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How Serious is Taliban Threat?; President Obama Swipes at Credit Card Issuers; 'Mail to the Chief'

Aired April 23, 2009 - 14:00   ET

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

(JOINED IN PROGRESS)

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: She says that having rules are one thing, but remember the mortgage industry had lots of rules during the mortgage crisis. That didn't seem to help very much.

She says it's more important to get legislation on the books. We'll have to wait and see if that actually happens.

KYRA PHILLIPS, CNN ANCHOR: Yes, we'll be doing a lot of waiting. Gerri, thanks.

WILLIS: My pleasure.

PHILLIPS: Are you trapped in a credit card nightmare right now? Skyrocketing rates? Maybe the company is giving you the runaround?

Well, fill us in on our brand new blog page, CNN.com/newsroom. Just click on "Kyra" up top there to get to our stuff. You can also leave your comments there, and we'll read some of them on the air.

Oh, and guess what? I am finally on Twitter, after being forced into it. The name is KyraCNN, all one word. I got a lot of help here with how to do it.

Well, with six days left in his first 100 days, President Obama has something in common with his predecessor. A new CNN Poll of Polls gives Mr. Obama a 64 percent approval rating, 28 percent disapprove. That's almost identical to George W. Bush's ratings in April of 2001.

The Poll of Polls is an average of surveys from AP, Gallup, and Pew.

Now it's time for you to grade the politicians you elected. Join us on President Obama's 100th day in office for the "CNN National Report Card." That's next Wednesday night. Rate the president, Congress, and state leaders with the best political team on television.

Our special coverage starts at 8:00 Eastern online and on TV.

Well, the regular summer shutdown at GM is going to last a lot longer than usual this year. A published report says the automaker is going to extend its usual two-week assembly plant downtime to as much as nine weeks. It's all a part of GM's effort to reduce inventories nationwide. The AP reports that that move could force thousands of workers to be laid off, at least temporarily.

Now, as far as employment goes, it looks like the U.S. economy has taken another step backwards. There were 640,000 new jobless claims last week. That's about 27,000 more than the week before. And the number of Americans getting jobless benefits for a week or more is now more than 6.1 million. That's the highest number since 1967.

Susan Lisovicz will talk more about those numbers in just a minute. She's also got some great ideas on how to get some extra cash into your pocket. Seven side jobs that could tide you over until you get a full-time gig.

Well, more outrage on the bailout. This time from the special inspector general. Neil Barofsky told Congress today he still wants the Treasury Department and the bailed-out banks to spell exactly how they're using taxpayers' money. In many cases, that still a mystery. Barofsky promises to root out waste or abuses wherever he finds them.

(BEGIN VIDEO CLIP)

NEIL BAROFSKY, TARP INSPECTOR GENERAL: It doesn't matter what the size of the fraud is, whether it's large or small. It doesn't matter where the fraud is committed, whether it's on Wall Street or on Main Street. And it doesn't matter who the victim of the fraud is, whether it's the United States government itself, individual, unsuspecting investors, such as the Gray (ph) case, or even struggling homeowners. The federal government stands ready, willing and able to enforce the laws and to make sure that these folks get brought to justice.

(END VIDEO CLIP)

PHILLIPS: Earlier this week we learned that Barofsky has opened 20 criminal investigations, six audits so far.

One struggling community just wouldn't wait on Washington for help. It's got his own stimulus package going to get its own people working and out of an economic emergency. The man behind the idea joins us later this hour.

And check out the arrow on existing home sales in March, pointing down 3 percent, compared to February. The median price actually rose to $175,000. These are figures from the National Association of Realtors.

Also on the upside, the analysts say that the housing market is looking more stable. Some blame the housing woes on predatory lending. The House is holding a hearing on that very issue. And on the table today, a bill to set mandatory minimum standards for mortgage lending.

Now, we're closely watching the potentially explosive situation in Pakistan. Anti-American terrorist threatening one of America's key allies in the war on terror. Here's the latest.

Pakistan has deployed troops to the Buner district, just 60 miles from Islamabad, where Taliban militants have seized at least partial control. Now, the militants are also locking up courthouses and imposing their harsh brand of Islamic law instead. And today, authorities say that a van carrying paramilitary troops was fired on, killing one police officer and wounding another.

Just how serious is that Taliban threat?

Well, CNN International's Jim Clancy gives us an idea.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN INTERNATIONAL CORRESPONDENT: The Taliban isn't backing down. Instead, they are ratcheting up the pressure on a nuclear-armed nation that is struggling politically, economically and militarily.

The Taliban nurtures its following in the tribal areas of the northwest frontier province. In a controversial deal, the government agreed to pull out its troops and allow Sharia law in the Swat Valley. That's about 160 kilometers or 100 miles from Islamabad.

The Taliban was supposed to hand over its weapons. They didn't. Far from it.

Armed elements of the Taliban are now in the Buner district, moving even closer toward the capital. They've taken over a radio station, mosques, and looted NGOs, stealing vehicles and food aid. The Taliban say all they want is to install Sharia law, but it's much more than that.

The Taliban use Sharia law to mark territory, to say we control this, not the government. Sunday, the Taliban rallied in the Swat Valley, and why not? They've made impressive gains.

The Taliban has used beheadings, kidnappings and beatings to force civilians into line. Girls will not be getting an education.

While the U.S. is gearing up for a fight against the Taliban in Afghanistan, the Taliban is expanding its safe haven across the border. The big question? Pakistan's response. If it follows a similar path in Buner as it did in Swat, there are real fears this nuclear-armed nation is careening toward capitulation by negotiation.

Back to you.

(END VIDEOTAPE)

PHILLIPS: The president of the United States taking the head of those credit card companies to task.

Let's listen in.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Obviously we're at a time where issues of credit and how businesses and families are able to finance everything from a car loan, to a student loan, to just paying their bills every day, is on a lot of people's minds. And Secretary Geithner and our economic team has worked diligently to try to restore confidence in the credit markets, to assure that the non- bank financial sector is stronger, to ensure that banks have the capital they need, and that that money is getting out the door to the ultimate end user, the American businessperson and individual. We're still seeing some problems, although we think that we've begun to make progress.

One of the areas, as we move forward and look at financial regulation, how do we create a framework where this kind of crisis doesn't happen again, and how do we create a sustainable model for economic growth and debt that is not based on bubbles and overleveraging on the part of businesses and consumers, is the issue of credit cards and how they're used, and how we can create a more stable, more effective, more consumer-friendly system.

We had a discussion with some of the top issuers here, and what I communicated to them is that I think credit cards are an important convenience for a lot of people. They are a source of unsecured debt for a lot of individuals and small businesses who are creating jobs. A lot of startups may use credit cards for that purpose.

We think that's important. And so we want to preserve the credit card market. But we also want to do so in a way that eliminates some of the abuses and some of the problems that a lot of people are familiar with.

You know, people finding themselves starting off with a low rate, and the next thing they know, their interest rates have doubled. Fees that they didn't know about, but are suddenly tacked on to their bills, a whole lack of clarity and transparency in terms of the terms and conditions of their credit cards.

And so there's going to be action in Congress. Our administration is going to be pushing for reform in this area. We think it's important that we get input from the credit card issuers as we shape this reform, but there -- and I'm going to leave it up to my economic team to work with Congress to evaluate all the various proposals and to get some very definitive language in place.

There are going to be some core principles, though, that I want to adhere to, and I mentioned these to all the credit card issuers involved.

First of all, I think that there has to be strong and reliable protections for consumers. Protections that ban unfair rate increases and forbid abusive fees and penalties. That the days of any time, any reason rate hikes and late fee traps have to end.

Number two, all the forms and statements that credit card companies send out have to be written in plain language and be in plain sight. No more fine print, no more confusing terms and conditions. We want clarity and transparency from here on out.

Number three, we have to make sure that people can comparison shop when it comes to credit cards without being afraid that they're going to be taken advantage of. So, we believe that it's important to require firms to make all their contract terms easily accessible online, in a fashion that allows people to shop for the best deal for their needs.

Not every consumer is going to have the same needs, and some may want to take on a higher interest rate because it provides them more convenience, or it provides them with a higher credit line. But we want to make sure that they can make those comparisons themselves easily. And we think that one of the things that needs to be explored is the possibility that every credit card issuer has to issue a plain, vanilla, easy to understand, simplest terms possible credit card as a default credit card that the average user can feel comfortable with.

Finally, we think we need more accountability in the system, and that means more effective oversight and more effective enforcement so that people who are issuing credit cards but violate the law, they will feel the full weight of the law.

So, we are confident that we can arrive at something that is commonsensical, something that allows the industry to continue to provide loans and to run a stable business model that's not dependent on bubbles, that's not dependent on people getting overextended or finding themselves in over their heads. I trust that those in the industry who want to act responsibly will engage with us in a constructive fashion, and that we're going to be able to get this done in short order.

All right? Thank you very much, everybody.

PHILLIPS: All right. If you just heard all of that, hey, Mr. President, that sounds pretty good, especially for all of us who have credit cards.

I mean, this is what he is protecting with regard to protecting the consumer and holding those heads of credit card companies accountable for what critics are calling abusive and deceptive practices. The president said, OK, we want to get rid of these late- fee traps, rate hikes. We don't want any more fine print in these credit card receipts and account statements.

People can comparison shop. He wants people not to feel threatened to do that, and that they won't suffer for doing that. And also more effective oversight.

Well, a lot of the changes he is proposing the industry is opposing, so it will be interesting to see what kind of negotiation goes on here, what will be devised, and what actually will go into effect, because, of course, all of us, at one time or another, more than likely, has struggled with our credit card companies.

Well, a bitter pill to swallow for conservative groups. The FDA says that it won't appeal a court order easing the rules on emergency contraception.

Elizabeth Cohen joining us live once again, talking more about Plan B.

(COMMERCIAL BREAK)

PHILLIPS: Well, we're pushing forward to the end of President Obama's first 100 days. That's six days away, and polls show that the president's honeymoon with the American people continues.

Today he's taking on credit card abuses, and we're taking your questions to the White House. We call it "Mail to the Chief," and we're joined once again by Vice President Biden's chief economic adviser, Jared Bernstein.

Jared, J. says this. Let's get right to it. "Why didn't the government put stipulations on the credit card companies not allowing them to raise interest rates and decreasing credit limits before giving them stimulus payments? Can something be done now?

Jared?

JARED BERNSTEIN, VICE PRESIDENT BIDEN'S CHIEF ECONOMIC ADVISER: Well, I think, J. -- I think what you need to understand is we have two problems here. One is a very immediate, unique, historical freeze-up in credit markets that demanded and continues to demand our immediate attention. And for that, we have an extensive set of financial plans, and I can take you through them if you've got about an hour and a half and you are having trouble falling sleep. We're talking TARP and that whole set.

On the other set of issues that we're talking today is a consumer protection dimension to this credit card problem. And J., you identify a couple of very key problems there.

It is something that President Obama has been interested in since he was a senator. The Federal Reserve has been taking actions here, because they also regulate some of these credit markets. So we've got some congressional legislation on the issue.

And it's very commonsense stuff, much like J.'s issues, about raising interest rates arbitrarily, even on borrowers who are doing exactly what they're supposed to do, and embedding those rules in fine print that nobody can understand. That kind of commonsense consumer protection is exactly what we're after here.

PHILLIPS: All right. RL asks this, Jared: "Why is there not a federal usury law? How can these banks, which taxpayers have kept from going under, turn around and gouge us yet again?

BERNSTEIN: Well, I think the idea here is that we're trying to take steps, finally, because this has been an issue for a long time. And again, it's not just up to -- the Federal Reserve is well aware of this problem to mitigate the very kinds of problems you're mentioning.

Now, it's up to the market to set interest rates, and there ought to be enough competition between credit card companies that those rates are set competitively. We're not talking about that. What we're talking about are a set of practices that -- perfectly legal practices thus far -- that these firms engage in that really belie common sense and hurt consumers, and hurt credit markets as well. So, for example, they might pull you in with a teaser rate that sounds great, and then, unbeknownst to you, because the language was embedded in something that even your lawyer, if you had one, couldn't figure out, that rate is going to spring back up. You may be paying your credit card bills on time, in a timely fashion, month in, month out -- by the way, to avoid those high interest payments -- but, still, you're doing the right thing, you're paying them down. And yet, even there, your interest rate may go up. There may be an arbitrary cap put on your borrowing limit.

All of that stuff is just totally inconsistent with where President Obama is on transparent accountability in this market.

PHILLIPS: All right. Jared, do you Twitter?

BERNSTEIN: No, I don't Twitter.

PHILLIPS: OK. All right. I'm old school too.

BERNSTEIN: Still figuring that one out.

PHILLIPS: Yes. I just -- I'm attempting to, I'm finally doing it. So, I'm going to go for some twitters here. Hopefully...

BERNSTEIN: I mean, one issue I have, my fingers are just big, and so when I try to do that stuff, it doesn't work that well. I think I'm going to have to evolve differently or something.

PHILLIPS: Well, do me a favor and help us out and get on Twitter, because I need some more followers and I'd like to follow you. It helps us, too, get some questions.

BERNSTEIN: OK, I'll try.

PHILLIPS: Here's my first twitter via you, Jared. This one is coming from Geo Larsen (ph), twittered this question: "Will the White House or Congress redo bankruptcy laws so that consumers can get relief from creditors, maybe keep their homes and college funds?"

BERNSTEIN: Let me tweet back to this twitter, which I don't know what that means, but it sounds right.

We don't have a plan on our agenda right now to revisit bankruptcies. Right now, although that is something that is part and parcel of a general sense of consumer protection in the financial industry, that, of course, we're talking about today, right now, our plans are very much about short term, get the economy going again, 3.5 million jobs between now and the end of next year. We obviously have long-term plans vis-a-vis energy, health care, financial markets, housing.

The consumer protection, which is what our twitter is getting at, the consume protection dimension we're talking about today has to do with fixing some of these abuses in the credit cards. That will help stave off undeserved bankruptcy for people who are, even though they're doing the right thing, they end up being stuck in a vice of abusive credit card practices. That's the part we're trying to work on right now.

PHILLIPS: Well, and just looking at what the president said, getting rid of late-fee traps, rate hikes, having more effective oversight, I'll tell you what, if the administration can pull that off, you're going to have a lot of happy voters, Jared.

BERNSTEIN: You know, Kyra, you've got 80 percent of households out there with credit cards. Every one of them has enough common sense to know that those kind of rules are just not fair. They're not transparent and they're not fair, and they need to be changed.

PHILLIPS: Absolutely.

Jared Bernstein, great talking to you. Thanks so much.

BERNSTEIN: My pleasure.

PHILLIPS: All right. Twitter to you soon.

BERNSTEIN: Maybe.

PHILLIPS: Well, the first 100 days ends Wednesday, and we do want to hear from you. This is your chance to grade the leaders you elected last November, weigh in and check out a prime-time event that we call the "National Report Card," 8:00 p.m. Eastern, next Wednesday, on CNN and CNN.com.

Well, today CNN brings together money and Main Street, where we see the real impact of the current economic climate on real Americans. Plenty of folks around the country dealing with foreclosure. One priest in the suburb of Los Angeles found it's better to deal with foreclosure as a group.

CNN's Thelma Gutierrez brings us the unique story.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): Pacoima, California, is a community in crisis.

REV. JOHN LASSEIGNE, MARY IMMACULATE CHURCH: The people here were targeted, again, by banks and investors.

GUTIERREZ: This southern California community was a target for predatory lenders. And now, one out of every nine homes in some stage of foreclosure.

LASSEIGNE: Some of them have fallen behind and live in fear of losing their homes.

GUTIERREZ: So, this Catholic priest, who has never owned a home himself, is preaching Foreclosure 101 to his flock.

LASSEIGNE: The banks, the obligated to modify the loans...

GUTIERREZ: It's a twist on the gospel for Juana Rodriguez (ph), who has a high-interest subprime loan, and Juan Carlos Hacobo (ph), whose home is about to be sold off by the banks.

UNIDENTIFIED FEMALE: We need you as a community to be there. United, we can do it.

GUTIERREZ: Father John Lasseigne and community organizers from a group called One L.A. (ph), want the banks to negotiate with the families.

LASSEIGNE: There are actually hundreds, if not thousands, of families in my immediate neighborhood at risk of losing their homes.

GUTIERREZ: Over several months, Juana (ph) and the others are prepped on finance. She's being taught the art of negotiation and how to understand the stuff in fine print she didn't know before. The meetings are standing room only.

UNIDENTIFIED MALE: They see that we're not alone, that we are fighting for our homes as a community.

GUTIERREZ: Three hundred families strong, Father John and his allies convince a half-dozen banks to come to the table. This is where Juana and the others put all they learned to the test.

UNIDENTIFIED MALE: As a result of these negotiations, we're going to have evidence of what the banks are willing to do and not willing to do.

GUTIERREZ: Evidence One L.A. (ph) and Father John say they will present to Congress. But for now, Juan Carlos had his foreclosure temporarily postponed. Juana (ph) negotiated her way out of an adjustable to a 30-year fixed loan. For her, it's a fresh start and an answer to her prayers.

Thelma Gutierrez, CNN, Pacoima, California.

(END VIDEOTAPE)

PHILLIPS: We're going to stay in touch with Father John and the community of Pacoima to let you know about their progress. You can see more "Money & Main Street" with Roland Martin tonight, 8:00 Eastern. And a new "Money & Main Street" every Thursday morning on "AMERICAN MORNING."

(COMMERCIAL BREAK)

PHILLIPS: Well, you know it's serious when the House of Blues club is doubling as a shelter. An intense and very mobile wildfire moving up the South Carolina coast and into the breadbasket of its tourist industry. No injuries reported so far, but dozens of homes are in ruins right now.

(WEATHER REPORT)

PHILLIPS: Well, from one war zone to another, can you imagine a journey like that? Thousands of U.S. troops are making it right now, and we're going to take you with them. (COMMERCIAL BREAK)

PHILLIPS: Let's get back to our developing story now. Pakistan's government pushing back against Taliban militants, but the militants are standing their ground. New ground that they took just this week. Here's where things stand right now. Pakistan has deployed troops to the Bunar district just 60 miles from Islamabad where Taliban militants have seized at least partial control. The militants have been locking up courthouses, imposing their harsh brand of Islamic law, and today authorities say that a van carrying paramilitary troops was fired on, killing one police officer and wounding another.

In Iraq, one of the most wanted terrorists is reportedly in custody, but there's a lot of skepticism right now. The Iraqi military claims that it nabbed a top al Qaeda-linked terror leader. The spokesperson says that troops seized Omar al Baghdadi in a Baghdad offensive, but there's been no confirmation from U.S. forces. It's believed that al Baghdadi heads up an umbrella group that includes al Qaeda in Iraq, blamed for countless attacks on troops and civilians.

Well, fighting in one war is grueling enough, but what about fighting in two? Thousands of U.S. troops are now going through a twin tour of duty. Our Frederik Pleitgen follows them from Iraq to Afghanistan.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN CORRESPONDENT (voice-over): Wheels up from Baghdad, American troops leaving Iraq, but not heading home. We're in the cockpit of an Air Force C-17 cargo plane headed for Kandahar, Afghanistan. On board, soldiers and a mine-crew vehicle from the 4th engineering battalion, redeploying straight from Baghdad, as the U.S. shifts its focus from Iraq to Afghanistan.

LT. COL. KEVIN LANDERS, U.S. ARMY: The president has asked our army and our country, basically, to support his initiative to kind of change the effort, if you will, or bolster the effort in Afghanistan. And we're really spearheading some of that effort.

PLEITGEN: The soldiers hadn't even finished painting their emblem on the blast walls at this camp in Iraq. They deployed here about two months and now Private First Class Kimble Han is already tearing down the tents his unit just finished setting up.

PFC. KIMBLE HAN, U.S. ARMY: I think we look forward to it. I think we've been prepared. I think we've all done the training that's necessary to accomplish the missions we have.

UNIDENTIFIED MALE: Lock and load.

PLEITGEN: Preparation for Afghanistan includes extra target practice.

UNDENTIFIED MALE: You're jerking when you're pulling the trigger, you're jerking it. PLEITGEN: As they get ready to face the Taliban in possible firefights. The 4th engineering battalion specializes in route clearance, clearing roads of bombs and land mines.

LT. MATTHEW FITZGIBBON, U.S. ARMY: Years and years of war going on in the Afghanistan area, there's a lot of anti-vehicular and anti- personnel mines that are still out there that haven't been cleared.

PLEITGEN: Their skills are so badly needed in Afghanistan, the military is airlifting the entire unit out of Iraq. Five hundred soldiers and their special vehicles, each weighs about 40,000 pounds.

(On camera): Right now, the soldiers that you see under this vehicle right here, what they're doing is they're putting wood blocks under the axles so the vehicle doesn't bounce around during the flight.

(Voice-over): The move, requires about 50 giant C-17 cargo planes. For the soldiers, a lot of time waiting, thinking about the new mission, and their families back home.

FITZGIBBON: Well, they know that I'm going, but they don't know -- I try not to tell them too much, you know, just to get them worried, but they don't know what it's going to be like.

PLEITGEN: Then it's finally time to get on board.

UNIDENTIFIED MALE: Awesome.

PLEITGEN: After a flight of several hours, the pilots put on their helmets for a combat landing into Kandahar Airport, one of the most dangerous approaches in the world. Exhausted, the soldiers hit the ground for the first time in their new battlefield.

(On camera): Shortly after arrival, the soldiers from the 4th engineering battalion have already found out how important their job is going to be here. So far, no one has been doing route clearance in this area. No one has been ridding the roads of roadside bombs and also of land mines. So, for them, this is the beginning of a long deployment. Fred Pleitgen, CNN, Kandahar, Afghanistan.

(END VIDEOTAPE)

PHILLIPS: And veterans of the Afghanistan war are sharing their war stories today, stories you can't forget. Heroism, success, failure in the nearly eight-year conflict. The senate committee heard it all in the midst of President Obama's plan to ramp up the U.S. troop presence in Afghanistan. The veterans have plans of their own.

(BEGIN VIDEO CLIP)

CAPT. WESTLEY MOORE, U.S. ARMY (RET.): Let me be clear. I, like many of my fellow soldiers and citizens, want this war to end and we want this war to end badly. I've lost friends. I've lost colleagues, both Afghan and American. And I understand the burden that sits on your shoulders as decision makers, because it is similar to the burden that sat on mine as an officer who led troops in combat.

But the Taliban is executing a doctrine based on exhaustion where their entire strategy depends on our political and national will faltering. Many of them are fond of saying the Americans have the wristwatches, but we have the time. You have the wherewithal in this committee to make that an illusion, by committing the resources, support and political will to ensure that this war is brought to an effective close.

(END VIDEO CLIP)

PHILLIPS: The U.S. is deploying 21,000 extra troops to Afghanistan to counter resurging Taliban and al Qaeda forces.

St. Lucie County, Florida, partly sunny and 81 degrees right now. The sun, the surf, the sand, look, they're having the annual plant sale on Saturday. But underneath this lovely slice of South Florida is the ugly reality of recession. Things have gotten so bad the county is taking the stimulus into its own hands. Listen to this. It's declared a state of economic emergency complete with a local stimulus package. County Commissioner Doug Coward here to talk about how this works and why it's so important. Commissioner, good to see you.

DOUG COWARD, ST. LUCIE COUNTY COMMISSIONER: Good to be here. Thank you.

PHILLIPS: So, tell me what happened? Was it the foreclosure crisis that hit you really bad?

COWARD: Yes, it's a combination of unemployment and foreclosure. We have a 12.8 percent unemployment rate and had over 10,000 foreclosed homes in 2008. So, it was the combination of those realities and firsthand experience in talking to local residents who were, you know, struggling to pay their bills and their mortgage and put food on the table that really prompted the local government to step up and say that we need to be a part of the solution.

PHILLIPS: Now, here's what's interesting. You are getting stimulus money from the feds. Is that -- are you -- do you just feel like you're not getting enough from Obama's plan?

COWARD: No, we are. No, in fact, I'm very supportive of the president and congress and their efforts to provide federal stimulus. We're seeing some of those dollars trickling in at this time and we're also anticipating millions more to be forthcoming. But we felt that we needed to utilize all of our local resources to supplement those federal stimulus dollars to provide maximum benefit to the local economic recovery process.

PHILLIPS: All right. And what we've learned through all of this give and take and all the various stimulus dollars, you know, something -- something suffers when you take away from something else. So, I'm seeing that your fund, you decided you completely voted against going into the emergency funds, which you've decided is a good move, which makes sense. But you are going to be taking money out of impact fees, which are paid from developers, sales taxes, bed taxes, which are paid by tourists, transportation funds and property taxes. So, my question is, by taking money out of all those funds, are you going to see anything suffer on that realm? Do you have some concerns about pulling funds out of those areas?

COWARD: We have certainly faced challenges by the downturn in the economy. But we also are identifying moneys that would have been spent in the future for various projects, and other sources of money that have not been allocated yet. So, we're essentially reprioritizing and expediting the use of existing dollars to make those investments now, when they're most needed.

PHILLIPS: So, where are you going to put the money? You're going to pull this money out. This is going to be our own little local stimulus package. Where are you going to put the money into?

COWARD: Well, we've identified a list of capital projects, about $25 million, that will go towards road improvements, building projects and things that will provide not only short-term benefit to those job sectors that have been hardest hit, but also to lay the foundation for us to achieve our longer-term, more ambitious economic development goals.

PHILLIPS: So, Doug, then, will the businesses, your local businesses, that are suffering and going under, will they have priority? Will they get this money for sure, or are you going to have to go through the typical bidding process?

COWARD: Well, we will have a competitive bidding process, but we have set an ambitious threshold of having any company that is hired to do the work be mandated to actually have 75 percent of those that are hired come from the local area and also to have the general contractors and subcontractors and materials coming from St. Lucie County.

PHILLIPS: So, have other counties called you for advice? I mean, you're the first commissioner to implement this.

COWARD: Well, we certainly had dialogue with the neighboring counties to see if we can expand this local economic stimulus into a regional approach to limited success to date. I have not had inquiries from other counties, although the National Association of Counties has taken some interest in this issue.

PHILLIPS: Well we're interested too. We want to see if it works. Doug Coward, county commission there in St. Lucie. Appreciate your time, keep us updated, would you?

COWARD: My pleasure, thank you Kyra.

PHILLIPS: Thanks Doug.

It's not your average alcoholic fog. An experimental British bar, with no servers, no bartenders, no drinks.

(COMMERCIAL BREAK)

PHILLIPS: All right. Just getting word now. We've been talking about GM downsizing for a number of weeks at a number of its facilities. And now we're getting word GM now just announcing that due to certain business developments, it is scheduling multiple down weeks at 13 assembly operations in North America. Apparently under this plan, approximately 190,000 vehicles will be removed from GM's North American production schedule in the second and early third quarter of this year.

We've got a list, actually, of all the factories that are going to be shut down and the number of weeks that they will be shut down, everywhere from Detroit to Shreveport to Wilmington. 13 North American assembly plants now that go down for multiple weeks to try and save some money to make up for the losses right now in this pretty poor economy.

Well, we'll follow-up more on that. Also we're following up on the new numbers on unemployment claims, it shows that the labor market does continue to take a beating. Six point one million Americans have been getting jobless benefits for one week or more, in a sign that it's taking longer and longer to find work, to cope, and many people are trying to cope with it, they're looking for new ways to bring in enough money to pay the bills. Susan Lisovicz at the New York Stock Exchange, she knows of a few part-time gigs. Susan, what do you think one of the most popular side jobs are?

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Well, this one is a great one, I think, Kyra, the weather is really nice in most parts of the country. It's dog walking, Careerbuilder.com says that this is an easy way -- well, maybe not so easy if you're walking lots of dogs. But you can get great exercise while you rack up the bucks. They say that the dog walking median salary per hour, $16.29. And, you know, Kyra, just some hard facts, you know, with -- you know, you mentioned, you know, the initial claims that we got this morning.

You know, there's an estimated 13 million Americans who are unemployed. The unemployment rate based on that perspective is 8.5 percent. The underemployment rate is 15.5 percent. So, you've got millions of Americans trying to find part-time work and that also is a reason why dog walking is probably something you need. Because a lot of people are working multiple jobs. They need their dogs to be walked.

PHILLIPS: I know a lot of people, including college students, even high school students doing that work and saving a lot of money doing that. Well, a handyman, this is also on the list, right? With the housing market in such dire straits. Is there much of a demand for that job?

LISOVICZ: Well, it seems to be contradictory to that, Kyra, but the fact is things still break in a recession. Things still need to be fixed in a recession. I was talking to Sonya before the show, she was saying shoe repair business, for instance, really busy, because people aren't throwing out their shoes. She, herself, didn't throw out her dishwasher, her 10 year old dishwasher. Another time she might have. And that holds true for so many things, whether it's plumbing, fixing cars. If you're a handyman in the neighborhood, the word gets around and you can make a small mint doing that kind of thing. And, you know, Careerbuilder says the median salary per hour, $17 and change. So, you know, it adds up.

PHILLIPS: Sonya kept that dishwasher because she's a tightwad and she likes to invest in fine wine, Susan. Let's just go straight for the record here.

LISOVICZ: Ok, well that's ok with me. It gives her more money for that wine. I'm going to mention a couple of other things. Teaching a hobby, babysitting, tax preparation, also medical transcriptions and attorneys for things like wills and medical power of attorney, all of these things, you know, are things that can help you out.

PHILLIPS: All right, good advice. Susan, thanks so much.

LISOVICZ: You're welcome.

PHILLIPS: We just got word that Robert Gibbs announced at the news conference there at the White House that Obama is going to hold a prime-time news conference next Wednesday as you know that's his 100th day in office. 8:00 p.m. Eastern, prime-time speech, president of the United States, just got word from Robert Gibbs there at the White House.

Well, the first 100 days ends Wednesday and, of course, we want to hear from you, and this is your chance to grade the leaders that you elected last November. Weigh in, and check out a prime-time event that we call the "national report card." Now, here's my question, are we going to do that at 8:00 Eastern if the president's speaking? What's that? Ok. There we go. So, we're going to take the president's speech. That's what I figured. And then we will have our interactive report card from all of you, grading the president and all the various leaders. That will happen on CNN and CNN.com. Let's take a quick break, we'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Well, the FDA will soon allow Plan B, AKA The "Morning-After" pill, to be sold over the counter to 17-year-olds. Senior medical correspondent, Elizabeth Cohen, joining us now for more on the controversy and, of course, well, a lot of people up in arms about this. It's a lot of news to both sides of the story, I guess, but girls younger than 17 -- available -- not under 17, it's 17 and older, right? At 17.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right. The way it is now, is that a woman can get this morning-after pill over the counter, if they're 18 or older, and what this new decision means is that 17-year-old girls, in the coming weeks, will be able to start getting plan "B" over the counter. Now, the reason why the FDA made this change? Well, a court told them they had to. A federal court judge said, look, the evidence is clear that plan "B" is safe for 17- year-olds, just as safe for a 17-year-old as for an 18-year-old, and so you have to allow the company that makes it to sell it to 17-year- olds. And as I said, a 17-year-old can't get it right now over the counter, but in the coming weeks, she should be able to.

PHILLIPS: All right now, let's lay out the controversy.

COHEN: The controversy is that some people consider Plan B abortion. The way that it works is that it's two high doses of birth control pills. And so it either prevents a woman from ovulating or it prevents a fertilized egg from implanting into the uterus. For some people that's abortion. Barr Pharmaceuticals which makes the drug says it's not abortion, it is pregnancy prevention. But everybody is going to see it their own way.

PHILLIPS: We'll start to see all the fallout, I'm sure there's a lot of response, we'll talk about it some more. Thanks Elizabeth.

Well, instead of triple, it's more of a sniffle or tickle, I should say. This new London bar is pretty unique in that, well, it doesn't do drinks. Alcoholic Architecture serves up gin and tonics in vapor form. At the door you pay about seven bucks get zipped into a protective suit, you head down into the mist, and well, the guys behind this place have done some other experimental projects but this is the first one that just might get you drunk.

(BEGIN VIDEO CLIP)

SAM BOMPAS, CO-CREATOR, "ALCOHOLIC ARCHITECTURE": We've got to really carefully control the amount of alcohol people are imbibing. So, it's quite potent gin which is Hendricks Gin, so it's doubly important that people go home safe we're also advising everyone not to drive.

(END VIDEO CLIP)

PHILLIPS: Oh, he said Hendricks Gin, my favorite. Here's the other favorite line from a customer review, it tastes like lime mixed with a little sweat.

Buy now, pay forever? Well, Americans and their credit cards, a real love hate relationship.

(COMMERCIAL BREAK)

PHILLIPS: All right, well, we asked for your credit card horror stories on our website, cnn.com/newsroom and, yes, you delivered. I'm going to take you right over here to our website. You can see here what was your credit card nightmare? All of you got involved with Twitter, with our blog, and sent in a number here of comments and detailed horror stories. I'm going to read some of them, Joe actually writes and says, "I had a credit card for years. I was never late on a payment and my credit is good. I received a letter from the card company changing my rate from 5.99 percent to 15.9 percent, so I closed my account." Yeah, we're hearing a lot of that Joe.

And then Alan writes, "All these banks are getting bailouts and then they raise their interest rates. Mine are more than doubling my rates and I have excellent credit. They're surely not doing their share to help the economy. What a rip-off." And then we came down a little further as you can see, the number of comments that we got. Look at all these people typing in with their nightmare stories here. Let me go ahead and go to "M." M writes, "My husband and I refused to be held captive by these credit card companies. We closed every account, got a better interest rate and are paying off all our debts." Thank you all so much for just participating on our new website, cnn.com/newsroom. You go up and just click on the little Kyra section up there, and you can get involved with Twitter as well. Rick Sanchez I know is so proud of me. So I'm going to wrap it up from here and get it into it, try to figure it out a little bit more. Maybe even tweet Rick, he's going to take it from here.

RICK SANCHEZ, CNN ANCHOR (voice-over): Who knew what and when? Torture tactics, questioned on Capitol Hill. Will he take action and appoint a special prosecutor?

The Craigslist killing, new reports, the man accused in the case kept souvenirs from his victim.

UNIDENTIFIED MALE: We all like to keep souvenirs, and here's a souvenir of his success as being an offender.

SANCHEZ: What else was he hiding?

Governor Sarah Palin's grandbaby daddy goes on "Larry King Live."