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Obama Administration's Effort to Repeal 'Don't Ask, Don't Tell'; Sharp Drop Expected in Toyota's Sales

Aired February 02, 2010 - 12:00   ET

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

BETTY NGUYEN, CNN ANCHOR: Time now for your top-of-the-hour reset. Hello, everybody, I'm Betty Nguyen, in the CNN NEWSROOM.

It is noon on Capitol Hill, where Defense Secretary Robert Gates is set to announce a review that could end Don't Ask, Don't Tell.

Across the nation, Toyota dealers brace for the big fix. Millions of recalled cars about to roll in for pedal repairs.

And in Haiti, parents who say they gave their children away to Americans so that the kids would have a better life.

Let's get you started.

It is battle time in Congress over gays in the military. The administration's effort to repeal the Don't Ask, Don't Tell policy begins this hour, with President Obama's defense secretary taking the first steps.

Let's take you live now to Pentagon Correspondent Barbara Starr. She joins us.

And the question, Barbara, is what is the secretary expected to say today?

Are we going to hear any specifics?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: We do expect to hear some specifics, Betty. Let me explain to everybody what is going on right now inside that Senate hearing room.

The secretary has actually been in the witness chair for about three hours talking about the annual defense budget, $700 billion in spending. But at the stroke of noon -- and we're just about there, of course -- the topic is expected to shift to "Don't Ask, Don't Tell," what the Pentagon will do to try and implement President Obama's proposal to repeal the law. Of course, it's up to Congress to repeal the law.

Gates has to convince Congress to do that, and the support right now is not overwhelming on Capitol Hill to repeal the law. He also has to convince his own troops that it's a good idea.

So, what he is going to do is say he's appointing some experts to study it for the next year, to look in to all this one more time. What's the impact of having openly gay people serve in the U.S. military. Is it really a problem? There's a wide range of opinions. Gates says he wants to get some honest answers over the next year, and then come back to Congress -- Betty.

NGUYEN: Yes. It looks like they're taking a little bit of a break. We're going to follow this and bring you some of his remarks live.

But in the meantime, let me ask you this -- are you hearing any pushback at all from the military when it comes to this talk of repealing Don't Ask, Don't Tell?

STARR: Well, you know, I think Gates is going to address that, in fact, because he's going to say that he wants to look in to all of the issues. Are there issues with housing, with working and living in close quarters? Are the regulations enough to govern any problems someone might have?

A lot of people say that, you know, the existing regulations governing any sort of public behavior apply to everybody, whether they're heterosexual, homosexual or whatever. You know? That the regulations govern your personal behavior and this shouldn't be a problem. But Gates knows there are still many people who are very sensitive to this issue, and he's got to present a case, a very thorough, comprehensive case, that he's looked at housing, that he's looked at the workplace, that he's looked at all of the regulations and the law, and that the Congress can move ahead on trying to repeal this -- Betty.

NGUYEN: Yes, there's a lot on the table here. And I've just learned that they're taking a little five-minute recess. And when they resume, they will be discussing "Don't Ask, Don't Tell," and, of course, when that happens, we will bring it you to live.

In the meantime, Barbara Starr, thank you so much for that insight.

And we want to let our viewers know that we indeed do have firsthand accounts from active troops on what it's like to be gay in the military. That's coming up in about 10 minutes, right here in the CNN NEWSROOM.

In the meantime, let's also do this, check on some of the other big stories.

President Obama arrives in New Hampshire this hour pitching his plan to help small businesses. He wants to funnel $30 billion to local banks so that they can lend to small companies. Now, the financing would come from bailout money paid back by large banks. The president says jobs are his main focus in 2010, and small businesses generate most of the new jobs.

Well, the president's plan for small businesses set off a heated debate during a hearing on his $3.8 trillion budget. White House Budget Director Peter Orszag stepped into the line of fire at a Senate hearing committee. Orszag clashed with Republican Senator Judd Gregg over the plan to use bailout repayments to help small businesses.

(BEGIN VIDEO CLIP)

PETER ORSZAG, WHITE HOUSE BUDGET DIRECTOR: One of the lingering problems in our financial markets, however, is access to credit for small businesses. It's why in this budget...

SEN. JUDD GREGG (R), NEW HAMPSHIRE: No, no. You can't make that kind of statement with any legitimacy.

ORSZAG: OK.

GREGG: You cannot make this statement. This is the law.

ORSZAG: Small businesses are not suffering...

(CROSSTALK)

ORSZAG: Let me tell you what the law says. Let me read it to you again, because you don't appear to understand the law. The law is very clear.

The moneys recouped from the TARP shall be paid into the general fund of the Treasury for the reduction of the public debt. It's not for a piggybank because you're concerned about lending to small businesses.

(CROSSTALK)

ORSZAG: And you want to get a political event when you go out and make a speech in Nashua, New Hampshire. That's not what this money is for.

This money is to reduce the debt of our children, that we're passing on to our children. And you ought to at least have the integrity to be forthright about it and say that's what you're doing. You're adding to the debt that our kids are going to have to pay back, when you're claiming at the same time that you're being fiscally responsible.

(END VIDEO CLIP)

HARLOW: Told you it was heated.

Well, the secretary of the Treasury, Timothy Geithner, also on Capitol Hill, pushing the president's budget. Geithner told the Senate Finance Committee the nation's economy is stronger than it was a year ago, but he says the government still has to take action to stimulate job growth. Geithner says the president is trying to balance job creation and reining in the budget deficit.

So, did Toyota's sales tank last month? Well, today, we'll get a clue about how the company's massive recall is affecting its business.

CNNMoney.com's Poppy Harlow joins me live now from New York.

Poppy, how bad could these numbers actually be?

POPPY HARLOW, CNNMONEY.COM: Pretty bad, Betty. We're going to get the Toyota January sales numbers in just a few hours here, and what's expected by auto analysts is that their market share is going to fall pretty significantly. Expected to fall to about 14.7 percent of the U.S. market.

Compare that to where they were a year ago in January, when they had 17 percent of the market. When you look at the numbers, it's pretty drastic, the decline that this recall will have had on Toyota's January sales.

To give you some perspective here, Ford, just minutes ago, came out with their January sales. They were up 24 percent, and they're saying their market share is just about 16 percent. So, you see the competitors gaining ground where Toyota is hurting because of this recall.

The projection is that they're going to have the lowest market share, Toyota will, since March of 2006 in this country. Why? A big reason is because of this recall.

What they have done is they have stopped producing all of their recalled models. That, of course, includes the very popular Toyota Camry. That's really hitting them. And also, there's this public perception problem that we have been talking for days now.

So, we went out to the streets of New York, talked to folks, and asked them, have you heard of the recall, what do you make of it? Here's what they said.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Well, it's going to be a lot of cars, and people, probably, are not going to have the respect for Toyota as they once maybe perhaps had.

UNIDENTIFIED FEMALE: My parents have decided they will not be getting another Toyota. Ever.

UNIDENTIFIED MALE: Toyota always seemed like a brand that you could trust. It almost makes me feel like it's an American car. And that's, you know, the way things used to be. The Japanese cars were always cleaner, better, easier to run.

UNIDENTIFIED FEMALE: Things happen. They'll fix it. They'll be fine.

Things have happened in the automotive business like this all the time. And they'll fix it. I'm sure they'll rectify it. It's a great company.

(END VIDEO CLIP)

HARLOW: All right. So, a mix of feelings there, Betty, but Toyota is hoping that most people agree with the last guy you heard from. But you also heard the woman in there who said that her parents will never buy a Toyota again. That's a problem this company is facing.

NGUYEN: All right, Poppy. Let's just do a rewind for a second. OK?

HARLOW: Sure.

NGUYEN: Take us back to how all this started, because it seems like we just heard about this in the last two weeks.

HARLOW: You're right. Let's pull up a timeline here. We'll show you what's going on.

Toyota, actually, Betty, first heard about this recall back in October, so they first heard about the problem in October. They took about the next 90 days to assess the issue.

They said, come up with a solution. That was key. They didn't talk about it publicly then.

January 21st, two weeks ago, that's when we, the public, heard about this, millions of Toyotas recalled in the U.S. alone, many more globally. And it's been exactly two weeks since then.

And it was just yesterday that the head of Toyota U.S. came out on national television and announced the fix that they have. And then it's at the end of this week that consumers are going to start to finding out when they can bring in their cars.

So, a long timeline here, but let's look back 10 years, because over the last 10 years, not just Toyota cars, but other cars have been part of the problem of this unintended acceleration with the gas pedal. That's what we're looking at here. And for Toyota alone, what some analysts have said is that they can link 19 deaths to unintended acceleration in Toyotas.

Now, we talked to one of the Toyota PR reps this morning, and he said he couldn't confirm that number, but he did say they are deeply, deeply sorry -- and I'll quote here -- "... for any concerns the recalls have cost" their customers.

But what we can clearly see is Toyota has known about this issue since October. And also, this really goes back years and years and years.

There's a lot more details on CNNMoney.com and Fortune.com. A good story here, "Where Toyota Went Wrong." You can get many more details there.

We'll keep updating you as we hear more from the company -- Betty.

NGUYEN: All right. Poppy, as always, thank you.

HARLOW: You got it. NGUYEN: OK. So we're also hearing from Toyota owners on what they feel about this entire situation, and some viewers are sending in their iReports.

Aviator Guy says this: "I support Toyota for making the courageous move to ensure the safety of their customers! My wife and I currently own two Toyotas and we totally support how they are approaching this defect."

"We think it says a lot about a major corporation when they go above and beyond to ensure our safety. They didn't ignore or downplay the problem and they will solve it."

And then you have this from Larry, of Milford, Michigan. He says, "I think the Toyota recall is not enough! What about the innocent people out there on the road with these possibly runaway Toyotas or pedestrians on the streets? The government should have issued a 'stop drive' order for the suspect vehicles until the dealer can tow the vehicle to the shop and replace the poorly engineered accelerator assembly."

So, you've got two very different sides of this. Still want to know what you think about it. You can share your thoughts with us right here at CNN. All you have to do is go to iReport.com.

Well, as Americans continue to be held in Haiti on charges that they were attempting to traffic in children, some of the parents of those children are speaking out.

(COMMERCIAL BREAK)

NGUYEN: They're willing to put their lives on the line for their country, and now they may be putting their careers on the line for their cause.

Three U.S. service members talked to our Ted Rowlands about being gay in the military.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT: Three active members of the U.S. military, all gay, all possibly risking their careers talking to us. That's why we're not showing their faces.

An Army sergeant with 10 years of service who's done a tour in Iraq, a female Army MP who's been in for five years and has also been to Iraq, and a Navy sailor who joined a year and a half ago, they all argue that despite what's going on in the world, ,including two wars, now is the time to change "Don't Ask, Don't Tell."

And listen to what they say about living a lie.

UNIDENTIFIED MALE: I am terrified that somebody in my chain of command is going to find out. There's always that pressure.

UNIDENTIFIED MALE: I agree. It is a near constant thing because you're almost always putting up some sort of a front. Like that band of brothers that everybody talks about, I'm kind of that brother with the secret. And yes, it does wear on you.

ROWLANDS: Why did you do this interview?

UNIDENTIFIED MALE: (INAUDIBLE) institution doesn't mean you can't tell when it's broken. We're just giving voices. You know, some screwed up here.

UNIDENTIFIED FEMALE: I truly think it is the best thing for the military, all the services, and the best thing for this country, for this law to be repealed.

ROWLANDS: Why now? Why do we need to deal with this now?

UNIDENTIFIED FEMALE: It is a problem now. I think that our deployed soldiers deserve to have their full rights.

UNIDENTIFIED MALE: Gays, lesbians, bisexuals, transgenders are in the military now. People know about it, and the people who are against it, who don't want to take a shower with us, that stuff already happens. It's not going to change.

ROWLANDS: And do you find that people through the process of elimination figure you are gay?

UNIDENTIFIED FEMALE: I've been aware of people who knew that I was gay. I never really felt like I was threatened. I never felt like I had to keep watching over my shoulder for, you know, the witch hunters to come after me with their torches and pitchforks.

UNIDENTIFIED MALE: I would say everybody in my group where I work, they all know that I am gay. If, you know, I can be open with them, I would be able to trust them more and they would know that they could trust me because I trust them with something so you know important.

ROWLANDS: Would you all come out right away if Don't Ask, Don't Tell was lifted?

UNIDENTIFIED MILITARY SERVICE MEMBER: I wouldn't go up to everybody saying, "Hey, I'm gay," but, you know, the people that were important, clearly important to me, they will know.

UNIDENTIFIED MALE: I'm not going to hang a rainbow flag in my office, but I'm definitely have a coming-out party.

ROWLANDS: All three say they're pleased and surprised that the president mentioned repealing Don't Ask, Don't Tell in his State of the Union Address. They're hoping that actually leads to a change so they can stop living a lie.

Ted Rowlands, CNN, Los Angeles.

(END VIDEOTAPE) NGUYEN: Well, senators unite to cut off funding for the trials of alleged 9/11 conspirators in civilian court. The lawmakers want to the terror suspects to face a military commission instead.

Here's Republican Senator John McCain as he and others introduced the bipartisan legislation last hour.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: We should not try these people in New York. We shouldn't try them in Illinois. We shouldn't try them in Phoenix.

We should try them in the courtroom in Guantanamo Bay, and we should try them according to the Military Commissions Act. That's the thrust and the intent of this legislation.

(END VIDEO CLIP)

NGUYEN: In other news, 10 American missionaries accused of child trafficking in Haiti could soon learn their fate. They're scheduled to appear in court today, and it turns out many of the children the missionaries were trying to take out of the country were not orphans. They had been handed over to the Americans by parents who wanted better lives for their children.

Our Karl Penhaul has the heartbreaking stories of some of those parents.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT (voice-over): Family photos taken before a desperate father gave away his baby daughters. Lelly Laurentas says he handed over 4-year-old Saraia (ph) and 5-year- old Layla (ph) to a group of American Baptists last week.

The Americans are now in a Haitian jail, accused of trafficking 33 Haitian babies and children. Laurentus, whose story is echoed by other parents in this village, says he was too poor to care for his kids after the quake. He hoped the Americans would offer his girls a brighter future.

"I put them on the bus with the Americans with my own hands. I played with them up until the last minute. Then I kissed them both goodbye and told them, don't forget daddy," he said.

Laurentus, who says he earns a dollar a day fixing computers, shows us around his quake-damaged home. He finds the grubby bear, his little Saraia called Tesean (ph). He packed nothing for his kids. He says the Americans promised to give the children schooling, a safe home in the Dominican Republic, new clothes, and soft toys.

"I was crying because I didn't know when I would see them again, but it's OK if I suffer, but, at their age, Saraia and Layla should not suffer. They can't go hungry," he said. In the grassy square, the villagers say 21 of the 33 children taken from the Americans were from here. They say at least 14 had one or both parents. In a weekend jailhouse interview, the Americans told CNN they believed all the children they attempted to bus into the Dominican Republic were orphans or had been abandoned.

SILSBY: And we believe we have been charged very falsely with trafficking, which, of course, that is the furthest possible extreme.

PENHAUL: In a temporary refuge for the children in Port-au- Prince, 10-year-old Benatin Pullimae (ph) plays alone on a swing, hoping her mom will change her mind and come fetch her.

We find her mother, Atriem Pullimae (ph), in Calebasse, the same mountain village as the other parents. She misses her daughter and cradles her doll. She remembers how Benatin sobbed as she left last Thursday.

"I told her to call me once in a while, just so I know how she's doing, so I would know if she was fine," she says. Benatin's parents scrape by farming vegetables and bananas. They're the poorest of the poor. Pullimae says the only thing she could give Benatin was her love, even if it meant sending her away.

"I told her she should go. And I promised, one day, I would go and see her. After she left I was very sad," she says.

The Haitian government is now investigating what the Americans planned to do with the children who had no passports and no permission to leave and whether they knowingly committed a crime.

Ultimately, it's the authorities who will decide whether this is a case of kidnapping or child trafficking. But what it clearly is, is a story about poverty, a place where parents who say they loved their children believed the best chance to get them a better life is to send them away.

Karl Penhaul, CNN, Calebasse Haiti.

(END VIDEOTAPE)

NGUYEN: Just a heartbreaking story there.

Want to take you now to Washington, because the defense secretary, Robert Gates, is speaking right now on the Pentagon's plan to repeal the Don't Ask, Don't Tell policy.

Let's listen in.

(JOINED IN PROGRESS)

ROBERT GATES, DEFENSE SECRETARY: I fully support the president's decision. The question before us is not whether the military prepares to make this change, but how we must -- how we best prepare for it.

We received our orders from the commander-in-chief, and we are moving out accordingly. However, we can also take this process only so far, as the ultimate decision rests with you, the Congress.

I am mindful of the fact, as are you, that unlike the last time this issue was considered by the Congress more than 15 years ago, our military is engaged in two wars that have put troops and their families under considerable stress and strain. I am mindful as well that attitudes toward homosexuality may have changed considerably, both in society, generally, and in the military over the intervening years.

To ensure that the department is prepared, should the law be changed, and working in close consultation with Admiral Mullen, I have appointed a high-level working group within the department that will immediately begin a review of the issues associated with properly implementing a repeal of the Don't Ask, Don't Tell policy. The mandate of this working group is to thoroughly, objectively and methodically examine all aspects of this question and produce its finding and recommendations in the form of an implementation plan by the end of this calendar year.

A guiding principle of our efforts will be to minimize disruption and polarization within the ranks, with special attention paid -- a special attention paid to those serving on the front lines. I am confident this can be achieved. The working group will examine a number of lines of study, all of which will proceed simultaneously.

First, the working group will reach out to the force to authoritatively understand their views and attitudes about the impact of repeal. I expect that the same sharp divisions that characterize the debate over these issues outside of the military will quickly seek to find their way into this process, particularly as it pertains to what are the true views and attitudes of our troops and their families.

I am determined to carry out this process in a way that establishes objective and reliable information on this question, with minimal influence by the policy or political debate. It is essential that we accomplish this in order to have the best possible analysis and information to guide the policy choices before the department and the Congress.

Second, the working group will undertake a thorough examination of all the changes to the department's regulations and policies that may have to be made. These include potential revisions to policies on benefits, base housing, fraternization and misconduct, separations and discharges, and many others. We will enter the examination with no preconceived views, but a recognition that this will represent a fundamental change in personnel policy, one that will require that we provide our commanders with the guidance and tools necessary to accomplish this transition successfully and with minimum disruption to the department's critical missions.

Third, the working group will examine the potential impacts of a change on the law on military effectiveness, including how a change might affect unit cohesion, recruiting and retention, and other issues crucial to the performance of the force. The working group will develop ways to mitigate and manage any negative impacts. These are, generally speaking, the broad areas we have identified for study under this review. We will, of course, continue to refine and expand these as we get into this process or engage in discussion with the Congress and other sources. In this regard, we expect that the working group will reach out to outside experts with a wide variety of perspectives and experience.

To that end, the department will, as requested by this committee, ask the Rand Corporation to update their study from 1993 on the impact of allowing homosexuals to serve openly in the military. We also have received some helpful suggestions on how this outside review might be expanded to cover a wide swath of issues. This will be a process that will be open to views and recommendations from a wide variety of sources, including, of course, members of Congress.

Mr. Chairman, I expect that our approach may cause some to wonder why it will take the better part of a year to accomplish the task. We've looked at a variety of options, but when you take into account the overriding imperative to get this right and minimize disruption to a force that is actively fighting two wars and working through the stress of almost a decade of combat, then it is clear to us we must proceed in a manner that allows for the thorough examination of all issues.

An important part of this process is to engage our men and women in uniform and their families over this period, since, after all, they will ultimately determine whether or not we make this transition successfully.

To ensure that this process is able to accomplish its important mission, Chairman Mullen and I have determined that we need to appoint the highest-level officials to carry it out. Accordingly, I am naming the Department of Defense general counsel, Jay Johnson, and General Carter Ham, commander of U.S. Army Europe, to serve as the co-chairs of this effort. Simultaneous, with launching this process, I have also directed the department to quickly review the regulations used to implement the current Don't Ask, Don't Tell law, and within 45 days, present to me recommended changes to those regulations that within existing law will enforce this policy in a fairer manner.

You may recall that I asked the department's general counsel to conduct a preliminary review of this matter last year. Based on that preliminary review, we believe that we have a degree of latitude within the existing law to change our internal procedures in a manner that is more appropriate and fair to our men and women in uniform. We will now conduct a final detailed assessment of this proposal before proceeding.

Mr. Chairman, Senator McCain, members of the committee, the Department of Defense understands that this is a very difficult, and in the minds of some, controversial policy question. I am determined that we, in the department, carry out this process professionally, thoroughly, dispassionately, and in a manner that is responsive to the direction of the president and to the needs of the Congress as you debate and consider this matter. However, on behalf of the men and women in uniform, and their families, I also ask you to work with us to insofar as possible, keep them out of the political dimension of this issue. I am not asking for you not to do your jobs fully and with vigor, but, rather, that as this debate unfolds, you keep the impact it will have on our forces firmly in mind.

Thank you for this opportunity to lay out our thinking on this important policy question. We look forward to working with the Congress and hearing your ideas on the best way ahead.

SEN. CARL LEVIN (D), MICHIGAN: Thank you.

Admiral Mullen?

ADM. MIKE MULLEN, CHAIRMAN, JOINT CHIEFS OF STAFF: Thank you, Mr. Chairman.

NGUYEN: And you've been listening to Defense Secretary Robert Gates as he outlines how the Pentagon plans to repeal the Don't Ask, Don't Tell policy. He went on to say, you know, the process is going to be open for review, and he acknowledged that he expects there to be sharp divisions over ending it.

We heard a little bit earlier, too, from Senator John McCain, who says, "While the policy may be imperfect, it is effective." So obviously there are going to be some divisions over this.

And, of course, we will continue to watch it for you right here on CNN.

Also going to get you the latest on the weather outside with meteorologist Chad Myers, who is working very hard back there in the Severe Weather Center.

Stay with us.

(COMMERCIAL BREAK)

NGUYEN: Well, it is Groundhog Day. And according to Punxsutawney Phil, six more weeks of winter.

But, Chad Myers, you've been looking at the forecast for the folks down in Florida, what, six more weeks of rain? Hopefully not.

CHAD MEYERS, CNN METEOROLOGIST: You know what, this is an el Nino season and it is classic. We had record rainfalls yesterday across parts of Florida. It's raining a little bit farther north than where it was yesterday.

But here's what happened in Broward and Dade County yesterday. Showers just sat over the area and roads flooded. Six to eight inches of water in the roadways. Nothing that I've heard of deeper than that. But when the rain came down so fast, it just could not run off in time and the water went up. We are going to see another situation today, maybe two to three inches in D.C., of snow. Now, the word "snow" in D.C. puts the fear in everyone's minds, and kids -- I don't know if you did it. I didn't do this when I was a kid. But they all wear their pajamas inside out hoping for a snow day.

NGUYEN: What?

MYERS: I don't know where that came from.

NGUYEN: What is that all about?

MYERS: I don't know. All the kids in my neighborhood, whenever there's a chance of snow in Georgia, they wear their pajamas inside out and that they're rooting on for a snow day for tomorrow.

NGUYEN: Maybe it's a good luck sign or something. I don't know.

MYERS: I guess. I don't know. I don't think it has anything to do with reality, but we'll take it.

NGUYEN: No.

MYERS: Neither does Phil when it comes to Punxsutawney either. But here comes the snow, Washington, D.C., and may even a little bit up to about Petersburg seeing some snow. We could see three to six inches of snow especially west of D.C. and that puts a hurting on the beltway for sure tomorrow. You absolutely need to wake up just a few minutes early to see what's going on up there in D.C. and Baltimore as well.

And Punxsutawney Phil saw his shadow, said six more weeks of winter. Here's the good news. Here's the good news with this, Betty. Punxsutawney Phil is 39 percent accurate.

NGUYEN: Ah, so who needs him, right? Why should we even listen?

MYERS: So if they're 39 percent accurate and he says winter, I'm going 61 percent chance of spring.

NGUYEN: Yes, that's a good bet.

MYERS: How about that?

NGUYEN: But you know, you don't have to bet. You're a meteorologist, right? You know this.

MYERS: I have a coin. I have quarters. That's all I need.

NGUYEN: Fifty-fifty, right. Better shot than Punxsutawney.

MYERS: That's right.

NGUYEN: All right. Thank you, Chad.

MYERS: You got it. NGUYEN: You know, President Obama is headed to New Hampshire to talk about jobs today. And our Josh Levs, as well as our stimulus desk team, they are looking into how one program in that state is doing. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: The president is on his way to New Hampshire, where millions of stimulus dollars went to boost the economy there. Well, Josh Levs is over at the stimulus desk and he's joining us now. Been crunching the numbers.

Are we getting the most for our money in New Hampshire?

JOSH LEVS, CNN CORRESPONDENT: Well, you know, it depends who gets to decide that stuff. But I'll tell you this, we do have some big figures for you.

Let's start off with this. In the latest report from New Hampshire, how many jobs have been created by the stimulus in that state? These figures just came in on the weekend, Betty. And as of December, 2009, you've got basically 1,300. It's 1,295 jobs reported funded by the stimulus.

And as we've been taking a look today in advance of the president's trip on what some of these projects are, we found an interesting one about solar energy. And I can show you the summary here. It costs $223,000 and it's at Dartmouth College. Zero jobs created. Dartmouth sent us some pictures of what they're doing there. So of that, about a quarter million dollars, they're working to advance solar technology. They want to create the new generation of solar technology.

They have a few people working on it. They say they are using the money to pay people, a few faculty, a couple grad students, but they can't say that these people wouldn't be working otherwise. They are saying that they hope that eventually that money will lead to better solar energy projects all over the country, which could lead to jobs.

That got us thinking, in general, about solar energy. Take a look at a figure I found for you here from the Energy Department. How much stimulus money has gone in to these other kinds of energies, solar and geothermal energy? $467 million. Out of that massive pile that passed last year, $862 billion. So, $467 million have gone into solar energy efforts nationwide.

Now, we're talking about New Hampshire. While we're talking about it, though, I want to talk to you specifically about Nashua, New, Hampshire, where the president's going to be today. We have looked into literally every single project that's going on in Nashua, about a dozen of them, and the funding.

And you can go to this computer behind me, because what we have for you here is some information about a specific project that works for the homeless. Let's go to this computer. This is called Harbor Homes. And the website is harborhomes.org. It is for the homeless in Nashua, in that area. It offers medical services. So it's a home that also offers medical services for the homeless in Nashua.

And we can finally show this screen here about how much this one costs. Not all that much compared to some other projects, but it's your call. $1.8 million total we're seeing there. Three full-time jobs created, six part-time jobs created to work with the homeless. And they say there are also these other benefits as well that come out of that because they're helping keep some people off the streets. They're hopefully helping rehabilitate people, get them into the workforce.

So it's just that kind of thing that we see, Betty. It's a really good snapshot there because anyone can look at these projects and say, I think that's a good use of stimulus funding, I don't think it's a good use of stimulus funding. You know, lots of people have different opinion.

NGUYEN: Yes.

LEVS: But we are seeing individual projects like that.

NGUYEN: And it's so subjective because when you look at that solar project and you see no jobs created, you think, wow, well, is the stimulus money really paying off. But, if the project does well, then eventually, hopefully, it will create jobs in the long run. So, you know, it's just a way of balancing it all out.

LEVS: Yes, you got it.

NGUYEN: All right, Josh, thank you so much for that.

LEVS: Thanks, Betty.

NGUYEN: Speaking of your money, we're going to have a check of the markets coming right up.

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NGUYEN: All right. You know there are a lot of questions out there about the housing market. After all, it's where much of the recession started. And today we have a new report that shows where the sector is headed. So let's take you now live to Felicia Taylor at the New York Stock Exchange.

Felicia, recent home sales reports have been pretty bad, so some economists are talking about a double-dip housing recession. Really?

FELICIA TAYLOR, CNN BUSINESS CORRESPONDENT: Well, let's take a look at what we've seen. And actually the future looks pretty bright compared to where we've been in the past couple of weeks, which is where existing and new home sales fell by double digits. But looking forward, we've got pending home sales. That shows where we're going to be headed in the next couple of months because it measures a home sale that's under contract, but not necessarily closed. And it can take up to two months to close on a home. Pending home sales rose 1 percent from November to December.

Now, also thanks to that first-time buyer tax credit we've been talking a lot about, there have been some big monthly swings. You can take a look at, you know, from October to November, when pending sales fell 16 percent. Now the National Association of Realtors chief economist says that truly the underlying trend is toward improvement. So that's very positive. And year over year numbers show pending home sales rose 10 percent in December compared to December of 2008. So, truthfully, things are looking better for the near term looking forward -- Betty.

NGUYEN: All right. So what about the second half of this year when that first-time buyer tax credit runs out?

TAYLOR: Yes, OK. So there's the but -- there's always a but.

NGUYEN: Yes.

TAYLOR: Sales will likely slip when that tax credit expires on April 30th. Also, the Fed's going to stop buying those mortgages securities at the end of March. That will likely boost mortgage rates. They've been very affordable up until now.

The good news is though that the supply of homes on the market is falling down. It's now at a seven-month supply compared to what we've seen more like record highs of 11 months. That helps home prices to stabilize. So the housing market will be in much better standing when the stimulus measure runs out. So it's a little bit on both ends. We've got the tax credit running out, but then again, housing prices are stabilizing compared to what we've seen -- Betty.

NGUYEN: All right, Felicia Taylor. As always, thank you.

TAYLOR: Sure.

NGUYEN: And we have a check of the top stories right after this.

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NGUYEN: The top stories for you right now.

Getting rid of "don't ask, don't tell." Defense Secretary Robert Gates unveils plans to do away with the policy regarding gay and lesbian service members. He's appearing before the Senate Armed Services Committee. President Obama called for the change last week in his State of the Union Address. It would have to be approved by Congress.

A British medical journal is retracting its landmark study linking autism to childhood vaccinations. The Lancet study was first published in 1998 and it said there was a connection between autism and vaccines for measles, mumps and rubella. Well, The Lancet says the study was flawed and it is fully withdrawing it.

(COMMERCIAL BREAK) NGUYEN: OK. So claiming tax credits, cashing in on a valuable gift. Our personal finance editor, Gerri Willis, gathers "The Help Desk" teams for some tips on managing your money.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Time now for "The Help Desk," where we get you answers to your financial questions. Joining me this hour, Greg McBride is the senior financial analyst with bankrate.com, Manisha Thakor is a personal finance author.

All right, guys, let's get to work. Ryan asks, "my wife and I are buying a new home. The closing is the first week of February." Congratulations. "We have owned our current home for 15 years, so we qualify for the $6,500 tax credit. Can we claim our new home on our 2009 taxes?"

Greg, this tax credit, complicated. What should do they?

GREG MCBRIDE, SENIOR FINANCIAL ANALYST, BANKRATE.COM: Yes, they can claim that tax credit on the 2009 taxes. Now, if they've already filed their taxes for 2009 by the time the closing takes place, they can still claim the credit by filing an amended return. You do have to file form 5405. And, keep in mind, you're going to have to show that you actually qualify for the credit. So be sure to include a copy of your settlement statement, as well as proof of that home that they owned, the previous place. So things like, you know, property tax records, mortgage interest statements for at least five of the last eight years.

WILLIS: I don't think a lot of people realize how many people qualify for the credit. It's a benefit to many people, not just people who are buying for the very first time ever.

Anne Marie from Toronto asks, "my daughter was given a U.S. saving bond when she was born. She's now 22 years old and would like to know how she can cash them in."

Manisha, this is something your grandma always gives you, you know.

MANISHA THAKOR, PERSONAL FINANCE AUTHOR: Yes, it's true and God bless grandma for that. So if I understand this question correctly, both the mom and the daughter, right now, are in Canada. Three step process. Go to the U.S. embassy or consulate to get your signature notified. If there's one not legally available, you can use form PD- 1522. And you make copies of all your documents, the savings bond, your address and you're going to mail it in to the Bureau of Public Debt, which is in Parkersburg, West Virginia. And if this is mumbo jumbo, you can simply go to Google and type in U.S. Embassy, Canada, saving bonds. You'll get all the information there. Or go to savingsbonds.gov and you can get information there as well.

WILLIS: Treasury.gov, a great place to go if you want to buy bonds and you're an American.

"The Help Desk" is all about getting you answers. Send me an e- mail to gerri@cnn.com. Or log on to cnn.com/helpdesk to see more of our financial solutions. You can also pick up the latest issue of "Money" magazine on newsstands now.

(COMMERCIAL BREAK)

NGUYEN: Well, the race for Oscar gold heating up in Hollywood now that we know who the official nominees are. They were announced this morning in L.A. So let's get to them. The nominees for best actor, Jeff Bridges for "Crazy Heart," George Clooney for "Up in the Air," Colin Firth for "A Single Man," Jeremy Renner for "The Hurt Locker" and Morgan Freeman for "Invictus." In the best actress category, Sandra Bullock for "The Blind Side," Helen Mirren for "The Last Station," Carey Mulligan for "An Education," Gabourey Sidibe for "Precious," and Meryl Streep for "Julie & Julia."

And Academy Award officials doubled the list for best picture this year. The nominees are James Cameron's sci-fi epic "Avatar." His ex-wife, Kathryn Bigelow's, gripping bomb defusing drama, "The Hurt Locker." Quentin Tarantino's "Inglourious Basterds." Others on the list including "The Blind Side," sci-fi thriller "District 9." And rounding out the list are "An Education," "A Serious Man," "Precious," "Up" and George Clooney in "Up in the Air." So, may the best picture win.

But we've been asking you today, what do you think about this expanding that best picture category to 10 films? Is that being inclusive or just way too many? Let's go to my FaceBook page, because we are hearing from you today.

And Boo (ph) says, "it's a lot with 10 of them. Why pick five more if they don't even have a chance? We know who's going to win this year, "Avatar.""

Well, I don't know, is that a forgone conclusion?

Let's go to my FaceBook -- or actually my Twitter page now and Newsburns (ph) Kevin G. (ph) says, "as much a fan as I am of "Avatar," I have to say all the momentum is in favor of "The Hurt Locker" for the big Oscars."

Some others say "The Blind Side" and "Up," but most people on here are saying they think "Avatar" is going to take it home.

But, hey, we don't know just yet. Place your bets now. Wait, that's illegal. Don't do that. But at home I'm sure you can pick your favorites as well. And let me know what you think on my FaceBook and Twitter sites.

There's much more to come right here at CNN.

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NGUYEN: Rebuilding Afghanistan's shattered cities. The United States has paid billions of dollars of aid since the war started there, but our Dan Rivers says, in the city of Kabul, there isn't much to show for it.

(BEGIN VIDEOTAPE) DAN RIVERS, CNN CORRESPONDENT (voice-over): A remnant of the lost grandeur of Kabul, the Darul Aman Palace neatly encapsulates the violent history of this city. Built for a reforming king, abandoned by conservatives, shot up by warlords and overlooked by the west. This is a crumbling symbol of everything that's gone wrong here. Like so much here, there is great beauty and potential, but it's suffused with neglect.

As I wander around this shattered city, there is little evidence of the $7 million a day that aid agencies say they're spending here. This is an old Russian cultural center, now home to drug addicts who are regularly rounded up by the police.

The lack of resources is reflected everywhere. New schools, yes. But 75 percent of teachers are still under qualified. The U.S. spent approximately $10 billion on aid in Afghanistan last year, yet many neighborhoods show no sign of improvements.

This man says Hamid Karzai's government just takes money. They don't even collect the garbage over there.

RORY STEWART, AFGHANISTAN ANALYST: This is the central people's national identity. This is their capital. And perhaps 5 million people live here. There's no proper water supply, no sewage, no electricity. The roads are a disgrace. And I think that has a deep and damaging psychological impact on Afghans.

RIVERS: But the new mayor of Kabul says the city is about to change.

MAYOR MOHAMMED YOUNUS NAWANDISH (ph), KABUL, AFGHANISTAN: I have this plan to -- to stop all kind of the corruption and monetary policy of Kabul.

RIVERS: His predecessor was the first conviction under Hamid Karzai's new anti-graft crackdown. But despite a multi-million dollar budget, this office has only just got its first computer.

This vast graveyard shows how far Kabul has regressed. In the 1980s, there were 1,600 buses plying the streets. But now most are bullet-riddled wrecks. Just 400 are still working. Critics say most money for new infrastructure is eaten up by layers of subcontracting.

LAURENT SAILLARD, AGENCY COORDINATING BODY FOR AFGHAN RELIEF: A lot of money is sucked into the system, doesn't reach the ground, doesn't create any weakness (ph) here in the country. Doesn't create employment. Nothing like that. It's a scandal. Complete scandal.

RIVERS (on camera): Afghanistan has been subjected to almost 30 years of near constant war. And the evidence is all around. The amount of rebuilding required here is massive. There has been some progress, but there's also growing anger at the perceived waste of money on many projects. For a lot of people here, tangible improvements to the quality of their life