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Storm Hits Northeast; AIG: More Bailout Billions; Troubles at HSBC

Aired March 02, 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 Monday, March 2nd. And here are the top stories we're following for you this hour in the CNN NEWSROOM.

A late winter blast comes barreling out of the South, slamming the Northeast, bringing out the snow shovels, delaying flights, slowing traffic, closing schools and businesses, and giving some kids reason to smile.

AIG getting more of your M-O-N-E-Y. Could another big chunk of change prevent a major collapse? And how is this impacting the markets?

Also, the president touts going green as a job creator. So do you know where those green jobs are?

Stay right there. We will show you the green jobs map.

And good morning, everyone. I'm Tony Harris.

The Northeast is where we start, because the Northeast is taking a pounding from that late winter storm. Snowplows and salt trucks are at work. Storm warnings from North Carolina to Maine. For the first time in five years, New York City schools are closed. Washington could get up to a foot of snow.

We are covering the snowstorm with bundled up correspondents. Susan Candiotti is in New York's Central Park. Elaine Quijano is on the Mall in Washington, while meteorologist Reynolds Wolf is watching conditions in Atlanta's Centennial Olympic Park.

And Susan, let's start with you, in New York's Central Park. Let's see, with kids out of school today, that park could actually be a winter wonderland, provided kids can get there.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Oh, it not only could be, it is a winter wonderland, that's for sure. You know, the snow has been falling since late last night, it's barely let up. And it's not -- it wouldn't be so bad if the wind wasn't blowing, as well.

You've heard about airport delays. Well, that's because they've canceled so many flights. It has been rough out here, but New Yorkers always manage to still get around, as you see the joggers run by me.

Let's take a look over here at Central Park here, where you've seen joggers all day. We've seen people running through the park, we've seen people walking to the park, walking their dogs. And, of course, it's a perfect time to go sled riding; right?

What is your name?

UNIDENTIFIED FEMALE: My name's Ronnie (ph).

CANDIOTTI: Hi, Ronnie (ph). Was it hard to convince the kids to come out?

UNIDENTIFIED FEMALE: Not at all. We have been waiting for a snow like this all winter.

Right, guys?

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED MALE: Yes.

CANDIOTTI: I'd like to hear about that.

How old are you?

UNIDENTIFIED MALE: Three.

CANDIOTTI: Three years old.

What do you like about sled riding?

UNIDENTIFIED MALE: I like snow.

CANDIOTTI: It is fun, isn't it? But it's awfully cold.

What do you like about sled riding?

UNIDENTIFIED FEMALE: I like to go down the hill fast.

CANDIOTTI: Ooh. What's so much fun about that?

UNIDENTIFIED FEMALE: You get to get all messy.

CANDIOTTI: You do get to get all messy, don't you? But do you mind how cold it is?

UNIDENTIFIED FEMALE: No.

CANDIOTTI: You don't? Why not?

UNIDENTIFIED FEMALE: All I mind is that I get to go.

CANDIOTTI: All right.

Well, there you have it.

Well, enjoy. Have a good time out there. I wish we could join you. Thanks for talking with us.

They are expecting anywhere from 8, 10, possibly as many as 10 inches of snow.

HARRIS: Wow.

CANDIOTTI: So this is a rough one. I think this is the biggest that we have taken since winter began, but I think it's also safe to say that people are ready for springtime -- Tony.

HARRIS: Any moment now, I know you are. All right, Susan. Appreciate it. Thank you.

From Central Park to Washington and the Mall there, Elaine Quijano is standing by for us.

And Elaine, you know, I was hearing somewhere yesterday that Washington, D.C., is actually experiencing a snow deficit. It looks like you're getting all you need and more right now.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yes. You know, things have actually tapered off in just a couple -- the last couple of hours or so. But you're absolutely right.

You know, this is a city that's just not used to getting a lot of snow over the course of a winter, let alone over the course of a single evening. Well, that's exactly what happened last night.

If you take a look at the Mall here, we've got about 4 to 5 inches of snow actually on the ground, accumulation, and then there is still a little bit of blowing and drifting snow that we're seeing. Although I have to tell you, really compared to, again, earlier this morning, you couldn't even see the Capitol dome behind me. Now, of course, things have cleared up quite nicely.

The roads and the sidewalks are a little bit of a slushy mess, though. However, that did not stop people from making their way in for the morning commute on the city's trains and buses. We've seen the snowplows out in force, really all morning long, trying to keep those roadways clear.

The area's airports here certainly experiencing their share of cancellations and delays because of this inclement weather. But the federal government itself, open for business, albeit with a liberal leave policy for federal employees.

So all in all, Tony, bottom line here, yes, Washington, D.C., did get walloped by this storm, but it's not a paralyzing storm. Maybe things are just moving a little bit more slowly than they normally would -- Tony.

HARRIS: Although, things look a little tricky at the moment with the blowing and drifting snow.

Elaine Quijano on the Mall in Washington.

Good to see you, Elaine.

And let's get to Reynolds Wolf at Centennial Olympic Park right now.

And Reynolds, what a day yesterday was here in the Atlanta area. There was rain to start the day, and then snow. And in some spots, was there actually thunder snow?

REYNOLDS WOLF, CNN METEOROLOGIST: Actually thunder snow. You know, that's something that doesn't happen every day. It's a little bit unusual. You know, snow itself in Atlanta, it does occur, but I'll tell you, the people react a little bit differently to it, say, here in Atlanta than you would, say, in Syracuse or Buffalo, New York.

We had some parts of the area that had a light dusting, and other places up to 4 inches of snowfall. Over in Douglasville -- that is just to the west of metro Atlanta -- you had that kind of snow. Much of it is gone.

You'll see behind me a little bit of dusting, but as I speak, it is beginning to melt, temperatures getting above the freezing point. The wind is still strong. There was some tree damage, and with that, we had some power outages. Some 50,000 people around the area without power.

That is trying, from what I understand. Georgia Power is doing everything they can to restore the service.

Now, of course, the reason for it, the storm itself. A little bit of snow here, much heavier snow well to the north, as you'll see on these snowfall totals.

Let's go right to the maps.

As we do so, you'll see the heavy hitter was up toward Upton, New York. Over a foot of snow. Not done yet. They're going to see more.

As Susan Candiotti was saying a while ago, they've had some snow there in Central Park, up to 7 inches of snow. As she was out reporting, it was continuing to come down. They may see up to 11 inches there before all is said and done.

Out at LaGuardia, 6.2. Newark, at 5.3.

Here it is. Here's the big weather maker.

That upper level low is zipping its way off to the Northeast, as it does so, so you've got that shallow layer of cold air that comes in right behind it. And let's zoom in and show you what's happening in a couple of key locations.

First, the nation's capital, the situation is getting a little bit better there. You'll see from Rockville, southward to Washington, D.C., everything is going, going, gone, back over towards Dover.

And we're going to scale our way back up to New York, northward to Yonkers, even White Plains. You see some heavier snow bands moving through. And then things begin to calm down a bit. But if you look right over Long Island, there's more developing. Kind of a pulsing effect. That's what happens in these scattered snow showers.

And then back to Boston, they had heavy snow this morning. Now they're getting a bit of a breather. But remember, you still have some development back towards Hartford. All of that is going to be pushing northward.

So if you're in Boston, you see a little bit of sunshine out there, it's not over yet. You're going to be seeing more snow into the afternoon hours.

We have all kinds of travel issues out there, obviously on the roads, obviously in the skies. Jacqui Jeras is going to be talking to that coming up later on this morning.

HARRIS: Yes.

WOLF: But things are looking pretty good here for the time being, Tony. Let's send it back to you.

HARRIS: Reynolds, appreciate it. Thank you.

WOLF: You bet.

HARRIS: You know, if you take a look at this storm and what it did rolling through South Carolina, what a picture here. This is not a parking lot, it is Interstate 85. Major problems along the interstate from Atlanta to Charlotte to points north.

Parts of the Carolinas got as much as 11 inches of snow. The snow is over in the South, but its effects linger.

(WEATHER REPORT)

HARRIS: All right. The Dow, as you can see, down below 7,000. We're talking layoffs, foreclosures, and your hard-earned money bailing out companies. The markets in trouble again today. The economy is issue #1 in the United States and also around the world.

We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Boy, let's take another look at the Big Board, the Dow. What a steep sell-off we are looking at today. As you can see, the Dow well below the 7,000 mark, really for the first time in almost 12 years. The Dow down 179 points.

We are going to keep a close eye on the markets and these numbers throughout the day for you, right here in the CNN NEWSROOM, and get a little analysis on what's going on right now.

You know, one of the big factors driving the market today, the stunning fourth quarter losses reported by insurance giant AIG. The government once deemed the company too big to fail, and it is poised now to pump billions more of your tax dollars into AIG if necessary.

Christine Romans following developments for us.

And Christine, just want to be clear here. Is this market sell- off that we're seeing today, do you believe it's tied to the AIG earnings report?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Part of it. And HSBC also had a really tough quarter.

HARRIS: Yes.

ROMANS: It's going to lay off people in this country.

People are worried about the financial system, they're worried about the banks and the insurance companies, and they're worried about just how much of a role the government's going to have to take. And frankly, if it's doing any good.

Tony, for AIG, not once, not twice, not three times, now four times the government has had to go in there and redo its bailout. It's going to put $30 billion, or make available, at least, $30 billion more from that TARP money. That's the bank bailout money that was passed back in October. Going to make that available, and also making more lenient some of the terms of the original $150 billion bailout of AIG.

And the government issuing a press release this morning. The Treasury and the Fed, Tony, explaining to taxpayers and to the American people why this is so important, why after such a horrific quarter of losses the government says it's important to try to help AIG.

"Given the systemic risk AIG continues to pose and the fragility of markets today, the potential cost to the economy and the taxpayer of government inaction would be extremely high." And that's scary stuff. And then they go on to say all of the different ways that AIG is so tied into the tapestry of the global markets that we can't ignore it.

Some 100,000 different entities get insurance protection from AIG. It is towns and cities, small businesses, 401(k) plans, Fortune 500 companies. They insure all kinds of different things.

They have such complicated, complicated insurance strategies and products, that we're still trying to understand exactly how it all plays out, and what we call counter-party risk if they were allowed to fail. That means all of the partners and partners of partners that would be destroyed if AIG went down.

Tony, just a really sad, sad and difficult situation for that company.

HARRIS: Is this latest money, if it in fact does go to AIG, is this pretty much -- does this spell the end for AIG as we have known it? Isn't this new money, in essence, providing a soft cushion for the demise of AIG?

ROMANS: You know, let me tell you. The government even says it's going to take time, whatever they're doing here, how they're trying to orchestrate what they call a restructuring and refocusing. It says, "This will take time and possibly further government support."

So Tony, I don't think we're near the end here of this, and whatever that end game is. I think what they're trying to do here is keep the situation as stable as possible so they can try to unwind some of these businesses and find buyers for some of these businesses. Some of these parts of this company, frankly, are making money.

HARRIS: Right.

ROMANS: You know, they've got to figure out, you know, where the government can take a stake in some profitable businesses and where they can try to sell some unprofitable businesses and unwind this thing. The government says it will take time and possibly further government support. So you haven't heard the last of this.

HARRIS: OK. Christine, appreciate it. Thank you.

We're going to try to get Richard Quest up as well on the HSBC story.

Christine, appreciate it. Thank you.

ROMANS: You're welcome.

HARRIS: Janitors in Chicago rallying for better pay and benefits. Right now they make an average of about $23,000. Yesterday's march was to bring attention to their struggle at a time when some corporate execs rein in huge bonuses. Tomorrow, the janitors' union begins new contract negotiations with cleaning companies and building managers.

As we mentioned a moment ago, Europe's biggest bank, HSBC, also facing trouble. Today, it announced a 62 percent slide in profits. The highlight of that, more than $15 billion in losses in the United States.

To our Richard Quest now in London.

Richard, as always, good to talk to you.

You know, these financial stories, Richard, are really starting to sound the same -- big losses tied to bad subprime loans. What is -- is that the same story with Europe's biggest bank?

RICHARD QUEST, CNN CORRESPONDENT: This is a classic of its kind in many ways, Tony, because what we have here is HSBC, which about three or four years ago bought a U.S. subprime lender called Household International. It owns HFC and Beneficial, two names that will be well known in the United States, have 800 branches across the country. And that basically has been the big problem. It has been hemorrhaging money into that subsidiary. And now HSBC says, well, it's going.

HFC and Beneficial, they're getting rid of them. They're running down the order book, they're not taking on any new loans, and it's going to disappear.

I need to make it clear to people who have got mortgages with HFC and Beneficial in the U.S., this does not affect the terms of their mortgage, nor does it mean that the mortgage is going to be changed in any way -- Tony.

HARRIS: Richard, my understanding is you had an opportunity to talk to the head of that bank. What were you curious to know? And share a bit of the conversation with us.

QUEST: Well, what I was really keen to know was whether we were at the bottom of this crisis.

HARRIS: Yes.

QUEST: Are things going to get worse? And if they do get worse, how much worse? And I'm sorry to say, that he was very pessimistic. At the end of the day, he said, we're not at the bottom and there's more anger and angst still to come.

HARRIS: Oh, boy.

(BEGIN VIDEO CLIP)

QUEST: Are we at the bottom?

MICHAEL GEOGHEGAN, CEO, HSBC GROUP: No, we're not at the bottom. It is deteriorating because there is a lack of funding for banks around the world in certain markets, particularly in the United States, particularly here in the U.K. It is less so in Asia and the Middle East and Latin America. These are still fairly robust economies.

QUEST: You have said you see no circumstances under which you would take -- need to take government money. Is that still the case?

GEOGHEGAN: Yes, we continue to believe we are best on our own. Our capital raising issue today shows that we are one of the strongest capitalized banks in the world, and we have no need to have government money, and we will continue in that position.

(END VIDEO CLIP)

QUEST: So, in a world where half the people are bailing out banks and the other half don't know what to do about it, HSBC is saying they will stay on their own and they will just raise money from their shareholders. And not a small amount either, by the way, $17 billion worth.

HARRIS: Yes, I saw that figure.

All right. Richard Quest for us in London.

Richard, as always, great to talk to you. Thank you, sir.

Green energy creates green jobs. That's what the president says. So where are those jobs? Personal Finance Editor Gerri Willis has your "Top Tips." That's next.

(COMMERCIAL BREAK)

HARRIS: Talk about green jobs, they are certainly hot these days. The stimulus bill sets aside about $113 billion for green energy and job creation. Studies suggest that every $1 million investment creates about 10 to 15 jobs.

Personal finance editor Gerri Willis here to tell us where to find those jobs.

And Gerri, you know, we hear a lot about green jobs, but what exactly are we talking about?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Yes, great question. This is actually the flip side, the good side of the economy.

A green job is a job that directly contributes to making a product or a process more efficient, or generates energy more cleanly. Now, green-collared jobs are often in the same areas of employment that people already work in today, but these professions may just begin focusing more on the environment. We're talking about blue- collar jobs like building inspector, roofer, insulating, sheet metal worker, electricians. But there are also going to be a number of white-collar green jobs, as well -- Tony.

HARRIS: Gerri, where will these green jobs be created, exactly?

WILLIS: Well, when you consider the stimulus bill, there will be a lot more jobs investment in areas like construction, manufacturing, solar energy, and wind energy. Now, if you want a green-collar job, make sure you look at what opportunities exist where you live right now.

If your state or region has a lot of manufacturing activity like Michigan, Indiana, Ohio, where there are a lot of auto plants, or the Northeast, then chances are there will be even more investment in that area in the future. Plants or factories may be refurbished, retrofitted, or new green products may be made there, meaning you may not have to move to find your green job.

Construction and retrofitting jobs will be most common in the Northeast. Guess what? Because it's cold there, the buildings are older, they need the new technology.

Now, if you live in Arizona or Nevada, there's a lot of sun there, so solar energy resources are abundant. You can really take advantage of opportunities there. And in places where wind energy is more easily harnessed, wind technology is going to be a better investment. So look to places like Oklahoma and Wyoming.

So there's different solutions in different parts of the country.

HARRIS: Yes. Hey, Gerri, are companies hiring? And do we have any idea what companies are hiring now?

WILLIS: We do have some companies that are hiring, actively recruiting right now either for part-time work, full-time work, or internships. And you'll find job titles like Engineering Consultant, Urban Ecologist, Environmental Advocacy, Environment Policy, or Economics and Law. These are obviously the white-collar jobs that are out there.

Take a look at this list.

Booz Allen, the Hamilton Lawrence Berkeley National Laboratory, the Peace Corps, the U.S. EPA actually hiring a number of people out there. Also, the Environmental Defense Fund, the New York City of Department of Transportation, Brown University, American Association for the Advancement of Science.

And Tony, I want to say one other thing here.

HARRIS: Yes.

WILLIS: You know, often, when I'm talking about the creation of jobs and we're actually naming employers, they're often hiring, you know, 1,000 people, 2,000 people, 3,000 people. These institutions and companies are hiring far fewer people, but they are hiring.

HARRIS: I see. Yes, and that's a good point.

All right, Gerri. Good to see you. Thanks for the tips.

WILLIS: My pleasure.

HARRIS: And in the next half-hour, our Chief National Correspondent John King takes you inside one green company that is hiring.

And as the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advice and answers for you. Check out our special report, "America's Money Crisis." We update this page all the time with the latest information. That's at CNNMoney.com.

The foreclosure crisis causing sleepless nights for parents and education concerns for children.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP) ZENNIE ABRAHAM, IREPORTER: Good-bye gold card, my old friend. We've seen good eats on the high end. People tell me Amex has crashed, people say the credit has smashed. But I'll tell you that's not going to happen to me. I'll set you free. And use my cash.

Well, OK, my Paypal card, too, and my gift cards. A credit card application? Forget it.

(END VIDEO CLIP)

HARRIS: Oh, boy. IReporter Zennie Abraham. He is one of many shedding the "pay it later" mentality. The average American, by the way, has more than $10,000 in credit card debt.

The CEO of Freddie Mac is resigning. David Moffett was named to the position after the government took over the mortgage giant in September. Moffett wants to return to a role in the financial services sector. The board of directors of Freddie Mac is working with the Federal Housing Finance Agency to find a replacement.

There was a time less than two years ago when we talked about the Dow's dramatic rise from 12,000 to 13,000 and then 14,000. Remember those days? Well, today we've crossed another threshold, but no one is cheering this time around. Stephanie Elam is at the New York Stock Exchange with details. Boy, this is pretty grim, Stephanie. Good to see you. Good morning.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good to see you, too, Tony. We need a breakout, like the black and white photos of what it looked like way back when the Dow was above 14,000. But at this point, we're pretty much looking at Dow, oh, 6,000, although we're in the 6 -- it's not quite 6,000. We're there now. We definitely fell below 7,000 today.

The blue-chip average kicked off the new month by tumbling today below that mark. The past few months have been just brutal. In fact, the Dow has dropped in the last six months straight, that would be, and in 2009 the blue-chip average is down nearly 20 percent so far. Yes, I realize that we just ended February. That's the worst two- month start in the Dow's 113-year history.

And in a sign of the times, Wal-Mart was one of the only Dow gainers last month. Taking a look at the numbers right now, the Dow off 207 points, so increasing its slide here at 6,855. Nasdaq, it is off 33 at 1344. So, the major averages off about 3 percent or 2 1/3 percent for the Nasdaq, Tony.

HARRIS: Hey, Stephanie, how are investors reacting to AIG's $62 billion quarterly loss? And are we seeing that reflected in stock prices?

ELAM: Actually, no. We're seeing the fact that the government is propping up the company reflected, because AIG's actually trading higher right now. The company's shares are up about 15.5 percent, thanks to that additional $30 billion that it's getting from the government. But keep in mind AIG is trading at less than 50 cents a share right now. So, that's quite a fall from when the stock was trading at about $51 just this time last year. So, you can really see how they've been slammed.

And coupled with the biggest quarterly loss in history, it shows why the government is jumping in to help the insurer, and at the same time, why many taxpayers are so upset. But yes, that's quite a fall for a titan.

HARRIS: Boy, it really is. All right, Stephanie Elam for us at the New York Stock Exchange. Stephanie, thank you.

ELAM: Thanks, Tony.

You know, they are truly innocent victims in this foreclosure madness. Young people, kids, uprooted from their schools and their friends and thrown into new and sometimes strange situations. CNN's Dan Simon on the story.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (voice-over): Eunice (ph) is only 9 years old, but already knows about mortgages, bills and foreclosures.

EUNICE (ph), FOURTH-GRADE STUDENT: The payments on our house that I'm living, my dad -- we didn't have enough money to pay them.

SIMON: She's a fourth-grader at Fairview Elementary in Modesto, California. She says her family has had to move twice in the past year. Her story is all too common at Fairview and other schools at Modesto. Drive around the neighborhood, and you'll see lots of for sale signs and homes that have been foreclosed.

UNIDENTIFIED FEMALE: What we've seen in the last two months has been what you can call a revolving door as far as getting 50 students in in two months and 50 students out.

SIMON: Nationally, the statistics are grim. At least an estimated 2 million kids will lose their homes because of the mortgage crisis. And studies show those children may be suffering more in school. One found that kids who moved twice in one year are half as likely to be proficient in reading and have a higher chance of being held back a grade. Excessive mobility, the study concludes, can also reduce chances that a student will graduate from high school by more than 50 percent.

Suzelle Tougas is Eunice's fourth-grade teacher. She says it's hard to teach with so many kids constantly coming and going.

SUZELLE TOUGAS, FOURTH-GRADE TEACHER, FAIRVIEW SCHOOL: And just having to start over and start over, it's really hard on a child. It takes six weeks for a child to just adjust with a move.

SIMON: Already this year, the class has gotten ten new kids, but eight of those kids have already left. The principal says when children leave the school, more often than not, their parents haven't even given notice.

UNIDENTIFIED FEMALE: We had our community aide going out to houses, and they were boarded up, windows boarded, yard brown. She ended up having to go to neighbors to find out where the kids were.

TOUGAS: The kids, they might say something to their friend, but they don't want to say anything to the whole class because they don't want to feel sad. You know, that's mainly what it is. They don't want to have to say good-bye.

(END VIDEOTAPE)

HARRIS: President Obama set to introduce his choice for health and human services secretary in less than an hour and a half. Kansas Governor Kathleen Sebelius picked to be the public face of the president's health care policies. Details now from White House correspondent Suzanne Malveaux.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Barack Obama's next big challenge, reforming health care. To those who may get in the way, his message heading into this week: Bring it on.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I know that the insurance industry won't like the idea that they'll have to bid competitively to continue offering Medicare coverage, but that's how we'll help preserve and protect Medicare and lower health care costs for American families. I know these steps won't sit well with the special interests and lobbyists who are invested in the old ways of doing business. And I know they're gearing up for a fight as we speak. My message to them is this, so am I.

MALVEAUX: The woman to lead the charge, Kansas Governor Kathleen Sebelius. Obama offered her the job of health and human services secretary on Saturday. The East Room announcement comes later today. A fixture early on in the Obama campaign, Sebelius courted female voters, Midwesterners and moderate Republicans.

GOV. KATHLEEN SEBELIUS, KANSAS: Barack Obama is exactly the leader we need to get this country back on track.

MALVEAUX: The two-term Democrat governor served as insurance commissioner in her state for eight years and oversaw the Medicaid program, successfully increasing health care aid for the poor. But her nomination is just the kickoff of this week's focus on health care reform and the battle that's expected to ensue.

MIKE MURPHY, REPUBLICAN STRATEGIST: This thing is very low on spending cuts and very high on phony rhetoric.

MALVEAUX: In the coming days, the president will lay out his agenda at a White House health care summit. Among his goals: to set aside $634 billion in a health care reserve fund over the next ten years to move the country closer to comprehensive health care; to require seniors making more than $170,000 a year to pay a greater portion for the prescription drugs; and to modernize and computerize medical records to save money.

(END VIDEOTAPE)

MALVEAUX: And Tony, Obama's also going to be announcing an announcement from the health care czar, a White House position, a second post, in the East Room. That position going to Nancy-Ann Min DeParle, managing director of a private equity firm. She's also a member of a group that advises Congress when it comes to Medicare issues -- Tony.

HARRIS: And Suzanne, maybe -- let me follow up. Why is that an important position? this idea of a health care czar for this administration?

MALVEAUX: Well, initially, you know that the president's pick was Tom Daschle, and he created this post. Essentially, he was going to have a secretary job as well as the one that was basically in charge of outreach to members of Congress because of his own experience, a former Senate majority leader.

It is seen this is important for Sebelius to have some support, further heft. This is something in that other post that this other woman DeParle, Nancy-Ann Min DeParle, has some experience in. So the two positions together is really something that they feel will make a very strong combination, Tony.

HARRIS: I see. All right, our White House correspondent, Suzanne Malveaux. Suzanne, thank you.

And of course, we want to hear from you. Do you want to know more about any potential health care policy issues or benefit changes? If you do, e-mail us your thoughts, your questions on health care coverage at CNNnewsroom@CNN.com, and we will try to get you some answers.

President Obama's announcement of his health and human services nominee coming up in just a little while. It is set for 1 p.m. Eastern time, and of course, we will bring it to you live right here in the CNN NEWSROOM.

And new developments on the international front. Talks to reduce tensions between the two Koreas end today with no clear progress reported. The U.S.-led United Nations command met with North Korean generals inside the demilitarized zone. It was the first such meeting in almost seven years. The talks coming amid fears North Korea is gearing up to test-launch a missile capable of reaching U.S. soil.

And world leaders now trying to raise billions of dollars to help rebuild war-ravaged Gaza. Secretary of State Hillary Clinton is at the donors' conference in Egypt. She is pledging $9 million in U.S. aid to help the Palestinian people and their economy. Clinton says aid should go hand in hand with the peace process.

(BEGIN VIDEO CLIP) HILLARY CLINTON, U.S. SECRETARY OF STATE: By providing humanitarian assistance to Gaza, we also aim to foster conditions in which a Palestinian state can be fully realized. A state that is a responsible partner, is at peace with Israel and its Arab neighbors and is accountable to its people. A state that Palestinians everywhere can be proud of and is respected worldwide. This is the Palestinian state we all envision. This is the Palestinian state we have an obligation to help create.

(END VIDEO CLIP)

HARRIS: And this is Clinton's first trip to the Middle East as the top U.S. diplomat. And the tiny west African nation of Guinea- Bissau reeling after renegade soldiers assassinate its president. Today's attack came hours after the country's military chief was killed in an explosion. The former Portuguese colony is one of the five poorest countries in the world and has a history of military coups.

Roughly 40 million people affected by the late winter storm barrelling through the Northeast right now, and many of you are sending in your iReports.

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HARRIS: You know, almost 40 million of you are seeing snow from the Southeast to the Northeast. And we are getting some incredible -- look at these. Wow, incredible pictures from South Carolina to Washington, D.C. to Connecticut. Everyone getting walloped today. Just like saying that word. Walloped.

We're also getting plenty of amazing pictures and stories from our CNN iReporters. Let's take that trip we take -- well, we like to take it every day down to our iReport desk and check in with one of the guys helping us run things there in our iReport operation, Tyson Wheatley, Tyson's corner.

Tyson come on, now, you've got to be getting flooded with iReports. IReporters are great...

TYSON WHEATLEY, PRODUCER, CNN.COM: Hey, Tony.

HARRIS: ... in this kind of weather.

WHEATLEY: Yes.

HARRIS: They just help us tell the story.

WHEATLEY: Yes, we're getting so many great stories. Let's go ahead and take a look at some of the best ones we're getting in. Let's start in Spartansburg, South Carolina. We're going to zoom in here. And actually, you know, something actually kind of really interesting there happened there overnight.

And I'm just going to move over a little bit here to I-85, where there was actually a stretch here, about 22-mile stretch along I-85 overnight where vehicles were stranded, in fact, and hundreds of vehicles, and -- because of the snow and some collisions out there. And we heard from one of those stranded drivers who sent in this great photo that I want to show you.

Let's go ahead and take a look at that. This comes to us from Bryan Ragan. And Bryan spent the night there in his car. Look at this mess. He ran into this around midnight. He was driving from Atlanta to Charlotte, where he lives.

And you know what? He realized at some point, Hey, you know what, I'm going to have to spend the night out here, and he grabbed this photo. You know, luckily, he was there with his German shepherd, Bacchus (ph), to keep him company. He also had some beef jerky and Thin Mint Girl Scout cookies.

All right, so now we're moving over to Richmond, Virginia. This photo here comes from Matt Saffle, who's having a snow day for sure. About 7 inches on the ground there this morning and still thawing. You can see here, cars pulled off to the side of the road, really not a good time to be driving. Matt's staying home from work today. He's originally from south Florida, so as you can imagine, he's very, very excited.

And I want to show one more to you. This comes to us from some snow in New York City. Great photo here from iReporter Julio Ortiz- Teissonniere. And, you know, he got up early this morning to grab this lovely snowy streetscape...

HARRIS: Oh, that is nice.

WHEATLEY: ... from Chelsea. And as well as a taxi covered in snow. There we go. You know, these are beautiful photos, but also a huge mess in that part of the country. A foot of the snow already in parts of the Northeast, and it's not done.

And, of course, we always want to hear your stories. We want you to keep sharing these experiences with us. We know a lot of people are stranded at airports today. So if you have a story you can share, please do so. Go to iReport.com and tell us about it. But as always, we want you to stay safe.

HARRIS: Absolutely. Good stuff. Tyson, good to see you, sir.

WHEATLEY: All right. Take care, Tony.

HARRIS: Great iReports.

As you can see, the Dow, the rough ride continues today. Down over 200 points. Now, we may rustle up our money team to explain what the heck is happening with stocks today.

But still to come, the City of Brotherly Love is going green. New industry, new jobs. We are tracking your number one issue -- it's the economy -- right here in the CNN NEWSROOM.

(COMMERCIAL BREAK) HARRIS: President Obama's massive stimulus package includes $20 billion for green jobs. That should help places like Philadelphia, where a lot of blue-collar workers have lost their jobs. But how long will it take to work? CNN's John King reports.

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JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Downtown Philadelphia. Its struggles are hardly new. But a punishing recession deepens the despair. At Bright Hope Baptist Church, the tablecloths and plastic flowers mask the grim reality. This spaghetti dinner is a lifeline to 100, maybe 125 people a day. And the church relies more and more on donated canned goods, because supplies from area food banks aren't keeping up with the growing demand.

Trying times in a city and state once defined by a rugged blue- collar legacy. To some, including the new president, this is the new jobs revolution, giant wind turbines being built at a plant deserted years ago by U.S. Steel.

MICHAEL PECK, GAMESA SPOKESMAN: We're de-rusting the Rust Belt, we're creating good manufacturing jobs, showing that in America we can make things again, and we're rolling back climate change. So, it's a three-for-one.

KING: Spanish company Gamesa employs 900 people in Pennsylvania. Michael Peck expects more jobs as the company expands, in part because of new energy investments in the Obama stimulus plan.

PECK: I would definitely say that people who want jobs should keep their eye on Gamesa.

KING: How many jobs is the big question. The president sees this new green economy ultimately replacing many of the manufacturing jobs that have disappeared in recent years. Jim Bauer once had one of those jobs in the very building where he now works for Gamesa. One hundred and forty-five in this building, 300 in all at this location just outside of Philadelphia. The jobs math here was different, though, when U.S. Steel was thriving.

JIM BAUER, GAMESA EMPLOYEE: Nine thousand to 11,000.

KING (on camera): But those jobs are...

BAUER: Gone.

KING: Gone. You don't think they'll ever come back?

BAUER: I don't think so.

UNIDENTIFIED MALE: This is the new economy. And it's still manufacturing.

KING: This new bakery will recycle rainwater and have state-of- the-art energy efficiency. But at the outset, Mayor Michael Nutter is told, the same 350 workers at an older Tastykake facility across town. (on camera): Answer the critic out there who says they keep hearing this, you know, in a blue-collar city talking about these green-collar jobs. Answer the critic who says, they're great. That's great. We want as many of them as we can get, but it's a tiny piece of the solution.

MAYOR MICHAEL NUTTER (D), PHILADELPHIA: You know, if you're unemployed, I think you're pretty excited about the opportunity to get one of these jobs. You know, we don't necessarily live in an environment where you can just swing for the fences, and you looking for the, you know, the 2,000-person job opportunity. I think, you know, singles, doubles, triples move the folks around the bases as well.

KING (voice-over): In time, Mayor Nutter echoes the president's view that new green construction and energy jobs will grow at a much faster pace. Though at the moment he isn't even sure when the first wave of stimulus money will reach the city.

NUTTER: Maybe summer into the fall, after you know, the regs get situated, plans in our applications get reviewed and somebody checks off all the boxes that need to be checked off.

KING: That could take patience in a city where the unemployment rate is more than 8 percent overall and in double digits among African-Americans and Latinos. This state career help office is packed all day by people searching online for vacancies or using the hotline that rings directly to the office that processes unemployment benefits.

The Gamesa plant sent word of a few job openings, but for most, the search is beyond frustrating, and they can find no evidence it will get better anytime soon.

John King, CNN, Philadelphia.

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HARRIS: And you know, if you're looking for a job right now, it may not be what you're looking for, but where. Coming up at noon, we will talk with Tara Weiss from Forbes magazine about the top ten cities for job growth and why these locations seem to be thriving despite the recession.

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