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Stock Market Hits 14,000, Falls Flat; Michael Vick Appears in Court
Aired July 26, 2007 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well, we are an hour away from the closing bell on Wall Street, and it won't come a second too soon. The markets are plunging there, over 300 points down now. Investors are bailing. And our Ali Velshi joins us, as well as Susan Lisovicz, to sort it all out.
Hello, everyone. I'm Fredricka Whitfield at the CNN Center in Atlanta, in for Kyra Phillips.
DON LEMON, CNN ANCHOR: And I'm Don Lemon. Thanks for joining us today. We're going to get straight to it, right?
WHITFIELD: Let's do that, in fact. Let's talk about Wall Street.
We're seeing one of the worst sell-offs of the year. The Dow is down over 300 points, as you saw the leaderboard there just a moment ago -- the Big Board, in fact.
Susan Lisovicz is the at the New York Stock Exchange, and Ali Velshi is in our New York bureau to tell us exactly what's going on.
Susan, let's begin with you.
What, it seems like less than 30 minutes, it was down more than 400 points, now kind of rebounded a little bit, still down more than 300 points. Neither one is a very pretty scenario.
SUSAN LISOVICZ, CNN CORRESPONDENT: No.
You know, it's an ugly day, Fred, when 365 points lower is not the low of the session. In fact, just a few minutes ago, the blue chips were down 450 points. We are seeing a decisive sell-off. And one of the things that can be said about Wall Street is, it doesn't do anything in a subtle way. It buys big. It sells big.
And this is coming, remember, just one week after the Dow Jones industrials closed at an all-time high. So, the market was ripe for a pullback. And then we have plenty of new data to give investors reason to worry, whether it's the housing market, whether it's the credit crunch, whether it's higher oil prices.
And what you see is a nasty brew, and it's playing out to one of the worst point losses of the year -- Fred.
WHITFIELD: Wow. So, Ali, I guess this is why this hurts so much. If last week we're celebrating an all-time high and now we're dealing with this kind of plunge and you credit or blame a few things, from, as Susan was saying, whether it's lending or whether it's oil prices, how do you make sense of this? How do people, investors, kind of get ahead of all this?
ALI VELSHI, CNN CORRESPONDENT: Most folks are going to make sense of it by realizing they are taking a hit today. Now, they may have had a big gain so far this year. But we're looking at 95 percent of the stocks in the S&P 500 right now are negative; 28 or 29 of the Dow 30 stocks are negative. 3M is up a little bit.
Procter & Gamble has been going back and forth from being positive to negative. But pretty much any stock holding today, whether it's technology or well diversified, you are taking a hit today. This is bit of a problem, because the actual number, the decrease is pretty substantial.
Now, that said, you have had a good run until last Thursday. And a lot of people expected that the market does have to pull back. That's what markets do. They're generally not a straight run up. It's the volume and the volatility that has people worried. We had a 226-point drop on Tuesday. We have had three triple-digit gains and losses.
But, Susan, it's kind of what you're going to get in a market that is around that 14000 range. The moves are simply going to be bigger.
LISOVICZ: Well, that's right.
Just since last Thursday, Fred and Ali, the Dow has lost 600 points. It's very easy math. You closed at 14000. It's down now 13420. And I think what investors -- you know, most investors are not day traders.
VELSHI: Right.
LISOVICZ: They're investing for the long term. They're investing for their kids' college education. They're investing for their retirement. So, a one-day sell-off doesn't really change things fundamentally.
But here is the question. Is this a beginning of a change in sentiment? Is this the beginning of a correction? Some folks say that it's overdue. But the other point to consider, Ali and Fred, is that you want to buy low. You want to buy on the dip. So, if you have been looking at a stock you and say, wow, the surprise too high, we have seen some big markdowns on Wall Street today.
WHITFIELD: All right.
VELSHI: Yes, there's some big discounts right there. A lot of folks that we have been talking to a Wall Street are saying, once again, they consider these dips, any dips, they think the market is generally going higher, so they see dips as a buying opportunity.
WHITFIELD: All right, good point.
Ali and Susan, thanks so much. We will check back with you again at the closing bell -- is just about 55 minutes away.
All right, thanks so much.
LEMON: Also developing right at this hour, at this minute, I should say, he has faced legal troubles in the past, but today it's totally different for Atlanta Falcons quarterback Michael Vick. The stakes are really high, higher, and emotions are just has high for Vick's fans and his critics as well.
Vick just arrived in federal court in Richmond, Virginia, to answer felony dogfighting charges, charges that have already taken a toll. We have two criminal defense attorneys.
They join us both on this play by play. We have B.J. Bernstein, who is familiar here to the CNN NEWSROOM, and Mickey Sherman in Stamford, Connecticut.
Mickey, B.J., thank you both for joining us today.
What do the prosecutors in this case, B.J., have to prove to convict Michael Vick? Is it going to be a tough one for them?
B.J. BERNSTEIN, ATTORNEY: You know, it's not going to be as tough because he's charged with conspiracy, conspiracy to be involved with dogfighting, conspiracy to be involved with gambling connecting to dogfighting, which means that it's a little bit easier.
He just has to be part of the plan or scheme to do it. And when you read the indictment here, it appears from the indictment that there are at least two informants telling the government that Vick had direct involvement with the dogs, with the dogfight, everything down to buying T-shirts that same the name of the kennel on it.
LEMON: All right, so you have got two informants here. Necessarily, does that mean two eyewitnesses or just two informants?
BERNSTEIN: Well, we will hear more as the case develops. But the indictment reflects that people have given information to the government to sniff out what -- you know, remember, Vick before this indictment was saying, well, I owned this property. I didn't really what was going on, on the property. You know, family and friends use it.
LEMON: Right.
BERNSTEIN: This indictment says, oh, no Mr. Vick, there's a lot more.
LEMON: OK. We are going to get back to that.
Hey, Mickey, at this point, if you were Michael Vick's attorney, what might your strategy be at this point? What might you be doing to try to get your client off from these serious charges?
MICKEY SHERMAN, CRIMINAL DEFENSE ATTORNEY: I would be making a deal as quickly as possible. I would be doing what they call a mea culpa. I would admit responsibility. I would be asking for mercy, for forgiveness, and just explaining how incredibly stupid my client was and how he's going to make amends to society by contributing a billion hours of volunteer work, his next year's NFL salary, God knows what.
But this case, I don't think is winnable. I think, as B.J. points out, not only are they informants. They are not only informants. They are accomplices. He owns the property. It's going to be impossible for him to distance himself here.
Plus, there's going to be a money trail here. And the problem is that this crime is just so offensive to so many people. You can haul away children's kids. You can break into their cars. But you touch a dog, and you have ticked off not only the people who are the victims...
LEMON: Right.
SHERMAN: ... but most of the Western world.
LEMON: So, Mickey, you're saying, all right, a mea culpa. So, you're saying is not to say I am not guilty about. You're saying, you know what? I'm sorry. Do you think that is going to work in this case? As you said, if you mess with someone's animals, you are going to tick a whole bunch of people off.
And the images of this are so, so disturbing. So, at this point, not even, I'm not guilty.
SHERMAN: Right.
LEMON: You're saying, you know what? I'm sorry.
SHERMAN: No, he's going to -- they are going to start with a not guilty. Nobody has got the -- the chutzpah to get up on day one and say guilty, although, frankly, it wouldn't be a bad idea. But no defense lawyer's got the nerve to do that.
They're going to start at not guilty. But, if they're smart, and which I'm sure they are, if they have got high-priced talent like he can afford, they're going to look for some kind of a disposition as soon as possible to stop the bleeding here and maybe salvage his NFL career, which is really on the line.
LEMON: OK, Mickey -- Mickey talked about that, B.J., about the team here. We're talking about this guy Daniel Meachum. He can afford a very high-profile attorney. And this guy is high-profile, handles stars. And he's handled these types of cases before.
Why would Michael Vick get someone this big to take this case?
BERNSTEIN: Well, and he's got Billy Martin, and he has got his local counsel. I mean, he's putting together a legal team. And if you have got the money, you should, because, as Mickey points out, first of all, you have got federal guidelines, which are very strict about what the sentencing is, unless you enter a plea and you can take some points off and lower your sentence for accepting responsibility.
Two, you have got Virginia, tough, tough, court.
LEMON: Right.
BERNSTEIN: This is not an easy place. And, three, he brought in Daniel Meachum now, the type of guy who could say, you know what? If my client is going to enter a plea, I'm going to deal with the NFL now and have some behind-the-scenes talks to say, at what point is there any way to salvage Vick's career?
LEMON: OK, Mickey, look at these live pictures now.
I don't know if we have any sound on this.
Can we hear this, guys in the control room? Is there any way to hear this?
No, we don't.
But there are protesters, Mickey and B.J., outside of this courtroom. Mickey, take us inside the courtroom right now, because Michael Vick is inside. We saw him arrive moments ago. Tell us what's going on inside the courtroom. What's the judge doing? What's the defense team doing? What's everybody, prosecutors, doing at this point?
SHERMAN: The judge is advising him of his rights, which he has certainly been advised of before. He's asking him if he has an attorney. He says that he does have an attorney. And he's asking the prosecution, the government, what they are asking for in terms of bond.
And they are not going to hold him. He's walking out of there today. There's no question about that. And the defense has already put together, I'm sure, a bond package, whether it's real estate cash, money, surety bond, whatever. And he will be advised of the charges against him.
He may or may not enter a plea of not guilty.
LEMON: OK.
SHERMAN: It would be pretty quick.
LEMON: Mickey, Mickey Sherman, thank you so much. We are going to let you go. And we're going to thank you for joining us.
Real quick, since I have B.J. here, you saw those pictures, B.J. Tell us real quickly about the outrage. It's really touched off some folks.
BERNSTEIN: Intense outrage.
I'm going to tell you, when I was a prosecutor, we used to say you could kill everyone in the house, but once you killed the dog, that was it. People love their animals. There's a special relationship people have with animals. And that's the one thing that no -- no matter how good of a lawyer or P.R. person you can have in a criminal case, when you're dealing with animals and destruction of animals, you're in big trouble.
LEMON: B.J. Bernstein also touched off some racial chords as well, social issues. We are going to talk about that, find out what happens in this courtroom. We are going to bring it you live right here in the CNN NEWSROOM.
B.J. Bernstein, Mickey Sherman, thank you both for joining us today and talking about this case.
Stick by. We want to find out what happens in this courtroom. We may come back to you.
This Vick case has drawn a deep line between two camps, on one side, between who think dogs are just animals, on the other side, pet lovers. The latter group is out in force today in Richmond, as we have been showing you. Hundreds, maybe thousands, of animal rights activists are lining the streets outside the Richmond federal courthouse. Groups have spent the past several days painting signs and making T-shirts.
These are live pictures you're looking at coming from that courtroom in Richmond, Virginia. Again, Michael Vick is inside. And we are going to let you know what happens as soon as he comes out.
For a lot of people, it's hard to imagine dogfights as entertainment. They are brutal and can go on for hours before -- it's really sad -- before one dog wins. You might also be amazed at how they are growing -- that's right, growing -- in popularity. A rare glimpse into an illegal undercover world tonight on "PAULA ZAHN" at 8:00 p.m. Eastern only here on CNN.
Thanks to Mickey and B.J.
WHITFIELD: And, on Wall Street, we're seeing one of the worst sell-offs of the year. We're following the markets here in the NEWSROOM. The Dow down more than 300 points, 362 points.
Also, illegal immigration rules struck down in Hazleton, Pennsylvania. Bill Tucker has the latest straight ahead in the NEWSROOM.
(COMMERCIAL BREAK)
LEMON: Fourteen past the hour, three stories working on for you right here in the CNN NEWSROOM.
A congressional subpoena is on its way to President Bush's top political adviser, Karl Rove. Senate Judiciary Chairman Patrick Leahy wants to make Rove testify about the decision to fire several federal prosecutors.
Just days after the Dow crossed 14000, a very bad day on Wall Street. The Dow is down more than 300 points, amid concerns about things like housing, oil, and credit.
The National Transportation Safety Board completes its investigation of last year's deadly Comair crash in Kentucky. Investigators cite, among other things, a distracted crew. They also say airport markings need to be improved.
WHITFIELD: And now more on a defeat for a Pennsylvania town trying to crack down on immigration.
Bill Tucker is in Hazleton, Pennsylvania.
So, what exactly is at issue here? What did this town try to do the federal court said, no?
BILL TUCKER, CNN CORRESPONDENT: Well, Fredricka, what the town tried to do is essentially two things, pass an ordinance that would crack down on employers who hired illegal aliens, and then crack down on the landlords who would rent to illegal aliens in their communities.
Judge Munley of the federal district court in Pennsylvania today handed the city a profound defeat. It is a carefully-worded, argued 206-page document where the judge says, what the city tried to do was unconstitutional, and they have been permanently enjoined from enforcing those ordinances.
There's a news conference that will be here in about 45 minutes, where the mayor and city officials will be out to talk about what they do next. Fredricka, it's widely expected this case is far from over. They are expected to appeal this to the circuit court of appeals down in Philadelphia. So, we're in the middle of something. We're not at the end of something, as far as the city of Hazleton is concerned, anyway.
WHITFIELD: Ah. So, Bill, I wonder how precedent-setting this might be for so many other American cities who are trying to take the bull by the horns, if you will, to say they want to do something preemptively while federal reinforcements are still being mulled over?
TUCKER: Well, you put your finger on why people are paying such close to this, Fredricka, because there are literally hundreds of communities who have tried to model ordinances, looked at what Hazleton has done, tried to take similar actions themselves.
They so far have stopped from doing so because they are afraid of lawsuits. They are not sure where they stood legally. Today's ruling effectively puts a stop sign up for all of those communities and says they cannot do anything in regards to trying to tackle the issue of illegal immigration themselves.
WHITFIELD: Uh-huh.
TUCKER: So, there's going to be a lot more attention paid as we go into the appeals process here.
WHITFIELD: Right. And you spoke to the mayor of Hazleton in the last hour.
TUCKER: Right.
WHITFIELD: And he says, this fight is not over. So, what's next for that city?
TUCKER: Well, what's next is they will hold a news conference. The appeal will go down to the appeals court down in Philadelphia.
It's hoped, because there are a couple other cases that are similar, but not exactly like this, that if the appeals process goes forward, they will be enough for the Supreme Court to have to pay attention to this, and they will eventually take it to the Supreme Court -- Fredricka.
WHITFIELD: All right, Bill Tucker, we will all be watching. Thanks so much.
LEMON: All right.
Another thing we're all watching now, we're watching the markets on Wall Street. We're seeing one of the worst sell-offs of the year. It's down more than 300 points. Now, at one point in the day, it was down 424 points, according to our Susan Lisovicz. It's the low for the year. It surpassed the February sell-off -- details coming up in the NEWSROOM.
WHITFIELD: And imagine going under the knife, but not going under from anesthesia. Patients who have experienced it, they say they will never forget it -- straight ahead in the NEWSROOM, nightmare in the O.R.
(COMMERCIAL BREAK)
WHITFIELD: Stocks are plummeting. They have all afternoon. And investors are bailing, but they're not panicking, says our Susan Lisovicz.
You have been watching it all very closely, but it is important to take note of the kind of numbers we're seeing. Are we still in the 300 mark, down more than 300 points?
LISOVICZ: You know, actually, we have a rally of sorts, I guess you could say.
WHITFIELD: Yes.
LISOVICZ: Because the Dow was down 450 points just in the last hour. And that is the session low. And that would be -- if we had closed at that point, that would be the worst point loss of the year. But the Dow is down -- and I put this in quotes -- "only" 313 points right now. And you know what? It is an orderly sell-off. And that's something to be said. There's no panic that I can detect. There's a whole bunch of reasons why. It's new, lousy home sales that came in this morning. It's lousy quarterly earnings from three of the nation's biggest homebuilders.
We have oil prices that are two bucks off of the all-time closing high and a lot of concerns about a credit crunch, not only because of the mortgage meltdown and stricter lending practices in place, but just about the appetite, investing appetite, for taking on debt with some of these big deals that have fueled the market's all-time highs.
And, so, it's -- you put it all together, it's a nasty brew. And it's coming just one week after the Dow closed at the highest level ever.
WHITFIELD: Right. What a letdown, after so much celebrating, at least, for last week, for a moment.
LISOVICZ: Yes, but, you know -- but that's -- not to say that these kind of extreme sell-offs are to be expected after you reach an all-time high, but some sort of a giveback is not unusual, because, you know, you need factors to keep driving the market higher. And what we have seen in the last week is just continued bad news on the housing -- on the housing front.
WHITFIELD: Yes.
LISOVICZ: It's a big sector of the economy. It's -- after all, it's the sector that really stabilized the U.S. economy just a few years ago. So, you know, that's what investors are focused on. And it's a negative -- it's negative news, unfortunately.
WHITFIELD: Right.
And just in the amount of time that you and I have been talking, we're talking about a 30-point back and forth that we have been experiencing.
LISOVICZ: We're under 300 points now.
WHITFIELD: Yes.
LISOVICZ: I don't think we're going to see -- I don't think we're going to go into positive territory. But at least maybe we have seen the bottom for today.
WHITFIELD: True. We only have about 35 minutes to go before the closing bell.
(LAUGHTER)
LISOVICZ: Right. Exactly.
WHITFIELD: All right, Susan, we will see you again in about 35 minutes, if not sooner. LISOVICZ: You got it. For sure.
WHITFIELD: Thanks so much.
Well, for more details on today's sell-off and what's driving the numbers, check out CNNMoney online. We have got more market analysis on the site there. That's CNNMoney.com.
Well, it's the kind of thing nobody wants to think about, but it does happen. So, you're in the hospital for an operation. They have given you anesthesia. They think you're asleep, but guess what? You're not.
A 2004 report said the condition known as anesthesia awareness happens to one or two of every 1,000 patients.
A report by David Mattingly airs tonight on CNN. Here are some accounts by patients who have been through this waking nightmare.
(BEGIN VIDEO CLIP)
TODD WHITLOCK, EXPERIENCED ANESTHESIA AWARENESS: There was a pain. There was a pain that you cannot deal with.
DIANA TODD, EXPERIENCED ANESTHESIA AWARENESS: It just goes on and on. And you're screaming inside your head.
ERIN COOK, EXPERIENCED ANESTHESIA AWARENESS: I just kept praying, God, please, just let me out. Just let me out. Let somebody know that this hurts so bad.
(END VIDEO CLIP)
WHITFIELD: Whoa. It is unimaginable. You can see David Mattingly's report tonight on "ANDERSON COOPER 360." That's at 10:00 p.m. Eastern, 7:00 Pacific, right here on CNN.
LEMON: Oh, man, unbelievable stuff there.
All right, we're going to change tones a little bit here. If your friends are overweight, can you stay slim? Some say fat chance. That's the conclusion of a study in "The New England Journal of Medicine." Researchers say that, if you have an overweight friend, your risk of being overweight climbs -- get this -- Fredricka, 57 percent.
WHITFIELD: That's a huge number.
LEMON: Uh-huh. If your relationship with an obese friend is especially close, your risk of overweight almost triples.
WHITFIELD: Whoa.
LEMON: Well, I went down to the atrium of the CNN Center here in Atlanta to, excuse the expression, flesh out the story.
(BEGIN VIDEO CLIP)
LEMON: You said you don't believe it?
UNIDENTIFIED FEMALE: No, I don't. I don't.
LEMON: Why? And you said that's a perfect example. Why?
UNIDENTIFIED FEMALE: Yes, because she's thin. And she's my friend, and she eats more than I eat.
LEMON: Is that true?
UNIDENTIFIED FEMALE: Yes.
(LAUGHTER)
UNIDENTIFIED MALE: It's very difficult to be different. It's more easier to be the same. So, I would gravitate to eat like they ate, and I would, you know, kind of -- if they didn't exercise, I wouldn't exercise.
UNIDENTIFIED MALE: I don't believe that your friends determine your path. They don't determine your weight. They don't determine your -- your lifestyle.
(END VIDEO CLIP)
LEMON: Well, no matter what the folks here at the CNN Center in Atlanta say, the researchers are sticking to their guns. They say that, if you have overweight friends, it apparently changes your notion about what constitutes an acceptable weight. There you have it.
WHITFIELD: OK.
Well, stocks, they continue to fall, going flat, not fat at all. How will this market fallout affect your 401(k)s? Gerri Willis straight ahead in the NEWSROOM.
(COMMERCIAL BREAK)
LEMON: Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.
WHITFIELD: And I'm Fredricka Whitfield.
Somebody, pull the rip cord. A week after hitting 14000, the Dow does a nosedive.
LEMON: How low will it go in the last hour of the trading day? It could be the second biggest point drop of the year. We have it all for you right here in the CNN NEWSROOM.
It is safe to call it a wild ride on Wall Street right now. The Dow is down more than 300 points. What should you do about your 401(k)? And that's the question. Let's check in with CNN's personal finance editor, Gerri Willis.
Let's hope we shouldn't panic about this -- Gerri.
GERRI WILLIS, PERSONAL FINANCE EDITOR: Oh, that's absolutely right, Don. You definitely don't want to panic.
Look, if this drop is sustained, it would be one of the biggest point drops of the year for the Dow. But, remember, it was just a week ago today that the Dow Industrials closed above 14,000 for the first, and, I should say, the only time.
Earlier this week, we saw the stock market drop 500 points. So it moves around quite a bit -- Don.
LEMON: OK.
So what does the market drop, Gerri, mean, Gerri, for people who have 401Ks?
That's a question.
WILLIS: Well, look fluctuations in the market shouldn't concern the 401K investors. Keep in mind, your time horizon -- most of us are going to be invested in the market until we retire, and that could be decades for now.
On average, the stocks move higher. Their long-term average gain is about 10 percent each year. Over those long-term horizons, stocks -- they go up, they go down. It would be nearly impossible for you to call the highs and lows. Professionals sure can't do it.
More likely, if you sell now, you'll miss the gain, the recovery, and end up paying more to reinvest in the market.
Here's an example of how damaging moving your money around can be. If you sold your stocks during the long-term capital management crisis of 1998, if you sold them that September, when the Dow was at 7640, you would have missed out on portfolio gains of 20.7 percent by the end of that year.
In four months, the market recovered 21 percent. Now, if you sold your stocks at the bottom of the 1987 crash, when the market was about 1766, you would have missed out on a 22 percent gain.
So you want to -- in this situation -- stay calm.
LEMON: OK, Gerri, so besides staying calm and taking a deep breath, what...
WILLIS: Take that deep breath.
LEMON: Yes, take a deep breath and just kind of calm down. Don't drink any more coffee, because it's just going to get you upset.
So what should people do, seriously, Gerri, going forward from here?
WILLIS: Well, look, you know, economists we talked to said we're in for at least one sharp sell-off a year. It's really typical. Put your money into the market a little bit at a time consistently. That's really the way to earn gains, not gambling on where prices are going to go next.
My best advice, sit tight. Let the bulls and the bears ride it out. You watch from your catbird seat and decades from now, you'll have a nice retirement nest egg.
LEMON: All right, Gerri Willis, thank you very much.
Gerri, stick by. We may need you. If you want to -- if you want to jump in on this, go ahead and do that, Gerri.
Let's bring in Ali Velshi now.
And, Ali, before we bring you in, as well, we want to tell you right there that you see on the lower right side of the screen, that's -- you're looking at the markets. You're looking at the big board there. We're going to keep that up for you at the top of the hour.
What do you say -- Mr. Velshi?
ALI VELSHI, CNN CORRESPONDENT: Listen, there's no reason to sell in a market like this. First of all, we saw this market down 415 points about an hour ago. When, in the last hour, the market starts to go up -- and it's fluctuating -- if it starts to up, it means the professionals are getting in there, thinking that there's a sale on stocks.
And you've seen that fluctuation.
But what's the point in locking in a loss if you sell into this market?
Most people can't do anything about this.
The subprime mess, the mortgage mess, the housing price -- guess what?
That's news when it gets broadcast to people on Wall Street. Anybody who has got a problem with their mortgage or their loan knows that already. It's just trickling up and all of a sudden investors are getting nervous about the future of the economy.
Nothing has changed. You know if your mortgage has gotten more expensive. And as far as your 401K and your investments, anybody who is trading stocks in their 401K had better be doing that with their play money. This is not a market -- that's not what you do with your retirement money.
So what should you do about this, about your 401K?
Nothing for the moment. Pay attention to it. We'll let you know if it gets more serious.
But the folks I've been talking to are saying why would I sell in this market and lock in my losses?
When you see losses like this, there's only two options. Calm down, as Gerri said, and do nothing, or buy stocks.
LEMON: Yes.
VELSHI: Don't be selling into a market like this.
LEMON: Right.
Gerri, you heard Ali the talk about mortgages and homes.
You know, "OPEN HOUSE," that's your thing.
WILLIS: Yes.
LEMON: Do you -- can you weigh in on this for us?
WILLIS: Well, look, I mean what's interesting about what's going on right now is that interest rates are still low compared to historic levels. So if you're in a situation where you have an adjustable rate mortgage and it's resetting, now is the time to think about getting a new mortgage if you can.
Good news on the horizon on that score, as well, because it looks like there may be -- at least this is what the economists are saying -- a rate cut coming this fall. And if that happens, that's going to be good news for the housing market.
That doesn't mean I'm projecting recovery there. The best guesses on that is that recovery is a long way off. But if you are suffering with one of those adjustable rate mortgages right now, you need to think seriously about getting a new mortgage -- Don.
VELSHI: Seriously. Lock it in.
LEMON: Yes.
Our personal finance editor, Gerri Willis, and our guy who knows everything about the markets, Ali Velshi.
Hey, we thank you both for weighing in on this.
And, again, guys, we want to point out that you see it on the screen there, the big board. We're going to keep that big board up for you until the top of the hour.
"THE SITUATION ROOM" can do whatever they want to do with that big board -- keep it or -- or make it go away.
Thanks to both of you.
And for more details on today's sell-off and what's driving the numbers, make sure you check out CNNmoney online. CNN.com, is that correct?
You get more market analysis on that site.
It's CNNmoney.com, is the correct address there.
WHITFIELD: Well, he may have faced troubles in the past, but today this is totally different for Atlanta Falcons quarterback, Michael Vick.
The stakes are much higher and emotions are just as high for Vick's fans and his critics.
Vick just arrived in federal court in Richmond, Virginia to answer felony dog fighting charges -- charges that already have taken a toll. Two criminal defense attorneys joining us with their own play- by-play.
B.J. Bernstein is here in Atlanta and Mickey Sherman in Stamford, Connecticut.
Great to see you both.
B.J. let me begin with you.
While the defense will say I, Michael Vick, you know, really knew nothing about the activity that people were conducting on his property, the burden of proof may be on the prosecution, but the defense really has to try and disprove these allegations because any link to what is the deplorable set of circumstance of this dog fighting, after people have seen the types of charges, the evidence, etc. the defense really has a tough job, don't they?
B.J. BERNSTEIN, CRIMINAL DEFENSE ATTORNEY: Absolutely. Because, you know, there's almost a presumption in any case dealing with animals -- you know, when I've seen cruelty to animals cases -- you know, whenever they come on the news, your phone calls go way up. It's why this story has garnered so much attention, more than just another professional athlete in trouble. It's about animals.
And so you already have people appalled just by hearing the indictment. When they read what he's charged with, the brutality to those animals -- just even saying you own the property and that was going on is one thing. But the indictment says more, which is informants are telling them that Vick is directly involved in the business of dog fighting.
WHITFIELD: Mickey, this is a tough case. We're talking about 66 dogs. And animal advocacy groups are already lining up, saying we've got something to say if, indeed, it comes down to trial.
How in the world, as a defense attorney, do you combat that?
MICKEY SHERMAN, CRIMINAL DEFENSE ATTORNEY: You don't. You've just got to do a kind of an end around it, because it is a football case.
And let me tell you, that's just one animal activist group. They all over the country, all over the world.
You know, we defense lawyers hate to bring up the O.J. Simpson case, because it was kind of the downfall of the criminal justice system in so many people's minds. But compare the scene you see outside that courthouse...
WHITFIELD: Yes.
SHERMAN: ...with that of the O.J. Simpson case -- and O.J. it was alleged he had somebody, taken a human life. There is nothing that compares to the trauma and the horrific outrage of doing damage to a dog, as opposed to taking a human life. And it's evident right there.
WHITFIELD: Yes. And you're not even talking as trial as of yet. We're talking about, you know, first court appearances here.
SHERMAN: These are the people who only made the first trip -- I'm sorry. You're right. The buses, the cavalcades, are going to be there throughout this case.
WHITFIELD: All right, so last hour you talked about a mea culpa, that that would be your recommendation, that his defense attorneys need to just go ahead and say, you know what?
Go ahead and make a plea deal, because this really is a lose-lose situation, especially since, is it not true that the folks who were occupying his household, it's likely they're going to be offered a plea deal, right, to testify against...
SHERMAN: They already have.
WHITFIELD: ...Michael Vick?
SHERMAN: I'll bet you they've already made their deals, basically. And, again, it's not even that they're not -- they're that necessary. It's not like this is a backroom deal where no one is going to know what happened. There's just such a trailer of activity, of statements by so many people.
He owns the property. He owns the property. And he's the only one that has enough money to finance something like this.
WHITFIELD: So, B.J. how does he keep his career?
How does he keep his reputation?
Even if there is a plea deal, even if he does admit to some guilt, etc. In exchange for a deal to escape some sort of jail time, how do you recover from this?
BERNSTEIN: You know, it's going to be difficult because, you know, he doesn't even have the excuse of he was involved in dog fighting because he needed money. You know, he -- you're involved in dog fighting because you enjoy watching this blood sport. And you throw that throw that into, you know, I live here in Atlanta, and folks here were already a little fed up with him. You know, he gave the bird to the fans. There's been a lot of controversy about his attitude here.
And so you add that to this and the question is will he be able to play first in Atlanta. And Atlanta may not want any more to do with him.
And if that's the case, then where would he go next?
He's always going to have this surround him.
And so, unlike Ray Lewis -- remember Ray Lewis here in Atlanta had legal troubles. He entered a plea. He had some suspension issues. And then he was able to go back and play ball.
This one is going to be more difficult, because as Mickey points out, we have a unique reaction to, you know, the humiliation and brutalization of -- of animals.
WHITFIELD: All right, B.J. Bernstein and Mickey Sherman in Connecticut, thanks so much for both of your insights.
Appreciate it.
BERNSTEIN: Thank you.
WHITFIELD: And for a lot of folks, it is hard to imagine dog fights as entertainment. They are brutal and can go on for hours before one dog actually "wins." You might also be amazed at how they are growing in popularity, dog fights in general.
A rare glimpse into an illegal undercover world tonight on "PAULA ZAHN NOW" at 8:00 p.m. Eastern, tonight right here on CNN.
LEMON: We've been following this story for you. It's a wild ride on Wall Street right now. The Dow is down more than 300 points. The closing bell is coming up. We'll continue to follow the markets right here in the CNN NEWSROOM until the top of the hour.
(COMMERCIAL BREAK)
LEMON: Well, all this year we're bringing you stories of people we are calling CNN Heroes. We're also inviting you to tell us about heroes that you know.
Well, today we introduce you to a former gang member who is working to help others build better futures for themselves after gang life.
(BEGIN VIDEO TAPE)
UNIDENTIFIED FEMALE: OK. Look right into the camera.
LUIS ERNESTO ROMERO: I thought I was going to die at the age of 20 because somebody was going to shoot me. I was living as a gang member and I saw the little kids getting into the gangs because they don't have any other opportunities. UNIDENTIFIED MALE (THROUGH TRANSLATOR): When you're on the street, every moment you live, you live as if it were your last, because you never know how that day will end.
ROMERO: Something powerful come up when my daughter was born.
So I started like, like checking, hey, what am I doing?
What am I going to offer to my daughter?
Buenos.
But then I find Homies Unidos in 1997. So I started like educating myself. And now, you know, I help others. We teach them how to empower themselves, not smoke weed, not doing violence, not doing what they do.
In El Salvador, the kids are much discriminated. If he have the tools (ph), if he bow-headed (ph). But when he started looking for a job, they don't give opportunity for him.
We teach them how to do things in other ways. ROMERO: Ji puedo de lion pando no tanucho qui (ph)?
They never thought they were going to have a bakery of their own. Now they have a bakery and they're doing their own business.
UNIDENTIFIED MALE: And we think different. I mean, we don't think going to do violence, doing killings, do other things. Homies is saving a lot of lives.
ROMERO: We come from gangs and now we are part of the solution. So it doesn't matter how much I got to spend, how much time I got to be on it, I need to do it for my kids and for the other kids of San Salvador.
(END VIDEO TAPE)
LEMON: And if you'd like to make a contribution to Luis Ernesto's work or nominate your hero for special recognition later this year, you'll find more information on our Web site. It's at CNN.com/heroes.
WHITFIELD: A wild ride on Wall Street. We know that now. The Dow is down more than -- there you go -- 300 points. The closing bell coming up, in less than 15 minutes.
We'll continue to follow the markets, right here in THE NEWSROOM.
(COMMERCIAL BREAK)
WHITFIELD: It may not seem like it, but it's been three days since the CNN/YouTube debate and Democrats Hillary Clinton and Barack Obama are still sparring over Obama's answer to one question. The Illinois Senator said as president he'd be willing to meet with leaders of Cuba and North Korea.
Clinton called his answer, "irresponsible and naive."
Well, yesterday, Obama used those same words to describe Clinton's Senate vote to authorize the Iraq invasion.
The debate continued on today's "AMERICAN MORNING".
(BEGIN VIDEO CLIP FROM CNN'S "AMERICAN MORNING")
ANN LEWIS, SENIOR CLINTON CAMPAIGN ADVISER: Is that really what we want our new president to do, to use the power and the prestige of the United States in their very first year, to meet with people, again, to meet with those leaders -- think about those pictures for a moment, think about what we know about the presidents and the leaders of those countries.
Would we really want the president of the United States to say, sure, I'm going to meet with you -- no preconditions, no previous diplomatic work.
KIRAN CHETRY, "AMERICAN MORNING" CO-ANCHOR: All right, let me get...
LEWIS: That was the question and that's a very big difference.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
(BEGIN VIDEO CLIP)
ROBERT GIBBS, OBAMA CAMP, COMMUNICATIONS DIRECTOR: There seems to be some sort of fear on Senator Clinton's part that she can't win a public relations battle with the leader of Iran. Barack Obama doesn't fear that. He has the toughness and the strength to walk into that meeting and tell the leadership in Iran that we stand with Israel, that they can't continue to produce nuclear weapons.
(END VIDEO CLIP)
WHITFIELD: And more last words. Obama says the meetings would mark a welcome change from current White house policies.
Clinton says meetings with questionable world leaders could be used for propaganda.
More on that story, straight ahead in THE SITUATION ROOM.
And if you missed it the first time or if you just want to check it out again, here's your chance. The CNN/YouTube debate will re-air this weekend right here on CNN.
Join us Saturday and Sunday nights at 9:00 Eastern to see YouTube contributors pose their questions to the Democratic presidential hopefuls.
And don't forget, the Republican presidential hopefuls get to face the YouTube audience, as well. The next CNN/YouTube debate will be held September 17th in St. Petersburg, Florida.
You can submit a question at YouTube.com/republicandebate. And, of course, you can watch it right here on CNN, September 17th.
LEMON: All right, let's get back now to a developing story we've been following.
We've been talking about Michael Vick.
We're hearing now how Michael Vick and others pleaded in this hearing.
Let's go straight to our Brian Todd, who is outside the courthouse now.
He has the details on the very latest for us.
What do you have -- Brian?
BRIAN TODD, CNN CORRESPONDENT: Don, court just broke up. All four defendants have pleaded not guilty to the charge -- the single charge of conspiracy. That charge also involves dog fighting, one single charge. Each defendant pleaded not guilty.
Michael Vick was the last one up to be read his charges. He pleaded not guilty. They all requested trial by jury.
What is significant here also is the trial date. Under federal guidelines, a trial date has to be set 70 days from today. But you can request a delay. You can request -- you can try to put that off somehow.
Michael Vick's attorneys, once the pleas came through, Michael Vick's attorneys stood up and asked the judge to postpone the case -- to postpone the start of the trial.
The attorney, Lawrence Woodward, cited the complexity of the case, the forensic evidence that needs to be collected, the fact that some of the activity that is charged in this case happened outside this district.
And the judge granted that request. The trial date now is set for November 26th, 9:30 a.m. November 26th.
Very significant here. I talked to a criminal defense attorney earlier today who said if these defendants try to move the date of the trial past the 70 day mark from today, try to delay it, it could be a sign -- it could be a sign that there will be some negotiations.
This criminal defense attorney has tried several cases in this district. He has tried several cases in front of this judge. He says that that is a real possibility from here -- Don.
LEMON: All right, Brian Todd, thank you very much for that report.
We're going to continue to follow this.
We want to tell you, also, as Brian said, it's going to be November 26th at 9:30 a.m.
We're expecting Michael Vick to leave that courtroom at any moment.
We do have pictures outside of the courtroom. I'm not sure if we can -- if we can get them up. But you can see, that's the door he's expand to leave. That's the door he entered in.
Michael Vick and three others pleading not guilty to all of those charges involving dog fighting.
And the clock you're looking at right there on the screen has nothing to do with Michael Vick. It has everything to do with Wall Street, where it's been a wild ride today.
The Dow is down -- look at that -- more than 300 points. Well, it was 400. Yes.
We'll be back with a check of the markets.
The closing bell is coming up in just a little bit.
We'll check all of it for you, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
WHITFIELD: Flying drunk -- and we're not talking about airline pilots, but astronauts. "Aviation Week" is reporting the findings of a panel investigating astronaut health issues. The panel reports that on at least two occasions, astronauts were allowed to fly despite warnings that they were so drunk they posed a flight risk.
The panel also reports heavy alcohol use by astronauts within 12 hours before flight when NASA rules forbid it.
NASA says it has received the reports and is evaluating them. NASA has scheduled a news conference for 1:00 p.m. Tomorrow to talk about that very report.
Well, the closing bell is about to ring after a pretty rough day on Wall Street.
LEMON: Oh, to say the least.
Susan Lisovicz is standing by with a final look, a wrap-up on this trading day.
Pretty crazy -- Susan.
(STOCK MARKET REPORT)
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