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President Obama Speaks From Electric Vehicle Technical Center; House Passes 90 Percent Tax on Bailout Bonuses; Broadway Honors Natasha Richardson; Energy Star Savings
Aired March 19, 2009 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
UNIDENTIFIED MALE: Just last month, I was talking to him about -- we went motorcycle riding and we came back. And we were washing our motorcycles. I always let him wash his because he gets in there cleaning. I just decided to ask him, Alex, what do you want to do when you grow up?
I want to be just like you, dad. He's not even looking up or anything. Alex, are you sure? Yes. Alex, you really sure? He goes, yes. Why do you want to do what I do, Alex? he looks at me and goes, Dad, you fix everything, and you make everything better.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: How about that.
(APPLAUSE)
OBAMA: That was a good story.
UNIDENTIFIED MALE: There's actually two messages there. First message is, Alex looks at his dad, and I am the one who's going to make it better. All of us are. Just the future is all in our hands for our little children. We are at Southern California Edison Electric Vehicle Technical Center. We are pushing forward on this electric technology. And we are striving to get a cleaner earth.
So -- and also, the second message? He's got a great dad. So, without -- I don't want to take any more time. It's such an honor for Southern California Edison, myself, my colleagues and all our guests to invite to our house the president of the United States, Barack Obama.
(APPLAUSE)
OBAMA: Thank you. Thank you, everybody. Thank you. Thank you so much. Thank you. Thank you, guys. Thank you. Please, everybody, have a seat.
Well, first of all, Lavon (ph), what a wonderful story. I can tell you're a great dad. And Alex is lucky to have you.
I want to make some additional acknowledgements. We've got a lot of dignitaries here and people who were helpful in helping to pull this together.
First of all, the congresswoman from this district, Grace Napolitano, where -- there she is, right there. (APPLAUSE)
We've got Senator Gloria Negrete McLeod. Did I pronounce that properly? No? Why don't you help me out?
(UNKNOWN): (OFF-MIKE)
OBAMA: Negrete McLeod. So nice to see you.
Assemblywoman Norma Torres, Senator Christine Kehoe, good to see you.
(APPLAUSE)
Senator Ron Calderon.
(APPLAUSE)
We've got the mayor of Pomona, Mayor Elliott Rothman.
(APPLAUSE)
We've got Village Academy High School students who are here. They're in the house.
(APPLAUSE)
Ted Craver, who is the CEO of Edison International, is here and just helped us on the tour. Go ahead and stand. Thank you, Ted.
(APPLAUSE)
We've got Al Fohrer, who's the CEO of Southern California Edison, who's here.
(APPLAUSE)
We have Ed Care (ph), who just gave me the tour, right here.
(APPLAUSE)
Pat Lavin, business manager IBEW Local 47.
(APPLAUSE)
Thank you all for taking the time to be here. And it is good to be back in California. It's always -- always nice to get out of Washington for a little built.
(LAUGHTER)
Recharge your batteries.
(LAUGHTER)
(APPLAUSE) OBAMA: You know a little bit about that here.
(LAUGHTER)
I want to thank the folks here at the Electric Vehicle Technical Center for the tour we just had.
You know, yesterday I was in Costa Mesa talking with people about this economic downturn that we're in. It's a downturn that's hitting this state as much as any state in the union; 1 out of 10 Californians are out of work and actively looking for jobs. The foreclosure crisis has had a devastating impact on Southern California, in particular.
But Californians aren't just bearing the brunt of this crisis. You are doing what needs to be done to overcome it. This workshop is a perfect example of that.
Day by day, test by test, trial by painstaking trial, the scientists, the engineers, the workers at this site are developing the ideas and innovations that our future depend on. It's your ingenuity that will help create the new jobs and new industries of tomorrow.
I know it's not easy. There are days, I'm sure, when progress seems fleeting and days when it feels like you're making no progress at all. That's how it feels in the White House sometimes, too.
But often our greatest discoveries are born not in a flash of brilliance, but in the crucible of a deliberate effort over time. And often they take something more than imagination and dedication alone; often they take an investment and a commitment from government.
That's how we sent a man to the moon. That's how we were able to launch a World Wide Web. And it's how we'll help to build the clean energy economy that's the key to our competitiveness in the 21st century.
We'll do this because we know, as Lavon (ph) just said, that the nation that leads on energy will be the nation that leads the world in the 21st century. Our children's futures depend on it.
That's why around the world nations are racing to lead in these industries of the future. Germany's leading the world in solar power. Spain generates almost 30 percent of its power by harnessing the wind, while we manage less than 1 percent. Japan is producing the batteries that currently power American hybrid cars. So the problem's not a lack of technology. You're producing the technology right here. The problem is that for decades we've avoided doing what we must do as a nation to turn challenge into opportunity.
As a consequence, we import more oil than we did on 9/11. The 1908 Model T -- think about this -- the 1908 Model T earned better gas mileage than the typical SUV in 2008. Think about that: 100 years later, and we're getting worse gas mileage, not better, on SUVs.
Even as our economy's been transformed by new forms of technology, our -- our electric grid looks largely the same as it did half a century ago.
So we have a choice to make. We can remain one of the world's leading importers of foreign oil or we can make the investments that will allow us to become the world's leading exporter of renewable energy.
We can let climate change continue to go unchecked, or we can help stop it. We can let the jobs of tomorrow be created abroad, or we can create those jobs right here in America and lay the foundation for lasting prosperity.
And that's what my recovery plan does. It will create or save 3.5 million jobs, nearly 400,000 of them right here in California...
(APPLAUSE)
... in part by making investments in areas critical to our long- term growth. And that is the forward-thinking purpose of the budget that I've submitted to Congress.
It's a budget that makes hard choices about where to save and where to spend, that makes overdue investments in education, health care, and, yes, in energy, investments that will catalyze innovation and industry, create green jobs, and launch clean, renewable energy companies right here in California.
Over the next three years, we will double this nation's supply of renewable energy. We've also made the largest investment in basic research funding in American history, an investment that will spur not only new discoveries of energy, but breakthroughs in science and technology.
We will invest $15 billion a year to develop technologies like wind power and solar power, advanced biofuels, clean coal, and fuel- efficient cars and trucks that are built right here in the United States of America.
(APPLAUSE)
We will soon lay down thousands of miles of power lines that can create new energy in cities and towns across this country. And we will put Americans to work making homes and buildings more efficient so that we can save billions of dollars on our energy bill, just like you've done in California for decades.
And we will put 1 million plug-in hybrid vehicles on America's roads by 2016. That's what we're going to focus on.
(APPLAUSE)
Now, because these cars of tomorrow require batteries of tomorrow, I'm announcing that the Department of Energy is launching a $2 billion competitive grant program under the recovery act that will spark the manufacturing of the batteries and parts that run these cars.
(APPLAUSE)
That will allow for the upgrading of factories that will produce them and, in the process, create thousands of jobs in facilities like this one all across America. Show us that your idea or your company is best suited to meet America's challenges, and we will give you the chance to prove it.
And just because I'm here today doesn't exempt all of you from that challenge. Every company that wants a shot at these tax dollars is going to have to prove their worth. So, Lavon (ph), you're going to have to work hard.
(LAUGHTER)
We're also making a $400 million down payment on the infrastructure necessary to get these cars on the road. And because these cars won't leave the showroom unless consumers buy them, the recovery act includes a new tax credit of $7,500 to encourage Americans to plug one in at home. Now...
(APPLAUSE)
... true to form, true to form, California has already forged ahead with its own plans rather than wait for Washington. It's fitting that the state home to the first freeway and the first gas station is already at work devising the next freeway and the next gas station. This green freeway you're planning with Oregon and Washington would link your states with a network of rest stops that allow you to do more than just grab a cup of coffee, but also charge your car, refuel it with hydrogen or biofuels, swap out a battery in the time it takes to fill a gas tank.
Charging stations have begun to pop up around downtown San Francisco, and that city has just joined with San Jose and Oakland with the vision of becoming the electric vehicle capital of the United States.
And here at Southern California Edison, and all across the country, in factories and laboratories, at the big three and at small startups, these innovations are taking place right now. In Michigan and Ohio and right here in California, we're seeing exciting developments in this field, as hard-working men and women like you are already laying the groundwork for this new industry.
Even as our American automakers are undergoing some painful adjustments, they are also retooling and re-imagining themselves into an industry that can compete and win, and millions of jobs depend on it.
So this is the critical work you're doing, but it's just one component of what must be a comprehensive energy plan. And that's why we're making an $11 billion investment in upgrading our power grid, so that it can carry renewable energy from the far-flung places that harness or produce it to the cities that use it.
That's why we'll create jobs retrofitting millions of homes and cutting energy use in federal buildings by one-quarter, saving the American taxpayer $1.5 billion each year.
These are challenging times, but we know we can do this. It won't come without a cost. It won't be easy. We've got 240 million cars already on the road. We've got to upgrade the world's largest energy grid while it's already in use.
And other countries aren't standing around and waiting for us. They're forging ahead with their own bold energy plans.
But this is the thing we have to remember: We've faced tough challenges before. At our best, we have never relied on hope and chance alone. Time and time again, we've tapped those great American resources, industriousness and ingenuity.
And that, after all, is what California is all about. This is a state that has always drawn people who've had their eyes set on the horizon, who've always dreamed of a future that others thought beyond reach.
That's the spirit that you are reclaiming here at the electric vehicle test center. That's the spirit we need to reclaim all across the country.
Thank you very much, everybody. Thank you. Thank you.
(APPLAUSE)
KYRA PHILLIPS, CNN ANCHOR: So, what do you think, will you be driving a hybrid by 2015 like the president of the United States wants you to?
He's spending the day in Southern California, as you can see, where green cars of the future are what he is saying will be the green jobs of today and beyond. He's at the Edison Electric Vehicle lab there in the LA suburb of Pomona, also known as the garage of the future.
All right. Bailouts, bonuses, and plenty of blame to go around. You pay your taxes. I pay my taxes. But some of the companies we bailed out didn't pay theirs. So what's going on? We're going to "Push Forward".
Plus, you want to save some money? Silly question, right? We'll tell you how, and how much. We're pushing forward to Wall Street, to Washington, and straight into your wallet.
The president is wrapping up his whirlwind West Coast visit with a town hall in LA, and a guest shot on the "Tonight Show." But he can't outrun the uproar over bonuses and bailouts. CNN's Ed Henry brings us up to speed on all of it -- Hey, Ed.
ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Kyra, good afternoon. You're right. You just heard the president talking about some of what he calls his green initiatives, renewable energy projects, these electric vehicles. He's trying to get more of them on the road. A lot of the research done right here in California.
White House aides say this trip has been in the planning for awhile, as well as some of these media appearances, like the "Tonight Show With Jay Leno" this evening. Because he wants to go on offense for these initiatives, in terms of energy, education, health care, some of the long-term priorities in his federal budget plan that he's been laying out. It's been facing some resistance on Capitol Hill, not just from Republicans, but some Democrats, concerned about the price tag.
He's also trying to go on offense, we're told now by White House aides, that at a town hall meeting in a couple of hours, he'll be talking about foreclosures and how he thinks his housing plan is helping. He's talking about his stimulus plan, already signed into law, how he thinks that's going to create jobs. Road projects, right here in Los Angeles, and throughout the state of California, and around the country.
But as you noted, there's no doubting, though, that while the president tries to go on offense, he's playing some defense as well in the AIG bonus controversy. And just in fact a moment ago, the president joked, he said something like, to these people at the energy event, sometimes it feels like you're making no progress at all in terms of the economy. It feels like that in the White House sometimes, too, he joked. A reference to some of the difficulties he's been having in recent days.
And so what he's trying to do, White House aides believe, that he's not getting the blame for this bonus controversy. They believe that Wall Street is bearing the brunt of it. These companies like AIG are bearing the brunt of it. But obviously now that he's president, and sort of taking ownership of the economy, taking ownership of these bailouts. which were started on the previous administration's watch, it's getting more difficult, more and more difficult for this president to navigate his way through all of these difficult problems, Kyra.
PHILLIPS: Ed Henry, appreciate it.
Bailout, sellout, fallout and payback. They can't stop payment on those gigantic bonus checks at AIG, but lawmakers can slap taxes on the money. And when I say slap, I mean slap. We could see a vote this hour.
And speaking of taxes, a new outrage. One lawmaker says that 13 firms that took bailout money and claimed to be paid up on their taxes are not.
We're also pushing forward on the mystery of the bonus loop hole in the stimulus bill. A senator who said he didn't do it, fesses up.
Let's start with the overdue taxes and the congressman, from right here in Atlanta, who actually broke the story. At a hearing morning Democrat John Lewis revealed more than a dozen bailed-out companies are behind on their federal taxes. That's despite having claims that they were current as a condition of the bailout. (BEGIN VIDEO CLIP)
REP. JOHN LEWS (D-GA) CHAIRMAN, WAYS & MEANS OVERSIGHT SUBCOMMITTEE: (UNINTELLIGIBLE) have no sense that there is any control over this money. They have no idea what, if anything, they would get in return. This entire program is based on trust. Trust in the giver, and trust in the taker, at this point there is no trust.
(END VIDEO CLIP)
PHILLIPS: Lewis hasn't named the deadbeat firms. He says, by law he can't. The bailout special inspector general says he's going to investigate.
Taking a bite out of bonuses, a big bite; live pictures now from the House floor where lawmakers are voting on that bill to tax some of the bonuses doled out by bailed-out companies. Outraged over the $165 million worth of bonuses paid by insurance giant AIG, Congress is looking to levy a 90 percent tax on some corporate bonuses. We're following the vote.
Our Brianna Keilar is as well, she's on Capitol Hill. Brianna, what are the chances, you think of recouping any of that bonus money?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, it's hard to tell, because there's certainly some disagreement about whether you can, or not. Now, this measure, this hefty tax on bonuses, would apply to 2009 bonuses, not 2008, just for this year. But what it would do is go back to the beginning of the year, according to the language, and apply to bonuses that have already been handed out. That would include those bonuses that have gone to these AIG executives.
Law experts, some of them, though, that we're talking with say you can't do that. You can't punish someone for something retroactively, something that was legal when they did it, only to then, you know, move forward in time and say, oh, actually, you can't do that.
On the other hand, though, the people who put this bill together, Democrats on the committee that deals with taxes in the House, they say you can. You can pass a tax measure for 2009, and even though it's March, it can apply to the whole year. So some disagreement there, Kyra.
PHILLIPS: All right. So, lay out exactly what the bill would do.
KEILAR: This bill is on bonuses, on the person who gets a bonus. You would be taxed 90 percent, if your income is over a quarter of a million dollars, over $250,000, that income including the bonus, and if you work for a company that gets -- that has gotten $5 billion or more in bailout funds. Obviously AIG would certain fall under there, Kyra.
PHILLIPS: Keep us updated op the vote. Appreciate it so much. Case closed on the loophole mystery. A day after telling CNN that he had nothing to do with it, Democratic Senator Chris Dodd, chairman of the Senate Banking Committee, owns up to helping pave the way for those huge AIG bonuses. It was a last-minute add to a measure aimed at limiting lavish executive payouts. Well, the clause exempts bonuses agreed to on or before February 11th.
(BEGIN VIDEO CLIP)
SEN. CHRISTOPHER DODD, (D-CT) CHAIRMAN, BANKING COMMITTEE: I apologize if I had some confusion about whether or not we wrote it exactly. But I didn't write it at my own behest, I was being sought out and asked to modify this with the alternative, quite candidly being, losing the amendment itself.
(END VIDEO CLIP)
PHILLIPS: The Treasury is rolling out another bailout. This time a relatively modest $5 billion for U.S. auto parts suppliers. They have suffered right along with the Big Three. Word came as President Obama was touring a green car test lab in Southern California. The Edison Electric Vehicle Center does research on battery and plug-in cars for Ford. You just saw the president live a few minutes ago.
Vice President Joe Biden also on the road taking the administration's economic message to Minnesota. He's holding a town hall meeting along with members of the White House Middle Class Task Force. Biden says President Obama's budget has one overriding goal.
(BEGIN VIDEO CLIP)
JOESEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: We are here to listen. Our eyes are open. We're here to hear. We're here to hear what's on your mind. We're here to hear what you think we should be doing over the next four years to help, which is the measure of a success of our administration.
You've heard us say it before, we will measure our success, whether it's four or eight years, based on one thing, whether or not we've been able to raise the standard of living for middle class people. That is the measure of success. We've got to get this nation growing again.
(END VIDEO CLIP)
PHILLIPS: Can this nation start growing again? That's the biggest question. That's why CNN's Ali Velshi got a rare one-on-one interview with Treasury Secretary Tim Geithner. You can actually watch it tonight, 8:00 Eastern, on CNN's "NO BIAS, NO BULL" with Campbell Brown. Ali, actually, is joining me from Washington, just got back from that interview with a preview. How did it go, Ali?
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Good. We had a good conversation. We've been spending some time with the secretary last week. We were sort of, you know, watching what he does every day. Of course, his days are very, very busy. There's some discussion about whether he's understaffed. But he's saying that they're really trying to plod along and get things done at Treasury.
He was saying that he didn't take issue with Ben Bernanke's comments that the economy could recover in 2010. That this recession might end in 2009. He said that's a view shared by a number of economists.
On the AIG matter that you were just talking about, one of the things he told me was that Treasury staff, he did confirm, that Treasury staff had talked to staff on the Banking Committee, and recommended that if they didn't have a provision protecting contracted bonuses, you know, bonuses that people had contracts for, as opposed to discretionary bonuses, he didn't think that --or Treasury staff didn't think that would hold up to legal challenge, which is why they spoke to Senator Dodd's staff about putting that clause in. So, he did confirm that part of the discussion, that Senator Dodd had brought up.
He also said that with respect to those bonuses, he first got a full picture of the legal obligations that AIG had to pay those bonuses back on March 10th. That's something we heard from the Treasury a couple of days ago. But he did say that this government, and world governments are putting so much emphasis on fixing their economies, that it would be wise for investors to start taking that long view, and deciding upon where they're going to be invested and how they're going to be invested. Because, he said, really nobody's ever worked this hard to get an economy back on track. He said they're fully committed to that and everything they do, Kyra, he said, is focused on the American taxpayer, the American homeowner, as opposed to banks.
He said that's an incorrect impression that people have been given. That they're working in the interest of banks and that they're going to change that with any further money that gets given out to anybody, any further bailouts will have more strings attached, so we don't go through the sort of nightmare we've just seen.
PHILLIPS: I'll tell you what, Geithner has one of the toughest jobs in the country right now. Ali Velshi, thanks a lot.
VELSHI: OK.
PHILLIPS: You can watch Ali's rare interview with Timothy Geithner, tonight on Campbell Brown "NO BIAS, NO BULL". The full interview at 8:00 Eastern, right here on CNN.
PHILLIPS: Shock and awe gives way to draw downs and timetables; six years into the war in Iraq we'll look at where we've been, where we're headed, and how soon we're going to get there.
(COMMERCIAL BREAK)
PHILLIPS: There's one bit of positive economic news, mortgage rates are taking a dive. The Federal Reserve is making a $1 trillion investment in mortgage-backed securities and government bonds. It could knock about half a percentage point off home loan rates. And it already seems to be working. The national average for a 30-year fixed rate loan was hovering around 5. - 5 percent actually, by one measure, it has already dropped to 4.91 percent.
The nation's housing crisis has devastated entire neighborhoods in some areas. The drop in home values also means opportunity for people who were once priced out of the market. Ted Rowlands, joining me live once again, from Lake Elsinore, California, where there are some serious deals on some really nice pieces of property. Hey, Ted.
TED ROWLANDS, CNN CORRESPONDENT: Hey, Kyra.
Yes, some serious deals, and serious heartache, too. We're in Riverside County, the epicenter of the foreclosure mess. And on this street alone there are a number of homes in foreclosure. Some have signs, some don't.
This home right here, classic example. The homeowners got in about $630,000 just a few years ago. Now they're trying to get out, trying to work with their bank to sell it at less than $300,000.
As bad as that is, the other side of the coin, this house. This is a classic example of someone who is very pleased with how things are going, not only in this neighborhood, but in the homeowner's situation in California.
The prices have dropped so dramatically, the Lefleys (ph), here, which we're going to meet right now have been able to get into a house that just a few years ago cost over $500,000.
Derrick Lefley (ph), how does it feel to get into really a dream home situation?
UNIDENTIFIED MALE: It feels excellent. We definitely wouldn't have been able to afford this place a couple years ago. But when the market went down, we were able to get it.
ROWLANDS: Derrick's better halves, Mary Ann, and little Melody, two and a half.
A beautiful young family in a home, Melody - or Mary Ann - I won't ask Melody -too many questions. Mary Ann, that realistically you wouldn't have been able to get in, even six months ago. How does it feel for you?
UNIDENTIFIED FEMALE: We're really enjoying it. We love our new home and grateful for the community we're in and neighborhood. We're just really grateful for the houses being -the market dropping, so we were actually able to buy a home.
ROWLANDS: And you were saying that you're actually paying a little bit less, as a homeowner than you were renting a small apartment. The reality, though, is a lot of your neighbors are going through heartbreak. They're down hundreds of thousands of dollars. How does that make you feel? Is it a little disconcerting?
UNIDENTIFIED MALE: My heart goes out to everybody that lost their home, lost their jobs, you know. And I'm real sympathetic toward them. But the reality for us, at least, was, if this didn't happen, we wouldn't be in this situation we're in.
ROWLANDS: Where would you be?
UNIDENTIFIED MALE: Oh, in an apartment still. We would have been priced out of the market, you know.
ROWLANDS: All right. Melody, do you like your house?
UNIDENTIFIED FEMALE: Say, yes.
ROWLANDS: That's a no comment, Kyra. Playing it very close to the vest, here's Melody.
Obviously a very, very happy family. On the other side of the coin, one woman pulled up and said she was sick to her stomach with how much money she's lost, a neighbor of theirs, who is still in their house. With the bad, though, comes the good.
PHILLIPS: What did she say? I missed what she said in her cute little hat there?
ROWLANDS: Melody didn't say anything.
PHILLIPS: Oh, she tried to.
ROWLANDS: She gave us that, kind of that look.
UNIDENTIFIED FEMALE: Can you smile?
(LAUGHTER)
PHILLIPS: Ah.
ROWLANDS: No comment.
UNIDENTIFIED FEMALE: Can you wave? Wave to all your cousins.
ROWLANDS: Perfect politician. Good job, Melody.
PHILLIPS: Exactly. She'll be running this country.
ROWLANDS: Don't get yourself into trouble.
PHILLIPS: Thanks, Ted. Good luck to the family.
Well, a school's financial aid not going to a student, but her dad paying his bills while he looks for work.
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(BEGIN VIDEO CLIP)
TERI GAULT, THEGROCERYGAME.COM: One of the best ways to save money is to stockpile. And that is, to buy something before you need it when it's on sale. And a good example of that would be meat. When it's on sale, buy enough of it to last for a couple of weeks down the road.
So, now you have your freezer half full of your favorite meats that you bought at a great price. But if you have a power failure, you could lose all of that meat. Now, if your freezer is full, first of all it's going to take less electricity to keep it cold. Also, there's an insurance that it could stay frozen up to two or three days if it's full. So I recommend taking empty plastic milk cartons, filling them with water and keep the freezer full.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
PHILLIPS: Broadway will honor Natasha Richardson tonight, dimming theater marquees for one minute at 8:00. The actress passed away yesterday in New York after suffering a head injury during a ski lesson. Formal autopsy results were released just a few minutes ago. Cause of death? Epidural hematoma, bleeding on the brain from a blunt impact on the head.
Natasha Richardson is survived by her husband, Liam Neeson, and their two sons. She was just 45 years old.
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PHILLIPS: Well, to the floor. It hasn't passed yet, but it looks like the final tally is looking like it's passed. Time is now. We're talking about the bill that the House reps have been voting on today. That legislation to try to recoup bonuses that were paid to those Wall Street executives with taxpayer money.
We're on it. We're following it. Brianna Keilar will join us live in just a minute.
Now, one great way to save us your hard-earned cash these days? Bartering. That's trading your goods or skills for someone else's. And a lot of Americans are discovering it.
CNN's Susan Lisovicz, she's a pro at that. She's been tracking down the growing trend for us.
(BEGIN VIDEOTAPE)
SUSAN LISOVICZ, CNN CORRESPONDENT (voice-over): Sebastian is getting his bath. But other regulars are a little scruffier these days. Business is down 25 percent at this New York Dog Spa. But owner Dale Van Pamelen says he's found a way to soften the bite. Some of his canine customers are bartered. He's used his trade credits to get an awning, plumbing, publicity and more in exchange.
DALE VAN PAMELEN, CO-OWNER, NEW YORK DOG SPA & HOTEL: And even the electrician, I've got to like change some light fixtures or something. I go on the website and or I just call the agent and tell them I need this. She sends me three or four different contacts. I contact them. They give you a quote. Just like anybody else does. And then you pick the quote that you want. LISOVICZ: Bartering in the digital age is increasingly done through dozens of Internet exchange. Members build up credit with their own goods and services, which is then used as payment for others.
(on camera): Small business has always relied on bartering. But in this economy, with consumer spending down and credit hard to get, it can be a life saver. It can both increase revenue and conserve cash.
(voice-over): Bartering exchanges say memberships has grown as much as 50 percent over the past year.
RON WHITNEY, INTERNATIONAL RECIPROCAL TRADE ASSOCIATION: The engine that drives barter is the unused capacity that every business has. All right.
Think of a hotel. In good times, in a good economy, maybe they'd have a 90 percent occupancy rate. All right, in a down economy, they drop down to a 50 percent occupancy rate. But what they're bartering is the unsold hotel rooms.
LISOVICZ: Ken Mara has been bartering his security services for nearly 30 years.
KEN MARA, PRESIDENT, WORLDWIDE SECURITY: It's enabled us to be more aggressive in the marketplace in terms of marketing, advertising, promotions, incentives. We use prizes. We can barter dinners and Broadway shows.
LISOVICZ: And that's good news for businesses keeping a close eye on their cash flow in this economy.
(END VIDEOTAPE)
LISOVICZ: Kyra, this is the third-person bartering through bartering exchanges. The exchange basically serves as a bank where you accumulate barter credit with your goods and services. You can then use your barter credit at any time for something else on the exchange.
For more info, try this website, www.irta.com. IRTA stands for the International Reciprocal Trade Association, which has been around for 30 years - Kyra.
PHILLIPS: Now you can save on your taxes, too, by doing this, right?
LISOVICZ: No, Kyra.
PHILLIPS: No?
LISOVICZ: No, no, no.
PHILLIPS: No 1099? LISOVICZ: Yes, a 1099-b form. Basically, your goods and services are recognized as a sale, and what you receive is recognized as an expense. But definitely put it down there.
PHILLIPS: Got it. OK.
LISOVICZ: Don't get into trouble with the taxman.
PHILLIPS: OK. All right. I had the misinformation. Thank you for straightening that out.
Stick with me for a minute. Will you talk about this website with me? With this youexchange.com, some folks in our team brought this to my attention. And when we went to it, you can go to any state and actually barter online, Susan. Have you had a chance to look at this website?
LISOVICZ: I have. And you know, Kyra, there's one near you. Jackie in Roswell, Georgia, is offering a free gym membership.
PHILLIPS: I brought her up.
LISOVICZ: And did you see what she needs? She needs a laptop for her son who is a Marine, and going to be deployed to Afghanistan this May.
PHILLIPS: I'm looking at it right now. She said, "Here's what I have to offer. Free Curves gym membership." What she's looking for, her son's being deployed and needs a laptop.
So basically, you go on and look at what they want to barter and you can do this all online.
And I was looking at this one in Michigan, Susan. We just chose random. Cause you know Michigan has obviously been hit extremely hard. For example, we've got in West Bloomfield, Ed says he's been in business for 16 years and he's seeking trading up to $100 million with his business in construction.
Looking down, Rick here says he's offering his carpentry, mason work, repair, any types of walls, in exchange for vehicles, guitars, a moped, chainsaw. I mean, it's amazing.
LISOVICZ: Basically, his entire house.
PHILLIPS: Yes, exactly. But it's really fascinating to see what people are willing to do in exchange for something to help them out right now in this tough economy.
LISOVICZ: Well, it just goes to show you how imaginative and enterprising people can be. And especially with the Internet. It's really connecting so many people so quickly. It's very efficient.
PHILLIPS: Well, I wouldn't trade you for the world.
Susan Lisovicz, thank you. LISOVICZ: Likewise. You're welcome.
PHILLIPS: Well, you might have seen the tags, the ones that say "Energy Star." Sounds great, but to save money on your bills you got to pony up for the appliance. Is it worth your money to buy now to save later?
(COMMERCIAL BREAK)
PHILLIPS: Well, looking to cut your energy bills when money is tight? Buying new energy-efficient appliances may not be at the top of your list, but they can save you money in the long run. CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.
Hey, Poppy.
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Hey, Kyra.
Yes, not at the top of my list when I look at those Energy Star appliances. They look more expensive and they are. But the EPA says they're going to save you money. They'll pay for themselves over five years and they're going to save the average American 75 bucks a year.
What you want to make sure to do when you go in there is, you should know, these are not just the fancy new models. The Energy Star appliances come really at almost any price point. Ask a sales associate what they have in the back. There might be some older models that might save you some money.
And ask yourself, do you need, for example, a refrigerator with the icemaker? Because those ice makers use up to 20 percent more energy. And they can cost about $250 more, Kyra. I didn't know that. But you don't need all that fancy stuff if you're trying to save money, right?
PHILLIPS: Yes. Tell me what I need - which Energy Star appliances can I get to get the biggest bang for the buck?
HARLOW: What you want to do is look at your house right now and say, what's the oldest thing in your house. Right? If it's the refrigerator, replace that. Whirlpool says replacing a 20-year-old fridge with an Energy Star one, it's going to save you $200 a year. The EPA says if you replace a 10-year-old washing machine, that's going to save you about $145 a year, Kyra.
PHILLIPS: OK, well, how do we find the deals?
HARLOW: You find the deals by obviously going in and asking what's on sale. But also, check out the rebate finder on the Energy Star website. You can literally go onto it. I think we're going to pull it up for you here. Exactly. Enter your zip code right there. Check the box of what your even looking for. That'll pull up the manufacturer rebates for you.
You should also know, there are also government rebates in about 15 states. Missouri has one going on in April. That is for, basically, sales tax holidays on all these appliances.
And the stimulus bill sets aside $300 million for these Energy Star rebates. The details haven't been worked out yet, we'll let you know as soon as they are. But a lot of deals out there saves you money in a few years, so they say - Kyra.
PHILLIPS: We all love a great deal nowadays.
Thanks, Poppy.
Breaking news to tell you about right now. The vote is definitely over. The final numbers are in. Take you live once again to the floor here. I'll bring you the numbers in just a second.
Apparently, the House has approved that 90 percent tax on bonuses 328 to 93 I'm being told; 328 to 93. Interesting to talk with those who voted against this.
As you know, we've been talking about it all day. The House of Reps were voting on this legislation to try and recoup these bonuses that were paid to Wall Street executives with taxpayer money. Millions of dollars paid out to individuals who were getting bailout help, bailout funds from the government, and still taking home millions of dollars in bonuses.
Now it looks like it's passed one level and that's the House of Reps, with a pretty large margin, 328 to 93, that those bonuses will be taxed. So we'll keep tracking it. Still obviously has one more level to go before it's signed off.
Shock and awe gives way to draw-downs and timetables. Six years of the war in Iraq. We're going to look at where we've been, where we're headed and how soon we're going to get there.
(COMMERCIAL BREAK)
PHILLIPS: It started with shock and awe, and now things are less shocking in Iraq with the U.S. starting to draw down troops.
Today is the sixth, yes, the sixth anniversary of the start of that war. Hard to believe, isn't it? It was a year ago I was on assignment in Baghdad where I had an exclusive interview with General David Petraeus, back then the top U.S. commander in Iraq. I got unprecedented access to the general for 35 minutes in an interview simulcast around the world. The reason? People were hungry for answers. Especially about who our real enemies were in the war zone.
(BEGIN VIDEO CLIP - MARCH 19, 2008)
PHILLIPS: The Iranian president came here. I know you told me you weren't invited. This is not someone you would want to shake hands with and look in the eye. The Bush administration has referred to Iran as, "The Axis of Evil." But it stands firm that Iran is funneling weapons and supporting al Qaeda and supporting the insurgency. Was it a slap in the face to Americans, the fact that the Iranian president came here to Iraqi soil, when you and other U.S. troops are trying to rebuild this country and trying to end terrorism in this country?
GEN. DAVID PETRAEUS, COMMANDER, MULTINATIONAL FORCES IRAQ: Well, again, I think it's very natural that Iraq should try to deal with its neighbors. It also then hosted the following week in Iraqi Kyrgyzstan. In fact, the Arab Parliamentary Conference. In fact, the Iraqi speaker of the Council of Representatives was elected to be the head of that organization.
They want their Arab neighbors involved. They have to deal with their Persian neighbors to the east. Iran is always going to be to the east of this country. They have a bloody past.
But also, many of the leaders have associations there. They spent years there during exile from Saddam and so forth.
But the foreign minister actually captured, I think, the sentiment brilliantly when he said during that visit, we welcome the religious pilgrims, we welcome Iranian money, we welcome Iranian goods and services, but we don't want the Iranian bombs nor those trained in Iran.
(END VIDEO CLIP)
PHILLIPS: Well, what a difference a year makes. Now the U.S. is taking a less hard line policy toward Iran. President Obama says he's looking for opportunities to have face-to-face dialog, but still has deep concerns about some of Tehran's actions.
(COMMERCIAL BREAK)
PHILLIPS: What are you working on, Ricardo?
RICK SANCHEZ, CNN ANCHOR: This vote. This is the big political story of the day. What's going on in the full House today.
They just took the vote. We're looking at some of the numbers here - 398 for, about 93 against. That means a whole lot of republicans voted for this thing, Kyra. And what's interesting, how do you get the money back? We're talking about 165 million? A hundred and sixty-five million dollars that they want to give back?
PHILLIPS: And do you really think you're going to be able to get that money back? I mean, let's be realistic here. What are the odds that we're really going to get that money back?
SANCHEZ: Well, they're not going to get that money. They're going to tax the hell out of them, that's what they're going to do. They're going to say, OK, look, you get your money, and as soon as you get it, we're going to tax you 90 percent. Which means, essentially, you're going to have end up having to pay it all back.
PHILLIPS: Let me throw something out. SANCHEZ: Please.
PHILLIPS: OK, let's say Liddy came forward yesterday, Edward Liddy, saying, hey, I have some of my employees at AIG that already gave the bonus back. OK. So are they going to be taxed as well, if they gave the money back?
SANCHEZ: Obviously not. And obviously this thing gets complex. And you can throw another wrench into the system. Most of these guys don't even live in the United States. They live in Great Britain. So there are different rules they're going to be ascribing to.
And you're right. And this is the thing that Liddy brought up yesterday and this is also something that President Obama brought up yesterday in that news conference he had outside with all the reporters where he said, look, we could end up spending more time and more money in court trying to fight this thing than it's worth. Let it go. And in the end, a bigger problem is getting rid of greed and fixing the banks.
That's his argument. But there's some folks in Congress who obviously aren't buying it. It seemed like this is a democratic-led bill, but republicans - again, let me look at that number for you, 328-93. Looks like both parties have signed on.
And what we're going to do in this newscast, as we've been doing all week long, is holding the feet to the fire of these sons of guns in Congress. Because for the last ten years many of them have been getting money from the same financial institutions, Kyra, that they're now so outraged about.
PHILLIPS: Tell you what, if these people were prosecuted, we'd see an end to this. That's the only way it's going to happen. They have to know that there's an end to the means. See you in a little bit.
SANCHEZ: We'll see you in a little bit, all right?
PHILLIPS: All right.
School's financial aid, not going to a student, but her dad, paying his bills while he looks for work.
(COMMERCIAL BREAK)
PHILLIPS: Well, as part of our "ROAD TO RESCUE" coverage, we're reporting on solutions to the financial crisis. CNN's Allan Chernoff has the story of a New Jersey school supporting not just the students, but their families as well.
(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)
CHERNOFF: Indeed, Latina has high hopes. She says, when she grows up, she wants to be a journalist - Kyra.
PHILLIPS: All right, and I bet she will. Allan, thanks.
NEWSROOM continues now with Rick Sanchez.
