hear how troubled these future leaders are about making the grade and meeting their financial obligations.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: My parents wanted so much for me, and at times it feels like I can't deliver it, because I'm here for an education. My tuition here is actually, with the hope (ph), is more expensive than my sister's was, and my sister is only four years older than I am.

HARRIS: Is that pressure on you?

UNIDENTIFIED FEMALE: That's a lot of pressure on me, actually, to keep up that level of perfection that you need to have in order to make it in this country.

(END VIDEO CLIP)

HARRIS: Wow. More frank talk with these bright young students tomorrow. Another installment of my "Class in Session" series. That's Friday, noon Eastern right here in the CNN NEWSROOM.

President Obama in Canada. What Canadians think he should know about our neighbor to the north.

(COMMERCIAL BREAK)

HARRIS: Glamour couples on the red carpet, and when both stars are nominated for Academy Awards, it is a moment tailor-made for Hollywood. The story from entertainment correspondent Brooke Anderson.

(BEGIN VIDEOTAPE)

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: One Oscar- nominated star escorting another. It's the ultimate in arm candy.

ROBERT OSBORNE, OSCAR HISTORIAN AND AUTHOR: You put two of them together, and then they come in with all that va-voom factor. That's what makes Oscar shows and Oscar nights great fun.

ANDERSON: Oscar historian and author Robert Osbourne is talking about the glamour and excitement of that rare event when a mega-star couple scores Oscar nominations in the same year. This year, it's Brangelina.

OSBORNE: There have been few high-profile couples as famous as Brad and Angelina.

(VIDEO CLIP -- "THE CURIOUS CASE OF BENJAMIN BUTTON")

ANDERSON: It earned his best actor nomination for "The Curious Case of Benjamin Button."

(VIDEO CLIP -- "CHANGELING")

ANDERSON: Jolie is up for best actress for "Changeling". They're the latest famous duo to share Oscar nominations at the same time.

OSBORNE: There have been many glamorous couples through the years. Probably one of the most famous was Richard Burton and Elizabeth Taylor, when they were both nominated in one year. Frank Sinatra and Ava Gardner were married at the time that they were both nominees in 1953. Laurence Olivier and Vivien Leigh were a very high- profile couple back in the late '30s, when they were both nominated, she for "Gone with the Wind," he for "Wuthering Heights."

ANDERSON: More recently, there was Heath Ledger and Michelle Williams, both nominated for Oscars for "Brokeback Mountain" back in 2006, and Tim Robbins and Susan Sarandon for "Dead Man Walking a decade earlier.

OSBORNE: It's really fun to see them just kind of arriving and being themselves and all the glamour and the paparazzi. I think it adds to the excitement of the night and the glamour of the night.

ANDERSON: A night when international attention will be focused on Hollywood, and Hollywood's golden couple on the carpet.

Brooke Anderson, CNN, Hollywood.

(END VIDEOTAPE)

HARRIS: And the Academy Awards are this Sunday, and CNN entertainment correspondents will take you to the red carpet. President Obama is in Canada this morning, his first international trip as president. So, what should we know about Canada? OK, let's take a trip to CNN.com's iReport desk. Let's check in with Tyson Wheatley, Tyson's corner. Hey, Tyson. Good to see you, sir. What are we hearing from our friends to the north?

TYSON WHEATLEY, PRODUCER, CNN.COM: Well, you know, we're hearing that they're really nice people, apparently. I've got this video I want to show you, and it comes to us from Steve Wright, and he lives in Toronto.

But this weekend, he was in Ottawa, where, of course, President Barack Obama is today. And he talked to some locals there about the president's visit. And he asked them this question. He said, what should Obama know about Canada? And let's go ahead and take a listen to some of these really nice responses.

HARRIS: OK.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: President Obama should know that Canada is not only the U.S.'s closest neighbor, but we really are their closest friends.

UNIDENTIFIED MALE: What makes Canada unique is the fact that we have people from all over the world that choose Canada because we're tolerant, we make good friends, we make good neighbors, we take care of one another.

UNIDENTIFIED FEMALE: I think President Obama would really enjoy the friendless of the people in Canada.

UNIDENTIFIED FEMALE: Well, he should know that this is a beautiful country, very, very beautiful, nice people, very, very nice. And should get to know the people.

UNIDENTIFIED MALE: Yes. I think he should know that Canada is multicultural and accepting and open.

UNIDENTIFIED FEMALE: The one thing President Obama should know is that we're great friends with the United States.

UNIDENTIFIED MALE: One thing President Obama should know about Canadians is, we're having fun, no stress!

UNIDENTIFIED MALE: I think President Obama should know that Canadians are very polite.

UNIDENTIFIED FEMALE: We're extremely friendly here in Canada.

UNIDENTIFIED FEMALE: We're known around the world as being very nice and welcoming to people from all over the world. We're very multicultural.

UNIDENTIFIED MALE: I think it's very important that Mr. Obama know about the friendship of -- from Canadian to American. It's always been. I think it's alwasy going to be social. So he should realize the friendship that we have toward the United States.

UNIDENTIFIED MALE: He should definitely know that we don't say "aboot."

UNIDENTIFIED MALE: And "eh" all that much. .

UNIDENTIFIED MALE: We do say it, just not...

UNIDENTIFIED MALE: Yeah, we just -- quite a bit, eh?

(END VIDEOTAPE)

WHEATLEY: So, Tony, I'm sure you're feeling the love -- I know I am -- from our neighbors to the north. You know, what I want to know, though, is, really, like, how representative is this, really, of our friends to the north, you know?

And we know we have a lot of viewers and a lot of readers of CNN.com from Canada. And we want to know what you think about not only President Obama's trip, but about this video that you watched. So, are you really this excited? Are you really this nice? Let us know. Go to ireport.com.

HARRIS: Well, we trust, from the pictures that we're seeing right now that the president is receiving a pretty warm welcome there at Parliament Hill, where the president arrived just a short time ago for his meeting with the prime minister, Stephen Harper, and other parliament officials.

Of course, today's talk is described as the power lunch of all power lunches, with so many items on the agenda for the two men to talk about. But at the very top of the agenda today, a focus on economic issues. We will continue to bring you these pictures as we get them in the CNN NEWSROOM, but right now a quick break.

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HARRIS: And just a couple of moments ago, we showed you pictures of President Obama at Parliament Hill, where he was meeting with parliament officials, and here's a picture we were actually waiting for. President Obama and the prime minister of Canada together, Stephen Harper. The president just moments ago signing what you would have to imagine is a guest registry.

And then from this moment, the two men made their way up a set of stairs to the prime minister's office there at Parliament Hill for a brief meeting there, and then the lunch that we've been talking about throughout the morning. The two men will meet over lunch and discuss a number of issues.

But of course, tops on the agenda is a discussion over economic issues. Certainly the North American Free Trade Agreement, World Trade Organization rules will certainly be discussed. As we mentioned a short time ago, Canada was among a number of countries voicing concerns about "buy American" requirements in the massive economic stimulus package.

And I guess these are pictures from just outside of Parliament Hall. Canada, as you know, is the biggest market for U.S. exports. The two men will hold a joint press availability at 2:45 Eastern time. And of course, we will bring that to you live right here in the CNN NEWSROOM.

(BEGIN VIDEO CLIP)

TOM KILGORE, PRESIDENT AND CEO, TENNESSSEE VALLEY AUTHORITY: I just want to make sure that we're doing everything that we should be doing and don't look back and say, we should have done this.

(END VIDEO CLIP)

HARRIS: The CEO of the Tennessee Valley Authority talking about that huge coal ash spill back in December. TVA chief Tom Kilgore there says the water in the Kingston area is safe. Nearly 5.5 million cubic yards of coal ash surged into a river and neighborhood near the Kingston Fossil Plant just days before Christmas. Three homes were destroyed and about a dozen more were damaged by the spill. The cleanup costing TVA $825 million.

ROB MARCIANO, AMS METEOROLOGIST: You were around, Tony. You witnessed this. Dangerous springlike storms, well, they're finally moving out of the Southeast. These are some pictures out of Georgia last night. South Georgia got the worst of it, five tornadoes in total, maybe more as teams go out to survey (AUDIO GAP) at east- central Georgia, the town of Sparta, linked to this fierce weather that rolled through.

Also take a look at some of this hail damage just near the metro Atlanta area. We had some big-time bombers coming down. Ice from the sky attacked cars and rooftops. Look at some of that hail damage there. Some of it three inches in diameter. That Toyota's windshield's blown out, no doubt about it, and cars pockmarked all over the area.

Tony, it was a fairly frightful evening as dark clouds loomed overhead. I'm surprised you weren't calling me on speed dial to, you know, talk you through it.

HARRIS: Are you crazy? I'm in my basement hiding, man. No phone service.

MARCIANO: That's not a bad place to be. This is the time of year where we do get severe weather across the Southeast, and so yesterday was not out of the ordinary but it was rough. We are starting to see things simmer down.

(WEATHER REPORT)

HARRIS: Hey, Rob, you ready to take a look at some -- I'm promised they're pretty good pictures.

MARCIANO: Yes. You know, just to give you some reference... HARRIS: Yes.

MARCIANO: We're going to talk about the tornado?

HARRIS: Yes.

MARCIANO: Or not tornado, the volcano.

HARRIS: The volcano, yes.

MARCIANO: Yes. Chaiten volcano, here, about just over 3,000 feet high and, well, it's percolating. That's the Google Earth shot of it. I guess you have better pictures now? Yes. There you go.

HARRIS: Boy, and apparently this latest eruption comes just a couple days after folks had been forced to evacuate, and they were just starting to go back to their homes, then this happens again, and you've got the mountain erupting again and sending all of this material down the mountainside.

So, you're talking about a town of 150 people or so, and they're on the move again because of this latest eruption. So, hThere you go. The latest pictures again into the CNN NEWSROOM. Thanks for your help on that, Rob.

MARCIANO: All right, man.

HARRIS: Thank you, sir.

Extraordinarily candid comments from a top U.S. official about North Korea. They're from Secretary of State Hillary Clinton, who is in Seoul, South Korea right now. CNN foreign affairs correspondent Jill Dougherty is on the trip and she joins us live. Fill us in on the very latest, Jill.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Tony, those comments came as Secretary Clinton was traveling from Jakarta, Indonesia, here to Seoul, South Korea. She came back to talk to reporters, and she said that the U.S. and its allies are monitoring a possible succession crisis in North Korea.

Now, there have been reports that the leader of North Korea, Kim Jong-il, suffered a stroke last year. We also know that most recently the north, there had been indications that the north might be preparing to launch a long-range missile that theoretically could reach the West Coast of the United States, and there have been many threatening comments coming from the north towards South Korea.

Now, Secretary Clinton said everyone is trying to, as she put it, "read the tea leaves." She said that the leadership situation in the north is somewhat unclear. And she said that if there is a succession, even a peaceful one, that it could create more uncertainty, and that uncertainty could encourage even more provocative behavior by the north.

So, here in South Korea, the secretary will be meeting with the president, the prime minister, the foreign minister, conferring with them. And then at the next stop that we have, which we have which will be Beijing, China, she will be doing the same with the Chinese leadership and essentially trying to come up with some type of strategy on how they can really effectively influence the North Korean leadership -- Tony.

HARRIS: CNN's Jill Dougherty traveling with Secretary of State Clinton in Seoul, South Korea. Jill, thank you.

The president's new plan to mitigate foreclosures, will it help you? Answers in the next hour of the CNN NEWSROOM.

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