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Cash for Clunkers Out of Gas?; House Health Care Push; Iran's Post-Election Turmoil; Mexico Wants Tourists Back
Aired July 31, 2009 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Friday, July 31st, and here are the top stories for you in the CNN NEWSROOM.
The government's Cash for Clunkers auto rebate program may be about out of gas already after just a week? It looks like all the cash is gone.
Come back, please. Mexico comes up with a novel stimulus plan for a tourism industry hit by swine flu.
The day Michael Jackson died. The singer's personal chef tells CNN's Larry King about the events of that day.
Good morning. I'm Tony Harris. And you are in the CNN NEWSROOM.
So let's do this -- let's end the week with the American economy's very good week. It is issue number one in the CNN NEWSROOM.
Stocks opened at their high mark for the year this morning. That's about a 40 percent rally from March lows and the best July in 20 years. New stats on the nation's gross domestic product this morning. Output is still shrinking, but nearly not as much as before. And housing numbers out earlier this week show both sales and prices inching higher.
(STOCK MARKET REPORT)
HARRIS: And here is the president's latest assessment on the economy. He spoke Thursday afternoon.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you look at the consensus of economists right now, it confirms that we have seen a significant slowing down of the contraction over the last several months. There are a lot of indicators out there that tell us that job losses, although still way too high, are not at the pace that we were seeing in January or February. Housing prices went up for the first time in three years.
The credit system, the banking system, the financial markets generally have settled down. You're not seeing the huge volatility or panic that you were seeing. And so all of that is a sign that we have stepped away from the precipice.
(END VIDEO CLIP)
HARRIS: OK. The president's assessment on the economy from yesterday.
Now, here is the thing. You have got to move fast. The White House says the Cash for Clunkers program will continue, at least through the weekend. Buyers blew through nearly $1 billion in auto rebates in just a week.
Let's bring in our personal finance editor, Gerri Willis.
Gerri, my goodness.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I know.
HARRIS: Talk about a gash burn. Break down the numbers for us.
WILLIS: All right. So, let me start with the latest here.
You mentioned that the White House had said they're going to extend the program through the weekend. You should also know that Michigan Senator Deb Stabenow tells CNN that the Michigan, Ohio, and Indiana congressional delegations, they are working on a $2 billion extension for the Cash for Clunkers program. This would give it more money, it would last a longer time.
And as you were saying, the program started Monday, yet the program is close to burning through its funding. Here is the map. Take a look at these numbers.
Already, $146 million has been approved to be given out. But if you -- that's according to the government. But if you talk to the industry, they are projecting $1.2 billion is already projected to be given out. So, they've gone through that $1 billion and more.
And as you know, the original allocation, $1 billion. So, demand for this program, Tony, overwhelming.
Twenty-three thousand dealerships have signed on. Experts say the dealerships had started declining people for the program earlier this week. The program was supposed to officially end on November 1st, but it's hard to if you don't have the money to do it.
HARRIS: Yes, absolutely.
OK, so through the weekend, everything is on line. We'll just have to see beyond that.
What if you've got a confirmation you're eligible for this program, or you've already accepted and already have a new car, Gerri?
WILLIS: Well. Right, the devil is in the details, right?
HARRIS: Yes. Yes.
WILLIS: What you should know, and you may not have noticed when you bought, dealerships may have given you a waiver that you signed that indicated if the program didn't go through, that you had to pay back the voucher or you had to return the car. If you did get a new car, make sure you look for any documents like this.
In the meantime, any purchase this weekend will be honored. That's according to the White House. So, if you are in the market to get rid of your clunker now, you probably want to act quickly. And, of course, we're expecting Congress to extend funding, as we mentioned.
If the program is extended, you still want to move pretty quickly, because let me tell you, the demand here is unbelievable. And you should know that the automakers are really stepping up their promotion of it. Their Web sites -- one of the big automaker Web sites got 750,000 hits for its Cash for Clunkers program. That's the kind of demand we're looking at, the number of people expressing interest.
HARRIS: Well, I've got to tell you, I see the Ford commercials all the time with the guy from the Discovery Channel, the Mike guy from the "Dirty Job" show. He's on the air all the time talking about this program. So, clearly, it is working for a lot of dealerships, and cars are moving.
Hey, Gerri, my understanding is that you're going to be back with us in just a couple of minutes and you're going to tell us again, remind us all again, of who qualifies for this program and what kind of vehicles?
WILLIS: That's right. We're going to get into the details, because it's really complicated. But we can dig down and give you an easy cheat sheet to know if you can take advantage of this program and score a little dough.
HARRIS: Yes, absolutely. All right. And we'll talk in a couple of minutes.
Thank you, Gerri.
WILLIS: My pleasure.
HARRIS: And in the next hour of CNN NEWSROOM, I'll ask an auto dealer how the Cash for Clunkers rebate program has impacted his business this week, and if all the bureaucratic red tape, the snags that have been reported, well, if all of it has been worth it. That's next hour in the CNN NEWSROOM.
A health reform bill set to move forward today. A key House committee is at work right now, and the chairman, Henry Waxman, says he's confident the revised reform bill will pass today before House members leave on their August recess. On the Senate side, bipartisan negotiators say they won't have a bill ready for a committee vote before their break.
So, let's get to our congressional correspondent, Brianna Keilar. She's on Capitol Hill for us. And Brianna, it sounds like the work continues in the House until the very end. You know, that's not a bad signal to send to the people you represent -- work until you're out the door.
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: No. That is the signal that Democrats are trying to send, Tony, especially -- I want to tell you about a meeting that's going on right now that we've just learned about.
House Democrats at this moment are meeting with President Obama's top adviser, David Axelrod, as well as Nancy-Ann DeParle, the president's top health care adviser. And what are they talking about? They're talking about their message.
As they are about to head out the door here for August recess, they're going to be facing tremendous pressure from Republicans who oppose them on health care reform. And this is actually a document, a memorandum, that was sent out to all House Democratic members.
We obtained this from a Democratic aide talking about what they're going to be doing over the August recess -- countering the Republican government takeover message by saying things like they're holding the insurance companies accountable, there aren't going to be co-pays for preventive care. And it's all about, according to this memo, and as we know, Tony, showing momentum and driving the debate, because they're going to be facing really some tough criticism here.
But this is where things stand in the House, and there is somewhat a lack of momentum compared to what President Obama initially wanted. Obviously, no floor vote in the House before they leave, but we do know that this key committee, the third and final committee that health care needs to clear in the House, that we're expecting they go them to go through a vote here in the early afternoon and move that through that committee.
But in the Senate, things moving quite a bit slower. One key committee that still health care reform needs to go through there, the Senate Finance Committee. And as we understand it, last night, these bipartisan negotiators, these keep members who are trying to work out some agreement, they came to a bit of an impasse.
Democrats had to capitulate to Republicans who were saying we can't be pressured into a vote in this committee before we leave on our recess, which, Tony, as you know, begins next week. And so at this point, it's even in jeopardy if they're going to come to just sort of -- some sort of deal, let alone a vote, before the Senate leaves next week.
HARRIS: And one more quick one here, Brianna, taxing Cadillac health plans. Is that still being discussed?
KEILAR: This is something that's gaining some bipartisan traction. This is something proposed by Senator John Kerry.
Those Cadillac plans, Tony, no co-payments, no deductibles, ,and they're rather expensive. You know, the average health care plan in the U.S., the premium is $12,000 a year. Some of these Cadillac plans go up to about $40,000.
Well, this plan is to tax insurance companies that provide them, not the people who get them. But I have to tell you, for all the bipartisan interest this proposal is getting, there's also a lot of bipartisan opposition. Unions, a Democrat ally say, no way, this tax is just going to be passed back on to the consumer, it's going to hit our union members. And we heard that, as well, from Republican Senator Orrin Hatch of Utah. He said it's not just union members and people with Cadillac plans who will pay, it will get passed on to all insurance consumers -- Tony.
HARRIS: All right. Still a lot going on.
Brianna Keilar on Capitol Hill, following it all for us.
Brianna, appreciate it. Thank you.
Health care cooperatives, they've been mentioned as an alternative to a government-run insurance plan. Later this hour, Senior Medical Correspondent Elizabeth Cohen explains what health insurance co-ops are and how they would actually work.
Iran's president taking it from both sides. As protesters prepare to go on trial, President Ahmadinejad lashes out at hard-line critics.
(COMMERCIAL BREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
HARRIS: Iran's president says there is no rift between him and the country's supreme leader. Mahmoud Ahmadinejad lashed out at hard- line critics today ahead of his inauguration next week. His comments come a day after the latest post-election violence.
Reza Sayah is at the Iran Desk.
And Reza, if you would, bring us up to speed on these developments.
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Yes, Tony. Never in the 30-year history of the Islamic Republic has there been a major rift between the supreme leader and the president, but these days, there's all sorts of signs that the supreme leader not on the same page with the president, Ahmadinejad.
Talk of the rift started last week when the president appointed a controversial vice president. The supreme leader and hard-liners made it clear that they don't like this man, they made it clear that Ahmadinejad should get rid of him. He kind of dragged his feet a little bit.
He delayed, and when he finally did get rid of him, he turned around and appointed him his top adviser. Many saw that as defiant. Remember, in a few days, these men will be standing side by side during an inauguration ceremony. Today, President Ahmadinejad came out and said, rift? What rift? We're like father and son.
Take a listen.
(BEGIN VIDEO CLIP)
MAHMOUD AHMADINEJAD, PRESIDENT OF IRAN (through translator): Some have tried to cast doubt on our relationship through propaganda and imply that there's a rift and distance between us. They do not understand that our relationship is based on affection, based on faith, and is a father-son type of relationship. Its essence is not what they think it is.
(END VIDEO CLIP)
SAYAH: That was the president trying to convince everyone that they're all getting along. But during Friday prayers today, more signs of infighting between hard-liners. During Friday prayers, hard- line cleric Ayatollah Jannati came out and criticized President Ahmadinejad for firing his intelligence minister, but Jannati also had plenty of criticism for opposition, too.
The government says about 30 protesters have been killed over the past few weeks. He blamed those deaths on opposition leaders, saying they provoked them. He demanded an apology from those opposition leaders.
Also, new pictures today of arrests made yesterday during the protests. Press TV, the state-run, English-language television station in Iran, says about 50 people were arrested. Human rights groups say hundreds are in custody from previous protests.
Tony, 20 of them will go on trial tomorrow on security-related charges. Very interesting developments in the next few days.
HARRIS: All right. Our Reza Sayah for us from our Iran desk.
Reza, appreciate it. Thank you.
Bombings targeting mosques across Baghdad killed at least 27 civilians and wounded dozens more today. The roadside bombs exploded near five Shiite mosques in the Iraqi capital as worshipers were leaving Friday prayers. The bombings shattered a period of relative calm in Baghdad and come a month after U.S. troops withdrew from major urban areas.
Who will be the CNN Hero of the week? Well, when U.S. troops withdraw from Iraq, why one man will stay behind.
(COMMERCIAL BREAK)
HARRIS: Progress slows to a crawl on President Obama's top domestic issue -- health care reform. So, how is the administration responding to the delays and the setbacks? Let's check in with senior White House correspondent Ed Henry. He is on the air right now with his weekly radio show, "44 With Ed Henry."
And Ed is inside -- wow -- the radio booth inside the White House.
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Yes. This is our digs. You know, by the way, I've got some root beer here for the root beer summit. The day after, we're doing a root beer summit for the show.
And we just had Bill Burton, who's the deputy White House secretary, who was talking about health care and the economy. And yes, this is not that really sweet digs, I guess. Most people think it's pretty glamorous here, but this is where we do our work, day in and day out.
HARRIS: This is terrific.
All right. So, Ed, let me start with the Cash for Clunkers program, because you got the news first on this. It looks like the program is essentially running outs of cash, if it's not already out of cash. But there are efforts on Capitol Hill right now to extend the program or find some more money.
HENRY: That's right. My colleague, Brianna Keilar, on Capitol Hill saying that there is probably about four to six weeks more worth of money. But it was deteriorating rapidly because this program has been a lot more popular than perhaps the administration, congressional leaders expected.
Robert Gibbs, here at the White House, telling us that despite some of the reports last night that this program was being suspended, he said it's still going on, and that anyone who goes out to buy a car, was planning to this weekend, those certificates are going to be honored as they work out what they hope to be a new deal, which Brianna, as well as Deirdre Walsh on the Hill for CNN, saying it looks like the administration and Congress are going to come together on a deal of about an extra $2 billion to fund this, so that even more of the so-called clunkers can be traded in for more fuel-efficient vehicles.
What the White House is trying to do to promote this is say, look, it's not only about stimulating the economy, getting car dealers some more traffic, for example, but also trying to improve the environment by getting some of the clunkers off the road and getting more fuel-efficient cars out of the road.
HARRIS: Hey, Ed, let's turn to health care reform.
You know, there is what you say publicly and what you say privately, and what you love to get your hands on are some of those private comments. This House is trying to get a revised bill out of committee. Nothing likely out of the Senate Finance Committee before the recess. Glass half empty, half full for this president on health care reform?
HENRY: Well, I think it still is half full, but barely, because there certainly is some pessimism the White House has to feel privately, even though publicly they've still got a very confident face.
Let's look at the facts, which is that this president set the deadline, as you mentioned, for both the House and Senate to at least get the early stages of legislation through each chamber by this August recess. The House is about to go out. They're not getting that done. And they were supposed to be the easy chamber, if you will, to get it done.
HARRIS: That's right.
HENRY: Now, the Senate, we've known for at least a week, week and a half, they would not get it through the full chamber before their vacation, but they were saying as of late last Friday, when the president met with Senate Finance Chairman Max Baucus here at the White House, that the takeaway from that meeting was at least the Finance Committee is going to try to get it out of committee even if the full Senate can't get it done. As you know, that's not going to happen.
HARRIS: Right.
HENRY: And so now you can't even get it out of the Senate committee. So, while they're still confident here, there has been some blows to this legislation, but you can't count the president out. It's still early. Even if everybody going goes home for August without getting it done, he's going to be hitting this hard in September and he's still got a shot at it.
HARRIS: Yes.
Let me run this by you, however. How concerned should this president be that Republicans will spend the next month knocking the reform efforts going on, on the Hill? It certainly would explain, in part, the push to get something done before the break.
HENRY: Absolutely. You're right.
I think this White House is a bit nervous in private about exactly what's going to happen at those town hall meetings that members of Congress have back home. But I would twist one thing that you said.
I don't think they're as worried about what Republicans are going to say about the health reform effort, because they know the Republicans are already on record as basically saying they're against it in terms of what the president is putting out there. Republicans still insist they have their own plans.
What is more important is what happens with those Blue Dogs, those conservative Democrats in the House, some in the Senate. When they go home, do they get pressure from their constituents saying this is just too expensive? And do they come back in September and say, you know what, Speaker Pelosi, you know what, Senate Majority Leader Reid? We just can't be on board. Because let's not forget, those House and Senate members are going to be on the ballot -- at least some of the Senate members, all of the House members -- in November 2010.
So, the most important thing coming out of the recess for this White House, what are conservative Democrats hearing from their constituents?
HARRIS: And it would have to be difficult for those representatives, those Blue Dog Democrats, to defend what isn't fully formed at this point, right?
HENRY: You know, the hard part about covering this story and explaining it to our viewers is that it's like covering Jell-O. You know? What is it?
HARRIS: Where is it?
HENRY: You know? And we don't even have the whole thing. And then it's sort of elusive, because the president doesn't want to be pinned down on too many specifics just yet. But at some point, you're right, he's going to have to get more specific.
HARRIS: Ed, what's the phone number for the program?
HENRY: You can -- yes, 1-877-266-4189. You can either call in or send a question on Twitter, EdHenryCNN, all one word -- Tony.
HARRIS: You're awesome. Ed, as always, thank you.
Oh, hold on a second. OK. Ed, I just wanted to let everyone know while you were there, in case you had a comment, the president will make comment on the economy at about 1:15 p.m. Eastern Time.
HENRY: It just had come across the BlackBerry.
Well, interesting about that, real quick, I'll tell you that Robert Gibbs was saying earlier that these new GDP numbers suggesting -- I think it was about a one percent loss of growth in the second quarter. It's a little bit better than expected.
So, what we expect the president to do is to try to say, look, things are starting to pick up. It's still not there yet. But he's also going to point to some of the revised numbers from late last year and early this year to say, you know what? We pulled this economy back from the brink. It was much worse than anybody thought. He's going to try to take credit for that moving forward.
HARRIS: Happy I didn't let you go. All right, Ed. Appreciate it. Thank you.
HENRY: Thanks, Tony. Appreciate it. HARRIS: When civilian contractor Brad Blauser went to Iraq, he found out that one in seven Iraqi children live with a disability. As U.S. troops begin to withdraw from the region, he is staying to offer hope to hundreds of desperate children and their families.
Brad Blauser is CNN's Hero of the Week.
(BEGIN VIDEOTAPE)
ANNOUNCER: This is CNN Heroes.
BRAD BLAUSER, CNN HERO: Disabled children, they're really the forgotten ones in this war. They're in the back rooms, often not seen in society.
I came to Iraq as a civilian contractor. There were a lot of children that either drag themselves on the ground or they have to be carried.
There were so many kids out there with a need, and so many people willing to reach out and touch the lives of these kids. In 30 days, we had 31 pediatric wheelchairs that had hit ground.
My name is Brad Blauser. I bring pediatric wheelchairs to Iraqi children in need. People donate on my Web site. The wheelchairs are brought over, and I distribute them to the different military units and help fit these children into the wheelchairs.
The experience for me on the first distribution was awesome to see the smile come across their face and look over at the mothers and fathers. They've definitely been changed.
UNIDENTIFIED MALE (through translator): It's all about humanity. He wanted Iraqis to feel that there is humanity in America. It makes us happy to see such a thing.
BLAUSER: There is no paycheck. It's not really safe here, but this is a once-in-a-lifetime opportunity, knowing that you've done something for someone that nobody else has done before. I made a difference in the lives of these families. Definitely, the sacrifice has been worth it.
(END VIDEOTAPE)
HARRIS: And you can nominate a "CNN Hero" of your own on our Web site at CNN.com/heroes. But do it right now. Nominations close tomorrow.
(COMMERCIAL BREAK)
HARRIS: OK, we learned just moments ago that President Obama will make a statement about the economy this afternoon, scheduled for about 1:15 this afternoon. We will of course carry those comments for you with Kyra Phillips and the CNN NEWSROOM. Here's what the president said just yesterday about the economy.
(BEGIN VIDEO CLIP)
OBAMA: Looking at the consensus of economists right now, it confirms that we have seen a significant slowing down of the contraction over the last several months. There are a lot of indicators out there that tell us that, you know, job losses, although still way too high, are not at the pace that we were seeing in January and February. Housing prices went up for the first time in three years.
The credit system, the banking system, the financial markets generally have settled down. You're not seeing the huge volatility or panic that you were seeing. And so all of that is a sign that we have stepped away from the precipice.
(END VIDEO CLIP)
HARRIS: All right. And once again, the president to make a new statement on the economy. Maybe he will reflect those statements -- 1:15 Eastern time right here in the CNN NEWSROOM.
You know, the Cash for Clunkers program has really hit a pretty big bump in the road after just a week. It looks like the auto rebates are about gone. The White House says the program will continue at least through the weekend. It's trying to get more money out of Congress before its August recess.
Let's bring in our personal finance editor Gerri Willis, and Gerri, help us through this. How do I know, first of all, if I am even driving a rebate-worthy clunker?
WILLIS: Well, this is a check you want to take before you go to the dealership this weekend. And here are the rules. Your old car must be less than 25 years old on the trade-in date. It has to get 18 miles per gallon or less, and it must be registered or insured under your name for at least a year. You can't go get a really old car off of cinderblocks and then bring it in. That's not going to work.
The new car needs to get at least 22 miles per gallon, and the credit you get will be anywhere from $3,500 to $4,500, based on how many more miles per gallon your new car gets -- Tony.
HARRIS: OK, and if this program does get more funding -- it looks like it might -- what should consumers have in mind?
WILLIS: Well, if you want to take advantage of the program, you're going to have to act quickly. As we saw, there is huge pent-up demand. So, get all your documents you'll need before you head off to the dealership. And here's a cheat sheet. One year's worth proof of insurance or/and registration going back a year, a clear title -- and now, Tony, that means it must be free of any liens. If you have any, you're going to need to clear those up before going to the dealer. Manufacturer date, you're going to need that -- that's found on the driver's side door -- proving that the car is less than 25 years old.
So, devil's in the details. But if you want to take advantage, you're going to have to act pretty darn quickly, I think. HARRIS: Yes, it sounds like it. And Gerri, you're going to be back in just a couple of minutes. We're going to dive into the e-mail bag?
WILLIS: That's right. We've got a lot of great questions.
HARRIS: Awesome. See you in just a couple of minutes.
Thanks, Gerri.
A key committee is at work right now on health care reform, and the chairman says he is confident the bill will pass today before House members leave on their August recess. Bipartisan Senate negotiators say they won't have a committee vote before their break.
Health insurance cooperatives, we've been talking about that just a bit. We're hearing them mentioned as alternatives to a government- run health plan. Senior medical correspondent Elizabeth Cohen, she joins us now. And Elizabeth, hi.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Hi.
HARRIS: Who's talking about these cooperatives?
COHEN: Democrats are talking about them...
HARRIS: Yes.
COHEN: ... Republicans are talking about it. It seems to sort of be the new thing. They're not a government-run program, they're not a health insurance company with stockholders. What they are is, they're a cooperative that are owned by their members. And let's take a listen to what Senator Kent Conrad had to say about them recently.
(BEGIN VIDEO CLIP)
SEN. KENT CONRAD (D), NORTH DAKOTA: So, that's not government- run, government-controlled. It's membership-run, membership- controlled and very effective in terms of dealing with their membership.
(END VIDEO CLIP)
HARRIS: All right, Elizabeth, so that's Kent Conrad, and he is, as you mentioned, he is the senator who really put forward this plan. But how does it work? How does a co-op even work?
COHEN: Well, let's talk about them because there aren't very many of them. So, it's sort of important to know exactly how the whole thing functions. There are a couple of key ingredients to a co- op, so let's go over what they are.
First of all, it has to be a nonprofit organization. Nobody's making money off of them. The patients elect a governing board, and they need to have tens of thousands of members, at least, to make it work. So basically, it's a whole lot of people getting together, electing their own governing board, and they then set out to negotiate with doctors and hospitals to get health care.
HARRIS: It doesn't sound like a bad idea. I'm just wondering why there are so few health insurance co-ops.
COHEN: Because they are so -- they're hard to do. They are not an easy thing to accomplish, so there's only a handful of them in the country. And the reason why it was sort of that third ingredient that I had on there, you need a mass of people, at least tens of thousands, preferably hundreds of thousands of people to negotiate with doctors and with hospitals.
If that doesn't happen, financially, it won't work. And here's another thing. The co-op -- in order for this to work with health care reform, the co-op needs to accept people with pre-existing conditions.
HARRIS: OK. OK.
COHEN: And we all know how expensive that is. That's why insurance companies aren't crazy about people with pre-existing conditions. So, to accept people with cancer and heart disease...
HARRIS: Right.
COHEN: ... and all sorts of other problems.
HARRIS: No cherry picking.
COHEN: Right. There's no cherry picking. And for this to work with health care reform, you've got to take everyone, and that's not easy.
HARRIS: How much is this going to cost?
COHEN: It's going to cost a lot of money, and that's why the government is now interested because they're thinking not that they would fund these co-ops entirely, but that they would give them some seed money to get them started.
HARRIS: Right.
COHEN: But when I say seed money, I'm not talking about a buck or two. I'm talking about some say $4 billion, some say $10 billion. So, it's going to need serious help from Congress.
HARRIS: All right. So, we'll continue to talk about it and see what ultimately emerges, right?
COHEN: Yes. It may be sort of the cool new thing.
HARRIS: Yes.
COHEN: We'll have to see.
HARRIS: Elizabeth, appreciate it. Have a great weekend.
COHEN: Thanks. You, too.
HARRIS: Thank you.
Health care, Cash for Clunkers and the first six months of the Obama presidency. Do you have questions about any of these topics? Well, the vice president's chief economic adviser, Jared Bernstein, is answering your questions in the 1:00 p.m. Eastern hour of CNN NEWSROOM. Now, send us an e-mail at mailtothechief@CNN.com -- OK, at cnn.com, or send Kyra a tweet at KyraCNN.
Come back to Mexico, please. That is the plea from a desperate tourism industry. But wait until you hear what it is offering to get you there.
(COMMERCIAL BREAK)
HARRIS: You know, we should have the music here, a little James Taylor, "Mexico." Oh, I missed that one. You know, it's cheap in Mexico right now. Boy, is it.
In an effort to get tourists back, the Mexico City government is offering visitors free health and travel insurance through December, and that just sweetens some already sweet deals. Nicole Lapin joins us now with a look at the deals you could get if you're feeling a little daring. What do you have, Nic?
NICOLE LAPIN, CNN CORRESPONDENT: Well, we've seen this before, Tony.
HARRIS: Yes.
LAPIN: To dangerous locations -- Beirut, we saw it in Baghdad because it was war-torn. Here we're dealing with the trifecta of sorts. Tony, we're dealing with a weak U.S. economy. We're also dealing with news about drug cartels and H1N1.
So, at first, Mexico saw 25 percent capacity at hotels, so they decided to launch this Web site, mexicoupdate.com, to try and be more transparent about it. But we were seeing deals. Let me give you an example, Tony. I really like this site, farecompare.com, which is an aggregator of a lot of different discount sites out there.
HARRIS: Right.
LAPIN: Newark to Mexico City in the $300 range. A year ago, we were seeing it in the $500 range.
HARRIS: Wow.
LAPIN: And then the packages, talk about the packages.
HARIS: I'm ready to see this.
LAPIN: This is like 50 percent off to Cancun and Cozumel.
HARRIS: Are you kidding me? LAPIN: Yes, we're seeing these online travel companies just discount like crazy. Anecdotally, Tony, they don't want to see scenes like this, right, these empty beaches.
HARRIS: Right, right, right.
LAPIN: So, we're hearing people go to Mexico and come back and say, you know, we are seeing a lot of freebies, free breakfasts, free transportation. As far as the hard stuff that we were just talking about from Mexico City's government, not a lot of information online right now.
They're basically saying that once you land in Mexico City, you'll get a pamphlet that will give you all of the details. Not only do you get free health insurance, you get free dental insurance. And if -- if -- you get swine flu, then you get free hotel stays. And if for some reason you need legal fees, they cover that, as well.
HARRIS: They're covering all of that?
LAPIN: They're basically saying, please...
HARRIS: Come on back.
LAPIN: ... come on back.
HARRIS: Puerto Vallarta, Cabo, correct? Cancun.
LAPIN: There's a lot of options.
HARRIS: A lot of options. All right, Nicole, see you next hour.
LAPIN: See you.
HARRIS: All right, our Gerri Willis jones us next, and we are talking credit card interest rates, loan consolidation, all your financial questions answered. We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: Let's see here. Loan consolidation, Cash for Clunkers and climbing credit card interest rates. CNN personal finance editor Gerri Willis is back. Three hits with Gerri in one hour. That probably means we won't see you for a month.
WILLIS: It's a pleasure for me.
(LAUGHTER)
HARRIS: But we've enjoyed it. Gerri's with us from New York with answers to your e-mail questions. Are you ready to dive into the e-mail bag there, Gerri?
WILLIS: I am, indeed. Let's go.
HARRIS: All right. All right. The first question comes from Azad, who is a student. And he says, "My student loan interest rate is 3.4 percent. My wife has multiple student loans ranging from 6 percent to 7.2 percent. How can we reduce our interest rate, and can we consolidate both loans into one?"
WILLIS: Azad, we really don't think you can do any better than the rates you have right now. Here is why. First of all, you can't really consolidate your loans with somebody else's loan, even though you're married. You wouldn't want to give up that 3.4 percent interest anyway. And you know what? Your wife may get a better rate through private consolidation, but only if her credit score improves significantly. What's more, the fact is, her FICO score was probably over 800 to qualify in the first place, so you're sitting pretty as it is right now.
HARRIS: Yes. All right. Our next question comes from Ed. He writes in with this particular question on the Cash for Clunkers program. We've been talking about that a lot this morning.
WILLIS: Right.
HARRIS: Is there an income restriction in order to get the credit?
WILLIS: Well, Ed, you know, news out this morning, Cash for Clunkers will continue throughout the weekend. Congress is trying to secure a $2 billion extension of the program. As you know, the program was close to running out of funds. That said, if the program does get more funding, you're going to have to act fast. The good news for you here, there is no income restriction. Doesn't matter what you make. You can play.
HARRIS: Got you. It's great. All right, you got time for one more, Gerri?
WILLIS: I sure do.
HARRIS: All right, this one comes from Yotindra, who writes, "My credit card company informs me that my interest rate was hiked to around 16 percent."
WILLIS: Ow.
HARRIS: "For many years, it was around 5.99 percent. I have had this card since 1998. How should I approach the company to minimize the APR?" What are your thoughts on this, Gerri?
WILLIS: Well, OK, Yotindra, it's likely that you'll never see that 5.99 percent again. The average rate these days, 13 percent. But, hey, I got to tell you, it's worth calling your credit card issuer to see if you can get that 16 percent rate lowered. Negotiating a reduced interest rate is still something that credit card companies are doing for good customers, and it's certainly easier than having a credit raised or doing a debt settlement.
Now, when you do call your credit card issuer, it will help if you don't have a balance and you're not afraid to play hardball. Tell the issuer that you're thinking about transferring to a competitor's card and mention specific offers, too. If you have a FICO score of about 740, you should be able to get an interest rate below 10 percent. So, that's what you're aiming for.
And if you have any questions, send them to us at gerri@CNN.com. We answer those questions right here every Friday, and we love to hear from you.
HARRIS: We're not finished with you yet, Gerri. Give us a preview of the big "YOUR BOTTOM LINE" show tomorrow.
WILLIS: 9:30 a.m. Saturday morning, right here on CNN. We're talking about health care and what's going on there. And if you had a problem with your doctor, we're going to tell you how to fire your doctor if you want to do that. We'll also tell you the scams to watch out for.
We've got a lot of ways to save you money. Tomorrow morning, 9:30, right here on CNN, "YOUR BOTTOM LINE."
HARRIS: Boy, you've been terrific for us this hour. Appreciate it so much.
WILLIS: My pleasure.
HARRIS: Thank you, Gerri. Have a great weekend.
WILLIS: You, too.
HARRIS: And as always, check out our "SPECIAL REPORT: AMERICA'S MONEY CRISIS." You can find it at CNNmoney.com.
And ahead in the CNN NEWSROOM, out of gas already, seriously? We will hear from car dealers and analysts about the Cash for Clunkers program and whether it is long for this world.
Also, be careful what you tweet about. A snarky post on the microblogging site Twitter leads to legal trouble for a Chicago woman.
Also ahead, we will tell you about a program here in Atlanta that gives homeless men and women a second chance. It's "What Matters," and it's coming up in the next hour of CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: New developments now, police label Michael Jackson a drug addict in a search warrant. The document identifies seven doctors who treated Jackson. It lists 19 aliases police say the singer used to get, quote, "illegal prescriptions." Police searched the Las Vegas home and office of Jackson's doctor this week for a paper trail on the drug Diprivan. A law enforcement official tells CNN Conrad Murray gave Jackson the anesthetic and remains the central focus of a federal investigation into the singer's death.
Michael Jackson's chef describes events the day the singer died. Kai Chase told CNN's Larry King she was making lunch for the family on what seemed to be a normal day, when the mood suddenly changed.
(BEGIN VIDEO CLIP)
KAI CHASE, MICHAEL JACKSON'S CHEF: Around 12:00, 12:05, 12:10, Dr. Murray comes down the stairs or the stairwell that leads into the kitchen. And he's screaming, hurry, go get Prince, call security, get Prince.
LARRY KING, CNN HOST, "LARRY KING LIVE": Prince is?
CHASE: Michael Jackson's eldest son, yes. And he -- so I drop everything that I'm doing and I run into the den, which is very close to the kitchen. And I go get Prince. And Prince and I run back and, you know, he meets with Dr. Murray at the stairs. Prince stays downstairs with us.
And Dr. Murray goes upstairs. But within minutes, the paramedics are there. And the security's running upstairs, skipping stairs. And all of a sudden we're all, you know, panicked. You know, what's going on? What's happening? So, the energy in the house had kind of, just kind of changed from that happy kind of day that we were having and preparing lunch and having a good time to just kind of eerie.
KING: Hmm.
(END VIDEO CLIP)
HARRIS: Chase says security told her to leave the house. She says she didn't learn Michael Jackson was dead until she heard it on the radio.
We don't know if he passed go, but we do know a game of Monopoly sent a man directly to jail in Michigan. How, you ask? Well, police say the man's female friend refused to sell him Park Place and Boardwalk. So, what did he do? He hit her in the head hard enough to break her glasses. The man was arrested and charged with misdemeanor assault and battery.
In Massachusetts, a stolen iPhone leads police to the teenager now strongly suspected of swiping it. The phone was taken from a locker at a YMCA. When the owner realized it was missing, he logged into a computer at the Y and turned on the phone's GPS tracking device. That led to what police called a perfect storm for the suspect.
And nice weather for a shuttle landing. Endeavour returned to Earth about a little more than a half hour ago at the Kennedy Space Center in Florida, ending a 60 -- 16-day mission to the International Space Station. The crew dropped off an American astronaut and gave one from Japan a ride home. They also installed the porch-like platform outside the space station.
