Return to Transcripts main page
CNN Newsroom
Fixing the Economy; Stopping Foreclosures; California Budget Plan; Arrest Expected in Chandra Levy Case; Survivor's Story: Life After DHL Closes U.S. Hub; Interview With Governor Tim Pawlenty; Preview of the Oscars
Aired February 21, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Police close to making an arrest in the nine-year-old cold case of D.C. intern Chandra Levy. Yes, Chandra Levy; you remember the name. Coming up in just a few minutes, we'll hear from her parents.
BETTY NGUYEN, CNN ANCHOR: And President Obama touted his housing plan this week, but what does it mean for you? Do you qualify for any of the benefits? Send us your questions. We have an expert here, right here on the desk, to answer them.
From the CNN NEWSROOM, this is the CNN NEWSROOM. It is Saturday, February 21st.
Good morning, everybody. I'm Betty Nguyen.
HOLMES: And hello to you all. I'm T.J. Holmes.
It's 10:00 a.m. here in Atlanta, Georgia, 7:00 a.m. out on the West Coast.
Glad you all could be with us.
We will start with the economy.
President Obama today saying that the typical American family will get out of that $800 billion stimulus bill about $65 more per month. That's starting in April. That's part of the tax cuts, that tax cut and that huge stimulus bill that he signed on Tuesday.
Well, President Obama playing host to many of the nation's governors this weekend. They're in town for the National Governors Association annual meeting. Thought they'd just stop by the White House and say hello while they're in town. The president looking for a little more support for how he's going to be handling this economic crisis.
Our Kate Bolduan is at the White House.
Kate, a lot of these governors, many of them, they don't necessarily like the bill, but will take the money.
KATE BOLDUAN, CNN CORRESPONDENT: It's going to be interesting to hear more from these governors as they come into town, but some of them, many of them, have been out calling for these funds already. However, at least we know there are at least a couple of Republican governors who say they're going to refuse at least part of the funds. They just don't support this economic stimulus package.
This is all going to be part of a very busy week. Monday, the president will be hosting governors, Democrat and Republican, from across the country. All 50 are invited. Later that day, the president will be hosting what they're calling a fiscal responsibility summit, bringing together a bipartisan group of lawmakers, economists, people from the labor and business sectors to talk about the mounting deficit, as well as long-term budget issues like Social Security.
This all comes after the president had a busy week this week signing into law the $787 billion stimulus package. The president this morning says that means that help is on the way, and soon. Listen here.
(BEGIN VIDEO CLIP)
BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: I'm pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks. Meaning that by April 1st, a typical family will begin taking home at least $65 more every month.
(END VIDEO CLIP)
BOLDUAN: Of course, the president says that is part of the stimulus package, they're trying to roll it out as quickly as possible.
Also happening this week, the president will be addressing Tuesday a joint session of Congress. Economy, economy, economy, that will be the focus, as we can expect. And Thursday will be a very big day. We'll get a look at the first Obama budget. They'll be unveiling the 2010 budget, and it will be one that will be closely watched, I have to tell you.
Listen here to Congressman Dave Camp of Michigan.
(BEGIN VIDEO CLIP)
REP. DAVID CAMP (R), MICHIGAN: Republicans genuinely want to work with the president to solve these problems in a responsible way that does not burden our children and grandchildren with a mountain of debt. The summit next week is an important step, as is the budget outline the president will release at the end of the week. If he is serious about dealing with the tough issues and getting spending under control, his budget will show it.
(END VIDEO CLIP)
BOLDUAN: You can see that's Republican Congressman Dave Camp in the Republican response this morning, criticizing, also, during the response, Democrats, as they were kind of leading into saying reckless spending so early in this administration. But Camp did say that this next week, they're kind of putting it to be a very big week. It's an opportunity, as he says, to hit the reset button in trying to get back to what President Obama had said he wanted to do, was work in a bipartisan way toward a solution to get this economy back on track -- T.J.
HOLMES: All right. Let's try the reset button.
BOLDUAN: Try again.
HOLMES: Let's see if that works.
All right. Thank you so much.
Kate Bolduan for us from the White House.
And as she mentioned to you, tonight, the president gives his first address to Congress on the economy and a whole lot more, we're sure. And you can watch that all right here, live here on CNN. You can also watch it with your Facebook friends on CNN.com. Again, that's Tuesday night, 9:00 Eastern Time.
NGUYEN: Well, the White House is defending President Obama's mortgage rescue plan. With $75 billion to dole out, how will the government make sure the money is going to the right people?
(BEGIN VIDEO CLIP)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: There will be people that made bad decisions that in some ways will get help. This plan, though, I think it's important for the American people to understand, was designed to help those that have been responsible.
(END VIDEO CLIP)
NGUYEN: Well, all morning long, we have been asking you what you think about the president's plan. And joining us again to address some of these concerns is housing and finance expert Clyde Anderson.
And Clyde, T.J. and I have a bunch of e-mail questions from people who really are in a fix, and they need some answers. So hopefully you can help them really manage their way through the stimulus package.
HOLMES: Yes. And here we go. And our guy here really is an expert. He wrote a book.
What is the name of that book again?
CLYDE ANDERSON, AUTHOR, FINANCIAL EXPERT: "What Had Happened Was."
HOLMES: "What Had Happened Was."
So Dave here is wondering what happened here. He's saying, "The other day, a commentator stated that under the new plan, homeowners would be able to borrow up to 105 percent of the appraised value of a house. Is that true? And if so, how is allowing homeowners loans of 105 percent, which is going to be negative five percent equity, how is that going to eliminate this problem if buyers want to sell the house two or three years down the road?"
ANDERSON: Right. And I don't think any of this actually eliminates. It's a start.
And so what that does is, someone that owes $210,000 on a $200,000 house, now they have an option. Before, they couldn't refinance; they couldn't get that payment down to a range where it was more affordable. Now they can.
So hopefully this helps them in the next two to three years, to be able to save up some money, make on-time payments. And so then the value will start to come back in their home. So this is kind of that bridge, that gap to fill it in the meantime.
HOLMES: Make the situation more manageable.
ANDERSON: That's it. And that's what we're looking to doing.
NGUYEN: And speaking of more manageable, I love these questions, because our viewers are getting very specific with them.
Wardell Harris says, "The value of our home has gone down. My wife and I have perfect credit, and we would like to refinance at a lower monthly payment. We have a 25-year loan with 22 years left at 6.8 percent." That's the interest.
Now, he says, "I'm hoping to refinance to a 20-year loan with 4.5 interest rates that I hear are on the way. Is that possible?"
ANDERSON: It's definitely possible. You know, the feds are working to keep the rates down to a point that's manageable.
We don't know exactly for sure if that's happened, or when it's going to happen, when it's going to take place. I definitely think it's doable.
I don't know if I would go into a 20-year loan. If they're going into a 20-year loan, they're really looking to accelerate and pay it off faster. Maybe they want to look at a 30-year loan, too, to get the payment down more manageable.
So there's different things that they can look at. And he mentioned there -- I think it's key -- that the value of the property has gone down a little bit.
NGUYEN: And a lot of people are facing that.
ANDERSON: And a lot of people are facing that. So you're going to want to talk to your lender to find out, what is that loan of value that they will accept? Where does that gap have to be between how much the property is worth versus how much you owe in order to refinance? And you've got to have some room in there.
NGUYEN: Got you.
HOLMES: We've got one here directed right at you. "Mr. Anderson" is how it starts off here.
ANDERSON: All right. HOLMES: He says, "He keeps making modifying your mortgage sound easy." He says here -- this is Jason from Indiana. He says, "I have tried working with my lender for a year and a half, not calling every once in a while, calling every other week. The more I work to make extra money, the more they tell me I can afford my loan. My payments have gone from $2,400 a month to $3,500. Where do you go when the lender just does not care to help?"
ANDERSON: I apologize if I made it sound easy. It's just a process just like anything else.
Modifying may not be the easiest thing in the world to do, but it's definitely an option. Yes, you have to have your due diligence. You have to stick in there and do it.
But I would say again, we had mentioned before that March 5th is that magic date that a lot of this is going to happen. I would say keep on the lender, but also look to Fannie Mae and Freddie Mac. They're willing to provide answers at that point.
They'll have all the details, all the guidelines. So go right to a representative from Fannie Mae or Freddie Mac and say, "Hey, what can I do? This is what my lender is saying. What do you have for me? What can I do?"
Find out who's servicing that loan that you have. Talk to them, find out if it is a Fannie or Freddie secured loan, and then you're going to have lot more options.
NGUYEN: Yes, March 5th is that magic date where we're going to understand exactly how this is going to work.
ANDERSON: Exactly.
NGUYEN: And by that time, will the banks be ready to start lending out that money? Because just as we heard from the viewer there, a lot of people are feeling like the banks aren't doing what they should be doing.
ANDERSON: Yes, that's what they're saying, they should be ready by that point. Now, that's yet to be seen, if everybody's going to be in place and ready to make this happen on the 5th. So I'm kind of waiting on that point.
NGUYEN: All right, Clyde. We've got a whole lot of questions we're going to be directing. As well, we've got Facebook. People are joining us on our Facebook pages, asking questions about, what do we do? How do we do it?
Also, at weekends@cnn.com, you provided a lot of good information this morning. And what we want to do, continue asking you to send those in to us.
Here is the question. You know, what is it that you need to know about the housing rescue and foreclosure relief plan? And what are your questions? E-mail us, weekends@cnn.com. Or go to our Facebook pages and put those there.
And Clyde will be back a little bit later with some more answers for you, so stick around for that.
In the meantime, though, California Governor Arnold Schwarzenegger has signed his state's budget plan which lawmakers approved Thursday after a 106-day legislative battle. The plan is aimed at wiping out California's $42 billion budget deficit.
Now, the state is hoping to raise $12.8 billion through June of 2010, with a number of temporary tax hikes.
Joining us now live to talk more about California and what it's facing is assembly speaker Karen Bass.
Ms. Bass, thanks for joining us today.
Thanks for having me on.
NGUYEN: OK. First up, how confident are you that this budget package will close California's $42 billion deficit?
KAREN BASS, CALIFORNIA ASSEMBLY SPEAKER: Well, I'm certainly confident that it will close it right now, but, of course, in April and May, when tax receipts come in, I will definitely be concerned if revenues dip again.
NGUYEN: Yes, absolutely.
Let's look at these numbers again and what this budget is going to do. I mean, it's going to temporarily raise the sales taxes, it's going to double the vehicle license fee, it's going to increase income tax rates, it's going to cut funding to schools.
How in the world do you expect Californians to sign off on this when poll numbers already show voter disgust is at an all-time high?
BASS: Well, you know, we absolutely had no choice. We had a $42 billion deficit, as you report. And over the last three years, we have cut over $19 billion out of the budget.
So, for example, although we're raising taxes, we're also cutting education by $8 billion. So we had no choice other than to do both, raise taxes and do deep cuts to programs.
NGUYEN: Yes. You're in a tough spot here, because this budget plan, in fact, though, could fall apart if voters don't approve it in a special election in May. So what then? What if it does? Is there a Plan B?
BASS: Well, you're absolutely right. For example, there will be a ballot measure regarding California's lottery. If voters do not approve us securitizing the lottery, that will immediately punch a $5 billion in the budget. And so we have a lot of marketing to do. We have our job cut out for us, but it's absolutely critical that these measures get passed by the voters.
NGUYEN: But you know what? It's not just you. Several other states -- in fact, some 40 states are operating in the red. Is California just an example of what other states will have to face?
BASS: Well, I think in a way, California was the epicenter of it, you know, given that 40 percent of the nation's foreclosures took place in California. But one thing that's very unique about California, it takes a two-thirds vote of the legislature to pass the budget, and there's only three other states in the country that have that situation.
NGUYEN: All right.
Karen Bass, speaker of the California Assembly.
Good luck to you. A lot to be done between now and May.
BASS: Thank you.
NGUYEN: Thanks so much for your time today.
BASS: Appreciate it.
NGUYEN: Well, California settling their budget mess, at least trying to, but other states will still have their work cut out for them. Will the stimulus help? Coming up at the bottom of the hour, we're going to talk with Minnesota Governor Tim Pawlenty and here why he's not happy with the plan, but not ready to say no to the money either.
HOLMES: We want to turn now to our developing story this morning. After nearly eight years, reports of an arrest that is coming in the murder of Washington, D.C. intern Chandra Levy. You will remember that name.
Joining us now non the phone with more is Mike Brooks. He's a retired police detective.
Mike, it's been a long time. Who is this suspect and how soon might an arrest be made?
MIKE BROOKS, RETIRED POLICE DETECTIVE: Well, they're going to present the evidence, what they have, the new evidence of what they have, and we believe that is possibly a statement from an inmate who is in jail, with Ingmar Guandique. Guandique has been in jail since July of 2001 for two assaults in Rock Creek Park, the same park where Chandra Levy's remains were found, and the assaults happened from not too far from where she was found, T.J.
And it's believed that an inmate overheard him telling another inmate that, yes, he in fact killed Chandra Levy. You know, there has been a lack of physical evidence, but this new evidence is going to be presented to the U.S. attorneys by law enforcement, to the U.S. attorney in Washington, D.C. And they say that it looks like an arrest warrant will come out of this. As I said, he has been in jail for two similar assaults; they were both nonfatal. But both women were -- he attempted to strangle both women. As we know because of the autopsy, Chandra Levy was strangled, and that was apparently the cause of her death.
HOLMES: And again, a reminder here to a lot of our viewers who will remember the name Chandra Levy. She was the intern in D.C. This case got a lot of publicity not just because of the circumstances -- it really seemed like she disappeared off the face of the earth -- but because it was revealed during the course of this investigation that she had been carrying on a relationship with Gary Condit, who is a former now -- former congressman from the state of California.
There he is. You'll remember that face, remember the name as well.
Mike, back to the case here and this suspect, this is someone, like you said, who was in jail for some similar attacks in the same area where Chandra Levy went missing. But it sounds like -- I mean, how strong evidence do we know historically, given other cases, this can be? If this person heard this person tell this person this, I mean, is that going to be a strong enough case to build against this guy?
BROOKS: Yes. Well, you know, that remains to be seen, because there was not a lot of physical evidence, T.J., because, you know we talk about Gary Condit, and law enforcement was criticized because, for almost two weeks, in the first part of the case, they focused all their attention on Condit as a suspect.
And then, you know, then we found that he was -- and they were also criticized because they searched an area of the park, apparently just not -- just adjacent to where the body was found, but didn't continue on with their search. Law enforcement officials in Washington back then took a lot of criticism. And you know, still, detectives today say, you know, if we hadn't focused on Condit for so long, they may have been able to focus on this Guandique. But because -- in fact, as I said, he was arrested in July of 2001 for two similar attacks.
HOLMES: Yes. All right.
Well, our law enforcement analyst Mike Brook has been working his sources for this, on this story, developing story.
Mike, we appreciate you.
Well, they survived the war zone, only to face an economic battle at home. Veterans who served their country are ending up on the streets. But now a hero has come forward to help.
NGUYEN: And what happens to a town when it's biggest employer shuts down? Well, a semi truck filled with goods rolls in to help save the day. We're going to talk with the man who made it happen and a woman who's left reeling from all the layoffs.
(COMMERCIAL BREAK)
NGUYEN: All right. I want you to listen to this, because when you hear the number, it is haunting.
More than 150,000 U.S. veterans, people who served to keep us safe, they are homeless, unsure of where they'll find their next meal. But one man is working to change all of that. He's passionate because he was one of them.
He's our first CNN Hero of 2009.
(BEGIN VIDEOTAPE)
ROY FOSTER, COMMUNITY CRUSADER: I actually joined the Army right out of high school. I became introduced to alcohol once I was out. It was just simply drinking and drugging. And I would then stay in the streets.
I was looking for a safe haven. The places that I was introduced to were no better than on the street. It was humiliating. That's when the commitment in my heart, it was born.
How can I turn my back and walk away and leave you right here?
UNIDENTIFIED MALE: You can't.
FOSTER: I can't.
Nationwide, veterans are neglected, homeless. Unacceptable.
What branch of service?
UNIDENTIFIED MALE: Army.
FOSTER: Army. So was I. We are still brothers in arms. So no man left behind.
My name is Roy Foster, and my mission is to help and empower homeless veterans.
If you're going to work for sobriety, you've go to change. Stand Down House provides service for veterans only, a safe, clean place to live. All of the meals, mental health services. The camaraderie, it is that internal gloom (ph).
UNIDENTIFIED MALE: When I got back from Iraq, it was difficult for me until I met Mr. Foster, who helped me.
FOSTER: Tell him one of his brothers in arms came out looking for him, and let him know, yes, we will be back.
They are the best, and they deserve the best. What I do, I love. I love.
(END VIDEOTAPE)
NGUYEN: And for more on Roy Foster's program, check out cnn.com/heroes. If you know someone who's working to change the world, don't forget to nominate them. HOLMES: Well, we've got some more heroes to tell you about. Maybe they'll end up being nominated along the way this year.
NGUYEN: Yes.
HOLMES: But they came to the rescue of a town that was in crisis. But we still don't know if all this good will is going to be enough.
NGUYEN: A survivors story from the heartland that will touch you this Saturday morning.
(COMMERCIAL BREAK)
HOLMES: Well, take a look here at this much-needed help that rolled into one community. Semi trucks that were loaded with food and personal items pulling into the town of Wilmington, Ohio.
The food there in Wilmington might sound familiar. It's been in the news lately because thousands of workers were left jobless by a plant closure of the air cargo carriers, a plant that it had at DHL, the hub they have there. Many say after getting laid off, they have been just barely getting by.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We're just going to try to hold it together as a family and go from there.
UNIDENTIFIED FEMALE: It's tough. It's just tough, because we're helping support not only our family, but our children's families too.
(END VIDEO CLIP)
HOLMES: Now, the city there estimates that one in three families in Wilmington has been affected by the DHL shutdown. One of those workers, one of those families, Laura Walker, was laid off. She joins us now to share her story.
And also with us is Larry Jones. He runs the outreach program Feed the Children, which in that food and aid to that community of Wilmington.
Laura, I want to start with you. Heartbreaking to read through your story, but you have been through a lot the past several years. And then you lost your job.
Go through and just tell our viewers what you have been going through the past few years, if you can, quickly.
LAURA WALKER, STRUGGLING TO SURVIVE LAYOFF: Well, when my husband was 50 years old, he was a journeyman machinist, and he lost his job from a company. And he spent six years in and out of work trying to find work. And I watched first hand the struggle that it took on him emotionally, to the devastation of not being able to support the family, not being able to pay the bills.
HOLMES: And that led to a massive heart attack, you believe?
WALKER: A massive heart attack. He died five and a half years ago. Our daughter was 13. And I've been a single parent.
HOLMES: Would you go as far as saying -- would you go as far as saying -- I mean, quite literally, can it be said, would you say, that the economic downturn and tough times cost your husband his life because of the stress?
WALKER: Oh, definitely. You know, the men like to be the supporter of the family. He had a lot of pride in his work. And to be 50 years old and feel like he wasn't worth anything anymore, that he couldn't compete against younger kids, even though he had the talent, employers were not interested in hiring somebody who need higher pay, that needed more insurance. It took a toll on him and it killed him.
HOLMES: And I know then your daughter had some medical issues you had to deal with, so things just kept piling up and you lost your job.
Mr. Jones, let me ask you -- again, the head of Feed the Children.
Sir, I guess maybe you didn't know all the personal stories down to the detail like we just heard there. But what prompted you to action? I guess hearing just how much one community would be devastated by one company closing down a hub?
LARRY JONES, PRESIDENT & FOUNDER, FEED THE CHILDREN: Well, I knew that there would be not only the 10,000 jobs lost, but I also realized that there would be a ripple effect. And I met so many people who didn't work at DHL who lost their jobs. So consequently, that's why we chose Wilmington to do our first Americans Feeding Americans emergency caravan.
HOLMES: Laura, how do you get by in the meantime? I know this will help, the help that Feed the Children brought.
WALKER: Very much so.
HOLMES: But how do you get by? This will hold you for a time, but, I mean, what are your prospects now as far as getting a job, getting back on the right track?
WALKER: Well, ABX has been very wonderful in setting up a transition center where they offer free computer classes, interviewing skills. I have taken advantage of all of those.
I have been selling things off from my house in order to keep up with the payments, to keep up with bills. The medical bills for my daughter I have not been able to pay. That has been the hardest. That's where the collection calls come from.
But I have sold items out of our house -- my husband's maching tools. I have sold our trailer, just anything I can. I still have a piano for sale if anybody needs one.
The things that you do, you know, there's no extras. I'm very conservative with money. Very tight-fisted.
But my biggest concern is the severance is done, the unemployment is kicking in, and that's only going to be 40 percent that I'll recognize of a biweekly pay. And to pay the insurance on that, that has been really, really difficult to figure out how I'm going to make it work.
HOLMES: Oh, Laura. And it sounds like you're there, you're going to be going through some training and getting some new skills, maybe. And like you said, trying to compete.
Larry, I'm going to ask you here this final question. Will we see and should we see more of this?
I mean, people talk all the time about how we lend a helping hand in times of disasters or tragedies, and things like this. But I guess this is what we're experiencing right now, is a national tragedy and a disaster on some scale, to where maybe organizations like yours will have to come in and help out in more of the ways that you're doing now.
Do you plan on doing more of this in the future?
JONES: We certainly do. And we did 5,000 families in Wilmington, with 12 trucks. Our next date is March 10th. We're going into Elkhart, Indiana, where the president just was recently.
And now we're choosing other places where we need to go, because while we're putting a Band-Aid on the cancer, it's really a big Band-Aid, and the people need it right now. And we're going to do everything that we can to help people who have lost their jobs and those who are really, really struggling.
HOLMES: All right.
Well, Larry Jones, president and founder of Feed the Children, and Laura Walker, who -- I talked to you in the break. You still had a smile on your face in all you have been dealing with.
And folks, she has a piano for sale if you need it.
Guys, thank you so much.
Mr. Jones, thank you for what you do.
JONES: Thank you.
HOLMES: And Laura, you hang in there, dear lady.
Thank you for being with us this morning and sharing your story.
WALKER: Thank you. And thank you to Feed the Children too.
HOLMES: All right.
Thank you guys so much.
And stay with us right here. A lot more on the economy and our breaking stories of the morning.
Stay with us.
(COMMERCIAL BREAK)
HOLMES: All right. The nation's governors are meeting in Washington, D.C., this weekend, and on their agenda, a stopover at the White House to sit down with the president for a little dinner. And one of the guys that will be there, Minnesota's Republican Governor Tim Pawlenty. He's joining us now.
I know a lot of talk about the economy and states -- every state, just about, is struggling right now. Now, a lot of Republican governors had an issue with the stimulus bill. Didn't necessarily like it, but still going to take the money.
I assume you are one of those governors?
GOV. TIM PAWLENTY(R), MINNESOTA: Yes. And in Minnesota's case, of course, we're in a little different situation, because we're a major net subsidizer the federal government. For every dollar we send out there, we only get 72 cents back. So we're going to accept our share, and I think most other governors are as well.
HOLMES: Now, what do you think when you hear about some of your fellow Republican governors who say, we're going to reject a portion of it? In particular, Louisiana Governor Bobby Jindal, also Haley Barbour out of Mississippi, saying at least a portion they're not going to accept, because it comes with particular restrictions that down the road they won't be able to fund possibly? What do you think about some fellow Republicans saying we don't want all of it, keep some of it?
PAWLENTY: Yes, I understand it, as I understand their position. They're really talking about just one or two percent of the money they'd be receiving. They're going to accept 98 percent of it.
They're talking about an unemployment insurance provision where they say, if they accept the money, they may have to permanently increase the benefits, such that they'll have a tax increase down the road. But I think the answer to that would be to just simply increase the benefits temporarily. That's what we're going to explore and do in Minnesota.
HOLMES: So you don't necessarily agree with their plan, even if it's just rejecting two percent? You think at this point you need to take all the money you can get?
PAWLENTY: Well, as it relates to that narrow issue, again, which they're going to -- it seems to take 98 percent of the money also. So you've got to put it in that context. But as it relates to unemployment insurance, this is a time I think to try to help people with unemployment assistance. And if the concern is you're going to get locked into some permanent benefit increase, well, don't make it permanent. Make it temporary.
HOLMES: Will you relay those sentiments to them when you talk to them this weekend?
PAWLENTY: Well, you know, each state is different, with different laws. So maybe they don't have the latitude to do that in their state. I think we can do that in Minnesota.
I do have concerns about the stimulus bill. I don't think it's a very good bill. But I think, again, because Minnesota's a net payer into the system, we're going to take our slice.
HOLMES: Do you have a good feel for how this is going to work? Meaning, how quickly you will get that money? And also, we talked about out of Louisiana, also Mississippi, some restrictions on some of that money that could be restrictive or make it tougher for states. Do you see anything that is going to limit how you can spend that money in your state?
PAWLENTY: Absolutely. That's one of the concerns.
In a nutshell, the concerns are these -- it's money the federal government doesn't have. They're borrowing from the Chinese and other places around the world.
Number two, it's a big spending bill, not just a stimulus bill.
But number three, a lot of it has strings attached to it. For example, in Minnesota they're going to now have to spend a billion dollars on education, which normally is a good thing, except we have a situation where we were never going to spend that much money.
We weren't cutting education in Minnesota, we were saying, in these economic times, in my proposal, it should grow modestly. Now it's going to grow gigantically under the federal requirements. So that's one example of many where they're coming in and saying, we'll tell you how to do this, and I think in many ways, it's going to be counterproductive.
HOLMES: And certainly, you are in a different position as a governor of a state that many of your fellow Republicans are on Capitol Hill. But if you were -- I know a lot of politicians like to reject hypotheticals when they're in interviews, but if you were in Congress, if you were serving in the Senate or in the House, would you have rejected this very same bill that you're now going to be accepting the money from?
PAWLENTY: I would have voted against this bill, because I would have had it focused on -- provided amendments to focus on bread and butter things like tax cuts, that puts money into people's pockets immediately, or proven infrastructure projects. This bill goes way beyond that, into a massive spending bill, a meandering buffet of spending, which has in many cases not much to do with stimulus.
HOLMES: Would you say -- is this an accurate statement, in your opinion, that what may be good in the near term, in the short term, for your citizens of your state of Minnesota, might in the long term or will in the long term be bad for this country as a whole?
PAWLENTY: It could very well turn out that way. And I'll give you another concrete example.
One of the things that's bankrupting the federal government, that's bankrupting the states and school districts and counties, is health care. But in particular, Medicaid. And they're going to say if you take this federal money, you essentially can't change the program, and that program is in dire need of reform. And so they're kicking the can down the road for the problem to reemerge in a way that could even be more difficult to solve in the future.
HOLMES: All right. Last thing here.
What is going on in your state with that Senate race? Are they going to wrap this thing up?
PAWLENTY: No, I'm afraid not. It's in litigation. And if one side or the other appeals the initial stage, it could spill into summer before we have a result. I hope that isn't the case, but this could go on for a while if there are appeals.
HOLMES: All right. And of course, can't let you go without asking -- you were widely viewed as on the short list for VP with Senator John McCain. Now widely viewed as a candidate in 2012.
Sir, have you given any thought or made any decisions about running in a few years?
PAWLENTY: No. I'm focused on my challenges and opportunities in Minnesota. And I also have the possibility of running for reelection for governor in 2010.
HOLMES: In 2010. You are going to do that, I assume?
PAWLENTY: Well, I'm considering it. I haven't decided that yet.
HOLMES: When will we get an answer?
PAWLENTY: This spring.
HOLMES: All right. We will be tuning in. We'll see you back for that answer in the spring.
Governor Tim Pawlenty, we appreciate you. Thank you so much for being here.
PAWLENTY: Any time. Thank you.
And, of course, President Obama is going to be delivering his first address to the nation on the economy and much more. Tuesday night, 9:00 Eastern, you can watch it live right here. Also, watch it with your Facebook friends on CNN.com.
NGUYEN: We also asked, and you have responded. In fact, in droves. We have gotten so many e-mails and really good questions.
Coming up, more of your e-mail questions about the housing rescue plan. HOLMES: Also, a finance expert walks us through the confusing language. Kind of sort out who gets what, when do you get it, how much you get, all that good stuff. We'll let him tell you.
(COMMERCIAL BREAK)
NGUYEN: President Obama's $75 billion plan to help homeowners facing foreclosure has lots of people asking a whole lot of questions today. And among the main ones, is there anything in it for me? And how do I qualify?
Well, we're trying to answer some of those questions this morning. And financial expert Clyde Anderson is back with us to do just that.
I know you have provided a lot of good information, and we're still getting more questions in.
I want to take you to one right now that I got off of my Facebook page. This from Steve Copertino. And he writes, "I have heard that my lender is in danger of being insolvent. What happens if they go out of business?"
ANDERSON: I wouldn't worry about it too much, because mortgages are just like stocks. They're bought and sold. And so someone's going to be interested in purchasing those servicing rights of that loan that you have.
So they may change hands, you may go to a different servicer, your lender may be different. But I don't think there's a problem that he has to worry about.
NGUYEN: And when it comes to this big plan -- and everyone's waiting for March 5th for us to understand exactly who gets what, how can you qualify, there are those who have a lot of criticism about it. A lot of people saying, look, you're rewarding people who were irresponsible.
I want you to take a listen to what White House Press Secretary Robert Gibbs had to say this week.
(BEGIN VIDEO CLIP)
GIBBS: There will be people who made bad decisions that in some ways will get help. This plan, I think it's important for the American people to understand, was designed to help those that have been responsible.
(END VIDEO CLIP)
NGUYEN: OK. So that is what we're hearing. And in fact, it falls right in line with another question I got with someone on my Facebook page. This is from Sarah Michelle Vertosi (ph).
And she writes, "How will the government differentiate from those who are victims of an innocent mistake and buying too much home based on too much confidence in the housing market? The folks who knowingly speculated, betted on this, and then lost?"
ANDERSON: Right. And everybody makes mistakes at some point. You are owed that. You do make mistakes.
Some people just didn't know. They didn't know that that adjustable was going to begin to adjust two percent every year. So that's a mistake that they made.
NGUYEN: But don't you know? I mean, you're signing on the dotted line. You know, don't you know it's an adjustable rate mortgage, that rate is going to adjust?
ANDERSON: And I think what happened, a lot of people were so caught up in the economy, the boom that was happening, that, I'm going to be in a better place two years from now, I'm going to be making more money two years from now. Not realizing that was going to go the other direction.
NGUYEN: Yes. And then all these jobs being cut.
ANDERSON: And all the jobs are cut. And so, you're in that position. But also, some of the people who really were truly victims, the information was not explained correctly.
They really got kind of switched around. And so you have those people, but you also have the people that knew they bit off more than they can chew. So there's no way -- Mr. Gibbs said it correct, there's really no way...
NGUYEN: To differentiate, yes.
ANDERSON: ... that we can just kind of point fingers and mete out those people. They're going to benefit from it as well. Not all of them, but some.
NGUYEN: And if you haven't gotten yourself into this mess just yet, but you are looking to buy a home, we want to clarify that, ,if you're a first-time homebuyer, you are eligible for a tax credit.
ANDERSON: You are. You're eligible. And it's actually an $8,000 tax credit.
NGUYEN: It used to be $7,500.
ANDERSON: It used to be $7,500, so they made the amendment with this and they rolled out the new plan. It's $8,000 that you can get as a tax incentive.
So it's a great time to buy a house. It's a great time.
You know, I really -- we talked about it earlier. Don't listen to all the negatives saying that banks aren't lending. Banks are still lending. And now you have credits like this that the government is putting in place that will help you tremendously.
NGUYEN: But you also have to fall within the guidelines of this. For example, yes, you can get that tax credit if you're a first-time homebuyer, but only if you make so much money in your annual income.
ANDERSON: Right.
NGUYEN: So these are the things that are going to be lined out in that March 5th e-mail...
ANDERSON: Exactly.
NGUYEN: ... that we should -- the Web site that should be online and we should get the information?
ANDERSON: Exactly. We'll be anxiously awaiting what they say on the 5th, and make sure everybody has the components that they need to go ahead and carry this thing out, because I think it's exciting.
NGUYEN: Is there going to be incentive for those banks to go ahead and start, you know, being a little easier when it comes to loaning money out? Because we have gotten a lot of questions people today saying, you know what? I think I can qualify, I'm doing my du diligence, but the banks aren't giving me the loan I need.
ANDERSON: Right. Well, I think this plan helps to have some accountability measures in place. But it also incentivizes banks to go ahead and lend, knowing that they've got the backing of the government.
The government is saying, hey, we're here to help you, we understand the situation. We need you, Mr. and Mrs. Bank. We need you to be here. And so they're going to kind of stick to that and they're going to help them to give them that subsidy to kind of -- in some cases, one of the things they're talking about is giving judges the ability to go ahead and reduce the principle amount of the loan to match what the house is worth.
NGUYEN: Oh, really?
ANDERSON: So those are things that are coming out of this.
NGUYEN: And that could be a big difference, especially if you're upside down on that mortgage and you have lost, what, say $100,000 in the value of your home...
ANDERSON: Exactly. Exactly.
NGUYEN: ... which we have seen today in some of our e-mail questions.
ANDERSON: Exactly.
NGUYEN: Clyde, thanks so much for your information. You provided a lot of insight. We do appreciate it.
ANDERSON: Thank you, Betty.
NGUYEN: T.J.
HOLMES: All right, Betty. We're going to switch it up here just a bit and talk about a big show happening tomorrow night. You know, the Oscars.
Well, are there any sure things at the Oscars? Some would say yes. Like Heath Ledger. But it's pretty stiff competition for that role as well, or for that statue, I should say. A long list of Oscar favorites who didn't get a statue, that's coming up.
And what happens when an American classic hits an economic bump in the road? Is it a pit stop or is it the end of the line?
Wait, is that a classic?
(COMMERCIAL BREAK)
NGUYEN: Well, actor Heath Ledger didn't live long enough to enjoy the success of "The Dark Knight," but that has not stopped him from being honored for his work.
HOLMES: Yes. And a lot of folks think he is pretty much a shoo-in for best supporting actor at tomorrow night's Oscars.
But as CNN's Kareen Wynter explains, maybe he's not the lot (ph) people think he is.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP, "THE DARK KNIGHT")
HEATH LEDGER, ACTOR: This town deserves a better class of criminal.
(END VIDEO CLIP)
KAREEN WYNTER, CNN CORRESPONDENT (voice-over): Heath Ledger's first- class performance in "The Dark Knight" earned the late actor a posthumous Golden Globe, Screen Actors Guild Award, and other film honors. Now he's the clear favorite to take the biggest prize of all -- the Oscar.
UNIDENTIFIED MALE: Everybody in the Kodak Theatre will be astonished if he doesn't win.
WYNTER: If he does indeed win, it will prove an exception to the rule -- deceased nominees rarely win the coveted statue. Of the roughly 70 posthumous nominees, few have won. In fact, even some of the biggest stars in Hollywood history have come up short.
(BEGIN VIDEO CLIP, "EAST OF EDEN")
JAMES DEAN, ACTOR: I tried to help you.
(END VIDEO CLIP)
WYNTER: After famously dying in a car crash, James Dean failed to win in 1956 for "East of Eden." And in 1957 for "Giant." STEVE POND, OSCAR HISTORIAN: I think it is tempting to think, oh, of course he's going to win. He was a beloved figure. He died. Now the emotion of, this is going to sweep him in. And generally, it doesn't happen.
I mean, the prime example, when Spencer Tracy was nominated for "Guess Who's Coming to Dinner." And everyone was convinced that Spencer Tracy was going to win best actor that year. And in fact, he didn't.
(BEGIN VIDEO CLIP, "NETWORK")
PETER FINCH, ACTOR: I'm mad as hell and I'm not going to take it anymore!
(END VIDEO CLIP)
WYNTER: Peter Finch is the only actor to win a posthumous Academy Award in 1977 for "Network."
POND: Sentiment will only get you so far at the Oscars. I mean, curiously, often as not, people don't vote with their hearts as much as you would expect them to. They vote more with their heads. So, you know, they may get nominations, but that doesn't automatically mean that if you're deceased and you have a nomination, that doesn't necessarily make it any easier to win the award.
WYNTER: Which means Ledger could be poised for his biggest night of all.
LEDGER: And here we go.
WYNTER: Kareen Wynter, CNN, Hollywood.
(END VIDEOTAPE)
HOLMES: Well, there are some other nominees who died in the past here, including Sydney Pollack and Anthony Minghella. They both had a hand in producing the best picture nominee "The Reader."
NGUYEN: Hit the red carpet with CNN tomorrow night, with all your Oscar coverage, starting at 7:00 Eastern. After the awards, turn to Headline News for all the surprises, all the controversies, and of course all the outfits.
A special edition of "SHOWBIZ TONIGHT" starts at 11:00 Eastern tomorrow night.
HOLMES: Well, as we certainly remember, it's always tight when you're a college student.
NGUYEN: Oh yes.
HOLMES: But can you imagine being a college student right about now? Students being squeezed by the financial aid that's tightening up. Bleak job prospects out there as well.
NGUYEN: Right.
HOLMES: You're going to hear fears first hand from some students.
NGUYEN: In the meantime, though, the show must go on, even when the recession threatens vital funding for the arts. We'll celebrate 50 years of the Alvin Ailey Dance Theater.
(COMMERCIAL BREAK)
NGUYEN: Well, as they say, this is the end of the road for some popular American cars.
HOLMES: Well, General Motors, Chrysler, they're trying to stay afloat. And to do that, they are downsizing and ditching some of your favorite models, Betty.
CNN's Jim Acosta shows us which ones we won't be seeing on the production line anymore.
(BEGIN VIDEOTAPE)
JIM ACOSTA, CNN CORRESPONDENT: Betty and T.J., once upon a time, Americans bought American cars not to be patriotic, but because they were the best. Take Pontiac, the Trans Am, the GTO, the Firebird. They had muscle and came from a brand that once stirred the passions of car buyers, but now needs a bailout to stay alive.
(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' 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 (on camera): A V8 is a V8?
MATT HOLTZMAN, FLEMINGS ULTIMATE GARAGE: Yes. Sounds different. Feels different. Brings back memories of when I was a heck of a lot younger.
ACOSTA (voice-over): 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): This '79 Trans Am Bandit is one of its showroom showpieces. 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 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.
RICHARD WAGONER, GM CEO: 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 per gallon on the highway. That's change GM hopes the Obama administration can believe in -- Betty and T.J.
(END VIDEOTAPE)
NGUYEN: Yes, but does it have T-tops? That's the question.
HOLMES: You're pretty excited. You were a little geeked (ph) up when you heard T-top.
NGUYEN: Well, I used to have a cousin -- well, I still have a cousin, but he used to have a Trans Am with T-tops, and I thought it was the coolest car out there.
HOLMES: And you're excited about it.
NGUYEN: Along with the Mustang.
HOLMES: OK. Well, I hope they bring it back. We've got at least one customer for you, General Motors.
NGUYEN: Got to have the T-tops though.
HOLMES: All right. Stay with us. The next hour of CNN NEWSROOM starts right now.
NGUYEN: You are in the CNN NEWSROOM. The news is unfolding live on this Saturday, the 21st day of February.
Hello, everybody. I'm Betty Nguyen.
HOLMES: And I'm T.J. Holmes.
A developing story we have been watching this morning, police close to making an arrest in the case of Chandra Levy.
NGUYEN: Also, a geography professor and his students are trying to corner bin Laden. We're going to tell you how.
HOLMES: Also, the economy is suffering, but some say so are the sex lives of many of us.
You are in the CNN NEWSROOM.
NGUYEN: All right, moving right along, folks, to this...
HOLMES: Please, quickly.
NGUYEN: ... the top story of the morning, fixing the economy. In fact, it's probably the top story of the year.
It's not easy to fix the economy, especially with stocks tanking, banks on the brink of unemployment and -- banks on the brink and unemployment rising. President Barack Obama took steps though this week directing stimulus money to the states and giving hope to struggling homeowners.
CNN's Kate Bolduan is at the White House.
All right, Kate. So what is next? What kind of relief can we see?
BOLDUAN: We hope we see relief and see it soon, Betty.
Obviously, the president is continuing to tackle the economy. That really is what's next.
President Obama, this morning, during his weekly address, saying that after signing the recovery act this week, help is on the way. Mr. Obama saying that Americans can expect to see benefits, to start benefiting from at least part of the $787 billion stimulus package as early as April 1st.
Listen here.
(BEGIN VIDEO CLIP)
OBAMA: I'm pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks. Meaning that by April 1st, a typical family will begin taking home at least $65 more every month.
(END VIDEO CLIP)
BOLDUAN: Now, during that address, Mr. Obama promoting the housing bill -- $75 billion housing plan, rather, in order to attack the foreclosure crisis that he says is another step in trying to get this economy back on track. As we have been talking about this morning, a very big week ahead for the president.
Monday, he'll be meeting with Democrat and Republican governors from across the country.
