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March Roars in Winter Blast; A Soldier Reports for Duty with Her Kids in Tow; Coast Guard Search for Missing Fishermen; New AIG Agreement; Obama Administration's Global Initiative; Analyzing Limbaugh's CPAC Speech: African-American Firsts; The Food Stamp Experiment; Racist Rhetoric and the Economy

Aired March 01, 2009 - 22:00   ET

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


RANDI KAYE, CNN ANCHOR: Get used to that sound. Many of you will hear it all night. Driving is dangerous enough, but how about flying somewhere? Well, forget about it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm a nervous wreck. I've been out of the street rolling and crying, and I'm about ready to cry right now. So give my life.

(END VIDEO CLIP)

KAYE: A father's anguish. His son and three friends lost at sea. A massive search in rough waters happening right now.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I was ready at any time, so I had my daughter to call back. You know, I didn't have any problems with it then, but now our situation has changed.

(END VIDEO CLIP)

KAYE: A soldier reports for duty with her kids in tow. She says she has no other choice. Will the army give her a pass?

UNIDENTIFIED ANNOUNCER: Live in the CNN NEWSROOM, Randi Kaye.

KAYE: Hello, I'm Randi Kaye at CNN world headquarters in Atlanta. Don Lemon is off.

Get ready. Tomorrow morning could be a huge mess for people across the eastern seaboard. A huge winter snow storm is rumbling up the coast and it could mean big trouble for anyone trying to get anywhere fast come Monday. It started down south early this morning and now it's headed through the mid-Atlantic states and into the northeast, and New England commutes could turn treacherous and flying won't be any easier. Delta Airlines has canceled at least 300 flights on Sunday, most to or from Atlanta.

CNN iReporters are out and about in the snow, and of course they are sharing all their images with us. We want to share some with your. Chris Zahrt of Noonan, Georgia sent us this picture of his front yard. You can see it right there. He says it's pretty cool, but the roads are a mess.

George Brown took these pictures in Memphis. He says local forecasters underestimated the snowfall there. That, in case you're wondering is his 2-year-old son, Garret, in the picture.

And Alabama's Rebecca Horsley sent us this image from Pelham. Obviously, you could see why we think she's a CNN fan. Today is her birthday it turns out, and she says the party, of course, will probably be rescheduled.

Jacqui Jeras has been watching all of this weather unfold for us all day long.

Jacqui heading to the northeast now, huh?

(WEATHER REPORT)

KAYE: Yes. Lots of headaches for the adults, but, you know, the kids are celebrating up north for sure.

JACQUI JERAS, CNN METEOROLOGIST: Yes, no school, I think, for a whole lot of people.

KAYE: Not for my nephews, I know that for a fact.

All right, Jacqui. Thanks.

JERAS: Sure.

KAYE: The blast of winter weather may have ignited a wildfire, still burning in central Texas, but it is mostly contained. High winds are blame for downing power lines expected of sparking this brush fire near the capital of Austin. More than two dozens homes and at least three businesses have been destroyed. 1,000 acres are burned. Extra firefighters are coming in tomorrow to finish off the blaze.

A developing story off the West Coast of Florida. We've been watching all day and night now. A missing party of four fishermen. CNN confirms at least two of the missing are pro-football players Corey Smith, now a free agent, and Oakland Raiders linebacker Marquis Cooper.

The Coast Guard is searching a 750-square mile area west of Clearwater Pass, Florida. That's where the foursome is believed to have gone fishing. Their last known location was a nearby boat ramp at 6:30 yesterday morning when they departed. They have not been seen since. Earlier, we heard from Cooper's wife.

(BEGIN VIDEO CLIP)

REBEKAH COOPER, MISSING NFL PLAYER'S WIFE: Before he left yesterday, I asked if he was going to be really late and he said no because he knew that there was some weather coming through last night, so, I didn't expect -- I don't think he expected anything to go wrong.

(END VIDEO CLIP)

KAYE: The search began 17 hours ago. The Coast Guard says high winds, choppy seas and dropping temperatures are certainly making it tough.

(BEGIN VIDEO CLIP)

CAPT. TIM CLOSE, U.S. COAST GUARD: Weather conditions continue to hamper the search and rescue efforts. Weather conditions offshore are somewhat rough. We do have -- like I said we do have an active search and rescue case ongoing.

(END VIDEO CLIP)

KAYE: The Coast Guard is asking anyone with any information at all on the fishermen's whereabouts to call the number right there on your screen. That's 727-824-7506.

News just in to CNN tonight. News that could move the financial markets tomorrow. CNN confirms that the government has reached a new deal with the struggling insurance giant AIG. It's a deal that grants the company billions more of your taxpayer dollars.

Poppy Harlow, cnnmoney.com joins me on the phone with some of the details to this deal.

Poppy, what can you tell us?

VOICE OF POPPY HARLOW, CNNMONEY.COM: Hi, there, Randy. Well, rumors of this all day, and CNN confirming it now. What we're hearing from a source with knowledge of the deal at AIG is it's $30 million more of government funds through the TARP program will go to American International Insurance. The news is to be officially announced on Monday morning, tomorrow morning early when we get the company's fourth quarter earnings report. And to give you some perspective here on why AIG may need this money.

The stock closed on Friday 42 cents a share. It is expected according to Reuters that AIG will report a loss of $60 billion in just those three months in the fourth quarter.

Now, again, it is important to note here that (OFF-MIKE) tells us that AIG has no intention of drawing upon that money, those TARP funds immediately. It's rather (OFF-MIKE) saying this is not a liquidity crunch, it's an equity crunch. He goes on to say the problem at AIG was at the finance unit and take a look at the statistics in terms of just what AIG has lost.

(OFF-MIKE) it has an 80 percent stake in the company. But again, the source saying that the losses at AIG are the results of a hedge fund working at the corporate level. And source goes on to say the insurance companies that make up the majority of AIG, their strength has never been questioned. The traditional like of credit to the tune of $30 billion on safety line, if you will, Randy, not to be tapped immediately.

Randi?

KAYE: But now, Poppy, AIG has already received, what, $150 billion from the government.

HARLOW: That's exactly right. This is just adding on to what is the largest bailout. It's bigger than the $45 billion that has gone to Citi. It's bigger than the $45 billion that's gone to Bank of America. It will now be $180 billion of taxpayer money meant to prop up this insurance giant. A lot of people ask why is that necessary? Well, I thought TARP money was for banks. Why is it for an insurance company?

Again, it's because AIG had a hedge fund-like unit that made a lot of mess. It went very, very bad and it lost the firm billions and billions of dollars and 42 cents, and expected loss is $60 billion. It needs all the help it can get. We have called out to the government about this, no word yet, but we'll keep you posted. It will be on cnnmoney.com all night. We'll bring you the latest.

KAYE: All right. Poppy Harlow on top of that for us tonight. Thank you, Poppy.

For more on the AIG bailout and nonstop economic news, go to cnnmoney.com.

Feeding a family on food stamps. It's a reality for millions of Americans. And for our Sean Callebs.

28 days after he began an experiment to see what it would be like for him to live the entire month on food stamps. We'll check in to see how it went.

And, of course, Don, may be off tonight, but you can still join the conversation with me. Logon to Don's Twitter, Facebook, MySpace or iReport, and tell me what's on your mind.

(COMMERCIAL BREAK)

KAYE: Amid the first 100 days of Barack Obama's presidency, he's already tackling the economy. He's also in the infancy stages of his education reform. And then there's the looming issue of international relations. Here's CNN's Elaine Quijano.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (voice-over): Even as President Obama focuses on the domestic economic crisis, his international challenges are equally daunting. On CNN's "STATE OF THE UNION WITH JOHN KING," the chairman of the Joint Chiefs said he thinks Iran might have the materials to make a nuclear bomb.

ADM. MIKE MULLEN, CHAIRMAN OF THE JOINT CHIEF OF STAFF: We think they do, quite frankly, and Iran having a nuclear weapon, I believe, for a long time is a very, very bad outcome for the region and for the world.

QUIJANO: But administration officials say, even if Iran has the materials, developing actual weapons is another matter.

ROBERT GATES, U.S. DEFENSE SECRETARY: They're not close to a stockpile. They're not close to a weapon at this point. And so, there is some time.

QUIJANO: Giving the administration some time to figure out a balance between engagement and sanctions.

Chairman Mullen also gave a bleak assessment of the situation in Afghanistan, where President Obama has pledged to send an additional 17,000 U.S. troops. Mullen said he agrees with Senator John McCain that the U.S. is losing that war.

MULLEN: I said last September in my testimony in Congress that I didn't think we were winning, although I thought we could. And I would also agree that if we're not winning in a counter insurgency, we are losing.

QUIJANO: On Iraq, President Obama's newly announced decision...

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: By August 31st, 2010, our combat mission in Iraq will end.

QUIJANO: ...isn't sitting well with some of his fellow Democrats.

REP. NEIL ABERCROMBIE, (D) HAWAII: I think it can be done faster. It depends on what our -- what our strategic idea is there.

QUIJANO: Under the president's plan, the remaining U.S. forces would have a much different mission.

GATES: Our soldiers will be consolidated into a limited number of bases in order to provide protection for themselves and for civilians who are out working in the Iraqi neighborhoods and countryside as well.

QUIJANO: But Democratic Congressman Neil Abercrombie says too many troops, up to 50,000, would still be in harm's way.

ABERCROMBIE: No, I'm not comfortable with that number and I don't think it can be done. I think there's a reluctance on the part of some of the senior military to admit that there is solution or resolution in Iraq. Any residual troop there by definition is combat troops because the combat isn't ending.

QUIJANO (on camera): The president's defense secretary did acknowledge top commanders had wanted the combat mission in Iraq to last until the end of next year. But, he said, after an analysis of the risks, including the needs in Afghanistan, the president decided against that.

Elaine Quijano, CNN, the White House.

(END VIDEOTAPE)

KAYE: A North Carolina woman is reporting for military duty at Georgia's Fort Benning tonight with her children in tow. Lisa Pagan was honorably discharged four years ago, but she like thousands of other ready reserve troops are being called back to active duty. Pagan tried to appeal several times, but got no where. She says serving is harder now because her husband travels a lot for business and their family situation has changed. Her two kids are ages 2 and 4.

(BEGIN VIDEO CLIP)

LISA PAGAN, SOLDIER/MOTHER OF TWO: I was ready at any time until I had my daughter to be called back. You know, I didn't have any problems with it then, but now our situation has changed. And my husband has been -- he's been To Iraq, you know. It's not like our family hasn't already given and sacrificed many things. He missed like almost the first year of his daughter's life, just like many other soldiers.

(END VIDEO CLIP)

KAYE: Pagan was supposed to join us live by phone tonight, but she called to cancel just minutes before our newscast on the advice of her attorney. He then released this statement to us. "Lisa is at Fort Benning. She is complying with the orders she received to report to duty. Over the next few days she will be processed. Presently, we aren't clear as to the Army's plans to assist Lisa in finding someone to care for her children. We will know a lot more over the next few days."

And a lot of folks are weighing in in our news tonight. And we want to share some of you who are twittering with us. First, let's hear from Mymo33, "Females who decide to become soldiers should forego their privilege to have children." Wow. That's pretty strong sentiment there.

Sesua writes, "In my opinion, single parent should not be deployed. You would think preservation of family is a compelling government interest."

Jwintour has this to say. "The Army should, if she's really got no other choice, what is she supposed to do? Drop them on the street?"

Very strong opinions there. Share your opinion with us, will you? We want you to join the show, join the conversation. You could do so by logging on to Twitter, Facebook, MySpace or iReport.com, and tell us what you're thinking.

A rockstar's welcome for the man some see as the godfather of the GOP. We'll dig deeper into Rush Limbaugh's speech and the White House reaction to it.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RUSH LIMBAUGH, CONSERVATIVE RADIO TALK SHOW HOST: President Obama, your agenda is not new, it's not change and it's not hope.

(APPLAUSE)

Sending -- spending a nation into generational debt is not an act of compassion.

(END VIDEO CLIP)

KAYE: That, of course, is radio host Rush Limbaugh taking on President Obama during a boisterous speech Saturday to conservative activist. Well, today, the president's chief of staff fired back, tying Limbaugh to the Republican Party and presenting the two as one in the same.

(BEGIN VIDEO CLIP)

RAHM EMANUEL, WHITE HOUSE CHIEF OF STAFF: He is the voice and the intellectual force and energy behind the Republican Party, and he has been up front about what he views and hasn't stepped back from that, which is the hopes for failure.

And I compliment him for his honesty, but that's their philosophy that is enunciated by Rush Limbaugh, and I think that's the wrong philosophy for America. Because what Americans want us to do, what President Obama has been very clear about is work together setting our goals.

(END VIDEO CLIP)

KAYE: One thing's for sure, no one stirs things up quite like Rush Limbaugh.

Let's talk about his fiery speech with CNN political editor Mark Preston who is in Washington. And In Chicago, tonight, columnist, Mary Mitchell of the "Chicago Sun-Times."

Good to see you both.

Mark, let's start with you. All this talk about Rush Limbaugh, and now we have the president's chief of staff even talking about him and tying him to the Republican Party. He is now front and center. Is he the new face of the Republican Party?

MARK PRESTON, CNN POLITICAL EDITOR: Well, Randi, let's just break it down this way. For the past eighth years, President Bush was the leader of the Republican Party. And right now, there is really no natural leader. We have a couple governors, a couple people in Congress. We have a new RNC chairman, but no one really has stepped in and filled that void.

Step in Rush Limbaugh, he reaches 14 million people a week. He's on over 600 radio stations and he really preaches this really hard core ideology that really plays very well with the conservative base. We saw that yesterday, and I think he's having a lot of fun with it. And we saw him really have a lot of fun, you know, doing this, doing this fist bump and this jumping up and down as we see right there. And I think he's having a lot of fun with it right now.

KAYE: And Mary, I want to ask you, because Limbaugh yesterday actually mocked bipartisanship at this conference for conservative activists.

Is bipartisanship dead already? I mean, we're not even through the first 100 days. If you look at the stimulus and the fight over the budget deficit and both sides already trying to lay blame for the budget deficit. Barack Obama saying that he inherited it. Where does it stand?

MARY MITCHELL, CHICAGO SUN-TIMES COLUMNIST: Well, let me just say. What we saw from a Rush Limbaugh is an example of why it will be very difficult to have bipartisanship. What you're seeing is a line drawn in the sand and Limbaugh saying that they're not going to play nicely together. They're going to continue to fight and they're going to continue to push forth against the Democratic Party, which has won the election.

I mean, when you look at this, you wonder, man, are we back into election airing already?

KAYE: And Mark, what is the risk, really, in putting Rush Limbaugh front and center like this? I mean, he's certainly rallying conservatives, but there is some criticism.

PRESTON: Yes, there is criticism, Randi. He's unapologetic in what he has to say. He came out yesterday and said, look, I'm not going to apologize for saying I want President Obama to fail. I want him to fail. But we're also hearing some criticism from within the Republican Party.

And, Randi, this was a magazine yesterday that was handed out at the conference. And what this magazine says is how radio wrecks the right. And basically, what the author of the article is saying is that the Republican Party, the conservative talk show host for the past eight years did not hold President Bush accountable, and he names Rush Limbaugh.

Of course, we see Rush Limbaugh on the cover of this. Did not hold him accountable for the Iraq war. Did not hold him accountable for the lack of fiscal discipline. And some of the attendees yesterday when I was at this conference, they said that Rush Limbaugh was reactionary. They really would love Rush Limbaugh, but he doesn't offer any ideas. I really think that that's the criticism that we will hear from him. We will continue to hear about him in the coming months.

KAYE: And Mary, before we let you go, I want to ask you about Kansas Governor Kathleen Sebelius expected to be nominated tomorrow for Health and Human Services. Early supporter of President Barack Obama, or at least then candidate Barack Obama, a democrat in a very red state, popular governor. What are her challenges ahead?

MITCHELL: Well, the challenges, of course, is being able to make sure that she's going to, you know, push the agenda that President Obama has set. And I think that is, again, a clear example of trying to pull all these people together to move the country forward. If the Republicans aren't going to join in on that, they're going to be a loser next time around.

KAYE: All right, Mary Mitchell, Mark Preston, we'll have to leave it there. Thanks for spending part of your Sunday night with us.

The disturbing by-product of a historic presidential campaign.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Internet, bloggers, some shock jocks on some of these talk shows, and even some in the main stream media, but especially on the Internet, just pulsed with racism.

(END VIDEO CLIP)

KAYE: And it still does. An online cartoon showing the White House lawn planted with watermelons stirs controversy and costs a small town mayor his job. We're digging deeper.

(COMMERCIAL BREAK)

KAYE: Let me tell you, the Twitter lines are fired up tonight about the soldier who reported for duty with her children and about Rush Limbaugh. This one first. Rikardkjellberg write, "When is media going to realize that Limbaugh is an entertainer? Why is this guy taken seriously by the news media?"

Irishgirl2 wonders "If she doesn't have close relatives to look after her children, the Army should give her a pass. It's the right thing to do."

DomoRoboto writes, "Small government and low taxes does not work. The GOP has cut back so much that the children of our soldiers are suffering."

And SilverSeagull says "Give this woman a pass. She served her time. Let her raise her children."

If you would like to weigh in, you can join our show. Share your opinions and logon to Twitter, Facebook, MySpace or iReport.com. We love to know what you're thinking.

Rush Limbaugh takes on President Obama.

(BEGIN VIDEO CLIP)

LIMBAUGH: He is so busy fueling the emotions of class envy, that he is forgotten it's not his money he's spending.

(END VIDEO CLIP)

KAYE: His fiery speech has you talking and a whole lot of other folks.

And, you know, Martha Zoller and Warren Ballentine are going to get an earful tomorrow morning. They'll give us an earful tonight.

(COMMERCIAL BREAK)

RANDI KAYE, CNN ANCHOR: So many of you twittering with us tonight. We will try to get as many of these in as we can and read them on the air. This one from slavs06, "Rush is right. Believe in Americans not government."

And C4chaos writes, "I hope the GOP would have the sanity to disown Limbaugh because he makes them look really bad, clueless and backwards."

All right. Just a few opinions. Join our show if you'd like. Logon to Twitter, Facebook, MySpace or iReport.com and tell me what you're thinking.

You are always an active part of our conversation and you always have plenty to say, as do the folks who listen to these two -- our radio hosts Martha Zoller and Warren Ballentine.

Martha, let's start with you. Tell me, what were the (OFF-MIKE) show last week?

MARTHA ZOLLER, HOST, "THE MARTHA ZOLLER SHOW": Well, of course, we talked about (OFF-MIKE) the joint members of Congress as well as the budget that came out the next day that seemed to be a little different than what he was talking about the day before.

But, of course, I was live from CPAC on Thursday and Friday where we talked to Newt Gingrich and Mitt Romney and to other folks that were out there. And it was -- you know, it was an encouraging kind of atmosphere, mainly because there were 1,500 more students there from college than there had been the year before. The largest conference of this kind that they had -- 8,500 people.

But what people are mixing up is that this is not the Republican Party. This is the conservative movement. Yes, most of these folks are Republicans, but there are libertarians there. There are Ron Paul folks there that sometimes are libertarians and sometimes are Republicans. So, that's what we're talking about and I suspect we're going to be talking about that Rush Limbaugh speech on Monday.

KAYE: Warren, what were you hearing from your listeners?

WARREN BALLENTINE, HOST, "THE WARREN BALLENTINE SHOW": Well, we were talking about the speech that the president gave and how he stayed on point with what he talked about on the campaign trail. That his rhetoric on the campaign trail is actually coming to fruition and how in 40 days he literally has done more in 40 days than the previous president did in eight years. So, that was the hot topic from our show last week and this week coming up, you better believe, we're going to be all over Rush Limbaugh.

KAYE: All right. Speaking of Rush Limbaugh, I want to play one more clip from him and then we're going to talk more right after it.

(BEGIN VIDEO CLIP)

RUSH LIMBAUGH, CONSERVATIVE RADIO TALK SHOW HOST: Do you know that President Obama in six weeks of his administration has proposed more spending than from the founding of the country to his inauguration?

(END VIDEO CLIP)

KAYE: Now, in that same keynote address, as I'm sure the two of you know, Rush Limbaugh referred to the stimulus bill as the "porkulous bill."

Martha, Obama, to this joint session of Congress, when he spoke, said they passed a recovery package without earmarks, but now the budget, the new budget proposal, is apparently loaded with earmarks, according to critics.

ZOLLER: Well, Rahm Emanuel wants to have it both ways. He wants to say that the bill that the president is going to sign, the $440 billion-some bill, well, those are earmarks, but they belong to the last guy. So, it's OK to sign those with earmarks, but if it belongs to Obama, we're not going to sign it for earmarks.

Look, President Obama is a great guy. He's passed a couple of bills, but actually nothing has happened yet. Not one of these dollars have gone into the economy yet. We'll see if it does. I want the economy to be successful, but I don't believe that this is the way to do it.

KAYE: Warren, your take?

BALLENTINE: Well, I find this very hypocritical. For a Rush Limbaugh to be saying that we're creating generational debt. Have you not looked at the history of this country? This country has already been in debt from 1913 up until this time. We went to $65 trillion actually in debt, if you include social security and all the health care and all the administrations' pension plans that we've used over that time.

Now, for the Republicans to have this guy as the keynote speaker, it makes me scratch my head that you're following an admitted drug addict...

ZOLLER: Oh, come on, Warren...

BALLENTINE: ...and someone who has no history...

(CROSSTALK) ZOLLER: Warren, that is not fair.

(CROSSTALK)

BALLENTINE: No history. No history at all. No education.

(CROSSTALK)

ZOLLER: So, is President Obama -- so President Obama, (INAUDIBLE) cocaine user.

(CROSSTALK)

BALLENTINE: You are following somebody who has nothing to offer the American people except hate.

(CROSSTALK)

ZOLLER: I'm not following him. He's not the Republican Party.

BALLENTINE: That's ridiculous that the Republican Party even had him as the keynote speaker. It's very hypocritical.

ZOLLER: It's not a Republican Party function.

(CROSSTALK)

BALLENTINE: And that's the problem. That is the problem.

KAYE: Warren. This sounds like bipartisanship to me. Listen, before we...

(CROSSTALK)

BALLENTINE: That is the problem.

KAYE: Before we...

ZOLLER: The drug addict comment is out of line, though. Are we going to call President Obama a drug addict because he admitted to cocaine use? That was out of line.

BALLENTINE: But Obama didn't get caught with illegal drugs like Rush Limbaugh did.

ZOLLER: So, he didn't get caught...

(CROSSTALK)

KAYE: All right. This is not a dispute about drug use.

BALLENTINE: And he's not talking about dividing the country like Rush Limbaugh is. Rush Limbaugh is a hypocritical racist in my opinion.

KAYE: Do you think this is what your listeners are going to be talking about starting tomorrow and this coming week?

ZOLLER: I think they will. I think they will.

BALLENTINE: They definitely will. Rush needs to take notice from Martha and be more American, like Martha Zoller.

ZOLLER: Thank you very much, Warren. You, too.

KAYE: All right. He ends with a compliment.

BALLENTINE: Thank you, Randi.

KAYE: You got to leave it there. All right. Warren Ballentine, Martha Zoller, thank you, both.

ZOLLER: Thanks, guys.

KAYE: Always interesting. But one man's dream shapes a woman's destiny.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I heard Dr. King speak at the Marshall, Washington as a college freshman. And, indeed, that was an inspiration that day.

(END VIDEO CLIP)

KAYE: Atlanta Mayor Shirley Franklin -- a trailblazer shares her pioneering path.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

MAYOR SHIRLEY FRANKLIN, ATLANTA: I'm Shirley Franklin and I'm the mayor of Atlanta, Georgia.

KAYE (voice over): Franklin became the first female African- American mayor of a large southern city in 2002. Dubbed the sewer mayor, she chose an un-sexy but necessary job -- fixing Atlanta's crumbling pipes and she prevailed, despite public resistance to high costs.

FRANKLIN: Even when something is hard and unpopular, if you are committed and transparent, the everyday person will get it.

KAYE: But politics wasn't always Franklin's passion. She studied dance up until college. Then one man's dream helped her find a path to public service.

FRANKLIN: I heard Dr. King speak at the Marshall, Washington as a college freshman, and indeed that was an inspiration that day. I am striving every day to be worthy of the position that I hold. He risked his life. He risked his family's success and happiness so that I would have the chance to serve as mayor of this great city. (END VIDEOTAPE)

KAYE: She is an African-American first and our special guest tonight. Live in the NEWSROOM -- Mayor Shirley Franklin.

Good to have you here.

FRANKLIN: Thank you very much.

KAYE: So do you consider yourself part of Dr. King's legacy?

FRANKLIN: Oh, no question about it. I think the legacy of the civil rights movement plays itself out in many ways and I am privileged to have a chance to serve in public office because of the contributions of Dr. King and others.

KAYE: Would you say he was your biggest inspiration or who might have been?

FRANKLIN: Well, he certainly is a major inspiration, but so was Coretta King, and as a youngster, Harriet Tubman and Frederick Douglass and Andrew Young, and Maynard Jackson, and the list goes on. The good thing is you can find inspiration every day in the works of good people.

KAYE: When you decided to run for mayor, did you really think you had a shot?

FRANKLIN: Well, Maynard Jackson and Andy Young thought I had a shot. I thought I would run a good race and maybe squeak by and that's about what happened. I squeaked by and was elected.

KAYE: I want to share something with our viewers that you said. You went to an all-girls high school, and when you graduated you said that you thought women would and could and should rule the world. Do you still believe that?

FRANKLIN: Well, I certainly think they need to be right up there at the top in partnership. But I did feel that in high school and I think women have a lot to contribute. We see it playing out in our own country and we see it playing out across the world. So, I think women are good leaders, strong leaders, compassionate leaders. And I hope that my service as a woman mayor will open the door for many other women.

KAYE: As a woman and as an African-American, what would you say are some of the greatest challenges that you've faced in your career?

FRANKLIN: Well, I'm known as the sewer mayor, but I think...

KAYE: Do you really want to go with that?

FRANKLIN: No, no. I was going to say while I'm known as the sewer mayor, I think the biggest challenge is the public trust. Gaining public trust and maintaining it and it is not easy to do it.

KAYE: Why is that?

FRANKLIN: Well, people, they believe that you -- that city hall is not providing the service they need at the particular moment. There is, I mean, sometimes there are problems and then the average person generalizes. So, I think gaining and maintaining public trust is really the hardest thing to do.

KAYE: What do you do when you're faced with a really tough choice?

FRANKLIN: Well, I go back to my principals. Is it honorable? Does it make sense? Do I have the research to support the decision making? All of those things and I checked with other people, usually people who know a lot more than I do.

KAYE: What would be next for you?

FRANKLIN: Oh, that's a great question. I don't know. In about 300 days, I'll be leaving office and I may go back to teaching. I used to teach. I'm sure I'll be engaged in civic affairs at some level. And I'll be watching the presidential issues. I'm a big supporter of the president and hopeful that I can help him in any way, right here from Atlanta, though.

KAYE: I know, before we let you go, I want to ask you a couple questions about the stimulus...

FRANKLIN: Sure.

KAYE: ...the stimulus package and Georgia. I know you had a wish list of like $1.8 billion. Are these shovel-ready projects and where do you want the money to go?

FRANKLIN: Well, there are shovel-ready projects. In Atlanta, we have an international terminal at the airport that is under way. We have a water and sewer program. Between the two, we could spend $1.2 billion in 18 months.

KAYE: And all of this would create jobs, do you think?

FRANKLIN: All of it would create jobs, thousands of jobs, in fact. Both of those projects are under way and we could continue them and really accelerate them and then we could finish some sidewalks and road repair and park improvements.

KAYE: The question is, will you get the money? Because I know that Governor Sonny Purdue here in Georgia is considering not taking all the money from the stimulus. Have you -- where do you stand on that?

FRANKLIN: Well, I hope that our governor will find ways to accept the money. But the truth of the matter is that Atlanta can compete nationally for some of the discretionary funds. I'd like to build a street car. I'd like to build out the belt line. There are any number of projects that Atlanta can undertake. So I'm very excited about the stimulus and about the TARP funds because when the economy is sagging, it hurts local government and when local government can't provide services, families are hurt.

KAYE: All right. Atlanta Mayor Shirley Franklin. Thanks so much. Great to see you and great to have you on to discuss this.

FRANKLIN: Thank you.

KAYE: Next, feeding a family on food stamps. It's a reality for millions of Americans and for our Sean Callebs. Twenty-eight days after he began an experiment to see what it might be like for him to live the entire month on food stamps, we'll check in to see how it went.

(COMMERCIAL BREAK)

KAYE: In the face of this recession, one of our own did an experiment. Sean Callebs spent one month living on food stamps. I checked in with him earlier to see how it went.

(BEGIN VIDEOTAPE)

KAYE: Sean, my first question to you is how much money did you actually have to spend to live on?

SEAN CALLEBS, CNN GENERAL ASSIGNMENT CORRESPONDENT: I had $176. That broke down to $6.28 a day. I went to the Louisiana Department of Social Services and they figured out the maximum amount one person could get with no income. So, really, Randi, I was -- I stuck to this really rigidly. I didn't accept food from friends or colleagues. I didn't eat out free, if there was free food out there. I was really good at sticking with the food stamp diet.

KAYE: And was it harder than you had imagined it was going to be?

CALLEBS: You know, the first week it was -- it was definitely hard. It was -- it was really hard because it was a complete adjustment. I live right next door to a whole foods and you can just walk in and get a prepared meal and so suddenly I'm buying things like generic mac and cheese, instant mash potatoes, instant oatmeal, cereal, knockoff sweet peas, some pasta and, you know, making stuff myself.

So, a) I had to get reacquainted with the kitchen and then b) I had to buy stuff that was on sale. And every time you make a meal, you always think, what do I have left? What am I going to have for dinner? Because if you're living on such fine line.

KAYE: And listing all that food that you just mentioned, I didn't hear you mention meat or fish or anything more expensive like that, the high-protein foods.

CALLEBS: I bought lean ground beef twice and basically a little more than a pound each time and I split it up, usually made it in spaghetti sauce and that lasted a couple of days. I bought a lot of chicken. My one concession, I bought skinless, boneless chicken breasts. I found that worked the best for me because I could use it for stir fry, I could grill chicken, I could put it on a salad. I mean you have to be creative because you have the same items over and over.

And I got to point out, we're getting e-mails because I have a blog on cnn.com and there are just legions of families out there living this same way. I didn't think I'd make it. I'll be honest. At the start of the month, I thought, no way. And then, I started getting e-mails from families saying, $176 for one person basically is a fortune, so we don't want to hear you complain. So, I really stuck with that pretty rigidly.

KAYE: And did you lose weight? I would imagine.

CALLEBS: I think I did lose weight. In fact, I'm pretty sure I lost weight. I've actually been running for several months now. But I think I lost between seven and eight pounds. And, yes, that's a lot of weight to lose in one month. And remember, this is a carb-heavy diet. I've heard a lot of people who wrote in saying, because of what I can afford, I end up gaining weight. But I did learn, you can buy fresh fruits and vegetables. I have some bananas left over. I finished the month, I have $3.86 left.

KAYE: To spare, wow.

CALLEBS: You know, I watched every penny. But, you know, it's tough. And my heart goes out to people who do this day in and day out.

KAYE: And, of course, this is Mardi Gras time. So did that make it a little harder for you as well, a little more challenging?

CALLEBS: It really did. King Cake. I don't know if you know what King Cake is.

KAYE: Oh, yes.

CALLEBS: Wow. That was -- it's everywhere. Everywhere you go, there's King Cake, there's King Cake. And, you know, all the parades, people are cooking sausages, barbecue, chicken, ribs on the street. So, you know, the smell's wafting through the city. Come on, New Orleans is known for cooking, you know. Who knew there were calories in (INAUDIBLE)? But I skipped every bit of that. I mean, I lived a really forbidden life for the last month, the way of life that so many people, 31 million Americans in the U.S., live day in and day out.

KAYE: So, what's the most important lesson you think you're going to take away from this?

CALLEBS: I think I'm really going to focus on how I spend my money on food. I'm going to be a lot more conscious of what I buy. I'm not going to waste anything. I mean, in the past, I've walked away from tables, left half an omelet, left half a sandwich. You know, you go out to lunch every day and buy whatever you feel like. I don't think I'm going to go back to that way of life. I really don't.

KAYE: You have a new found respect for leftovers, I guess, huh?

CALLEBS: Exactly.

KAYE: All right. Sean Callebs, congratulations on getting through the month. I'm sure it was a tough one. Thanks so much.

CALLEBS: Thanks, Randi.

(END VIDEOTAPE)

KAYE: A small town mayor says it was just a joke, but not many of you are laughing.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I saw it in a humorous light, obviously, it didn't. I've learned that you don't forward e-mails.

(END VIDEO CLIP)

KAYE: He thought his watermelon White House e-mail was funny, but what's really under the surface?

(COMMERCIAL BREAK)

KAYE: Rupert Murdoch says he's sorry for that "New York Post" chimp cartoon, and a California mayor resigns over the furor his watermelon e-mail elicited. They're two high-profile mea culpas with a possibly ominous connection. CNN's Kara Finnstrom has more now from Los Angeles.

(BEGIN VIDEOTAPE)

KARA FINNSTROM, CNN CORRESPONDENT (voice over): An e-mail from the mayor of a small California city triggers outrage. The depiction -- rows of watermelon at the White House with the caption, "No Easter Egg Hunt This year."

UNIDENTIFIED MALE: Not cute, not funny. Not cute or funny, at all.

UNIDENTIFIED FEMALE: It's clear by the picture that it would be offensive to most people.

MAYOR DEAN GROSE, LOS ALAMITOS: Well, I saw it in a humorous light. Obviously, it didn't. I've learned that you don't forward e- mails because no matter what kind of e-mail it is or what type of a joke it may seem like, it could be offensive to somebody.

FINNSTROM: Mayor Grose has apologized and says he'll resign. This on the heels of an apology from Chairman of the "New York Post" Rupert Murdoch for this editorial cartoon, which he says was not meant to be racist. The cartoonist says he was drawing a connection between the federal stimulus bill and a chimpanzee that mauled a Connecticut woman and was later shot by police. In the caption, one officer says, "They'll have to find someone else to write the next stimulus bill." It was published one day after President Obama signed the bill.

UNIDENTIFIED MALE: Something that's a joke to some people is a mockery to other people.

FINNSTROM (on camera): Unintentionally hurtful or racist? The latest depictions are just two in a flurry of images that have sparked outrage since President Barack Obama began his campaign.

EARL OFARI HUTCHINSON, AUTHOR/COMMENTATOR: The Internet, bloggers, some shock jocks on some of these talk shows and even some in the main stream media, but especially on the Internet, it just pulsed with racism. I mean, the monkey image, the watermelon, chitlins, barbecue, the Aunt Jemima stereotype, (INAUDIBLE).

FINNSTROM: Author Earl Ofari Hutchinson says we're also in the midst of tense, economic times, which tends to incite scapegoating and racism.

A new report from the Southern Poverty Law Center says the number of hate groups grew more than 4 percent or by 38 groups last year, an increase, its authors say, was fueled in part by a failing economy, immigration fears and President Obama's election.

But Hutchinson and others also stress the gains in race relations that came through that historic election and have overshadowed the backlash.

HUTCHINSON: Let's just hope that it's just contained with a very, very small segment of the population and it's nothing but hot air.

FINNSTROM: Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)

KAYE: March comes in with a roar, snarling traffic and shutting down air travel. Jacqui Jeras is in the severe weather center keeping an eye on the hot or maybe we should say cold spots tonight.

(COMMERCIAL BREAK)

JACQUI JERAS, CNN METEOROLOGIST: I'm meteorologist Jacqui Jeras. So you can see the snow continue to come down in Washington, D.C., one of pretty much all the big cities in the mid-Atlantic and northeast under winter storm warnings. Our system is continuing to strengthen and bringing heavy snow and we've got that really. Check out the radar map from Charlotte extending all the way up now towards Atlantic City. New York City, it's light, but it is picking up in intensity.

We have had many delays at the airports. We've got a closure right now. Richmond, Virginia, closed because they can't keep up with the snow removal right now. Many, in fact, hundreds of flights have been canceled in advance of the storm for tomorrow. And pretty much every city is going to have some big-time problems. We're also looking for problems out west in San Francisco as well.

The other problem is the snow is gone in the southeast, but the temperature is dropping well below freezing. Bridges and overpasses are going to become very icy. It will be a rough commute for many in the south.

Randi?

KAYE: All right, Jacqui, thanks. And we've been hearing from so many of you. We're checking on your feedback on our Twitter, and we want to share some more with you before we go tonight.

TarodbyArwan writes, "Watermelon. What is wrong with people? Really hate the hatred and the stupidity of racism a lot."

BlueFigToast says, "I am on social security disability and don't qualify for food stamps. Welcome to my world. My food budget is about $200 a month."

RossEnterprise says, "One thing I like about Rush. At least we know what he thinks, how he stands. I rather have it in my face than knife in back."

OK. CNI_1986 writes, "I think that the army should give her a break and let her raise her children." He's talking about the soldier who actually reported for duty with her kids because she had no other choice, nobody to care for them. "I mean, come on, she has been out four years."

Thanks so much, all of you, for sending us your e-mails. And it's been great to hear from so many of you. I'm Randi Kaye at the CNN world headquarters in Atlanta. "D.L. HUGHLEY BREAKS THE NEWS" begins right now.