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Campbell Brown
Stimulus Bill Signed; Detroit Cuts Jobs
Aired February 17, 2009 - 20:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAMPBELL BROWN, CNN ANCHOR: Hi, everybody.
Breaking news tonight: Just hours after the president signed the historic stimulus bill, two big carmakers slam the brakes on thousands of jobs. We're going to explain what General Motors and Chrysler revealed today coming up in just a moment.
But, first, bullet point number one: Let's hear directly from President Obama. He signed the $787 billion stimulus package a few hours ago, cautioning that it is only a first step out of a deep hole.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I don't want to pretend that today marks the end of our economic problems, nor does it constitute all of what we're going to have to do to turn our economy around.
But today does mark the beginning of the end; the beginning of what we need to do to create jobs for Americans scrambling in the wake of lay-offs; the beginning of what we need to do to provide relief for families worried that they won't be able to pay next month's bills; the beginnings of the first steps to set our economy on a firmer foundation, paving the way to long-term growth and prosperity.
(END VIDEO CLIP)
BROWN: We are breaking down who is going to get all of that stimulus money, a state-by-state look, with a number of particularly cash-starved states resorting now to desperate measures.
And bullet point number two tonight: the bad news we mentioned out of Detroit. Just an hour ago, General Motors announced plans to cut 21,000 American jobs, while asking the government for another $16 billion in bailout money.
And, earlier today, Chrysler revealed plans to slash 3,000 jobs, while clamoring for another $5 billion from taxpayers. It all comes on the heels of a brutal day on Wall Street, where the losses added up to about $400 billion, putting the Dow at its lowest level since the beginning of the recession.
Bullet point number three tonight, we have also got some breaking political news, trouble for brand-new Illinois Senator Roland Burris, the man picked to succeed President Obama. Politico.com is reporting the Senate Ethics Committee may open a probe now, after Burris admitted he did attempt to raise money for former Illinois Governor Rod Blagojevich while seeking that Senate seat.
And, finally, bullet point four tonight: my NO BIAS, NO BULL interview with always outspoken Donald Trump. The casino group that bears his name filed for bankruptcy today. Yes, even the Donald is feeling some pain right now. What is really going on that made both the Donald and his daughter resign from the board, we will explain all that coming up as well.
Tonight, though, the political debate is far from over, but the president's stimulus package is signed, sealed and delivered. So, how exactly will the $787 billion help you? The president tried to spell it out this afternoon.
Listen.
(BEGIN VIDEO CLIP)
OBAMA: while this package is composed mostly of critical investments, it also includes aid to state and local governments to prevent layoffs of firefighters or police recruits.
(CHEERING AND APPLAUSE)
OBAMA: Recruits -- recruits like the ones in Columbus, Ohio, who were told that instead of being sworn in as officers, they were about to be let go.
It includes help for those hardest-hit by our economic crisis, like the nearly 18 million Americans who will get larger unemployment checks in the mail. About a third of this package comes in the forms of tax cuts, by the way, the most progressive in our history, not only spurring job creation, but putting money in the pockets of 95 percent of hardworking families in America.
(APPLAUSE)
(END VIDEO CLIP)
BROWN: And since you are undoubtedly one of those hardworking families the president just talked about, let's break it down.
Here with us for that is chief business correspondent Ali Velshi. Ali is in Philly, Philadelphia tonight.
And, so, explain it to us. Bottom-line it, Ali. How does the plan actually help all of us?
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Well, Campbell, the president just talked about tax cuts. That's a portion of it. We will talk about that shortly.
But the biggest part of the stimulus bill, the $800 billion, is spending, or what some people call investing. But it is the typical infrastructure rebuilding, money for things that are supposed to make our economy better over the long term, but will directly result in people getting employed. The second biggest chunk of the stimulus bill is -- is sort of the safety net, the money that goes to people who have had -- fallen on hard times, unemployment benefits being extended, COBRA benefits, food stamps, things like that, the safety net side of things.
And the third largest part, about a third of the bill is tax cuts. Some of those are to businesses to create jobs. Some of those, the part the President Obama said will get to 95 percent of working Americans, is a tax credit that goes to individuals. It's actually not a tax credit. It's a payment you will get, $400 for an individual, up to $800 for a household. It will be divided over a few checks meant to stimulate the economy by causing you to spend that money, biggest stimulus bill we have ever seen.
And depending on where you stand, wherever you stand on this, Campbell, it's a monumental day. It's a landmark bill.
BROWN: And, Ali, I want you to hear this question that came from one of our I-Reporters, Doug Monty of Clearwater, Florida. And he makes an interesting point about spending on infrastructure. Let's listen.
(BEGIN VIDEO CLIP)
DOUG MONTY, I-REPORTER: We are not really going to be replacing the jobs that were lost. We're going to be -- we are creating new jobs through infrastructure projects, which is fine I guess for the short term. But long term, we're still going to be -- when those projects are done, these people are still going to be out of work and we are going to be back in the same hole we are in now.
(END VIDEO CLIP)
BROWN: So, his question there, is this ultimately a temporary fix?
VELSHI: It is a really -- it's a very sound question, because that's what people think. OK, so we're going to build roads and tunnels and bridges and other things. We're going to fix hospital records. We're going to do all -- fix the schools up. What is that going to do in the long run?
Something to keep in mind is we have had an infrastructure deterioration in this country for some time. Advanced cultures depend on an advanced infrastructure. So, when you build a new road or you build a new bridge or a tunnel, what that does is that introduces business to that area. It makes it appealing for people to live there, so it brings spending and commerce into an area.
Ultimately, you are right. It's not the long-term fix. But it does actually do things. You also get an investment in things that last a lot longer. So, there is a lot of benefit to infrastructure building. There is an age-old debate, though, Campbell, about whether the best dollar spent to stimulate the economy is done in terms of direct spending that give people jobs, building infrastructure projects, or giving people more money in tax breaks, so that they can spend it as they see fit.
And as you can see, that debate hasn't been resolved. It's about two-thirds on one side, one-third on the tax cut side.
BROWN: Right.
VELSHI: Some say may not be enough of either. Most people do say, Campbell, we're going to need more of both.
BROWN: We have got about 30 seconds left, Ali, but let me ask you about the other big issue today.
VELSHI: Yes.
BROWN: We learned GM seeking $16 billion in aid, Chrysler another $5 billion. And together both companies plan on cutting a combined 50,000 more jobs. What is going on?
VELSHI: Yes. Well, today, they had to provide their blueprint for how they are going to get out of this mess. They had to provide it.
And what has happened since they got the first part of the bailout is, the credit situation has not improved. So they have not sold more cars. And they have got to extrapolate based on new data. That new data is not very positive. These are not layoffs that are announced where they have told the government in order to get out of the mess and be able to repay the government, this is what they may have to do.
More layoffs, or more talk of layoffs is not what we needed right now. But the situation in the auto industry has not improved since that first loans -- since the first loans were made to them -- Campbell.
BROWN: All right, Ali Velshi for us tonight -- Ali, thanks so much, as always. Appreciate it.
Already, we should tell you, the money is being spent, I mean immediately. In Missouri, repair work on a bridge started just minutes after the president signed the stimulus, one of three projects slated to begin immediately in that state, and not a moment too soon.
Tonight, states from coast-to-coast are feeling the brunt of the country's combined housing, unemployment and financial crises. And some states are in such distress, they're already taking drastic action.
Tom Foreman is breaking that down for us tonight -- Tom.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): From the Pacific to the Atlantic, from the majestic North to the sunny South, state governments are in serious trouble. The housing collapse hit home sales. Home sales hit contractors. Contractors hit suppliers. And tax revenues and jobs were lost every step of the way.
At the National Conference of State Legislatures, Corina Eckl has never before seen so many states in so much trouble.
CORINA ECKL, NATIONAL CONFERENCE OF STATE LEGISLATURES: This is an equal-opportunity recession. States in virtually every part of the country are suffering. And even those states that really started out kind of strong, they were avoiding some of these problems, the energy states, not anymore. Even the energy states are starting to report problems.
FOREMAN: In California, a $42 billion budget deficit has 20,000 state workers facing layoffs, projects postponed, offices closed.
UNIDENTIFIED FEMALE: This is a budget that is painful.
FOREMAN: In Kansas, state tax refunds, Medicaid reimbursements, and school money all were facing possible delays.
STEVE MORRIS, KANSAS STATE SENATE PRESIDENT: We have to make absolutely sure that we are doing everything that needs to be done to protect the state's financial stability.
FOREMAN (on camera): In all, the latest survey by Conference of Legislatures find 43 states started this year short on funds and for most it has only gone downhill. They have tried to make up the difference with expanded gambling, with delayed construction projects, hiring freezes, fee and tax increases, too.
But almost all of it has failed to regain lost ground, merely serving as a firebreak against worse troubles.
(voice-over): Even if the stimulus plan works well, it could be months, a year, maybe more, before state budgets bounce back.
OBAMA: There you go.
(CHEERING AND APPLAUSE)
ECKL: We might see more of those kinds of actions next year. It's hard to say how many more states will take that kind of action this year.
FOREMAN: And all of that could make it even harder for consumers to regain their confidence to start buying and digging the economy out of its troubles coast-to-coast.
(on camera): One bright note in all of this, I talked to the IRS today and said, look, with more states talking about delaying tax refunds, is there any danger our federal tax refunds will be delayed this spring? And the answer was, absolutely not -- Campbell.
(END VIDEOTAPE)
BROWN: All right, Tom Foreman for us tonight -- Tom, thanks. And a little programming note for you for tomorrow night. Personal finance wiz Suze Orman is going to joining me for the NO BIAS, NO BULL interview tomorrow night. She will also be taking your e-mail and I-Report questions. So, record a video question for us, if you want. And send it to us using the I-Report link on CNN.com/Campbell.
Tonight, a troubling new twist in the saga of Senator Roland Burris. And, for his Democratic colleagues, it may be the final straw. We are "Cutting Through The Bull" on that one.
And Donald Trump folds his hand after the company that runs his casinos files for bankruptcy. He's going to tell us why in our NO BIAS, NO BULL interview when we come back.
(COMMERCIAL BREAK)
BROWN: Now we are "Cutting Through The Bull."
The recently appointed senator from Illinois, Roland Burris, asked us to look beyond the Blagojevich scandal and judge him independently. Many people did. Well, it turns out we probably shouldn't have.
Burris, you will recall, was impeached Governor Rod Blagojevich's gift to the people of Illinois. One of Blagojevich's final acts before he was thrown out of office was choosing Burris to take President Obama's U.S. Senate seat.
Plenty of people cried foul at the time, arguing Burris should not be seated. But Democratic senators gave him the benefit of doubt and ultimately welcomed him to the club. It turns out, they probably shouldn't have.
Burris, who initially said he never tried to raise money for Blagojevich while lobbying for the Senate seat, now has admitted he did try to raise money for Blagojevich, at the request of the governor's brother.
He says the only reason he didn't tell us is that we didn't ask him. But it turns out that's not exactly true either. He was asked a number of times and dodged the questions.
Republicans are already calling for his resignation. And Politico.com is reporting the Senate Ethics Committee will likely launch an investigation.
Burris still claims he has done nothing wrong and says he welcomes the investigation. But any of us who give him the benefit of the doubt this time around ought to know better.
We're going to have the latest details on the breaking news in the Burris case coming up in our "Political Daily Briefing."
Plus, Republicans and the stimulus: Is the GOP gambling on becoming the party of no? And A-Rod comes clean about using performance-enhancing drugs in a drama-packed press conference you got to see to believe.
(COMMERCIAL BREAK)
BROWN: President Obama sounded optimistic in Denver today as he signed the $787 billion stimulus package into law. But it wasn't all sunshine and rainbows. The president made it very clear we are not nearly out of the woods yet. Take a listen.
(BEGIN VIDEO CLIP)
OBAMA: We will need to do everything in the short term to get our economy moving again, while at the same time recognizing that we have inherited a trillion-dollar deficit, and we need to begin restoring fiscal discipline and taming our exploding deficits over the long term.
None of this will be easy. The road to recovery will not be straight. We will make progress, and there may be some slippage along the way.
It will demand courage and discipline. It will demand a new sense of responsibility that's been missing from Wall Street all the way to Washington.
There will be hazards and reverses. But I have every confidence that if we are willing to continue doing the critical work that must be done, by each of us, by all of us, then we will leave this struggling economy behind us and come out on the other side more prosperous as a people.
(END VIDEO CLIP)
BROWN: Theoretically, something you would think something everybody could get behind, but You would be wrong about that.
CNN national political correspondent Jessica Yellin has more on the party that is out of power right now and may be ready to pounce.
(BEGIN VIDEOTAPE)
JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT (voice-over): President Obama is taking a victory lap.
OBAMA: We have begun the essential work of keeping the American dream alive in our time.
YELLIN: And so are the Republicans who voted against the stimulus.
REP. ERIC CANTOR (R-VA), HOUSE MINORITY WHIP: Every Republican in the House voted against this bill for one simple reason. We believe that this Congress can do better.
YELLIN: In this new Internet video, House Republicans brag that their united opposition to the stimulus will launch their political comeback as fiscal conservatives. Many believe they were hurt by years of massive budgets under President Bush. The last year Republicans ran Congress, they backed almost a trillion dollars in discretionary spending.
ED ROLLINS, CNN SENIOR POLITICAL CONTRIBUTOR: I think they're back fighting on issues that they're comfortable with. And at the end of the day, their constituencies, their donors, their supporters are going to be very pleased that someone is looking out for tax dollars.
YELLIN: But Democrats see something more sinister, that Republicans want the president's stimulus plan to fail, that they are in fact banking on failure.
Rush Limbaugh led the charge.
(BEGIN AUDIO "THE RUSH LIMBAUGH SHOW")
RUSH LIMBAUGH, RADIO TALK SHOW HOST: I don't want this to work. I hope he fails.
(END AUDIO CLIP)
PAUL BEGALA, CNN POLITICAL ANALYST: Republicans are first betting against Barack Obama, which is a bad bet, believe me. And, second, I think they're betting against recovery. You know, Rush Limbaugh says it: "I want this president to fail." And that seems to be what their bet is.
YELLIN: It's a familiar refrain. Not long ago, Democrats were the ones accused of banking on failure, when they opposed increased spending in Iraq.
REP. JOHN BOEHNER (R-OH), HOUSE MINORITY LEADER: Trying to tie the hand of our troops and try to ensure, frankly, failure in Iraq.
YELLIN: For years, opposing the war in Iraq was a political risk for Democrats, who were struggling to win over those security voters. Now Democrats believe Republicans are doing some gambling of their own by standing nearly united against President Obama's economic agenda.
BEGALA: Even if they're right, it's hard to see them prospering by simply saying no.
YELLIN: But Republican leaders say they're saying no on principle, not on politics.
REP. MARSHA BLACKBURN (R), TENNESSEE: It is painful to see the recession and to hear about jobs being terminated and individuals losing their jobs. And we all want something done. It boils down to being, what's the right thing to do?
YELLIN: So far, the numbers are with the Democrats. The latest Gallup poll shows support for the stimulus has grown 7 percent since President Obama hit the road promoting it. (on camera): Bottom line, Democrats now own this stimulus, and the fate of both parties rests with the success or failure of this massive bill.
Jessica Yellin, CNN, Washington.
(END VIDEOTAPE)
BROWN: And joining me here in New York to talk about this battle of political wills and purposes, we have got "Daily News" correspondent, Errol Louis, also Republican strategist Ed Rollins, both CNN contributors, joining me. And then, in Washington, "TIME" magazine editor at large Mark Halperin is with us as well.
Guys, welcome, everybody.
Mark, let me start with you.
How much do Republicans run the risk of looking like they want President Obama to fail?
MARK HALPERIN, CNN SENIOR POLITICAL ANALYST: Well they run a big risk there, Campbell.
I would like to answer first, though, not as a political analyst, but as an American. As an American, I think both parties are making a mistake by not going the extra mile on the stimulus bill and in their rhetoric now to try to find common bipartisan solutions. I think the Republican Party is making a mistake if they're worried about political advantage.
As a political analyst, I think it is also a bad idea. I think if they came forward with real plans to cut the deficit, rather than just being the party being against Obama, that might be courageous and effective. But all they're doing now is saying no. They're doing it without leaders, without breakthrough ideas. I think it's a big mistake.
BROWN: How do you -- do you agree with that, Ed?
ROLLINS: Well, first of all, now we have committed this amount of money, we all certainly hope it works and we don't have another round. And, obviously, as Americans, we all want it to work. We want it to work for your children, my children.
I think the difference, though, is, we weren't invited into the process. And it's nice to say, come forward with proposals. We were never invited in the room. And the president invited a few to the Super Bowl. He made a couple speeches to them. But until we have the opportunity to govern or the opportunity to really offer proposals, we're not going to pounce.
We basically are going to go out and try and protect the taxpayers' money and make sure that these programs don't become permanent programs. BROWN: But how do you explain this rift between Republican governors? Because they like this plan. They are supporting this plan vocally. They need the help.
(CROSSTALK)
ROLLINS: They're sitting there with very significant shortfalls. Governor Schwarzenegger has got the biggest shortfall of all, $45 billion.
BROWN: But aren't those the -- aren't they the guys on the front lines of this crisis? If anybody should know...
ROLLINS: They're on the front line. But they're not -- basically, they have overspent their own money. And they have to reset the priorities.
Is the federal government going to take over all state programs? In the bill, we are going to build for the first time, at the federal level, local schools. We have never done that. Now, are we going to stop at this bill, or are we going to always build schools? That's a very -- that's a $100 billion add-on here to a $59 billion federal program.
So, it's a question of, do we do things in the short run and are we basically able to get away from this two years, four years, eight years? Otherwise, the federal government is going to take on every role in the country.
BROWN: Well, and, Errol, to Ed's point, you had the press secretary, White House press secretary, today not even willing to rule out another stimulus plan.
(CROSSTALK)
ERROL LOUIS, CNN CONTRIBUTOR: Well, that's right. Economists across the board are saying not if, but when.
When the president says that there is $2 trillion missing in demand and that the government has to step in, what he is really talking about is that he expects $2 trillion worth of stimulus to be necessary at some point.
So, yes, we're certainly going to see it again. And we're going to have this argument all over again.
ROLLINS: We have another trillion dollars. I mean, next week, he presents a budget. Now, most of the budget was made up by Bush. But it's his budget. It will have in excess of a $1 trillion shortfall, meaning that the revenues will -- the spending will exceed by over $1 trillion, as it did this.
There's $2 trillion more that is being spent and borrowed than we have today in the game.
BROWN: Well, Mark, let me ask you, you hear him talk so much about transparency, so much about accountability. But when you are talking about this kind of money, how on earth do you make concessions for that? I mean, how do you -- how are you transparent when you are talking -- when you are into the trillions?
HALPERIN: Somewhere, Campbell, there's a 16-year-old student reporter who will be investigative reporters 10 years down the road still investigating how all this money was spent.
It is a lot of money. It is going to go out. There are going to be problems. I think one thing that Barack Obama is doing that is politically smart and is substantively smart is saying to the American people, we are going to have to experiment. We are going to have to try different things.
And he's got to balance optimism and some caution. There is no way there is not going to be waste, fraud and abuse with all this money gushing out of Washington. Republicans would be smart to be a watchdog on that, but so would Democrats.
BROWN: So, how much time does he have -- Errol, I will ask you this -- to maneuver? Because some of this money is getting to people right away. But, by and large, it's going to take some time before it really gets out there, before people start feeling the effects of this?
LOUIS: Sure, it will take some time. He owns it now.
I think the cycle to look at are the midterm elections. I think by election season next year, he will want to be able to point to some results in key states. And so that becomes a political calculation, but also an economic one. There is a lot of discretion that is going to be here, especially with the education funding. They're going to direct that money to where they think it can do the most good to expand, I think, the Democratic political base going into next year.
That would be -- that would be my advice to the president. And I assume that his advisers are telling him that.
BROWN: All right, guys, we have got to end it there.
But, Ed Rollins, Errol Louis, and Mark Halperin, thanks. Appreciate it.
No man is an island, the poet said. And that's never sort of truer during hard times. Tonight's story of the ripple effect takes us to Florida, where a former soldier is hoping for a change of luck.
And you also, we should let you know, can be part of tomorrow's NO BIAS, NO BULL interview with financial expert Suze Orman. Submit a video question now at CNN.com/Campbell.
(COMMERCIAL BREAK)
BROWN: Time for our "Political Daily Briefing."
And Joe Johns is in Washington for us tonight with all the details.
Joe, as we told folks earlier, Politico.com reporting Senator Roland Burris is facing a possible ethics investigation. And a lot of buzz about this. What's the latest?
JOE JOHNS, CNN SENIOR CORRESPONDENT: There sure is, Campbell.
In recent days, there's been a lot of confusion over whether Senator Burris admitted or denied trying to organize a fund-raiser for former Governor Rod Blagojevich. The way it looks right now is that the senator apparently has made some contradictory statements.
Last night, Burris told reporters he had had some conversations about it with the former governor's brother, but Burris said he didn't cross any lines.
(BEGIN VIDEO CLIP)
SEN. ROLAND BURRIS (D), ILLINOIS: What did I tell his brother? "I am interested in the Senate seat. I cannot contribute any money to you, nor can I raise any money to you."
I mean, I had the foresight to tell his brother that, because I thought it would be a conflict of interests.
(END VIDEO CLIP)
JOHNS: But, Campbell, just moments after those comments, the senator seemed to be saying something else.
He apparently told a few reporters off-camera he did in fact discuss fund-raising with the governor's brother. According to "The Chicago Tribune," Burris said -- quote -- "Sometime shortly after Obama was elected, the brother called. And now, in the meantime, I talked to some people about trying to see if we could put on a fund- raiser."
The latest comments from Burris have Republicans in the state legislature and in the U.S. Senate up in arms, some calling for his resignation. Burris continues to say he hasn't done anything wrong and even welcomes an investigation, if it will clear the matter up.
BROWN: We shall see what happens on that front.
Joe, another story we're hearing a lot about that there may be some sour grapes between former Vice President Dick Cheney and his old boss George W. Bush. What's it all about?
JOHNS: Well, Campbell, the "New York Daily News" is reporting several former Cheney staffers saying the former VP is "furious" with President Bush over his refusal not to pardon Cheney's long-time friend and chief of staff, Lewis "Scooter" Libby before leaving office. The paper quotes one Cheney loyalist as saying, Cheney "went to the mat and came back and back and back at Bush. He was still trying days before Obama was sworn in." Just one day, of course, after becoming a private citizen, the vice president himself told the conservative publication, "The weekly Standard," that Libby was "the victim of a serious miscarriage of justice, and I strongly believe he deserved a presidential pardon. Obviously, I disagree with President Bush's decision."
So, Campbell, it's probably unlikely those two will be vacationing together anytime soon. There is, of course, duck hunting.
BROWN: Oh, as always, Joe Johns.
JOHNS: Sorry.
BROWN: One more for you. Sarah Palin's daughter, Bristol, sat down for her first interview. This is since she had the baby. Tell us what she said.
JOHNS: Yes. Well, Bristol says she loves being a mom to baby Tripp, but she wishes she hadn't gotten pregnant at such a young age.
(BEGIN VIDEO CLIP)
BRISTOL PALIN, GOV. SARAH PALIN'S DAUGHTER: I wish it would happen in like ten years so I could have a job and an education and be like prepared and have my own house and stuff. But he brings so much joy, I don't regret it at all. I just wish it would happen in ten years rather than right now.
(END VIDEO CLIP)
JOHNS: Bristol went on to say that telling her parents she was pregnant was "harder than labor." Bristol also said she remains unmarried and that she and the baby's daddy, Levi Johnson, have discussed marriage but nothing is in the works.
Campbell, one other interesting nugget, Governor Palin was kept in the dark about the interview until one day before the taping. Bristol who is 18, decided to sit for the interview on her own. And I guess that's the age of majority. We know about that as parents.
BROWN: Yes, indeed. Joe Johns for us tonight. Joe, thanks very much.
Years of silence, now over for baseball star Alex Rodriguez.
(BEGIN VIDEO CLIP)
ALEX RODRIGUEZ, YANKEES THIRD BASEMAN: I knew we weren't taking Tic Tacs. You know? I knew that it was potentially could be something that perhaps was wrong.
(END VIDEO CLIP)
Hear more from the hitting powerhouse and his emotional meeting with reporters and teammates. And at the top of the hour, former President Bill Clinton sits down with Larry King. When does he think we're finally going to pull out of this recession? We'll find out what he says when we come back.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
MARIAM WAINEES, 8TH GRADE, GEORGE RYAN MIDDLE SCHOOL: Dear President Obama, despite the bliss (ph) experience by many over your historic victory, I can't help but feel a bit of anxiety over your presidency. Although you have succeeded in now at least temporarily uniting Americans, your presidency will be no stroll in the park. So I have some advice for you.
In the midst of all this pressure you face, I ask you to trust yourself because you are a man with a good head on his shoulders and a man of good character. I think your chances of meeting and even exceeding your expectations will increase considerably if you follow your gut. Best of luck. Sincerely, Mariam Wainees.
(END VIDEO CLIP)
BROWN: Something tells me the commander-in-chief is thinking pretty much the same thing. That's Mariam Wainees of Queens, New York, doing a little mind reading there.
All over the country, children writing letters to President Obama. To send us your letter, look for the iReport link on our Web site, CNN.com/campbell.
It sold luxury toys like but like so much it's now become an example of the ripple effect, the economic ripple effect. We're going to show you life after "The Sharper Image." But first, Gary Tuchman is here with tonight's "Briefing" -- Gary.
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Hello, Campbell.
At least 12,000 more U.S. troops will be heading to Afghanistan. That's just a start. CNN has learned that President Obama has approved a bill to put 17,000 troops who will be deployed in southern Afghanistan to stop Taliban-supported fighters from making their way across the border from Pakistan. About 38,000 U.S. troops are currently serving in Afghanistan. The increased troop levels are expected to last a minimum of three to four years.
You'll be surprised to hear a Houston police officer only suffered minor injuries after a suspect rammed his patrol car from behind during a high-speed chase on a freeway, sending the cruiser into a center divider. The suspect hit two other police cars during the pursuit before finally being captured. The chase started after officers responded to a domestic violence call.
"I knew we weren't taking Tic Tacs." Those words from New York Yankee slugger Alex Rodriguez as he admitted to reporters he took performance enhancing drugs. Today at the team's Florida training camp, A-Rod described injections he was repeatedly given by his cousin, while playing for the Texas Rangers from 2001 to 2003, but he says he didn't think they were steroids and turned emotional when thanking teammates for their support.
(BEGIN VIDEO CLIP)
ALEX RODRIGUEZ, YANKEES 3RD BASEMAN: I screwed up big time. But I think the only thing I ask from this group today and the American people, is to judge me from this day forward. That's all I can ask for.
(END VIDEO CLIP)
TUCHMAN: Rodriguez denies taking human growth hormone or any other banned substance since leaving the Rangers. His news conference came after "Sports Illustrated" broke the news earlier this month that he tested positive six years ago.
(END VIDEO CLIP)
TUCHMAN: Sound sincere. But one thing to keep in mind, Campbell, is that -- it's very notable that you never hear these guys having these kinds of news conferences before they're caught.
BROWN: Yes, funny that. And what exactly did he think he was being injected with if it wasn't steroids? What are the other options?
TUCHMAN: Don't know that but I will tell you one thing, Campbell, that a lot of people say, hey, they all do steroids. That's not true. A lot of these guys, most of these guys don't and a lot of them are still in the minor leagues. They can't make it to the majors because they don't do the steroids, and that's why the people who take the steroids are cheaters.
BROWN: All right. Gary Tuchman for us tonight, Gary, with strong views on this too. Appreciate it.
The Donald is here for my NO BIAS, NO BULL interview as his casinos face some bad luck. And speaking of interviews, now is the time to get your videos in for financial expert Suze Orman. She's here tomorrow. Upload your iReport questions right now at CNN.com/campbell.
(COMMERCIAL BREAK)
BROWN: Today, President Obama pronounced his bill a $787 billion stimulus plan, the most sweeping economic recovery package in our history. But it's not the end of the story, just the first chapter. Listen to what he said moments before signing.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Today does mark the beginning of the end. The beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs. The beginning of what we need to do to provide relief for families worried that they won't be able to pay next month's bills. The beginning of the first steps to set our economy on a firmer foundation paving the way to long-term growth and prosperity.
(END VIDEO CLIP)
BROWN: As we wait for all that money to kick in, millions of Americans are out of work. They have stopped spending and that puts other businesses and other jobs in jeopardy. And we've been traveling across the country to see how people are meeting the challenge. We call this project, "The Ripple Effect."
David Mattingly is in Miami with another part of the story for us tonight -- David.
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Campbell, when "The Sharper Image" closed its retail stores last year, it threw a big curve into the career of one of its young managers. Earning up to $50,000 in good times, that X manager and his family are now triggering a ripple effect as they learn to live on less than half that.
(BEGIN VIDEOTAPE)
MATTINGLY (voice-over): If you want to know what Mike Corcoran can do for you, just ask him.
MICHAEL CORCORAN, FORMER MANAGER, THE SHARPER IMAGE: I'm a 12- year experienced business professional with ten years in management, and two years in financial service industry, who has consistently placed in the top one percent of any organization I ever worked with.
MATTINGLY: Unemployed for six months, his family savings depleted, his life is a blur of job postings, applications and interviews until something comes through. He, his wife, and two young boys are learning how to make do in the land of do without.
CORCORAN: I used my military discipline to keep my mind focused on there is a goal at the end.
MATTINGLY: This former 82nd Airborne specialist doesn't just manage unemployment, he attacks it. The first move was obvious. Hunker down.
Ripple effects from spending cuts are hitting all their favorite places like the gym they used to go to. First of the year membership is flat across the country. Not a good sign for the coming year.
The Corcorans next move was cut losses. They tap public assistance for unemployment benefits, medical, food and daycare subsidies for their kids.
JESSICA CORCORAN, MICHAEL CORCORAN'S WIFE: As soon as we needed them and realize that they were out there, then I applied for everything across the board.
M. CORCORAN: Yes.
J. CORCORAN: And just, whatever help we could get. MATTINGLY: So many people have applied for help in the Corcorans home county that for the first time, there's a waiting list of hundreds of names. With those kinds of obstacles, the most important part of the Corcoran strategy is no surrender.
Mark's (ph) doing management consulting pro bono hoping to build contacts. Jessica has two part-time jobs while she tries to finish nursing school. She graduates in May.
(on camera): What are you going to do with that first paycheck?
M. CORCORAN: Go to Cafe Vico.
J. CORCORAN: Right.
MATTINGLY (voice-over): The one simple pleasure from their old life they missed most is dining out at the Italian restaurant where they dated and held their rehearsal dinner. Owner Marcos Rodrigues misses them too. He says business is down 20 percent. That means no raises and fewer hours for employees.
MARCOS RODRIGUES, OWNER, CAFE VICO: Well, we need to be patient and work as hard as we can to overcome.
MATTINGLY: But this is one ripple effect that hasn't overwhelmed kindness.
(on camera): He wanted us to give this to you. He wants you to come by. He wants to buy you dinner.
J. CORCORAN: Awesome.
M. CORCORAN: That's very cool. I really appreciate that.
J. CORCORAN: Thank you, Marco.
M. CORCORAN: Thank you, Marco.
(END VIDEOTAPE)
BROWN: And you know, David, the gift certificate, a nice gesture but they're going to need more help than that. I mean, now that the stimulus package is official, I mean, what kind of help can the Corcoran family expect?
MATTINGLY: From that stimulus package, they're going to see about a $25 increase in their unemployment check. That's not a lot but at this point every little bit helps. But more important, the White House predicts that the congressional district where they are here in south Florida, will see 7,000 new jobs. That gives them a better chance of finding a regular paycheck. And they're looking for some indirect effects from this.
The stimulus package is supposed to pump money back into the Florida economy in the form of road projects and transit improvements, $1.4 billion worth in the next four months. That kind of spending could make some significant ripples of its own.
BROWN: All right, David Mattingly for us tonight. David, thanks.
And we should let you know, tonight, Larry King has a special guest, former President Bill Clinton. And he is very bullish on the economy. Listen.
(BEGIN VIDEO CLIP)
BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: People have been betting against America since we started. George Washington has got a bunch of freezing soldiers. They don't even have shoes in the winter. Everybody that's bet against America has lost money.
We're going to come back from this. So I would like them to say we haven't hit bottom yet, but we're going to come out of this.
(END VIDEO CLIP)
BROWN: Bill Clinton on "LARRY KING LIVE." That is at the top of the hour.
And Donald Trump says the stimulus is all well and good, but that it's not going to fix what ails our economy. Hear his prescription and why he wishes he could take his name off one Trump branded company. Donald Trump, the NO BIAS, NO BULL interview when we come back.
(COMMERCIAL BREAK)
BROWN: Here's an economic sign of the times, Trump Entertainment Resorts, the company that runs three Atlantic City casinos bearing the Trump name filed for Chapter 11 bankruptcy today. Not the best news coming just two weeks before the new season of Trump's reality series "Celebrity Apprentice" premieres. Donald Trump himself quit as chairman of the casino firm on Friday and currently owns just 28 percent of the company.
Joe Johns has our look at the man, the brand, and Trump's troubles. Take a look.
(BEGIN VIDEOTAPE)
JOHNS (voice-over): If you ask people, anywhere in the world to name the biggest high-profile businessman in America, chances are they'd all come up with the same name -- Donald Trump. You see the Trump name plastered on some of the glitziest skyscrapers in New York and around the world, on golf courses, even on his own brand of vodka. The Donald has managed to parlay his fame into a network reality series "The Apprentice" with exactly the catch phrase you'd expect.
(BEGIN VIDEO CLIP)
DONALD TRUMP, BUSINESS MAGNATE: You're fired.
(END VIDEO CLIP)
JOHNS: Donald Trump may not be the wealthiest man in America, although as of last year, "Forbes" magazine estimated Trump's personal fortune to be around $3 billion. But what goes up must come down.
And today, Trump Entertainment Resorts, owners of the Trump Taj Mahal, the Trump Plaza, and the Trump Marina Casinos in Atlantic City filed for bankruptcy protection. Trump himself stepped down from the board of directors on Friday, along with his daughter, Ivanka.
He's had his ups and downs with several of his businesses forced to file for bankruptcy in the 1990s. That's always been a sore subject for The Donald. In fact when Rosie O'Donnell used the "B" word on "The View" back in 2006, it sparked a legendary feud.
(BEGIN VIDEO CLIP)
ROSIE O'DONNELL, FORMER CO-HOST, "THE VIEW": He had inherited a lot of money. Wait a minute. And he's been bankrupt so many times where he didn't have to pay --
UNIDENTIFIED FEMALE: A lot of people have been bankrupt.
O'DONNELL: People beneath him who he owed money to got shorted out of the money, but he got to again try again and again. And you know what saved him the second time after his father died? With that money, he paid off all his bankruptcy. This is not a self-made man.
He's going to sue me, but he'll be bankrupt by that time so I won't have to worry.
(END VIDEO CLIP)
TRUMP: I'm worth many billions of dollars. Now, it's not to brag about. I'm worth many billions of dollars. It's very simple.
She said I was bankrupt. Now, I never went bankrupt. She said I filed bankruptcy three times. I never filed bankruptcy. I never went bankrupt, but she said I went bankrupt.
So probably I'll sue her because it would be fun. I'd like to take some money out of her fat (bleep) pockets.
JOHNS: Trump may be facing something of a reversal of fortune, but don't cry for him. He's still part owner of the Miss Universe pageant. He's still married to wife number three, the ex-model Melanie Knauss. He's still chairman and CEO of the Trump organization. And as he told Larry King just over a week ago --
TRUMP: You go up. You go down. You have recessions. And if you look, if you just look at the charts over the period of 150 years, you've had good times, you had bad times.
JOHNS: Joe Johns, CNN, Washington.
(END VIDEOTAPE) BROWN: So hear what Donald Trump himself has to say about his troubles. He is tonight's NO BIAS, NO BULL interview when we come back.
(COMMERCIAL BREAK)
BROWN: Donald Trump can talk his way around anything, even bankruptcy. Yes, the company that runs three Atlantic City casinos that bear his name is filing for bankruptcy but that doesn't bother The Donald. We spoke on the phone just a little while ago about Trump's troubles and I asked him about today's news as well. Take a listen.
(BEGIN VIDEOTAPE)
BROWN: Donald Trump, welcome to you. Good to have you here.
DONALD TRUMP, BUSINESS MAGNATE: Hi, Campbell.
BROWN: So explain this to us. You, of course, branded yourself the most successful businessman in the world. And yet, this is the third time Trump casinos has filed for bankruptcy. What are people supposed to think about all this?
TRUMP: Well, I never branded myself as that but a lot of people do. The fact is that Trump Entertainment, really I have nothing to do with the management, I don't run the company. I'm not on the board of the company anymore. It does have the right to use my name.
I made an offer to buy the company, the whole company, because I own a piece of the company but it's -- it's a piece of a publicly traded company. But I made an offer to buy the company. The offer was turned down. But I don't manage or run the company, Campbell. So you know what they do is what they do.
BROWN: But let me ask you something, though, is a piece in "The New York Times" today that was critical, and Floyd Norris wrote that, "Many of the company's problems stem from it being loaded with debt years ago, in order to put cash in Mr. Trump's pocket." What do you make of that? How do you respond?
TRUMP: Well, I don't respond. I mean I had the company private years ago and it was very successful when I had it private for a long period of time. And ultimately it was taken public. And when it's taken public, you take money out and that's one of the things that is done when you take it.
It's like putting a mortgage on a house. So, I mean, lots of things could be said but I invested money wisely. I take money and I invested it wisely.
BROWN: You know, President Obama today signs his stimulus package to try to get the economy back on track. What do you think about it? Do you think it's going to work?
TRUMP: Well, I think the economy is very, very sick. The economy is so much bigger than that stimulus package that maybe it's just -- it's a very small, it's a very small token. But something has to be done.
The biggest problem is, though, Campbell, that the banks are loading up with money from the government and they're not loaning it out. If you have a credit rating of A-plus and you want to build a project or do whatever you want to do, the banks aren't loaning out the money that they're taking in from the government. And until they start loaning out money and are forced to loan out money, we're never going to get better. This economy is going to be absolutely terrible as it is now and probably get worse, so they have to force the banks to loan money.
BROWN: So how do they do that? I mean, that is you hear people talk about it all the time. What's it going to take to get them to free up credit again?
TRUMP: Well, you don't give them the money unless they loan it out. I mean, you see these banks going out and buying, you know, banks in China for $6 billion and going and buying other things that they shouldn't be doing. They should be loaning money and therefore creating jobs. And they're not doing it. They're taking in money but they're not loaning it out.
(END VIDEOTAPE)
BROWN: That is Donald Trump, the one and only. And his show, "Celebrity Apprentice" starts March 1st on NBC.
Another thing to tell you about, Anderson Cooper, Ali Velshi and some of the sharpest money minds around are digging into the stimulus bill on the "CNN Money Summit." That is tonight. Nearly $1 trillion, but what will it mean for you? The "Money Summit" is going to break it all down tonight at 11:00 Eastern.
(COMMERCIAL BREAK)
BROWN: If you want a better grasp of what all those billions being pumped into the economy are going to mean for you, stay tuned this evening for another special edition of "AC 360," the "CNN Money Summit" with Ali Velshi and other sharp financial minds. On the agenda, among other things, that endangered specie is the full time job. They are disappearing by the tens of thousands. Take a look at this.
(BEGIN VIDEO CLIP)
ANDY SERWER, EDITOR, "FORTUNE": I don't think this plan is big enough. I think we need to spend more money. You know, we spend $600 billion plus on the war in Iraq. We can spend more than a trillion on trying to get this economy straight.
You know, in the 1930s, the unemployment rate went to 25 percent. The economy contracted by 30 percent. The stock market was down 90 percent. What we're trying to do right now is to prevent that from happening. That's going to cost a lot of money. ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: David Walker, former comptroller general of the United states, do you think we need to spend more money, or is this going to do it?
DAVID WALKER, FMR. U.S. COMPTROLLER GENERAL: We need to spend more money. We need to spend it more intelligently. Basically, this is not a stimulus bill. All right.
Probably maybe a third of this is a stimulus bill that's why they don't want to refer to it as a stimulus bill. People say this is a down payment. I think they're being honest.
(END VIDEO CLIP)
BROWN: That is 11:00 Eastern time tonight. A special edition of "AC 360. "The Money Summit" making sense of those staggering numbers and staggering problems.
That is it for us tonight. "LARRY KING LIVE" starts right now.
