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Man Killed by Snowy Tree Limb; Tens of Thousands Without Power; Explosions In Afghanistan; Women In Combat; Fixing the VA; Mortgage Help for the Unemployed; Blockbuster Snowstorm

Aired February 26, 2010 - 09:00   ET

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

CHRISTINE ROMANS, CNN ANCHOR: Hi, Kyra.

KYRA PHILLIPS, CNN ANCHOR: Hi, guys. Well, it's Friday and it's about time.

We've heard several Toyota horror stories, but this one is quite different.

(BEGIN VIDEO CLIP)

KOUA FONG LEE, CONVICTED OF VEHICULAR HOMICIDE: I believe 100 percent I took my foot off the gas and I stepped on the break, and I pump again and again very hard, but nothing happened.

(END VIDEO CLIP)

PHILLIPS: Here is the rub. The crash he is talking about happened four years ago, and a lot has happened since then. Could the Toyota defense get him out of prison?

Lost your job? Afraid your house is next to go? There is a new plan to keep the grim foreclosure away at least for a little while.

And military women fighting and dying in war. So much for the Pentagon rule that forbids women in combat.

We're also going to ask Ed Henry about the big health care summit. Didn't it seem like they were walking on one big treadmill? Taking lots of steps, but not going anywhere.

When Reynolds Wolf is in town, well, you know the weather is up to no good where you are. He's going to show us what's the latest winter smackdown is doing in the east.

And Rob Marciano, toasty, warm, dry, unchaffed, in the weather center, showing us what to expect today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is all a sheet of ice. I have four- wheel drive on and I almost slid into the guy who was too close behind you. I had to go off the road to avoid hitting him.

(END VIDEO CLIP) PHILLIPS: Yes, traveling in the northeast right now? Forget about it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Driving's crazy today. Crazy. Ridiculous.

UNIDENTIFIED FEMALE: I was going to head to work but it's all the way over on the east side and I was at another meeting here on the west side, and I said I'm not going to chance it. I'm going to go home.

(END VIDEO CLIP)

PHILLIPS: The region smacked down by its fourth major storm of the season. And it's not just drivers who are affected. Air travelers are stuck, too. More than 1,000 flights have been cancelled just at New York area airports alone.

And even a walk in the park can be deadly. Susan Candiotti in New York.

Susan, what's the story right there out of Central Park?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Well, not only Central Park but also standing right here in Columbus Circle. That's right. I said I'm standing in Columbus Circle.

This is 9:00 Friday on a rush hour. Normally you'd have bumper to bumper traffic here. It's nothing like that today. As you can see, there are some cars, some buses going by, but nothing like it normally is.

As I make my way across closer to you here, there are plows out. They're trying to do as best they can to keep up with all of this, but you can see how some of the snow is getting piled up around here, coming back down here. I'm 5 feet tall, and that's how high it is piled up in some areas.

But across the street from here is Central Park. And yes, it's beautiful here, as the snow is falling, people are out and about walking, taking out their dogs, joggers and that kind of thing, but it also can be dangerous.

Case in point. What happened here yesterday. You see those trees up there? This snow is wet. It is heavy and it is waiting down the branches and in fact yesterday, a walk in the part proved fatal for one man.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): The wet and heavy snow proved too much for some trees, raining down branches across New York's Central Park. In one unfortunate case, the timing proved deadly. Police say a 46- year-old man from Brooklyn was killed when a large limb fell on his head as he walked through the park. Just blocks north of that scene, an entire tree fell on a city bus, forcing police to close part of New York's famous Fifth Avenue. Luckily no one was hurt there. But crews were scrambling to keep up with trees falling all over the city.

RICHARD TARELLO, NEW YORK FIRE DEPARTMENT: Right now we have trees down at four locations, 76th Street, 71st Street, 69th Street and 68th Street.

CANDIOTTI: It made for an uglier-than-usual commute for New Yorkers, with people literally racing to get home before it got worse.

UNIDENTIFIED MALE: In jersey, it's snowing a lot more so I figure let me go now.

(END VIDEOTAPE)

CANDIOTTI: It may look beautiful, but the conditions out here are indeed treacherous. As you heard, more than 1300 flights cancelled between yesterday and today. It has been snowing nonstop since yesterday.

Tens of thousands of power outages in the region. Some bus service from northern New Jersey into the city suspended for now. And -- good news for kids -- public schools, they're off for the day, are getting an early start on the weekend.

Kyra, back to you.

(LAUGHTER)

PHILLIPS: Probably the only ones that are excited right now about being out in the snow.

Susan Candiotti, thanks so much.

And while that heavy wet snow is pulling down power lines in New York, it's the wind that's going to be a problem out in Philly.

Reynolds Wolf is there. Reynolds?

REYNOLDS WOLF, CNN METEOROLOGIST: That's right, Kyra. You know, that's funny. You know we talk about these big events and the things that we have -- again, where we're dealing with obviously the snowfall, but another big thing obviously is going to be the wind.

The thing that's interesting here in Philadelphia across the region is, when you think about the cold weather -- I'm going to get science geeky on you for a moment here. Cold weather -- when you get to the freezing point, obviously, it hardens water. When it does of course it freezes water. And you've got ice.

Well, in the trees, think about when you have those freezing conditions, what it does it hardens the sap. The trees are less malleable. They don't bend as easily when you have some strong winds. Well, today's forecast, we can anticipate some gusts topping 40 miles an hour and what does that going to do is it's going to cause some of those tree branches to snap, and as you can, we have a lot of tree branches that are right along some of these power lines. So it's inevitable that throughout this region, on many of the tree-lined streets, we're going to see some issues in terms of power outages.

But I'll tell you right now in South Street here in Philadelphia, you see the lights are up, the lights are on, people are moving about, and that is certainly some good news for the time being, but as you can imagine that's going to change.

One big change you're seeing at the airports. For Southwest Airlines you're hoping to fly to Philadelphia, that's not going to happen today. All the flights have been cancelled. We're going to see more of those occurred, no question.

But in terms of transportation on the city streets, for the most part, it's been pretty good. Slow and go to be sure, but they've been treating the roads. The roads are in fairly good shape. But still you're going to find those icy patches, especially in overpasses.

And much of it is going to be beneath this. Just this thin veneer of snow. Kind of hard to see. And you'll certainly know if you happen to cross it.

All the schools are going to be closed today throughout Philadelphia. That's great news for kids, but for the men and women who've got to get out and go to work -- like you see this Verizon truck over here, they're certainly doing their job -- it's going to be tough for them on the roadways.

They've been advising people that if you don't have to go to work today, you don't have to travel, common sense, don't go, stay at home. Certainly the best situation.

We do expect the weather conditions to improve. The snow is going to stop. The wind is going to be a factor going into the evening hours. Winds -- again, 20 to 30s some gusts topping 45. But this evening should subside a bit.

A much better day for tomorrow. But the cleanup continues, and of course the airports, you've got that backlog of passengers. It's going to be a trying situation for many people battling the third major winter system moving through this region in less than a month.

Let's send it back to you.

PHILLIPS: All right, Reynolds, thanks so much. And Rob Marciano, you're watching everything all across the country, not just in Philadelphia. I'll tell you what, I would not want to be a pilot having to fly in that kind of weather. That's pretty hairy.

ROB MARCIANO, CNN METEOROLOGIST: Well, after having to fly around it, Kyra. This is a huge, huge system that stretches from the Canadian border all the way down into the Carolinas. So it's affecting a great deal of people. And it just doesn't want to give up.

Look at the circulation. This is the radar scope and it's starting to fill in again. The northern part of it wanted to dry out just north of New York, but now it's swirling right around -- center on Queens, and it's not really moving all that much. So we have several more inches to go before this thing really winds down.

The winds will continue to gush for the next six to 12 hours. We've already seen over 16 inches of snow in Central Park and just north of the city and across Orange County, over two feet of snow is falling and we still have more to get through.

So an epic snowstorm, no doubt about it. And it ain't done yet. We'll talk more about it in just a few minutes, Kyra.

PHILLIPS: All right, Rob. Thanks.

The health care summit, an extraordinary event, a rather ordinary outcome after hours of televised negotiations. Are Republicans and Democrats any closer to really passing reforms?

Well, CNN White House correspondent Ed Henry takes a closer look for us.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): The stakes couldn't be higher. He's betting his presidency on getting a health reform deal. This was his last ditch attempt to save it.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What I'm hoping to accomplish today is for everybody to focus not just on where we differ, but focus on where we agree.

HENRY: A tall order when you throw dozens of members of Congress into a made-for-TV drama, at the historic Blair House.

SEN. JOHN MCCAIN (R), ARIZONA: Can I finish please?

HENRY: The president's 2008 rival, Republican John McCain, quickly tweaked him over campaign promises.

MCCAIN: Eight times you said that negotiations on health care reform would be conducted with the C-SPAN cameras. I'm glad more than a year later that they are here. Unfortunately this product was not produced in that fashion. It was produced behind closed doors. It was produced with unsavory -- I say that with respect -- deal making.

HENRY: The president defended the transparency of the talks and gave as good as he got.

OBAMA: Let me just make this point, John, because we're not campaigning anymore, the election is over.

(LAUGHTER)

MCCAIN: I am reminded of that every day.

OBAMA: Well, I -- yes.

HENRY: Even the sharp exchanges were civil, if a bit jaded, each party hammering familiar talking points.

SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: The health insurance industry is the shark that swims just below the water. And you don't see that shark until you feel the teeth of that shark.

REP. PAUL RYAN (R), WISCONSIN: Should we regulate all of this? Should (INAUDIBLE) people in Washington decide exactly how this works and what you can and cannot buy?

HENRY: After about six hours, Republicans believe they made their case to the American people, that the president's plan is simply too costly.

SEN. LAMAR ALEXANDER (R), TENNESSEE: It means that for millions of Americans premiums will go up because those -- when people pay those new taxes, premiums will go up and they will also go up because of the government mandates.

HENRY: But Democrats believe the president got the better of the Republicans.

OBAMA: So, Lamar, when you mentioned earlier that you said premiums go up, that's just not the case according to the Congressional Budget Office.

LAMAR; Mr. President, if you're going to contradict me, I ought to have a chance to --

OBAMA: No, no, no. Let me -- and this is an example of where we've got to get our facts straight.

HENRY: A CNN fact check gives the edge to the president. The CBO found that his plan would lower premiums for millions of Americans, and those facing hikes would get better coverage.

(END VIDEO CLIP)

PHILLIPS: Well, I guess you got to watch what you say when you challenge the president. Thanks for the fact check, Ed. So now what?

HENRY: Well, you know, that's a big question. I think it's very clear that since there was no major breakthrough yesterday, when you talk to senior people here at the White House, and Democrats on the Hill and in private, they're moving towards reconciliation.

This maneuver where you basically you don't need a super majority, you need a simple majority in the House and Senate to pass some of these health care changes.

I've got CNN.com open right now to the politics page because my colleague Dana Bash has a really good story there right now that's sort of explaining how that's easier said than done, though. There's a lot of parliamentary problems, challenges, that could pop up, that might make this harder for Democrats.

And as Dana points out from her congressional sources, and I've been hearing from White House sources, it's not clear the president even has the votes, even with that smaller threshold, of only a simple majority instead of a super majority in the Senate.

It's not clear he can still get this passed. So a lot of work still yet to be done for the president. And we're hearing that Democrats are probably warning the president, he's got to get this done by the end of March, otherwise we'll just simply going to run out of time. They've got to move on to other subjects in the spring like jobs, like the economy to get ready for those midterm elections -- Kyra.

PHILLIPS: Ed, thanks.

And one of President Obama's most powerful allies in Congress will get a formal scolding sometime today. New York congressman Charlie Rangel is expecting a reprimand from the Ethics Committee. The reason? Well, he took Caribbean trips that were paid for by private corporations.

Now the embarrassment raises questions over whether Rangel can keep his post as chairman of the Ways and Means Committee. That position, as the House's chief tax writer, is especially important to the White House this year as it struggles with health care reform and tax cuts.

He plowed his car into another one a few years ago. Three people died and he goes to prison. He's still there. Guess what he was driving? Yes, a Toyota. Think it's time to rethink the crash, re- inspect the car, and retry the case?

(COMMERCIAL BREAK)

PHILLIPS: This whole Toyota mess, it's giving rise to a new legal strategy -- the Toyota defense. Minnesota, 2006, a man plows his Camry into an Oldsmobile anywhere from 70 to 90 miles per hour. Three people in the Olds dead. Prosecutors claimed the driver hit the gas not the break. Convicted, vehicular homicide.

Koua Fong Lee always said that he tried to stop the car but his breaks didn't work. Now given Toyota's recalls and acceleration problems, Lee feels his story and his case for a new trial have traction. Even the victim's family is on his side.

(BEGIN VIDEO CLIP)

QUINCY ADAMS, FATHER, GRANDFATHER OF VICTIMS: I hope that they get to the bottom of it and find the truth if the boy is innocent.

(END VIDEO CLIP)

PHILLIPS: His Camry was a '96, not part of the recent recall, but Toyota did recall some of them a few years ago because the cruise control could cause unwanted acceleration. The company hasn't said anything about this case. And right now Lee is serving an eight-year prison sentence.

CNN affiliate CARE actually talked to him about the moment that sent him there.

(BEGIN VIDEO CLIP)

LEE: I took my foot from the gas to put on the break, and I stepped on the break, but it's not working. And then I step, pump again, it's not working. So many times I try. So I pray. And at that time I yelled to my family that the break is not working. I tried to do everything I could to keep -- to try to stop the car, but I can't stop.

(END VIDEO CLIP)

PHILLIPS: Now an inspector at the time found nothing wrong with the breaks. Lee's Camry is still in an impound lot. His attorney wants inspectors to take another look. Prosecutors say give us some new evidence and we'll give the case another look.

We've got a new Toyota tales to tell you. Nothing fatal here but scary for sure. This happened last night just outside Atlanta. Corolla driver heading to the store, doesn't make it. The neighbor's house apparently got in the way.

(BEGIN VIDEO CLIP)

THERESE MITCHELL, FRIEND OF DRIVER: She was just coming out of the driveway, and she was about to stop to pick us up, the car just take off.

ROGER MOORE, NEIGHBOR: She had her foot on the break the whole time and the car just kept going, you know? (INAUDIBLE).

(END VIDEO CLIP)

PHILLIPS: Thankfully no one was hurt. The offending Corolla is an '09 and part of the recall. Probably time to get that thing to the dealer. Oh, and apparently the air bag didn't deploy either even though the car plowed into that house.

If you are wondering if your Toyota's part of the recall, just check out CNN.com/Toyota. Bumper to bumper coverage of that story from recall details to Mr. Toyoda's testimony in Washington.

Rob Marciano, that winter storm already coming down hard. Yes, I was kind of wondering what that video was, too. Sorry, pal. I will do the same thing, what the -- oh that was for you to talk about.

MARCIANO: Yes.

PHILLIPS: I was going to talk about the snow that's already canceling flights like crazy. Did you want to talk about that water wherever it was?

(WEATHER REPORT)

PHILLIPS: All right, Rob, thanks.

As you know it's not just the snow, that northeastern storm is actually packing some pretty strong winds -- winds that are making life even tougher for emergency workers trying to fight fires there.

(COMMERCIAL BREAK)

PHILLIPS: Two rival Mexican drug gangs battling it out near the U.S. border. It's gotten so dangerous the U.S. consulate actually shut down in that area. One of the cartels reportedly kidnapped 10 people during a clash with police and the military. This is all taking part across the border from McAllen, Texas.

A massive fire devastative. Part of an ocean front community in New Hampshire this morning. The fire started small in an empty hotel in Hampton, but 70-mile-per-hour winds fanned those flames to a bunch of neighboring businesses. They even had to call in firefighters from Maine and Massachusetts to help out.

A final test firing in Utah. That's one of the booster rockets like they use on the space shuttle. They make them in Utah. The last test was to make sure the rockets are ready for the final four shuttle launches. The company has already started laying off hundreds of its workers.

The earth moves, the sky opens. We'll tell you about the latest fears that now loom over earthquake-ravaged Haiti.

(COMMERCIAL BREAK)

PHILLIPS: In Haiti, new concerns on the horizon. The rainy season is now about a month away and that could be devastating for the million people now living in tents and under tarps.

So the government is urging the homeless to pack up and return to their destroyed neighborhoods. As you can imagine, many of the earthquake victims are not crazy about that idea. For one thing, the government would have to remove mountains of rubble before people could even return there.

So amid all the problems and challenges, you may be shocked by this. Haiti's government says the emergency situation is over. We're actually told that they've ordered airport customs agency to stall relief supplies so they can make sure the organization qualifies to bring in goods tax free.

(BEGIN VIDEO CLIP)

BILL MANASSERO, MAISON DE LUMIERE ORPHANAGE: A bunch of things shipped in to us to help us to repair houses, to -- tents to give away to people that need homes, and right now we can't get our things out of customs. (END VIDEO CLIP)

PHILLIPS: Officials said that relief organizations should just turn over the relief supplies to the Haitian government so they can be certificated as donations. The government promises to give them back once they confirm the organizations are eligible for tax exemptions.

Take action on the news you consume. If you want to "Impact Your World" and help with the crisis in Haiti, go to our Web site. That address is CNN.com/impact. There you'll find some of the highest rated charities by CharityNavigators.org.

After a week of pretty dismal economic stories, well, we have some upbeat news about the recovery today. A new report actually says the economy is growing faster than expected.

OK, Darby Dunn, you're in New York with all the details. How are investigators taking it?

DARBY DUNN, CNN CORRESPONDENT: Well, we're expecting a fairly flat open, but this is a good number. The revised GDP figure, for Gross Domestic product. And it clocked in at 5.9 percent. That was a bit higher than what most economists were expecting.

So the economy powered ahead at the end of last year, and that is what investors expected. However the concern is that the economy won't be able to continue powering ahead at that rate during this current year. So that's why we're expecting a little bit of a flat open.

A nearly $9 billion loss from insurer AIG is not helping the overall market either. AIG coming in with its earnings report. But the loss is largely due to the steps that AIG took last year to pay back some of its massive government bailout.

AIG sold off big stakes and its insurance businesses. And in the premarket, AIG shares tumbling 6 percent.

And finally, Kyra, here's a fun story for a Friday morning. Apple has reached a milestone. A resident of Woodstock, Georgia bought the 10 billionth -- that's billionth, with a B -- song from iTunes. It was a Johnny Cash song.

And the winner is going to get -- as a result -- a $10,000 iTunes gift card which -- it's like -- could translate up to 10,000 songs. I thought it was cute. He said he had three kids and nine grandchildren, so he's not going to have to worry about birthday and Christmas presents any time soon. He's got a plenty of songs that he can gift over.

So, Kyra, just some few minutes before the opening bell. And we're expecting a flat open. We'll see what happens in this last week trading for the week. Back to you.

PHILLIPS: I'm trying to remember what the Johnny Cash song was. We're trying to remember. We talked about this -- one we never really heard of.

Do you remember?

DUNN: Yes, I wasn't familiar with it, too, but I think it was from the "Folsom Prison" album? Or something like "Things Go This Way?"

PHILLIPS: OK.

DUNN: Let me say, I have it. I have it.

PHILLIPS: Yes, do you have it there?

DUNN: "I Guess Things Happen that Way."

PHILLIPS: "I Guess Things Happen that Way."

DUNN: "I Guess Things Happen that Way."

(LAUGHTER)

PHILLIPS: Perfect song for the Folsom prison.

DUNN: I got to get in on my iPod.

(CROSSTALK)

(LAUGHTER)

PHILLIPS: Yes, exactly.

(CROSSTALK)

PHILLIPS: Get on your iPod?

(CROSSTALK)

DUNN: Yes, I want to check it out. I'm curious now.

PHILLIPS: OK. You let us know. We're going to see what (INAUDIBLE) got. And maybe we can play it. Thanks so much, Darby.

Well, fighting a war with no frontlines. It often means that women wind up in combat and in violation of Pentagon rules. So could those rules change?

(COMMERCIAL BREAK)

PHILLIPS: In Afghanistan, the Taliban claimed responsibility for deadly bombings that have rocked the capitol and targeted foreigners. At least, 17 people were killed, more wounded when that suicide blast erupted outside a hotel. The area also has this U.N. offices, government buildings, and diplomatic facilities.

Earlier this week, we told you about military history in the making. Congress considering a Pentagon requests that would allow women to serve aboard navy submarines, and it's the only way that women's roles are changing. They're also serving in combat even if former rules actually forbid it. CNN Pentagon correspondent Barbara Starr has that story.

(BEGIN VIDEOTAPE)

SGT. JENNIFER HUNT, U.S. ARMY RESERVE: My convoy was hit by a roadside bomb, impacted the side of Humvee.

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Army charged Jennifer Hunt's job was to help Iraqis rebuild the country, but suddenly one day, she was in combat.

HUNT: I had shrapnel through my cheek, and it came in to the side of my cheek and it left the front.

STARR: It's not really supposed to be this way. Sixteen years ago, the Pentagon banned women from serving in battlefield units whose primary mission is to engage in direct combat on the ground, but the reality is, today, women are going on patrol driving convoys, flying helicopters in a war with no frontlines. This week, an astounding admission from the head of the army.

UNKNOWN MALE: General, what is your view about expanding the ability of women to serve in combat roles?

GEN. GEORGE CASEY, U.S. ARMY CHIEF OF STAFF: Senator, I believe that it's time that we take a look at what women are actually doing in Iraq and Afghanistan, and look at our policies, and we discussed this between ourselves here.

STARR: Two hundred and thirty-five thousand women have deployed to the war zones, 125 have lost their lives and 668 wounded. The military already struggling to allow gays to openly serve, may not be ready for more change. Elaine Donnelly at the conservative Center for Military Readiness has long opposed to women in combat writing recently, "women on average do not have the physical capability to lift a fully-loaded male soldier who has been wounded under fire.

But Sergeant Hunt, wearing a Purple Heart, says women and men face the same dangers.

HUNT: I do feel that I was in combat, yes. I was engaged by the enemy, when they, you know, exploded an IED near my Humvee. You cannot hit the pause button and say, you know, I'm not -- I'm not supposed to be here, don't shoot at me.

(END VIDEOTAPE)

PHILLIPS: So, Barbara what are the actual chances that the policy will officially be changed?

STARR: Kyra, probably not anytime soon.

You know, we asked the Pentagon spokesman about it. He says there is no plan for it, and really, first up in terms of any change around here probably is that effort to repeal the law that bans gays from openly serving in the military, just an indication of how hard change is to come by. Just yesterday, the head of the Marine Corps, General Conway, said he opposes lifting the "Don't Ask, Don't Tell" ban, so any chance for real change for women may be down the road -- Kyra.

PHILLIPS: Change or not, as you pointed out, they're right there on the frontlines, fighting for all of us. Barbara, thanks.

STARR: Sure.

PHILLIPS: Mad as hell and not going to take it anymore. That's how many Americans are feeling about government these days, so we're tapping into your strong feelings all week long, looking at broken government and what needs to be done to fix it.

Outdated and ineffective. That's how thousands of our vets who are desperately trying to get their hard-earned benefits described the VA that say that their phone calls to the VA hotline go unanswered, and the backlog of claims has already reached the 1 million mark. Talk about broken government.

So, how do you overhaul a system that dates back to the Nixon administration? War veteran and advocate Paul Rieckhoff says he's got the business plan to fix it -- run the VA like a "Fortune 500" company. He is the founder and executive director of Iraq & Afghanistan Veterans of America.

Paul, good to see you as always.

PAUL RIECKHOFF, IRAN & AFGHANISTAN VETERANS OF AMERICA: Good morning, Kyra.

PHILLIPS: You recently wrote an op-ed piece, and you are quoted as saying, "as the second largest bureaucracy in the country, the VA continues to be a model of how not to run government programs. Forget all of Washington's buzz words, transparency, efficiency, and fiscal responsibility. We need the administration to try a new term, customer service."

You've named many examples of the way the VA is not running efficiently. If you were able to pick one thing right now that outrages you the most, what would it be?

RIECKHOFF : I think it's the number you quoted, 1 million. There are 1 million disability claims that are backlog in an antiquated paper-based VA system. It's 2010, and the VA is still using paper. They need to look to corporations and look to non-prop and said they're innovating, and to really focus, I mentioned, customer service. Let's put the veterans using the VA at the forefront.

Let's really be focused on them and their needs. If a veteran files a disability claim right now, they're going to wait on average 150 days. If they appeal that claim, people like Jennifer Hunt that works in our office that you just showed in your previous piece. She is going to be waiting two years. That's absolutely an inexcusable. It's a national embarrassment, and we need attention across the government to try to fix this and reform the VA.

PHILLIPS: You say you have a solution -- run the VA like a business. Explain to me what you mean by that. What is your idea?

RIECKHOFF: I think that's part of the solution. We have to look to companies. I mean, if Secretary Shinseki called up Bill Gates right now and said, we need your help. Help us figure out how to process claims effectively, so we don't have to use paper and paperclips like we're using now. If we went to folks like Steve Jobs (ph) and said, hey, give us the best technology in the world, and help us reform a $100 billion bureaucracy that's not meeting veteran's needs. Let's figure out how to answer the phones at the VA.

Right now, if you are a veteran trying to get through to the GI bill hotline, you will probably going to have a hard time. This fall, 90% of the people who called looking for help, looking for advice either did not get through or had their calls dropped. So, if we need some stimulus, how about putting people on the phones to answer those calls, to make sure the veterans aren't left waiting. We need to focus on them and make sure that they are satisfied with the services being provided.

PHILLIPS: Now, Paul, I want you to know that for full disclosure, we, all morning, have been calling the GI bill hotline, also the VA hotline. The VA hotline, we were put on hold and said it would take about four minutes. It took more than ten minutes to finally get through. We were able to get through to the GI bill hotline.

Was it easier because it's early in the morning? Is there certain time where folks and they're trying to get through that they can't get through or do you think this is one step in the right direction where it's actually maybe getting better?

RIECKHOFF: It is getting better, and it's because of pressures from groups like ours. It's because of media attention like what you have put on here at CNN, and it's also because the VA just announced that they're going to start answering phones on Thursdays and Fridays. That was like big news. Five days a week, they're going to start answering the phones, and that's because pressure from veterans groups, and veterans around the country have said that this is unacceptable, so we need to continue the pressure to VA.

They're making steps. They have to move faster. Secretary Shenseki got to show strong leadership and continue to hold people accountable. We have to move this ball forward. Our veterans have served nobly in combat, and they should not have to come home and face the red tape.

PHILLIPS: Let me ask you. You know, you mentioned this idea of seeking out Steve Jobs or Bill Gates or heck, we should contact war and buffet. I mean, has anybody tried to reach out to these guys to say, hey, could you just advice us, show us how to run this like a successful business? I mean, you bring up a really good point. We shouldn't be using staples and paperclips when it comes to 1 million cases backlogged, and our men and women have to wait a couple of years to get their money.

RIECKHOFF: They have. They started to bring new folks in and that's a good step forward. Craig Newmark, the founder of Craig's list sits on their board and has been invited recently a number of times to come down to the VA and help them figure how to use technology to improve the way they serve their customers. That's a good step forward, but actually implementing those ideas across this antiquated bureaucracy is going to be very tough. It's $100 billion, second only to the Pentagon.

It's very hard to fire people, and right now, for the most part, the culture has been focused on quantity of processing claims rather than quality, so we really need to shift the mindset at the VA. Change the culture and that's going to be, I think, the hardest part. If we do, we're going to serve veterans much better, and we can really turn the page on the problems of the VA that erupted after Vietnam and it really played it ever since.

PHILLIPS: OK. You bring up such a good point. We don't want to treat these men and women like we did our Vietnam vets. I mean, looking at PTSD dying by suicide, we have to be more proactive.

Paul Rieckhoff, always great to talk to you. If you don't know about Paul's website, check it out, Iraq & Afghanistan Veterans of America, fantastic organization. Paul, thanks.

RIECKHOFF: Thank you, Kyra. We appreciate it.

PHILLIPS: Double whammy of a downed economy. Americans lose their jobs and then lose their homes. We're going to tell you about a new plan to save them from foreclosure.

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PHILLIPS: It's a downward spiral, all too common among many Americans: out of work, out of money and soon out of their homes. But help could be on the way, a new plan that would allow homeowners to stay in their home even if they have no income.

Personal finance editor, Gerri Willis will tell us about this. So what's the proposed program Gerri?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi, Kyra.

Yes, it's interesting. The Mortgage Bankers Association of all people came out with this idea for helping people who lose their jobs and lose their income. Remember, this is the old-fashioned way that people lose their homes to foreclosure, they have no income, they can't pay their mortgage.

But what the MBA is suggesting is that mortgage payments get reduced for nine months and then you're re-evaluated every three months. Ultimately, you're going to pay something like a third of your income, 31 percent of whatever you have coming in, even if that's an unemployment check and then ultimately you pay it back because you're put into the president's Making Home Affordable plan.

Now, it's notable here that this program does not work unless Treasury signs on to it. Because what they want to do is borrow money from the Treasury, so again, our tax dollars at work to make loans to people so that they can make this program happen.

Now, it's notable here that the Treasury Department is thinking about a lot of programs to extend to Making Home Affordable program, help more people out there because the jobless has been one of those groups of folks who's been missing in all of this. We haven't had a plan really to help them out.

One of the things Treasury is thinking about right now is banning foreclosure unless there is some kind of effort at a modification; the banker and the borrower sit down and have a real conversation about whether or not that loan can be modified. At the end of the day it looks like Treasury is going to make some kind of decision in the days and the weeks ahead and we'll certainly be following that as it happens -- Kyra.

PHILLIPS: So how does the program compare, Gerri, with other federal initiatives to help out homeowners that have been struggling?

WILLIS: Well, what's interesting about this is Making Home Affordable had a goal of helping some four million people, right? Well, not that many people were helped and in fact, only 116,000 were permanently modified. So we've been trying to find ways that the people can get helped. We tried a lot of different programs, as you remember. We talked about a non-legislative effort that was several years ago.

President Bush had programs that's been very difficult to get traction for a lot of reasons but mostly because this is a very complicated issue. Now faced with the possibility of lot of jobless people losing their homes and even prime rate borrowers coming in another wave of possible foreclosures in the next year or so there's a real pressure for Treasury to find yet another solution to this problem -- Kyra.

PHILLIPS: Gerri Willis, I appreciate it.

Police officers drinking on duty, but they're not getting in trouble.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's very illegal, but it's not that many drinks.

UNIDENTIFIED FEMALE: It's that illegal?

UNIDENTIFIED FEMALE: Yes, it's very illegal.

(END VIDEO CLIP)

PHILLIPS: Oh illegal, yes, but no one is going to jail, at least not this time.

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PHILLIPS: Police pounding drinks and they call it training. Officers in Dayton, Ohio, actually encouraged to get drunk; not just tipsy, but full on blasted. They did it so their fellow officers could practice dealing with drunks. I wonder if anyone got socked in the nose?

In Moore, Oklahoma police are a little red-faced, shall we say, over a car thief. It seems the guy took their car while he was handcuffed. Here is the dash cam video; you can actually see the guy jump out of the backseat and into the front. Police had just tasered him to get him out of his car, but here is the best part.

While he is speeding away, he used the cop's cell phone to call his girlfriend. Hey, honey, I just stole a police car, what are you doing? Can I pick you up? But then he hit the curb rolled the car, you've got to be careful driving with handcuffs while talking on the phone. Well he's locked up now and the officer who had his car stolen he has been reassigned.

Rob Marciano makes your job look easy.

ROB MARCIANO, AMS METEOROLOGIST: Yes it does, I'm just thinking you can't quite get the 10 and two when you are cuffed. And you got the bracelets on and maybe like 11:30 and 12:30.

PHILLIPS: You just have to -- you have to drive slower and you have to make bigger turns.

MARCIANO: Bigger turns.

PHILLIPS: Yes, exactly, twirls.

MARCIANO: Good stuff.

Hey, Kyra -- let's talk about what's going on across the northeast. We've got this low that continues to sit and spin. And it's been trying to weaken, but it hasn't done so quite rapidly and it's been trying to kind of sneak away but it hasn't done that really either. So it's kind of locked into a blocking pattern and we continue to see these snow bands redevelop over the same area.

So what we're looking for is probably another four, maybe eight inches of snow in some spots from Philadelphia to New York. Philly will see last (ph) but they'll see a fair amount of wind. D.C. won't see much snow at all but they're under a wind warning actually until 6:00 tonight. So this storm certainly doesn't want to quit.

We've got a number of warnings and watches that are posted from Maine all the way back through parts of North Carolina. Winter storm warnings with more snow piling up and winds will continue to be an issue as well.

All right, we've been talking also about the airports; just an absolute disaster for New York airports. This doesn't even take into account what's going on at La Guardia; thousands of flights cancelled there. Five-hour delays at JFK, so take several good books or a couple of movies and Philadelphia and San Francisco seeing some action also.

All right, let's talk about this storm and why it's been so remarkable. We have had a big old age to block out in the ocean and that causes this thing to actually go northwest. And now it wants to kind of loop around and get out to sea and that can't happen soon enough.

West Coast, good morning, folks who live in northern California getting some rain later on today. This storm actually will finally bring some snow to the Olympics but what it will also do is invigorate the southern branch of the jet stream, which means, Kyra, looking ahead towards next week we could see another storm right up the Eastern Seaboard.

We'll try to get through this one safe and sound first. It's a bit of a mess out there.

PHILLIPS: All right, thanks, Rob.

MARCIANO: All right, see you.

PHILLIPS: Those creative minds at PETA. What will they think of next? Check out the billboard that they want to put up near Tiger Woods' house. Can you see why his lawyers have pretty much neutered the idea?

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PHILLIPS: OK, need your help on this one. Check out the pic, lower right. What do you think? Does the little boy need to go into the light or has someone been playing with Photoshop? It looks like the ghost of the little rascals.

Here's the story. A builder in England was tearing down an old school and took some pics with his cell phone. He only saw the ghostly image after he put the pictures on his computer. The school had a reputation for being haunted, so is this proof?

We've got a lot going on this morning and our CNN crews are covering all the angles for you. Let's get to Ed Henry at the White House -- Ed.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, they came, they saw, they debated at that health care summit, a big one here at the Blair House across from the White House yesterday. Now it seems like Democrats are determined to use that maneuver of reconciliation to try to push through the president's health care plan but it's going to be a little tougher than expected. I'll have that story next hour. POPPY HARLOW, CNNMONEY.COM: And we're going to follow up on health care. A lot of disagreement at that summit, but we're going to focus on one area of possible agreement, letting people buy their insurance across state lines hopefully saving them some money in the meantime. In the meantime supporters say it could lower prices by creating more competition. Others say it could mean higher premiums. We're digging deeper in the next hour.

REYNOLDS WOLF, AMS METEOROLOGIST: And I'm Reynolds Wolf in freezing Philadelphia, where the snow is coming down and the wind is picking up. We'll bring you the full story coming up after the top of the hour.

PHILLIPS: Thanks, guys. Also ahead we're going to tell you about a race against the clock on Capitol Hill. The Senate needs to act fast or one million Americans could be losing their jobless benefits.

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PHILLIPS: All right baseball fans. What happens when you're beaned by a hot dog? You take a base or what? No, you take a lawyer in this case. Yes, the man is actually suing the Kansas City Royals. He said that the team's mascot, Slugger, hit him in an eye with that delightful mix of meat by-products last year. The plaintiff claims it gave him a detached retina and a cataract. That's one bad dog. He wants more than 25,000 bucks for damages. The "Kansas City Star" calls the lawsuit a sign of the apocalypse.

All right. Take a look at this billboard idea from PETA because it might never see the light of day. Yes, PETA getting a little snarky with the cheetah, Tiger Woods. Trying to make a point that you ought to spay or neuter pets, keep them out of trouble so they won't have to have awkward new conferences where they won't take any questions. This was going to go up near Woods' home in Florida. Shocker of shockers, PETA put the idea on hold after a little conversation with Tiger Woods lawyers.