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Struggling Families Cutting Out Healthcare; Philly Cheesesteak Business Golden; Tips on Being Cheap: How You Can Save Thousands of Hard-Earned Income a Year; Fed Begins Two-Day Policy Meeting Today; R.I. Program Revitalize Community; Housing Survival Guide; Tough Times Familiar for Many Latinos
Aired March 17, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: This hour, your home and its value. When could the market rebound? And what to do if you can't keep up with your payment.
Also, your money. Five things that could save you $20,000 a year.
It's Tuesday, March 17th. I'm Heidi Collins. You are in the CNN NEWSROOM.
Explaining problems, providing solutions. In our "ROAD TO RECOVERY" we're breaking down the economic crisis to help you make the best decisions. Let's start with your government.
Your jobs, your housing. We've got you covered with our correspondents this morning. Barbara Starr is at a job fair where employers are looking to hire minority candidates. Christine Romans on a key to finding the bottom of the housing market. Yes, we want to know how to do that. And Suzanne Malveaux is talking about where your money is going.
Let's go ahead and begin with you, Suzanne, where talk is all about the budget this morning. Where exactly do we stand on it, Suzanne? A lot of people have lost track, quite frankly.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Absolutely right, Heidi. The president is meeting with the committee heads, Senate budget committee heads, House and Senate, and they are honestly going to be voting on this next week and then it goes into debate, full Senate in a couple of weeks or so.
But, essentially, there are some sticking points here. And that's what the president is going to be addressing. He's going to be talking about the cap and trade. This is his energy policy. It allows some companies to buy permits to emit greenhouse gases and exchange this.
This is something that is very controversial, because a lot of people look at that and say, look, that means for you and me and many other people, energy costs, electricity costs are going to go up. It's going to affect people's pocketbooks.
The administration coming back and saying, look, we're going to offset that with tax credits in the tune of $4,000. So that is one of the things that is hotly debated and it's one of the things that they're going to talk about here at the White House later this morning. Heidi?
COLLINS: OK. Yes, that should be interesting. The other thing that has been interesting for a lot of people, it's probably not even the right adjective for that, but the fallout from AIG and the bonuses. What's the latest now on all of that?
MALVEAUX: Well, there really is some concern here at the White House that this is really not going to be good for the president and for his agenda because they have to go back, not only convince Congress to pass this budget, but they've got to go back to the American people and perhaps ask for more bailout money for these companies and until the administration can prove they can hold companies like AIG accountable, that is likely not going to happen, Heidi.
COLLINS: Yes. Yes. All right. Well, we'll be watching closely. Suzanne Malveaux at the White House this morning, thank you.
We are expecting the president to fill us in on the budget talks around 9:40 Eastern this morning. Of course, we will bring you his comments live just as soon as they happen.
Getting everyone back on the road to rescue. A job fair in Maryland today is looking out for minority groups. Employers hoping to attract thousands of candidates. And joining us live from Landover, Maryland, Barbara Starr.
So, Barbara, how is it looking over there?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Heidi, it's a chilly morning out here in the nation's capital. This job fair doesn't open for over an hour, but you can see plenty of people already lined up. A lot of folks looking for work. What they expect here today is about 50 potential companies looking to fill about 1,600 positions.
But I want to introduce everybody to one woman here. This is Ovando Walker (ph), just one of the people we met in line a little while ago.
And Ovando, tell me what we were talking about a few minutes ago. Your situation, how long you've been unemployed, how tough it is out there.
UNIDENTIFIED FEMALE: Well, I've been looking for a job since September the 30th, which was my last day. I received a termination letter stating that my position was terminated.
STARR: And you were telling me that you've been looking since then? And...
UNIDENTIFIED FEMALE: Yes.
STARR: ... it's never taken this long?
UNIDENTIFIED FEMALE: Six months. It's been six months and it has never taken me this long to find work.
STARR: How tough is it out there to get the bills paid to keep...
UNIDENTIFIED FEMALE: It's really hard because it's putting a strain on my husband because he has to do overtime and I am getting unemployment, but it's not enough and I have a child to feed and mortgage to pay and bills to pay as well.
STARR: Yes. It's a story out there, it's tough for a whole lot of folks.
UNIDENTIFIED FEMALE: It is. It really is.
STARR: OK. Well, thank you. We wish you luck and thank you for sharing your story with us.
UNIDENTIFIED FEMALE: Thank you. Thank you.
STARR: And, Heidi, really, you know, that's the situation out here. You see that this is a job fair that's about diversity, looking for diversity in the workplace, but, Heidi, for people who are looking for work, with their most interested in is getting a job. Heidi?
COLLINS: Yes, no question. And remind me, you said 1,600 positions they are looking to fill?
STARR: That's what they are telling us. They have some government agencies out here. They have private sector companies. There's companies representing everything from blue collar type jobs to middle management jobs. They're going to be talking to folks all day long.
The organizers out here say they believe in the next several hours, they're going to have almost 10,000 people out here -- Heidi?
COLLINS: Wow. Wow. All right, Barbara, keep us posted. Thank you. From Landover, Maryland this morning.
New numbers from the Department of Labor suggests minority groups are more affected by the deepening recession. During February, the unemployment rate for African-Americans was 13.4 percent. Nearly 11 percent of Hispanics are unemployed and for whites unemployment is at 7.3 percent. Only seven percent of Asians don't have jobs.
Later this hour, our Brooke Baldwin goes in-depth on unemployment in the Hispanic community.
Your home is one of your biggest investments, of course. And last year many of you saw its value tumble. How much lower can they go, you ask? Well, we are on the "ROAD TO RESCUE" with some insight from CNN's Christine Romans.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice over): A huge bubble popped. The housing market crashed. How bad is it?
TIMOTHY GEITHNER, TREASURY SECRETARY: Millions have lost or at risk of losing their homes.
ROMANS: Seventy-four thousand homes repossessed by the bank last month alone. Eleven percent of homeowners are behind in their payments. The vast majority of you are paying your mortgage on time. But the value of your house is likely plunging.
ROBERT SHILLER, YALE UNIVERSITY: We've been going down now for almost three years.
ROMANS: According to Case-Shiller data in some cities home prices are down 40 percent. Millions of Americans owe more on their house than the home is even worth.
How bad will it get? Let's look to the charts. A home that was worth $100,000, inflation-adjusted in 1890 tumbled in the Great Depression to just $73,000. The equivalent home during the 1982 recession cost $107,000.
Even after the housing crash today, that very house is valued at $137,000. Even though prices are down, they're still well above the housing booms of the 1970s and 1980s. It means we may have a way to go to bottom out.
When will it turn around? Is good news finally on the horizon?
SHILLER: I'm not predicting but I'm saying it would be entirely within the realm of possibility that later this year we would see an improvement of that sort in the housing market.
(END VIDEOTAPE)
COLLINS: Christine Romans is joining us now from New York.
So, Christine, what signs should we be looking for to know that things are actually getting better in the housing market? We've been talking for a long time about credit and whether or not it's loosening up.
ROMANS: Well, Robert Shiller says look for home prices to stabilize and actually start to rise but not just here and there but in a wide different parts of the country, and to stay there for two, three months. That will be a sign that things are starting to turn around.
COLLINS: OK. Well, the government, obviously, just released its numbers on housing this morning. I'm afraid to ask. What do they tell us?
ROMANS: Do not be afraid to ask.
COLLINS: OK.
ROMANS: An unexpected jump in the month of February of new home construction. These are brand new homes.
COLLINS: Yes?
ROMANS: For some reason, Heidi, defying economist expect stations, new home construction jumped 22 percent last month. That's from February compared to January. Now compare it with last year, it's still half the pace of last year...
COLLINS: Yes...
ROMANS: ... but building permits perked up a little bit, too. It's just a little bit, Heidi, but it's something.
COLLINS: Well, I wondered, too. You may not have this information but it always makes me wonder if those are, you know, model homes or spec homes or if they are actually homes that are already bought and people are designing?
ROMANS: Well, we'll -- I'll find out exactly for you but we know the building permits is actually the best kind of indication. Those are permits to buy new homes. You get a permit to buy a house...
COLLINS: Right.
ROMANS: ... and someone is going to live in, those are up 3 percent.
COLLINS: OK. That is good news. All right, Christine...
ROMANS: And interest rates are low. Mortgage rates at 5.37 percent so for the people out there that maybe there is demand out there because interest race are so low for people to start a new house.
COLLINS: Yes. All right, Christine Romans, thank you.
ROMANS: Sure.
COLLINS: And on other news this morning, a bus crash in north central Mexico has killed at least 10 people from the U.S. and Canada. Mexican news media report the bus collided with a tractor-trailer yesterday. A total of 11 people were killed and 15 injured. The bus had departed from McAllen, Texas. None of the victims' names have been released.
Coping in a financial crisis, we're all about it today. Want to save 20,000 bucks by making a couple of changes? We'll tell you how.
Plus, looking for comfort food in tough times. Why this restaurant is doing so well?
(COMMERCIAL BREAK) COLLINS: Growing fears that we could slip into another Great Depression. A new CNN Opinion Research Poll asked people whether they think we could fall into another depression like the one in the 1930s, 45 percent think it could happen within the next year. That number is up seven points from December.
That much reason for optimism in another new poll, nearly half of those people surveyed think our economic conditions are very poor. Forty-one percent think conditions are somewhat poor and only 11 percent of people think we're doing well.
A lot of people don't have the money for a fancy dinner out right now. But some restaurants that serve your favorites are actually thriving in all of this.
Our Allan Chernoff is live in Philadelphia now with one owner who has a theory on why his business is booming.
So, Allan, why is it that a restaurant would be thriving during this recession?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Heidi, because in a recession, there are certain things that you will not do without. And for people in Philadelphia, that means a cheesesteak.
COLLINS: Yes.
CHERNOFF: And this is such an institution over here. We're over here at Pat's and at the grill is Frank Olivieri who's been running this place for decades. It's been in the family since 1930.
Frank, why is it you think that business you're saying is still OK in this recession?
FRANK OLIVIERI JR., OWNER, PAT'S KING OF STEAKS: Well, people come back to comfort food when they don't have a lot of money. So your high-end restaurants, whether like seven or eight courses, it doesn't work that way. Families need to scale down, pay their bills and they come to places like this place, Pat's, where they go to diners where they did get a good meal at a good price.
CHERNOFF: And the price now is $7.50 for a cheesesteak here. It's been at $7.50, right, for over a year?
OLIVIERI: Yes, absolutely. When we have some price increases in our product we don't just pass off to the consumers. It's not fair. So we take the hit because our customers is like family so.
CHERNOFF: And Heidi, of course, when you come here, you have to know how to order a cheesesteak. That's...
COLLINS: OK.
CHERNOFF: That's part of the whole institution here. You need to know. So it's cheese with, meaning with onions, or cheese without.
COLLINS: Got it.
CHERNOFF: And if you really want to make it tough, because the cheese generally is Chez Whiz. So if you really want to be good, you can say whiz with or whiz without.
COLLINS: OK.
CHERNOFF: That's South Philly for you.
COLLINS: Wow. It sounds completely natural coming from you.
(LAUGHTER)
COLLINS: That's right, Allan. Love it. All right, well, very interesting. Yes, and I bet your buddy over there says no more seven or eight course meals. Just get seven or eight cheesesteaks, huh?
Allan Chernoff, we sure do appreciate it. We can almost smell it from here. Thank you.
CHERNOFF: Sounds good.
COLLINS: Yes. It's not always sunny in Philadelphia when it comes to the economy, though. The "Philadelphia Enquirer" says the city's unemployment rate is 8.9 percent, that's higher than the national rate but since June the city has had a plan in place to stop foreclosures that lets judges step in to modify loans.
President Obama borrowed that idea for his own housing plan.
A Milwaukee man is thinking big in his attempt to land a job. Mark Hauer bought ad space on a billboard. The father of three children says he hasn't worked in six months. The billboard has only been up a few days but Hauer has already gotten responses on his Web site.
(BEGIN VIDEO CLIP)
MARK HAUER, PLACARD BILLBOARD AD: I've gotten three solid interview responses with a potential fourth coming up this week. But I also have had opportunities where people have contacted me from afar just to say, you know, wow, I'm inspired by your story.
(END VIDEO CLIP)
COLLINS: Hauer does have experience in sales but his last job was assisting U.S. troops in Iraq for a contractor in a detainee camp.
Well, you've put off going to the doctor so save money but it could wind up costing you more and not just in the wallet. A cautionary tale for the economic crisis.
Our Elizabeth Cohen working on it for us right now.
(COMMERCIAL BREAK) COLLINS: We are helping you get a handle on the money crisis this week. And we have good news to report. So listen to this. President Obama's $787 billion recovery plan is making it possible for some people to go back to work. The money helped the San Bernardino National Forest hire about 20 contract workers who were out of work. They will do trail work, clear brush and help with land surveys.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: It's hard to find a job. It is. Anywhere you go, you just get rejected or denied. I was so excited. I'm so happy that, you know, I have a job. I love the outdoors. I love nature. I love working with people.
(END VIDEO CLIP)
COLLINS: A spokeswoman from the San Bernardino National Forest says the first round of forest projects funded by the recovery plan will create about 1,500 jobs nationally.
In these tough times, a lot of people are skipping medical attention because of high health care costs. Well, that is from a new consumer health survey.
CNN's senior medical correspondent Elizabeth Cohen is here now to tell us why this cutting back could actually cost you more in the long run. I mean you often it seems like people are skipping medical care because they really can't afford it at this point.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right. Exactly. And it might cost them later on but they're really in a pickle, how do they pay for the things that they need to get?
These are new numbers out of a survey that CNN had an exclusive look at today. Take a look at this number. It's very telling. One out of 10 people in this survey said they did not seek medical care recently when they were sick or injured due to the high costs. This was done by the Deloitte LLC which has health care clients.
Now it's important to note this survey, Heidi, was done in October. Many people would say, of course, things have gotten a lot worse since then. Let's take a look. For each one point increase in the unemployment rate, 1.1 million more people become uninsured. So in other words, since October, it would appear that millions more people have become uninsured...
COLLINS: Yes.
COHEN: ... and probably can't afford those kinds of services.
COLLINS: Right. Well, I wonder it may not say in this report, but what they're not being treated for. I mean are we talking about cuts, are we talking about colds, the flu or are we talking about, you know, big things that really could become very, very serious later?
COHEN: We're talking about a wide variety of things. We're talking about, you wake up and you just don't feel well. Ordinarily you go to the doctor maybe...
COLLINS: Yes.
COHEN: ... now you don't because you don't have a doctor to go to because you're not insured. We're talking about big things like not getting a colonoscopy that you're supposed to get, as this screening all people over 50 are supposed to get them.
COLLINS: Right. Right.
COHEN: Skipping that because you can't pay for it.
COLLINS: Yes.
COHEN: We're talking about all sorts of things.
COLLINS: Yes. Wow. All right, well, listen, I know you're taking some e-mails today from our viewers. You want their questions.
COHEN: Right. We do want questions because we know a lot of people right now are having a terrible time affording the health care that they need. So if you have questions about how to get health care on a budget, CNNNewsroom@CNN.com. Send us your questions. We will be answering them all day.
COLLINS: A health care 911.
COHEN: That's exactly what it is.
COLLINS: All right, perfect. Elizabeth, thanks. We'll look forward to that.
COHEN: Thanks.
COLLINS: So if you are looking to save some money, how about $20,000 a year? Sound good? The ultimate cheapskate got a five-step plan.
And we are just minutes away from the opening bell today, too. While we wait, pardon me, let's get to Clark Howard with encouraging investment news for some people.
(BEGIN VIDEO CLIP)
CLARK HOWARD, HLN MONEY EXPERT: OK. I got a tip that's a dividing line kind of thing. If you are under age 40, all the problems in the stock market in the investment community have created a once-in-a-lifetime opportunity for you to make big bucks over the rest of your lifetime.
Well, if you're older, you're a baby boomer, you need some antacid because it's going to be tough for us to recover the losses that were suffered over the last few years in the market.
But for people under age 40, let me tell you why this is just big-time great stuff. See, stock values have declined so much that every dollar you put in buys you so much more capitalism. As you buy in -- and I'd like you to buy well spread out, one of my favorites, a total stock market index fund, you know, little slices and dices of all of American capitalism. When the economy does recover, and I say when, you will be in a position to make a ton through the year.
I'm Clark Howard. For more information about your wallet, go to the CNN.com/ClarkHoward.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: We're on the "ROAD TO RESCUE" this week. It's a CNN survival guide to help you navigate through the current economic storm. We're trying to find ways to save your money, your homes, and your jobs, too. Or at least help you find work if you have been laid off.
And happening now. There's talk about the budget today at the White House. We're expecting the president to fill us in on the budget around 9:40 Eastern this morning. We, of course, will bring you his comments live just as soon as he begins them.
Frugal can be fun. That's what Jeff Yeager thinks. He is the author of "The Ultimate Cheapskate's Road Map to True Riches, A Practical and Fun Guide to Enjoying Life More by Spending Less." It's a heck of a title, Jeff.
He says you can save up to $20,000 by doing five things. And Jeff is joining us now from Washington to tell us how.
All right, we are very interested in this. But I want to begin by your story, first. How did you become a cheapskate, if you will?
JEFF YEAGER, AUTHOR OF "THE ULTIMATE CHEAPSKATES": Well, you know, I'm about 50 years old. I grew up in the Midwest and back then, spending money was really a last resort. We led sort of a simpler life and I think, in a lot of ways, happier, Heidi.
And that's really what I write about is maybe there's a silver lining to this economic downturn. Maybe we can simplify our lives, be content with less and actually enjoy life more.
COLLINS: All right. As a fellow Midwestern I share your cheapskate thoughts already.
YEAGER: You're a -- you re a sister of the cheaphood, I knew it, Heidi.
(LAUGHTER)
COLLINS: Well, hey, I do wonder, though, as you've gone through this process, if you will, if you become the ultimate cheapskate, are you noticing now a lot more people kind of joining your club? YEAGER: You know, they are. And again, I don't really talk about a life of sacrifice. I talk about a life of choices and how, in many instances, less can be more. You know in this economy, we hear a lot of stories about how to get more stuff for 20 percent less.
COLLINS: Yes.
YEAGER: I'm not saying that's unimportant. But maybe we're missing the real point. The secret to the time is being content with less.
COLLINS: OK. Wow. I like the way you talk. All right, so let's get to these five things because that's what everybody really wants to hear about. Specifically what they can do. And again, this is, in order to save $20,000 to $30,000 a year, really?
YEAGER: If these things apply to your family.
COLLINS: OK.
YEAGER: And they are -- let me say in advance, these are some fairly radical changes but, again, it's probably not about sacrifice. It's about changing your life and maybe in the end being happier.
COLLINS: OK. Well, very good. First thing you say, give up your cell phone?
YEAGER: Yes, give up the cellulite life. I'll use my -- I will use myself as a poster child. But you know, I have a fairly successful career, a very happy life. I've never owned a cell phone and nothing awful has ever happened.
COLLINS: Now wait a minute. I got to push back for a second because a lot of people would tell you, you can be happier with a cell phone because you're out of the office and you're with your family more, still able to do business.
YEAGER: We can debate all that, but 10 or 15 years ago none of us had it and nothing awful happened. It seemed to be we work really quite happy. Average cell phone plan costs about $100 a month. There's an interesting article in the recent "Christian Science Monitor" that shows the actual cost of using a cell phone could be more than $3.00 a minute by the time you factor in unused minutes and so on.
COLLINS: Wow. All right, give up a second or third car as we listen to the opening bell. Very appropriate that we are watching that and having our ultimate cheapskate on at the same time.
You say you might not need that second car, and certainly not the third?
YEAGER: Americans owe about two and a half cars per family. Can you give up one? The auto club says it costs about on average a dollar a mile to drive a car by the time you factor in the cost of the car, depreciation, and so on. So you could easily be talking about $5,000 to $10,000 savings by sharing the remaining car that you have, using public transportation and so on.
COLLINS: OK. Give up meals prepared outside your home. Quit going out for meals no matter what? Quit salad or a fancy, fancy dinner?
YEAGER: More than 40 percent of the average American family household food budget is spent on meals prepared outside the home. You can cut that by 80 percent by cooking those same meals at home, and, you know, maybe recapture some family time around the dinner table.
COLLINS: Yes. And there would be people who would argue about that, too. Because our culture is just so socially-oriented to food. Every dinner, every business meeting, every month...
YEAGER: We're too busy to cook, because we're too busy earning the money to spend it by dining out.
COLLINS: Yes. Yes. All right. You also say quit shopping for new clothes.
YEAGER: Yes. Here, again, it's what's good for your pocketbook and good for the environment. Less than two percent of clothes that we throw away in America are worn out. The average family spends about $1,800 on clothing. Certainly, most of us have more than enough stuff in our closet that we could go six months, even a year without buying new clothes.
COLLINS: Yes. And then maybe just get it tailored or updated or something. Accessorize. I don't know.
YEAGER: And again, less than two percent of the clothes we threw away are worn out. That's a waste of the earth's resources.
COLLINS: And finally give up college room and board? You want the kids to live at home forever?
YEAGER: This is a big one, you know? Back in my day, if you have a child in school, consider having them live at home while they go to school. It's been a huge generational shift. Back in my days, lots of people, including myself lived at home when we went to college. Therefore, we didn't take out any college student loans.
Now, of course, most kids go away to school, take out student loans. When they graduate, what do they do? They move back home with mom and dad. Let's skip the money step.
COLLINS: Skip the money step. We got it. They also ask you to pay off their loans, by the way, too. I tried to do that with my family.
Anyway, Jeff Yeager, we sure do love your tips. Some great stuff there. The five ways where you can save $20,000 to $30,000 a year. Again, he is the ultimate cheapskate out of Washington, D.C. this morning.
YEAGER: Stay cheap, Heidi! Stay cheap!
COLLINS: OK. All good things must come to an end. And yesterday, stocks snapped a four-day winning streak after a strong rally faded late in the session. I can barely even say it.
For a look at what to expect today, let's go to Susan Lisovicz at the New York Stock Exchange. We had such high, high hopes, and then it just didn't quite happen.
SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. But we got the luck of the Irish in the first two minutes of trading. I think the ultimate cheapskate would like the prices on Wall Street, because, boy, they have really come down pretty low.
You know, Heidi, we got some surprisingly upbeat news from the housing sector this morning. The number of new housing projects unexpectedly jumped 22 percent last month. Most of that from new apartment buildings. Meanwhile, applications for building permits, a sign of future activity rose three percent. So these numbers offer a glimmer of hope, but keep in mind that compared to last year, new home construction is still down nearly 50 percent.
The Federal Reserve, well, you know, we heard Ben Bernanke the other day. He's busy again. He begins a two-day policy meeting with other fed governors today. Interest rates are currently near zero percent so Wall Street will be looking for other ways, the fed is planning...
COLLINS: We want them lower -- lower than zero!
LISOVICZ: That's right. It just gives stuff away. Getting close to it.
In the meantime, more companies are cutting back, Heidi. Aluminum giant, Alcoa, is slashing its dividends by more than 80 percent. Alcoa is also selling stock and debt to reduce costs. Over at GM, well, the automaker is planning to reel in buyers with a fresh round of discounts and promotions. That's according to the "Financial Times." This comes just weeks after GM posted a 53 percent drop in February sales. So enticing the buyers. Checking the early numbers, there's some buying, Miss Collins!
COLLINS: All right!
LISOVICZ: The Dow is up 19 points or 0.25 percent. The NASDAQ is up 0.75 percent. I must tell you, ringing the closing bell today, Bushmills Irish Whiskey Master Distiller and Guinness Brewmasters. I have to tell you their names -- Fergal Murray and Colum Egan. They say --
COLLINS: That's kind of Irish.
LISOVICZ: Well, that's kind of Irish. One point eight billion pints of Guinness are sold every year, and many of them are consumed today. COLLINS: Married into that Irish family, and I am not surprised. All right, Susan Lisovicz, loving the green. Happy St. Patrick's Day. Thank you.
LISOVICZ: Thank you.
COLLINS: We all need a little help in these tough economic times, so we're trying some new things right here this week. It's our "Deal of the Day." A way for you to stretch your dollars just a little bit further. Today, we have some fun activities you can do with the kids.
Did you know an annual membership at your local zoo can also get you discounts at other zoos across the country? There are a total of 140 zoos working together to save you money on admissions. I don't know why that makes me crack up so hard when we have the money. A little sound effect. Many have half off or free entry if you have a membership somewhere else. For a complete list of the zoos, check out aza.org. You see them at the bottom of your screen there.
There's a similar deal, too, in place if you prefer museums instead. Hundreds of museums across the country are part of the North American Reciprocal Museum Program. That's a big name, but what it means is you can use their membership cards to get into other museums in 44 states and the District of Columbia.
I was hoping for one more little cash register sound. What good deals do you know about that might help others across the country? Well, our Josh Levs is looking at all of this. This sort of making a list for us, Josh.
Good morning to you.
JOSH LEVS, CNN CORRESPONDENT: It is a funny sound. I like that thing. I tell you what while I talk, feel free to do it at any time, guys.
COLLINS: OK, perfect.
LEVS: All right. Take a look at this, Heidi. So, yes, we're inviting people to write in. You know, I'm going to show you a few online right now with cnn.com/travel. A lot of people don't realize what's there.
If you're one of the lucky people who can maybe even go to Hawaii, they talk with you how to save money and really all sorts of trips. The specifics here that cruises all over the world. You can save a lot of money right now - cnn.com/travel.
Also here, they talk about if you're interested in going to Broadway, you can save a lot of money on those right now. Well, here's the thing. We know that a lot of you know some really good discounts. The kinds of things Heidi I was talking about just now. And we want to invite you to send them in.
So we have our Facebook and email question for you right here. We're calling it your "Deal of the Day." You can Facebook it on my page, Josh Levs CNN. You can e-mail it to us at cnnnewsroom@cnn.com. We're going to keep chasing this down all week. And let me just emphasize, it's not an opportunity to advertise your store or your favorite store.
COLLINS: Yes.
LEVS: Heidi, what you were just talking about. Discounts that can apply nationwide like with me. You know, I use my AAA card in all sorts of stuff. And I'm going to cover the number. But that's a good example there. Every time I'm at a restaurant, I showed the card. I might save 10 percent, 15 percent. Something that applies everywhere, nationally, that might help other people, not one specific store.
COLLINS: You show your CNN card, too, and they just let you write in? Don't they, Josh?
LEVS: (INAUDIBLE) about that part, not!
COLLINS: All right, Josh, great. Thank you. Because we really want to let people know what is available to them out there. We sure do appreciate that. We'll check back later on.
LEVS: You got it. Thanks, Heidi.
COLLINS: In today's "ROAD TO RESCUE," we take you live to a tiny state with big problems.
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STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Right here on Providence, I can show you brand new houses that are right there commingling with urban decay. We'll show you all about it when we come back.
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COLLINS: We are waiting for President Obama to update us on how the government plans to spend your money in the coming fiscal year. It's all about the budget. His comments are expected any moment now, and of course, we will bring them to you when they happen live. It's scheduled for 9:40.
Rhode Island is suffering from one of the highest foreclosure rates in the country. Statewide last month that had one foreclosure filings for every 1,102 homes. Within the state, foreclosure rates range from Providence County, one in every 860 homes to Newport County, one in 3,720 homes. Lots of numbers there.
But CNN's Stephanie Elam tells us at least one local community is trying to turn it around.
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ELAM (voice-over): Here in tiny Rhode Island, there's a big housing problem.
RICHARD GODFREY, EXECUTIVE DIRECTOR, RHODE ISLAND HOUSING: We've seen foreclosures steadily rise really since mid-2007.
ELAM: One of the neighborhoods in the state capital is doing something about it. Councilman Michael Solomon grew up in the Olneyville section of Providence. Solomon says the neighborhood began to decline in the late '80s, but over the last ten years, several nonprofits began working together to find solutions.
(on camera): What is making it so much better now?
MICHAEL SOLOMON, OLNEYVILLE BUSINESS OWNER: I think the fact that families that are living here, the businesses that are here, are all getting together and working on a plan where we could have affordable housing, where we can track businesses, where people could live, work, shop, play, all the things that make a neighborhood a stable neighborhood.
ELAM (voice-over): Olneyville is focused on providing more recreation for families and safer streets. Here brand new houses stand shoulder to shoulder with urban decay, and a leading local group, Olneyville Housing Corporation is making homes more affordable.
JORGE BURGOS, OLNEYVILLE HOME BUYER: I never thought we were going to be able to afford this house.
ELAM: Meet Jorge Burgos and Casilda Pelero (ph), a young couple expecting twins. They just bought this house, thanks to a community development agency. The couple doesn't worry that some of the homes on their block are still boarded up, neglected and empty.
(on camera): By the time your sons are 10, what do you think the neighborhood will be like? How do you think that will affect their development?
BURGOS: It's going to be positive. It's going to be very positive for our kids. The neighborhood is looking good, and hopefully, ten years from now, 20 years from now, everything will be better.
ELAM (voice-over): A better place to raise children, and the foundation of a stronger community.
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COLLINS: Stephanie Elam joining us now live with a little bit more on this.
So, Stephanie, you can't change a community just by building new houses, of course. What else are they doing in this neighborhood?
ELAM: And that's the key to what they are saying is the successful idea behind renovating this community. Is that you have to have safe streets, you've got to have places for families to go, recreation. So they are rehabilitating the parks as well where drug dealers used to be rampant. There are now places where kids can go and enjoy them -- enjoy the swings, play at the tan bar -- that's the word I'm looking for -- and then they can now go ahead and enjoy that, and their parents aren't worried about that. But for these families, they also need good businesses. So they need to have restaurants. They need to have grocery stores.
COLLINS: Sure.
ELAM: And so, they are looking to attract businesses as well.
COLLINS: OK. Well, how bad exactly is the foreclosure crisis right there?
ELAM: It's pretty bad. They're saying, in this section of Providence called Olneyville, that there are more than 100 homes are in foreclosure. And if you look at a map of Rhode Island, and if you were to have little dot for each house that was in foreclosure, most of them are actually in Providence. So this city is being hit the hardest out of the entire state. And it's not hard to find.
If you take a look right here, the house next to me, you can see that it is boarded up. It's got a little graffiti on it. And then right down next to it, exact same house, same design but brand new. So this is how they are trying to rehabilitate the neighborhood one house at a time here.
COLLINS: Yes. Boy, that's definitely two opposite ends of the spectrum, isn't it? Is Rhode Island as a state doing anything to help people who are going through foreclosure?
ELAM: They are. And they're saying that they had an issue really of affordability in Rhode Island. There's wasn't a mortgage crisis as much. So back in 2007, they've started a program called Rhode Island Housing, and it's just to get people counseling, help people stay out of foreclosure so that they -- people feel like they're getting close to being on the brink there. They can go to this organization to help them find ways to stay in their home. That's the other thing they're trying to do. And get people who own these homes to actually live in them. Because they said absentee landlords actually led to some of the blight earlier before.
COLLINS: Got it. All right, our Stephanie Elam. We sure do appreciate that.
And also, we want to let you know what's going on in foreclosure crisis in Rhode Island by looking at this map. Here's a look at three states, in fact. The size of Rhode Island with the highest foreclosure rates right now. Nevada has the nation's highest rate in the nation. It's followed by Arizona, and then California.
In fact, all this week, we are on the "ROAD TO RESCUE." Helping you survive the money meltdown. And one of the things that really surprised us is a poll suggesting nearly 7 in 10 homeowners delinquent on their mortgage payments aren't aware of the help that's available to them. We had our personal finance editor Gerri Willis dig into that. And she's joining us now. That's pretty amazing. Seven to 10 people not really sure, you know, what can be done for them. How do they avoid foreclosure? First off, what's the first thing you do?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, avoiding foreclosure is all about understanding the process. What is the timeline? So let's talk about that to begin with.
First of all, you should know it varies by state. But if you're in one of the many states where these go through the courts, then here is what happens. Once you miss a payment, your lender is likely to report that to the credit bureaus, your credit score takes a hit and continues to every time you miss a payment.
Now after three months of this, your lender will probably file a letter of intent to foreclose or notice of delinquency. You will get that via certified mail. This letter states your home will soon go into foreclosure unless you become current on payments. And if you don't, two months later your then, your lender files a former foreclosure lawsuit.
Now the deputy, the local sheriff were at your front door. This is a legal process, all headed towards losing your home. Now you should know it can take months or up to a year for your house to actually be sold. In some states like you're in Georgia, Heidi, this can all happen in about a month.
COLLINS: Wow.
WILLIS: They can go very, very fast indeed.
COLLINS: So what's the 15 months then? You said that's just on average? I mean, you don't have 15 months until the sheriff comes to the door?
WILLIS: Well, no, wait up. Georgia is the exception.
COLLINS: OK.
WILLIS: Georgia is one of the few states in the nation where this thing is not -- does not go through the courts. I've been to the auctions on the courthouse steps there...
COLLINS: Yes.
WILLIS: ...where they happen. Look at the split. But it's unusual. Typically, it goes through the courts and it really depends on what state you're in. In New York State, it can be years before you're thrown out of your house. In other states, it can take 15 months, it can take 12 months, it can take 6 months so you really need to talk to your attorney.
And I got to tell you, you know, even some times very late in the game, you can buy your house back. But the reality is you want to work much faster than that - Heidi. COLLINS: Yes, definitely. That's what I was going to say. Is there anything you can do to reverse the course? I mean, modifying their mortgages would be something that I'm sure a lot of people would like to be able to do?
LISOVICZ: Absolutely. Well, that's the first thing to do. Make a call to your lender, and see if you can get a new loan. A modification of your existing loans is a change in loan terms to bring down your monthly payment. You might be able to skip a few payments. You make that loan extended, maybe for another ten years so that your payments go down.
Now, the government, of course, has outlined two programs designed to help homeowners. And they call it the homeowner affordability and stability plan. One allows current borrowers to re- fi into new fixed rate loans. The other one helps people who are really in trouble here. It gives loan modification to delinquent borrowers. There's more in the government's Web site, financialstability.gov.
Plus, the bottom line here is you may just have to sell your home, get out from under it if you cannot afford the mortgage. I know a lot of people they want to stay, they don't want to give up on the dream, but the reality is so many people got in over their head, and the best thing to do maybe to get out from under that loan.
COLLINS: Yes, if that's even possible. The selling part is obviously difficult right now, too. So, great...
WILLIS: That's right.
COLLINS: ...great advice. We sure do appreciate it. Our personal finance editor Gerri Willis.
WILLIS: My pleasure.
COLLINS: They came to the U.S. with nothing, and now some are having to start from scratch all over again. Latinos struggle to survive in this economy.
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COLLINS: The latest jobless numbers show Latinos are taking a big hit in this recession. But for many in that community dealing with tough times is nothing new.
Here now CNN's Brooke Baldwin.
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BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): It's lunch time at Coco Loco, and the orders keep coming in.
JULIO GUZMAN, COCO LOCO OWNER: My sales, they have been down for the past five months versus last year. BALDWIN: This recession has forced owner, Julio Guzman, to get creative between online advertising, extra catering, and his loyal customers he keeps Coco Loco in the black. For Guzman and thousands of other Latinos, living on a budget is simply a way of life.
GUZMAN: We come here with nothing. You know, we have to start. You know, we don't have (INAUDIBLE) house for the families or any wealth. We have to start from scratch.
BALDWIN: It's the scene all too familiar to the Latino community.
AURELIO ARIZMENDI, LA PLAZA 102.3: They come to America with nothing. With zero. Nothing. Zip. And they start over again. This is really hard. BALDWIN: Aurelio Arizmendi is a disc jockey at a Spanish language radio station in Atlanta.
Every morning, Arizmendi takes calls from listeners, many of whom are quite concerned about the economy.
ARIZMENDI: People who did used to have their own business, they're broke now. They are losing their houses, the cars, the trucks. Everything.
BALDWIN: This caller works in construction, and says jobs are drying up, because people aren't building.
This caller says he's about to lose his house, and is afraid if that happens, he'll lose his family, as well. According to the U.S. bureau of labor statistics, the fastest-growing segment of the U.S. hit hard. Unemployment in February double digits at 10.9 percent. That is the biggest jump from the previous month compared to every other group surveyed.
(on camera): We have lived through enough recession.
BALDWIN: But those numbers don't worry Julio Guzman. He grew up in Cuba, under Fidel Castro's regime.
GUZMAN: Shortage of everything, so you know we were creative back then. You know, we learned to survive, because, you know, if you try, you'll make it.
BALDWIN: And making it for Guzman is the American dream.
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COLLINS: And Brooke Baldwin joining me now on the set.
Boy, what a story. Because, you know, we actually kind of mentioned this last hour.
BALDWIN: Yes.
COLLINS: Unemployment numbers for Latinos, it's the highest in a very long time. Right now, that number is sitting at 10.9 percent. What do we actually attribute specifically to that number and this community?
BALDWIN: Right. It's a big deal, because it is double digits and it's the biggest jump from January to February. And the question is why. And the simple answer, two words, really, it's the housing crisis.
And we talk about the ripple effect of that. But the fact is, one of the directors from the economic policy institution is saying, Hispanics are overrepresented in the construction sector. So it's cyclical. Think about it. People aren't building, and that means they were hit particularly hard. People don't build, you can't do construction, you can't paint a house, you can't landscape a house, that's what we are hearing, a lot of those callers in that radio show, La Rosa (ph) 102.3. So they're just sort of stuck right now, and hoping that we bounce back and hoping that people will build.
COLLINS: Yes. Boy, everybody is helping that.
BALDWIN: I know. Fingers cross.
COLLINS: All right. Yes. Brooke Baldwin. All right, appreciate that. Thank you.
BALDWIN: Thanks.
COLLINS: Our "ROAD TO RESCUE" runs on in our next hour. They call themselves the cheapest family in America. And to prove it, they paid off their home in nine years on $35,000 a year.
