Face the Nation (CBS) - 2009-02-22

Channel: malgent

Transcript

Language: English (original, YouTube automatic captions)

[0:00] Today on Face the Nation, President

[0:02] Obama's mortgage bailout plan. Who will

[0:05] it actually help? And bailing out the

[0:08] states. Will governors take the stimulus

[0:10] money and will it help them to solve

[0:13] their deficit problems? President Obama

[0:16] came out with a multi-billion dollar

[0:18] foreclosure bailout plan last week, and

[0:21] a lot of people who can't afford their

[0:23] mortgages are wondering if it will help

[0:25] them. Who does get the money and why?

[0:28] We'll ask Housing Secretary Shawn

[0:30] Donovan. Then we'll turn to the states

[0:33] and the stimulus package. Some

[0:35] Republican governors say they'll pick

[0:36] and choose what money to take. We'll

[0:39] talk with three governors about where

[0:42] they stand. Republican Mitch Daniels of

[0:45] Indiana, Democrat John Cororsine of New

[0:48] Jersey, and Democrat Ted Strickland of

[0:50] Ohio. I'll have a final word on

[0:53] something else to worry about, Mexico.

[0:56] But first, the mortgage bailout. Who

[0:59] gets the money on Face the Nation.

[1:10] Face the Nation with CBS News Chief

[1:12] Washington correspondent Bob Schiffer.

[1:15] And now from CBS News in Washington, Bob

[1:18] Schaefer.

[1:20] >> And good morning again. We start with

[1:22] the housing secretary Shawn Donovan

[1:24] who's just new to Washington and but has

[1:27] been dealing with housing problems for a

[1:29] long long time. He used to work for

[1:30] Mayor Bloomberg uh in New York among

[1:32] other things. Mr. Secretary, thank you

[1:34] for coming. Let's just get right to it.

[1:36] Uh the president unveiled this plan. It

[1:39] is designed to help people who are

[1:41] having trouble with their with their

[1:42] mortgages. It actually provides

[1:44] subsidies to people who don't have much

[1:46] equity in their homes. But there was a

[1:49] storm of criticism almost immediately

[1:52] people uh began to say and it spread

[1:55] across the internet. Why should people

[1:57] who made bad judgments why why should

[2:00] people who made loans they knew they

[2:02] couldn't afford? Why should I now be

[2:05] subsidizing them when I have played by

[2:08] the rules made a mortgage made a loan

[2:10] that I could afford? Uh why should it be

[2:13] up to me to subsidize these people? So

[2:15] let's start with that. What's why should

[2:18] other people be subsidizing these people

[2:20] who made bad judgments and bad

[2:22] decisions?

[2:23] >> Well, first of all, what I want to say

[2:25] and and the president made this very

[2:26] clear on Wednesday in Phoenix is that we

[2:29] have designed this plan to make sure

[2:31] that the folks who did take advantage of

[2:34] people, whether it was lenders or

[2:36] speculators or flippers, that they're

[2:38] not eligible for this plan. Um, only

[2:41] owner occupants uh who live in their

[2:43] homes are eligible. And we're going to

[2:46] make very sure by checking incomes, by

[2:49] verifying, we're not going to have any

[2:51] more of these liar loans where you

[2:53] didn't even have to present your income

[2:54] or you could easily present income that

[2:56] wasn't checked. We're going to have a

[2:58] very strict program to make sure that

[3:00] people who participate are what they say

[3:02] they are. And we're not going to benefit

[3:04] those who took advantage before.

[3:06] >> But why is this fair to people who have

[3:09] played by the rules? What's in it for

[3:10] them? Well, and I'm glad you asked that

[3:13] question because I think there's been a

[3:14] lot of focus on a piece of the plan, but

[3:17] without either reading or looking at the

[3:19] broad plan. There are three parts to the

[3:20] plan. First, the largest and in many

[3:23] ways the most important part of the plan

[3:25] is up to $200 billion that will help

[3:28] keep mortgage rates low in this country

[3:30] for everyone. Today, we have mortgage

[3:32] rates because of actions that the Obama

[3:34] administration has taken that are as low

[3:36] as we've had in a generation. We have to

[3:39] keep those mortgage rates low because

[3:41] anybody who's got good credit who wants

[3:43] to go out and buy a new home or

[3:45] refinance, they benefit by having those

[3:47] low mortgage rates. That's the biggest

[3:49] most important part of

[3:50] >> And that's money you're going to funnel

[3:51] into Fanny May and Freddy.

[3:53] >> It's a backs stop to Fanny May and

[3:55] Freddy Mack who today are responsible

[3:57] for about twothirds of of all mortgages

[3:59] that get made in the United States. So

[4:01] it's critically important. We have we

[4:03] have a longer term discussion to have

[4:05] about what we need to do with Fanny May

[4:07] and Freddy Mack. There were plenty of

[4:08] mistakes made in the past, but right now

[4:10] to get us out of this current crisis, we

[4:12] need low interest rates. There's broad

[4:14] bipartisan agreement on that, and this

[4:16] is a way to do that. So, that's the

[4:17] first part of the plan, and that

[4:19] benefits everyone. The second part of

[4:21] the plan is we're going to allow folks

[4:23] who are playing by the rules, who have

[4:25] made every payment, um, but are

[4:27] underwater because, uh, housing values

[4:30] in their neighborhoods have declined to

[4:32] refinance. Today they may be holding a

[4:34] seven or eight% mortgage rate and they

[4:36] can't benefit from today's 5% rates.

[4:38] Again, they've played by the rule rules.

[4:40] Only people who are current on their

[4:42] mortgage can qualify for that

[4:44] refinancing. And then the third part of

[4:46] the plan is our modification plan.

[4:49] That's $75 billion. And that is the one

[4:52] directed at people who are struggling

[4:54] the most. But let's be clear, this may

[4:56] have started as a mortgage crisis, but

[4:59] today what's really driving foreclosures

[5:01] is people losing their jobs, uh, not

[5:04] being able to pay for their health care.

[5:05] We have millions of families across this

[5:07] country, through no fault of their own,

[5:09] that are in trouble on their mortgages.

[5:11] We're going to stop speculators from

[5:12] getting in the plan, but we've got to

[5:14] make sure that folks who have played by

[5:16] the rules and are struggling can get

[5:18] some help. And by the way, let's

[5:20] remember that every time there's a

[5:22] foreclosure, a nextoor neighbor loses

[5:25] value in their house, too. This plan, if

[5:27] we don't move forward with it, we think

[5:29] we'll see an additional $6,000 drop on

[5:32] average in every single homeowner's

[5:34] house in America. So, this benefits by

[5:37] stopping foreclosures, this benefits

[5:39] everyone.

[5:39] >> Do you have any idea how many

[5:41] foreclosures you can forstall with this?

[5:44] Um well, our estimate is that with if we

[5:47] take no action today, we've got about

[5:49] six million foreclosures coming over the

[5:51] next three years. We had 2.2 million

[5:53] last year. We're looking at a at a rate

[5:56] this year of close to 3 million

[5:57] foreclosures this year alone. So, the

[6:00] problem is getting worse. 45% of all

[6:04] sales of homes in the US in December

[6:06] were distressed sales, and that's just

[6:08] pushing pushing values lower. So, we

[6:10] think we can stop with this plan um with

[6:13] just the modification portion 3 to 4

[6:15] million foreclosures. We're not going to

[6:17] save everybody, but we can save the

[6:19] folks who are willing to keep paying and

[6:21] work hard. And in addition to that, we

[6:23] can help between four and 5 million

[6:25] homeowners who are underwater, but are

[6:27] current on their mortgage. They're doing

[6:29] everything right and playing by the

[6:30] rules. We can help four to five million

[6:32] of those refinance as well to lower

[6:34] rates. On average, they'll save $2,600 a

[6:37] year. Let me just ask you this because

[6:38] as I understand the plan, you will help

[6:41] people who the value of their house uh

[6:43] has gone down and they suddenly find

[6:45] they owe more on their mortgage uh than

[6:48] the house is worth, but only uh to a

[6:51] certain point. It's my understanding

[6:53] that it would be just slightly under uh

[6:57] what the mortgage is worth. Now, those

[6:59] are the people you could help, but

[7:00] people who have seen a huge drop in how

[7:03] much their house is worth, this plan

[7:04] won't help them. Now, why not? Well, um,

[7:07] and I'm I'm glad you asked that question

[7:08] because there has been some confusion

[7:10] about that. The refinancing part of our

[7:12] plan is for people who are between about

[7:16] 80% and 105% uh, loan to value. What

[7:19] that means is their mortgage is

[7:21] somewhere between 80% of the value of

[7:23] their house and 105%.

[7:25] The folks who are more deeply underwater

[7:27] than that, let's say they've got a house

[7:29] that's worth $200,000 and they've got a

[7:31] mortgage that's $250,000 or more. The

[7:34] truth is just a refinancing isn't really

[7:36] going to going to help them. Those are

[7:38] the folks who are eligible if they're

[7:41] going to make their payments uh for our

[7:43] modification program where we will bring

[7:45] down the the payment to an affordable

[7:48] level. So the three different aspects of

[7:50] the plan work together to reach everyone

[7:52] who we think is deserving and needs

[7:54] help. Today

[7:55] >> you're also talking about encouraging

[7:57] Congress to allow a bankruptcy referee

[8:01] to actually modify u a mortgage which is

[8:05] something they haven't been able to do.

[8:07] In other words, you'd reduce the amount

[8:09] of money that the person owes. Isn't

[8:11] that going to discourage lenders uh from

[8:14] making more loans? Well, you know, the

[8:16] interesting thing about this, Bob, is

[8:18] that today, if you have a second home,

[8:21] uh, or a a vacation home, uh, if you've

[8:25] got multiple homes, that those homes th

[8:28] the debts can be modified in

[8:30] foreclosure. It's only for people who

[8:32] have one home and are living in trouble

[8:35] where you can't have a modification of

[8:37] that loan in bankruptcy. So, as the

[8:39] president said in Phoenix, this is just

[8:41] an issue of of fairness, but we also

[8:43] have to do it right to make sure that we

[8:45] don't hurt hurt the mortgage market. And

[8:47] what we've proposed and we're working

[8:48] with Congress on is a modification for

[8:51] loans that are in existence now, the

[8:54] ones that have caused all the trouble.

[8:56] We're not talking about applying this to

[8:57] loans going forward. And we think doing

[8:59] that means that it's not going to affect

[9:02] in any significant way mortgages in the

[9:04] future. It won't hurt the mortgage

[9:06] market. at this point think the Congress

[9:08] will go along with that.

[9:09] >> Um, we're in discussions and there seems

[9:11] to be growing consensus that this is an

[9:13] important part of the solution. I want

[9:14] to be clear though as well. We don't

[9:16] think that bankruptcy court is the

[9:18] answer to the problem. We think and

[9:21] that's why we announced an aggressive

[9:22] plan this week to modify loans. We think

[9:25] we've got to get these things worked out

[9:27] before they ever get to bankruptcy. That

[9:29] that that's just a last resort.

[9:31] >> All right, Mr. Secretary, want to wish

[9:32] you the very best. I think everybody

[9:34] hopes that you're going to succeed on

[9:36] this. Thanks so much for coming. We'll

[9:38] be back to talk with some governors in

[9:40] just one minute.

[9:51] And we're back now with New Jersey

[9:54] Governor John Cororsine, Ohio Governor

[9:56] Ted Strickland, and with us from

[9:58] Columbus, Ohio this morning, Governor

[10:00] Mitch Daniels of Indiana. He is in

[10:02] Columbus because the state airplane got

[10:05] a crack in the windshield this morning.

[10:07] They had to make a landing in Ohio and

[10:09] through the courtesy and the uh

[10:11] expertise of the new of the Ohio uh

[10:15] highway patrol, we got him to Columbus

[10:16] into the studio there. So uh uh

[10:19] Governor, we're glad you're there with

[10:20] us and uh so we'll start from there. I

[10:23] want to start with Governor Cororsine

[10:25] because the numbers from your state uh

[10:27] governor give us an idea just how

[10:29] serious the problems are that governors

[10:32] are facing these days. Uh you expected

[10:35] your state sales tax to bring in 8.6

[10:37] billion I believe and it looks like it's

[10:40] going to be about 653 million short of

[10:42] that. State income tax is going to fall

[10:46] 145 billion short of expectations.

[10:49] >> 145 million, not billionaire. Is that a

[10:52] real problem?

[10:54] >> 1 billion45 million and you're facing a

[10:57] $2.8 billion drop in budget revenue,

[11:00] which just gives people an idea of what

[11:02] a sour economy will do.

[11:04] >> That's about eight or nine% off of what

[11:06] we thought we were going to have.

[11:07] >> Yeah. So, you're going to get some money

[11:09] in the uh president's stimulus package.

[11:12] I take it that New Jerseyy's going to

[11:13] take the money. I think we'll probably

[11:15] uh take that and make sure that we're

[11:17] educating our kids and providing health

[11:19] care uh as best we possibly can to the

[11:22] citizens of New Jersey. I think the

[11:24] president has done the right thing. Uh I

[11:26] think it saves jobs. I think uh some of

[11:29] the other expenditures that are a part

[11:32] of the program on uh highways and

[11:35] bridges and the energy infrastructure of

[11:37] the country, I think we're going to

[11:39] create a lot of jobs about a 100,000 in

[11:41] New Jersey uh out of that program.

[11:44] Combined with the things that we're

[11:45] already doing in the state with regard

[11:47] to our infrastructure and schools, I

[11:51] think it's actually going to make a big

[11:52] difference in the economy. Governor

[11:53] Strickland, you got some big troubles

[11:55] out there in Ohio, especially

[11:57] unemployment. Uh I take it you're going

[11:59] to accept the stimulus money.

[12:00] >> Absolutely. Uh I I believe Ohio is going

[12:03] to get about $ 8.2 billion out of this

[12:06] package. Uh we will use those resources

[12:09] to make sure that college tuition

[12:10] doesn't explode, that we are continuing

[12:13] to invest in elementary and secondary

[12:15] education to provide quality child care

[12:17] for our kids. Um, we need these

[12:20] resources and I'm I'm very happy that

[12:23] the Congress uh and and the president is

[12:25] providing this resource to our states.

[12:28] Um, you know, this is a very unusual

[12:31] time in the history of of Ohio and in

[12:34] the history of the country and um this

[12:37] is not a normal economic up and down

[12:39] cycle that we're seeing. It's historic,

[12:42] unprecedented, and I think it's

[12:44] necessary and appropriate that the

[12:47] administration and the Congress is

[12:48] helping us out in these ways.

[12:50] >> Governor Daniels, I guess one new

[12:52] expense you've got out there in Indiana,

[12:54] of course, is you got to get the state

[12:56] airplane fixed. That'd be But you are in

[12:59] >> It's not just a job, it's an adventure.

[13:01] >> There you go. You're in a much different

[13:03] position than some of these governors

[13:05] are because you actually have a balanced

[13:08] budget out there in Indiana. But I take

[13:10] it uh that might not last long because

[13:13] unemployment uh is is just ballooned out

[13:16] there in recent months has it not? So I

[13:18] take it you will be one of those uh

[13:21] taking the stimulus money.

[13:24] >> Sure we will. Yeah we are in a little

[13:26] different situation. Um we've come

[13:28] actually from we were bankrupt when

[13:30] times were good have come to a position

[13:32] of all debts paid and budgets balanced

[13:34] and a pretty strong reserve. But it

[13:37] won't last if the erosion of the economy

[13:40] continues uh at the present rate. So we

[13:43] will take it. We will try to spend it

[13:45] prudently and wisely. Um in our case,

[13:48] we'll try to invest it for the future of

[13:50] our state. Uh we don't have the holes to

[13:52] fill that other states do, but that

[13:54] doesn't mean that we can't I hope use it

[13:57] to leave permanent assets behind whether

[13:59] they're um roads and bridges or better

[14:02] prepared teachers so that we're a

[14:04] stronger Indiana when this is over.

[14:06] Governor, let me ask you, do you find it

[14:08] somewhat hypocritical that some of the

[14:10] Republican governors, I know Haley

[14:12] Barber down in Mississippi, Bobby Gendle

[14:14] in Louisiana, just to name two, are

[14:17] saying that they uh they're opposed to

[14:20] this and they don't want this money. Uh

[14:23] so they're at least saying they don't

[14:25] want it, but some other governors are

[14:27] saying, "Well, we're opposed to it, but

[14:29] uh we're going to take the money

[14:30] anyway." uh what's going on on that?

[14:35] Well, first of all, I've studiously

[14:36] stayed out of the debate about the

[14:39] merits or demmerits of this package. I

[14:42] think my job is simply to use these

[14:44] funds, which are a fact of life for the

[14:46] best interest of our state and its

[14:48] future. But, you know, out of let's have

[14:50] some respect out of fairness for a very

[14:52] legitimate point of view. There are some

[14:54] very legitimate concerns about this

[14:56] bill. Um, and it's u massive amounts of

[14:59] spending on things that have nothing to

[15:01] do with stimulating the economy. Massive

[15:03] amounts of money that everyone

[15:05] understands cannot possibly be spent for

[15:07] two or three years. It's smuggled in

[15:09] some very dubious policy, welfare

[15:11] without work and a bigger government

[15:14] takeover of health care. So, uh, I just

[15:16] think that people in good conscience, my

[15:19] own senator, uh, Dick Luger is as

[15:21] bipartisan and thoughtful as any member

[15:23] of Congress, and he couldn't bring

[15:24] himself to support this particular bill.

[15:27] And so, I I think we ought to simply,

[15:29] you know, move forward and each of us as

[15:31] governors anyway, make the best decision

[15:33] we can for our own state.

[15:35] >> How bad uh, governors is this situation

[15:38] now? I mean, do you see any light at the

[15:40] end of this tunnel? Well, I think as

[15:43] history has shown, we always get through

[15:46] um tough economic times. Sometimes it

[15:48] takes longer than one would like to see

[15:50] for that problem and you see

[15:51] unemployment

[15:53] um get to levels that are unacceptable

[15:56] and the foreclosure issue, which you

[15:57] were talking about, gets uh more

[15:59] burdensome. I think most people think

[16:01] we're going to be into 2010 before we

[16:04] see actual a turnaround in the economy.

[16:07] Matter of fact, uh I think most everyone

[16:09] that I talked to is now stretching out

[16:11] their expectations on when you'll see a

[16:14] turnaround in the economy. And I think

[16:15] that makes it even more important that

[16:18] the federal government, which has the

[16:20] ability to finance uh uh these deficits,

[16:24] which states and and our our cities and

[16:28] local governments don't have the

[16:29] capacity. It's absolutely essential that

[16:31] we take those steps by the federal

[16:33] government to stimulate the economy. And

[16:35] by the way, some of this, about onethird

[16:37] of it's being done with tax relief. You

[16:39] know, we're putting money into the

[16:40] pockets of uh middle class families.

[16:43] We're helping uh families send their

[16:45] kids to college. We're doing all kinds

[16:48] of things to try to uh stimulate

[16:50] individuals uh to stabilize the un the

[16:53] uh the uninsured, the the people that

[16:56] are unemployed, and then we're making

[16:58] these long-term investments which create

[17:00] jobs.

[17:00] >> Governor Strickland, what's the big

[17:01] problem out in Ohio? Is it unemployment?

[17:04] Is it these foreclosures? What is it

[17:06] that uh

[17:07] >> the foreclosure problem is a huge

[17:08] problem in Ohio? Of course, uh

[17:10] unemployment is growing uh and we expect

[17:13] it to continue to grow over the coming

[17:15] months. So, all of it together. I you

[17:18] know, I repeat what I said to you, Bob,

[17:19] just a few moments ago. These are

[17:22] unprecedented circumstances. We have

[17:24] never been in circumstances quite like

[17:27] this, perhaps ever in the history of our

[17:29] country. A convergence of economic

[17:31] factors have come together. the housing

[17:33] crisis, the meltdown on Wall Street, uh

[17:36] our financial institutions under

[17:38] stresses and strains. Um that's why I

[17:41] believe the response of the federal

[17:42] government is so critically important.

[17:45] We cannot allow ourselves to disinvest

[17:48] in our kids, to disinvest in education,

[17:52] to dismantle uh those uh

[17:55] responsibilities that we have as

[17:56] governors that will enable us to

[17:58] overcome this recession and move into

[18:00] recovery. What what if one of the auto

[18:02] companies goes under? How will that

[18:04] impact out in your state?

[18:06] >> Oh, hugely hugely. And it will not only

[18:09] impact the big three, it will impact all

[18:12] auto companies including Honda and

[18:14] Toyota and all the others because they

[18:16] have the same supply network. And these

[18:19] this supply chain is very fragile. uh

[18:22] and if it uh starts to collapse, it

[18:25] could have a cascading effect that could

[18:26] quite frankly an industry that

[18:29] has been so vital to the to the economy

[18:32] of our entire nation for so long. So,

[18:35] it's very important that the auto

[18:37] industry get the help it needs to

[18:38] survive. And I I've had officials from

[18:41] the Honda Corporation come to me say to

[18:44] me, "Governor, we're not usually in the

[18:46] business of advocating for our

[18:48] competitors, but it is so important that

[18:51] the auto industry and the big three be

[18:53] preserved. Otherwise, uh the economy of

[18:56] this country will suffer perhaps

[18:58] irreparable harm. Uh and and we just

[19:01] cannot let that happen." Uh uh Governor

[19:03] Daniels, let me ask you uh Governor

[19:05] Schwarzenegger of California said today

[19:07] that uh what what President Obama needs

[19:09] now is some teammates and he's pretty

[19:11] much signed on uh to the uh to the

[19:14] president's plans. Now, a lot of people

[19:16] in your party are raising questions

[19:19] about it, uh saying no, voting no. What

[19:22] do you think Republicans ought to do

[19:24] from here on in?

[19:27] >> Well, they ought to follow their

[19:28] conscience. You know, again, I've not

[19:31] seen it as my role in any way to

[19:34] criticize. We all hope that the

[19:36] president will succeed. This country

[19:38] needs this president to succeed, and I

[19:40] hope fervently that he will. Um, as I

[19:43] said before, whether it's the stimulus

[19:45] package or the uh auto situation you

[19:48] just talked about, um, I certainly

[19:51] understand why people who have to vote

[19:53] iron in conscience cannot bring

[19:55] themselves to support some of these

[19:56] things as presently constituted. You

[19:58] know, I don't know a single Republican

[19:59] who didn't really want to vote uh for a

[20:02] stimulus package, doesn't want to see

[20:05] the auto industry get back on its feet,

[20:08] but u I'm also not going to criticize

[20:10] those who uh have misgivings or can't

[20:13] come to a positive conclusion on these

[20:14] particular bills.

[20:16] >> Well, I have about 20 seconds here left.

[20:18] When do you see this turning around,

[20:20] Governor? Anytime soon or is it going to

[20:21] be a year or so?

[20:25] >> Are you asking me, Bob? I would, you

[20:26] know, I I'll I'll defer defer to

[20:28] Cororsine, my Wall Street uh expert. Uh

[20:32] I I think we all understand this is

[20:34] probably going to be a worse before

[20:36] better and a long siege, but this is a

[20:37] great economy. The American economy has

[20:39] been resilient and surprised the

[20:41] skeptics over and over. It's going to do

[20:42] that again.

[20:43] >> All right. Well, gentlemen, I want to

[20:44] thank each of you for coming by this

[20:46] morning. Not very good news here, but at

[20:49] least maybe we kind of laid out what

[20:51] what's ahead. We'll be back with more in

[20:53] just a minute.

[20:59] This portion of Face the Nation is

[21:01] sponsored by Chevron Human Energy.

[21:10] Finally today, a friend of mine drove

[21:12] through El Paso, Texas not so long ago

[21:15] and was stunned to learn that the

[21:17] weekend he was there, 28 people were

[21:20] killed, gunned down actually in Wares,

[21:23] Mexico, just across the river. More

[21:26] stunning was that most of the people

[21:28] took the news calmly. Just another

[21:30] incident in a border town where such

[21:32] things now happen with increasing

[21:34] frequency. With the United States so

[21:37] focused on the economic crisis, it has

[21:39] gone virtually unreported here. But

[21:42] Mexico is dealing with a crisis of its

[21:44] own. A war among drug cartels that has

[21:47] left nearly $7,000 people dead just last

[21:51] year. The drug business in Mexico has

[21:53] become so big it is turning a $25

[21:56] billion annual profit. The cartels have

[21:59] become so powerful that in some areas

[22:02] they have all but replaced the Mexican

[22:04] government. Just last week, the State

[22:06] Department warned US citizens to

[22:08] exercise caution when traveling in the

[22:11] border areas and noted that the cartels

[22:13] sometimes engage each other and

[22:16] government forces in firefights that

[22:18] resemble military combat operations. As

[22:22] the new administration plans strategies

[22:24] to deal with threats to America's

[22:26] national security, we hear the usual

[22:28] farway names and places. Iran, North

[22:31] Korea, Al Qaeda, the border area between

[22:34] Afghanistan and Pakistan will now add a

[22:37] new worry. The drug cartels in Mexico,

[22:40] they've been getting worse for a while

[22:42] now. We've just been looking the other

[22:44] way. Back in a minute.

[22:56] And that's our broadcast. We'll be back

[22:58] right here next Sunday on Face the

[23:00] Nation.

[23:04] This broadcast was produced by CBS News,

[23:08] which is solely responsible for the

[23:10] selection of today's guests and topics.

[23:13] It originated in Washington, DC.