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Tent City in Sacramento to be Shut Down; AIG May Have Paid Out More Bonuses Than Previously Known; Small Luxuries Are Big Winners Even in These Tough Times

Aired March 21, 2009 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: As if 165 million dollars didn't make you angry enough, get ready. The amount of bonus money possibly paid out to AIG employees may be even higher.

And in from the cold; bowing to worldwide pressure, a tent city for the homeless is coming down.

And small luxuries that are big winners even in these tough times.

Hello, everyone. I'm Fredricka Whitfield, and you're in the CNN NEWSROOM.

Brace yourselves; insurance giant AIG could have paid out more in bonuses than we thought. Connecticut's attorney general tells CNN documents show the figure is more like 218 million dollars, not the 165 million dollars that we've been hearing.

(BEGIN VIDEO CLIP)

RICHARD BLUMENTHAL, CONNECTICUT ATTORNEY GENERAL: Our concern is that there may be a failure previously to account for all the bonuses. And we want to know that we have a full accounting at this point. If the numbers are changing, we want to know what number is accurate, what time period are covered. But most important, how we recover that money, because these bonuses never should have been paid.

Whatever the amount, we want the money back and we want to block additional bonuses in the future.

(END VIDEO CLIP)

WHITFIELD: Connecticut and 19 other states, the ones in blue here on this map, have announced official investigations into the bonuses. AIG Spokesman Mark Haire tells CNN the confusion surrounds 59 million dollars in bonuses paid out in December. The 165 million dollars causing the big outrage was given this month.

All right, tonight, Ali Velshi and the CNN money team search for the truth inside AIG the scandal. See what they found in "AIG Facts and Fury." That's tonight at 8:00 Eastern.

President Obama is trying to shift attention to his efforts to get the country's economy moving again. His budget is now before Congress. CNN's Kate Bolduan is at the White House. So we're in for a lot of budget talk and this is really just the beginning, isn't it?

KATE BOLDUAN, CNN CORRESPONDENT: Quite a lot of budget talk, exactly. The non-partisan Congressional Budget Office came out with a report Friday saying President Obama's budget proposal could produce more than a nine trillion dollar deficit over the coming decade. That's more than two trillion more than what the administration projected.

But despite that major difference, President Obama today in his weekly address is standing by and defending his budget, as well as his budget priorities. Listen here.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: With the magnitude of the challenges we face, I don't just view this budget as numbers on a page or a laundry list of programs. It's an economic blueprint for our future, a vision of America where growth is not based on real estate bubbles or over-leveraged banks, but on a firm foundation of investments in energy, education and health care that will lead to a real and lasting prosperity.

(END VIDEO CLIP)

BOLDUAN: You hear right there some of the main budget priorities that President Obama says he's going to keep pushing forward with. It's not the time to put the brakes on that. Also, we should mention, part of that, Fredricka, as we talked about over the last month, is that he wants to cut the deficit in half by the end of his term. Right now, we'll see how that goes. We are hearing already on Capitol Hill some unease now with these new CBO numbers coming out.

WHITFIELD: And also some unease from the Republican party in particular. Haley Barbour today coming out, saying this is just not a good formula. What gives?

BOLDUAN: Well, Haley Barbour is kind of sounding, reiterating the call many Republicans have right now, saying that President Obama's budget and his economic plans in general, either taxing too much, spending too much and borrowing too much, using these CBO numbers really to say, hey, this is a wake-up call. This is really going to hurt the country in the long run. That's what Republicans are saying. We can expect to hear some very tense debate on Capitol Hill coming soon.

WHITFIELD: Putting it gently. Kate Bolduan, thanks so much, appreciate it, from Washington.

This is President Obama's 61st day in office. And he's at Camp David. The president plans to be back in Washington on Monday. On Tuesday, he welcomes Australia's prime minister to the White House. That evening, he's scheduled to hold a prime time news conference in the East Room. And then Wednesday, he'll be talking budget with Senate Democrats.

Well, CNN is your place to see and hear the president's prime time news conference, set for, again, Tuesday night. The best political team on television will be covering all the angles before and after the news conference, which begins at 7:45.

A developing story in eastern Pennsylvania, where roughly 5,000 people have been evacuated after a tanker overturned while carrying a corrosive type of acid. It happened about 11 hours ago near Wind Gap, creating a traffic jam. Clean-up is currently under way. But it could be tomorrow before it is all finished.

Well, Spring has sprung. That's good. But it also means it has unleashed some flooding in certain parts of the country.

(WEATHER REPORT)

WHITFIELD: A day after President Obama's overture to Iran, the country's supreme spiritual leader issues a swift rebuff. Ayatollah Ali Khomeini says that rhetoric alone won't change things between the Islamic Republic and the U.S. But he did promise his country would respond in stance when the United States changes its stance toward Iran. The Ayatollah made the comments this morning to thousands who are celebrating Iranian new year.

The U.S. State Department is scrambling to help these two young ladies; two U.S. journalists being detained in North Korea. Two online female reporters for "The Current" were picked up by guards while filming near the China/North Korea border on Tuesday. North Korea says they were detained for illegally entering the country. "The Current" is a Web site co-founded by former Vice President Al Gore. Mr. Gore has asked Secretary of State Hillary Clinton for help. Right now, officials are trying to determine which side of the border the women were actually on when they were captured.

We've got new video of that standoff between the Navy and five Chinese ships in the South China Sea earlier this month. The Pentagon released these images of the tense moments from the United States Navy's Impeccable, which is a survey ship. China's government accused the U.S. of violating its laws when the Chinese boat surrounded the vessel and tried to capture its towed sonar array.

Homeless in Sacramento; people have been crowding into what's become known as the tent city. Now the city's mayor says he has an answer.

(COMMERCIAL BREAK)

WHITFIELD: I-Reporters are sharing their frustrations about the tight economy and the uncertainties that go along with not having a job.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So in case you haven't noticed, our economy sucks. There's so much going on. It's so frustrating. So, one, I can't get a job. Two, my school is on hold. Three, I can't get an internship. So it's like what do I do with my time? It's frustrating going to jobs and being turned down because they aren't hiring. And it's just frustrating.

(END VIDEO CLIP)

WHITFIELD: All right. Well, a lot of people are feeling very frustrated like that. How do you turn lemons into lemonade? As we heard from that i-Reporter, he used the word it sucks a lot. Michelle Deangelis is the author of the book "Get a Life That Doesn't Suck." She has spent years studying the secrets of a positive attitude. She is joining us now from sunny Los Angeles.

How can you not be upbeat if you're living in Los Angeles, right? That's for starters, Michelle.

MICHELLE DEANGELIS, CAREER COACH: Exactly right. Great to be here.

WHITFIELD: What advice do you have perhaps to the young man we just heard? He went down the list of all the things he is unable to attain right now. A job, for one. It's hard to be upbeat right now. What's your best advice?

DEANGELIS: You know, I'm seeing -- small consolation maybe to him. But I'm seeing, in corporate America and with individual across the country that I'm coaching, something I've never seen before. People are really second-guessing themselves on everything. So my suggestion is that people learn exactly what works for them for their coping skills, and they focus on the solution, not the problem.

WHITFIELD: OK. And that really means kind of being in check with yourself, focusing on the solution. And it's hard to look at the solution when all you're getting is kind of maybe a lot of negative feedback. So what are some steps that you might take me through to help me if I'm feeling pretty down in the dumps to be upbeat and to only think about the positive?

DEANGELIS: Well, the first thing is cut out all the negative crap. Get rid of the negative thoughts you hold, the actions you're doing, the people that you surround yourself with. Be very on purpose to -- instead of saying, I'll never get that promotion or I'm going to lose my job, it's I can do this. I will add value. It's coming up with ways that you can talk to yourself, that you can show up in life and demonstrate that you're positive and get away from the energy suckers that are constantly complaining.

WHITFIELD: Yes. It's really interesting. You said, you need to be a little more careful about who you're associating with. Yes, this person is your best buddy, but if it's always down, down, down, time to eliminate that person. Surround yourself by a lot of positive people, for one. You say think good thoughts, thoughts that affect your life. And you need to do it now, as opposed to putting it off to tomorrow.

DEANGELIS: Yes. A technique that I developed in working with my clients that is based in science and is a foolproof way to deal with some of the aggravation and the unexpected problems that can come flying at you, whether it's at work or at home or in your commute, is called the back technique. It stands for breathe, acknowledge, choose and kick into gear.

And what the breathing does -- it sound very simple, and it is amazingly effective. Science has proven that if you can create a half of a second delay between stimulus and response, between problem and how you respond to it, that you can get the harsh emotional reaction out of the way, and let the more sophisticated reaction come in.

So that first step of taking a breath is actually guaranteeing your success in handling that problem.

WHITFIELD: It's interesting to hear you articulate it that way, because that's really one of the premises, really at the core of, say, yoga, you know, that breathing. And people who do yoga will always tell you, particularly after the breathing exercises, how much better they feel.

DEANGELIS: Well, it does so many things, other than just oxygenate your brain, which lets you think better in the first place. But it releases endorphins. It boosts your immune system. It does amazing things.

Just to continue with that, after you breathe, it's acknowledge what you're feeling. Oh, my god, I just got a pink slip, or I can strangle her, whatever the emotion is. And then, C, is choose how to respond. Choose what you want to have happen. And so many people think they have no choice. They think they just can fly off the handle. There's a much better way to do it.

K of the B-A-C-K is kick into gear and act on that choice.

WHITFIELD: OK, begin with that positive thinking. Michelle Deangelis, love it, author of "Get a Life That Doesn't Suck, Remaining Positive During Difficult Times." Appreciate it.

This afternoon at 4:00 Eastern, join me for "Jobless, Not Hopeless," really carrying that kind of theme. Yes, times are tough, you've lost your job. But we meet a number of people and introduce them to you, who say they're not without hope. We'll be joined by a job recruiter, as well as a life skills coach, as well as an employer. All of us will be talking in the 4:00 Eastern hour about the things you can do to try to nail that job down.

Weekends@CNN.com. We're inviting you to send your e-mails as well as your i-Reports.

New hope today for the homeless living in a tent city in Sacramento, California. After worldwide media attention, the city says it is shutting down the tent city. Steve Large of affiliate KOVR reports from Sacramento.

(BEGIN VIDEOTAPE)

STEVE LARGE, KOVR REPORTER (voice-over): You'd never know it was here if you didn't look for it. On the other side of the train tracks, under a slew of smud power lines, and now in the focus of national and international media crews, it is a city of tents. This is the unofficial mayor, Rico.

RICO, MAYOR OF TENT CITY: A lot of these people around here, they consider this home. And they really mean it. Some of us, we're trying to get the hell up out of here, you know.

LARGE: And now the real mayor has a million dollar plan to clear it out.

MAY. KEVIN JOHNSON, SACRAMENTO: You've got to have tough love and we have to be very compassionate.

LARGE: The homeless here will be given choices. Cal Expo Shelter, churches, community centers, and permanent housing solutions will all be made available.

UNIDENTIFIED MALE: Still not -- not going to work, man.

LARGE (on camera): The city says about 150 people live in this area that's become known as tent city. But if you ask the people living here, they'll tell you that number is a lot higher, maybe as high as 250 or 275. And about another seven people move in every single day.

(voice-over): One welcome addition on this day, Port-O-Potties, rented by a Sacramento Pastor Darrell Wilhelm (ph). If the city has its way, they won't be need for long.

UNIDENTIFIED MALE: The city has got a plan in place, from what I understand. I haven't seen a lot of action in terms of the plan.

LARGE: But Mayor Johnson is calling on everyone to keep watch.

JOHNSON: And I challenge everybody who came from international, national, "New York Times," L.A., come back six months from now, do a follow-up story.

(END VIDEOTAPE)

WHITFIELD: And a few other facts about Sacramento. It has one of the highest mortgage foreclosure rates in the country. And some estimate that the number of homeless has increased 10 percent in the past year.

All right, most of us may not be living in the lap of luxury these days. But we'll tell you how you can afford to treat yourself on just a few dollars.

(COMMERCIAL BREAK)

WHITFIELD: Quick look at the stories making news across America. A private funeral for actress Natasha Richardson will reportedly take place tomorrow in upstate New York. Her husband, actor Liam Neeson, led a private viewing in her honor Friday in Manhattan. Richardson's mother, actress Vanessa Redgrave, as you saw there, was also there. Richardson hit her head on the ski slopes last weekend. She died a few days later from bleeding on the brain. Hero of the Hudson pilot Sully Sullenberger plans to write his autobiography, of course. He'll return to the cockpit for U.S. Airways this summer.

Then take a look at this. Oh, yes, a couple of bride-zillas, if ever we've seen it before. Yes, they're fighting there over a dress or two, at the Discount Bridal Shop or what's become a discount bridal shop, Filene's. This is happening in Atlanta. They're not apologetic about it at all.

As you can see, dozens, if not maybe hundreds of folks, turned out for this annual running of the brides at Filene's. Usually, we're used to seeing the Filene's running of the brides up north in New England. But this time taking place in Atlanta.

All right. The Feds shut three more banks, First City in Georgia, Colorado National and Team Bank in Kansas. Depositors will get checks from the FDIC or have their accounts moved to another bank. And regulators seized two wholesale credit unions, U.S. Central Federal Credit Union in Kansas and Westcorp in California. These companies provide loans and services to retail credit unions.

The Post Office already wants to cut back on mail delivery by one day. Now it's slashing jobs to save money. More than 3,000 jobs, mostly in management, are being cut. And early retirement is being offered to about 150,000 people, nearly a quarter of its workforce. The changes are expected to save 100 million dollars a year. The Post Office lost almost 400 million dollars last quarter alone.

All right. This we know: people are cutting back on a lot of things. But indulging in small luxuries in this battered economy -- and there are some winners in this economy. Let's check in with our Nicole Lapin, who is keeping tabs on all this. I can't wait.

NICOLE LAPIN, CNN CORRESPONDENT: Somebody e-mailed this story. I thought you'd be really interested in hearing the top ten winners of the recession. So let's go down.

Number ten is at-home coffee makers. Because think about those four dollar lattes. You don't want to spend four dollars on a latte these days. So Mister Coffee Makers are selling these things faster than the company can ship them.

No big surprise here, career development Web sites traffic has been way up on the Monster.coms of the world, the CareerBuilder.coms of the world. The old-fashioned way is also up to. Borders is saying that a lot of their career books are also up.

Mickey D's, not great for the waist line --

WHITFIELD: And not cheap like it used to be, but it's cheaper.

LAPIN: It is cheaper. A lot of fast food chains are up. Sales in McDonald's rose 6.8 percent in February.

Chocolate -- it's all part of the lipstick index. Little things that you want to get that make you feel good, smaller indulgences. Hershey's earnings up 15 percent in the fourth quarter.

WHITFIELD: Chocolate, food for the brain.

LAPIN: Yes, it is, and the soul. Public universities; I cry just a little bit every time I pay my student loan check. Northwestern is a great university. That's my alma matter. It is a private school. Now public schools are seeing an increase in their applications. The UT system, the Connecticut state school system as well. A lot of people want to get their education, but they don't want to be paying for it for the rest of their lives.

That was ten through six. Next hour, we'll go down -- Fabio is winning in this recession.

WHITFIELD: I was about to ask why, but that's the tease. I'll wait. Nicole Lapin, thank you so much. See you again shortly.

Spring fever, it's spreading in other ways. But will the recession stall the cure? Next on CNN, the Spring Break destination that is counting on college kids and one that isn't.

(COMMERCIAL BREAK)

WHITFIELD: Thirty minutes after the hour on this Saturday. Here's what's happening right now: President Obama makes a pitch for his big budget in his weekly address. He says the goal is to fix what needs to be fixing.

(BEGIN VIDEO CLIP)

OBAMA: The challenges we face are too large to ignore. I didn't come here to pass on our problems to the next president or the next generation. I came here to solve them.

(END VIDEO CLIP)

WHITFIELD: All right. The president plans to hold a prime time news conference next Tuesday. Expect some questions about the brouhaha over AIG bonuses. Twenty states, the ones highlighted in blue right here on this map, have announced officials investigations into those payouts. Connecticut is one of them. Its attorney general says documents appear to show AIG may have paid more than previously reported.

(BEGIN VIDEO CLIP)

BLUMENTHAL: We're asking companies all of the numbers, which appear to total 218 million dollars. If this money is taxpayer- funded, it certainly raises the total amount from 165 million to 218 million. And we believe the company ought to be accountable to explain why there is this discrepancy in the documents that they have provided in response to our request and subpoenas.

(END VIDEO CLIP)

WHITFIELD: An AIG spokesman tells CNN the confusion may involve 55 million dollars in bonuses paid out before the end of last year.

Well, many blame most of AIG's woes on the dubious dealings of its financial unit. It is located in the heart of London's Mayfair District. Once the home of some pricey office space, now Mayfair is suffering hard times.

Here is our Jim Boulden.

(BEGIN VIDEO CLIP)

JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT (voice-over): If you shopped along Bond Street or Sadill (ph) Road, if you parked your Maserati in front of Claridge's (ph), if you bought a Havana cigar on Mount street, stayed at the Dorchester or even played Monopoly, you know Mayfair, London's premier address place to spend and invest money.

SIMON TANN, CB RICHARD ELLIES: Mayfair is the heart of the West End. It's where office occupiers really want to be. It's the center. It's where businesses want to be.

BOULDEN: Especially many of the boutique hedge funds, private equity firms and private banks. Bernie Madoff's London address was Mayfair. Now his former office and a few others are back on the market. Mayfair is no longer the most expensive place in the world for premium office space.

TANN: The hedge funds and others are not demanding as much space. Rents have fallen by up to 25, 30 percent from the end of last year. And suddenly I think parts of Mayfair are becoming affordable again.

BOULDEN (on camera): Possibly the most famous and currently most infamous address in this part of London is One Korzen Street. It houses the Mayfair Offices of AIG. More specifically, it's where the AIG Financial Products Unit is located. It's been blamed for much of the losses suffered by the insurance giant and where some of those infamous bonuses have been paid.

AIG is just one of the big financial houses with their discreet arms in Mayfair.

STEPHEN DECANI, CEO NEWSCAPE CAPITAL GROUP: For guys like UBS, the private banks have always been a little more touchy friendly. Therefore, this makes perfect sense. That's a long-standing decision. Guys like AIG and a lot of the bigger banks, I think the teams spinning really out want to be in the heart of hedge fund territory.

BOULDEN: Here the tie comes off and clients can walk from their pricey flats or hotels to see their bankers and then walk to lunch. No surprise, then, with rents falling, firms that were locked out are looking to move in.

DECANI: I canvassed some of the guys in the office the other day and said, where do we want to be? We can get a fantastic deal in the city now or we can wait around and see what comes up in Mayfair. They said we understand we need to manage costs, but if we can be in Mayfair, we'd prefer it and the clients prefer it.

BOULDEN: So Mayfair is suffering a bit of its own recession. But it is Mayfair, after all, and it won't take much to rebuild its reputation.

Jim Boulden, CNN, London.

(END VIDEOTAPE)

WHITFIELD: Tonight, Ali Velshi and the CNN money team search for truth inside the AIG scandal. See what they found in "AIG Facts and Fury," that's tonight at 8:00 Eastern.

Germany is a nation in mourning today after a deadly school shooting. A Catholic priest lit candles for the nine students and three teachers killed in last week's shooting in southwestern Germany. Some 900 people joined friends and family members of the victims in the packed church. There are still some unanswered questions about the 17-year-old former student who killed himself during an exchange of gunfire with police.

New attacks in eastern Afghanistan kill 11 people. NATO says six died when a car bomb exploded at this police checkpoint outside the city of Jalalabad. That's near the border with Pakistan. Afghan police say most of the other victims were killed by a blast near a shrine. That attack happened south of the capital of Kabul.

Believe in Christ instead of witchcraft? That's the advice from Pope Benedict XVI, as the Pontiff continues his week-long visit of Africa. Today in Angola, the Pope appeared to the nation's largely Catholic population to embrace non-believers and to act as missionaries.

FEMA officials are en route to North Dakota, where flood watches are already in effect. And as we get reports of the evacuations, our meteorologist Jacqui Jeras also has her finger on the pulse there.

(WEATHER REPORT)

WHITFIELD: Florida's tourism business is battered and bruised. Will Spring Break make it any better? Here now is CNN's John Zarrella.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN MIAMI CORRESPONDENT (voice-over): Robert Catcherson (ph) rents rides on Daytona Beach.

UNIDENTIFIED MALE: Welcome to Daytona.

ZARRELLA: ATVS and golf carts.

UNIDENTIFIED MALE: Recession special, 40 dollars an hour.

ZARRELLA: These days, Catcherson is in a pretty good mood. The college crowd has arrived just in time. Local promoters say winter tourism is down about 12 percent. So merchants were hoping for a high octane Spring Break.

UNIDENTIFIED MALE: It has. It has already. We hoped it would, and it has.

ZARRELLA: Some of it from kids who this year crossed Mexico off their list.

UNIDENTIFIED FEMALE: Cancun, which, you know, the violence and stuff, we didn't want to go there.

ZARRELLA: Tourism officials say it's too early to tell how many and too early to tell how much of a boost, if any, they'll see from the spring breakers because --

UNIDENTIFIED MALE: Stop breathing, you're breaking the sand.

ZARRELLA: They don't break the bank. The sun, sand and surf are free.

(on camera): You spending any money? You helping the economy?

UNIDENTIFIED FEMALE: We're trying to spend as little as possible.

ZARRELLA (voice-over): With tourism, Florida's number one industry, struggling, you would think the kids would be embraced everywhere. In Ft. Lauderdale, the Visitors Bureau says tourism revenue is down one billion dollars this winter alone. Budget shortfalls even forced the closing of this beachside park on Tuesdays, leaving the county beach empty.

UNIDENTIFIED FEMALE: This is the clearest visual message that the economy sucks right now.

ZARRELLA: Still, Nikki Grossman and the Convention and Visitors Bureau she heads, doesn't want the kids. Even putting out a press release, quote, "bad economy or not, greater Fort Lauderdale steadfastly says no thanks to Spring Break."

UNIDENTIFIED FEMALE: Even in this downturn, we're not turning back and heading back, where we've been there or done that.

ZARRELLA: At its height in the 1980s, this was the spring break Mecca. Nearly 400,000 kids came here every year, drank a lot, didn't spend much and left a mess; 15,000 are expected this year. And tourism officials say that's just fine.

Not for everyone; Pro Dive International, which this year advertised on Spring Break Web sites, has seen its business go up 200 percent.

KELLY LEVENDORF, PRO DIVE INTERNATIONAL: I think right now, absolutely, 100 percent attributable to the spring break crowd.

ZARRELLA (on camera): So they're good for you guys?

LEVENDORF: They're great for us.

ZARRELLA: But they won't be welcome here as long as bronze, not green, is the college color.

John Zarrella, CNN, Ft. Lauderdale.

(END VIDEOTAPE)

WHITFIELD: All right. Not all of the hospitality industry is hurting. In fact, one adult entertainment club in Providence, Rhode Island, is holding a job fair. No kidding, a job fair this afternoon. The owner of the Foxy Lady is looking to hire 25 to 30 people. Not all applicants need to bare all, so to speak, to get a job. The club is looking for managers, waitresses and back of the house positions. Not sure what that means. Hmm.

All right, scamming Uncle Sam and you. Thousands of people have their identities stolen, then they lose their tax refunds.

(COMMERCIAL BREAK)

WHITFIELD: Thousands of taxpayers won't be getting a refund this year. And it's not because Uncle Sam doesn't owe them. It's because someone stole their identity and then their checks. Abbie Boudreau from CNN's special investigation unit has this story.

(BEGIN VIDEOTAPE)

ABBIE BOUDREAUX, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Brenton King is a 25-year-old father and husband. He says he was only 17 when someone stole his wallet and his identity.

BRENTON KING, FATHER: I started receiving letters from the IRS, and the letters were asking me to pay taxes for a lot of income.

BOUDREAU: King says for years, at least five people used his Social Security number. And since the criminals earned income on his number and never paid their taxes, the Kings can't get any tax refund from the IRS or their government stimulus check.

JENNIFER KING, MOTHER: We want to put that in the bank. We want to be able to put money down on a home.

BOUDREAU: The Federal Trade Commission says more than 50,000 Americans have fallen victim to this type of identity theft. It's a way for criminals to file false tax returns, so they can get refunds or evade taxes altogether.

J. KING: From before we even file our taxes, we know we're not going to get anything back. That's really frustrating.

BOUDREAU: King says when he went to the IRS to report the problem, no one believed that he was the real Brenton King. Senator Chuck Grassley says he feels the IRS is not doing enough.

SEN. CHUCK GRASSLEY (R), IOWA: They aren't going to prosecute, and that's not very helpful. It sends a signal that you get a free pass if you're doing identity theft using IRS instruments.

BOUDREAU: National taxpayer advocate Nina Olson helps taxpayers solve problems through the IRS.

NINA OLSON, NATIONAL TAXPAYER ADVOCATE: We see a lot of activity now because clearly folks who are trying to perpetrate a fraud have to get their refund -- their claims in early before the true taxpayer files their return.

BOUDREAU: Olson says there is help for the Kings through her office. Brenton King says he just wants his life back, and that stimulus check.

B. KING: The fear is that it will happen for the rest of our lives.

BOUDREAU: Abbie Boudreaux, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: Free tax help is actually being provided right now at hundreds of sites across the country, as we're just a few weeks away from tax-filing day. All of us need help. Joanna Smith-Ramani is offering her help at a Baltimore economic fair today. Good to see you.

I think people get nervous this time of year, because if they're doing it on their own, preparing their taxes, they're afraid they'll do something wrong. If they want to go to somebody, they're not sure they can afford it. Help me out. Where do we find the happy medium? How can you afford it or make sure you get it right?

JOANNA SMITH-RAMANI, DIRECTOR, BALTIMORE CASH CAMPAIGN: Sure. I think what a lot of people doesn't know is that around the country, like here in Baltimore City, there's free help through the taxpayer assistance programs called Vita programs. They're with non-profits and local government agencies, just like we're doing here. And it's free tax assistance for people under 42,000 dollars a year.

What it means is that certified volunteers can help you go through the tax code and understand it. So even if you're a little intimidated by it, we'll make sure you get all the refunds you're owed.

WHITFIELD: OK, Vita, Volunteer Income Taxpayer Assistance, how do you find this in your area?

SMITH-RAMANI: You can either go to IRS.gov or Tax-Coalition.org. And that's nationally where there's a program locator. So people can connect to places like Baltimore Cash, but in their local community. And it's a free service.

WHITFIELD: That's even better. I want to remind people at the end of this segment. OK, so 42,000 dollars or less you can get this kind of assistance. So there at this fair, where you're talking about tax incentives, how do you prepare your taxes, as well as any kind of economy-related questions, what are people approaching you with? What kind of questions? What are they saying?

SMITH-RAMANI: About their taxes? Well, they're so curious about the economic stimulus and how those new tax changes can impact them. The news is that most of them are great, and they're going to help working families. But it's actually next year. So this year the tax code is pretty much the way it is. But they really want to know. You know, there's a lot of scams out there to take people's economic stimulus money and say, we'll get it for you fast. We'll get it for you now, while the reality is --

WHITFIELD: And in fact, these scams are on the rise in so many different ways. Almost like, I guess some might compare to sort of check-cashing services, especially if you're on limited funds. You go there and they take a fee.

SMITH-RAMANI: And they strip away at your refund. And it's a predatory service. What we say to folks is try to find a community tax preparation site in your community. Those volunteers are certified. They're well trained and the IRS monitors our program. So we know we're doing the right taxes for you.

But, also, you know, if you get a letter in the mail that says we can help you get your economic stimulus money now, that's just not true. The hype -- if it looks too good to be true, then it is not what you want it to be. It's a scam, and they're out there to take your money. And ultimately, you're the one that's responsible for your tax return. They're not going to sign it. The IRS is going to go after you.

WHITFIELD: Joanna Smith-Ramani, thanks so much. Those scams, those frauds, that is illegal. Check-cashing businesses I mentioned, they're not illegal, but it does mean that often people with restricted incomes end up -- it ends up costing them much more to cash those checks. IRS.gov and Tax-Coalition.org for some guidance on all of this. Thanks so much. Appreciate it. Have a great Saturday.

SMITH-RAMANI: Take care. Thanks, you too.

WHITFIELD: All right, school financial aid, it's not going to a student but her dad, paying his bills while he looks for work.

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WHITFIELD: In these tough economic times, so many people need a helping hand to get back on their feet. And that help can come from some surprising places.

CNN's Allan Chernoff shows us one school that reaches beyond the classroom to help the kids.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SENIOR 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 back seat for a brief ride to school. Eleven-year-old Latina, the eldest, is dropped off last at St. Phillips Academy. It's a private school for promising children, where she's thriving while attending on a full scholarship.

LATINA RANDALL, STUDENT: We get treated like a family, so everyone is treated like brothers and sisters and everyone is treated equally.

CHERNOFF: Latina began attending St. Phillips last fall, several 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. Phillips 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, FATHER: I feel so honored. I mean, I start crying. I formally don't cry, but I was shocked, you know, that -- you know, so --

CHERNOFF (on camera): What did that say to you about this school?

RANDALL: I love it. I mean, that was the best choice I made.

CHERNOFF: Tim Randall's situation struck at the core of St. Philip'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. Philip's provides a safety net for its families.

MIGUEL BRITO, HEADMASTER, ST. PHILLIPS ACADEMY: We have a fragile population. Your car breaks down, you can't go to work, you lose your job, then 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. Phillips relies, are down about 30 percent this year. But individual donors like David Farrand are opening their wallets so parents can provide a safe home for their children.

DAVID FARRAND, ST. PHILLIPS DONOR: St. Philip's, if we want to keep our focus on the child, has to step up and do whatever he 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. Phillips. It's a commitment to a child's potential, and a pledge that this recession won't destroy their hopes and dreams.

(END VIDEOTAPE)

WHITFIELD: All right. That was Allan Chernoff reporting.

A Milwaukee man is thinking big in his attempt to land a job. Mark Hauer bought ad space on a billboard. The father of three children says he hasn't worked in six months. The billboard has only been up for a few days now, but Hauer is already getting responses on his Web site.

(BEGIN VIDEO CLIP)

MARK HAUER, JOB SEEKER: I've gotten three solid interview responses, with a potential fourth coming up this week. But I also have had opportunities where people have contacted me from afar just to say, you know, wow, I'm inspired by your story.

(END VIDEO CLIP)

WHITFIELD: Wow, pretty inventive. Hauer has experience in sales, but his last job was assisting U.S. troops in Iraq for a contractor in a detainee camp.

And this afternoon at 4:00 Eastern, join me for a great discussion on being jobless but not hopeless, just like Mark there. He's not hopeless. We follow the unemployed from the job center and job fairs to an actual job. It may take some time, but you can be along with us. We're going to have a recruiter, a life coping skills expert and people who are unemployed all to talk about how you can be jobless and not homeless -- hopeless, rather, at 4:00 p.m. Eastern, right here on CNN. Send us your e-mail questions at Weekends@CNN.com.

Coming up in our next hour, the tough economy is putting the brakes on a lot of ambitions, but not for one young Nascar driver. He's hitting the track today in Tennessee.

And need a job? Enrollment is way up at nursing schools. We'll tell you about one profession where business is still booming.

And teaching teens to save. Introducing today's youth to an old- fashioned concept at 3:00.

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