Return to Transcripts main page
CNN Newsroom
Financial Insecurity; G-20: Why It's Important; Dreams Under Water; New Yorkers Vote Again; Head to Head With World Leaders; Challenges Facing G-20; GM and Chrysler on the Clock
Aired March 31, 2009 - 11:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Another first for President Obama. He is scheduled to land in London less than three hours from now. It's his first trip to Europe as president. The world financial crisis tops his agenda. The president is attending the G-20 summit of the world's financial powers.
My, oh my! President Obama and other G-20 leaders will likely face a noisy reception in London. Protestors jamming the streets in advance of the summit. This demonstration took place over the weekend. They're venting their anger over the global economic meltdown.
We have got CNN's Richard Quest and White House correspondent Suzanne Malveaux on the important elements of this summit. And Suzanne, let us start with you.
What is President Obama -- maybe we just saw a taste of it -- likely to face when he arrives? We, of course, saw the weekend protest, the suspicious package today, and probably a reaction from some inside the room that America is behind this crisis. What is the president likely to face?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Tony, you got a pretty good glimpse of that when you saw those pictures. We are expecting thousands and thousands of protestors. And some of the anger is geared towards the United States, towards the administration. There are some world leaders who believe that the economic crisis essentially is the United States' fault to see our own economic collapse, how it's spread across the world. You are going to see a little bit of resentment there against the policy.
And there's a real difference of opinion here in approach. President Obama believes that if you throw a lot of money at the economy and look at economic growth, economic stimulus, that that is the way to get over this recession. There are other world leaders like Germany and France who say, look, hang on here, we don't even have that kind of money to begin with. We want stricter regulations in the financial institutions.
So there really is a difference of opinion here. You're going to see emotion on the streets. Clearly, a lot of people looking for some answers here -- Tony.
HARRIS: Yes. Some calling for more regulations. And Obama and Prime Minister Gordon Brown talking about, let's throw some more money at the problem. So you've got those two competing views of this.
What then are the real expectations, the real expectations for team Obama?
MALVEAUX: The expectations aren't high, Tony. I mean, they're going into this saying that the president obviously is going to put forward his plan. He's going to be doing some listening.
It was interesting enough that you asked that question, because this is the second G-20 summit. The last one happened in November, just last November.
What did they do the last time around? They all made this pledge, essentially, not to engage in protectionism, to open up trade. Well, it turns out that 17 of the 20 members of the G-20 summit broke that promise, they broke that pledge. So it' a very good question, what are they actually going to get done, even if they decide to agree on paper, let's agree on something here, or are they going to follow through with it?
Most likely, it's going to be, a lot of people think, a watered- down statement -- Tony.
HARRIS: Exactly. Suzanne, stand by, if you would, please. I want to bring you back in just a second with our Richard Quest.
Britain's prime minister says the global economic crisis is not just about money, but morals and values as well. Gordon Brown spoke earlier today, ahead of the G-20 summit. He says the economic system must be reshaped to reflect the values shared around the world.
(BEGIN VIDEO CLIP)
GORDON BROWN, BRITISH PRIME MINISTER: Most people have worked hard to build up their firm or shop, understand responsible risk- taking, but don't understand why any company would give rewards for failure, or how some people have grown fabulously wealthy making failed bets with other people's money. So it is absurd for those on the extremes to blame the private sector for our problems. What we actually need is the practice of most of our private sector to be adopted by all of our private sector.
(END VIDEO CLIP)
HARRIS: OK.
CNN's Richard Quest is joining us live now from London.
And Richard, a couple of areas I want to take up with you.
I'm wondering what it is the president, President Obama, and British Prime Minister Brown, given what appears to be diminished expectations, what are they looking for now?
RICHARD QUEST, CNN CORRESPONDENT: I think you have to remember that in this global crisis, the two countries that seem to be most affected at the moment are the U.K. and the U.S.
HARRIS: Yes.
QUEST: Because they have the most open financial markets, they have the casinos of stock exchanges and financial instruments that basically railroaded the rest of us. So it's not surprising, Tony, that it is the U.K. and the U.S. that will run massive budget deficits for the foreseeable future to try and solve the problem.
It is the other countries, those that have been slightly more circumspect in their capitalism -- Germany, France, to a certain extent -- they will be the ones saying, whoa, wait and see what happens. Because don't forget one thing that's -- and it's easy to forget. We've got interest rates that have come down many percentage points. We've got trillions of dollars waiting to hit markets.
So Tony, there is a logical and a reasonable argument that says, wait.
HARRIS: Yes. Now, the French president, Sarkozy, I don't know if this is a real threat or is this -- and maybe as Jim Bittermann mentioned last hour -- sort of laying down a marker for the event itself, this idea that if there isn't something big that comes out of this, beyond this communique that's already been written -- hello -- that if there isn't something big that comes out of this, he may walk out of the proceedings?
Do you take that as a serious threat? And it sounds like what is big for Mr. Sarkozy is something different from what Gordon Brown and President Obama are talking about.
QUEST: Yes, because all the countries have their different agendas. Forgive me for a shameless bit of name-dropping. I was talking to the Spanish prime minister, who says he wants to see bold initiatives, he wants to see some really big moves.
The question is definitional. What is a big move? If you decide to give half a trillion dollars to the IMF, is that a big move?
The reality is that you have 20-plus countries in the room with their economies -- remember, Tony, and let's not forget, China and India, they are still growing between four percent and six percent. You've got countries where unemployment's over 10 percent. So expecting everybody to say, right, here is the document, this is what we're going to do next Tuesday, this is what happens a week on Friday, and this is what happens in two months' time, it ain't going to happen like that. I think you need to be -- I think we all need to be a little more sophisticated in understanding G-20 machinations.
HARRIS: Got you. Yes.
QUEST: It's not like a local Rotary Club getting together.
HARRIS: OK.
Let me bring Suzanne Malveaux back in. And Richard, this question will go to you as well.
You know, there is, it seems to me, something important in this laying down of this marker from the French president, Suzanne. And it is the concern that if nothing of consequence comes out of this summit, that the individual nations could then go back to their countries and just start to work on the crisis in a piecemeal effort. And what you might get in that scenario is a rise of protectionism. I know that the president is taking a message, let's stay away from that at all costs.
MALVEAUX: That's absolutely right. And one of the things that we're actually going to see, a lot of people think that Sarkozy's threat when he talks about walking out is a lot of bluster...
HARRIS: Yes.
MALVEAUX: ... and that it's really for his own audience, that that's not going to happen. As a matter of fact, there is a press conference between -- a joint conference with the prime minister -- the chancellor, rather, Merkel, as well as Sarkozy tomorrow. So we'll see what actually happens. But that's one of the risks, obviously, is that everybody goes down, they put their head in the sand, and decides this isn't going to work.
I think one of the things that you're going to see, however, is that there is going to be some movement here. I mean, President Obama says this is a false choice when you look at regulation versus economic stimulus.
There are some members of this group who believe that you can do a bit of both at the same time. So, right now, you're hearing a lot of the extremes. I think that's very common when you go into something like this. And then everything kind of tones down a little bit, the temperatures go down just a little bit, and they come up with something that's a little bit more workable.
HARRIS: And Richard, I'll have you weigh in on this and give you the final word.
Thanks, Suzanne.
Look, if you don't get something big, medium, whatever -- and size is relative, of course -- that everyone goes back home and they work on this crisis in isolation.
QUEST: That's certainly true. And if you do that, you won't leverage the amount of money.
Tony, this protectionist question, remember, nobody -- nobody comes to this table with clean hands. Just remember the U.S. economic package that was put together, that had within it, buried like a nasty little time bomb, that bit about only infrastructure and steel -- American steel.
(CROSSTALK)
HARRIS: And then the language was modified, Richard, in fairness.
QUEST: Exactly. It was modified, but only because the U.S. agreed that it wouldn't conflict with its international obligation.
HARRIS: Good point.
QUEST: But the point I'm making about it is, when jobless numbers get towards 9 percent and 10 percent, when deficits are rocketing, then everybody engages in it. So you'll hear the warnings, but look at the deeds. I suspect there'll be a difference. HARRIS: Richard Quest, Suzanne Malveaux, great to see you both. And thank you for your time.
MALVEAUX: Thanks, Tony.
HARRIS: Good. Good. Boy, that was good.
We have many more correspondents covering this for you. We have Paula Newton live on the streets of London with a look at whether there is a security threat. That's coming up in the next half-hour.
And also, CNN's Money Team, Christine Romans, with a look at how the decisions at the G-20 could affect your wallet.
The new head of General Motors says the road ahead could include more plant closings. Fritz Henderson held his first news conference as CEO earlier today. He says the company needs to take further measures to meet the government's new requirements for government loans, but he says the makeover of GM is critical.
(BEGIN VIDEO CLIP)
FRITZ HENDERSON, CEO, GENERAL MOTORS: The reinvention of General Motors includes both improving the competitiveness of our operations, but also, we absolutely must -- we can only win if we get the job done in revenues -- selling, marketing, selling great GM cars an trucks today, and selling great GM cars and trucks tomorrow and in the future.
(END VIDEO CLIP)
HARRIS: Well, the failure of GM or Chrysler would have a devastating impact on the national economy.
Chief Business Correspondent Ali Velshi looks at the ramifications.
(BEGIN VIDEOTAPE)
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Ultimately, the bigger story here is less about the car buyers and more about jobs across America. We know there are lots of auto jobs. The automakers have said the failure of even one of them could trigger a ripple effect that could put three million people out of work.
These are the states that are most associated with autoworkers. These are the states that have more than 100,000 autoworkers in them: California, Texas, Florida, largely because they're very populous states. But Michigan, Indiana and Ohio, that's really where the majority of those auto plants are.
These are states that have more than 100,000 jobs connected to auto making, auto supplies or auto dealerships. And I have to remind you, there are more people employed at dealerships than actually in the auto business.
But take a look at this. If you go to states that have more than 10,000 auto jobs connected to them, you've got nearly the whole country. There are auto jobs in every single state, and the District of Columbia.
But the bottom line is this is the effect if an automaker were to fail. You could see jobs lost across the country.
(END VIDEOTAPE)
HARRIS: So think about that.
A blizzard is slamming the Dakotas, and our Reynolds Wolf is right in the middle of it.
Take it away, if you can hear me, Reynolds.
All right. Reynolds is back in just a moment.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: I like the song. There's probably a better version of that. I'm not sure what -- OK. We'll work on it.
Fargo, North Dakota, versus Mother Nature, round two.
Sorry, Otis (ph).
While the water has started to retreat, a blizzard is threatening to undo everything. And lot of good work that is been put in.
CNN's Reynolds Wolf is live from the Oak Grove neighborhood of Fargo.
And Reynolds, I love that you're changing locations. OK. Give us the view there from that vehicle. I don't know if it's buried yet or will be shortly.
REYNOLDS WOLF, AMS METEOROLOGIST: Well, we're definitely catching the brunt of it. And I'll tell you, it is certainly a rough time here in the Oak Grove area, but it is all across this part of the region.
I'll tell you some of the latest news that we have. While I'm standing in -- or at least part of one of our rental vehicles -- is that anyone that's going to be taking a drive today along parts of I-29 in this part of the world is not going to be able to do so. They're going to have a hell of a time trying to get, say, from Brookings, northward to Grand Forks. No to beeps about it.
And of course the reason why, Tony, is because of the heavy snow that continues to fall. You know, it's going to be in the forecast, and it's coming down quite a bit. Anyone who happens to get on the road, and they're driving to dry around in these icy conditions, their car is going to be about as manageable as a brick.
And I'll tell you, the heavy snow, and with the wind, it's creating drifts in places that are getting up to a couple of feet. Kind of hard to maneuver around. So you can only imagine in a car how tough it's going to be.
HARRIS: Right.
WOLF: Surprisingly, though, despite all that, we still see trains that come by every once in a while. Of course, we still have the concerns coming in with the waters. Even though they're receding, there is, of course, a sharp eye that everyone's keeping on this river. With the wind coming through, and the water that continues to push up against these earthen levees, a lot of people have not let down their guard just yet.
Got an interesting note for you there, Tony, and that I'd like to share with you and the rest of America, is you can't really see it at this point because it's all covered with snow, but there is some plastic sheeting, some plastic sheeting they've been using to help reinforce a lot of these earthen levees. And what's interesting about it is, when they first put them up and they throw them over the side, what they use to weight those things down are actually bags of potatoes. They use bags of potatoes... HARRIS: OK. Yes, makes sense. Yes. Yes.
WOLF: ... on the end of plastic tarps and they throw them over. Weird stuff. I mean, who would think it?
HARRIS: You wouldn't think it, but it makes sense.
WOLF: Well, we asked some questions -- yes. I mean, potatoes, of course.
HARRIS: Right. Right.
WOLF: They've got multiple uses. Personally, chips are better, but there you go.
HARRIS: There you go.
WOLF: But yes, the reason why they use them is because when you toss them over into the water, they actually will dissolve. They're biodegradable.
HARRIS: I see.
WOLF: Natural stuff is always a good thing.
HARRIS: Hey, I got a quick question for you.
WOLF: Bring it on, man.
HARRIS: Yes. Were you in Moorhead yesterday?
WOLF: I was in Moorhead. We've been in Moorhead, we've been everywhere -- Moorhead, over in Minnesota. We've been here, everywhere.
HARRIS: Well, just a quick one. I'm wondering -- we talked to William Batten (ph) last hour. He's in Moorhead. You were there.
What's your sense of how people are doing there? He seemed to be just OK.
WOLF: Yes. Well, you know, Tony, these people are not complainers. These are the heartiest bunch of people you'll find anywhere. I mean, they're just the salt of the earth folks.
The snow they can handle. They can handle this. I mean, this is a springtime day in this part of the world.
But I think it's a combination of both the heavy snow and the wind, coupled with, of course, this historic flood. I mean, I think after a while, I mean, they've just been hit by a battering ram of elements. So I think it's just a little bit of a mental fatigue, and I can totally understand.
HARRIS: Yes. All right, Reynolds. Appreciate it. Hang in there, man.
(WEATHER REPORT)
(COMMERCIAL BREAK)
HARRIS: Accounting for $700 billion of your tax dollars. Live pictures. The Senate Finance Committee is holding a hearing.
Do we have those? I'm sure we do.
The Senate Finance Committee -- there you go -- is holding a hearing on the financial bailout known as the TARP. It has been in place, can you believe it, for six months now. And the chair of the Congressional Oversight Panel says the program is in need of attention.
(BEGIN VIDEO CLIP)
ELIZABETH WARREN, CONGRESSIONAL OVERSIGHT PANEL: My concern right now is that we do not seem to be a priority for the Treasury Department. We have sent letters, we have requested that there be someone named so that we can get technical information. And so far, we have not been a first priority. We use what you give us, and we will exercise the leverage given to us by Congress.
(END VIDEO CLIP)
HARRIS: The original intent of the program was to buy up bad assets from banks and to get them lending again.
All right. Maybe you're feeling a bit more chipper about the economy today. Just a tiny bit.
Consumer confidence inched up slightly in March. That's not saying a whole lot. The confidence board rating for February was the worst since the index began in 1967.
Home prices for January plunged another 19 percent. All 20 cities in the Case-Shiller Price Index showed a year-over-year decline.
There'll be a little something extra in your paycheck starting in April. And that is no April Fool's joke. The making work pay tax credit kicks in.
What's in it for you? Find out when you log on to CNNMoney.com.
The financial meltdown creating a lot of headaches.
The protests in Europe ahead of the G-20 summit. Is there a security risk and is it opening up a window for terrorist attacks?
(COMMERCIAL BREAK)
HARRIS: Questions about credit card debt and worrying about investments with AIG, you know, those sound like issues for Personal finance Editor Gerri Willis.
Gerri and her team are tackling your money questions.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: We want to get you answers to your financial questions. Let's get straight to the help desk.
Doug Flynn is a certified financial planner and founder of Flynn Zito Capital Management. Carolyn Bigda is with "Money" magazine. And Jack Otter is a financial journalist.
Abby in California asks, "My husband has two credit cards with really high interest rates. I have one with low interest. We've been trying to pay his down since you told us to pay high-interest credit cards off first."
True, I did.
"Is there any way to transfer his debt to my credit card? We thought about using those low-interest checks my credit card sent, but you said those are bad as well. Is there anything we can do?" All right, Doug. I want to start with you. This is almost a trick question here, I think.
DOUG FLYNN, FOUNDER, FLYNN ZITO CAPITAL MANAGEMENT: Well, I don't think she can actually transfer his credit card balances to her, but those credit card checks that you get are not good for normal payments of anything. But in this case, typically it's a 3 percent fee to do it.
So if the total savings in the first year is going to net you more, and if you're going to take several years to pay it off, it may make sense to pay that 3 percent for the convenience. Normally, I wouldn't do it, but in this case it may, depending how their interest rates stack up.
WILLIS: You've got to do the math.
What do you think, Jack?
JACK OTTER, FINANCIAL JOURNALIST: Well, the very first thing he should do is of course call the credit card company and try to get them to lower his rate. But presumably, they've tried that. So then I'm with Doug.
I mean, I hate those checks. I rip them up. I want to call the bank and yell at them. But this is one case I think it's a good idea, as long as the marriage is secure and they're staying together. Otherwise, she's stuck with all the debt.
WILLIS: How do we get a new credit card? If I were him, I'd try to get a new card with a low rate. That's where I'd go with this.
Let's get on to the next question.
All right. Jim in Florida asks, "What if you have VALIC" (that's AIG) "annuities as your 403(b)? How safe is it?"
Carolyn, we've seen AIG in the headlines here. Lots of worries about that company.
What do you say?
CAROLYN BIGDA, "MONEY": Yes, there are lots of worries. But with this, the investment is basically as safe as anything can be in today's market.
AIG might be on the name of the annuity policy, but it's actually held through a subsidiary of that company which is a separate entity. Its assets are not really intermingled with the holding company that's in trouble today. So they can feel pretty confident about it.
And another thing to keep in mind is that the state insurance departments are keeping watch over these things. So they have to follow strict rules, too.
WILLIS: All right. So those people should feel pretty secure. The help desk is all about getting you answers. Send me an e- mail to gerri@cnn.com, or log on to cnn.com/helpdesk to see more of our financial solutions.
And the help desk is everywhere. Make sure to check out the latest issue of "Money" magazine on newsstands now.
(END VIDEOTAPE)
HARRIS: It is day 71 of the Obama presidency, and much of it will be spent in transit. Air Force One, with the president and Mrs. Obama aboard, lands north of London at 2:50 Eastern. About 3:10, Marine One will take the Obamas to Winfield House, the sprawling mansion that is home to the U.S. ambassador.
Later that hour, the president travels to the American School there. He will meet with diplomats and staff from the U.S. Embassy ahead of the G-20 economic summit.
More details about the G-20 now.
The group is made up of top financial officials from 19 nations and the European Union. These items top the G-20 agenda this year: discussing a possible global stimulus package; looking for ways to stop countries from limiting trade just to protect their own businesses; and helping developing nations where the recession is hitting hard and coming up with better ways to regulate the financial market.
French President Nicolas Sarkozy's stormy personality on display again at the group of 20 summit. He's threatened to walk away if leaders don't address calls for tighter global financial regulations. The French leader has a history of, shall we say, colorful behavior.
Here's a brief look at who Sarkozy is.
The 54-year-old has been divorced twice. His current wife is Italian singer and model Carla Bruni. And when asked about the divorce for the umpteenth time, well that's it, he stormed out of his interview with "60 Minutes."
And then there's the colorful side. He is the first French president to jog in public, to ride horses and he got lots of French workers pretty angry when he worked the entire holiday month of August. A big no-no in France.
And now on a serious note. He is a pretty big reformer. Sarkozy helped revive the European Union constitution. He forged new relationships with the U.S. after the rocky relationship with his predecessor. And he is pushing to trim France's welfare state. His goal for European workers, to work longer hours with more efficiency.
World leaders are coming to London to battle a financial forest fire. What happens if terrorists light another match? Here's international security correspondent Paula Newton.
(BEGIN VIDEOTAPE)
PAULA NEWTON, CNN CORRESPONDENT (voice-over): The riots, the protests, the anger gripping parts of the world. These are very vocal and sometimes violent reactions to the economy and how it threatens people's financial security. But for weeks now, American intelligence authorities have been warning that the biggest risk to global security now comes not from terrorists but from the money meltdown. To quote the Obama administration, "time is probably the greatest threat now. The longer a recovery takes, the more likely serious security consequences."
ADM. MIKE MULLEN, JOINT CHIEFS CHAIRMAN: I worry a great deal as we work our way through this, and I think it's going to take longer then -- rather than shorter to do that. I worry about the effect that has on stability or instability throughout the world.
NEWTON: While instability in high-risk countries like Pakistan isn't driven solely by the economic crisis, intelligence official around the world worry about hot spots where it will be hard to predict if and when the economy will drive people and countries over the edge.
GUY RYDER, INERNATIONAL TRADE UNION CONFEDERATION: It's going to be massively damaging and it can be the type of isometric conflicts that I think have us all pretty scared these days. And I think its consequences are extremely difficult to forecast.
NEWTON: The other security headache -- senior U.S. intelligence sources tell CNN they are worried that the financial crisis has left the world more vulnerable to a terrorist attack because we're not as equipped to bounce back. That, as one source put it, even a coordinated series of smaller attacks could cause a devastating blow.
MALCOLM CHALMERS, SECURITY ANALYST, RUSI: If there were to be another serious terrorist attack, it really could tip some in societies over the edge. So I think we should be very worried indeed about the combination of economic weakness and terrorism.
NEWTON: And so all eyes are on London and the G-20 meeting this week. Government officials are blunt. This meeting isn't just about your money. The decisions made here this week could be a way of safeguarding security for years to come.
(END VIDEOTAPE)
HARRIS: That is such an important point. And Paula Newton joining us live now from London.
And, Paula, that last video (ph) over all those pictures, you know, I'm just sort of curious, are you seeing any sort of new rounds of demonstrations there today?
NEWTON: I wouldn't say new round. This is really -- it's the day before they intend to get geared up. And I can tell you from police talking to them and from what their tactics, although they won't tell us what their tactics are, they want a lot more attention paid to them during this protest. Now it's not to say that they're going to get anywhere close to 10 Downing Street, where I am right now, or anywhere close to the Excel Center, where the actual G-20 meeting is going on.
What they want is equal air time. And they want it known, look, this didn't work out so well forthe last 20 years. We want a new deal going forward. And they want to put pressure on the politicians behind me, Barack Obama, as he winds his way here, to say, look, there has to be something in this for us. We're not just going to go back to the same old system the way it was.
The key thing here, though, Tony, are tactics. What are they going to do? How destabilizing is it going to be? Could it get out of control here in the city of London -- Tony.
HARRIS: And I know you'll be watching it for us. So, Paula Newton for us.
Paula, appreciate it. Thank you.
You know, world leaders meeting on the global financial crisis. But what happens at the G-8 summit affects your finances. Is that possible? Let's bring in Christine Roman here from the CNN Money Team.
Christine, again, is that possible that the decisions taken here by these leaders, could it really have an impact on our finances?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, not tomorrow it won't.
HARRIS: Yes.
ROMANS: But this is -- unless, of course, if what they do somehow rattles or unsteadies the market and then it does in terms of your stock holdings.
HARRIS: Sure. That's a good point.
ROMANS: But this is about trying to, I guess, redesign a global financial system, Tony, for an interconnected, new century, looking at these risks in the way these systemic risks can ricochet around the world. And that's really what this is all about. And it's about what kind of new regulation we're going to have, financial stability for this new era and actually an old era that we just didn't have regulations for, quite frankly. And also for what kind of stimulus we're going to have around the world and whether it's going to be a patchwork or whether it's going to be more coordinated.
George Soros and many other people, frankly -- he's a financier of course -- have said, this is a make or break event for global markets. People want to see global cooperation. They don't want to see blaming and they want to see how we're going to move forward here.
And what I can tell you is that it's pretty clear that this is going to be more inclusive to some of our other partners like China and like Brazil and like some developing nations, for example. This isn't a G-7 or G-8 meeting. This is a G-20 meeting. And there are another 10 countries invited on top of that. So they're trying to really show that it's just not a few that are going to be designing whatever kind of new system we're going to have. It's going to have to be everybody.
HARRIS: I asked the question of whether decisions taken here could really impact us. And you're right to point out, maybe not immediately, but certainly perhaps down the road. Because, you know, it's kind of easy to dismiss this kind of a meeting. You bring the leaders together. You know, you take a look at what happened in November and you say, OK, folks came out with this nice, fancy communique and then they went and they did their own thing.
Why is this important for folks? I'm thinking about the folks in the Dakotas, maybe in Minnesota right now who are saying maybe the president should be here tending to our immediate needs. Why is this important and what has to come out of this to really resonate for folks here in the states?
ROMANS: This is important because western-style capitalism has been brought to its knees. And this is a system that allowed most of the world to at least have a shot at prosperity for more than half of the last century. And now, because of a variety of reasons, here it is. And it has been tested very, very gravely. And what are we going to have? What's the system going to be? How are we going to mend it and make it better so that we can try to have prosperity for everybody? So that the people in the Dakotas and the people in this country and the people all around the world can share in this whole thing.
Something that the Treasury secretary's been very keen on here and clear about is that this is an interconnected sort of globalized situation. And, you know, if -- history has been very clear that if people retreat to their own -- you can't treat an international issue like this just on a local level. You just really can't.
HARRIS: Yes. It's the question that I asked you earlier. I mean, come on, if something significant doesn't come out of it, however you define "significant," you know, do these countries go back and shape policies of their own and -- in isolation and do we get a rise of protectionism as a result of that? I don't know the answer to those questions, though.
ROMANS: Yes. And I can tell you that a lot of work has been done before this and a lot of the work is going to continue to be done. And there's a lot of work happening in the bilateral meetings. So don't just look at the photo-op and, you know, the class picture as the only -- oh, and the communique as the end of it because there's a lot of stuff happening on this front and there's going to be a lot of give and take.
But one thing that the Treasury Department and the Treasury secretary has been clear about is that the gaps between the expectations are not a big risk. You know, the gaps between the countries, they say, are not as great as some would make it out to be. And, you know, it will -- all I'll say is that, you know, you can't -- you can never dismiss it when 20 heads of state get together in the midst of the worst financial crisis since World War II.
HARRIS: I think that's a good point. Yes. That's a good point. I think it is important.
Christine, appreciate it. Thank you.
Imagine leaving your home in a boat. That's what one family had to do. Can they return home now is the question. We will talk to them next.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
MELISSA FAZLI, CNN IREPORTER: I'm just sitting here with my son as he plays with his car cars. And I have to tell you that I feel kind of sad about what's happening to our auto industry. So I'm very hopeful that Barack Obama will somehow pull this out.
(END VIDEO CLIP)
HARRIS: Boy, that was iReporter Melissa Fazli. Melissa, I hope I'm pronouncing that correctly. From Yorba Linda, California.
To send us your iReports, just go to ireport.com.
Is the Hummer brand out of gas? GM had promised to find a buyer for Hummer or close the division by today. But GM says, hold on. It will take a few more weeks to make a decision. One executive says there are several interested buyers. The gas-guzzling Hummer has taken the biggest hit of any brand during the recession. Sales were down 51 percent last year.
What do you do after you learn your home, your dream, has been devastated by a flood? That is the heavy question weighing on some in North Dakota. I'm on the phone right now with Connie Dreyer, who has just learned her home is not livable.
Connie, good to talk to you.
Who brought you that bit of bad news?
CONNIE DREYER, HOME DEVASTATED BY FLOOD: Actually, we managed to get back out to the house yesterday in a boat.
HARRIS: Oh, boy. And, Connie, what did you see when you looked around?
DREYER: My husband and some of the other people that lived out there went out there. Our lower level is completely flooded out. The upper level we probably had about four inches or so of water come through.
HARRIS: You able to get -- are you going to be able to get many of your most prized possessions out of the home, you think?
DREYER: Nothing from the lower level. We're hoping if we can get out there in the next couple of days that we can get everything out of the main floor before it's all molded, mildew and destroyed.
HARRIS: Yes. Is this true that you were actually in your home when the flooding of your home started?
DREYER: Yes, correct. We were trying to keep the water back behind the dike. And then it started pouring into the basement. And about the same time it started losing it, the sheriff's department came out with those air boats and kind of told us that we had to leave now because they weren't coming back.
HARRIS: How much time did you have to actually get out of the house?
DREYER: We threw a few things in a suitcase, put things up as high as we could. So probably about an hour before they came out and got us.
HARRIS: Yes that you -- and your dog made the trip with you?
DREYER: That was our neighbor's dog actually.
HARRIS: Your neighbor's dog made the trip?
DREYER: Yes. Yes.
HARRIS: OK. Where have you been staying, Connie?
DREYER: Well, different hotels mostly. We've been trying to line up a place to live because it's going to be months before we can get back in there.
HARRIS: Oh, boy. How are your spirits?
DREYER: Pardon me?
HARRIS: How are your spirits? How are you holding up?
DREYER: Up and down. Yes.
HARRIS: And when you've been up, what has fueled those moments of optimism?
DREYER: Well, if we can, you know, salvage everything from the main floor, I will feel really good. I've kind of resigned myself to the fact that everything on the lower level is gone.
HARRIS: And what have you been thinking when -- and maybe you just mentioned it to me, what have you been thinking when your spirits have dipped a bit?
DREYER: You know, until yesterday we didn't know if the main level was completely, you know, two or three feet of water or not. And at that point, we would have lost everything on the main floor and had virtually nothing, I guess.
HARRIS: How does this compare to '97? I guess you fought through '97, huh?
DREYER: Yes, '97, we were surrounded for three weeks. And never got a drop inside at all. And so this is a lot more terrifying, I guess.
HARRIS: Yes. You going to be OK, Connie?
DREYER: Yes, we'll be good. We'll be good.
HARRIS: Thanks for your time.
DREYER: You're sure welcome.
HARRIS: Yes, we'll check in with you to see how things are going. Connie Dreyer trying to stay high and dry. And she's a couple of months before she can get settled again. Her home has been flooded. The basement. Maybe will be able to retrieve some things from the first level on up. We'll check in with Connie from time to time to see how things are going.
And for more information on how you can help the people in the severe weather areas, go to cnn.com/impact.
Itching to buy a new car, but worried about the risk? Automakers are doing their part to boost consumer confidence.
(COMMERCIAL BREAK)
HARRIS: Some auto workers are angry, some parts suppliers are frustrated and some customers are concerned. We have reaction from across the board to the new tougher requirements for struggling auto companies seeking government help.
(BEGIN VIDEO CLIP)
EARL FULLER, GM EMPLOYEE: The risk is, you're investing in the American - our government. You're investing in our production. You're investing in this country. If you go out and buy foreign vehicles, ultimately you're contributing to your own economic demise.
UNIDENTIFIED FEMALE: We have to stand by our products. And they're good products. We've had them for over 30 years.
UNIDENTIFIED FEMALE: The last couple that we've gone through, there was quite a few we couldn't get a sales person.
UNIDENTIFIED MALE: I'm still in business. I intend to be in business for a long time.
UNIDENTIFIED FEMALE: Because we want to know that they're going to be around and we just want to know that it's going to be -- when you invest your money in a car, that the company is going to be around. MICHAEL FERGUSON, UNION STEWARD: You've given enough. Enough is enough.
ROY HYNAN, GM SUPPLIER: We, at one time, had 1,000 employees. Now we're down to 300 employees. And there's 700 people that can't buy a car. And that's widespread.
UNIDENTIFIED MALE: That's just going to talk the talk, I'm going to walk the walk and I'm going to buy myself a new minivan.
JERRY GILLESPIE, UAW LOCAL 160 PRESIDENT: We don't know what more we could give, unless they're talking about pensions and health care for retired workers. And that's a no-no.
(END VIDEO CLIP)
HARRIS: A lot of voices, a lot of perspectives there. The Obama administration says auto companies have to speed up their restructuring plans to get more bailout loans.
Hyundai did it first. Now GM and Ford are offering new buyer protection plans in case you lose your job. CNNMoney.com's Poppy Harlow has more from New York.
Poppy, I remember when Hyundai was -- when folks were making jokes about this plan and calling it triton (ph) and look here.
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Not any more.
HARRIS: Yes.
HARLOW: Not any more. They're the leader in this trend. Yes, I mean, we know auto sales have fallen off a cliff. What we learned this morning is that Ford and GM are trying really hard to jump-start their own businesses. They're also trying to one-up each other in the process. Both companies offering folks to pick up their monthly payments if they lose their job.
Here are details for you folks. Ford will make up to 12 monthly payments of up to $700 on a new car if you buy one this year and if you lose your job this year. The offer starts today. It ends June 1st. Now, while Ford has not taken any bailout money from the government, it says improving consumer confidence, that's key to revving up its sales. Says that is why it's offering the program.
GM, on the other hand, making the announcement shortly after the news from Ford came out. GM has received more than $13 billion in federal aid. It needs to prove its viability in less than 60 days for the government. Its new incentive announced this morning, it will make those monthly payments for up to nine months of up to $500 each during the first two years of ownership. Tony, that plan runs for the whole month of April. So it starts tomorrow.
So pretty similar terms that we've got here. A little bit different, but both companies trying to one-up each other.
HARRIS: Do I have this correct here, GM is also offering protection against your new car losing value?
HARLOW: Yes. It's a bit complicated when they announced it this morning. Let's break it down for you. Here's an example.
If you buy a new GM car today, and within six years you want to buy a new one but the one you have is worth less than you still owe on it, GM will cover the difference up to $5,000 if you want to trade it in for another GM vehicle. GM says it is that part that sets its plan apart from others.
Take a quick listen here.
(BEGIN VIDEO CLIP)
MARK LANEVE, GM VP, SALES AND MARKETING: Ours is a package we believe is clearly superior in terms of total customer confidence, a total wraparound package.
(END VIDEO CLIP)
HARLOW: All right, of course, as you said, Tony, Hyundai was the first to offer a plan like this. Some people argue these plans are nothing more than just a sales ploy because automakers can weigh the risk customer by customer. Others say it's actually, in the end, going to be cheaper for the automakers to take out this insurance policy of sorts rather than offering thousands upon thousands of dollars in customer rebates.
Meanwhile, check out this rebate announced just in the past few hours from the IRS. Right there, irs.gov, Tony. More tax breaks if you buy a new car.
HARRIS: Yes, I like that. I like that. We should talk about that soon.
Poppy, appreciate it. Thank you.
HARLOW: Sure.
HARRIS: New Yorkers voting today in a race that reaches way outside of the state borders. All the way to the president. The economy and the stimulus package.
(COMMERCIAL BREAK)
HARRIS: It is election day in New York today. Yes, that's right. The 20th congressional district is choosing a new congressman and the outcome may have national implications.
Here's CNN's Mary Snow.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): He's the Democratic candidate. He's the Republican. Their fight for a congressional seat in upstate New York might have gone by with little notice had it not been for the Obama administration's economic stimulus plan. Republican Jim Tedisco, a New York state lawmaker, has hammered away at Democratic challenger Scott Murphy for supporting the bill, saying a loophole in it protected those controversial AIG bonuses.
JIM TEDISCO, REPUBLICAN CANDIDATE: Did he know that AIG information 24 hours after he said yes to that huge spending bill? Did he know AIG was going to give $165 million of bonuses?
SNOW: Murphy has taken aim at his Republican challenging, who's avoided, until recently, saying how he'd vote on the stimulus plan. Tedisco now says he would have voted against it.
SCOTT MURPHY, DEMOCRATIC CANDIDATE: Not sure. Not sure whether he's in favor of the economic recovery act for a month. I think he had to wait for somebody's poll to come back and tell him what he believes.
SNOW: The special election was called after Democrat Kirsten Gillibrand was chosen to fill Hillary Clinton's Senate seat once she became secretary of state. And the race has gotten both money and attention from both national parties. President Obama endorsed Murphy with Democrats touting in their ads the need to stress jobs.
UNIDENTIFIED MALE, POLITICAL AD: Scott Murphy is the only candidate with the proven business experience we need.
SNOW: On the Republican side, RNC Chairman Michael Steele has gone to the district to campaign for Tedisco. Tedisco's ads try to portray his opponent as a Wall Street fat cat.
UNIDENTIFIED FEMALE, POLITICAL AD: Like AIG, Scott Murphy gave huge bonuses to executives in a company losing millions.
SNOW: And its Republicans, say some political observers, who have the most at stake.
STU ROTHENBERG, ROTHENBERG REPORT: So they would like a win that they can brag about, argue that they've turned the corner, that things are starting to improve for them.
(END VIDEOTAPE)
HARRIS: And Mary Snow joining us live from a polling place in Hudson, New York, without her trusty magic wall.
Mary, no way to know at this point how the race will turn out. But how do things look going into this race?
SNOW: Well, Tony, well no tech here, no wall. But, you know, the latest polls -- what happened is, this is traditionally a Republican district and the Republican in this race, Jim Tedisco, was seen as the early favorite. But late last week, a new poll came out showing that the Democrat, Scott Murphy, had gained momentum and had a slight edge. So big suspense.
But the big wild card, though, is turnout. As you might see here, it's been pretty low. And that is always hard to tell in a special election. But we've talked to a number of voters, too. I mean the attention that's been focused on this district, these voters have been bombarded with mass e-mails and robocalls.
HARRIS: Yes. All right, Mary, appreciate it.
Mary Snow for us.
CNN NEWSROOM continues right now with Kyra Phillips in Washington, D.C.
Take it away, Kyra, Kyra.
