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Changing Student Loans; More Planes Hitting Birds; NOLA Jazz Fest; The Politics of Torture: To Prosecute or Not?; Nervous Realtor Reinvents Herself; Pontiac Brand to Disappear
Aired April 24, 2009 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: All right. Well, ever seen that bumper sticker that says "If you think education is expensive, try ignorance"? Well, you don't need a loan to be ignorant, but millions of U.S. college students pay for their education with government- subsidized guaranteed loans.
And as you may have heard live here just moments ago, President Obama wants to cut out the private lenders who make money off students and taxpayers while taking zero risk.
Take a listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Now, while our nation has a responsibility to make college more affordable, colleges and universities have a responsibility to control spiraling costs. And that will require hard choices about where to save and where to spend. So I challenge state, college and university leaders to put affordability front and center as they chart...
(END VIDEO CLIP)
PHILLIPS: Well, you don't need an MBA to understand the president's proposals. You just need Gerri Willis.
So, tell us -- you listened to it, Gerri -- what does this all mean? Is this good news for students like Candace Lowe here with me?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right. Right. It's complicated, yes.
Well, you know, first of all good work with Candace. I think you're right, she's going to be OK. She certainly seems like a bright, articulate young woman. And, you know...
PHILLIPS: And she's only 22.
Right, Candace?
Yes, she's only 22, Gerri.
WILLIS: Wow. Wow. And it's fantastic.
So, you know, I'm surprised she got such a runaround with forbearance. You know, these programs are supposed to be flexible, as she said, and people find in the real world they're not. But let's talk a little bit about what the president was talking about here.
We talked to -- you know, we have trusted sources on this topic. We went to them because it's complicated, and it does affect 75 percent of federal student loans. Here are the nuts and bolts.
President Obama is proposing to end the portion of the federal student loan program that funnels cash through private lenders. He's proposing to let students cover college expenses with all the financing coming from the government-run program by colleges. It's not going to be public sector employees, it's going to be college employees.
It's estimated that by getting rid of lenders that finance government loans, the government can save $94 billion. But if this passes, what can you expect? Well, lenders won't offer federal loans.
More money will be available for Pell Grants, as you said. These are grants given to lower-income students.
There will be layoffs in the student loan lending industry. The lenders have counted with their own proposal, which yields almost as much savings while avoiding the need for layoffs.
Now, Congress is going to be considering the president's proposal. And we'll bring you the latest. But believe me, these programs are very complicated, as you found out -- Kyra.
PHILLIPS: Well, what advice do you have for students, students like Candace here, trying to get student loans?
WILLIS: You've got to max out your federal aid first. These loans are cheaper, the interest rates are lower, and they aren't affected by your credit rating.
For private student loans, you really have to shop around. They're not widely available, terms can vary a lot. If your school recommends borrowing from one lender, watch out. That could be a sign of a problem.
So, the devil's in the details here. Right now, the federal government is really the lender of last resort for most college students right now.
PHILLIPS: All right. Gerri Willis, appreciate all your help.
WILLIS: My pleasure.
PHILLIPS: Bad loans, sick banks, government bailouts all on the agenda for Treasury Secretary Tim Geithner and his counterparts from around the world. They're in Washington for a progress report on U.S. efforts to build up the finance sector which all believe is the first step to recovery.
In an essay in "The Financial Times," Geithner says that "Conditions in some financial markets have improved, and the decline in the world trade may be abating. However, real progress requires time, and significant risks and challenges remain. Thus, it is critical that we continue to act together to strengthen the basis for global recovery."
Now, Geithner is due to hold a news conference about 4:30 p.m. Eastern Time. We'll keep you updated.
We're also five days away from the end of the president's first 100 days in office. We want you to grade the leaders that you elected last November as part of our primetime "National Report Card." It kicks off next Wednesday night, 7:00 Eastern, leading up to a presidential news conference, we're told, at 8:00 p.m. Eastern Time. And then after that, our special coverage will continue on CNN and CNN.com.
Well, I'm sure you remember these disturbing images, photos released a few years back showing prisoners -- or prisoner abuse, rather -- at Iraq's infamous Abu Ghraib prison. You could be seeing similar pictures soon from well beyond Abu Ghraib's walls.
The ACLU says the Pentagon will release a substantial number of photos showing alleged abuse at prisons in Iraq and Afghanistan. We don't know what's in the pictures at this point, but they are to be released by May 28th, we're told, thanks to an open records lawsuit filed by the ACLU.
And as you no doubt recall, the Abu Ghraib photo released touched off a foreign relations nightmare for the U.S. and U.S. military.
For years, the government didn't think that you could handle the news that I'm about to tell you, but January's miracle on the Hudson landing changed all of that. Today, the FAA has released records about when and where planes have struck birds, something kept under wraps for nearly two decades.
Now, brace yourselves. The records show plane collisions with birds have more than doubled at 13 major U.S. airports since 2000. They also say that 11 people have died in plane collisions with birds or deer since 1990.
Our Homeland Security Correspondent Jeanne Meserve brings us some background.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): One of nature's great beauties is also a great danger.
CAPTAIN CHESLEY "SULLY" SULLENBERGER: This is Cactus 153. Hit birds. We lost thrust in both engines. We're turning back towards LaGuardia.
MESERVE: The downing of this US Airways jet in the Hudson was the most dramatic example of just how much damage relatively small birds can do to a big plane. UNIDENTIFIED MALE: And the bird hit here.
MESERVE: There are thousands of bird strikes every year, and pilots in airports voluntarily report them to the Federal Aviation Administration. Up until now, the public has not been able to access all of the data. The FAA proposed keeping it that way, but the National Transportation Safety Board pushed back, saying independent researchers needed all the information.
MARK ROSENKER, NTSB: The kinds of birds that we're striking, the time of day that the aircraft is being struck, the season in which the bird is striking the aircraft, all of this data comes into play so you can make good mitigation decisions.
MESERVE: Decisions on how to best keep birds away from airplanes.
The FAA relented.
UNIDENTIFIED MALE: Look, safety is number one, and the way people learn about safety is through information.
MESERVE: But some argue it is the wrong decision. They say pilots and airports may be less likely to voluntarily report bird strikes if they think the data will be misinterpreted and hurt business. Less reporting would make the data less accurate and less useful.
The NTSB's response? Make reporting mandatory.
ROSENKER: If we are able to make this a requirement, then we're going to get the total picture and an accurate picture of how severe the problem really is.
MESERVE (on camera): The transportation secretary says that will be considered. One factor is likely to be whether, after the database goes public, the number of bird strikes voluntarily reported takes a plunge.
Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE)
PHILLIPS: Well, time to go. The Senate briefly adjourned today, and the White House went into lockdown after a small plane flew into restricted airspace over Washington. The pilot responded to calls to leave with the help of two fighter jets which escorted the Cessna to a nearby Maryland airport. Authorities eventually gave the all clear.
General Motors just borrowed another $2 billion of your money, and that brings a total of GM's government loans to $15.4 billion, with just over a month to go before a deadline to restructure or else. In hopes of cutting costs, GM's planning extended summer shutdowns anywhere from three to 11 weeks at several of its U.S. and Mexican assembly plants. Now Chrysler has got just six more days to hammer out a deal with debt holders, union workers and the Italian car builder Fiat, and it may wind up in bankruptcy anyway, struggling with $7 billion in debt and creditors who are driving hard bargains. The government is offering $6 billion to help a Fiat/Chrysler combination get off the ground.
Ford is a relatively successful story. In the first quarter, it sold more than analysts expected and lost less than $1.4 billion. That company says it's comfortable it will get through 2009 with no need of government aid.
2010's another story, but Ford's hoping to break even or make a profit in 2011. Ford's CEO Alan Mulally spoke today with CNN's Poppy Harlow, and Poppy joins us live with that interview just later this hour.
Every year it's a moneymaker for the city, but the New Orleans Jazz Fest getting socked by the economy just like everybody else. We're going to go live to the Big Easy.
(COMMERCIAL BREAK)
PHILLIPS: Well, when you've got jazz flowing through your veins, the end of April holds special appeal. The New Orleans Jazz Fest always brings hundreds of thousands of people and their wallets to the city, but lots of folks wallets are empty these days, so turnout is kind of a question mark this year.
Sean Callebs is there though to give us an update.
Sean, what do you think?
SEAN CALLEBS, CNN CORRESPONDENT: Well, I think that that's exactly right. The organizers, people who have been putting this on 40 years, were worried.
The band on stage right now called Dave Egan and Twenty Years of Trouble. Well, Jazz Fest has been bringing 40 years of economic benefit to this city. And this year, by all accounts, it isn't any different, and that's good news.
Here's a handful of reasons why.
The problem is, what do you do? This is a city that builds itself on the tourism and the tourism dollars. Well, an estimated 400,000 people are expected to show up for Jazz Fest this weekend and next weekend. About 40 percent of those people are going to be from outside of Louisiana, so that's great news.
The number one market that brings people here, New York. Number two, California. And a whopping 10 percent of the people are from overseas. So they come here and they are ready to spend.
And what are they going to hear? They're going to hear local acts, Kyra. That's great. About nine out of 10 bands, 88 percent of the musicians, are from Louisiana, a lot of them from right here in New Orleans. But, you know, there is always that question mark. The economy has been so sour and so much -- there's been so much concern about would people come here and spend.
We had a chance to speak with the Jazz Fest organizer, Quint Davis, earlier, and he talked about those very real worries.
(BEGIN VIDEO CLIP)
QUINT DAVIS, PRODUCER/DIRECTOR, NEW ORLEANS JAZZ FEST: We were acutely aware this year that it would be a sacrifice for some people to make that trip. But we also think if there's one thing you're going to do in life to make yourself feel better, it's going to Jazz Fest in New Orleans. And it seems that a lot of people are. But we certainly were concerned about it.
(END VIDEO CLIP)
CALLEBS: the great thing here, he calls this a funk parliament, New Orleans is a funk parliament for the next two weeks. There's going to be a lot of people here, and they perform all day.
Then once the sun goes down, the Jazz Fest ends. And so people pour into the city and they spend money there, in the bars, in the restaurants, in the hotels. So this is a huge, huge economic benefit for the city.
PHILLIPS: All right. It's good news. The funk parliament with the -- well, who would the prime minister be of that parliament, Sean Callebs?
CALLEBS: Well, it wouldn't be me. Let me tell you, if I took these pants and made shorts, you could white balance on my legs. So it would be somebody else.
PHILLIPS: Enjoy the time. And it's good to hear that, you know, more, of course, getting pumped into that city that suffered so much.
Sean, thanks.
NBC says Jay Leno is OK and should be back doing his thing on Monday. Leno checked himself into a hospital yesterday, actually missed the show's taping. His first sick day in 17 years.
It's still not clear what is or was wrong. Maybe he'll include that in his monologue on Monday. NBC says that he's doing fine. He tried out some material on the doctors, by the way, and the nurses in the hospital.
Well, the worst wildfire in some 30 years in South Carolina. And guess where the first spark probably came from? Yes, someone's yard work.
(COMMERCIAL BREAK) (WEATHER REPORT)
(COMMERCIAL BREAK)
PHILLIPS: All right. Time to check in with Gerri Willis and her crew on the help desk. Gerri and her panel are answering questions about your finances -- Gerri.
(BEGIN VIDEOTAPE)
WILLIS: We want to get you answers to your financial questions. Let's get straight to the help desk.
Alison Brower is the executive editor of "Redbook," and Jack Otter is a financial journalist.
All right, guys. Let's get right to the questions.
Chad in California asks, "Do you know of any new programs for student loan forgiveness based on military service?"
All right, Allison.
ALISON BROWER, "REDBOOK" EXECUTIVE EDITOR: There is a new program, Public Student Loan Forgiveness. It's for people in all kinds of public sector jobs, including the military. And after 10 years of eligible employment and good repayments, they actually will forgive the remainder of the debt.
And during those 10 years, there's also a possibility of a sliding scale of payments based on your income. So it's new. The payments clock back to October 2007. And you can find out more at ibrinfo.org.
WILLIS: Oh, great, with a Web site. I love that.
You know, also, if you volunteer, you also can get some of your debt forgiven, and people don't realize that. Peace Corps does it, AmeriCorps does it. A lot of them do it, so it's a good deal.
BROWER: A lot of nonprofit jobs are eligible. A lot of different jobs are eligible. So you should really go to the Web site and figure it out.
WILLIS: All right. Let's get the next e-mail question in here.
Emily asks, "Where can I get reliable, free information about the foreclosed properties in my area" -- that's from Milwaukee, Wisconsin -- "and the process of acquiring property as a first-time home buyer. Are there benefits to working with an agent or a particular mortgage brokerage, i.e. the bank holding the property? I want to do my homework and know what questions to ask. Are they there any online tutorials regarding these and related home-buying topics?"
Jack, that's a big one.
BROWER: A big question.
JACK OTTER, FINANCIAL JOURNALIST: A lot of stuff there.
WILLIS: Chapter and verse.
OTTER: Well, I'll start with just three letters that anyone interested in foreclosed property needs to know: REO. It stands for Real Estate Owned.
WILLIS: Bank properties, right?
OTTER: Exactly. You can go to usreoproperties.com, and there's lots of Web sites like that. Plug in your Milwaukee, Wisconsin, zip code, any other zip code, find properties in your area.
WILLIS: Can I just add in here -- like, you can read your newspaper, a list of delinquent houses -- houses that are in delinquency or foreclosed on. So, I mean, it can be easy to find.
OTTER: Well, what's not easy, as you know, though, is the process of researching and buying one of these things. You think it's a great deal, and then it turns out the inside has been trashed. There's all sorts of dangers here. There could be liens on property. I would hire not just an agent familiar with it, but also an attorney.
WILLIS: I love those ideas. Great job, guys.
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)
(COMMERCIAL BREAK)
PHILLIPS: Taliban militants reportedly backing off in Pakistan today. A major new development in a story that set off worldwide alarms about one of America's key allies in the war on terror.
A Pakistani government official tells CNN that militants have now pulled out of the Buner district, just 60 miles from the capital city. The Taliban took over the district this week, imposing Islamic law and sparking fear that Islamabad could come under attack. Pakistan had deployed troops saying that the Taliban land grab violated a recent peace deal.
And insurgents on the attack in Iraq, committing a string of bombings this week that left dozens of people dead or wounded. Let's push forward here. And could we ask the question of, could the attacks like these push back the deadline for U.S. combat troops to pull out of major Iraqi cities?
CNN posed that question to the top U.S. commander in Iraq today. (BEGIN VIDEO CLIP)
GEN. RAY ODIERNO, COMMANDER, MULTINATIONAL FORCE, IRAQ: The bottom line is, we're doing joint assessments with the government of Iraq in all of the areas today. And we believe -- if you ask me today, the one area I'm still not sure about is Mosul, we will do a joint assessment, we'll provide recommendations to the prime minister, and he ultimately will make that decision whether we stay with combat forces in the city. We will remain with advisers and we will continue to provide enablers to them, and we will assist them in going after other safe havens and sanctuaries that are located outside of the cities.
(END VIDEO CLIP)
PHILLIPS: A U.S./Iraqi agreement calls for American combat troops to leave urban areas by June 30th, but the Iraqis can request them to stay in some spots if need be. The agreement calls for the pullout of all U.S. troops from Iraq by the end of 2011. The Obama administration caught in the middle of a growing political storm over recently released torture memos. Should more of them be released and should former Bush administration officials be prosecuted?
Here's CNN's Jim Acosta.
(BEGIN VIDEOTAPE)
ERIC HOLDER, U.S. ATTORNEY GENERAL: It is my responsibility as the attorney general to enforce the law.
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT (voice-over): For the Obama administration, it's the question that won't go away. And Attorney General Eric Holder is refusing to rule out the possible prosecution of high level members of the Bush administration who authorized harsh interrogations of suspected terrorists.
HOLDER: If I see evidence of wrongdoing, I will pursue it to the full extent of the law, and I will do that in an appropriate way.
ACOSTA: Some Democrats are turning up the heat on the White House to name a special prosecutor who could bring indictments.
JONATHAN TURLEY, PROFESSOR, WASHINGTON UNIVERSITY LAW: Attorney General Holder needs to appoint a special prosecutor.
ACOSTA: Law professor Jonathan Turley says the president has no choice.
TURLEY: You have insurmountable evidence that we ran a torture program. President Obama has the constitutional authority to pardon President Bush and Vice President Cheney and these other individuals. He does not have the authority to obstruct an investigation to a war crime.
ACOSTA: Democrats point to this Senate intelligence report released this week. It states then-Attorney General John Ashcroft and then-National Security adviser Condoleezza Rice were briefed by CIA officials in 2002 that the agency was considering alternative interrogation methods, including waterboarding.
An international Red Cross report found waterboarding was used saying it induced a feeling of panic and the acute impression that the person was about to die.
Former POW John McCain has called the method torture.
MCCAIN: It's in violation of the Geneva Convention. It's in violation of existing law.
GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: This government does not torture people.
ACOSTA: Two years ago, President Bush stressed Congress knew about the program.
BUSH: The techniques that we used have been fully disclosed to appropriate members of the United States Congress.
ACOSTA: House Speaker Nancy Pelosi says she was only told waterboarding might be used.
REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: We were not -- I repeat, we were not told that waterboarding or any of these other enhanced interrogation methods were used.
DICK CHENEY, FORMER VICE PRESIDENT OF THE UNITED STATES: They did work. They kept us safe for seven years.
ACOSTA: Bush administration officials are firing back, including former Justice Department official John Yoo, who advised the former president the Geneva Convention banning torture does not apply to suspected terrorists.
JOHN YOO, FORMER JUSTICE DEPARTMENT OFFICIAL: This wasn't worth it? Well, we haven't had an attack in more than seven years.
ACOSTA (on camera): President Obama has come out against one option, that is naming a 9/11-style independent truth commission to investigate allegations of torture. White House Press Secretary Robert Gibbs says the president did not want the issue to become what he called a political back and forth
Jim Acosta, CNN, Washington.
(END VIDEOTAPE)
PHILLIPS: Well if you 30 seconds to sell yourself as a potential job candidate, could you do it? With more than six million on unemployment we're trying to give some of you a chance to do that in a segment we call "The 30-Second Pitch." Earlier this week, we met Brian Holt at a job fair in Atlanta. Get the clock ready, here's his pitch. (BEGIN VIDEO CLIP)
BRIAN HOLT, JOB SEEKER: Hi. My name is Brian Holt, and I've recently retired from the Air Force and I'm looking to transition to the civilian life. I have executive experience and also program management experience. I possess a wealth of talent and so I'm looking to transition to civilian life in either executive management or program management or as a senior consultant. I've been in the Air Force about 22 years and possess a wealth of experience and then also I recently moved to the Atlanta area and looking to transition to the Atlanta area as well.
(END VIDEO CLIP)
PHILLIPS: Well, if you think you might have a job for Brian, his e-mail is myholtba@yahoo.com. Look for his pitch and others on our new blog at CNN.com/newsroom.
And when the bottom dropped out of the housing market a nervous realtor reinvented herself. Here's Brooke Baldwin with a story of survival of the fittest.
(BEGIN VIDEOTAPE)
BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Selling homes was the lucrative job to have if you wanted to make quick money in 2004. The Atlanta market was hot and Tracy Sharp knew it.
TRACY SHARP, FORMER REALTOR: I had always been interested in real estate. Entered into it, was relatively successful quickly.
BALDWIN (on camera): So you were more than making ends meet as a realtor?
SHARP: Supporting a family of three, yes.
BALDWIN: And then the housing market just busted.
SHARP: It's a very nervous time, a single mother of two children. I was concerned about security.
BALDWIN (voice-over): The fewer houses this 42-year-old sold, the more time Tracy had to pursue some things she had never done before. What started off as misfortune turned into a blessing.
SHARP: It was an incredible emotional release to get in the studio and to paint, sort of lose yourself for a short period of time.
BALDWIN: Tracy had always grown up around painting with an artist as a mother, but never dabbled in it. It was pure therapy for this single mother, but turned into so much more.
(on camera): The escape turned into an entrance, into a whole new career.
SHARP: Absolutely. Absolutely. BALDWIN (voice-over): Just weeks after she started painting, a curator visiting her mother's home stumbled upon a piece Tracy had been painting with her son Max. After that, galleries began to take notice.
UNIDENTIFIED FEMALE: Her solo show a year ago this month, sold out completely. And not only did it sell out completely, but the pieces that were still in the back that were wet ready to be hung after, all sold.
(on camera): Was that a "pinch-me" moment for you?
SHARP: It was. It was. It was unexpected.
BALDWIN (voice-over): Tracy has never taken a painting lesson in her life. Now, her learning curve is exponential.
(on camera): All the dark is coffee?
SHARP: All the dark is coffee.
BALDWIN: How did you come up with that?
SHARP: Experimentation. You know, you just try things and see if you like them.
BALDWIN (voice-over): Tracy's work is now in five galleries nationwide from Atlanta to Santa Monica. It's a career she says she never would have discovered if the bottom hadn't dropped out of the market. Her pieces sell from $700 to more than $5,000.
SHARP: It's a journey piece. It's about moving forward. It reflects a sense of independence and charging into something unknown.
BALDWIN: Charging into the unknown is something this mother of two knows a lot about and she encourages anyone who is struggling not to be afraid.
SHARP: I would encourage anyone in this time if they are faced with a slowdown in what they do or the great misfortune of losing their job, to, you know, really look at this period of quiet in terms of space to think about what you would really like to do.
Some of the best things in life come when you are stepping outside of that comfort zone a little bit. You know, when you're really stretching yourself.
BALDWIN: Brook Baldwin, CNN, Atlanta.
(END VIDEOTAPE)
PHILLIPS: One in eight women will be diagnosed with breast cancer in their lifetime. Caught early, survival rates are pretty good. But uninsured women face a greater risk. They're twice as likely to be diagnosed in the later more dangerous stages.
This week's "CNN Hero" is on the front lines of this war and she's taking it to the streets.
ANNOUNCER: This is "CNN Heroes."
(BEGIN VIDEOTAPE)
ANDREA IVORY, CNN HERO: In 2004, I was diagnosed with breast cancer. Initially, there's shock, but I realized how blessed I was to have health insurance. It made me think about all the women who didn't have health insurance. I wanted to make a difference in their lives.
I'm Andrea Ivory, and I'm fighting breast cancer in south Florida one household at a time.
The Florida Breast Health Initiative is an outreach organization. We're targeting working-class people. We're going to make a difference and we're going to save some lives. We have a take it to the streets approach.
We feel like little pixies spreading breast cancer awareness.
UNIDENTIFIED FEMALE: Can I ask you a few questions?
IVORY: We target women that are 35 years or older, and make appointments on the spot for a free mammogram.
I look forward to seeing you. I'll be there.
Bringing the mobile mammography van into the neighborhood is one of the most important facets of the work that we do.
Let's go.
We provide a service that is so need. I know I'm saving lives.
UNIDENTIFIED FEMALE: They said it was free, so come right over and get it.
IVORY: Is the lady of the house at home?
We're giving a free mammogram on the 25th.
UNIDENTIFIED FEMALE: That's easy!
UNIDENTIFIED FEMALE: I'm like, OK, I'll go.
IVORY: Thank you so much. Take care.
I was saved from breast cancer to serve other women. Every time I knock on the door is another opportunity to save a life.
(END VIDEOTAPE)
PHILLIPS: If you would like to help Andrea Ivory or if know someone doing something so extraordinary they deserve to be a CNN Hero, go to CNN.com/heroes. And remember, all of our "CNN Heroes" are chosen from people that you nominate.
(COMMERCIAL BREAK)
PHILLIPS: Well, just another sign of our times right now, getting word that one of the most historic cornerstones of General Motors will go away.
Poppy is working this for us, just coming across the wires.
What are you learning, Poppy?
POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Yes. A source telling CNN Money's Peter Valdez, one of our auto experts here, that GM is preparing to announce they're going to kill off their Pontiac car brand. You said it perfectly, Kyra, one of the cornerstones of the auto industry in this country, once marketed as GM's "excitement division."
No confirmation on that from General Motors, but an official announcement is expected on Monday.
Some analysts were expecting this, because when GM came out with their viability plan they did not name Pontiac as one of their four core brands which they did name as Chevrolet, Buick, GMC and Cadillac. This mainly, Peter says, will cut costs in terms of the marketing costs. Many know the Pontiac Vibe also the Pontiac G6.
But again, the headline here, GM getting ready to kill off its Pontiac brand, thus trying to save money any way it can, Kyra.
PHILLIPS: Meanwhile we've been talking about your interview with the head of Ford. What did the CEO tell you about its future?
HARLOW: You know, the numbers coming in from Ford were bad, but not nearly as bad as expected. But the big headline out of today from Ford was the CEO, Alan Mulally, says they don't need bailout money and they're not going to, Kyra, unless the economy gets significantly worse or we have what he termed an uncontrolled bankruptcy of GM or Chrysler which could significantly affect its supply chain that Ford relies on.
Let's look at the numbers here, then get sound from him. The loss in the first quarter, $1.4 billion, compared with an expected $2.8 billion loss. This company has lost $31 billion since 2006, but it says it is on track to meet its internal target, which is to break even by 2011.
Alan Mulally, the president and CEO of Ford, today emphasizing the importance of the fact that his company took significant steps to change things before the economy went south.
Take a listen.
(BEGIN VIDEO CLIP)
ALAN MULALLY, CEO, FORD: When we initially put our plan together two and a half years ago and went to the credit markets, we assumed that the economy was going to degrade not only in the United States but worldwide. So we also borrowed extra money to have a cushion for this situation.
So we think we have sufficient liquidity to continue the investment in the new products that people really do want and value.
(END VIDEO CLIP)
HARLOW: All right, just leave you with another strong headline out of Ford, it's not burning through as much cash as it previously was. Take a look at these numbers. The last quarter, beginning of this year, burning through $3.7 billion of cash, more than it took in. Much better, Kyra, though, than the $7.2 billion it burned through in the fourth quarter.
Looks like things are turning around at Ford, we'll see if they can hold on.
PHILLIPS: All right, we'll track it. Thanks, Poppy.
In this recession Americans are learning to live with less and that includes some basic household items. A new study actually shows that things people considered necessities just a few years ago are now luxuries.
Susan Lisovicz at the New York Stock Exchange.
So, Susan, what can people now live without?
SUSAN LISOVICZ, CNN CORRESPONDENT: They can live apparently, Kyra, without the ubiquitous microwave. Less than half - fewer than half of the respondents in the Pew Research Survey said they need a microwave and it was much lower for the dishwasher and clothes dryer.
And I think what's most interesting about this study, Kyra, is that you're seeing big shifts in consumer sentiment in just three years. We also saw big drops in three years to air conditioning. I'm not sure that people in Atlanta would agree with that in the summer. And also, TV. We're not sure we like that trend either.
PHILLIPS: Two things we could never do without.
LISOVICZ: No way.
PHILLIPS: I've been in your place without air conditioning. All those fans going.
All right, well, what are the things that people have to have?
LISOVICZ: Well, actually, it's this, Kyra. The cell phone and the PC. This is partly due to younger respondents who, you know, have grown up it's part of our - it's just attached to our body.
But also I think it's the blurring between work and home. I don't know if you've noticed that, Kyra, but seems we're never off duty and so we're always reachable and that's one of the trends that we've found there.
This study is also fascinating because it shows, again, just in three years, how differently we're living. For instance, one-fifth of respondents said that they're growing their own vegetables or about to. You know, shopping at discount stores, cutting back on things like cigarettes, alcohol, that kind of thing. Of course, clear response to the economic times we live in.
PHILLIPS: And I tell you, when things are taken away, they have to be taken away, you do realize how you can live without so many things. That's true.
LISOVICZ: Exactly, you live a lot more simply.
PHILLIPS: I don't want to lose your friendship, though. That's something I cannot live without.
LISOVICZ: Very valuable to me, Kyra.
PHILLIPS: Have a good weekend.
LISOVICZ: You too.
All right, well nowadays the only "Franklins" that most people care about finding are the green ones with 100 in the corners. But a professor from UC San Diego is pretty enthused about a batch of letters that he found at the British library. Forty-seven in all, written or received by Benjamin Franklin in 1755 and not seen since. They are to and from Franklin's son and daughter-in-law and a British General Named Edward Braddick (ph).
(BEGIN VIDEO CLIP)
PROF. ALAN HOUSTON, UNIVERSITY OF CALIFORNIA SAN DIEGO: This was the page. And this is the letter where, reading it, wait a minute. Oh, my God. What is this? The excitement is extraordinary. The fact I was able to find these is a reminder the history is never finished. That there are always more stories to learn about the past.
(END VIDEO CLIP)
PHILLIPS: Well, these are actual copies of the real letters, transcribed by Franklin contemporary named Thomas Birch.
Started as a wedding reception, but turned into an episode of "The Jerry Springer Show." All because a guest had to talk about how good the groom was in bed.
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PHILLIPS: Well, the Centers for Disease Control is checking out a strain of swine flu it hasn't seen before. It turned up in California and Texas, seven cases so far, all the patients have recovered.
CNN's senior medical correspondent Elizabeth Cohen here with more on the story.
Something that I never -- I have never heard of swine flu.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right, you don't hear that much about it, but Kyra, make those seven cases make those eight. What we're hearing from the interim head of the CDC, Dr. Richard Besser - or the acting head of the CDC, Richard Besser - this is a live picture right now of him at a press conference -- there has now been another case of swine flu identified in California. That makes the total up to eight.
And Dr. Besser just got through saying, "our concern has grown since yesterday. We are worried. There is much uncertainty."
And let's talk a little bit about why there's much uncertainty. We're talking about 60 people who have died in Mexico, most of them in Mexico City. They have closed down the schools in Mexico City and, in fact, in the entire state of Mexico. One big concern is that this is a new strain of swine flu, one not seen before. And you're seeing pictures here, now people wearing masks, people greatly concerned in Mexico City. And this new strain has been resistant to some anti- viral medications.
PHILLIPS: All right, we'll follow it. Thanks, Elizabeth.
COHEN: Thanks.
PHILLIPS: Well, you know it's a nightmare wedding when the bride ends up suing a guest and the groom has to sleep on the couch. A New York woman says that her special day was ruined when a female guest just went off. The guest started screaming, claiming she had been in a relationship with the groom. Well, clearly that brought things to a screeching halt. The groom denies any affair and the couple still married. But the bride is having a little bit of trust issues.
The crickets are coming. The crickets are coming. But a Nevada town ready to defend the town against the annual invasion. Their weapon? Do we get the music? Led Zeppelin, the Stones and other hard rock heavies.
Oh, yes.
Folks discovered about three years ago these Mormon crickets are pretty conservative and they aren't big fans of that loud music. So they set stereos outside, turn up the music and rock out. Maybe they should add some Black Flag to the playlist.
Call it your own personal bat mobile. Suped-up cars designed to drive in the most dangerous cities in the world. Believe me, it will get you where you're going and we'll take you on a ride you won't forget.
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PHILLIPS: Smoke screens, electrified doors, bulletproof glass - no, I'm not talking about the bat mobile, but it's pretty close and it will get you across the border in one piece.
Our Ed Lavandera met some guys that don't just pimp your ride, they armorplate it.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): People who buy fully loaded cars from Trent Kimball don't take leisurely drives.
TRENT KIMBALL, TEXAS ARMORING CORPORATION: There's no gaps in the armor, and that's what we want. We want 100 percent protection.
LAVANDERA: They drive in the most dangerous cities in the world.
KIMBALL: The fear is real. There's people being killed and kidnapped all the time.
LAVANDERA: Kimball runs the Texas Armoring Corporation. From this warehouse, he turns everyday cars into rolling cocoons. He offered us a glimpse of what it's like to be on the wrong end of this.
KIMBALL: You want to proof protect it from rifles like these, high-power fully (INAUDIBLE) high-powered assault rifles.
LAVANDERA: The view from behind bulletproof glass less than two inches thick.
(on camera): We're going to stick our camera back here.
KIMBALL: That's right.
LAVANDERA: It's a very expensive camera, you know.
KIMBALL: Yes.
LAVANDERA: It's a brand new HD camera.
KIMBALL: Yes. Nothing will happen to the camera.
LAVANDERA: Our cameraman is nervous. I'm not that nervous.
KIMBALL: All right.
(SHOTS FIRED)
LAVANDERA: Wow. You can feel it shattered right here. You come over to this side, feels completely smooth. You don't feel any shreds of glass right there at all.
(voice-over): Armoring a vehicle can cost between $50,000 and $150,000. You get special tires that keep rolling after blowing out. And to escape kidnapping situations, options include road tacks and electrified door handles.
(on camera): These cars can also be equipped with a smoke screen. Now what happens is, is that essentially it creates a big wall of smoke and you're unable to see the car in front of you and they're able to make a quick getaway.
(voice-over): With gun battles and kidnappings making headlines across Mexico, the private car armoring business is booming. Kimball usually armors just over 75 cars a year. This year he'll retrofit about 150. And more Americans doing business south of the border are buying the protection.
KIMBALL: They're not targeting these large executives of these large companies anymore. They're targeting just regular business owners or --
LAVANDERA: Anybody who might have money.
KIMBALL: Who they think even if they think they have money. That's the danger.
LAVANDERA: No one buying these cars would talk to us on camera. The customers come from around the world. Private car armoring used to be a luxury of the rich and famous. Trent Kimball says that's changing.
KIMBALL: The amazing thing is there are people that even that don't even have that type of money that feel the need to have the vehicle armored. That's what's -- that's what's more amazing to me.
LAVANDERA (on camera): What do you take away from that?
KIMBALL: It's a scary world. It's a scary world.
LAVANDERA (voice-over): Ed Lavandera, CNN, San Antonio, Texas.
(END VIDEOTAPE)
PHILLIPS: Have a great weekend. See you on Monday. Rick Sanchez is off. Dave Lemon is in.
