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North Korean Missile Test; Obama's Address to Congress; World Markets Show Nervousness
Aired February 24, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLINS: Global quake. Investors worldwide shaken over the economy. This hour, Wall Street reacts to new reports and the fed chair faces Congress.
Also heading to Capitol Hill, the president. Tonight's address, one road map to the nation's recovery. We've got a look ahead.
And the recession holds students' dreams hostage.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: My parents and I and my sister were looking at financial issues, and it's just the tuition is going up. It's better for me to leave.
(END VIDEO CLIP)
HEIDI COLLINS, CNN ANCHOR: It's Tuesday, February 24th, I'm Heidi Collins, you are in the CNN NEWSROOM.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I would like for him to be able to tell us about, you know, job security. Health care is a big issue about health care. Me having two children, you know, I am concerned about health care.
UNIDENTIFIED MALE: I want to hear some really good ideas. I'm not really impressed with the stuff he has done so far. I haven't seen anything that really makes me feel like that he is on the road to helping unemployed people get jobs, companies to be more productive so they can hire unemployed people.
(END VIDEO CLIP)
COLLINS: Looking for answers. Those are just some of the suggestions for President Barack Obama. He's talking about the economy during an address to Congress tonight. There will be a special joint session with both the Senate and the House sitting in. For more on tonight's message, let's bring in CNN White House correspondent Dan Lothian now. Dan, good morning, once again.
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, good morning. This speech again will focus on the economy. There are many other issues, like foreign policy, that the president will touch on lightly, according to senior aides. But the focus, of course, is obviously what this country is dealing with now. And that's that sinking economy. The speech is expected to last anywhere from 50 to 60 minutes.
And Robert Gibbs, the White House spokesman, says that the president will try to balance this grim tone with an optimistic forward-looking agenda.
(BEGIN VIDEOTAPE)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: We have a recovery and reinvestment plan that's now the law of the land, and as you'll hear the president talk about tonight, is already working on getting tax cuts to the American people and creating jobs. The bill has already done that. But you'll hear him talk tonight about financial stability, about a housing plan for responsible homeowners that play by the rules.
You'll hear him talk about re-regulating the financial industry so we don't find ourselves at this point again. And you'll hear the president end tonight with a strong, hopeful message that we have met all of the challenges that have always faced this country and come out on the other side for a brighter America.
(END VIDEO CLIP)
LOTHIAN: Americans are looking for some good news. And in a recent CNN opinion research poll, when asked if Obama's speech will make you feel more confident about the economy, 62 percent said likely, 37 percent said not likely. And Heidi, you know, obviously, a lot of concerns, because people are sitting down at each day, and watching their 401(k)s cut in half, they're watching the stock market continue to be hammered. And what the White House is saying, listen, this economic picture, this slump, did not happen overnight. It took years, and so it's going to take a lot of time, a long time to fix it, and everyone needs to be patient.
COLLINS: Yes. Well, a lot of people are really, really struggling with that, of course. Louisiana Governor Bobby Jindal, though, he's going to be giving the republican response tonight.
LOTHIAN: That's right.
COLLINS: Pretty prime spot for him.
LOTHIAN: That's right, it really is. And you know, he's sort of the rising star, the de facto head of the Republican party. There have been a lot of talk about him sort of positioning himself for a future run at the White House. And he will - we don't know the specifics in terms of his response to what the president will be saying, but we do know in the last few days he has been sort of this outspoken critic of this stimulus package, pointing out that there are certain parts of that that he doesn't agree with. Some of the spending on, for instance, cars, government cars and other things.
And he has, along with a handful of other republican governors, expressed some concern and said that they will not be accepting some of the money from the stimulus plan or stimulus package. And he talked about that yesterday here at the White House, as well. So perhaps we'll hear some of that in his response to the president tonight. But certainly, he is a rising star in the Republican party, and we will hear him talk about some of these issues that he thinks are important for Republicans, and this whole bipartisanship that we have been hearing so much about here in Washington.
COLLINS: All right. CNN's Dan Lothian for us outside the White House this morning. Thank you, Dan.
Illinois Senator Roland Burris will be there tonight, and he returned to Washington yesterday, carrying extra baggage. Like calls for his resignation. The Illinois governor is saying Burris should step down over his links to former Illinois Governor Rod Blagojevich. Burris, of course, fills the seat once occupied by President Barack Obama.
You can watch the president's address live right here on CNN. Coming your way, 9:00 p.m. Eastern. And then stay tuned for expert analysis on Anderson Cooper "360."
Also, you and your Facebook buddies can chat while you watch at cnn.com. Cnn.com also has special pre-speech programming for you throughout the day. It begins with a special edition of John King's "State of the Union" at 11:00 a.m. Eastern. So go check that out.
This hour on Capitol Hill, a congressional hearing on U.S. Airways flight 1549. Some live pictures now, and a standing ovation there, as you can see. That's the airliner, of course, that made a breath-taking emergency landing on New York's Hudson River last month. Remarkably, there were no serious injuries among the 155 people aboard.
The pilot and crew and even the passengers have gotten a lot of praise for their handling of the emergency, but today's hearing is going to be marking the first public appearance of the air traffic controller who stayed cool and calm throughout.
Also on Capitol Hill this hour, Federal Reserve Chairman Ben Bernanke, what he says could have a big impact on where those numbers, I should say go. The market, of course, investors are anxiously waiting for his insights on the economy. His mission today, soothe their rattled nerves.
CNN's senior correspondent Allan Chernoff is in New York now with a look ahead. Boy, that is a tough bill, I would say.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: No question about it. And let's not depend on the chairman of the fed to necessarily soothe the financial markets, because that is a very, very tall task. Normally, Heidi, this is a pretty dry presentation before the Senate banking committee. The head of the Fed, twice a year, talks about monetary policy. And typically, members of this committee will try to figure out, is the Fed going to raise rates or lower interest rates?
No such suspense right now, because the Fed has already pretty much lowered rates, as low as they can go. The Fed funds rate, the overnight banking rate, essentially, it is at zero percent. The Fed also has been injecting lots of money into the banking system, short- term money. It's been providing dollars for 14 foreign central banks.
Longer-term money, it's been buying government agency paper from Freddie Mac, Fannie Mae, to push rates down for mortgages. It's really been doing everything it possibly can to shovel money out there to get the flow of credit moving. Heidi.
COLLINS: So are some of these actions then considered inflationary? We talk a lot about the inflation possibilities, the deflation possibilities, any of that going to come up today?
CHERNOFF: It definitely should, Heidi. That is a critical, critical question, longer-term. The Fed basically is taking out, has been taking out its emergency playbook, all of those items that I've mentioned. These are extraordinary measures by the Central Bank. Normally, this would be incredibly inflationary. We're just printing all this new money. And eventually, a lot of economists fear this could trigger inflation.
But right now, we're facing bigger problems. We've got to get the flow of money going so that's what the Central Bank is focused on right now, down the road inflation definitely could be a problem, and if we get out of this economic malaise, then certainly we can look for the Federal Reserve to really tighten policy. But they can't do it now.
COLLINS: Yes. All right. Allan Chernoff for us. Thank you, Allan.
The financial crisis is putting a strain on some college students, too, as tuition costs rise and financial aid gets tougher to come by, students are really stressed as they try to find the money to stay in school. CNN's Brooke Baldwin joining us now live from Spellman College in Atlanta. Brooke, good morning.
BROOKE BALDWIN, CNN CORRESPONDENT: Heidi, good morning to you. Yes, these students here at Spellman are definitely plugged in, especially given the economy. We're hearing the students can walk into the cafeteria and really been checking the pulse of what these students have to say when it comes to what Barack Obama, what President Obama might say tonight when he addresses congress.
And you can believe that education, number one on their minds. They're thinking about buying books. They're thinking about paying tuition, eating lunch, like Lauren Morton just ate her breakfast a couple of minutes ago. And we're talking to students about what is on the forefront of your mind when it comes to this administration and your day to day worries, economically speaking.
Lauren is from the Washington, D.C. area. You're a freshman, yet you are still - you're bogged down, your parents have gone into their retirement to pay for your freshman year.
LAUREN MORTON, COLLEGE FRESHMAN: Yes, definitely they have. And if anything, to a certain extent, I feel like I am a burden, a financial burden for my parents, because I know that they have taken, like you said, their retirement or different funds or what have you, just solely for my freshman year. Not sophomore year, not junior, not senior year, freshmen year.
BALDWIN: So when it comes to the rest of your college experience here in Atlanta this isn't cheap. This is about $27,000 tuition alone here at Spellman, private university. The rest of your schooling, big question mark.
MORTON: Big question mark. And as my mother told me earlier, probably earlier in the year, it's now from here on out, it's going to be on me. That's why I am relying on scholarships or different - theoretically, loans to a certain extent to pay for my education. My parents are depleted. I've depleted my parents.
BALDWIN: You're not a burden, I assure you, I'm sure, to them. I just wanted to say that.
MORTON: Thank you.
BALDWIN: Secondly, though when it comes to jobs, you're a freshman. Perhaps you don't have to worry about this, it's a couple of years down the road for you. But when it comes to let's say summer internship, which you be willing because a lot of students are taking unpaid internships. Are you in a place financially where you could do that?
MORTON: I know that if I were in a bind for money, I know that could ask my parents for money. But like I said, I know that tuition is already a burden for my parents. So that's why I do work during the summer. But to a certain extent, I do need to get internships so I can go on to law school or go on to graduate school.
BALDWIN: tough balancing act for you, Lauren. Thank you. Good luck to you. Tough, very daunting balancing act for the now President Barack Obama, as many people here at Spellman and college students around the country, Heidi, will be paying very close attention to how he plans to lay out his economic agenda and at the same time sort of cut that $1.2 trillion deficit that his administration is now facing.
COLLINS: All right. CNN's Brooke Baldwin, sure do appreciate that. Brooke, thank you.
And we want to remind you about this tomorrow and Thursday, at 8:00 Eastern, tune in for "Black in America," a provocative in depth look at a subject most networks won't touch.
Dining on a dime. The economic mess isn't stopping some savvy people from eating healthy. We'll tell you what's on the menu.
(COMMERCIAL BREAK)
HEIDI COLLINS, CNN ANCHOR: Let the good times roll. A little of the sights and sounds from Mardi Gras in New Orleans. We're going to check in with meteorologist Rob Marciano for a look at weather conditions in just a moment.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
PRES. BARACK OBAMA, UNITED STATES: We cannot and will not sustain deficits like these without end. Contrary to the prevailing wisdom in Washington these past few years, we cannot simply spend as we please.
(END VIDEO CLIP)
COLLINS: President Barack Obama focusing on the economy tonight, during his address to Congress. You, of course, can see that live here at 9:00 p.m. Eastern. So earlier this morning, we asked you, what cuts you would make in order to make ends meet. And our Josh Levs has been reading your Facebook responses and your e-mail as well.
So Josh, remind everybody. We're asking them what cuts they would make with their own personal finances, or with this massive economic recovery plan?
JOSH LEVS, CNN CORRESPONDENT: We're asking them about government funding, basically because we're hearing that President Obama - am I causing statistic? Are you hearing that?
COLLINS: You are very staticky right now.
LEVS: What is that about? Can you hear guys hear me? Hear me now?
COLLINS: I'm not sure. I can hear you, because you're just over there, and I'm not supposed to look at you. I'm supposed to look here. There you are.
LEVS: Am I clear now?
COLLINS: You're good.
LEVS: Sweet. No, I'm not. Let's just go to the graphic. Because I want to see who they can weigh in. At least that will help people get involved. There you go. This is what's on today at cnn.com/live, in conjunction with Facebook. But you can weigh in today. Visit Facebook or via e-mail. Or e-mail us at cnnnewsroom@CNN.com. Or you can go on Facebook and go to my Facebook page to joshlevscnn. But you know what, you can't hear me. So go ahead and I'll be back in a few minutes to read you some of those e- mails.
COLLINS: All right. Josh, thanks for hanging in there. That's right. And we will pull you up just as soon as we get the batteries fixed. Because I have no idea if that's what it was. But maybe it was only that simple. We'll check back in a minute. Thanks, Josh.
One of the biggest parties of the world rocking the city of New Orleans. Thousands of people are celebrating Mardi Gras, or Fat Tuesday, as you know it. It's the day before Ash Wednesday when Catholics begin the solemn fasting period of Lent. Well, here's what it looks like right now in the Big Easy. Parades and parties, jamming almost every block. It's about the floats, the food, and, of course, plenty of booze for this day of festivity.
So things are warming up in the south. Let's go ahead and check in with meteorologist Rob Marciano. But you know, I know you're going to comment about Mardi Gras after that, right?
ROB MARCIANO, CNN, METEOROLOGIST: Well I'm going to comment on the script. Did you read the booze part - or was that ad lib ala Heidi Collins?
COLLINS: No. I just do what I'm told.
(LAUGHTER)
MARCIANO: OK. I'm sure it's involved somewhat. But as you know, as you mentioned, it's more of a religious thing.
COLLINS: Supposed to be.
MARCIANO: Exactly. And they do it for the love of god. And god bless them today.
COLLINS: Sure.
MARCIANO: Here's New Orleans. You've got beautiful weather, so certainly the angels are smiling on you here. Tomorrow, Ash Wednesday, as Heidi mentioned and then you've got to give something up. And kind of chill out on Fridays, and then celebrate the big day come Easter. 48 degrees in the morning. Watch, we're past that. But the mid 50s through the lunch hour and we're looking good for Mardi Gras.
And certainly the folks in Maine wish they were in New Orleans. Yesterday, quite a day in Farmington, Maine, 26.2, Hartford, Maine, 21 inches. So in spots, over two feet. That's for some fresh powder up there in Sugar Loaf and parts of New Hampshire.
All right. We go to the west coast. To Salem to Eugene, up towards Seattle, a little bit of rain in the valleys here and some wind as well. Kind of a stormy day out there in the Pacific northwest, stretching down across parts of northern California.
A little weak storm getting out into the southern plains, and that's going to help actually instigate a bit of a warm-up in spots. And in areas in Texas, especially west Texas, parts of New Mexico, you could see 15 to 20-degree temperatures above average today and tomorrow.
So that certainly will be welcome after what has been a chill past couple of days. A little bit breezy in Dallas though, 76 degrees. 75 in Houston. That sounds nice. 85 in Phoenix. And 68 degrees in Los Angeles. Happy Mardi Gras to you, Heidi. COLLINS: All right. Very good. Thank you, Rob. We'll check back later on.
So questions this morning about a planned missile launch in North Korea. Officials there claim they are sending a satellite into space. But America and South Korean leaders believe it could be a powerful long-range missile. CNN's senior Pentagon correspondent Barbara Starr has some answers.
Barbara, good morning to you. What, I mean, are there any answers to right now what this is all about?
BARBARA STARR, CNN SENIOR PENTAGON CORRESPONDENT: Well, Heidi, what the U.S. thinks is that North Korea is getting ready to launch something. The best guess, and it is a guess at the moment, because no one is certain, is that North Korea will try to launch a satellite. It's essentially the same thing, whether you launch a satellite on the front end of a long-range missile, or simply launch a long-range missile itself.
Both of those, obviously, a good deal of concern. North Korea tried this back in July of 2006, launching a long-range missile, and it fell into the sea of Japan very quickly after launch. This time, North Korea appears to be taking its time at this missile facility that the U.S. has been watching. They think it could happen in the next days or weeks. So they are watching it all very carefully.
If North Korea is able to put a satellite into orbit, that would be a significant step forward in their technological capability. If they launch simply a long-range missile, it could have the theoretical capability to reach Alaska, but nobody really thinks at this point that they have the kind of quality in their missiles that that would actually happen. So a lot of eyes on all of this, waiting to see how it all unfolds.
COLLINS: And very quickly, Barbara, when you say quality, what exactly do you mean, are we talking about accuracy and so forth?
STARR: Exactly, Heidi. You know, North Korea had a missile program for many, many years. But their quality control, their ability to launch head of target that they're really aiming at. Put the missile or the satellite into the trajectory orbit that they want to do this all with the kind of precision that is required is something that the North Koreans have had a lot of trouble with, if for no other reason, than they lack the money, the funds, to really have a program that's of world-class quality.
A lot of people are asking the question then, why is North Korea rattling the cage? Why are they doing all of this?
COLLINS: Yes.
STARR: You know, a lot of people say it's to get the attention of the Obama administration. Or to basically ratchet up tensions, once again, in that region to try and get concessions into their nuclear talks, or to get more financial aid for their country. Obviously, the people of North Korea continue to suffer greatly in famine and lack of other resources, Heidi.
COLLINS: Secretary of State Hillary Clinton just back from the region, as well. All right. Barbara Starr, we sure do appreciate that, and we'll keep an eye on that with you. Thanks.
NASA meanwhile trying to figure out what went wrong with their rocket this morning. It was a picture-perfect liftoff for about three minutes, but part of the rocket's shell wouldn't separate, making it impossible to go into orbit. The rocket and the satellite it was carrying came down in the ocean near Antarctica. The satellite was supposed to monitor carbon dioxide in the earth's atmosphere.
A neighborhood in trouble. Nearly half of the residents facing foreclosure. Now, trying to decide what to do with their dream homes. Real effects of the slumping economy.
(COMMERCIAL BREAK)
CHESLEY SULLENBERGER, U.S. AIRWAYS PILOT: Sadness and grief at the loss of 50 lives. The families of those no longer with us are in my thoughts and in my heart. The events of January 15th, 2009 have been well-documented, and rather than recite them now in great detail, I want only to reiterate to the subcommittee that the successful outcome was achieved by the actions of many.
Lives were saved due to the combination of a very experienced, well-trained crew, First Officer Jeff Skiles, and flight attendants Donna Dent, Dorene Welsh and Sheila Dale. All of them acted in a remarkable display of team work, along with the expert air traffic controllers, the orderly cooperation of our cool-headed passengers and THE quick and determined actions of THE professional and volunteer first responders in New York City.
The events of January 15th serve as a reminder to us all of the daily devotion to duty of the many thousands of aviation professionals who keep air travel safe. And also, as a reminder of what is really at stake. I, like thousands of my professional airline pilots know that flying a large commercial airline is a tremendous responsibility. We clearly understand that our passengers put their lives in our hands.
We know that we must always be prepared. We must always anticipate. We must always be vigilant. Expecting the unexpected and having an effective plan for dealing with it must be of in the very make-up of every professional airline pilot. I'm not only proud of my crew, I am proud of my profession. Flying has been my life-long passion. I count myself fortunate to have spent my life in the profession I love, with colleagues whom I respect and admire.
But while I love my profession, I do not like what has happened to it. I would not be doing my duty if I did not report to you that I am deeply troubled about its future. Americans have been experiencing huge economic difficulties in recent months. But airline employees have been experiencing those challenges and more for eight years. We have been hit by an economic tsunami. September 11th, bankruptcies, fluctuating fuel prices, mergers, loss of pensions and revolving door management teams who have used airline employees as an ATM have left the people who work for the airlines in the United States with extreme economic difficulties.
It is an incredible testament to the collective character, professionalism and dedication of my colleagues in the industry that they are still able to function at such a high level. It is my personal experience that my decision to remain in the profession I love has come at a great financial cost to me and to my family. My pay has been cut 40 percent. My pension, like most airline pensions, has been terminated, and replaced by a PPGC guarantee worth only pennies to the dollar.
While airline pilots are by no means alone in our financial struggles, I want to acknowledge how difficult it is for everyone right now. It is important to underscore that the terms of our employment have changed dramatically from when I began my career, leading to an untenable financial situation for pilots and their families.
When my company offered pilots who had been laid off a chance to return to work, 60 percent refused. Members, I attempt to speak accurately and plainly. So please do not think I exaggerate when I say that I do not know a single professional airline pilot who wants his or her children to follow in their footsteps. I am worried that the airline piloting profession will not be able to continue to attract the best and the brightest.
The current experience and skills of our country's professional airline pilots come from investments made years ago, when we were able to attract the ambitious, talented people who now frequently seek professional careers elsewhere. That past investment was an indispensable element in our commercial aviation infrastructure. Vital to safe air travel and our country's economy and security.
If we do not sufficiently value the airline piloting profession and future pilots are less experienced and less skilled, it logically follows that we will see negative consequences to the flying public and to our country. We face remarkable challenges in our industry. In order to ensure economic security and an uncompromising approach to passenger safety, management must work with labor to bargain in good faith. We must find collective solutions that address the huge economic issues we face in recruiting and retaining the experienced and highly-skilled professionals that the industry requires, and that passenger safety demands.
But further, we must develop and sustain an environment in every airline and aviation organization, a culture that balances the competing needs of accountability and learning. We must create and maintain the trust that is the absolutely essential element of a successful and sustainable safety reporting system to detect and correct deficiencies before they lead to an accident.
We must not let the economic and financial pressures detract from a focus on constantly improving our safety measures and engaging in on going and comprehensive training. In aviation, the bottom line is that the single-most important piece of safety equipment is an experienced, well-trained pilot.
Despite the bad economic news we have been experiencing in recent times, despite the many challenges we face as a country, I have faith in America, in our people, in our promise. I have briefly touched upon some major problems in my industry today, but I do not believe that they are intractable, should we decide to work collectively to solve them. We all have roles to play in this effort.
Despite the economic turbulence hitting our industry, the airline companies must re-focus their attention and their resources on their recruitment and retention of highly experienced and well-trained pilots and make that a priority that is at least equal to their financial bottom line.
Jeff and I and our fellow pilots will fly our planes and continue to upgrade our education and our skills while we attempt to provide for our families. Patrick and the other talented air traffic controllers will continue to guide us safely through the skies. Our passengers will spend their hard-earned money to pay for their travel, and our flight attendants, mechanics, ground crews and administrative personnel will deal with the thousands of constant details and demands that keep our planes safely in the air.
You can help us, Mr. Chairman, honorable members, to work together across party lines and can demand or legislate that labor, management, safety experts, educators, technical experts and everyday Americans join together to find solutions to these problems. We all honor our responsibilities in good faith, and respect one another.
We must keep the American commercial aviation industry safe, and affordable for passengers, and financially viable for those who work in the industry day to day. And for those talented young men and women considering what to do with their lives, we must restore the narrative of a compelling career path in aviation, with sufficient economic resources to once again make this vision a reality. Thank you for your kind attention and for the opportunity to share my experiences with this committee.
COLLINS: All right. Let me attempt to explain this just a little bit, as we came right out of the commercial break into arguably, the most famous and endeared commercial pilot of modern-day times, Captain Chesley Sullenberger, otherwise known as Sully. I'm sure you rember him as the pilot in control on the US Airways Flight 1549. A bit of a surprise there.
What's happening in Congress is, we're going to be hearing from the air traffic controller who actually had last contact with Captain Sullenberger before that plane went into the Hudson River. Very, very compelling testimony. We do expect that the captain there taking an opportunity to talk a little bit about the status of the airline industry and how the pilots and other airline workers have been affected by the economy, as well.
Again, that congressional hearing taking place today. We will be monitoring that for you and bringing you more, should we deem it necessary. Meanwhile, does the tanking economy condemn us to a life of frozen and canned food on the dinner table? Well, some dieticians think not. Valerie Town from CNN affiliate KTKA has the skinny on eating healthy with empty pockets.
(BEGIN VIDEOTAPE)
VALERIE TOWN, KTKA (voice-over): Almost everyone is feeling the penny pinching their pocket in this economy, but one thing people cannot completely take out of their budget is food.
UNIDENTIFIED FEMALE: People probably cut down on travel and people cut down on this and that, but people are always going to eat.
TOWN: Shoppers have been zoning in on the frozen-food and can aisles, which usually hold products filled with tons of sodium and preservatives.
UNIDENTIFIED FEMALE: We're buying more things like macaroni and cheese and things like that, and a lot of it's because I have two small kids, and fruit and vegetables go bad in the refrigerator by the time you get around to all of them.
TOWN: But dieticians say there are ways to have a healthy diet on a budget. Consumers just need a few tricks.
UNIDENTIFIED FEMALE: A person doesn't have to change everything to eat healthy. Just a few key changes can really make a big difference.
TOWN: And if you really can't help passing up those ten items for $10 deals, go ahead and grab them. There is even a way to make those nutritious.
(on camera): Dieticians say that if you are on a budget and want to buy something like ramen noodles, that's absolutely fine. Just make sure that you're buying a vegetable and a lean meat to make it a well-balanced meal.
(voice-over): It's also important for consumers to buy only as much as they will eat.
UNIDENTIFIED FEMALE: So, make sure when you're buying in bulk that you're not only considering the economic value, you know, is it really cheaper but also looking at your own family household. Is it going to get consumed? Because if you're throwing it out, it's not more economical to buy it in bulk.
TOWN: But like many things in life, it's always about compromise.
UNIDENTIFIED FEMALE: We're trying to keep it, you know, keep it healthy as much as we can, but we also don't have a ton of extra money to spend. So, there's a little bit of give and take.
TOWN: Valerie Town, KTKA 49 ABC News. (END VIDEOTAPE)
COLLINS: Hey, we know Valerie. CNN and cnn.com are actually following your live responses to President Obama's address tonight. And Josh Levs is here now to talk a little bit more about about that. Hey there, Josh.
JOSH LEVS, CNN CORRESPONDENT: Hey there, Heidi. How are you doing?
COLLINS: Good.
LEVS: All right. Cool. So, let's zoom in on the screen for a second. I want everyone to see what's going on.
This is a lot like what we did on the Inauguration Day. Right now, it's CNN.com Live hooking up live with Facebook. And while you watch .com Live throughout the day, you can sign into Facebook just over here on the right. And throughout the day, you can share your thoughts, your responses, what you think about what you're seeing there.
Along with that, in conjunction with it, we here are asking you this question. How should -- oh, look, there's me. OK. How should the U.S. cut back?
COLLINS: That's great.
LEVS; Look at that. We're asking you, because the president tonight will be announcing that he wants to cut the budget, halve the deficit. So, go to Facebook if you're on and just search Josh Levs CNN, and we're asking, how should the U.S. cut back?
Or, you can e-mail us, cnnnewsroom@cnn.com. And throughout the hour, we're going to keep showing up here, Heidi, and tell you what some people are saying.
(COMMERCIAL BREAK)
COLLINS: Quickly happening right now -- we want to get straight to it -- this is the air-traffic controller that we've been telling you about for -- the person who was last in contact with Captain Chesley Sullenberger, United Airlines -- pardon me, US Airways Flight 1549 that crash-landed into the Hudson River. These are his accounts of that day. Let's listen.
PATRICK HARTEN, AIR TRAFFIC CONTROLLER: That is when the captain advised me that they suffered a bird strike, lost thrust in both engines and needed to return to LaGuardia for an emergency landing. When a pilot tells a controller he needs to make an emergency landing, the controller must act quickly and desizively. I made a split-second decision to offer him Runway 1-3, which was the closest runway to his current position, and turned him left to a heading of 2-2-0 so he could return to the airport.
I then immediately contacted LaGuard tower and asked them to stop departures and clear the runway for an emergency return. While I have worked 10 or 12 emergencies over the course of my career, I have never worked in aircraft with zero-thrust capabilities. I understood how grave the situation was. After I gave him his instructions, the captain very calmly stated, we're unable.
I quickly vectored (ph) another aircraft that was still in my airspace and gave 1529 a second option, land on LaGuardia Runway 3-1. Again, the captain said, unable. I then asked the captain what he need to do to land safely. At this point, my job was to coordinate and arrange for the pilot to be able to do whatever was necessary. The pilot told me he could not land on any runway at LaGuardia, but asked if he could land in New Jersey and suggested Teterboro. I had experienced working traffic into Teterboro from my time working in the Newark sector.
And after I coordinated with the controllers in Teterboro, we were able to determine that Runway 1 was his best option. It was an arrival runway, and clearing it for an emergency landing would be easier and faster. It also meant 1549 would be landing into the wind, which could have assisted the pilot in making a safe landing. I called Teterboro and explained the situation. The controller at Teterboro reacted quickly and prepared Runway 1 for the emergency landing. I then instructed the captain to turn right to a heading of 2-8-0 to land Runway 1.
The captain replied, we can't do it. I replied immediately, which runway would you like at Teterboro? The captain replied, we're going to be in the Hudson. I asked him to repeat himself, even though I heard him just fine. I just could not wrap my mind around those words. People do not survive landings on the Hudson River, and I thought it was his own death sentence. I believed at that moment I was going to be the last person to talk to anyone on that plane alive.
I then lost radio contact with 1549, and the target disappeared from my radar screen as he dropped below the tops of the New York skyscrapers. I was in shock. I was sure the plane had gone down. Less than a minute later, 1549 flickered back on to my radar scope. The aircraft was at a very low altitude, but its return to radar coverage meant that there was a possibility 1549 had regained use of one of its engines.
Grasping at that tiny glimmer of hope, I told 1549 that it could land Newark seven miles away on Runway 2-9. But I received no response. I then lost radar contact again, this time for good. I was relieved from my position a few moments later, as soon as it was possible. I was in no position to continue to work air traffic.
It was the lowest low I have ever felt. I wanted to talk to my wife, but I knew if I tried to speak or even heard her voice, I would completely fall apart. I settled for a hasty text message. Had a crash. I'm not OK. Can't talk now. When I got home, she told me she thought that I was in a car accident. Truth was, I felt like I'd been hit by a bus.
It took six hours before I could leave the facility. I had to review the tapes, fill out paperwork and make an official statement. It may sound strange, but for me the hardest, most traumatic part of the entire event was when it was over. During the emergency itself, I was hyper-focused. I had no choice but think and act quickly and remain calm.
But when it was over, it hit me hard. It felt like hours before I learned about the heroic water landing Captain Sullenberger and his crew had managed. Even after I learned the truth, I could not shake the image of tragedy in my mind. Every time I saw the survivors on television, I imagined grieving widows.
It has taken me over a month for me to be able to see that I did a good job. I was flexible and responsive, I listened to what the pilot said and made sure to give him the tools that he needed. I stayed calm and in control. I returned to work this week, and while it may take some time for me to regain my old confidence, I know I will get there.
I would like to end by personally recognizing the captain and crew of Flight 1549 for their professionalism, skill and heroic efforts of that day. I would like to recognize the professionalism of the other controllers who helped clear the skies and the runways for 1549, as well as the engineers who helped ensure that the aircraft itself could survive landing in the Hudson and that those inside would be safe.
Finally, I want to thank my wife, Regina. She has been my rock these past few weeks, as she always has and always will be. I couldn't have survived this without her. Thank you, Mr. Chairman. I'm prepared to answer any questions you might have.
COLLINS: There you have the words of air traffic controller Patrick Harten. He was the last person to have contact with Captain Chesley Sullenberger, who you also see there sitting at the table there. This is the congressional hearing that we have been telling you about that would take place today.
And, boy, really, really compelling stuff there to listen to what he had to deal with and the thoughts that went through his mind on that day when US Airways Flight 1549 went into the Hudson River.
Meanwhile, could Uncle Sam take a larger stake in a big bank? Well, it's leading to fears of nationalization. What is that, and what does it really mean to you?
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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Cornerstone of security in east Asia. It's one that my administration wants to strengthen. We think that we have an opportunity to work together, not only on issues related to the Pacific Rim, but throughout the world. And Japan has been a great partner on issues ranging from climate change to Afghanistan. We're going to have a very busy session, and I'm very grateful that the prime minister agreed to come and looking forward to a very constructive dialogue. TARO ASO, PRIME MINISTER OF JAPAN: Well, first of all, thank you very much for inviting a foreign official, foreign guest, to the White House. Not only your friend (ph), but an Asian. We are very honored to be here as the first foreign guest. Nowadays, there are so many issues we have to (INAUDIBLE), and number one and second biggest economy of the world. We will have to work together hand in hand, and I think we are the only two nations which can -- have enough to solve this very critical, vital issue of the world. I do hope cooperation will help for the future generations of the world.
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COLLINS: There you see an important first meeting at the White House this morning. Japan's prime minister is actually the first foreign head of state now meeting with the president at the White House. Just wanted to give you a little bit of a taste of that video coming into us right now here at CNN. Of course, the struggling world economy is expected to be at the top of their list of things to discuss.
A possible deal between the government and Citibank is prompting concerns about nationalizing of banks. But how would such a move change the rules of doing business? And is it really even on the table? Let's take a closer look at the issues in play now.
Leo Tillman teaches finance at Columbia University. He's also the author of "Financial Darwinism." Thanks for being with us, Mr. Tillman. Quickly, let's go ahead and just put a very, very elementary sort of definition, if you will, on the screen for everyone to see. Nationalize, to put under state control or ownership.
Tell us what actually happens. For the people at home, what will they see that will be different for them, if, in fact, this were ever to happen in the United States?
LEO TILMAN, RUNS STRATEGIC ADVISORY FIRM: Well, as you said, nationalization is the act by the government to take control of an industry, a company or assets into public ownership.
COLLINS: Right.
TILMAN: And by doing so, stakeholders typically get wiped out, and the government assumes all the risks and debts of the company. Typically, this happens in socialist states, because the government believes that it can better control the economy, or distribute resources or facilitate other public policy objectives. From that perspective, what happened to Fannie Mae and Freddie Mac was true nationalization. But I don't think that when we talk about big banks, we really mean nationalization in this sense.
COLLINS: OK. Well, why do you say that? Because I've been looking at a couple of really fascinating articles today. One I found in "The Wall Street Journal," actually by William Isaac, who was the former chairman of the FDIC back in 1981 through '85.
He's kind of talking about the same thing that you are. He is saying, now, wait a minute, we're way before talking about nationalization, because when you compare to Sweden, which a lot of people do, where their banks are nationalized, we're talking about a teeny, tiny little country by way of assets, as well. And the money that we'd be talking about is entirely different. He actually says irrelevant to the United States.
TILMAN: I think the biggest distinction is the government intends to run the institutions for a prolonged period of time. Everything we heard about these "too big to fail" banks had to do if you need. The government will take in (ph) these institutions and orderly liquidate them. So in my case, when people talk about nationalization in this regard, they mean orderly liquidation more than true nationalization per se.
COLLINS: So are you saying that maybe then that would happen with just a couple of banks, or this would have to be all of them?
TILMAN: No. This will have to be a couple of isolated incidents, where the government believes that certain injections of capital will no longer be sufficient to support all the risks. And in the short term, the government will take control, but the eventual end game is in liquidation, rather than nationalization.
COLLINS: OK. So, shareholders are going to hate it, true capitalists are definitely going to hate it. What about everybody at home watching right now? Remind me again what they're going to feel if and when this were to ever happen.
TILMAN: Well, I think the government has learned the lessons from the Lehman bankruptcy. And whatever is done next will be done to preserve the order in the capital markets and prevent any further deterioration of the economy. So, I think any kind of action in this regard will be positive for the consumers, for capital markets and for the economy overall.
COLLINS: All right. Well, maybe we'll hear something about it from the president tonight. We sure do appreciate your thoughts here today. Leo Tilman, thanks so much, Columbia University, and of course also the book, "Financial Darwinism." Thanks again.
You can watch President Obama's address tonight live at CNN.com and chat with your friends on Facebook about it. The question that we're asking today, how should the U.S. cut back? You can e-mail us at CNNnewsroom at CNN.com.
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COLLINS: President Barack Obama going to focus on the economy during his prime-time address to Congress tonight. CNN.com is stepping up with special programming throughout the day, leading up to the speech. Our Josh Levs is here with a look ahead. Hey there, Josh.
LEVS: Hey there, Heidi. Really quickly, I'll show you what's going on. CNN.com Live throughout the day is doing what happened at the time of the inauguration. There's special programming throughout the day, and you can Facebook to the right.
Along with that, we've been asking you this Facebook question here through my page, Josh Levs CNN. We're asking you what should be pulled from the budget. Now, you know, I've read a lot of responses all morning. We've also gotten e-mails to cnnnewsroom@cnn.com. This is one from Faye, who says, "Do not cut back on military spending. Our troops are going without certain basic needs," she says.
So keep these responses coming, and we will share more with you next hour right here in the NEWSROOM -- Heidi.
COLLINS: Excellent. All right, Josh, thank you. And thank you, everybody, for watching. I'm Heidi Collins. You can join us again tomorrow morning beginning at 9 a.m. Eastern. For now, CNN NEWSROOM continues with Tony Harris right after the break.
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