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Administration Officials Bring the President's Budget to Committees; Rush and the GOP; Cutting Your Electricity Consumption

Aired March 03, 2009 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Also, keeping our eyes on the big board. We're watching your money. Which way Wall Street will go after a 12-year low. Is it the right time to rethink your 401(k)? And one company's plan to help jobless homeowners all this hour.

Then missing off Florida, a man found, clinging to his boat. Now his father speaks to CNN. It is Tuesday, March 3rd, I'm Heidi Collins, you are in the CNN NEWSROOM.

Your money, the focus this hour on Capitol Hill yet again. The nation's top number crunchers are facing lawmakers. White House budget director Peter Orszag will discuss President Obama's spending plans for next year, and Federal Reserve Chairman Ben Bernanke will testify about today's challenges to the budget and the economy.

Also in a couple of hours, Treasury Secretary Timothy Geithner will face lawmakers questions about the bank bailout and the possibility that much more money will be needed.

We are also keeping a close eye on Wall Street today. Last hour, the Dow opened at its lowest level in nearly 12 years. Live look at the big board right now, after about a half hour of trading or so, to the positive just by about 30 points or so, but still as you can see, about 200 points below that 7000 mark. The stock market declined, really doing a number on investors.

Should you, though, rethink your strategy and expert ways in with some advice, some personal finance advice, in just about five minutes from now? So stick around for that.

Hundreds of billions of dollars, countless questions. How is your money being spent? Lawmakers want to know. Let's go to Capitol Hill now and senior congressional correspondent Dana Bash. The accountability is what everybody is looking for, Dana, right?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: That's right. I mean we are going to have a very interesting morning and you just illustrated why, all of those officials here talking about the economy. When it comes to Ben Bernanke, the fed chief, he is, of course, and anybody who has that job is critical when they come up to Congress, because Wall Street hangs on every word.

It is even more critical, obviously, given the terrible economy right now. And given what you've been reporting, Heidi, what happened yesterday that the Dow fell under 7000. So no question they are going to be watching everything that Ben Bernanke says with regard to what happened up in New York on Wall Street.

And then with regard to the other two -

COLLINS: Hey, Dana, forgive me, because obviously we are watching very closely something else, as well. And that is President Obama at a Department of Transportation talking about the money that is inside the economic recovery plan. For this sector in specific. Let's go ahead and listen in.

PRES. BARACK OBAMA, UNITED STATES: Lana Hurdle and Joe Zabot, thank you all for the extraordinary work that you guys are doing, each and every day. I want to begin with some plain talk.

The economy's performance in last quarter of 2008 was the worst in over 25 years. And frankly, the first quarter of this year holds out little promise for better returns. From Wall Street to Main Street to kitchen tables all across America, our economic challenge is clear. And now it is up to us to meet it.

One of the challenges is to jump-start lending, so businesses and families can finance the purchases of everything from inventory and payroll to a home, a car, or a college education. We have to jump- start the credit markets, and get private lending going again. No matter how good of a job we do here, that's going to be critical. And that's why the Treasury and the Federal Reserve are launching today the consumer and business lending initiative, which, when fully implemented, will generate up to a trillion dollars of new lending for the American people.

And this will help unlock our frozen credit markets, which is absolutely essential for economic recovery. But we also know that there cannot be a sustained recovery unless and until we put Americans back to work and put money in their pockets.

Two weeks ago, I signed into law the American Recovery and Reinvestment Act. The most sweeping economic recovery plan in history. And already, its impact is being felt across this nation. Hard-working families can now worry a little less about next month's bills, because of the tax cut they'll soon find in the mail.

Renewable energy companies that were once downsizing are now finding ways to expand. And transportation projects that were once on hold are now starting up again, as part of the largest new investment in America's infrastructure since President Eisenhower built the interstate highway system. Of the 3.5 million jobs that will be created say over the next two years as a result of this recovery plan, 400,000 will be jobs rebuilding our crumbling roads, bridges and schools, repairing our faulty levees and dams, connecting nearly every American to broadband, and upgrading the buses and trains that commuters take every day.

Many of these projects will be coordinated by Secretary Lahood and all of you at the department of transportation. And I want you to know that the American public is grateful to public servants like you, men and women whose work isn't always recognized, but whose jobs are critical to our nation's safety, security and prosperity. You have never been more important than you are right now. And for that, we are all grateful.

In the coming days and weeks, my administration will be announcing more details about the kinds of transportation projects that will be launched as part of the recovery plan. But today I want to speak about an investment we are making in one part of our infrastructure. Through the recovery act, we will be investing $28 billion in our highways.

Money that every one of our 50 states can start using immediately to put people back to work. It's an investment being made at an unprecedented pace, thanks in large part to Joe Biden, who is leading the effort to get the money out the door quickly. Because of Joe, and because of all the governors and mayors, county and city officials who are helping implement this plan, I can say that 14 days after I signed our recovery act into law, we are seeing shovels hit the ground.

Secretary Lahood noted, the first contract will be awarded to American Infrastructure. A family business in Pennsylvania that will be resurfacing a road in Maryland. More than 100 other people will begin receiving funds today, as well. Over the next few weeks, we will launch more than 200 construction projects across this country. Fueling growth in an industry that's been hard-hit by our economic crisis.

All together, this investment in highways will create or save 150,000 jobs by the end of next year. Most of them in the private sector. And just to give you a sense of perspective, that's more jobs being created or saved in one year than GM, Ford and Chrysler have lost in manufacturing over the past three years combined. And the job - the jobs that we're creating are good jobs that pay more than average.

Jobs grinding asphalts and paving roads, filling potholes, making street signs, repairing stoplights, replacing guard rails. What makes this investment so important is not simply that we will jump-start job creation or reduce the congestion that costs us nearly $80 billion a year, or rebuild the aging roads that cost drivers billions more a year in upkeep.

What makes it so important is that by investing in roads that have earned a grade of D minus by America's leading civil engineers, roads that should have been rebuilt long ago, we can save some 14,000 men and women who lose their lives each year due to bad roads and driving conditions. Like a broken levee or a bridge with a shaky foundation, poor roads are a public hazard. And we have a responsibility to fix them.

Now, we have another responsibility. Having inherited a trillion-dollar deficit that we're working to cut in half, we also need to ensure that tax dollars aren't wasted on projects that don't deliver results. And that's why as part of his duty, Joe will keep an eye on how precious tax dollars are being spent. To you, he is Mr. Vice President but around the White House, we call him the sheriff. Because if you're misusing taxpayer money, you'll have to answer to him. And to help him, I've appointed a proven and aggressive inspector general to root out waste and fraud. And I'm also deputizing every single American to visit the new website called recovery.gov, so you can see where your tax dollars are going, and hold us accountable for results. We're also making it easier for Americans to see what projects are being funded with their money as part of our recovery.

So in the weeks to come, the signs denoting these projects are going to bear the new emblem of the American Recovery and Reinvestment Act. That's it right there. Transportation projects will be stamped with another emblem, as well. These emblems are symbols of our commitment to you, the American people. A commitment to investing your tax dollars wisely, to put Americans to work, doing the work that needs to be done.

When you see them on projects that your tax made possible, let it be a reminder that our government, your government, is doing its part to put the economy back on the road of recovery. And so in the days and years ahead, as you're driving on new roads or roads that are newly paved, I hope it will give you some measure of satisfaction to know that it was all done by putting your fellow citizens to work.

I hope it will give you a sense of pride to know that even as we pursued our economic recovery, we renewed our American landscape. Throughout our history, there have been times when a generation of Americans seized the chance to remake the face of this nation. It's what we did in the midst of civil war by connecting our coasts with the transcontinental railroad. It's what we did in the midst of depression, but putting up a golden bridge in San Francisco, and electrifying rural America, and completing a great dam in the southwest.

It's what we're doing once more. By building a 21st century infrastructure that will make America's economy stronger and America's people safer. That's the reason we're here today. That's the purpose of our recovery plan. That's the cause of my presidency. And I need it to be your cause, as well.

Each and every one of you have a role to play. There are those out there who say this can't be done, it can't be done efficiently, it can't be done effectively. We've gone through a lot of years where we were told what government cannot do. Government can't do anything by itself. We've got to have the private sector involved. But there are critical things that government can do right here in the Department of Transportation.

Each and every one of you have a critical role to play. And if you do your work, if you do your job as well as you can do, if you feel as inspired as I do about the work that lies ahead, I am absolutely confident that we're going to look back on this time and say to ourselves, this was a moment where we really made a difference. What an extraordinary opportunity that is. I hope all of you seize it. Thank you, everybody. God bless you.

COLLINS: President Barack Obama standing there with Vice President Joe Biden and Transportation Secretary Ray Lahood, speaking to the Department of Transportation today, regarding how the money inside the economic recovery plan that will go specifically to this sector for the creation of jobs in infrastructure.

So there you have it. We'll continue to follow the president. In fact, on day 43 of his administration, here's a look at the president's day, obviously, just hearing those remarks at D.O.T. next hour, as we said, he is scheduled to meet with British Prime Minister Gordon Brown. They will discuss the global economic crisis. And this afternoon, President Obama will visit the Department of Interior to mark the agency's 160th birthday.

This is a grim measure, unfortunately of the economic crisis hitting home now for millions of Americans. For the eighth straight quarter, mortgage delinquencies are on the rise. That's according to the credit reporting agency Transunion. For the last three months of last year, the number of people who were late making their mortgage payments shot up 53 percent compared to the last quarter of '07.

Florida has the highest delinquency rate followed by Nevada, Arizona and California. Transunion says North Dakota has the lowest rate.

Homeowners in distress may get a break if their homes are financed by Citi Mortgage. The company says newly unemployed homeowners could have their monthly payments reduced to as little as $500 a month. Here with details on this possible lifeline, at least for some people is CNN's Christine Romans in New York. So how does this work, Christine?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well it's for people who are customers of Citi Mortgage, first and foremost. You have to have lost your job and prove that you're getting unemployment benefits, recently lost your job and proved that you're getting unemployment benefits. You also have to be 60 days late, delinquent, behind in your mortgage and then if you meet these certain requirements, then you can get what looks like maybe $500 a month you'll pay on your mortgage for three months.

You can also file for an extension for another 90 days. This helps people who are between jobs, who are just now lost their job, might have another job out there in the future that they might be able to get and that would be good for Citi Mortgage, because then the person would be able to turn around and start to pay the mortgage again.

The sticky part for the people that I've been talking to, the sticky part is, if somebody is going to be jobless for a very, very long time and there is no income coming in, then what do you do? I mean, then if you came and paid the $500 - so this is the kind of situation where hearing. So the system's breathing space, the company says it hopes it will help thousands of people - keep in mind, there are a lot of people out there jobless, four million people lost their job last year alone, and we're expecting another couple million at least foreclosures this year, so the company says it hopes it could help thousands. Heidi, we know that there hasn't been a broad foreclosure mitigation plan that has worked yet. Where there have been small little programs here and there, some have been moderately successful, some have been not successful at all. So we're still looking for that big housing fix. This is the Citi Mortgage version here that they're going to try. And we're going to try to keep up with them and find out, you know, just how many people are being helped and talk to some of those people who are getting their mortgage payment written down about $500 a month for a few months, just for some breathing space.

COLLINS: Yes, absolutely. All right. Keep us posted on that.

ROMANS: Sure.

COLLINS: CNN's Christine Romans, part of our CNN Money team. Thank you, Christine.

ROMANS: You're welcome.

COLLINS: Investments under fire. The dropping Dow makes jaws drop just the same. People wondering what to do now. We're going to get some expert advice in a moment.

(COMMERCIAL BREAK)

COLLINS: All right. We are watching the stock market. Today we're looking, obviously very low when we look at that number of 6795, below the 7000 mark that we watch so closely yesterday, and a couple days before, too. Right now, though, at least we've got a plus sign there, double digits about up 30 points or so in the Dow Jones industrial averages. But the stock slump is taking a bite out of most people's portfolios.

Investors have really taken a hit. Crust 401(k)s are really only part of the story. "Chicago Sun Times" personal finance columnist Terry Savage joining us now live from Chicago this morning. All right, so Terry, I want to tell you where this segment came from, your sitting in our morning meeting today, everybody, just average Americans saying, all right, we sit here and we watch these numbers go tick tick tick.

And we know about how things are cyclical, and we know about our 401(k) and actually buying stocks and even the bond option, take it all out, put it in bonds. But really, we don't know what to do. Is it about your comfort level? Like, how much you feel OK with bleeding until you can't take it anymore?

TERRY SAVAGE, "CHICAGO SUN TIMES" PERSONAL FINANCE COLUMNIST: Well, that's part of it. Emotional and psychology is a key ingredient in the market. And when everyone finally panics and says I really can't take it anymore, that will be the ultimate bottom. But the long-term reason for investing in stocks has to do with the economy. That's what the stock market is, a reflection of the free enterprise system.

The president just announced really a huge infrastructure in public works program. I have no doubt this administration can make that happen. The '30s, we saw that can work. But they haven't hit on two other key components. One is the stimulus plan, which is not stimulating the private sector which will provide the tax money to do these good public works.

And the second is, they really haven't given banks across the nation and lenders a foreclosure plan they can hide behind. Something like a rent to own, where sure, people will have lower monthly payments and the lenders will get some money in return. And we won't have these foreclosure sales.

So without those two ingredients, the private sector and this dealing with the crisis that Americans face on foreclosures in an equitable way, you can't really say the economy is going to improve in the private sector, and that gives you a little concern about investing in the stock market for the long run.

COLLINS: Absolutely. And so let's stay on that line for just a moment.

SAVAGE: OK.

COLLINS: And clearly, everybody's story is different. Everybody has a different comfort level. A different amount of money to invest or to be saving. But, again, as you look at those numbers, and you have the information that you just gave us, knowing that the outlook is pretty bleak, at least for this year, is what analysts are typically saying, what can you do?

SAVAGE: Well, you know, the market historians at Ibitz(ph) have proven definitely, there has never been - going back to 1926, there has never been a 20-year period where you have lost money and diversified portfolio -

COLLINS: Right.

SAVAGE: Large company stocks like the S&P index fund with dividends reinvested. So we've had a terrible 10 years. We're back to where we were. And the question is, how long is your time horizon both financially and emotionally.

COLLINS: Well, and - how old are you? As a person, correct? Because it's a different plan regarding how what your age is.

SAVAGE: Absolutely. I've always advocated having somewhat what I call chicken money on the side, outside your retirement plan, or in the safest option, inside your 401(k) plan that let's you continue to invest, depending on your age in the stock market for that long run. You know, a, you may not be able to retire at 65, many people won't, and b, you're going to live a lot longer, so your time horizon right now is, oh, my gosh, what's the closing price tonight, but you really do have a much longer horizon than you think.

COLLINS: All right. Well, there's so much to talk about, Terry. We should have you on every single solitary day. Good questions in our meeting in the morning. Terry Savage, we sure do appreciate your time.

SAVAGE: Thank you.

COLLINS: Dramatic rescue in the Gulf of Mexico. One missing boater found, but the search for three more men, two of them pro football players continues this morning. Nick Schuyler was found clutching the engine of their overturned fishing boat. You see him there. The boat was found about 35 miles off the coast of Clearwater, Florida and that is where the search is being concentrated right now, very large area to be searching. Still missing are these three men, NFL players Cory Smith and Marquis Cooper, that's Cooper on the far left. Smith is on the right. And William Bleakly is also missing.

Earlier this morning, I talked with Stuart Schuyler whose son was pulled to safety by the Coast Guard.

(BEGIN VIDEO CLIP)

STUART SCHUYLER, FATHER OF NICK SCHUYLER: We're all elated, but we're so very concerned about the other three missing men. My son is doing fine. He will recuperate. He's beat up and bruised, dehydrated but in good spirits.

COLLINS: Tell us what the conversation was like as we look at this video right now, and we are seeing him being loaded into the Coast Guard - I believe they have just landed here in this video. So they're taking him in for treatment now. When you first saw him, what did he have to say to you?

SCHUYLER: Well, he was so dehydrated, he was semi conscious. He did not really talk. He just nodded. The only thing he did say was, hi, pops.

COLLINS: Oh.

SCHUYLER: We are actually on the way to the hospital. I got a call from my old hometown, Cleveland, Ohio, from good friends saying that they were watching him being lifted to the chopper. And saying that he looked like he was all right.

COLLINS: Has he been able to tell you anything at all about what happened out there?

SCHUYLER: He kept breaking down crying, because he was losing consciousness, hypothermia was setting in, I guess. They were all clinging together, helping each other the whole time. And, you know, of course it's hard to keep track of time out there.

COLLINS: Sure.

SCHUYLER: He was in the water roughly 40 hours, and he said after four or five hours, he was alone. He said they drifted apart, and, you know, it was still dark. They couldn't see each other, and he just kept crying.

COLLINS: Well I can imagine he is going through some very emotional times right now. I have a couple of other questions for you, but update us on his condition this morning.

SCHUYLER: Well, you know, they kept him in overnight. They haven't said when they're going to release him. There don't appear to be any broken bones, vital signs are all normal, or close to normal, given the circumstances.

COLLINS: Sure.

SCHUYLER: So his body temperature really didn't drop that much. He did have a couple of sweatshirts on, and because they kept going in and out of the water, I believe that helped all of them for a while, anyway.

COLLINS: Yes and just to remind everyone, the circumstance here that we're talking about. Really bad storm. This was a fishing excursion that Nick went on with three other people, and just want to give those names to everyone, because obviously it's still a developing story, and we are waiting to hear more about Marquis Cooper, Corey Smith, and also William Bleakly. Bleakly was a former University of South Florida football player, Oakland Raiders linebacker Marquis Cooper and free agent Corey Smith for the Detroit Lions who we are talking about.

Can you give us an update, Mr. Schuyler, on what's going to be happening today off the coast of Florida? I know this is such a vast area for them to still be searching.

SCHUYLER: Well, I can only tell you what I heard from the captain of the Coast Guard.

COLLINS: Right.

SCHUYLER: Since they found, you know, the boat, they are able to narrow their search. It's still an ongoing search. They're still hoping they're going to come up with good news here. And I only can tell you that because I heard it on the TV down here myself. So that's all I know at this time.

COLLINS: All right. Well, we can certainly hear the concern, obviously, in your voice, and a bit of relief, as well. Any idea when Nick will be able to get out of the hospital, and when he'll be able to come home?

SCHUYLER: No. We'll find that out more today.

(END VIDEO CLIP)

COLLINS: The three men still missing have been in the water since Saturday night. And just a few minutes ago, the Coast Guard said they still have one plane, one helicopter and three ships searching for the three men right now. And that there have been no shark sighting in the area. We'll stay on top of this story for you.

Doctors are worried about this, the most common flu strain is now nearly 100 percent resistant to the most widely-used flu medication, Tamiflu. Last year, it was just 12 percent resistant. A new study says it's not clear why the virus changed.

The republican chairman getting a lesson about the powers that work in his own party. What he said on our air, and why Rush Limbaugh is making him eat his words.

(COMMERCIAL BREAK)

COLLINS: If you are a Republican, it can be dangerous to cross Rush Limbaugh. In fact, we have some new information coming in about this story. We're going to give it to you in just a moment. One party leader is learning this the hard way, though, after comments he made on our air.

Some say Rush Limbaugh has so much pull that critics say he might actually be the real leader of the GOP. Senior political correspondent Candy Crowley has more.

(BEGIN VIDEOTAPE)

RUSH LIMBAUGH, RADIO TALK-SHOW HOST: Thank you so much.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): Does Rush Limbaugh want President Obama to fail? No retreat, baby, no surrender.

LIMBAUGH: They hoped George Bush failed. So where is it? What is so strange about being honest in saying, 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?

CROWLEY: He ruled the roost and raised the roof at the annual gathering of CPAC, a group of conservative activists, where no last name is needed.

CROWD: Rush, Rush, Rush!

CROWLEY: Not everyone is so enthused about Rush. The head of the Republican National Committee did something rare for a Republican, took on the country's leading conservative voice.

MICHAEL STEELE, CHAIRMAN, REPUBLICAN NATIONAL COMMITTEE: Rush Limbaugh is an entertainer. Rush Limbaugh, his whole thing is entertainment. Yes, it's incendiary. Yes, it's ugly.

CROWLEY: No such thing as getting the last word with a guy who has a microphone.

LIMBAUGH: It's time, Mr. Steele, for you to go behind the scenes and start doing the work that you were elected to do instead of trying to be some talking-head media star.

CROWLEY: Limbaugh calls the president one of the most gifted men he has ever seen, even as he excoriates the administration for big spending, Big Brother, anti-individualist policies. LIMBAUGH: President Obama is to busy trying to ferment and create anger in a created atmosphere of crisis, he is so busy fueling the emotions of class envy that he has forgotten it's not his money he's spending.

CROWLEY: How to solve a problem like Rush Limbaugh, hero to the Republican base, the party cannot afford to alienate, but getting back into power means expanding the base. And Limbaugh is controversial and problematic. PC he is not.

LIMBAUGH: Aside from the bastardization of the Constitution that the Obama plans are, that TARP is, it's not constitutional. Aside from that, where's the evidence that the people authoring all this have ever succeeded in any similar plans before? There's none!

CROWLEY: Oh, how Democrats love Rush Limbaugh, figuring the tighter they can tie him to Republicans, the longer Republicans stay a minority party.

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I think maybe the best question, though, is for you to ask individual Republicans whether they agree with what Rush Limbaugh said this weekend.

CROWLEY: On CBS's "Face the Nation," the president's chief of staff called Limbaugh "the voice and intellectual force" of the Republican Party.

RAHM EMANUEL, CHIEF OF STAFF, WHITE HOUSE: And whenever a Republican criticizes him, they have to run back and apologize to him and say they were misunderstood.

CROWLEY: Bingo. Late Monday, Michael Steele told Politico he was trying to get in touch with him to tell him, "I was maybe a little bit inarticulate. There was no attempt on my part to diminish his voice or his leadership." Which tells you a little something about the power of Rush Limbaugh.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

COLLINS: And now this just into CNN, a statement sent to CNN. RNC Chair Michael Steele says he has spoken with Rush Limbaugh, and, quote, "We are all good." They apparently talked last night, and according to Steele, they had a good conversation.

So, is there really a division in the GOP? Joining us right now to help answer that are two well-known political insiders from both parties from both parties, of course, Ron Christie, the former domestic policy adviser to President Bush and Vice President Cheney, and Bill Press, who is a nationally syndicated talk-show host himself.

Welcome to the both of you. So, yes, we just got this information, and apparently the two men have spoken, and "we're all good," according to Michael Steele. How big of a deal is this? Ron, I'll start with you. RON CHRISTIE, RUNS MEDIA AND POLITICAL STRATEGY FIRM: I don't really think it's a big deal, Heidi. I think obviously Michael Steele is the chairman of the Republican Party, and he's out there as our front man, raising money, recruiting candidates, trying to get candidates to join, not only the Republican Party, but also so you can get new voters in the Republican Party.

He'd had a miscommunication of words, and he made sure to clarify not only with CNN and your viewers, but with Mr. Limbaugh. Rush Limbaugh does not speak for the Republican Party. The Democrats try to say that he is the voice of the Republicans. He is a voice for conservatives. He's not the voice of the Republican Party.

COLLINS: Well, Bill, obviously, I hear you laughing. When he came out and said what he said and then took it back, as the second person now in a row who has taken comments back regarding Rush Limbaugh and the Republican Party, what did you make of it?

BILL PRESS, NATIONALLY SYNDICATED RADIO TALK-SHOW HOST: Well, first of all, I feel sorry for Ron. I'm used to Democrats forming a circular firing squad, but it's a lot of fun to see the Republicans form them.

Look, Rush Limbaugh said it yesterday, that he, not Michael Steele, is the head of the Republican Party, and Michael Steele, in effect, agreed with Rush. He has anointed Rush the leader of the Republican Party by apologizing to him.

Here's the problem, Heidi, I think. Every Republican has to answer, Do you stand with Rush Limbaugh? Do you want Barack Obama to fail? That's what he said. That's his agenda. Yes or no?

And if no, then they ought to be able to stand up and say -- willing to stand up and say, on this one point, Rush Limbaugh is wrong. There is not one Republican, not John Boehner, not Mitch McConnell...

COLLINS: Yes, but isn't the issue...

PRESS: ... who is willing to say that.

COLLINS: Forgive me, but isn't the issue -- forget about just for a moment, if we could, you know, what was said, and who he supports and who he doesn't. Isn't the issue really about the chairman of the RNC then coming out and apologizing for whatever he said, Ron?

PRESS: Yes, of course, it is.

CHRISTIE: Yes, I think that is. I think that is exactly right. The chairman of the Republican Party came out and said there was a miscommunication. He apologized.

PRESS: Why?

CHRISTIE: But, again, what Republicans need to do -- what Democrats need to do is stop saying that Rush Limbaugh speaks for their party. George Soros spent millions upon millions of dollars in the last two cycles trying to defeat Republicans, but Republicans neve said that George Soros...

PHILLIPS: Bill, let him make his point. Let him make his point.

CHRISTIE: ... (INAUDIBLE) Democratic Party.

PRESS: No, Ron -- OK, go ahead.

CHRISTIE: My point to you, Bill, is that Democrats need to start governing. They need to stop attacking. Republicans need to go back and do a little soul-searching and recognize what it's going to do to be in the majority. But all these ad hominem attacks against Rush Limbaugh and trying to paint him as the leader of the Republican Party is not responsible governance.

PRESS: Ron, I'm surprised at you. Now you're sucking up to Rush Limbaugh. Look, this is a Republican issue. It's not a Democratic issue. This is the Republican Party is in the wilderness. They're desperately looking for new leadership to lead them out of the wilderness, and they've decided on Rush Limbaugh.

Listen, I think they're making a big mistake. Let me tell you why. I'm a talk-show host. Talk-show hosts don't have any responsibility. They have no accountability. They have two jobs, to make noise and to make money. That's all Rush Limbaugh cares about, and yet, again, John Boehner, Eric Cantor, Mitch McConnell, Michael Steele and now you are just kissing Rush Limbaugh's butt. Why don't you just say he's wrong when he wants Obama to fail?

CHRISTIE: Well, actually, Bill, I can tell you, since I'm a Republican and you're not, and you tell me that, you know, I'm listening to Rush Limbaugh. I'm actually listening to John Boehner and Eric Cantor and Mitch McConnell. What Republicans need to do is diversify their base. Republicans need to articulate clear and stark policy differences between what Obama wants to do with income redistribution rather than trying to seek to improve the capital market.

But this whole straw man argument against Rush Limbaugh, I love it, because again, Democrats look very petty. We'd rather debate you on the policy issues of the day, because I think there is going to be a tidal wave coming to take this thing...

COLLINS: Hey, let me jump in, guys. Let me jump in, guys. Let me jump in. Because, in front of me, obviously, I mean -- it's easy enough for us to get the verbatim, the words of actually what were said if we're going to keep going back to whether Rush said he wants the president to fail or whether he said he wants his policies to fail.

And in front of me, and this was before CPAC, by the way. These were the original comments that were made on the air. I have the transcript in front of me. What he said was, "I'm not talking about search and destroy, but I've been listening to Barack Obama for a year and a half. I know what his politics are, I know what his plans are, as he has stated them. I don't want them to succeed."

PRESS: Also, Heidi, on his radio show, and I've played the cut over and over on my radio show, he said, "I want him to fail." So, you know, Ron can -- again, he can try to make this a Democratic thing. It's a question for Republicans. Do they want Obama to fail? And there's a difference between saying, I disagree with his policies.

COLLINS: Hey, listen...

PRESS: You know, that's what Democrats said about George Bush. I disagree with his policy on Iraq (INAUDIBLE).

COLLINS: I've got to put up a quick little thing.

PRESS: But to fail?

COLLINS: We just saw a picture of maybe -- and Ron, we'll get your reaction to this very, very quickly, to the possible future of the Republican Party. What about this guy here? Listen in for just a second.

(BEGIN VIDEO CLIP)

JONATHAN KROHN, AUTHOR: The real important thing is that Rush Limbaugh is out there to -- he's going to help Michael Steele. Michael Steele needs to do his job, and I think he is. I think Michael Steele needs to get out there and understand that he is the leader of the Republican Party and needs to continue to let other people help him, too.

(END VIDEO CLIP)

COLLINS: Quickly, we just kind of wanted to end it on a light- hearted note, because this is a young man who was on "AMERICAN MORNING" this morning, Jonathan, and presents himself as possibly the future of the Republican Party.

PRESS: He makes more sense than Rush Limbaugh.

COLLINS: I've got give the last word to Ron. Very, very quickly, Ron.

CHRISTIE: Very, very quickly. The Republicans right now are in a process of rebuilding. We are looking for the fight. We are looking to agree with the president where we have policy similarities, but we're also looking to make sure that the taxpayer dollars are spent most responsibly. Let's get out of these petty arguments about Rush Limbaugh. Let's look in the best interest of the country.

COLLINS: Guys, thank you. I appreciate it.

PRESS: Thanks, Heidi. See you.

COLLINS: I think we're going to hear more a little bit more...

CHRISTIE: Thanks, Heidi. COLLINS: ... about this than we ever imagined. Ron Christie, Bill Press, thank you.

Quickly now, I want to turn our attention to the Big Board. We've been watching these numbers, obviously, for a very long time now, but specifically today, looking for some positive numbers. We have a little bit of an uptick. Dow Jones Industrial Average is up just about 70 points, but still well below that 7000 mark. Quick break here. We're back in a moment.

(COMMERCIAL BREAK)

COLLINS: Watching out for your wallet. This hour, lawmakers are questioning two of the administration's top money men. White House Budget Director Peter Orszag is explaing President Obama's spending plans for next year. Federal Reserve Chairman Ben Bernanke is testifying on the long-term impact of the proposed budget, and tax hikes.

So, on Wall Street, the losses have been piling up, and the numbers are staggering. The Dow has lost 2,000 points so far this year. But today -- I don't even know if I should mention it -- we are seeing an itty-bitty bit of an upswing, especially in the buying several days after all of that steep selling. Susan Lisovicz is checking her notes very, very closely, joining us now from the floor of the New York Stock Exchange. Hey there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Well, I was listening to you say that the Dow has lost 2,000 points this year. And you know, there was a time, Ms. Collins, you and I have seen drops in one day of 600, 700, 800 points. So, to put this in perspective, 2,000 points in two months in this environment, not so bad?

It's bad, because the averages have dropped so low. So, 2,000 points from the start of the year, that amounts to about 23 percent of the Dow's value. That's why it's worrisome. And the fact is, a lot of pros are saying we can go lower still.

I mean, frankly, it's always a futile exercise to try to call a market bottom or a top. What's discouraging is that the Dow has lost half of its value, more than half of its value since its all-time high in October of '07, not that long ago. And we're still saying, well, we may have further to go.

Some are calling it a blood bath, pure and simple. Perhaps the most succinct thing and the most dead-on is the fact so much is happening right now or going to happen, that you're not really seeing tangible, immediate results. How could you? The problems are so deep.

Ben Bernanke, you mentioned testifying right now, appearing to back Obama's stimulus plan. Among other things, he says economic recovery hinges on the government's ability to prop up financial -- shaky financial markets. Well, give you an example of that. Citigroup shares are up 5 percent today. That translates into 7 cents. This financial behemoth is now trading at $1.27 a share. It's a huge concern, Heidi.

COLLINS: Absolutely. Well, the government launched this new program, though, that we should be talking about. Treasury Department said it could actually generate up to $1 trillion in new lending? I mean, that could be great.

LISOVICZ: That's real money, Heidi. No question about it. It's very focused. It's for consumers and for small businesses to help on auto loans, credit cards, student loans. Of course, this is not just an area for small businesses and consumers. It's widespread.

At the top of the hour, we got new home sales, and they fell 7.7 percent in January. We get auto sales, auto sales are expected to pretty much match or exceed the losses that we saw in January, losses of 37 percent. So, you know, you're talking about -- this is not a two-alarm fire. This is a wildfire spread over a lot of terrain. We're going to need a lot of ammo to put it out.

And right now, the market is telling us it's really not seeing any recovery just yet. It's a forward-looking mechanism, but it's still not seeing it. Not yet, anyway. Although we are seeing gains, as you mentioned. The Dow up 56 points. Nasdaq is up 10. It's better than the alternative, Heidi.

COLLINS: Yes, it is. But we need a lot more. All right, Susan Lisovicz, thank you.

LISOVICZ: You're welcome.

COLLINS: You know, spring is only about three weeks away, but winter shows no sign of leaving any time soon. Hang on for your forecast.

(COMMERCIAL BREAK)

ROB MARCIANO, AMS METEOROLOGIST: Freezing from the Deep South to New England. It has stopped snowing in most parts, but roads are still icy and a mess. Tens of thousands of people still without power. Still some trying to make the best of it.

Snow a rare sight for these folks, these young ladies from Texas. They built a little snowman. They call it "the sign of the times." What does it say? "Brother, can you spare me a billion?". Yes, I think I could use a billion or two.

Welcome back to the CNN NEWSROOM.

(WEATHER REPORT)

COLLINS: The undead in your living room? Vampire power stays on even when your TV is off. We've got a couple ways to drive a stake through your utility bills.

(COMMERCIAL BREAK)

COLLINS: The vampire power. No, not a new horror movie. It's actually the energy your electronics are using, even when they're switched off. Stephanie Elam has our "Energy Fix" now from New York. Kind of creepy, Stephanie.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: It does sound a little creepy, Heidi, things going on in your house, you don't even know it. Well, the EPA says so-called vampire power costs the average household $100 a year. That's because many electronics still use energy even in the off mode in order to light display (INAUDIBLE) and keep memory chips and remote controls working.

Set top (ph) boxes are one of the biggest energy vampires. Alan Meier, a scientist at the Lawrence Berkeley National Lab says your DVR costs you about 40 bucks a year whether it's on or off, obviously. Unplugging it, that's really not that practical. Come on, you'll lose your shows, and you have to reboot everything. No one wants to do that.

COLLINS: Oh, tragic.

ELAM: Not going to do that. But there are Energy Star-rated set top (ph) boxes that use less power in the standby mode, so you ask your cable company about getting one, and perhaps you can work that out.

Now, on the flipside, your cell-phone charger isn't really that much of a vampire at all. Meier says even if you left it plugged into the wall all year, it would only cost you 50 cents, Heidi. I think generally, most people can afford that one.

COLLINS: All right. Well, those are just some of the ways then that we can sort of reduce these vampire costs, right? Are there other suggestions, too?

ELAM: Yes, sure. I mean, you could unplug all of your electronics and appliances when you aren't using them, but come on, let's face it. That's not always convenient or practical when the plug is way back behind some, you know, big fixture in your bedroom or something like that.

But one way to make it a little simpler, use a power strip for a cluster of items, say, your computer, your printer, the speakers, as well. That way, you only have one thing to unplug. So that could help out.

And if you've got a TV in a spare room, at least consider unplugging that until you need it. Also look for electronics that have the Energy Star label. They use less power in the stand-by mode, and so following these steps, they can really cut your vampire power use by as much as a third. And obviously, if you want more energy fixes, you can always go to CNNmoney.com to find out ways to, you know, keep the vampires out of your house.

COLLINS: Oh, very good. Like that idea. All right, Stephanie Elam with our "Energy Fix." Thank you.

ELAM: Sure. COLLINS: I'm Heidi Collins. You can join me again tomorrow morning beginning at 9 a.m. Eastern. For now, CNN NEWSROOM continues after a quick break with Tony Harris.