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CNN Sunday Morning

Senate Debates Stimulus Bill

Aired February 01, 2009 - 07:00   ET

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

BETTY NGUYEN, CNN ANCHOR: From the CNN Center in Atlanta, this is CNN SUNDAY MORNING. It is the first day of February. Good morning, everybody. I'm Betty Nguyen.

T.J. HOLMES, CNN ANCHOR: And hello to you all. I'm T.J. Holmes. Glad you could be with us on this Sunday morning.

Coming up, the next major part of President Obama's recovery plan. Well, it's on hold for now. The stimulus bill, that other part, is in the hands of the Senate. The unveiling of the financial system rescue package has been pushed back. We'll tell why.

NGUYEN: All right. So, from that stimulus bill to this -- and I was talking about imagine going for a whole month without spending a single dime. Well, the lady known as the "Frugalista" does it once a year. And she's going to join us live.

ANNOUNCER: You're watching CNN: Your severe weather headquarters.

HOLMES: Well, utility officials are working around the clock. However, hundreds of thousands of people in Kentucky are still in the dark after last week's ice storm.

NGUYEN: Yes, the governor called out National Guard troops to check in on people in isolated areas. CNN national correspondent, Susan Candiotti, has more now from Jefferson County.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Kentucky's trouble started with all the snow that fell here, six, seven, eight inches in many parts of the state. But then they had an ice storm and that created another kind of problem. The weight of many of the icicles hanging on trees, on power lines, snapping trees in two.

So, we're giving you a look through one neighborhood to see the kinds of problems that that has created. You see all kinds of branches down here; you could see treetops now where you couldn't before. This neighborhood has just been ruined. And now, you've got power lines downed as well. That is why the governor of Kentucky has asked for help from several states.

This particular utility crew is coming from Georgia and they are replacing the power lines here. They've got a lot of work ahead of them. So, just about a half million people are still without power. They are trying to restore it as quickly as they can.

Some people who live in metropolitan Louisville have managed to tap at outed homes; some of them have gas heat, just no power. But they're managing to get by.

JOHN STONE, JEFFERSON COUNTY, KENTUCKY RESIDENT: We're better off than the next door neighbor who, everything is on electricity. At least we have hot water, we -- our stove is gas and we have heat which is also gas. So, we just don't have power.

CANDIOTTI: How long will it take to restore the power to everyone in Kentucky? Well, it's hard to say, but the early estimates are anywhere from seven to 10 days. It could be a little bit more or could be a little bit less.

There could be a bit of respite though from the freezing cold temperatures. On Sunday, they're expecting highs could get into the 40s. But they are also predicting the possibility of light snow at the beginning of the week.

Susan Candiotti, CNN, Jefferson County, Kentucky.

(END VIDEOTAPE)

NGUYEN: Reynolds Wolf joins us now ...

REYNOLDS WOLF, CNN METEOROLOGIST: Hi, guys.

NGUYEN: ... with a look at the weather outside. And it's awfully frightful especially for the folks dealing with that.

WOLF: It really is. I mean -- but, you know, there are some heartwarming things to see. You've got power companies from all over the country that have been going there to help out. I mean, we are talking about a million people without power.

NGUYEN: Yes.

WOLF: I mean, yesterday, you had a great conversation with the governor of Kentucky about -- what -- 200,000 people without water.

NGUYEN: Without water, yes.

HOLMES: Without water, we're waiting on an update of those numbers. We don't have that yet this morning. But, yes, that might still be the case.

WOLF: OK. It's a huge mess. You know, we've had all kinds of contributions; of course, people out there are trying to clean up the damage. We've also have some contributions from with some iReports. Take a look at this one.

This was sent in by Mike Watt. Yes, his name is Watt, as in, you know, energy or something that many people in Kentucky don't have this morning. A great image that he has looking right at the street. You can see ice and snow everywhere. Winter Wonderland looks beautiful, but, my goodness, the effects have just been devastating.

And I'll tell why, with temperatures that have been going up above the freezing point, you will see muddy conditions in many spots. Look at the right end corner of the screen there. And you see the mud on the ground, you see the big puddles, you also see, how can you miss it -- the big tree, the big branch that's crashed on top of that small vehicle.

I am telling you, people are going to be cleaning up. You're going to have a lot of folks over to try to do what they can, to settle those insurance claims. This could be a rough time, and a lot of people -- another great shot that we have here shows, I guess, the city hall, maybe a church. And then you have this image here that shows, again, more of the same, ice everywhere.

Now, as we make the transition and go right to the weather computer, you're going to notice something that does look promising -- 37 degrees in Louisville, 34 in Cincinnati. So, temperatures at this point are getting above the freezing point. That's great. Certainly some good news.

We do have another reinforcing shot of cold air that will be sweeping right through the region, and when that occurs, we could see some of the street freezing, also could see a few flakes back in the area, not much in terms of significant accumulation but still some flurries maybe in the mix.

The best chance of snowfall for today, it's going to be mainly in the northern half of the Great Lakes, compliments of this system moving north of the lakes. We've got that frontal boundary that is going to make its way close to the gulf coast, some scattered showers, possibly a rumble of thunder for our friends in (INAUDIBLE), say, from New Orleans this morning, you maybe dealing with the same in parts of Arkansas and into this Mississippi before the day is out.

That cold air continues to march eastward as we make that transition into tomorrow, look for a chance of scattered showers in the good part of the southeast, but when you get into the higher elevations, in parts of the Piedmont, say, in the Carolinas, you might have a little bit of ice popping up in a few locations. You could see some snowfall in portions of New England, back in the nation's capital. And it's going to be in this area of low pressure moving into the Ohio Valley that could provide a few scattered snowflakes, mainly flurries, nothing heavy but still, a touch of winter returns to parts of the Ohio Valley.

That is a look at your forecast. Let's send it right back to you guys at the desk.

NGUYEN: The cold look at it. OK. Thank you, Reynolds.

WOLF: You bet.

HOLMES: Thanks, buddy.

All right. We don't know if you are having a hard time keeping up with all these billions of dollars and all of these rescue plans. But the Senate is taking up a stimulus package this week that was passed by the House last week with zero Republican support. However, there is another plan that's in the works that's the president is working on, a financial rescue package that's aimed at helping homeowners, helping people get loans, help it -- aimed at helping those banks out.

Paul Steinhauser, our deputy political director -- we are trying to keep up with all of the plans right now. So, we've got another one in the works, but it might be delayed a bit. Give us the lowdown on all these plans and the status of this thing.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Exactly, T.J., they are pushing it back a week, this rescue plan, as you mentioned. It was supposed to come out this upcoming week, but they're going to push it back until the second week of February. Treasury Secretary Tim Geithner and his team are working on it. And I guess they need a little bit more time, because, as you mentioned, not only are they dealing with that, but they are dealing with the stimulus plan as well at it makes its way through Congress.

So, they are juggling a lot of balls. We're talking about a lot of big bills and a lot of -- a lot of big money. But as for this rescue plan, we do know some details in there. Even though it's being pushed back a week or two, you heard President Obama earlier -- or this past week, speak out pretty forcefully against these bonuses for Wall Street firms that were taking money. And we heard that there's going to be some provisions in there that will prevent such compensation for firms, Wall Street firms and banks that are getting some of this federal money, taxpayer money, prevent them from getting big bonuses.

Also, there is going to be money, we hear, for people who are facing and getting kicked out of their house because of the foreclosure crisis. There will be some methods in this plan to help them refinance their mortgage. So, a little bit of this, a little bit of that. But, again, they need a little bit more time, T.J.

HOLMES: A little bit of this, a little bit of that, a little bit of time.

STEINHAUSER: Right.

HOLMES: But, you're right, this one -- and so much criticism of that first big package. There was not (ph) -- you know, there wasn't enough transparency, there weren't enough restrictions on how that money should be used, and banks took it and some of them hoarding in, and it's not going back. So, we'll see what happens with this one.

And also, the president continues to stack his cabinet. We've got another possible new member to the cabinet coming this week.

STEINHAUSER: Yes, and he is a Republican. His name is Judd Gregg. He is the senator from New Hampshire, the senior senator from New Hampshire. He is somebody that the business world knows him very well. He was one the major backers of that $700 billion bailout for Wall Street that was passed last year.

He is being considered, we hear, for commerce. Remember, Bill Richardson, the governor of New Mexico was the first person that Barack Obama nabbed for that job but he had to step down after a federal investigation out there in New Mexico.

So, we are hearing from the White House, from our Elaine Quijano. She's reporting that it could be as early as tomorrow that we could hear about Judd Gregg. This is interesting, he is Republican. Now, as he steps down and confirmed as commerce secretary, well, his seat could fall into Democratic hands.

HOLMES: All right. One quick thing, you've got to do this for me quickly, but I wanted to get and -- any little nuggets we are getting from the Alfalfa Dinner last night. Not a press event but a big, prestigious and very private dinner last night that the president was at, and also Sarah Palin reportedly was there as well.

Anything we know about that? Anything came last night? Did those two dance or anything or anything from last night?

STEINHAUSER: Don't know if they danced, but we heard about what Barack Obama said. They released his comments and he made a joke saying, "Listen, I've got some real tough diplomacy just in the first two weeks, and that was just to keep my BlackBerry."

HOLMES: Oh, well. Yes.

(LAUGHTER)

HOLMES: All right. That's all we got.

All right. Paul Steinhauser, we appreciate you, as always, this morning. Are you coming back? Are we talking to you again this morning?

STEINHAUSER: See you in about an hour.

HOLMES: All right. We'll see you soon here, buddy.

Well, the Senate minority leader, Mitch McConnell, calling the Democrat's rescue plan "a trillion-dollar Christmas list." During his Republican weekly address on the economy, he said the plan will not do enough to stimulate the economy and that it carries far too much wasteful spending. Instead, McConnell calls for 4 percent fixed mortgages back by the government and tax cuts for lower income brackets.

NGUYEN: Hillary Clinton started the New Year with a new job, as secretary of state. But she's still has some old debt left over from her 2008 presidential bid. Records filed yesterday show that her campaign still owes nearly $6 million. Now, that is down from more than $25 million when Clinton dropped out of the race in June. The campaign owes most of the remaining debt to a political consulting term. Well, keeping state budgets afloat in our deteriorating economy. That's tough. Governors Tim Pawlenty and Jennifer Granholm talk about how they are keeping their states on the budget radar. That's on "STATE OF THE UNION" with John King this morning, starting at 9:00 Eastern.

HOLMES: Betty, can you do it -- go a month without buying a single thing?

NGUYEN: Well, if I can pay bills. You mean like going out ...

HOLMES: Pay your bills, your food, the necessities.

NGUYEN: OK. Anything extra?

HOLMES: No going out, no purses, no earrings, no hair.

NGUYEN: No shoes?

HOLMES: No shoes.

NGUYEN: Oh, that would be tough.

HOLMES: Yes.

(LAUGHTER)

NGUYEN: We are going to talk, though, with Natalie McNeal, also known as the "Frugalista" for reason because she is taking that challenge. She is deciding not to purchase. And, boy, that is some solid steel willpower right there.

HOLMES: Which you don't possess.

NGUYEN: Not right now.

HOLMES: Also, the historic clerk, we want to show you that will not get robbed. The stick kind of explains some about it. She's fighting back. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: OK. So, if you think cutting back on your spending means giving up fun, better think again, because Natalie McNeal completely did a 180 from big time spender to the self-titled "Frugalista." And she says you can have a blast without spending a dime, really? Well, Natalie's blog is called "The Frugalista File." And there she is, Ms. Frugalista herself, Natalie McNeal.

Good morning.

NATALIE MCNEAL, BLOGGER, THE FRUGALISTA FILES: Good morning, Betty. How are you?

NGUYEN: You look fantastic for giving up spending, including going to the salon and all that good stuff. MCNEAL: Thank you.

NGUYEN: Although I heard you went to the salon yesterday.

MCNEAL: Yes, full disclosure.

NGUYEN: OK.

MCNEAL: Just to get ready for the month, I had to get my last- minute treats in.

NGUYEN: Oh, we got a picture of you in your rollers here. OK. You know, going to the salon and getting your hair done, your nails done. All these little extras, they do add up, don't they?

MCNEAL: Yes, indeed. I mean, even though little things can add up over time and can wreak havoc on your bank account.

NGUYEN: Why in the world would you decide, you know, for an entire month, although it is the shortest month of the year, that I am not going to spend any additional cash?

MCNEAL: Because I am coming off the Christmas holidays, and in last month, I went to the inauguration. So, now, it's a good time for me to focus and make sure that I can just get my bank account right where it needs to be. It's just a good disciplinary action.

NGUYEN: And, you know, you did this last year. Anything that you learned from that?

MCNEAL: That I can do things myself. Last year, I learned how to cook. So, now, I'm very confident in the kitchen. And I just learned that, you know, I can do things myself just as well.

NGUYEN: You are just now learning to cook?

HOLMES: Yes.

MCNEAL: Yes, last year. Yes, it's too bad.

(LAUGHTER)

NGUYEN: And how much money did it save you last year, so it can get, you know, an idea of where this is going to go this year?

MCNEAL: I say $400 last year.

NGUYEN: Wow.

MCNEAL: So, that was like excellent. Now, I'd cutback over the year, just in general. So, it's very interesting to see how much I can save this year because I've been pretty frugal throughout the year. So, it's a challenge.

NGUYEN: And, you know, I think that is key because it's part of a new lifestyle. You said you cut back since doing this last year. And, you know, but you got to learn new things. You got to learn how to do things, like you say, on your own, no more going to the gym, right?

MCNEAL: Oh, I am going to go to the gym, but I'm going to, you know, I'm not going to get a personal trainer. I've got to work it out on my own.

NGUYEN: Oh, wait a second, Natalie. How are you not spending money if you're going to the gym and you drove to the studio today, how are you not spending any money?

MCNEAL: I'm going to spend some money on certain things like I'm going to keep my gym membership because I need it. And if I were to cut out my gym membership and start a new one, it would be very expensive. And health is important because being healthy can save you money because medical bills are no fun.

NGUYEN: So, in full disclosure, you're going to still pay your mortgage, you're going to still, you know, keep the lights on. You're going to keep that membership.

MCNEAL: Exactly.

NGUYEN: You're going to buy groceries, because you do have to eat.

MCNEAL: Exactly.

NGUYEN: But, what are the things that you are cutting out?

MCNEAL: I'm not going to go, professionally, to get my hair done. I'm not going to go a nail salon. I'm not going to go shopping. If I'm at the gas station getting gas, I can't go inside and try to get a Snicker bar on the sneak or try to get a bottled water from the gas station. That's not acceptable.

I can't pay to go to the movies. I can't, you know, even rent a movie.

NGUYEN: Can't even rent a movie.

MCNEAL: Exactly. So, trust me, I'm cutting back. I'm just not, you know, going to hurt myself in the process. I'm cutting back on unnecessary things.

NGUYEN: Well, what are you going to do for fun? What can you do for an entire month for fun if you can't spend any additional cash?

MCNEAL: Well, if you want to go to the library, you can rent movies and DVDs from the library, or they're like happy hour that you can go for free and also have free drinks. I mean, there are lots of things that can you do for free. I mean, I kind of practice this lifestyle. So, there are a lot of things to do.

NGUYEN: And so, throughout the month, you're going to give us tips on how to find those places ... MCNEAL: That's right.

NGUYEN: ... where you can go and get things for free ...

MCNEAL: Exactly.

NGUYEN: ... which is going to save a lot when it comes to the pocketbook.

All right. We're going to be checking in with you weekly to see how you are doing and how you're surviving if you are going to make it through the month of February without cheating and spending any additional money.

MCNEAL: Thank you.

NGUYEN: All right. Good luck to you.

MCNEAL: Thank you.

NGUYEN: It's got to be difficult though, T.J. Could you do it, T.J.?

HOLMES: I could if I had to. It's just a whim, out of willpower.

NGUYEN: If you had to, right?

HOLMES: It's just, you know, we get used to certain things and unfortunately -- unnecessary things. I have bags of candy over here.

NGUYEN: I know.

HOLMES: I got bottled water. We can ...

NGUYEN: But, you know, I think it's a good experiment, because you realize where the extra money is going, and then somewhere in the middle, you can find, you know, your comfort zone and but to not spend as much as you used to.

HOLMES: And I got that little detail there. She said, "I can't pay for myself to go to the movies."

NGUYEN: Yes.

HOLMES: Yes.

NGUYEN: So, her friends invite her out. That's OK because she's not paying for it.

HOLMES: All right. We're going to think of ways to save money during the commercial break. Stick with us, we'll be right back.

(COMMERCIAL BREAK)

NGUYEN: Well, I recently sat down with the former surgeon general, Doctor David Satcher, and we talked about mental health and America's economic crisis. And I asked the doctor about a report from the American Association of Suicidology which blames suicide or reports that suicide is the third leading cause of death among young black people.

Take a listen to what he said about that.

(BEGIN VIDEO CLIP)

DR. DAVID SATCHER, FORMER SURGEON GENERAL: It doesn't surprise me, probably because the CDC pointed now, almost 15 years ago, the dramatic increase in depression and suicide among young black people. So, when we did our report, not a report on mental health but the report on suicidal prevention which we did in '99, that those data were included, the fact that depression and suicide were increasing so rapidly among young black males. So, this trend has started a while ago and it sort of continues.

NGUYEN: What's causing it?

SATCHER: Well, I think, again, one of the indications of mental health, of course, and one of the challenges for mental health is the ability to deal with adversity. And, obviously, the more adversity you have to deal with, the more likely you are going to experience mental disorders. So, it is true that the environment is a major factor in terms of mental disorders as it is in so many other illnesses.

Of course, the World Health Organization has just come out with a report on social determinants of health. And that report talks specifically about how the environment affects health problems including mental health.

NGUYEN: Is there something within history that we can look to for some answers on how to deal with this? I mean, we've gone through recessions, we've even gone through a depression before within this country -- what can we learn from those times?

SATCHER: Well, first, let me mention something else in history. We used to have a very negative attitude about cancer. The stigmas around the cancer were so great that if somebody had a member of the family with cancer they didn't want anybody to know about it. And for the person who had cancer, they wouldn't talk about it.

And what changed that? Number one, education. And number two, the realization that we could, in fact, diagnose and treat cancer, that it was not a death sentence.

NGUYEN: The army just released information showing that they are seeing the highest suicide rates ever recorded. Is this a reflection of both the wars and the economy? Is it a little bit of both? What do you attribute it to?

SATCHER: I think it's both. I certainly think that we have seen more divorces in terms of people coming back from Iraq than we've seen before. But I think, as you imply, in addition to Iraq, there are a lot of other things going wrong in peoples' lives. And so, I think the economy, definitely, adds to the stress that people experience. But there are a lot of people coming back from places like Vietnam and other wars who have suffered post traumatic stress disorder. This is probably the highest level that we've ever seen.

NGUYEN: Is depression truly treatable?

SATCHER: It is treatable. We report it. In our report, we said that 85 percent to 95 percent of the time, we can treat people with mental disorders. We can return them to productive lives and positive relationships.

NGUYEN: That's a pretty good rate.

SATCHER: Yes, it is a pretty good rate. And for some people, it's incredible.

(END VIDEO CLIP)

NGUYEN: Indeed. Doctor Satcher also talked about how tough economic can some times lead to increases in suicides and depression.

HOLMES: All right. They tried to steal beer from her store. And she is not having it.

NGUYEN: At all.

HOLMES: Take a look at the weapon she used. We will ...

(LAUGHTER)

HOLMES: We will explain this coming up in just a second.

(COMMERCIAL BREAK)

NGUYEN: All eight babies are breathing on their own. That is the word from doctors caring for the California Octuplets. Well, there are some questions of fertility ethics involving the rare birth. Doctors say the babies are getting stronger each and every day; they are all being tube-fed donated breast milk.

HOLMES: All right. Let's share with you some video here now. What you are seeing, two guys wanted to steal some beer. They did not expect the clerk to not want to part with that beer in such a way. She grabs ...

NGUYEN: What does she had in her hand?

HOLMES: She has a mop as her weapon, and take ...

NGUYEN: Oh, my goodness. Taking on two guys with a mop?

HOLMES: Two guys with a mop, and she wants the beer back.

(LAUGHTER)

HOLMES: And she got the beer. But let's listen to her right quick, and we will explain the rest of this.

(BEGIN VIDEO CLIP, WSPA)

TERESA FOWLER, CHASED SUSPECTS WITH BROOM: He kind of like turned and smiled at me and laughed, and when he did, that made me a little bit mad. And I just reared back, hard as I could, and I hit him, you know, up like that, you know.

(END VIDEO CLIP)

HOLMES: OK. And now, in that sound byte there, you saw her with a broom, but she actually used the mop. She actually has a closet full of weapons apparently.

(LAUGHTER)

NGUYEN: Yes, right.

HOLMES: But she actually connected with the guys. This is in Spartanburg, South Carolina. The clerk said that she actually got the beer back, but then, somebody pulled a gun.

NGUYEN: Oh, my goodness.

HOLMES: They pulled a gun on a woman with the mop.

NGUYEN: With the mop.

(LAUGHTER)

HOLMES: So, she decided to let it go. But she still got the beer and they also got the tag number of the vehicle there.

NGUYEN: Wow, she went the extra mile. Employee of the month for that one.

HOLMES: Yes.

NGUYEN: Although it could have turned out not to be a good ending, but it was and she made it happen.

HOLMES: Yes, all right.

NGUYEN: Listen to this. Speaking of endings ...

HOLMES: Yes, this is a strange story. This sound like a good couple, 110-year-old and 80-year-old. OK.

NGUYEN: Interesting visual there.

HOLMES: We are talking about lizards here, though, folks. Age ain't nothing but a number.

NGUYEN: Oh, and that's what they say. But look at Henry and Mildred. They actually hooked up in a museum in New Zealand and are now the proud parents of 11 babies. Now, they are the descendants of dinosaurs. And they flourish on the planet some 200 million years ago. You see these lizards right there. Henry is a first time dad at 110 years old.

HOLMES: A hundred and ten. Some guys want to wait.

(LAUGHTER)

NGUYEN: He is the oldest ever to mate in a museum. We can't say the first ever, just the oldest.

HOLMES: Yes.

NGUYEN: This is just -- what did he eat? I hope that was not one of his offspring.

HOLMES: One of his young.

(LAUGHTER)

HOLMES: Acting up.

All right. We are going to continue on here in a half hour. Betty and I will be back. But right now, Doctor Sanjay Gupta and "HOUSE CALL." We'll see you back here at the top of the hour.