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Upbeat comments from Ben Bernanke on the economy; A Small Business Story with a Surprising Twist; Hard Times Hit the Nonprofit; A Bible Study Miracle Warms Heart in a Small Community
Aired March 16, 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: Surviving these tough times. We know the economy is on your mind and we're putting you on the road to rescue. Our special week-long focus gets started right now.
This hour what to do if you're laid off. One way to stretch your dollar and your e-mail questions.
It's Monday, March 16th. Hi, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.
Well, you have to understand this crisis first in order to deal with it, right? So we've got you covered today. If you are unemployed or facing a job loss, you're worried about your family's future, or just trying to figure out what's been going on in the financial world, we are going to help guide you through it all.
Right now, Elaine Quijano is covering new taxpayer outrage over AIG. Christine Romans on the Fed chairman's prediction about a turnaround. That's very interesting. And Suzanne Malveaux on an Obama administration plan to help small businesses.
Suzanne, let's start with you today. What are we going to expect here for small businesses?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Heidi, if you think about it, 90 percent of the new jobs in the last decade created by small businesses so they're going to hit this and hit it pretty hard.
President Obama and the Treasury secretary announcing one of the big things here is greater loan guarantees for these banks that lend money to the small businesses. They're going to increase that loan guarantee up to 90 percent for that money to be backed by the federal government.
This is the hope that the banks will have a greater incentive to loan money to these businesses and to thaw that credit crunch.
The second thing that they are going to do is to eliminate temporarily some of those fees that the banks actually put on those borrowers. That is something to the tune of tens of thousands of dollars.
Honestly, Heidi, they recognize that every little bit counts so they're going to try to give those small businesses a break. Heidi? COLLINS: All right. Well, we also know that one of the president's topic economic advisers, Christina Romer, appeared on NBC's "Meet the Press" this week. We've spoken with Miss Romer as well. And I wonder if you'll listen with me and hear what she has to say and I have a question for you.
(BEGIN VIDEO CLIP)
CHRISTINA ROMER, CHAIRWOMAN, COUNCIL OF ECONOMIC ADVISERS: Of course, the fundamentals are sound in the sense that the American workers are sound. We have a good capital stock. We have good technology. We know that temporarily, we're in a mess, right?
We have seen huge job loss. We have seen very large falls in GDPs.
(END VIDEO CLIP)
COLLINS: Suzanne, during the campaign, the McCain was kind of blasted for saying what sounds like very much the same thing here. How does the administration square this out?
MALVEAUX: Very much so. And aides say that they've realize it was a political opportunity when it happened that he sounded very much like he was out of touch with what was going on in the economy.
They don't necessarily have a problem with this, because they feel that every time you have somebody like a Christina Romer or Ben Bernanke or even the president coming out last week with a unified optimistic message, they are seeing the markets actually react to that and that there's more confidence in this thing turning around.
So, yes, they said yes, it's a political opportunity, very similar to what John McCain said. But, look, reality is here. They need to turn things around and the market is responding.
COLLINS: All right. Suzanne Malveaux, thanks so much, outside of the White House this morning.
So just a reminder now. President Obama and Treasury secretary, Timothy Geithner, are going to be giving us details about the small business plan you heard Suzanne mentioning. It's going to happen at noon Eastern and we will bring it to you live when it happens.
So it's a question that everyone seems to be asking, when will the recession end? Fed chairman Ben Bernanke gave his answer on "60 Minutes" last night.
(BEGIN VIDEO CLIP)
BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: It depends a lot on the financial system. The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.
Now we've seen some progress in the financial markets. Absolutely. But until we get that stabilized and working normally, we're not going to see recovery. But we do have a plan. We're working on it. And I do think that we will get it stabilized and we'll see the recession coming to an end probably this year. We'll see recovery beginning next year. And it will pick up steam over time.
(END VIDEO CLIP)
COLLINS: Christine Romans is joining us now from New York.
So, Christine, this was a pretty unprecedented interview here.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes, I want to be very clear here. Sitting Fed chairman, the person who runs the Central Bank of the U.S., they do not do interviews, because what they say is so incredibly important to the markets.
COLLINS: Yes.
ROMANS: They just don't. But he was asked why did you agree to this interview? And he said, you know, these are extraordinary times and I wanted to speak directly to the American people, he said.
COLLINS: Well, he also says, obviously, as we heard, that we'll probably going to see the recession coming to an end this year?
ROMANS: This year, a recovery beginning next year. He has said this before. He said this at congressional testimony. He's, frankly, kind of the most detailed on his forecast of other people -- other policymakers who have, you know, the recovery in their hands here.
But he is saying that he thinks we can turn things around if we can stabilize the financial system. That's a big if.
COLLINS: Yes. It is.
ROMANS: He said that they're going to let any of the big banks go down. He said that, if banks have to fail, they're going to unwind them in a responsible way. He basically, for all of those people out there who are saying, why are we throwing so much money at the banks?
COLLINS: Right.
ROMANS: He basically put a period on the sentence we are not going to let the banks fail. That was the mistake that caused the great depression. He is not going to do that.
COLLINS: All right, so, then, obviously, we're seeing a more unified message coming out of Washington about this crisis but he's really the only guy talking about recovery.
ROMANS: Yes. He's the one who's really -- twice now -- gone out and said when he thinks the recovery is going to begin. But over the past week, over five days, remember, Timothy Geithner, the Treasury secretary, on "Charlie Rose." We had appearances last week by Paul Volcker, Christina Romer, also Larry Summers. These are advisers to the president who are coming out and talking about putting together these pillars of a foundation of the economy.
COLLINS: Right.
ROMANS: And now Ben Bernanke, the Fed chief. So whether by accident or by design, the message is more unified here. And I will say that the gloom has lifted because the economic statistics are still pretty tough. We have our own opinion research corporation poll that are showing people are still pessimistic about their job.
COLLINS: Right.
ROMANS: But I will say that the gloom isn't as thick is a good way to look at it and the market has been able to put together four higher days, Heidi. The Dow was up 9 percent last week so that's something.
COLLINS: I know.
ROMANS: It's definitely something.
COLLINS: It's the luck of the Irish tomorrow.
ROMANS: Yes. I guess so. Maybe. Maybe.
COLLINS: All right. Christine, thanks so much. Appreciate that.
ROMANS: Sure.
COLLINS: Bailed-out insurance giant AIG now. The company has been propped up four times with your money and this weekend it handed out a ton of money in bonus and retention pay to workers in the very unit that helped leave the company in such a mess.
Here now CNN's Elaine Quijano.
(BEGIN VIDEOTAPE)
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (voice-over): Outrage over word that AIG is doling out $165 million in planned bonuses to senior employees despite getting $170 billion in government bailout money.
LAWRENCE SUMMERS, DIRECTOR, NATIONAL ECONOMIC COUNCIL: There are a lot of terrible things that have happened in the last 18 months. But what's happened to AIG is the most outrageous.
QUIJANO: In a letter to Treasury Secretary Tim Geithner, the company's CEO, Edward Liddy, explained because of contracts in place before the bailout, AIG's hands are tied. And he warned of serious legal, as well as business consequences for not paying the bonuses.
In other words, AIG says it could lose its top performers to higher paying jobs. The company could go under and the 170 billion taxpayer dollars, all for nothing.
The Obama administration insists it did lean on AIG to pull back on the bonuses.
ROMER: We're the first people to be angry so, absolutely. Secretary Geithner has been furious and has been pushing back, urging them to renegotiate this. We're pursuing every legal means to deal with this.
QUIJANO: The administration did get AIG to scale back some of the payments. Still, main street outrage is boiling even among tourists just outside the Treasury Department.
BERNARD DIGREGORIO, APPALLED BY AIG BONUSES: I'm flabbergasted.
QUIJANO: West Virginia resident and Obama supporter Bernard DiGregorio says the AIG situation smacks of injustice at a time when he and other taxpayers are worried about making end's meet.
DIGREGORIO: If they have contracts, fine. It's like re-mortgage your house. That's what we have to do. Find a way but don't take it from me. I don't have it anymore.
QUIJANO: Laura Mechanic, another Obama supporter, has some sympathy for the administration, but for AIG, none.
LAURA MECHANIC, APPALLED BY AIG BONUSES: I think it's deplorable. I think it shouldn't be done whether there are contracts beforehand or not. I think it just should be times have changed, things have changed and they have to change that.
(END VIDEOTAPE)
COLLINS: Elaine Quijano is joining us now from Washington.
So, Elaine, what are the chances that American taxpayers might get some of that bonus money back?
QUIJANO: You know, it's a good question, Heidi, it's not exactly clear at the moment. One Obama official told me that under AIG's restructuring agreement taxpayers will recoup that money. At least that's what they're working on right now.
In the meantime, House Speaker Nancy Pelosi has asked Congress to take a look at what legal options are actually available to recover taxpayer funds, Heidi.
COLLINS: OK. Well, we know the government owns like, what, 80 percent now of AIG?
QUIJANO: 80 percent. Yes.
COLLINS: So why then can't it just not pull the bonuses right out?
QUIJANO: Yes, you know, and in fact, there are rules in place now setting limits on executive pay but administration officials say those rules don't apply because these AIG contracts were signed before... COLLINS: Yes.
QUIJANO: ... the government's rescue efforts got under way. Plus, the administration says -- you had Larry Summers talking to the talk show saying, look, as tempting as it is to say off with their heads, let's pull these bonuses, that would not be in the best interest of American taxpayers because they say AIG would collapse and that would leave taxpayers high and dry -- Heidi.
COLLINS: All right, we are watching this complicated web. Elaine Quijano, sure do appreciate it. Thank you.
The whole bonus debacle comes just days now after AIG reported the largest corporate loss in history. In the fourth quarter of last year, the company lost more than $61 billion.
Here's one of our iReporters.
(BEGIN VIDEO CLIP)
DAVID SEAMAN, CNN IREPORTER: You know what? You guys just don't get it. You're not doing well. And we're helping you out as taxpayers and, meanwhile, you just throw the money away as if you are doing well.
You know what? A bonus is for when a company is doing so well that it feels it's in a position to reward its best employees. You guys are not doing well and now I'm pretty upset.
Let's take a look at your headquarters. Look at that. Pretty swanky, right? Let's see some cost-cutting and have you guys move out to a cheap corporate office park in New Jersey. That would be a good start.
(END VIDEO CLIP)
COLLINS: That was David Seaman sounding off from New York.
Here's what's happening this week that impacts the economy now. Tomorrow, the latest snapshot of the housing industry starts and building permits. On Wednesday, it announced that it could affect how much you pay in interest. That's the Fed decision on a key rate.
Any evidence of unemployment shift? Well, we will know Thursday when the weekly jobless claims come out. And then on Friday, Wall Street and main street will be listening for signals from a speech by Fed chairman Ben Bernanke.
A small state with a big problem. Bling going bust and people losing jobs.
(COMMERCIAL BREAK)
COLLINS: Surviving tough times. We know the economy is on your mind and we are putting you on the road to rescue. No surprise here. Losing jobs is the number one concern for Americans. In fact, in a new CNN Opinion Research Poll, 36 percent say unemployment is our biggest economic problem. That number has nearly tripled since last April. 20 percent say they are most worried about inflation but that's down from 47 percent nearly a year ago.
Rhode Island, it's the smallest state, yet it has one of the biggest unemployment rates. 10.3 percent for the month of January, and still growing. Meanwhile, the national unemployment rate is at 8.1 percent. That is the highest in 25 years.
Miss Stephanie Elam is in Pawtucket, Rhode Island, getting down to the root of the problem.
Stephanie, good morning to you. Boy, those are big numbers.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Those are very big numbers for such a small state, you're right, Heidi. And when you come here and you hear what people are dealing with, you can see this is -- it really puts it into perspective just how rough it is in this state.
We decided to take a look at the jewelry industry because Rhode Island has been known as the epicenter of the jewelry business, fashion jewelry, costume jewelry. So we wanted to see how that particular industry was doing. And we actually learned, along the way, last year, the jewelry industry in Rhode Island losing about 12.5 percent in jobs.
So really being hard hit. But right now we're with a man who's looking to expand. We're here with Chris Ploof in his studio. He's a designer. He's doing well and we're going to find out why you're doing so well.
What do you think is the part of it that's really bringing in good business for you even though the economic situation is so rough, especially here in Rhode Island?
CHRIS PLOOF, DESIGNER OF JEWELRY: I think we offer a unique product. Certainly being in the wedding ring business has helped a lot. We're not so bent on the fashion market. People aren't coming to look and spend a lot of money on a necklace or something, you know?
But generally when people cut back, they're still spending money on weddings rings and we offer some unique rings and some unique materials that we work with.
ELAM: Yes.
PLOOF: High quality is important.
ELAM: Let's take a look at your rings because we have some right here and the difference so people can see your designs. You're right now in the process of expanding?
PLOOF: Yes. We are expanding. We're very excited. Actually... ELAM: Yes, you're moving places. You're also hiring people. What have you heard from other people within your industry about finding jobs within the jewelry-making industry here in Rhode Island? Are more people coming to you trying to stay afloat with you or figure out how you're doing it?
PLOOF: Well, it's been really mixed. I travel a whole lot for business and go to a lot of trade shows and certainly trade show numbers have been up and down but there are some great success stories which I'd really much rather listen to than, you know, all of the bad news.
But there's certainly, you know, some people that have been hit harder, some people are doing really well. You know we're lucky, we're happy that we're doing well. As far as the local industry, I think there is some movement back into Rhode Island, but instead of these large, large companies that are employing, you know, a few hundred people, it's the smaller companies generally that are -- you know, that are (INAUDIBLE) markets, you know, much like us.
ELAM: And it would seem to me that you would have people -- you know, you would think that a lot of jewelry would be made overseas and imported. How do you counterbalance that with homemade goods that are made right here in Rhode Island, U.S.-made products?
PLOOF: Well, you know, right now, it seems like U.S.-made products right now are fairly important. But even before we were absolutely doing that. What we're actually more interested in doing is just offering a quality product. It doesn't matter where it was made, it was made in the USA or not. We happened to be here. So, you know, it works for us.
But we just offer something unique that is not very mainstream and it's not the type of thing that means huge sales numbers for large companies. So it has helped us a whole lot in terms of competing with larger foreign markets. Yes.
ELAM: And, clearly, your phones are ringing off the hook.
PLOOF: Yes.
ELAM: Because people want to get to you and learn more about what's going on.
And Heidi, as I toss back here, I just want to show you this piece right here. This is actually meteorite that I'm holding up here. And Chris uses this in his designs in making wedding bands and it's a really cool effect. So it's really heavy and extremely cold, but a very nifty piece of artwork can be made out of this.
COLLINS: Yes. That is very cool. Tell him to answer the phones. He's got some serious business that could be coming in there.
ELAM: I know. And he'd make sure we don't get in the way of his sales right now.
COLLINS: Right. Exactly.
All right, guys, thanks so much, Stephanie Elam. Appreciate that.
And as Stephanie just told us, Rhode Island has a high unemployment rate. The three other states dealing with high unemployment rates are Michigan at 11 percent., California and South Carolina both at 10 percent.
But things are really tough in rural South Carolina. Allendale County has the highest unemployment rate in the nation at a staggering, listen to this, 23 percent. Unemployment went up when a nearby plant shut down, wiping out more than 200 jobs. The mayor of Allendale says the county has trouble attracting new industry, though he sees few signs of rampant joblessness.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We all have problems, but I don't think it's got up to be 23 percent. And I admit that we got some problems, but I don't think it's that high.
(END VIDEO CLIP)
COLLINS: Survival 101 for the pink slip brigade. If you're one of the 4.4 million people laid off since the recession began, we've got what you need to know.
CNN's Gerri Willis is with me now on this.
So, Gerri, people probably, I imagine, are first looking for comfort, but then they are looking for a plan of action. Where do we start?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Heidi, good morning to you, first of all. But you have to know your rights, first off. And your first right is to your wages that you've already earned. Now this is trickier than you might think. It also includes overtime pay or commission pay you might have earned.
Now here's something else you're going to want to think about. Severance pay, sick time, vacation pay. This is all at the employers' discretion and policies vary. Check out your employee handbook, though, to see if they've actually put a promise out there that they will give it to you.
Also if you have problems collecting the money call the Department of Labor at the 866-4-USA-DOL. You know sometimes these rights get violated and you want to make sure you get the number due to you.
COLLINS: Yes, absolutely. We all, you know, kind of make jokes about that employee handbook but you really should hang onto it. Sometimes you might need to consult it.
WILLIS: That's right. COLLINS: What about people and what they should know about unemployment benefits, too?
WILLIS: Well, you want to get all the public assistance you can, right? Look. The average worker is jobless for five months. That's a long time.
COLLINS: It is.
WILLIS: But there's no guarantee how long it will take you to find a new gig. Apply for jobless benefits. They've expanded to 33 weeks of benefits as much as 59 weeks, Heidi, for people living in states with high rates of joblessness. And what you'll get is about $325 a week and the good news here, change in the law, the first $2,400 will be exempt from federal taxes. That's a big change.
COLLINS: That is a big change.
WILLIS: Yes. Go to WorkforceSecurity.doleta.gov to find out how you apply for jobless benefits. Remember it takes two to three weeks before these benefits actually start so you want to do it quickly.
And also remember there are career centers that the government maintains. You can go there for advice, help, use a computer if you don't have one at home, go to Careeronestop.org for details.
COLLINS: OK. Very good. Also, advise -- I mean, I dare to go here, on health benefits?
WILLIS: Right.
COLLINS: Because this one is pretty tricky, too.
WILLIS: This is a biggie, right?
COLLINS: Yes.
WILLIS: You really need the health care benefits. Your first option and the cheapest one, by far, get on a family members plan. If your spouse is on a plan still working you definitely want to get on that plan. It doesn't matter that it's not enrollment time. You can hop on if you lose your job.
Now if that's not available to you apply for COBRA benefits. You have 60 days to do it. COBRA benefits, of course, simply an extension of your existing health insurance coverage but the difference is you pick up the full tab. It's very expensive and the stimulus provided for some help, though, on this for COBRA. They will pick up 65 percent of your premiums so that's good news.
This is important, though, Heidi. Remember, because the number one cause of bankruptcy is high medical bills. Go to the Department of Labor's Web site DOL.gov for the details on COBRA. It's incredibly complicated. There are lots of deadlines you have to follow but the information is all there for you.
You want to have the health care coverage.
COLLINS: Yes. Yes. Go through the complicated and take the time, because, God forbid, something should happen.
WILLIS: Right. Absolutely.
COLLINS: DOL.gov. All right, thanks so much, Gerri. We sure do appreciate it.
WILLIS: My pleasure.
COLLINS: We send them from base to base and, sometimes, from country to country. That leaves many soldiers with no choice but to sell their homes for a loss. So what is being done to protect them?
(COMMERCIAL BREAK)
COLLINS: We're living through a financial crisis and you have to understand it in order to deal with it. Right? So we're explaining it all, breaking it down for you, because we believe knowledge is power.
We've got five days of unprecedented worldwide reporting on the money meltdown. Just who can lead us out of this crisis? What do all of the numbers really mean? And, most importantly, where are the jobs?
"ROAD TO RESCUE: THE CNN SURVIVAL GUIDE" all week long right here on CNN.
Our road to rescue coverage continues. But if you are traveling, there are serious delays this morning. We want to go ahead and check in with Rob Marciano now to hear more about that.
Hey there, Rob.
(WEATHER REPORT)
COLLINS: Yes, you sure can. All right, very good, Rob. We're going to check back later for the full forecast coming up in just a little bit.
MARCIANO: All right.
COLLINS: Meanwhile, combing religion with the job hunt. A seminar that is helping people keep the faith while they are out of work.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: Could we see the beginnings of a recovery on Wall Street? Stocks are coming off four straight days of gains. Count them. One, two, three, four. And investors would love to make it five in a row. Susan Lisovicz is at the New York Stock Exchange now with a look ahead.
What do you think, opening bell right now there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Perfect timing. Well, I think lastly we're going to have wearing of the green yet again.
COLLINS: Yes.
LISOVICZ: It is not only because the grand marshal of the 248th New York City St. Patrick's Day Parade rang the opening bell. Futures told us we will have a higher open. This coming off 9 percent surge for the Dow and the nearly 11 percent gain for the S&P 500 last week.
Yes, it was the best week of the year. Upbeat comments from Ben Bernanke in "60 Minutes" giving investors here and around the world reason to buy. In his first TV interview as Fed chief, Bernanke repeated his belief that the recession would probably end this year and recovery would begin next. He maintained that recovery is contingent on the government's plan to boost the financial system. Investors like the fact that Bernanke hasn't changed his view.
Later this afternoon, Treasury Secretary Tim Geithner and President Obama are set to unveil a plan to increase lending to small businesses. Over this past weekend, Geithner was in England meeting with finance ministers of the G-20 nations. They're urging more regulation and oversight of financial institution to help prevent another monetary crisis.
And speaking of financial, another big bank trying to suit investors, U.K.-based Barclays said it had a good start to 2009. And Barclay shares that trade in the U.S., Heidi, up 13 percent. And check it out! We're getting close to 7300!
COLLINS: Wow!
LISOVICZ: Whoa! Well, OK, it's not 14,000 but, you know, it's inching its way back. The Nasdaq, meanwhile, is up 0.67 percent.
COLLINS: All right, very good. Hey, Susan, I got to march in that St. Patrick's Day parade a couple of years ago with the grand marshal. Very exciting. Will you be out there tomorrow?
LISOVICZ: I'm going to be with you, and that's always exciting, Heidi.
COLLINS: Thank you.
LISOVICZ: I'll be wearing the green, and maybe I'll get a green bagel or something like that.
COLLINS: OK, perfect. We look forward to that. Susan Lisovicz, we'll check back later on. Thank you.
LISOVICZ: You're welcome.
COLLINS: Meanwhile, though, I have to tell you about this. Outrage from frustrated taxpayers directed at AIG. That frustration continues to grow. Here now an iReport from Gary Kuhry out of Nevada. He's enraged the top execs are being rewarded for the failing system.
(BEGIN VIDEO CLIP)
GARY KUHRY, IREPORTER: To put it in perspective for the upper echelon. OK. That means 18 holes of golf, average par is 72. You guys have 504 strokes to finish that 18 holes. (BLEEP). You failed. OK. And you don't give raises for failure. OK. You don't give bonuses and raises for failure. I'd like an answer from Mr. Libby on these facts and this commentary. Thank you.
(END VIDEO CLIP)
COLLINS: Was that a golf analogy? Gary says he's not against the bailout, but there should be more oversight.
Now if you have any pictures or videos you'd like to share, you can always send them to iReport.com, right here at CNN.
More finger-pointing and criticism directed at AIG, including some from Fed Reserve Chairman Ben Bernanke. Here's what he had to say about the bailed out insurance giant on "60 Minutes" last night.
(BEGIN VIDEO CLIP)
BERNANKE: Let me just first say that of all the events and all of the things we've done in the last 18 months, the single one that makes me the angriest, that gives me the most angst is the intervention with AIG. Here was a company that made all kinds of unconscionable bets, then when those bets went wrong, they had -- we had a situation where the failure of that company would have brought down the financial system.
(END VIDEO CLIP)
COLLINS: You will hear more from the Fed Reserve chairman's first TV interview later on during the show.
Some Republicans say President Obama's tax plan will hurt small businesses. Today, he'll try to answer some of that criticism. At 11:25, the President and Treasury Secretary Timothy Geithner will hold a round table with small business owners and bankers. Then at noon, the president will announce plans to get loans flowing again to these kinds of businesses. CNN will bring that to you live. And just before 2:00, the president speaks at the Department of Veteran Affairs, commemorating 20 years since the department got a cabinet level post.
A small business story with a surprising twist. Hard to imagine, but the slow economy is actually music to the ears of a small community. They thought they had lost a beloved 70-year-old landmark, but a slump in housing and construction has that community dancing again. Photojournalist Jeremy Moore (ph) has had a story about Blobs Park in Jessup, Maryland.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Business has been in existence for 76 years, it's called Blobs Park. It's a German beer garden, restaurant and dance hall.
EVELYN MAJEWSKI, PATRON: When I was a teenager, I came with my older brothers and sisters.
Then at 18, I was here with a bunch of young ladies.
Then I got married, and I was here with my husband for years. And then they shut down.
UNIDENTIFIED MALE: The rest of my family members decided to sell the property. The last couple of years, what we sold off to develop into 300 acres. It was just going to sit idle for however many years it took to get the development and infrastructure in place.
I didn't want to see the park go, and I work on -- tried to get an arrangement to lease it back. I just felt like there was hope to bring it back and we brought it back.
So to open it back up was -- took a sizeable financial risk. I just had the vision that it could succeed again and be bigger than it was before, and I was just willing to take that shot.
UNIDENTIFIED MALE: Everybody together now!
MAJEWSKI: My husband died 4 1/2 years ago. Now I come out just to be with the people and dance. It fills a void where I would be with my husband all the time. I mean, I love to dance! I can't help it!
TOOTSIE DZIADEL, PATRON: It's needed. It's just a great place to have bunch. People just need to have fun these days.
UNIDENTIFIED MALE: My heart is overwhelmed when this place opened up. I hope it's there for another hundred years.
(END VIDEOTAPE)
COLLINS: Many soldiers have to sell their homes when they end up getting deployed or transferred. These days, the prices can be a lot lower than what they originally paid. But, now, under the economic recovery plan, they can get back up to 95 percent of their losses, and it's not a moment too soon.
(BEGIN VIDEO CLIP)
CHIP FRANKS, REALTOR: When they are told that, yes, you're going to be here in Fort Hood for at least three years, at least four years, at least five years, when they are told that, and then all of a sudden, they come up on orders and they have to sell their home prematurely, that's who it's really going to help. LT. JOHN STEINER, U.S. ARMY: I would never have bought a home, negative. No. I would never even consider it. I mean, that's like -- that's asking a 3-year-old, hey, can you give me your candy and at the end you're not going to get any back.
(END VIDEO CLIP)
COLLINS: That soldier says he is selling his home for $20,000 less than he paid.
Well, this morning and all week, in fact, we are bringing you "ROAD TO RESCUE: A CNN SURVIVAL GUIDE." We're looking at ways to help you make it through the tough economy.
Today, a snapshot across America takes a picture of nonprofit organizations. How can they help people who are strapped when they're strapped themselves.
People often turn to faith in tough times. But more than 50 Catholic churches in Cleveland are shutting down now. The dioceses will close 29 of its 224 parishes and more will have to merge. Churches in the area have been losing followers and priests. Nearly half are operating in the red.
Well, church is a place many people seem to be turning for the help they need when they are unemployed. In Euless, which is in North Texas, people are combining their job hunt with religion. Career Solutions is a ministry that offers more than just training seminars. People are encouraged to stay confident and trust in God during their job search.
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VIRGINIA VENIOUS, ATTENDING SEMINAR: Help me not to be depressed about the whole situation, knowing that God has something better for me. Something is going to come that's just perfect for me. It really helps so that you don't get into that depression, that funk that a lot of people get into.
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COLLINS: Many of the people participating are not churchgoers, and they don't have to be. Organizers say anyone can benefit from the seminars.
Coming up next hour, we're continuing our special "ROAD TO RESCUE." I'll tell you where you can find free suits, free classes, even free child care if you're looking for work. Make sure you stick around for that.
And get five days of unprecedented worldwide reporting on the money meltdown. Just who can lead us out of this crisis? And we're going to be breaking it all down for you, because we do believe knowledge is power.
We've got five days of, as we said, unprecedented worldwide reporting. We're going to tell you what the numbers really mean and where the jobs are. "ROAD TO RESCUE: THE CNN SURVIVAL GUIDE," all week long, right here on CNN.
And El Dorado actually exists. It's a small city in West Virginia. We'll tell you where it is on the map.
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COLLINS: You don't have to understand the financial crisis in order to deal with it, right? Well, we are explaining it all, breaking it down for you. But we want to remind you there are some positive stories out there, too. It isn't all bad across the country. Businesses booming, in fact, in one small town down south where unemployment is three percent. Photojournalist Chris Turner (ph) has this story about Morgantown, a modern-day El Dorado in economically ravaged West Virginia.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: You know, it's usually quiet during the day. The only real traffic we have is, you know, rush hour. It's just small town life.
GARY TANNENBAUM, OWNER, BLUE MOOSE CAFE: We're here at the Blue Moose Cafe in Morgantown, West Virginia. We have your students, and we have your moms with kids. We have lawyers and construction workers, and they all gravitate here. Once a week on Wednesdays, we do open mike.
UNIDENTIFIED MALE: Morgantown's finest open-mike night.
TANNENBAUM: In this, you can go 15 miles outside of Morgantown and you can see the hollering and moonshine.
Morgantown isn't representative of the rest of the state. I kind of look at it as an island in the sea of Appalachian.
UNIDENTIFIED MALE: Save your back and put your keys in the jar, and let's just fire up the wood ticks. Let's give them a hand.
TANNENBAUM: There's probably a lot of things that city planners can learn from Morgantown.
Morgantown fares better than other places in the country.
PETER TALLAKSEN, WVU STUDENTS: We're always expanding here. I mean, you can go away for a year and come back and there will be a couple new apartment buildings, a couple new roads. We're getting a new mall.
HILLARY PHILLIPS, COMMUNITY ACTIVIST: Almost every aspect of Morgantown is supported. You know, they are explored.
People want to stay here. They want a -- employers want to stay here. Employers want to come here. TANNENBAUM: I don't know if the people in the big cities are paying attention. There's other places where people could learn from Morgantown.
UNIDENTIFIED MALE: Thanks for listening, you guys. Have a good night.
(END VIDEOTAPE)
COLLINS: West Virginia.
Well, so, what exactly are people doing right in Morgantown? Well, many economists believe part of the city's success is because it has such a diverse job market. Unlike other cities like Pittsburgh or Detroit, they cater almost predominantly to one industry. Unemployment in Morgantown is, as we said, under three percent. That's pretty impressive, considering according to the U.S. Census Bureau, West Virginia ranked as sixth-highest in percent of people living below the poverty line.
Are you afraid to check the balance on your 401(k)? What do you do if your home is worth less now than what you paid for it? You need answers, and Josh Levs explains how we're looking to help you find them this week.
JOSH LEVS, CNN CORRESPONDENT: So as part of our special week of coverage focusing on the economy, we're inviting your questions today here in the NEWSROOM. Is there a term you keep hearing that you want to understand? Or is there something you want reality check? Here's how you can get in touch with us. You can go to my Facebook page. It's Josh Levs CNN. You'll see how to post your questions there on the discussion board, or if you're not on Facebook, you can use e-mail at cnnnewsroom@cnn.com.
Also check back in that discussion board if you're on there, because you might be getting some answers from some other viewers. In fact, let's zoom in really quickly right here. You can see where we posted the question, and you can see what some of the terms are that people are going to be writing about right here on that page. Or, as I said, you can e-mail us. Now check back in throughout the week. We're going to get you as many answers as we can between now and Friday.
COLLINS: So get involved online with some brand new features. Look at this. Check out cnnmoney.com for all things financial. You can find this and more, cnn.com. Lots of information there for you.
Do your family and your finances both need a break? Well, don't let the recession take all of the fun out of your life. We've got a deal for you.
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COLLINS: We all need a little help in these tough economic times. So we're trying something new here this week. It's our deal of the day. It's a way for you to stretch your dollar just a little bit further. Up first, deals on our national parks. So listen to this.
There's a regular annual pass, good for every national park for $80. But there are even better deals. U.S. citizens over the age of 62 can get a lifetime pass for just $10. It's good at all federal parks that charge an entrance fee, and you can bring along three other people with you for no extra charge. That is a good deal.
There's also a free lifetime pass for people with disabilities. And if you volunteer 500 hours of your time, you can also get a free pass to our national parks. For more information or to find a park in your area, just go to NPS -- National Park Service -- nps.gov. And tune in again tomorrow when I will bring you another deal and another neat sound effect.
Surviving these tough times, we're all trying to do it, right? And we have more of our special coverage stories on the "ROAD TO RESCUE." Here's a look at what we have for you.
ROMANS: The Fed Chairman Ben Bernanke sitting down for a long interview with "60 Minutes." Heidi, this is very rare, unprecedented. He said he wanted to speak directly to the American people. He had a message for them. We'll tell you what that message is, coming up at the top of the hour.
LISOVICZ: I'm Susan Lisovicz at the New York Stock Exchange, where stocks are trying for win number five. AIG shares up 15 percent right now, but there's a lot of outrage over huge bonuses being handed out, a company that's bailed out by the U.S. government. Heidi, we'll have more on that at the top of the hour.
ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano in the CNN severe weather center. A lot of cloud covered across the southeast. If you're looking for the space shuttle launch this weekend, you were shroud in the cloud cover for the most part unless you were right there for that exciting achievement. But if you're traveling today, either by car or by plane across the southeast, we've already got travel delays stacking up and another storm slamming into the West Coast. Complete weather details coming up at the top of the hour.
COLLINS: All right. Thanks, guys. Sure do appreciate that.
Hard times hit the nonprofits. But they're still helping people out. Deep focus in our snapshot across America coming up next hour.
A Bible study miracle warms heart in a small community. How they helped one family in trouble get a new beginning.
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COLLINS: We're bringing you stories from around the country of how people are surviving the money crisis. It's part of our weeklong thrifty and thriving iReport economy challenge.
University of Illinois student Elizabeth McElherne scored a mink coat for 25 bucks. There it is. It looks nice. Here are few pictures of her modeling the coat. Elizabeth says she bought it at antique store in Fredericksburg, Virginia last summer and couldn't believe it was such a steal.
All week long we are bringing you "ROAD TO RESCUE: A CNN SURVIVAL GUIDE." Times are hard and they are hard for businesses, too, especially when yours isn't designed to make money any way. So today we're looking at the struggle for nonprofit groups.
More people needing help, less money coming in. Charities and nonprofit agencies need to do more with less. Some came together for a summit in Denver to share ideas.
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UNIDENTIFIED FEMALE: While they are not quite sure if they're going to be able to meet all the demands, whether they have done things in the past, we're encouraging them to look at business a new way, to try to change the way that they do their operations so that they can stretch and provide more service or perhaps less.
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COLLINS: You may not have the money to give to a nonprofit right now, but you could donate some of your time as a volunteer.
It takes a community to beat the recession. One family still rejoicing after their bible study home makeover miracle. It's a story about a community coming together to help out one of their own. Doug Warner from our affiliate in Washington, Oklahoma, explains.
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UNIDENTIFIED MALE: Are you ready, people?
DOUG WARNER, KWTV CORRESPONDENT (voice-over): If (INAUDIBLE) only knew what he was missing, dozens of Washington, Oklahoma faithful, volunteers and first responders woke early.
CHARLOTTE SINGLETARY, VOLUNTEER COORDINATOR: I knew that it was going to happen. I never had a doubt. I really didn't. My faith is that strong.
WARNER: To watch faith in action. Family and friends credit faith for helping 16-year-old Leah Hayes make it through a lifetime of unwelcome seizures and most recently brain surgery.
CASSIE HAYES, FAMILY MEMBER: It's just a miracle. I think it's all just an answer to God's prayers, you know. I think He's just watching over Him and taking care of Him.
WARNER: And the miracle part of this, how this small community of 500 people in Washington decided to take the Hayes Family home. And updated just a bit, while Leah recovered from surgery, their home was leveled. And we hit the airwaves asking for help.
SINGLETARY: And then the very first piece that you guys did when we tore the house down, and you had that plea that I needed concrete. And by noon that day, I had three concrete companies call me at the church.
WARNER: And so it went for nearly six months, they asked and they received until Monday morning.
UNIDENTIFIED MALE: Hi, how are you?
WARNER: That's when the town gave back to the Hayes' Family.
UNIDENTIFIED FEMALE: I can't believe it. It's so pretty. This isn't our house.
UNIDENTIFIED MALE: This is not what was sitting here six months ago?
UNIDENTIFIED FEMALE: No, it isn't. No, it isn't. This is beautiful.
WARNER: For the first time, Betty and Leah laid their teary eyes on their new, healthy home built by neighbors.
UNIDENTIFIED MALE: I got my hug.
WARNER: By the high school music teacher.
UNIDENTIFIED MALE: Every minute was worth it.
WARNER: And by dozens of others who for at least one day made Leah forget all about her world of seizures and surgeries.
UNIDENTIFIED FEMALE: What do you think? Do you like it?
UNIDENTIFIED FEMALE: I love it.
BETTY HAYES, HOMEOWNER: I mean, I thought my gift was to keep getting her back every time something happens to her, and then you give me this gift.
WARNER: A gift wrapped in a miracle and delivered by one of the smallest towns in Oklahoma.
In Washington, Doug Warner, News 9.
(END VIDEOTAPE)
COLLINS: Coming up next hour, the nonprofits in your area that will give you what you need to land a job. Everything from suits to classes, even free child care. So stick around for that.
Easing the credit crunch on small businesses, that's what President Obama is focusing on today. He's bringing together small business owners and bankers for a roundtable that's happening at the White House, where we'll hear more from Susan Malveaux, just about one minute from now.
So how long will this recession last? Fed Chairman Ben Bernanke has some predictions. We'll hear more about that when we check in with our CNN money team.
Despite pressure, the world's oil-producing countries say they won't cut production. Oil currently stands about $47 a barrel, but some producers would like it to be in the $70 to $80 range.
