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Dow Trading Below 7000; Stunning Losses for AIG; Packed With Pork; Top 10 Cities for Job Growth; Rush's Hour; Paul Harvey Good-day

Aired March 02, 2009 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: And hello, again, everyone. I'm Tony Harris in the CNN NEWSROOM. And here are the headlines from CNN for Monday, March 2nd.

Going down and going down fast. Stocks falling after more bad financial news. The Dow down at the lowest level in 12 years. How far will it drop? We've got our eyes on Wall Street.

Healthy choice. President Obama is about his nominee to head Health and Human Services. The governor of Kansas waiting to take the reins, and word this morning that the nation could also have a health czar.

Plus, where are you going? How about nowhere? Now, back to your seat in front of the set with CNN tuned in. Now toss the remote. The Northeast tried to shake off a thick blanket of snow.

What a way to start the week. The Dow trading below 7,000 for the first time in almost 12 years. The government dishing out billions more in bailout money.

CNN's money team staying on top of all of it for you.

Our Stephanie Elam is at the New York Stock Exchange. Look at those numbers. Christine Romans following stunning losses at AIG.

Let's get straight to Stephanie.

Hey, Stephanie, I'm going to ask you a knucklehead question, just because I don't know the market as well as you do. But come on, this is a pretty precipitous drop here. I mean, come on, is there a point at which the markets stop trading and we say, hold on, wait a minute, catch your breath here?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: We're not near that at this point, Tony. I mean, think about it, we've been seeing drops like this for the last few months. You know, the Dow off 200 points or so. So it's just been -- the problem's been we've seen too many of these days with, you know, 200-point drops day after day.

So right now, just to give you an idea since February is behind us, the Dow lost 12 percent in that month. So far this year, the Dow has lost nearly 20 percent. That's the worst two-month start in the 113-year history of the average.

Now, get this, the Dow has fallen for six months in a row now. Lost during that time, nearly 39 percent. This marks the biggest six- month drop since 1932, when the Dow fell 45 percent. And one analyst says the Dow could fall to -- get this -- 5000.

HARRIS: 5000?

ELAM: 5000. And you know, we're at 6800, so at this point it's not that far. But just to think about when we were in October of 2007, where we were above 14,000, that's a big deal here. So the game changer here will be the housing market and whether it can stabilize.

Also want to just point out the banking sector. It's a bit of a concern today. You know, we're going to hear more from Christine about AIG posting this biggest quarterly loss in U.S. history of $62 billion. Well, HSBC, Europe's biggest bank, they're cutting 6,000 jobs amid a 70 percent drop in their annual earnings, so financial stocks are getting hit hard.

So we're keeping an eye on them here as well -- Tony.

HARRIS: That -- 5000?

ELAM: 5000, yes. And if you think about what you were doing in 1997, you know, to the levels we are now, and to then go back past that, I mean, it just -- it's a mindset change almost.

HARRIS: Well, maybe later we can talk about the broader S&P and those indices as well, because I'm just wondering, what is happening day to day, from minute to minute, on your 401(k) and those investments?

ELAM: Well, yes, that's a rough situation. And we can talk about that, but it's a scary picture for so many people out there right now.

HARRIS: Yes. Stephanie, appreciate it. Thank you.

ELAM: Sure.

HARRIS: You know, the government stepping in again, trying to stop the financial hemorrhaging at insurance giant AIG. The company reporting record fourth quarter losses, and more bailout money is in the works.

Christine Romans following that story.

How big were the losses at AIG in the fourth quarter, Christine?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: They were -- they were so big, they were bigger than any losses we've ever seen for a company. They were almost $62 billion. That's maybe $500,000 a minute -- poof, gone from this company in that quarter.

And why do we care? Because it's a huge company, and what happens to this company could affect your company, your 401(k), all kinds of different insurance policies, all kinds of companies. We don't even kind of know what they call counterparty risk, all of the different intricate relationships this company has.

If it were to go down, it would hurt an awful lot of people. And we've already plowed a lot of money into here, too, so we've put $150 billion in loans and guarantees and money into AIG, Tony, and it still lost almost $62 billion in the last quarter of last year. And now the government says it's making available, if AIG needs it, Tony, another $30 billion from that federal bank bailout fund.

The government very clear that it's going to take time to restructure this company and to refocus it. It's going to take time to do all of this and unwind what it needs to unwind. And they want to keep things as stable as possible. And possibly, it might mean further government support. That's what the Treasury and the Fed said in a release earlier today.

They said, basically, they put it down all on the line, that they're not going to let this company go down. "Given the systemic risk that AIG continues to pose and the fragility of the market, the potential cost to the economy and the taxpayer of government inaction would be extremely high."

A hundred thousand different entities AIG has insurance protection over, companies, governments, Fortune 500 companies, you know, all the way down the line. It's incredibly complicated. You know, I couldn't even simply sit here and tell you how many different kinds of businesses and the different kinds of exposure this company has.

HARRIS: Yes.

ROMANS: It's just -- it's incredibly difficult and complicated, and so they're going to try to prop it up as best they can, keeping -- stability is the key here, Tony.

HARRIS: Right. Right.

ROMANS: But, you know, you asked Stephanie a question, your 401(k). I mean, Tony...

HARRIS: Oh, come on. It's insane. I don't even want to look. I mean, come on.

ROMANS: I have been looking, and it's bad. It's just ugly.

And you know, Warren Buffett, who is known for his common sense and is known for -- I won't say he's a cheerleader for the -- but he believes in the American economy and the resilience of the American economy, and the American way of doing business. He said that the U.S. economy is in a shambles, will be for 2009, and he said probably well beyond that.

What that means for the stock market, whether it goes up and down, he can't say whether that means the stock market is going to go up or down. There's no way to know. But what the stock market is reflecting here, Tony, is that we are expecting more negative economic news. We are concerned about the health of the banking sector. We're concerned about pouring more money into AIG and just what the cost will be of getting stability in the financial system. And that this thing is -- we're not near the end of this thing. It's still going on.

HARRIS: Not near the end of it, don't know where the bottom is. When you think about it, once you're at the bottom, you've got to come back through these difficult moments that we're in right now before you have a chance to get to whatever the new top is.

ROMANS: There's no way to button it up.

HARRIS: No way to button it up.

ROMANS: You know, we talk about a week of negative economic news, we talk about a Dow below 7000. And you want to be able, as an American, you want to be able to button it up and say this how we're going to fix it, move along.

HARRIS: Yes.

ROMANS: We can't do that, and that's what is incredibly frustrating about this.

HARRIS: Hey, I don't know that we have another opportunity to talk to you today, but I would like to know at some point if there is anything that hasn't been tried, that maybe should be tried to turn all of this around. I mean, just something to think about. And maybe we'll get another opportunity to talk again.

ROMANS: I will think about it. I will think about it.

HARRIS: Thank you. Thanks, Christine.

ROMANS: You're welcome.

HARRIS: Troubles as well at Britain's largest bank. HSBC today announcing a 62 percent drop in annual pretax profits.

The bank's chairman says the global recession has put banks under unprecedented stress. The bank is also announcing plans to raise almost $18 billion by offering shares at a discounted price from Friday's close. The bank's CEO says the U.S. market has drug it down.

(BEGIN VIDEO CLIP)

MICHAEL GEOGHEGAN, CEO, HSBC GROUP: We've been profitable in three out of our four regions: Asia, Latin America and Europe. These three regions produced pretax profits of over $24 billion, a very strong result. The losses in North America and the goodwill impairment charge relating to North American personal financial services have been a drag on profitability.

(END VIDEO CLIP)

HARRIS: Now, the company says it lost $15.5 billion in its U.S. businesses.

A new battle over billions brewing in Congress. The Senate taking up the $410 billion spending bill today. It is packed with pork and facing a deadline.

Live now to our Senior Congressional Correspondent Dana Bash on Capitol Hill.

And Dana, a lot of the spending in this bill taking a lot of criticism because it is flat-out pork.

DANA BASH, CNN SR. CONGRESSIONAL CORRESPONDENT: Earmarks, that's right. You know, there are different ways to describe pork, but definitely there's a lot of bringing home the bacon in this bill. And as you said, there is a deadline.

This is a spending bill that's left over from last year, and Congress needs to pass it by this Friday to keep the government running. There's no question that that is going to happen.

And over the weekend, the president's budget director confirmed publicly what we always suspected in private, and that is that the president will sign this bill, despite the fact that it does have -- some estimates are $7.7 billion in earmarks, about 8,500 earmarks in general. You know, I was told, Tony, by a Democratic source that the president, in a meeting with Democratic leaders at the White House last week, said, you know what? Please, in the future, let's really try to limit these earmarks.

And the Democratic leaders said, you know what? It is our prerogative. It is Congress's prerogative to do this, to send specific money back to their home districts. They say this is what is our responsibility to do.

So there are no apologies for it. In fact, one of the congressmen on CNN's "STATE OF THE UNION" yesterday explained why he feels very confident and comfortable about taking earmarks for his district in Oregon. Take a listen.

(BEGIN VIDEO CLIP)

REP. PETER DEFAZIO (D), OREGON: I represent my district. I know where the needs are, and I put money toward those needs. And I put my name next to them and I send out press releases, and I stand for election every two years.

That is good spending. When you repair a jetty, when you help a city with a water system to meet federal mandates, that's good spending, and I'm proud of it.

(END VIDEO CLIP)

BASH: Now, there are a couple of things that we should point out about these earmarks.

Number one is, it is almost equal, Republicans and Democrats. About 40 percent of the earmarks in this bill are from Republicans.

And the other thing is that the whole issue and the process has been transformed for the past -- from the past couple of years, Tony. It is now, for the most part, transparent. We have been going on the Web site. Anybody can go on the government Web site and find out who put their names next to these earmarks, what they're bringing back, and how much.

HARRIS: Oh, yes.

Well, one more quick question here, Dana. We know the bill is left over from last year, which means there are members of the Obama administration who served in Congress when it was written. Any earmarks there?

BASH: There are. You know, our intrepid producer Evan Glass (ph) has been going through the Web site because, again, you can just find it right on the Web site.

HARRIS: Yes.

BASH: And look at what he found. I'll give you a couple of examples.

Joe Biden, the now vice president, former Senator from Delaware, he has still $750,000 for a satellite station at the University of Delaware. And here's another example. Rahm Emanuel, now the president's chief of staff...

HARRIS: Yes.

BASH: ... was a congressman from Illinois, $900,000 for a planetarium in Chicago.

Now, I got in touch with Rahm Emanuel's aide, and she made very clear that this was submitted over a year ago. This is leftover business. It is in the hands of Congress, and that is why you're going to see those things in there, because it is, again, from last year. But it is still interesting...

HARRIS: It is.

BASH: ... given the controversy over this, and given how staunchly opposed to these the president was in the stimulus bill. But I think there are six members of his administration that were in Congress last year. So far, we have found five of them with earmarks that are going to go to his desk.

HARRIS: Amazing.

All right. Our Senior Congressional Correspondent Dana Bash for us.

Dana, thank you.

BASH: Thank you. HARRIS: We are about an hour away from a major cabinet announcement by President Obama. He will introduce Kansas Governor Kathleen Sebelius as his choice for health and human services secretary.

Our White House Correspondent Suzanne Malveaux joining us live now.

And Suzanne, the Kansas governor will be really the face for the president's ambitious health care policies.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: And really, it's just the beginning, Tony. I mean, this is the next big agenda item that the president's introducing to the American people.

He is outlining his health care reform agenda. There's going to be a White House summit here on Thursday to address that.

Among some of the things he's talking about, $634 billion set aside for a health care reform reserve fund over the next 10 years to make sure that everybody is covered. Another thing that he's talking about is perhaps requiring seniors who make a little bit more money to pay more on their prescription drugs. And he also wants to modernize health care records to save money.

Now, the president, make no mistake, Tony, knows that this is going to be an uphill battle when it comes to some insurance companies, when it comes to some critics, and this weekend he wanted his critics to know that they're on notice.

(BEGIN VIDEO CLIP)

BARACK H. 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.

(END VIDEO CLIP)

MALVEAUX: So you heard the challenge there, Tony.

HARRIS: Yes.

MALVEAUX: And what we expect in about an hour or so, the woman who's going to be really the face in charge of this challenge, that is going to be the health and human services secretary, the governor of Kansas, Kathleen Sebelius. Obviously, she's going to be nominated. She has to go through a confirmation process in the Senate, but he believes that she is the right person for the job. And, of course, they believe they've got quite a fight on their hands -- Tony.

HARRIS: Yes. Hey, what about this other position that's going to be announced today, a health care czar?

MALVEAUX: Well, that's right. There's actually going to be a second person who's announced for this health care czar position.

Her name is Nancy-Ann DeParle. She is somebody who was a managing director of a private equity firm. She has also worked with members of Congress when it comes to Medicare issues.

And what's interesting about this, Tony, is that the initial nominee, Tom Daschle, he really was going to do both these jobs, secretary, as well as health care czar, because of his experience in reaching out to members of Congress. Well, that is really her expertise, where Sebelius, her expertise is more in health care. So, together, they believe that this will be a very strong, strong team.

HARRIS: I see.

Our White House Correspondent Suzanne Malveaux for us.

Suzanne, great to see you. Thank you.

MALVEAUX: Thanks.

HARRIS: You know, we will be covering the president's announcement of his new health and human services secretary live in the next hour. That is 1:00 p.m. Eastern, right here in the CNN NEWSROOM.

And of course we want to hear from you. What are your questions on health care policy issues or benefit changes? E-mail us at cnnnewsroom@cnn.com, and we'll get you some answers throughout the day.

Here in Atlanta, we love snow because we just don't get much of it. But in the Northeast, it is an entirely different matter. And right now, the Northeast getting walloped.

I love saying that word.

(COMMERCIAL BREAK)

HARRIS: Hey. You know, we told you just a moment ago about the snow in the Northeast. New York Mayor Michael Bloomberg is talking on that very subject right now. Let's have you listen to just a little bit to get a flavor of the conversation.

(JOINED IN PROGRESS)

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: This is a good day to do some shopping or visit some friends, go to your neighborhood restaurant, which could probably use the business. It would be fun to do. But remember, the best way to get around is still mass transit.

I took the subway myself this morning. If you stick to mass transit and bundle up, there's no reason to stay inside. Just be careful when you go outside. The sidewalks can be slippery and icy, and the forecast for tonight is colder weather.

So, while the streets may be clear, they're wet. And when the water freezes, they will become slippery.

We will continue to work hard to clear our streets. The Sanitation Department...

HARRIS: New York Mayor Michael Bloomberg just giving the latest update on the weather conditions in New York City.

I think all you need to do is, well, take a look outside if you're along the Northeast Corridor right now. Snow just about everywhere. The storm actually forced the closing of New York schools for the first time in, what, five years? A lot of fun for the kids, but not everyone else.

Let's get you back to New York now and Susan Candiotti. She's there in Central Park.

And the advice from the mayor, Susan, is do some shopping, visit some friends.

Do a couple of live shots now for CNN, why don't you?

SUSAN CANDIOTTI, CNN CORRESPONDENT: I heard him.

Well, we're following his advice, and I'm not the only one. I heard what he said, too. So, you have a lot of people who in fact are out and about.

They're shopping, they're using some taxis, they're using public transportation. We're seeing a lot of people going in and out of the subways, so life is quasi normal.

Of course, at the airports, it is not. A lot of flights have been canceled. So, for the few that are running, the delays aren't too bad, because not too many planes are taking off.

But talk about the economy, Charlie here has got a bicycle taxi.

How has business been for you?

UNIDENTIFIED MALE: It's been all right. It's actually better for us because the horses are not working. It's very low degrees for them.

CANDIOTTI: So it's easier for you to get around?

UNIDENTIFIED MALE: Yes.

CANDIOTTI: Tell me about some of the customers you had today.

UNIDENTIFIED MALE: There were a couple of Brazilian people here, and I showed them around the park. We showed them around the park, showed them movie scenes and celebrity houses around the park, tell them about the history of the park. They were really having fun. CANDIOTTI: So for them, obviously the cold and the snow is not stopping them from getting out and about.

UNIDENTIFIED MALE: Actually, they were loving it, because they're from Brazil. They've never seen snow before. I was like, you know, "So what a big surprise for you. Hey."

So they just loved it. It was good.

CANDIOTTI: So there you go.

Well, thank you very much for joining us.

So, you see, it's really not so bad, and probably a good time to go get some hot chocolate.

What do you think, Tony?

HARRIS: Hey, I love it.

Susan, how easy or difficult is it? I mean, there's snow on the ground. You've got a couple of folks in, maybe 125 pounds a piece in one of those carriages, is it tough to get around?

CANDIOTTI: Yes, I guess good question.

Charlie, so in this kind of weather, though, with a bicycle -- good point. Good point. Is it harder to pedal when you're trying to trudge through the snow?

UNIDENTIFIED MALE: Just a little.

HARRIS: Yes.

UNIDENTIFIED MALE: Not much. Just a little. Still working, though.

CANDIOTTI: So I guess you don't need to wear long underwear on a day like this, because you're getting a workout?

HARRIS: That's nice. That's nice.

UNIDENTIFIED MALE: Oh, yes. Well, still...

CANDIOTTI: I thought you'd like that, Tony. Yes.

HARRIS: Yes.

CANDIOTTI: Getting a little personal there.

HARRIS: That was terrific. All right. You never know.

Susan, appreciate it.

CANDIOTTI: I'm just telling you, I could use a few more layers myself, to be honest with you. HARRIS: You go get that hot chocolate, why don't you?

Susan Candiotti in Central Park for us.

(WEATHER REPORT)

HARRIS: Boy. And Jacqui, stand by for just a second, because we've had a little bit of fun with the folks in Central Park enjoying the snow today.

But Jenny (ph), do we have these pictures of the crash?

Let's put these pictures up. The description is pretty horrible of a multi-vehicle crash that has shut down -- oh, there you go. And it is pretty horrible.

This is DeKalb County, Georgia. It's I-285, southbound, in DeKalb, from just a short time ago, this crash.

And these are live pictures or tape from a short time ago?

OK. Live pictures now of the aftermath of that horrible crash there. Just trying to find out -- two tractor-trailers, we understand a third vehicle -- yes, you can see it there. A third vehicle collided on the interstate.

And this is very near the ramp, if you know this area at all, the ramp on to I-20. And as you can imagine -- there you see the shot that reflects the backup. The backup quite extensive, a lot of debris on that road to clear up before the traffic is allowed to pass through. And then, of course, you've got to get those vehicles out of the way as well.

No reports of any injuries at this point, but we will continue to follow this.

And thanks to our affiliate here in Atlanta, WSB, for providing those pictures.

We'll keep you posted.

It is the sputter heard around the world, the ripple effect of our struggling economy and why it matters to you.

(COMMERCIAL BREAK)

HARRIS: All right. Take a look at the Big Board right now. And this has been a -- oh, boy -- a tough, tough morning -- 222 points off so far about three hours into the trading day.

And we are below -- what was that? Down how many, Nasdaq?

OK. Nasdaq down 38 points.

It's been a rough morning. And it looks like a rough day.

We're going to continue to follow these numbers for you in the CNN NEWSROOM.

Boy, down 222 points.

You know, it is important to keep in mind, the economic crisis is global. Economies struggling around the world.

And as you can see here, the London FTSE closed down more than 204 points this hour. And in Frankfurt, the German Dax ended the day with a 133-point tumble. That's around a 5 percent drop for both of those markets.

European leaders are trying to tackle the economic crisis as one. They came together in Brussels to discuss a plan of action.

Our Ralitsa Vassileva reports.

(BEGIN VIDEOTAPE)

RALITSA VASSILEVA, CNN CORRESPONDENT (voice-over): The European Union, nearly 30 countries who have agreed to set aside national differences and work for a common purpose. But these difficult economic times are testing those alliances, as what will work best for some may not be good for all.

The Hungarian prime minister has called for a single, multibillion-dollar bailout for Eastern Europe, but other leaders insist that a one-size-fits-all bailout is unwise.

MIREK TOPOLANEK, EUROPEAN COUNCIL PRESIDENT (through translator): Political, institutional, economic circumstances are different from country to country. And therefore, we have to look at each situation case by case and react appropriately.

RALITSA VASSILEVA, CNN CORRESPONDENT, (voice over): This weekend's summit also addressed fears of protectionism in Europe, especially after French planned to bailout its own auto industry. The plan would subsidize French companies if they promise not to leave France. That could potentially run afoul of EU law, but European Commission President Jose Manuel Barroso says he believes anti- protectionist measures will be honored.

JOSE MANUEL BARROSO, EUROPEAN COMMISSION PRESIDENT: It is very important that in the times of difficulty, our citizens understand that all the countries of Europe are working together along the same lines and that the treaties that bind us, that the rules and principles that are common are respected in this specific moment.

VASSILEVA: As the global economy continues to deteriorate, this weekend's summit had hoped to present a united European front at the April meeting of G-20 nations in London. But with the EU members divided on how to tackle the current downturn, the proposed solutions are still contentious.

Ralitsa Vassileva, CNN, Atlanta.

(END VIDEOTAPE) TONY HARRIS, CNN ANCHOR: The world's second largest economy, Japan, also facing tough economic times. Look at this dive in the Nikkei today. Stocks closed down more than 288 points. That's almost a 4 percent drop. Japan's unemployment situation looks strikingly similar to that of the United States. Here's CNN's Kyung Lah.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT, (voice over): This was home for Hidefumi Ito. The size of a closet, it had what he needed most, an Internet hookup and computer to job search. Ito rented this net (ph) room for around $20 a day after he lost his art gallery director job, his expensive home and went bankrupt. Then his wife and three children left him.

HIDEFUMI ITO, LOST REGULAR JOB: (INAUDIBLE).

LAH: Six months later, life has improved. Ito has a tiny apartment with his own kitchen and bath. But more importantly, a job. It's not glamourous, but it's saving him from a life on the street. Ironically, the same economic downturn that cost Ito his upper class lifestyle landed him this job. Sucasa (ph), a company that created the net (ph) rooms, is seeing a boom in demand for its cheap, daily rooms.

"Occupancy is always 100 percent," says Sucasa's general manager. The company is constructing more buildings but can't keep up with the demand. Sucasa, growing beyond expectations, hired Ito a few months ago.

ITO, (through translator): This is today's Japan. It's a reality of the country. There's no safety net. We don't know our lives tomorrow.

LAH: You can hear that same warning again and again in Tokyo's tent cities. This is a once unthinkable scene in a country where lifetime employment was a rule just a decade ago. After the change in labor laws, temporary workers now make up a third of Japan's workforce. They make less, have fewer employment rights compared to full-time workers and are being fired en masse in Japan's recession.

MAKOTO KAWAZOE, YOUNG WORKERS UNION, (through translator): They're the working corps and they're the ones using their jobs. It's not true anymore that Japan is a stable, rich country.

LAH: Kawazoe says there's not enough unemployment assurance for these workers and not enough jobs, so the fired have no way out.

Compounding the problem, Tokyo is one of the world's most expensive cities. So the line between comfortably middle class to suddenly homeless is, in some cases, very thin.

It was for Ito, who still grieves for what he once had. But he's trying to focus on rebuilding a life. Step by step, he says. A process that is painfully slow, unlike how quickly you can lose it all in this economy. Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

HARRIS: Boy, having a tough time finding a job? It may be because you're looking in the wrong city. We will tell you where you should be looking.

(COMMERCIAL BREAK)

HARRIS: We want to give you a quick update on a story that we've been following since the weekend here at CNN. We've been telling you the story of two NFL players, Marquis Cooper, a linebacker for the Oakland Raiders, and Corey Smith, who played for the Detroit Lions. They, along with two friends, have apparently been missing since Saturday when they left for a fishing trip off of Clearwater, Florida. Off the coast there.

Now the Coast Guard said it has simply scoured 16,000 square miles in the Gulf of Mexico, but we are learning just moments ago from the Coast Guard -- the Coast Guard reporting that it has found one person clinging to an overturned boat. Now, of course, we can't make the connection at this point, but we know that the Coast Guard has been searching for these two players and the other people who went on this fishing trip with them.

We are going to continue to follow this story, obviously. The Coast Guard report coming from two of our Florida affiliates. So no way to make the connection and to determine at this point if the boat that has been found is, in fact, the boat that the football players and their friends were traveling in. But it is the reporting at this point and we will keep you updated and posted on this and get further clarity on this report from the Coast Guard and pass that information along to you.

Back to our issue number one stories.

It seems like all we hear lately is who is laying off workers and which cities have been hit the hardest by the recession. If you're looking for a job, the key to finding it may not be what you're looking for but actually where. "Forbes" magazine compiled a list for the top 10 cities for job growth and they are in order -- Madison, Wisconsin, Washington, D.C., Boston, Richmond, Virginia, Milwaukee, Pittsburgh, Baltimore, Seattle, Houston, and Dallas. Joining us now is Tara Weiss, a staff writer for "Forbes."

Tara, good to see you. We'll get to some of the surprises in a moment, but why these cities? Do they have anything in common?

TARA WEISS, STAFF WRITER, "FORBES": They did. So health care is big, government, and education. And you have to remember that when you're thinking about these fields, it's not just doctors, nurses or teachers. All of these industries need finance staff, they need managers, CFOs, legal, accountants. So you might be good to start your job search in those fields.

HARRIS: Now, that's interesting. OK. Washington -- I'm going to cherry pick a little bit here, hope you don't mind.

WEISS: OK.

HARRIS: Washington, D.C., is on the list. And, obviously, government jobs are available in the district. But what else is out there? Are there any other sectors hiring?

WEISS: Education.

HARRIS: Education. OK.

WEISS: In education they're expected to add 30,000 new jobs in 2009, which is huge. But that's not all. They also have non-profits that are based there and then industry trade associations, which are all based there. And then legal firms.

HARRIS: OK. That makes sense. And, once again, Boston is a city that surprises people a bit because that is a city that's been hit pretty hard with the financial cuts.

WEISS: Right.

HARRIS: How did Boston make the list?

WEISS: Right. So they were hit, losing about 900 financial jobs, which is serious. But remember that Boston is a really diverse city in terms of its workforce. So there are so many universities and colleges that are based there that have a wide variety of staffers. And then hospitals, research institutions that are producing not only the doctors and nurses, but then these people get grants to study different health care issues and from there we're also seeing a lot of software, clean technology firms as well.

HARRIS: Huh. Madison, Wisconsin, is on the list.

WEISS: Yes.

HARRIS: My hometown of Baltimore is on the list.

WEISS: Yes.

HARRIS: I'm just sort of curious, any surprises for you? I mean, I would think Madison would be a surprise.

WEISS: Madison surprised me. And the reason that Madison is on there is, it's got three seats of government. It's got state, city, and county governments. So those provide many jobs. And then there's the university there. And then the bigger surprise to me was Pittsburgh. Pittsburgh has tried to retool itself. I think a lot of people think of it as an old steel town. But it's the largest employer there is the University of Pittsburgh Medical Center. It employs 40,000 people. And like I said, it's not just doctors and nurses, it's, you know, legal, administrative, janitors, any kind of profession that you can think of. I.T. services. Those all go to make the hospital work.

HARRIS: Tara, good to see you. Thank you for your time.

WEISS: Thanks for having me.

HARRIS: And get back safely. All right.

WEISS: Thank you.

HARRIS: All right. Rush Limbaugh fires up the conservative base. Is the talk show host speaking for the GOP? Find out why he says he wants President Obama to fail.

(COMMERCIAL BREAK)

HARRIS: You know, he's not the head of the Republican Party, but you might not know it judging by the reception conservatives gave him over the weekend. Jim Acosta has more on a radio talk show host and his place in the GOP.

(BEGIN VIDEOTAPE)

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

JIM ACOSTA, CNN CORRESPONDENT, (voice over): Dressed in black at a conservative political conference, talk radio giant Rush Limbaugh made no apologies for four words . . .

LIMBAUGH: I hope he fails.

ACOSTA: That have ignited a fiery debate over the future of the Republican Party.

LIMBAUGH: I want Barack Obama to fail if his mission is to restructure and reform this country so that capitalism and individual liberty are not its foundation. Why would I want that to succeed?

ACOSTA: The standing ovations may explain why some GOP leaders are being cautious when they differ with Limbaugh.

REP. ERIC CANTOR, (R) MINORITY WHIP: I don't think anyone wants anything to fail right now. We have such challenges.

ACOSTA: Consider Georgia Congressman Phil Gingrey, who recently blasted Limbaugh and other conservatives who he says "stand back and throw bricks." Flooded with angry phone calls, Gingrey apologized on Limbaugh's show.

REP. PHIL GINGREY, (R) GEORGIA: I regret those stupid comments.

LIMBAUGH: Well, look, I appreciate that.

ACOSTA: Some Republican strategists see danger ahead.

UNIDENTIFIED MALE: If we don't modernize conservative, we're going to have a party of 25 percent of the vote going to Limbaugh rallies, conjoined -- every applause line ripping the furniture up. We're going to be in permanent minority status.

ACOSTA: Democrats have pounced. From the White House chief of staff . . .

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, he hopes for failure.

ACOSTA: To this ad, aired by labor groups, accusing Republicans of doing Limbaugh's bidding.

UNIDENTIFIED MALE: No.

UNIDENTIFIED MALE: No.

UNIDENTIFIED MALE: No.

UNIDENTIFIED MALE: So who are Republican leaders listening to?

LIMBAUGH: I want him to fail.

ACOSTA: The Limbaugh debate comes as Republicans are searching for a new face. A straw poll held at that conservative conference was nearly a five-way tie.

The man who won that straw poll, former Massachusetts Governor Mitt Romney, seemed distanced himself from Limbaugh, telling the crowd at that conference, we want our country to succeed no matter who's in power. But he did not call out Limbaugh by name.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Trying to make the system work. One of our own spends a month on food stamps. And it wasn't easy.

(COMMERCIAL BREAK)

HARRIS: Listeners around the country are mourning the death of legendary radio host Paul Harvey. Harvey died over the weekend at age 90. Entertainment correspondent Brooke Anderson reports on a career that spanned more than 70 years.

(BEGIN VIDEOTAPE)

PAUL HARVEY: Hello, Americans. This is Paul Harvey. Stand by for news.

BROOKE ANDERSON, CNN CORRESPONDENT, (voice over): Paul Harvey's distinctive sound and delivery style made him a broadcasting icon.

GEORGE W. BUSH, FORMER U.S. PRESIDENT: Americans like the sound of his voice. His friend Danny Thomas (ph) once said to him, you'd better be right, because you sound like God. ANDERSON: He had one of the most listened to voices in radio history. His news and views aired on some 1,200 radio stations across America. It was a career that started at an early question age.

HARVEY: Since I was 14, that voice has been my vocation, my avocation.

ANDERSON: Suburban Chicago was Harvey's home base for most of his professional life. The windy city honored him with his own street in 1988. But Paul Harvey Aurandt grew up in Tulsa, Oklahoma. His father, a Tulsa police officer, was killed by gunman firing from a car when Harvey was a toddler.

Harvey entered radio at the suggestion of a teacher in 1933. It was the start of a lifelong love affair with broadcasting. Another life-long love, wife, Angel. He was so smitten with Lynne Angel Cooper on their first date, he proposed.

HARVEY: And now, with your indulgence, the rest of the story.

ANDERSON: Despite vocal cord problems in his early 80s, which temporarily sidelined his talents, the Peabody winner loved working. Loved it so much, that in 2000, he inked an ambitious 10 year deal with ABC Radio Networks for $100 million. ABC had been home for the conservative commentator for more than half a century.

HARVEY: It's not the fame. Not the money. Maybe a comment, kind and sunny, the heart of (ph) warm approval of a friend. That's what gives to life its saver and makes one stronger and braver and gives one heart and spirit to the end.

ANDERSON: Fans say Harvey's golden voice echoed the virtues of small-town America.

HARVEY: Paul Harvey, good-day.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

HARRIS: Well, you know, you're watching these numbers just as we are here. Can you make any sense of it? Because it is tough for us here. The Dow, as you can see, down 232 points. Off of session lows, but just a bit. The Nasdaq and S&P down as well. Of course, we're going to be following those numbers for you. What else are we to do here? We'll watch these numbers throughout the day right here in the NEWSROOM.

You know, food stamps are a saving grace for many, but feeding a family on just a few dollars a day certainly isn't easy. Finding out firsthand, CNN's Sean Callebs. He's joining us live from New Orleans.

And, you know, Sean, the last time I spoke with you, I got a glimpse of the freezer and there were a lot more days left in the month than there was food in that freezer. SEAN CALLEBS, CNN CORRESPONDENT: Yes. Well, you know what, it only got a little more bleak. Let me -- I'll open the fridge here and show you. Last night, I cooked the last chicken breast. That's a half a can of peas, a little bit of an onion, a little bit of tomato. These . . .

HARRIS: Hey, Sean. Sean, I apologize. I have to interrupt. The president is starting early today. And just a moment to announce his new nominee to be the Health and Human Services secretary, Kansas Governor Kathleen Sebelius.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: And one that reflects the stark reality of our financial crisis, while laying a lasting foundation for our common prosperity. It makes both the sacrifices and the investments necessary to tackle the great challenges of our time. Challenges we face today as a consequence of decisions we deferred yesterday.

And one of these great challenges is health care. The good news is that we have already done more to advance the cause of health care reform in the last month than we have in the last decade. We've provided and protected health insurance for 11 million children whose parents work full time. We've invested in preventive care to help keep people from having to go to the doctor in the first place. And electronic health records and new technology that will ensure privacy while saving billions of dollars and countless lives.

And today, I can announce that under the recovery plan we've put into action, $155 million will go towards supporting 126 new health centers across America. These health centers will expand access to care by helping people in need -- many with no health insurance -- obtain access to comprehensive, primary and preventive health care services. And that helps relieve the burden on emergency rooms across the country, which have become primary care clinics for too many who lack coverage. Often at taxpayer expense. This action will create thousands of new jobs, help provide health care to an estimated 750,000 low income Americans across the country and take another important step toward affordable, accessible health care for all.

But, our current economic crisis has only heightened the urgency of our health care challenge. In the last eight years, premiums have grown four times faster than wages. In each of these years, 1 million Americans have lost their health insurance. And the crushing costs of health care causes a bankruptcy in America every 30 seconds. And by the end of this year, it could cause 1.5 million Americans to lose their homes.

It's a crisis punishing families, battering businesses, squeezing our states, and increasingly imperiling our own budget. Health care is one of the fastest-growing expenses in the federal budget and it's one we simply cannot sustain. That is why we cannot fail to act yet again. If we're going to help families save businesses and improve the long-term economic health of our nation, we must realize that fixing what's wrong with our health care system is no longer just a moral imperative, but a fiscal imperative. Health care reform that reduces costs, while expanding coverage, is no longer just a dream we hope to achieve, it's a necessity we have to achieve.