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House Vote on Taxing Bonuses; President Obama on Bonus Controversy; Hart Times & Hope in Ohio; FedEx Announces Cutbacks; UAW President Won't Run Again; Auto Supplier Help; Caring Beyond the Classroom
Aired March 19, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: It is Thursday, March 19th, and here are some of the stories that are making news right here in the CNN NEWSROOM.
Congress moves to quickly get back bonus bucks from AIG workers. A vote on a big, fat tax is expected today. We'll have that for you.
More than a half-million Buckeyes are looking for work today. Our guest explains why the financial crisis is beating up on Ohioans.
And it is a creative way to revive a rundown neighborhood. Artists snap up foreclosure bargains in Detroit.
Good morning, everyone. I'm Don Lemon. Tony Harris is off.
And you are in the CNN NEWSROOM.
Well, you know, CNN is looking out for your tax dollars this morning. A busy morning ahead for you right here in the NEWSROOM. The "ROAD TO RESCUE" runs through the U.S. Capitol today. We've got our eyes on two important hearings and a key vote for you -- the FDIC chairman, Sheila Bair, on new regulations for the nation's banks, and the federal bailout program under scrutiny at a House hearing.
The House is our starting point, though, and lawmakers plan a vote today on a bill that would snatch bonuses from the hands of AIG workers.
Let's talk now with CNN's Brianna Keilar. She's at the Capitol.
And Brianna, how would this bill get that bonus money back?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: What they're looking to do, Don, is pass a big tax, a 90 percent tax on bonuses given to individuals. This would be for people who make $250,000 or more per year, and they would have to work for companies that are getting $5 billion or more in these bailout funds. Obviously, Don, AIG would fall under that umbrella.
LEMON: All right. Can you tax it, though, retroactively under the Constitution? Is that possible?
KEILAR: This is one of the issues being raised by legal experts who say, no, you can't, because the Constitution does say that you can't pass a law after the fact. It also says something else, as well, though, Don. It says that you can't single out an individual or a group of individuals. And so if you're someone who sees your bonus disappear because Congress taxes it back, there's a concern that they could sue, and have a legal leg to stand on, on at least one or two different constitutional grounds -- Don.
LEMON: Some of the most outspoken people on this have been Republicans. What are they saying today, Brianna?
KEILAR: We're seeing a lot of criticism, especially from House Republicans. They're hitting not only congressional Democrats on this, but also hitting Treasury Secretary Timothy Geithner, as well as President Obama. This includes Mike Pence. He's a member of the leadership of House Republicans.
Here's what he said a short time ago.
(BEGIN VIDEO CLIP)
REP. MIKE PENCE (R), INDIANA: The Democrat plan to enact a 90- percent tax on AIG employees is just a cynical attempt to divert attention away from the truth, that Democrats in Congress and this administration made these bonus payments possible.
(END VIDEO CLIP)
KEILAR: So Republicans clearly trying to make this a political liability for Democrats, who are scrambling to try to show outraged Americans that they are doing something about it, and doing something quickly -- Don.
LEMON: All right. CNN's Brianna Keilar.
Brianna, we appreciate it.
Meantime, AIG's bonus bonanza took place with the blessing of, you guessed it, the United States Congress. Yes, the very people who are now scrambling to get that money back for us.
CNN Senior Congressional Correspondent Dana Bash with how a mysterious amendment allowed all of this to happen.
(BEGIN VIDEOTAPE)
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT (voice-over): All this outrage about AIG's bonuses from the White House...
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: People have a right to be angry. I'm angry.
BASH: ... to Capitol Hill.
SEN. MAX BAUCUS (D), FINANCE COMMITTEE CHAIRMAN: The country is angry. Individual Americans are angry. I am angry. BASH: Yet, Congress passed the bill last month that the president signed into law allowing AIG to keep its bonuses, and for days, no one would 'fess up about who was responsible for a mysterious loophole that let that happen. But CNN solved the mystery. It was the Obama Treasury Department and Senator Chris Dodd.
Here's what happened.
Last month's massive stimulus bill included a Dodd measure to strictly limit executive bonuses, but slipped inside at the last minute an exemption for bonuses agreed to on or before February 11th, 2009. That allowed AIG to go ahead with its controversial bonuses. On Tuesday, Dodd adamantly denied to CNN that he was responsible for the exemption.
SEN. CHRIS DODD (D), CHAIRMAN, BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE: When I left the Senate it was not in there. So when I wrote the language there was no such language like that. I can't point a finger at someone who offered the change at all.
BASH: But the next day, an official at the Treasury Department flatly contradicted Dodd, telling CNN his office did know and that it was Obama Treasury officials who pressed him to make the change, because they worried that his measure to limit executive bonuses in preexisting contracts like AIG's would face a legal challenge.
CNN took that information to Dodd. He reversed course and admitted he did make the change.
(on camera): You did agree to modify this to put that clause in.
DODD: The alternative was losing in my view the entire section on executive excessive compensation. Given the choice, this is not an uncommon occurrence here, I agreed to a modification in the legislation reluctantly. I wasn't negotiating with myself here. I wasn't changing my own amendment. I was changing the amendment because others were insisting upon it.
BASH (voice-over): Dodd insisted he made the change at the behest of the administration, but admitted he was wrong in initially denying his role.
(on camera): You were very adamant yesterday, very adamant that you didn't know how this changed about in there. And now you are saying that your staff (ph) did work with the administration.
DODD: Well, going back and looking. And obviously, I apologize.
(END VIDEOTAPE)
LEMON: CNN's Dana Bash is joining us now from Capitol Hill.
Dana, it was a very piece of television yesterday, watching that, and watching you question him. And uncomfortable, really, for many people, because, you know, you did put him on the spot, and as well you should have. Why the back and forth? Why does he keep clarifying? And why did he initially say, you know, I didn't have anything to do with it, and then he keeps clarifying after that?
BASH: That is really still a part of the mystery, Don. I don't know the answer to that, because, you know, the argument that Senator Dodd was making yesterday was, he was trying to say, wait a minute, I tried to be a good guy here. It was my provision. If not for me, there would be nothing at all addressing executive pay or bonuses that is a law of the land.
But because, you know, we had this back-and-forth, because there was this mystery about who put this clause in, and he denied it one day and admitted it the next day, the story did become about him, because it sort of took on a life of its own. So that really is an unanswered question.
He is trying to make point that, again, that he tried to do the right thing. But now I think sort of feeling like no good deed goes unpunished.
LEMON: Yes, he's saying that when he left, that the exact language, it wasn't the same as before he left. What is he saying today? Have you been able to talk to him?
BASH: No. I mean, now he's basically saying what he said yesterday, is that he is admitting that he was involved, and he did agree to change the language. And again, what the big picture of what this meant was that what -- what he and other members of Congress were trying to do was limit executive pay and limit bonuses. And by changing it, we basically have what we are seeing now, all of the outrage about bonuses for companies like AIG that already had preexisting contracts.
It's very, very interesting. And you were just talking about this with Brianna.
What Congress is trying to do is fix something that they couldn't fix before. And another really interesting dynamic that's going on here, Don, is that more and more, we are hearing from Democrats that they are starting to blame the administration. We heard it loud and career from Chris Dodd yesterday, saying, wait a minute, I didn't want to change this, but the administration wanted us to.
I spoke to a senior Democratic aide about this just a short while ago, and he said, look, we, on Capitol Hill, we have tried to rein in these proposals, but both administrations, blaming both Bush and the Obama administrations, they have tried to stop us, citing concerns about it. Because they say what the administration has been arguing is, if you limit executive pay, then it is going to scare off some people who really can do their jobs on Wall Street. Now it's come back to bite them.
LEMON: And Dana, I'm glad you brought that up, because we're going to talk about the administration now. I'm going to get to Dan Lothian in just a little bit, who is standing by at the White House. But, you know, hey, nice job yesterday, because we were trying to figuring it out earlier in the day, what happened, how did this loophole get in?
Everybody saying, I had nothing to do with it, and Dana Bash found out for us.
Dana, we appreciate your reporting.
BASH: Thanks, Don.
LEMON: We'll get back to you within the coming hours here on CNN.
So let's talk about the administration now. What is the Obama administration saying about the AIG bonus loophole? The president has not commented on that specifically, but at a town hall meeting in California, he said he'll take responsibility for fixing the problem.
(BEGIN VIDEO CLIP)
OBAMA: We didn't draft these contracts. We've got a lot on our plate. But it is appropriate when you're in charge to make sure that stuff doesn't happen like this. So we're going to do everything we can to fix it.
So for everybody in Washington who is busy scrambling, trying to figure out how to blame somebody else, just go ahead and talk to me, because it's my job to make sure that we fix these messes, even if I don't make them.
(END VIDEO CLIP)
LEMON: White House Correspondent Dan Lothian joins us now from Washington.
Dan, it is interesting that he is taking responsibility for it, saying the buck stops with him, but still, we haven't really gotten to the bottom of it. We know Christopher Dodd had something to do with it, but still haven't gotten to the bottom of it. What have you found out?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. And, you know, you heard the president yesterday out on the White House lawn, before he went out to California, he made that comments about the buck stopping with him when it comes to this AIG mess. But essentially what senior White House administration officials are telling us is that they really sort of made a calculation here.
They wanted this language in there because they felt that there would be lawsuits from these AIG employees who were getting these bonuses. And at the end, the calculation was if we should let this go forward, because it could end up costing us more money in these lawsuits than the actual bonuses themselves. So that is the reason that they really wanted to have this language in there -- Don.
LEMON: It was very interesting, too, Dan, talking about, a lot of folks have been asking whether or not the administration is taking on too much. And I believe, you know, the president spoke about it. And I don't know if you've spoken to the administration about it at all. Did you?
LOTHIAN: I have. And, you know, this is something for the last week and a half or so we've been talking to the administration about. And they admit, you know, that they have a lot of things on the grill, is what one senior administration official described it as.
You know, they're dealing with health care. They're dealing with education and energy. They have two wars. And then, of courses, the economy.
And so, you know, can they juggle all these balls at once? And what you've heard in the last few days is the president really sort of ramping up the kind of language and response to his critics. He did it again yesterday at a town hall meeting out in California.
Take a listen.
(BEGIN VIDEO CLIP)
OBAMA: When you're president, you've got to walk and chew gum at the same time. It would be nice if I could just pick and choose what problems to face, and when to face them, and say, no, I'm sorry, hold off on health care. Afghanistan, let's put that aside for a while. And, you know, I would sleep a little easier.
But that's not the way it works. It doesn't work that way for you.
(END VIDEO CLIP)
LOTHIAN: So that's the administration saying that. But you know, what's interesting is the American public feels completely opposite of that. A recent CNN/Opinion Research poll shows that the majority of Americans feel that the president has -- or this administration has really bitten off really more than it can chew right now. Fifty-five percent of Americans saying that.
But again, the administration insisting that this is not the time. In this kind of climate, it's not the time to sit back and pick, OK, I want to deal with health care, or I just want to focus on the economy or just focus on the war. They believe that the climate is such, that you really have to attack all of these problems at once.
And again, what they do, Don, is they tie it all into the economy. They say, if you really want to turn the economy around, you can't just focus on just sort of general economic issues, but you have to look at health care and education, because they think those are all pieces of the puzzle that will help turn the economy around.
LEMON: You know what? No matter what side you're on, Republican or Democrat, you know, it would be nice to have all of these problems fixed at the same time. There is a lot working out there, so there is some truth to what the president is saying. Yes, we need an administration who is capable of doing a lot of things at once. Let's hope they can handle it, Dan.
LOTHIAN: That's right.
LEMON: Thank you very much for that.
Meantime, viewers like you are weighing in heavily on the bailouts. Here is CNN iReporter Katy Brown demanding corporate responsibility.
(BEGIN VIDEO CLIP)
KATIE BROWN, CNN IREPORTER: I think it's time that major corporations start being responsible with money, especially if we're going to give them billions of dollars in bailouts.
(END VIDEO CLIP)
LEMON: OK. So what is your vibe about your economic footing in 2019? In 2019, what is your vibe?
Here's what a new CNN/Opinion Research Corporation poll tells us. Thirty-eight percent of those asked say they're very confident -- very confident they can hold on to their standard of living over the next decade. A higher percentage say they're somewhat confident, but almost two in 10 tell us they are not confident.
What does that mean? We should go behind the numbers. And we will.
Do you agree with our poll? Let's go behind the numbers now with CNN's Josh Levs.
Josh, what are viewers saying?
JOSH LEVS, CNN CORRESPONDENT: Don, you know something? Throughout the next two hours, we're going to be following all of your responses on this question. In fact, let's go right to one. I want everyone to see how they can weigh in on this graphic here.
Are you confident in the economy? Are you feeling like you want to get shopping right now, maybe you're even looking for a house, a big purchase, or no?
A couple of ways to get in touch with us. Facebook me, Josh Levs CNN. Or e-mail, cnnnewsroom@cnn.com. We're also going to be following your iRreports.
And Don, pretty much for the next two hours, you're going to find me standing right here. We're going to keep popping in with your stories, your views. How do you feel, what are you going through? Send it along, and we will be along with your reactions.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
GOV. TED STRICKLAND (D), OHIO: I'm not going to give up on Ohio. And we can't give up on this country. And that means we've got to work every day in a focused way to turn this economy around.
In Ohio, we're trying to do it by focusing on the things that are most growthful to our state, and that's energy, certainly, the health care industry is a growing industry in Ohio, a lot of research is going on. Biomedical research is going on.
But we are focusing on education. Even in the midst of this recession, we're holding the line on college tuition. We froze college tuition for four years at most of our institutions. We're putting more money, even in the middle of this recession, into elementary and secondary education.
LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Are you keeping kids in school and high school, public education?
STRICKLAND: Absolutely. That's exactly what we're trying to do, and we're working at it.
Listen, every day, I get up and I think about education, and what we're going to do in Ohio to make sure that we educate our kids, and we make college affordable for our young people. That's the only hope for our future.
(END VIDEO CLIP)
LEMON: That was just recently on "LOU DOBBS TONIGHT." That was the governor of Ohio expressing hope for the future, despite the economic hard times hitting that state. It is part of our weeklong special coverage. It's called "The Road to Rescue."
And you know, right now, we want to take a closer look at the economic struggles in Ohio, and how that state is coping.
We want to talk with Mike Kallmeyer. He's an anchor and reporter with our Ohio news affiliate, Ohio News Network, and he is live in Columbus. We talk to him all the time on stories, big-breaking news. Bluffton, a number of stories coming out of there, DHL.
And Mike joins us now.
Mike, I know that everyone is being hit, but Ohio seems to be particularly hit harder by this situation.
MIKE KALLMEYER, OHIO NEWS NETWORK: No doubt. And it's not all doom and gloom here in Ohio. Some positive words there from our governor, but certainly Ohio is suffering.
Our unemployment rate right now, 8.8 percent, well above the national average. In fact, our unemployment rate for February comes out tomorrow. So we'll be interested in seeing that.
Some of the counties here in the Buckeye State, unbelievable unemployment numbers -- 15, 16, 17 percent. Huron County -- that's in northern Ohio -- they have an unemployment rate of 18.3 percent. It's one of the highest in the nation. There's only a few counties nationwide that are higher than Huron. And think about that. One in five people in Huron County are without a job.
We cover these stories on a daily basis. It seems every day, there is another company laying off 38, 50, 72 people. And that all adds up. The auto industry, for example, has hit Ohio hard. People out there may not realize that Ohio is second only to Michigan in the production of vehicles.
LEMON: Hey, Mike?
KALLMEYER: Yes?
LEMON: I want to -- you said there was one county that had 18 percent unemployment, right?
KALLMEYER: 18.3 percent.
LEMON: 18.3 percent.
KALLMEYER: Huron County in northern Ohio.
LEMON: That's not the one with DHL, where almost everyone in the town was laid off, was it?
KALLMEYER: No, that's southern Ohio, southwest, Ohio, Clinton County, in the town of Wilmington, between Cincinnati and Columbus. And DHL was maybe one of our darkest hours, where we lost 8,000 jobs. But the good thing is that we are creating jobs, as well.
Just last week, 450 jobs were created at the DHL air park in Wilmington, and that's a hit that really decimated that town. So just to get a few of those jobs back is a good scenario.
Here at CNN, we are doing a subject called "Facing Recession," in which we are going to all 88 counties, two per week, and this will take us into November, much like you're doing with the "ROAD TO RESCUE" at CNN. We're not only telling the bad -- the darker stories, but the positive stories where people are overcoming.
LEMON: You've got to do it, because I think people have economy fatigue. And, I mean, because, you know, if you're living it, then you know it's bad. And turning on the television every day and hearing about it may not be something that you want to do. So offering people some information that they can use is I think the way to go here.
So you mentioned a little bit about job recovery. Anything else going on, job creation, job recovery, in Ohio, maybe other states can take heed and use that?
KALLMEYER: Yes. You know, there is a long list of job loss, and there's a list of job creation, as well, albeit a shorter list. But there are things happening. Battelle Institute here in Columbus, pouring $250 million into an expansion. The DHL situation. The Chevy Cruise (ph) will be made in our Lordstown, Ohio, plant in northeast Ohio. That will be in 2011. Wright-Patterson Air Force Base, 1,400 jobs in 2011.
So we have some things coming down the line. And, of course, we have a ton of stimulus money coming to Ohio, Don, as well, $8.2 billion.
LEMON: Yes. And hopefully that will help.
Hey, Mike, I could talk to you about that all day, about this all day, and especially how you guys are helping. Let's hope what you're doing for your viewers is working, as well as what we're doing here at CNN.
Mike Kallmeyer, appreciate it, Sir. Have a great day.
KALLMEYER: Thanks.
LEMON: All right.
You know what? In an economy, we all feel the domino effect. If people aren't working, they are not buying. And if they're not buying, well, you know the rest of the story.
So how do you fix it? Here's one money expert's 90-second answer to that.
(BEGIN VIDEO CLIP)
PAULA CALIGIURI, RUTGERS UNIVERSITY: Well, my prescription for fixing the job market would really be for us to invest in small businesses. We have -- as Americans, we have an amazing creative and entrepreneurial spirit. If we could only harness that, we would definitely be able to create more jobs.
For individuals who do have interests in starting businesses, I would encourage them to think of managing their careers the way they would manage their portfolios. To do some things that are slow and steady, but guaranteed sources of income. But do other things that may be a little more high risk, high reward, like starting a new business. For our country, I would recommend that we do whatever we can to invest in our entrepreneurs, either through grants, micro loans, whatever it takes to help invigorate that.
About 50 percent of Americans who work in the private sector work for small businesses. So small businesses will definitely help create jobs.
(END VIDEO CLIP)
LEMON: Let's hope you got some information you can use out of that.
And look around your town or city. You'll probably find a neighborhood with boarded-up homes and plenty of "Foreclosure" signs. On "The Road to Rescue," we'll show you one such area that is seeing a true neighborhood revival.
(COMMERCIAL BREAK)
LEMON: So, on the "ROAD TO RESCUE" comes a creative idea to revive a rundown neighborhood. It's happening in Detroit, hard-hit by the nations home foreclosure crisis.
Our Anderson Cooper takes us there.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, CNN CORRESPONDENT (voice-over): At first glance, this gritty neighborhood in Detroit's north side might not seem like the ideal place to invest. Abandoned buildings line the streets, burned out, boarded up.
But Mitch Cope and his wife, Gina Reichert, believe this is the perfect place to create art.
(on camera): What was it that attracted you to the neighborhood?
MITCH COPE, ARTIST: First, the house, because it was old posh Delhi (ph), and then also we started to learn the -- that our neighbors are Bangladeshis, Ukranian, Polish. And there's this great group of cultures in the neighborhood.
COOPER (voice-over): They moved here three years ago and have encouraged a growing number of artists to settle here, as well.
GINA REICHERT, ARCHITECT: We started to realize that the prices of other houses in the neighborhood were really dropping.
COOPER: That is an understatement.
(on camera): The beginning of this year, the average price for a home sold in Detroit was just $7,500, and in this neighborhood, properties are even cheaper. An artist can find space to live and work for just a few hundred dollars.
(voice-over): Mitch and Gina bought this property for only $1,900. They're renovating it with environmentally-conscious materials and green energy.
COPE: Take a house like this that's so cheap, and put all your money into the power system, and still have a house that will be off the grid, totally self-sustaining for under a hundred thousand.
COOPER: Mitch also hopes to create a community art center where local kids can plant in the garden and learn about art.
ZEB SMITH, ARTIST: It's a vibrant neighborhood. There's a lot -- there's a lot going on.
COOPER: Artists Zeb and Corinne Smith bought this foreclosed house just last month. They paid less than $600 for it.
Z. SMITH: I think we saw it as the possibility to do what we wanted to do without the constraints of having to make the house resaleable or make a profit on it.
COOPER: They hope to move into their new home this summer and already are considering buying a foreclosed property across the street.
CORINNE SMITH, ARTIST: If I could get that house, that would be really, really great.
COOPER: The artists coming here know they won't be able to revive this community overnight, but they do hope to make a positive change in the lives of their neighbors.
COPE: There's enough artists here that are interested in this public kind of work that I think the neighborhood can be a completely much more open space. You see more of the families that are here maybe coming out more and kids playing in the street more.
COOPER: A voice of hope, a unique vision for a community devastated by recession.
Anderson Cooper, CNN, Detroit
(END VIDEOTAPE)
LEMON: All right, Anderson.
And you can see more of Anderson's reporting want to, live from New York. "THE ROAD TO RESCUE: A CNN SURVIVAL GUIDE," Anderson comes on 10:00 p.m. Eastern, only here on CNN.
More weakness in the labor market. A new report shows the number of continuing jobless claims hit a new record high. Our Susan Lisovicz is on the floor of the New York Stock Exchange with the details for us.
Hello, Susan. Can you put this into perspective for us?
SUSAN LISOVICZ, CNN CORRESPONDENT: Sure. Basically what it means, the people who have been filing unemployment benefits for one week or more are having more problems finding a job. It's just simply taking longer.
And what's the total number, Don? Near - close to 5.5 million in so-called continuing claims. To put that in perspective, that's about double what we saw a year ago.
In terms of new requests for unemployment benefits, that number dipped slightly, Don. But still, at a very high level. About 465,000 last week alone - Don.
LEMON: Yes, and you know, here's the bad news, Susan. I'm pretty sure it could get worse, because we've been hearing a lot that unemployment is likely to keep rising.
LISOVICZ: No question about it. Basically, all economists, including Ben Bernanke, believe that the unemployment situation will get worse before it gets better.
We have another company, a very high-profile company announcing cut backs today. That is FedEx. FedEx, with an unspecified number of job cuts. It also says that it will cut hours and pay. Just a few months ago, this company announced that it would take other cost- cutting measures.
FedEx is considered a good representative of the overall economy, Don, because it serves so many businesses. And when you're seeing the cut backs, you realize that it's not only because companies are choosing cheaper options, but also because consumer spending is affected. So many of the packaged goods they send are catalog sales, and internet sales and so forth.
FedEx shares are up sharply on cost-cutting measures. But you're seeing the Big Board right now. The Dow is down 72 points, so giving back almost everything it gained yesterday. But it's been on a good win streak the last week. The Nasdaq, meanwhile, is down by eight - Don.
LEMON: All right, Susan Lisovicz, we appreciate it. Thank you very much.
LISOVICZ: You're welcome.
LEMON: Parents running out of money to keep the kids in private school. Well, one community shows a lot of class and finds a way to help. Neighbors helping neighbors on "THE ROAD TO RESCUE, A CNN SURVIVAL GUIDE."
(COMMERCIAL BREAK)
LEMON: We have this just into CNN and this is coming in, it involves UAW President Ron Gettelfinger. And I'm reading this just off of coming off the wires here. We're being told that Gettelfinger will retire at the end of his term. And at 2010, in June of 2010, he says. And the reason he's doing it, he spoke out on radio this morning, giving a radio interview. And he said - he cited union's policy, which was reaffirmed at a UAW convention in 1980, requiring officers to retire when they reach the age of 65.
So Ron Gettelfinger, who is the head of the UAW, will be stepping down in 2010 and not seek re-election as UAW president. And he's been one of the most visible presents in recent history with the UAW. Just to let you know, he was elected to his first term in 2002. And then elected to a second term in 2006. He will be stepping down in about a year.
Also, just in, and it concerns the auto industry, as well. The Obama administration is set to provide up to five billion in federal assistance to struggling auto suppliers. And the Treasury Department replaced a statement today saying, its auto suppliers' support program will give suppliers the confidence they need to continue shipping parts, pay their employees, and continue their operations.
Again, the Obama administration set to provide up to five billion in federal assistance to struggling auto suppliers.
Two developing news when it comes to the auto industry, that bit of news and Ron Gettelfinger, president of the UAW stepping down. Keep it here on CNN, we'll follow all of it for you throughout the day and, of course, in primetime.
The financial crisis is chipping away at your money morale. New findings from a CNN opinion research poll, here's what they show.
We asked Americans if they were, "very confident they would be able to pay off all of their debts," such as credit cards, car loans. And just half say, yes. Half of the people polled say, yes. That down six percentage points from this time last year.
Now, after all the steps the government has taken, are you feeling anymore confident about this economy? Are things looking up for you? Let's turn now to Josh Levs. We have been asking you that all morning, and he has been following your responses.
And you know what, I mean, it's 50/50, but I would think that it might be lower than that. I would have thought.
JOSH LEVS, CNN CORRESPONDENT: Hey, yes. I mean, a lot of people are struggling, right? And certainly playing off that poll, you can see why we would expect to get that.
What is interesting, Don, and I'll show you some of this now, we're getting a lot of stories from people. And sometimes, even in the midst of a very difficult situation, you do find optimism. And that might be some insight to the poll.
Let's zoom in on the board. I want to show you a few things. Lots of ways for you to weigh in. We got some coming on my Facebook page - JoshLevsCNN. Take a look at this, Don, from Susanna. We want to hear your stories. And she wrote one, "I'm a single mom with a college degree, barely paying the bills and I literally cannot afford health insurance. Yet," she says, "I have confidence that the economy will turn around. Who knows when, but it will."
On the flip side now, Matthew Ryan Morgan, "I will be graduating with a bachelor's degree in a couple months. With retirees returning to work and employers tightening their belts, I now believe I would have been better off working right out of high school, trying to build my savings and equity in a home."
Not seeing a lot of confidence from him there.
Now let's go to the e-mails here. Sara has a pretty short one you'll appreciate, Don, given the news yesterday. "I'm as confident in the economy right now as I am that taxpayers will get back the AIG bonuses - not at all."
And we've got time for one more here. "I am confident that the economy will be better soon. Definitely better by 2019. For the first time in ten years, my paycheck was bigger by 45 bucks per pay period. That is a tax cut for us, the people that work for the paycheck."
Tell you what, let's go to this graphic. I want all of you to see how you can weigh in. We're keeping a close eye on this. You can weigh in by Facebook or by e-mail. Tell us whether you're confident in the economy.
And Don, I want to tell you something that's coming up. We're getting a lot of iReports, too. We have one from two guys who were both on "The Mole." You know this show? "The Mole?" They're both on it. They're telling us some reasons why they think now is a pretty good time in this economy for a lot of people. So we'll have that in a few minutes.
LEMON: OK. "The Mole." That's not really - you know - a lot of people probably don't know. Some of our viewers...
LEVS: People have heard of it.
LEMON: You know, it had a resurgence.
LEVS: One of them was on in 2008.
LEMON: Thank you, Josh. Looking forward to that. Thank you, sir.
Our Josh Levs will join us in a little bit.
All this week, you know, CNN is bringing solutions to this financial crisis. We're not looking to the government to help you. Neither is one private school in New Jersey where caring goes really beyond the classroom.
And our senior correspondent, Allan Chernoff reports on its impact on one very special family.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SENIOR NATIONAL CORRESPONDENT (voice-over): Unemployed single dad, Tim Randall has six kids to get off to school. After breakfast and brushing, it's backpacks on and piling into the backseat for a brief ride to school.
Eleven-year-old Latina, the eldest, is dropped off last at St. Phillip's Academy. It's a private school for promising children, where she is thriving while attending on a full scholarship.
LATINA RANDALL, STUDENT, ST. PHILLIP'S ACADEMY: We get treated like a family, so everyone is treated like brothers and sisters. And everyone is treated equally.
CHERNOFF: Latina began attending St. Phillip's last fall, self months after her father lost his information technology job. Tim fell behind on rent and was on the verge of being evicted with his six kids.
St. Phillip's reached out to donors who, overnight, raised enough not only to pay up Tim's rent and utilities, but also pay three months forward to provide a cushion while he continues hunting for work.
TIM RANDALL, PARENT: I feel so honored. I mean, I started crying. You know, I normally don't cry, but, you know, I was shocked, really, you know - you know. So...
CHERNOFF (on camera): What did that say to you about this school?
T. RANDALL: I love it. I mean, that was the best choice I made.
CHERNOFF: Tim Randall's situation struck at the core of St. Phillip's philosophy. So much is achieved in these classrooms, but if a child leaves this building for an unstable environment, much of that achievement can be wasted. Which is why St. Phillip's provides a safety net for its families.
MIGUEL BRITO, HEADMASTER, ST. PHILLIP'S ACADEMY: We have a fragile population. You know, your car breaks down, you can't go to work, you lose your job, and all of a sudden what stability you had disappears. So the Family Support Fund is designed to support families in crisis.
CHERNOFF (voice-over): That safety net is no small feat in these times. Corporate and foundation donations, upon which St. Phillip's relies, are down about 30 percent this year. But individual donors, like David Farrano, are opening their wall let's to ensure parents can provide a safe home for their children.
DAVID FARRANO, DONOR, ST. PHILLIP'S ACADEMY: St. Phillip's, if it we want to keep our focus on the child, has to step up and do whatever we can to get that child back to a place where life is normal.
CHERNOFF: It's more than a commitment to education at St. Phillip's. It's a commitment to a child's potential, and a pledge that this recession won't destroy their hopes and dreams.
(END VIDEOTAPE)
LEMON: All right. Our senior correspondent, Allan Chernoff, joins us now, live from Newark.
So, St. Phillip's believes, Allan, the child's education depends on what happens outside the school as well as what happens inside the school, in the classroom, correct?
CHERNOFF: No question about that. I mean, it's fantastic what's going on here. But you've got to have a stable environment, the school believes, a stable environment at home, in the neighborhood. And this school is very much committed to doing whatever it can to ensure that stability. In fact, parents have to sign an agreement that they will provide a safe, secure, quiet place for the children to study after school.
LEMON: Allan, while I ask you this question, can we just see the kids in the classroom? They look so cute behind you.
CHERNOFF: Please.
LEMON: Aren't they cute? And what are they studying now, what hour or period, as they call it?
CHERNOFF: They're actually reading a book. It's up on the smart board right now and you see a lot of them participating and the teachers asking questions about what their reading. It's a real fun book. I missed the last few pages, Don, so I can't give you a book report right now.
LEMON: OK. Hey, real quickly, before we let you go, they are cute here. Smart board, we don't have blackboards anymore.
Who is doing this? Is it alumni? Who is being so generous?
CHERNOFF: This is actually a very young school, only 20 years old, so they don't rely on alumni. Donors from around the country are giving, because they believe in this school here in Newark, New Jersey. Very, very committed people. They feel this is - this is absolutely essential to lifting the entire community, and you have to start right here in the first grade.
LEMON: All right. Our senior correspondent, Allan Chernoff, we appreciate it. Exactly what people should be doing in tough times. Thank you, Allan, from Newark.
Your wealth and your mental health. This economic crisis is taking its toll on you and your family. I don't have to tell you that. But our next guest will give you ways to deal with it.
(COMMERCIAL BREAK)
LEMON: You know what, we feel your pain. Everybody is dealing with this. Many of you are sharing your financial frustrations with us during these tough times.
I want you to take a look at what one of our iReporters said. His name is Kyle Aevermann. He is really struggling.
(BEGIN VIDEO CLIP)
KYLE AEVERMANN, CNN IREPORTER: I can't find a job. Searching three months. I cannot find one job anywhere. Anywhere. And it's frustrating.
(END VIDEO CLIP)
LEMON: Yes. It is frustrating. A lot of people are dealing with that. And, you know, at least - he kind of got it out by sharing his feelings. That iReporter really nailed it.
I want to turn now, let's turn right to Dr. Angela Londona, who joins us now to talk to us about these frustrating times.
You see the iReporter there, Doctor. You see it in his face, you can hear it in his voice. You know we always say practical advice for people, but when you're in the middle of it, when you're being foreclosed upon, your car is being taken, you can't afford to take your kids anywhere - I mean, how can you say just really be positive about it?
ANGELA LONDONA MCDONNELL, CO-FOUNDER & PRESIDENT, AK COUNSELING & CONSULTING: You're right. And, you know, that's what they're - we're always telling people, you've got to stay positive, because that attitude comes across in a job interview or with people that you are talking to on a daily basis in your social network that could influence potential job possibilities, right?
But I think that you're right. I think that it is very difficult to stay positive, but we need to find ways to vent. And it's important to know - like, for him, he did it in the report. We can't go to everybody and share our true feelings about how things are.
LEMON: But you do have to get it out.
LONDONA MCDONNELL: But do you have to get it out. So you have to find a way that you find that is productive for you.
And the first thing to do is that you have to identify what is the triggers for you. What are the triggers that are making you feel even less positive? And once you identify those and you're able to then do something with that.
LEMON: Here is one piece of advice that I heard you talk about, I've read you - your comments on it. Sometimes you're too close to a situation. And you're constantly looking for a job, so you become obsessed and absorbed with it, and it kind of overtakes you and you can't see anything else.
LONDONA MCDONNELL: You lose perspective.
LEMON: You need to step back a little bit.
LONDONA MCDONNELL: Yes, sometimes...
LEMON: Don't lose focus, but step back.
LONDONA MCDONNELL: Don't lose focus, yes. It's really important not to lose focus when you're in a job search. Because if you lose focus, you begin to be not productive.
So first of all, you need to be clear on what your passion is. It's really difficult if you are already burned out in your job to get up every day and go find the same type of job. It would be really hard to then stay motivated and stay positive.
LEMON: Hang on. Because I think we're talking about two different things here. I want to separate the two things we're talking about. Sometimes you just need to take a break.
LONDONA MCDONNELL: Yes, that's true.
LEMON: Go to a ball game, take your kids to the park. Go meet people. Because I have read hundreds and hundreds of accounts of people who have found jobs, once they stop looking for them, at least for a little bit. And they went somewhere and did something, volunteering did something volunteering or some effort, they met someone and they found a job through that networking.
LONDONA MCDONNELL: In many ways because they got in touch with their values again. And then they began to relax a little bit, they began to talk to people more naturally. They're not always on, "I need to be on because this may lead to a potential job."
So I think, in many ways, it is going back to being a good fit. You were yourself, you got in touch with your values, you relaxed, you've being the family, for instance in the example that you gave. And then that led to a possibility.
LEMON: Sometimes you let go. Because I think, you know, there are no coincidences. Sometimes you just have to let it go and let the universe...
LONDONA MCDONNELL: Take care of it, yes.
LEMON: ... let the universe do it. And we're speaking in these esoteric terms, but in many ways it does work.
LONDONA MCDONNELL: It does work.
LEMON: Let's really talk, though, about passion. I've read a number of accounts people who were - you know, one, I think two guys really liked some drink that they made at a friend's wedding and it ended up being their business after they lost their jobs. Passion.
LONDONA MCDONNELL: Yes. And one of the things about economic times, it makes us very creative. You know when we are in tough economic times. Part of that is also finding what really is going to make you tick. You know, sometimes we just go to a job and after a while we don't like it anymore. We're not being satisfied anymore, but we continue to do it and that comes across in interviews.
LEMON: Dr. Angela Londano, I want to get that....
(LAUGHTER)
LONDONA MCDONNELL: It's a mouthful.
LEMON: ... Londano McDonnell, thank you very much. And you know, I do believe in what you said. That sometimes just your passion - and if you can't find a job, why not do what you love?
LONDONA MCDONNELL: Absolutely.
LEMON: Love to do what you love.
LONDONA MCDONNELL: Be true to yourself.
LEMON: Thank you very much.
LONDONA MCDONNELL: Thank you.
LEMON: Always good advice. Good to see you.
LONDONA MCDONNELL: Good to see you.
LEMON: And you know, some of you probably, you know, shop when you're stressed, and many stores would love to see you walk through their doors. That's if you have the money to shop. Let's turn now to our Josh Levs who is tracking consumer confidence for us.
Josh, take it away.
LEVS: Don, these responses are coming in like crazy. We're getting them through Facebook, iReport and e-mail. We just got a few seconds here so I'm going to show you one really simple one that just came in. Jane, is she confident? "My answer is no."
Keep them coming. We'll be back in just a few minutes to read more of your reactions.
(COMMERCIAL BREAK)
LEMON: So you see that picture. Right now what we want to check some of the most popular videos on CNN.com.
Number one, check this out. Charles Manson's new prison photograph. It is topping the list. California Corrections officials released the picture. It's showing the balding and graying 74-year- old, complete with forehead swastika.
Number two dotcom story is the death of Natasha Richardson. The actress passed away yesterday after being injured in a ski accident. She was 45.
In world news, lots of you are checking out the bizarre case of Yusef Fritzl. An Austrian jury has found him guilty of raping and imprisoning his daughter for more than two decades. He is sentenced to life.
AIG outrage. We're still hearing what you're saying and our Special Investigations Unit is tracking down the company's board of directors. You do not want to miss that.
