Even As One Senator Calls For Halt To Doling Out More Bailout Of The Funds To Paulson
CHETRY: Welcome back to the most news in the morning. There's a bailout battle that's simmering now to a boil on Capitol Hill. The lame-duck Congress divided over whether or not to give Ford, General Motors, and Chrysler a $25 billion bailout. Now, Republican senator is actually calling for a halt to the entire bailout until Congress can figure out where this money is actually going. Oklahoma Senator James Inhofe joins us this morning with more on why. Thanks for being with us. Yesterday you gave a speech about this, and are you also calling for legislation to say let's just take a second here and figure out where this money is going before we continue to give out more. What are your main concerns about the $700-billion bailout, Senator?</s>SEN. JAMES INHOFE, (R) OKLAHOMA: First of all, Kiran, I actually introduced a bill yesterday to do that very thing. My concern is this. First of all, this amount of money just isn't describable, $700 billion. The average is $5,000 for each tax return family in America. It's a huge thing. Paulson came to us, and said what he wanted to do with it. Said if you don't do this, then the bottom is going to drop out, and country is going to go into a deep depression. Then as soon as he got the money, that's not what -- he didn't buy out troubled assets. He started buying positions in companies. And that's not what he was supposed to do. Now, I can't tell you, right now, as we're speaking, how much of that first $350 billion is left. "The Wall Street Journal" suggests around $60 billion. I don't know. Now, isn't that something? That I'm the senior senator, and I don't know. There's no accountability. We're saying to a person do whatever you want with $700 billion. What I'm trying to do is stop the second $350 billion from being put in his hands, and freezing this spending right now. I think that's a very reasonable thing to do.</s>CHETRY: All right, let me ask you about this. This is what Henry Paulson said in today's "New York Times" about the situation. He is basically arguing that it would have been much worse if they had not gotten that bailout money to begin with. He says a troubled asset purchase program to be effective would require a huge commitment of money in mid-September, before economic conditions worsen. $700- billion in trouble asset purchases would have had a significant impact, but half of that sum in a worse economy simply isn't enough firepower." So he is basically saying that if you freeze the rest of that $350 billion, we're in for tough times. Is it the boy who cried wolf at this point? Or are you guys going to take into consideration what the Treasury secretary is saying?</s>INHOFE: Well, first of all, let's take into consideration what the Treasury secretary is saying. Is he saying the financial markets have been stabilized. Now, that's his statement. If they have been stabilized, and he said this last Friday, then there is no need to be going into this second block of money. I want a full accountability of what he has been doing, what he has spent money on, how much is left. We don't even know how much is left. I just -- this is unprecedented in the history of this country that one person -- and this is not even an elected person -- is given a blank check to do with whatever he wants to do. And it's not the way we're supposed to be doing business.</s>CHETRY: Meantime, you know, let's leave this $700 billion on the table and talk about the possibility of another $25 billion for the auto industry. They're saying the ripple effect would be unimaginable in terms of how many people in this country rely in one, way, shape, or form on the auto industry for work. And, number two, keeping the economy going in general if the Big Three were to collapse. You are against any type of breaking offer any of the $700 billion to go to the auto industry. What's the alternative?</s>INHOFE: Well, first of all, if they're going to be talking about that, do it on its own merits. Don't even use the -- talk about the $700 billion. That's something totally different. I am philosophically against the idea of government coming along and buying positions, as they're doing with the $700 billion, or bailing out an industry. I mean, how many people are in line right now just waiting to see? Would the auto industry have been here if it hadn't have been for the $700 billion bailout? I don't know that. But I do know there are -- but there are -</s>CHETRY: You said that you are philosophically opposed it, but you did vote initially for the $700-billion bailout. Do you regret that?</s>INHOFE: No, I did not vote for it. I voted against it.</s>CHETRY: You voted against the original $700 billion bailout?</s>INHOFE: Absolutely. I was one of the 24 votes that voted against the $700-billion bailout. Let's make that real clear.</s>CHETRY: So at this point do you believe that you're going to get enough people on your side to freeze the other half, this $350 that is subject to congressional approval?</s>INHOFE: I think that we really start with the 24 of us who voted against it in the first place, and then we have those that supported it, and I think there's been enough pressure from home listening to people for them to - for us to be able to do that. At least I'm hoping that's the case. In Senate bill 3683, introduced it yesterday, and now the administration is saying they're not going use that second $350 billion anyway. Well if that's the case, there's no reason not to go ahead and get this thing passed to make sure when we go into recess that something bad doesn't happen. That's what I would expect would happen.</s>CHETRY: All right. We'll see where it takes us this morning. Still a lot of debate about it, and, of course, bringing in the possibility sorry of trying to bailout the autos as well. You guys have a lot to go over. Sorry about that, senator. You did vote against the bailout originally. Thanks for joining us this morning.</s>INHOFE: Thank you, Kiran.</s>CHETRY: Well we just talked about the bailout plan and the president and CEO of Ford Motor Company, Alan Mulally is going to be here to argue about why it is so vital for this infusion of cash for the big three autos.</s>JOHN ROBERTS, CNN, ANCHOR: 31 minutes after the hour. And breaking right now, Saudi Arabia calling a pirate hijacking of one of its oil super tankers an outrageous act. It's on the move right now, spotted off the coast of Somalia. The ship, which is the size of a U.S. aircraft carrier, was hauling $100 million worth of crude oil. Calmer winds aiding firefighters battling flames in southern California. Officials in that state starting to seek help for its victims. Governor Arnold Schwarzenegger has asked the Bush administration to declare southern California a disaster area. The mayor of Los Angeles Antonio Villaraigosa said that President- elect Barack Obama has already contacted him to offer what help he could. Gasoline prices almost cut in half from the all-time high that was set over the summer. AAA says the national average for a gallon of regular is down to about $2.07 now. Prices have dropped for 62 days in a row. The campaign between Barack Obama and John McCain was filled with plenty of mud slinging. Congress is bitterly divided down party lines and a lot of Americans are simply fed up with partisan bickering. In his victory speech, election night, Barack Obama promised to be a president for republicans, democrats, and independents, but can he really do that? Carol Costello has today's "Memo to the President."</s>CAROL COSTELLO, CNN CORRESPONDENT (voice-over): Don't know if you caught it, but a line in Barack Obama's victory speech was similar to a line uttered by George W. Bush after he won.</s>SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I may not have won your vote.</s>PRES. GEORGE W. BUSH, UNITED STATES OF AMERICA: I will need your support.</s>OBAMA: I will need your help.</s>BUSH: I will do all I can do to deserve your trust.</s>COSTELLO: Both men in victory promising to be president to everyone, democrat, independent, and republican, but today America is more partisan than ever. So Mr. President-elect, how to keep that promise?</s>BOB GRAHAM (D), FORMER SENATOR: I hope that President Obama has picked up the phone on more than one occasion and talked to John McCain.</s>COSTELLO: And President-elect Obama has reached out to John McCain, inviting him to talk face-to-face. But former Senator Graham says that's not enough. Interaction between the two ought to be consistent. That way McCain will be more willing to persuade republicans to work with Obama on issues like global warming and alternative energy ideas and, he says, reaching out consistently to McCain and other republican rivals will demonstrate respect for the other side. Something certainly not on display in today's Congress.</s>UNIDENTIFIED MALE: This is a boneheaded idea.</s>SEN. JOE BIDEN (D), VICE PRESIDENT ELECT: That is brain dead.</s>UNIDENTIFIED MALE: standing here does not solve the problem.</s>BIDEN: Stop this. Stop this. Stop this.</s>COSTELLO: Both democrats and republicans say it's vital that civility returns to Capitol Hill. Some say the president-elect can do that if he finds a way to be centrist without alienating his liberal base.</s>SUSAN MOLINARI (R), FORMER CONGRESSWOMAN: He has to rule from the center and take leadership positions on the center, so he can make this nation and our elected officials feel comfortable that he can, in fact, bring parties together on some very difficult issues.</s>COSTELLO: Like what to do about Joe Lieberman.</s>SEN. JOE LIEBERMAN, INDEPENDENT: I know it's unusual for a democrat to be endorsing a republican.</s>COSTELLO: One of the first things democrats tried to do after the election was to strip the democrat turned independent of its powerful senate chairmanship for supporting John McCain for president. Both Graham and Molinari says forcing him to give up the top spot on the Homeland Security Committee would be a horrible partisan mistake.</s>GRAHAM: I don't think it's a sign of strength to hold grudges and be vindictive and take actions that are clearly contrary to the long-term interests that you want to advance.</s>COSTELLO: And it appears the democrats will not completely ostracize Lieberman. After President-elect Obama publicly said he holds no grudges against Lieberman, senators will vote later this morning, and word is they will allow Lieberman to hold his chairmanship. But there is still a long way to go. There is such acrimony among lawmakers that it will take more than symbolism to cool the partisanship. John.</s>ROBERTS: It certainly will. Carol Costello for us this morning. Carol, thanks so much. And tomorrow's "Memo to the President" comes from CNN's chief international correspondent Christiane Amanpour. She is going to look at the next president and the line he must walk in dealing with Iran. That's tomorrow on</s>AMERICAN MORNING. CHETRY: After years of churning out loads of gas-guzzling trucks and SUVs America's big three automakers are looking at Congress for a $25 billion bailout. After the break, Ford Motor's president and CEO will join us, and we'll ask him why. Also, the death in the family doctor. We're "Paging Dr. Gupta" to ask why are so many family practices looking so sick. It's 35 minutes after the hour.