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New Nuclear Deal With Russia; Fighting Cancer Without Insurance; Homeowner Relief Plan
Aired March 26, 2010 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Time now for your top-of-the-hour reset.
I'm Tony Harris in the CNN NEWSROOM.
It is noon in Washington, where President Obama caps his week with a second major political victory -- a new nuclear arms treaty with Russia
Still in Washington, the Obama administration steps up efforts to keep Americans out of foreclosure and in their homes.
And in New York, a conversation with the Grammy-winning songstress and actress Jill Scott.
All right. Let's get started here.
Arms reduction deal with Russia now a reality. In just 13 days, President Obama will travel to Prague to sign a nuclear treaty with his Russian counterpart. The deal slashes the number of nuclear weapons by about a third.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I just concluded a productive phone call with President Medvedev, and I'm pleased to announce that after a year of intense negotiations, the United States and Russia have agreed to the most comprehensive arms control agreement in nearly two decades.
Since taking office, one of my highest priorities has been addressing the threat posed by nuclear weapons to the American people. And that's why last April, in Prague, I stated America's intention to pursue the peace and security of a world without nuclear weapons, the goal that's been embraced by presidents like John F. Kennedy and Ronald Reagan.
While this aspiration will not be reached in the near future, I put forth a comprehensive agenda to pursue it, to stop the spread of these weapons, to secure vulnerable nuclear materials from terrorists, and to reduce nuclear arsenals. A fundamental part of that effort was the negotiation of a new strategic arms reduction treaty with Russia.
Furthermore, since I took office, I've been committed to a reset of our relationship with Russia. When the United States and Russia can cooperate effectively, it advances the mutual interests of our two nations and the security and prosperity of the wider world.
(END VIDEO CLIP)
HARRIS: Our players on this big story, Kate Bolduan at the White House; Foreign Affairs Correspondent Jill Dougherty with us from New York; and from Moscow, CNN Senior International Correspondent Matthew Chance.
Kate, let's begin with you.
Look, obviously this has been a long time in the making. How does this announcement, this deal fit into the Obama administration's overall approach to foreign policy?
KATE BOLDUAN, CNN CORRESPONDENT: Yes. Hey there, Tony.
Well, as you can imagine, it's very interconnected. And this, as we heard today, is a very important component, a very major part of President Obama's foreign policy.
Jill and Matthew will be able to tell you just about the U.S./Russian relationship and how complex of a relationship it really is. But in terms of the broad outlines and what this means for the president's foreign policy, and what his view is going forward, you remember he mentioned -- the president did in that sound bite -- that in April of last year, when he was in Prague, he laid out really his long-term vision for a nuclear-free world. And we heard over and over today from the heavyweights in his administration, Secretary Clinton and Secretary Gates, and from the president himself, that this is a step in that direction.
And it's not only from a technical standpoint in the U.S. and Russia both agreeing to reduce their nuclear arsenals, but by also sending a message to the world, as Secretary Clinton said, specifically to Iran and North Korea, that non-proliferation is a top priority for the U.S. and for Russia, and that they are united in that. And together, they say that it also puts them in a position of leadership going forward and gives them strong credibility moving into the nuclear security summit, especially the president, that he will be hosting here in the beginning of April.
So it's very interconnected, very much incremental. But a big step, they say, towards his long-term goal.
HARRIS: Sure, this idea of this use of diplomacy and soft power. It can take some time to bear fruit.
Jill, let me turn to you now.
You covered the Russians for a long time. How big a deal is this? And are things really warming up here with the Russian government?
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: It's a big deal, Tony, because, after all, as the president said, it's almost two decades, almost 20 years, 19 years exactly, that they haven't had a new agreement. This expired. They were really, really working hard to do it.
And why? There are different levels, but one is to simply reduce weapons.
There are thousands of weapons right now pointed at each other between the United States and Russia. And Russia and the United States are not enemies, but one mistake could literally destroy our countries. So that's very important.
Then the relationship, it could get better because they have established some level of trust in order to verify what the other guy has. And that's part of this treaty. And now on the next level, right now the world is actually a much more dangerous place than it was even 10 or 15 years ago, at the end of the Cold War, because now everybody and his brother is thinking about getting nuclear weapons because they are scared.
Number one, you have Iran and North Korea as issues. But you have other countries that say I think we ought to, you know, get them to defend ourselves.
So there's actually a trend in the opposite direction to get more nuclear powers out there. So if the United States and Russia can send that message that they're going in the opposite direction, then it might encourage others. If they take the right step, other countries might take it, too.
HARRIS: All right. Good stuff, Jill.
Let me turn to our senior international correspondent, Matthew Chance, in Moscow.
And Matthew, what's the reaction there?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, you know, there's a sense here, I think, Tony, that this just could be one of those events which you look back on and you say this changed the fundamental nature of the relationship between Russia and the United States. Of course, they've overcome in order to get to this point enormous problems in agreeing, you know, kind of this reduction in nuclear weapons, not least of which was, of course, Russia's objections to deployment of elements of the U.S. missile defense system in Eastern Europe. They've basically found a compromise on that.
The Kremlin also saying that this treaty opens up the way to much deeper strategic cooperation between the U.S. and Russia in the future. Of course, more negotiations on arms reductions, but also, perhaps, closer cooperation on issues like Afghanistan and how Russia can help there, and that very controversial issue of Iran's nuclear program -- Tony.
HARRIS: Our senior international correspondent, Matthew Chance, in Moscow. Our foreign affairs correspondent, Jill Dougherty, in New York. And Kate Bolduan for us at the White House.
Thank you all. Appreciate it. Thank you.
New help today for people at risk of losing their homes. The Obama team announced a two-prong plan to help turn the tidal wave of foreclosures sweeping the United States.
One would cut or, in some cases, temporarily eliminate, payments for people who are out of work. Those who owe considerably more than their home is worth could see their principal reduced. Others may be eligible to refinance into FHA-backed mortgages. This new approach potentially could help three to four million homeowners, according to the Treasury Department.
Are you one of them? We will look at the program's requirements with real estate expert John Adams later, right here in the CNN NEWSROOM.
The fixes are in. The deal is done. And the reconciliation bill on health care is headed to the president's desk. The final vote on changes taken last night by the House, the last bit of business before members headed home for two weeks.
(BEGIN VIDEO CLIP)
REP. STENY HOYER (D), MAJORITY LEADER: I expect the president to sign this early next week. It will complete the process of passing a bill that has been in the making for literally a century, and certainly for decades. A bill that accomplishes the inclusion of 32 million Americans in access to affordable health care in America, and which will affect every American who now has insurance by making sure their prices remain stable because of the spreading of insurance risks among so many additional Americans.
(END VIDEO CLIP)
HARRIS: With all the bickering in Washington over health care, it is easy to lose sight of the personal stories. Millions of Americans struggling without medical insurance, and the toll it takes on an individual level.
Poppy Harlow spoke with a cancer survivor about the high price of staying alive. And she joins us now with more on that conversation.
Poppy, good to see you.
POPPY HARLOW, CNNMONEY.COM ANCHOR: Good to see you, too, Tony.
I mean, we have just heard so much from the politicians, from the pundits. But the people that we really need to be listening to is the real people, the people that don't have insurance, that are going to get it now. Some like the bill. A lot of folks don't like the bill.
We spoke with one man, Russell Coyne, who is sort of in the middle. He says we needed reform, but this one may not be exactly what we needed. He fought and battled successfully cancer back in 2005, Tony, with no insurance.
Take a listen to a little bit of our conversation.
(BEGIN VIDEOTAPE)
RUSSELL COYNE, CANCER SURVIVOR: I just was playing the odds. I figured at 50, OK, I'll quit smoking and I'll, you know, start getting health insurance. You know, I'll start paying for it.
Well, I got sick at 48. I found a lump in my throat, and I thought it was an infection.
HARLOW: What did you think when you heard it was cancer and you knew that you didn't have health insurance?
COYNE: I knew I had to do something. And I didn't know what it was. But another friend had told me about this clinic program at Bellevue, it would be my only choice. So I went there and applied to see if I qualified for it.
HARLOW: And because you didn't have health insurance, you were able to work with the clinic. Because I look at these bills for your treatment, I mean, $75,000 here, $56,000 here.
COYNE: Yes.
HARLOW: I mean, how much were you bringing in a year?
COYNE: Almost $40,000.
HARLOW: One of these bills is almost two years of your income.
COYNE: Yes.
REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: The bill is passed.
HARLOW: The health care bill, you support it?
COYNE: Yes. The first time I heard President Obama speak about the health care bill, I was like, well, why hasn't it been done before? You know, why? It sounds perfect. You know, it sounds like what this country needs.
HARLOW: Is it perfect?
COYNE: The way it is now? I don't think so. I don't think it goes far enough. But I'm so glad it passed. And I feel that everybody deserves to be covered by health care.
There should be no fear. There shouldn't be staggering bills like this, you know, that people have to -- and that was another thing I told them at the beginning of my treatment -- I'm not going to go into debt over this. I'm not. I can't afford it.
It's not worth it to me. If I have to go into debt to stay alive, it's just not worth it.
(END VIDEOTAPE) HARLOW: And Tony, it's that part of the conversation that really stood out to me. He said, "If I have to go into debt, it's just not worth it." He said he would rather live out his remaining days in dignity than have to fall deeply into debt.
That was shocking, but I would guess that it's something that millions of Americans also battle every single day, Tony. He is now cancer free, and he paid about $50,000 of his own money in medical bills, more than a year of his income, on his own -- Tony.
HARRIS: Boy, that's terrific stuff.
What do you have on our monitor there at CNNMoney.com? What's there on that plasma next to you?
HARLOW: Yes. Well, everyone is writing in. Everyone has so many questions.
Some people think it's great that health care reform passed. Some people need it. But they all want to know exactly what it means for them. So people keep writing in to us, and we're posting our answers right there for them on the site.
HARRIS: Terrific. HARRIS: Poppy, good to see you. Have a great weekend. Thank you.
HARLOW: You too. Thanks.
HARRIS: So you owe more on your house than it is worth. New relief is on the way. I will talk with a housing expert about whether you qualify for the president's new plan.
But first, though, our random moment in 90 seconds.
(COMMERCIAL BREAK)
HARRIS: Homeowners desperate for relief on their underwater mortgages will be getting a little more help. The president today announcing a new plan to help stop the foreclosure crisis.
One couple who really needed this help, Garet and Robin Hartshorn. Garet was laid off from his quality control job at Ford two years ago after the plant shut down. He is falling behind on his mortgage big time, and lots of other bills as well.
(BEGIN VIDEO CLIP)
GARET HARTSHORN, BEHIND ON MORTGAGE PAYMENTS: They know that I'm trying to make my payments. And so, basically, I'm one month behind on my mortgage payment right now.
I probably owe $10,000, maybe $12,000 in credit cards. I've got doctor bills that are behind by $500 or $600. I'm running low on my medication, and that's another $500 that I need to spend that I don't have right now. And, of course, you know, what money I do have is to take care of the immediate needs -- lights and heat and food. (END VIDEO CLIP)
HARRIS: So what kind of relief will the president's mortgage plan provide?
Joining me by Skype, OK, from St. Simon's Island, Georgia -- good to see you -- it's real estate broker John Adams.
John, as always, thanks for spending time with us.
JOHN ADAMS, REAL ESTATE BROKER: My pleasure.
HARRIS: Yes, it's good to talk to you.
I want to run through some pretty stark facts here. And then a question to you.
Almost 14 percent of borrowers in America are behind on at least one mortgage payment, or they're in foreclosure. Right?
And here's an even scarier number. Twenty-four percent of homes with mortgages in the United States have negative equity. You know, that means homeowners owe more than the home is actually worth.
So, look here, John, what's weighing down the housing sector? Why has it been so difficult to stabilize this sector?
ADAMS: Well, we've had a double whammy. Not only have we seen property values declining dramatically, particularly in some parts of the country, but then we've gone into a prolonged period of unemployment. So you've got people like that last person, who is doing everything they can, but there's just not enough money to pay the bill.
The president's initiative announced today is directed at both of those people. One is somebody who is upside-down in their mortgage. The other is somebody who is unemployed and simply needs a break.
But the real news here, Tony, is that for the first time ever, the second part of this program, the one directed at the upside-down homeowner, is going to reduce the mortgage balance significantly. And this is something policymakers have really resisted for some time.
HARRIS: Well, John, talk about that for a second. You're right, policymakers have resisted it. I want to get to ultimately why that is the case. But we have heard economists and folks like you who work in this industry telling us for at least a year that something ultimately needed to be done to work on the principal, not just on the rate, but the principal.
Why has it taken us so long to get here? And I agree with you, this sounds like really good news.
ADAMS: Well, it's because the administration has been trying to walk a very fine line. On one side, you've got activists and lawmakers who say you're not doing enough. On the other side, you've got bankers and loan servicers who are saying, wait a minute, we entered into a contract with these people knowingly, and now you want us to just unilaterally cut the balance.
If you start cutting mortgage balances too much, and make it too easy, then everybody is going to line up and say, well, I want mine cut. On the other hand, if you don't do enough, then people will literally start to walk away from their houses.
And the administration has been walk that fine line. I think they finally have come to the conclusion they've got to get these balances down.
The big carrot at the end of the stick here is that if the lender will voluntarily go through this procedure, lower the mortgage balance to no more than 96 percent of the current appraised value, not then, but now, then they'll insure that loan as an FHA loan, which guarantees that even if the borrower defaults, the lender is going to get paid.
HARRIS: I think that is a great explanation of this, because we're at a place now, John -- and speak to this -- where defaulting on your mortgage is now, in some corners, a rational business decision for people. Isn't it? And then, if you would, talk about the consequences of simply walking away.
ADAMS: Well, it's unfortunate but true that in many cases, you may be better off -- and I stress "may be better off" -- literally going through the foreclosure process and trying to get the lender to release you from remaining liability. Now, we've got a problem here, and it's called a deficiency. Sometimes when you give the house back to the lender, if they sell it, and they sell it for less than is owed, which is, as you pointed out, the case right now with 11 million homeowners who are supposedly upside-down on their mortgages, the lender in many states has the right to come after that borrower later, years later, for the -- what's called the deficiency, and seek a judgment against them.
Now, some states -- for example, California -- you simply can't do that. The prevailing idea was that, look, lender, you took the house as collateral. That's it. You got the house back.
But in many other states, including Georgia, they do allow for deficiency judgments. And unless you go bankrupt against that, it can follow you for years.
HARRIS: Right.
Well, I tell you what, it got a touch in the weeds there at the end, but you make some really, really strong points here. And the this idea of doing something about the principal, it's an idea whose time has certainly come.
John, good to see you. Have a great weekend, sir. ADAMS: Thanks, Tony.
HARRIS: You're in a great spot of the country, so have a great weekend.
(NEWSBREAK)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
HARRIS: Boy, that is strong. I've got to catch up on my Jill Scott. With a voice that can hypnotize crowds, it is hard to hate (ph) on this Grammy Award winner singer, songwriter.
Jill Scott's successful career began just 10 years ago with the release of her double platinum album "Who is Jill Scott?" But today it goes beyond the recording studio.
On April 2nd, she will reprise her role as Sheila in the Tyler Perry film "Why Did I Get Married To?" And as a contributing columnist for "Essence" magazine, she tells it like it is in her "I'm Just Sayin'" column. But her most recent entry titled "The Wince" has raised some eyebrows, as Scott boldly, really, shares her thoughts on interracial relationships.
And she's joining me now from New York.
Jill, good to see you.
JILL SCOTT, SINGER: Good to be seen. How are you?
HARRIS: I am great.
I've got to tell you, so you have written -- look, let's just call it what it is. It's a provocative piece. You're a columnist. You're supposed to get folks thinking and fired up. And all right.
This peace for "Essence" called "The Wince," the moment a black woman realizes a together, strong black man is with a white woman. And you say the feeling is one of being betrayed.
Now, before I ask you to explain that feeling, I will tell you that in my early days as a radio talk show host in Cleveland, no topic produced more passion among my listeners then than the topic of black men and white women.
Explain "The Wince" and the feeling of betrayal you wrote about.
SCOTT: I really feel that it's the history of America that creates "The Wince." Slavery and separatism and all the racism, it's difficult when we see that, because we struggled together, fought together, went through civil rights together. And still, now, you know, struggling in our inner communities and our inner cities. It's a challenge.
And sometimes I feel that black women are really left alone. So there's this kind of quiet pain. It's quiet, but it's there.
I don't feel that way when I'm in London. I don't feel that way when I'm in Paris. I don't feel that way in Holland.
It's just the history of this United States hasn't necessarily been brushed away. And it can't be. And we have to deal with it.
HARRIS: Right. Well, how do you deal with it?
SCOTT: Face it. I mean, we can't -- we have to talk about things. We have to discuss things.
We should have heated debates. And this article, I'm just saying is an effort to spark heated debate so we can heal and move forward, or actually look at ourselves, pay attention to ourselves. It's important.
HARRIS: Well, but, Jill, you know, we have a hard time with really touchy subjects in this country. I know you have been because you're clued into the news. You've been watching the health care debate over the -- we have a difficult time.
We can't talk about race. We can't talk about health care. We've got folks -- it's crazy right now.
SCOTT: Yes, and the United States is crazy.
HARRIS: Well, you can talk about anything. I mean, and you're right, it's a little divisive right now. And we could use some civility.
But you didn't have to take on this subject. And we're going to show some messages, some comments. And you know the controversy you've sparked here. We'll show some of the comments to your piece.
Why did you take this on, Jill?
SCOTT: I'm going to take on a lot of different issues and thoughts and feelings. This is a black woman's magazine. And it's for everybody, but it's specifically the viewpoint of a black woman.
That's what I am. So I'm going to continue to write and critically write concepts, ideas, things that trouble us, frustrate us, make us wonder so that we can talk. Because if we don't talk, we don't heal. And that's my whole point and position. I have no issue or problem with interracial love. I'm all for love. Love is the most wonderful thing ever created. So I don't want people to get confused by this. I just wanted to discuss what that little pinch is, what that quiet little ouch, where that comes from.
HARRIS: Yes. Do you wince when you hear comments referring to you as a racist? Do you wince?
SCOTT: I don't wince because it's just incorrect. It's just wrong. I don't feel that way. I don't have any problems with people of other races. I believe that we should hold on to our cultures and share our cultures with each other. I don't like the whole -- the concept of being westernized and everybody is just one thing. I think culture and creativity and all the things that we have are important to us. We should hold on to those things.
HARRIS: Yes, a couple more questions for you.
SCOTT: But the love -- I could never be against love. Never. Never. It's ridiculous.
HARRIS: Hey, I want to throw up some of your videos and hear you sing a little bit in the background here. And as we talk about this tour with Maxwell, get started here pretty soon, right?
SCOTT: Yes. We're in New York, I think, March, April, May, June -- May 25th?
HARRIS: I think you're starting in -- yes, April 2nd or so. You're pretty soon. You're getting on the road here pretty soon.
SCOTT: Yes, May 21st (ph) is when we start.
HARRIS: How excited are you about the tour and working with that man? This is going to be a magical night for folks.
SCOTT: Yes, I think it's definitely going to be very -- very relaxing, very sensual, very powerful. And great music. Great music all night long.
HARRIS: Yes. And one final question.
SCOTT: I'm really excited.
HARRIS: You've got the movie "Why Did I Get Married Too."
SCOTT: Yes.
HARRIS: You're working with one of my good friends, Malik Yoba. A crazy guy. Fun guy. Love him. And you, in that first movie, were a real revelation. Did you always know you had that in you, that skill?
SCOTT: Well, I've been working -- I've been acting for 17 years, almost 18 now. So I just thank Tyler Perry for giving me the opportunity to show what I could do. I just was on "Law & Order" last night and I played a very dark character. I was excited about that as well.
HARRIS: Well, you're going to continue with the music, continue with the acting, just and continue writing. We will be following you.
SCOTT: I will.
HARRIS: Yes, yes. And it's provocative stuff. But that's what -- that's what, you know, columnists do.
Jill, it's good to see you. The best with everything you're involve in.
SCOTT: Thank you.
HARRIS: And the best with your boy, too.
This summer you can catch Jill Scott performing at this year's "Essence" music festival in New Orleans. The event takes place for July 2nd to July 4th. For more information, just visit essence.com.
(COMMERCIAL BREAK)
HARRIS: As always, CNN is your source for money news. Check out cnnmoney.com for the latest financial news and analysis. Our money team does a terrific job there.
Got to tell you -- oh, before we -- well, OK, that's fine. We're still looking for reaction and getting reaction to health care reform passing this week, right, and signed by the president. The lead story at cnnmoney.com, "country doctors, we quit."
Three hours into the trading day. Here's where we are. Pretty much flat for the day. The Dow is in positive territory, up four. And the NASDAQ, pretty much flat, down just a point. So kind of a mixed day so far.
Supporting efforts to get people to stop smoking and eat healthier food. That's part of what stimulus money is going towards. Josh Levs is here to follow up on that.
We talked about this a bit yesterday. Was it yesterday?
JOSH LEVS, CNN CORRESPONDENT: Yes, I got a follow up for you. It would be nice if everybody (ph) did that anyway, wouldn't it?
HARRIS: Right. Right.
LEVS: We didn't need to spend (ph) on that. Obviously it was a good thing.
So here's what we talked about. The CDC has distributed millions of dollars to states to support efforts in nutrition, physical activity, tobacco control.
A few examples for you. In Delaware, about a million dollars to educate leaders and decision makers about the benefits of increasing the price on other tobacco products, like cigars, smokeless tobacco, to equal the price of cigarettes.
And there's one out in Oregon. They got $3 million. And it's for a few things. One is a counter-advertising campaign targeted to vulnerable Oregonians. And they're also using some funds to support a policy proposal to increase tobacco price.
I also talked about New York, $284,000 to educate leaders and decision makers to promote a ban on trans fat. And there's this interesting situation in Wisconsin where lawmakers discuss trying to use some stimulus money to push lawmakers, basically, to push for a statewide ban on candy-flavored chewing tobacco and cigars. They voted that down there because they said that some felt -- they felt it was lobbying and the stimulus money should not be used that way.
So this is what we were talking about, this idea of lobbying efforts. Even though the money wouldn't be going to lobbyists. And we actually -- I know this is very me, but we all looked up the definition of lobbying, so you can see it there on the computer, conducting activities and influencing public officials, especially members of a legislative body on legislation. Thanks, Webster's.
Anyway, here's the thing. We got this from the CDC. And this is really interesting. They are saying to us, absolutely not. No stimulus money will be used for lobbying. And I want you to see what their wording is. They say that they will take actions, Tony, "All actions possible under law, including terminating the grant and penalizing all involved" if they find that any grantee using recovery act funds for lobbying.
They're also saying, all these grantees, all the ones getting money, are educated on these laws and that grantees in the program are scheduled for an intensive training session. Intensive training from the CDC from April through June to reinforce those instructions.
So, Tony, I'm now even more interested in this.
HARRIS: Yes. Yes.
LEVS: What we're going to do is we're going to follow how these projects play out specifically. What will they do to educate lawmakers and encourage certain policies, right, within the confines of what they're allowed to do. So we're going to look into this and hopefully, hopefully, the activities will ultimately help make our country healthier or something.
HARRIS: Nice. Nice. Josh, appreciate it. Thank you, sir.
LEVS: Thank you, Tony.
HARRIS: Grab your money with gusto and make it work for you. "The Help Desk" shows us a few tricks. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Checking our top stories now.
The U.S. and Russia have reached a new deal on arms control. President Obama says he will cut by about a third the number of nuclear weapons on both sides. The new strategic arms reduction treaty will last 10 years. The president's plan to sign it in 13 days.
The Coast Guard says it is going to take all weekend to clean up this mess. About 1,700 gallons of diesel fuel have spilled into the intercoastal waterway in Chesapeake, Virginia. A train apparently failed to stop, leaving the locomotive, as you can see here, dangling off the bridge. No one was hurt.
(COMMERCIAL BREAK)
HARRIS: Snoop Dogg on Larry King. OK.
Time to turn to "The Help Desk." Let's get to Poppy Harlow for more ways on how to best manage our money.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNNMONEY.COM: All right, time now for "The Help Desk," where we get you answers to your financial questions. Joining me this hour, Greg McBride, a senior financial analyst with bankrate.com. And Beth Kobliner, a money columnist at "Redbook" magazine.
Thanks for being here, guys. Appreciate it.
And let's get right to the questions. Byron wrote this in. Byron said, "we moved in 2006 and have a mortgage in good standing with good credit, but had to do a short sale in 2008 on the home that we moved from. Recently, we found out we need to move again, but we're told we can't secure another mortgage for 36 months because of that short sale. Are there any options to get another mortgage?"
Greg, what do you think?
GREG MCBRIDE, SENIOR FINANCIAL ANALYST, BANKRATE.COM: How about renting? I mean if you're going to be moving every few years, that's not really conducive to home ownership because of the high transaction costs that you're paying.
HARLOW: Right.
MCBRIDE: Renting for a few years will get you over that 36-month hump and then you can put your best foot forward in terms of getting a mortgage. If you absolutely have to buy right now, understand it's going to take a very significant down payment because of that situation.
HARLOW: Right.
MCBRIDE: You're also probably going to have to look towards something like a private investor who lends at elevated interest rates or a family member with deep pockets.
HARLOW: So it sounds like renting's the best option there for Byron.
All right. Bella also wrote us in. And Bella said, "I graduated from college in June of last year and have not yet found a job. I'm struggling to pay my student loans. What are my options for financial assistance?" Beth, she's young and can't find work.
BETH KOBLINER, MONEY COLUMNIST, "REDBOOK" MAGAZINE: Young and right out of school. A very common problem. First of all, don't default on those loans because it will haunt you pretty much forever with student loans and you typically can't get rid of them in bankruptcy, which is something a lot of people don't know.
Two things to do. First, she wants to contact the lender or the servicer who has her student loans and tell them she wants to defer those student loans, federal loans. Contact -- if she has private loans, which are more expensive, see if she can get what's called a forbearance, which allow her not to pay the loans for a certain amount of time.
And also, for federal loans, look into the income-based repayment plan. There are two great websites. Ibrinfo.org and finaid.org. These are new plans that allow you to pay not so much what you owe, but what actually you can afford to pay. Very much worth looking into.
HARLOW: OK. SO there is a lot of help out there for her right now.
KOBLINER: A lot of help. Yes. She's got to do her homework.
HARLOW: Right, do your homework and you have to know where to look.
KOBLINER: Yes.
HARLOW: Thank you guys so much. We appreciate it.
And it is all about getting you answers, of course, right here at "The Help Desk." Send us an e-mail to cnnhelpdesk@cnn.com. We might just get your question here next week. You can also pick up the latest issue of "Money" magazine. It is right there and it's on newsstands right now.
(COMMERCIAL BREAK)
HARRIS: Boy, the stuff we talk about in the break. OK. Time for a look at what's generating buzz on the web and the Internet. Ines Ferre is back for a look at what's hot.
What are folks talking about?
INES FERRE, CNN CORRESPONDENT: OK. Well, this is on Google. Harvard is offering free podcasts and videos on iTunes. The content ranges from lecture videos to music performances. And Harvard is not the only one doing this. Yale, Stanford, Brown, M.I.T., those are some of the universities that are offering free lectures. All this (INAUDIBLE) stuff.
HARRIS: (INAUDIBLE), really? Free material?
FERRE: Yes, you can actually go to Harvard
HARRIS: Right, right, without paying for it?
FERRE: Yes. Well, sort of.
HARRIS: Well, sort of.
FERRE: Sort of.
HARRIS: Hey, what's happening this Saturday? The lights are going out? Or should go out or
FERRE: Yes. This Saturday, Earth Hour 2010.
HARRIS: Yes.
FERRE: For one hour, you simply power down for an hour. It's to create more awareness about climate change, 8:30, p.m. to 9:30 p.m. And last year, some 4,000 cities in 88 countries took part in this. And, Tony, they're saying that this year it's going to be even more countries.
HARRIS: I bet. Yes, yes. Look, I'll play this weekend, no doubt.
In the meeting this morning, a lot of conversation about this. What's the story here with President Bush, right, wiping
FERRE: Exactly. President Bush in -- he actually was shaking hands with some earthquake survivors. And then, look there, there he's kind of wiping his hand on --
HARRIS: Oh, my.
FERRE: Yes, kind of like that.
HARRIS: Yes. Yes.
FERRE: So, anyways, Jeanne Moos actually takes the most unusual look at all of this. Listen to this.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT, (voice over): Bill Clinton, human handy wipe? With handy work like this while shaking hands in Haiti, comedians didn't even have to write a joke, they just rolled the video.
JIMMY KIMMEL, "JIMMY KIMMEL LIVE": President Bush, first time we've seen him in two months, this is what he does. He's the best.
MOOS: Former president's office had no comment on "hand wipe gate," though some floated alternate theories.
UNIDENTIFIED MALE: Signaling to Clinton that he was ready to move on. UNIDENTIFIED MALE: Check out what some soft core porn music does to the video. And Bush thought marriage should be between a man and a woman.
MOOS: Maybe the brouhaha over the back rub he gave Germany's chancellor led to a more subtle affectionate touch when it came to Bill Clinton. Former President Bush is known to be somewhat germaphobic. Who wouldn't be shaking all those hands.
Barack Obama writes in his book that when he shook President Bush's hand the first time they met, Bush "turned to an aide nearby, who squirted a big dollop of hand sanitizer in the president's hand. Not wanting to seem unhygienic," Obama wrote, "I took a squirt."
KIMMEL: And, by the way, if you're germaphobic, is Bill Clinton the best place to wipe your hands?
MOOS: Speaking of human hankies. Remember that's what they called the stranger who's shoulder Oprah cried on after Obama's won the election.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We saw a nation conquer fear itself.
OPRAH WINFREY, "THE OPRAH WINFREY SHOW": At one point I was just sobbing on his shoulder. Mascara everywhere. Anyway, thank you, Mr. Man, for letting me cry on your shoulder.
MOOS: Impersonators already tend to portray former President Bush
UNIDENTIFIED MALE, FUNNYORDIE.COM: Besides, when I put the Iraq War on my credit card, I never dreamed I'd be paying 28 percent in interest rates.
MOOS: As somewhat uncouth.
MOOS (on camera): If George Bush wiped his hand on Bill Clinton, and it's only an if, it wouldn't be the first time that he used someone as a human tissue.
MOOS (voice-over): Letterman loves to show the time George Bush cleaned his glasses on a staff member during a commercial break. You've got to hand it to the former president, that at least he's clean, or at least wipe up.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
HARRIS: A story -- a developing story we're following for you in the CNN NEWSROOM. We're getting reports of a South Korean navy ship sinking right now in the Yellow Sea near North Korea. We understand a rescue operation is underway. Additionally, we know that there are no immediate reports of casualties, but some sort of explosion may have occurred in the rear of the ship. That's just information that we're getting now. We're talking about a 1500-ton ship at this point. More details coming up in just a couple of minutes for you with Ali Velshi right here in the CNN NEWSROOM.
A small business owner facing big premiums for health insurance confronts some very, very stark choices. He may have to drop his own insurance to save his business. He is hoping that new health care reform law will help. Details now from CNN's Ted Rowlands.
(BEGIN VIDEOTAPE)
KENN BEARMAN, OWNER, THE ANIMAL STORE: This is the place that has every kind of animal under the sun, except for dogs.
TED ROWLANDS, CNN CORRESPONDENT, (voice over): Kenn Bearman has been in business for himself for the last 18 years.
BEARMAN: My idea of owning a small business was always to take care of the employees. And if you have a loyal employee, everything else will come to you. I thought I could always do health care for them, do benefits.
ROWLANDS: And he provided those health care benefits to his employees. But as the years went by and his costs of running his locally owned pet shop went up, he says he had no choice but to keep the health care for himself and his family and hire part-time employees.
BEARMAN: I stopped doing health care because at that time health care started going up to the point now where I'm spending $22,000 a year just for my immediate family.
He's about nine months old.
ROWLANDS: In fact, his premiums are so expensive, that last month he says he had to borrow from his retirement fund just to make the monthly payment on his health insurance.
BEARMAN: I started getting behind on and it was -- it was $1900 that I had to take from my IRA, which was a big decision. And now it's 30 days later and I'm getting behind again.
Rabbits are one of our more popular pet.
ROWLANDS: And now, as a result of the skyrocketing health care costs, Bearman may have to drop his own health care insurance in order for his business to survive.
BEARMAN: I have 30 days to decide. I don't know. It's a pretty scary thought. But the landlord is not going to wait, and my mortgage company is not. I need my house. So that's probably going to have to be a tough decision.
This is a macaw, baby macaw. Come on. ROWLANDS: After almost two decades of caring for the animals and his store, Ken hopes the future of health care will care for his family.
Ted Rowlands, CNN.
(END VIDEOTAPE)
HARRIS: As quickly as we can, let's get you to the next hour of CNN NEWSROOM from the man, Ali Velshi.
ALI VELSHI, CNN ANCHOR: Tony, have a fantastic weekend.
