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CNN Saturday Morning News
In Angola, Pope Urges More for Poor; 20 States Launch AIG Investigations; Senator Says He Was Misled on Bonus Legislation; Federal Reserve Buying Billions in Treasuries
Aired March 21, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Welcome back.
BETTY NGUYEN, CNN ANCHOR: It is good to be back.
HOLMES: With -- it is good to have you back this morning, Betty Nguyen. You good? You rested? You ready to go?
NGUYEN: I think we're all here. So far, so good. But it is only...
HOLMES: It's just 6:00.
NGUYEN: ...6:00 a.m., and we got six hours to go.
HOLMES: Yes, March 21. Here we are. It's the second day of spring, and I'm told. But I am T.J. Holmes. She is, as I mentioned, Betty Nguyen, who's back from vacation.
NGUYEN: Yes, good morning, everybody. Thanks for joining us. It is, as I mentioned, 6:00 a.m. here in the East, 11:00 a.m. in Angola, Africa. Why? Well, that is where Pope Benedict XVI just wrapped up his morning Mass. He held a private service at one of Luanda's oldest churches. There's look at it right now.
Pope Benedict is in a weeklong tour of Africa, meeting with African leaders about poverty, oil, corruption and AIDS. And you know what? Here's what interesting, too -- because he made some really fascinating comments about condom usage. You don't want to miss that.
HOLMES: Also, back here, people continue to jump on the AIG- bonus-outrage bandwagon.
(LAUGHTER)
HOLMES: Twenty now state investigations have been triggered over those $165 million in bonuses that were paid out. Attorneys general of all these states now, they are getting involved. And who knows what they can really do, but they're asking these executives to justify all those bonuses.
NGUYEN: Well, everybody's weighing in. In fact, we want you to weigh in this morning on our Facebook pages, our Twitter pages, weekends@cnn.com. Lots of ways for you to do that. So send us your thoughts.
Also, you've got to check this out.
HOLMES: This is outrageous. (INAUDIBLE).
NGUYEN: A smackdown. Look at this video. Can you believe -- oh! Oh! Fists are flying! These folks are supposed to be getting ready for one of the happiest days of their lives. Now...
HOLMES: She's going to have a shiner on her way to (INAUDIBLE)
NGUYEN: ...things are getting a little heated with the annual Running of the Brides.
HOLMES: Yes, one of my favorite stories of the day. And it shouldn't be, because it's for all the wrong reasons. But we'll show you that video and more about what happened there. Get to all of that in a second.
But up first here, and new overnight we're just hearing, that on Monday, that could be a big day. We could get some more specifics on the plan the U.S. has to bail out a lot of U.S. banks.
You're seeing there, the Treasury Secretary, Timothy Geithner. He was speaking with our Ali Velshi earlier this week. Hearing he may unveil some details about the plan on Monday.
Banks, of course, need to get rid of a lot of those toxic assets. A lot of that was based on some bad mortgages. Sources are now saying that the plan would use federal money to cover the risk for private investors to buy some of those bad assets.
NGUYEN: Well, President Obama does have a plan to make sure the $787 billion stimulus package goes toward creating jobs and not waste. He has laid out guidelines that bar state and local officials from using funds to build, among other things, casinos, aquariums, golf courses and dog parks.
The president also said discussions between lobbyists and his administration will be disclosed on the Internet for all to see.
HOLMES: Well, a private wake held yesterday in New York for actress Natasha Richardson. London's West End theaters, as well. Broadway dimmed their lights. Richardson, you may recall -- you see her husband there, Liam Neeson, going into this private ceremony.
But Richardson died this week after a ski accident. You may remember she, in fact, bumped her head, thought she was OK. She was actually functioning and feeling just fine for the -- a couple of hours, or at least immediately after that accident. Seemed minor, but turned out to be what took her life.
Again, Natasha Richardson, 45-years-old.
NGUYEN: Well, going after the AIG bonuses: 20 states have announced official investigations in to the $165 million in bonuses paid out by the company. Now in Connecticut, the state attorney general issues subpoenas for AIG CEO Edward Liddy and 11 other executives. The state's senior Senator Chris Dodd, who has been criticized for legislative changes that he made, which allowed the bonuses to move forward -- well, he is defending himself, saying he was misled by Treasury officials.
(BEGIN VIDEO CLIP)
SEN. CHRIS DODD (D-CT.), CHAIRMAN, SENATE BANKING COMMITTEE: I'm the author of what was an 11-page amendment that covered the waterfront, I thought, eight weeks ago -- seven weeks ago -- on dealing with these issues. And so, no one's angrier than I am to watch something that I thought was worthwhile to put into that bill. I wouldn't go around and change my own amendment within days of that if I didn't think it was merely technical in nature.
And so, I'm angry about it, and angry that in a sense, I've been held up as sort of responsible for all of this, when in fact I responded to what I thought was a reasonable request at the time, which has turned out to be far more than that.
(END VIDEO CLIP)
HOLMES: If you didn't catch all of that, let us -- let us paraphrase. It wasn't me.
NGUYEN: Right. It was somebody else.
HOLMES: Essentially, that's what he's saying.
But yes, everybody -- the outrage bandwagon, everybody's getting religion. He even said that yesterday during that press conference -- everybody's getting religion about this now.
The whole AIG controversy playing out in D.C. President Obama, that was on his plate as well.
He was actually on the road. He was trying to get some other crucial issues out there in the public eye, talking about those, pushing forward with his issue.
NGUYEN: Yes, but, you know, some critics argue that he could burn himself out juggling so many projects at the same time, and is already beginning to make some mistakes.
Here's CNN's Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): AIG week consumed most of the Washington establishment. Except:
BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: Thank you, guys. Thank you.
CROWLEY: If it's Friday, this must be the meeting with state legislators, about the stimulus plan.
OBAMA: I don't need to remind you that the American people are watching what we do. They need this plan to work. They're skeptical. And understandably, because they have seen taxpayer dollars frittered away before.
CROWLEY: Just one of the week's 17 Obama sightings from coast to coast.
OBAMA: It is always good to get out of Washington for a little while.
CROWLEY: Especially nice when the places consumed by those AIG bonus payments to executives. The president's Treasury Secretary Timothy Geithner spent the week inside the ring of fire as Washington bickered over who created a legislative loophole which aloud AIG to give out the bonuses.
Turns out, Treasury pushed for it, though Senate Banking Committee Chairman Chris Dodd bore the brunt of the criticism.
DODD: I'm disappointed, frankly, those who requested this kind of a change didn't have the courage to stand up a couple of days ago and admit that they were the ones who asked for it.
CROWLEY: Largely above the storm, the president was out and about, everywhere, pushing everything, which one Republican critic says is how you miss things like that bonus loophole.
MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: If everybody was staying home, doing their job, focusing entirely on the economy, is that something that somebody would have read? I mean, you had a 1,000- page bill, someone tough to have read it before they signed it.
CROWLEY: But the president thinks now is the time to push big, for health-care reform, his budget, an energy plan, education reform.
And he is his own best salesman. Secretary Geithner shows no affinity for the public eye; top economic adviser Larry Summers is a master behind the scenes.
Paul Begala, who helped manage President Clinton's time doesn't think President Obama is overexposed. Not yet.
PAUL BEGALA, DEMOCRATIC STRATEGIST: Yes, I think the president can be overexposed and there is a lot of danger to it. For one thing, he is a human being. He's going to get tired and make mistakes.
CROWLEY: Like, say, a quip about his bowling game.
OBAMA: I bowled a 129.
JAY LENO, "TONIGHT SHOW" HOST: No, that's very good. Yes. No, that's very good, Mr. President.
OBAMA: It was like -- It was like Special Olympics or something. CROWLEY: Before the show, aired President Obama phoned the head of the Special Olympics.
But to jokingly compare his poor bowling game to an event for a disabled is a rare slip for a president who deliberates over every word.
Still, next week promises more of the same, the president as salesman-in-chief for his budget, health care, energy policy, and education.
BEGALA: I think when you have Michael Jordan, you want to give him the ball.
CROWLEY: The problem is, at this moment, the president is the only one on the court.
Candy Crowley, CNN, Washington.
(END VIDEOTAPE)
NGUYEN: And one of our iReports says, "Enough already" about the AIG bonuses. He points out that it is a small factor in the economic crisis.
Take a look.
(BEGIN VIDEO CLIP)
DAN LITERSKI, IREPORTER: Here you're worried about $165 million in bonuses that were given out. Yet you have all these people in unemployment that are spending much more than $165 million a week. But yet you're -- you're focusing your attention on the $165 million. Enough.
Here's another $5 billion I just read that you're giving to auto suppliers to help them stay in business. It -- it's not going to help. You got to put the people back to work.
(END VIDEO CLIP)
NGUYEN: All right. So you see, if you have any stories or videos that you want to share with us, you can send them to ireport.com.
And in addition to our iReports, e-mail us: "Who do you think is to blame for the whole AIG mess?" You can weekend -- e-mail us at weekends@cnn.com, or you can search for us on Facebook, Twitter, all of that. Our addresses on Twitter as -- Twitter.com/BettyNguyenCNN, or Twitter.com/TJHolmesCNN.
Let us know what you think this morning.
HOLMES: All right, Betty. This is -- in brides -- you know, getting ready for your wedding. It's a big thing.
NGUYEN: Oh, absolutely. HOLMES: It's a big day. And I guess one of the biggest things is finding the dress. Is that right?
NGUYEN: And for some folks, finding a deal, which means women will come out of the woodworks. And -- and it can get kind of combative, in fact.
HOLMES: Who knew?
NGUYEN: Take a look at this.
(BEGIN VIDEO CLIP)
(SHOUTING)
(END VIDEO CLIP)
NGUYEN: Oh, my goodness. She slapped her. Uh-uh.
(LAUGHTER)
HOLMES: OK, that's not funny really. But you know you got to laugh (ph). That is just ridiculous. We should get their fiances on the phone this morning and ask them how they feel about that.
NGUYEN: Or do they still want to marry these women after they know their violent tendencies?
HOLMES: Oh my God.
(LAUGHTER)
NGUYEN: But, you know -- hey, look, these dresses are so deeply discounted that, as you saw, people are running; they are grabbing; they are undressing in the -- right there -- in the middle of the store, to find that one dress, that magic dress, that's going to make their wedding day just perfect.
HOLMES: Worth fighting about?
NGUYEN: Now, hopefully, they won't have...
HOLMES: Is it worth fighting about? Is it worth fighting about, Betty?
NGUYEN: ...like you said, a shiner...
HOLMES: Yes.
NGUYEN: ...for that wedding day. But, hey, you know, a deal's a deal.
(LAUGHTER)
HOLMES: We'll be showing that video, Reynolds, all morning long. Is it that serious? NGUYEN: Yes, did your wife ever go through anything like that?
REYNOLDS WOLF, CNN METEOROLOGIST: No, not at all. I -- I certainly hope not. That's one of those things that I -- I kind of try to stay out of the -- out of the conversation myself. Certainly some scary stuff.
But what I want you to notice, next time we run that video, I want you to notice the dude who's standing behind or between the two women...
NGUYEN: Uh huh.
WOLF: ...that threw the punch. You got to see the expression on his face. It's really something.
NGUYEN: All right. We're going to re-rack it.
WOLF: Here it is. Look at him. Keep -- keep on his eye (ph). Keep looking at him. Keep looking at him. Watch this. Watch this. Oh, wait. This is going to take too long.
Anyways, it's just fun to watch the expressions changer.
HOLMES: He just had his arm up. He just...
WOLF: Crazy times, guys.
NGUYEN: He's looking at them, going, "These women are nuts."
WOLF: Absolutely. No -- no question.
HOLMES: What was he doing in there though?
WOLF: Hey you guys, I did some shopping myself.
NGUYEN: Security? I don't know.
WOLF: I did some shopping myself...
HOLMES: Yes.
NGUYEN: OK.
WOLF: ...recently for a great story and found one. I met three ladies who have been very successful in this rough economic time. We're going to talk about that coming up in just a few moments.
Plus, we're going to talk about your weather. Some rough stuff straight ahead.
(COMMERCIAL BREAK)
(MUSIC)
HOLMES: All right. Like to have some positive economic stories here we can -- we can have.
NGUYEN: Finally. Yes.
HOLMES: And you'll hear this a lot. A lot of places are coming down, a lot of places are firing people. But a mom-and-pop shop that's doing real well.
NGUYEN: Yes, only this store is more about mom and pop. Check it out.
(BEGIN VIDEOTAPE)
WOLF (voice-over): It began in 2006. Three friends abandoned their corporate jobs with one simple business idea: to create an apparel company that celebrates motherhood.
Drawing on their separate strengths, PeaceLoveMom was born. And now, three years later, amidst a grim recession, their company's not only staying afloat, it's flourishing.
LORI POYNER, PEACELOVEMOM OWNER: We've gone from zero customers to over, I guess, 350 retails from coast to coast.
WOLF: They say that kind of growth comes from a belief in their message and their product.
SUZANNE SIMKIN, PEACELOVEMOM OWNER: Besides developing a great product that everyone wants, I think we know who our customer is and what they want. And we are going after that customer and matching our product with their needs.
WOLF (on camera): You have to do (ph) something that's creative. You did something that's really neat.
Where do you get your ideas?
KAREN ELDERBERG-GOLD, PEACELOVEMOM OWNER: You know, we look for what's trendy, what's interesting and just also try and put a unique spin on it, too.
WOLF (voice-over): And they credit that unique spin to their diverse opinions.
SIMKIN: I think that's what makes us successful because we can all look at the business differently, then put all the pieces together and then make the best decision we can to be a successful business.
WOLF: A professional transformation was a voluntary option for these three entrepreneurs. But with jobless rates approaching record highs, it is a must for many.
(on camera): If someone that is thinking about starting their own business, are there any warning that you'd give them?
SIMKIN: You have to absolutely be a strong time manager. You have to make sure that you are highly organized, and you have to be able to handle stress. At the end of the day, if the cash didn't come in, you're not getting paid.
WOLF (voice-over): Perhaps the most important thing, Simkin says, is to love what you do.
SIMKIN: You have to get up and think, "This is the greatest thing ever." I get up every morning and say, "Ah, PeaceLoveMom. I love PeaceLoveMom." I might have a bad moment, but I never have a moment where I say, "I don't like what I do."
WOLF: And it's that mindset, they say, that allows them, even in these tough economic times, to keep the orders coming in, and the products going out.
(END VIDEOTAPE)
WOLF: So what's PeaceLoveMom? That's a question you guys had.
NGUYEN: Yes, what is that -- yes, what is that all about?
WOLF: That was a question you were afraid to ask me, because you didn't -- afraid I wasn't going to know the answer.
NGUYEN: But you do.
WOLF: But I got you both; I do know the answer.
NGUYEN: All right.
WOLF: It's a celebration of motherhood.
NGUYEN: Thanks, Reynolds.
WOLF: And a celebration of peace and a celebration of moms. Hence, PeaceLoveMom. It's like a -- like a word sandwich.
(LAUGHTER)
WOLF: The -- the great thing about -- the three of them -- is that they all have different skill sets. They're very different backgrounds. And what they do is they take their differences and they put them together and that really gives them a lot of strength.
One thing that is very interesting about them: they're all so optimistic. They have had their struggles in this business; they now are so successful. And it's a really inspiring and good thing to see.
The -- the No. 1 thing they tell you is -- is -- the best advice they give you is -- is just, you know, roll with things.
NGUYEN: Yes.
WOLF: Things are going to go bad. You're going to have those bad moments. But that certainly is not, you know, the -- the end of the world. You have to weather these storms. They're going to happen. And things are going to get better, and they always -- you always have your ups and downs in business. NGUYEN: And that's important, too, because a lot of people will talk about the power of positivity, even when you're going through those down slides (ph).
WOLF: Absolutely.
NGUYEN: If you can't stay up and be positive about it, then of course you're going to fall with the house of cards when they go down. But if you stay positive, then things will turn around.
WOLF: No question about it.
Hey, switching gears a little bit...
NGUYEN: OK.
WOLF: ...we're going to see some things turn around in terms of a forecast...
NGUYEN: Oh, good.
WOLF: ...especially in parts of the northern Plains.
NGUYEN: It's spring, right?
WOLF: It is spring. But we're going to see a lot of the snow that we've been getting in the northern Plains begin to melt and -- and we could have some flooding in these spots. So kind of a scary thing.
Let's go right to the weather computer. And as we do so, first and foremost, what you're going to be seeing this morning will be some scattered showers and storms across the nation's midsection.
Now as you make your way into the northern Plains, you're not seeing much there for the time being. What you will be seeing there later on today is the heavy snow they've had through much of the winter is going to begin to melt. And as that melts and you have some additional heavy rainfall that -- what they may see in a couple of days -- well, the river levels are going to rise. And once they rise, we could have flooding.
Places like, say, Fargo, North Dakota -- at this time, they have those warnings in effect. Anything you happen to see on this map that's shaded in the dark green or the lighter green is either a -- a -- warning, a watch or an advisory. So this is going to be your top weather story. Certainly keeping a sharp eye on it -- river in Fargo. A lot of people stocking up sandbags, getting ready for those waters to rise. So certainly a scary prospect there.
This morning, it's a rude awakening for people across parts of Arkansas, Missouri and then back in Chicago. Most of the showers moving out over the lake. We have a live image for you in Chicago. Let's go to that now if we can.
Here it is, compliments of CLTV. And in Chicago, and then back over to parts of Michigan, snow is going to be in the picture. As we go back to the weather computer, you see those scattered snow showers along parts of 75. It seems like winter is never going to end in parts of Michigan. I know the -- the calendar now says spring, but still, the snow continues to fall.
High temperatures in -- in Chicago going to 56; 52 in D.C.; 64 in Atlanta; 78 in Dallas; and 71 in Denver.
That is a look at your forecast. I got more coming up throughout the morning.
Let's send it back to you guys.
NGUYEN: All right. Well, happy...
WOLF: PeaceLoveMom.
NGUYEN: Yes, PeaceLoveMom, and happy spring.
WOLF: Yes. Exactly.
NGUYEN: Thank you, Reynolds.
HOLMES: All right. Thanks, Renny.
NGUYEN: So our country needs money.
HOLMES: Yes.
NGUYEN: We know this, right? Can the government though jut print up some of that cash?
HOLMES: Seems to be their plan right now.
NGUYEN: Yes.
HOLMES: Wouldn't it be nice?
NGUYEN: We've heard Ben Bernanke pretty much say that they're printing money.
HOLMES: They're printing money. If we ran out of money in our accounts, how wonderful would that be if we could just go print some?
NGUYEN: Make a little more.
HOLMES: All right.
NGUYEN: I like the idea.
HOLMES: Josh Levs here though to talk about why that's not necessarily the best move to make, however.
JOSH LEVS, CNN CORRESPONDENT: Right.
HOLMES: Good morning, Josh. LEVS: Hey, good morning.
Isn't that everybody's dream? Like, you go up to an ATM, and it just keeps spitting out all this cash, right?
NGUYEN: Absolutely.
LEVS: That's the point (ph). What's another $1 trillion? So yes, the government can do it.
But is it the right call? So -- well, here's what we're going to do: We're going to show you what happened after the government threw a trillion new dollars into the economy just this week.
(COMMERCIAL BREAK)
HOLMES: All right. We're in trouble; we're in debt; we're out of money. Here's an idea: Let's print some.
NGUYEN: Doesn't sound too bad, right?
HOLMES: Doesn't sound too bad. That's what the government did this week: printed out $1 trillion.
So how exactly is this going to make things better?
NGUYEN: Yes, but there's always a catch when it comes to stuff like that.
HOLMES: Of course.
NGUYEN: Josh Levs joins us now to walk us through it and how this isn't exactly the best thing to do.
LEVS: Yes. I mean, a lot of people are really scared about what's going to come out of this, which is a little ironic, because it's cool to watch, right? All these trillions of dollars getting printed and getting thrown into the system.
I want to just show you guys the basic idea about what's happening with this trillion dollars, exactly where it's going. We have a cool chart that we're going to show you here thanks to the fine folks at CNNMoney.com that'll bring it down.
Basically, this $1 trillion goes two major places. They're buying up these Treasury securities, the $3 billion; and then what's called mortgage-backed securities at about $750 billion. And what that chart boils down to, by buying up these things, they're hoping that they'll be able to reduce the mortgage rates in America and make it easier for the government to borrow money.
But another goal that they have in doing all of this, guys, is to actually raise inflation. And that's one thing that the Fed's pushing for right now.
NGUYEN: And that's not a good thing. LEVS: Right. I mean, yes, a lot of people think it's not. That's something that's -- actually scares a lot of America.
NGUYEN: Yes.
LEVS: Our polling is showing that; a lot of Americans say it's one of their -- their top concerns.
But here's what's tricky. There's this Web site over here -- let me show you guys. Where is this? Here, investorguide.com. But listen -- you know what? Let's just go to the graphic, because I have a quote for you from it, and they actually say, you know what? Is inflation good?: "In a word, yes. But it's essential that organizations like the Fed keep a close eye on its status and make the necessary adjustments."
The reason here is that when there's a time of growth in America, there is some inflation. So to some extent, inflation is good. And that's why the Fed wants to see it.
In fact, one more thing -- let's show them this last quote. This is interesting. The Fed saying, they don't think there's enough of it. They're saying, "Inflation could persist for a time below the rates that best foster economic growth and price stability in the longer term."
So short version here: they want a little more inflation to get this economy growing.
But Betty, you're right, long term, it can be a bad thing. They really have to make sure it doesn't go too far.
HOLMES: All right. But some inflation, good. It's only been a week, still, we know, with this $1 trillion. I don't know. We -- we need instant gratification these days. We always want to know if it's working.
NGUYEN: Right.
HOLMES: So any way to gauge whether or not it's -- or not it's working already?
LEVS: It's -- I think everyone in Washington just applauded for you, because they keep saying, 'Give us time,' right?
HOLMES: Yes.
LEVS: Well, look, it did cause some inflation. So to some extent, that's good.
Also, it had an effect already on mortgage rates. Our Ali Velshi explained that.
(BEGIN VIDEO CLIP)
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: ...to us today. After the Federal Reserve made the announcement about the money that they're injecting in the system, mortgage rates in the United States went from 5 percent to 4.6 percent.
Zillow.com tracks house prices and mortgage prices. That is a dramatic drop in mortgage rates, and that's exactly what the Federal Reserve had hoped. They put money into the system; they're buying up -- allowing Freddie Mac and Fannie Mae to buy up mortgages from your bank, making your bank able to give more loans at a lower rate, and that's exactly the effect that it's had.
So a dramatic effect. A lot of people thinking that the Fed has done something that the White House hasn't been able to do, and it's been a -- a very big deal, even amongst all of the other business news that we've been talking about.
(END VIDEO CLIP)
LEVS: And you're getting to get to see a whole lot more Ali Velshi tonight. They've got that special coming up, guys. It's "FACTS AND FURY," tonight, 8:00 Eastern; then again tomorrow night, it's -- they're following the AIG crisis, the AIG scandal, the money, the outrage. Who is to blame? We got the whole CNN Money team in on this, the search for truth inside the AIG scandal.
And I know Ali is up early this morning to make sure I promo him, right? So I hope I did you proud there. I'll go check my e-mail now.
NGUYEN: Well, you know, he's been hard at work because he also interview Tim Geithner...
LEVS: Yes, he did.
NGUYEN: ...and getting a lot of good information on that as well.
LEVS: All over it.
NGUYEN: So we will be following up.
Thank you, Josh.
HOLMES: (INAUDIBLE)
LEVS: Thanks, guys.
NGUYEN: So are you looking for a job? Because we want to help you with your resume. And all you have to do is e-mail them to us at weekends@cnn.com.
HOLMES: And as you just mentioned, the Treasury secretary, a lot of folks don't like how he's doing his job right about now and dealing with this whole crisis. A big job, a job probably nobody would want, or could even do.
But still, there are arguments out there for and against Timothy Geithner resigning. (COMMERCIAL BREAK)
NGUYEN: They are rocking out, morning, moshing, and body surfing and all of that.
Good morning, Austin, Texas. That's how they do it in the South.
HOLMES: That's how y'all do it. You've spent some time down there.
NGUYEN: Been there, done it a few times. Music is in the air for the South-By-Southwest Festival. We're going to take you there shortly.
Meantime, welcome back. Good morning on this spring Saturday, beginning of spring, right?
HOLMES: Spring day, yes.
NGUYEN: I'm Betty Nguyen.
HOLMES: Our first spring weekend. Hello to you all, I'm T.J. Holmes. Glad you start your day right here with us.
NGUYEN: So, the feds have shut down three more banks. If you are keeping track, a total of 20 have closed so far this year. That story is one of our most popular on CNN.com. Here are the latest banks to fail. Colorado National, First City, in Georgia, and Team Bank in Kansas. For maps showing the closures in your area, all you have to do is check out our website.
HOLMES: The U.S. Postal Service slashing 3,000 jobs; also offering early retirement to about 150,000 other workers. This comes after the post office lost almost $400 million last quarter. The changes are expected to save about $100 million a year.
Let's take you, now, to Angola, live pictures we have for you here. This is where Pope Benedict XVI is just wrapping up morning mass. He held a private service in one of Rwanda's oldest churches. That's the capitol, there, of Angola. Pope Benedict is on a week-long tour in Africa meeting with African leaders, talking about poverty, oil, corruption, and AIDS.
NGUYEN: Well, Treasury Secretary Timothy Geithner says no one in the administration was trying to keep AIG's bonuses a secret, but Geithner, who spoke with our Ali Velshi this week, admits that he didn't know the full details until 11 days ago.
AIG filed plans to hand out $165 million in bonuses in September, even though the company took billions in government bailout money. This week AIG's chief executive said some employees have recently returned that bonus money. And a provision in the stimulus bill allowed AIG to keep those bonuses. The man who added that in, Senator Chris Dodd. And he is taking a lot of heat for it.
HOLMES: Yeah. Some say he should be taking a lot of heat. He looked into our producers, into our camera's eyes, and essentially told us he had nothing to do with this, denied any involvement. Well, just a day later, he flipped the script. Listen to him now.
(BEGIN VIDEO CLIP)
DODD: I apologize if I had some confusion about whether or not we wrote it exactly. But I didn't write it at my own behest. I was being sought out and asked to modify this with the alternative quite candidly being losing the amendment itself. In fact, even a few was after that you may recall the administration suggested they were probably going to have to come back and maybe modify this even further.
Again, as I said a moment ago, there were those who were highly critical, in fact the last month I've been highly criticized by many for including this kind of language in the bill at all. It's somewhat ironic, as I said that the very people who are critical of me putting in the language are being critical -- that we weren't restrictive enough.
(END VIDEO CLIP)
HOLMES: All right. Secretary Geithner now admits the administration did ask Dodd to put in the provision. They had trouble with the way his was, and wanted him to change it up, so he did. So with so much of the blame on Geithner now, can he hold on to his job?
Louise Schiavone taking a look.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice over): The question that has brought down many an official before him, now haunts Treasury Secretary Timothy Geithner, what did he know and when did he know it?
TIMOTHY GEITHNER, SECRETARY OF THE TREASURY: I was informed by my staff of the full scale of these specific things on Tuesday, March 10th.
SCHIAVONE: The Treasury secretary tells CNN, that's when he learned about AIG's multimillion-dollar bonus bonanza, although there is this evidence that on Capitol Hill a full week before that, Geithner was specifically informed of the bonuses.
REP. JOSEPH CROWLEY, (D) NEW YORK: Further bonus payments totally approximately $230 million are due to 407 participants at AIG's financial products division in March 2010. This makes no sense to my constituents.
SCHIAVONE: But it seemed, at some level, to make contractual sense to the Obama economic team. Who, Geithner tells CNN, worried about the legal fallout of stopping the bonuses.
GEITHNER: What we did is just express concern about the vulnerability of a specific part of this provision, the legal challenge, as you would expect us to do. SCHIAVONE: President Obama suggested on "The Tonight Show" that focusing on the legal was misguided.
OBAMA: There's a moral and ethical aspect to this as well. I think that's what's gotten everybody so fired up.
SCHIAVONE: Analysts say it's not easy to apologize your way out of this situation.
DAVID SMICK, FINANCIAL STRATEGIST: This awakening of a sleeping populist giant is a nightmare for Geithner. This is the last thing he needs.
SCHIAVONE: While Geithner still has his defenders.
REP. ELIJAH CUMMINGS, (D) MARYLAND: We've got a secretary, again, who is working long hours, giving it the best he can, the last thing he needs is for us to be throwing spitballs from the sidelines.
SCHIAVONE: Calls have begun for Geithner's resignation, this from Senior Republican Darrel Issa, quote, "There's a contradiction in the president expressing outrage while simultaneously standing by his Treasury secretary, who is responsible for ignoring warnings and mismanaging the situation."
(On camera): How secure is Secretary Geithner's job? Analysts believe he's on thinner ice today than he has been in recent weeks. Protecting them, though, is the fact that the Treasury Department is still running on a skeleton crew, background checks for White House jobs could take as long as two months. And there's little enthusiasm among key figures in the financial world to enter the political fray.
Louise Schiavone, for CNN, Washington.
(END VIDEOTAPE)
HOLMES: All right. Let's bring in our CNN political editor and friend of our show, here on CNN SATURDAY & SUNDAY MORNING, Mark Preston joining us this morning from Washington.
Mark, good morning to you kind sir. We appreciate you being here as always. You heard Louise, there, at the end talking about him being on thin ice. Still, the president is standing by him. Tell us out there, a lot of people talking about, maybe he should go. We're starting to hear this drum beats. Well, is his job safe?
MARK PRESTON, CNN POLITICAL EDITOR: You know, T.J., I think his job is safe right now. He's only been in that position now for six weeks. At this point he probably hasn't even unpacked his boxes. He's having to deal with the auto bailout. He oversaw the stimulus bill that went through. He has to deal with the housing crisis. There is a lot on his plate. Of course, that's what we've heard from president Obama. We've heard certainly from his supporters.
The problem with Geithner is the fact that he hasn't been as smooth as some had hoped. You know, when he gives these speeches, T.J., you know, they've been a little bit rough. He hasn't even calmed the markets down in some people's eyes. Of course, this AIG thing really has hit him hard.
HOLMES: You say he's not so smooth. We're going to hear from the president here, in just a second, but on that point you just made, not so smooth. How much of this is maybe not learning on the job as far as the technical aspects, and the smarts of it, but sometimes just being able to sell it and get in front of a camera and to make that pitch in a way people will understand and to calm people down and make them feel better?
PRESTON: I think you're right about that. Certainly Geithner, when he was mentioned, that he was in line for this job, you certainly didn't hear very many critics about him taking this position. But the fact of the matter is, when he's gone out in front of the cameras, he hasn't done a terrific job. A lot of it is a selling job. But again, let's go back to what he has to deal with. He's dealing with the houses crisis, he's dealing with this stimulus bill right now, dealing with the auto bailout. There's a lot on his plate.
HOLMES: A lot on his plate. And as we know, he doesn't have a lot of lot of those assistants and a lot of those deputies in place, haven't been confirmed. I believe still 17 immediate positions right under him have not been filled, haven't been confirmed. That's another issue as well. But as we mentioned, the president standing by his man. In large part, he has to stand by his man. Let's listen to the president here. I'll ask you about it on the other side.
(BEGIN VIDEO CLIP)
OBAMA: This guy has not just a banking crisis, he's got the worst recession since the Great Depression, he's got an auto industry on -- that has been on the verge of collapse. We've got to figure out how to coordinate with other countries internationally. He's got to deal with me. He's got to deal with Congress. You know, and he's doing it with grace and good humor, and he understands that he is -- he's on the hot seat. But I actually think that he is taking the right steps and we're going to have our economy back on the move.
(END VIDEO CLIP)
HOLMES: And, Mark, we hear the president say he's got to deal with me, he has to deal with all these things, he has to deal with Congress. And Congress is where we're starting to hear a few more people step forward and call for Geithner to step down.
PRESTON: Yes, T.J., you're absolutely right. But I will tell you, you know, just President Obama going out and saying that on the Jay Leno show the other night, and of course, we've heard that all week is very, very important, you know, to get that stamp of approval very publicly.
You're right, we could be hearing more and more outrage coming from Congress. Let's just take a look at what the first person who called for his resignation said earlier this week. This is Representative Connie Mack from Florida, T.J. OK, so we don't have that up. Let me just paraphrase some of the things that he said, T.J. He said that Timothy Geithner should either resign or be fired for the good of the country. He also said that the Tim Geithner experience has been a disaster and Treasury Department is in disarray.
Of course, Connie Mack, Republican from Florida, said this a little bit earlier this week and we are hearing more and more now coming out of Congress, particularly from Republicans, calling on Mr. Geithner to leave his position.
HOLMES: All right. Well, we'll see if he holds onto it. The president is certainly standing by him. Mark Preston, we're going to talk to you again in the next hour, so rest up this morning. I know you're not feeling so well. We appreciate you being here with us.
PRESTON: Thanks, T.J.
HOLMES: All right, Betty.
NGUYEN: We will also be talking about this, tents serving as makeshift homes. Up to 200 people are living in Sacramento's tent city. What's it like to live there? We're going to take you inside.
(COMMERCIAL BREAK)
NGUYEN: All right. We're having a little fun this morning. And a little music from the band, Fast Ball, one of the hundreds playing in Austin, Texas, at the South-By-Southwest Music Festival. This is something we really enjoy.
WOLF: Yes.
NGUYEN: You've lived in Austin, I went to school down there. You cannot walk down the street in downtown Austin this weekend without hearing live music. Take a look at this.
(BEGIN VIDEO CLIP)
(MUSIC PLAYS)
(END VIDEO CLIP)
NGUYEN: Now, a mosh pit. I know you've been there, right?
WOLF: Are you serious, I do that every day.
NGUYEN: I've done some body surfing in my days as well. Fans from everywhere come to South-By-Southwest to hear their favorites and find the next big thing. Local businesses are seeing the benefits of all of this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We're hoping to double what we made last year. UNIDENTIFIED FEMALE: It's been crazy. Like, you don't even get a minute to breathe, really. It's just been backed up.
(END VIDEO CLIP)
NGUYEN: Fantastic that some say this year's crowd is bigger than ever. South-By Southwest is also a film and new media festival. And good times.
WOLF: It is good times. You know, it's not only fantastic, it could be best described as mantastic. And you know what' seven cool, too, is the great memories of stumbling around auditorium and stores near the Stevie Ray Vaughn statue.
NGUYEN: Why you were stumbling?
WOLF: Enjoying a Shinerbacher (ph).
NGUYEN: Oh, that's why you were stumbling.
WOLF: Just great times. A happy community and it's a great event. It's great to see people getting out there enjoying themselves.
NGUYEN: Especially in these troubling times. Every now and then you need to have release, and this is a good one where you can learn about some new bands.
WOLF: Absolutely.
NGUYEN: Some new films, and you know, get educated on what's out there on the scene.
WOLF: Yes. It's a rite of spring, it really is in Texas. Right now we're seeing rites of spring across parts of the Northern Plains.
What are they doing back there?
NGUYEN: I have no idea. Hey, it's South-By-Southwest, you never know.
(WEATHER FORECAST)
HOLMES: Last week we told you about California's tent city. This is pretty much an empty area of town there, on the river, where hundreds of Sacramento homeless are living. But after worldwide media attention the city says it's shutting the thing down. Essentially giving eviction notices for people already evicted from somewhere else.
Here now is affiliate Steve Large (ph) from affiliate KLVR.
(BEGIN VIDEOTAPE)
STEVE LARGE, KLVR REPORTER (voice over): You would never know it was here if you didn't look for it. On the other side of the train tracks, under a slew of SMUG (ph) power lines and now in the focus of national and international media crews, it is a city of tents. This is the unofficial mayor, Rico.
RICO, MAYOR OF TENT CITY: A lot of these people out here, they consider this home. And they really mean it. Some of us, we're trying to get the hell up out of here, you know?
LARGE: And now the real mayor has a million-dollar plan to clear it out.
MAYOR KEVIN JOHNSON, SACRAMENTO, CALIF.: We've got to have tough love, but we've got to be very compassionate.
LARGE: The homeless here will be given choices. Cal Expo (ph) as shelter, churches, community centers and permanent housing solutions will all be made available.
UNIDENTIFIED MALE: It's not going to work, man.
LARGE (on camera): The city says about 150 people live in this area that's become known as Tent City. But if you ask the people living here, they'll tell you that number is a lot higher, maybe as high as 250, or 275. And about another seven people move in every single day.
(Voice over): One welcome addition on this day, Port-O-Potties, rented by Sacramento Pastor Darrell Wilheight (ph). If the city has its way, they won't be needed for long.
JOHNSON: The city has got a plan in place, from what I understand. I haven't seen a lot of action in terms of the plan.
LARGE: But Mayor Johnson is calling on everyone to keep watch.
JOHNSON: And I challenge everybody who came from international and national, "New York Times," L.A., come back six months from now and do a follow-up story.
(END VIDEOTAPE)
HOLMES: It sounds like one of the same things he told me right here on CNN SATURDAY MORNING, last week. Talked to that mayor you saw, Sacramento Mayor Kevin Johnson last week. Take a listen to what he told us here.
(BEGIN VIDEO CLIP)
JOHNSON: The majority of the people living there are chronically homeless, however, there's a new homeless population in our city not so much all living in tent city, because of unemployment, because of foreclosures. You're having people that once owned their homes who are now on the streets because there's not enough shelters.
We've seen an increase in fourfold in our community, in terms of general assistance, 30 percent increase, food stamp applications, 20, percent increase, 2.2 percent of the children in our greater Sacramento region are actually homeless as well. So we have a significant problem, not with just the chronic homeless, who are living in the tent cities along the river, but also the new homeless population.
HOLMES: Now, you mention there that this is a public -- like a safety hazard. And also they're technically not there legally. However, what do you do in the meantime, the immediate action these folks, like you said, they don't have running water out there. There are no restrooms out there, but still, does the city plan, in the meantime, like compassion you spoke of, to try and provide some kind of services and just help them make it through until a solution is found?
JOHNSON: We have a moral obligation. When I ran for mayor of Sacramento, I've been in office a little over 100 days. My campaign slogan was a city that works for everyone. That was really with the homeless population in mind.
(END VIDEO CLIP)
HOLMES: A few other things of note, here, about Sacramento has one of the highest mortgage foreclosure rates in the country. Some estimate that the number of homeless has increased to 10 percent there in the past year. It is a tough situation that everybody is in out there. What do you do?
NGUYEN: All right. So, let's talk about the American dream, in this economy isn't what it used to be.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Making it, this is the American dream. And for the last few years, you can see, it's almost like vanishing.
(END VIDEO CLIP)
NGUYEN: Immigrants struggling to make ends meet. As the economy dwindles down, more women are actually moving up. That's right. More men are being laid off than women. But ladies, how do you get the higher paying jobs? We're going to talk with a former contestant of "The Apprentice" to get some advice.
(COMMERCIAL BREAK)
NGUYEN: Speaking of money, any chance you might get a tax return? You know, some money back from the government? If you haven't done your taxes just yet, you can get some free advice today, but today only; 250 IRS assistance centers and hundreds of community free tax help sites will offer assistance throughout the day and it's for people who earn $42,000, or less. For locations in your area, all you have to do is go to IRS.gov, click on the link that says "Free Help On Saturday".
Now, I don't have to tell you this, but we're all cutting back, a few less trips to the mall, clipping coupons, we're probably pushing it in between the hair cuts. Of course, though, the companies hit hardest by them, of course, all the small businesses, especially when we're all cutting back. Well, CNN photo-journalist Floyd Yarmouth (ph) has a story now on one small business owner just struggling to hang on to his American dream.
(BEGIN VIDEOTAPE)
SALIM ELALAMI, OWNER, SALON ROUGE: Business has been slow. It's a very, very hard these days. It is very hard to fill these chairs, that are empty chairs. Otherwise, it's just a matter of time before you fold.
UNIDENTIFIED FEMALE: Good afternoon. Thank you for calling Salon Rouge (ph).
ELALAMI: I mean, I come from a Third World country. Where we come from, we watch America on TV. We dream that one day we'll make it there, like everybody else. And making it is the American dream. For the last few years you see it, it is almost like vanishing.
Before the downturn, things were good. Business was booming. We were doing very, very well. But the last years with a lot of people losing their jobs, a lot of people actually --they cut on the hair cuts a little bit. Instead of getting hair cut every four weeks, get it every six weeks. Instead of getting color every month, you get it every other month. We have to either have to reinvent ourselves or fold.
How are you again?
UNIDENTIFIED FEMALE: Good to see you.
ELALAMI: Good to see you. Come on back.
UNIDENTIFIED FEMALE: I haven't had my hair cut since November.
ELALAMI: Since November.
UNIDENTIFIED FEMALE: I guess it's grown.
ELALAMI: The effect of the economy, I guess.
UNIDENTIFIED FEMALE: That is, unfortunately, very true.
ELALAMI: Things have slowed down a little bit. I mean, women get less, probably you've done it yourself. Probably less highlights instead, just go or a cut.
UNIDENTIFIED FEMALE: It's a matter of how I want to feel, about how I look. So there is a cost that I'm willing to pay, or a premium I'm willing to pay for that.
ELALAMI: We just want you to go out there. That's my biggest advertisement. You getting a good hair cut.
UNIDENTIFIED FEMALE: Yeah, I was going to say.
ELALAMI: You go and tell all your friends about it and that makes my day. Voila. Thank you very, very much.
UNIDENTIFIED FEMALE: Awesome.
UNIDENTIFIED FEMALE: That's awesome.
ELALAMI: Pleasure. Thank you, thank you, thank you for your -- thank you for supporting our business.
UNIDENTIFIED FEMALE: Thanks.
ELALAMI: We will overcome this. I have no doubt.
(END VIDEOTAPE)
HOLMES: As we have seen, this week, a lot of Americans are angry over those AIG bonuses. Will they remember their anger when congressional elections come up? We'll check that out with our political editor. Stay here.
(COMMERCIAL BREAK)
HOLMES: Live from the CNN Center in Atlanta, Georgia, this CNN SATURDAY MORNING, 7:00, here, in Atlanta. It is 6:00 in Dallas, Texas, right now. I'm T.J. Holmes.
NGUYEN: Yes, good morning everybody. I'm Betty Nguyen. Thank you so much for joining us today.
All right. So in President Obama's Web address, this morning, he lays out ways that his budget is going to meet four basic needs, that being healthcare reform, the deficit, foreign oil, and education. Now, the president says he knows it will be met with resistance. Take a listen.
(BEGIN VIDEO CLIP)
OBAMA: The challenges we face are too large to ignore. I didn't come here to pass on our problems to the next president, or the next generation. I came here to solve them.
(END VIDEO CLIP)
NGUYEN: OK. So, stay right here because you're going to see more of the president's address and the GOP response in just a moment.
HOLMES: Also, you want to stick around for this. The deals, where can you get 50 percent off of your meals?
NGUYEN: Really?
HOLMES: Yes.
NGUYEN: I like that.
(LAUGHTER) HOLMES: Also, where can you get 15 percent off food gift certificate, half off cruises -- yes, all that good stuff. A segment you cannot literally afford to miss.
NGUYEN: Yes. I'll have to take notes.
HOLMES: Yes. That's coming up. So stay with us here.
We'll tell about this, it happened yesterday. A sad note here for the other family and friends and colleagues of the actress Natasha Richardson who, of course, died this week. You're looking here of a video of a private wake that was held for her yesterday in New York. There you see her husband Liam Neeson. Also in London, the West End Theater there, and Broadway dimmed their lights in honor of the actress.
She died this week after a ski accident. She hit her head and thought she was OK. And several hours later, she ended up in a coma. She was 45 years old.
NGUYEN: Well, we may get some specifics on the plan to save U.S. banks early next week. Treasury Secretary Timothy Geithner who spoke with our Ali Velshi this week may unveil the details on Monday. Now, banks need to sell off toxic assets, mostly investments based on bad mortgages. And sources say the plan would use federal money to cover the risk for private investors to buy those assets.
HOLMES: All right. Take a look at this and just, I don't know if you can keep up -- a lot of numbers, a lot of stuff going on.
This is what you need to know. We're broke. Congressional auditors (ph) say we're going to be broke for a while.
NGUYEN: Yes.
HOLMES: Saying that President Obama's budget will create $9.3 trillion in deficits over the next decade. And that would balloon the national debt that is shown here, it's growing by the second, literally. Analysts, by their count, the tally begins with a $1.85 trillion deficit for this year, spend out of control from there. Their numbers are much higher than the administration's estimates however.
NGUYEN: Well, the White House says it's more optimistic about economic growth than those analysts from the Congressional Budget Office. The numbers came out as Congress gets ready to open the budget debate next week. And despite the figures, the president is not backing away from his promise to deal with the shortfall in his weekly address.
Take a listen.
(BEGIN VIDEO CLIP)
OBAMA: This budget must reduce that deficit even further. With the fiscal mess we've inherited and the cost of this financial crisis, I propose a budget that cuts our budget in half by the end of my first term. That's why we're scouring every corner of the budget and have proposed $2 trillion in deficit reductions over the next decade. In total, our budget would bring discretionary spending for domestic programs as a share of the economy to its lowest level in nearly half a century.
(END VIDEO CLIP)
NGUYEN: Well, the president is leaving for Camp David later this morning. And our Kate Bolduan will have a live report from the White House next hour.
But in the meantime, though, for Republicans, the deficit projections are proof that spending is out of control under President Obama. In the weekly Republican address, Mississippi Governor Haley Barbour says the effects will be long lasting.
(BEGIN VIDEO CLIP)
GOV. HALEY BARBOUR, (R) MISSISSIPPI: This astronomical record federal deficit would be accompanied by the largest tax increases in history. The trillions of new taxes won't nearly cover all the new spending. So, our children and grandchildren will be saddle with trillions more in debt.
(END VIDEO CLIP)
NGUYEN: Barbour also says the stimulus spends too much but puts too much restrictions on how governors can use that money.
HOLMES: All right. The president and the Republicans, they are preparing to battle over the budget. The issue of AIG just won't go away, and those bonuses.
Listen now to this ad by one Republican who's running for a U.S. House seat in New York.
(BEGIN VIDEO CLIP)
JIM TEDISCO, (R) NEW YORK CONGRESSIONAL CANDIDATE: I'm Jim Tedisco and I approve this message.
NARRATOR: America is outraged about $165 million in bonuses paid to AIG executives after taxpayers bailed them out. Like AIG, Scott Murphy gave huge bonuses to executives in a company losing millions, claims he had to do it and he supported a loophole, letting AIG executives keep their bonuses with our money.
AIG and Murphy, he's one of them.
(END VIDEO CLIP)
HOLMES: Mark, come on! I mean, come on. Is this it now? All you got to say, is this person got a bonus, that he got a company that gave bonuses, his mama got a bonus one time. We heard his sis got a bonus. All you've got to do is say bonus and it's toxic like that. Is this what we have to look for?
PRESTON: Yes, absolutely, you know. So, don't tell anyone that you received a bonus this year, T.J., it is toxic.
HOLMES: Yes.
(LAUGHTER)
PRESTON: I will tell you that ad that we just showed there as well has caused some controversy. That is for a special election that's taking place later this month for the congressional seat from the congresswoman who took over Hillary Clinton's Senate seat if you can follow me there. So, it is an open House seat up in New York. That ad has caused some controversy because the local media up there says it actually misrepresents the Democrat who the Republican there is criticizing.
But this has become a rallying cry, certainly from Democrats and Republicans, AIG has. And it has become a big political issue. Of course, we see it in New York. It's become a rallying cry in Virginia where we have all the Democrats including Terry McAuliffe, which a lot of people remember from the Clinton days, who are all seeking the governorship. They are all taking about AIG. And, of course, Chris Dodd, who is up for re-election in 2010, T.J.
HOLMES: Yes. Well, can we tell, yet, if any sign has an advantage just yet, Democrats or Republicans? Everybody is blaming everybody. Everybody is on this holier-than-thou bandwagon about these bonuses now. So, does it look like -- do they all just come out looking bad or does one side seem to have an advantage?
PRESTON: You know, I think, right now, that all sides come out looking bad. I mean, the Republicans will say that this was under Barack Obama's watch -- this was under President Obama's watch.
HOLMES: Yes.
PRESTON: He, himself, says that he's taking responsibility for it. But it could hurt somebody like Chris Dodd, who's up in 2010, T.J. Chris Dodd, you know, is somebody who is expected to sail to re- election.
Now, he does have at least one Republican opponent, a former congressman who lost his seat in 2006. And Chris Dodd is having to answer a lot of questions, certainly after the fiasco this past week when he told CNN one thing on Tuesday and then had to come back and acknowledge that he, in fact, had something to do with the AIG bonuses.
HOLMES: Yes. That wasn't pretty. That wasn't -- wasn't one of his best days, or back-to-back days there, I should say.
On a bit of a lighter note, I suppose we can say here, a lot of people looking for a way to vent, a lot of people are venting to us here on our Web sites, on our Facebook pages and all that stuff. But MoveOn.org, a lot of people are familiar with, at least, the name of this liberal group through a lot of these campaign seasons. But they have a way for you to vent your frustration out at AIG.
Explain this, please.
PRESTON: Yes, this is -- this is very clever. MoveOn.org, of course, the big liberal advocacy group, has this Web page up on their Web site that allows you throw virtual tomatoes, T.J., at the front door of the headquarters of AIG. And, of course, you know, that is -- it's all in fun. But it does have a serious tone to it.
What MoveOn.org is trying to do is to try to collect e-mails and names and try to put this online petition together to try to force these AIG executives to give back their bonuses. And I will tell you, I did sign on just to see how good it worked. And it's a pretty fun game to play for about 45 seconds and you get a little bored.
(LAUGHTER)
HOLMES: I signed up for it as well. I tossed about 15 or so tomatoes. I don't feel any better about the whole thing. I'm actually bored.
PRESTON: Yes, I know.
HOLMES: All right. We're going to see you again here in about an hour or so. What have you got coming up?
PRESTON: All right. Take care.
HOLMES: Well, what do you I was asking, what you got coming up next hour?
(CROSSTALK)
PRESTON: I'm sorry. So, we'll talk about Tim Geithner. We'll talk about AIG. And, of course, at 8:00 o'clock, this is a big day for President Obama, T.J. He has all of his organizers, at least he's trying to get all the people who supported him in his presidential campaign to go out and knock on their neighbors' doors and try to get support for his budget.
So, if someone rings your doorbell or knocks on your door today, it could be a Barack Obama supporter.
HOLMES: All right. We will get into that next hour with you. Don't be so in a hurry to get out here. All right. Mark, we'll see you soon, buddy.
PRESTON: Thanks, T.J.
(LAUGHTER)
NGUYEN: You're making him work. I mean, it's just, what, 7:00 o'clock here on the east coast.
All right. CNN's iReporters are venting as well about the AIG and the bonus debacle. Here's one from New York who says, enough already.
(BEGIN VIDEO CLIP, IREPORT)
DAVID SEAMAN, IREPORTER: Enough, Congress -- enough with the AIG thing. We were the ones who were upset about it, the taxpayers. And now you guys are pretending like you had no idea what was going on. I'm sure a lot of you did have some idea. And now that the House has passed the 90 percent tax on those bonuses, I think the problem has been solved, or at least solved enough.
Time to move on to more pressing issues. What are you doing to improve the job market? What are you doing to help out the unemployed? What are you doing for college students who can no longer afford to go to school?
(END VIDEO CLIP)
NGUYEN: All right. And send us your iReports at iReport.com. We'll be sharing those on the air.
In the meantime though, we want you to e-mail us or go to our Facebook pages, even Twitter. We're on all of these different pages so we can get your reaction to the whole AIG mess. What do you think about it? Who's to blame for it then?
And I'll tell you, if we go to my Facebook page right now, Mark Fairfax Stevens says, "AIG is who he blames for being greedy and irresponsible. Congress for blindly passing yet another bill that admittedly almost none of them read."
And then Anew (ph) says, "Politicians gladly took AIG money for years. Should they be giving it back? And if they did, who would they be giving it to, themselves?"
And you got a lot, too, on your page.
HOLMES: A lot here as well. And I have one here. This is one from Facebook page.
I got one here from April, who is admittedly an Obama supporter but she had to say here and I quote, "I blame everyone, even my boy, Obama, on this one. Yes, I said it, Obama. Maybe if somebody would have read the AIG paperwork, we would not be in this mess."
Of course, everybody saying -- and we talked about it here, Betty. You remember, it was that weekend after that stimulus bill, we said, nobody read the thing.
NGUYEN: The 1,100 pages.
HOLMES: Eleven hundred pages. It was released at about 10:00 or 11:00 at night, they voted on it the next day, and nobody read it.
NGUYEN: And they admittedly came out and said we haven't read it. HOLMES: So, had they read it, maybe they would have caught it. And that's why so many say that now, there's so much blame to go around. They're up there yelling -- AIG, AIG. Well, the people should be yelling -- Congress, Congress, Congress, you didn't read the thing.
NGUYEN: Well, and some senators like Olympia Snowe said, look, I tried to get it in there but it didn't work. So the blame game and the fingers are pointing in all directions and it's a mess that we are just not out of just yet. And I imagine we're going to see much more on this topic.
But we keep those comments coming. We do want to hear from you this morning. Go to our Facebook pages, our Twitter pages, go to Weekends@CNN.com. And we will be airing your responses right here on the air.
HOLMES: Or just call us. I mean, we have all these ways. We put our phone numbers up here.
NGUYEN: Send in an iReport, anything.
(LAUGHTER)
HOLMES: Whatever you want to do. Well, we're talking about women coming up next, a subject near and dear to my heart. How women are surviving, actually, job cuts right now better than men are.
NGUYEN: Yes. And advertisers know that. So, you've got to check out the creative ways that they are trying to get us, ladies, to use our purchasing power.
HOLMES: Yes, former "Apprentice" cast member in the house. There she is. She just took a seat over there.
She's going to be joining us next to give some advice to women who are hanging on to their jobs and climbing the corporate ladder in an industry that is laying off. Stay here with us.
(COMMERCIAL BREAK)
NGUYEN: Well, retailers are calling and going all out trying to get women to spend money. It's just one more sign of how quickly the times are changing right before our eyes.
Here's CNN's Carol Costello.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Look at the difference in styles between the two.
CAROL COSTELLO, CNN CORRESPONDENT (voice over): There has been a seismic shift at OfficeMax.
UNIDENTIFIED MALE: Toy store for us big kids. COSTELLO: Once a company that targeted mostly male consumers -- today has gone positively girly.
(MUSIC)
COSTELLO: OfficeMax isn't alone.
UNIDENTIFIED FEMALE: Women everywhere ...
COSTELLO: Volkswagen and Frito-Lay have gone girl crazy, too. Frito-Lay launching webisodes called "Only in a Woman's World."
UNIDENTIFIED FEMALE CARTOON CHARACTER: I have more fat in my ankles than he had in his whole body.
COSTELLO: These webisodes talk to women as women instead of moms or wives in order to sell women on the idea snacks are for them, too.
NATALIE ZMUDA, ADVERTISING AGE: Women were once considered a niche market but we are no longer a niche market absolutely. We are a market to be reckoned with. And it's good that advertisers are finally paying attention to that.
COSTELLO: OfficeMax is paying attention. It says 80 percent of its customers are women. That's a very good thing, especially now. Of the nearly 4 million who lost their jobs in the first year of the recession, nearly 78 percent were men. So companies like OfficeMax are changing the way they sell products.
JULIE KRUEGER, VICE PRESIDENT, OFFICEMAX: The industry in general, the office supply industry, had all been going -- has all been going along the same kinds of lines, which is just, you know, provide stuff for business. And really what we realize is that women have higher expectations and they're really setting the bar higher for us because they want more.
COSTELLO: Raising the bar means in addition to quality, women want variety.
UNIDENTIFIED MALE: You can take this into the dining room.
COSTELLO: It's too soon for any of these companies to know if their new strategy is working. But expect to see more company goes girly as the recession deepens.
UNIDENTIFIED FEMALE: This is going to be fun.
UNIDENTIFIED FEMALE CARTOON CHARACTER: It's all good. It's all good.
COSTELLO: Carol Costello, CNN, Washington.
(END VIDEOTAPE)
NGUYEN: Retailers are going all out, trying to get women to spend their money. But let's talk about how to make more of that cash. Typically, women don't always get those higher-paying jobs and Marshawn Evans wants to change that. In fact, she offers some tips about breaking the glass ceiling in her book "Skirts in the Boardroom." And she joins me now live this morning.
All right, Marshawn, we are in a time where more men are being laid off than women.
MARSHAWN EVANS, AUTHOR & ENTREPRENEUR: Yes.
NGUYEN: So, what kind of opportunities does this present for women trying to get the higher paying jobs, even in this recession?
EVANS: Well, women have a unique opportunity because they're now being relied upon. The challenge for women is that they're still the primary caregiver. There are still issues with child care and family leave and equal pay. But it is an opportunity to really step to the plate.
And what I really advise women to do is know what the brand is. Know what it is that you're good at. Know what it is that you deliver better than anybody else in the workplace. Make sure that your co- workers know that and certainly, make sure that your boss knows that.
NGUYEN: OK. It's one thing for you to know it and it's another thing for you to try and convince your boss of it.
EVANS: Yes.
NGUYEN: But at the same time, we have seen historically that women are paid less than men. We've seen far fewer female CEOs. So, how do level that playing field?
EVANS: Well, I think there's a reason for that. One of the things I talk about in the book, "Skirts in the Boardroom," is the importance of communication, particularly assertive communication. And women traditionally won't ask for higher pay. And it's hard to expect to be promoted if you never asked for a promotion, if you haven't communicated the things that you're good at, if you don't take credit for the projects that you were a leader on. And so, that's often why we get looked over.
So, it's important to be assertive. It's important to make sure that people know just how good you are. But you have to communicate that.
NGUYEN: Right. And you know the importance of that, you are an attorney, you were on the "Apprentice."
EVANS: I've been fired.
NGUYEN: And Miss America contestant.
(LAUGHTER)
NGUYEN: So, you know what it's like that competition. And a lot of women out there are just trying to hold on to their jobs, just trying to keep their families together. But how do they do all of that and still try to climb that corporate ladder?
EVANS: Well, I think that balance is certainly important. I think you are a better person in your job if you are happier in your life. But at the same time, I think there are some very specific things. Number one, I think that networking is really critical. Every woman has to have a strong supportive network of resources around her. You might be able to get far by yourself, but you'll get there much faster if you have people around you who can open the door for you.
NGUYEN: Now, you say this -- and I find it fascinating and it's so true. You say, quote, in your book, "At any moment, I'm reviewing old e-mails and sifting through old business cards." How do you -- I mean, everyone talked about networking -- that can be the key to finding that job. Sometimes, it's not what you know, it's who you know.
But what is the key to networking? A lot of people don't know how to use those skills.
EVANS: I think the key to networking is deposits. You have to create true relationships. And, Betty, if I just have your card, I just have a piece of paper and I wasted a tree if I call you and you don't pick up the phone. And so, you want to make deposits into the life of somebody else and to other people's careers so that they want to make those same deposits into you. And that's really where you create a true substantive network.
NGUYEN: Very good stuff. I know there's so much more that we could talk about. But -- this is an opportunity at this very time, even in this recession, for women to take advantage of the opportunities and the jobs out there.
EVANS: Absolutely. And it's clear with the president's new initiative on women and girls.
NGUYEN: Girls, yes.
EVANS: He has a very firm commitment to equal pay, to fairness, to child and medical leave. And so, this is a time for women to really take advantage of the opportunities that are out there, but never neglect the things that you have to do every day. Being good at what you do, being on time at your job, being outstanding in the workplace. That's how you maintain job security.
NGUYEN: And being assertive, asking for that raise.
EVANS: Yes.
NGUYEN: Just make sure it's the right time.
All right, Marshawn, thanks so much.
EVANS: Thank you.
NGUYEN: I enjoyed speaking with you this morning. T.J., some good advice.
HOLMES: Some good advice, but didn't feel that good. Apparently, I'll be let go before you.
NGUYEN: And I'm going to ask that raise tomorrow.
HOLMES: That's not good.
NGUYEN: So, yes, I can give you a loan.
(LAUGHTER)
HOLMES: So, you have to listen to that.
Well, I'm glad you cleared it up, "Skirts in the Boardroom," I thought the book was about something else. So, I appreciate you ...
NGUYEN: Oh, get out of here.
(CROSSTALK)
HOLMES: All right. Let me turn to Josh here before I get in trouble.
Josh, a lot of sites ...
(CROSSTALK)
HOLMES: ... offering folks discounts and deals and a lot of stuff and stuff can actually help people right about now.
LEVS: Oh, T.J., yes, actually, I got one for you, for your hometown. Also, a special one for Betty coming up. I'm going to tell everyone where you can find a list of them.
(COMMERCIAL BREAK)
(MUSIC)
HOLMES: I don't know that music we use on the show. What is that?
(LAUGHTER)
NGUYEN: "Take the money and run."
HOLMES: Is that what it is?
NGUYEN: Look, it's just about the message this morning. That's a classic song.
HOLMES: The who Miller Band? Steve Miller Band.
(LAUGHTER)
HOLMES: OK.
NGUYEN: All right. Everybody, you try to save money. T.J., save his money so he can buy some more C.D.s and learn about these bands out there. But by spending less, maybe not buying the new shoes -- oh, that's hard, or that purse ...
HOLMES: Oh, Betty.
NGUYEN: And clipping some coupons. Now, I can do that.
HOLMES: You can clip the coupons. I just can't imagine you giving up the purse though.
NGUYEN: No -- or the shoes.
HOLMES: The Internet is a good source. And you were just telling me some of those sites we showed you've actually use them before. Josh Levs is here looking at some of the Web sites that help you save some cash -- Josh?
LEVS: And I'm going to need you guys help with this. This one restaurant, I don't think I can say out loud. And I have a Web site special for Betty, too.
NGUYEN: OK.
HOLMES: All right.
LEVS: Well, let's zoom. I want everybody to see this.
First of all, we have the whole recession at dotcom, CNN.com/recession. And it's pretty cool. I'll talk to you through some of these but I want to get you straight to these -- the good discounts. First of all, our producer, Kenosha (ph), is very excited for this one -- Restaurant.com. And what's cool here is, $25 gift certificates for $10. So, you're actually saving more than 50 percent. And you type in an area, a zip code.
So, T.J., here's your hometown, right? Seven-two-three-zero-one, around there. Know any of these places, 94 Orleans on front?
HOLMES: I don't know that one.
LEVS: How about this one? This is the one I think I can pull off -- All About Dem Wangs.
HOLMES: All About Dem Wangs -- yes, All About Dem Wangs.
LEVS: (INAUDIBLE) family?
HOLMES: Yes, that's a family owned restaurant. We've had that -- oh, I don't know. I've never heard of them.
(LAUGHTER)
NGUYEN: Sounds good, though. LEVS: It does sound good. Plus, the deals are pretty amazing, like over here, you pay $3 for $10 gift certificates. And they build in the gratuity for you; make sure your waiter still gets the money.
HOLMES: You can tell where I grew up. I mean, you can tell the kind of place I grew -- All About Dem Wangs.
LEVS: All About Dem Wangs.
(CROSSTALK)
(LAUGHTER)
LEVS: All the way.
Well, we've got a good one for Betty.
NGUYEN: All right. Bring it on.
LEVS: This is not a restaurant one, entertainment savings offers but over here in dotcom -- but I want you to see this one for Betty -- RetailMeNot.com. And you can type in any kind of product you want to get via retail. And check it out, Betty. I typed in shoes for you.
NGUYEN: Oh, no.
LEVS: And over here, it shows you all these different kinds of deals you can get for shoes.
NGUYEN: I think I'm salivating right now. Yes, this is not good. I'm never going to get away from the computer -- well, yes, I will, to go to those stores and shop with the coupons.
LEVS: It just keeps going and going and going and going and going.
And just a last one I'm going to mention because it's part of us, which is really cool. People don't know about this -- CNN.com/travel. We have a whole section on saving money when you travel. And you guys mentioned cruises earlier. This one talks about the fact that you can even save more than 50 percent. You can go to the Caribbean now for $149 -- which is crazy. Well, I don't know, it sounds crazy. Anyway, CNN.com/travel.
Another good one, you can see on your screen there, where you can see the whole list on my Facebook page. The tiny URL thing should get you there. And if you know of any others, post them there because we want everybody to see what you got.
NGUYEN: Hey, it's all about saving money these days. I like it.
LEVS: Yes.
NGUYEN: Thanks, Josh.
HOLMES: You, all about Dem shoes and I'm All About Dem Wangs. (CROSSTALK)
(LAUGHTER)
NGUYEN: Well, the CNN family just got a little bit bigger.
HOLMES: Yes.
NGUYEN: You got to see this picture. Dr. Sanjay Gupta has a brand new baby. Look at that precious thing. We're going to show you more right after this.
(COMMERCIAL BREAK)
(MUSIC)
HOLMES: OK. That's Amy Grant, is that right?
NGUYEN: Very good. Somebody told you in your ear.
HOLMES: No, I knew that one for some reason.
NGUYEN: Right.
OK. Our chief medical correspondent, Dr. Sanjay Gupta, talking about the song, "Baby Baby" ...
HOLMES: Yes.
NGUYEN: ... welcome his new baby, a new addition to the family -- another little girl. He is so out numbered.
HOLMES: Yes, he's got his hands full right now. Sola (ph) is the name. And the lights are a little fluorescent here and you can't see the pictures that well. I don't think.
But Sola, you saw that first picture with his other two girls, Sage and Sky. But Sola there weighs eight pounds. I think that's pretty good size.
NGUYEN: Oh, yes.
HOLMES: Child, is it not? Twenty inches long. Made her debut, somebody called her birthday, it was on Monday.
NGUYEN: Congratulations to them.
Yes. A beautiful little girl.
HOLMES: So, it's four against one in that house now, four girls against one guy.
NGUYEN: He is in trouble. Wait until they hit their teenage years. Yikes.
HOLMES: All right. But he still had time to file "HOUSE CALL" with Dr. Sanjay Gupta. Let's see if his eyes are a little more red and droopy today in this show. But it starts right now. Betty and I are back at the top of the hour.
