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Obama, Merkel Selling the New Strategy; Where Have the Jobs Gone?; How to Get Hired at a Job Fair; CNN Hero Suezette Steinhardt; Michelle Obama: Role Model to Girls of the World

Aired April 03, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Friday, April 3rd, and here are the top stories in the CNN NEWSROOM.

The new president draws cheers on his tour de France, repairing the rift between the continent and America ahead of the NATO summit.

This line is getting longer and longer. The number of Americans looking for a job tops 13 million. A hard look at today's brutal unemployment stats for March.

Good morning, everyone,

I'm Tony Harris, and you are in the CNN NEWSROOM.

Well, what can you say? A rock star reception for President Obama at every turn on his European tour. But his main message not likely to be received so far.

There you see the president and the German chancellor, Angela Merkel. The president in Germany now for a NATO summit. He will press nations to commit more troops and money for the war in Afghanistan.

He is meeting at the moment, and will shortly go behind closed doors for a meeting with the German chancellor. We expect to hear from both of them next hour. We will, of course, bring you their comments live, right here in the NEWSROOM.

But for now, let's get right to our Suzanne Malveaux, who is traveling with President Obama.

And Suzanne, on this, the 60th anniversary celebration of NATO, you know, it would be great if the president and the German chancellor announced next hour more German help in Afghanistan. Is that likely to happen?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Tony, I don't think so. We know that last year, the German parliament actually announced that there would be an increase in troops to the level of 4,500 inside Afghanistan. Don't think they're going to move beyond that.

But certainly what President Obama wants to do is allow for Germany to contribute in other ways, to push them a little bit when it comes to money or other kinds of resources, perhaps helping out the civilians there. That is really part of his message and part of his purpose for meeting, obviously, with NATO members, and these side meetings that they're having.

He talked about a renewed partnership, that this is a time when the United States is going to listen and learn, and that Europe needs to take more responsibility, perhaps a greater burden in dealing with the mission. He says it's not a U.S. mission in Afghanistan, but rather a NATO mission, a global mission.

And here is how he put it.

(BEGIN VIDEO CLIP)

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: And I think that it is important for Europe to understand that even though I'm now president and George Bush is no longer president, al Qaeda is still a threat, and that we cannot pretend somehow that because Barack Hussein Obama got elected as president, suddenly everything is going to be OK.

It is going to be a very difficult challenge. Al Qaeda is still bent on carrying out terrorist activity. It is -- you know, don't fool yourselves, because some people say, well, if we changed our policies with respect to the Israeli/Palestinian conflict, or if we were more respectful towards the Muslim world, suddenly these organizations would stop threatening us. That's just not the case.

(END VIDEO CLIP)

MALVEAUX: And Tony, a very important meeting that took place earlier today. That was with the French president, Nicolas Sarkozy.

He is not likely to announce that there are any additional French troops necessarily, but one thing that he did do, he spoke very effusively, praising President Obama, and they seem to have developed quite a close and warm relationship in a very short period of time. Sarkozy saying that it feels really good to work with a U.S. president who wants to change the world and who understands the world.

And then, Tony, he did make an announcement, kind of a symbolic gesture, if you will, saying that he would take one detainee from the Guantanamo Bay detention center that President Obama wants to close, a French detainee, back to his homeland, to his country, to show that he does support closing this detention facility. So that was something that was significant.

But what you're actually seeing here, Tony, is the president trying to use his popularity, the excitement around him, to really put pressure on some of the European leaders to get them to come around, do things they wouldn't necessarily want to do. And part of that is really focusing on Afghanistan and contributing more -- Tony.

HARRIS: Yes. All right.

Our Suzanne Malveaux for us.

Suzanne, great to talk to you, as always. Thank you. And be sure to watch President Obama's remarks live from Baden- Baden, Germany, within the hour, we believe. Right now, they are meeting, a pomp and circumstance, a very lovely ceremony going on right now.

Do we still have those live pictures?

Maybe just give you a bit more of the flavor of that. But, of course -- all right, we'll get them up in just a second. But of course we'll have those comments for you from both of those world leaders, right here in the NEWSROOM, next hour.

We'll bring you an extended portion of president's comments earlier this morning, as he explained why it is important for NATO to expand its participation in the Afghanistan war. That's about at the half-hour.

So what exactly is NATO? Here is a quick look.

The North Atlantic Treaty Organization is an alliance with 28 members. Central to the membership, the pledge that each member will respond to an attack by an outside force. But that response would not have to be military. It is headquartered in Brussels, Belgium, and tomorrow marks its 60th anniversary.

Fresh numbers out this morning paint a depressing picture of America's labor market. The jobless rate sprinting to 8.5 percent in March.

Senior Correspondent Allan Chernoff is in New York.

And Allan, what does that bring this number to? Is it two million jobs lost so far this year?

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: Two million jobs lost in this year alone. If we go back to the beginning of the recession, December of '07, we're talking five million jobs lost.

I mean, any way you look at these numbers, they are bad.

HARRIS: Yes.

CHERNOFF: They are depressing. And we all knew it. We all know somebody who has lost work.

HARRIS: That's right.

CHERNOFF: It's just throughout the entire economy.

Let's break these numbers down, first of all, by gender.

We've got March. As you see, the overall number, 8.5 percent, up .4 of 1 percent. Among whites, the unemployment rate, 8.8 percent. I'm sorry, let's first do gender, OK?

Men, 8.8 percent. And then women, 7 percent. The fact is, there are more men hunting for jobs. That's why you have a higher number among men.

Now, among gender and race, you've got a lower rate among whites -- 7.9 percent. Hispanics, 11.4 percent. Blacks, all the way to 13.3 percent. That is a very, very high number. But Tony, it's not nearly -- not nearly as high as it was back in November of '83, the last time this overall number was so high. Back then, the unemployment rate among blacks was over 17 percent.

HARRIS: Boy. Allan, let's do this -- you know, just trying to put some perspective on these numbers. Let's talk about jobs as a lagging indicator of the strength of the economy.

So here's the example. Stay with me for a second here.

Allan's Stereo and Storm Doors, right, can't get orders, so you lay off some employees, just to try to make the balance sheet look a little better. Your business starts to improve, but you hold off on hiring until you're sure this is something more than just a blip.

And am I correct in suggesting that that's why the jobs number is a lagging indicator of the overall health of the economy?

CHERNOFF: That's exactly right, Tony. You've got it on the nose there, because even this week, we've started to see a few indicators that there may be some light at the end of the tunnel, that the economy may be bottoming out, factory orders picking up, durable goods orders picking up. But obviously, we've still got miserable employment numbers here.

HARRIS: Yes.

CHERNOFF: Employers have to be confident that business indeed will pick up before they want to hire more people.

HARRIS: Well done. All right. Allan, appreciate it. Thank you.

Allan Chernoff for us in New York.

Let's drill down deeper on the March jobs report. Helping us to do that, our Brooke Baldwin.

Brooke, good to see you.

I can't get over how many jobs have been lost. I mean, what -- this year alone.

BROOKE BALDWIN, CNN CORRESPONDENT: This year alone. I know it was the headline, the font there under Allan. But it bears repeating -- two million jobs lost this year. Three months, two million jobs.

Take a broader look at the picture here -- 5.1 million since December of '07. That's when we began the recession. Two million, as I mentioned, this year alone.

So our next question, who is getting hit the hardest? Now, Allan mentioned some of the ethnicities. He mentioned for African- Americans, 3.3 percent. You know, that's not quite as bad, he says, ,as it was...

HARRIS: So 13.3 percent for African-Americans now.

BALDWIN: But Hispanics...

HARRIS: Yes.

BALDWIN: ... we talked about Hispanics, you and I, a couple weeks ago.

HARRIS: That's right. That's right.

BALDWIN: And last month was the first month that we saw double digits when it comes to the unemployment rate. So now it's climbed even higher to 11.4. I believe it was 10.9 last month.

HARRIS: That's right. I think you're right. Yes.

BALDWIN: Moving on, another group, you know, you don't often think about -- parents, you probably do, your teenagers. You know, sure, they're not working full time, they're younger, we assume this number is going to be a bit higher.

You can see right here, it's 21.7 percent. But what we thought was interesting -- we did a little digging. We found that the unemployment rate here, it's up 5 percent from just a year ago.

HARRIS: Got you.

BALDWIN: So not a good situation.

HARRIS: No.

BALDWIN: You know, we're approaching spring, summer, summer jobs for teenagers.

And then we got to this number, typical fallback jobs. If we can move to the next graphic here, take a look at this. These are the jobs you typically think, all right, if I can't get a job in something specifically, I can always get a job at a restaurant, right?

HARRIS: Right. Right. Right.

BALDWIN: Or maybe get a job in support services. They are all down. That is not good news.

But we want to end on some good news. We want to talk about where the jobs are. And this next graphic, not necessarily surprising. We know the jobs, and they're needed -- health care, education, government.

So that said, we want to pull up something pretty cool for you, if you will move for me for just a second here.

HARRIS: I'm with you. I'm with you, Brooke.

BALDWIN: Move along with me. So we have -- head on over to CNN.com. We have a lot of great people working down there on things to help people who are jobless.

You go to CNN.com. OK? So follow me here, where the jobs are.

This is the main page under CNN.com/living. You can click on this icon down here. This is job fairs, right?

Click on "Job Fairs," and we have an entire map that should pop up nationwide. So let me scroll down, and you can see all of these different red dots. This is thanks to monster.com, and places like that.

So you want to check out Dallas and see when the upcoming Dallas job fair is. April 16th, July 21st.

You can go -- let's go over to Portland, Oregon, over here. They are in need June 6th, July 22nd.

So it's a pretty awesome tool if you're looking nationally for a job fair. And job fairs aside, though, you know, if you're having trouble, you are trying to get out, you want a job, you want to hear all about the different careers that are out there, well, I have a special something for you coming up next hour. We're saying it's Career Centers on Wheels, counselors coming to you.

HARRIS: Really? So you don't have to go find the counselors, there is something out here where the counselor will actually come...

BALDWIN: Come to you.

HARRIS: ... come to you.

BALDWIN: We need it. We need it.

HARRIS: We need that.

Hey, Brooke, good stuff. Good information. Thank you. Thanks for the drilldown on that.

BALDWIN: Sure.

HARRIS: How to spend $3.5 trillion. The House and Senate last night approved separate versions of the budget plan for the next fiscal year. The plans are essentially a blueprint for President Obama's economic agenda going forward.

Neither budget received a single Republican vote. Not one. GOP leaders blasted the level of deficit spending, while Democrats touted middle class tax cuts and plans for health care reform.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: In terms of fairness, I'm so pleased that this budget. It will give a tax cut to over 95 percent of the American people. At last some fairness -- more fairness in the tax code. And fairness that says that health care is a right, not a privilege, and that we can move forward for universal quality, accessible health care for all Americans, on the basis of this budget.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R), MINORITY LEADER: In short, the Democrat budget spends too much, it taxes too much, and it borrows too much from our kids and grandkids.

(END VIDEO CLIP)

HARRIS: Both plans allow the Bush tax cuts for couples making more than $250,000 a year to expire in 2010.

We will check the markets to see how they are reacting after another dismal jobs report. You can see the Dow there, down -- what is it -- 61 points. And -- because I can't see. And we are, of course, awaiting President Obama's comments live from Germany

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: This morning's jobs report and the jump in the employment rate are front and center on Capitol Hill right now. A joint House and Senate committee is holding a hearing on the country's dismal employment picture.

As we told you earlier, employers cut 663,000 jobs in March. The unemployment rate rose to 8.5 percent. That is the highest since November of 1983.

Boy, let's get a check of business news now.

(BUSINESS REPORT)

HARRIS: And we want to help those of you who are unemployed and looking for work find a job in this tough economy. We continue to see long lines at job fairs across the country, but a big complaint is people aren't getting hired at these events.

So I turned to career-savvy expert Torrey Johnson for tips on how to work the room the next time you're at a job fair.

(BEGIN VIDEOTAPE)

TORY JOHNSON, CEO, WOMEN FOR HIRE: Nobody prepares people for being unemployed. Nobody ever educates you on, what do you do at a job fair? So a lot of people simply show up and they think they'll deal with it right there.

HARRIS: OK. Well, talk about this introduction, because this has to be key. You talk about need to know, you need do your research.

JOHNSON: Do your research.

HARRIS: And then you need to prepare, you tell us.

JOHNSON: Solid introduction. So when I walk up to you, you know, am I going to walk up to you with...

HARRIS: "Hi, I'm Tony Harris."

JOHNSON: ... "Hi," with like a weak handshake, barely looking at you? No. I'm going to have a firm handshake, fabulous eye contact.

HARRIS: Give me one. Give me one.

JOHNSON: Yes. I'm going to, like, you know -- and I'm going to look you in the eye and I'm going to say, "I'm Tory Johnson. Here is what my background is. Here is why I would be an ideal asset to work for your organization."

And that's how we're going to strike up a conversation. And talking about conversation, it's important to talk to everybody when you go to these events. So not...

HARRIS: And that's tip three.

JOHNSON: That's essential.

HARRIS: Yes. Talk to all of the attendees.

JOHNSON: Not just to the employers. So maybe you're coming because there is one or five or 10 of the companies that you're interested in, but the person who is standing next to you, behind you, in front of you, could be your best connection. When you've got so many people in a room like that, share leads, share information, share ideas.

HARRIS: You also tell us to take advantage of any and all seminars, huh?

JOHNSON: That's right. I know at our events and at most of the career fairs these days, there are things like free resume critiquing, seminars that can help you to really feel empowered in your job search.

HARRIS: Nice.

JOHNSON: Very important.

And the last, and probably the most important of all, follow up. So you don't go to a job fair, pass out resumes, and then go home and wait for your phone to ring. You need to make the phone ring by following up on all those leads of the people that you met.

So when you talk to an employer, write down the name of the person that you spoke to. You want to be able to then call them the next day, e-mail them the next day, and say, here is who I was among a sea of those people. Here is why you need me.

(END VIDEOTAPE)

HARRIS: Something Tory is working on, there will be a work from home expo here in Atlanta tomorrow, and the boot camp moves to Los Angeles April 14th. So just go to womenforhire.com if you want some additional information here.

A lot of pictures to show you now. Just getting the information now, but I guess the pictures essentially tell the story.

This is a pretty massive mudslide. This is Whidbey Island. This is in the Seattle area. And you see that gentleman there -- yes, exasperated, what to do, you know, when you're confronted with this scene.

Perfect timing as the shot widens out a bit, a huge mudslide there. There is an area that features a lot of vacation homes, but there are some full-time residents that live on the island. At this point, no reports of injuries.

This is pretty nasty. Again, a pretty massive mudslide, as you can see, Whidbey Island, in the Seattle area.

We'll keep an eye on those pictures. So far no, injuries to report.

Michelle Obama creating her own spotlight in Europe.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY: Nothing in my life's past would have predicted that I would be standing here as the first African-American first lady of the United States of America. There was nothing in my story that would land me here.

(END VIDEO CLIP)

HARRIS: All right. Pretty moving stuff, when you think about it, from the first lady yesterday. More of Michelle Obama's moving comments to a girl's school in London after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JAY LENO, "THE TONIGHT SHOW": At the big G-20 summit, President Obama met with the Chinese president, and they had the traditional exchanging of gifts. The Chinese do that. They exchange gifts. President Hu gave President Obama a gift made in China, and President Obama gave Hu a gift from America made in China. (END VIDEO CLIP)

HARRIS: That's pretty funny from Jay Leno.

CNN's Anderson Cooper was in London for the G-20 meeting. He spoke with Treasury Secretary Timothy Geithner last night about the importance of that big meeting.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, HOST, "AC 360": European papers have called this the most important economic summit since World War II.

What did you actually accomplish though? What new or concrete steps?

TIMOTHY GEITHNER, U.S. SECRETARY OF TREASURY: The most important thing, again, is to get the leaders of the world these countries represent, 85 percent of global output, to stand together and say we're going to act together to do what's necessary to bring this recovery back on track, and we're going to act now to lay the foundation for a stronger financial system in the future, a more stable system, does a better job of protecting our economies.

(END VIDEO CLIP)

HARRIS: Anderson Cooper is looking at the global financial crisis. "AC 360" wraps the week from London tonight, 10:00 Eastern, 7:00 Pacific.

(COMMERCIAL BREAK)

HARRIS: We are expecting comments from President Obama shortly. He is in Baden-Baden, Germany, for a NATO summit marking the alliance's 60th anniversary. The president's mission, to convince NATO nations to provide more troops and money for the war in Afghanistan.

(APPLAUSE)

Man, this was the scene just a few hours ago across the border in Strasbourg, France. President Obama speaking before an enthusiastic crowd of students. He stressed the importance of NATO support in the Afghanistan war.

Let's have a listen.

(BEGIN VIDEO CLIP)

OBAMA: Now, I understand that this war has been long. Our allies have already contributed greatly to this endeavor. You've sent your sons and daughters to fight alongside ours. And we honor and respect their service and sacrifice.

And I also know that there's some who have asked questions about why are we still in Afghanistan. What does this mean? What's its purpose?

Understand, we would not deploy our own troops if this mission was not indispensable to our common security. As president, I can tell you, there is no decision more difficult, there's no duty more painful than signing a letter to the family of somebody who has died in war.

So I understand that there is doubt about this war in Europe.

(END VIDEO CLIP)

HARRIS: Hey, let's quickly get to Baden-Baden, Germany now. The president and the German chancellor, Angela Merkel.

(JOINED IN PROGRESS)

ANGELA MERKEL, GERMAN CHANCELLOR (through translator): ... and we're glad that on the occasion of the 16th anniversary of NATO, we have the opportunity to meet as president, here visit the Federal Republic of Germany. And we are very glad that on the occasion of this jubilee of NATO, we have the opportunity to talk about the basics of our alliance.

In our bilateral talks, we concluded again that we have long- term, long years of friendly relations. And I do hope that we will be able to continue those in the years to come.

We had the entire range of tasks ahead of us and we reviewed them. And after London, we reviewed this meeting again, which was very successful by the world showed that it was willing to work together. And that the United States of America also came to Europe with this will. We are very grateful for this. But we think it's also a common task to manage this, because the transatlantic relations are a very strong force in order to get over this financial crisis.

TRANSLATOR (speaking): Sound is gone. Sorry, I can't hear anything.

MERKEL (through translator): ... the internal situation of Europe...

(CROSSTALK)

MERKEL (through translator): ... we will be able to lend a contribution to solving the problems of the grandstanders is a big, huge responsibility for all of us. We want to bear our burden of responsibility. We want to do something in order to train the Afghan National Forces but also the police in Afghanistan.

We want to shape relations with Iran in such a way that a nuclear rearmament of Iran is simply made not possible, but then at the same time, make it possible for the Iranian people to have a hopeful and prosperous future. We are very gratified to hear that the United States wants to have a fresh beginning, a fresh start in this relationship. We also talked about the Middle East, where the peace process will have to be pursued and in the direction of the two-state solution.

I think there is, indeed, a broad array of issues that we need to contend with. The federal government of Germany stands ready to give its contribution towards solving them.

And we would like to bid you a very warm welcome, indeed. I think that you've seen that the press was actually showing a great deal of welcome to you. And you saw the people along the way who were waiting for you for many hours with their little flags waving. And we're pleased to have you. Welcome. We hope to welcome you again soon.

OBAMA: Thank you, so much.

It is wonderful to be here in Germany. And I want to thank Chancellor Merkel for her leadership, her friendship. And to say to all of the German people that we are grateful to have such an extraordinary ally. And I think I speak on behalf of the American people that we consider the relationship between the United States and Germany to be one of our most important relationships.

And I have been spending quite a bit of time lately with Chancellor Merkel, and continue to be impressed with her wisdom and leadership and diligence in pursuing the interests of her people.

Over the last several days, what we have been grappling with is an economic crisis that is unlike anything we have seen since the '30s. And just a stark reminder for those of us in the United States, our jobs report came out today. And it showed that we had lost 663,000 jobs just this month, which has pushed our unemployment rate to 8.5 percent. The highest in 25 years. And we've lost 5.1 million jobs since this financial crisis and recession began.

So obviously, this is hitting the United States hard. But I think what we discussed and the reason we acted swiftly and boldly in London was the fact that none of us can isolate ourselves from a global market. That the economies now are so interdependent, capital flows across borders occur in the blink of an eye. And as a consequence, if we do not have concerted action, then we will have collective failure.

I am very proud of the work that was done in London. I think the fact that we have a regulatory framework that can prevent this crisis from happening again, the fact that we have taken collectively steps to not only encourage growth, but also to make sure that we're helping emerging markets and poor countries deal with the consequences of this financial crisis, none of those things alone guarantee immediate recovery, but they are necessary foundations for recovery.

And because we committed to meeting again in the fall, it allows us to review what we've done. And if what we've done is not sufficient and we continue to see a deterioration in the situation, then we're going to go back at it. And keep on doing so until we get it right.

As Chancellor Merkel mentioned, the economy is just one of our challenges. And as we celebrate this important landmark for NATO, we are reminded that not only do we have immediate joint efforts in Afghanistan that have to be bolstered and have to become more effective, but we also have to have a strategic framework for how NATO moves forward.

This has been the most successful alliance in modern history. An alliance that was so effective that we never had to fight. And that kind of vision that was implemented, that kind of imagination, has to be adapted to the 21st Century challenges that we face. Not just Afghanistan, but there are a whole host of other hot spots and challenges, and we've got to figure out what is NATO's role in that, what is the partnership between the United States and the European Union's role in that. Whether it's issues of climate change or poverty or -- or trying to bring about peace in regions that have known conflict for a very long time, in all of these areas, cooperation is going to be critical and leadership from our two countries is going to be critical.

So I'm very pleased to have efforts, and I am confident that moving forward that we are going to be able to make slow and steady progress to advance the cause of peace and prosperity.

With that, why don't we take some questions?

MERKEL (through translator): Yes. Well, maybe we ought to start with the German side. Mr. Viveron (ph), please.

QUESTION (through translator): Mr. Viveron (ph) from the Second German Television Chain.

QUESTION (speaking): ... here in the streets of Baden-Baden by the people. But there is also fear and anxiety in Germany about what the future might bring. Your administration is calling for a fundamental reform of NATO or perhaps in your words, change. But what, Mr. President, is your personal grand design for the new NATO? Will it be the policemen of the world, the global one? Should Germany show more responsibility, especially in Afghanistan?

One question for the chancellor.

QUESTION (through translator): Madam Chancellor, where do you see the limits of NATO and where do you see the limits of German engagement in the world?

OBAMA: First of all, I don't come bearing grand designs. I'm here to listen. To share ideas, and to jointly, as one of many NATO allies, to help shape our vision for the future.

If NATO becomes everything, then it's nothing. So, obviously, we're going to have to define and clarify its roles, responsibilities for the 21st Century. And what we should expect is that we will set up a process in order to do that. I don't think Germany should feel anxious about that. I think that the United States and Germany and all of the other NATO countries should see this as an opportunity to put together an architecture that is - meeting our new challenges as the - the prior architecture was at meeting the challenges of the Cold War.

And you know, obviously we already have...

HARRIS: I have no idea what just happened there. Was that Al Green? What was that?

Let's -- let's -- did we clear up the signals? Do we have translation? Let's go back to the president and the German chancellor.

All right. We're still working on this.

Let me sort of recap where we are right now and you guys just let me know when we reestablish and clean up the line.

The president and the German chancellor, obviously, reflecting on their bilateral meeting. Discussing, of course, a two-state solution for Israel and the Palestinians. There were also discussions about doing whatever is necessary to keep Iran from acquiring a nuclear weapon.

The president certainly on the news of the day talking about the latest jobs report from the Labor Department on the March unemployment figures. The jobs report, the president said, is an opportunity, also a call for collective action. The job losses in the United States and the job losses around the world, certainly calling for collective action to rebuild the global economy.

So there you have some of the comments from the president so far, and the German chancellor.

Let's take a quick break. We'll come back with more CNN NEWSROOM in just a moment.

(COMMERCIAL BREAK)

HARRIS: Very quickly now, let's get you back to the joint news conference in Baden-Baden, Germany. President Obama and the German chancellor, Angela Merkel.

(JOINED IN PROGRESS)

QUESTION: ... is inevitable if Germany and China and others do not move closer to balance. What is your response to that?

OBAMA: OK. Well, John (ph), I do think that, even as we are trying to solve the immediate crisis, we've got to learn some lessons from previous years to figure out how do we avoid another crisis.

And if you look at the U.S. economy, what we've seen is a series of bubbles and then busts, much of it having to do with huge flows of capital into speculative sectors of the economy. Part of the problem that we saw was a lack of regulatory oversight, and so we're moving very aggressively on that front.

And in the short term, my biggest concern is how do I just make sure that people get back to work. So our stimulus package, our efforts to stabilize the housing market, our efforts to remove the toxic assets from the banks so that banks start lending more effectively and businesses can open and people can get hired again - all that is focused on my top priority right now, which is making sure that we're no longer hemorrhaging jobs and we start creating jobs.

As we emerge from the crisis, though, we're going to have to take a look at how do we ensure -- a term that Chancellor Merkel spoke quite a bit about at the summit - and that is sustainable economic growth. And in order for growth to be sustainable, it can't be based on speculation, it can't be based on overheated financial markets or overheated housing markets or U.S. consumers maximizing out on their credit cards or a sustaining, nonstop deficit spending as far as the eye can see.

So, once we've stabilized the economy, we're going to have to start bringing these huge deficits that our government is running, we're going to have to start bringing those down. Families are going to have to start making more prudent decisions about spending and increasing their savings rate. Businesses are going to be making investments, and we want to spur as much investment as possible, but the whole point is to move from a borrow and spend economy to a save and invest economy.

Now, the U.S. will remain the largest consumer market and we are going to make sure that it's open. One of the principles that we very clearly affirmed in London was that protectionism is not the answer. It's not the Germans' fault they make good products that the United States wants to buy. And we want to make sure that we're making good products that Germans want to buy. But if you look overall, there's probably going to need to be a rebalancing of who is spending, who is saving, what are the overall what are the overall trade patterns.

And it - by the way, it doesn't just include developed economies like Germany and the United States. It also means we want to encourage emerging markets to consume more. You know, if you start seeing China and India improve the living standards of its people, those are huge markets where we can sell. And that's why the last two days that I've spent talking about the international economy relates directly to the jobs that are being lost in the United States.

I know this is a long answer, but it was a big question.

The bottom line is that as long as the United States and Germany are keeping our open trading relationship, as long as our approach to currency is one that ensures fairness, which generally speaking, the relationship between the United States and European central banks has been very cooperative and very solid. As long as we have proper rules of the road and regulatory frameworks in place, then the key is to have friendly economic competition. The United States making the best products, making the best decisions, making the best investments, and Germany doing the same. And then all of us can do well together.

MERKEL (through translator): Yes, we love competition and best products and we are not in a bad position at all. And in that sense, this is the driving force of the market economy: to bring good ideas on the market.

The question is, we have to fight the crisis, first of all, beyond any doubt. That's the priority. And we did something very important in London, because we helped vote who come fight the crisis out of their own strength like we can. We can act ways of financial stimulus and that shows the strength of our countries.

But we obviously have to keep the future in our sight as well and make sure this crisis does not repeat itself. And I'm absolutely serious about this, because I think that it's a major disruption. Because we don't say for nothing that there hasn't been a crisis like this since the '30s of the last century.

And it's also a destruction in the sense that people say, does economy decide politics or can politics actually do something positive for the people through the economy? And that question, in my opinion, has to be won again or gained again by politics. And that is something that we can't do nationally anymore, we have to do it together.

And a country like Germany that will age amazingly in the next decade, such a country will obviously have to ask how many debts will be accept and how can we make sure we still have the strength for innovation in the future. Germany is already paying 15 cents per Euro in interest. We can let it go up to 30, but then we'll have no strength anymore to be operative (ph).

We're also a country that has a high social level, that should be maintained as well. It is absolutely imperative for us that we don't lose sight of the future.

It also means, obviously, that we do everything now to get out of this crisis as quickly as possible. And that is why we had two parallel tracts in London. And Germany is absolutely interested in that, not only us and the United States of America get back on their feet, but the emerging countries as well. Africa for example. And that is why we will also offer our rate there and do everything that those things happen.

Apart from that, we are very grateful for having the attitude of non-protectionism. That is something that unifies us, which is the only thing that will help us to get out of the crisis. And that this wasn't done in the '30s was one of the big mistakes and we don't want to repeat that one.

Mr. Busso (ph).

HARRIS: All right, we're going to break away from the news conference for a moment and let you know that if you'd like to continue to watch the news conference live - let's do this in this order -- there you go -- you can watch it now at CNN.com live. Let's do this, let's take a look at more of the president's schedule. We will certainly discuss this news conference with our Suzanne Malveaux at the top of the hour. The president will attend a NATO concert in Baden-Baden this afternoon, followed by a working dinner with all of the NATO leaders. The, the president goes back to Strasbourg for the night. Tomorrow, NATO events are scheduled in Strasbourg, France and Kehl, Germany.

Let's take a quick break, we're back in just a moment.

(COMMERCIAL BREAK)

HARRIS: With 13 million people unemployed and home foreclosure rates skyrocketing, the waiting list for permanent affordable house is as long as five years - can you believe that? - in some parts of the United States.

This week's "CNN Hero" is tackling the program head-on in her own community.

(BEGIN VIDEOTAPE)

ANNOUNCER: This is CNN HEROES.

SUEZETTE STEINHARDT, COMMUNITY CRUSADER: When we have an economy like this, the people at the very bottom are really going to be hit.

UNIDENTIFIED FEMALE: We couldn't find a place to live. With our income, that was impossible.

UNIDENTIFIED FEMALE: We tore these seats out and we had a twin- size mattress.

STEINHARDT: If a family finds themselves homeless, the start at the shelters. From the shelters, they funnel them into the various transitional program.

Some have to release you after two years. If their incomes are just not high enough to afford any housing, we have to do something so they don't slip through the cracks and go back into homelessness.

My name is Suezette Steinhardt and I'm helping families out of homelessness one family at a time.

The majority of our clients are single moms. We will take them for up to three years in a rental assistance program. I make them aware of anything that pertains to education, health, job training. If they go back to school, we pick the kids up from their daycare. Our basement is for evening child care.

It's very grassroots. As an organization we're small and we're working out of my basement.

TEXT: Suezette Steinhardt is currently helping 15 families at risk of becoming homeless to get back and stay on their feet.

STEINHARDT: If you had told me two years ago that I would be doing what I am today, I would say there's no way, I can't do it.

Don't underestimate what you have to give.

TEXT: Nominate a Hero. CNN.com/Heroes

(END VIDEOTAPE)

HARRIS: If you'd like to help or if you know someone that's doing something so extraordinary that they deserve to be a "CNN Hero," just tell us all about them. Remember, all of our "CNN Heroes" are chosen from people you nominate at CNN.com/heroes.

Want to get some breaking news just into the CNN NEWSROOM. In Binghamton, New York, we're getting indications now of a shooting. At least four people shot at the American Civic Association building. That in Binghamton.

And about 20 other people have been taken hostage. OK? Local apartments also in the area are being evacuated. Four people have been removed from the building on stretchers and taken to area hospitals. The SWAT team there is on the scene.

Again, there are reportedly 20 hostages in the building's basement an boiler room. The shooter may still be in the building.

We are going to continue to follow this story, get some pictures for you as soon as we can right here in the CNN NEWSROOM.

First Lady Michelle Obama, she dazzled the British press, she charmed the queen of England, and at an all-girls school in London, she was swarmed by a screaming crowd of students. In an emotional message of encouragement, Mrs. Obama told the girls they already have everything they need to succeed.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: There are diamonds like this all over the world. All of you are jewels. You are precious and you touch my heart. And it is important for the world to know that there are wonderful girls like you all over the world, all over the world.

And you, too, with these same values can control your own destiny. You, too, can pave the way. You, too, can realize your dreams.

And then, your job is to reach back and to help someone just like you do the same thing. History proves that it doesn't matter whether you come from a council of state or a country of state. Your success will be determine by your own fortitude, your own confidence, your own individual hard work.

That is true. That is the reality of the world that we live in. You now have control over your own destiny. And it won't be easy.

(END VIDEO CLIP) HARRIS: The girls at the school were mesmerized by Mrs. Obama. On CNN's "LARRY KING LIVE," Larry's guest talked about comparisons between Michelle Obama and Jackie Kennedy and what the first lady's visit meant to those girls.

(BEGIN VIDEO CLIP)

JUNE SARPONG, BRITISH TV PERSONALITY: Talking about that school, I know that school very well. I have a friend who teaches there and my cousin went to that school, and I visited that school on numerous occasions.

I mean, I cannot even begin to explain what that would have done for the self-esteem of those girls. I think Michelle Obama is actually a great role model for all women of all races, because she shows us that actually, if you work hard, and you have your own identity, you can achieve so much. She's not only special because she's married to Barack, she's special because of everything she's also achieved in her own right.

COLLEEN HARRIS, FORMER PRESS SECRETARY TO PRINCE CHARLES: I think they were very emotional. It was so fabulous to see them enthusiastic for a positive role model, a black woman out there doing something very special and very superior, rather than -- and not to denigrate, but rather than the usual pop stars and sports people. It was just great to see someone who has worked hard, achieved academically, and gone on to this great success. Even as a black woman here in London, I feel incredibly proud of her, and I'm sure those young girls were really looking up to her and feel quite inspired by what she had to say today.

(END VIDEO CLIP)

HARRIS: It was something. That's for sure.

Coming up in just minutes, Janet Cohen, the wife of former Defense Secretary William Cohen. The former journalist and author talking about Michelle Obama's moment on the world stage. What a moment.