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President Obama on Foreign Soil for First Time as Head of State; U.S. Losing Base in Kyrgyzstan; Unhappy with Housing Plan
Aired February 19, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Hello again, everyone. I'm Tony Harris in the CNN NEWSROOM. Here are the headlines from CNN for this Thursday, February 19th.
Oh Canada, you've got a visitor. President Obama heads north for talks. The financial meltdown, trade and Afghanistan top topics.
It is a critical pit stop for U.S. troops and supplies headed to Afghanistan. Kyrgyzstan gives the United States military an eviction notice.
Who benefits from the president's foreclosure rescue plan? I will sort it out with a real estate expert right here in the NEWSROOM.
You know, when you're sick, you reach for a thermometer. When the economy is ailing, economists reach for economic reports.
Two new ones out today. Leading economic indicators, which predict activity three to six months down the road, jumped unexpectedly in January. The LEI up .4 of a percent. And this is the second straight monthly increase. An economist says that may mean the intensity of the recession could begin to ease this spring.
And the number of people filing for first-time unemployment claims held steady last week at 627,000. That may hint at some improvement in the jobs picture, but continuing jobless claims surged to a new record, almost five million.
President Obama on foreign soil for the first time as head of state. The president in Canada for a meeting with that country's prime minister. The two have a full plate for their working lunch.
White House Correspondent Dan Lothian traveling with the president, live from Ottawa.
And Dan, if you would, talk us through this short, but issue- intensive trip for the president.
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. They'll be focusing on three points. I'll talk about that in just a minute, Tony.
But what appeared to be a spontaneous moment when the president arrived and met Prime Minister Harper, they were about ready to walk into the parliament building. They had gone through the front door, and then they sort of turned around, walked back outside. There was a crowd out there, and Mr. Obama started waving to the crowd, to loud cheers. So that appeared to be an impromptu moment as they're going in to begin this luncheon here in Ottawa.
Now, the three points that are expected to come up during this lunch, first of all, the economy. Canada has been struggling, much like the United States. So they are expected to talk about the stimulus package, the $787 billion bill that President Obama signed.
The prime minister here is also pushing his own stimulus plan, which is much smaller, but will again focus on infrastructure and also tax cuts. So that's one of the issues expected to come up.
They'll also talk about trade. Of course NAFTA is a big issue here. Mr. Obama, on the campaign trail, talked about how he wanted to renegotiate NAFTA, but we're toll that he's expected to take a much softer tone here in Canada because of concerns over falling trade across the globe.
And finally, Afghanistan. The president, of course, has called for increasing the number of troops in Afghanistan, up to a 15,000 increase going into Afghanistan, which the president really believes is the front of the war on terror. And this comes as the parliament here in Canada has set a deadline for withdrawing ground troops from Afghanistan in 2011.
So those are some of the issues that will be coming up on this very short meeting here in Ottawa, Canada -- Tony.
HARRIS: And packed.
OK. Our White House Correspondent Dan Lothian traveling with the president in Ottawa, Canada.
Dan, appreciate it. Thank you.
And this afternoon, President Obama and Canadian Prime Minister Stephen Harper will hold a joint news conference. And we will of course carry it for you live. That's set for 2:45 Eastern. That's 11:45 Pacific Time.
Just after President Obama signs off on sending more U.S. troops in to Afghanistan, another setback. Kyrgyzstan's parliament has voted to close a key base used by the U.S. to re-supply troops in Afghanistan.
CNN Senior International Correspondent Matthew Chance has details.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): The overwhelming vote in the Kyrgyz parliament is a damaging setback for U.S. and NATO operations in Afghanistan. Legislators have now agreed to shut down the Manas Air Base, cutting off a vital link into the war zone, which before the vote the U.S. has been hoping to prevent the vote.
HILLARY RODHAM CLINTON, SECRETARY OF STATE: It's regrettable that this is under consideration by the government of Kyrgyzstan, and we hope to have further discussions with them. But we will proceed in a very effective manner, no matter what the outcome.
CHANCE: Since 2001, Manas has become a major U.S. supply hub in Central Asia. Its close proximity to Afghanistan giving it enormous strategic importance. U.S. military transport aircraft have flown thousands of missions from the base into the Afghan war zone, delivering tons of food and ammunition, as well as ferrying thousands of troops in and out.
(on camera): But such a large U.S. military presence in a region that Russia regards as its own back yard has been a source of increasing irritation to the Kremlin, and analysts believe the decision to close the Manas Air Base will be seen as a victory for Moscow in its battle for Central Asian influence.
(voice-over): And the Kremlin may have paid for it in hard cash, pledging some $2 billion in aid to Kyrgyzstan. The Kyrgyz president, here with his Russian counterpart, denies the Kremlin cash is linked to the closure of the base, but financial disagreements were at the heart of the decision.
PRES. KURMANBEK BAKIYEV, KYRGYZSTAN (through translator): For three years now we have been talking about the need to revise the terms of the agreement and settle the issue of economic compensation, which at present, does not satisfy Kyrgyzstan at all. But the United States has not shown understanding.
CHANCE: And that may cost Washington dearly. It's now desperately seeking alternative supply routes. But with plans by the new U.S. administration to increase troop numbers in Afghanistan, the closure of Manas couldn't have come at a worst time.
Matthew Chance, CNN, Moscow.
(END VIDEOTAPE)
HARRIS: And right now, let's get the view from across the Potomac at the Pentagon. CNN's Barbara Starr is there.
Barbara, great to see you.
A couple of questions for you. What exactly were we using this base for? Was it simply for supporting the Afghan mission?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: It is largely for supporting the Afghan mission, Tony. Thousands of U.S. troops move in and out of that base every month, coming and going into the war zone. And hundreds of tons of cargo as well move through there.
I was actually in Manas back in November. We were there in the middle of night, literally. And suddenly, hundreds of Marines came through the base. They were coming from the United States, and they were on their way into southern Afghanistan.
And that's a pretty typical night for the U.S. military in Manas. It's a central hub -- Tony.
HARRIS: And Barbara, what options are available to the Pentagon if the base goes away?
STARR: Well, if the base goes away. Here's what we're really dealing with. The reality is there is now about six months left before the U.S. has to pack up and leave, if this vote is final and it really goes through, and there's really diplomatic notification.
The U.S. is talking to a number of other countries in the region, but as you saw in Matthew's piece, Secretary Clinton making a very key point -- the U.S. is still talking to Kyrgyzstan. The U.S. still hopes somehow to work it out. But even today, a Pentagon spokesman said we're talking to them, but we're not willing to stay there at any price. So they're looking at other alternatives, talking to the government of Kyrgyzstan, trying to see if they can work things out, but ready to move on if they can't -- Tony.
HARRIS: Pentagon Correspondent Barbara Starr for us.
Barbara, good to see you. Thank you.
STARR: Sure.
HARRIS: As President Obama sends more troops to Afghanistan, some say this is now his war. What is he hoping to accomplish there? We will examine that later in the hour.
The president's plan to fight the foreclosure crisis has a lot of people asking, what's in it for me? I will get answers to that and more from a mortgage expert.
That's straight ahead in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Let's get a quick market check right now with Susan Lisovicz.
(STOCK MARKET REPORT)
HARRIS: Not everyone is happy with President Obama's foreclosure prevention plan. People who work hard to pay their mortgages are wondering, "What is in the plan for me?" That story now from Senior Political Correspondent Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): We found Jim Mulvey, a New Jersey homeowner, at one of the three jobs he works to support his family and pay his mortgage on time. And he's unhappy with the president's plan. JIM MULVEY, RESIDENT OF GILLETTE, NEW JERSEY: And it is very frustrating to see, when you know that you're doing things the right way, that other people that be certainly capable of doing things the right way themselves are not doing it.
CROWLEY: And check out the "AC 360" Web site, where an explanation of who gets help drew white-hot comments from those who won't.
"So once again, those living far beyond their means are going to be rewarded with my tax dollars."
"This plan stinks. I work hard, take care of my family and pay my bills, including my mortgage, and I get nothing from this bailout, except a lower home value for all my trouble."
"I am so sick of paying for bad choices of others."
In a letter to the president, Republican leaders John Boehner and Eric Cantor said they look forward to working with him, then ask six questions designed as much to make a point as get answers, including: What does the plan do for the 90 percent of mortgage holders not in default? And will federal aid go to banks who gave out mortgages they shouldn't have?
The president clearly understands the political and practical dynamic here. His rollout of the mortgage rescue plan included a section on who he will not save.
BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: It will not help dishonest lenders who acted irresponsibility, distorting the facts...
(CHEERING AND APPLAUSE)
OBAMA: ... and dismissing the fine print at the expense of buyers who didn't know better. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford.
CROWLEY: Since the details of eligibility will not be released for two weeks, it remains unclear how the program will weed out the irresponsible and dishonest, those who played the system and lost. But the president hopes people will see this package as assistance for individuals that will help everyone.
OBAMA: It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy.
CROWLEY: There are times when Jim Mulvey does worry about what is ahead, whether the havoc will pull him under. But, even if, he believes he can pull himself out.
MULVEY: You know, I'm not alone working a couple of jobs. A lot of people are doing so. I would much prefer -- if I'm able, I would much prefer that than to getting a handout. CROWLEY: The Census Bureau says 75 million Americans own homes. This plan will help up to nine million.
Candy Crowley, CNN, Washington.
(END VIDEOTAPE)
HARRIS: And people who will get help from the foreclosure plan will get it soon. That's what the Obama administration is promising. Housing Secretary Shaun Donovan had this to say on CNN's "AMERICAN MORNING."
(BEGIN VIDEO CLIP)
SHAUN DONOVAN, HUD SECRETARY: By March 4th, as the president said yesterday, we will have all the details of the plan out to servicers. We have many of the servicers, most of them, in fact, who have already announced that they're going to stop foreclosures until that March 4th date. So we believe we can get help into the hands of millions of families that need it very, very quickly.
(END VIDEO CLIP)
HARRIS: You know, lots of questions about the president's housing plan. Let's get some answers from someone in the know.
John Adams is with me now. He is a leading expert and consultant on home ownership issues, and he also hosts a weekly radio show and writes...
Boy, you're busy.
JOHN ADAMS, HOME CONSULTANT: I'm busy.
HARRIS: ... writes a real estate column for the "Sunday Atlanta Journal-Constitution."
John, let's get started.
First of all, Candy Crowley's piece...
ADAMS: Yes?
HARRIS: ... you know, I'm just sort of curious -- you know there are going to be a lot of people who are not happy with the plan, a lot of harping going on. But, I wonder, was it even possible for the president or anyone to craft a plan to attack the housing crisis that everyone would be happy with?
ADAMS: Candy's right, it's impossible to do that. But if you take the politics out of this, I think it's a good first step.
HARRIS: Tell me why. What makes it a first step?
ADAMS: Well, because it's housing that led is into this economic crisis, it's got to be housing that takes us out. We've got to put a floor underneath this market.
This initiative seeks to do that by putting a lot of money out there. It helps people refinance that should be allowed to, that aren't able to through no fault of their own.
HARRIS: Yes.
ADAMS: Home values have dropped. It also seeks to stabilize some of these foreclosures through loan modifications. These are things lenders should be doing anyway. They were waiting.
HARRIS: Were you disappointed when the initial plan for TARP I changed from getting the toxic assets off the books to capitalizing the banks? Or did that just have to happen at some point?
ADAMS: My suspicion is it had to happen because the banks were failing on a daily basis. However, once they got the money, they decided that that was added to their capital, it stabilized their position. And they said, why should we loan it? We're going to hold on to it. So it didn't have the desired effect.
This is going to have the desired effect. It puts money in the hands of people that need it.
HARRIS: You want to take on some e-mail questions?
ADAMS: I'm ready.
HARRIS: All right. Let's put the first one up here.
"I owe more than my property is worth." That means I'm under water; correct?
ADAMS: Right.
HARRIS: OK. "Do I requalify to refinance under the plan announced by the president yesterday?"
ADAMS: Up to 105 percent of the appraised value. If your home value as fallen -- let's say you paid $125,000.
HARRIS: Yes.
ADAMS: Let's say you got a mortgage for $100,000. Now the house is worth $100,000. You don't qualify to refinance because, with your closing costs, your loan would be higher than the value of your house. Under this program, you could go up to $105,000, 105 percent.
HARRIS: Nice. OK. Got another one here.
"As a struggling homeowner, how do I know if I qualify for help?"
And then I'll add on here, I mean, is there a Web site, John, to go to? A phone number to call? And I'm not asking you if you have it. If there is one, we'll find it.
What do you do? Who do you reach out to here?
ADAMS: The process is going to be very similar to when you applied for the mortgage in the first place. It will be handled by your current loan processor. They have to volunteer to participate, and on March 4th, we'll find out which lenders have agreed to and which have not.
The administration has indicated that the vast majority of major lenders have pre-committed, they want to be involved. We'll know the exact guidelines on the 4th, but my suspicion is that you would still have to show sufficient income.
In other words, this program is not designed to keep you in a house you'll never be able to afford.
HARRIS: Yes. Yes.
ADAMS: Instead, it's designed to modify your current loan and make it affordable for you now and over a five-year period.
HARRIS: So talk us through what I might need in terms of documentation. I guess some tax forms as well. I mean, what kind of documents should I be thinking about gathering now?
ADAMS: The same things that you needed when you got this loan. You'll need your pay stubs, current pay stubs...
HARRIS: Yes.
ADAMS:... W-2s. You're going to need credit card statements. You're going to need -- if there's a second mortgage balance, you'll need that information.
And the number, the key number, is the 800 number that's on your payment coupon. I'd begin -- the administration is saying wait until March 4th. I'd go ahead and begin calling now...
HARRIS: I think that's smart.
ADAMS: ... because on March 4th, I can tell you, those phone lines will be jammed.
HARRIS: So let's see -- I think we have one more question here. "I owe more than my property is worth. Do I qualify for a refi under this plan?"
ADAMS: It's entirely possible that you will. It's going to depend on the appraised value of the property now.
HARRIS: Yes.
ADAMS: And we don't know what that is until we apply. So my point is, it costs you nothing. Go ahead and start the process. Call your lender and see if you can take advantage of this program. It can only help.
HARRIS: And Joe, throw that last question up again. I think I jumped ahead.
"My loan is scheduled for foreclosure soon. What should I do?"
ADAMS: Call your lender immediately. Ask if this is a conforming Fannie Mae or Freddie Mac loan. And if so, can you participate in the announced stabilization program.
HARRIS: This plan is relying heavily on refinance activity.
ADAMS: Refinance and modification. There are two parts to the plan.
HARRIS: John, that was terrific. Wow, you blasted through that. Good stuff.
ADAMS: Thank you, sir.
HARRIS: John Adams here.
And in just a few minutes, our Tom Foreman will show us more of the tools the president's plan will use to help those facing foreclosure.
First, there was Bernie Madoff. Now questions are being raised about billions invested with a man named Allen Stanford. Who is he?
(COMMERCIAL BREAK)
HARRIS: Have you heard this story? Venezuela has seized control of a local bank owned by Texas magnate Allen Stanford after a run on deposits by panicked investors across Latin America and the Caribbean. The U.S. government has leveled fraud charges against other Stanford banking companies, and that's led to a wave of withdrawals in the Latin American country.
CNN's Ed Lavendera has the details.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Crowds of people swarm around Allen Stanford's bank in the Caribbean island of Antigua. News of his legal troubles has bank customers worried their money is on the verge of disappearing. U.S. investigators say the fraud committed by Stanford will be felt around the world.
In Houston, Memphis and Tupelo, Mississippi, investigators raided the offices of Allen Stanford's investment firm. Federal authorities say Stanford and two other executives are responsible for a fraud of "shocking magnitude." The Feds say Stanford lured investors into buying $8 billion worth of usually safe CD investments, promising breathtaking rates of return that don't exist.
Investors are stunned.
UNIDENTIFIED FEMALE: Initially, we put our money in this institution and in the CD because we were nervous about the markets and we thought it was a safe place. It's -- I'm so -- just upset right now, I can't even talk about it.
UNIDENTIFIED MALE: I find this disgusting.
LAVANDERA: Stanford's father appeared stunned today, as well, by the allegations against his son.
UNIDENTIFIED MALE: We've had problems before, but nothing of this magnitude or of this -- apparently maybe (INAUDIBLE) of a serious nature. I hope -- hopefully it's not.
UNIDENTIFIED MALE: Gentlemen, if you've ever wondered what $20 million U.S. looks like, here it is.
LAVANDERA: Allen Stanford lives the life of a high-flying billionaire, sponsoring high-stakes cricket matches in the Caribbean. He has dual citizenship in the U.S. and Antigua. He was knighted by the Caribbean nation and is known as "Sir Allen Stanford." "Forbes" magazine says he's worth more than $2 billion.
And it prompted this question during an interview with CNBC last year.
UNIDENTIFIED MALE: Is it fun being a billionaire?
ALLEN STANFORD, FINANCIER: Well -- yes.
(LAUGHTER)
STANFORD: Yes. Yes. Yes, I have to say it is fun being a billionaire.
UNIDENTIFIED MALE: I think a...
STANFORD: But it's hard work.
UNIDENTIFIED MALE: ... one-word answer...
STANFORD: But it's hard work.
(END VIDEOTAPE)
HARRIS: Ed Lavandera joining us live now from Dallas.
Ed, all right. A couple of points here.
Some of Stanford's investors, is this correct, were also victims of Bernie Madoff?
LAVANDERA: Very possible. You know, I spoke with one attorney yesterday who represents several clients, a good number of clients in the Madoff scandal. That's a $50 billion scandal.
He told me yesterday that many of his clients have also been affected by this one as well. We don't have a complete list of who those names are, who these people are at this point, but they're still working through that at this point. HARRIS: Does Stanford face any criminal charges at this point? Is he facing arrest?
LAVANDERA: Not right now as far as we can understand. This SEC complaint against him is just that, a civil complaint. But by all indications, many people believe that criminal charges are to follow. That's why there's such a great deal of interest as to where he is right now. No one -- at least we haven't been able to figure out where he is at this point. We presume somebody does, but so far he hasn't been seen publicly.
HARRIS: So we don't know where he is. All right.
Ed Lavendera for us in Dallas.
Ed, appreciate it. Good reporting. Thank you.
LAVANDERA: You got it, Tony. Thanks.
HARRIS: Georgia is cleaning up today after three, maybe four, tornadoes touched down near the Florida border overnight. There's scattered property damage, power outages and downed trees. One fatality also reported.
In metro Atlanta, hail the size of baseballs. The ice-covered parking lots, bombarded cars and trucks, hard enough to break some windshields. A trailing storm system brought snow to the great lakes region.
This was the scene in Milwaukee -- take a look -- where the temperature will struggle to reach 20 today. Another round of snow expected for the city this weekend.
(WEATHER REPORT)
HARRIS: Appreciate it. Thank you.
MYERS: You bet.
HARRIS: The all-day, all-night debate over California's budget puts some lawmakers to sleep, even with billions of dollars and thousands of jobs on the line.
(COMMERCIAL BREAK)
HARRIS: Just past three hours into the trading day. And as you can see, it's been something of a see-saw session for stocks. We're down 61 points. Boy, the Dow giving away all of the early gains. And the Nasdaq down 19 as well. We will be following the numbers. Look at that -- down below 7,500 for the Dow Industrial averages right now. We'll follow those numbers throughout the day for you, obviously, right here in the CNN NEWSROOM.
Fixing the mortgage meltdown. The Obama administration is applying a brace in the form of a foreclosure prevention program. The $75 billion initiative is likely to help struggling homeowners, but how will it help the rest of the U.S. economy? Tom Foreman has more.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT, (voice over): One primary target of the president's plan is 3 million to 4 million families at risk of defaulting on their home loans because of a lost job or ballooning mortgage payments, but who cannot refinance at a lower rate because their house is underwater. That means its value has dropped so much, the family owes more than the house is worth.
Let's say a family in this house, for instance, is having trouble meeting the monthly payment. They bought it for $200,000. It's now worth much less than that. So it is underwater. They have some income and they've scraped up monthly payments so far, but they don't have enough equity to refinance this deal.
So what do they do? This is the president's solution. The lender and the Treasury Department working together would adjust the interest so that the monthly payments would be about a third of that family's income. That leaves them enough money to buy food, gas, clothing, the basics needed to keep them engaged in the economy. The lender and the borrower could each get up to $1,000 a year to keep those payments current. And this whole adjusted payment schedule would stay in place for five years. Long enough for it to sink in and settle down, hopefully.
But what about the guy next door? What does he get? The guy over here who always pays on time and who's not in trouble? Well, I'll tell you this, he does not get any money, but, the White House says, he will get protection because if this house is foreclosed on, his home value could plummet.
And the ripple effect goes on. With no cheap houses sitting around empty, demand for billing goes up and the local construction companies start hiring instead of firing. Same story at building supply shop. Same story at the gas stations, restaurants, shopping malls and more. At least in theory, one family gets direct help, many families benefit.
(END VIDEOTAPE)
HARRIS: And all borrowers will have to prove they have sufficient income to be able to keep up their loan payments. Though what would be sufficient proof isn't quite clear yet.
Also caught in the mortgage meltdown, the grandmother of California's octuplets. A mortgage default notice has been filed in Whitter against the homeowner. The home owned by Angela Suleman. Her daughter, Nadya, lives there with the octuplets, plus her six other children. The notice shows the children's grandmother is more than $23,000 behind in payments.
After an epic all-night session that came down to a single vote, the state senate of California passed a budget deal in cash-strapped California. The state assembly quickly followed suit, averting a fiscal crisis that threatened thousands of state jobs and hundreds of projects. Democratic leaders made several concessions in order to get the one Republican vote needed for passage.
(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)
HARRIS: Without a new budget, California might not have received parts of the federal economic stimulus package. Governor Arnold Schwarzenegger has hailed state lawmakers for their hard work.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER, (R) CALIFORNIA: This is an historic budget. And not only did they pass a great budget, but also a great reform package. You know, there's budget reform and there's primary reform, education reform. There's all kind of great things that will have a tremendous impact, a positive impact on the state of California.
(END VIDEO CLIP)
HARRIS: Schwarzenegger went on to say both Republicans and Democrats put the needs of Californians first.
You know, several Republican governors opposed the president's stimulus plan on ideological grounds. Some even say they will reject the money for their states. But all that cash may be too tempting for South Carolina Governor Mark Sanford. He says just because you're against the plan doesn't mean you can't take the money. Sanford also says throw enough money at any problem and it will help somebody.
We know that governors and mayors all over the country are working to get a piece of the stimulus funding to build roads and bridges. At CNN we are keeping an eye on where those dollars go. Our Josh Levs is here with a few of the first projects we're keeping an eye on.
Josh.
JOSH LEVS, CNN CORRESPONDENT: Two of which were inspired by you, Tony. I'm going to show you, and everyone, what that's about in a minute. A conversation you had just the other day. Not the projects themselves but the reason we're going to chase it.
Let's start off with this. This is really cool. I want to take you on an aerial tour. We have Google Earth imagery here of three sites that you should know about. And as we zoom in, the first is right near Tuscumbia, Missouri. And officials there say that they have actually carried out the first stimulus infrastructure project in the nation. It's at this bridge we're showing you here. And they say the cost is $8.5 million. I'm going to tell you more about that in a moment.
But first, two other sites that may get underway soon, based on what we've been told here. One in Southfield, Michigan. They're doing some road repairs there that official tell me this morning they say it would cost about $15 million.
And one more I'm going to show you here. It's over to Phoenix, Arizona. And obviously a bigger city, therefore it's going to be a bigger project. What they want there is to extend light rail for a three-mile stretch that would cost about $250 million for that project in Phoenix there.
Let's zoom in on the board here. I'm going to tell you a little bit about all of these really quickly. The first one I showed you there, bridge over Tuscumbia, in the area of Tuscumbia, Missouri. This is it. You're able to see it on Google. We have a bit of video of it too.
Now, Tony, they're calling it the first stimulus project. What they told me today, what actually happened is, they've paid for it. They do expect to be paid back with stimulus funds. You know, they just didn't want to wait for that money.
HARRIS: Gotcha. Gotcha.
LEVS: And the reason I'm showing you these other two, Southfield, Michigan, and Phoenix, Arizona, is a conversation you had just the other day.
(BEGIN VIDEO CLIP)
HARRIS: Maybe I'll come myself. What are you going to start with?
UNIDENTIFIED FEMALE: Evergreen Road. Evergreen Road. One of our main . . .
HARRIS: Evergreen Road.
UNIDENTIFIED FEMALE: Yes. Yes.
HARRIS: Is that a mess right now? Is it a mess?
UNIDENTIFIED FEMALE: It's a mess.
HARRIS: OK.
UNIDENTIFIED FEMALE: It's a 10 miles road.
UNIDENTIFIED MALE: :et's not leave out Phoenix light rail.
HARRIS: Absolutely. The question was to you next. What do you want to start with?
UNIDENTIFIED MALE: Three miles, 19th Avenue and Montibello to Dunlap.
(END VIDEO CLIP)
HARRIS: That was fun.
LEVS: So, of course, we had to follow up on that.
HARRIS: Right.
LEVS: You know, I've got them right behind me. Check it out. Let's go in for a second.
This -- which one do we have first? We're in Southfield, Michigan, right here and you're able to see on Google what the street looks like. It doesn't honestly look so bad in the Google imagery, but they tell me it's really rough and that this is a mayor artery for the town. They need to do something about it.
HARRIS: Nice.
LEVS: And finally this is the stretch they're talking about there in Phoenix. This three-mile miles stretch they want to fix up. Over here is what it looks like. You can tell there's some construction going on there right now. Not too pretty. And this is the light rail they're talking about extending Valley Metro. It currently does not reach through that three-mile area that officials there tell me is a heavy traffic area. I mean it would put thousands of people to work and it would, obviously, be good for the environment if they could get people out of their cars.
So that's why we're looking at those. And I'll tell you, Tony, in the coming days, weeks, months, years, we're going to keep following where these fund go, if they even get those two projects and what's next.
HARRIS: And I want to see those projects. I mean that's -- yes, what projects are first? What are your top priorities? That was fun to do. And, you know, maybe we get some DOT cameras up and we can see the progress that's being made, huh?
LEVS: That's next, DOT cameras. They could do that.
HARRIS: Let's find out where the money is going.
All right, Josh, appreciate it. Thank you.
LEVS: Yes.
HARRIS: You know, it remains to be seen if college students will feel any relief from the new stimulus plan. It's part of my "Class in Session" series. These future leaders let me know how worried they are about their job prospects.
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SHELBY BERNARD, SENIOR, SCIENCE, TECHNOLOGY AND CULTURE: I'm a first generation American. And so we moved here because we felt like this was the land of opportunity. And if we could make it anywhere, we could make it here. And now I'm looking like maybe I'll have a job if I move back to where my parents are originally from, you know? And that should never be. Somebody -- we immigrated and we feel like we failed or that I might not have the possibility to succeed? That's heart-breaking, you know?
(END VIDEO CLIP)
HARRIS: Wow! Tomorrow, noon Eastern, "Class in Session." Georgia Tech students sound off.
Is leasing a solar panel, or a few of them, a good option for creating your own energy fix?
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HARRIS: Let's see here. You can lease a car, furniture, even a fancy handbag. So why not lease clean power, too? Alison Kosik has our "Energy Fix" from New York.
All right, leasing clean power. Allison, let's talk about it.
ALISON KOSIK, CNN CORRESPONDENT: Exactly. Hi, Tony.
If you're looking to buy and install solar panels, it can cost you ten of thousands of dollars. And for most people, it's just too expensive, especially in this tough economy. But leasing the system can be a cost effective way to harness the sun's rays. A company called Solar City leases panels in California and Arizona. And there's no up-front fee. The company owns the panels. You pay a leasing fee and for the power, but the company says the total usually cuts your monthly electricity costs by 10 percent to 15 percent. The biggest catch could be the long lease though. Contracts typically last 15 years. Other companies, like Sun Ride (ph), do charge that up-front fee, but then the monthly leasing fee is less. But either way, you still have to pay the power company when your panels aren't generating electricity, like at night.
Tony.
HARRIS: So, Alison, are these leases available all over the country?
KOSIK: Well, right now leasing is mainly an option in California and a few other states, but it's not because those places are sunnier. In fact, most of the U.S. has better sun exposure than Germany and Germany is the world leader in solar-generated electricity. It's actually the economy that's limiting the availability of solar leases. Solar City was planning to expand to the East Coast this year and another company called Citizen Re (ph) eventually plans to offer solar panel leases in 42 states. But both companies say the financial crisis has put their expansion plans on hold. So until the economy picks up, most of us may have to wait to lease those solar panels.
For more energy fixes, log on to cnnmoney.com. Tony, back to you.
HARRIS: Good stuff! Alison, appreciate it. Thank you.
KOSIK: Sure.
HARRIS: So what is the U.S. hoping to accomplish in Afghanistan by sending more troops? We will look at the options.
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HARRIS: I want to show you these pictures. This is the Chaiten volcano. Actually roaring back to live in Chile. It erupted last year, forcing the people in a small town at its base to evacuate. And now it is back, raising fears and forcing people to flee once again. A government official says an explosion sent debris down the slopes and that's threatening to block a river and cause flooding. The government plans to evacuate as many as 150 people.
Seventeen thousand more U.S. troops headed to Afghanistan. How long will they be there? And what will it take to get them out? CNN's Joe Johns looks at the strategy and the difficulties of the Afghanistan end game.
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JOE JOHNS, CNN CORRESPONDENT, (voice over): Whether you view it as too little too late or a bold move by a new administration to get the worsening situation in Afghanistan under control, either way, President Obama is the new owner of the longest American conflict except for the Vietnam War.
PETER BERGEN, CNN NATIONAL SECURITY ANALYST: This is definitely Obama's war. I don't know if it's going to be Obama's Vietnam. I'm sort of suspicious of though analogies. There was a lot of -- the Afghans are much more -- most of them kind of want us to succeed.
JOHNS: OK. So keeping them honest, the question is, what exactly are we trying to do there? The Pentagon tried to spell it out, saying the mission, the objective for those thousands of additional troops headed to Afghanistan, is to finally get the insurgency under control and help the Afghan people and their security forces help themselves.
One benchmark is to double the size of the Afghan army to 134,000. But both the president and the Pentagon flatly admit that improving security is just a means toward a larger goal of more stable governance, improving socioeconomic conditions, and the lives of the Afghan people.
GEN DAVID MCKIERNAN, U.S.-NATO COMMANDER IN AFGHANISTAN: I have always said that this will not be a military outcome, this will eventually and political outcome. It will be decided by people that live in Afghanistan.
JOHNS: What goes without saying, Afghanistan is not the easiest place to start bringing change you can believe in. It has stubborn issues, like a huge drug problem. It's the world's largest supplier of opium. And that opium money funds tribal militias the coalition has to contend with, and the Taliban, whose resilient insurgents created the need for additional troops in the first place.
Which lead to the next question, just how long is the U.S. military going to have to stick around?
MCKIERNAN: This is not a temporary force uplift. That it's going to need to be sustain for some period of time. I can't give you an exact number of the year that it would be, but I've said I'm trying to look out for the next three to four to five years.
UNIDENTIFIED MALE: It could be several years of that kind of force level?
MCKIERNAN: It could be as much as that.
JOHNS: Some say probably even much longer than that.
BERGEN: Once the United States gets into these kinds of situations, it tends to stay. So we're still in -- we still have soldiers in Japan or Germany, you know, 60 years after World War II. I think it's conceivable that we will be in Afghanistan, in some shape or form, for decades.
JOHNS: More than long enough, at least, to run the entire course of Barack Obama's presidency.
Joe Johns, CNN, Washington.
(END VIDEOTAPE)
HARRIS: You know, "Smoky and the Bandit" made one famous, but is the era of the great American muscle car over?
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HARRIS: You know, for a lot of car buffs, this really hurts. General Motors is planning to downsize Pontiac. It seems Detroit can't get pumped up for the muscle car anymore. Here's our Jim Acosta.
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JIM ACOSTA, CNN CORRESPONDENT, (voice over): If the '70s were good for one thing, it was American cars. They were cool, they were fast and Hollywood made movies about them. "Smokey and the Bandit" was just as much about the Pontiac Trans Am as it was about Burt Reynolds. But today, they're not laughing in Detroit, in its plea for billions in new bailout money, General Motors plans to downsize Pontiac. Not quite killing it off, as GM says it may do with Saturn and Hummer, but close.
JOHN DAVIS, HOST, "MOTORWEEK": Clearly Detroit lost its passion for cars.
Well, hello, and welcome again to "MotorWeek."
ACOSTA: For more than a quarter century, John Davis has hosted PBS's car consumer show "MotorWeek." He says Detroit built cars that defined an era that's in danger of coming to an end.
DAVIS: The American auto industry is in a mess. Too much involved with trucks. And the public sentiment changed and they weren't able to change fast enough.
ACOSTA: A V-8 is a V-8.
MATT HOLTZMAN, FLEMINGS ULTIMATE GARAGE: Yes. Sounds different. Feels different. Brings back memories of when I was a heck of a lot younger.
ACOSTA: Matt Holtzsman is the general manager of Fleming's Ultimate Garage, a small-scale classic car dealership.
Just sitting in this car you feel like you're stepping back in time.
HOLTZMAN: You are.
ACOSTA: This '79 Trans Am Bandit is one of its showroom show pieces. The t-top still works.
HOLTZMAN: It's iconic as a brand.
ACOSTA: He hopes the bailout will drive the auto giants back to their glory days.
HOLTZMAN: I hope some day someone will replicate this car exactly as it looks.
ACOSTA: And put it on the road.
HOLTZMAN: Put it on the road.
ACOSTA: GM insists it's doing all it can to get back in the driver's seat.
RICK WAGONER, CEO, GENERAL MOTORS: Obviously what we can do on our side is continue to bring out, you know, really exciting products and get behind them in the right way.
DAVIS: I think passion is a key to the American car buyer and to the American car design.
ACOSTA: Something even smokey could appreciate.
General Motors isn't giving up on the muscle car just yet. It is rolling out a 2010 Camaro that's supposed to get 26 miles per gallon on the highway. That's change GM hopes the Obama administration can believe in.
Jim Acosta, CNN, Washington. (END VIDEOTAPE)
HARRIS: "Smokey and the Bandit." Love those movies.
CNN NEWSROOM continues right now with Kyra Phillips.
KYRA PHILLIPS, CNN ANCHOR: I loved "Smokey and the Bandit" too.
We're pushing northward this hour. President Obama's first trip outside the country. He hasn't gone far and he isn't staying long. But it's not mere courtesy call.
Another week, another 600,000-plus in the unemployment lines. We're Pushing forward on a shrinking U.S. labor force.
Hello everyone, I'm Kyra Phillips live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
