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Food Stamps; Making It Through the Recession; Aiding Small Businesses
Aired March 16, 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: Surviving these tough times, trying to make sense of the financial crisis. It's behind our "ROAD TO RESCUE: A CNN SURVIVAL GUIDE." All this week, we're telling stories about making it through the recession.
In this hour, struggling on food stamps. How can you feed your family healthy meals? Plus, where the unemployed go for help, the nonprofits. More about that.
We begin, though, with the helping of a crucial part of the economy. President Obama announcing plans to boost the small businesses. I want to talk with CNN's Susan Malveaux now. Suzanne, tell us a little bit more about what we can actually expect to hear from the president today?
SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Heidi, you're not only going to hear from the President but also the Treasury Secretary Tim Geithner is going to be talking about helping small businesses. This is in the tune of millions and millions of dollars, our taxpayer dollars. $730 million of it to be exact and one of the main points of this is that they are going to increase the loan guarantees for banks that actually lend money to small businesses.
So for instance, it's going to go from 75 to 90 percent, guaranteed that money will be paid back and protected by the federal government to those banks if those loans default. This is obviously to try to give banks an incentive to go ahead and release some of that money and help these small businesses out.
The second thing that's going to happen is that they are temporarily going to eliminate some fees that banks charge these borrowers and that's in the tens and thousands of dollars. So obviously some real assistance, some real help to these small businesses. Something that a lot of people do and they will be paying very close attention to, Heidi.
COLLINS: Yes. They really have. But maybe not everybody understands Suzanne why it's so important to help out small businesses. Give us some sort of the deadline there.
MALVEAUX: If you think about it, over the last decade or so, small businesses are responsible for creating 70 percent, some study say even more than 70 percent of the new jobs created. So this is all about those jobs, getting those jobs back and the small business administration, they saw this is typically $20 billion that's loaned to those small businesses. Well, now they are seeing a trend about $10 billion. That's about half the amount.
COLLINS: Right.
MALVEAUX: So they've got to get that money to the small businesses to operate their expenses and to sustain those jobs, Heidi.
COLLINS: That's right. Hire people. That's the big one, obviously/
MALVEAUX: Absolutely.
COLLINS: Suzanne Malveaux outside the White House for us.
Thank you, Suzanne.
And President Obama with the Treasury Secretary Timothy Geithner are giving details about this small business plans. It's going to happen at noon Eastern and when it does, we will bring it to you, live.
Taking a quick look at the big board now. Hey, we're still in the positive, i guess that's good. I guess this is what do we say day five, right? 7,283 is where the Dow Jones industrial average rests right now. And we will keep our eye very closely on those numbers.
It's clear the economy is still issue number one to most Americans. A new CNN opinion research corporation poll asks what's the most important issue of the day? Well a whopping 63 percent say it is the economy. Among those economic issues though, unemployment is the scariest they say. And that's according to 36 percent of those people polled. That number has nearly tripled in less than one year.
How long are we going to have to put up with this recession? Fed Chairman Ben Bernanke has some ideas. Christine Romans tells us whether there is any comfort in them.
(BEGIN VIDEOTAPE)
BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: The Federal Reserve is here and is going to do everything possible to support this recovery. The second thing I would say is that recovery is not going to happen until the financial markets and the banks are stabilized and we do have a plan. We have a program for that. But it's going to take some patience. It's going to take some support. And you know, we're going to have to go forward with that. But the third and final thing I'd just like to say to the American people is that I have every confidence that this economy will recover and recover in a strong and sustained way.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT (voice-over): Bernanke said the recession will likely end later this year and the recovery may begin next year if the financial system stabilized. He said "new American depression has been averted but vowed not to make the mistakes that led to the great depression, letting the banks fail.
UNIDENTIFIED MALE: Are you committing in this interview that you are not going to let any of these banks fail, that no matter what their balance sheet actually looks like, they are not going to fail?
BERNANKE: They are not going to fail. But what we can do should it be that necessary is try to wind it down in a safe way.
ROMANS: He says he understands public outrage at bailing out the very institutions that have brought the global economy to the brink, like AIG -
BERNANKE: It makes me angry. You know I slam the phone in more than a few times on discussing AIG. It's just absolutely - I understand why the American people are angry. It's absolutely unfair that taxpayer dollars are going to prop up a company that made these terrible bets that was operating out of the sight of regulators but which we have no choice but which we have no choice but to stabilize or else risk enormous impact, not just in the financial system but in the whole U.S. economy.
(END VIDEOTAPE)
COLLINS: Pretty interesting words there. Christine Romans is joining us now live from New York. So Christine, a number of officials have been trying to reassure us that the administration has a plan now to get us out of this crisis. Should we believe them?
ROMANS: Well, they are saying again and again that we have a plan, that we have to have patience, confidence will return. There will be an eventual recovery but we have to get the financial system stabilized. And you know, Ben Bernanke, the fed chief in this very, very rare interview, Heidi, basically saying, point blank, we are going to help the banks because that helps everyone. And you might not like it. He doesn't like it that much either, but they are going to help the banks. And so that was an important take away from here.
This administration, over the past week, has been speaking with one voice that they are going to get the financial system stabilized and then we can move on to a recovery.
COLLINS: Yes, for a while there it was getting interesting because there was so much chastising going on from Washington to the banks, which we also understand and then it seems like wait, we've got to make some decisions here. We got to work in tandem with them. In fact, we're now hearing that AIG, obviously the insurance company, has finally, under pressure, named some of the banks that pocketed billions of dollars last fall.
ROMANS: That's right.
COLLINS: It's all part of that federal bailout.
ROMANS: These are their counter parties. You'll be hearing about the counter party list. Look, this is a secret list of the customers of AIG, the folks who bought that insurance, insurance against bad bets and you know their insurance, now they have to collect on it because their bets went bad and AIG insured them against it.
COLLINS: Right.
ROMANS: Some of the very banks, some of the very institutions that pedaled these mortgage-back securities and complex derivative based on them that brought the whole global economy to the brink, got a lot of taxpayer money. AIG got taxpayer money and then turned around and paid it to a bunch of banks, a couple of European banks, also some municipalities and states and the likes, but we're finding out how they spent that money on bonus, driving people crazy and there's outrage about that but also how they spent that money paying it to Merrill Lynch, to (inaudible) Generale, to some other folks as well. And that's -
COLLINS: What's the point? Are we saying that there were a bunch of things that shouldn't have happened? I mean, everyone is looking at that money trail and saying, wait that shouldn't have gone there? That should have done there?
ROMANS: Well, what this tells us is that AIG wrote insurance, that it should have known it shouldn't have written on things that it really couldn't insure. Didn't put the reserve aside to make sure that if those bets went bad, they couldn't pay for it, and now they are paying it out to the very people who made the bad bets in the first place. So it just shows you that American taxpayer money went to AIG and now from AIG and back to these other banks and this was kept secret for months. Congress was screaming they wanted to know, why couldn't we know what was going on? Now we know and it's leaving a lot of bad taste in a lot of people's mouths.
COLLINS: Yes, all right. That's for sure. Christine Romans, sure do appreciate it. Thank you.
AIG, in fact, has been propped up four times now with more money. And this weekend it handed out $165 million in bonus and retention pay to workers in the very unit that helped leave the company in such a mess. This is what Christine was talking about. Some in Washington, in fact, are so outraged. A lot of people that are taxpayers are mad, too.
(BEGIN VIDEO CLIP)
DAVID SEAMAN, I-REPORTER: A bonus is for when a company is doing so well it feels it is 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 do some cost cutting and have you guys move out to a cheap corporate office park in New Jersey.
(END VIDEO CLIP)
COLLINS: AIG says it was contractually obligated to pay out the money but it will scale back in the future. Surviving these tough times without a job, millions of people looking for work in the middle of this money crisis. In California, the unemployment is 10 percent. And as CNN's Kara Finnstrom reports the job market is tight and very competitive.
(BEGIN VIDEOTAPE)
ERIC CLARDY, LOOKING FOR WORK: Hey Anthony, it's Eric Clardy from yesterday. I came in and interviewed with Shelly.
KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Eric Clardy is working his contacts.
CLARDY: Yes, hey, how are you?
FINNSTROM: Updating his resume and tweaking his wardrobe.
CLARDY: This is the one, my newest I usually wear.
FINNSTROM: Last month, the 30-year-old was laid off from what he hoped would be a career-building management position with the plumbing company. Now in this tight job market, he's aggressively marketing himself.
CLARDY: I can't lock myself into that bedroom every single day and hope to get a job. You've got to get out.
FINNSTROM (on-camera): More opportunities this weekend here at Dodgers' Stadium, nearly 90 employers have come out for a job fair. But with more than 10,000 job seekers expected, the competition significance is fierce.
CLARDY: I was looking at this and I would be very interested in this one and then this one as well. MBA in business, business administration.
UNIDENTIFIED MALE: You know what, I may have a position for you. A management position that I want you to apply for.
CLARDY: Oh, that went great. He actually pulled - you know, went back and pulled out another job for a management position that wasn't - it wasn't on the table.
GLORIA BRATTON-MOORE: There are jobs available. They are just far and few between are.
FINNSTROM: Employment counselor, Gloria Bratton-Moore, says job seekers like Clardy should focus on their skills and brainstorm about other jobs, for those skills could be useful.
BRATTON-MOORE: What I would encourage individuals to do is to have several different resumes, you know, you need a resume for each specific job that you'll be applying for.
FINNSTROM: She also encourages creative networking, get out, talk to everybody, do it all.
CLARDY: It seems like maybe just a couple of years ago the job fair was really your first interview. And now it's really just - it doesn't even seem like that. So many people there.
FINNSTROM: Clardy is an optimist but he's also realistic. What California officials estimating that one in eight Californians are jobless, Clardy realizes he may not find another dream job right now.
CLARDY: Kind of like, get the job now, land that job so you can pay your bills and then turn towards the "career," that you really want.
So now, I just kind of have these applications in on Monday
FINNSTROM: Kara Finnstrom for CNN, Los Angeles.
(END VIDEOTAPE)
COLLINS: Non-profit organizations, part of the "Road to Rescue," coming up in just a few minutes, we'll tell you how they are helping people find jobs while they are trying to stay afloat themselves. It's our snapshot across America today.
Can you eat healthy on food stamps? Our reporter finds out.
(COMMERCIAL BREAK)
COLLINS: Knowledge is power. When it comes to your bottom line, we want you to have the information you need to get yourself and your family through these tough economic times. It's the "Road to Rescue, the CNN survival guide." Watch for it today and all week long, only right here on CNN.
How much will it cost you to keep your insurance if you lose your job? When is it safe to stop start investing in the stock market again? We need answers and Josh Levs explains how we're helping you find them this week.
JOSH LEVS, CNN CORRESPONDNT: So 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 that you keep hearing that you want to understand or is it something that you want a 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 on the discussion board if you're out here because you might be getting some answers from some other viewers. In fact, let's zoom in really quickly right here and 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 this 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: For more answers and tips, on how to survive the recession, just go to cnnmoney.com and click on road to rescue. That's right there at the top of the page.
Some people are living on food stamps in order to survive during this money crisis. And the food they eat may not be so healthy though. CNN's Sean Callebs lived on food stamps for a month in New Orleans. And now he's trying to figure out if people can have a more nutritious diet on less.
(BEGIN VIDEOTAPE)
SEAN CALLEBS, CNN CORRESPONDENT: Gina Dillard(ph) and her elderly parents don't have a lot of money. What they do have a wealth is a wealth of health problems. Life on food stamps means, there is simply less nutritional food that the family dearly needs.
UNIDENTIFIED FEMALE: When I have a job, I can go to the grocery store and spend $250 but now I'm on food stamps, I'm on a budget with only $174. So that's a big difference in -- you know, you get less than what you used to get.
CALLEBS: Less fresh fruit and vegetables and the meat you can afford isn't as lean as she lean as Dillard would like.
GINA DILLARD: The difference in price is, you know, it don't - the food costs more.
CALLEBS: The Dillards are among 31 million Americans on food stamps. Gina Dillard is also a regular patient at the Mercy Medical Center, a clinic that treats people who don't have the money for medical care elsewhere. Doctors say many patients come in with hypertension, heart disease, and diabetes, all conditions aggravated by a poor diet. A healthier diet can help meeting those nutritional needs is harder than it sounds.
DR. MAE MORGAN, MERCY CLINIC MEDICAL DIRECTOR: You know, you still have priorities. It's difficult to tell somebody to eat the proper way to eat when they are dependent on a shelter or a soup kitchen or something like that to get their food, you know, because they don't have a lot of control over that diet.
CALLEBS: Mercy is a health care educator. Raquel Iwelmon who sits down with patients to discuss medications and nutrition.
RAQUEL IWELMON, MERCY CARE HEALTH EDUCATOR: I've had people crying when they came straight from the doctor's office. I've had them to say, you know, I can't afford all these stuff. I just got to eat and run. And so it's difficult.
CALLEBS: Difficult, too, because even when armed with the best information, resisting temptation isn't always easy.
DILLARD: I love butter. I just love it. Yes, it's not good for me. Something, yes. We got to die happy.
(END VIDEOTAPE)
COLLINS: Now, we should let you know that Sean actually only lived on food stamps in Louisiana for a month. So obviously a lot of people are having to live on them much longer than that. So it's not such a temporary idea as you would imagine, for many other people in the state. The U.S.D.A. says nearly 325,000 households use food stamps in Louisiana. Want to go ahead and try that, get back to Sean Callebs, who is standing by to tell us a little bit more about this. Sean, you got me. There you are. Good.
Hey, tell us a little bit more about this now, does it have to be this way? I mean, we did hear many of the people in your story there talking about how much more expensive it is to eat healthy and when you're leaving on food stamps, you really have to make the money stretch.
CALLEBS: Yes, it's tough. There's a simple answer. But if you listen to what the health educator of that clinic have to say, you can eat in a healthy fashion. It just takes time. You have to prepare your food. You have to be careful about what you shop. What's difficult is for people on the lowest wrung of the socioeconomic ladder, people who may be living in a shelter or maybe homeless. Because they have to eat whatever they can get their hands on.
But people like Gina in that story, she can eat healthy, it's just difficult. She has to take the time and prepare her food and stay away from that butter. It may make her fish stay OK but man it's not good. Silent killers, hypertension, a heart disease, diabetes. Those are the three biggest problems that people, the poorest people in the country face.
COLLINS: All right. Very good. Hey, what about you, Sean? Your experience living on food stamps for one month? I mean, how difficult was it? You talk about really having to make an extra effort and planning ahead and taking the time to cook healthy.
CALLEBS: It did take a lot of time. That's one thing people did write it about the blog. I would say it took at least an hour or more a day to prepare all of the food and if you're running around, if you're busy, I don't have my kids with me but if someone has that, it can be very challenging. You just have to find a way to budget your time. I found that I got more run down towards the end of the month. But as far as health concerns, for just one month, I was fine. Your heart does go out to people, though, who simply don't have enough money.
COLLINS: Yes, absolutely. Good reporting though. We sure do appreciate it. Sean Callebs for us this morning. Thank you, Sean.
Quickly, I want to get this information to you just in now to the CNN NEWSROOM. We are learning that the federal government is providing a list now of the different assets that Bernie Madoff will no longer own. The government will be taking the following. I'm not going to read them all to you because it's quite a list here but just a few right off the top, the co-op apartment on the east 64th streets and the other home in Montauk, New York, the other home in Palm Beach and the other home in France. There's also a yacht, a fishing boat, four cars, two of them Mercedes, a BMW, and a Volkswagen. Again, these are all assets of Bernard Madoff that the government is planning to seize, take away from him.
A piano, silverware, a set that's valued at 65,000 bucks. All of the funds were deposited at Wachovia, that's believed to be about 17 million, and several different interests in securities, municipal bonds and so forth, valued at about 45 million. So again, news just in to CNN NEWSROOM. This is a big long list here of the assets that the federal government is planning to seize from Bernard Madoff. You can see him there.
Most Americans have health insurance. But for those who don't, President Obama has a plan. What it could mean for you.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JIMMY DEOL, I-REPORTER: Remember something here, from my experience, the accessibility of health care for everyone does not necessarily mean everyone can actually have health care. What that means is the scarcity of resources, especially in Canada, it's true. 86 percent of Canadians have family doctor, 14 percent don't.
(END VIDEO CLIP)
COLLINS: President Obama's health care reform is designed to help insure the millions of Americans who don't have insurance. But what about the millions who do? Will it help them or hurt them? CNN's senior medical correspondent Elizabeth Cohen is here now to answer some of those questions. Good morning to you, Elizabeth.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Good morning, Heidi. Heidi, it's an important question because most Americans do have some form of health insurance. Let's take a look at the percentage. Americans with health insurance constitute 67 percent of the population. That's right. 67 percent of Americans have health insurance. And that doesn't even count the folks who have health insurance through the government, through Medicare or Medicaid.
So the big question is, what will health care reform mean to that big group of people? And the answer is, according to some experts, the health care reform might help this group and here's why. Americans with insurance are paying much more than they ever have, paying higher premiums. They're paying more for doctor visits. Let's take a look at this. Let me clear this up here.
In 2004, if you were insuring a family, it cost about $10,000 a year in premiums. In 2008, that went up to 12,680. That is a huge jump just in four years. So the hope is that health care reform will limit the amount of waste that is in the health care system today and that also if you insure more people, you are increasing the pool so you are decreasing the risk, you're bringing in more payers, and then hopefully that will help people who are faced with these kinds of increases. Heidi.
COLLINS: OK. Well, I mean, does that mean, then, that it would be worse care or more expensive but then worse care? I mean, if you're that guy that is already paying health insurance and has for years, clearly, that's your question.
COHEN: Right. Here's the concern. On the one hand, health care reform may mean good things to people who have health insurance. It could also according to the experts that I've talked to, mean bad things. I mean just to put it out there, to insure the 46 million uninsured Americans is going to cost hundreds of billions of dollars. The concern is, someone is going to have to pay for it. The concern is that those payments may come, to some extent, out of the pockets of people who have insurance. They may see their premiums go up. They may see taxes go up. But that somehow that money might come out of the pockets of people who already have insurance.
Well, and then also, how do you know - I mean, we've been talking a lot about you know, health care for the future. But as far as the present right now, how do you know do you really even have a good health care?
COHEN: Right. That's the concern for right now. If you have health care through your employer, basically, your selection has been made for you, to a great extent. If you don't have health care through your employer, and of course, with all of these layoff, fewer and fewer people do. You have to go out there and buy it on your own which could be an incredibly complicated process. You want to go to CNN.com/empoweredpatient and you can see all of the tips that you need for how to shop for health insurance. It is one of the most important purchases that you will ever make.
COLLINS: All right. Our senior medical correspondent, Elizabeth Cohen. Sure do appreciate it. Thanks, Elizabeth.
Snapshots across America. Stories about people and businesses fighting to get back on the road to rescue. Even nonprofits are pitching in to get people on their feet. But who is looking out for them?
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COLLINS: Surviving these tough times. We know the economy is on your mind, and you have to understand this crisis in order to deal with it. Right? So, we are explaining it all, breaking it down for you, because we do believe knowledge is power. "ROAD TO RESCUE, THE CNN SURVIVAL GUIDE," you can catch it all week only on CNN.
Some recently unemployed people receiving a little divine intervention to help with their struggles through the recession. A local church in Massachusetts is helping them build skills for future interviews. Shiba Russell from our affiliate WCVB in Massachusetts has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Who wants to start?
UNIDENTIFIED FEMALE: I will.
UNIDENTIFIED MALE: OK.
UNIDENTIFIED FEMALE: My name's Louise, and I got first laid off on January 5th.
SHIBA RUSSELL, WCVB-TV CORRESPONDENT (voice-over): They are looking for work, tired of reading the "no help wanted" signs.
UNIDENTIFIED MALE: You are tied to the computer, and you're waiting for the telephone to ring.
UNIDENTIFIED FEMALE: My job disappeared because of competition with china and overseas.
RUSSELL: Reverend Earl Alger, interim minister of the United Church of Christ in Abington, started this support group for the unemployed last month.
REV. EARL ALGER, INTERIM PASTOR, UNITED CHURCH OF CHRIST: This is the third such group that I've formed during the course of a 40- year ministry, and this is by far the most significant and serious downturn that I've ever experienced.
RUSSELL: Up to 15 people walk through these doors every Tuesday morning to network, share tips on how to survive unemployment. It is a shameful reality for some, as many did not want their faces shown on camera.
UNIDENTIFIED FEMALE: It's not just people that haven't been good performers that are out of work. The competion is fierce. Every day I hear of vice presidents, assistant vice presidents, people with outstanding reviews that are being let go.
UNIDENTIFIED FEMALE: I want to be ready, and I feel this group can help me with current, trendy, up-to-the-minute job (INAUDIBLE) skills.
RUSSELL (on camera): And Reverend Alger wants to do a lot more. He's talking about setting up a computer lab in the basement, and he's already confirmed the group's first guest speaker.
In Abington, Shiba Russell, News Center 5.
(END VIDEOTAPE)
COLLINS: As you just saw, nonprofit organizations are paving part of the road to rescue. They're stepping up to help others make ends meet, even as they struggle to do the same.
With us today, Mary Crawford, who coordinates the Cincinnati chapter of Dress for Success; Jacqueline Brown, executive director of the Atlanta Children's Shelter; and, from Dallas, one of these organization's success stories -- can't wait to hear it -- Michael Butler, found a job with the help of his church.
I want to go ahead and begin with you, Mary, if I could. A lot of people have heard of your organization, Dress for Success. But what they may not know is that you offer quite a bit of other services, particularly now, some help with finding jobs.
MARY CRAWFORD, DRESS FOR SUCCESS: That is correct. We offer a monthly job-retention program as well as a weekly job readiness program. COLLINS: Are people coming to you for that? Are they aware of it? And how has your clientele changed during these tough times right now?
CRAWFORD: What we're doing with our clients, especially on the retention piece, we're trying to help them and give them support as far as housing, financial literacy, written and unwritten rules of the workplace. Because what we're seeing is, you know, people are losing their homes, they need an exit strategy for how to downsize into maybe a smaller apartment, as well as getting their credit together so that they can get into decent housing.
COLLINS: Yes. Yes. All right. Well, very good. And Jacqueline, the Atlanta Children's Shelter offers employment counseling as well, and child care, which can be a godsend to a lot of people. Tell us a little bit more about those programs.
JACQUELINE BROWN, ATLANTA CHILDREN'S SHELTER: Absolutely. The Atlanta Children's Shelter is for families that reside in homeless shelters, either emergency night shelters or transitional housing. And during the day, while the parents are looking for jobs or looking for housing, they have free child care, which is really a prohibitive cost to families with low incomes.
COLLINS: Yes, because we hear an awful lot about people wanting to go out and get jobs. And, you know, it takes a while now because of the current situation that we're in. And their biggest issue ends up being someone to take care of their children.
BROWN: Absolutely. And we serve children from one month, which is unusual for your traditional child care centers, to five years. And this is very important. You can imagine how it would slow down a parent looking for employment, dragging around a 2-month-old or a 3- year-old.
COLLINS: Yes. Absolutely. All right.
Well, Michael, I know that your church -- you actually went to one of these job fairs, if you will, and we've been talking a lot about what the nonprofits have a lot to offer everybody. You went to church and you said, hey, I need to network. And what happened? Tell us your story?
MICHAEL BUTLER, SUCCESSFUL JOB SEEKER: Yes, thank you, Heidi. A classic story of going to church to get a job. It's actually not the church I attend, so it's a program that Gateway Church in Southlake (ph) offers. It's open to the public. It's a six-week program, so you can jump in at any week.
They offer the types of things that I was needing at the time. Career direction is one of the topics they cover a week, interviewing, and networking is certainly another that I was interested in.
COLLINS: Did you ever expect to find yourself in this situation?
BUTLER: You know, it's I guess just part of God's plan. So, it's really a neat thing that's happened.
COLLINS: Yes, well, we certainly wish you the very best. And love to hear these success stories. Mary, I want to go back to you quickly. What can people do to help out Dress for Success? Because obviously we want to see you succeed so that you can help other people.
CRAWFORD: Yes. We're always looking for experts in the field of human resources, as well as employers who's willing to work with a hard-to-serve population.
COLLINS: Yes, because I think sometimes people forget that in times like this, you don't always have to give money. You can volunteer your time...
CRAWFORD: That's correct.
COLLINS: ... and you could help out with that.
COLLINS: Jacqueline, back to you. Are you seeing -- this is what is happening in the Atlanta Children's Shelter. Now, do you know of other areas or other shelters across the country that are starting to look at your model and are saying, hey, we're going to do what they are doing in Atlanta?
BROWN: Yes, there are a few other states -- cities across the country that have replicated our model. I know there's one in Boston, and there is one here in Decatur as well, in the metro area, that find that homeless families need that extra support in order to get out of homelessness and back into the community.
COLLINS: Yes, that child-care support. And Michael, hey, before we let all of you go, any advice to people looking for a job? I mean, you did it. You have one now. So, what would you say to them?
BUTLER: Well, I'd just encourage them to establish a plan, and if it's contacting a local nonprofit or church organization that can help them to direct their next steps, you know, I tell my kids, there's three types of people in the world. Those that make things happen, those that watch things happen and those that don't know what's happening. So, be part of that first group.
COLLINS: Yes. All right. Well, very good. And we're looking at a picture of your family right there. I'm sure they're very proud of you...
BUTLER: Well, thank you.
COLLINS: ... for sticking it out and doing that networking that we have heard so many times is just critically important for all of us. Thanks so much, you guys. We appreciate your stories today. Mary Crawford from Dress for Success, Jacqueline Brown from the Atlanta Children's Shelter and Michael Butler, who now has a job, thanks in part to his church. Again, "Snapshots Across America." Thanks, guys. The Dow on a four-day winning streak. That's something we haven't heard in a while. Will today make it five in a row? It looks good right now anyway. We're checking back on Wall Street.
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COLLINS: The causes are complicated, and the solutions in this economic downturn can be, too. That's why we're trying to break it all down for you this week. Five straight days of reports from all over the world on this global crisis. "ROAD TO RESCUE, THE CNN SURVIVAL GUIDE" all this week only on CNN.
Well, later today, President Barack Obama is announcing help for small businesses. The president's planning to use cash from his economic recovery package to cut fees and increase government guarantees for loans made by the Small Business Administration. The goal? To help small businesses create jobs.
Aides say the price tag, $730 million. President Obama and Treasury Secretary Timothy Geithner are giving us details about the small business plan. It will happen at noon Eastern, and we will bring it to you live.
We've got a winning streak on Wall Street, and today could be day five, believe it or not. But there is still plenty of concern about the economy and outrage over huge bonuses that AIG is handing out. Susan Lisovicz on the floor of the New York Stock Exchange now with details on this. I don't know if we want to hear them. Hey there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Well, let's start with the good news. And that is, we're coming off the best stocks since Thanksgiving. And the bulls are still grazing on some beaten- down stocks. What's also giving investors some confidence this morning, Heidi, is a rare interview from Ben Bernanke maintaing his belief that the recession will end this year.
But the Fed chief saying, of all of the extraordinary actions taken by the Federal Reserve, what makes him most upset is the bailout of AIG, at the cost of $170 million, I might add, to U.S. taxpayers. AIG over the weekend adding fuel to the fire saying, finally, where some of that money's going: $90 million to a number of banks, including three European banks, and it is going to be paying $165 million in bonuses to people in the very divisions that caused all these problems -- Heidi.
COLLINS: Well, I mean, you have to wonder, if Bernanke's so upset about it, then why is he trying to save AIG? .
LISOVICZ: Well, it's the whole issue of moral hazard. What is the greater risk? AIG does business in 130 companies. The Fed chief said as much that if AIG failed, it could destabilize the U.S. economy at a very precarious time.
COLLINS: All right. Well, how's it possible that AIG, then, is paying those bonuses to people in that divisions that seem to have maybe kind of caused it all?
LISOVICZ: Yes, that's a real head-scratcher. Let me quote Larry Summers, the -- President Obama's chief economic adviser: "We're a country of law. These are contracts."
He also said that the administration is doing everything it can to limit those bonuses, but they were contracts and you can't just abrogate them or you open up a whole other can of worms. AIG spokesman told the "Financial Times" that you really do need these people because they are the ones who knows these contracts. Discuss amongst yourselves.
COLLINS: Yes, we're discussing.
LISOVICZ: Yes, we're discussing.
COLLINS: All right, Susan, thanks so much. Watching the positive numbers and hoping they stick around all the way through to the close today. Appreciate it.
Hey, Susan, check this out. We've been doing "Deals of the Day" and all kinds of sort of tips for people in this tough economy. And apparently one very famous comedian is now in on it, too. Look at this.
We're looking at very long lines -- you'll see here in a minute because we're looking at these aerials coming in from our affiliate there, WDIV, near Detroit, free tickets for Jay Leno. Apparently there's a free show coming up April 7th, The Palace of Auburn Hills.
Those tickets are available today, and look at the line. So far, not quite sure when they started lining up. But apparently, he will be coming, Jay Leno, once again, host of "The Tonight Show," to metro Detroit for comic relief about economic relief. He's going to be even handing out some free slices of pizza.
So, there you see a very long line, once again, long lines for Jay Leno's free ticket. Apparently I'm just now hearing that folks have been in line since 7:30 this morning, Central time there. Wow. All right. Everybody wants to laugh about it. Kind of need to sometimes.
For more on all of the stuff that affects your bottom line, check out CNNmoney.com, your home for everything recession-related.
Shopping for a car but worried about keeping up the payments? One automaker is offering an assurance.
(BEGIN VIDEO CLIP)
NARRATOR: Now finance or lease any new Hyundai. And if you lose your income in the next year, return it to us with no impact on your credit.
(END VIDEO CLIP)
COLLINS: Wow. Is it a deal too good to be true? We've got a reality check.
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COLLINS: You need a new car but you're scared you might lose your job? It's in fact one of the big problems facing the auto industry. One company, though, has found a way to reassure its buyers. Is it too good to be true? That's the question. CNNmoney.com's Poppy Harlow is taking a look at this. Hi, there, Poppy. It's a pretty wild ad.
POPPY HARLOW, CNNMONEY.COM: Yes, it's interesting. The ad's been out for about a month. We're investigating it, calling some dealerships, seeing what's actually going on here. Because reluctant buyers are worried that if they actually buy a new car, they're going to be stuck with that set of wheels, and they can't afford it if they get laid off.
That's a big concern, so Hyundai is really trying to capitalize on that with the assurance program. You've probably seen these advertisements, and auto experts tell us the offer, Heidi, is for real, that there's no catch. So, we're going to break it down for you, tell you what's going on here.
Here's the deal: If you lose your job within 12 months of buying the car, you can return it. Hyundai will reimburse you for the value of the vehicle at the time you return it and will also absorb up to $7,500 in depreciation, since cars lose a lot of their value in that first year.
Of course, you're going to have to prove that you've actually lost your job. There's paperwork involved in that. But this is key: It's not going to affect your credit rating. There's no telling, though, Heidi, how long this entire process is going to take because Hyundai says it hasn't had one returned car yet since it started the program in January.
One of our producers called a Hyundai dealership in New Jersey. The owner of that dealership says the business has exploded since this program launched. He said sales -- yes -- were up 30 percent last month. Showroom traffic has increased by 45 percent, Heidi. So, talk about a silver lining for a struggling industry, huh?
COLLINS: Yes, no question. I just wonder, though, if when you buy the car, is it written in there somewhere that -- for how long? I mean, are they going to...
HARLOW: Right.
COLLINS: ... they could pull the deal at any time, yes?
HARLOW: Yes, they could pull at any time, but for now it's 12 months from the day that you buy the car.
COLLINS: I see. Got it. OK. So hyundai's offer is for real, which is very interesting. But there are others, I bet, to look out for, right? HARLOW: There's a lot of these out there right now. You're going to see a lot of ads on TV and online. I've seen a lot of this sort of "buy an SUV or a truck and you get a car for free." Sounds too good to be true.
It kind of is. You've got to read the fine print on this one. First of all, you can't choose any vehicle you want. Only certain ones apply. And you're going to have to pay likely thousands of dollars over the sticker price for an already pretty high-priced truck or SUV in order to get a free smaller car.
You may not get to apply any of those rebates that you see out there right now. And auto experts say that if you really need two vehicles, you can probably find two for less than just paying for the one. So, that one, not such a great deal. Read the fine print before you actually take the dive, Heidi.
COLLINS: All right. Very good. Interesting information. Poppy Harlow, thank you.
HARLOW: You're welcome.
COLLINS: The auto industry may be getting run off the road, but there's a part of it where the engines are still running. Local mechanics are importing record highs in business -- this is local mechanics now -- as more people realize it may be cheaper to actually keep it. CNN's Kate Bolduan has the story now from Washington.
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KATE BOLDUAN, CNN CORRESPONDENT (voice-over): In today's struggling economy, this and this is music to mechanic Nouey Streesouk's (ph) ears.
NUI SRISOOK, AUTO SHOP OWNER: Is everything all right? Make sure they're all tight, OK?
BOLDUAN: While so many small businesses continue to close their doors, Nouey Auto Services in Hyattsville, Maryland is thriving.
(on camera): Is there any way if you could even guess or estimate what kind of increase you've seen?
SRIESOOK: From my sales, just about 20 percent. At least 20 percent.
BOLDUAN (voice-over): Instead of kicking the tires on new cars, more and more people are nursing their old ones back to health.
SRISOOK: The people who don't have money are still coming in. They just fix whatever it needs, whatever is necessary.
BOLDUAN (on camera): To keep it on the road?
SRISOOK: To keep it on the road, correct. BOLDUAN: It's all in the numbers. U.S. auto stales plunged more than 40 percent last month compared to a year ago, and the Automotive Service Association is reporting 60 percent of its members are seeing an increase in business.
RON PYLE, PRESIDENT, AUTOMOTIVE SERVICE ASSN.: Another thing that we noticed was that the average repair order, the size of each repair order grew.
BOLDUAN (voice-over): And more repairs mean more parts and big business for auto parts stores like Darryl Wright's family-owned store in Washington.
DARRYL WRIGHT, DC BRAKE & BEARINGS CO.: It's an increase in the volume. We're doing way more business. The phones are ringing. You know, got customers walking in.
BOLDUAN: Customers looking for a bargain and hoping for longevity.
CHARLES BRYANT, CAR OWNER: Hopefully by the time this wears out, the economy will be better.
ESTHER WHITE, CAR OWNER: It is a lot cheaper to pay for upkeep and maintenance than purchasing a new car.
BOLDUAN: Some advice?
SRISOOK: Get the oil changed every 3,000 miles, 4,000 miles. That's the best maintaining of a car.
BOLDUAN: Mechanics like Nui Srisook helping to fuel the economy one tune-up at a time.
Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
COLLINS: Heirlooms and collections on the auction block. More families selling to survive.
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COLLINS: Grandma's china is a nice thing to have, but it's kind of useless if you don't have money to fill the plates. That's why more family heirlooms are finding their way to auction houses. Photojournalist John Bennett (ph) takes us to one in Virginia.
(BEGIN VIDEOTAPE)
MATT QUINN, QUINN'S AUCTION GALLERIES: We're setting up for a weekly auction.
UNIDENTIFIED MALE: Hi, there, how are you? 6196, thank you.
QUINN: We do about 400 items, antiques, collectibles, fine art. UNIDENTIFIED FEMALE: And I love this.
QUINN: It's sort of ordinary stuff: glassware, china, paintings, watercolors.
AUCTIONEER: Lot number 16 is a handpainted Dutch-style ceramic two-handle vase.
QUINN: Just about anything you'd find in Grandma's house. Pull it out of the closet and turn it into some cash.
Average lot price is probably $35 to $55, and we just move right through it and do it again next week.
AUCTIONEER: Sold, $45, buyer number 7186.
QUINN: Recently, a client of ours, Jeff Birch (ph), came to us and had actually his job.
UNIDENTIFIED MALE: Most of these will be sold in groups.
QUINN: Was taking the time to help mom clean out her house.
CHUCK BURCH, AUCTION HOUSE: You know, we had Matt over and had him look at, you know, look at what there was. There's some artwork, there's a lot of coins, some old books. It was a good time to just go ahead and shoot them out the door and see what we can get for them.
QUINN: So, you gave us a coin collection that will probably sell in excess of $10,000.
BURCH: Buy me a few more weeks. It's just sort of getting through month to month at this point. This is the first time I've ever been out of work. What we're living on is an accumulation of savings and stock purchases and that sort of thing. So, it hurts. I mean, I went and picked up a check at the stockbrokers today, you know, to get through this half of the month.
QUINN: Nine ounces of gold sitting on the sheet.
BURCH: My job 24/7 now is trying to find a job because I'm putting all of my selling skills towards selling me. I've gotten much more pragmatic about my expectations from here on in. I just want to work.
AUCTIONEER: Lot number 35a, there is a lovely little watercolor right there. Sixty, bid here now, 55, 65, 70, and 75, 80, hear an 85, 90, 95, 100, 110. Sold, $110, buyer number 4684.
BURCH: I was hoping for a lot more, but you know, realistically, that sounds about right. I'm just this sort of insane optimist. In spite of everything, I'll work again. And it will be soon.
I appreciate it. Have a good one.
QUINN: Take care. Bye-bye. (END VIDEOTAPE)
COLLINS: I'm Heidi Collins. "ROAD TO RESCUE, CNN'S SURVIVAL GUIDE" continues all week. You can join us again tomorrow morning beginning at 9 a.m. Eastern. For details on how you can get more for less. We're looking at creative ways people are coming up with to deal with today's economy. For now, though, CNN NEWSROOM continues with Tony Harris.
