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Obama Meets with Canadian Prime Minister; California Passes Budget; Secretary Clinton Visits China; CNN Hero of the Year Working to Rebuild New Orleans

Aired February 19, 2009 - 13:00   ET

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


KYRA PHILLIPS, HOST: 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 no mere courtesy call.

Another week, about 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.

North to Canada in a minute. First, we're deep in the heart of Texas, or maybe somewhere a little south of the heart. Married couples being courted to cheat. The pitch: have an affair, guaranteed. Of course, the Web site doesn't guarantee to protect you from bodily injury, should your spouse find out.

But first, no time for small talk. President Obama arrived in Ottawa late this morning, and he'll be home for dinner. As we speak, he's at a working lunch with Canadian Prime Minister Stephen Harper, and the issues on the table range from trade to fossil fuels to Afghanistan.

America's northern neighbor is a popular first foreign destination of a U.S. president. And President Obama is hugely popular in Canada.

We'll be checking in with CNN's Dan Lothian. He's actually traveling with the president. We're going to talk to him about how Canadians are thrilled with Obama's visit; however, they've got a few concerns about the administration.

Now, not only is Canada America's largest trading partner and biggest single source of foreign oil, the two nations trade more than any two nations on earth. So it stands to reason the so-called "buy American" clause in the economic stimulus set off alarm bells from Vancouver to Nova Scotia.

And then there's the Afghan war. Canadians are pulling troops out while President Obama is sending troops in. We'll dig deeper into these and other issues when CNN's Zain Verjee joins us from Washington later this hour.

And next hour, President Obama and Canadian Prime Minister Stephen Harper will hold a joint news conference. We'll carry that live. It's scheduled to get under way 2:45 Eastern Time. We're going to go to Dan Lothian now, joining us live from Canada following that visit with the prime minister there.

Hi, Dan.

DAN LOTHIAN, CNN CORRESPONDENT: Well, hello.

Indeed the president has begun that lunch meeting with the prime minister, Prime Minister Harper, here.

Just wanted to go back a little bit to when the president arrived here on the ground. He was walking into parliament and he had what appeared to be an impromptu moment where he turned back around. There was a large crowd out there. And then he started waving to the crowd, and they erupted in applause and were screaming. Then he continued on.

So as I mentioned, the president in that meeting right now. The top of the agenda is trade, the economy and Afghanistan.

Trade, we'll start there. The president, when he was a candidate, made some comments about wanting to renegotiate NAFTA, felt that it was not as favorable for labor as it could have been. Now he's sort of softened that approach, saying that in this current economic climate, when trade has really been declining globally, this is not the time to really deal with that.

On the issue of the economy, the stimulus bill that the president just signed, $787 billion, well, there's a stimulus bill here, as well. A plan that the prime minister is pushing also deals with infrastructure and tax cuts, much smaller, though, than what's happened on the other side of the border.

But there are concerns on this side of the border about this "buy American" provision that's inside the stimulus bill, whereby anyone who's going to be involved in some of these infrastructure projects, public works projects, would have to use American-made steel and other products. It has been softened in the final bill, but nonetheless there's some concern on this side of the border. The president will try to put Canadians at ease today on that issue.

And finally, on Afghanistan, the president, as you know, Kyra, recently announced beefing up the troops into Afghanistan: 17,000 troops going into Afghanistan. But here in Canada, the parliament has set a deadline for withdrawing their troops from Afghanistan by 2011. And you know, the Canadians have been there with the Americans from the very beginning.

So the president was asked whether or not he was going to try to put some pressure on Canada to keep their troops there longer than 2011. He said he's not here to do that, but rather to spell out to them what America plans to do in Afghanistan going forward, Kyra.

PHILLIPS: All right, Dan Lothian, thanks.

New jobless numbers out today showing just how tough it is to find work in this recession. The government says that the number of people getting jobless benefits jumped to a record high for the fourth week in a row, nearly 5 million. That means not only are those people jobless, but they've been out of work for more than one week, at least.

Six hundred and twenty-seven thousand people filed first-time claims last week, same as the week before, but still near a 26-year high.

Let's go ahead and check the markets right now. You're seeing a live picture of the big board there on Wall Street. Dow Industrials down 54 points. We're definitely seeing a big sell-off at the start of this week. Now investors may be looking for some bargains.

We're going to take you back to the trading floor in about a half-hour. Susan Lisovicz is in the thick of it. And she's going to break down those record unemployment numbers for us.

(BEGIN VIDEO CLIP)

DARRELL STEINBERG (D), CALIFORNIA STATE SENATE: One vote. One vote. Is worth billions of dollars.

(END VIDEO CLIP)

PHILLIPS: Well, guess what? They finally got it, that one elusive vote. After marathon sessions and a bevy of concessions, exhausted California lawmakers have finally pushed through a budget bill aimed at fending off a statewide meltdown.

Our Ted Rowlands is in Los Angeles. He's been following the story for us. He's got the latest.

Hi, Ted.

TED ROWLANDS, CNN CORRESPONDENT: Hi, Kyra.

A lot of exhausted Californians, as well, on this one. There was a lot of pressure to come up with a deal before today, because 10,000 pink slips were going to go out today without a deal. And about 300 construction jobs already under way around the state were going to be halted if lawmakers didn't come up with a deal.

You mentioned that one vote, one vote. Well, they got it from a guy by the name of Abel Maldonado. He's a Republican from the center part of the state, Santa Maria. He acquiesced and went with the Democrats and Republican Governor Arnold Schwarzenegger and agreed to help pass this budget.

(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 critics say Maldonado comes off looking like the good guy because he wants to seek statewide office. Bottom line is the deal was finally made.

Today Governor Arnold Schwarzenegger, after this deal was made, came out of his office and ceremoniously pulled down the sign that he has had up there in the days without a budget. He came out and ripped it down in a "Terminator"-like fashion. 106. He pulls it down and turns off the clock and later said that he is pleased, as tough as this was, that it's finally over.

(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 then primary reform, education reform. So there's all kind of great things that will have a tremendous impact, a positive impact on the state of California.

(END VIDEO CLIP)

ROWLANDS: The immediate impact for the state, Kyra, is that the state's now going to start cutting rebate checks for tax holders. There was a hold on all the state income tax refunds. That will start going, and other things that were held up will start moving now.

There's still a 42 billion deficit to deal wit, but at least now there's a blueprint on how to move forward.

PHILLIPS: All right. Ted Rowlands, thanks.

Well, storm sirens wailed across Alabama and Georgia last night as tornadoes, hail and flooding rains pounded those states. On the scene, taped by one of our iReporters. One person was killed and at least seven others hurt.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That was a big one. That -- that one. Whoa!

(END VIDEO CLIP)

PHILLIPS: And we can recognize that voice.

The super cell thunderstorms packed a lot of hail, some as big as golf balls and softballs. That video actually from our director, Scott Reger (ph). he lives in Lilburn, Georgia. Scotty, thanks. And more than 13,000 people in Georgia lost power, some of them in the Atlanta metro area. Today National Weather Service teams are surveying the damage to determine how many tornadoes actually touched down.

While the nasty weather is over in most of the south, other parts of the country are getting more snow today. Chad Myers back with us, watching it all for us.

Good to see you, Chad.

(WEATHER REPORT)

PHILLIPS: All right. Thanks, Chad.

CHAD MYERS, CNN METEOROLOGIST: Sure.

PHILLIPS: Well, in Australia search crews are still finding more bodies from the disastrous wildfire that happened in the state of Victoria. The death toll now at least 208. Right now, at least four major fires are still burning.

The brush fires, which broke out almost two weeks ago, have destroyed more than 1,800 homes and displaced at least 7,000 people. One man has been charged with setting one of those deadly fires.

Hey, China, want to buy some debt? Well, Secretary of State Clinton about to make a sales pitch on her overseas trip, and experts say she'd better choose her words carefully.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The U.S. used to come here and lecture China. And now the U.S. is coming here to kiss up to China, I think. If China sits out a treasury auction, what happens to the American economy, what happens to the American stock markets? China's now in a position of power.

(END VIDEO CLIP)

PHILLIPS: Well, holding the purse strings, holding the diplomatic edge. We're going to take you straight to Beijing.

(COMMERCIAL BREAK)

PHILLIPS: Working 9 to 5, not a way to make a living for a lot of people these days. They're settling for part-time jobs just to get a paycheck. Should you? Personal finance editor Gerri Willis has the answer.

(COMMERCIAL BREAK)

PHILLIPS: Well, talk of war overshadowing Secretary of State Clinton's overseas trip. Clinton is now in South Korea, the third leg of her four-nation tour. Topping the agenda: spiraling tensions with North Korea, which the U.S. believes is planning to test a long-range missile. North Koreans deny it, but that's not stopping them from stepping up their rhetoric. They say that they're ready for an all-out confrontation with the south, accusing their neighbor of, quote, "kicking up war hysteria" against North Korea. Earlier Secretary Clinton said that a missile test would hurt any attempts to normalize ties, that the U.S. is watching North Korea very closely.

Clinton's next stop, China. She's looking to practice some diplomacy when she arrives tomorrow and unload some debt. CNN's Emily Chang has more from Beijing.

(BEGIN VIDEOTAPE)

EMILY CHANG, CNN CORRESPONDENT: Secretary of State Hillary Clinton visits China in the shadow of the global financial crisis. The U.S. Congress just passed a massive stimulus bill, plunging America even deeper into debt. And many expect China to throw out a line of credit, buying into that debt. This is the People's Bank of China where that decision will be made.

China has already bought some $700 billion in U.S. treasury bills. So the question is, why should China buy even more?

(voice-over) "The U.S. has chosen to live high on the hog, enjoy inexpensive imports from China," one recent state editorial said. And this complaint from another: "With Obama's stimulus package, the U.S. deficit will get worse."

UNIDENTIFIED MALE: The U.S. used to come here and lecture China, and now the U.S. is coming here to kiss up to China, I think. If China sits out a treasury auction, what happens to the American economy? What happens to the American stock markets? China's now in a position of power.

CHANG (on camera): So, China may not have a choice. In this time of crisis, economists say U.S. debt is the least risky investment out there, and not buying it could shake up the already-struggling global economy.

Still, Chinese Premier Wen Jiabao says his top priority is to protect the value of China's reserves, which could drop if the U.S. dollar weakens.

YAN XUETONG, POLITICAL ANALYST: China definitely will ask (UNINTELLIGIBLE) to maintain the U.S. dollar as strong as possible. But (UNINTELLIGIBLE) of that it's American capability. Why can the Obama administration make the economy resume very soon and maintain the U.S. dollar swap (ph), that can turn down (ph) their policy. No one can guarantee their policy works.

CHANG: Because China depends on U.S. consumers to buy its products, the economies of the two countries are now inextricably linked. Mrs. Clinton's visit here comes just as the slump in U.S. demand has thrown China's export-driven economy into a tailspin, making her mission that much more critical.

Emily Chang, CNN, Beijing.

(END VIDEOTAPE)

PHILLIPS: Well, you remember this: the infamous shoe toss seen around the world? Well, today the guy who did the tossing got his day in court.

Iraqi journalist Muntathar al-Zaidi said that he was provoked by President Bush's, quote, "bloodless and soulless smile" when he pitched this fit during a December news conference from Baghdad.

Well, he's charged with assaulting a foreign head of state on an official visit to Iraq. His lawyers want to change assaulting to insulting, claiming that Bush's unannounced visit was not official.

The trial was postponed three weeks while the court rules.

Brutally blinded but looking for justice. An Iranian woman seeks an eye for an eye after an acid attack. Our Reza Sayah shows us the aftermath.

(BEGIN VIDEO CLIP)

REZA SAYAH, CNN CORRESPONDENT: So these are the clothes that Amana (ph) was wearing that day. Her mother has kept them. This is the coat that she was wearing. And just look at it. It is just absolutely shredded. You can -- I can right now smell the acid. Yes. And I have trouble breathing.

(END VIDEO CLIP)

PHILLIPS: Well, her story will definitely disturb you. And believe it or not, her quest for justice might, too. But one thing's for sure: you won't forget her face, and you'll meet her next hour.

And you're also going to meet a woman who has helped nearly 200 people rebuild their homes after Hurricane Katrina. She's not done yet. CNN hero Liz McCartney right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN ANCHOR: Hero of the Year is Liz McCartney, St. Bernard Project.

(END VIDEO CLIP)

PHILLIPS: Well, and here's the reason why you voted for Liz McCartney, CNN's Hero of the Year. She and her fiance left lucrative jobs in Washington, D.C. They moved to devastated St. Bernard Parish, Louisiana, and started helping devastated hurricane victims rebuild their homes obliterated by Katrina.

It's been three months since Liz was honored, and a lot's been going on. Liz McCartney joins us live.

Hi, Liz.

LIZ MCCARTNEY, CNN'S HERO OF THE YEAR: Good morning.

PHILLIPS: So I'm curious. You got $100,000. I know you received a bunch of other donations. Tell me what you did with the money after you won.

MCCARTNEY: Well, as you know, there's still a lot of work to do in the New Orleans area, so we put that money right back into the St. Bernard Project to start rebuilding more families' homes.

PHILLIPS: Wow. So the money went directly back to the people, which is of course, what we all want to hear. And I know that it also triggered -- by you winning, it triggered a lot of people calling you up, wanting to volunteer. Tell me how it helped your mission.

MCCARTNEY: Yes, it's been great. We've heard from over 500 different people who wanted to pitch in and come down and be part of the solution.

But the other thing that it's done is allowed us to think about what else we can do. You know, in New Orleans today there are over 16,000 families that are still struggling to rebuild. And so while we're enormously proud of the fact that we've been able to rebuild 188 families' homes, there's still a lot of work to be done. So the CNN Heroes program has a lot of focus on what's next.

PHILLIPS: Wow. So I'm curious: back from when you and your fiance were working very well-paying jobs and you were going about your business until Hurricane Katrina happened. You decided to completely change your life and your life's purpose.

Now today, thinking about everything that you've done and all the people that you've met and winning the CNN Hero Award, what has gone through your mind lately? Are you -- do you feel that you have changed 360 since you made the move?

MCCARTNEY: Yes. It's funny. I guess I haven't thought too much about myself. I guess I just keep thinking about what's possible and really focusing on what still needs to get done down in New Orleans. And recognizing that, if you bring good people together, we can solve problems.

So our next big step is to take a bigger bite out of the apple down there. We're opening up a nonprofit construction company that will hire returned veterans, train them and put them to work. Our goal is to create 400 new jobs and to rebuild hundreds more homes in the coming year.

So I guess it's really inspired me to keep working, and to work harder and to work smarter.

PHILLIPS: Well, and you've inspired so many other people. We love looking through your pictures and the video and going to your Web site. By the way, I want to plug that: StBernardProject.org.

One person that touches in particular, Beatrice. Tell us about her.

MCCARTNEY: Yes, she's an older woman who was a client of ours whose home, like so many others in St. Bernard, was flooded. She had about ten feet of water in her house during the storm. And she's an older woman. She worked her whole life and now she is retired, and she's just struggled. She didn't have the right kind of insurance.

But with help from volunteers from the St. Bernard Project, we've been able to put her home and her life back together. And she's very excited to get back home.

PHILLIPS: Liz McCartney, good to see you.

By the way, when are you guys getting married? You took your fiance with you to do this. You know, when's -- when's the big day?

MCCARTNEY: I didn't realize I was going to be on the hot seat for this.

PHILLIPS: All right, I'll call him. I'll find out. Liz, that will be our next follow-up. Great to see you, Liz.

MCCARTNEY: Nice to see you. Thanks for having me on the show.

PHILLIPS: All right. You bet.

Well, if you know someone that you want to nominate as a 2009 hero, you can go to CNN.com/heroes. And be sure to tune in to "LARRY KING LIVE" tonight. You're going to meet our first hero for 2009.

Well, the weather's cold but the welcome couldn't be warmer. Watching President Obama's whirlwind visit to Canada.

(COMMERCIAL BREAK)

PHILLIPS: Hello, everyone. I'm Kyra Phillips live at the CNN world headquarters in Atlanta. And you're live in the CNN NEWSROOM.

GRAPHIC: Think world leaders respect U.S. president. 2008: 24 percent; 2009: 67 percent.

PHILLIPS: No, I'm not going to sing it, guys. I'm going to say it: R-E-S-P-E-C-T. Americans think that President Obama gets it, and his first foreign trip appears to confirm it.

Mr. Obama is in Ottawa, Canada, for a visit that's short on time but long on substance: free trade, clean energy and the war in Afghanistan all on the agenda. And despite the president's huge popularity north of the border, all those issues are potential sources of friction.

CNN's Zain Verjee has more on the search for common ground.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN CORRESPONDENT (voice-over): Canada's crazy about Barack Obama. He enjoys an 81 percent approval rating north of the border. Now Canadians are mixing up special presidential treats.

UNIDENTIFIED MALE: I have my own little style of my rum punch. I give it a little Obama flavor.

VERJEE: The capital Ottawa is buzzing ahead of President Obama's visit.

UNIDENTIFIED FEMALE: People are so excited about Obama coming here.

UNIDENTIFIED MALE: It is exciting to have him. It's kind of like a Kennedy situation.

VERJEE: Canada is a traditional first stop for a new U.S. president, but behind the scenes, there are some tough issues. Afghanistan. Canada wants to stop fighting the Taliban.

PETER MANSBRIDGE, CBC ANCHOR: Canada's been performing a combat role since we got in there in late 2001. Now it wants to withdraw from the combat role; still stay in Afghanistan but work on the redevelopment scene (ph).

VERJEE: Meanwhile, President Obama's increasing U.S. troops there and calling for allies to step up.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My hope is that in the conversations that I have with Prime Minister Harper, that he and I end up seeing the importance of a comprehensive strategy.

VERJEE: Another sticking point, Canadian oil extracted from the sands in Alberta. The Obama administration's concerned at the environmental damage.

OBAMA: What we know is that oil sands create - creates a big carbon footprint.

VERJEE: Also making Canadians nervous, the "Buy America" clause in the stimulus package.

UNIDENTIFIED MALE: Lot of concern in Canada that it is going to cut Canadian firms out especially in the steel area.

VERJEE: Canada is the U.S.' largest trading partner. The Canadian government says more than SEVEN million American jobs directly depend on trade with Canada. And Canadian officials say Ottawa will oppose any protectionist moves by the U.S. But for many Canadians, Mr. Obama can do no wrong.

UNIDENTIFIED MALE: Everything he touches is going to be golden. Hopefully that includes touching Canada.

(END VIDEOTAPE) PHILLIPS: Zain joins me now, live from Washington.

Zain, renegotiating NAFTA's not on the table. Is it?

VERJEE: No, there's really no talk from the white house about renegotiating NAFTA. Obama did raise that when he was out on the campaign trail, but given the economic situation, it doesn't seem he's going to mess with that at all. Canadian official have told me, too, they're completely opposed to re-opening this. No, it is unlikely to be taken seriously.

PHILLIPS: Well, I know you've spoken to a number of Canadian officials. What are they hoping to get out of the visit?

VERJEE: Well, what they're saying, Kyra, is that they really are looking at this as an opportunity to get the relationship off to a pretty solid start and just have the two leaders meet each other and get along. And just sort of, you know, just sort of share some of their thoughts with each other. They're hoping that this meeting will provide the basis for some future discussions - Kyra.

PHILLIPS: This was your home turf. You lived in Canada. Why weren't you with the president on this trip?

VERJEE: I don't know. I don't know. I lived in Canada for about seven years, it was amazing; Montreal for four years and Toronto for three. I don't know how I withstood the cold there. And I don't say "Aye" anymore.

PHILLIPS: That's right. I never hear the, "Aye."

VERJEE: You've beat it out of me!

PHILLIPS: Well we love those Canadians. They're good people. Thanks, Zain.

Well, what would you ask the president? You could ask whatever you like on the new user friendly website, whitehouse.gov. We showed this to you before. And we've decided also to maybe try and help you a little bit more. If you don't want to go on to this website yourself, this is what we've decided to do. We've actually gone down here, actually at the top of website you can go to "contact us." And we discovered this a while ago when the administration first got fired up online. There is a spot down here where you can participate in the Office of Public Liaison. So what we've decided to create an e-mail for you here at CNN. We're going to actually send your questions to the White House. We've already started to do it. So mail to the chief, right here, judgment email us your questions, mailtothechief@CNN.com. We've already sent in a handful of your questions right here on the website, but I want to point out, we haven't heard back from the White House yet. We're waiting for answers and as soon as we get them we will read them to you.

Well, you know that you have an important job when you take an oath of office, not once but twice. Today it's Leon Panetta's turn for a second ceremonial swearing-in as director of the CIA. The former congressman, budget director and aide to President Clinton was confirmed by the Senate a week ago and started work the next day. Vice President Biden is swearing him in this hour at CIA headquarters.

Well, a new report shows that jobless claims have hit a record high but the fed says it does see signs of life, eventually.

Susan Lisovicz on the floor of the New York Stock Exchange with all the details.

Hey, Susan.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Hey, Kyra.

Well, basically, the jobs numbers really just points out the obvious. It's taking long are for people to find work. The continuing jobless claims at the highest level since the government began tracking it in 1967. They are now just under five million people receiving unemployment benefits for more than one week. I should also note that Congress has extended those unemployment benefits.

Meanwhile, new jobless claims came in unchanged last week, but still at a real high level, 627,000 added to those unemployment lines. That's just one week.

Today, Disney announced an unspecified number of job cuts. This week, of course, we have big job cuts from GM as part of its viability plan, as well as Goodyear tire and Chrysler.

Kyra, as far as what we're seeing the big board, Dow Industrials right now down 24. Modest declines, but below - it's 7532 - it's below the closing low of this bear market. And that's something a lot of market pros watch. They're also watching the S&P 500. That's a broader gauge. It's not there yet. It would take a decline of about 4.5 percent, a real big sell-off, for it to get there. But the point is, we're getting closer to it. The NASDAQ is down five points -- Kyra.

PHILLIPS: All right, well, Susan, everyone wants to though where this is going to end. Are we talking months? Years?

LISOVICZ: We're talking a while, Kyra. I think it is safe to say. You know, one trader said to me, before, he said, you know, the only thing that's going to cure this economy is time. And that's painful. That's painful for all of us. And that's one of the reasons why you see the sell-off.

The Federal Reserve says things will probably get worse before they get better. That unemployment this year could hit 8.8 percent; we're at 7.6 percent now. We know how painful that is, but the economy may in fact contract for a full year. That's the ultimate figure, ultimately depends on government policies and the effectiveness of that. You know will is a whole lot going on.

Everybody always asks me for a silver lining here, Kyra, and I'm going to give it to you. Leading economic indicators -- that's one of the reports that came out today -- it's increased for the second month in a row. One veteran economist said this could be -- these could be early signs saying that the pace of the recession skid is slowing. So, we'll take that. If the pace of descent is slowing that's something good. Remember, the stock market is a forward looking indicator. So the market will probably start to improve before the economy does in any tangible way. That's the kind of things that the market watches as well - Kyra.

PHILLIPS: Always love your silver lining. Thanks, Susan.

LISOVICZ: You're welcome.

PHILLIPS: Well, looking for work can be a full-time job and more and more people finding it means settling for part-time hours and a smaller paycheck. But there are perks to being a part-timer.

Right, Gerri Willis?

GERRI WILLIS, CNN PERSONAL FINANCE ADVISER: There's some perks, that's right. You know, and in this economy, it may mean actually having a job. Anecdotally, we've been hearing more and more employers are more likely to offer part-time or telecommuting positions, because it reduces their own costs. And you know, Kyra, the Bureau of Labor Statistics doesn't keep track of this data. People who want to work are finding part-time jobs as a solution.

Here's what one expert said.

(BEGIN VIDEO CLIP)

SARA SUTTON ELL, CEO, FLEXJOBS.COM: But job seekers who previously might not have explored telecommuting and work-from-home opportunities are starting to do so because the employment market's not as great and you might be looking out of the box for opportunities where previously they may have looked at full-time traditional jobs.

(END VIDEO CLIP)

WILLIS: All right. So now there are companies that are hiring part-time workers right now. Let's look at some of them: Kaplan Test Preparation, Aramark, Fetch Pet Care. Let's drill down and talk about these.

Kaplan Test Prep, folks. You know these guys. These are the people who help students prepare for tests like the SAT, the GMAT, GREs. They plan on hiring 2,000 to 3,000 instructors this year to teach classes. Now, there are requirement though. First, you must have scored well on a test you plan to teach and you have to be able to engage students. But the pay's pretty good for starters. You can make $20.00 to $25.00 an hour, that varies widely. Go to kaptest.com for details.

Now, Aramark operates ten staffing centers around the country. They recruit seasonal, hourly employees to support events. Right now, they're hiring 500 folks to staff a rodeo show in Houston, Texas. They're also hiring part-time workers to staff stadiums for Major League Baseball in cities like Atlanta, Boston, Baltimore, New York. Go to aramark.com.

And, Fetch Pet Care. This is a professional pet sitting and dog walking service. They are hiring 1,500 part-time, professional pet sitters, all over the country, 37 states. You know what this means, giving dogs private dog walks, cleaning up after them, pet taxi. Go to fetchpetcare.com.

I mean, you know, people are looking for jobs. This is a great way to plug it. Fill that line in your resume if you really cannot fine anything else.

PHILLIPS: Hey, my good friend's daughter does that. Makes a lot of money. It's going to help towards college.

WILLIS: The tips are key.

PHILLIPS: Exactly. And I did that Kaplan course. Boy, that helped me. Sort of. When I concentrated.

WILLIS: You need somebody to teach you about that.

PHILLIPS: That's right. Well, full-time jobs obviously have better benefits. So, how easy is it to turn a part-time job into a full-time job? Can you even do that right now?

WILLIS: Well, yes, sometimes. Look, in this market, it's not that easy to land full-time job. But you want to us a part-time job to get your foot in the door so you make contacts. You know, you're advertising your wares to a broader community, other people who might hire you down the line. And the key here is to devote as much time as you can, devote the time you would to a normal 9:00 to 5:00 job. Because in the end of the day other people who might hire will see you. Maybe the employer you have decides to hire you. In this kind of economy you may end up taking a different track. Careerwise, it may make a lot of sense - Kyra.

PHILLIPS: All right, Gerri Willis, thanks.

WILLIS: My pleasure.

PHILLIPS: The Swiss are famous for their secret bank accounts and that may be changing now. Swiss banking giant UBS plans to disclose some of the names of secret account holders to the IRS. The IRS charged the Swiss bank with conspiring to defraud the U.S. Treasury by helping customer hide their assets. Well a deal has been reached where the Justice Department will drop the charges once the UBS gives up the names, puts reforms in place and pays a $780 million fine.

It might not be long before your doctor requires you to take a genetic test before your medicines are prescribed. We're going to explain why. Elizabeth Cohen joining us live.

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PHILLIPS: So, could doctors require you to take a genetic test before they write your next subscription? Researchers say that testing your DNA just maybe a life-saving measure to dole out the right dose for some medicines.

Senior Medical Correspondent Elizabeth Cohen checks in now with all the details.

Hi, Liz.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Kyra, hi.

This is one of these, "oh, my goodness, they could do that?" stories. Cause, usually, when your doctor prescribes something, they just write it, they don't test your genes first. But were having a problem - or have been having a problem - with a drug called Cumadin. Tens of millions of people take this drug but it is really hard for doctors to get the exact dose right. And if you get it wrong, you can actually kill someone. But it's tough to get it right.

So, what doctors found is they said, hey, we're going to test people's genes to see if that will help us get the dose right. And what they found is that for many patients - not all, but for many patients, looking at the genes actually helps them get that dose right.

So, this is a really exciting example of how looking at genes before you give a patient a medicine can help you get the dose right. In some cases doctors think with other drugs it can help you decide whether or not to even give that patient that medicine.

PHILLIPS: What happens if someone gets a little too much, too little.

COHEN: It's bad. It's very bad. What happens if you get too much Cumadin, you could have a hemorrhage on your hands. You get too little Cumadin, and you could have a stroke, because Cumadin is a blood thinner and it's supposed to help prevent heart attacks and strokes.

So take a look at this. This is a CAT scan of someone who had a hemorrhage. If you look in there, this is, sort of in layman's terms, a brain bleed. All of that white stuff, that is not good. And that's what can happen if you get too much Cumadin.

PHILLIPS: So, is it possible for patients to get the genetic test now if their doctor is prescribing the Cumadin?

COHEN: You know what, it could be tough because they're still experimenting with this. So you can't just walk into your family doctor and demand this genetic test. There is a good chance your doctor wouldn't even know how to do it. But if you really know how to ask for it and fight and fight for it and be a smart empowered patient, you can hopefully figure out a way to get this test if this is what you and your doctor feel you need. But you really have to be an empowered patient to make that happen.

PHILLIPS: Perfect transition. You just filed your EP, your "Empowered Patient" report. Tell us what's online.

COHEN: How to avoid the fertility fiasco. Did you see that headline? Finding a fertility doctor can be tough because you want one who is going to get you pregnant but not that's going to get you pregnant with eight babies. That's not a good thing, not a desirable thing to have happen. So, on "Empowered Patient" we have all the steps you need for how to find doctor that can get you pregnant without getting you pregnant with puppies.

We also have something that's very different and exciting today. If you go to CNN.com/tips, you'll see a blog that my friend Marcy Heard (ph) wrote. She went through fertility treatments, as you can see from the photo, it ended well. But she says so many people said stupid, rude things to her as she was undergoing fertility treatments. She wrote up three things that you should never say to parents who are undergoing fertility treatments.

So, CNN.com/tips for her blog, CNN.com/health for my "Empowered Patient" article.

PHILLIPS: And that's the first time I've seen a picture of Marcy's baby.

COHEN: Isn't that sweet?

PHILLIPS: What a great photo, yes. And Great tips. A lot of women dealing with that nowadays. Thanks, Elizabeth.

America's cars, they aren't what they used to be and more changes are on the way as GM and Chrysler downsize. We'll going to check out which models are probably going the way of the TransAm.

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PHILLIPS: We're keeping a close and wary eye on the markets this afternoon. Dow Industrials down 31 points right now. The latest jobless numbers aren't helping investor confidence either. The number of people getting jobless benefits jumped to a record high for the fourth week in a row, nearly five million. Ix hundred and twenty- seven thousand people filed first time claims last week. Same as the week before, but still near a 26 high.

It's the end of the road for some popular American cars. As General Motors and Chrysler try to stay afloat, they're both downsizing and ditching several models.

Here's CNN's 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 of 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.

Hello, and welcome again to "MotorWeek."

ACOSTA: For more than a quarter century, John Davis' has hosted PBS' 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 V8 is a V8.

MATT HOLTZMAN, GENERAL MANAGER, FLEMINGS ULTIMATE GARAGE: Yes. Sounds different, feels different. Brings back memories of when I was a heck of a lot younger.

ACOSTA: Matt Holtzman is the general manager of Flemings Ultimate Garage, a small-scale classic car dealership.

(on camera): Just sitting in this car, you feel like you're stepping back in time.

HOLTZMAN: You are.

ACOSTA (voice-over): The '79 Trans Am Bandit is one of its showroom showpieces. The T-top still works.

HOLTZMAN: It's iconic as a brand.

ACOSTA (voice-over): He hopes the bailout will drive the auto giants back to their glory days.

HOLTZMAN: I hope someday someone will replicate this car exactly as it looks.

ACOSTA (on camera): And put it on the road.

HOLTZMAN: Put it on the road.

ACOSTA (voice-over): GM insists it's doing all it can to get back in the driver's seat.

UNIDENTIFIED MALE: Obviously what we can do on our side is continue to bring out 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. (on camera): 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 a gallon on the highway. That's change, GM hopes, the Obama administration can believe in.

Jim Acosta, CNN, Washington.

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PHILLIPS: Well, the Internet's made a lot of stuff easier, right? From research, to entertainment, finding a partner, cheating on one. Guess what, folks? Just when you thought everything was out there, oh, no. There's a website that actually guarantees you an extramarital affair. "What the ...?."

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PHILLIPS: Come Sunday, it might just be veterans night in Hollywood. Three long-time character actors have finally gotten some love from the Academy. You'll probably recognize these nominee's faces, even if you can't quite place them. More now from entertainment correspondent Kareen Wynter.

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KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Dramatic performances from three Oscar-nominated actors who until now have hovered below the Academy's radar.

UNIDENTIFIED MALE: I think the real question is, why did it take them this long to give those actors roles that were worthy of their talent.

WYNTER: Meryl Streep had thoughts about her "Doubt" costar and best supporting nominee Viola Davis.

MERYL STREEP, ACTRESS: The gigantically gifted Viola Davis. My god, somebody give you a movie!

WYNTER (on camera): She paid you the highest compliment, I believe, and the Screen Actors Guild Awards.

VIOLA DAVIS, ACTRESS: It was the highest compliment. I love that woman.

WYNTER (voice-over): Melissa Leo is up for best actress for her role as a mother desperate to provide for her family. The 48-year-old has worked in the business for more than 20 years, both on the big and small screen.

(on camera): What kind of reaction do you get from people when they see you on the street?

MELISSA LEO, ACTRESS: An argument between a husband and a wife and one will finally come over and say, you're not, are you? My wife says you are, and I know you're not. Yes, that's me. WYNTER (voice-over): Audiences may not know his name, but they likely recognize Richard Jenkins' face. He's nominated for best actor in "The Visitor" and is career spans three decades in both dramatic and comedic roles like "Step Brothers."

(on camera): This is your first acting nomination. Tell me what that's like, how that feels.

RICHARD JENKINS, BEST ACTOR NOMINEE: Something I never thought would happen. And, you know, if you live long enough, you see everything.

WYNTER (voice-over): So which of the trio stands the best chance of taking home the gold against big-named competition? Oscar historian Steve Pond is banking on Davis.

STEVE POND, OSCAR HISTORNIAN: In the supporting category, especially supporting actress, the Academy often loves somebody who appears to come out of nowhere and knock it out of the park.

WYNTER: Win or lose, it's still a career grand slam for all three actors who will always carry the title, "Academy Award Nominee."

Kareen Wynter, CNN, Hollywood.

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PHILLIPS: Well, now for the, "What the..." file.

Take a look at this one. A Wisconsin dad filed with a child abuse charge after he hit his kid in the butt with a bb. Oh, yes. Dad admits firing the air gun at the 9-year-old because he was blocking the TV and he just wouldn't move. The kid went to school and wrote an essay about the incident hoping to get an "A," and it actually shocked the teacher into calling the cops. The father says he instantly regretted firing the gun, he called it a dumb mistake and horseplay.

Well, a different kind of horseplay is up for grabs on a different kind of dating website. Ashleymadison.com has been around for awhile, but lately it's been making its ads mainstream. The site guarantees to change your life by helping you have affair. It's mottos, "When divorce isn't an option...," and "Life is short, have an affair." The founder says more than three million members have signed up since he launched in 2001.

Michael Jackson. Guess what he's decided to do. Downsize. Even tough for M.J. in this economy. Now he wants to be selling something. He's got to be selling something. More than 2,000 things actually. At a giant auction in April, we're getting a look at the Jack-o stuff up for grabs. And if the gates of Neverland aren't in your budget, maybe go smaller, maybe rhinestone socks or even the famous rhinestone glove. All told the auction house thinks that M.J. could see three million bucks from the sale.

Next hour of CNN NEWSROOM starts right now.