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Lou Dobbs Tonight
Northeast Floods; Flu Shot Shortage?; The Corporate Elite
Aired October 13, 2005 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Good evening, everybody.
The Northeast is being hit tonight with its eighth straight day of flooding and constant torrential downpours. A huge storm system causing a massive flooding disaster. It is one of the most intense prolonged storm systems to hit the East Coast in years.
The Northeast torrential rain coming from a huge air mass originating in the Caribbean and feeding tropical moisture to the Northeast coast. The storm system is dumping rain as far south as central Pennsylvania and as far north as Ontario, Canada. And tonight, flood watches and warnings remain in effect for much of the Northeast.
The massive airline DeLays tonight and miles of road simply impassable. The storm expected to intensify tomorrow in upstate New York, Connecticut and Massachusetts, with as much as eight inches of additional rainfall expected, and heavy rain in the forecast for the Northeast until at least now Sunday.
Tonight, Mary Snow is live in Pompton Lakes, New Jersey, the area of the Northeast hit with the most intensive flooding today. Rob Marciano in Fairfield, New Jersey.
We begin with Mary Snow, where residents are leaving their homes tonight -- Mary.
MARY SNOW, CNN CORRESPONDENT: Lou, and state officials say this is the worst-hit area for the day. We're standing in about nine inches of water. But behind me is the Ramapo River, and it is about four feet above its banks, and water is continuing to rise.
This is just one of six rivers in the state of New Jersey that emergency officials are keeping eyes on. Four of them have already flooded. And more rain is expected tonight.
As you mentioned, there have been several days of rain, about five inches in some parts of New Jersey in the last 48 hours alone. Here in Pompton Lakes, this is the second time this week this area has been flooded. Many here -- although this is localized flooding, it does threaten two dozen homes, and many have already left their homes. In other parts of New Jersey, there are -- voluntary, that is, evacuations.
Now, the state has activated its emergency operation center, saying at a level of one to five, it is now at a level of three. And it has rescue vehicles on standby, should they be needed. That includes vehicles and boats. They're monitoring the weather very closely over the next 24 hours -- Lou.
DOBBS: Mary Snow. Thank you.
Rob Marciano also in New Jersey tonight, in Fairfield, where two rain- swollen rivers are now dangerously close to flooding stage -- Rob.
ROB MARCIANO, CNN CORRESPONDENT: Hi, Lou.
Just down stream from Pompton Lake, the Pompton River rides behind me. And the water there certainly rising. As you mentioned, two big rivers here in Jersey coming together here, and the muddy waters continue to rage.
This road is aptly named Two Bridges Road, where two bridges connect three counties. And in between them, the two rivers converge.
The one that is actually running the fastest is the Pompton River. The Passaic River, on the other side, is flowing in as well.
Both of those rivers not expected to crest, really, until late tomorrow night, or even into Saturday morning. So it's going to be a long road.
But beyond those bridges, over the bridges and up the road into the town of Fairfield, also some flooding problems there, too. Rain- swollen rivers have crested over their banks, and there are problems with blocked roads, and also with some homes that are being flooded out.
We caught up with one homeowner whose home was knee deep in water, and I asked her -- I asked Mrs. Barry, I said, you know, "How does it feel to see the water rise around your home?"
(BEGIN VIDEO CLIP)
LAURA BARRY, FLOODED HOMEOWNER: It hurts, you know. It does hurt, but it's repairable. You can repair it and just move on with your life.
I mean, that's what you have to do, you know? You just deal with it, and this is just an occurrence that happens when you live by the river. The day I bought the house I was told I needed flood insurance, and we've had it ever since.
(END VIDEO CLIP)
MARCIANO: That's good news that she has insurance and a good attitude.
Down this road, towards the township of Wayne, that road completely flooded and impassable. And that's a story that's being told around much of northern New Jersey tonight, Lou, as these rivers continue to rise.
Good news right now at least. There is a bit of a break from the rain, but I'm being told from the CNN weather center that is likely to change with more impulses of moisture rolling to us later on tonight and tomorrow -- Lou.
DOBBS: Rob Marciano. Thank you very much.
The rainfall, again, as we reported, expected to continue in the Northeast through Sunday.
New Hampshire authorities tonight reporting damage from flooding there will run into the tens of millions of dollars. Floodwaters from this massive East Coast storm system has torn up miles of roadways. Houses have been swept away. Some areas of the state under as much of six feet of water. Many homes remain without power this evening.
Three people are confirmed dead in New Hampshire's flooding disaster. Four people were swept away in the town of Alstead. They are now presumed dead.
Turning to South Asia, relief aid from the United States and the rest of the world continues to pour into earthquake-struck Pakistan. But relief workers say they are unable to deliver food and medical supplies to remote villages in desperate need of help.
Roads to many villages are so damaged that aid simply can't be moved. And snow is now falling in many hard-hit areas. More than 25,000 people are thought to have died in India, Pakistan and Kashmir. Pakistan today saying 2.5 million of its citizens remain homeless.
Fears rising tonight that the most lethal strain of avian flu has moved closer to western Europe. Scientists confirm that the deadliest strain of the disease has been found in Turkish poultry, and they say it is likely the poultry in Romania, that those birds have also been affected with this deadly strain.
Bird flu has now been found in 15 countries. The disease has spread to humans in four countries: Vietnam, Cambodia, Thailand and Indonesia. And 60 people have died from avian flu.
As our nation prepares for the possibility of a bird flu pandemic, there are new concerns about receiving regular flu shots for Americans this year. Our nation is already experiencing some vaccine shortages, as Kitty Pilgrim now reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice over): The animal markets and farms of China have generated some of the deadliest contagious diseases in decades, SARS and now avian flu. Some scientists are now calling for poultry workers in China to be vaccinated with conventional flu shots so the avian flu and human flu don't mix.
DR. WILLIAM SCHAFFNER, VANDERBILT UNIV. MEDICAL CENTER: The theory would be that if you vaccinate all of the poultry farmers, they won't get the human flu, and therefore the bird flu virus won't have a chance to be in contact with that human flu virus. It's a very nice theory, but it's kind of a long way between theory and practice. They don't have enough vaccine to do it. PILGRIM: This week, Turkey and Romania confirmed cases of the first avian flu in birds in Europe. And now the European health commissioner is calling for conventional flu shots as well.
MARKOS KYPRIANOU, EU HEALTH COMMISSIONER: This is part of our preparedness plan to deal with a potential or possible pandemic.
PILGRIM: But experts say there aren't enough conventional flu shots or even antiviral medications to supply the entire world in the event of a pandemic.
MICHAEL OSTERHOLM, CENTER FOR INFECTIOUS DISEASE RES. & POLICY: We just don't have the capability, whether it's vaccines or drugs today, to do anything in the next several years that will make a really big difference in a worldwide pandemic.
PILGRIM: The United States saw shortages of conventional flu shots last year, when drugs manufactured overseas were deemed defective. This year, the CDC says there will be enough, some 97 million doses. But only a third have been delivered so far.
A recent U.S. survey by county and city health officials reported there are still spot shortages. Because of the DeLays in distribution, the CDC, as a precaution, called for only high-risk people to be vaccinated before October 24 to make sure there is enough conventional flu vaccine to go around.
(END VIDEOTAPE)
PILGRIM: Now, it's important to note doctors who have studied both the conventional flu and the avian flu say getting this flu shot this year is very important. Now, the flu shot will not protect against avian flu. The avian flu strain is entirely different than the seasonal flu that goes around every year.
But even the conventional flu can be deadly. And flu complications kill 36,000 people a year in the United States -- Lou.
DOBBS: And to talk about how deadly the flu is, worldwide a million people a year die from flu. It's extraordinary. The shortages, there is no hope in the world of making that up.
PILGRIM: Worldwide, there won't be enough conventional flu shots to go around. In the United States, the CDC says, yes, ultimately we are well prepared. Just right now, the deliveries are not quite on schedule.
DOBBS: And repeat again, none of the vaccines would be effective should there be an avian flu pandemic.
Kitty, thank you very much.
Kitty Pilgrim.
Still ahead here, out-of-control violence in lawless Nuevo Laredo, Mexico. Urgent talks tonight to keep drug gang violence from spilling over to the United States.
Also, America's new corporate elite selfishly out of touch with the middle class and the American worker. And out, in one company's case, to harm their workers. We'll have that special report next here.
(COMMERCIAL BREAK)
DOBBS: Middle class Americans are rushing to file for bankruptcy in record numbers. According to the research firm Lundquist, more than a hundred thousand Americans filed for bankruptcy just last week. That number soared from the previous record of more than 68,000.
This is the fourth straight week in which bankruptcy filings have reached record levels. Individuals are rushing to file before a new law goes into effect Monday. That law will make it far more difficult for many families to qualify for Chapter 7 bankruptcy.
Tonight there is new evidence that U.S. corporate elitists are increasingly out of touch with and openly disdainful of their American workers. American workers, the backbone of our middle class and our nation. But corporate executives are increasingly punishing and decimating their workforce as they unfairly reward themselves.
Christine Romans reports.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice over): The day of the American CEO caring about the rank and file worker is over.
STEVE MILLER, CHAIRMAN & CEO, DELPHI: We are in a market for human capital, supply and demand. If you pay too much for a particular class of employees, you go broke.
ROMANS: That particular class of employees, Americans. And the man disparaging them is the CEO of bankrupt auto parts maker Delphi. Despite rushing into cheap foreign labor markets, its business model failed. Now, his turnaround plan forces union workers to take a 63 percent pay cut, while his management workforce gets raises.
MILLER: There is a market for manufacturing labor, and we are paying triple for that labor. And there is a market for executives, and we are underpaying for it, and we are at risk of losing our management.
ROMANS: As he puts it, "American workers are paid too much and management too little. "
MILLER: Philosophers can speculate about fairness. I have to deal with reality.
ROMANS: Not all businessmen agree.
JACK DAVIS, I SQUARED R ELEMENT COMPANY: He's not alone. He's just one of the many that feel that they can just discard American workers and go to China and hire them for cents an hour. It's completely wrong. ROMANS: And Jack Davis, a business owner who entered politics because he thought corporate America is misguided, pays his workers $25 an hour and does not outsource. He calls the prevailing attitude in corporate America dangerous.
DAVIS: They're destroying their people that will be buying their product. It's so short-sighted, it's just terrible.
ROMANS: Indeed, the chasm grows between American works and management elite.
THOMAS DONALDSON, ETHICS PROFESSOR, WHARTON: Lifetime employment or anything like it is just an unrealizable goal at this point. But it doesn't follow from that that workers should be regarded as mere tools for the production of corporate profits.
(END VIDEOTAPE)
ROMANS: You know, it once was companies used profits to reinvest in their communities. Not anymore. President Bush signed the American Jobs Creation Act last year to give companies a big tax break on their foreign income, that $200 billion boon to multinational companies. They're not -- they're not growing jobs in this country with that money...
DOBBS: Oh, no.
ROMANS: ... they're buying back stock and they're using it for their regular...
DOBBS: I'm shocked. I'm absolutely shocked.
ROMANS: That's right.
DOBBS: I've got to tell you, we asked Steve Miller to join us on this broadcast, the CEO. Steve Miller made all of those sweeping very profound statements about his workers, American workers, having been on the job for three months. Now, as a CEO, I would like to understand how he can figure out how to lead that company and make those kinds of determinations in 90 days. He must be a very smart man, capable of disguising it brilliantly.
ROMANS: It's interesting, because a lot of the critic and the ethics professors, Lou, they tell us that just swapping out labor, if that's your only idea for saving a company, just replacing labor, that's not good management.
DOBBS: It's not good management. It's simpleminded. He needn't have gone to business school or bothered to have a career in business at all. If his sole outlook is to blame workers for the mismanagement of Delphi over the course of -- well, for at least 10 years, I mean, it's insane.
ROMANS: He also says he's concerned about health care costs, and he says he'll be spending a fair amount of time in Washington trying to work out that problem as well. DOBBS: Well, maybe what Mr. Miller ought to consider, and maybe the shareholders of Delphi should consider, is if he is such a proponent of outsourcing and blaming the American workers for the ills of that company -- by the way, JT Battenberg, the former CEO who managed to drive the company into bankruptcy, stood before a group of executives, CEOs, telling me that his outsourcing plans, his offshoring plans, building all his production in China was going to be the next big strategy for Delphi, just about a year and a half before the company was in bankruptcy.
And he wants to -- there's a shortage of management? There's a shortage of good management at Delphi. Why does he want to keep people that drove the company into that mess?
ROMANS: A very good question. He says that there are head hunters that are lurking around all of his management, and he's got to pay them better to make them lead this company through to the next -- the next level. My question is, why are there head hunters lurking around people, trying to get new jobs for people who presided over a company that is now bankrupt?
DOBBS: I think there's a simple word, it's incestuous and insular. And these brilliant U.S. multinationals have managed to help this country run up a -- this year -- an anticipated $700 billion deficit.
The Chinese are beating our brains out. We should be, according to Mr. Miller's lights, looking to the Chinese for our CEOs, not some fellow who does about a two-year tenure at a bunch of turnaround opportunities.
Thank you very much. That's is a disgusting story. I mean, that really just -- that one annoys me more than a little. Thank you.
ROMANS: You're welcome.
DOBBS: Christine Romans.
Up next here, the attorney general finally acknowledges the violent state of our border with Mexico. What he is promising to do about it next. It begins with talking.
And then a subpoena for the Senate majority leader. We'll have the latest on the investigation into Senator Frist's stock sales.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Attorney General Alberto Gonzales has discovered that there are problems with our border with Mexico. He traveled to San Antonio today, there to talk with his counterpart from Mexico on the crime wave that is threatening U.S. security. Gonzales' trip comes as U.S. agents are moving to the border to stop brutal gang violence spilling over into the United States.
Casey Wian reports. (BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice over): Drug cartel-related violence in Nuevo Laredo, Mexico, has led to 147 murders so far this year, and the kidnapping of dozens of Americans. The Mexican military has taken over much of the job of Nuevo Laredo's notoriously corrupt police force, yet the killings continue unabated.
Now concerned that violence is spilling over to the United States, Attorney General Alberto Gonzales met with his Mexican counterpart, Daniel Cabeza de Vaca, to discuss border violence. And Gonzales is sending Laredo, Texas, a team of federal agents specially trained to fight violent crime. Similar teams are already active in 21 other U.S. cities.
ALBERTO GONZALES, ATTORNEY GENERAL: The problems in Laredo highlight the problems we face together all along the border. And that is why I'm pleased to announce, in addition to our agreements with the government of Mexico, that the Justice Department is expanding the successful violent crime impact teams programmed to Laredo, Texas.
WIAN: The attorneys general agreed to unspecified coordinated law enforcement efforts, and to share information and intelligence. They did not explain how those efforts will work or why they haven't happened before. The United States also agreed to help train Mexican authorities in crime-fighting techniques.
DANIEL CABEZA DE VACA, MEXICAN ATTORNEY GENERAL (through translator): Both attorneys generals' offices have agreed to launch each of these measures in a search for definitive results so that Mexico and the United States may act as a single unified chokehold whose efforts will overwhelm organized crime that threatens the border area.
WIAN: But it's clear that for now law enforcement officials on both sides of the border are the only ones overwhelmed. For months, U.S. and Mexican officials have traded accusations over who's responsible for violence in the area. Mexico blames the United States for failing to stop weapons trafficking, and the U.S. wants more cooperation from Mexico on border security.
If body language is any indication, those relations remain chilly at best.
(END VIDEOTAPE)
WIAN: Now, Gonzales says the United States and Mexico are working to develop a level of trust needed to control border violence. But so far, actions by both sides had little impact -- Lou.
DOBBS: Little impact, and, frankly, the only United States can do is promptly take responsibility for its own security in a global war on terror. Did the attorney general mention that if there were border security along our border with Mexico, that that would end drug trafficking, that that would, in point of fact, end illegal alien smuggling, and that it would end the potential of terrorists crossing that border? WIAN: Strangely enough, both attorneys general failed to mention that fact -- Lou.
DOBBS: Extraordinary. Thank you very much. Casey Wian.
That brings us to the subject of our poll tonight. Are you impressed that the attorney general finally realized that there is a problem with the Mexican border, yes or no? Cast your vote at LouDobbs.com. We'll have the results later here in the broadcast.
While, the federal government wakes up to problems that have been present for years along our border, Texas Governor Rick Perry is taking some action at the local level with a new plan called Operation Linebacker. Governor Perry has pledged nearly $10 million to the Texas Border Sheriff's Coalition to enable them to hire more deputies and to address the immediate security needs along their border with Mexico. Perry says Texas cannot wait for the federal government to provide needed border security.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R), TEXAS: Enforcement of our border is the responsibility of the federal government. But the consequences of inaction are suffered by border states and localities.
And we appreciate Congress approving 1,000 new border patrol agents. We welcome the federal investment in technology at the crossings. We're heartened by Homeland Security's effort to build more detention facilities. But none of it is enough.
(END VIDEO CLIP)
DOBBS: In response to Governor Perry's plan to increase enforcement along the border, the Mexican government issued a statement today saying that Mexico "... takes any threat to its national security or the region of North America with the greatest seriousness."
Mexico, at the same time, however, called for more emigration of its citizens into the United States. An estimated three million crossed our border illegally last year.
Coming up next here, Frist under fire. The Senate majority leader will reveal critical information for the investigation into his controversial stock sale.
And then the White House takes staging to a new level. A stunning behind-the-scenes look of just how much of what we see is scripted and rehearsed.
And American workers thrown over for cheap foreign labor. How the Bush administration is sinking the American shipping industry. We'll have that special report tonight from New Orleans.
Stay with us.
(COMMERCIAL BREAK) DOBBS: Well, major developments tonight in the investigation of a questionable stock sale by Senate Majority Leader Bill Frist. The Securities and Exchange Commission has subpoenaed Frist's documents related to that sale.
Ed Henry reports now from Washington.
Ed, how serious is this?
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Well, Lou, it's obviously growing a bit more serious now. As you mentioned, a source close to the case confirms to CNN that, in fact, in the last two weeks the Senate majority leader has, in fact, been subpoenaed for documents in connection with the SEC's investigation of alleged insider trading by the senator. We're also told that he is expected to soon be brought into talk to SEC investigators.
This is all stemming from back in June, the senator sold his shares of HCA, the hospital company that his family founded. The senator sold his shares right before the stock dropped by about 9 percent, raising questions about whether he had any inside information.
Senator Frist's office again released a statement today insisting he had no information that the public did not have. All the same as the public in terms of what he had about the health of the company. They say they're confident that this investigation will, in fact, vindicate the senator.
Meanwhile, another development with the former House majority leader Tom DeLay, his ongoing legal tug-of-war with the Texas prosecutor, Ronnie Earle. CNN confirming today that Earle, in fact, has now issued a subpoena to get the phone records, incoming and outgoing calls, to the home of Tom DeLay.
This is a little bit of a Texas tit for tat. You will remember that a couple of days ago, the DeLay camp actually issued a subpoena of Ronnie Earle and some of his deputies, trying to bolster their case that they believe there has, in fact, been prosecutorial misconduct here.
DeLay spokesman Kevin Madden telling CNN today that the subpoena is "odd and desperate at the same time." Another sign basically to the DeLay camp that they believe this prosecutor is out of control.
It's too early to say where either investigation is going, either into Tom Delay or into Bill Frist. But the bottom line, twin political headaches for Republicans on Capitol Hill at a time when they don't need it, heading into the 2006 elections. There are already Republican worries that they will lose control of Congress, and this is only adding to some of that concern -- Lou.
DOBBS: Ed Henry, thank you very much.
Turning now to the White House where there is growing controversy over an event held by President Bush today -- all this in the midst, of course, of declining poll numbers and enough controversy to more than fill up an agenda.
The White House is accustomed to rehearsed events, sometimes in front of preselected audiences -- in fact, often. But today's event was a first. President Bush talked with our troops in Iraq in a videoconference that was scripted and rehearsed on both sides. Suzanne Malveaux reports.
Suzanne?
MALVEAUX: Well, Lou, as you're quite aware and as you're quite correct, in many of these White House events, really very much rehearsed -- the format rehearsed, the audience already picked, none of this spontaneous.
But what makes today so incredibly unusual is that you, me, our audience all get the chance to basically pull back the curtain and see one of these rehearsals at work. This is through a satellite feed of where we actually see ten American troops, an Iraqi soldier in Tikrit, running through a dress rehearsal of this videoconference to be given later in the morning.
What you are seeing and what you are hearing is a senior Pentagon official who is prompting the questions and then the responses. Let's take a listen.
SENIOR PENTAGON OFFICIAL: ... all geared up to watch this. So thanks for doing it. What you guys are doing is important and we want to tell your story. So we really appreciate the extra effort you're making today to make this work.
MALVEAUX: Now, Lou, of course not surprisingly when President Bush asked the questions during the videoconference, they were very similar to the ones that they had just rehearsed -- two rehearsals prior to that. The White House, earlier today, billing this as an event that was unscripted and the White House today unapologetic.
(BEGIN VIDEO CLIP)
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: This is an event where there's coordination that goes on, and we work closely with the Department of Defense. They work to pull together some troops for the president to visit with and highlight important topics that are going on right now on the ground in Iraq.
The president is going to continue speaking out about what we're working to achieve in Iraq and he's going to continue talking about the vital mission that we're working to achieve there.
(END VIDEO CLIP)
MALVEAUX: And, Lou, while a Pentagon spokesperson defended the military's action here, saying that these soldiers were not prompted or not given exact questions, that they spoke their mind and were sincere -- at least one senior Defense, one Pentagon official, tells CNN that, when he saw this tape of this rehearsal, in his words, he said he was "livid" about what was seen at the rehearsal. He goes on to say that servicemembers pride themselves and are respected for speaking our minds and saying what we think. Clearly, for some at the Pentagon, Lou, this was clearly an embarrassment.
DOBBS: Suzanne, this is extraordinary in part simply because, obviously, our cameras had access to both sides of this rehearsal. Who was the intended audience for this teleconference?
MALVEAUX: Well, the intended audience was U.S. soldiers around the world who were expected to get a chance to see this through the Internet -- their relatives as well. We heard on the tape that they were even providing copies -- DVDs -- for their families and so forth.
And, of course, the American audience here -- to move forward to prepare for the Iraqi constitution vote that's going to happen just two days away. President Bush wanting a boost, sending a boost to those American troops that they certainly didn't want the satellite feed to get out, and that is what we picked up.
DOBBS: And how did we have our cameras rolling for this rehearsal? Surely the White House understood how that looked.
MALVEAUX: Well, it's a satellite feed. And, essentially, I can't get technical, but we can basically pick things out of the air, out of space, and drop them down and...
DOBBS: We stole it. Is that what you're saying? We stole it.
MALVEAUX: I'm not saying we stole it.
(LAUGHTER)
No, I'm saying it was there for everyone to see and all the networks watched it. What was unusual, however, is the White House and the Pentagon don't necessarily put those feeds out publicly for everyone to see while they're rehearsing.
DOBBS: Extraordinary. Suzanne Malveaux, thank you very much.
MALVEAUX: You're welcome.
DOBBS: Joining me from Washington our own Bill Schneider and, here in New York, John Fund of the Wall Street Journal, to assess what is a mess for this White House.
I don't think we can describe it any other way, do you, John? The way you reacted, I think you're about to.
JOHN FUND, THE WALL STREET JOURNAL: No. The whole story said all happy families are alike and all unhappy families are unhappy in different ways.
This administration is falling into some of the traps previous administrations have had, but some are truly of their own making there. There clearly is a Team B operating here that wasn't here in the first term. The first term we were running on all eight cylinders, message was constant and consistent. Here have you people squabbling with each other. They're finally leaking, Lou -- they're leaking. The wanton Bush White House.
DOBBS: Bill, what's your reaction? Do you think this is about leaks? Or is it just a mess caused by the actions and the policy decisions of this White House?
BILL SCHNEIDER: Well, here's a list: Iraq, Katrina, gas prices, economic pessimism, the deficit, spending, Social Security -- don't forget, a lot of people continue to resent the president's Social Security plan which he talked about for most of this year and never got off the ground.
DOBBS: I'm sure the White House appreciates you bringing that back up.
SCHNEIDER: Yes. And not to mention Fitzgerald's investigation, Bill Frist, Tom DeLay -- and don't forget Jack Abramoff. That's a long list.
DOBBS: And don't forget a trade balance that's out of control, an immigration policy that is nonexistent and, as a matter of fact, wrong-headed, and the failure of this administration to enforce immigration laws.
SCHNEIDER: And Harriet Miers.
DOBBS: I'm sorry?
SCHNEIDER: And Harriet Miers.
DOBBS: And Harriet Miers.
John, has this administration suddenly, has it just -- I don't know how to say it -- has this administration simply gotten so far out of touch with the American people that it thinks it can act in any way that it wants, irrespective of the consequences?
FUND: It ran on a set of clear, defined principles in the last election. It won. And it seems to have forgotten a lot of those principles.
Now, having said all of that, the economy -- despite the trade numbers that you mentioned -- is in very good shape. Unemployment is pretty good, we're growing jobs, but, but, but...
DOBBS: Do you want to really go there, John? Go ahead.
FUND: Yes, we are growing jobs. But this administration has not been able to communicate that to the American people. There is an anxiety, an uneasiness, and only about 30 percent of the American people believe we're heading in the right direction.
DOBBS: 30 percent? And for the first time, Bill Schneider, the president's polls have dropped below 40 percent for approval rating.
SCHNEIDER: That's right. The last two polls -- the latest polls taken over the weekend through Monday -- both show the president under 40 percent. Did the Wall Street Journal/NBC News poll -- you see it there. 39 percent approve. 54 percent disapprove. It was just a year ago 51 percent voted to re-elect him.
And the Pew Research Center came out with a poll today. What do they show? 38 percent approve. 56 percent disapprove.
You know what his approval rating in this poll is among Democrats? 9 percent. 9 percent. The only good news for the president -- and John may have something to say about this -- is his base seems to be holding up. Despite consternation over Harriet Miers...
DOBBS: Yes, well, let me say something about that. The base -- I don't think the base is too thrilled right now. Harriet Miers has inflamed conservatives all over the country.
Where does he turn? 28 percent -- according to your poll -- 28 percent of the public thinks that this county is headed in the wrong direction.
FUND: Well, he has to rely on his base and then build from. But the base is right now divided right down the middle on Harriet Miers. Only 54 percent of conservatives support Harriet Miers.
He has to change the subject. Frankly, this nomination is unsustainable and I believe it must be pulled and it will be pulled.
DOBBS: You think it will be. Do you agree, Bill Schneider?
SCHNEIDER: No, I don't think it will be pulled. The question is: Will she decide to withdraw? Probably not. I think it's likely to come down to the confirmation hearings. Everything is riding on those hearings. If she has a really terrific performance, it could change minds.
But, frankly, everyone is waiting to see those hearings.
FUND: Lou, there are 55 Republican senators. 55 of them do not want the hearings.
DOBBS: 55, really?
FUND: Nobody wants these hearings. It will be a mess.
DOBBS: It's extraordinary, because we started -- in fairness to Harriet Miers, anyone who followed Judge John Roberts who, to me, looks like absolutely the archetype for a judicial nomination.
FUND: This is night and day when it comes to decision-making process. You had John Roberts, who was textbook perfect...
DOBBS: Absolutely. FUND: ... you have you Harriet Miers -- the vetting process broke down completely. The president decided to go off in his own direction and not vet his own nominee properly.
DOBBS: And at this point, there is the other party, the Democrats. And they haven't come up with a single message, a straightforward proposal or plan. They seem, Bill Schneider, absolutely rudderless in all of this as well?
SCHNEIDER: And enjoying every minute of it, because the White House is...
DOBBS: Well, they may be enjoying it, but that 28 percent who thinks the country is going in the right direction -- that 72 percent isn't thrilled with...
FUND: Half of the political success is waiting for the opposition to mess up. The other half is convincing the American people you can do better.
The Democrats are not making that fundamental case.
SCHNEIDER: Yes.
DOBBS: I don't know about you guys, but I think a lot of us would like somebody to step forward with a plan here that makes some sense and start focusing on the middle class and the people that make this country work.
FUND: Go back to basics -- what you were elected on and what you promised the American people.
DOBBS: And maybe represent those constituents.
FUND: That would help.
DOBBS: That would be very nice.
Bill Schneider, John Fund, great to have you here. Thank you, gentlemen.
In New Orleans tonight, disturbing new allegations involving one of the city's hospitals. Louisiana's attorney general is now investigating charges that some patients at Memorial Medical Center were the victims of mercy killings.
The state has ordered that autopsies be performed on all 45 bodies recovered from the hospital after Hurricane Katrina.
Meanwhile, Mayor Ray Nagin is visiting Louisiana shelters that hold thousands of New Orleans residents who fled the storm. Some of them were not pleased to see him.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I want to go home. I want to help the people of New Orleans. But I can't do it if you're going to give us all these all (inaudible). We want everything you can come to the table. It's people like us that's going to make the city flourish, not promises or false hopes.
MAYOR RAY NAGIN, NEW ORLEANS: That's what we're trying to do.
UNIDENTIFIED FEMALE: I'm going to stand with you, and if the city comes back and say, I am a business owner of 32 years, I can vouch what you did. But if it fails, I will be there and be your worst nightmare. I promise.
(END VIDEOTAPE)
DOBBS: Well, Mayor Nagin may not be around to see whether New Orleans recovers from Hurricane Katrina. The mayor is up for re- election next year.
All around the Gulf coast, many American shipping companies devastated by Hurricane Katrina have new reasons to worry. They're now losing business to cheap foreign competitors because of a critical and costly decision by the Bush White House. Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Bouchard Transportation has a 30,000 ton double-haul vessel sitting with nothing to do. It's one of at least five American ships that normally would be transporting oil and petroleum products.
But after Katrina damaged major oil rigs and refineries in the Gulf of Mexico, some of the work has now been picked up by foreign flagship vessels that charge a lower price, this after the White House waived a provision called the Jones Act, which prohibits foreign vessels from shipping oil through U.S. ports.
Representative George Miller has a problem with U.S. ships not having enough work while foreign carriers are delivering critical oil supplies from one U.S. port to another.
REP. GEORGE MILLER (D), CALIFORNIA: These are not American- owned, which means they haven't been built on American jobs. So it's just an undermining of the merchant marine system in this country that is also tied to our national security.
SYLVESTER: With high gas prices, the Bush administration has argued waiving the Jones Act allows fuel to move more rapidly. Shipping company owner Morton Bouchard acknowledges consumers need relief from high fuel prices, but he's worried about extending the Jones Act waiver which has already been renewed once.
MORTON BOUCHARD, BOUCHARD TRANSPORTATION: I wish the administration would have had the waiver for a shorter period of time and had the waiver administered on a case-by-case basis rather than just giving it a flat-out waiver.
SYLVESTER: Other industries are seeking similar waivers. The Farm Bureau, which relies on the shipment of grain down the mouth of the Mississippi River for export, also wants to use lower cost foreign carriers.
TROY BREDENKAMP, AMERICAN FARM BUREAU FEDERATION: Quite frankly, U.S. flag vessels are costing considerably more than what a foreign flag vessel would cost, so it's a two side monster right now, both on the availability and the price side.
SYLVESTER: But critics say Hurricane Katrina has become a convenient catchall excuse for business interests to bypass regulations and shut out American workers.
MILLER: There's a larger pattern here. They've waived the safety standards for truck drivers. They've waived affirmative action provisions for companies. They've waved the Davis-Bacon protection against sub-standard wages. Now they've waived the right of Americans to even get the job.
SYLVESTER: Lisa Sylvester, CNN New Orleans.
(END VIDEOTAPE)
DOBBS: Just ahead here, the most expensive fighter jet ever made is ready for takeoff, and it's ours. Why the Pentagon says the F/A-22 is worth every penny that went into it. That plus our General David Grange coming up next.
And then, devil worshipers beware. The Vatican has you in its sights. The Vatican hoping to put an end to demonic possessions. Stay with us for that story.
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DOBBS: As Iraq prepares to vote on its news constitution this weekend, the president today once again warned of new violence leading up to that referendum. The National Guard and our reserves have been sharing a higher share of U.S. casualties in the war in Iraq, over the course of the past two months. The Guard's portion of casualties nearly doubled since last year.
Joining me now is General David Grange. General, as always, good to have you here. This is a very troubling statistic to look at the reservists, our citizen soldiers, our national guardsmen and women, suffering this level of deaths over the course of the last 60 days. What's your reaction?
GEN. DAVID GRANGE (RET), CNN MILITARY ANALYST: Lou, I think the reason for this is that you have a lot of National Guard combat units, major combat units, brigades in Iraq on this rotation, this particular phase of the operation, and so, consequently, more engaged. Plus they still maintain a lot of combat support and combat service support functions in Iraq.
DOBBS: And, you know, obviously, none of us wants a single American soldier, marine -- any service member to die here, but the strain that we put on our active duty forces, the fact that even though this remains a great debate about whether we have enough troop or not, to see this shift in casualties to our National Guard and reservists is explained how?
GRANGE: Well, again, it's just that they're committed more. They are rotating into Iraq in lieu of active units to give active units a chance to regroup, to transform to a new what they call unit of action, new organization, in order to take on future requirements. And so they are pulling a big load of the armed forces requirements overseas unprecedented from before.
DOBBS: General, as we reported here tonight, the commander-in- chief talking with a small group of our troops in Iraq, perhaps a dozen of our soldiers, told the president that Iraqi forces have been improving, and as they put it, the American forces will take more of a supportive role during the referendum vote. Does that represent the view of our soldiers in Iraq?
GRANGE: I believe so, because Don Shepperd, one of our fellow CNN military analysts, just returned and talked to troops all over Iraq, National Guard and reserve active, and they are very positive about their mission, they're positive about the success.
What I don't like about this particular interview is that it was pretty much staged, and we don't have to do that with the kind of soldiers that we have today in our armed forces. Naturally, it would have just come out very positive answers from the soldiers. It did not have to be that way. It was a failure in information operations.
DOBBS: General, that was exactly what I wanted to do is get your impression of that rehearsal. We thank you very much as always, General David Grange.
GRANGE: Thank you.
DOBBS: Tonight the Pentagon is preparing to unveil the most expensive fighter jet ever built. The F/A-22 Raptor has been in development for nearly two decades, at a cost of almost $70 billion. Jamie McIntyre has the report.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN CORRESPONDENT: The F-22 Raptor has long been in the crosshairs of critics who complained it's a gold plated luxury jet that delivers too little extra bang for its third of a billion dollar price tag. But, the pilots who may be the first to fly the F- 22 in combat insist its stats-of-the-art avionics, stealthy features and ability to cruise at supersonic speeds will give the U.S. an unfair advantage for years to come.
LT. COL. JIM HECKER "SCORCH", COMMANDER 27TH FIGHTER SQUADRON: The F/A-22 is going to give us the ability to basically be the Dallas Cowboys going against JV Tab elementary school team as opposed to squaring off face-to-face with two NFL teams.
MCINTYRE: The F-22 is now called the F/A-22 to reflect its attack capability to drop smart bombs as well as its dog fighting capability. Nobody disputes the plane, built by Lockheed Martin, could be the best fighter jet ever, but its sticker price is sobering, $130 million a plane if you just count assembly line costs.
Add in the billions sunk into R&D over two decades, and it comes to an eye-popping $345 million a plane. For that, you could buy three of the new F-3 Joint Strike Fighters, or 33 M1A1 main battle tanks, of 88,000 flak jackets. In fact, two squadrons of F-22s would cost as much as an entire Nimitz Class aircraft carrier, airplanes not included.
Critics argue the old F-16s and F-15s are more than a match for potential foes, and that the F-22 is overloaded with too many bells and whistles.
In a place like Iraq, it's overkill. I mean, it's the proverbial shooting the ant with the elephant gun. It's just not needed. It would sit in the runways if it were ready to go in Iraq.
(BEGIN VIDEOTAPE)
MCINTYRE: With 51 F-22's having already rolled off Lockheed Martin's production line, the debate has shifted into whether just how many more planes they should buy. They've already deployed one squadron from Langley Air Force Base.
Now, the Air Force says they would like 381 F-22s. The Pentagon is thinking more like 179. And, of course, the fewer planes you buy, the more each individual plane costs -- Lou.
DOBBS: I think I understand Pentagon math and how that works. But I appreciate it, Jamie. As I look at that plane, it looks remarkable. There's a -- viscerally, I want to say, anything that cool looks like it has to be good. In terms of the national interests, and anything it truly gives is pilots that kind of command and any kind of air combat. I am absolutely impressed and at the same time, I'm reminded at this, I looked at your comparison there with the cost of those planes, President Eisenhower, half century ago, almost, reminded us what the costs were of every one of the products of the military industrial complex in term what it costs in terms of hospitals and bread and food for our people. The necessary evil is the way the president looked at it then. And of course, on the global war on terror all the more critically need.
Jamie McIntyre, as always, thank you, sir, from the Pentagon.
A reminder to vote in our poll tonight, "are you impressed that the Attorney General finally realized that there's a problem at the Mexican border? Yes or no." Please cast your vote at loudobbs.com. We'll have the results coming up here in just a few minutes.
It is normal for students to be nervous on their first day of school. But the fear factor was especially intense for students at the Vatican today, they were beginning their first day of exorcism classes. This is the second year that the Vatican has offered a course for aspiring demonologists and exorcists. The professors themselves are practicing exorcist. And the Vatican course is growing in popularity. More than 100 student, most of them priests, have signed up.
Still ahead here tonight, the big freeze out: why American families have no recourse when it comes to soaring energy prices. Stay with us.
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DOBBS: People all across the country are calling for investigations into price gouging. After months of record high gasoline prices and now warnings of record high home heating oil prices this winter. The reality, however, is there is little, if anything, that consumers can do about those rising prices. Bill Tucker has the story.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): The pain at pump is becoming the hurt in the thermostat and the kick in the wallet. Consumers already are paying nearly $1 a gallon for gasoline than they were last year, in facing heating bills that could be as much as 50 percent higher.
TYSON SLOCUM, PUBLIC CITIZEN: And Congress is clueless. The White House is clueless. They are doing nothing at all to hold oil companies accountable for their price gouging. They're doing nothing to hold energy traders accountable for their price gouging and Americans are suffering as a result.
TUCKER: The Federal Trade Commission is investigating whether the price of gasoline has been artificially manipulated by oil companies. When done, it will report to Congress. FTC lawyer John Seessel promises that, quote, "a determination that unlawful conduct has occurred will result in aggressive law enforcement activity by the FTC."
However, there are no provisions requiring similar investigations into the price of home heating oil or natural gas.
(END VIDEOTAPE)
TUCKER: Nor did Congress, when it wrote the law, provide any defined punishments against the oil companies who might be found in violation of law, Lou?
DOBBS: So, it's sort of a law without teeth?
TUCKER: You could say, that yes.
DOBBS: And the FTC is going to take aggressive law enforcement activity. The regulations there, what will they be able to do?
TUCKER: They'll be able to do nothing. They'll be able to report back to Congress and tell them what they found.
DOBBS: Ah. Some days you just love this country a little more than others. Thank you very much, Bill Tucker. Still ahead here, we'll have the results of our poll question, and a preview of what's coming up tomorrow as best we can determine what's coming up tomorrow. Stay with us.
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DOBBS: Heavy turnout in our poll. 79 percent of you say you are not impressed that the Attorney General finally realized there's a problem at the border with Mexico.
Thanks for being with us tonight. Please join us here tomorrow. We'll be looking at the Harriet Miers nomination and what it's costing the president. Political strategist Ed Rollins will be among our guests. We hope you will join us.
For all of us here, good night from New York. "ANDERSON COOPER 360" starts right now -- Anderson.
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