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Examining the President's Speech to Congress and the GOP Response; Nine Reported Dead in Turkish Airlines Crash; President Obama Nominates Gary Locke as the New Secretary of Commerce; How to Reduce Your Debts and Avoid More
Aired February 25, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: It is Wednesday, February 25th, and here are the top stories we're following for you in the CNN NEWSROOM. Did he give Americans hope during a time of crisis? The president's speech. We will gauge his message and tone with your CNN iReports. Crash in Amsterdam. An airliner misses the runway and breaks apart in a muddy field. Many of the passengers walked out unhurt.
"BLACK IN AMERICA," the groundbreaking CNN series returns tonight. A live preview with host Soledad O'Brien.
Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.
First, it was Bill Richardson, then Judd Gregg. And now, President Obama is announcing the nomination of former Washington Governor Gary Locke to be his commerce secretary. Will the third nominee be the charm? You will see the president's announcement as soon as we get the video into the CNN NEWSROOM.
"We will rebuild. We will recover." The words of President Obama last night, a message of hope to Americans reeling from the recession. Addressing a joint session of Congress, he promised to stabilize the banking system while holding banks accountable for taxpayer dollars.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Now, I understand that on any given day, Wall Street may be more comforted by an approach that gives bank bailouts with no strings attached and that holds nobody accountable for their reckless decisions. But such an approach won't solve the problem. And our goal is to quicken the day when we restart lending to the American people and American business and end this crisis once and for all.
And I intend to hold these banks fully accountable for the assistance they receive. And this time, they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer.
(APPLAUSE)
This time, this time CEOs won't be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over.
(APPLAUSE)
(END VIDEO CLIP)
TONY HARRIS, CNN ANCHOR, NEWSROOM: Well, the Republican response to the president took aim at the $787 billion stimulus package. Speaking for the GOP Louisiana Governor Bobby Jindal called the plan irresponsible. But Jindal also urged Republicans to find common ground with the president whenever they can to help struggling Americans through difficult economic times.
(BEGIN VIDEO CLIP)
GOV. BOBBY JINDAL (R) LOUISIANA: We're now in a time of challenge. Many of you listening tonight have lost jobs. Others have seen your college and your retirement savings dwindle. Many of you are worried about losing your health care and your homes. You're looking to your elected leaders in Washington for solutions. Republicans are ready to work with a new president to provide these solutions.
(END VIDEO CLIP)
HARRIS: Bill Richardson bowed out because of a Federal investigation. Judd Gregg, a Republican, cited irresolvable conflicts with the president's policies, so that brings us to Gary Locke's nomination, Gary Locke.
White House correspondent, Dan Lothian is on the phone with us. And Dan, maybe we can start with who is Gary Locke and how did he end up being the choice?
DAN LOTHIAN, CNN CORRESPONDENT: Well, I can tell you this, that Gary Locke is the former two-term governor of the state of Washington, Tony. And it's unclear how he initially came to the attention of this administration. But he is from a western coastal state that's involved in a lot of trade issues. It's also home to Microsoft, Boeing. They have a lot of apple farmers in the state of Washington. So trade issues, you know, certainly key for that part of the country. And so it would make him a good choice for Commerce secretary.
We are, by the way, in the Indian Treaty Room, which is not essentially in White House. It's right across from the White House, in the executive building, waiting for the president to come out and announce Gary Locke as his nominee for Commerce secretary.
But certainly, the administration is very happy to finally fill this role, as you pointed out, Tony. Governor Bill Richardson was first up, and had to bow out of that. There was this investigation, a Federal investigation, into companies that had done business in his state and he thought it would be a distraction, so he bowed out.
And then Senator Judd Gregg earlier this month, obviously, saying that he couldn't -- there were too many differences between Republicans and Democrats for him to be part of this administration. So the White House is really -- they spent time vetting Governor Locke. They spent a lot of time really, you know, trying to get all of the details that they could, so that they could roll this out without any problems this time around, really hoping that third time here Tony, is a charm.
HARRIS: OK, our White House correspondent Dan Lothian for us. Dan, appreciate it, thank you.
LOTHIAN: OK.
HARRIS: And let's get to the New York Stock Exchange right now. Susan Lisovicz is there. And Susan, maybe you can help us better understand who Gary Kocke is, the former governor of Washington state and why he's the choice for commerce secretary.
SUSAN LISOVICZ, CNN CORRESPONDENT: Actually, I was going to talk to you about why the market is selling off, Tony.
HARRIS: Well, you know what, that sounds like a better plan. At least it is a plan.
LISOVICZ: Well, you know, it was interesting, because, you know, we were just talking about, you know, the president, his efforts to cheer lead the public in saying, hey, you know, we're in a tough time right now, but we are going to recover, better days are ahead of us and why the market is selling off, Tony.
You know, some of the things that I'm hearing is that, you know, we got the Bernanke bounce yesterday, because the Fed chairman was -- details specific. There was Q and A and he was talking, giving specifics, albeit with caveats that yes, the recovery could begin next year, if the financial markets stabilize. That's a very big if and that a full recovery will take two to three years. The president gave a speech, talks about how things will be, how good things will eventually be.
But, you know, some of the other things was, you know, the complaints here on the Street is that a conceptual speech, short on details. And another thing that traders said to me, veteran traders said, it's the old liberal wish list of spending. And not only talking about stabilizing the banking sector, but talking about education and health care and energy, and these are all valid things. But we're in a crisis right now. There is no question about it. And, you know, we're seeing evidence of that every day.
HARRIS: Yes.
LISOVICZ: Tony.
HARRIS: All right. Appreciate it Susan, thank you.
LISOVICZ: Thank you.
HARRIS: You know, we are following a developing story out of Amsterdam, a Turkish airliner carrying 134 people crashed in a field near the city's airport and broke into three pieces. At least nine people reported dead, 50 others hurt. But many passengers walked away amazingly.
CNN's international correspondent Jim Bittermann is on the line with us. And Jim, I know in the early stages of an investigation we have more questions than we have answers.
JIM BITTERMANN, CNN INTERNATIONAL CORRESPONDENT: Well, exactly, Tony. (AUDIO GAP)
HARRIS: All right. Why don't we do this? Jim is on the line with us and we are clearly having some problems with the signal. We'll get back to Jim in just a couple of moments.
You know, you have plenty of questions about how to make it through these difficult financial times. Our chief business correspondent, Ali Velshi is on CNN radio right now and he joins us next in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: And new video we want to show you.
The president and the vice president, just moments ago, heading over to the Eisenhower executive office building where President Obama in just a couple of minutes is said to announce his latest nominee for commerce secretary, his choice. According to everything that we have been informed of from two senior administration officials will be former Washington Governor Gary Locke.
When we get the tape of that event, we will turn it around and bring it to you here in the CNN NEWSROOM.
As we told you just moments ago, we're following a developing story out of Amsterdam. A Turkish airliner carrying 134 people crashed in a field near the city's airport and broke into three pieces. At least nine people reported dead, 50 others hurt. But amazingly, many of the passengers simply walked away from this.
CNN senior international correspondent Jim Bittermann, I believe we have a better connection with Jim now. He is on the line with us and Jim, we were talking a moment ago about there being so many questions at this stage, this early stage of the investigation. But miraculously, it must be noted, so many passengers walked away with minor injuries.
BITTERMANN: Yes. In fact, Tony, the Turkish transport minister said it was a miracle that more people weren't killed in this crash because the plane went down in a muddy field, about 500 yards short of the runway at Schiphol airport and that muddy field may have helped somewhat, because it may have cushioned the landing a little bit.
Passengers that came off the plane said there were a number of them that walked away from it, basically said that there was no indication of any problem at all. There was just the normal seatbelt announcement, beginning the landing, and then the next thing they knew they were on the ground in a muddy field.
The -- one of the things that the investigators are going to have to be looking at I think are the engines, the engines separated from the aircraft. There's an investigative team from the National Transportation Safety Board in the United States, by the way, on the way with officials from General Electric and Boeing, makers of the aircraft and the engines. So they'll be taking a close look.
This is a relatively new aircraft. It was built in 2002, 737, built in 2002, and just had a major maintenance inspection on December 22nd, so just two months ago. So from a mechanical stand point, it looks like the plane was in pretty good shape. The pilot, according to -- according to Turkish Airways, was one of the more experienced pilots they have, former Air Force pilot named Hassan Tuckson and there were two other pilots on board the plane.
So I think the investigators will have a lot of people at least to talk to and be interested in talking to them, find out exactly what went wrong here.
HARRIS: Yes, I think you're right.
All right, Jim Bittermann on the line with us. Jim, appreciate it. Thank you.
BITTERMANN: You bet.
(BEGIN VIDEO CLIP)
BRAD STRAIN, UNEMPLOYED: It's one thing to lose your identity in the work force in the community. But when you start to lose your identity as a father or provider or husband, that really becomes really difficult.
(END VIDEO CLIP)
HARRIS: The heartache palpable, Brad Strain of Minnesota lost his job eight months ago. He says he is afraid to leave the house, because he might miss a call from a potential employer. His savings, gone and he is paying the mortgage with his daughter's college fund. Man.
The president's speech to the nation. Mr. Obama, tried to convey the gravity of the financial crisis, yet at the same time, give Americans a confident Reaganesque pep-talk. Did he pull it off? Let's talk to chief business correspondent for CNN Ali Velshi. He's on the radio right now. Ali, good to see you, sir.
ALI VELSHI, CNN CORRESPONDENT: You too, my friend.
HARRIS: Let's talk through this a bit. How do you think the president did in that balancing act we mentioned just a moment ago? Optimism on one hand and then on the other hand, talking us through the hard-core realities of our situation.
VELSHI: Yes, look. There are a couple things here. One is, I went into that, you know, obviously being worried about the things of the moment, the markets and what they're doing and I was hoping for some detail about how we're going to deal with the financial sector. We didn't get any of that detail.
But at the same time, what he did is he took us out of the worries of the moment and discussed what this country is going to look like several years down the road based on things that we talked about before this financial crisis set in. An energy economy, better health care, stronger education, dealing with cap and trade, which is a way to deal with carbon emissions and help the environment. And I thought there was something creative about going outside of the president saying, you know what, we got big plans. We need to actually deal with those, too.
So some of the criticism is he didn't deal enough with enough specifics about the mess that we are currently in. And but at the same time, he has really worked hard in the last couple months at making America realize how dire this financial situation is and I think yesterday you saw a bit of a turn. You saw the, OK, we got it under control, we know how to fix this, we're going to fix it, it's going to take a big effort.
So I think it was quite an interesting balancing act. Generally speaking, I think he did well on it.
HARRIS: So Ali, the president said your money is protected in your banks. Is he right on that point and then I've got a follow for you.
VELSHI: Yes, your money is protected if it's a deposit. That's the beauty of the FDIC. In all of this financial crisis, it's the one thing that has worked. For all these banks that have shut down and there aren't a ton of them, but there have been some. The banks usually shut down on a Friday. That's the way the government works. By Monday morning, you can go and get all your money. Nobody has lost an insured deposit ever since the FDIC was created.
So, yes, if you have money in a deposit, a money market deposit, a money market mutual fund or a CD, you're safe.
HARRIS: And yet we know that many of the banks are undergoing stress tests. I believe they start today. And first of all, explain what a stress test is for a bank. It's not putting a bank on a treadmill. What is it?
VELSHI: But it's very similar. It's a simulated accounting treadmill. That's what it is. It's the -- way that you go through what would happen to this bank in a worst-case scenario. One of the things that we haven't done in this society is looked at a worst-case scenario and we're almost in it at this point economically.
So they're taking the major banks and they're putting them through this worst case scenario, what happens if this happens, if this happens, if this happens, will this bank survive? If it won't, that is going to inform the government about how much they should intervene with that particular bank. So they're being more scientific and more mathematical in their approach to who gets help and who doesn't. It is really the accounting equivalent of a stress test that you would get at a doctor.
HARRIS: Yes, let me read something to you. This is a bit of analysis of the speech from Joseph Stiglitz and I know you know who is, an economics professor at Columbia.
VELSHI: He was with us last night.
HARRIS: Yes and you'll probably recall what he said. He talked about a new credit facility, referring to the president and his speech.
One of the interesting things I think about, he talked about $700 billion in TARP money we put into the banks. If we created a new bank, leveraged it 10-1, we would have had $7 trillion of credit more than the country needs by far. Is he right in that kind of analysis and would it have been a good idea for President Bush and Treasury Secretary Paulson to have thought about as a strategy? It's an idea that I continue to hear even today.
VELSHI: Yes. I mean, I think Joseph Stiglitz is a really, really, very smart guy. But there's a lot of would haves. There are a lot of things that we should have and would have done differently if we were on to it. I mean one of the problems you will recall, Tony, one year ago is our administration was not admitting that things were as serious as they are, even though we had evidence that it was. So that's why I'm a very big fan of everybody in the administration, always saying exactly how things are. And people criticize us in the media for saying you're talking the whole thing down.
But the bottom line is, if you know how serious it is, you can take the evasive action that you should have, which is what Stiglitz is talking about. But we weren't really fully engaged in knowing how serious this whole thing was until Bear Stearns fell and then Lehman Brothers fell and then we had a fallout credit crisis. So, yes, he could be right. You would have to go back and sort of run one of these stress tests and see what would have happened if that had been the case.
But this a lot of experimentation. We're in uncharted territory. This government is trying things and when we see something working, I think you'll see more emphasis put on that and less emphasis on the things that aren't working.
I think one of the things that we got out of last night's speech is we're going to have to try and we're going to have to get through it, but will we get through it ultimately. It is only money. It's not a virus that's catching up to us and that we don't know how to cure.
HARRIS: Ali, appreciate it. Good to see you. Thank you. Thanks for the analysis.
VELSHI: You too, my friend. HARRIS: You have heard it said, we are a country of debt. Are you managing yours or is it controlling you? Personal finance editor Gerri Willis has her top tips, next.
(COMMERCIAL BREAK)
HARRIS: American household debt has doubled in the last decade to $14 trillion. Man, one silver lining of the financial crisis, debt levels began falling for the first time ever last summer. You can make it happen at your house. Gerri Willis is CNN's...
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I love that.
HARRIS: .. . personal finance editor.
Gerri, good to see you. Hey, we want to do this. Want to save a little bit more. We certainly want to reduce the debt levels here. What's the first step?
WILLIS: Well, you know, first let's start with the stats, because they're scary. Debt is nothing new to most of us. In fact, the losses in the stock market and falling home values, if you combine those two things, they were more than most people's salary last year. That's according to Standard & Poor's.
Get a handle on your debt by determining whether your debt problem is just run of the mill or out of control. One signal that you have too much debt is that you borrow from one credit card to pay off another credit card, bad habit. You can only make minimum payments on your credit card. You don't know how much total debt you have. If you have the above problems, that describes you, it's time to get help.
HARRIS: Hey, Gerri, reducing debt is fine. But how do we go about eliminating debt?
WILLIS: You have to make it a priority, Tony. You know, if you have credit card debt, pay off the one with the highest interest rate first. You have heard me say that. Always pay more than the minimum payment, even now, even though they have increased them.
You also have to cancel any spending that isn't essential and put it towards paying down those credit cards. Practice some tough love here. You have special channels beyond basic cable, get rid of them. Reevaluate your gym membership. It's time to get serious, drill down, pay off some of this debt, because it is strangling you.
HARRIS: Wow, are there other ways to leave the debt behind, Gerri?
WILLIS: Well, stop hemorrhaging money. You know how it is. You feel like you've got holes in your pocket sometimes, right?
HARRIS: Yes, it's true.
WILLIS: All right, well, stop paying things like courtesy overdraft fees that your banks charge. They're 20 bucks to 35 bucks. If you just link your savings account to your checking account, you won't face that.
Better off, don't bounce checks. You need to know how much money you have in your checking account. You can set it up so you get it on your cell phone so you know when you're stroking that check that you have the money to cover it.
Also, think about out of network ATM fees. They're brutal these days, ridiculous. Don't pay those. Use an ATM inside your system, inside your network.
And read the fine print on your credit card. You know this. Since interest rates are rising, balance limits are declining. If you're not careful, you mess up, you'll have fees, higher costs, you want to watch that.
HARRIS: And Gerri, one final question. I'm doing the best I can, I'm a little behind, but I'm working really hard, I'm trying to reduce this debt level as best I can, but I've got a debt collector hounding me. Any help here, any advice?
WILLIS: Yes. Now listen up. This is critical. If you are being asked to pay a debt you don't owe, you have to write a letter stating the facts. This will force the debt collector to investigate and clarify the debt. Remember, you know there is a statute of limitations on debt? It's seven to 10 years. It differs state to state, check your state attorney general's office to see what the rules are. If you pay even a dime on debt that's aged, that's old, the remainder of that bill is due and owe and you need to know that That's critical information.
And, of course, I'm going to be taking your questions, your economy questions, about the president's speech last night later this afternoon. Send your e-mails to me at cnnnewsroom@cnn.com. I want to answer your questions here. I know you have them. It was a fantastic speech, raising lots of questions, lots of interesting conversation today.
HARRIS: I've got to tell you, I think we're great together, you and Kyra together answering these e-mails. You guys are awesome. That's 1:00 and you're going to be in both hours, 1:00 and 2:00 p.m. Eastern?
WILLIS: I'm coming back. You know how this is, Tony, you get started and you get more and more questions and you really want to get to them, talk to people about what their concerns are. So we'll be talking all about it. CNN NEWSROOM at cnn.com if you missed it.
HARRIS: Nice. All right Gerri, appreciate it, thank you.
WILLIS: My pleasure.
HARRIS: And cnn.com has advice and answers. Just check out our special report, "America's Money Crisis." We update this all of the time, cnnmoney.com. Your money, your credit, your banks. President Obama talked about all these and how to get the nation back on track. Your response to him is next.
(COMMERCIAL BREAK)
HARRIS: Still on Wall Street, we saw the Dow and S&P 500 year 12-year lows early this week and now a new report shows home sales have followed suit. That's not good news at all here. Susan Lisovicz is at the New York Stock Exchange.
Hello again, Susan.
LISOVICZ: Hello, Tony.
Wall Street was expecting a positive home sales report. Imagine that, but instead, we got the opposite. And while stocks are selling off, existing home sales that brought us part of the housing market fell to a 12-your low last month. Even low prices aren't helping to lure buyers. The median sale price plunged nearly 15 percent to just under $200,000. We haven't seen prices that low since 2003. A buying opportunity, mix that in with a drop in bank stocks and well, you could see there is a buying opportunity on Wall Street, but, well, not today.
The Dow right now off 127 points or 1.75 percent. The NASDAQ is down 1 2/3 percent, but Ford shares are up five percent. The auto makers top two executives, CEO Alan Mulally and Executive Chairman Bill Ford are taking 30 percent pay cuts. Mulally took home $2 million in salary last year, not including any bonuses. Meanwhile, salaried workers and senior executives won't be annual performance bonuses for the second year in a row and the AP is reporting that Ford will again offer buyouts to all of its 42,000 hourly workers. Lots of changes -- Tony.
HARRIS: All right. Susan, thank you. See you next hour.
(BEGIN VIDEO CLIP)
OBAMA: Nearly a century after Teddy Roosevelt first called for reform, the cost of our health care has weighed down our economy and our conscience long enough. So let there be no doubt. Health care reform cannot wait. It must not wait and it will not wait another year.
(END VIDEO CLIP)
HARRIS: President Obama vowing quick action to reform the nation's health care system in last night's speech. He says his budget due out tomorrow includes a down payment on health care coverage for everyone. The question now, will President Obama get Republican cooperation as he tries to reform health care?
Our John Roberts took up that issue with Senator John McCain this morning.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR: On this issue of health care, do you think that he can get reform done within the next year and what about this idea of his campaign promises, of universal access to health care in this country? Is that something that you could sign on to?
SEN. JOHN MCCAIN (R) ARIZONA: I think that we should sit down and negotiate Republicans and Democrats in the administration and that we can achieve health care reform in America. Yes. I do believe, if we do it in a truly bipartisan basis, sitting down across the table from one another, not the way that this, quote, stimulus package was done.
(END VIDEO CLIP)
HARRIS: And speaking for the GOP, Louisiana Governor Bobby Jindal said Republicans want universal access to affordable coverage, but not universal government-run health care. He made it clear that the Republican Party will stand its ground.
(BEGIN VIDEO CLIP)
GOV. BOBBY JINDAL (R), LOUISIANA: All of us want our economy to recover and our nation to prosper. So where we agree, republicans must be the president's strongest partners. And where we disagree, republicans have a responsibility to be candid and offer better ideas for a path forward.
(END VIDEO CLIP)
HARRIS: Some analysts say the president gave Americans the audacity to hope again. His message of optimism follows his criticism and dire warnings about the economy.
With me to drill down on the president's speech, he was here yesterday with us, good of him to come back again, Professor Thomas D. Boston, from the Georgia Tech Department of Economics.
Danny, good to see you again.
PROF. THOMAS "DANNY" BOSTON, GEORGIA TECH, DEPARTMENT OF ECONOMICS: Great. Thank you.
HARRIS: What did you think of the speech last night?
BOSTON: I thought it was awesome.
HARRIS: Awesome?
BOSTON: Yes, awesome. Awesome. It was...
HARRIS: I'm not going to let you get away with awesome. Come on now.
BOSTON: Awesome. All right. Well done, how about that? Let that be more balanced.
OK. Here's the thing. As I listened to the speech, and thought about what happened the week before, all of the pieces fell in place. Because he's running the economy - I mean, running the country as a CEO would run a corporation. Meaning that he has a mission outlining the - he wants to make us more competitive. That's at least a vision. His mission to get there is to improve energy efficiency, health care, education.
HARRIS: Oh, I see what you're saying. Yes.
BOSTON: And then he's got this strategy, meaning that he's addressing all of our short-run problems in a way to fulfill the long- run vision. And so this - and when you see all of the things that he's done in the stimulus package and now also saying in the budget, that reflects his vision. So, all of these things are all falling together.
HARRIS: I see what you're saying. How did the president do in balancing the optimism that many felt was required in his speech with the sort of hard-core reality of our situation right now?
BOSTON: I think he did a good job. I think that in order to get the stimulus package passed, he had to give the dire warning and the consequences of not acting. Now he's gotten that passed and it's time to talk about what it can do and how we need, as a country, to join in and make that a reality.
HARRIS: Could he have been as optimistic as many say he was in parts of the speech last night, while he was fighting to get the stimulus bill passed? As some have suggested, if he were more optimistic, he wouldn't have been able to get it passed.
BOSTON: I agree. I don't think he could have gotten it past. I think you have to really lay out the consequences of inaction. And in laying out the consequences of inaction, that allowed then him to rally the forces in order to get that passed.
HARRIS: You know, the president said institutions like yours, Georgia Tech, can be incubators for ideas to help us get out of this recession. Do you believe that to be the case?
And I'm wondering, are you seeing things on campus there at Georgia Tech that indicate to you, the possibility even, of future applications to help us down the road to get out of this situation that we're in right now?
BOSTON: The future is in entrepreneurship, and particularly in small business entrepreneurship. We, of course, do a lot of that at Georgia Tech, as well as other universities across the country. But that's the real key. And the extent to which you can get young people involved in innovation and entrepreneurship and starting small businesses, is the extent to which the country can secure its future.
HARRIS: Well, here's a bit of analysis from - of the speech from Joseph Stiglitz. I believe you know he is, he's a Nobel prize economist, and let's talk about what he has to say about it.
(BEGIN VIDEO CLIP) PROF. JOSEPH STIGLITZ, COLUMBIA UNIVERSITY: He talked about a new credit facility. One of the interesting things, as I think about it, talked about $700 billion in TARP money we put into the banks. If we agreed to the new bank, levered it 10-1, we would have had $7 trillion of credit. More the country needs, by far.
(END VIDEO CLIP)
HARRIS: Is the economist accurate in that analysis? Should President Bush and Treasury Secretary Paulson have thought about it the idea, maybe instituted the idea of creating a new bank and capitalizing it at the levels suggested by the professor? Would that have been a better way to go? I'm still hearing that that should be on the table as an option even right now for President Obama.
BOSTON: Yes, I think the real solution is somewhere in between. In other words, there is the stress test coming, starting today. All right, banks that fall low in regards to the stress test, then you can have such a fund to either recapitalize them or allow them to continue to be viable.
HARRIS: One final question: Do you believe - some are suggesting the president may be too tough on Wall Street last night. Do you believe that? And how good a job did the president do in sort of capturing the mood of people around the country, and some of the outrage towards some the dealings from Wall Street?
BOSTON: I think he's captured the mood and the sensitivity. People have to make enormous sacrifices.
I think, also, that in dealing with Wall Street, the thing that he's doing is he's imposing transparency in regards to regulatory actions and dealing with Wall Street going forward. And so I think that he did a good job with that.
HARRIS: That's awesome. Good to see you. Thanks for your time again.
BOSTON: All right, thank you.
HARRIS: And we'll talk again real soon.
BOSTON: OK.
HARRIS: All right, next hour in the NEWSROOM, I will talk to two homeowners who are fighting foreclosure, and find out what the president's speech offered them. One is from Houston, where the recession is hurting her small business; the other, an unemployed blogger from New Jersey.
President Obama stepping up to the podium to introduce his latest choice for the commerce secretary. And we should be getting that tape shortly. And when we do, we will certainly turn that around for you here in the NEWSROOM. We were about a minute away, and our understanding is - should we just sort of see - let's try to get there. The president expected to announce in just a couple of moments that he will nominate former Washington State Governor Gary Locke to be his commerce secretary.
Dan Lothian is standing by.
And Dan, we asked the question just a couple minutes ago and tell us again about Gary Locke and why the president has tapped him to be his commerce secretary.
LOTHIAN: That's right, Tony. And, yes, the question you posed was, you know, why - what brought him to their attention? And I did reach out to a senior administration official, have not got an answer on that.
But what I did point out, you know, Mr. Locke comes from a state - a former two-term governor of the state of Washington. This is a coastal, western state that is involved with a lot of trade issues, so would make him ideal for a job like commerce. He's done a lot of work with China, and you have, you know, Washington State is the home to companies such as Microsoft, Boeing, and also, you know, they have apple producers there. So that's - here we are getting the tape now.
Let's take a listen.
OBAMA: ... on which we accept the responsibility to act boldly and wisely to confront the extraordinary challenges of our times, put people back to work doing work America needs done and laying the foundation for America's growth and prosperity.
Today, I'm pleased to announce that I'm filling out my economic team with a man who shares that vision, and will play a key role in carrying it out as my secretary of commerce, Governor Gary Locke. Now, I'm sure it's not lost on anyone that we have tried this a couple of times. But I'm a big believer in keeping at something until we get it right. And Gary is the right man for this job.
Sometimes the American story can be told in the span of a single line. More than 100 years ago, Gary's grandfather left China on a steamship bound for America. He had no family here. He spoke no English. He found work as a servant and purpose in (INAUDIBLE). He raised a son, Gary's father, who would go object to fight in World War II, return home and open a grocery store and later raise a family of his own.
And Gary didn't learn English until he was five, but he earned the rank of Eagle Scout, worked his way through Yale University with the help of scholarships and student loans, and got a law degree. He returned to Washington state and served as a prosecutor, a state representative, chief executive of one of the most populous counties in the United States, and finally as governor in the state capitol building not one mile from the home where his grandfather worked as a servant all those years ago.
So Gary knows the American dream. He's lived it. And that's why he shares my commitment to do whatever it takes to keep it alive in our time. Because somewhere in America, another small business owner is hard at work on the next big idea and dreaming big dreams for his grandchild. A scientist is on the cusp of the next break-through discovery. An entrepreneur is sketching designs for the start up that will revolutionize an industry.
Our economic crisis has put these plans at risk, but it has not dimmed the dreams that inspired them. And that's why we've put a recovery plan into action that will save or create 3.5 million jobs over the next two years. That's why the vast majority of these jobs, 90 percent, will be created in the private sector. Because we know that business, not government, is the engine of growth in this country. It is entrepreneurship and industry that are the well springs of the economy that has been the greatest force of progress and prosperity in human history. It is America's workers and businesses that employ them that will determine our economic destiny.
It is the task of the Department of Commerce to help create conditions in which our workers can prosper, our businesses can thrive, and our economy can grow. That's what Gary did in Washington state, convincing businesses to set up shop and create the jobs of the 21st century. Jobs in science and technology, agriculture and energy. Jobs that pay well and can't be shipped overseas. That's what he did by establishing favorable markets abroad, where Washington state's businesses could sell their products. That's what he did by unleashing powerful partnerships between state and local governments, between labor and business, all with an eye towards prosperity and progress for all those in his state who had dreams of their own.
So, Gary will be a trusted voice in my cabinet, a tireless advocate for our economic competiveness and an influential ambassador for American industry who will help us do everything we can, especially now, to promote our industry around the world. I'm grateful he has agreed to leave one Washington for another. I'm looking forward to having him on my team as we continue the work of turning our economy around and bringing about a stronger, more prosperous future for all Americans.
Ladies and gentlemen, I want to introduce to you an outstanding public servant, somebody I'm certain will be a great secretary of commerce, Gary Locke.
(APPLAUSE)
GARY LOCKE, COMMERCE SECRETARY NOMINEE: Thank you, very much, Mr. President. I'm truly humbled and honored to be asked to join your economic team and to serve as secretary of commerce.
As I flew across the country yesterday from Seattle, I saw the cities and farmlands of America below me. And I thought of all those businesses, small and large, that are struggling. Struggling to meet payroll, struggling to provide benefits to their employees, wondering about their future and viability as companies. Most of all, I thought about all those families in those communities who are hurting and worried about their future.
Mr. President, I know you hear their concerns. The American people and I fully support you, and have confidence in your bold strategies to turn our economy around. To rejuvenate the health of American businesses. To preserve and create good family-wage jobs. To restore our country to an era of lasting prosperity. You eloquently outlined your strategies last night on how America will rebuild, recover and emerge stronger than ever before. Working with the professionals at the Department of Commerce, I'm committed to making the department an active and integral partner in advancing your economic policies and restoring the American dream to all Americans.
Our nation's economic success is tied directly to America, continuing to lead in technology and innovation. And in exporting those products, services and ideas to nations around the globe. The Department of Commerce plays a critical role in nurturing innovation, expanding global markets, protecting and managing our ocean fisheries, and fostering economic growth. The Department of Commerce can and will help create the jobs and the economic vitality our nation needs.
When I was first sworn in as governor of the great state of Washington, I told the story of how 100 years ago my grandfather came from China as a teenager and worked for a family as a houseboy in exchange for English lessons just one mile from the governor's mansion. It took our family 100 years to move that one mile. A journey possible only in America. And during World War II, my father served as a staff sergeant and landed on the shores of Normandy. As a kid, I loved in public housing and my dad and mom worked very hard in the grocery store they owned. We grew up on the values of get a good education, work hard and take care of each other. It was a struggle, but thanks to their sacrifices, I received the best education America offered. And here I am today. Proud to have the opportunity to serve all of the people of our great nation.
My family's story is America's story. Our story is just one of hundreds of millions since the birth of our nation, of people coming from every part of the world in pursuit of the American dream, of freedom, hope, and opportunity. In hard times, Americans have rallied together, sacrificed, and even given their lives for our country because they believe in the essential goodness and promise of America.
Americans are prepared to do the same today. They believe in your leadership, Mr. President, and want you to succeed because they want America to succeed. They want a better future for themselves and their children.
We will harness the resources and the talent of the Department of Commerce to help you fulfill your commitment to the American people to build a stronger and more prosperous nation. I am grateful for this opportunity to serve you and the American people.
And finally, I want to thank my family, my parents, and brother and sisters and the extended Locke clan. But especially, my beautiful and truly gifted and loving wife, Mona (ph), and the joys of our lives, Emily (ph), Dylan (ph) and Madeline (ph). Today would not have been possible without their love, support and sacrifices.
And thank you, Mr. President, for this opportunity.
OBAMA: Congratulations. You're going to be great.
LOCKE: Thank you.
OBAMA: All right. Thank you, everybody.
LOTHIAN: Tony, you probably heard the president there, at the beginning of the remarks, sort of poking fun at himself a little bit. Because they tried two other times, and they finally were able to fill this. The White House, obviously, very pleased. They believe they have the right candidate for that job of commerce.
HARRIS: Yes. Try and try again until you get it right.
LOTHIAN: Exactly. Exactly.
HARRIS: And the Locke family story, that's pretty moving stuff there. Boy, what a story.
Dan Lothian our White House correspondent with us. Dan, appreciate it. Thank you.
LOTHIAN: OK, Tony.
HARRIS: You know, all sorts of Wednesday morning quarterbacking going on today. Let's take a trip to CNN.com's iReport desk and check in with one of the guys helping us run the operation down there; our iReport operation of which we are very proud. A trip to "Tyson's Corner." Tyson Wheatley is there.
And Tyson, my guess is that this is one of the days on the heels of the president's speech last night where you were sort of overwhelmed with iReports from folks watching and wanting to weigh in.
TYSON WHEATLEY, CNN.COM PRODUCER: Yes, this is defiantly lot of people wanting to talk about last night's speech. And for the most part, our iReport community gave the president really high marks, actually. And many of our viewers felt that Obama has speaking directly to them.
And let's take a little bit - let's take a look at what I'm talking about.
HARRIS: OK.
(BEGIN VIDEO CLIP)
MARK HOOPRICH, CNN IREPORTER: I thought he hit it out of the park. I thought it was his best speech that he has given to date. Very confident, he had a very ambitious agenda with items that are going to be contained in his upcoming budget. He highlighted three areas of education, health care and energy. And I - I think that the republicans in Congress really are at a critical juncture where they're going to have to decide, do they want to continue to oppose this very popular president who is probably going to be even more popular after tonight's speech. MANNY DORADO, CNN IREPORTER: Let me just say, that speech was amazing. It was something that we didn't even hear on the campaign trail. It was a different Obama. And I think what made it different, is that he stood up there with so much hope and looked us right in the eye and said to not be afraid.
(END VIDEO CLIP)
WHEATLEY: All right, Tony. So, immediately following Obama's address, the GOP reaction from Louisiana Governor Bobby Jindal. And you know, we got a lot of reaction to that speech, as well. It wasn't nearly as glowing, however.
Let's kick it off with California native David Kronmiller who thought Jindal's response fell flat.
(BEGIN VIDEO CLIP)
DAVID KRONMILLER, CNN IREPORTER: Jindal acted as if Obama is not cutting taxes. I don't know if those of you who watched Jindal's response realized that he didn't seem to at all acknowledge what Obama just said and instead, just pushed his own agenda. At times, feeling just like a political commercial and not a very good one.
(END VIDEO CLIP)
WHEATLEY: And we also heard from Sie Dozier, he's from Detroit. He felt that Jindal basically had an artificial, sincere tone.
Take a listen to what he had to say.
(BEGIN VIDEO CLIP)
SIE DOZIER, CNN IREPORTER: I think the Republican Party will be best served sticking with their all-stars. John Boehners, and the Mitch McConnells, things like that. They, to me, better effectively communicate the - their party's ideals and communicate their positions and standpoints to their base more effectively than this new Bobby Jindal character.
(END VIDEO CLIP)
WHEATLEY: And Tony, as you mentioned, this is only a small fraction of the incredible response we got from our community. And, of course, we invite you to join the conversation. Keep it going. And if you watched the speech last night, or any - we want you to share your thoughts. So go to ireport.com.
HARRIS: Well, it is terrific. I don't know who this person is who came up with the idea of the iReports, I know it's somebody in this building, but they've done a tremendous job and this is a heck of a soapbox that we're providing folks. And let's keep it going. Let's keep the community talking.
Tyson, good to see you. Thank you.
WHEATLEY: All right. Take care, Tony.
HARRIS: "BLACK IN AMERICA," boy, a groundbreaking look at race this summer. Now we have an African-American president. Our Soledad O'Brien joins us next to talk about a changing culture in the United States.
(COMMERCIAL BREAK)
HARRIS: The CNN landmark documentary "BLACK IN AMERICA" is back and we've got a taste of it for you. Our Soledad O'Brien introduces us to the mighty, mighty Rand family.
(BEGIN VIDEOTAPE)
SOLEDAD O'BRIEN, CNN CORRESPONDENT (voice-over): It's just after midnight in Houston, Texas, and the Rand family sets out for a family reunion.
PEOPLE CHEERING: We are the Rands. We are the Rands. The mighty, mighty Rands. The mighty, mighty Rands.
O'BRIEN: At the same time, similar scenes in Dallas, New York, San Francisco - from all corners of the country.
UNIDENTIFIED FEMALE: Let's get it on the road because we're on our way to Atlanta, Georgia for the Rand family reunion.
O'BRIEN: Who are the Rands? They are mothers, fathers, aunts and uncles and cousins. Theirs are stories of struggle and success.
UNIDENTIFIED MALE: When one person in this family succeeds, all of us succeed.
O'BREIN: And when one dies, they all feel the pain.
UNIDENTIFIED FEMALE: I couldn't believe that I had lost another child.
O'BRIEN: Hundreds of miles later, they reach their final destination.
UNIDENTIFIED FEMALE: We made it. Is it raining?
O'BRIEN: More than 300 Rands descend on the city of Atlanta.
At every reunion, a tradition, the family portrait.
But there is a mystery surrounding the Rand family. A missing link that very few know about.
(END VIDEOTAPE)
O'BRIEN: And, Tony, I won't ruin the surprise about that missing link, but I'll tell you this, after "BLACK AMERICA" aired, we got an email from a white man who said, I'm a Rand. He emailed in and said, I saw the family members, they talked about. I know those family members. That's my great, great grandfather, too. You can catch his story on CNN.com. We followed up with him as well.
You know, it was interesting to see in there, Anthony (ph) and LaVonne Smith (ph) and their six kids that they sent off to college. They run a construction company, their biggest issue right now has been the economy which, as you know, has been really troubled. And like everybody else, they've had those same challenges. But they say, their big struggle right now is, of those six kids, who they've all sent - you know, all of them have gone off to college, they've got two now who are graduating, two different states, same day. And that, right now, is their biggest challenge of how to get to two states and which family members get to go to whose commencement.
HARRIS: You know, you mentioned a letter from a member of the Rand family. I'm wondering, is there any plan afoot for an even bigger family reunion that might include that white member of the Rand family?
O'BRIEN: Absolutely, and the Rands made it very clear that they are -everyone's invited. If you're a Rand, you're invited. In fact, I think I even wrangled an invitation to their...
HARRIS: You did.
O'BRIEN: Yes. Well, maybe. Even though I'm not a Rand and I haven't married into the family yet. But they said that they open their arms and open their doors to everybody who's a Rand can come to their reunion.
Well, it's interesting to me and some of the feedback from "BLACK IN AMERICA," which was interesting feedback.
HARRIS: Oh, yes. I've heard you talk about it.
O'BRIEN: Somebody said to me, well, those six - who send six kids up? Black people do not send six children off to college. And that was shocking. So what we wanted to do in "BLACK IN AMERICA 2" was to, again, explore some of those folks who paved the way for people like the Rands to send those six kids off to college, and tell those stories a little bit more fully and more thoughtfully. Those stories that often really don't get heard - Tony.
HARRIS: I can't wait to see it again, Soledad. Good to see you. Thanks for taking the time for us. Thanks.
Well, there they go again. Hundreds of thousands of your tax dollars in pork spending and pet projects. Congress padding bills. What's with these lawmakers?
