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Obama to Speak about Economy Tonight; How To Guide for Balancing Home Budgets; White House Official Answers Viewer Questions; Geronimo's Family Sues for Recovery of Body
Aired February 24, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: All right. The president talks, lawmakers listen. It doesn't happen every day, but tonight's the night. We're pushing forward on the state of the economy and what our leaders plan to do about it.
Nobody plans to fail, but lots of us fail to plan. Pushing forward on the household budget front. Step one: have a budget.
Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
Other stories that we're talking about: we're all over the economy this hour, of course, ahead of President Obama's big address, but some of the different angles that we're going to bring you. Forty Chinese investors, cash in hand, looking to snap up some houses here on the cheap.
Plus, alcohol and pot. Not the answer to life's problems, but some say they could help states solve their budget problems.
But first this hour, it's not being called the State of the Union speech. We all know the State of the Union already. Instead, President Obama's first address to a joint session of Congress is expected to make policy and pep talk all about issue No. 1.
CNN White House correspondent Dan Lothian joins me now with a preview.
Dan, tell us about the story here.
DAN LOTHIAN, CNN CORRESPONDENT: Well, you know, it won't be drilling down into specifics. It will a broad view of, obviously, the issue No. 1, the economy.
The president will lay out the challenges that this country is facing, but he will also have a somewhat optimistic tone, that there are a lot of things that this administration is doing that this administration believes will help to turn the economy around.
But again, staying away from the specifics, because as one senior administration official told us, quote, "The American people want to know there's a game plan, not every move on the field." And the administration official going on to say, "We have a plan for winning."
The one thing that the president will continue to focus on tonight, which he's been doing now for the last few weeks, is that this economic situation that we're in did not happen overnight. It took time to get to this point, and it will take time to turn things around. So he will tell American people and ask Americans to be patient. Take a listen.
(BEGIN VIDEO CLIP)
CHRISTINA ROMER, COUNCIL OF ECONOMIC ADVISERS: Economies are a little bit like super tankers. They don't turn on a dime ,and you do keep going one direction even when you've shoved that rudder as hard as we are shoving it right now to switch direction. It will certainly take a number of months, and I think -- I think by being honest, he's going to make them understand.
(END VIDEO CLIP)
LOTHIAN: Americans are looking for and hoping for some good news in that speech tonight. A CNN/Opinion Research poll taken when Americans were asked whether or not they will feel much more confident about the economy with the president's speech, 62 percent said likely, 37 percent said not likely.
And Kyra, the president again tonight will focus on that $787 billion stimulus plan. He'll talk about how he believes it will save and create all those jobs and ultimately turn the economy around, Kyra.
PHILLIPS: All right. Dan Lothian. Of course, we'll all be watching. Thanks so much.
And you can watch President Obama's address to Congress right here on CNN. That's at 9 p.m. Eastern. Be sure to stay tuned to CNN after the speech for the Republican response and expert analysis on "ANDERSON COOPER 360." And stay tuned for a special edition of "LARRY KING LIVE." That's at midnight.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: You put back the small things, even the movies, even where you go drive your car. Gas is down. It's creeping right back up. I mean, you know, everybody's cutting back. I still work two jobs. But you're going to cut back. Number of clothes you buy. Just everything generally.
(END VIDEO CLIP)
PHILLIPS: Well, that's one way to look at the economy. Here's another: the stock market struggling to claw their way back from near 12-year lows.
And speaking of low, consumer confidence has never been lower. The group that's done those surveys since 1967 says the gauge now stands at 25. That's down from 37.4 in January.
Now, despite all that, we're seeing a rare thing on Wall Street today. Believe it or not, a rebound. Federal Reserve chief Ben Bernanke had some calming words from investors. Apparently, that's working. Right, Susan Lisovicz?
SUSAN LISOVICZ, CNN CORRESPONDENT: It's working, Kyra, yes. The chairman of the Federal Reserve said that there is a reasonable prospect that the economy is likely to keep contracting in the first half of this year, but that the current recession could end by the end of the year and that 2010 will be a year of recovery.
Now, of course, there were caveats that came with that. Mr. Bernanke said that there -- the downside risks -- the upside risks, there's considerable uncertainty. And that -- that once confidence returns, that the housing market and that the financial markets will also continue to improve.
Mr. Bernanke also said that he will continue to use all the tools in his arsenal to help bolster the economy, and we are seeing a recovery here on Wall Street today. Right now the Dow is up 95 points, Kyra. It's Fat Tuesday. I have all the tools in my arsenal. I'm wearing some Mardi Gras beads.
PHILLIPS: All right. How did you get those beads? Because I looked for you down there in the Big Easy. I didn't find you in the crowd.
LISOVICZ: Well, Kyra, you know, if I told you I'd have to kill you, and I'm not about to do that.
The NASDAQ, meanwhile, is up 17 points, but this is not exactly the kind of rebound you want to see after the Dow and the NASDAQ and the S&P were at the lows we've seen, the Dow and the S&P hitting 12- year lows yesterday. But at least it's a sign in the right direction, and Mr. -- and the market did improve once Mr. Bernanke started speaking.
PHILLIPS: And on that Mardi Gras note, truly being down there, you would never think we were going through such a tough time economically. It was unbelievable how much money they spent, how many people were there. It was a good couple of days. That's good news, I guess, for the economy. And the revelers. All right, Susan, thanks.
LISOVICZ: You're welcome.
PHILLIPS: Well, the economy and the markets are pretty much out of your hand, beyond your control, but your own money? Well, that's a different story. Here's a couple of things that we want to know today. First, how do you make a budget for yourself if you don't have one? Now is a really good time to start. We're going to tell you how to do that.
Also, is it time to rethink the dream of owning a home? Maybe renting isn't like flushing money down the toilet after all. We're going to talk to you about that, as well.
Now the housing crisis has some people wondering if owning a home should be part of the American dream anymore. This as professor and author Richard Florida tells NPR that you shall consider renting, especially if you might need to move for your job. Florida says our economy today is built on flexibility and that being stuck in a mortgage might not make sense nowadays. He also has another interesting idea, that banks should take foreclosed houses and rent them back to the former owners at affordable rates. All right.
Next up, that family budget: many giant businesses can't keep their financial houses in order right now, but that doesn't mean that you can't at your house. CNN's personal finance editor Gerri Willis is here with the how-to.
Hey, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there, Kyra.
Yes, you can do this. You can get your arms around your own budget. And the first thing to really think about doing is creating a money journal for a month. Now, that means you write down exactly what you've spent on a daily basis. I'm talking everything from your morning coffee to the cable bill, everything. Get in touch with what you're spending it on. You may be surprised at how much you allocate to things you don't really need.
Most folks out there are still spending cash on discretionary items in this recession, and that's not necessarily a bad thing but you need to know where the money is going.
Next up, figure out where you should be allocating your money in an ideal world. Check this out: our pie chart on how to spend. Housing, utilities and insurance should take up 40 percent of your monthly budget. Take a look at that. Now your rent or your mortgage should be 31 to 33 percent of that 40 percent. Living expenses -- food, clothing, medicine -- 25 percent. Transportation, 15 percent. And here I'm talking about gas and your car payments. Savings, 5 percent. Debt, 5 percent. Education and child care, 6 percent. Recreation, a measly 4 percent.
Of course, your situation will vary. These are just basic guidelines. Obviously, your situation may be different -- Kyra.
PHILLIPS: All right. So how do you go from tracking your expenses to allocating the money?
WILLIS: Go online. That is my best advice. Track your income and your outgo. Software like Quicken is terrific. You can go to CNNmoney.com. Help you organize yourself when it comes to your savings and your spending.
For example, Quicken currently has a free version of how you can track your money. On one page you have your retirement accounts, your savings accounts, your checking accounts. It's all in one place. What's more, the program will tabulate where you're spending your money and how you're progressing towards goals. So you'll know if the clothing budget has gotten out of hand.
It even alerts you if your balances are getting low. So if you're thinking about stroking that check or you're in the mall and you're buying something, you're wondering can I cover that with my checking account, you'll know.
And Kyra, I just want to tell you, I'm heading back right now to our live streaming coverage on the state of the economy at CNN.com/live. Join us there. We're having a great conversation, everything money.
PHILLIPS: Sounds good, Gerri. Thanks.
Our CNN.com Live coverage all afternoon that Gerri just mentioned, she'll head back there with Ali Velshi and Christine Romans to tackle the state of the economy.
And do us a favor, would you? Watch the president's speech on CNN at 9 p.m. Eastern. Listen for anything that makes you wonder how his ideas, rather, will affect you and your money, then e-mail us your questions as soon as you can. Just fire them off to CNNnewsroom@CNN.com. We'll get Gerri to answer them right here tomorrow.
We're being flooded from e-mails from folks expressing their concerns about the recession. In this one, Katherine wants to know, "Why are we allowing workers to come into the U.S. on visas when our unemployment is so high?" We're going to ask Vice President Joe Biden's economic policy adviser, Jared Bernstein. That's just ahead.
(COMMERCIAL BREAK)
PHILLIPS: Tough times on college campuses across the country. How to pay tuition when the money runs dry? Brook Bolduan is on the campus of Atlanta's Spelman College, talking to the students about their concerns.
(COMMERCIAL BREAK)
(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 and all, 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's done so far. I haven't seen anything that really makes me feel like that he is on the road to -- to helping unemployed people.
(END VIDEO CLIP)
PHILLIPS: Everyday folks just like you speaking out about their concerns in these tough times and what they want to hear from President Obama. The president will address their concerns and yours tonight in the speech to Congress. We're on top of all the issues all day, right up to our live coverage of the president's speech, starting at 9 p.m. Eastern right here on CNN.
Well, you've flooded us with e-mails about your concerns on the recession. Now a White House official to answer your questions. Jared Bernstein, the economic policy adviser to Vice President Joe Biden. We'll try to get him on at least weekly when we're able to get him -- get him to squeeze us into his schedule.
Jared, good to see you.
JARED BERNSTEIN, VICE PRES. BIDEN'S ECONOMIC POLICY ADVISER: It's a pleasure to be here.
PHILLIPS: All right. As you can imagine, we have been getting just a numerous amount of e-mails. I want to get right to it, if you don't mind, Jared.
BERNSTEIN: Please.
PHILLIPS: This on comes from Katherine: "Why are we allowing workers to come into the U.S. on visas when our unemployment is so high?"
BERNSTEIN: Katherine, we have international rules about who's allowed to come and who isn't. And we don't necessarily alter those rules based on the job market.
Now, there are a set of visas that are under this rubric called H1B, H12A. Those actually do get adjusted down in times of economic hardships. But remember, there are visas for family reunification. There's lots of reasons why we want to keep those borders open, but we do make some adjustments for the job market. And I think behind your question is that -- is that reasonable point.
PHILLIPS: All right, Jared. This one coming from Lisa: "I lost my job last year while the stimulus package is helping the newly unemployed with benefits and extensions. What is going to happen to the 3 million people who have been unemployed for a year?"
BERNSTEIN: Two points. And I am sorry to hear about your situation. That is a long-term spell of unemployment. And I just can imagine how difficult that is for you and your family.
Two things. First of all, one of the best things we can do for you is to help you get a job. And we believe this plan is going to create about 3 1/2 million jobs, and my hope is that you'll be one of those job takers.
But the other point is this. And this is maybe even more important to you. Extending unemployment insurance benefits is a key part of this plan. It helps people like yourself who may have already been on the program, but now may be eligible for a new extension. And we're increasing benefits, as well, to the tune of as much as $100 a month.
So what you ought to do is check with the unemployment insurance office and find out if you are eligible for a further extension under this plan.
PHILLIPS: All right. Then Jared, Norma from Idaho asks -- well, kind of makes a comment and then asks. "Our stupid congressmen, senators and governors think that they will turn down parts of the -- they will turn down parts of the stimulus. Please, President Obama, if these idiots turn it down, will you give the money to the middle class? We need the money on our level."
And the question of course, is that money redistributed, and how is it redistributed, Jared?
BERNSTEIN: Well, I mean, I guess what I heard from that question is some real frustration about some sort of political ideologues out there -- I guess she was using harsher language than I would -- who are turning down stimulus money, because they want to kind of make a political point or argue that there are aspects of the plan that they don't like.
I would argue that this is a really, really terrible time, much of the spirit of this -- of this question, to be not doing the right thing by folks who really need help right now.
There is -- there are so many components of this plan directed to help people suffering in the downturn. And to kind of get in between your constituents and the help that those folks need strikes me as a big mistake.
PHILLIPS: But Jared, where's this money go? If they don't -- if the lawmakers do not accept the money, do not take the money, where does that money...
BERNSTEIN: Well, there are good questions as to whether a particular lawmakers can block some these funds from getting in their states, and we're looking at those questions right now.
PHILLIPS: That's interesting. So even though they say they don't want the money, they're not going to take the money, would they be forced to take the money?
BERNSTEIN: I don't want to get ahead of that legal question. But there is a -- I believe there are ongoing discussions as to that -- as to whether or not we can get around that kind of a contingency.
PHILLIPS: Interesting. Well, that's something we'll definitely follow up on.
Deborah Marcketti is asking this: "I would like to ask President Obama" -- obviously we're asking you about it -- "a campaign promise that the president made. He said individuals not in retirement could take a one-time up to $10,000 withdrawal from a 401(k) plan without penalty, taxes or repayment. Is he still committed to that?"
BERNSTEIN: He's absolutely committed to that as part of a longer term pension reform agenda. Right now that's not going to be something that we're trotting out in our first -- what are we now? -- 30-something days.
But we do have some important components to help on this broad question of retirement insecurity, which is obviously such a great concern to so many people, many of whom have been hit by the stock market downturn, as well.
For example, folks are going to learn about a feature where you're automatically defaulting into your work place pension if your workplace offers one. It's not a matter of you having to sign up. The automatic default is actually -- accept that retirement plan. That's actually a really helpful change for people who may not really know or understand what the plan is about.
And then secondly, of course, we've got to create 3 1/2 million jobs. We have to help save or create jobs at the state level, extend unemployment insurance, you know, try to make the safety net a little bit more effective. There's the broader help-people-now agenda that's such a part of our package.
PHILLIPS: Jared Bernstein, sure appreciate you coming on and taking the variety of e-mail question from our viewers.
BERNSTEIN: My pleasure. I enjoy it.
PHILLIPS: Well, what would you ask the president? In keeping with his pledge to have the most open and accessible administration in American history, Mr. Obama welcomes your comments at the White House Web site, WhiteHouse.gov. But you can also e-mail us. What we've been doing, MailToThechief@CNN.com. We're going to actually take your questions. We have been already, e-mailing them to the White House. And then we hope to get answers from the White House, and we'll read them on the air.
Meanwhile, we have people like Jared Bernstein to join us live and answer them right there for you.
Well, 100 years after Geronimo's death, the famous Apache leader is at the center of a new battle.
(BEGIN VIDEO CLIP)
HARLYN GERONIMO, GERONIMO'S GREAT-GRANDSON: When you desecrate a grave of this nature, you know, you upset the spirits. And sooner or later, you know, the spirits will come after you.
(END VIDEO CLIP)
PHILLIPS: We're going to find out why Geronimo's family is suing the federal government, Yale University, and the school's secret Skull and Bones Society.
(COMMERCIAL BREAK)
PHILLIPS: A century after Geronimo's death, his family is fighting to get his remains back. They're suing the U.S. government, Yale University and a secret society at that school, saying the legendary Apache leader cannot rest in peace until the matter is resolved.
CNN's Deborah Feyerick has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Geronimo hanged for murder.
DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Just his name, Geronimo, conjures up images like these and an American legend: a fierce Apache leader and his warriors, greatly outnumbered, fighting off the U.S. cavalry in an attempt to save his people and their way of life.
EMIL HER MANY HORSE, NATIONAL MUSEUM OF THE AMERICAN INDIAN: They eventually surrounded and outmanned, outgunned. He is convinced to surrender.
FEYERICK: Geronimo died a prisoner of war, his body buried in Fort Sill, Oklahoma. Now, 100 years later, his family is suing to get his remains back.
GERONIMO: After a while, you know, it hurts you inside.
FEYERICK: Harlyn Geronimo is the warrior's great grandson. He and other descendants are suing Yale University and the secret society known as the Order of Skull and Bones, claiming Geronimo's skull was stolen back in 1819 by Yale students, members of the secret order. One of the alleged grave robbers: Yalie Prescott Bush, the father and grandfather of presidents 41 and 43.
GERONIMO: When you desecrate a grave like this nature, you know, you upset the spirits. And sooner or later, you know, the spirits will come after you.
FEYERICK: For decades members, called Bonesmen, dismissed the suggestion as a hoax. But a Bonesman's letter written in 1918, discovered two years ago at Yale, suggests otherwise. Quote, "The skull of the worthy Geronimo, the terrible, exhumed, now safe inside the T." "T" is believed short for the Tomb, the Bonesmen's private club.
UNIDENTIFIED FEMALE: I spoke with several Bonesmen, who told me that inside the tomb there is a glass display case containing a skull, and the Bonesmen have always called it Geronimo.
FEYERICK: Author Alexandra Robbins wrote a book on the secret order.
UNIDENTIFIED FEMALE: If it is found that Geronimo's skull is really in there, that's a crime.
FEYERICK: Geronimo's descendants have also sued President Obama and Secretary of Defense Robert Gates, hoping to recover Geronimo's remains at Fort Sill.
HER MANY HORSE: He died as a prisoner of war, so he was not free, and he was not free to be buried in the old customary ways that the Apache would have been buried at that time.
(END VIDEOTAPE) PHILLIPS: CNN's Deborah Feyerick joining us now live from New York.
Now, does Skull and Bones actually have the remains or not, Deb?
FEYERICK: Well, they won't say. We tried to call. They wouldn't answer our calls.
Yale, we did speak to the university. They said the university certainly doesn't have it and that they don't speak for the secret society. So right now nobody knows if, in fact, whatever skull might be in that private clubhouse is or is not Geronimo's.
PHILLIPS: OK, I want to know whose skull it is, then, if it's not Geronimo. That's like part two to your investigation, Deb.
Now, what are these Ivy League guys doing anyway, stealing things in the first place?
FEYERICK: You know, it's sort of like a fraternity ritual. These guys, these societies would try to outdo one another. Again, we're talking about 1918, around World War I. They would steal things. A couple of them happened to be posted at Fort Sill, where Geronimo is buried. And so whether they thought it was Geronimo's grave, whether they thought it was somebody else's, nobody knows.
But apparently, that's how, the legend goes, they came by this particular skull. They just happened to steal it, and they thought it was something cool to have. And then who knows what another society tried to steal?
PHILLIPS: So what were these Yale students doing at Fort. Sill in the first place?
FEYERICK: Well, that's the interesting thing, also. These were Ivy League guys who had enlisted to fight in World War I. So right now we're looking at it through the prism of history, which is if they stole it, clearly, it's a very bad thing. But back then, they were good guys just actually doing a prank. They'd even enlisted for the war. So you really have to look at this within the context as a whole.
PHILLIPS: Are you going to follow up on this story for us, because...
FEYERICK: We hope so.
PHILLIPS: ... it's very intriguing. OK, good. And then Deb, being the amazing correspondent she is, next hour you're actually going to join us from -- is it a job fair or a job bank where folks are lined up?
FEYERICK: It's a job fair, Kyra.
PHILLIPS: OK.
FEYERICK: And I have to tell you, we were there. The lines were around the block.
PHILLIPS: Wow.
FEYERICK: This is something nobody has seen before. And I think you're really going to be struck by the images that we're going to be giving to you.
PHILLIPS: Well, you're working double-duty for us. Deb, thank you so much.
FEYERICK: For you, any time.
PHILLIPS: Well, the best financial team on television now, CNN.com, and moments from now in the CNN NEWSROOM, Ali Velshi, Christine Romans and the state of the economy.
(COMMERCIAL BREAK)
PHILLIPS: Hello, everyone. I'm Kyra Phillips live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
Don't look for the Mardi Gras in Washington tonight. For his first address to a joint session of Congress, President Obama won't be letting the good times roll, though aides say he will assure us good times aren't gone forever. This morning the president commiserated with the leader of the world's second-largest economy, the Japanese prime minister. It was the first foreign head of government to visit the Obama White House.
And if you're near your computer, you can jump on CNN.com an be a part of a two-hour special with the CNN money team. Ali Velshi, Christine Romans actually hosting "State of the Economy." We join in, I guess you could say live, into their show right now. Tell me what you guys are talking about.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, you know, we have -- Kyra Phillips is actually here with us I think, right, Kyra? Are you there?
PHILLIPS: Can you hear me OK?
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Kyra?
PHILLIPS: I'm with you guys.
VELSHI: Kyra, are you there?
ROMANS: Hi, Kyra!
VELSHI: Welcome to our little world here.
PHILLIPS: Houston, we have a problem.
VELSHI: This is our first time here. We're hemmed in, and we don't really know where out is. But, you know, this show is not available on television. You can only watch us on CNN.com live. PHILLIPS: Or our show. Or our show.
VELSHI: And we're having undue amounts of fun. But the good thing about this, we're not hemmed in by the normal time constraints of being on regular television, so we're having these in-depth conversations and a few corny moments. Are we on television right now?
PHILLIPS: Yes, can you hear me? Yes, can you hear me.
VELSHI: This is really on TV? This isn't -- we're not -- this isn't just a little Internet chatter?
(CROSSTALK)
PHILLIPS: Ali, here is Kyra. Can you hear me?
VELSHI: I can hear you.
(LAUGHTER)
PHILLIPS: OK. So, are you messing with me right now? Is that what you're doing?
VELSHI: No. I don't have a monitor that shows what's going on, so I suspect that we are on really CNN right now.
PHILLIPS: Yes, you are live on CNN. I know that's new for you.
(LAUGHTER)
PHILLIPS: All right, let's get to the serious part of your show, huh, pal? "State of the Economy." What are the three of you talking about?
VELSHI: Well, we're talking about the fact that we're going to have this big discussion tonight. The president is going to be doing something that seems like a State of the Union address. Typically, that's left until at least a year after he's elected.
But it's going to be a sense of, what are we -- what is this economy going to do right now, and what plans has this administration got moving forward? And moving forward tackles things that are not immediate concerns. Some of them will be increases in taxes for a small proportion of Americans earning over $250,000.
Those Bush tax cuts that are going to expire, President Obama is going to let some of them expire. So, some people will pay greater taxes. He's going to cut the deficit that he has inherited in half. And that still -- I mean, that's a -- that doesn't take care of our deficit or our debt problems in the long run, and some people say even that modest goal is not strong enough. And others are saying, but this president needs some measurables. He needs to put some things out there that are will indicate progress. Roland Martin was just making that point. And then he's also going to talk a little bit about climate change, the idea of putting in what's called a cap and trade system. Now, this might happen tonight. This might happen on Thursday in the budget. There are some things that will happen in either one of those places. But you know, Europe has started implementing this, this idea that companies have to pay for the right to emit a certain amount of carbon dioxide emission.
And that is something that the government can also make on some money on. So, there's some sense on a long-term basis, spending less or raising more revenue. And then there will obviously the discussion that we all want, and that is the "how are we getting out of this mess right now," because we still happen to be in it -- Kyra.
PHILLIPS: All right, well, this is what we love about our technology, working live on CNN.com while you guys are streaming while we're live on the air on domestic. And we're figuring it all out. Meanwhile, Ali Velshi, Christine Romans, Gerri Willis right now, totally interactive on CNN.com. You can watch them. Also, we'll check in with them, too. Thanks, you guys, so much.
You can also stay interactive all the way until 3:00 Eastern, where Suze Orman will take your questions live and show you what to listen for in the president's address. It's all happening, as you can see right now, on CNN.com. It will continue throughout the afternoon.
(BEGIN VIDEO CLIP)
ANNA ABEDULLAH, LAID OFF FROM JOB: I couldn't tell her. How do you tell your child you can't afford the college that she wants to attend?
JASON CARROLL, CNN CORRESPONDENT: Do you remember sort of what the feeling was? I mean you're not going to have the exact words, but when your mom came to you and said, you know, we're going to have to re-evaluate this?
MIA SARAH ABEDULLAH, ANNA'S DAUGHTER: It was dream-crushing, kind of. She didn't want to disappoint me, but there's no way to not.
(END VIDEO CLIP)
PHILLIPS: The cold reality of the recession. A mother's pain at having to tell her daughter that she's been laid off and what her daughter's dream of going to any Ivy League university or a top-tier college. Mia Sarah Abedullah isn't alone, though. A national survey shows that just more than half the families polled are considering limiting their child's college choices to less-expensive schools.
Two key reasons. Well, fewer families can count on equity in their homes as a way to offset tuition, like many did just a few years ago. And in Mia Sarah's case, well, a parent loses her job.
Now, what if you're already in college? Where do you turn for help if money for tuition and other costs suddenly dries up? CNN's Brooke Baldwin is on the campus of Atlanta's Spelman College. Brooke, what are students most worried about and where are they getting their money?
BROOKE BALDWIN, CNN CORRESPONDENT: Kyra, it's actually quite sad to hear a number of students this morning saying to me they feel like such a burden on their parents because their parents are having to pay all of this in tuition as everyone is tightening their purse strings.
I want to show you, this is one page -- actually more like six pages, about 100 questions, a FAFSA, it's a Free Application for Federal Student Aid. And you can imagine with the recession, with the higher costs for higher education, more and more students are filling these things out, including Latorria Jones. Latorria here, she's a junior here at Spelman. She filled this thing out just last night, and tonight, Barack Obama, the president, will be speaking, addressing Congress, talking about his plans for the economy, and you will be listening, because why?
LATORRIA JONES, STUDENT, SPELMAN COLLEGE: Because I want hope. You know, I really hope and I pray and I want confidence in knowing that every student who continues their educational advancement has a promising future.
BALDWIN: You want a prompting future. Your future in terms of graduation right around the corner. The market right now, awful. When you look forward, what do you plan to do careerwise?
JONES: Well, I want to be able to know that I have stability as far as any industry that I plan to go with. I want to know that I'm stable and my future is promising, as I mentioned earlier. And if not, I also want to obtain my master's in computer science, computer engineering.
BALDWIN: So, essentially, that is your Plan B if you can't get a job.
JONES: Right. Yes.
BALDWIN: In terms of day to day, you work with scholarships, you have loans, what's the biggest challenge facing most students, would you say, in 2009?
JONES: Specifically paying their tuition and either receiving loans, you know, when they're graduating, the debt that they have to pay off once they graduate and receive their degree. You know, it's very, very detrimental to know that once you graduate, you're not sure or you're unsure of yourself on how to pay those loans.
BALDWIN: So, Latorria is looking for hope. I think a lot of students we spoke with today, Kyra, are looking for hope as well. And not just the students. Think about Spelman College here. They're having to -- the enrollment is down, the endowment is down because of the tumultuous market. So, a lot of people will be watching. They're cutting their budget next year by some $48 million. College communities across the country watching the president tonight to see what he'll say and what actions will (INAUDIBLE).
PHILLIPS: Wow, and Brooke, you meet, you know, so many young students. Their parents pay for their entire education, and then they don't do anything with their lives, you know? And here you see students like...
BALDWIN: Absolutely.
PHILLIPS: ... Latorria, who's totally focused, wants to go to school. I feel like I want to start a scholarship drive right now for her.
BALDWIN: I know. I met a young girl earlier today, Kyra, and this is her dream school. And she made it through one semester here at Spelman, and she's having to transfer because her parents cannot afford it. It's sad.
PHILLIPS: Yes, it is. We'll keep talking about it, though, and bring more attention to the issues. Brooke Baldwin at Spelman, there, thank you so much.
Well, with California burned by budget problems, a state lawmaker wants to grow revenues by legalizing marijuana.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We know that the marijuana industry probably nets in California alone $14 billion. That's billion dollars that goes up in smoke literally.
(END VIDEO CLIP)
PHILLIPS: Well, under the bill he's introduced, pot would be regulated, much like alcohol, legal if you're over 21 and taxed at $50 an ounce. A state agency found California could reap $1.3 billion a year from it. California was the first in the nation to legalize medical marijuana back in 1996.
Well, can booze sales actually boost the economy? Georgia, Connecticut and Indiana are the only states with a total ban on stores selling liquor, beer and wine on Sundays. Well, now some lawmakers are saying the time is right for a change. Supporters in Georgia say a lot of that business goes to other nearby states that allow Sunday sales. Critics say it's an attack on the Christian sabbath and fear it will lead to an increase in DUIs and deaths on the highway.
Protecting your health, the next big task on the president's agenda. We're going to be talking about it.
(COMMERCIAL BREAK)
UNIDENTIFIED BOY: Dear President Obama --
UNIDENTIFIED GIRL: Dear Barack Obama --
UNIDENTIFIED GIRL: Bravo, President Obama.
UNIDENTIFIED GIRL: Could you please fix the health care problem?
DALIA, FOURTH GRADE: I want people to live longer lives, and I know health care is an issue you would like to improve.
TRENT, THIRD GRADE: I want to you help kids with bad diseases and disabled children. Please, Barack Obama, help us.
JORDAN, FOURTH GRADE: We also haven't had our flu shots yet because we can't afford it. So, could you please fix that?
JADE, FOURTH GRADE; I think people should be allowed free health care if necessary because most people can't afford it.
PHILLIPS: Kids and adults have plenty of questions and worries about paying for health care in this country. Our senior medical correspondent Elizabeth Cohen in Washington today delving into some of the details in the new stimulus plan. What do you have for us, Elizabeth?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Kyra, in this big stimulus plan, there are a lot of health provisions that affect you an me an everybody else. They're very deep. There's a lot of legalese. So, I'm going to break it down for you.
Here are some of the things that this stimulus bill does for health care. There's about $19 billion for electronic medical records. So, those paper records your doctor probably has, in five years those will likely be gone, replaced with a computerized record. Also, $2 billion for community health centers. This, some people say, is extremely crucial. More and more people are losing their health insurance because they're losing their jobs. Also, $1 billion for prevention and wellness.
And also, $1 billion for something very interesting and very controversial. It has the boring name of comparative effectiveness research. But what it means, Kyra, is that they're going to spend money trying to figure out which treatments work best for which diseases. For example, doctors say that sometimes, there's a lot of treatments available for one disease, and they don't really know which one works better. They have to make kind of an educated guess. With this research, hopefully doctors won't have to make an educated guess. They'll actually know the answer.
PHILLIPS: All right, well, tell us more about this comparative effectiveness program, then, and how will it affect patients?
COHEN: OK, let's take an example of someone who has peripheral artery disease. This is a terrible disease. Eight million people have it. It puts you at a very high risk for having a heart attack or a stroke. Well, right now, doctors don't really know which is best, doing surgery or giving you medicine and letting you sort of wait and see if that works. It's not clear which is the better way to go. And hopefully, this research will help answer that question.
PHILLIPS: All right, what does the pharmaceutical industry think of it?
COHEN: They have some concerns about this legislation. Let's just put it that way. They're concerned that what's going to happen in the end is that the government's going to say, ah, treatment A is the cheapest. Let's go with treatment A because it's cheap. Proponents of this bill say that that is not going to happen, and they say that the pharmaceutical industry is just scared that some of their products aren't going to look very good.
PHILLIPS: All right, Elizabeth Cohen, appreciate you following it for us.
COHEN: Thanks.
PHILLIPS: Well, vitamins could help you see well into the future. In a New York study -- or a new study, rather, researchers found that women taking a combination of B6, B12, folic acid, it actually reduces their risk of age-related vision loss. Macular degeneration is the leading cause of blindness in older people. Nearly 9 million Americans have some form of it, and researchers actually say that B vitamins will lower the homocysteine levels in the blood which could damage the small blood vessels in the eye.
Learn how to chill if you want a healthy heart. Researchers at Yale University say that anger, stress and other strong emotions can trigger heart rhythm problems. Such changes can alter the electrical signature of your heart, causing it to beat too low or too fast or even skip beats. Cardiac arrest causes more than 400,000 deaths a year. So, we're all going to try not to be angry people.
Well, this is a lot of snow, even by New England standards. We're going to get the latest on the big storm-related power outages in the state of Maine. And we'll see what's happening across the country.
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PHILLIPS: Well, crews in Maine are working around the clock to get the power back on to tens of thousands of homes and businesses. A wind-whipped heavy snow on the state, snapping trees and power lines. And at one point, more than 140,000 people were actually in the dark. More than two feet of snow fell in parts of that state, and winds were as high as 65 miles per hour.
Well, Chad Myers is keeping track of what's happening right now from coast to coast. Chad, what's going on?
(WEATHER REPORT)
PHILLIPS: Well, when the owner of a floating marina heard some strange popping noises, she got a sinking feeling, mostly because she was sinking. Her barge on the Ohio River started taking on water yesterday. The woman and a couple other people who live on top of the marina, which houses a Cajun restaurant, well, all of them made it off safely. And the owner vows that her barge shall float again.
Guess you really don't need the sound. It's spooky enough just looking at the video. Remember that? That was 1963. Alfred Hitchcock's birds were menaces. And luckily the crows that invaded Bethlehem, Pennsylvania, well, they're just mooches. Residents are used to this huge flock of winter visitors by now, but still find them a little eerie, too. Messy also.
But hey, it could be worse. Crow colonies can be anywhere from a couple hundred to a couple million.
And a Kansas mom picked a really good time to pull her baby son out of this bed. Minutes before three guys fell through the ceiling right on top of the baby's bassinette. Well, the guys were apparently hiding from the cops in the attic. They ran out of the house and of course were arrested, thank goodness. Baby Marcus (ph) is only two weeks old, and like his mama said, he just got here. It's not his time yet.
And are foreign investors capitalizing on the misfortunes of American homeowners? We're going to find out what's going on from CNN's Emily Chang in Beijing.
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SIMON, IREPORTER: I remember in the '80s when we were having our economic nightmare, there was the Made in the USA campaign, like, everybody wanted to buy American. And now you can't even find products that are American. You find shoes. I went shoe shopping the other day, and I went specifically looking for shoes that were made in the U.S. so I could put money back in the U.S. even shoes that said made in the USA, on the bottom of the tag, it says, some parts assembled in South America.
(END VIDEO CLIP)
PHILLIPS: Well, outsourcing, that's a big reason that many shoppers have a hard time finding that Made in the USA label anymore. And that's frustrating to many folks, as you heard iReporter Simon from Orlando, Florida. Simon, thanks for sending that in.
Well, some Chinese house-hunters are taking advantage of the foreclosure crisis here in the United States. And they're looking for some pricey properties on the cheap. More now from CNN's Emily Chang in Beijing.
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EMILY CHANG, CNN CORRESPONDENT (voice-over): At the Beijing airport, 40 Chinese investors embark on a mission to open their wallets on the other side of the world and buy a house in the United States.
YIN GUOHUA, INVESTOR: (SPEAKING FOREIGN LANGUAGE)
CHANG: The price is right, says lawyer Yin Guohua. For him, it will be a home away from home. A place to stay on business. And quite simply, an opportunity to get a deal.
UNIDENTIFIED FEMALE: (SPEAKING FOREIGN LANGUAGE)
CHANG: It sounds cheap, says this businesswoman, but I'll have to see it with my own eyes.
Their journey will take them on a tour of bargain and foreclosure properties from L.A. to Las Vegas, San Francisco, Boston and New York. Yin says he's been watching the U.S. housing market for two years. He's willing to spend up to $1 million and pay it all at once.
YIN: (SPEAKING FOREIGN LANGUAGE)
CHANG: This could be a positive stimulus for the American economy, he says. He's a family man who already owns three properties in Beijing. Our son will have a place to stay when he goes to America for school someday, his wife says.
(on camera): The house-hunting trip is being run by a Chinese real estate brokerage, soufun.com. The company says it receives hundreds of applications for just 40 spots from Chinese eager to invest overseas. But it's raised questions. Are the Chinese capitalizing on the misfortune of Americans in the subprime mortgage crisis? And is this the start of a dangerous flow of capital out of China when China's own economy is slowing down?
VINCENT MO, SOUFUN.COM CHAIRMAN: This is still a very, very small fraction of the purchasing power here in China. So, I don't think, you know, this, you know, small group of people, because of their personal interest, or their, for whatever reason, is going to affect China's demand for properties.
CHANG (voice-over): Foreigners can buy property in the U.S. under fairly simple guidelines. They may have to make a bigger down payment or pay more taxes. And investment experts say China's restrictions on transferring money out of the country are relatively easy to navigate. Yin has his eyes on a few homes in New York and L.A., but like any smart investor, he says he won't make a deal unless it's a good one.
Emily Chang, CNN, Beijing.
(END VIDEOTAPE)
