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Did Obama Focus Enough on Economy?; Chrysler Plans to File for Bankruptcy; WHO: 154 Confirmed Flu Cases, Thousands More Suspected; Biden's Swine Flu Comments Draw Fire; Lack of Fuel Efficiency Might Have Doomed Chrysler; In Mexico City, Lines of Sick People, Medics in Biohazard Suits
Aired April 30, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Here now some of the other stories that we're keeping an eye on right now. The Obama administration tells CNN Chrysler plans to file for bankruptcy protection. Talks to avoid Chapter 11 broke down early this morning. President Obama is going to talk about what's going on in the auto industry during some remarks about two hours from now. We, of course, will bring that to you live.
The Senate expected to reject a plan that could mean lower payments for homeowners. President Obama's plan would give bankruptcy judges power to rewrite mortgages in some cases. The plan has been criticized by both Republicans and Democrats.
A ceremony this morning in Basra, Iraq, marking the end to British combat operations in the country. A memorial to the 179 British soldiers killed in Iraq was also unveiled. Most of the 4,000 British troops will be out by the end of May.
Breaking news this morning. An Obama administration official tells CNN Chrysler will file for bankruptcy, but hope are rising a deal could be made with FIAT to save the troubled U.S. automaker.
CNN's Christine Romans have the very latest now from New York.
All right. So there is a possibility the deal with FIAT could still happen.
Tell us how.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: OK. Well, let's talk about what this bankruptcy filing is going to look like. Chapter 11. That means restructuring. That doesn't mean the company goes into bankruptcy and is liquidated, the parts are sold off, and that's the end of Chrysler. So I want to be very clear about that.
Chapter 11 is restructuring.
COLLINS: Right.
ROMANS: And the administration seems confident that in restructuring, it can put together a tie-up and alliance between Chrysler and FIAT, and then on the other end of things, you know, this company can keep going with government loans, with more taxpayer money, can keep going and succeed.
So what was the problem? Why going into bankruptcy? Well, some of the creditors balked at the terms of the Treasury Department. You know, there are hedge funds and banks and investors who are owed $7 billion in secured debt. That means this is loans that Chrysler took out and secured them with their factories and their equipment and stuff. Well, the government offered 68 percent less for those loans and some of the lenders, some of the investors said you know, we don't want it. It's too little.
COLLINS: Yes.
ROMANS: So what does the administration say about that? Well, a senior administration official telling Suzanne Malveaux, giving this statement to us earlier today saying basically that some of these creditors couldn't step up to do the right thing.
We need a full screen. I want to show you what it is exactly what they said.
The White House said, "The creditors' failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to re-structure and emerge stronger going forward."
So, I don't know about you, Heidi, but what that says to me...
COLLINS: What?
ROMANS: ... even though we're talking about a bankruptcy, this White House thinks that this company can survive on the other side.
COLLINS: OK. Yes. Also good hearing, you feel like they could potentially emerge quickly from bankruptcy?
ROMANS: Well, you know, we've never done this before. That's what's kind of so confounding about this. I mean, can it be done quickly? If you have most of the major creditors onboard with what's going to happen here. You've got Fiat ready to go in a bankruptcy process and do an alliance, or a tie-up with Chrysler.
You got the unions on board which you do. The unions are on board making very painful, painful sacrifices. And you got the Treasury Department onboard, maybe they can overcome this dissent from these bondholders who don't want to take $225 million rather than $7 billion.
COLLINS: Yes. A million seven...
ROMANS: $2.25 billion. Sorry.
COLLINS: Yes. Exactly. All right.
ROMANS: A lot of numbers and details. But the number to know today is 11. Chapter 11, bankruptcy filing. COLLINS: Yes, very good.
All right, CNN's Christine Romans of our Money Team. Thanks. Thanks so much, Christine. Appreciate that.
ROMANS: Sure.
COLLINS: President Obama will talk about what's next for Chrysler coming up at noon Eastern today. Make sure you watch that live right here on CNN.
And now to the swine flu outbreak. In the U.S., there are 91 confirmed cases. They're spread across 10 states now. More schools are shutting their doors. In fact, in Texas, the Fort Worth Independent School district is closing all of its schools. That leaves about 80,000 students out of class at least through next week.
A dozen countries are now dealing with confirmed cases. And that means the H1N1 virus is now on four separate continents. The World Health Organization has raised its pandemic alert to the second highest level. The group is urging countries to ramp up efforts to produce a vaccine. So let's begin our coverage now this morning in Mexico City, probably the area hardest hit by the potentially deadly virus.
CNN's Ted Rowlands is there. Now with the very latest. Ted, good morning once again.
TED ROWLANDS, CNN CORRESPONDENT: Good morning, Heidi, yes.
By far the hardest hit city, by far around the world. We're seeing more restrictions here in Mexico City. Starting today, government offices close down starting today and nine central businesses in Mexico City shut down starting today. It is the latest in a series of shutdowns in an effort to contain the spread of this virus.
Meanwhile, there's a lot of speculation of where did this all start? Well, we traveled to a small town about four hours east of here where many believe the virus started.
(BEGIN VIDEOTAPE)
ROWLANDS (voice-over): The eyes of the world are on the tiny Mexican village of La Gloria where the swine flu virus sweeping the world may have started. It's home to five-year-old Edgar Hernandez who had the first confirmed case and it's where Mexican health officials acknowledge dozens of people were sick in early April, weeks before the virus surfaced anywhere else.
UNIDENTIFIED FEMALE (through translator): All of us had fever. All of us had the same symptoms. Temperature, pain in our bones, chills, runny nose and cough, continuously.
ROWLANDS: Vivian Rodriguez says she, her husband and all four of her children were sick. She says they were given medicine that seemed to work initially, but she says now the children are sick again and she's worried.
UNIDENTIFIED FEMALE (through translator): We're worried, because we've never seen a case like this here before. What we want to know is, where does this come from? Because the truth is, here we get prescriptions and medicine, but it's not enough. We don't know what we have.
ROWLANDS: Health care workers are in La Gloria this week, going door to door, checking out people's welfare. And so far tell us they haven't found any new cases of swine flu. The question still unanswered is, how the virus started. Most people here blame a nearby pig farm.
FELIPE BELLO-TENCELE (through translator): The farms are endangering us. We're blaming the pollution for the virus. The pig farm. When the wind blows south, the pollution moves our way.
ROWLANDS: The industrial pig farm is owned by American-based Smithfield Foods. The Mexican department of agriculture and the company have done tests at the farm, and they say they've all come back negative.
(END VIDEOTAPE)
ROWLANDS: Heidi, the bottom line here is that Mexico didn't have the heads up that other cities did around the world. That's why it is so difficult now. It is out, if you will, so pervasively in Mexico City, the containment efforts are so widespread. They say here that the level, the five it has nothing to do with them, because it's already over for them, in terms of the spread of this. They're working on containment.
And the great thing for cities across the world outside of Mexico is they have the heads up and they could contain it locally. Hopefully avoiding what's going on right knew in Mexico City.
COLLINS: Yes, understood. That is certainly the trick. All right. CNN's Ted Rowlands for us this morning, live from Mexico City. Thank you, Ted.
I want to get to Fort Worth, Texas, today. Thousands of working parents are scrambling for alternative day care. Just last night, officials decided to close all 140 public schools because a student tested positive for the H1N1 virus.
(BEGIN VIDEO CLIP)
UNIDENTIFIED: We're a very large school district. We have 80,000 children. We have 10,000 employees that has a significant impact on the community. We're hoping that the community understands the impact that this has. We're talking about employers and other organizations and that they kind of step up and help us deal with this in a way that is amenable to everybody. So we understand that parents are going to say, do I go to work and leave my kids somewhere else? Or do I stay home with my children? Tough decisions. We're hoping that employers will understand and work with us. (END VIDEO CLIP)
COLLINS: There are at least 100 other schools closed across the country now. President Obama says parents should consider contingency plans now, because closings could become more widespread.
In fact, the swine flu outbreak is also altering graduation ceremonies. According to CNN affiliate WPXI, some Pennsylvania students just back from apprentice teaching in Mexico are being kept away from commencement. It happens tomorrow.
None of the band students at Slippery Rock University have experienced symptoms of the flu, though.
And in Texas, officials at Texas State Technical College, west Texas, are postponing tomorrow's spring commencement ceremony over flu concern.
Grading the president. The benchmark. First 100 days of the Obama presidency is over. Of course, so how did he do? A report card from CNN's senior political analyst Bill Schneider.
(BEGIN VIDEOTAPE)
OBAMA: Please be seated.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): Uh-oh, the report card is out. How's the president doing?
Here's what he says.
OBAMA: I'm proud of what we've achieved but I'm not content. I'm pleased with our progress but I'm not satisfied.
SCHNEIDER: That's what the American people say too. The average grade they give the president after 100 days, B-minus, pretty good. Keep working on that A.
Democrats and Republicans differ in their grades, but not by that much. Democrats give their president a B-plus.
OBAMA: I've got Democrats who don't agree with me on everything. And that's how it should be.
SCHNEIDER: The president says he's trying to be bipartisan.
OBAMA: I do think that to my Republican friends, I want them to realize that me reaching out to them has been genuine.
SCHNEIDER: The Republican response - wary. Republicans give President Obama a C-minus.
Is there a racial divide? Yes, but not because whites are particularly harsh on the nation's first African-American president. Whites give him a C-plus. The president has not shown any particular favoritism toward African-Americans. OBAMA: I'm confident that that will help the African-American community live out the American dream at the same time as it's helping communities all across the country.
SCHNEIDER: Blacks give President Obama an A minus. That's pride. How does the bad economy affect the president's grades?
Suppose someone in your household has lost a job. How do you grade President Obama? B-minus.
(END VIDEOTAPE)
COLLINS: Very quickly we want to get to Secretary of State Hillary Clinton who I believe is speaking to the Senate Appropriations Committee. We are waiting for comments about swine flu.
Let's listen.
(JOINED IN PROGRESS)
HILLARY CLINTON, U.S. SECRETARY OF STATE: ... valuable expertise. Its director ambassador Robert Waftus (ph) is keeping us apprised of their work and their interaction with the health agencies and the World Health Organization.
Earlier this week, USAID announced it is giving $5 million to the World Health Organization and the Pan-America Health Organization to help detect and contain the disease in Mexico. We will continue to coordinate closely with the departments of Health and Human Services, Homeland Security, the W.H.O., the CDC and other agencies.
And I'm very cognizant of the role that we all must play in attempting to stem and contain this influenza outbreak. Secretary Gates and I are here together, because our department's missions are aligned and our plans are integrated.
The foreign policy of the United States is built on the three Ds -- defense, diplomacy...
COLLINS: Quickly, we just wanted to give you a little flavor.
This morning, you are watching the Senate's Appropriations Committee and of course, secretary of state Hillary Clinton who just moments ago making comments about swine flu and how she is staying apprised of it.
Clearly, the nation's health agencies are keeping her up to date on the U.S. response to swine flu. All right. We will keep our eye on that for you.
Meanwhile it could be the silver lining in the dark cloud of bankruptcy. What may be waiting for Chrysler on the other side of today's filing.
(COMMERCIAL BREAK)
COLLINS: On this very last day of April, I want to get you an update now on the end of spring, it seems like.
(WEATHER REPORT)
COLLINS: So do you have questions about swine flu? If you do we have the answers in a moment.
(COMMERCIAL BREAK)
COLLINS: A father able to spend more time with his son but not able to spend money to take care of him. More divorced parents are finding it tougher to pay child support in this recession. Our Brooke Baldwin has the story.
(BEGIN VIDEOTAPE)
MIKE TREICHLER, FATHER: Run, Mikey. Run, run, run, run!
BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Five-and-a-half- year-old Mikey Treichler is seeing a lot more of...
MIKEY TREICHLER, SON: My daddy.
BALDWIN: ... both on and off the baseball field.
MIKE TREICHLER: Have a good day at school today, buddy?
BALDWIN: Last December, Mike Treichler got laid off.
MIKE TREICHLER: When it happens to you, you're like, wow. I can't, you know - I can't believe that it's me that it happened to.
BALDWIN: After ten years at IBM, this divorced dad found himself out of work and soon after, unable to pay the $1,200 a month he had been providing in child support.
MIKE TREICHLER: I've used up severance packages. I used up my 401(k) and I'm getting into the position where now I'm going to have to tap into other money resources which I did not want have to, to the point where there's not additional income coming in.
I am on unemployment now. And that money, even though it's a huge help, it doesn't help me with the $1,200 a month bill.
BALDWIN: It's a big bill that Mike has told his son's mom that he can't pay.
MELISSA TREICHLER, MOTHER: I was more disappointed, probably, than mad. But unfortunately, if I focus on that, then it weakens me in the event of maintaining composure, staying strong for my son and making sure that he gets what he needs.
MIKE TREICHLER: Good job. All right.
BALDWIN: The result? Melissa and Mike are trying to reach a child support payment compromise. So far, they're negotiating out of court. And according to the Office of Child Support Enforcement, the current downturn in the economy is making it increasingly difficult for parents to provide for themselves and their children.
In New Mexico, for example, from February of 2008 to 2009, the state's Child Support Enforcement Division is reporting a 96 percent increase in the number of requests for case reviews and adjustments.
And just this month in Alabama, the district attorney's office in Lauderdale County sent letters to 155 parents warning them if they don't pay child support by the 1st of May, they could be arrested.
Dr. Gerry White works with Families First, Georgia's largest nonprofit family service agency. He says this the financial strain on unemployed fathers, or mothers, carries an emotional burden as well.
DR. GERRY WHITE, DIRECTOR OF PROGRAM DEVELOPMENT, FAMILIES FIRST: What we have to help the men understand that, while you're out of a job, that does not mean you are unworthy to be around your child.
BALDWIN: This Little League coach doesn't feel unworthy.
(on camera): How do you explain to him that daddy suddenly has all this time?
MIKE TREICHLER: Well, he's happy about it. So I don't have to give him too much detail about it. It's all a positive thing as far as he's concerned.
BALDWIN (voice-over): But this dad does admit the stress of unemployment is starting to take its toll. Mike has already applied to more than 6,000 jobs. His biggest worry?
MIKE TREICHLER: Am I going to have to take, you know, a very low-paying job and work so many hours that I won't have the time to spend with him?
(END VIDEOTAPE)
BALDWIN: And you can believe family court judges, divorce attorneys, seeing this firsthand.
Here's another number for you. In a recent survey of the American Academy of matrimonial lawyers, 39 percent of the nations' attorneys are citing its rise in what they call modification changes being made to child support payments during this economic downturn and they say, increase coupled with the recession, unemployment rate, Heidi, no coincidence.
COLLINS: Yes, definitely not. I just wonder if states are aware that so many of these parents who are not able to pay the child support now are not really the typical deadbeat dads or even moms in some cases. It's just that they don't have the money right now, because they lost their job.
BALDWIN: Right. And you're exactly right. It's important to differentiate. They're not necessarily deadbeat dads or moms. And that's why I set an example in Alabama, for example, the D.A.'s office there. I talked to them on the phone. They sent those 155 letters out to parents who aren't exactly paying the child support but they're granting them amnesty for a whole month before tracking them down and maybe hauling them off to jail.
Or Arizona for example, one county there offering non custodial parents what they're saying a relief if they can provide maybe a letter from a previous employer proving they were laid off there, eligible for a reduction in child support. But you know, one D.A. told me, the bottom line, the economy, that excuse can only go so far.
COLLINS: Yes but it is definitely an angle I hadn't thought of.
BALDWIN: A lot of people thinking about it now.
COLLINS: Yes, definitely. Brooke Baldwin. We sure do appreciate that.
BALDWIN: Thank you.
COLLINS: We want to get back now to that flu outbreak that we've been talking so much about. Known at the swine flu. The government's technical name for the virus, H1N1. We know you have questions. So our senior medical correspondent Elizabeth Cohen with some answers for today's "Empowered Patient." And I bet you've had a lot of them.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Oh, my goodness.
COLLINS: Let's begin with the little news that Vice President Biden actually made this morning on the "Today" show. Here's what he said.
(BEGIN VIDEO CLIP)
JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: I would tell members of my family, and I have, I wouldn't go anywhere in confined places now. It's not that it's going to Mexico, you're in a confined aircraft. When one person sneezes it goes all the way through the aircraft. That's me.
If you're out in the middle of a field and someone sneezes, that's one thing. If you're in a closed aircraft, closed container, a closed car, closed classroom, it's a different thing.
(END VIDEO CLIP)
COLLINS: You know, Elizabeth, we actually had a piece just a little while ago by our Randi Kaye on this. The travel log of a sneeze and all those germs, if you will, is that true? What the vice president is saying?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I've got to tell you when I read the transcript if what the vice president said on my blackberry this morning. I had a three-letter reaction, which is OMG. I really could not believe that he said that, and because the CDC has only said get rid of all nonessential travel to Mexico.
They haven't told anyone not to get on a plane and the U.S. Travel Association says, according to the United States Centers for Disease Control and countless other experts, swine flu should not discourage people from traveling to or within the U.S.
COLLINS: OK.
COHEN: I'd like to make a note here, there are probably plenty of people with swine flu who have gotten on planes. And as far as we know they haven't infected plane loads of people. They haven't infected anyone on a plane as far as we know, but, Heidi, I do want to add, that there was something interesting that the vice president said about what it means to him.
If you are anxious about this new virus that has hit our country and sickened at least, nearly 100 people, don't get on a subway. Don't get on a plane. If that makes you anxious, you get to make that choice. Just don't do it.
COLLINS: Yes, exactly. So talk to us about some of these questions that you got. Just how contagious is swine flu? I know that was one of them.
COHEN: Right. That was one of them. Just how contagious is swine flu. Like any other flu, it is definitely traveling person to person. However, it's important to note, as I said, people are getting on planes with swine flu as far as we know. No one's ever gotten swine flu from being on a plane.
I want to make another point. That little boy who died in Texas earlier this week, none of his close family contacts got swine flu from him. And Heidi, you know as a mom, I'm sure they were cuddling him, and hugging him.
COLLINS: Sure.
COHEN: Especially before they even knew he had swine flu and THEY didn't get it from him. So is it contagious? Of course. It's contagious. But it's not spreading like wildfire. I think we need to make that point.
COLLINS: Yes, absolutely. The next question that you got said this - how close do you have to be to a sick person to get swine flu from them? Some of these are really good.
COHEN: Right, the experts I talked to said the answer to that is three to six feet. That's the breathing zone. And three to six feet in a confined area. So if you're just walking past someone on a street who has swine flu, you're not going to get swine flu from them.
If you're sitting next to them at a two-hour movie and they're sneezing all over you, you could get swine flu from them. No question.
COLLINS: All right. Next question. Should I be freaking out? Just about everybody has asked that question.
COHEN: Right, and all the experts I talked to said, no. You should not freak out. First of all, freaking out never helps. What you want to do is you want to get all the information you can, and, of course, you can get all that information right now on cnnhealth.com, and think about what you personally want to do.
Maybe you are like Vice President Biden and this makes you anxious and you don't want to get on a subway because you're afraid the person sitting next to you might have swine flu. That's a legitimate choice for you to make. So I think that the thing is to calmly get yourself informed and then make decisions based on your own anxiety.
And again, cnnhealth.com, we have 15 questions about swine flu ask and answer.
COLLINS: All right. Very good. Appreciate the perspective. As always, Elizabeth Cohen, our senior medical correspondent. Thank you.
Evaluating the first 100 days. I'll be talking with the two members of Congress who will be weighing in on the president's performance so far as well as the challenges that lie ahead for the next 100 days.
(COMMERCIAL BREAK)
COLLINS: Optimism for the next 100 days. Last night, President Obama talked about the challenges facing the nation during the first part of his presidency. He thanked the American people for their patience and offered hope for the future.
(BEGIN VIDEO CLIP)
OBAMA: We have a lot of work left to do. It's work that will take time, and it will take effort. But the United States of America, I believe, will see a better day. We will rebuild a stronger nation. And we will endure as a beacon for all those weary travelers beyond our shores who still dream that there's a place where all this is possible.
(END VIDEO CLIP)
COLLINS: A hopeful message from President Obama. Also an admission there's still a lot on his plate. The economy, health care, Afghanistan. We could go on and on.
Joining us now to talk about all the challenges, Michele Bachmann, Republican congresswoman from Minnesota, and Democratic representative from Pennsylvania Joe Sestak. Good morning to both of you, and thanks for being with us.
REP. JOE SESTAK (D), PENNSYLVANIA: Good morning, Heidi.
REP. MICHELE BACHMANN (R), MINNESOTA: Good morning, Heidi.
COLLINS: Listen, Joe, I want to begin with you. What was this press conference really about last night?
SESTAK: This was -- was that for me, Heidi? I couldn't hear.
COLLINS: Yes. Yes.
SESTAK: Absolutely. I think the president wanted to go out to the public and give transparency and give his imprint on what had been accomplished. And I'd have to give him a "very good" for two primary reasons. One, he began by recognizing national security begins at home. And so, he addressed the economic challenging we have in the midst of a crisis.
And you can already see by reports today that because the tax rebate in his economic stimulus bill that just went out, that family household spending has increased this year. And the yields on the bond side have actually come down. Second...
COLLINS: So...
SESTAK: ... national security overseas.
COLLINS: I'm sorry. So, you think, if you had to choose, that that press conference last night, Representative Sestak, was about the economy?
SESTAK: Absolutely. The most important issue here is our economy, but he had to say, OK, the ship of state is starting to steady up in the storm. Where are we going to take it as we retool our economy in health care, in our energy and in our education while addressing national security overseas by a strategy of engagement. Those are the big changes and what needs to be done.
COLLINS: All right. Representative Bachmann, what did you think the press conference was about last night?
BACHMANN: It didn't seem to me the conference was about the economy. Very few questions were asked about the economy. That's what is uppermost on people's minds. What people want to know is, with the extraordinary ramp-up in government spending, how will this be paid for? People are nervous. They know that taxes will necessarily have to increase.
As well, they're very concerned about the inflationary aspect. If government is printing worthless money and adding to the inflationary spiral, people know that that will reduce the value of their dollar, and they won't have as much purchasing power.
COLLINS: You know, I do have to say, this is the third prime- time press conference in his first 100 days. Is this the media just saying, OK, Mr. President, you want to come on television during prime time? Sure, no problem.
Or is this a president who is really liking to hear himself talk? Or is this a president who is trying to reassure the American people in really tough economic times? Representative Sestak? SESTAK; Yes, I absolutely believe, and when I worked at the White House with President Clinton as director of defense policy as a Navy captain, Tony Lake said, whenever you're speaking to the press, it's very important because you're actually making policy, because the public gets to know what we're doing.
I think from firesides chats in Franklin Delano Roosevelt's time until today, that is very important. And also, to what Michele said, a very good point. The president also has to start to answer the question that once we're through this immediate economic crisis, how are we going to go back to a "pay as you go" government, like we voted for in the House yesterday?
She's got good points. In addition to that, how can we -- which I think you can only give a C to, he tried, but we in Congress to have to do more, do it in a bipartisan way. And reconciliation is not the way to do it.
COLLINS: All right. Representative Bachmann, why so many press conferences in prime time?
BACHMANN; Well, the Obama administration is requesting them. And it was interesting. I heard Dick Morris last evening say that President Clinton also had requested numerous press conferences and was turned down by the national media, but it was apparent to me that press conferences are so different now than they were with previous presidents.
It was almost a food fight with previous presidents, where reporters would jump up and down, and the president would recognize them. There is no jumping up and down with this White House. It is almost a hypnotic press corps. They're all very staid, and as they are seated, the president has a preapproved list of people that he calls on.
They ask him questions, and they don't seem to be terribly hard questions. I'd really like to see the media do a side-by-side comparison of questions asked of the last administration versus last evening. I think it'd be an interesting comparison.
COLLINS: It probably would be. Obviously, the White House does not pick the questions. They pick the representatives of the media and which network to go to.
BACHMANN: That's right. You're right.
COLLINS: Quickly want to go ahead and listen to some sounds, some specific sounds last night about what could be coming next in this presidency.
(BEGIN VIDEO CLIP)
OBAMA: You can expect an unrelenting, unyielding effort from this administration to strengthen our prosperity and our security in the second 100 days and the third 100 days and all the days after that. (END VIDEO CLIP)
COLLINS: So, we will start to see some of the results of his decisions that have been made in the next 100, 200, 300 days. A lot of these things really haven't made an impact yet. Do you think the honeymoon is over? I mean, what is the number one thing he should be focusing on now, as he moves forward, Representative Sestak?
SESTAK: Yes. I do think now the rubber is going to meet the road. Every economist of the middle said we've got to address our economic security, and we've done that.
But now, how do we retool that economy as we go forward? And that why I emphasize bipartisanship as we go forward. Health care -- it costs us $100 billion every year in lost economic productivity because of the 46 million Americans uninsured. How can we work with Michele from my side to get health care to cover everyone so we're more economically viable?
That's why he said more secure, your health security and more prosperous. They go together. And that's just one example. You've got to go to energy, and you've got to the go to education, because it's now retooling us to compete with China, who's going to grow 6.8 percent GDP this year as we go down about 4 percent.
COLLINS: Representative Bachmann, is that true? Have we reached economic security? Can the Republicans work with the Democrats?
BACHMANN: There's no question that both Republicans and Democrats are anxious to work together. We would have loved to have worked with them the first 100 days. However, President Obama wasn't interested in having Republican input, and that was very clear. Hopefully, that will change now going forward.
But I think what I'm very concerned about, Heidi, are the moral implications that are at stake in our country with finances. Will we completely reject free-market economics? And that's a real concern. Because the policies so far are rejecting free markets, and it's choosing to tax ever more increasing numbers of a minority to expand expenses and to expand gifts that are given to a majority.
And I think we can't overlook the moral implications of the debt load that we are putting on 19- and 20-year-olds -- 19 and 20-year- olds right now will have to be paying this debt burden. So, there's a tremendous moral implication for spending money today to obligate young people in the future, and I'm very concerned about that.
COLLINS: All right. Well, we will all be watching closely, obviously. And I thought it was a very civilized discussion from the two of you. We'd love to have you come back again. Representative Michele Bachmann from Minnesota and Representative Joseph Sestak out in Pennsylvania.
SESTAK: Thanks, Heidi.
COLLINS: Thanks to the both of you. SESTAK: Thanks, Michele.
COLLINS: Welcome now to one of the largest cities in the world and what may be one of its most dreaded places. Medics in biohazard suits, sick people in long lines waiting to be examined.
(COMMERCIAL BREAK)
COLLINS: It's a chance for Chrysler to survive in a different form. We are following breaking news this morning. Word from the Obama administration that the troubled automaker will file for bankruptcy. The move will allow for a possible restructuring, which could include a deal with Italian automaker Fiat. We've been talking a lot about that here. We will get more details when President Obama speaks on this at noon Eastern.
So, what do you think of when you hear the name ExxonMobil? Well, many people would say record-breaking profits. But now, the recession is starting to hit even Exxon, the world's biggest publicly traded company.
Stephanie Elam is at the New York Stock Exchange now with more on this and also a company that is not publicly traded, and that would be Chrysler. Maybe, Stephanie, we should start with that. A lot of people wondering, how's the stock doing today now that we've gotten word that they're going to file for bankruptcy?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, Heidi, I've been asked that question a lot this morning, more today than I have in a while. And really, the answer is, there's no answer, because Chrysler is a private company. So, unlike Ford and GM, where we can track these movements by looking at their stock price, we cannot do that with Chrysler since they are a privately held company. So, hopefully, that will clear that up for people as they try to find out Chrysler's stock.
But as far as ExxonMobil is concerned, first-quarter earnings really taking a beating there, slashed more than half from a year ago. This proves that no company is really immune to the recession. They earned $4.5 billion in the first quarter. I wouldn't be mad at that. But compare that to last year, when they earned nearly $11 billion.
COLLINS: Yes.
ELAM: So, what is the -- what's the big issue here? Why is this happening? It's because of lower oil prices and weak demand. And just to really paint this picture for you, the first quarter this year, oil cost around $40 a barrel. Well, if you go back to the first quarter of last year, oil was near $100 a barrel. So, that has smacked Exxon. Shares of stock today trading lower by about 2 percent. Its earning did miss expectations.
But the overall market really rallying today, helped by a surprise drop in weak jobless claims. Right now, the Dow on the upside by about 88 points, 8274. Nasdaq is better by 2 percent. It's the percentage leader right now of the three major averages that we check out every day, Heidi.
COLLINS: We talk a lot about corporate earnings, of course. Why is Exxon so important?
ELAM: Well, here's the deal with Exxon. It is the world's largest publicly traded company.
COLLINS: Right.
ELAM: Also, it has one of the strongest balance sheets among the oil companies itself. So, last year, Exxon reported the biggest annual profit ever for a company, $45 billion. If Exxon is suffering, that doesn't bode well for other companies.
Still, there is a bit of a sign of hope. Exxon still spending more on research and development, and Exxon is still paying a dividend. That's important because many other companies are cutting back any way they can right now, and often that dividend ends up on the chopping block. So, the fact that they're still doing that does give people a little bit of hope here, even though ExxonMobil is such a behemoth when it comes to earnings -- Heidi.
COLLINS: Yes, no question. All right, Stephanie Elam, sure appreciate that from the New York Stock Exchange today.
ELAM: Sure.
COLLINS: We want to get you an update now on the swine flu outbreak that's moving around the world. The World Health Organization says the number of confirmed cases worldwide has climbed to 154 with thousands of other suspected cases. The H1N1 virus, as it's called, has now been confirmed in 12 countries, and there have been eight confirmed deaths, one right here in the United States.
Dozens of schools in this country have closed, affecting 130,000 students in Texas alone. The WHO has raised its pandemic alert level to phase five. That is the second-highest level.
The federal response to the swine flu outbreak in focus this hour on Capitol Hill. Top U.S. health officials testifying before a House panel. CNN homeland security correspondent Jeanne Meserve is joining us now live from Washington.
Jeanne, good morning to you. A lot of people are reacting it seems, to this comment made by Vice President Joe Biden this morning.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: That's right. You know, the administration has been crafting its public message very carefully. There are conference calls every day, in which they compare notes, talk to the health professionals, try and push out good information without causing undue alarm.
But this morning, the vice president went on television and appeared to wander off the reservation. Here's what he had to say.
(BEGIN VIDEO CLIP) JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: I would tell members of my family -- and I have -- I wouldn't go anywhere in confined places now. It's not that it's going to Mexico. It's you're in a confined aircraft. When one person sneezes, it goes all the way through the aircraft. That's me.
I would not be, at this point, if I -- if they had another way of transportation, suggesting they ride the subway. So, from my perspective, what it relates to is mitigation. If you're out in the middle of a field and someone sneezes, that's one thing. If you're in a closed aircraft or closed container, a closed car, closed classroom, it's a different thing.
(END VIDEO CLIP)
MESERVE: Well, a spokeswoman for the vice president quickly put out a statement clarifying his remarks, saying this is the same advice the administration is giving to all Americans: Avoid non-essential travel to Mexico, and if they're sick, they should avoid airplanes, subways and other public transportation.
You heard the vice president's remarks. You can judge whether that comports with what he actually said. There has been very strong reaction, though, Heidi, let me tell you about that.
COLLINS: I'm sure.
MESERVE: Yes. There was a letter written to the vice president just a short time ago by the Air Transport Association. That's the group that represents all the major airlines in this country. It expresses extreme disappointment in what the vice president said today.
"We are taking all appropriate actions to assure the health of our customers, our employees. While individuals who are feeling ill should remain home," it says, "no responsible officials or health care professionals have suggested that people avoid air travel."
And in addition to that, the U.S. Travel Association put out a press release saying -- urging elected officials to resist inflammatory comments. Obviously, those groups worried about business, but also...
COLLINS: Certainly.
MESERVE: ... taking serious issue with what it was that the vice president said today.
COLLINS: Yes, and also a little scary. We've already noticed a lot of people being scared about all of this. We've got to keep things in perspective. So, it would be very interesting to follow that. Sure appreciate it. Our homeland security correspondent, Jeanne Meserve. Thank you, Jeanne.
MESERVE: You bet, Heidi. COLLINS: More on the troubles facing Chrysler now. How does a big automaker get into such a financial fix? In some cases bigger not necessarily better.
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COLLINS: Something new I want to tell you about: I'm blogging now. And we've got a new CNN NEWSROOM show page. Definitely check it out, especially today. Some interesting stuff on there. Let me know what you think of the stories that we are telling. Also feel free to leave me a comment, because, believe me, we are reading these. We are paying attention.
We want you to pay attention, if you can, to something that's on there today, some thoughts from my segment producer, Sara Rudolph. Very, very concerned about the proper procedure for washing your hands. Because you know what? There are a lot of guidelines out there, but are you really doing it right?
Of course, talking about swine flu and how to make sure that you are staying in the clear. So, make sure you check that out at CNN.com/newsroom. Click on my name at the top of the page, and you can find it. It's a good one.
With Chrysler's bankruptcy imminent, here's the question: Did an overreliance on trucks and SUVs land it in this mess in the first place? CNNMoney.com's Poppy Harlow has our "Energy Fix" now. Good morning to you, Poppy. Is that true?
POPPY HARLOW, CNNMONEY.COM: Hi, Heidi. Well, it certainly played a large part of it. Hindsight is 20/20, but looking back now, let's talk about Chrysler and the fuel-efficiency problem at the automaker. It's been a factor.
In February, the president's auto task force said that Chrysler will struggle to comply with increasing fuel-efficiency standards. Let's look at the models here, because out of 22 Chrysler models, only these three get 30 miles per gallon or more on the highway, the Sebring Sedan, the Dodge Avenger and the Dodge Caliber.
And most of them, they haven't sold well. An auto analyst we spoke to, Heidi, told us the Sebring and the Avenger have been, quote, "abject failures" in the market. The Caliber has done a little bit better. But fuel efficiency, what this shows us, Heidi, it's not enough. They have to be fuel-efficient, and they have to be cars that Americans want to buy.
COLLINS: Yes, exactly. And of course, when we talk about restructuring, you have to wonder if this takeover, if in fact it does happen by Fiat, of course, is what we're talking about, could mean more fuel-efficient cars, then.
HARLOW: That's the hope because this is an Italian carmaker that is known for its lightweight, its fuel-efficient cars. Here's a look at one. You may not have seen many of these because they're not on the U.S. market. That's the Fiat 500. It gets somewhere around 38 to 40 miles per gallon. It's pretty popular in Europe.
Fiat's cars are -- last month, Fiat was actually the only European automaker to see its sales increase. But it's not going to be an instant fix. It's going to take at least a year, possibly two, analysts say, before any of these new vehicles that are Chrysler and Fiat come to showrooms in the U.S.
They need some engineering changes. They have to meet American safety and emissions standards. And Chrysler also may want to add different engines to these, more powerful engines. Keep in mind also, Heidi, we've heard a lot about Fiat over ever the past month, but before that, not a lot of American buyers were very familiar with this.
So, the question again, will they want to buy these Fiat vehicles in the United States? Also, it's interesting to note here, Fiat withdrew from the U.S. market about 20 years ago, Heidi. So, a reintroduction. It'll be interesting to see what people say, how they react to it, Heidi, if it does indeed happen.
COLLINS: All right. I know you're watching as closely as we are. Thanks so much.
HARLOW: Sure.
COLLINS: CNN's Poppy Harlow. Appreciate that.
Welcome to one of the largest cities in the world, and what may be one of its most dreaded places: medics in biohazard suits, sick people in long lines all waiting to be looked at.
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COLLINS: It is a frightening image of just how dangerous the swine flu can be. Medics in biohazard units. Sick people gathered together outside waiting to be examined. Welcome to one Mexico City hospital. CNN's Karl Penhaul takes us inside an isolation ward.
(BEGIN VIDEOTAPE)
KARL PENHAUL, CNN VIDEO CORRESPONDENT (voice-over): Medics are taking no chances with this killer virus. They're clad head to toe in biohazard suits, goggles and two pairs of gloves. Patients with suspected symptoms are ushered into an isolation ward in Mexico City's naval hospital.
More people complaining of sore throats and aches arrive and wait under a tent roof for their checkup. Hospital staff advises it's too risky to enter the ward.
(on camera): Over the last two days, hospital authorities say they've looked at 1,000 patients. They say that none have been confirmed positive yet for swine flu, but they do have a number of patients still in observation.
(voice-over): Across in eastern Mexico City, dozens of police and health officials stand guard along a side street. Residents seem panicked.
CADINA NAVARRO, MEXICO CITY RESIDENT: (SPEAKING FOREIGN LANGUAGE)
PENHAUL: "We'll all very alarmed for ourselves and our families. We're going through difficult times," she says.
Inside this housing complex, away from the gaze of neighbors and the press, family members prepare to bury 5-year-old Maria Fernanda Garcia (ph). Authorities say she died Monday from pneumonia. Test results are slow coming back. They still don't know if it was caused by swine flu.
Just in case, they're taking stiff measures to stop the spreading.
VICTOR LUNA, PUBLIC SECURITY, IZTACALCA DISTRICT: (SPEAKING FOREIGN LANGUAGE)
PENHAUL: "These are the prevention measures we must take. This case is still not confirmed, but we must take these steps to protect citizens," he tells me.
I asked civil protection official Rocio Carrillo about allegations from grieving relatives the hospital authorities are slow to act.
ROCIO CARRILLO, CIVIL PROTECTION, IZTACALCA DISTRICT: (SPEAKING FOREIGN LANGUAGE)
PENHAUL: "I find your questions very offensive. There's a lot of coordination between government departments. We're coordinating and doing the right thing," she tells me.
Whether or not test results confirm swine flu, it's too late for little Maria Fernanda (ph). Only close friends and relatives are allowed into the cemetery. Police post guard. Mourners carry Maria Fernanda out of sight to her final resting place.
Later that afternoon, we visit her grave. Sweet-scented flowers, a simple hand-painted plaque, "Maria Fernanda (ph), 2004 to 2009, we love you."
Karl Penhaul, CNN, Mexico City.
(END VIDEOTAPE)
COLLINS: I'm Heidi Collins. Join us again tomorrow morning beginning at 9:00 a.m. Eastern. For now, CNN NEWSROOM continues with Tony Harris.
