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AIG Under Fire for Bonuses; Tips for Surviving the Pink Slip; Trucking Schools Booming; Wind Farms Offer New Job Opportunities
Aired March 16, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, HOST: Pushing forward on the road to rescue. It's the number one economic fear in America. Our focus today, unemployment. This hour, Gerri Willis on surviving that dreaded pink slip.
It will also show you where your next job might be. We'll tell you as we speak.
Hello, everyone. I'm Kyra Phillips live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
Well, desperate times call for unprecedented coverage. All week long, CNN is covering the economic meltdown as only CNN can. The road to rescue begins with a simple idea: knowledge is power. Power we have to find and keep homes, jobs, savings, and hope. And for the big picture, the family snapshots, the stats and the stories. Stay on "The Road to Recovery: A CNN Survival Guide" all week long.
Well, up first this hour, just started, the engine of growth. That's the White House term for small businesses, now among the hardest-hit victims of the credit crisis. President Obama invited some of them to the West Wing today, along with lenders, lawmakers, and Treasury Secretary Tim Geithner.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Small businesses are the heart of the American economy. They're responsible for half of all private sector jobs, and they create roughly 70 percent of all new jobs in the past decade. Small businesses are not only job generators; they're also at the heart of the American dream.
(END VIDEO CLIP)
PHILLIPS: Well, the road to small business rescue is paved by the bank bailout as well as the stimulus. Look for the government to start buying up securities made up of loans, issued through the Small Business Administration. That will give the SBA capital to make new loans.
And the government is raising the percentage of SBA loan amounts that guarantees against default. And it's cutting the fees that lenders charge borrowers.
AIG doesn't do anything small. The world's biggest insurance firm got into huge trouble requiring huge government bailouts, and now it's causing huge amounts of outrage over bonuses of top execs. It's even got the president talking. Which brings me to CNN's Suzanne Malveaux. She's at the White House.
Suzanne, how is the president reacting?
SUZANNE MALVEAUX, CNN CORRESPONDENT: Hey, Kyra.
You may realize, I mean, this is a group that got $160 billion of federal bailout money, taxpayer dollars. And they doled out about $165 million or so for executive bonuses.
Obviously, the president trying to express a sense of outrage, that he gets it, that Americas' taxpayers are fed up with the waste. But at the same time, he is trying to reassure Americans that there will be some accountability here despite this abuse. Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNTIED STATES: This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?
(END VIDEO CLIP)
MALVEAUX: And, Kyra, what the president says that he's going to do, or at least he's going to instruct his treasury secretary, Tim Geithner, to do is to explore all and any legal options to make sure that they don't get those bonuses, or at the very least, end up delaying them, or that this doesn't happen in the future. It's unclear whether or not the government really is going to be able to do that.
There's some members of Congress who are saying perhaps legislation would do the job, and, of course, he's looking at ways to regulate all of this so it doesn't happen again. Kyra?
PHILLIPS: All right. Suzanne Malveaux live from the White House. Appreciate it.
Well, one of our iReporters actually has a tip for getting AIG on the road to rescue. It's apart from cutting undeserved bonuses. Take a listen.
(BEGIN VIDEO CLIP)
DAVID SEAMAN, IREPORTER: 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 do some cost cutting and have you guys move out to a cheap corporate office park in New Jersey.
(END VIDEO CLIP) PHILLIPS: So when can we put this whole recession behind us? Fed chairman Ben Bernanke says that the banks are the key, and a turnaround making be in sight. Here's what he told "60 Minutes."
(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. And we've seen some progress in 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)
PHILLIPS: Well, Bernanke -- Bernanke bounced, rather, a market momentum. That's four straight days on the plus side. For whatever the reason, blue chips are surging and bank stocks are leading the way. The NASDAQ's been slightly down. Right now, Dow Industrials up 148 points.
Well, take ten of your friends and relatives and now imagine three or four of them are out of work. Well, that's exactly the situation that people are facing in Allendale County, South Carolina. At 23.4 percent, they're at the bottom of the latest national unemployment numbers. Manufacturing and farm cutbacks also taking a really big toll.
Overall, South Carolina's rate is the highest in a generation. But bad as things are, they're worse in Michigan, home of the highest state unemployment rate in the country, 11.6 percent. Rhode Island and California also hurting badly, with more than 10 percent unemployment.
This latest data is from January, by the way, when the rate was 7.6 percent nationally.
Now, since the recession began, 4.4 million people have lost their jobs. And if you've still got yours, here's hoping that it stays that way. But just in case, personal finance editor Gerri Willis is here with some simple steps to help you survive a pink slip.
Actually, I don't think anything is simple nowadays, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, that's true. But you know, Kyra, the first thing you need to know are what are your rights when you lose your job?
Well, No. 1, you're due any wages that you should have been paid for, and this includes overtime or commissions. Don't forget those. Now, severance pay, sick time, vacation pay, that's all at the discretion of the employer. Policies vary and there are even resumes in different states. Call the Department of Labor at 866-4-USA-DOL if you think your rights have been violated. These folks will chase down the claims for you -- Kyra.
PHILLIPS: Well, what should folks know about unemployment benefits?
WILLIS: You know, you want to get all the public assistance you can, right? The average worker is unemployed for five months. But there's no guarantee how long it will take you to find a new gig.
Apply for those jobless benefits. They've been expanded, up to 33 weeks of benefits and as much as 59 weeks for people living in states with high rates of joblessness.
Now, you're going to get about $325 a week. That's about the median, the average. And the first $2,400 of benefits will be exempt from federal taxes.
Go to WorkForceSecurity.doleta.gov to find details on your state, and don't wait, because it takes two to three weeks after you apply before those benefits start. The government maintains local career centers, too, where you can get help. You can go for advice, use a computer, get some one-on-one counseling. That's CareerOneStop.org for details -- Kyra.
PHILLIPS: All right. And health benefits. I've got to ask you about your advice on that. A lot of e-mails.
WILLIS: This is critical. Health care is critical, because it's the No. 1 cause -- reason that families file for bankruptcy. So you've got to have health care, even if you're unemployed.
The easiest thing to do, the cheapest thing to do is to jump on your spouse's plan. If you have a spouse, get on their plan. It doesn't matter that it's not open enrollment time. If you lose your job, you can jump on. You now how inexpensive that is.
Now, if that's not possible, you're going to have to apply for COBRA. You have to do this within 60 days of being let go. The benefits are simply an extension of your existing health insurance coverage, but the big difference is you pick up the full tab.
The good news here, the stimulus provided some assistance for folks. The federal government is picking up 65 percent of your premiums. This is important, of course, because as I said before, health care is a big cost for folks. If you don't have any income and you have -- even a visit to the emergency room could provide a great big old headache.
Go to the Department of Labor Web site, DOL.gov, for more information on COBRA.
And, of course, if have you any questions, send them to me at Gerri@CNN.com. We love to hear from you. We answer those questions every Friday, and we get a lot of them -- Kyra.
PHILLIPS: All right, Gerri. Thanks.
KELLY: My pleasure.
PHILLIPS: Well, does this look familiar? It's a job fair, and it's the hottest ticket in a lot of towns. Taking steps here could be your first step down the road to rescue. We're going to help you find where they are.
GRAPHIC: JOB HUNTING? Staying focused. What do you have to offer that is unique? Develop a sound understanding of your abilities, skills, experience and fit. Analyze your professional background to identify stories, evidence and data about your job performance to better market yourself.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
ROBIN HAYDEN, IREPORTER: The company that I got laid off from, there was many, many people that got laid off at the same time. And we've stayed in contact with each other. We give each other moral support. Some of us have found jobs; some have not.
ANGELA MCGILL, JOB SEEKER: I'm very determined. I've got an entrepreneurial spirit, and I'm determined to make it, even you know, in the face of this recession, you know, and the economy. I'm just determined to make it.
(END VIDEO CLIP)
PHILLIPS: Well, just like the Atlanta job seekers that we just heard from there, the first stop on your road to rescue might be a job fair.
Two over the weekend were in L.A. and Nashville. About 10,000 people jammed a parking lot at Dodger Stadium. Greeting them were reps from more than 80 companies, including Coke, Lowe's and Union Bank.
And not even a rainy day stopped hundreds of people from turning out for a job fair in Nashville, Tennessee. Get this: they were hoping to land jobs just for the summer.
Well, as for job fairs coming up, we can help you find them. Here's where we want to take you right now: CNN.com/jobs. We've been showing you where all the job fairs are listed across the country. Just go to our Web site. The two that we're pointing out today over here in Anchorage Alaska, March 18, just a couple days away at Egan Convention Center. There's going to be a job fair there. And then we found another one over here in Rochester, New York, April 22 at the Doubletree Inn.
In addition to that at CNN.com, where you can look at all the various job fairs that have taken around the country, we've also, if you go over to CNNmoney.com, look at all the stories that we've got for you now with regard to keeping a job, finding a job, all your concerns about unemployment employment. We've got job hunting for introverts, where the jobs will be coming up, the 100 best companies to work for. Mountain job losses, fireproof your job, great tips we've been putting together for you to focus on this week.
Once again, that's at CNN.com/jobfairs and also CNNmoney.com. All the details about upcoming employment.
All right. Well, many job seekers are trucking down the road to rescue, as well, seriously. Skywriting (ph) unemployment is driving students to trucking schools, and our Ed Lavandera shows us just how that business is booming.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): The economy drove Garnett Vanzandt to get behind the wheel of a big rig.
GARNETT VANZANDT, STUDENT TRUCK DRIVER: I'm putting it in reverse right now.
LAVANDERA: Vanzandt is learning how to drive this massive beast of a truck.
VANZANDT: Just going straight back.
LAVANDERA: In just a few weeks, he could be sitting in a new job driving freight cross country.
VANZANDT: I never thought I'd be here one day: behind a wheel, going state to state, sight-seeing, seeing stuff that you never thought you would see. Your dream is coming through.
UNIDENTIFIED MALE: Again.
LAVANDERA: But it's a dream born of nightmares. Vanzandt says he signed up for truck driving school after getting laid off from warehouse jobs six times in six years. He was lured by the hopes of a steady paycheck. First-year drivers can make up to $40,000.
VANZANDT: When I get a check, I know my bills are going to be paid. I don't need to be pulling my hair out, stressing out, crying. I don't want to go through that no more.
LAVANDERA: Just a year ago high fuel prices drove many truckers out of business. Gas prices have dropped, but the amount of goods being trucked has dropped 11 percent in the last year. Despite this, truck driving schools across the country now say there's a rush of laid off workers looking to make a career change.
LARRY HOBGOOD, INTERNATIONAL SCHOOLS: People are being laid off now that we're kind of helping everybody find jobs.
LAVANDERA: Larry Hobgood runs a truck-driving school in Texas. His company has reopened schools in places that have seen a rise in unemployment, and the classes are filling up fast.
HOBGOOD: We're seeing people from every type of unemployment background, every walk of life that are considering the trucking industry.
LAVANDERA: These schools say they've seen teachers, real-estate agents, even a former airline pilot.
ROD HURST, CONTINENTAL TRUCK DRIVING: There's so many out there, we're getting flooded with calls, and they're just looking for a way of making a living.
LAVANDERA: But a word of caution: the American Trucking Association says 3,000 trucking companies went bankrupt last year. The amount of goods being moved on the road has plummeted, so finding a job might be just as tough as learning how to drive these trucks.
(END VIDEOTAPE)
PHILLIPS: Well, before you jump in the Kenworth and head eastbound and down, keep in mind that experienced truckers say that the job isn't as lucrative as it once was.
A new Rutgers University study apparently agrees. The average income of independent drivers in the New York and New Jersey port area is $28,000 a year after expenses. Now, that figure is roughly half of what it was before the industry was deregulated in 1980.
Now, full-time truckers with port area companies make about $35,000 per year, but independent drivers make up 73 percent of the 7,000 truckers in New York and New Jersey. Now, most have no health insurance.
Now, you know last week we talked to you about a number of newspapers that are expected to either go under, file bankruptcy or go totally online. Well, we're getting word now that the last print edition of the "Seattle Post-Intelligencer" will be published on Tuesday. The Hearst corporation just announced that "The P-I" will become the nation's largest daily newspaper to shift entirely online.
Harnessing the power of the wind. Ted Rowlands is up there trying not to get blown away with a look at how the winds of change are blowing for green jobs.
Hey, Ted.
TED ROWLANDS, CNN CORRESPONDENT: Hey, Kyra. Yes, trying my best not to get blown away. That would not be good.
Green jobs, this is the ultimate green job. It's the wind tech job. We're going to preview what it takes to be a wind tech. There are a lot of jobs out there in the future in this industry. Do you have what it takes? We'll preview it coming up from high above a wind turbine in California. We're coming up next in the NEWSROOM. Stay with us.
(COMMERCIAL BREAK)
PHILLIPS: The job situation might hurt where you live, but it's excruciating in one area. Is government money helping stop the bleeding? We're going to find out from people who are hurting, not people who are spending.
(COMMERCIAL BREAK)
PHILLIPS: Green jobs is a blueprint for your economic survival and another chapter in the survival guide that we've put together for you. We're listening to real people and the investments that they're making in themselves and their futures in our weeklong "Road to Rescue."
Ted Rowlands is definitely on the road. He's on the road in Tehachapi, California. A new crop of windmill farms generating more than electricity. That's for sure.
OK. I'm just hoping you all maintain stability up there, Ted.
ROWLANDS: Yes, it's windy up here, Kyra. And this is the -- this is the scary chapter in the road, the book here. Man, oh, man, we're high up above on a wind turbine in Tehachapi, California. And we're looking at one specific job: what it takes to be an engineer of sorts up here in the wind turbine business. A wind technician.
Could you be a wind technician? Well, I don't know. I've climbed up here, and it's tough stuff. But there are going to be estimated thousands of these jobs available in the next few years, as this industry takes off.
It's been around for some 20 years, but because of government incentives and goals set to increase wind energy, there are expected to be literally thousands of jobs.
One guy that changed his profession is Mike Goldsworthy. He is a former cabinet maker. And now he's a wind technician.
Mike, first of all, give us a quick sense of your situation, your family. You lost your job; you were laid off as a cabinet maker. And this is what you turned to. Tell us a little bit about it.
MIKE GOLDSWORTHY, WIND TECHNICIAN: Well, back in November I was working for North Woods Cabinets here in Tehachapi, doing custom cabinetry. I really enjoyed the work. But because of the recession and the economy going downhill, all the construction work here just kind of died. So I got laid off.
And -- but previously, earlier in the year I had taken the Tehachapi High School ROP program. And...
LAVANDERA: Basically a class to learn the basics of this industry?
GOLDSWORTHY: Right. It was a really good program that taught you all the basics. It went over schematics, hydraulics, all the different components of the different machines, and that gave me a little bit of an edge to start into the business.
And when I got laid off, I called Mike Messier (ph) at Airstreams, my instructor at the time from the class, and told him, you know -- to ask him if he knew of anything that was available, you know, any openings that he knew of. And because of the ROP class, he pretty much offered me the opening they had right on the spot.
ROWLANDS: You happy you made the decision? You like this as a career?
GOLDSWORTHY: Absolutely.
ROWLANDS: This is Jeff Duff. He is an instructor. He runs a company that basically instructs people in this.
What's it take to be a wind technician? And give us a real sense. Are there going to be jobs? Because right now, I know T. Boone Pickens had a grand plan to start up wind farms. That's been put on hold because of the economy. Is there going to be jobs for people that right now are looking at this as a possible career? And then what does it take?
JEFF DUFF, INSTRUCTOR: Yes. Absolutely, Ted. You know, with the -- with the incentives that the government's throwing at this industry right now, you know, we're at this -- at this tipping point in our industry.
For 25 years my business partner and our company instructors have been doing this with passion, which is one of the things it takes to be in this industry.
Of course you can't be afraid of heights. You need to be able to work and learn, and it's something that we've done, all of us have done over our careers. And since 2003, our company, Airstreams, has been doing technical training and safety around the industry.
And, you know, last year we wrote a curriculum to really pull this all together to help get technician jobs out there quickly. So there definitely will be, you know, a lot of jobs coming up here in the near future.
ROWLANDS: All right. Being scared of heights is a problem with this job, Kyra. And it's kind of a problem for me today, but we're pushing through it. The ultimate green job.
PHILLIPS: Well, that leads me to two questions. All right, well, two questions for you on one note for you, on -- one note for you and for Jeff. You know, is this working? We -- you know, I remember when this kicked up in Palm Springs back when I was living in California, and you know, there was controversy whether it was working or not, whether it was worth the investment.
Can Jeff give us an example on how this is definitely working and making it worth our while, the investment, I guess, in the area?
ROWLANDS: Absolutely. I can tell you one thing, Kyra, as we asked Jeff that. Right now wind accounts for -- wind and solar and all of it combined, combined for just 1 percent of the amount of energy that we consume in this country. We're hoping to get it to 20 percent.
But the question is, is it worth the investment? These things are multi-million dollars per turbine, especially the newer ones, and the reason people are getting into it are government incentives. But Kyra was just asking long-terms, is this worth it? Is this a good investment?
DUFF: Well, from our country's point of view, the investment in renewable energy is absolutely a worthy investment. From, you know, from the general business sense, absolutely. This is a very lucrative business.
ROWLANDS: Why has it taken 20 years to get to this point? And there really hasn't been a lot of energy behind it in terms of enthusiasm, and the bottom line hasn't been there before. Why is it here now?
DUFF: You know, it's just been an -- you know, an industry that's been kind of cutting edge. And it's, you know, now that there's a lot of focus on energy. Last year I was paying $5, more than $5 a gallon for gas.
So as our country and our world starts to focus on energy and, you know, the fact that oil is not something that's renewable -- once it's gone, it's gone -- we need to start turning to these renewable energy sources.
And we need to have people to go out there and work on these wind farms. This is why training is so important and why we have to make sure that people are climbing safely and doing all this work up here.
PHILLIPS: And Ted, are there homes and energy. Are homes and businesses actually getting energy from these right now?
ROWLANDS: Oh, absolutely.
PHILLIPS: I hear about the future and investing in the future, but right now, what's there in the area that's actually getting the kickback from this now?
ROWLANDS: Oh, absolutely. They're selling this energy right now to the grid system in place here in Southern California, and it's going on across the country. Iowa is a huge energy producer. Texas is the No. 1 wind energy producer, and they sell it to the local grids. So it's just like any other power plant that sells to the local grid.
The problem right now, Kyra, around the country is the infrastructure of the grids haven't been upgraded enough to accommodate a lot of this. So in Tehachapi, California, where we are now, they've maxed it out. They're generating enough wind [SIC] now to fill the grid's capacity. They need the grid to be upgraded before they can add more turbines here. PHILLIPS: Got it.
ROWLANDS: It's a two-edged -- you know, it's a two-pronged approach to it. The feeling is in the industry, once the things are up and once the investment is made, it's going to be smooth sailing from there.
PHILLIPS: Or a three-pronged windmill.
ROWLANDS: Or a three-pronged windmill.
PHILLIPS: Double-edged sword or a three-pronged windmill.
ROWLANDS: A wind technician only pays at the beginning $15 to $18, but you can make a lot more money as you improve your skills.
PHILLIPS: Wow. All right.
ROWLANDS: Making $15 an hour.
PHILLIPS: Just hold on tight up there, my friend. We're going to talk to you again at 2 p.m. Thanks to Mike and thanks to Jeff. Thanks, Ted.
ROWLANDS: All right. Thank you.
PHILLIPS: All right. Well, there's at least one business owner out there who isn't just surviving; he's succeeding. And in an industry that's hurting. So what's his secret and can we get some? Another page in the survival guide as we keep on trucking down the road to rescue.
(COMMERCIAL BREAK)
PHILLIPS: Well, "THE ROAD TO RESCUE" is a journey only CNN could undertake. It's a whole week of unprecedented coverage of the economic crisis in all its forms. And we're out to leverage the capital we know best: knowledge itself. Helping you survive the storm and thrive on the other side.
So, when might the sun come out? Well, a prediction by Fed chief Ben Bernanke may be one reason for spring fever on Wall Street. Here's CNN's Christine Romans.
(BEGIN VIDEOTAPE)
BEN BERNANKE, CHAIRMAN, FEDERAL RESERVE: 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 a recovery may begin next year if the financial system stabilized. He said a, quote, "New American depression has been averted," but vowed not to make the mistakes that led to the Great Depression, letting the banks fail.
SCOTT PELLEY, CBS NEWS: 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 necessary, is try to wind it down in a safe way.
ROMANS: He said 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 slammed the phone 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 to stabilize or else risk enormous impact, not just in the financial system but on the whole U.S. economy.
ROMANS: Christine Romans, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: Here's what I meant by spring fever on Wall Street. A fifth straight day on the upside. Bank stocks leading the way. Dow industrials up 144 points.
All this week, we're taking you to hard-hit communities across the nation, big and small, rural and urban, all filled up with boarded-up businesses and people desperate for work. Take the Buffalo, New York region. The jobless rate there is at, well, brutal as lake-effect snow, I guess you could say. In October 2008, unemployment was at 5.7 percent. In January of 2009 it rose to a whopping 9 percent. Reporter George Richert, of our Buffalo affiliate WIVB, shows us how people there are dealing with the downturn.
(BEGIN VIDEOTAPE)
GEORGE RICHERT, WIVB-TV CORRESPONDENT (voice-over): The state's labor commissioner, Patricia Smith, didn't beat around the bush.
PATRICIA SMITH, NEW YORK LABOR COMMISSIONER: For every three unemployed workers at this point there's one job opening.
RICHERT: Since October, the unemployment rate for Erie and Niagara counties has climbed to 9 percent, its worst rate since the '80s. JOHN SLENKER, N.Y. STATE DEPT. OF LABOR: That is the most striking thing about this recession is not even its depth but the speed at which it has, you know -- onset.
RICHERT: It means one out of every 11 people who want a job can't find one. In the city of Niagara Falls, it's even worse. One in eight can't find one.
GWENDOLYN PATTON (ph), UNEMPLOYED: It's hard. But I'm going to keep working.
RICHERT: Gwendolyn Patton (ph) is unemployed with three kids to feed.
PATTON (ph): Like today, I just spent my last on getting them, you know, some things that they needed, and it's all right. It's just -- it's stressful.
RICHERT: Willy Walker had to take his bike to his appointment at the Labor Department. He was laid off in January after seven years.
(on camera): How do you think this will all turn out, Willie?
WILLY WALKER, UNEMPLOYED: For the next couple of months, I don't know what to think, really. All I know is I've got to do what I've got to do in order to take care of my family.
RICHERT: What concerns labor officials even more than the actual unemployment rate is the fact that there are nearly 5,000 fewer jobs in the Buffalo area compared to last year.
(voice-over): Buffalo isn't as reliant on manufacturing jobs as it used to be, but our unemployment rate is still higher than the national rate of 7.6 percent. And even if you have a job, it's everyone's problem.
SLENKER: If your neighbor can't buy the products and services that you're selling, your business declines.
(END VIDEOTAPE)
PHILLIPS: WIVB's George Richert joining us now live. Now, George, I know you've been covering this market for 20 years, right?
RICHERT: Yes, that's right.
PHILLIPS: OK, so, you've seen this area go through the ups and downs, the closing of the Bethlehem Steel, I think it was, in the '80s, correct?
RICHERT: That's right. That's exactly right.
PHILLIPS: So, let's talk about the people of Buffalo and how they're dealing with this downturn. Is it the same type of feelings? Is it worse? I mean, tell me the perspective. RICHERT: I wouldn't say people are desperate. They haven't gotten to that point. Western New Yorkers have always been coupon clippers. I mean, western New Yorkers have always been frugal. So, we didn't see the highs of the '90s that most of the rest -- not as high of a high as the rest of the nation. And as a result, we didn't see as low of a low as the rest of the nation over the last few years. But when you're used to being coupon clippers in general, it's hard to go below that, even when there's a small dip in the economy.
PHILLIPS: So with regard to the stimulus money and creating jobs, what do you think? What's the attitude there?
RICHERT: It's still too early to tell. Everybody is very cautiously optimistic, including the politicians. But there really hasn't been any big number or numbers that we can lay our hands on to say that this is going to create jobs.
I suppose the one and only example we've been able to hold up is the Buffalo schools. They were facing a multi-million-dollar cut because of a state deficit of $14 billion. They were preparing for the worst. And then along came the stimulus money, which pretty much gave them back at least what they had feared losing. So, that's one of the only examples we've come up with. The rest, we'll have to wait and see.
PHILLIPS: So bottom line for you, you've been covering this for 20 years. You know the stories, you know the city, you know the people. What do you see is the silver lining at this point?
RICHERT: I suppose the silver ling is, we'll slowly get through this, just as we did. You know, when we lost Bethlehem Steel, the unemployment rate was even higher back then, in '82 and '83. It hasn't been this bad since. But I suppose now that we're not as reliant on the steelworker jobs, we're more sure service-sector oriented, that maybe we will start to see the upswing when the rest of the nation does.
PHILLIPS: George Richert, good to see you. Thanks a lot.
RICHERT: Thank you.
PHILLIPS: Well, we've seed it before, but it deserves repeating. The recession isn't just pounding the U.S. It's pounding the world, and it will take a global effort to put all of us back on the road to rescue. And here's a look at what's happening in three key cities that must play a role in any rebound.
(BEGIN VIDEOTAPE)
JOHN VAUSE, CNN BEIJING CORRESPONDENT: I'm John Vause in Beijing, where the prime minister says right now confidence is more valuable than gold, and the government is optimistic its stimulus package can keep this economy growing at around 8 percent this year. But many fear the global economy will only get worse, further reducing demand for China's exports, which fell dramatically again last month, forcing more factories to close, adding millions more to already decade-high unemployment.
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: I'm Jim Boulden in London. There is a chance one day that British people will look back on this time and give their government some credit for taking the lead in bailing out the banks and stimulating the economy.
Still, polls show that the government is deeply unpopular. And that's adding to the pessimistic feeling here. In fact, another poll shows that half of all Britons feel that their personal finances will continue to deteriorate as the economy continues to shrink in this very deep recession.
SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: I'm Sara Sidner in New Delhi, India, where the Indian home minister just last month said that india Was just a handful of countries that is a shining example of a resilient economy. Now, he credits much of that to domestic consumption. And if you take a look at this everyday working kind of man's market, it is full of people, and they are buying.
But economists warn there are some troubling figures out there, and they have to do with production. The gross domestic product increased by 5.3 percent in the third quarter, but that's down from 9 percent in the last couple of years. What does all this mean? Economists say there's a severe slowdown here, but India is not in a recession right now.
(END VIDEOTAPE)
PHILLIPS: And to put it another way, economists say that India's huge domestic consumption has made it less connected to the global economy, and that's a key reason its less affected by the recession.
Millions of you are insured, millions are not. We're going to take a look at what the president's plan for reforming health care could mean for your bottom line.
(COMMERCIAL BREAK)
PHILLIPS: One of the cobblestones in the road to rescue is the president's plan for health care reform. But in paving the way for the uninsured to get coverage, will you be picking up the tab with higher premiums? Senior medical correspondent Elizabeth Cohen here to break it down for us. Elizabeth?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Kyra, we hear a lot about how health care reform might affect the millions of people who don't have insurance. But what you don't hear so much is how is it going to affect people who do have insurance? It's an important question because most Americans have insurance. In fact, 67 percent of Americans have some form of insurance, and that doesn't even count Medicare and Medicaid.
So, let's take a look. Some people are hoping that health care reform will help people with insurance, because, boy, are premiums going up. Take a look at this. In 2004, a family paid nearly $10,000 in premiums for their insurance. In 2008, that went up to $12,680. That, as you can see, is a huge increase in just four years.
So, let's go over the hopes. The hope is that health care reform will decrease the amount of waste that's in the medical system, and, boy, everyone will tell you there's a lot of waste. There's also hope that health insurance reform will bring in more people into the pool. You're insuring more people, so that way you could possibly lower the cost for everyone and also lower the risk. So, Kyra, those are the hopes.
PHILLIPS: But a lot of people are saying, hmm, these reforms could make things worse with regard to cost. Are there critics out there saying that?
COHEN: Yes, there are people who are concerned that once we know the details of health care reform, which we don't know right now, but that once those details come through, there is a possibility that people with insurance might actually be paying more. So, let's take a look at why.
In order to insure 46 million uninsured people, you've got to spend hundreds of billions of dollars. That cost might possibly come out of the pockets of people who have insurance, either in the form of higher taxes or in the form of higher premiums. Or possibly folks who have insurance might get worse coverage in order to give any coverage to people who have insurance. So, Kyra, those are the concerns for people who already have health care insurance.
PHILLIPS: All right, so how do you know if you have good health insurance or not, or what the best health insurance is?
COHEN: Right now we're talking about health care reform for the future. Right now, if you want to buy health care insurance and make sure that it's good and at a reasonable price, if your employer gives it to you, that has kind of been done for you. If you are unemployed or your employer doesn't give you insurance, and you're on your own out there trying to buy it, you should go to CNN.com/empoweredpatient. We have an entire column on how to shop for health care insurance. And Kyra, I can tell you, it could be the most important purchase you ever make.
PHILLIPS: Elizabeth, thanks.
COHEN: Thanks.
PHILLIPS: Well, don't make a federal case out of it. Just bring your own paper. An Ohio court says don't bother coming without a box of letter or legal.
(COMMERCIAL BREAK)
PHILLIPS: So, if you don't have a job or you're watching your money, it's doubtful buying jewelry is on your list of "buyorities," but the money you're not spending is money that jewelrymakers aren't making. Stephanie Elam's in Pawtucket, Rhode Island, where jewelry puts food on lots of tables there. Stephanie, the owner of the company where you are found a way to survive and even succeeded, right?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Oh, yes. He's doing quite well, actually. I'm here at the studios of Chris Ploof (ph), and he's a fine jewelrymaker. He specializes in wedding bands. And that's part of the reason he does so well, because people get married no matter what the economy looks like. Most of the time when they do that, they want their rings to be of a nice metal, so that has helped his business thrive in this situation.
A lot of times we look around in Rhode Island, and it's a little known fact, at least people I've talked to have been surprised by it. But Rhode Island is actually the epicenter of the costume jewelry, the fashion jewelry industry, and a lot of it had to do with people immigrating from countries like Italy early on, 75 years ago or so, bringing their trade with them, and a lot of that centralized here in Rhode Island.
So it's really become sort of the heart of what has been happening here in Rhode Island in the industry. However, a lot of that fashion jewelry can now be made in places like China and then imported back into the country. So, that has had an impact on the industry, where now 12.5 percent of the jobs in Rhode Island in jewelry were lost last year, Kyra.
PHILLIPS: Am I putting you on the spot if I ask you to go back there and show me what they're making and what they have, and tell me how is it this company can even expand in this workshop, especially in these tough times?
ELAM: They are expanding. And part of the reason why they do is because they use innovative techniques, and they also use specialty metals. For example, let me show you this. You're not putting me on the spot because I know you, Kyra. I knew you were going to want to know, so...
PHILLIPS: I want to see the goods, baby.
ELAM: ... this right here, this is meteorite. It's like 4.5 billion years old right here. And so, they take this very heavy piece of iron, and they will flatten it out into a disc that looks like this. This is flat meteorite here. And I know you're thinking, where's the jewelry part of it.
PHILLIPS: Exactly.
ELAM: This is still very heavy. And then we get to a wedding band like this, and you can see it's got gold around it and on the inside there, that is meteorite. So, they'll turn that into wedding bands. Very interesting designs that perhaps a gentleman would like to wear that has some design to it, but, you know, still quite masculine. So, they do this sort of innovative -- I'm selling it.
PHILLIPS: Yes, really. We'll put you on QVC now.
ELAM: I know. I need to get my hands together. But yes, that's the idea. So, it's something different. It's not really out there. And that innovation has really helped Chris Ploof (ph) do well. And doing a lot of pitching his business out there, showing people what he has has been helping out as well. So, that's how he's able to expand in this recession. Nonetheless, good news coming out of this one shop.
PHILLIPS: All right, well, you know I can't ask you to bring me back a wedding band. That wouldn't work. But if you, you know, want to bring me back a little something, I would love to donate to the cause. I like the jewelry.
ELAM: Oh, I will see what we can do. I will talk to Mr. Ploof (ph) and see what we can do, see if he could, you know -- never know what could come along with a wedding band for you, Kyra.
PHILLIPS: Really. Whew. All right. Thanks, Steph.
Well, all this week, we're all about survival, solutions and success, maybe marriage there, according to Stephanie. Our survival guide doesn't have room for politics or spin, just knowledge. Today, we're talking about your job, how to find it and how to keep it.
And tomorrow, we talk about your house and how to keep it, whether you're in financial trouble or not. And then Wednesday and Thursday, we're going to talk about your household, saving money on groceries and other stuff that you just can't live without. We're also tapping into some pretty brilliant cheapskates who can show you how to save in ways that maybe you had not thought of before. And then Friday, how to have fun when money's tight.
Well, money and supply shortages have an Ohio court on a paper chase. Starting today, Morrrow County's municipal judge won't accept new cases unless the person filing brings their own paper. Apparently, he says the court's only got enough to deal with pending cases, and the county was never able to pay the bill for the court's last batch of office supplies because the economy has been so bad. Now they can't get any more.
Well, gambling isn't exactly a recommended way to improve your economic situation, either, but it worked for Cathy Ortiz. The Colorado woman lost her job last year as a small truck operator, but lady luck gave her a bear hug. Last Sunday, she won more than $1,200 at a casino, but it gets better. Monday, she won $500 in a Lottery scratch-off game. And then get this: Wednesday, she scored 50 grand in the Powerball drawing.
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CATHY ORTIZ, WON $50,000-PLUS IN ONE WEEK: The Powerball thing's still, like, surreal, you know, that I was off one number for having the whole thing. Been lucky or blessed, I don't know which one it is, but either way, I'm happy.
(END VIDEO CLIP)
PHILLIPS: Good for you, Cathy. She plans to use at least part of her winnings to make a down payment on a house, by the way. She's been living with her son.
Well, the pink slip might be the monster under the bed that keeps you awake at night, but just hold on. It could open the door to a dream job. We're going to tell you how.
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PHILLIPS: Are you depressed because you're out of work? Don't despair. That pink slip could be the best thing that's ever happened to you. It's an opportunity in layoff's clothing. Here's CNN's Carol Costello.
(BEGIN VIDEOTAPE)
CAROL COSTELLO, CNN CORRESPONDENT (voice-over): Welcome to one of Chicago's hottest small businesses, the Silly Cheese Salon and Spa.
JENNIFER JACKSON, CO-OWNER, ASILI CHI SALON AND SPA: I'm on a playground all day, you know? It really is. It's really, really fun.
COSTELLO: That's co-owner Jennifer Jackson, who used to work in corporate America as an electrical engineer with all the perks. But she got laid off. She tried teaching, got laid off from that, too. It's enough to send anyone into a depression deeper than the recession. But Jackson saw it as an opportunity.
JENNIFER JACKSON, ASILI CHI SALON & SPA: And I've always been a risk-taker all my life, and I've always felt like, unless you step out there on faith and try something different, you'll never know your true potential.
COSTELLO: So, in her mid-30s with little savings, Jackson went to beauty school, found a partner, bought a salon. Her story is not unusual. Many laid-off Americans are looking for work but are also discovering the answer in this recession might be to switch gears completely and do what you love.
HALLIE CRAWFORD, CAREER COACH: I'm actually finding that it's kind of a post-9/11 effect, similar to that, where people, when they're contacting me, they're taking a hard look at their lives and, you know, is their life going in the direction that they want it to.
COSTELLO: Walter Kirshbaum asked himself that question after finding himself without a job after 30 years on Wall Street. He found he didn't want to go back. He wanted to fix antique clocks, so he used $25,000 in savings to open up his own shop, and he's never looked back. The secret, he says? Find something you love.
WALTER KERSCHBAUM, SCARSDALE CLOCKS: What would make you want to get up every day and get out of bed and do something? When you come up with that answer, second question is, is there a way I can make money out of that activity?
COSTELLO: Both Kerschbaum and Jackson aren't as rich in dollars as they once were, but both say they're rich in something more important: happiness. (on camera): If you want to do this, there are two things to keep in mind. You have to have a plan, and you have to be prepared to make a lot less money.
Carol Costello, CNN, Washington.
(END VIDEOTAPE)
