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Conrad Murray to Turn Himself in; Trade-In Your Toyota?; Tea Party Candidate Gains on Crist in Florida; Will Scott Brown Tow Line for GOP?

Aired February 04, 2010 - 12:01   ET

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

DON LEMON, CNN ANCHOR: You know what? It's time for your "Top of the Hour Reset." And I'm Don Lemon, I'm in today for Tony Harris right here in the CNN NEWSROOM.

It is 12:00 in New Jersey where a Toyota dealership begins the first repairs of recalled cars as the company's problems widen today.

It's 11:00 in Nashville where the fractious groups that make up the tea party movement gather for a convention today.

And it is noon in Boston, where Scott Brown's election to the Senate was certified today. He'll be sworn in five hours from now. So, why don't we get started, shall we?

And we start with Toyota. Toyota's troubles just keep coming. In addition to the massive recall, the company faces new problems with its popular Prius hybrid. The Transportation Department announced just today it has opened an investigation into brake problems on the 2010 Prius. Toyota blames a software problem, but has not issued a recall.

And dealerships around the country are racing to make repairs on millions of Toyotas that were recalled because of sticky gas pedals. The troubles just keep on coming, as we've been saying, for Toyota and also for Toyota owners.

First, it was sticky gas pedals, now it's the brakes on one of its most popular cars. If you've had it with your Toyota, our personal finance editor, Gerri Willis, has some advice for you now.

So, Gerri, what's your advice? What can you do?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Don, look, if you have an affected model, you might be just tempted get rid of the car, and as you said, but you have to weigh whether that really makes sense.

First, a sticking gas pedal is rare. Not all of the gas pedals in the affected models are problematic, because the mechanism is actually supplied by more than one vendor. Look, 65 percent of what Toyota is currently selling is being recalled, but that is a drop in the bucket when you consider all of the Toyota cars out there in the marketplace. Second, there is a fix, according to Toyota. The parts needed to repair the pedals are already being shipped to dealers. Installation training is under way. And of course, the service departments at many of these dealerships will work extended hours to complete the recalls as quickly as possible, some staying open 24 hours a day.

Now I know that's cold comfort, but the fix is coming. If you're still adamant about getting rid of your affected Toyota, realize that your resale value now is down about 10 percent on this news alone -- Don.

LEMON: Ooh. OK, then. You know all of those incentive...

WILLIS: Yes.

LEMON: Those incentive offers to trade in your Toyota, what about that? Are they worth it?

WILLIS: Well, they're coming in the mail right now. Ford, GM, Hyundai, offering trade-in incentives to current owners of Toyota vehicles. Ford offering 1,000 bucks to owners of Toyotas that are 1995 or newer. GM offering drivers up to $1,000 in lease payments if they end their Toyota lease and switch to a GM vehicle. Even Hyundai is also out there offering 1,000 bucks to customers who trade in their Toyotas.

In reality, though, Don, these are probably not worth it, according to the experts we've talked to. These dealers claim that they'll give you the fair price of the trade-in plus $1,000, but look what often happens in these situations is that the fair price is actually lowered by the amount they're giving you.

Trading in any car is tough, and it's very easy to be drawn into a cycle of negotiation. Bottom line, don't get caught up in the hype, make sure you get as many numbers and estimates if you can, if you're dedicated to selling this vehicle.

And don't make the process too confusing. Just work on one thing at a time. Eventually this is going to blow over, hopefully you'll get the repair done and get it done quickly. I know people are frustrated out there.

LEMON: This is what people have been asking me when -- you know, when I bump into them, they'll say, you know, they have an older Toyota, maybe it's not part of it, maybe it is. So then how do you sell given all of this recall news?

WILLIS: It makes things really tricky, doesn't it, Don? Look, if you want to sell that older Toyota model, it's not part of the recall, here's what you do. Make sure you print out the display, the year, make and model of the cars that are being recalled. Make sure your car is identified as not part of the recall.

Get records of all your service charges so that you can present the evidence that your car is in fine shape. And keep in mind that the older your Toyota is, the more removed it is from what's going on now. It may be worth your while to wait and see how this all plays out, and not put your car on the market just this minute.

And coming up this week on "YOUR BOTTOM LINE," we'll have more on this massive recall from Toyota, plus making a smooth transition into a new job. How to change careers without bungling the opportunity. That's "YOUR BOTTOM LINE," Saturday 9:30 a.m. Eastern right here on CNN.

LEMON: I'm going to get up early just to watch. Thank you, Gerri. Appreciate it.

WILLIS: Excellent.

LEMON: You know what? It is hard to keep track of all of the recall news about Toyota, so we want to give you a time-line about Toyota's troubles. Last October the automaker issued a recall for 3.8 million vehicles because of floor mats that caused the gas pedals to jam. Well, that recall was expanded in November.

On the 22nd of last month, Toyota recalled 2.3 million vehicles in the U.S. because of a different problem that caused the gas pedal to stick. And then four days later, the company halted production on eight models because of the new gas pedal problem. Altogether, a total of more than 8 million Toyotas have been recalled.

And ahead this hour, we'll hear from experts who say the Toyota recall doesn't go far enough, and from the family of a woman who died in an accident involving Toyota.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She nicked that tree, and the car went airborne, and it was going 80 miles per hour, and hit the tree and the top, and it just went down. She died instantly.

(END VIDEO CLIP)

LEMON: Her story coming up, right here, momentarily, on CNN.

Other big stories that we're following today, claims for first- time unemployment benefits took a big jump last week. The Labor Department says claims shot up by 8,000 for a total of 480,000. First-time applicants have risen now for four of the last five weeks.

And as promised, Democrats are rolling out plans they say will create jobs. It's not a single jobs bill, but rather several targeted measures. For example, renewing highway construction funds, incentives for cities and states to begin building projects, and tax breaks to encourage small businesses to hire and to invest.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MAJORITY LEADER: Our agenda is not about politics or partisanship. We have a jobs agenda. It's about putting people back to work. Our motivation is to help Americans sleep a little better. Our mission is not to stop until every American who wants a job can get a job, and our message is this one, for Senate Democrats, creating jobs is job number one.

(END VIDEO CLIP)

LEMON: President Obama's aunt -- in other news, President Obama's aunt could soon know whether she'll have to go back to Kenya. A federal immigration judge is holding a hearing today. It's happening in Boston. The half sister of the president's father applied for political asylum in the U.S. back in 2002, claiming violence in her homeland, and the request was denied. Two years later and she was ordered to leave the United States. She has lived in the country illegally since then. The White House says President Obama believes the case should run its ordinary course.

James Arthur Ray is going before a judge in Arizona right now. The self-help expert was arrested last night on manslaughter charges. Three people died during one of his sweat lodge ceremonies last year. Ray's lawyer calls it a terrible accident. Bond has been set at $5 million.

Ray's attorney, Brad Brian, is scheduled to be Larry King's guest tonight. It is a prime-time exclusive right here on CNN, "LARRY KING," 9:00 p.m. Eastern, only here on CNN.

The Tea Party Nation is kicking off its first national convention. Hundreds of leaders are now starting to gather at Opryland Hotel in Nashville, Tennessee. The group's Web site says the convention is sold out. But tickets to the banquette featuring Sarah Palin are still available. And a darling of the tea partiers has Florida's governor in a fight for his political life.

Our Jim Acosta has all of it for you.

(BEGIN VIDEOTAPE)

GOV. CHARLIE CRIST (R), FLORIDA: We know that it's important that we pass a stimulus package.

JIM ACOSTA, CNN CORRESPONDENT (voice-over): For Republican Florida Governor Charlie Crist, it's the hug that just won't let go. His embrace of the president and of the stimulus program at this town hall meeting last year could cost this once-rising GOP star a shot at a U.S. Senate seat.

MARCO RUBIO (R), SENATE CANDIDATE: I've been hearing about the tea parties now for a while.

ACOSTA: Meet Marco Rubio. He's challenging Crist for the GOP nomination for that Senate see and a darling of the tea party movement. Rubio has turned the hug into a fund-raising gift that keeps on giving.

(on camera): Would you give President Obama a hug?

RUBIO: Why? Why would I -- depending -- I don't even know, why would I hug someone I don't know?

ACOSTA: Well, Charlie Crist has gotten himself in a lot of trouble for hugging President Obama.

RUBIO: Ultimately, you know, that gets a lot of attention. But what he really got in trouble for was for is supporting a plan that is helping to bankrupt this country.

What I find at events like this is a growing number of Americans who have never been involved in politics before, I bet you that's a lot of you.

ACOSTA (voice-over): Rubio takes his message of smaller government and lower taxes to tea party rallies.

UNIDENTIFIED MALE: This is a great awakening.

UNIDENTIFIED FEMALE: Stop the spending on unnecessary things.

ACOSTA: And his YouTube page features tea party activists venting their anger at Washington. Polls show Rubio has closed 30- point gap and just might win the party primary.

(on camera): Would you be the first tea party senator, if elected?

RUBIO: Well, I'm running as a Republican...

(CROSSTALK)

ACOSTA: ... the word party, it's not a party -- political party.

RUBIO: It's not a political party.

ACOSTA (voice-over): Crist, by contrast, is no tea party animal.

(on camera): Do you ever sit down with any Tea Party activists and talk to them? Have you talked to any of them over the phone?

GOV. CHARLIE CRIST (R), FLORIDA: Not really. No, I haven't. You know, I know that...

ACOSTA: Not once?

CRIST: No, not once. No. Happy to. I probably have and don't know it.

ACOSTA (voice-over): For groups like the Tea Party Express, there's no contest.

JOE WIERZBICKI, TEA PARTY EXPRESS: You want to know why there's anger with the Republican Party? Republicans embracing massive taxing and spending policies? No. That's not what the Republican Party is supposed to be about, and that's what Charlie Crist did.

ACOSTA: Tea Party groups saying millions of Independents, Republicans and even some former Democrats are ready to take down some of the biggest names in politics, from Democratic Senate Majority Leader Harry Reid to Republican John McCain. But Democrats say all that in-fighting between Crist and Rubio actually presents an opportunity.

JAMAL SIMMONS, DEMOCRATIC STRATEGIST: I'll take either of one of them as long as they're wounded and limping into the general election.

ACOSTA: Crist, who has a 50 percent job approval rating, is not backing down from a Tea Party fight. He defends the stimulus as a job saver and notes Rubio has stated he too would have accepted funds from the program.

CRIST: About 20,000 teachers would be out of work today in my state. I can't in good conscience look them in the eye and say, you know, you and your family are going to be without a bread winner. People have to eat.

ACOSTA: He's gambling Conservatives will come around.

Defying conventional wisdom in his own party, Crist met President Obama for another stimulus event last week.

ACOSTA (on camera): Did you get any feedback from your fellow Republicans in this state that maybe you shouldn't be there when the president landed in Tampa?

CRIST: A lot, actually. I...

ACOSTA: They were telling you, don't do it?

CRIST: Yes. Quite a few people -- I got a lot of advice.

ACOSTA (voice-over): They shook hands for 27 seconds.

CRIST: I think people really want -- I think they're honestly sort of tired of the bickering they see coming out of Washington. I think that's part of the change that they want to see. It's part of the reason I'm running for the United States Senate. I think we need more civility.

(END VIDEOTAPE)

LEMON: We also want to know what's on your mind regarding the Tea Party movement, so make sure you leave a comment on our blog at CNN.com/newsroom, or you can go to my Facebook or Twitter pages, @DonLemonCNN on Twitter, and DonLemonCNN on Facebook. We'll pass on what you have to say just a little bit later on this hour.

Getting some very interesting comments. Thank you very much for that.

OK. Listen, this is breaking news that is just in. A lot of breaking news today.

We are hearing some news from the New York attorney General, Andrew Cuomo, and it involves Bank of America and the purchase of Merrill Lynch.

Andrew Cuomo has unveiled a major legal action, we are told, against Bank of America, including bringing charges against former CEO Ken Lewis. The New York attorney general has charged the ex-Bank of America CEO Ken Lewis with fraud in regards to Bank of America's purchase of Merrill Lynch.

Cuomo's office has been aggressively pursuing an investigation into this merger and the subsequent bonuses paid to former Merrill Lynch employees. And I just want to read this quick quote here.

It says that Bank of America, through its top management, engaged in a concerted effort to deceive shareholders and American taxpayers at large. Andrew Cuomo, the New York attorney General, said that in a statement.

We'll continue to update this story on CNN. Stay tuned.

(COMMERCIAL BREAK)

LEMON: Yes, we like to call this our "Random Moment of the Day," but Tiger Woods is probably teed off about our "Random Moment of the Day."

Today, a Canadian company is selling a set of golf balls called The Mistress Collection. Yes, a dozen golf balls, each featuring a woman who allegedly had an affair with Tiger Woods. One of the women known in the porn industry as "Joslyn James," well, she may sue.

(BEGIN VIDEO CLIP)

VERONICA DANIELS, "JOSLYN JAMES": As a victim of violence myself, it bothered me to think that someone would be standing with a dangerous club in their hands and hitting a ball with my face on it.

(END VIDEO CLIP)

LEMON: More mileage from the Tiger Woods' sex scandal. Again, The Mistress Collection, our "Random Moment of the Day."

(COMMERCIAL BREAK)

(WEATHER REPORT)

LEMON: Born in the USA, but now heading to their homeland, two gorgeous giant pandas. Their names, Mei Lan and Tai Shan. They're China-bound today. And our Courtney Robinson of our affiliate WJLA is at the Washington Dulles International Airport for this breaking story.

Hi, Courtney.

COURTNEY ROBINSON, REPORTER, WJLA: Hi, Don.

That's right, we have these two giant pandas en route to Shanghai right now. They are making their way, a 14.5 hour journey to Shanghai, where they of course will then enter a breeding habitat there. It's a bittersweet good-bye for everyone here in Washington.

(BEGIN VIDEOTAPE)

ROBINSON (voice-over): We watched as he grew from cub to giant panda.

UNIDENTIFIED FEMALE: For me, I'd go home after work and turn on the panda cam and see what he was up to, and so I think he's a little part of all of our lives.

ROBINSON: Now 4 years old, Tai Shan is saying good-bye to the U.S., to Washington, and is returning to his native China.

UNIDENTIFIED FEMALE: People are really very emotionally attached to him, and I was surprised by that.

ROBINSON: Early this morning, national zookeepers loaded the nearly 200-pound panda into his crate. He arrived here at Dulles, ready to join Atlanta's 3-year-old daughter, Mei Lan, for their trek to Chengdu, China.

Despite capturing the hearts of Americans, they have really always belonged to the Chinese under an agreement reached in the 1970s, when China gave President and Mrs. Nixon the two first giant pandas.

UNIDENTIFIED FEMALE: It's really sad because he's been here for four years. And I don't know. I hope they get another cool panda like him.

ROBINSON: And the hope now is that both will reproduce and save the dwindling population of the endangered species.

UNIDENTIFIED FEMALE: It's getting down to the wire. And you know what? It's heartfelt. You know, we love him too.

(END VIDEOTAPE)

ROBINSON: And speaking with everybody out here on the tarmac out here at Dulles, they really do love these two pandas. It's a sad thing to see Tai Shan specifically leave Washington, D.C., where it has been his home for four years.

But, of course, Don, his two parents remain at the National Zoo.

LEMON: Everybody has got to go home at one point or another. So we wish them well.

Courtney, thank you. Great job out there. And you are the lucky one. You got to see them in person.

Courtney Robinson from our affiliate WJLA...

ROBINSON: Oh, I know.

LEMON: ... and at Washington Dulles International Airport.

We have a lot to tell you about today, including these top stories now.

More troubles for Toyota. The federal government opening an investigation into brake problems with the Prius hybrid. Toyota has been battered with two major recalls here in the United States. They involve gas pedals that can trapped under floor mats or get stuck on their own.

A spokesman for the Pakistani Taliban says the group's leader is still alive and is in hiding. Authorities have been looking into reports that he died after being wounded last month in an American drone attack. There's been no official word on his fate from either the U.S. or Pakistan.

Michael Jackson's doctors negotiating with prosecutors on plans for him to surrender to charges in the singer's death tomorrow. We're hearing that he's going to show up tomorrow, 1:30 p.m. Pacific Time. That word came from Dr. Murray's attorney. Prosecutors have not yet announced any charges against Dr. Murray.

Another check on this story and others in 20 minutes, here on CNN.

Let's talk about Scott Brown now, set to be sworn in today as the Senate's newest member. His oath means Democrats lose their supermajority. But will Brown necessarily tow the GOP line once he gets in?

We're digging deeper into his voting record for clues.

(COMMERCIAL BREAK)

LEMON: Ted Kennedy's seat in the Senate about to be taken by a Republican. Scott Brown is getting set for his swearing-in a little bit later on today.

Our senior congressional correspondent, Dana Bash, live from Capitol Hill.

Hi, Dana. Good to see you.

DANA BASH, CNN SR. CONGRESSIONAL CORRESPONDENT: You, too.

LEMON: So, we understand you're learning a little bit more about what kind of digs the incoming senator will enjoy. And then we're going to talk about his record, whether he's conservative, liberal, or somewhere in the middle.

BASH: Absolutely.

LEMON: So what about his digs?

BASH: Yes. Let's start with that.

We had the camera, Chris Turner (ph), who's on camera right now, turn around and point to where Scott Brown will ultimately have his offices. It's down the hall. And here is why this is important. This is the former office space of Ted Kennedy. So, Scott Brown isn't going to just be taking Ted Kennedy's old seat, he is literally going to be moving into his offices. Not today. Today, he'll have some temporary offices, and for the next couple of days.

But this is really pretty remarkable, because this office suite, which I think you're seeing down the hall here in the Russell Senate Office Building, this is prime real estate, Don. I mean, this is where Ted Kennedy, who obviously had immense seniority, he had his offices for some time.

You see that all of these offices down to where you see the flags down the hall, they are occupied -- were occupied by Ted Kennedy. Now are occupied by his temporary replacement, Paul Kirk, and will ultimately be where Scott Brown is. There are beautiful views of the Capitol, beautiful balconies.

And I'm told that it is just being done for convenience sake, because this is, obviously, an open office. But it certainly is symbolic that Scott Brown is going to be taking over this pretty plush office space that Ted Kennedy once held. And we used to see him walking here all the time, every day, because we do our live shots from right around the corner, and that's why we were able to bring you this view.

LEMON: Yes. You said -- you took the words right out of my mouth, "symbolic." And there is symbolism, and that's why we're showing it. And again, prime real estate. You walk in a freshman senator, and you get Ted Kennedy's office space.

BASH: Yes. Just for a couple of years. But not bad.

LEMON: Yes, just for a couple of years.

But listen, you know, I want to talk to you about this, because much is being made about Scott Brown. We're talking about him now, where he's going to be.

I've read about his voting record, I have seen him on television, talking about his stance on everything from gay marriage to abortion to health care. Health care, obviously, you know, in Massachusetts, people said it was similar to what the Obama administration was proposing.

He is for a woman's right to choose. His state allows gay marriage.

So, then, what does that make him? Where does he stand on the big issues?

BASH: Yes. I mean, we can go through some of those.

In fact, we've prepared some graphics just to give our viewers a sense of where he does stand. Let's start with the fiscal issue.

As a Republican, he is really right down the line, a true, blue -- true red, I should say, conservative on fiscal issues. He campaigned on lowering taxes and also lowering government spending.

Also, remember, he campaigned -- another big issue that he will be facing here -- on opposing terror trials in civilian courts. That his become a very, very big, very emotional issue, even among Democrats, in part because Scott Brown so successfully campaigned on that issue.

Let's go to some of the social issues, Don.

You mentioned it. He does oppose -- vehemently oppose -- same- sex marriage. That is regarding gay rights.

And on gun rights, he has an A rating from the NRA. He supports gun rights.

Then it comes to abortion. This is where he is a -- more of a New England Republican. He is not going to be in line with some of his many -- in fact, most of his colleagues in the Republican Conference.

He supports abortion rights. He says that point-blank, unabashedly. He says he is against late-term abortion. He says he is for parental notification and things like that. But when it comes to that social issue, which you don't really see that many votes on in the United States Senate these days, he is somebody who says that he is maybe more in line with the region he is from.

And when it comes to the Republican leadership, Don, they understand that he is a New England Republican. Although he is very much in line with the rest of his 40 colleagues here on a lot of issues, they do understand that he is going to have to get re-elected from the state of Massachusetts. And that will mean he won't necessarily be with the Republican Party on all their issues.

LEMON: Dana Bash, thank you.

Our senior congressional correspondent.

Good information, Dana. We appreciate it.

We want to move now and talk about Toyota, because it's huge. A lawyer representing Toyota drivers said the recalls only cover half the models with problems. Half the models with problems. And one family's painful loss may illustrate his point here. We're digging deeper on the story right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

Many Toyota owners are confused and frustrated over the automaker's troubles. And a deadly accident involving a Toyota that wasn't on the recall list is prompting calls for the company to take further action.

CNN's Deborah Feyerick talked with the woman's daughter about what happened.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Diving this road in Flint, Michigan, Lilia Alberto is haunted by her mother's last moments, the fear the 76-year-old woman must have felt desperately trying to control her 2005 Toyota Camry as it barreled down a quiet street at 80 miles an hour.

LILIA ALBERTO, DAUGHTER OF CRASH VICTIM: She nicked that tree and the car went airborne, and it was going 80 miles per hour.

***12 And hits the tree on the top and it just went down. She died instantly.

DEBORAH FEYERICK, CNN CORRESPONDENT, (voice over): Guadalupe Alberto, by all accounts, was an extremely careful driver in good health.

ALBERTO: That was the first thing that I know -- that I knew something had to be wrong, because my mother would never cross the street because of the two-way traffic.

FEYERICK: Witnesses say the car seemed to speed out of control. No one knows exactly why, but it fits the pattern of thousands of incidents of unintended acceleration involving Toyota vehicles. After a recent spate of high-profile accidents, Toyota recalled millions of cars, not including the model driven by Guadalupe Alberto. They blamed floor mats and sticky gas pedals. Yet a growing number of automotive experts and class action lawyers, like Richard McCune, say that explanation just doesn't fit.

RICHARD MCCUNE, CLASS ACTION ATTORNEY: What I hear over and over and over again, I'm driving down the road and my car just takes off on me. I apply the brakes. Sometimes it works. Sometimes it doesn't. That's the pattern that we have seen.

SEAN KANE, SAFETY RESEARCH AND STRATEGIES: So I think, unequivocally, that these recalls simply do not get to the core of the problems that Toyota has.

FEYERICK: Safety analyst Sean Kane has looked at more than 2,000 accelerator incidents involving Toyota and believes the root of the problem lies in the electronic throttle system which controls the speed of the car.

KANE: These are completely computer-guided systems. And we all know that electronics fail. They do fail and they will fail. The problem with Toyota is they haven't built enough fail-safe devices into their cars to ensure that drivers get control of the vehicle when a failure happens.

FEYERICK: During a press conference in Japan this week, a Toyota executive ruled out any software or electronic issue with the accelerator.

SHINICHI SASAKI, TOYOTA EXECUTIVE VICE PRESIDENT (through translator): For the electronic control unit, we could not come across any case where we found that there was a misfunction in this control system.

FEYERICK: McCune says Toyota's recalls are disturbing in their limitations, because they don't apply to all makes and models that have allegedly experienced the acceleration problem, like the '05 Camry Guadalupe Alberto was driving.

FEYERICK (on camera): Based on your evidence, you're suggesting that there are cars on the road that right now should be recalled?

MCCUNE: I think the recalls covers less than half of the models and model years that need to be part of this recall.

FEYERICK (voice-over): Toyota says it bases its recalls on defects that have been identified, and not solely on reports of unintended acceleration. Late Wednesday, McCune filed a motion for a preliminary injunction, demanding Toyota recall all vehicle models allegedly affected, and also install a brake override system that would stop a car that's accelerating out of control.

MCCUNE: While everybody tries to figure this out, including Toyota, I presume, we need a system so that these sudden accelerations do not become deadly accidents. And that's what the brake override system does.

FEYERICK: A system that possibly could have saved the life of Guadalupe Alberto.

ALBERTO: Once in a while when I'm -- if I come by this -- by this just to say a prayer or just to come and look and remember the place where she died. But it's very painful. It's still very vivid in my mind, in my heart.

FEYERICK: Deborah Feyerick, CNN, Redlands, California.

(END VIDEOTAPE)

DON LEMON, CNN ANCHOR: That is bringing the situation home right there.

The government already pays for the census, we're talking about right now, so why spend $1 billion in stimulus money on it?

Josh Levs, what's going on?

We're going to check in with him at the stimulus desk. Don't tell me now. Tell me after the break.

(COMMERCIAL BREAK)

LEMON: Boy, we want to get right over to the New York Stock Exchange because the Dow has tumbled more than 200 points. Looking at 199 now. Right at 200. Let's get to Alison Kosik now at the New York Stock Exchange to explain what's going on.

What triggered this, Alison?

ALISON KOSIK, CNN CORRESPONDENT: Don, I'll tell you what, the big sell-off that you're seeing on Wall Street right now, it all boils down to jobs. The consumer is what really drives the economy. And if people aren't working, they're not going to spend. So Wall Street's getting nervous.

You know, tomorrow we're getting the government's crucial big jobs report for January. Now there was some hope that employers would be adding jobs, but we got a weekly report today that showed that those expectations definitely cut. We learned that the number of people who joined the unemployment line last week rose to 480,000. Wall Street expected a decline. So this was a really big surprise.

Now, what's worse is that claims haven't been this high in two months, so investors not liking what they're seeing. The Dow right now, as you said, tumbling 203 points.

Don.

LEMON: OK. We'll check back. Thank you so much.

KOSIK: Sure.

LEMON: Yes, we're talking money right now. So let's talk about the stimulus and the census. It's time to be counted. Census forms are in the mail right now, so fill out yours? You better, because you're paying for it. Josh Levs over at the stimulus desk.

How much stimulus money are we talking about here, Josh? We wouldn't be talking about it if it wasn't a lot of money. It's a lot of money, right?

JOSH LEVS, CNN CORRESPONDENT: It's a lot of money, but it's also a really tricky situation because the point here is that the government already pays for the census. So we're trying to wrap our minds around this, why the census also need this, $1 billion, Don. They got $1 billion from the stimulus fund.

And again, I'll remind everyone, we're looking at that $862 billion stimulus bill that passed last year. We're looking at where those billions have gone and what they're funding. And the census in the United States is getting $1 billion.

Now the GAO is predicting that the total census cost is going to be about $14 billion. They said that last year. So the government already pays for it. So why another billion out of the stimulus? So why anything out of the stimulus if the government's paying for it?

Well, this is what the government is telling us. When we talked to the census, they said, this is what's happening with that billion dollars. Three-quarters of it is going to early operations and local costs to help beef up the local operations that are out there gathering information about you. $105 million for advertising and outreach. $115 million for partnerships. They partner with private and governmental groups out there, especially trying to reach out to populations that might be undercounted. And another $26 million to follow-up operations.

So these are all kinds of things they already do, right? But what they're saying now is they're going to use the billion dollars from the stimulus to do that. So we wanted to know, how many jobs is this billion creating? We don't know yet. Because what's tricky is, we are not finding out yet from the census.

We asked yesterday. We're asking again today. We're waiting for an answer from them. How many jobs wouldn't have happened anyway. If it's already the government's responsibility to pay for the census, then how many jobs might not have happened if it wasn't for this billion dollars that they're getting out of the census -- the stimulus here.

We have some video of the census. We know these operations are underway. We know it's going to be a huge operation. We know a lot of people have a lot of questions about it and a lot of concerns about it. We also know that it's a very big, very expensive proposition. Everything about it.

Now, there's one more thing that I'll tell you before we go, and that's over here on this screen behind me. Within that billion dollars, we're looking at where it's going, are different agencies getting it. And we can tell you about one company here in New York that's getting almost 100 mill. They are True North Communications. They're getting $96 million of that $1 billion, Don, to work on census promotion efforts, get the word out, try to reach more people, try to get to as many people as possible.

And with that $1 billion added in, we're adding even more now to the total amount that CNN is able to follow. We're going to be following that number for you throughout the day. Our massive total now, $11.6 million. Pretty close. Now, we just jumped. $12.6 billion of the stimulus is now under review by CNN.

And, Don, you can see what we're waiting for from the census, right? If they're already funded by the government, why get another $1 billion out of the stimulus? What's going to happen that they wouldn't have already been paying for? And how many jobs can you really say come out of the stimulus?

LEMON: Well, you have a lot of questions, but very stimulating nonetheless, Josh Levs, we appreciate it.

So, listen, we have some information for concerned Toyota customers coming up after the break.

And also the latest on the doctor accused in the Michael Jackson death investigation. New information.

(COMMERCIAL BREAK)

LEMON: Want to check your top stories for you.

Problems with the 2010 Toyota Prius under investigation now by the Transportation Department. Federal safety authorities say they have received 124 complaints about the brakes not working. Toyota recalls because of sticking gas pedals now total more than 8 million vehicles.

His lawyer says Dr. Conrad Murray is negotiating his surrender to Los Angeles Police. The doctor's widely expected to face charges in the death of singer Michael Jackson. A source tells CNN arraignment is tentatively scheduled for late Friday afternoon.

Two steps forward and, well, a setback (ph). After signs of improvement earlier this year, first-time jobless claims increased last week by 8,000 to 480,000. Continuing claims also jumped by a couple of thousand to more than 4.6 million.

If you're looking for a job, this could be your growth industry. How one state is turning to pot in hopes of solving its high unemployment, in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: You know, you learn something every day. I didn't realize that there were 14 states now that have legalized medical marijuana. It is a fight that continues across the country. But in Michigan, it is creating economic opportunity. CNNMoney.com's Poppy Harlow explains now.

(BEGIN VIDEOTAPE)

TRAVIS WILLIAMS, MEDICAL MARIJUANA CAREGIVER: This is a strain that I call Vietnam 1969.

POPPY HARLOW, CNNMONEY.COM: The weed in Travis Williams' living room isn't getting him high or arrested. As a registered caregiver, it's a job in a state with the highest unemployment rate in the country.

WILLIAMS: It should be a pretty lucrative industry, you know. Not street money lucrative, but enough to make a living.

UNIDENTIFIED MALE: We got a whole bunch of tops right here that all look the same.

HARLOW: It's here at MedGrow Cannabis College where Williams learned a new way to make a buck after his construction business fell as rapidly as the Michigan economy. He sees the legalization of medical marijuana as the quick fix Detroit needs.

WILLIAMS: As far as new industries, this is it for right now. I guess...

HARLOW (on camera): This is it, medical marijuana? What about green technology or electric cars?

WILLIAMS: Well, that's coming. That's coming. But that's going to take some years. So, for right now, when you got to pay the mortgage, you can't wait a couple years. You have to move right now. HARLOW (voice-over): When Michigan voters put their stamp of approval on legislation legalizing medical marijuana in 2008, Nick Tennant saw dollar signs.

NICK TENNANT, FOUNDER, MEDGROW: Because of the economic climate in Michigan, we are particularly poised for growth. People are looking for a new industry to get into.

HARLOW: So, in September, Tennant founded MedGrow, the first medical marijuana trade college in Michigan. Unlike most businesses here, his is booming. Since it opened, hundreds have graduated from the six-week, $475 course, which has been sold out for the last few months.

JOEL SCHWARTZ, MEDGROW STUDENT: It's a new frontier and I'm excited to see this for the state. They need help as much as they can get.

HARLOW: But there's a clear catch-22 when it comes to what's legal and what's not. Registered patients can smoke medical marijuana, but they can't legally buy it. And caregivers can plant it, but they can't buy the seeds to grow it.

WILLIAMS: It's like you think the government or the state is playing a joke on you. OK, marijuana is legal. But then they combust you.

HARLOW: The Michigan Department of Community Health, which oversees the program, admits the law is unclear. In a statement it says, quote, "the Michigan Medical Marijuana Act has many gray areas that are causing much confusion about marijuana usage. The largest gray area is obtaining the drug. This is a problem that only the state legislature can resolve."

(END VIDEOTAPE)

HARLOW: And, Don, doesn't look like the state legislature's really doing anything to solve that problem. We talked to the Michigan Department of Community Health this morning. They said some state senators have put a few proposals forward to further regulate the use, but not to clear up that clear catch-22 in the law.

Don.

LEMON: I know Poppy Harlow will be checking on it. Thank you.

HARLOW: We will.

LEMON: Thank you very much, Poppy.

You know, we're celebrating a milestone for a way millions of people stay in touch or waste a lot of time, depending on your point of view.

(COMMERCIAL BREAK) LEMON: Facebook nation has a reason to celebrate. The world's biggest social networking website turns six today. What is that social networking do? And it is 375 million strong, by the way. Our Colleen McEdwards looks back at its rapid growth.

(BEGIN VIDEOTAPE)

COLLEEN MCEDWARDS, CNN CORRESPONDENT, (voice over): Six years ago, Mark Zuckerberg and three partners founded Facebook while attending Harvard University.

MARK ZUCKERBERG, FACEBOOK FOUNDER: Facebook just started off as a little project and it spiraled out of control.

MCEDWARDS: The site exploded in 2006 when membership restrictions were lifted and the whole world could join. Today, Facebook is available in more than 70 languages, in more than 180 different countries. And, get this, the number of people who play the game "Farmville" on the site far exceeds the number of actual farms in the United States, 76 million to 2 million.

Facebook's entire population, more than 350 million active users. So, imagine, if Facebook were a country, it would be the third largest in the world, behind China and India and just ahead of the United States.

ZUCKERBERG: We believe, really deeply, that if people are sharing more, then the world will be a more open place where people can understand what's going on with the people around them. And that's really what we want to get towards.

MCEDWARDS: Facebook is growing at the astounding rate of about 5 million new users a week. It's become an important communication tool, even for news gathering.

UNIDENTIFIED MALE: Now you've got real-time reporting from people on the streets, showing pictures, showing the violence, and that's not something that any government can control anymore.

MCEDWARDS: A good example is Iran. Pro-reformists have been using social networking sites to organize their protests. And the government can't seem to stop them. Even after websites are censored, videos continue to be uploaded through proxy servers.

As a business, Facebook may have passed a tipping point that will make it almost impossible for any other social network to catch up.

UNIDENTIFIED FEMALE: We wanted to grow revenue by 70 percent year-over-year and that we'd become cash-flow positive by the end of 2010. So we updated that to say we're, you know, basically ahead of those predictions and specifically that we're cash-flow positive.

MCEDWARDS: But Facebook's fast growth has also brought criticism, including users' concerns about the privacy of personal information they share online. UNIDENTIFIED MALE: If you're a user and you're used to this very close network, you're used to just sharing with a small network of friends, suddenly Facebook is saying, hey, why not share with everyone. Why not be a public face. And I think for some people that's really been a concern that's really blown up as a privacy issue.

MCEDWARDS: How much sharing is too much sharing? How much privacy will Facebook users demand? One of the challenges Facebook will face as it moves through another year.

Colleen McEdwards, CNN, Atlanta.

(END VIDEOTAPE)

LEMON: You know what, this is a first for the last chief executive of Sun Microsoft. Last night, Jonathan Schwartz tweeted his resignation in the form of Japanese poetry called haiku. Here's what he wrote.

"Today's my last day at Sun. I'll miss it. It seems only fitting to end on a haiku. Financial crisis/stalled. Too many customers/CEO no more."

We'll share your blog comments about the Tea Party right after this.

(COMMERCIAL BREAK)

LEMON: Hey, guys, thanks for writing in on our blog and on the social networking sites. We've been telling you about the Tea Party convention underway in Nashville. Sarah Palin, keynote speaker. some of your comments now. These are from our blog.

Darren says, "it's nothing more than a right-wing finance group trying to undermine the duly elected president any way they can."

And from Kevin, "the Tea Party is fueled by misinformation. Had they done their research, they would have realized Democrats are not destroying this country, at least not more than Republicans."

And Scott wants us to know, "the Tea Party represents a loose confederation of citizens who see a government grown too large and one out of touch with "we the people." Your coverage today attempts to depict those carrying the most hideous posters and signs as the norm of the movement. Anyone familiar with the crowds knows, this group represents the worst, and only a tiny fraction of the movement."

So, thank you for your conversation. Thank you for your questions. Thank you for your comments. We really appreciate it.

I'm Don Lemon. Make sure you go to our blog. Go to the CNN NEWSROOM blog and go to our social networking sites.

I'm Don Lemon. That's it for me. Mr. Ali Velshi right here.

Take it away, Ali.

ALI VELSHI, CNN ANCHOR: Don, thank you very much. Good coverage on the Tea Party. We will continue that, but we've got breaking news right now.