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Budget Proposal Battle; Head Trauma; AIG Bonus Investigations
Aired March 21, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN HOST: OK, well, not so happy things taking place across the country financially. Big problems often require pretty big solutions, but as the red ink flows, GOP concerns grow that President Barack Obama's proposed budget is little more than a spending spree, but today in his weekly address, President Obama says he has the nation's priorities in order.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D), UNITED STATES PRESIDENT: With the magnitude of the challenges we face, I don't just view this budget as a number 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 overleveraged 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)
WHITFIELD: Republicans quickly responded with Mississippi governor, Haley Barbour that the Obama plan is not the right choice for America.
(BEGIN VIDEO CLIP)
GOV HALEY BARBOUR (R), MISSISSIPPI: President Obama's budget spends too much, taxes too much and borrows too much. It's breathtaking. The new administration's budget for next year alone calls for a $1.2 trillion deficit, nearly triple any past federal deficit. While families are cutting back President Obama's proposed a massive government spending spree.
(END VIDEO CLIP)
WHITFIELD: CNN's Kate Bolduan is live for us in Washington with more on this back and forth partisan battle over the president's budget proposal.
So, Kate, what is this all about, really?
KATE BOLDUAN, CNN NEWS CORRESPONDENT: It is all about the budget, Fredricka and specifically a report out by the Congressional Budget Office, Friday. The CBO is pretty much saying in their estimation that the president's budget proposal may be overly optimistic as they estimate in their best guess just as any budget proposal really is, is that over the next decade the deficit will reach $9 trillion. That would be more than $2 trillion more than what the Obama administration is expecting. Right there, there is a difference and quite a big difference and that's what Republicans are jumping on saying this is a wake-up call to put on the brakes and look at the spending before it gets more out of control, in their argument.
WHITFIELD: And so the response from the administration on these numbers?
BOLDUAN: Well, the White House press secretary, Robert Gibbs, Friday, he didn't come out and reject their report from the Congressional Budget Office. It's a nonpartisan, independent budget office that is well respected, but the administration is still sticking by the president's economic agenda, the economic priorities of that stand in this budget with the acknowledgement that the numbers may change as the president has said, but he's want backing down with his aggressive agenda that he's putting forward.
WHITFIELD: All right, Kate, I understand we have new images of the first family. There we go right there, on their way to where and what?
BOLDUAN: Well, they're going to Camp David, the presidential retreat. You see President Obama there with the first lady and so they're going there for what we hear is going to be a nice weekend away from the White House. But you can be sure that his work is following him there.
WHITFIELD: No Sasha and Malia running in this image.
BOLDUAN: I don't see Sasha and Malia, here. We try not to ask too much about where whereabouts are unless they're with the family, but I'm sure you can anticipate they're either with their parents or with their grandmother.
WHITFIELD: I still like the comment that the president gave when he was on Jay Leno talking about the fascination that I think it was Sasha had with the star bursts on Marine One as opposed to being excited about being on Marine One.
BOLDUAN: She's a kid. What can you? I mean, you know? It's the little things in life. We should all remember that.
WHITFIELD: All right, thanks so much, Kate. Appreciate it.
And of course, CNN is your place to see and hear the president's primetime news conference. It is set for Tuesday 8:00 Eastern. The best political team on television will be covering all of the angles before and after that address.
A day after President Obama's videotaped overture to Iran, a response now from the country's supreme spiritual leader. Ayatollah Ali Khomeini says rhetoric is not enough, but promised Iran will change policy if the U.S. does the same. He made the comment while speaking to thousands of people celebrating the Iranian new year.
In his message, President Obama called for better relations between the two nations grounded if mutual respect.
It wasn't a showdown at sea, but it did cause some tense moments. The Pentagon released new images right here of the standoff earlier this month when Chinese boats surround the U.S. Navy's survey ship, the "Impeccable."
There are U.S. Sailors on the "Impeccable," but most of its crew are civilians. China's government accused the U.S. of violating its laws when the five Chinese boats closed in on the vessel. One Chinese boat tried snagging the cable towing "Impeccable's" sonar equipment, but the "Impeccable" fired its water houses right at it.
An outpouring of tears and grief in Germany, today. The country's chancellor and president are among those paying tribute to the victims of last week's school shooting. Candles were lit in honor of the nine students and three teachers killed by a 17-year-old former student. The gunman killed himself during an exchange of fire with police.
And back here in the U.S. we're keeping an eye on a developing story in eastern Pennsylvania where authorities have evacuated roughly 5,000 people within a mile radius of an overturned tanker that spilled its load of corrosive acid.
It happened roughly before dawn on State Road 33 near Wind Cap, creating the expected traffic jam. North Hampton County authorities say fumes from the chemical spill could cause breathing difficulties.
Cleanup has begun, but it could be until tomorrow before it's all finished. A shelter has actually been set up for evacuees and of course, their pets. We'll keep you posted on that.
More ugly numbers, the government defines a mass layoff as one employer getting rid of more than 50 jobs in one sweep. The Labor Department says there were nearly 2,800 mass layoffs in the month of February alone. That added up to 295,000 jobs lost.
Well, every week more people are losing their jobs, sadly. Some have been without a job for months, but that doesn't mean that they've actually given up hope. Today and tomorrow I'll be bringing you stories of people who are down, but definitely not out.
((BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: A lot of them are going out of business. It's very stressful trying to pay your bills.
WHITFIELD (voice-over): Their stories of how they got here vary, but each of the 10,000 who lined up two hours before doors opened at this job fair in downtown Atlanta, came for one thing.
KIM SUMMEROUR, GRAPHIC ARTIST: I lost my job back in June so I'm looking for something else.
WHITFIELD: Graphic artist Kim Summerour, a casualty of the shrinking newspaper business, laid off without severance after 19 years with Atlanta's leading newspaper. Her weekly $320 state unemployment checks end in May and at 41 she's back home living with her parents.
(on camera): So, it's been about eight months. That must hurt.
SUMMEROUR: Yes, it does. It's hard, but I'm hanging in there. Hopefully I'll find something today.
CALVIN RACHRFORT, ENGINEER: I'm hoping at least by April, no later than May and at that time most employers will start to open up their doors for hiring.
WHITFIELD (voice-over): That's the hope of laid off engineer Calvin Rachfort (ph), as well. He was let go from a private company two days before Christmas, but trying to stay jolly.
Twenty-two-year-old single mother Princess Olivia brought her 2- year-old, now that her holiday season job is over, she's open.
PRINCESS OLIVIA, RETAIL EMPLOYEE: I guess staffing services, clerical, customer service. I would like to sit down and work.
WHITFIELD: This as Georgia's unemployment rate climbs to 9.3 percent compared to the national average of 8.1 percent.
Driver Charles Williams at 57 has been out of work here for two years.
CHARLES WILLIAMS, DRIVER: I'm going to give myself a few months and if not, I think I'm going to move and leave the state.
WHITFIELD (on camera): Really?
WILLIAMS: Yes. So, I'm originally from Jersey, so, I'm either going to go back to Jersey or go with my sister in Oklahoma. I mean, I can't sit here and starve. So, what I have to do what I have to do.
WHITFIELD (voice-over): In the growing crush of anxious Americans out of work, job fairs offer a glimmer, even if only a handful of jobs are available.
Teacher Brian Edney knows the drill. He's lost count of how many job fairs he's attended since December.
BRIAN EDNEY, TEACHER: You begin to see the same people at various job fairs around the city.
WHITFIELD: Even if he leaves empty handed, he is confident networking will pay off.
EDNEY: We kind of have fun with it. We kind of say hi, how are you, we got to stop meeting like this. We give each other tips on what to do and which employers are looking and maybe some tips on what openings may be available given our experience and our qualifications.
UNIDENTIFIED FEMALE: I like what you have here. WHITFIELD: Free how-to sessions and resume rebuilding are features of many job fairs. That's where we noticed 27-year-old Sedgewich Willis. His wife Shiray (ph) and 7-month-old son. The recent college graduate admits it is hard to stay upbeat.
SEDGEWICK WILLIS, COLLEGE GRADUATE: Well, just tell me what's right and wrong, you know? What areas do I need to correct, you know? If I have to re-word it put it in a better format, anything that will help me right now, basically. I'm definitely, you know, I definitely need help. Like I said, I have a family, so definitely I got to support my family. That's, like, the biggest thing, you know? And the biggest concern and problem that I'm having right now.
WHITFIELD: While Willis waits his turn we caught up again with graphic artist Kim Summerour hitting one after another.
SUMMEROUR: ...through the department of labor?
WHITFIELD: Along the way.
SUMMEROUR: You have to have a foreign language for this.
WHITFIELD: A few roadblocks and detours.
SUMMEROUR: Not really looking for a commission-based job, but I went on and signed up for it.
WHITFIELD (on camera): And how are you feeling right now?
SUMMEROUR: No really found I'm really looking for. But, you know, I got to say I'm looking around see what's out here.
WHITFIELD: Still optimistic about the next thing?
SUMMEROUR: Still looking, yeah.
WHITFIELD (voice-over): And trying to do anything possible to stand out in a very big crowd.
(END VIDEOTAPE)
And this afternoon at 4:00 Eastern Time join me for "Jobless, Not Hopeless." We follow the unemployed from the job center to the actual job eventually and you can talk live with people who can actually find you work perhaps if you're looking. Join in on the conversation. We'll have a recruiter and we'll have an employer and we'll have people who are unemployed, some of whom you met in that piece and we'll also have someone who's kind of a life coach to help you cope through all of it. "Jobless, Not Hopeless," today a at 4:00 Eastern, we're taking your e-mails, weekends@CNN.com you're your iReport.com, as well, ireport.com.
All right, saving money, eating healthy, you don't have to choose one or the other.
(COMMERCIAL BREAK) WHITFIELD: Family and friends will say good-bye tomorrow to Tony award-winning actress Natasha Richardson. Her husband, actor Liam Neeson led a wake for his wife in Manhattan just Friday.
Richardson's mother, actress Vanessa Redgrave, also attended, as you see there. Richardson died after she hit her head on a beginner's ski slope in Canada. She seemed fine at first, say a lot of witnesses, but then later she had to be driven two and a half hours away to a head trauma center in Montreal. No helicopter was available. Montreal's top head trauma doctor says that delay may have cost Richardson her life.
So, just how hard do you have to hit your head to get a serious head injury like that? Many of us have been asking that very question all week long upon learning of Richardson's injury and then subsequent death.
Dr. Wendy Wright is a neurosurgeon at Emory University Hospital, here in Atlanta. So good to see you. You've got a model there, too, to help us understand because it's an epidermal hematoma that we're talking about in terms of the cause of death, the bleeding in the brain.
We hear about bunny slope, hitting your head some people can't conceive how could you possibly hit your head hard enough on a slope that is really not very vertical. How does it happen?
DR WENDY WRIGHT, NEUROSURGEON, EMORY UNIV HOSPITAL: Right, for an epidural hematoma, the blow doesn't have to be that hard because what will actually happen is there are arteries that run underneath the skull and if that artery tears then a blood clot will build up under the skull and put pressure on to the brain and it will actually push the brain downward and the skull is protected -- protective of the brain so the brain is encased in the skull, so as the pressure builds up there's only one place for the brain to go and it gets pushed downward and it gets squeezed through this hole at the base of the skull where the spinal cord joins up. Rapidly life-threatening. And if it's impacted not very hard, but just in the right spot where there's an artery running through.
WHITFIELD: It's a particularly vulnerable.
WRIGHT: That's exactly right. So, this is a jus an unfortunate tragedy.
WHITFIELD: So, this really underscores it can happen to anyone and we're just not talking about skiing. You know, you've had your own skiing experience. I'm a skier, but, you know, and I haven't skied with a helmet. I will now and, you know, I'm the mother of a 4- year-old, so I'm thinking about my child when he's on a bike, a scooter, eventually. So, as parents, perhaps, or anybody, what are signs we need to look for? We're definitely hearing the message, helmet, helmet, helmet. But, what do we look for when our kid or someone in our family hits the head, what are the things we look for to see is this serious? WRIGHT: Any neurologic symptom and that specifically means any headache, any confusion, any change in consciousness, a little bit of sleepiness, any difficulty with vision, slurring of the speech, any changes in the movement of the body or any difficulty walking, any weakness or numbness or tingling. Any complaint of any neurologic symptom requires immediate medical attention and that does not mean get your child or your friends in the car and drive them to the hospital. That is 911 ambulance to the hospital.
WHITFIELD: You know what's interesting, say in the case of Natasha Richardson, apparently she was asked and she was like, I'm OK and apparently she was joking, et cetera, so immediately she didn't have anything to offer, I guess, to give people a sign.
WRIGHT: Right, which is unfortunate, but it can happen because even with this model, there's a little bit of space in the skull, so the blood clot can take a little bit of room up, but then as the pressure builds as soon as the symptom is caused it's a race to the hospital, so someone can have life-saving surgery.
WHITFIELD: And I guess the other interesting thing I've heard, too, when you hit your head, the last thing you want to do is allow that person to lie down or take a nap. No.
WRIGHT: Right. That's the last thing you want to do because then you can't keep a close eye on them to see if the symptoms will develop and they can pass away very suddenly in their sleep.
WHITFIELD: All right, Dr. Wendy Wright of Emory University, thank you so much. Always good to see you, as well. We appreciate it.
WRIGHT: Thank you very much.
WHITFIELD: And for sure, when I ski next time. Helmet. Helmet only.
All right, thanks so much.
All right, well, you don't want to try this at home. For months now a Colorado family has actually been able to set their tap water on fire because of natural gas that's actually seeping into the house. Two companies with natural gas welled in the area have pledged to provide water for that family, but no one has been able to pinpoint the source of the leak. That's what we mean when we say don't try this at home. In their case they were able to put a lighter right to their faucet and you saw the flame.
All right, our Reynolds Wolf is in the Weather Center. Gosh, that is very unsettling, isn't it?
REYNOLDS WOLF, CNN METEOROLOGIST: And it can't taste good. You know? Brushing you teeth with it.
WHITFIELD: Can't taste good, that's right.
WOLF: Yeah, that's certainly kind of shocking. I mean, you don't want to mix that with lemonade. Bad mess.
WHITFIELD: And thankfully, we understand that family has not been injured, their health wasn't jeopardized as a result. So, I'm glad they're nipping it in the bud.
WOLF: Absolutely, good point.
(WEATHER REPORT)
WHITFIELD: OK, thanks Reynolds. You know, we all welcome spring and love it, but we know what comes with it is a clash of crazy weather during that period.
WOLF: You bet.
WHITFIELD: All right, thanks so much, Reynolds.
Discovery astronauts are gearing up for a busy day in orbit. Their second space walk is expected to begin later this hour. Stephen Swanson and Joseph Acaba are scheduled to do chores on the backbone of the International Space Station. But, it's not without danger. NASA has the astronauts taking precautions against the possibility of an electrical shock. All of the metal wrist rings on the space suits are actually being covered with insulating tape just to be very, very careful.
AIG bonuses under investigation all over the country.
(COMMERCIAL BREAK)
WHITFIELD: As if from wasn't enough outrage already we have a new development in the AIG bonus fiasco, 20 states, the ones you see in blue, right here, have announced official investigations into the payouts. Connecticut's attorney general has issued subpoenas for AIG's CEO Edward Liddy and 11 other company executives. The state senior senator, Chris Dodd, widely criticized for allowing the bonuses in the first place claims he was misled by Treasury officials.
Tonight, Ali Velshi and the CNN money team search for truth in the AIG money scandal. See what they found, in "AIG, Facts & Fury," a CNN's special report tonight at 8:00 Eastern.
Because now this has become a legal case with the attorney general in Connecticut getting involved among others, we thought we'd turn to our legal guys. Always great to see you. Avery Friedman, a civil rights attorney and law professor, and Richard Herman, a New York criminal defense attorney and law professor. Good to see you, as well.
OK, Richard, I'm going to begin with you because you've been away for a while, so I'm going to begin with you on the heavy lifting with AIG. Why is this now a case that the attorney general would get involved in, at least in Connecticut?
RICHARD HERMAN, CRIMINAL DEFENSE ATTY: Oh, Fred, it's pathetic. It's absolutely pathetic, the 10Q filings by AIG before they voted on the stimulus reflected these bonus payments would be made. The stimulus package specifically included these bonus payments to be made. Congress voted on that and approved this package although the Congress probably never read the proposal that they voted for, then pursuant to the congressional action approving the stimulus and the contracts existing at AIG, the bonuses were paid.
Well, all of a sudden Congress says how could you pay those? Congress authorized it. That was a fiasco the other day. It was disgusting.
WHITFIELD: This is not a legal case. You say this doesn't belong in court.
HERMAN: There is no legal case for these bonuses, they were entitled to be paid.
WHITFIELD: Avery, you agree on this, too.
AVERY FRIEDMAN, CIVIL RIGHTS ATTY: Yeah, this thing has blew up like a tick on Dracula and no one knew what happened.
(LAUGHTER)
WHITFIELD: A tick on Dracula. I hadn't seen that before.
FRIEDMAN: You can't -- article one, section 9 prohibit a legislative action that penalizes something after the fact, so this 90 percent bonus actually may be unconstitutional.
WHITFIELD: Oh, you mean the tax, 90 percent tax.
FRIEDMAN: I'm sorry, the 90 percent tax on the bonus.
WHITFIELD: May be unconstitutional, why?
FRIEDMAN: Because under the constitutional it may be what's called a "bill of attainder." In other words, you can't isolate, pick on a particular group and penalize them after the fact. If the bonuses were paid first and they're trying to tax it after, there may be a constitutional problem.
WHITFIELD: So, there is a third potential legal issue that has been related to AIG which is disregard the contracts. Breach the contracts. I mean, they are contractually obligated to receive these bonuses if the government says, wait a minute, you know, let's break the contracts or the government said they really didn't want to, but if someone is able to move forward on having these contracts broken, would that be another legal case? Can you not break these contracts?
FRIEDMAN: Yeah, I think it would be. I think, if I am a beneficiary of a contract, AIG is saying well, I'm not going to pay the bonus or voluntarily relinquish it. Theoretically, you've got a case. The problem is that if you take the bonus they're going to say good-bye to you.
WHITFIELD: OK. HERMAN: And Fred, Mr. Liddy testified the other day that had he not received...
FREIDMAN: Was that Gordon Liddy?
HERMAN: No, no, no. No, this is a man answer the call to his country...
FRIEDMAN: I know.
WHITFIELD: He's only been on the job as CEO for six months, so...
HERMAN: And reduced the toxic area from 2.7 trillion to 1.6 and they should have applauded him. He testified that had he not paid those bonuses there would have been mass exodus at AIG and the whole thing would have crumbled.
WHITFIELD: Interesting.
FRIEDMAN: I don't believe it.
WHITFIELD: I know, we can go on about AIG because there's a lot of material. But there is at least one other situation that I want to ask you about, we're talking about Justice Ginsburg who, with health matters are rising up once again. What's your concern, Avery, about the direction we're having to go?
FRIEDMAN: Well, it's a precautionary examination, that's all it is. But, it's really an inspirational story, Fredricka, because she looks to former Justice Sandra Day O'Connor who went through the same thing. She's an amazing justice, she's going to be fine. She claims someone will be leaving soon, people suggest it's her, we don't know.
HERMAN: But, the fact that she's fighting pancreatic cancer. I mean, that's one of the most deadly types of cancers. She is doing incredible. She's going to be taking chemotherapies, I guess, on Fridays and the advances in chemotherapy, now if she can tolerate it well. You know, I'm taking chemotherapy right now and one of the ones I take, I can't move. So, the fact that she's going to take it on Friday and report to work on Monday, I'm so proud of her...
FRIEDMAN: You got two heroes. You got Richard and Justice Ginsburg.
WHITFIELD: It really underscores how incredible you are, too, that after you're about month or so, right, of chemo, a little over, you came back and here you are and vibrant as ever.
FRIEDMAN: Right.
HERMAN: I don't know about that.
WHITFIELD: I know you're still continuing the battle...
FRIEDMAN: A couple of real heroes, here. Right. WHITFIELD: No, it's extraordinary and because you have such a load of energy, Richard, you and Avery will be back this hour because we can't get enough of you. We've got other cases we want to delve into, so we'll see you again in a little bit.
All right. Volunteers going door to door for President Obama and we're not even talking about the campaigns. We're talking right now. What is happening?
(COMMERCIAL BREAK)
WHITFIELD: All right, more now on the fallout of AIG and a number of investigations that are under way. We reported to you earlier today that particularly in Connecticut, subpoenas have already gone out and there's also some discrepancy over the bonus payouts that AIG has actually carried out. Has it been $165 million or according to some documents provided by AIG, Connecticut is now saying that documents show that there was a payout of $218 million.
So, how do you make sense of the discrepancy here? Well, we are actually joined by the Attorney General for Connecticut, Richard Blumenthal who's on the line with us now. This is becoming a working weekend for you, Mr. Blumenthal. You're on your way to Hartford.
So, help me understand. Is this indeed a huge discrepancy or does that figure, $218 million simply include the December payout of bonuses, in addition to the most recent March bonuses, which would equal about $220 million?
VOICE OF RICHARD BLUMETHAL, CONNECTICUT ATTORNEY GENERAL: We're asking the company to explain our concern of all of the numbers, which appear to total $218 million. 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 our subpoena.
WHITFIELD: And as I read some information, you know, apparently the "Associated Press" has done some digging and CNN has done some digging as well, that among the 73 employees -- 73 employes who happen to be Connecticut based may have received at least $1 million and there are about seven other people who may have received in bonuses $4 million. So, would it be your concern that perhaps some bonuses because there are a great deal less than others, that some may not be accounted for?
BLUMENTHAL: 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 numbers are accurate, what time periods 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, and I think the American taxpayers rightly feel revolt and outraged at this very, very serious breach of trust. WHITFIELD: And if, indeed, it is established that you're able to do so, how would you recover the money? Would you be able to take me through that process?
BLUMENTHAL: Well, there are various actions that we're considering. Obviously, the company is Connecticut based. Many of the employees are Connecticut residents and the company has invoked Connecticut law as a reason that it paid these bonuses, saying that it was compelled to do so under our wage protection statute. That argument is bogus, absolutely, categorically incorrect because these bonuses were not wages that were required to be paid.
So, we have a number of potential avenues of redress, not to mention the possibility of attacks at the federal level or even at a state level that would recover these bonuses.
WHITFIELD: And so, the discovery of these bonuses, of the amounts $218 million was made because AIG actually provided that in documentation to your office, is that correct, after being subpoenaed?
BLUMENTHAL: The documents provided a response to our request or subpoenas lists the bonuses. The total at the end of the list is $218 million for 418 separate employees. We want to know why that number is so much bigger than the $165 million reported previously.
WHITFIELD: OK, Mr. Blumenthal, I actually have a response, a written response from an AIG spokesperson, Mark Hare (ph), who is telling us that the December payouts are old news. Ed Liddy, the CEO, said in his correspondence to Timothy Geithner, the Treasury Secretary, that "a payment under the retention program was made in December before this latest March payment, at this point, not having seen what the C.T.," the CTAG, you, "the Attorney General of Connecticut said. We believe that is what he is probably referring to." Do you have a response to that?
BLUMENTHAL: We want to know exactly what these numbers cover, whether, in fact, they are specifically identifiable as 2009 payments as appears to be the case from the documents.
WHITFIELD: Connecticut Attorney General Richard Blumenthal, thank you so much for your time and we'll continue to stay in touch with you so we can continue to get updates on this story which, clearly, there's a lot of movement this weekend alone. Appreciate your time.
All right, let's talk about politics and the merging of whether it's the AIG investigation and other things economy-related. A PRETTY rough-and-tumble week for the president as well. Let's look ahead to Tuesday night. He is expected to address the nation.
Paul Steinhauser is deputy political director right here at CNN, and, you know, it was a tough week for him, too, because he was asked to respond about AIG and to defend Timothy Geithner, his Treasury Secretary. So, might all those things collide once again on Tuesday during his address? PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, you know, Tuesday's news conference is really about selling the budget, but I think you're absolutely right, Fred. We're goign to hear a lot of questions from reporters Tuesday night at the White House in primetime about AIG as well.
But it's the budget that -- that is the reason that President Obama is holding this primetime news conference. He wants to sell the budget to Americans and more importantly, I guess, in a way to members of Congress because those are the people who are going to be voting on the budget eventually.
It's part of a sales job I guess we've seen all week. Remember, President Obama went out to California. He held two town halls, one of them with Arnold Schwarzenegger. He was on "The Tonight Show." He will be on "60 Minutes" tomorrow night and then on Tuesday night, he's got the primetime news conference. It's all about selling this $3.6 billion budget.
And you were talking to Kate earlier today, you're already seeing pushback from Republicans, of course, over the cost of this budget and even now, some conservative Democrats probably are getting a little scared after they saw that Congressional budget office report that shows the deficit is going to be larger than even expected.
WHITFIELD: And it's almost as if, just looking at his schedule, he's campaigning all over again, oh, but wait, there's more. He's got volunteers who are actually going door-to-door now as well, kind of campaigning for him, but this time as president. Explain.
STEINHAUSER: Exactly. This, you're seeing pictures here of people with "Organizing for America." This is basically the remnants of the "Obama for President" campaign after he won the election and now is in the White House. A lot of that organization stayed in place, it's now part of the Democratic National Committee, part of the Democratic party. These people are out this weekend and they are signing up supporters, volunteers who will help lobby their lawmakers and others for the passage of the president's budget.
Remember, he had about 14 million people on that e-mail list. It's a very valuable e-mail list from the campaign. It is still around and that is what we're seeing this weekend. It is under way, this grassroots effort.
WHITFIELD: And then, of course, the president got a little press for maybe something he regrets now involving the Special Olympics. He thought it was kind of a joke, but at the same time before "Late Night with Jay Leno" aired, he was already issuing an apology to the Special Olympics.
STEINHAUSER: Yes. You know, President Obama became the first sitting president to go on late-night television as a guest. That was Thursday night out in California, and as you mentioned, when the conversation turned to bowling with Jay Leno, that's where the trouble began.
Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I bowled a 129.
(CHEERING & APPLAUSE)
OBAMA: I had ...
JAY LENO, HOST, "THE TONIGHT SHOW": Oh, no, that's very good. Yes. No, that's very good, Mr. President.
OBAMA: I was for like (ph), it was like Special Olympics or something.
LENO: No, that's -- no, that's very good.
OBAMA: The -- no, no, listen. I'm making progress on the bowling.
(END VIDEO CLIP)
STEINHAUSER: Fred, as you can hear there, it was under the applause, but yes, he likened his score, that 129, to the Special Olympics. As you mentioned, he apologized immediately, even before the show aired because that was a taped show. He called Tim Shriver from the Special Olympics, the Chairman of Special Olympics, to apologize. He said he meant no offense by that whatsoever.
Tim Shriver, Fred, was on "LARRY KING LIVE" last night and he said while he was very pained by the president's comments, he was happy to hear the apology and also said that this could be a teachable moment here, that we could get some good out of this moment.
WHITFIELD: Right. All right, Paul Steinhauser, thanks so much. Always good to see you.
STEINHAUSER: Thank you.
WHITFIELD: And of course, CNN is the place to see and hear the president's primetime news conference. That is, once again, Tuesday night, 8:00 p.m. right here on CNN with, of course, the best political team on television covering all the angles before and after.
Some of his victims say that he should get a public flogging, but what's really happening with Bernie Madoff? We'll check in with our legal guys in a few minutes.
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WHITFIELD: All right, disgraced financier Bernie Madoff wants out of jail until his June sentencing. He tried to go the appeals court route. Let's check in with our Avery Friedman, a civil rights attorney and law professor and Richard Herman, a New York criminal defense attorney and law professor, back with us now.
All right, Richard, you first again. Madoff, he wants out. What happened?
RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: What happened is exactly what I said would happen last week. They said no. I mean, come on. He is sucha flight risk.
WHITFIELD: And quickly.
HERMAN: Such a flight risk.
WHITFIELD: Oftentimes, it takes weeks, doesn't it, if not months for a response, but this was immediate.
AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Right.
HERMAN: Yes, it was pretty quick, so usually ...
FRIEDMAN: Yes, I mean -- Richard's exactly right. I mean, the standard, the legal standard, Fredricka, is can Bernie Madoff show by clear and convincing evidence that he isn't a flight risk? Well, he's 70-years-old, he's looking up to 150 years. He could never meet ...
WHITFIELD: And they still don't know where money is.
FRIEDMAN: Right. He could never meet the standard. This was a no-brainer, it's 3-zip. It was an easy call for the Federal Court of Appeals.
HERMAN: And during his house arrest, he did some financial transactions.
FRIEDMAN: Right.
HERMAN: So, they found him to be a pecuniary harm to the public, also.
WHITFIELD: And -- and there was the distribution of jewelry.
FRIEDMAN: Yes, that's what that was, yes.
HERMAN: Yes, yes.
WHITFIELD: Yes, OK, yes, that is a transaction, isn't it?
FRIEDMAN: That was an easy call, easy call.
WHITFIELD: OK, yes. OK, well, let's talk about something that is unnerving a lot of you attorneys ...
FRIEDMAN: Boy oh boy, yes.
WHITFIELD: ...as well as judges, et cetera. Everybody's into the whole tweeting phase. Are you guys on Twitter?
HERMAN: Not me.
FRIEDMAN: Not me. WHITFIELD: OK, everyone except us three, but anyway, apparently a lot of jurors are doing it right there in court, defendant on the stand or listening to testimony and Avery, how does this happen? Oftentimes in a courtroom, you can't even bring in a newspaper. How do you get away with bringing your BlackBerry?
FRIEDMAN: Yes, I -- you know what, I agree with you. I don't know how this guy got his little, you know, computer in there and simply because usually, you relinquish that as you go in. You also take an oath, which I think is very important, that you will pay attention, you will not be distracted.
WHITFIELD: Yes.
FRIEDMAN: How in the world -- this must have been in a state court is all I can figure out because it would never happen in a federal courtroom. Never.
HERMAN: Yes, Avery's right, every ...
WHITFIELD: Yes. So Richard, how do you make sure? How does a courtroom make sure that it doesn't happen again? Is it as simple as putting up a sign, no cell phones, no newspapers, no tweeting?
FRIEDMAN: Yes.
HERMAN: There's marshals, there's marshals in the courtroom.
FRIEDMAN: Right.
HERMAN: There's court officers that can check and see. If you read a newspaper, they'd have a heart attack in New York in the courts. So, I mean, you can't do it. I mean, it's outrageous. If I was trying a case and I looked over and saw a jurior ...
WHITFIELD: Oh yes.
HERMAN: ...on a computer, I'd pass out right there.
WHITFIELD: I'd be mad (ph), yes.
FRIEDMAN: You know what, that's a mistrial. Absolutely no doubt about it.
WHITFIELD: Yes.
HERMAN: It's outrageous.
WHITFIELD: OK, and then, Avery, I remember us talking about this once before, no guns in public park.
FRIEDMAN: Yes.
WHITFIELD: Phew, I guess. Where are we going with this case?
FRIEDMAN: Well, the -- this is the amazing thing. Everybody's thinking it's a second amendment right to bear arms case. Listen to this, this is a case where a federal judge this week enjoyed people coming into parks with loaded, concealed weapons on environmental grounds and the reason that happened is that any time a federal rule is promulgated by a federal agency, this was the Department of Interior, you have to do what's called an environmental impact study. They didn't do it. The federal judge came down with a hammer, no more guns in public parks.
WHITFIELD: So Richard, does this come too close to the violation of, you know, the right to bear arms?
HERMAN: I don't know. They're afraid of poaching, they're afraid of putting people at risk, at danger. Avery's analysis is right on the button there.
WHITFIELD: Yes.
HERMAN: I mean, the judge made the right decision. I mean, President Reagan enacted that law and all of a sudden in December, President Bush overturns it and says you can take a concealed weapon to parks.
WHITFIELD: Yes, all right.
HERMAN: Incredible.
WHITFIELD: Yes. Richard Herman and Avery Friedman, thanks so much. But wait, Richard, how are you feeling? I should have asked you that ...
FRIEDMAN: Yes.
WHITFIELD: ...in the very beginning. You feeling good?
HERMAN: I'm -- you know, I'm on chemo every day now, so it's -- I'm fighting it. I'm doing my (INAUDIBLE).
FRIEDMAN: Keep fighting man, keep fighting it.
HERMAN: I am.
FRIEDMAN: You're a tough guy.
WHITFIELD: You're looking good.
FRIEDMAN: Yes.
WHITFIELD: You are a fighter. Thanks so much and glad you are with us this weekend as well. Thanks so much, guys.
FRIEDMAN: Take care, man. See you soon.
WHITFIELD: Good to see you. Hang in there.
HERMAN: Thank you.
WHITFIELD: All right, healthy foods can do a number on a budget, but they don't have to.
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WHITFIELD: OK, you're pinching pennies, who isn't these days, trying to stretch the dollar. So, does that have to lead to unhealthy eating? There are so many arguments. Sometimes the healthy food is what's the expensive stuff.
So, we're getting help from a pro. Chief -- Chef Galon Sampson (ph) and he is the chief in the kitchen as well. He is in Baltimore where he is offering his food expertise at the Fourth Annual Money Power Day. So, Galon, I've heard that and experience it, too. Sometimes if you want to go for the really healthy stuff, the organic, you spend so much more money then say, processed foods or something already prepared. How do I navigate that in these tough times?
GALEN SAMPSON, CULINARY DIR., DOGWOOD GOURMET INST.: It's true. I mean, you have to make a choice when you have to watch your dollars. There are options, especially around the cities. Farmers' markets are becoming more and more popular. You're dealing directly with the farmer, so you're going to get a better price.
WHITFIELD: Oh, that's good.
SAMPSON: There's a Waverly Market where we go on Saturdays for the restaurant, but it's open for the public. And you can get organic produce for slightly more than you would get produce at your regular supermarket.
WHITFIELD: OK.
SAMPSON: If you were to buy organic produce at your supermarket, you would probably pay three or four more times that.
WHITFIELD: Oh yes, you do. And I ...
SAMPSON: So, dealing direct is good.
WHITFIELD: ...love the idea of the farmers' markets, though. That's really great. People have to keep their eyes peeled for that. All right, so you've got a mock kitchen set up there. You're helping people plan their food budgets by the week. Say you're a family, you know, of four. That's going to be a little different in your planning than if you were a single person. A lot of single people spend a lot of money eating out. Help me cut corners.
SAMPSON: That's right. Planning is the most important thing, and I think you have to sit down and say this is an important part of my budget and I have to spend my dollars wisely. I think we make the biggest mistakes is when we don't plan and we're like OK, I have to cook dinner tonight, I don't have anything. And you run to the store and you're buying for just that meal or just yourself and you're not shopping effectively.
What we did here, we were giving $25 and we created, with that $25, breakfast, lunch and dinner for four people. WHITFIELD: Breakfast, lunch and dinner?
SAMPSON: So, it's taking a center piece ...
WHITFIELD: $25, OK.
SAMPSON: Yes. What we did is we're going to have a roast chicken dinner. We bought an eight-pound roaster, which we'ver already processed and we've gone through it. But we cooked it, broke it down. We're going to serve the breast with some potatoes and some greens that we got at the farmers' market. That would be for dinner.
WHITFIELD: And so, I'm hearing you say you buy a while chicken, and you cut it up, right? That's the cheaper route?
SAMPSON: Here -- well, we roasted it whole.
WHITFIELD: OK.
SAMPSON: Yes, definitely buy the whole thing because then, you can use the byproducts for other meals. If you just buy the boneless, skinless breast ...
WHITFIELD: Yes.
SAMPSON: ...you know, you eat it, you're done, there's nothing left.
WHITFIELD: It's that much more expensive, too. Right.
SAMPSON: Here, we're making soup for lunch tomorrow. And this is, you know, just the broth going and some carrots, onions, and celery and the body of the chicken that was left over, some wings. The meat that was from the legs, obviously eight pounds of chicken is too much for four people. We saved this meat. We're going to make some breakfast burritos in the morning with one egg, some leftover chicken, some beans that we're cooking and some tortillas and cheddar.
WHITFIELD: Oh, and beans are always so cheap.
SAMPSON: So, we'll have -- you know, and you want to keep variety. So, when you're planning your meal, like this week, it's going to be chicken as the centerpiece. Next week, it could be pork. Or the week after that, a roast. You know, and vegetarian cooking is also a way to go because you know, there are a lot of options, especially if you're in a very (INAUDIBLE).
WHITFIELD: Oh fantastic. Chef Galen Sampson, thanks so much. You got a Web site or anything like that that folks could get some cheap recipe ideas from you?
SAMPSON: We do. We have www.baltimore -- dogwoodbaltimore.com.
WHITFIELD: Dogwoodbaltimore.com.
SAMPSON: Sorry, but you can find recipes there and ... WHITFIELD: Love it.
SAMPSON: And you can find the directions to the local markets if you live in this area.
WHITFIELD: Perfect. Chef, thanks so much. I'm hungry, and I'm ready for one of those chicken wraps or chicken breakfast burritos about now. Appreciate it.
SAMPSON: Great.
WHITFIELD: Have a great day.
SAMPSON: Thank you.
WHITFIELD: All right, a tight budget can crimp vacation plans as well, not just your meals. But there are cost-effective options out there. Richelle Carey keeps us "On the Go."
(BEGIN VIDEOTAPE)
RICHELLE CAREY, CNN CORRESPONDENT (voice-over): One of the best ways to recession-proof your summer vacation may be to set sail.
GENEVIEVE SHAW BROWN, TRAVELOCITY.COM: Cruising might be a great way to take the whole family on a vacation for a reasonable price. It includes your accomodations and all your meals.
CAREY: And you might be surprised how inexpensive a cruise can be.
BROWN: There's a cruise line for everybody of every budget. Families tend to flock towards the bigger ships because of kids clubs. A couple may gravitate to a more upscale cruise line with a smaller ship, a more intimate setting.
CAREY: But if being out on the open water isn't your thing, there are also bargains on dry land.
CHRIS MCGINNIS, EXPEDIA.COM: Some of the best deals are out in the Caribbean, so countries like the Dominican Republic, Mexico and Jamaica are really rolling out great packages. You pay for nearly everything ahead of time, your food, your hotel, your entertainment. And in some cases, even alcohol.
CAREY: Or go international without leaving the U.S.
MCGINNIS: People should also check out flights to San Juan, Puerto Rico. There's a lot of new low fare competition, a lot of East Coast cities. You don't need a passport to go there.
(END VIDEOTAPE)
WHITFIELD: So, there you go. Heading out on a budget. You know what I forgot to mention earlier, the chef that was just with us to help us eat on a budget, well he was a 2008 CNN Hero for his work helping recovering drug addicts train for a culinary career. So, many thanks to Chef Galen Sampson for that and all the work that he does.
All right, stay with CNN throughout the day for the latest breaking news and don't forget our special hour, 4:00 p.m. Eastern. Join in on the conversation, "Job Less, Not Hopeless."
Meantime, "YOUR MONEY" is next.
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