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Borrowing Money From China; U.S. Government Looking Into CitiGroup; Reexamining the Chandra Levy Case

Aired February 23, 2009 - 09:00   ET

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

T.J. HOLMES, CNN ANCHOR: Well, you've got your mind on your money and your money is on the mind of the president. First up today. Talking about spending that stimulus. Later on, going to get a grip on this deficit.

Also, of course, we're talking about the economy but, hey, we actually got some good news to tell you. We'll tell you where they're actually hiring thousands of folks.

Also, it's a little movie that could and it did. "Slumdog Millionaire" striking gold out in Tinseltown.

It's Monday, February 23rd. I am T.J. Holmes sitting in today for Heidi Collins. And you are in the CNN NEWSROOM.

Well, it's red ink and some pretty dark predictions. The economy, once again, keeping the president and a lot of folks up at night right about now. Today the president focusing on a monstrous federal deficit and bailout, the stimulus the package have pushed the amount past a trillion dollars.

That has created intense concern among advisers and adversaries alike. We'll have more on them in just a sec, but first, a look at what the president's up to today. First item, his economic daily briefing. The next hour he'll be speaking to the National Governors Association about the stimulus bill. Those governors have been in Washington over the weekend for their convention.

Then the Fiscal Responsibility Summit, as it's being billed, is the focus on the deficit.

So let's get a big picture here. CNN's Suzanne Malveaux is at the White House.

A Fiscal Responsibility Summit. Sounds great but will we get anything out of it but a good sound bite or two?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, T.J., obviously, they've invited a lot of folks to come here to the White House to participate in this. They're going to break up in group sessions and do at lot of talking about fiscal responsibility.

We'll see what actually comes of it. But one of the things that's important to note is that you look at these rescue plans, these packages. The first one was $700 billion, the second one $787 billion. This is all borrowed money. This is borrowed money. And it is mostly coming from the Chinese.

Secretary Clinton just wrapped up her Asia tour. She met with the Chinese. And so I put the question to the director of OMB, the Office of Management and Budget, Peter Orszag, and asked him directly whether or not this really creates a problem for the United States.

(BEGIN VIDEO CLIP)

MALVEAUX: How is it fiscally responsible on our part to keep borrowing from the Chinese to support our own economy?

PETER ORSZAG, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET: Well, the issue is we really have this -- a pair of trillion dollar deficits. We've got this deficit, trillion dollars between how much the economy could produce and how much it is producing. That's what we're trying to do with the recovery act and it requires some borrowing from abroad to finance, it's true.

We also faced a trillion dollar budget deficit. And as we go out over time we need to get that number down. That would reduce the borrowing from foreign creditors, including China.

MALVEAUX: What happens if the Chinese decide we just -- we're not going to lend them any more money?

ORSZAG: Well, I don't think anyone really sees that happening right now or for the foreseeable future. One of the reasons we want to get the deficits down over time is to make sure we're not exposed to that kind of risk.

(END VIDEO CLIP)

MALVEAUX: So, T.J., that really is the big question. A lot of people asking that question. The president is going to be meeting with governors first in the morning. He's noticed a split within the Republican governors over the weekend. You had Governor Schwarzenegger of California saying he was all about the economic stimulus package. It was a good idea.

But on the other hand, you had the Louisiana governor, Bobby Jindal, saying that he wasn't going to accept some of these federal dollars because he was fundamentally against it, that he didn't believe it was really the right formula.

So these are just some of the things that the president is going to have to deal with, as well as this question about fiscal responsibility, how the federal government needs to be responsible as well. T.J.?

HOLMES: And can you tell us here, quickly, who are these folks? Who got invited, I guess, to be a part of this Fiscal Responsibility Summit?

MALVEAUX: Well, it's 130 people. But -- so you're talking about lawmakers, you're talking about union members, they're scholars, just this kind of a cross-section of a lot of people who are essentially going to be meeting with the president, going to break up in these smaller groups and discuss it. Some of them, they -- the president is saying, are kind of independent economists, independent-minded.

So those are the people that are going to be, at least, starting this conversation, T.J. We'll see what happens later in the morning.

HOLMES: Yes. They'll start it. We'll see who finishes this thing.

Suzanne Malveaux, for us from the White House. Always good to see you. Thank you so much.

And we have some new numbers to show you here. CNN Opinion Research Corporation Poll helping us explain how people are feeling right about now. More than a thousand people were asked how things are going in the country. Twenty-one percent said, well; 79 percent said, badly.

But, on the other hand, check these numbers out. When asked how things were going specifically for them, personally, the numbers pretty much flip-flops. Seventy-seven percent said it's going well for them personally; 22 percent said badly for them.

And you can stay with CNN and the best political team on television as President Obama talks about the state of the economy. Anderson Cooper has our post-game coverage, if you will, followed by a special edition of "LARRY KING LIVE."

Also watch along with your Facebook friends at CNN.com. That will be live. This all happens tomorrow night beginning at 9:00 Eastern on CNN and CNN.com.

Well, the stimulus package is going to be the topic next hour, as you just heard Suzanne mentioned, when the president addresses a gathering of the nation's governors. One emerging battle line she mentioned as well. GOP governors. Some of them at least say they may reject some portions of that money that's earmarked for that state because there are too many strings attached.

Several governors joined us yesterday on CNN's "STATE OF THE UNION WITH JOHN KING."

Take a listen.

(BEGIN VIDEO CLIP)

GOV. HALEY BARBOUR (R), MISSISSIPPI: If we were to take the unemployment insurance reform package that they have, it would cause us to raise taxes on employment when the money runs out and the money will run out in a couple of years and then we'll have to raise the unemployment insurance tax which is literally attached unemployment.

I mean, we want more jobs. You don't get more jobs by putting an extra tax on creating jobs.

GOV. DEVAL PATRICK (D), MASSACHUSETTS: I respectfully disagree. Before we went on camera, we were talking about you getting out and the show getting out, talking to people, learning from people outside of Washington. Frankly, outside of government. And everywhere across the country.

Certainly in Massachusetts and I'll bet it's true in Mississippi, people want their roads, they want their bridges repaired, they want a clean energy strategy and alternatives and real alternatives, and they want us to be candid with them about those needs. So whether the governors say they will or won't take this or that, a part of the stimulus bill, in some ways, is irrelevant. People want that help.

Now I think that the point that the governor has made about what happens after the stimulus bill runs out is an important one. For all of us and how we plan for that and how we are prudent about that is a challenge and in states led by Democrats just as in states led by Republicans.

JOHN KING, HOST, "STATE OF THE UNION WITH JOHN KING": The Obama administration says with this new national stimulus plan, you will get a lot of money in California. It believes this plan will create 400,000 jobs in the state of California. We try to ask everybody in a position of power to be accountable.

Do you believe that number? Is 400,000 the right barometer to see if this plan is a success in California?

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Well, you know, you never know exactly. I mean you can only estimate. Like, for instance, with infrastructure, we know that every billion dollars that you spend on building roads or classrooms or any kind of infrastructure it creates 18,000 to 25,000 new jobs.

So I think it could create this kind of amount of jobs. And we welcome this economic stimulus package. I think it's terrific. It will help us.

(END VIDEO CLIP)

HOLMES: And we're talking about just a handful of GOP governors here, governors in Louisiana, South Carolina, Idaho, Alaska, just to name a few. But again, just a few governors, all GOP, saying they're going to skip a portion of this money at least.

Now the president is going to be talking to all these governors next hour at the White House. We'll bring you those remarks live. Expecting them somewhere around 10:15 Eastern Time.

Meanwhile, American taxpayers may soon be owning a larger chunk of Citigroup. Yes, the government has already invested about $45 billion from the bank bailout funds and according to "The Wall Street Journal" now, the taxpayers could buy as much as 40 percent, a 40 percent stake in the troubled banking giant.

Last week markets sank on fears that the U.S. government could be forced to nationalize a lot of large banks in order to stabilize the financial system. Investors seem -- seemed -- relieved that the future of Citigroup could be a bit more secure. Markets climbed across much of Asia. Hong Kong and South Korea's benchmarks up more than 3 percent. Stocks also gained a bit of ground in Europe. Markets in London, Paris and Frankfurt have all been up more than 1 percent this morning.

So let's take a closer look at what's happening with Citigroup and the reports that the government may soon be buying a bigger share of the bank.

CNN's business correspondent Stephanie Elam joins us now.

Stephanie, good morning to you. A lot of people waking up hearing this. Here we go again. We're going to be -- it sounds like at least -- giving another bank more taxpayer money. So if a taxpayer hears this, what should they be thinking? What's in it for them? Why is this a good thing if it does, in fact, happens?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Well, T.J., good morning to you, too. But first, I need to clarify one little thing. Now you remember back last fall we heard that Citigroup got $45 billion in that bailout money that we heard went to some of these larger institutions? Well, the money that was included in that, that's going to cover what would be included in this larger share. Taxpayers will not be paying more for this stake.

What's going to happen is we're going to take these preferred shares that the government got as part of that money and convert it into common shares. That's the shares that you may have it in your 401(k), you may have in different -- you maybe you own outright but most people have it, perhaps, in their 401(k).

So it's not more money going out there. It's just more -- basically reallocating it. But it dilutes how the shares are actually out there for everyone. So that's one thing to keep in mind.

Overall, you know, on Friday, we took a look at Citigroup stock. It was off 22 percent on Friday because of the fact that the nationalization fears were coming up for this bank. That is a huge drop. The stock dropping below $2 for the first time since 1991. That's a huge drop for a stock, let's say, in 2007 was trading around $50. Just to give you an idea of how huge this is. But today, stocks rebounding on the idea here that the government is going to step in, not letting the bank fail.

The Obama administration also saying, T.J., that they would like to see these banks stay in the private sector and not being nationalized.

HOLMES: That's what they say. But a lot of people are getting more and more the impression that, in fact, the government is moving to take over more and more of these banks.

ELAM: It's either that or let them fail. And that -- I think a lot of people would rather look at the two evils maybe and see that letting them fail would be a bad thing. HOLMES: Will be a bad thing. So we'll take the lesser.

All right. Let's move on here. Some good news. I mean, something at least. It sounds good. At least we see maybe an end is near, some pretty good minds coming together and saying there may be a bottom and there may be an -- the upside may be coming?

ELAM: That's what you got to look at here. And that's the take- away, at least, the way I see it, T.J.. If you take a look at the National Association of Business Economics, they surveyed 47 economists. Get their ideas on what's going to happen here with the economy.

Looks like we'll see some weakening, some contraction in the first quarter, same thing with the second quarter, but they're saying in the second half, we'll may see a bit of an uptick. And that's key because they're saying 2010 will have solid growth.

So I know it sounds like a long time away but that's next year so there's an end in sight, keep hope there, to help people realize that, you know, we will get on the other side of this. Americans always have, we'll do it again.

HOLMES: All right. I thought you were about to say keep hope alive.

ELAM: I stopped my self.

HOLMES: You know?

ELAM: I stopped my self. I caught my self.

HOLMES: It would have appropriate. It would have been just fine. We understand.

(LAUGHTER)

HOLMES: Stephanie, always good to see you. Thank you so much.

Citigroup report not receiving so well on the bonds market. For more on the fallout there and all sorts related to your wallet, you can go to Money.CNN.com.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Fighting, (INAUDIBLE), pregnant people out there. One lady just had a C-section. Bleeding.

UNIDENTIFIED FEMALE: This is the most savage thing that I have ever seen in my whole entire life for assistance. I need a bailout, OK?

(END VIDEO CLIP)

HOLMES: Wow. Another sign of the times here. This is happening in South Florida. About 5,000 people lined up overnight. They were there to get on a waiting list for housing assistance.

Police say the crowds got a bit out of control. There was a lot of pushing and shoving to get ahead in those lines. Reason being there were about 5,000 people out there but there were only enough of those applications for about half the people who showed up.

Well, another town's health department, victim of the struggling economy. Officials in Amesbury, Massachusetts decided to eliminate their Health Department, eliminated, because of an $800,000 budget gap. Spokeswoman for the state's Association of Health Boards has questioned that move. She says it may not be cost-effective in the long run and she worries the change will harm the town's residents.

Well, the, Vatican appointed its success for what many consider the most prominent post in the American Catholic Church. Milwaukee archbishop, Timothy Dolan, will take over after the New York diocese after Cardinal Edward Egan steps down. The New York's archdiocese, the second largest in the country, behind Los Angeles, serves about 2.5 million parishioners in nearly 400 churches.

Well, listen to this, folks. Can you imagine? Your boss lays you off. Then your boss has the audacity to call, after he lays you off, and says you owe the company money. Would you give that back? I probably know the answer. Stay with us.

(COMMERCIAL BREAK)

HOLMES: Millions of you watched the CNN documentary that provoked dialogue across this country and you can see it again this Wednesday and Thursday at 8:00 Eastern. Join Soledad O'Brien for an encore presentation of "Black in America."

(COMMERCIAL BREAK)

HOLMES: Now, Microsoft, good luck with this one. They're adding insult to injury to some of the workers it laid off. The software company says it overpaid severance to 1,400 laid-off employees. Now they're sending out a letter asking them to give the money back.

Not clear just how much we're talking about here. Don't know have an exact figure. Also don't know exactly what will happen if those ex-employees refuse to repay that money. Again, good luck.

And this coming to us from one of our iReporters in the windy city, braving the nasty weather to send this to us. Thomas Nava shows us strong winds blowing snow all around in Chicago streets. Where is the shovels? No shovels in here yet? This is Chicago. They know how this goes.

Residents need to keep those shovels in handy, however, because we could be seeing more of this on their way in the next week.

(WEATHER REPORT)

HOLMES: Well, he endured months of unwanted notoriety years ago after the death of intern Chandra Levy. Now there's a major break in the case. So what does it mean for former congressman Gary Condit?

(COMMERCIAL BREAK)

HOLMES: And take a look at these pictures we have. This is a Spanish fishing crawler. That's in the north Atlantic. It caught fire yesterday and got in a bit of a situation, as you can see here. A Canadian Coast Guard ship was in the right place at the right time, however. The Coast Guard was in the area on a routine fisheries patrol and it received a distress call from that crawler. Ten minutes later the Coast Guard arrived on the scene. Some fishermen were jumping into the water without life jackets. And the coast guard picked up all 22 crew members. None of them suffered life-threatening injuries.

Possible resolution in the murder of government intern Chandra Levy. After eight years Levy's family now saying the police are planning on an arrest soon. Levy's remains were found in Rock Creek Park in Washington in 2002. That was a year after she disappeared. A source now saying the suspect is already serving time for assault in that same park.

Levy's parents say the news gives them some comfort.

(BEGIN VIDEO CLIP)

SUSAN LEVY, CHANDRA LEVY'S MOTHER: We got the attention that it may lead to an arrest and conviction.

UNIDENTIFIED MALE: And keep the guy off the street.

LEVY: But it's a painful day for us.

UNIDENTIFIED MALE: Yes, too painful.

(END VIDEO CLIP)

HOLMES: And our Susan Candiotti now looking back at the case and the victim's connection to former congressman Gary Condit.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (on camera): Most Americans had no idea who Congressman Gary Condit was before Washington intern Chandra Levy disappeared. That quickly changed.

(voice-over): Gary Condit became a household name as whispers grew louder and louder that Miss Levy herself talked about having an affair with a married politician from her home district. And for weeks after Levy vanished, news cameras followed his Condit's comings and goings.

A question kept coming -- was the congressman holding back? Police never called him a suspect but seemed to leave themselves an opening.

UNIDENTIFIED MALE: We have nothing at this time to connect him with the disappearance of Chandra Levy.

CANDIOTTI: At first, the congressman side-stepped personal questions about the case.

LARRY KING, CNN ANCHOR: Did you have a relationship with Chandra Levy?

REP. GARY CONDIT (D), CALIFORNIA: You know, we're not going to go into that. I had nothing to do with her disappearance. But all this attention on me -- and it takes away from the seriousness, just the seriousness of this tragedy. It's about a missing person and somebody knows. And somebody knows what happened.

CANDIOTTI: Condit eventually admitted to an affair and the notoriety sank his political career. He lost in a Democratic primary.

CONDIT: I want to thank the voters of the 18th congressional district for allowing me to serve in Congress for 11 years and it will be 12 years when I finish.

CANDIOTTI: Police had also questioned Ingmar Guandique who was already charged for attacking two other women in the same park not long after Levy vanished, but was never charged in her case.

Nearly eight years later, a source tells CNN Guandique is the key suspect. Some now question whether the early focus on Condit let the trail run cold.

UNIDENTIFIED MALE: It wasn't proper, it wasn't fair, but that's what happened, and it does happen in a case. And it happened really big time in this one.

CANDIOTTI (on camera): In a statement, the former congressman described, quote, "An insatiable appetite for some sensationalism," blocking what he called a search for real answers. Now Condit says he plans to tell his side of the story.

(END VIDEOTAPE)

HOLMES: Three Atlanta police officers set to learn their fate for the shooting death of a 92-year-old woman. Sentencing begins today. You see a picture of the victim there. The men, they pleaded guilty to charges related to a botched 2006 drug raid. They used a no-knock warrant to bust into the home of Katherine Johnson. They then claimed that she shot at them that they had to shoot her down in self-defense. But then it turns out there was some planted evidence in this case and the warrant was based on bad information. So, again, we're expecting to learn their fate at some point today.

Well, it seems like every day we keep bringing you stories here on CNN. You read them everywhere about another company that's cutting jobs. Thousands and thousands of jobs. Coming up next, we're going to tell you about a company that is actually hiring thousands. Stay here.

(COMMERCIAL BREAK) HOLMES: All right. Here we go. Wall Street. The Dow Industrials beginning the week at six-year lows.

But Susan Lisovicz, there is reason for some optimism this week. I know you got to talk to us a little bit about what happened last week but, still, we could be in for a nice little rally this week.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, T.J. And one of the reasons why is that when you hit fresh six-year lows, that some bargain hunters might come in. They might, but there's also news.

Remember, last week, was a weekend in which $700 billion in market value was completely wiped out. Big concern? The future. The solvency of some of the nation's biggest banks. Well, this week, we may just get some answers.

"The Wall Street Journal" had been reporting this all morning says Citigroup is in talks with federal regulators about a plan for the government to boost its stake in the bank up to 40 percent. Citi looking for ways to stem these massive losses. On Friday, the bank stock tumbled 22 percent closing below $2 a share. Today, talk of a government deal reduces the likelihood of a bankruptcy filing. That was a big fear. Reports also don't point to a full-out government takeover. That was another fear. So Citigroup shares up 20 percent in the first few seconds of trading.

Few businesses spared from the recession. Search giant Yahoo! reportedly plans to announce a management restructuring this week and Philadelphia newspapers, which owns the "Philly Inquirer" and "Daily News" has filed through bankruptcy protection but plans to continue normal operations. Advertising, the advertising for newspapers have just been eviscerated.

Checking the early numbers. Well, we have a bit of a bounce- back. The Dow industrials up 57 points, below 7500, about one percent higher. The Nasdaq and the S&P 500 each up about 50 percent. So good start to the trading week, T.J.

HOLMES: Yes, now that we're 90 seconds into it. We'll take it, though.

LISOVICZ: Yes. We're going to look at the glass as half full.

HOLMES: All right, Susan.

LISOVICZ: That's what we're going to be doing.

HOLMES: We appreciate that from you. We'll be checking in, again, of course throughout the day. Susan, thank you so much.

Well, President Obama starting the week with a bit of reality check over the country's economy. After committing to so much spending, he is now wanting to cut things. Cut the deficit in particular. Today, he'll take ideas from just about anywhere he can get them, having a financial responsibility summit. There's going to be Republicans there. There's going to be Democrats there. They're going to be at the White House. A lot of experts there as well. About 130 folks coming together for this responsibility -- Fiscal Responsibility Summit as it's being billed. Before he gets to all of that, the president getting his usual briefing this morning that includes up-to-date information on all things related to this economy.

Also in about 45 minutes, he'll be talking to the nation's Association of Governors. That will give him a chance to hear about the needs of those particular states and that the money is going to be coming to them. They are trying to figure out exactly how they're going to be using it. And also this afternoon, he opens that financial summit at the White House as I just mentioned.

Well, the states we're talking about here now. Can you imagine living in one of these states? Maybe Louisiana or South Carolina where your state is hurting, your family is hurting, your community is hurting. The stimulus bill passes hundreds of millions are coming to your state according to the law now, but some of your governors are saying they're not going to take the money. How would you react? Are they playing politics at the expense of their constituents? CNN's Jim Acosta takes a look.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: The last thing I want to do is hold up the food.

JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT (voice-over): The highlight of the winter meeting of the National Governors Association, dinner at the White House. But some governors sound like they bellied up to the stimulus buffet, turning up their noses at parts of the plan they don't like, as if the package is government a la carte.

GOV. BOBBY JINDAL (R), LOUISIANA: We're going to look at every provision, see what's good for the state, see what's not, see what strings are attached. But the reality is the bigger philosophical point is this, I just have a fundamental disagreement with this package.

ACOSTA: Six Republican governors are hinting they may reject parts of the stimulus worth billions of dollars. Three of whom hail from the poorest states in the nation.

UNIDENTIFIED MALE: Sounds like the Soviet Grant of Stalin's time.

GOV. HALEY BARBOUR (R), MISSISSIPPI: There are some we won't take in Mississippi.

ACOSTA: Mississippi's Haley Barbour says the plans money for the unemployed could lead to a tax increase on some businesses.

BARBOUR: I mean, we want more jobs. You don't get more jobs by putting an extra tax on creating jobs.

GOV. CHARLIE CRIST (R), FLORIDA: It's not a matter of bucking the party, it's a matter of helping the people.

ACOSTA: Other Republican governors say this is no time for getting picky.

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: If you have a team where half of it splits off, if it's a basketball team or a football team, you would never win a game.

ACOSTA: Some state leaders talk as if there may be leftovers.

GOV. JENNIFER GRANHOLM (D), MICHIGAN: The governors who are trying to decide whether they're going to accept the stimulus money or not, we'll take it. We'll take your money. South Carolina, I'll take your money. Louisiana, we'll take it.

ACOSTA: New Orleans Democratic Mayor Ray Nagin accused his Republican Governor Bobby Jindal of political posturing.

JINDAL: We are still a center-right country.

ACOSTA: Hailed as the future of the GOP in 2012, Jindal spoke to a Christian conservative group in Iowa after the November election.

MAYOR RAY NAGIN (D), NEW ORLEANS: And I told the governor personally, any dollars he does not want, we will take them gladly.

ACOSTA (on camera): No governor has said he or she will flat out reject all of the stimulus money, precisely because doing so creates a major political problem. If the stimulus works, any opposing governor could be out of a job. Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HOLMES: You can stay with us and the Best Political Team on Television as President Obama talks about his state of the economy. Anderson Cooper has our post-game after the president's speech followed by a special edition of "LARRY KING LIVE." You can also watch along with your Facebook friends at cnn.com. This all happens tomorrow night, starting at 9:00 Eastern on CNN, as well as cnn.com.

Well, a lot of the nation's newspapers getting hit and getting hit hard by a perfect storm of falling ad revenue and circulation, as well as rising debt. Here are some of the latest casualties. Philadelphia's two major "Daily News" papers are the latest to file for Chapter 11 Bankruptcy. The "Inquirer" and the "Daily News" will continue publishing. So they will keep putting a paper out, but the paper's company attempts to restructure debts that equal about $390 million.

The Philadelphia filing comes a day after the journal register company sought bankruptcy protection. The company owns 20 daily newspapers, including "The New Haven Register."

(BEGIN VIDEO CLIP)

RICH HANLEY, QUINNIPIAC UNIVERSITY: The only thing I can see in any sort of future for this company, you know, is a sale of some of its more attractive and appealing properties because it can't possibly climb out of this hole, given the present economic dislocation under way. There's no chance even if the economy gets better really quickly that this debt can be serviced, given the fact that advertisers have already fled this medium. We are now in a post-print age.

(END VIDEO CLIP)

HOLMES: Journal register has not traded as high at $23.87 a decade ago and now trades for less than half a penny per share.

And while there's a lot of news out there, that may be grim when it comes to companies concerning cutting budgets and layoffs, there are actually still some places that are hiring and hiring a lot of folks. Our Josh Levs tells us about a company that is looking for thousands.

JOSH LEVS, CNN CORRESPONDENT: In this economy, we picked up on this story. Another year, we might miss it but here, take a look. It's interesting. This comes to us out of news -- our affiliate up in New Jersey. News 12 in Jersey. And they are reporting that six flags is hiring 4,100 people. That's the same number they would hire any other year. They're not cutting back. And those kinds of seasonal jobs can really help people and maybe they will even have some fun with it.

I'm going to give you sound off from two people who are among the big crowd that turned out to get these jobs. One is a woman who recently lost her job at a car dealership. The other is a 14-year-old who wants to help out her family.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I figure I'd use the opportunity to do something that I've always wanted to do, and that's work with the animals and work with people.

UNIDENTIFIED FEMALE: Sometimes I can't go places because like there's -- like I can't pay to get in, but -- because you don't have cash right now. But I'll have my own cash.

(END VIDEO CLIP)

LEVS: So, see? It's got a bit of a positive spin to it and that leads us into something here that we want to tell you about. We are inviting you to tell you what are the great news stories that are going on?

You know, we hear a lot about the negatives, about what's so difficult. We'll show you the graphic here. How you can weigh in. It's at my Facebook page, joshlevs/cnn. And throughout this week, we're inviting you to tell us what are some of the great things going on in the world. Not in a cheesy kind of way, but a reality check way.

What are the great things that we're not paying enough attention to? I'll quickly give you a couple of examples.

Take a look at here what some people have been writing here on Facebook. This one comes to us from Jeff, "The advances on treating inoperable brain tumors."

Over hear we heard from Kelly, "So many people are using the situation to change careers and do something they've always wanted to do."

Now tell us one more -- actually, right here from Elaine, which is "There will be a baby boom because no one can afford to go out. If you're looking for a new home, there are plenty to choose from." And my favorite point she's making there, "Vegas is cheap."

What do you think are some of the great things going on that maybe aren't getting enough attention? Well, go send it, joshlevs/cnn, and we'll continue to bring some to you right here.

HOLMES: Severe weather graphic means this is probably a serious situation?

ROB MARCIANO, AMS METEOROLOGIST: And the music. Not necessarily.

(CROSSTALK)

MARCIANO: Some serious.

(CROSSTALK)

(LAUGHTER)

HOLMES: Let's go, some California love?

(WEATHER REPORT)

HOLMES: That sounds fantastic, given what we are going through in Atlanta right here.

And we're about to tell some Oscars here, Rob. How many of the Oscar-nominated films did you see?

MARCIANO: Stop asking me this! Sadly, I haven't seen any. Sadly. "Stepbrothers" would be my vote for the best picture.

HOLMES: All right.

MARCIANO: Are they not up for it?

HOLMES: No, they weren't. For the rest of you, it was a big night for big winners. Take a quick look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And the Oscar goes to "Slumdog Millionaire."

(END VIDEO CLIP)

HOLMES: "Slumdog Millionaire" is going to be next on my list right after I see "Friday the 13th." But it hit big last night. We'll tell you who else walked away with the big winners at the Oscars.

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HOLMES: Well, Pakistan getting more help from the U.S. than either country was acknowledged publicly at least in the fight against al Qaeda and the Taliban. "New York Times" now saying the U.S. had about 70 advisers in the country. That's about 40 more than the Pakistan army admitted to along that border. Americans are reportedly helping with training, but staying out of the fighting.

Big gamble for Pakistan. Heavy control of the Swat Valley to the Taliban. The goal here is to end the violence, but it could open a door that Pakistan cannot close.

CNN's Stan Grant in Islamabad for us.

Stan, there are a lot of skeptics out there on this deal. Can it work?

STAN GRANT, CNN UNITED ARAB EMIRATES CORRESPONDENT: T.J., there are indeed a lot of skeptics on this deal. History is against it working. The international community is condemning it but there are many people who are saying this is the last shot at peace that's being watched very closely, especially by those who have been forced to flee the violence.

(BEGIN VIDEOTAPE)

GRANT: The first glimmers of peace in Pakistan's Swat valley as refugees dreaming of returning home. "I want to go to my village if the war is finished there" says Amjab Ali (ph). Amjab lives with his family in a camp about two hours' drive from Swat's main town in Gora. They fled the months of fighting between Pakistan's military and the Taliban. Now, they are watching the tentative cease-fire with hope teams with harsh reality.

"We would love to go to our place, but we have the fear inside our heart" says Amjab's father Uma. We are afraid of our children's and our lives. It is the families like this the Pakistan government says it had to cut a deal with the militants. The Taliban had launched a campaign of terror, beheadings, kidnapping, schools burned to the ground. Taliban leaders are claiming victory with the government agreeing to the militant's demand for the imposition of Islamic or Sharia lords Swat. Something even many locals say they want.

Former Pakistan cricket hero turned politician Imran Khan says the government had run out of options.

IMRAN KHAN, POLITICIAN, FMR. CRICKET STAR: There is no police left in the Swat valley, there are no courts functioning, there are 400,000 refugees from the area. There doesn't seem to be any end to this conflict. So in the end, they had to accept this deal.

GRANT: The United States has led a chorus of international criticism of the deal, some accusing Pakistan of capitulating to the violence. But others like defense analyst Ayesha Siddica says the aim here is to use dialogue where force has failed. Success in what she says could even win over the U.S.

AYESHA SIDDICA, AUTHOR, "MILITARY INC.": Publicly, they will criticize the peace deal with the Taliban, but I think really they would be quite accepting of it, as long as conflict goes down.

GRANT: But similar deals with the Taliban and Swat in the past have failed. Doubts remain whether this cease-fire will hold. Pakistan's military pledging to give peace every chance but not taking the use of force off the table.

MAJ. GEN. ATHAR ABBAS, PAKISTAN PUBLIC RELATIONS: The military is not being pulled out of the valley. It is still there. The option would remain available to the government.

GRANT: Pakistan's government concedes force alone will not defeat the militants. Some analysts say the hope is the Swat deal will helps the hard line Taliban there away from supporting other militants in Afghanistan.

(END VIDEOTAPE)

GRANT: Swat will be front and center when Pakistan's foreign minister travels to Washington this week. He has a lot of convincing to do but with the United States looking for new solutions to all problems like Afghanistan, it may just be in a mood to listen.

T.J.?

HOLMES: All right. Stan Grant for us in Islamabad. Stan, we appreciate you.

Well, the recession making it tough for students all over the place. Students in colleges all over this country, but also and especially students and staff at the nation's historically black colleges. And the fallout could force historical changes.

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LEMON: And just to further make the point you just heard about "BLACK IN AMERICA," it's certainly that documentary, a lot of people were buzzing about when we aired this last year. You can get the conversation going again. We will be airing it again this Wednesday and Thursday 8:00 Eastern. You can join Soledad O'Brien for an encore presentation of "BLACK IN AMERICA."

Well, there could be some historical changes on the way for this country's historically black colleges. Of course, a lot of students at black colleges depend. There's a very crucial financial aid a lot of them get and a lot of that is drying up right now. CNN's Sandra Endo explains what this now means for the future. (BEGIN VIDEOTAPE)

SANDRA ENDO, CNN NATIONAL CORRESPONDENT (voice-over): For sophomore Zakiya Williams at Spelman College, she found her perfect fit.

ZAKIYA WILLIAMS, SPELMAN COLLEGE: This place was meant for me.

ENDO: But when the tough economy hit her and her family hard, she packed her bags ready to drop out.

WILLIAMS: I wasn't able to get loans, neither were my parents, and it became really difficult because it seemed like all of my avenues were just totally exhausted.

ENDO: It's a familiar story at colleges across the country. But especially at historically black colleges and universities, where in some cases up to 95 percent of students rely on financial aid to fund their education.

BEVERLY TATUM, PRESIDENT, SPELMAN COLLEGE: Every college and university is asking the question what will our enrollment be next year. Not because of a change in the institution, but because families are really being hit by the economy every day.

ENDO: On top of shrinking enrollment rates, endowment funds have taken a hit in the stock market. In the Atlanta area alone, Morehouse College laid off 25 professors, Spelman is eliminating 35 jobs next year, and Clark Atlanta University's budget ax fell mid semester with 70 professors and 30 staff members let go.

CARLTON E. BROWN, PRESIDENT, CLARK ATLANTA UNIVERSITY: It has been very frustrating, very painful. We are such a good institution that there is no list of some of the faculty that does not cause pain. We've lost some very, very good people.

UNIDENTIFIED FEMALE: Now we had to like adjust to a new teacher. Some of our schedules got changed. And just things like that.

ENDO: Just in the middle of the semester?

UNIDENTIFIED FEMALE: In the middle of semester. Yes, it was crazy. It was pretty rough.

ENDO: And scholarship money is getting harder to come by. The United Negro College Fund which dulls out scholarships to lower income ethnic students is anticipating having less money to give.

MICHAEL LOMAX, CEO, UNITED NEGRO COLLEGE FUND: The trend is that we're running about between 15 percent and 20 percent below what we would've raised, what we projected to raise.

ENDO: To make ends meet, some historically black schools are considering merging with other colleges and places like South Carolina State University may try to boost enrollment by reaching out to students of all races. For Zakiya Williams, a scholarship came through at the last minute. And she says the struggle to stay at a historically black college was worth it.

WILLIAMS: I was completely relieved and now I'm focusing on my studies.

ENDO: Sandra Endo, CNN, Atlanta.

(END VIDEOTAPE)

HOLMES: Well, dad is working two jobs to feed a family of eight. Even with food stamps, they've run out of money. The one program helping them stretch that shrinking food dollar.

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HOLMES: All right. Some people watch to see the winners and the losers and all that. But a lot of people watch for this. They want to see the stars come out, what they're wearing. This was a bit of the flavor last night. You saw Brad and Angelina. You saw Kate Winslet. You saw Queen Latifah there. But everybody walking the red carpet and for the purposes of our director in the back, I told myself I was going to ad lib over this video until we got to Alicia Keys. And we can wrap it up now.

All right, the rags to riches tale, "Slumdog Millionaire" cleaned up winning a total of eight Oscars, including Best Picture last evening. Danny Boyle won for Best Director for that film as well, Sean Penn walked away with the Best Actor award for his performance as the late gay rights pioneer Harvey Milk in the movie "Milk." Also Kate Winslet finally took home the best actors prize for her performance as a former concentration camp guard in the movie "The Reader."

While they were celebrating in Tinseltown, they were also celebrating in India. Celebrating the success of "Slumdog Millionaire." People gather and cheered as the movie won award after award after award.

CNN's Malika Kapur has reaction from a slum in Mumbai where the movie was shot.

MALIKA KAPUR, CNN INTERNATIONAL CORRESPONDENT: T.J., let me take you away from the razzle and the dazzle, the glitz and glamour of Hollywood for a moment and take you to a part of Mumbai that was celebrated at the Oscar's ceremonies. Let's take you to Bandra now, a slum in north Mumbai.

(BEGIN VIDEOTAPE)

KAPUR (voice-over): There was cheering in Hollywood, lots in Mumbai, too. It's unbelievable, says this woman, who joined an impromptu Oscar viewing party around a small TV set in a slum in North Mumbai.

UNIDENTIFIED FEMALE (through translator): Our children have made India so proud, it's a dream. KAPUR: Two of the child actors in the film "Slumdog Millionaire" live in this slum. (INAUDIBLE) who plays Salin and nine-year-old Rubiana who plays young Latika. Both are living the dream in Hollywood. The film's producers flew them to Los Angeles to attend the Oscars.

I don't really know what the Oscars are, says Rubiana's mother, watching it on TV. I'm just glad my daughter looks happy, though she told me she misses Indian food. Across the vast and crowded slum, friends, family, neighbors of all kinds showed their pride and blasted music in the streets when the film bagged eight Academy awards.

It's runaway success, and all the media frenzy accompanying it are a welcome distraction from the drudgery of their daily lives. Poverty, no schools, open drain, garbage everywhere, a children lead a dog's life, says Rubiana's mother. I'm happy someone decided to make a movie on it. The rest of India and the world should know how we live.

(END VIDEOTAPE)

KAPUR: After a life-changing experience that took these children from the slum in Mumbai to the Oscars in Los Angeles, the children will be back here in just a day or two. Back to Mumbai, back to the slums, back to reality -- T.J.

HOLMES: All right. Black tie last night, all business today. This hour President Obama and the nation's governors talking about how to spend stimulus money.