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Obama to Reveal Mortgage Fix Plan; Stock Slide Alters Retirement Plans for Many; Weathering the Financial Storms; Markets at Lowest Level in 12 Years; Wanted: Sudan's President; Friends to Continue Search for Missing Boaters; Michelle Obama Fighting for Military Families; Economy Tanks, Military Recruitment Surges
Aired March 04, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Staying in your house. President Obama ready to reveal the details of his mortgage fix but not everyone's getting a lifeline.
Endangered investments. The stork market slide changing many people's plans, forcing them to rethink retirement.
And one city has found a way to weather the financial storms, putting plenty away for a rainy day. We'll hear how they save the surplus.
It is Wednesday, March 4th. Hi, everybody, I'm Heidi Collins. You are in the CNN NEWSROOM.
Day 44 of the Obama presidency, and the president has a full schedule ahead. Next hour, he'll be talking about wasteful government spending. His plan aims to save tens of billions of dollars. And then he'll join Vice President Joe Biden for the economic daily briefing. And this evening President Obama and the first lady will host a dinner with congressional leaders.
This morning we are getting more details about how the administration plans to help homeowners at risk of foreclosure. Specifically, the guidelines will help banks identify those people most in need.
CNN's Suzanne Malveaux is looking at the big plan, and Christine Romans is tackling the bigger question, will it work. Let's go ahead and begin this morning now with Suzanne at the White House.
Good morning to you, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Heidi.
We expect to hear from the president within an hour or so. He's actually going to be talking about the fact that the government itself has been guilty of wasteful spending because they've been hiring private contractors to do the job, essentially, that government employees could do, and that Barack Obama, under his administration, is going to change that.
A couple of highlights that he'll be talking about in the next hour or so. He is going to talk about the need to stop outsourcing some services, also the fact that they're going to be ending some no- bid contracts, those that they feel are not necessary. And the president will highlight this saying that he believes it can save up to $40 billion a year, if, in fact, some of these very simple measures are taken.
So that's what we're going to hear from the president just moments away. We are also going to get more details today, as promised by the president, about his housing plan, who's eligible, who's not. That is going to go, obviously, to the banks as well as to lending institutions, but also on the Web sites of the Treasury Department as well as HUD, where you can get that information.
One of the things they are going to be talking about is the government feels that people are paying much too much of their gross monthly income on mortgage payments and that they should get it down to as low as 31 percent. Don't pay any more than 31 percent. So, we'll get some details who's actually qualified for that.
The other thing that could actually tap into 40 percent of homeowners, those are people who've basically had their mortgages set up through Fannie Mae, Freddie Mac. The home value so low that they really typically can't refinance. That, too, is going to change. We'll be getting more details about that as well, Heidi.
COLLINS: All right, yes, everybody's really wanting these details. Trying to figure out how it might or might not work for them in their personal situation.
Suzanne Malveaux at the White House for us this morning. Thank you, Suzanne.
We are going to bring you President Obama's remarks on government waste and how he plans to curb that spending. It is scheduled for the top of the hour, 10:00 Eastern, 7:00 Pacific.
Now let's look at the plan and whether it will actually work. Christine Romans is part of the CNN money team. She is joining us this morning from New York.
Boy, there are so many things to talk about. At least two different programs that we can identify here this morning, right?
CHRISTINE ROMANS, CNN CORRESPONDENT: That's right. That's right. And this is the broadest, most expansive kind of foreclosure fix we've seen yet. Heidi, we've seen a lot of different programs from the lenders, also from the government trying to steer lenders into voluntary programs.
This is the most standard effort we've seen and there's a lot of hope that this will help at least stem the bleeding in the housing market. But there are no guarantees here. Keep in mind, we have been hurting in housing for some 18 months now.
So what does this mean for you and what does it mean for the broader economy? First the first part of this plan. The first chunk of people who are affected, the government hopes to help 4 to 5 million mortgage holders, who -- who are current and able to pay their mortgage.
It would allow them to refinance into lower monthly payments. Maybe because your home is what we call underwater, the mortgage is -- is worth more than the house is worth.
COLLINS: Right.
ROMANS: That's underwater, you don't qualify for a refinancing.
COLLINS: Yes.
ROMANS: That's an awful lot of people, and it's a number, by the way, that is growing by the day. So that first group of homeowners, those are people who have their house, they have their job, it is their primary residence, they have what we call a conforming loan, which means it's not a jumbo, big jumbo loan.
The second group is 3 to 4 million homeowners who are behind and unable to pay their mortgage, the lender may lower the interest rates and/or the principal, go in there and modify the loans, so that people can afford to live in the house and make the payments.
The trouble here is that some of the surveys and studies have shown that modifications, a lot of people end up coming back in six months and are behind again.
COLLINS: Right.
ROMANS: The goal here is to find people who you can help, who aren't too far gone as some of the analysts have been saying, and you can help them and they can stay in their home.
There are also some interesting incentives for people, if they stay current and are paying their loan properly and on time for five years, I think it's five years, it might be three years, I'll have to check that number, but who keep up to date, then they could get some bonuses as well. Some payments to help them reduce the size of the loan in the end, too.
So there are a lot of different things in here. Again, we're still waiting for more details. Will it work? It is the first big attempt we've seen that is broad.
COLLINS: Yes.
ROMANS: So, this is the first chance we get to look -- or something will it help the broader housing market, which is, of course, where this whole thing started.
COLLINS: Yes, and you alluded to something that are really kind of stood out to some of us in the NEWSROOM today, when you look at these programs, just, you know, first glance. What about the people who don't have that income? What about all the people who've lost their jobs? ROMANS: You know, Heidi...
COLLINS: They don't fit here anywhere. I think you said too far gone.
ROMANS: There are some people, and this is just -- this is just the way it is. There are some people who are going to be renting again. There are some people who are in a home that was never appropriate for them.
COLLINS: Right.
ROMANS: In a loan that was never appropriate for them, for whatever reason, and now they don't have a job. And they need to be talking to their lender and talking to their family to figure out what is the best choice for them.
There are people that this program is trying to go -- 7 to 9 million people, the government says, that they think can afford to stay in the home that they're in with some modifications through refinancing and that's who they are trying to get here.
COLLINS: All right, understood. And we will continue to sort of go through this today, because there are so many details...
ROMANS: Sure. '
COLLINS: ... we want everybody to understand.
Christine Romans, thanks for that.
Homeowner bailout. Who needs the government's help most? Find out if you qualify with Gerri Willis. That will be coming your way at the half hour today.
Former leaders at Countrywide Mortgage are now making money off the government's bailout. "The New York Times" reports the company's former president, Stanford Kurland, is now buying up bad home loans from the federal government for pennies on the dollar.
Countrywide popularized the use of those subprime loans, blamed for bursting the housing bubble. Under the deal, Kurland's new company, PennyMac, gives 80 cents of every dollar they make back to the government.
And here's a rare bit of good news on the economy, we could all use that. A short time ago we learned there was actually a reduction in job cuts announced last month. Now, that's according to outplacement firm Challenger, Gray & Christmas.
The company says February saw a 23 percent reduction from January's figures which hit a seven-year high. That could raise hopes that job cuts may have peaked in January and fewer jobs will be eliminated in the coming months.
The president's top money men back on Capitol Hill today for the second straight day, in fact. Treasury secretary, Timothy Geithner, will try to reassure skeptical lawmakers. He says the administration's aggressive moves and hundreds of billions of dollars will pull the country out of its tailspin.
The same message is coming from White House budget director, Peter Orszag. He says the president's budget will benefit 95 percent of Americans and says it's time to end what he calls the era of irresponsibility.
(BEGIN VIDEO CLIP)
PETER ORSZAG, WHITE HOUSE BUDGET DIRECTOR: None of this is going to be easy, whether it's from -- in education, in energy, in health care, responsibly reducing the deficit in an honest way over the medium term. But as the country music singer Toby Keith once put it, there ain't no right way to do the wrong thing.
And this budget reflects that notion. In being honest and reducing the medium-term deficit in $2 trillion and in investing in education and energy and in moving toward a more efficient health care system with lower cost and higher quality, I hope you will all work with us to do the right thing.
(END VIDEO CLIP)
COLLINS: Love me some, Toby Keith.
Time now to take stock and see where your investments might be headed today. Wall Street points to a higher open. At the bottom of the hour, stocks appear headed to rebound from those 12-year lows.
Asian markets climbed overnight. China's Shanghai index shot up 6 percent and Japan's Nikkei closed up less than one percentage point. Stocks in Europe have been mostly higher in earlier trading as well.
All but a memory. The snow on the East Coast has either melted or been pushed aside. Trains and planes are back on schedule. Less than 15,000 homes in Virginia and the Carolinas are still in the dark, though. But utility crews are hoping to have their power back on by tonight.
So that's some good news. But, yuck, I know what they're talking about. Pushed aside, that means that dirty, brown, gross snow. Right?
ROB MARCIANO, CNN METEOROLOGIST: Yes, you know, the snow is nice for the first day, the first half a day.
COLLINS: Yes.
MARCIANO: And then it gets a little nasty.
(WEATHER REPORT)
MARCIANO: Heidi, back over to you.
COLLINS: All right, very good. Rob, we'll check back later on. Thank you.
MARCIANO: You got it.
COLLINS: Within the last hour, an arrest warrant issued for the president of Sudan. The International Criminal Court is charging Omar al-Bashir with crimes against humanity for the genocide in Darfur. The U.N. says 300,000 people have died in Darfur and nearly three million have been forced from their homes.
We're going to stay on top of this story and bring you any new information as it develops.
A suicide attack this morning targets the main U.S. military base in Afghanistan. Three American civilian contractors were injured at Bagram base, it's north of Kabul. The Taliban quickly claimed responsibility for the car bomb. And earlier, three Canadian soldiers were killed in a roadside bomb attack in southern Afghanistan.
And developing right now, new information involving the administration's housing plan. We told you a little bit about it so far this morning. We've just gotten some more details on it. Going to bring them you to very, very shortly.
Plus, stocks go retro, feels like 1997 on Wall Street all over again. When will your 401(k) get back to the future, though?
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.
COLLINS: Struggling homeowners looking for a lifeline. We're getting new details right now about the president's foreclosure prevention plan.
Our personal finance editor, Gerri Willis, is joining us now with more on that. I know you've been poring over this now.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right.
COLLINS: And we have some official details.
WILLIS: We have official details right now. Today, according to the administration, is the start of a major outreach program by lenders and government agency representatives to people who are in trouble with their mortgage.
Now you should know that agency representatives, representatives of the federal government, are planning to fan out across the country to bring details of this program to people who are in trouble. They're going to go to home ownership events across the country.
If you are using a housing counselor, the housing counselors are going to be informed of the terms of this new program. Your point of contact if you're behind on your mortgage today, if you're simply struggling to pay it, is your lender, your servicer or a housing counselor.
And you can always go to hud.gov to find a housing counselor. They have people across the country.
Now I want to talk a little bit about what the program is and who's eligible for help. It's $75 billion program expected to help nine million homeowners. There are two programs. One is for people who are underwater on that mortgage. It means that they owe more than that house is currently worth.
Borrowers current on their mortgage but can't refi because of falling home prices. Now, their loan has to be held by Fannie Mae or Freddie Mac. I know that sounds like a mouthful. Just call your lender and ask. They can tell you. And you have to have income. You have to be working to be able to pay the new loan.
Here's what you get. It allows a borrower to refinance into a new loan with a lower monthly payment or to avoid rate resets. Now the detail here is that there's no principal reduction. Your mortgage doesn't shrink, but borrowers could save money over the life of the loan with a lower interest rate.
Now, the second initiative, totally different. It's designed to help people who are really struggling to pay. Maybe they're behind on their mortgage, afraid of losing their house. Here's who qualifies. Borrowers who are behind, as I just said, the mortgage has to be for a primary home. You can't be an investor, a house flipper. Those folks don't qualify.
Your monthly mortgage bill has to be more than 31 percent of your monthly gross income which is really the rule of thumb for safety in a mortgage. What you get is the lender may lower interest rates and/or principal balance through loan modification. It's estimated here to help 3 to 4 million homeowners avoid foreclosure.
Now, if you're in the situation today, you're having a lot of trouble with your mortgage, you want to see if you qualify, here's what you do -- you get together a lot of data: proof of income, including your pay stubs; your most recent income tax return; your second-mortgage docs, if you have them; credit card payments; info on other loans including student loans and car loans.
You're going to need all that information to give to your lender, your servicer, your housing counselor. The detail here that was just released this morning, we broke it in "AMERICAN MORNING" earlier today, this is going to include second mortgages. So, if you have a home equity line of credit, a conventional second, there will be incentive for lenders there to participate in the program.
Heidi, the big problem has been to date that if you had a first and a second loan, getting the two lenders to agree...
COLLINS: Yes. Absolutely.
WILLIS: ... to modify both pieces, it just didn't happen. So this could help people in that situation. But, again, big $75 billion program, it's rolling out today. You need to get on the phone. Call people if you're having trouble, to get some assistance.
COLLINS: OK, so, quickly, you may not know the answer to this, but just in case, you know, people have been waiting to hear about this, and now they know because you said, you know, exactly what they would need as far as paperwork to send in.
Is there going to be some sort of official document that you fill out that says, hey, this is what I'm providing you with all my information, I'm sending it to my lender, as you say, and now I wait for this check to come in the mail or for all of my terms of my loans to be changed, or what really logistically will happen from there?
WILLIS: That's a great question. You're going to get a new loan or a modified loan. You're going to get your existing loan reworked. So, you're going to be working with the same kind of conventional documentation that you always have. It's actually going to be worked through lenders conventionally now with some help from counselors.
So you're going to be used to the details, you're going to be used to seeing these documentations because you've already done it before. You should know, though, that servicers and lenders are being provided with information all over the country about the details of this.
So they're going to be on board, too, with information whether you qualify or not. I think that's one of the big details. Also, the Treasury Department says online help is coming with more details for consumers out there who want to know, hey, can I be a part of this.
COLLINS: Yes, yes.
WILLIS: But at the end of the day you need to, you know, grab all your conventional details, all the loans, loan information, income information, credit card information, second home loan information, because you're going to need all of that to get help.
COLLINS: All right. Very good. And my lender's going to answer the phone when I call them, right?
WILLIS: You know, I think the earlier you call the better. Because my guess is those phone lines are going to be burning. And if you can't get through, my advice, try to get a housing counselor.
COLLINS: OK.
WILLIS: Because they may be able to cut through the red tape and get somebody to pick up on the telephone.
COLLINS: OK. Very good. Gerri, thanks so much.
WILLIS: My pleasure.
COLLINS: We'll check back with you later on.
If you want to hear better, watch carefully. We'll tell you what could be lost in translation when you talk over the phone. (COMMERCIAL BREAK)
COLLINS: Do you ever wonder why face-to-face conversations often turn out better than ones you have on the phone? Well, a new study may have the answer. Our chief medical correspondent, Dr. Sanjay Gupta, is joining us now.
Now, well, it kind of -- no, I don't wonder. I mean, it's always much better to have personal interaction, isn't it?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: What did you say?
(LAUGHTER)
GUPTA: No, you...
COLLINS: Are you talking to me?
GUPTA: That's right. You know, it's amazing to me people have conference calls with people just down the hall.
COLLINS: It's weird.
GUPTA: And it is weird. And this idea of people talking to someone, seeing them and hearing them at the same time has become somewhat antiquated, but the study was trying to look at that very issue, trying to figure out how much of a difference does it make if you see the person as well as hear them.
COLLINS: All right. So, obviously, we're talking about teleconferencing. A lot more people now are working from home.
GUPTA: Yes.
COLLINS: They're doing their e-mail there and they're getting on the phone for these conference calls.
GUPTA: That's right, telecommuting, you do your work from home or from the car and you're on the phone a lot of the time. They say that 13.5 million people do it regularly.
COLLINS: Really?
GUPTA: Over 20 million people do it at least once a week. So it's become something that's quite common. But they wanted to figure out how much of a difference does it really make. So they did this study, and they basically -- what they had was they showed a woman talking and it was sort of a moderately loud environment, so first you could just hear her talking. Maybe a bad cell phone connection or some place...
COLLINS: There she is.
GUPTA: There she is. Only 10 percent of the time do people get every word correct, 10 percent of the time. COLLINS: Yes.
GUPTA: When you could see...
COLLINS: It's hard to hear sometimes.
GUPTA: Yes, exactly.
COLLINS: I've been on many of them. Yes.
GUPTA: And when you see them as well as hear them, it jumped sixfold to 60 percent. So, imagine that, just seeing them and hearing them at the same time a sixfold improvement in overall communication. Incidentally, and I found this fascinating as well, if you couldn't hear them but simply see them, you still got it right about 6 percent of the time.
COLLINS: OK.
GUPTA: So audio alone, video alone, bad, add both together and exponentially better.
COLLINS: Sure. Sure. All right. So then what is it about the combination of sound and lip movement, maybe, if you will...
GUPTA: Right.
COLLINS: ... that really enhances our ability to comprehend the words that are being said and the ideas, I imagine, too?
GUPTA: Yes.
COLLINS: Is this something that happens to the brain?
GUPTA: It is. And, you know, we are pretty good lip-readers. Even if we don't need to lip-read, we do it instinctively as human beings, we read people's lips.
COLLINS: Especially if you have children and you're trying to...
GUPTA: That's right. And they read your lips even if (INAUDIBLE). But what's interesting is, you know, when you see something versus hear something, you do process those in different areas of the brain. Take a look at those rotating brain, take half of it away. There's only area of the brain that processes both at the same time your ability to see and hear.
You're looking at it right there, that area that's lighting up. It's the superior colliculus. Can't read my lips on that one.
COLLINS: Superior colliculus?
GUPTA: There you go.
And so if you can get that area to activate, like you see there, you have a much better chance of communicating well. COLLINS: Cool.
GUPTA: So seeing and hearing together, the best possibility like we're doing right now.
COLLINS: Yes, very good.
GUPTA: We communicate very well.
COLLINS: So what does this mean? More meetings? More face-to- face meetings?
GUPTA: I think less conference calls, maybe less texting, which you like to do, more face to face. Why am I -- why am I -- I don't know.
COLLINS: No. No. I just like the rotating brain. A lot, a lot. It rotates all the time.
GUPTA: I'm going to be working into every segment on your show from now on.
COLLINS: Dr. Sanjay Gupta, it is a cool study. Thanks so much.
GUPTA: Thank you.
COLLINS: Avoiding foreclosure. Who qualifies for the president's plan to help struggling homeowners? Get the answers right here.
(COMMERCIAL BREAK)
COLLINS: We could finally see some relief on Wall Street after five straight days of heavy selling, as Susan Lisovicz at the New York Stock Exchange with a look of the trading day ahead.
Hey there, Susan. This could be good?
(LAUGHTER)
SUSAN LISOVICZ, CNN CORRESPONDENT: Well, yes. It would have been nice if we'd got it yesterday.
COLLINS: Yes.
LISOVICZ: After the Dow closed below 7000 for the first time since the late '90s. But we are expecting a bounce back in the next few minutes. Actually, the Dow hit a fresh 12-year low yesterday. And the S&P 500 closed at its lowest level since 1996.
In about half an hour, we'll get a read on the services sector, that's the biggest part of the U.S. economy. Later this afternoon, the Federal Reserve releases its beige book, an assessment of the economy by region and, yes, the book is beige.
COLLINS: Yes. LISOVICZ: But in the meantime, it's...
COLLINS: Very beige.
LISOVICZ: Yes. Well, beige is better than black, I think, and that's unfortunately when we're going to talk about a color associating with the jobs market, that would be it. Payroll services firm ADP says nearly 700,000 jobs were cut last month, and the January numbers were revised to be worse than originally reported. ADP says the recession has spread and small-sized companies are now cutting jobs, too.
Separately outplacement firm, Challenger, Gray & Christmas said more than 186,600 layoffs were announced in February. The reports are the sign of what to expect on Friday when the government releases the jobs report for the month. That report expected to show the unemployment rate rising to 7.9 percent with job cuts totaling 650,000.
New quarterly results show companies are cutting back. Wholesaler Costco said its profits fell more than 25 percent due to heavy discounting and because shoppers have just sticking to the basics like food.
Let's talk about the basics. Here we are 30 seconds into the trading day. Check it out, Heidi. The Dow is up 84 points or 1.25 percent. The Nasdaq is up 1.66 percent. The broader S&P 500 is up one percent. Good start. That's nice. Good closes, even better.
And, you know, one thing to keep in mind -- remember, bear market bottoms often found when the news seems to be the bleakest.
COLLINS: Yes.
LISOVICZ: I just wanted -- I just wanted to put it out there.
(CROSSTALK)
COLLINS: Good reminder. Yes, absolutely. So, there's something to always be clinging to here. That's what we'll try to do. Susan Lisovicz --
LISOVICZ: Let me be your life preserver.
COLLINS: Thank you, we'll take it. All right, we'll check back later on.
Wall Street has turned the calendar back it seems to 1997. But living with losses has become an unfortunate way of life for many 401(k) investors. When will stocks get back to the future? Our Mary Snow takes a look.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): Adding to worries about soaring unemployment and home foreclosures, the stock market dropping to 1997 levels, wiping out years of investment savings for people like Cory Hutchison.
CORY HUTCHISON, INVESTOR: Damaged would be pretty accurate. I have taken a very serious hit on all the investments. All the money that I have put in has seriously depreciated.
SNOW: Hutchison estimates he's lost 60 percent of his 401(k) investments. But the 30-year-old software consultant who is expecting a second child says he will keep putting money into his 401(k).
HUTCHISON: I'm fortunate enough that I'm young enough that this hit hurts, but I have got a long time to recover from it.
SNOW: But many others aren't as calm. It's estimated Americans pulled $35 billion out of stock funds last month. And it's turned financial adviser Pran Tiku into more of a therapist these days for his 250 clients.
PRAN TIKU, PRESIDENT, PEAK FINANCIAL MANAGEMENT: I think that's a major part of our role right now, is to hold hands and make sure that they understand that there is a long-term and we will at the end of the day come out of this.
SNOW: To come out of it, though, will take years, years many older Americans were hoping to spend in retirement. But financial adviser Ryan Mack says dwindled 401(k)s are forcing people to change life plans.
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: We're getting far too many calls from individuals who are saying, Ryan, I have lost half the value of my 401(k), and I should be retired right now.
SNOW: Cory Hutchison says he tries to help out some of his older relatives who have lost money. And one personal finance columnist says Cory's situation is not uncommon.
TERRY SAVAGE, FINANCIAL COLUMNIST, "THE CHICAGO SUN-TIMES": It may very well be, can adult children provide support for their parents, as the retirement assets they expected to have simply have disappeared?
(END VIDEOTAPE)
SNOW: So, Heidi, the big question is how long will it take to recoup the losses? There's no simple equation. And we asked financial advisers who say that one bright spot is that sharp declines are often followed by sharp recoveries. But in terms of making up for lost ground, they say it could take three years to make up for a big chunk of that lost ground, but that's once the market rebounds.
COLLINS: Yes.
SNOW: And there's a lot of "ifs" in that equation.
COLLINS: Yes, absolutely. Unfortunately, that is always the word when we're talking about stocks "if."
SNOW: Yes.
COLLINS: Thanks so much, Mary Snow. Appreciate that.
SNOW: Sure.
COLLINS: 401(k) retirement savings vanishing before your eyes. So what do you do? What's the best advice for you? Stay in the market or get out? Get some expert advice from an investment pro next hour, right here on the CNN NEWSROOM.
Cutting back on wasteful government spending and saving taxpayers tens of billions of dollars. In about 30 minutes, we expect to hear how President Obama plans to do that. He is set to talk about his plan at 10:00 Eastern, 7:00 a.m. on the West Coast. And, of course, we will bring it to you live when it happens.
We are also getting a lot more details this morning about how the administration plans to help financially strapped homeowners stay in their homes. To find out more about whether you qualify for the president's foreclosure prevention plan, logon to our Web site at cnnmoney.com. A lot of information there to check out.
Safe at home but still badly shaken. The Sri Lankan national cricket team returned to the capital, Colombo, today, thankful to be alive. Six Pakistani police officers and a bus driver died. And eight players were injured when at least several gunmen opened fire on the team's bus in Pakistan yesterday. An intense search for the suspects is going on. Pakistani officials are offering a $125,000 reward for any information leading to their capture.
Hundreds of thousands of people dead in Darfur. Millions more forced from their homes. And now, an international court wants to hold Sudanese President Omar Hassan al-Bashir responsible. But serving the arrest warrant could be tough.
Chief international correspondent Christiane Amanpour is joining us from New York.
Christiane, tough is probably an understatement in all of this. The warrant doesn't include the crimes of genocide. So, what does this really mean?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, it means a lot, Heidi. This is really a game-changer now in that part of the world. It means that the ICT, the International Criminal Court, mandated by the United Nations Security Council, has indicted its first sitting head of state, for these crimes that are being committed, allegedly, over the last six years. Now, they didn't get genocide, but they did very high crimes under international law, crimes against humanity, war crime, and other violations of the laws and orders of war.
Now, Sudan, as you can imagine today, in the immediate aftermath of that indictment and the arrest warrant that was issued, has completely rejected the allegations and completely denies that the government and certainly the president was involved. But in terms of the arrest, that is going to be challenging, as the prosecutor today admitted, there is no police force that the prosecutor had. There are no U.N. or others who are mandated to do that. Even the peacekeeping force in Darfur is definitely not out of Darfur or mandated to get Bashir. And the Sudanese authorities haven't done it.
COLLINS: Well, so then, who's going to do this? I mean, will he be taken out forcibly?
AMANPOUR: Well, yes, it is possible. Listen, I've been covering these things for years now. Everybody said, oh, we're never going to get Slobodan Milosevic, we're never going to get Karadzic, we're never going to get Charles Taylor from Liberia. Well, in the end, it is possible.
It takes work, it takes effort, and it takes the international community deciding that it will stand for the rule of law and will abide by U.N. Security Council resolutions. What the prosecutor said today, Luis Moreno Ocampo at The Hague, he said that Sudan is a member of the international community, it is not a failed state. And if the president chooses to leave on any kind of official or unofficial visit, he's apparently got some visit coming up soon, then he expects that his plane could be intercepted and brought down for him to face justice. Wow.
The bottom line is that it could be challenging, but it will happen or given past experience, it is likely that it will happen at some point. But it does take the world working together and deciding that there is going to be a consensus to make this arrest warrant stick and to make this indictment meaningful under international law.
COLLINS: Absolutely. International law being the key as well. Christiane Amanpour, sure do appreciate that. We'll continue to follow the story alongside you.
A faulty altimeter is being blamed for the crash of a Turkish airline Boeing 737 near Amsterdam last week. Nine people were killed. Now, Boeing is being asked to warn other airlines about the failures. The altimeter measures altitude. Investigators say the plane was on autopilot when it crashed. They say the plane had experienced altimeter problems twice before.
With all the massive spending projects that have been coming out of Washington, are you feeling any more confident about the economy? Our Josh Levs has all the answers to that.
I'm so excited! What are the answers, Josh?
JOSH LEVS, CNN CORRESPONDENT: We are getting a lot of answers this morning, actually. They're coming in really quickly. I'll have your chance to weigh in. We've got iReport and Facebook and e-mail.
This is the question -- are you more or less confident about the economy? You can go on Facebook with my page Josh Levs CNN, or e-mail us there, cnnnewsroom@cnn.com. We'll have your responses in a few minutes.
(COMMERCIAL BREAK)
COLLINS: The Coast Guard has called off their search for three missing boaters off the gulf coast of Florida. But the families aren't ready to give up. Friends of the missing men will continue to search today. Still missing, are NFL players Marquis Cooper and Corey Smith, and a former college football player William Bleakley.
Searchers found a cooler and a life vest about 16 miles from where the boat and one survivor was found. The boat overturned in bad weather on Saturday night.
(BEGIN VIDEO CLIP)
BRUCE COOPER, FATHER OF MARQUIS COOPER: There's a lot of things that we had to come to grips with. A lot of things that we've got to work on. But we all agreed unanimously that we're not giving up hope.
I believe in my heart that he's out there fighting to get back, because he knows he has a daughter and a wife and a lot of people who love him to get back to. So, that's -- that's really what I'm clinging on to.
(END VIDEO CLIP)
COLLINS: I hope so. A friend and survivor Nick Schuyler says Schuyler told him they saw a helicopter on the first night, but it didn't see them.
Rob Marciano standing by in the weather center now.
Talking about some cold temperatures, East Coast snowstorm, but you're on the West Coast.
(WEATHER REPORT)
COLLINS: OK, good. All right, we'll check back later on. Once again, Rob, thank you.
MARCIANO: OK. You got it.
COLLINS: The military could have a new weapon, Michelle Obama. That's the first lady. She's making good on her campaign promise to fight for support for military families. Erica Hill has the story.
(BEGIN VIDEOTAPE)
ERICA HILL, CNN CORRESPONDENT (voice-over): Lisa Pagan spent more than three years in the Army. And while her active duty ended in 2005, she's in the ready reserves through next year. This week, she reported for duty at Fort Benning with her two young children in tow. Her husband travels for work. Their families live out of state, and she says there's no one else to care for them.
LISA PAGAN, MILITARY MOM: That's what all of this is all about, is just them, what's in the best interest for them.
HILL: A feeling and a situation thousands across the country can relate to as they struggle with their duty to country and to family. It's a cause Michelle Obama championed on the campaign trail.
MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: We have to remember that when our troops go to war, our families go with them.
HILL: At Arlington National Cemetery, she addressed those challenges as first lady.
M. OBAMA: Military families have done their duty and we, as a grateful nation, must do ours. We must do everything in our power to honor them by supporting them. Not just by word, but by deed.
HILL: Mrs. Obama was on hand to commemorate Women's History Month, but for military families, her visit meant much more.
KATHLEEN MOAKLER, ARMY SPOUSE AND MOTHER: We have every hope and expectation that she will be a great help to military families in raising the visibility of their sacrifice.
HILL: Kathleen Moakler lived that sacrifice. Her husband served in the Army for 28 years. Two of her three children followed. And as director of government relations for the National Military Family Association, she spends her days making sure families like hers get what they need.
MOAKLER: One of the things that we're concerned about is reintegration. They need a time of adjustment. Families need to have the proper tools to help them make that adjustment. We are also concerned about the long-term effects of deployment on our military children.
HILL: Issues the first lady has promised to champion and resources people like Lisa Pagan need. Pagan was granted an exemption this week and will be discharged, but her situation isn't unique. As families continue to struggle, there is some comfort in being noticed.
MOAKLER: While our military families are happy and proud of the sacrifices they make, that recognition is like the icing on the cake.
HILL: And proof these small words go a long way.
M. OBAMA: Thank you so much.
HILL: Erica Hill, CNN, New York.
(END VIDEOTAPE)
COLLINS: The unemployment crisis. Why some Americans are taking a potentially risky way out?
(COMMERCIAL BREAK)
COLLINS: Necessity, the new mother of convention? Well, some enterprising minds have figured out a way to party their way into employment by hosting the first-ever laid off camp in San Francisco. It's a social meeting of the minds that matches job seekers with prospective employers in a stress-free environment. The camps make networking so natural. Two more events are already scheduled, and dozens more are in the works.
With tax time approaching, a lot of people are giving thoughts to whether or not they should keep contributing to a 401(k). That all depends on how you feel about the market.
Our Josh Levs is looking at your thoughts on that, and on the economy in general.
Hey, Josh.
LEVS: Hey there, Heidi. A lot of people weighing in on that today. It's really interesting. One of our superstar iReporters Chris Morrow responded to this question. Are you afraid to invest in the stock market by interviewing a couple of people, beginning with her husband, Marty.
(BEGIN VIDEO CLIP)
CHRIS MORROW, IREPORTER: Putting my money in my 401(k), maximizing my contributions, and when times were good, I thought it was not really performing all that well. When times are bad, I can see the performance on the negative side. So my confidence in the market? Do I think it's going to rebound? My lips say yes, but my confidence is weaning.
(END VIDEO CLIP)
LEVS: But she did get a little bit more of an optimistic view from Abdan Rasheed.
(BEGIN VIDEO CLIP)
ABDAN RASHEED, IREPORTER: We're all gamblers. I think we should put some money in there and try to win. And I think we can make the stock market go back up by investing in there and, you know, putting a little bit of confidence in the system.
(END VIDEO CLIP)
LEVS: All right. So what we've done this morning is we've broadened out the question. We're asking you in general, are you feeling more or less confident about the economy? I posted already this morning, right here on my Facebook page, Josh Levs CNN. You can join the discussion. Feeling more or less confident about the economy?
And Heidi, I'll show you some of the reactions we've gotten already. Ken wrote this, "I feel more confident about the economy. I purchased some stock in the last two weeks. There are some remarkable bargains I wouldn't otherwise be able to afford." Now over here, Ogbonnaya wrote, "I'm feeling pretty confident the U.S. economy will bounce back. It's taken very deep stabs and gashes from the past policies and sundry misjudgments of the past administration. Right now, Uncle Sam is in the intensive care unit, struggling to survive. However, I believe that we have a competent political physician at the helm."
And let's toss in one more. Barton Brown, not too happy right now. He wrote this, "Past denial and heading toward fear."
Quickly, let's show the graphic that will tell everyone the question, because I'll be back next hour to read more of it.
Are you more or less confident about the economy? Join the discussion right now. On my Facebook page, Josh Levs CNN or e-mail cnnnewsroom@cnn.com.
And, Heidi, I'll see you pretty early on the next hour with some reactions.
COLLINS: Good. Good. I'm glad you're doing this, because it is important to sort of try to gauge what everybody is feeling these days.
LEVS: And every day is a little different.
COLLINS: Yes, it is.
All right, Josh, thanks.
LEVS: Thanks, Heidi.
COLLINS: The economy is tanking. Unemployment is rising. So where do you turn if you can't find a paycheck? More Americans are finding the answer in uniform. CNN Pentagon correspondent Barbara Starr explains.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): With the economy in shambles and unemployment on the rise, the Pentagon is finding many young people are making their way to the recruiting office.
From 2005 to 2007, when violence in Iraq was at record levels, recruiters couldn't meet their goals, and many troops were getting out of the service as fast as they could. Now it seems everybody wants in.
VICE ADMIRAL MARK FERGUSON, CHIEF OF NAVAL PERSONNEL: We see individuals reenlisting at greater than our required levels.
STARR: Already, the Army and Marine Corps have achieved a plan troop increase months ahead of schedule. But, still, there are problems. CURTIS GILROY, U.S. DEFENSE DEPARTMENT: As the economy continues to dip and unemployment rises, recruiting should be somewhat less difficult. We know this. But the economy is not the only driver of our attention and our recruiting programs.
STARR: Recruiters still find parents are much less likely these days to encourage their children to join the military. These commercials are an effort to change that.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I found someone to pay for me to go to college.
UNIDENTIFIED FEMALE: Go on.
(END VIDEO CLIP)
STARR: But finding enough young Americans really able to serve remains a challenge.
The Pentagon says much of today's youth is simply unqualified. Obesity, drug and alcohol problems and lack of education means only 25 percent of Americans age 17 to 24 are qualified for military service.
(on camera): So many are signing up for repeat tours of duty that the Pentagon is eliminating some of those signing bonuses. They're just simply no longer needed.
Barbara Starr, CNN, the Pentagon.
(END VIDEOTAPE)
COLLINS: At a time when economic clouds are gathering all over the country, how does one California city have so much rainy-day money to spare?
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
LATREASA GOODMAN, UNSATISFIED CUSTOMER: I don't feel like -- I just like -- the officer told me, and by the way, ma'am, there were some issues of 911. It was not an emergency. And I told him, well, officer, I'm not aware there were issues with 911. I feel like (INAUDIBLE). I come in a fast food restaurant, hand her my money, she gives me the change, and she doesn't have what I want. And I feel like I have the right to call police before -- instead of jumping across the counter at her, now I'm getting all kind of phone calls -- (INAUDIBLE), I see your picture on the news, you're on the news, and chicken nugget lady and all type of (EXPLETIVE DELETED).
(END VIDEO CLIP)
COLLINS: Hungry for Chicken McNuggets. A Florida woman is now charged with misusing 911 after her local McDonald's ran out of them. She called the emergency number three times when the restaurant wouldn't give her a full refund. Instead, they offered her other items off the menu.
McDonald's issued a statement saying, "We apologize and never want to disappoint a McNuggets fan." They also say she should have been offered a full refund. And they'll be sending her the money back, along with an invitation to return for her original order for free.
A lot of cities and towns are laying off people and slashing budgets right now. We have been reporting about it for a while. But Citrus Heights, California doesn't have those kinds of problems. The city has 35 million bucks in reserve, more than enough to cover the budget. That should lead to a surplus, and city leaders say it's no accident.
(BEGIN VIDEO CLIP)
HENRY TINGLE, CITY MANAGER: We had a policy of socking away as much money as we could, because we think this very day would come. I have been accused of being, you know, a penny-pincher, but it's paying big dividends for the city now.
(END VIDEO CLIP)
COLLINS: The city never borrows money and limits pet projects. Some leaders also pull double duty at other city offices.
