Return to Transcripts main page

CNN Newsroom

House Vote on Health Care Expected Today; Obama: GDP Better Than Expected; Additional Financing Pursued for Cash for Clunkers; Toledo Has its Own Beer Summit; White House Beer Summit a Success

Aired July 31, 2009 - 13:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Tony, thanks so much.

Too many clunkers, not enough cash. Huge demands for a government program designed to boost car sales and clear the nation's air. Well, it sends lawmakers scrambling. Call it cash for clunkers, for now.

Health care takes a back seat for at least another month, except in one House committee, which appears to have cleared its final roadblocks. We're live on Capitol Hill.

And we're outraged by the death of Dae'von Bailey. You will be, too. He was 6 years old, and the brutal beating that killed him could have been prevented.

Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.

Your health, your car, your money, your Congress. We're pushing forward on the unfinished business that's keeping lawmakers in overdrive, right up to the start of their August recess. They knew they'd be dealing with health-care reform, but the crunch over cash for clunkers snuck up on everybody. Now we're about to find out just how fast they can come up with $2 billion.

And we're waiting to hear from the president, as well. He's due to talk issue number one at quarter past the hour. You'll see him live, right here in the CNN NEWSROOM.

Well, to get an idea of how tough it is to get a bipartisan health care bill in the Senate, look what it takes to get a Democratic bill through a key House committee. The energy and commerce panel was stuck in the park while Blue Dog Democrats rebelled over costs. Then, liberals rebelled over concessions to the Blue Dogs.

Now, though, committee chair Henry Waxman says all is well, and a long-awaited vote will happen sometime this afternoon.

In the Senate, the so-called group of six in the finance committee -- three Democrats, three Republicans -- is giving up on the goal of finishing a bill by the end of next week, but it's not giving up on the bill. So, you up to speed on all that?

CNN's Brianna Keilar is watching and waiting.

Brianna, is that House vote still on track for today?

BRIANNA KEILAR, CNN CORRESPONDENT: Yes, it is on track today as far as we know, Kyra. That's expected to come here in about the next hour or so.

Meantime, this is the scene before the House of Representatives leaves for its August recess. These doors over here, members here in the next hour or so are going to stream out of them. They're going to stream down these stairs over here, and they're going to head home to their home districts without ever having voted on health care. And that means that this August recess is all about trying to win the fight over the debate on health care and who is going to win.

What you have is some Democrats and conservative Democrats, Kyra, who are very vulnerable during this time. They're going to go back. They're going to listen to their constituents, and they are certainly going to face big attacks from Republicans, who are against the Democrats' health-care reform plan that is being pushed in the House of Representatives right now.

So, what you see with Democrats is they're trying to circle the wagons, as these members head off into the district work period. They've put out this memo that says, to members, that this is going to be one of the -- "This is possibly the most consequential work period we have ever faced."

And this is chock-full of ways to counter what Republicans are going to say, which is right here in the memo that they have given out to members, talking about hitting Democrats not only on what they see as a government takeover of health care, but also on where are the jobs, for instance? Hitting on the national -- what they call the national energy tax, the energy legislation that -- that the House just passed through.

So, this is going to be a tough fight, even though all these members aren't in Washington, Kyra.

PHILLIPS: All right. Real quickly. The big sticking points in the Senate negotiations, how to pay for reforms. There's a new idea that's getting some bipartisan attention, right?

KEILAR: Yes. This is a new idea. On a tax on what's called those Cadillac plans. Really expensive health-care plans that don't have co-pays. They don't have deductibles. This is a plan being put out there by Senator John Kerry as a way to break up the logjam over how to pay for health care in the Senate.

It's got some bipartisan support, or at least some bipartisan interest, because it would tax insurance companies instead of the people who have these plans, Kyra.

But it's also got some bipartisan opposition. I've spoken with people from (AUDIO GAP) who say that this is going to hit some of their union members who have some of the (AUDIO GAP) plans. And I've also spoke with Orrin Hatch, Republican senator from Utah, who says it's not just these union members. It's not just people with these big plans, where the costs will be passed on to them by the insurance companies. He said if insurance companies have to pay a tax, they're going to pass it on to all people who get insurance through these companies, Kyra.

PHILLIPS: All right. We'll keep tracking it. Thanks so much, Brianna.

KEILAR: Thank you.

PHILLIPS: Let's get back now to those clunkers. Who knew that clunker owners and new car wannabes would burn through a billion dollars a week? Cash incentives for purchases of new fuel-efficient cars were expected to last through November, but as of yesterday it wasn't clear the funding would last through the weekend. The White House is promising it will.

Meantime, lawmakers are racing to pass another $2 billion to grease the wheels for thousands more sales.

(BEGIN VIDEO CLIP)

SEN. DEBBIE STABENOW (D), MICHIGAN: We have agreed that we're going to work to try to continue this program. First of all, it continues as-is today, until otherwise notice, until dealerships are told otherwise. And the House intends to pass a bill today that would add an additional $2 billion to the program. It would come to the Senate, and then next week we would work with colleagues to try to pass that.

UNIDENTIFIED FEMALE: And how do you pay for the $2 billion? Where does that money come from?

STABENOW: It would come from unused recovery funds that the Obama administration has identified, working with appropriators of it, as a source of funding.

(END VIDEO CLIP)

PHILLIPS: All right. You heard the senator mention that vote, the vote that's taking place right now on cash for clunkers. And we're following with our Brianna Keilar there on the Hill. We'll bring you the latest.

And our coverage doesn't stop there. The clunker crunch may come up when President Obama also talks about the economy in just a few minutes. And then later our Gerri Willis will talk about the deals in progress, as well as deals waiting to be made over the weekend. And we're going to meet a new car dealer in Florida who's actually holding up deliveries until he gets his government rebates.

We're also putting your questions on clunkers, health care, you name it, to Jared Bernstein, chief economic adviser to Vice President Biden. He's going to join us for "Mail to the Chief" later this hour. So keep those tweets and e-mails coming. We'll toss them to Jared.

Senator Chris Dodd in Connecticut expected to spend time in the hospital as Congress takes its August break. We've just learned he's been diagnosed with an early stage of prostate cancer. There is a report that he plans to have surgery early next month. Dodd's office said he plans to discuss his health at a news conference next hour. We'll be sure to monitor that for you.

And remember the lawmaker with a fortune in his freezer? We're also waiting for a jury to reach a verdict in his corruption trial. Former congressman, William Jefferson, is accused of taking bribes after federal agents said that they found $90,000 in a freezer in his home.

His federal trial in Alexandria, Virginia, got under way six weeks ago. The Democrat from Louisiana is accused of taking more than $400,000 in bribes and soliciting millions more in exchange for his influence to broker business deals in Africa. If he's convicted, he could face up to 235 years in prison.

Now, a week after he vowed to stay in office, the mayor of Hoboken, New Jersey, has resigned. Peter Cammarano took office just three weeks ago after a runoff election. He was snared last week in a federal corruption investigation. Dozens of other people, including public officials and rabbis, were also arrested.

Cammarano is an election law attorney. He's accused of accepting $25,000 in bribes in exchange for his help on a high-rise building project.

Well, a lot going on today, and we're just getting started in the CNN NEWSROOM. Stay with us. More news ahead.

(COMMERCIAL BREAK)

PHILLIPS: And we just want to remind you that in just about five minutes or so, we're expecting the president of the United States to step up to the mikes, make some remarks about the economy. Looking forward to see what he has to say.

And then we're also going to be talking with Jared Bernstein, the economic adviser to the vice president. He's actually going to take your e-mails and your tweets. So, say tuned for that.

Eight-year-old Robert Manwill missing for a week now from his Boise, Idaho, apartment. Days of searching failed to turn up anything, so now the search is stepping up. Police and hundreds of volunteers are in the middle of their most exhaustive search yet for Robert. And earlier, police were hoping that 1,000 more people would help and show up in that search.

Meantime, cops have been looking through the boy's apartment complex, his mom's place last night.

And we're learning more about an alleged family history of abuse, as well. Citing court papers, the "Idaho Statesman" actually says that Robert's mom is on probation for fracturing his infant half- brother's skull. Also, the mom's boyfriend has a criminal record, including burglary and battery. And more U.S. troops might be getting a call to war, maybe a lot more, citing military sources. The Associated Press says that the point man for the war in Afghanistan might request extra boots on the ground, and that might not go over well with the White House, which already agreed to boost U.S. ranks by 21,000 earlier this year.

General Stanley McChrystal plans to put out his assessment of the war next month. He might request anywhere from 4,000 up to 20,000 or more of extra forces. Right now there are 62,000 U.S. troops in Afghanistan, along with 35,000 allied soldiers and about 175,000 Afghan army and police officers.

After six years and 179 troops killed, the British are leaving Iraq. Britain officials -- or Britain actually officially ended its military presence today, with no real fanfare, the last of its troops heading across the border to Kuwait.

At the height of the war, about 46,000 British troops were deployed in and around Iraq, but gradual pullouts whittled their numbers down to about 150 in recent weeks. Meantime, in Baghdad today, nearly 30 civilians are dead and dozens wounded after bombs went off near five Shiite mosques.

And a program that's short on cash, long on clunkers. We're going to ask our personal finance editor what it's going to take to finally unload that rattle trap, that Gremlin, that Delta 88, and so on and so on.

(COMMERCIAL BREAK)

PHILLIPS: Well, that heat wave in the Pacific Northwest has turned deadly now. An older man with heart disease died yesterday in the Seattle area. Heat is believed a factor, and a death in Tacoma might be heat related. Temperatures across the region have been way above normal since Tuesday.

Finally, though, some relief in sight for the Pacific Northwest, with a surge of cooler air hopefully headed that way soon.

Chad, you're tracking it for us. What do you think?

(WEATHER REPORT)

CHAD MYERS, AMS METEOROLOGIST: We did get the shuttle to land today. We got the shuttle to land, because we haven't had any showers around Cape Canaveral.

There we go. There's the video of it coming on down. Took, six, seven, I don't even remember how many attempts with weather to get it off the ground. The good news is it didn't take that many attempts to get it on the ground.

You can't land this thing. This thing is thousands of degrees right now. You can't make that drive itself through a rain shower. So, literally, the landing restrictions are almost worse than the takeoff restrictions itself. But there's your weather there. It is now moving in. The good news is it tried to land, it did land, in the 11 a.m. hour, not the 6 a.m. hour, when there were showers everywhere.

Showers in Atlanta slowing down the airport: 90 minutes right now. On up toward the northeast, showers. And now a new thunderstorm watch. See this last little parallelogram right there? One, two, three, pop! There it is. There's the parallelogram. That right there, that's a severe thunderstorm watch for New York city, for Philadelphia, for Atlantic City, most of Connecticut all the way down to almost D.C. But yes, I guess into D.C., but not quite into Richmond.

There's going to be a potential today for wind, for hail, and even for a tornado or two for some of these super cells that sit there and spin all by themselves. Those spinners could put down a tornado or two today.

I know it's unusual. I know it's rare. But I worked with -- I worked on a story last night. Just in the past five days alone, from Buffalo to New York City, down into New Jersey, there have been four tornadoes on the ground. In five days in New York and New Jersey, that's pretty rare. The system today is the same kind of configuration, Kyra.

PHILLIPS: All right, keep tracking that.

And, of course, you've been watching all the shuttle stuff for us, the weather, the landing, all that good stuff. Did you hear about this one, the Japanese astronaut who caught a ride back to the earth on the shuttle, bringing back some pretty dirty underwear?

MYERS: No, but I can imagine.

PHILLIPS: Can you imagine scientists really want to get their hands on them?

MYERS: No, but thank you for bringing that up in my show.

PHILLIPS: You're welcome. I knew you would find this fascinating. Because everybody's been talking about Koichi Wakata. He's been on board the International Space Station since March.

MYERS: Yes.

PHILLIPS: And he's been testing out high-tech skivvies in those close quarters. I know this sounds really weird and kind of gross. But he says that none of his colleagues complained. And we actually found photographic evidence to back him up. I don't think we're going to show you everything.

MYERS: No thanks. We'll pass.

PHILLIPS: But all fellow astronauts seem to be all smiles about it. Go underwear. The special, I guess, undergarments are made of a high-tech material, Chad, and it's meant to actually repel bacteria and prevent odors. Good thing to have while you're up in space. And you know...

MYERS: You can turn them inside out 40 times.

PHILLIPS: Well, you know, the whole Tang thing worked out really well, so maybe his little spacey Underoos might be coming to a hamper near you. What do you think?

MYERS: Or a 4-year-old coming near -- soon near you.

PHILLIPS: Well, your little Grant doesn't need to worry about things like that. He's very good. All right, Chad, thanks.

MYERS: You're welcome.

PHILLIPS: Well, the big heaps keep on coming, huffing and puffing on their last legs. And we're going to find out how the auto dealers are trying to handle all this and whether this cash for clunkers program is even helping.

(COMMERCIAL BREAK)

PHILLIPS: All right. We are waiting for the president of the United States to step up to the mikes there, make some remarks about the economy.

We're also taking your e-mail questions. We'll direct those to Jared Bernstein, economic adviser to the vice president. So, we're staying on top of all things economy today, as well as what had happened yesterday. The big beer summit. I doubt anyone had a love hangover this morning. But by all accounts last night's White House get-together went pretty well. Senior political correspondent Candy Crowley has more on the beer gaggle.

All right, let's go to the president first. Then we'll talk brews.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I want to talk about the economic numbers that we received this morning.

The gross domestic product, or GDP, is the measure of our overall economic growth as a nation. This morning the GDP revealed that the recession we faced when I took office was even deeper than anyone thought at the time. It told us how close we were to the edge. But the GDP also revealed that, in the last few months, the economy has done measurably better than we had thought. Better than expected.

And as many economists will tell you, that part of the progress is directly attributable to the recovery act. This, and other difficult but important steps that we've taken over the past six months, have helped us put the brakes on the recession.

We took unprecedented action to stem the spread of foreclosures by helping responsible homeowners stay in their homes and pay their mortgages. We helped revive the credit markets and opened up loans for families and small businesses. And we enacted a recovery act that put tax cuts directly in the pockets of middle-class families and small businesses, extended unemployment insurance and health insurance for those who have lost their jobs, provided relief to struggling states to prevent layoffs, and made investments that are putting people back to work, building bridges and roads, schools, and hospitals.

Now, I realize that none of this is much comfort to those Americans who are still out of work and struggling to make ends meet. And when we receive our monthly jobs report next week, it's likely to show that we're still continuing to lose far too many jobs. As far as I'm concerned, we won't have a recovery as long as we keep losing jobs. And I will not rest until every American who wants a job can find one.

But history does show that you need to have economic growth before you have job growth. And today's GDP is an important sign that the economy is headed in the right direction and that business investment, which had been plummeting in the last several months, is showing signs of stabilizing. This means that eventually businesses will start growing, and they'll start hiring again. And that's when it will truly feel like a recovery to the American people.

This won't happen overnight. As I've said before, it took us many more months to fully dig ourselves out of a recession that we now know was even deeper than anyone thought, but I will continue to work every single day and take every step that's necessary to make sure that happens.

I also intend to make sure that we don't return to an economy where our growth is based on inflated profits and maxed-out credit cards, because that doesn't create a lot of jobs. We need a robust growth, based on a highly-educated, well-trained workforce, health- care costs that aren't dragging down businesses and families, and clean energy jobs and industries. That's where our future is, and that's where the jobs are.

Now, one of the steps we've taken to boost our economy is an initiative known as cash for clunkers. Basically, this allows folks to trade in their older, less fuel-efficient cars for credits that go towards buying fewer, more -- newer, more fuel-efficient cars. This gives consumers a break, replaces dangerous carbon pollution and our dependence on foreign oil, and strengthens the American auto industry.

Not more than a few weeks ago, there were skeptics who weren't sure that this cash for clunkers program would work. But I'm happy to report that it has succeeded well beyond our expectations and all expectations, and we're already seeing a dramatic increase in showroom traffic at local car dealers.

It's working so well that there are legitimate concerns that the funds in this program might soon be exhausted. So, we're now working with Congress on a bipartisan solution to ensure that the program can continue for everyone out there who's still looking to make a trade. And I'm encouraged that Republicans and Democrats in the House are working to pass legislation today that would use some recovery act funding to keep this program going, funding that we would work to replace down the road. Thanks to quick, bipartisan responses, we're doing everything possible to continue this program and to continue helping consumers and the auto industry contribute to our recovery.

So, I'm very pleased with the progress that's been made in the House today on the cash for clunkers program. I am guardedly optimistic about the direction that our economy is going, but we've got a lot more work to do. And I want to make sure that all the Americans out there who are still struggling because they're out of work or not having enough work know that this administration will not rest until the movement that we're seeing on the business side starts translating into jobs for those people and their families.

Thank you very much, everybody.

PHILLIPS: All right. Ali Velshi, our chief business correspondent, also listening to the president's comments there. Ali, he was mentioning the GDP, close to the edge...

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Yes.

PHILLIPS: ... when he first took office. Then he said because of what he's done and what the administration has done, that they have put the brakes on the recession. Why don't we go ahead and fact-check his bragging rights there. What stood out to you? Yea, nay with regard to what he was praising the administration for.

VELSHI: Well, the bottom line is, presidents get blamed for recessions, and presidents get credited for recoveries, and it's not the same one.

Let's just remember, GDP is the broadest measure we have of everything that's created in our economy. We are looking at the GDP, the growth in the economy -- that's the value of everything we produce and make, from January -- March through the end of June. So, it's the second quarter of the year.

It was still negative, which means our economy was still shrinking, but just by a little bit. And so he's saying we've turned a corner.

Now, part of that is that's when some of that stimulus money started to kick in. Government spending came in, making up for consumer spending, which was still declining. So, yes, there's growth in the economy.

Look at the other things that are going on, Kyra. The stock market up about 45 percent since March 9, which was the low point. Housing prices starting to stabilize, housing sales starting to pick up.

So I think you probably sensed it yourself with your colleagues or your friends. There's definitely a different mood out there than there was six months and three months ago. And I think the president is tapping into that.

PHILLIPS: all right. Ali Velshi, appreciate it.

We're going to talk more about this, also take your e-mails and tweets to Joe Biden -- Vice President Joe Biden's economic adviser, Jared Bernstein.

Also, we've got news about the Cash for Clunkers bill. Apparently, it has passed the House. We'll have more from Capitol Hill. All this developing right now for you. We'll have more right after the break.

(COMMERCIAL BREAK)

PHILLIPS: All right. Time now for "Mail to the Chief," your questions answered by people in the know at the White House. Jared Bernstein, chief economist and economic policy adviser to Vice President Biden, we haven't seen him for a while. He joins us now live from the north lawn. Hey, Jared.

JARED BERNSTEIN, CHIEF ECONOMIC ADVISER TO VICE PRESIDENT JOE BIDEN: Hey, nice to see you again.

PHILLIPS: Likewise. And we just got word Cash for Clunkers just passed the House. You know, this was kind of the big rumbling this morning about the program already being out of money. We're actually going to talk to a dealer in just a few minutes who is afraid he's not going to get his money from the government. He made all these deals, and now he's telling his clients, nope, you're not going to get your car until I know what the heck is going on. So, what's going on?

BERNSTEIN: No, the dealer and his or her customers need to be reassured. And, in fact, yesterday Robert Gibbs made the point that all transactions will be honored.

This has been a program that has obviously been even more successful than we'd hoped. And, you know, I think the thing that needs to be appreciated here is that you're accomplishing two goals with Cash for Clunkers: an environmental goal in the longer term, and in the shorter term, restoring some much-needed demand to our domestic auto sector. So, the fact that is moving, as you mentioned, in the Congress is very positive. We very much would like to see the program extended.

PHILLIPS: So, right now, you're saying the money is available. Because I believe the dealer I'm about to talk to has made 48 deals, and that's, what, $4,500 per car. Is he going to get his money for sure?

BERNSTEIN: Well, I can't speak to any individual dealer's deals. What I can tell you is that we've been very clear on the point that transactions made thus far will absolutely be honored.

PHILLIPS: OK. All right, let's get to a Twitter now. This one comes from Quirkyme. Got to love these names Jared. "How about a federal public health care option allowing states to opt in so voters can battle it out on the state level?" BERNSTEIN: First of all, this is not -- we don't come out here to make policy, especially in health care. But what I will do is tie that question to this notion of a public option. If the president has been clear about one thing in health care reform, it's his desire to see a public option in a reformed health care system.

And the reason -- and I think that the twitterer's question gets to this, and the reason is that it really does incentivize the type of competition between insurers that's been missing and that will very clearly -- you ask any health care economist about this, we're down to the benefit of health care consumers -- that is, the American public -- who face a pretty disorted insurance market right now.

PHILLIPS: And as you can imagine, we're getting a lot of questions about health care, the economy and also Cash for Clunkers today. It seems to be the three things on everybody's minds, so...

BERNSTEIN: Those are great topics.

PHILLIPS: ... bear with me, Jared. OK, this one's coming from Alonzo: "I want to know if the American people will have to pay for the care of 12 million to 20 million illegal immigrants in this health bill?"

BERNSTEIN: There are different provisions -- you know, this health bill right now is actually a number of health bills. There are different provisions, as -- refer to undocumented folks. When we hear numbers like the most comprehensive plans cover something like 97 percent of the uninsured, in many cases, that difference, that 3 percent, is because some undocumented folks would not be covered. But we've got numerous plans on the table, and they don't all handle it the same.

PHILLIPS: Got it. And this one finally from Sasha2000. This comes via Twitter: "When will we see specific growth in green jobs in this economy?" That's something I know you have been all over.

BERNSTEIN: All over. The middle-class task force under the vice president, we've had a couple of meetings, public meetings, about green jobs, because we think they're so important. By the way, in the spirit that the president was just mentioning in his talk, about laying the foundation, the groundwork, for strong, good-quality jobs that can't be exported in this country, I think that's a good definition of green jobs.

Now, the Recovery Act has $500 million set aside for training, for weatherization, we have extensive programs for retrofitting. And so we're all over this in terms of incentivizing the creation of green jobs. Not unlike Cash for Clunkers, you solve two problems, job growth and helping to build a cleaner environment for the future.

PHILLIPS: Jared Bernstein, thanks. Appreciate it. Always glad that you can take e-mails and Twitter from us. I appreciate it.

BERNSTEIN: My pleasure. PHILLIPS: Well, trade in the clunker, cash in from Washington. It's an offer that thousands of us could not refuse. And that's how the billion-dollar Cash for Clunker program came close to running dry in its first week. And we're just hearing now that the House has passed a $2 billion extension. The Senate will likely do the same.

In the meantime, what do prospective clunker traders need to know? CNN personal finance editor Gerri Willis can tell us. We also want to hear from Earl Stewart. He's a Toyota dealer in Florida who sold a lot of cars this past week in hopes that that trend will continue.

Earl, let's go ahead and start with you. I know your concern was, you didn't want to give your clients these cars because you didn't know if you were going to get your government funds. But I think as you heard right there, Jared Bernstein at the White House, economic adviser to the vice president, said, no, we are going to honor all the transactions. Does that make you feel better at this point?

EARL STEWART, OWNER, EARL STEWART TOYOTA: It makes me feel a whole lot better, and it makes a lot of customers feel a whole lot better, not to mention my employees. We were real nervous last night after the cancellation of the program with just five hours' notice. It was panicsville. We were really, really concerned. And a lot of customers were calling.

And we feel a whole lot better now. I really hope this passes the Senate, and another $2 billion will be a fantastic stimulus to this economy.

PHILLIPS: And let's put it in perspective because you had, what, 48 deals on the table. So, that's $4,500 per car that you were going to wait for. And then 48 people waiting to get their new car from you, correct?

STEWART: That's correct. We're up to 61 now. The showroom's packed, overflowing. We're having a better month than we had in the entire year. As a matter of fact, this June -- or I should say July, thanks to Cash for Clunkers, it's been the first time we've exceeded 2008. So, July of 2009 is actually a better sales month than 2008.

We're just extremely happy. And every car dealer I talked to feels the same way.

PHILLIPS: So, let me ask you, then, for you, because we've been talking so much about car dealerships going under and major car industries going under as well. You have a program like this. When you heard about it, and you started to partake in it, was this sort of a saving grace for you, kind of looking back, you know, oh, great, something here that's going to save me at a time that I might lose my business?

STEWART: I was very hopeful when they announced the program, but, frankly, I was a bit skeptical. It exceeded my expectations, and I believe everybody's expectations, to see how many clunkers were out there, especially clunkers that were being driven by people with good credit.

Normally, you have to get credit approval, and in today's economic climate, it's not easy to get done. But we're seeing an awful lot of people driving older cars that have excellent credit and can afford and can get financed to buy a new one.

PHILLIPS: So, what are you going to do with the clunkers?

STEWART: Well, they've got to be scrapped. We have -- we're getting bids from five different salvage yards. We take the high bid, and we pass the extra credit for what we get for salvage along to the customer off the price of the car, along with the government $3,500 or $4,500 credit.

PHILLIPS: Earl, stay with me. I want to bring in Gerri Willis now. Gerri, just now we found out that it passed the House. You're hearing Earl's story. He was pretty nervous about those 61 deals now. He didn't know he was going to get his money and if indeed the clients were going to be able to get their new car. You know, what should prospective clunker traders consider now, you know...

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right.

PHILLIPS: ... the fact that we heard, oh, it's out of money, and now apparently it's going to be OK. What are your thoughts?

WILLIS: Well, you know, to start with, the money's been doubled. The original program was $1 billion, now it's $2 billion. If you want to take advantage with this, here's what you need to keep in mind.

First of all, don't sign one of these waivers that some dealerships out there are using that forces you to pay the voucher if the deal does not go through. And then have the dealership wait if they can't destroy your old vehicle until they're absolutely sure they're getting the voucher money. You don't want to be stuck without a car.

And, remember, you're going to want to act quickly. You know, Kyra, one expert we talked to at "Consumer Reports" says it's entirely possible that Congress could tighten the requirements on mileage in the future to get even better results out of the program. The demand has been so big, they could ratchet down the people who are eligible for it and still do very well indeed.

And one big thing here, and I don't know how happy Earl will be to hear this, but don't forget to negotiate the deal. Yes, you're getting help from the federal government, but that's OK. You should get the best price possible. Check out Web sites like edmunds.com, consumerreports.org for strategies on negotiating.

And if I could ask Earl one more question. I'm really curious about his business. Earl, tell us if you would, how much more demand do you think there is out there? Was it a one-month thing? Could it be six months of huge sales for people like you?

STEWART: I think at least six months. There's a whole lot of people that still don't understand the program, and believe it or not, people that don't know about the program. Every day I'm talking to people that are not aware. So, I think this thing could easily run another six months.

By the way, I agree with all your suggestions to the buyers. And we have one other suggestion. The dealers are forced to offer an estimate of the salvage value. I suggest to the buyers out there, go beyond an estimate. Find out what they sell that salvage car for. Because I hear an average of $75. We're getting $250 to $800 in salvage value.

PHILLIPS: Wow.

STEWART: And I can see even more. So, be sure you know exactly what the salvage value. That should be taken off the price of the car.

PHILLIPS: That's good advice. Earl Stewart, Gerri Willis, all right, guys, that was news you can use. I appreciate you both. Thanks so much.

WILLIS: My pleasure.

STEWART: Thank you.

PHILLIPS: OK. More from the CNN NEWSROOM straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: While space shuttle astronauts celebrate a mission accomplished, a laid-off NASA employee is on a personal mission. It's on a stretch of road outside Kennedy Space Center. Every day this week, Michael Marks, a graphic artist and media developer, has set up a roadside stand offering free coffee and resumes. And while his approach to getting a job may be a little, well, let's say, out of this world, well, Michael Marks is today's "30-Second Pitch," and he joins us via broadband from his roadside stand in Merritt Island, Florida.

Good to see you. We've got a little bit of a delay because of the broadband connection there, and...

MICHAEL MARKS, JOB SEEKER, FORMER NASA ASTRONAUT: Thank you. And how you doing?

PHILLIPS: OK. We've got a very long delay there. Good, Michael. Tell me how you came up with this idea. Why are you doing this?

MARKS: You know something, it's like anything else. You've got to think out of the box. And this is kind of my way of just thinking out of the box. I was kind of bored with just going to companies, posting my resume over and over and over like thousands of other people right now. And I was kind of over it. So, I might as well think out of the box and, you know, get right out there directly with people. PHILLIPS: Well, you are definitely thinking right out of the box. And you do incredible work. Just taking a look at some of the full screens here. You're an amazing graphic artist. So, why don't you go ahead. Put your thoughts together as we're looking at some of your amazing pieces of work here. Go ahead and start your 30-second pitch when you are ready, Michael.

MARKS: Thank you. Thank you.

My 30-second pitch, well, you know something, Billy Mays was a great pitchman. Michael Marks, he's coming to be your next pitchman. Either from OxyClean, tree hugger, anything, you name it, Michael Marks is there. I'm definitely a good media personality. I'm (AUDIO GAP) as you see, if you go on ahead and go to my Web site, www.michaelmarks.net. And just kind of check my site out. Forgive me for a little bit of nervousness here being on camera. But definitely go there and check out what I have to offer.

PHILLIPS: Short and sweet. I love it. We apologize. We have a horrible signal for you via broadband there, Michael. So, I'm just going to bring your work up one more time, your e-mail, michael@michaelmarks.net. If you see him out there outside of NASA passing out the coffee and doughnuts, take his resume. Get this man a job. Michael, thanks.

Straight ahead, OK. Do you remember this?

(BEGIN VIDEO CLIP)

BEN KONOP, TOLEDO MAYORAL CANDIDATE: We're here today at Parkwood Avenue for...

MAXWELL AUSTIN, LANDSCAPE ARCHITECT: Boo!

KONOP: We have a situation in Toledo where there's...

AUSTIN: Boo! Boo! Bad!

(END VIDEO CLIP)

PHILLIPS: You wouldn't believe how many clicks this has gotten on YouTube. The mayoral wannabe and his heckler. These guys could really use a beer. Well, guess what?

(COMMERCIAL BREAK)

PHILLIPS: Pushing forward to our next hour, a face that you'll never forget. He told his teachers he was abused. His teachers told Child Welfare. But no one came to his rescue. Why did everyone fail little Devon Bailey (ph)?

Plus, wounded veterans struggling to recover their loved ones, struggling to help, giving up their jobs, their insurance, their homes. But is there hope on the horizon?

Follow-up time on one of our favorite "What the...?"s. Dateline Toledo, Ohio. A mayoral candidate can't get a word in edgewise because some dude just kept booing him.

(BEGIN VIDEO CLIP -- "THE PRINCESS BRIDE")

UNIDENTIFIED FEMALE: Boo, rubbish, filth, slime, muck, boo, boo, boo.

(END VIDEO CLIP)

PHILLIPS: OK, so it wasn't that bad, but you get the idea. We showed you the boofest earlier this week. It's been a big YouTube hit. Well, now, we've learned that Toledo's candidate and his heckler drank up and made up. Yes, beer summit number two, boos turned to buds. Here's Tony Geftos with affiliate WTVG.

(BEGIN VIDEOTAPE)

TONY GEFTOS, WTVG-TV CORRESPONDENT (voice-over): This video is nothing short of a viral Internet sensation.

KONOP: Well, we're here today at Parkwood Avenue...

AUSTIN: Boo (INAUDIBLE), boo.

GEFTOS: Trying to hold a news conference is 33-year-old Toledo mayoral candidate Ben Konop.

KONOP: We have a situation in Toledo where there's...

AUSTIN: Boo, boo, boo, Ben.

GEFTOS: The man booing, 31-year-old Maxwell Austin, a landscape architect. Austin is on his front porch.

KONOP: Well, we're here again...

AUSTIN: Boo, boo, liar, boo.

GEFTOS: The video shot by 13 ABC photographer Chris Jurowski (ph) is grabbing headlines on CNN, MSN, even Comedy Central. It happened one month ago. But in light of the president's beer summit, 13 ABC thought we should bring Ben and the booer together for a brew.

KONOP: How's it going?

AUSTIN: Ben?

KONOP: Good to see you.

AUSTIN: Good to see you. How are you, man?

KONOP: (INAUDIBLE).

AUSTIN: I know. Maxwell.

KONOP: Nice to finally meet you. I feel like a bond, though, you know what I mean? AUSTIN: A little bit, yes.

KONOP: I feel a little bit of a bond.

AUSTIN: Yes. Yes.

KONOP: Here you go.

AUSTIN: We've had something. Thank you very much.

KONOP: A peace offering.

AUSTIN: All right.

KONOP: All right.

GEFTOS: Turns out, both of them can look back and laugh.

KONOP: Yes, it's kind of funny. I mean, I've got to give you credit. It was...

We're on Parkwood for a very serious issue.

AUSTIN: Boo, liar, Ben Konop, boo.

GEFTOS: Austin says he mispronounced Konop's last name on purpose. He also says before the cameras were rolling, someone with Konop's campaign trampled his flower bed. And that's what initially set him off.

AUSTIN: No apology, no "I'm sorry" or "my bad" or "oops."

GEFTOS: So, tonight, the two Toledoans talked it out, shared their views on the city and found some common ground. The only "boos" was the beer.

KONOP: I think, you know, it was a very productive evening for me at least. I hope it wasn't too bad for you.

AUSTIN: Nope, not at all.

KONOP: No? All right.

AUSTIN: Because I got a free beer out of it.

KONOP: Got a free beer, if nothing else, Budweiser. Cheers.

(END VIDEOTAPE)

PHILLIPS: Now we're eager to see if he wins the mayoral campaign.

Well, beer, the new olive branch. Maybe the Trojans and Greeks should have gone to the bar before that whole horse incident.

And you've got to think that their story was the inspiration. The professor and the policeman who arrested him have beers on the president's tab. A drink and a think at the White House.

(COMMERCIAL BREAK)

PHILLIPS: Well, I doubt anyone had a love hangover this morning, but by all accounts, last night's White House get-together went pretty darn well. Senior political correspondent Candy Crowley has more on the beer gaggle.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): On a humid summer night beneath the magnolia tree just off the Rose Garden, the vice president, the president, the black professor and the white policeman who arrested him had a beer together.

SGT. JAMES CROWLEY, CAMBRIDGE POLICE DEPARTMENT: There was no tension.

QUESTION: No tension?

J. CROWLEY: No tension.

C. CROWLEY: Apparently, it did go well. The president called it a friendly, thoughtful conversation. And you'll never guess what. Sergeant James Crowley says he and Professor Henry Louis Gates are planning their next meeting.

J. CROWLEY: I would like, not only to discuss, but I also like to listen to Professor Gates's perspective and, certainly, he has the credentials to enlighten me a little bit. And I think that perhaps the professor, as he expressed to me, has a willingness to listen to what my perspective is as a police officer.

C. CROWLEY: Ditto from Professor Gates, who wrote on his Web site that he and Crowley need "to foster greater sympathy for the daily perils of policing for the genuine fears of racial profiling."

Heads of state have come away from the White House with a lot less, but do not call this a beer summit.

OBAMA: This is three folks having a drink at the end of the day and hopefully giving people an opportunity to listen to each other. And that's really all it is.

C. CROWLEY: Not exactly all. It is also the president's attempt to get out from under headlines he helped write. It was a rather routine cop call on a possible break-in at a home in Cambridge, it turned into a national Rorschach test on racial profiling and relations between police and minority communities. The story was elevated and propelled by five words at the presidential news conference.

OBAMA: The Cambridge police acted stupidly.

C. CROWLEY: It fueled the fire and knocked the president's health care message off the front pages. The president had to explain, re-explain, call Sergeant Crowley to personally explain, and then invited both Crowley and Gates to the White House. Now, the professor and the cop are working out details of their next meeting.

J. CROWLEY: I think, meeting at a bar for beer on a second occasion is going to send out the wrong message, so maybe a Kool-Aid or iced tea or something like that.

C. CROWLEY: The president is dying to get back to his agenda and put Cambridge on the back page.

OBAMA: I will be surprised if you guys all make this the lead as opposed to a very important meeting that we just had with one of our most important partners in the world.

C. CROWLEY: Maybe tomorrow.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)