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Lou Dobbs Tonight
Judge Sotomayor's Remarks; Obama Repaying Favors; Supreme Battle; Brink of Bankruptcy
Aired May 29, 2009 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN CORRESPONDENT: Thanks, John. Good evening, everybody.
The White House says Judge Sotomayor admits she made a mistake when she suggested a Latino woman would make a better judge than a white male. We will have complete coverage of this rapidly developing story.
Also new concerns about the safety of plastic drinking containers used by babies and children, more questions about the government's ability and willingness to protect your safety.
And the political and legal fight escalates over California's ban on same-sex marriage. Some celebrities are speaking out on the issue for the first time.
We begin with the controversy over Supreme Court nominee Judge Sotomayor. Now the White House today declared that Sotomayor now admits she made a poor choice of words in that comment that she provoked a storm of protests. In those comments in 2001 Sotomayor said in effect that Latino women would make better judges than white men.
Critics of Sotomayor blasted her for that remark. Former House Speaker Newt Gingrich called her a racist. Dan Lothian reports from the White House. Dan?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well hello, you know this is something that really had been building all week here at the White House, White House press secretary Robert Gibbs had been pounded by reporters and each time 100 percent of the White House was behind Sotomayor's comments, defending it this way, saying that she was talking about her own personal experience and how that influences her thinking and the White House would even point to the confirmation hearings for Justice Samuel Alito where he as well talked about how his background, his personal experience would influence his thinking. Well today we saw the first crack in that narrative, first from Robert Gibbs of the White House and then the president himself.
(BEGIN VIDEO CLIP)
BARACK OBAMA (D-IL), PRESIDENT OF THE UNITED STATES: I'm sure she would have restated it, but if you look in the entire sweep of the essay that she wrote, what's clear is that she was simply saying that her life experiences will give her information about the struggles and hardships that people are going through that will make her a good judge.
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I've not talked specifically with her about this, but I think that -- I think she'd say that her word choice in 2001 was poor.
(END VIDEO CLIP)
LOTHIAN: Now Kitty, you talked about how Republicans were really coming down very hard on these comments but it wasn't just Republicans, Democrats as well and that is perhaps where it started to turn, hearing from Democrats who said that the White House should just step up and say -- defend it this way -- saying that she misspoke, correct it, saying that it was a poor choice of words and then move on from there. That is what they did today but certainly it hasn't ended here, this certainly will be part of the focus of the confirmation hearings ahead.
PILGRIM: Thanks very much, Dan Lothian -- thanks, Dan.
LOTHIAN: OK.
PILGRIM: Well questions about Sotomayor go beyond her past comments. They also now include her association with certain advocacy groups. We will have more on that in a few minutes.
The White House tonight is paying close attention to the escalating military and diplomatic crisis over North Korea. U.S. intelligence agencies are watching new activity at a North Korean ballistic missile facility. There are suspicions North Korea may be planning another long-range missile test.
The regime of Kim Jong Il this week conducted a nuclear weapons test and fired six short-range missiles. U.S. and South Korean forces are on high alert. Defense Secretary Robert Gates says the United States is not planning to send more troops to South Korea at the moment. Gates declared the U.S. has sufficient forces to deal with North Korea if it does anything quote, "extremely provocative" as he put it.
The United States has about 28,000 troops in South Korea. Most of them are from the Army and the Air Force. Another 32,000 of our troops are based nearby in Japan, including a large contingent of Marines.
President Obama this week picked new ambassadors to Japan, France and Britain. They're all key allies. All three nominees are major fund-raisers for the Democratic Party. President Obama's choices are raising concerns that he is rewarding his political friends at the expense of career diplomats. Jill Dougherty has the report.
(BEGIN VIDEOTAPE)
JILL DOUGHERTY, CNN CORRESPONDENT (voice-over): It's an American political tradition. Contribute big bucks to a candidate, and the new president might make you an ambassador. Now career diplomats say it's time to end the spoils system. JOHN NALAND, AMER. FOREIGN SERVICE ASSN.: To send out a political fund-raiser or a sports team owner or used car company owner who has no relevant experience is taking a huge risk for the United States.
DOUGHERTY: A risk he says especially after 9/11.
NALAND: If that person has no experience with intelligence matters or security matters or military matters, something could happen and that ambassador could be the wrong person at the wrong time.
DOUGHERTY: So far, only five of Obama's 18 nominated or confirmed envoys are career foreign service officers. Some were major Obama supporters like Pittsburgh Steelers owner Daniel Rooney for ambassador to Ireland, and entertainment company head Charles Rifkin (ph) who raised half a million dollars for Obama, nominated for ambassador to France.
Most presidents choose about one-third of their nominees from outside the State Department. The American Foreign Service Association wants it to be just 10 percent. The Foreign Service Act of 1908 says "contributions to political campaigns should not be a factor."
Neither Rooney nor Rifkin (ph) has diplomatic experience but Rooney has broad connections in the Irish community. Rifkin's (ph) father was an ambassador and he grew up in French-speaking countries, plus some countries like the idea of having someone who they think has the ear of the president. Barack Obama admits he will make some political appointees as previous presidents have.
OBAMA: It would be disingenuous for me to suggest that there are not going to be some excellent public servants but who haven't come through the ranks of the civil service.
DOUGHERTY (on camera): And some political appointees work their entire lives in the diplomatic arena. For example, the president's NATO ambassador Ivo Daalder. He was on the NSC, the National Security Council and advised Barack Obama during the campaign.
Jill Dougherty, CNN, the State Department.
(END VIDEOTAPE)
PILGRIM: President Obama today addressed an issue that we've been reporting here for years, the rising cyber warfare threat to this country. Well the president declared he will appoint a new cyber security czar to the White House.
President Obama acknowledged the United States is not as prepared for hacking attacks as it should be -- Jeanne Meserve reports.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Hackers cut power to a skyscraper and then reprogram it to play space invaders in a spoof video on YouTube.
UNIDENTIFIED MALE: I shot you, man.
MESERVE: But cyber security is not a laughing matter.
OBAMA: It's now clear this cyber threat is one of the most serious economic and national security challenges we face as a nation.
MESERVE: Americans use the Internet to bank and shop and talk to one another, electricity, water, transportation, all depend on it. But every day there are attacks. The White House estimates in the past two years, cyber crime has cost Americans more than $8 billion and last year alone, hackers stole $1 trillion worth of business secrets.
Military and intelligence networks have been penetrated and tests have shown a cyber attack can destroy critical infrastructure like this generator. President Obama says the country is not prepared.
OBAMA: From now on our digital infrastructure, the networks and computers we depend on every day will be treated as they should be, as a strategic national asset. Protecting this infrastructure will be a national security priority.
MESERVE: The president will hand-pick a cyber security coordinator to integrate policies across government, work closely with the private sector and coordinate the federal response to attacks -- still unknown, who will get the job.
JAMES LEWIS, CTR. FOR STRAT. & INTL. STUDIES: If you get the wrong person or you put them in an office that doesn't have very much power, you can have the best plan in the world and it still won't work.
MESERVE (on camera): The plan is short on specifics, though the president says government will not dictate security standards to private industry and will not monitor private networks or Internet traffic. Security experts say they generally like the steps the administration is taking, but warn there are many more steps to take on the long road to securing the nation's cyber infrastructure.
Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE)
PILGRIM: The Department of Defense says hackers launch as many as three million cyber attacks each day against the Pentagon. Now there are suspicious -- many of those cyber attacks are launched from communist China. The Pentagon spent more than $100 million over the past six months trying to deal with the consequences of hacking attacks. Defense Secretary Robert Gates is now planning to create a military cyber command.
General Motors moves closer to bankruptcy. How big a role should government play in the carmaker's future? That is our "Face-Off" and the political showdown over Judge Sotomayor's exposes divisions in the Republican Party.
(COMMERCIAL BREAK)
PILGRIM: The White House today says Supreme Court nominee Sonia Sotomayor will have her first meetings with senators next week. Now Judge Sotomayor will meet with leading senators from both parties and as Brianna Keilar now reports Republican criticism of Judge Sotomayor is following two very different paths -- Brianna Keilar reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Those principles...
BRIANNA KEILAR, CNN CORRESPONDENT (voice-over): If Republicans inside Congress are cautiously critical of Sonia Sotomayor...
SEN. JEFF SESSIONS (R), ALABAMA: There are some troubling things that are going to have to be inquired into for us to do our job.
KEILAR: Some Republicans outside the Capitol are anything but. Rush Limbaugh slammed the Supreme Court nominee.
UNIDENTIFIED MALE: So here you have a racist. You might, you might want to soften that, and you might want to say a reverse racist.
KEILAR: Using Twitter, former House Speaker Newt Gingrich blogged "a white man racist nominee would be forced to withdraw. Latino woman racist should also withdraw." The comments drew a sharper review from John Cornyn, the man responsible for helping elect more Senate Republicans. He spoke on NPR.
SEN. JOHN CORNYN ( R), TEXAS: I think it's terrible. Neither one of these men are elected Republican officials. I just don't think it's appropriate. I certainly don't endorse it. I think it's wrong.
KEILAR: Republican strategist Ron Bonjean says the inflammatory comments are hurting the party's attempt to rebuild itself.
RON BONJEAN, REPUBLICAN STRATEGIST: This is the last thing that Republican members want right now on Capitol Hill. I mean they're trying to bring back the party. They're trying to boost their approval ratings and the last thing that they want to do is start trying to tear someone down and use words like racist.
(END VIDEOTAPE)
KEILAR: This argument that Republicans are having over Sotomayor is part of a larger argument they're having about which direction the party should go in if it wants to win elections -- Kitty.
PILGRIM: Brianna this topic seems to have a timetable of its own, but what are we looking for in terms of scheduled events next week?
KEILAR: Next week we are expecting the first meetings for Judge Sotomayor to take place on Tuesday. This is going to be, as we understand it, Democratic leadership and the top Democrat chairman on the Senate Judiciary Committee and then we are expecting that Judge Sotomayor will be meeting next week as well with Republican leaders in the Senate.
PILGRIM: All right, thanks very much, Brianna Keilar -- thanks Brianna.
Tonight the serious questions about Supreme Court nominee Sonia Sotomayor involve not only her past comments, her list of affiliations includes a number of organizations that are based on racial identity and that's raising concern about whether such affiliations are appropriate for a Supreme Court judge. Bill Tucker reports.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Judge Sonia Sotomayor's long list of professional affiliations are not secret. According to the American Bar Association, to which the judge belongs, she's also a member of the New York Women's Bar Association, then there's the Puerto Rican Bar Association, the Hispanic National Bar Association, the National Council of La Raza and the Latino Justice Puerto Rican Legal Defense and Education Fund. Miss Sotomayor wears her heritage on her sleeve to the aggravation of some and the praise of others.
RUSSELL ROBINSON, UCLA SCHOOL OF LAW: I think that she's being punished simply for being honest and being candid. I think that for everybody, whether you're white, black, Latino, Asian your race and your gender makes a difference in terms of how you see the world, in terms of how you view political issues, and how you see the law.
TUCKER: Professor Robinson points to Justices Thurgood Marshall and Ruth Bader Ginsburg as examples of other judges who are active in civil rights causes before ascending to the Supreme Court. Her critics argue that the judge has an agenda, an agenda that they say was exemplified in a speech she made eight years ago to a law conference saying quote, "I would hope that a wise Latino woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn't lived that life." Curt Levey is with the Committee for Justice which supports what it calls constitutionalist judges.
CURT LEVEY, COMMITTEE FOR JUSTICE: It's really hard to say in any individual case what motivates a judge, but she's on record as saying that she will allow her Puerto Rican heritage to influence her judging and that disturbs me more.
TUCKER: Critics also point to the lawsuit in New Haven, Connecticut by firefighters, who sued the city there saying that despite high scores of promotion tests they were denied promotions because they were white. A lower court dismissed the case and on appeal Judge Sotomayor voted with the majority on a three-judge panel to uphold that decision, but it has since gone to the Supreme Court and is expected to be ruled on soon.
(END VIDEOTAPE) TUCKER: Another issue that is expected to rile critics is Sotomayor's opinion on the Second Amendment of the Constitution. Judge Sotomayor earlier this year wrote that at the state level the right to bear arms is not a right that is guaranteed to individuals and already as you can imagine, Kitty, I'm getting a lot of e-mails from Second Amendment groups concerned about her position on gun owner rights.
PILGRIM: That's a big topic. Thanks very much, Bill Tucker.
Well there is new evidence tonight of health risks posed by a common plastic, a plastic that was cleared by the FDA and an 80-year- old Florida woman, a church treasurer, is arrested.
(COMMERCIAL BREAK)
PILGRIM: For the first time a study shows that drinking from polycarbonate bottles increases the level of a chemical, a damaging chemical in the body. BPA is found in plastic baby bottles, aluminum cans, refillable drink bottles and the chemical has been linked with heart disease, diabetes, neurological problems in babies. Louise Schiavone reports.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): Find a field of young athletes, you'll find plastic water bottles, reinforced for the rough and tumble with the chemical Bisphenol-A or BPA. Now a study overseen by a Harvard Medical School professor finds that consistent use of these hardened plastic containers leaves behind a significant chemical residue. Using student volunteers Professor Karin Michels ran the study.
KARIN MICHELS, HARVARD MEDICAL SCHOOL: The Bisphenol-A level increased by two-thirds, so by 69 percent and this is only from drinking from these bottles. We are all exposed to Bisphenol-A from other sources in the environment.
SCHIAVONE: Why does it matter? Because BPA developed more than 50 years ago as a synthetic estrogen has been shown to disrupt the development and health of laboratory animals and there are researchers who believe the chemical leaches from food and beverage containers to affect humans becoming a factor in cancer, infertility, behavioral disorders of youngsters and neurological disorders in infants. The Environmental Working Group analyzes chemicals in consumer products.
RICHARD WILES, ENVIRONMENTAL WORKING GROUP: Canada has banned it for use in infant formula bottles and is working on alternatives for canned foods. There are bills moving through 20 state legislatures as we speak.
SCHIAVONE: The chemical's industry supported the Food and Drug Administration when it cleared BPA and finds nothing alarming in the latest Harvard study.
STEVE HENTGES, AMERICAN CHEMISTRY COUNCIL: It's actually a very reassuring study in that the students even after exclusive use of polycarbonate bottles, the level of Bisphenol-A found was actually below the average level for the U.S. population as reported by the Centers for Disease Control.
SCHIAVONE: Meanwhile, based on the recommendation of its Science Board the FDA has been reevaluating the impact of Bisphenol-A telling CNN that they are taking quote, "a fresh look at this important issue from a scientific and policy position" -- end quote.
(END VIDEOTAPE)
SCHIAVONE: Kitty, sources at the FDA say expect an announcement on this question within weeks, not months. Meanwhile, Professor Michels encourages consumers to use glass or stainless steel food and beverage containers and to eat fresh, not canned foods -- Kitty.
PILGRIM: You know Louise you've been reporting on this for more than a year. This show has been looking at this on the state level. We've seen change after change in the laws in different states. The FDA just now saying they need to take a fresh look. It's astonishing. We all have these things in our home.
SCHIAVONE: Yes, that's right. Now this is a classic example of the sorts of things that we're talking about. This is a drinking container usually at the bottom of these things especially if they're very hard, you can see a seven in a triangle and that means that there's a significant presence of Bisphenol-A.
Now of course the chemistry industry has said there's nothing wrong with drinking out of containers that's reinforced with Bisphenol-A, but the FDA itself encouraged by its Science Board is taking another look and what's interesting is the statement that we're getting from the FDA today they are acknowledging that there are questions, that there is a vacuum on decisions in this, and the gentleman that they are signing to review this has -- is a very well- respected scientist and he says he's going to take a fresh and unbiased look at this. So there may well be changes in the coming weeks.
PILGRIM: That's very good to hear. Thanks very much, Louise Schiavone -- thanks Louise.
We would like to know what you think and here is tonight's poll question. Do you have confidence in the government's ability to protect you and your family from dangerous products? Yes or no. Cast your vote at loudobbs.com. We'll bring you the results a little bit later in the broadcast.
We do have some other stories we're following tonight across the country. An 80-year-old woman from Newport Richey, Florida, admits that she stole tens of thousands of dollars from her church. Erla Ferguson (ph) was treasurer of the St. Stephen's Episcopal Church Women's Group. The church realized $44,000 was missing and Ferguson told the police she had been taking the money from the church bank account for almost 10 years because she had financial difficulties. Ferguson is charged with scheming to defraud. Prince Harry is in New York tonight on his first official overseas trip and today the British prince visited ground zero where he placed a wreath. He also planted a tree at the garden that memorializes the 67 British victims of the September 11th attack. Tomorrow Prince Harry will participate in a polo match on Governor's Island (ph) in New York.
An eighth grader from Kansas won this year's Scripps National Spelling Bee. Thirteen-year-old Kavya Shivashankar beat out 292 other competitors from all over the country with the word meaning lukewarm or indifferent in religion or politics.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Laodicean -- l-a-o-d-i-c-e-a-n -- laodicean.
UNIDENTIFIED MALE: We have a champion.
(APPLAUSE)
(END VIDEO CLIP)
PILGRIM: Kavya's win took years of hard work. She placed in the top 10 three times before taking home this top prize and $40,000. She said she wants to be a neurosurgeon.
And a winning power ball jackpot ticket sold in the town of Winner, South Dakota. The ticket is worth $232 million and the person who bought the ticket in one of just two convenience stores. The winning Winner ticket has not been claimed yet.
New evidence of the government's failure to protect you and your family from dangerous chemicals and the Obama administration could soon own much of the U.S. auto industry, but is that a recipe for disaster? That's our "Face-Off".
(COMMERCIAL BREAK)
PILGRIM: There are last-minute talks being held tonight that could determine the future of General Motors. Now CNN has learned that the GM board is meeting tonight and tomorrow to discuss bankruptcy plans. An announcement is expected at any time. Brooke Baldwin reports.
(BEGIN VIDEOTAPE)
BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): An American icon on the brink of bankruptcy. GM stock price plummeting to its lowest levels since the great depression, below $1 a share Friday. Chapter 11 jitters have autoworkers and retirees fearful of the future.
DAWN SKIDMORE, 12-YEAR GM EMPLOYEE: I've thought about leaving, but I could never do it. I have too much here.
UNIDENTIFIED MALE: That scares anybody. I think it scares everybody that we're bankrupt. You know, gee whiz.
BALDWIN: In an effort to allay fears that bankruptcy would stop all payments, GM paid 90,000 of its U.S. employees early this week and 1,500 parts suppliers today. General Motors also announced plans to build a smaller fuel-efficient car at an idol plant here in the U.S., but it's a move according to senior automotive analyst John Wolkonowicz that is simply meant to placate the UAW. As much as 30 percent of GM's production would still be outsourced by the year 2013.
JOHN WOLKONOWICZ, IHS GLOBAL INSIGHT: That's the price we pay for being in a world economy. It's an unfortunate situation but I'm afraid it's reality.
BALDWIN: The United Auto Workers union Friday ratified with 74 percent support a labor deal with General Motors that included concessions that will keep the car company's labor costs more in line with foreign competitors. UAW President Ron Gettelfinger says those concessions are a matter of salvation.
RON GETTELFINGER, UAW PRESIDENT: Salvaging as much as we possibly could for our retirees. I'm regretful that we had to do anything and I think it's a disgrace that we had to do anything. However, we tried to inflict the least amount of pain.
BALDWIN: GM has announced plans to slash 20,000 hourly jobs by next year as it shuts more than a dozen plants. It's a pain borne by assembly line workers, men and women, who will have a difficult time achieving the same middle class living standard. Wolkonowicz is confident GM will emerge healthier and more profitable post- bankruptcy. Worst case scenario, he says, bankruptcy proceedings might drag on.
WOLKONOWITZ: It will take suppliers down, as well, if GM remains in bankruptcy a long time. That could take or could derail Chrysler's chances of recovery and could drag Ford into this mess, as well.
(END VIDEOTAPE)
BALDWIN: And just another twist in the story here, there's some insiding, if you want to call it that, between two Michigan mayors. Detroit, you know, as been ground-zero for the automotive icon since 1923, but the mayor of Bourne, Michigan, that's about 15 and 20 miles north of the Motor City -- he has offered GM a 30-year tax abatement if the company actually moves its headquarters there.
Detroit's mayor, a Michigan congressman, fighting back, even reaching out to President Obama saying "With GM receiving billions of dollars from federal coffers and little if any finding its way down to workers, now is not the time to cripple the country's most vulnerable community." I've been there, I've been Warren, Kitty, I've been to Detroit as well, and it's a matter of what's doing best for the bottom line for GM.
PILGRIM: It's a very, very difficult situation. Thanks very much, Brook Baldwin.
BALDWIN: Sure.
PILGRIM: Well, GM's impending bankruptcy on the controversy over government intention is the subject of tonight's "Face Off Debate." And joining me now is journalist William Holstein. He is the author of "Why GM Matters: Inside the Race to Transform an American Icon." He believes there's little chance of government intervention being successful.
And Professor John Pottow of the University of Michigan Law School. He believes government intervention is the key to GM's survival.
So gentlemen, thanks very much for giving me.
Professor Pottow, I need to ask you, do you think that bankruptcy is the only solution for GM? Is that what you're thinking is the best and only solution?
PROF JOHN POTTOW, UNIV OF MICHIGAN LAW SCHOOL: At this juncture, yes, Kitty. I think that with the bond holders' rejections, even this late acceptance by 20 percent plus, that's not enough to affect a restructuring without the powers of the bankruptcy code and so, the fact that they've paid off their suppliers and employees is not a gesture of beneficence. Companies in financial straits don't make early payments.
That's preparation for a bankruptcy filing and I suspect you'll see it at the opening of business if not before the opening of business Monday after it's been authorized by the board of directors this weekend.
PILGRIM: Well, what's your view on what the possibility that was brought up in the piece previous, of a long-term bankruptcy, is this not terribly, terribly damaging and destructive?
POTTOW: Well, first of all I'm not sure there will be a long- term bankruptcy. I think the goal is to do it as quickly as possible. It's not a fully prepackaged bankruptcy, but with each additional cent that comes in from the unions and from more bond holders, that shortens the time frame.
Secondly even if there is a long bankruptcy, which I'm not sure is necessarily the case, that does not necessarily hurt the suppliers down the chain because one of the first steps they will do in their bankruptcy is designate who their critical suppliers are, and make sure they are paid. You'll see those very early in the bankruptcy proceedings, so they shouldn't be hurt necessarily by duration.
PILGRIM: You know, I just want to get William Holstein in on this. You're dead set against a bankruptcy filing. Explain why.
WILLIAM HOLSTEIN, AUTHOR, WHY GM MATTERS: Well, it's inevitable at this point, but the bankruptcy lawyers are selling the propaganda this is a done deal, this can happen in 60 to 90 days, that there are no major risks. But the fact of the matter is, this is a global corporation with huge assets outside the United States. And the bankruptcy code has never been applied to a company of this size and complexity.
Secondly, the key question is confidence. Will suppliers have the confidence that GM's going to come out on the other side, now that it's majority owned by the U.S. government? I think that we're going to see dozens of suppliers simply disappear.
The great risk here is that if suppliers disappear, go bankrupt themselves, when it comes time to restart the assembly lines you just can't find the parts. So, what they're playing with here is forced liquidation or forcing General Motors into a situation where it's crippled. So, this is a high risk strategy and so good luck to all of the experts who think they know what they're doing. I hope they're right.
PILGRIM: This is a high stakes game, as we all know, and for the American economy. Let's talk about the government's share, 72 percent, $30 billion going in -- $19 billion already put in. We're talking about a lot of money, and no potential guarantee that this strategy may work. Professor Pottow, what is your view on the government participation in this?
POTTOW: Yeah, this is unprecedented. I remember when $30 billion meant something. Seventy-two percent of an equity ownership is unlike like any bankruptcy we've seen before, so I can't say, oh, this is not like the United Airlines bankruptcy we saw five years ago, because we are in uncharted territory.
The question is, with that large a government stake, how is the government going to act as the controlling shareholder? Are they going to act like a promoted bureaucrat of the DMV who uses this as an opportunity to affect policy on environmentally conscious automobiles or are they going to act like a financier, like a traditional debtor in possession financing who provides capital, but then rides a pretty rough close herd over the company to make sure the operating targets are met, to make sure they have a viable business plan and are providing financial discipline, not micromanagement. And that we have to give them the chance to see if they're going to do.
PILGRIM: Yeah, well, it's an awfully big experiment, isn't it? It's the fourth largest bankruptcy in history.
Mr. Holstein are we stuck in the philosophy of "too big to fail," here? With taxpayer money?
HOLSTEIN: Not at all. Not at all, and by the way, this is minor league money compared to the amount of money that's going into AIG and the financial sector, these are pennies on the dollar.
But, I mean, the government is overplaying its role. I think they should have lent money to General Motors and been a passive investor and allowed management to pursue this very draconian plan they've announced. UAW has made major givebacks. The bond holders have made major givebacks. The government should declare victory and said we did a great thing here and now let's let Fritz Henderson and others manage the company into profitability. But instead, the government is now talking about, I'm hearing rumors and reports they might replace Fritz Henderson, they might replace management. If they do that, they will cripple this company. So, the government is at a fine line. This is one of most fascinating and important moments in the American governmental policy toward the heart of our economy. If they get this right there will be heroes, but I think their overwhelming odds are that they're going to overplay their hand.
PILGRIM: Gentlemen, that is -- it's a very tough thing to sort out. Thank you very much for your considerable insight into this, William Holstein and John Pottow, thank you very much.
UNIDENTIFIED MALE: See you at the shareholder's meeting.
PILGRIM: North Korea threatens retaliation over sanctions and Sonia Sotomayor, the controversy over her ethnocentric statement. Was it a mistake? President Obama now says it was.
(COMMERCIAL BREAK)
PILGRIM: It's been just three days since California Supreme Court upheld the state's gay marriage ban. The battle is already headed to federal court, maybe even back to the polls and tonight Casey Wian reports on the competing strategies being employed by the backers of same-sex marriage.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN NEWS CORRESPONDENT (voice-over): Here in the southern California suburbs, pastors Arthur Cribbs and Anne Cohen lead two Church of Christ congregations that describe themselves as "open and welcoming." Normally this time of year they'd be preparing for a Rush of June weddings. But to protest California's gay marriage ban, upheld by the state Supreme Court this week, they're refusing to performing marriages, period.
REV ART CRIBBS, UNITED CHURCH OF CHRIST: It is my personal and painful decision not to perform another wedding ceremony in the state of California until discrimination against same-sex couples is ended.
REV ANNE COHEN, UNITED CHURCH OF CHRIST: I could not continue to profit from an industry that excluded certain members of our society from their civil rights.
WIAN: It's reminiscent of Brad Pitt's statement, more than two years ago, that he and Angelina Jolie "will consider tying the knot when everyone else in the country who wants to be married is legally able."
Actor David Hyde Pierce took a different approach disclosing this week that he and his long-time partner quietly wed just before California's gay marriage ban was approved. Theirs is one of 18,000 same-sex unions the court has allowed to stand.
DAVID HYDE PIERCE, ACTOR: I'm sitting in front of my television wondering, gee, I hope the Supreme Court thinks it's OK for us to be married. Excuse me, it's none of your business.
WIAN: Now, same-sex marriage supporters are seeking to make it everyone's business by running this television ad in California.
Two-famous legal minds, who faced off during the disputed 2000 presidential election, have joined together to petition the federal courts to overturn Proposition Eight.
TED OLSON, ATTORNEY: We believe that the courts are ready to grant equality to citizens based upon sexual orientation.
DAVID BOIES, ATTORNEY: There is no right more fundamental than the right to marry the person that you love.
WIAN: Their effort to achieve a Supreme Court precedent-setting position has caused a rift among some gay marriage advocates who believe going to the Supreme Court is risky, that the best course is to change laws state by state.
(END VIDEOTAPE)
That's because nationally, guy marriage remains a tough sell. A CNN Public Opinion Research Poll, last month, found that 54 percent of Americans believe that marriages between gay and lesbian couples should not be recognized as valid, versus 44 percent who believe they should be -- Kitty.
PILGRIM: Casey, there's a big effort to get this back on the ballot. When might we see it before voters again?
WIAN: Among the supporters of gay marriage there's a little bit of debate about that, some believe it should happen as early as next year. Some think it might have a better chance of waiting until 2012, when they believe more younger voters will be participating and they'll have a better chance of getting it reversed -- Kitty.
PILGRIM: All right, thanks very much, Casey Wian.
Here's a reminder for to you vote in tonight's poll. Do you have any confidence in the government's ability to protect you and your family from dangerous products? Yes or no? Cast your vote at loudobbs.com and we'll bring you the results in just a few minutes.
Coming up at the top of the hour, "How the Wheels Came Off," and the rise and fall of the American auto industry with Christine Romans and ALI Velshi -- Christine, Ali.
ALI VELSHI, CNN NEWS ANCHOR: Kitty, I'm at the Automotive Hall Fame in Dearborn, Michigan.
CHRISTINE ROMANS, CNN NEWS ANCHOR: And I'm here in New York, Kitty. Good paying auto jobs helped build the American middle class into the envy of the world. But you know, all of that has changed Detroit, its path determined long before the current economic crisis. We're going to explore the unique cultural and economic influence of this industry. We're going to look under the hood at what went wrong. At the same time, we're going to celebrate the history of the American car.
Ted Rowlands is at a car show in Burbank, he's going to show us just how passionate Americans can be about their cars.
Well, we look forward to it.
VELSHI: And Christine has classic cars right outside the studio, she'll show those to you.
Susan Candiotti is about 20 miles from me in Warren, Michigan, she's talking to those people most affected by this situation, American autoworkers. So, Kitty, it's going to be an informative and entertaining hour. "How the Wheels Came Off," just about 15 minutes from now, so stick around -- Kitty.
PILGRIM: All right, we certainly will. Thank you very much, Christine and Ali, thank you.
Will the real voice of the Republican Party please step forward? And judge Sotomayor and group and identity politics. President Obama tries to end the controversy.
(COMMERCIAL BREAK)
PILGRIM: Joining me now are three of the country's best political analysts. We have Keli Goff, a regular contributor to the "Huffington Post," Miguel Perez, syndicated columnist and professor at Lehman College, and Democratic strategist, Robert Zimmerman.
Gentlemen and ladies thank you very much for join us. We have to start with Sotomayor. And I have to say, hats off to you, Miguel, because on May 5 you predicted -- you called it. And You said it was a shoo-in. But, did you anticipate the sort of drama that's been going on this week about a comment that she made and the really serious discussion that that's engendered?
MIGUEL PEREZ, SYNDICATED COLUMNIST: Look, I always knew that there was going to be people nitpicking at every word she wrote and everything that she ever said. This is natural, it happens with every nominee, but it is offensive. It's getting very offensive and insulting to a lot of Latinos, the tone of the conversation.
Look, this woman, to us Latinos, is the same thing that Obama represented to African-Americans when he got elected. This is our (speaking foreign language), this is our being able to tell our children, you, too, can be a member of the Supreme Court. That's how important it is and that's how emotional it is to us. So, when they attack her in every other way, we don't care about those other things, about her opinions at this point, no, it's a question of pride.
PILGRIM: All right, let me just, you know what, I want to play the comment for our audience, just so that they have it in context and this is the comment that generated all the controversy.
(BEGIN VIDEO CLIP) BARACK OBAMA (D), UNITED STATES PRESIDENT: I'm sure she would have restated it, but if you look in the entire sweep of the essay that she wrote, what's clear is that she was simply saying that her life experiences will give her information about the struggles and hardships that people are going through that will make her a good judge.
ROBERT GIBBS, WHITE HOUSE PRESS SECY: I think she'd say that her word choice in 2001 was poor. I think if she had the speech to do all over again I think she'd change that word.
(END VIDEO CLIP)
PILGRIM: OK, that was the White House response. I want to do read the comment. "I would hope that a wise Latina woman with the richness of her experience would more than often than not reach a better conclusion as a judge than a white male who has lived that life." OK, that's the comment that generated all the controversy. We heard the White House rebuttal of that, which some say came actually a little late.
Robert, your thoughts on that?
ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Well, first let me give my congratulations to our friend Miguel for calling it so quickly. And you're absolutely correct when you say it's offensive, the dialogue of the debate has become offensive, and not just to those who are Latino, Latina-Americans and also to Hispanic community, but also all of us as Americans. This push-back that we're seeing, the political attack from the extreme fringe right-wing is offensive to all of us.
If you look at Judge Sotomayor's comments and the full context of her full speech, it's also important to note she recognizes that the white male Supreme Court justices made the seminal in terms of attacking sexual discrimination and also for civil rights. And so it's very important to look at the full text of what she is saying, she is referring to, of course, comments of Sandra Day O'Connor.
But, her comments are not in any way different than the comments, for example, that Sandra Day O'Connor said about Thurgood Marshall when she said that his life experiences impacted his judicial scholarship.
PILGRIM: All right, but some people, I mean, you have to admit, Robert, that some people in this country read these comments in a different context and they do see them as fairly offensive. I would like Keli's thoughts on this.
KELI GOFF, HUFFINGTON POST: Look Kitty, the one thing that Robert Gibbs was right about is that her word choice could have been better, pun intended. But that doesn't change the fact that the substance of what she meant is 100 percent dead-on and that is that anyone who's from a disadvantaged group, who has had to succeed in an environment of the majority, has a more diverse breadth of experience and perspective, that's without question. The other thing that I'd like to say is I'm not sure which one of the attacks is more laughable. The one coming from Karl Rove, challenging the intellectual capability, coming from a man who dropped, I think, last count, four colleges -- challenging someone with her academic credentials and breadth of experience on the bench. Or someone like Newt Gingrich calling her racist, this from someone who seemed to have no problem hanging a state flag in his office that has a confederate battle emblem on it, which is something that I find offensive.
Do I think Newt Gingrich is racist? Don't know. Do I think, you know, he and Ann Coulter who also defended the confederate flag in her book, are Newt and Coulter racist? Are they nuts? Possibly. I think they throw this word around, thought, is really...
ZIMMERMAN: The real question here is who's running the Republican Party? A Republican elected officials who run for election or the fringe right-wing groups that just run their mouths? And right now, I think it is the fringe right-wing groups that run their mouths that are truly setting the agenda and framing the debate. And I'm very impressed and pleased by the number of Republican senators who have spoke deliberatively and respectfully and I think that shows some hope for, I think, the process being fair and equitable.
PILGRIM: There were some Democrats who spoke out also on this issue. They were not happy with the comments and I have to point that out in all fairness. Let me just bring up something else, because many worry she'll be an activist judge and with all that implies. And I really would like -- she gave a talk at Duke University several years ago. There was a comment, they were off of cuff comments, but I'd like to actually play them and this is also in the controversy.
(BEGIN VIDEO CLIP)
SOTOMAYOR: A court of appeals is where policy is made and I know -- I know this is on tape and I should never say that, because we don't make law, I know. OK. I know. I'm not promoting...
(END VIDEO CLIP)
PILGRIM: All right, so, OK...
GOFF: I have to weigh in, just really quickly. I'm sorry. I just have to say that we live in a wonderful country and the Constitution is a great document, it's extraordinary, in fact, but according to Article One Section Two of the Constitution, I'm 3/5 of a human being. It took the 15th Amendment and the 19th Amendment to make sure that as a woman and an African-American, I have the right to vote. So, I get a little frustrated sometimes when I hear people who are strict constitutionalists express this alleged concern...
(CROSSTALK)
ZIMMERMAN: ...constitutionalism, if you look at her comments...
GOFF: ...interpret the Constitution... ZIMMERMAN: And this is not strict constitutionalism. Her comments were...
GOFF: ...part of the criticism.
ZIMMERMAN: But the point is, her comments were defining the different levels of the judiciary, the appellate level versus the district level. And she disavowed the (INAUDIBLE) of an activist judiciary and she's testified in her previous confirmation (INAUDIBLE).
What we really have are the conservative right-wing activist judges who are taking exception here, who have used their time on the bench, there in the Supreme Court, to really undermine laws whether it's a Lilly Ledbetter Law, a statute they so severely limited, she couldn't get equal for equal work. Or the way the conservative activists gutting McCain-Feingold by allowing special interest money back into the system.
PILGRIM: I give Miguel the last word. He made the call, he gets the last word on this.
PEREZ: Back to Sotomayor, what is happening here is that slowly but surely the Republican Party is burying itself. And they're doing everything possible to disappear from the mind of the Hispanic community and they're following people like Rush Limbaugh who's telling them that they don't need the Hispanic vote.
So, if they don't need the Hispanic vote, imagine what he's telling Republican Latinos? You know, we don't need you? They must be wondering right whether they should switch over to the Democratic Party. I'm sure Robert is delighted to hear that.
(LAUGHTER)
ZIMMERMAN: Give me some hope and encouragement.
PILGRIM: All right, well, I think we agree that this has generated quite a discussion, quite a valuable discussion and thank you very much for helping me fill it in tonight. Thank you very much, Keli Goff, Miguel Perez, Robert Zimmerman.
In "Heroes" tonight, one Marine's attempt to single-handedly fight off insurgents. We'll have his story, next.
(COMMERCIAL BREAK)
PILGRIM: Time now for our "Heroes." It's our weekly tribute to the men and women serve this country in uniform. Tonight the story of Marine Captain John Roussos. Now, the captain was honored for single- handedly fighting off an insurgent attack in Iraq.
(BEGIN VIDEOTAPE)
CPTN JOHN ROUSSOS, U.S. MARINES: I knew it was a dangerous place when we first went in 2005. PILGRIM (Voice-over): As a rifle platoon commander, Marine Captain John Roussos led his men from the front lines. His first deployment in Iraq lasted seven months. Less than a year later, he was back on the front lines leading over 200 men in the Sunni stronghold of Ramadi.
ROUSSOS: We took a lot of casualties during this deployment. When I came back from Ramadi, I just wanted to deploy again.
PILGRIM: in 2007, he went on the third tour to Iraq as a reconnaissance platoon commander. On March 7, the platoon went out for a zone recon when a helicopter spotted a suspicious vehicle.
ROUSSOS: They sent my platoon to go interdict and try and capture this truck to find out why is it fleeing from coalition forces.
PILGRIM: After an 11-mile chase, the pickup truck came to a stop and the insurgents opened fire with armor-piercing rounds.
ROUSSOS: They fired approximately 600 to 700 rounds at us within about a 45-second time period.
PILGRIM: With the rest of his platoon not in position yet, only two Marines were able to fight back. Captain Roussos and a machine gunner who quickly ran out of ammunition.
ROUSSOS: And at that point, I made the decision to basically bum-rush the enemy. I get out of the vehicle and I immediately shoot 30 rounds. I conduct a speed reload drill and shoot another 30 rounds and then another speed reload drill and I shot another 30 rounds. So, I didn't have any cover, whatsoever.
PILGRIM: As Captain Roussos single-handedly fought off the enemy, the rest of the Marines arrived to assist. The recon platoon destroyed the enemy vehicle, killed five insurgents and recovered thousands of rounds of machinegun ammunition.
ROUSSOS: We all understand that there are hostilities, we all understand that there is the possibility of getting hurt or dying, but that all comes second to getting the job done.
(END VIDEOTAPE)
PILGRIM: A real hero.
Well, tonight's poll results - 96 percent of you do not have any confidence in the government's ability to protect you and your family from dangerous products.
A reminder to join Lou on the radio, go to LouDobbsRadio.com to find the local listings. Thanks for being with us tonight. "How the Wheels Came Off: The Rise and Fall of the American Auto Industry" with Christine Romans and Ali Velshi, starts right now.
