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Lou Dobbs Tonight
Housing Crisis Threatens Middle Class; Iraq on the Brink
Aired August 23, 2007 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LISA SYLVESTER, CNN ANCHOR: Tonight: The Bush administration's plan for a virtual fence along our wide-open borders suffers a major setback. Is the project on the brink of collapse? We will have a special report.
Also, the housing crisis threatens what's left of our middle class. It's already reeling from stagnant wages and the rising cost of living. We will have that story.
And deported illegal alien Elvira Arellano complains to the Mexican congress about her treatment in the United States. Arellano says the United States, not Mexico, is to blame for our illegal immigration crisis.
All that, all the day's news, and much more straight ahead tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Thursday, August 23.
Live from New York, sitting in for Lou Dobbs, Lisa Sylvester.
SYLVESTER: Good evening, everybody.
U.S. intelligence agencies tonight are warning that Iraq's government will become even more precarious in the next few months. A new National Intelligence Estimate says Prime Minister al-Maliki is facing rising criticism from his own coalition partners. Independent analysts say the failure of al-Maliki's government to introduce reforms is jeopardizing the entire U.S. strategy in Iraq.
At the same time, another draft intelligence estimate is warning of the increasing threat from the Iranian government of President Ahmadinejad.
First, we turn to Jamie McIntyre, who reports from Washington on the new assessment of the war in Iraq -- Jamie.
JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Lisa, this national intelligence assessment, written by both the CIA and the DIA, is a clear-eyed assessment of what's going wrong in Iraq. And the answer, is a lot is going wrong.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): The brightest spot in the otherwise bleak NIE is its conclusion that there has been measurable but uneven improvement in Iraq's security situation since the last report issued in January before the surge. But it's hardly a pretty picture.
Among the key judgments, violence remains high. Sectarian groups are unreconciled. Al Qaeda is still able to conduct high-profile attacks. Iraq's political leaders are unable to govern effectively, and Iraqi security forces have not improved enough to take over.
But the Bush administration is pointing to another hopeful trend, local sheiks making their own peace and joining the fight against al Qaeda, even as the national government of Nouri al-Maliki founders.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And there is a bottom-up reconciliation taking place. It's noticeable and tangible and real, where people at the grassroots level are sick and tired of the violence, sick and tired of the radicalism, and they want -- and they want a better life.
MCINTYRE: But the intelligence assessment warms those bottom-up agreements come with a big risk, setting the stage for increased factional violence, such as what's happened in the south where British troops have pulled back.
BRIG. GEN. RICHARD SHERLOCK, JOINT CHIEFS DEPUTY DIRECTOR: The key to that is tying that bottom-up reconciliation to the central government's efforts, so that they don't become splintered again.
MCINTYRE: The report notes another big change, the perception among Iraqis that the U.S. is leaving, and that could push groups to reconcile, but also perhaps to get ready for all-out civil war.
MICHAEL O'HANLON, SENIOR FELLOW IN FOREIGN POLICY STUDIES, BROOKINGS INSTITUTION: To the extent the Iraqis believe we are headed out, they will be more likely to prepare for their struggles with each other and be less likely to work patiently to build the fragile institutions of government.
MCINTYRE: The intelligence community's most controversial opinion, pulling troops back now will make things worse, concluding, "Changing the mission from a counterinsurgency to combat support would erode security gains achieved thus far."
(END VIDEOTAPE)
MCINTYRE: Looking ahead, the report concludes that violence will rise and that the Iraqi government will continue to struggle. Political reform for now, it concludes, has virtually stalled -- Lisa.
SYLVESTER: Jamie, there has been a lot of talk of replacing al- Maliki, at least from Democrats. Now, are their viable candidates to replace him? Or would that make the situation that much worse?
MCINTYRE: Well, there are no obvious viable candidates who are going to be able to do a better job of pulling Iraq's coalitions together. That's one of the big problems.
Take the Sunni insurgency, for example, the Sunni factions, I should say in Iraq. The NIE reports notes that there's nobody, no real leader, that the al-Maliki government can deal with in trying to bring about political reform.
SYLVESTER: Jamie McIntyre from Washington, thank you very much for that report.
Our intelligence agencies are also preparing a new assessment of Iran's rising threat to U.S. interests in Iraq and other parts of the world. A draft version of that assessment says Iran will continue efforts to develop nuclear weapons. Sources say intelligence analysts believe Iran will remain unhelpful, as they put it.
Barbara Starr reports from the Pentagon.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): CNN has learned a classified National Intelligence Estimate on how soon Iran could have a nuclear weapon may be sent to Congress as early as next week. The report will provide the latest intelligence on this uranium-enrichment plant near Natanz, as well as other Iranian facilities, critical indicators for the U.S.
MAJOR GENERAL DONALD SHEPPERD (RET.), CNN MILITARY ANALYST: The critical intelligence is one that you're guessing at, and that is when have they really perfected nuclear enrichment?
STARR: Earlier this year, a public prediction.
MIKE MCCONNELL, DIRECTOR OF NATIONAL INTELLIGENCE: The earliest they could produce a nuclear weapon would be early next decade, more likely mid next decade.
STARR: One intelligence analyst told CNN that means it's possible Iran might have a rudimentary nuclear device in as soon as three to four years.
A crucial problem, the U.S. intelligence on Iran's nuclear efforts is uncertain. There is data from satellites but by all accounts, the U.S. has no spies inside Iran's nuclear program.
SHEPPERD: I know we're trying but I would be very surprised if we have them in positions that would give us adequate intelligence.
STARR: Intelligence officials say, there is still a second report coming on Iran's economic and political outlook. The overall conclusion, despite financial sanctions, a weak economy and some internal dissent, there is no indication the Iranian regime is about to fall from power any time soon.
(END VIDEOTAPE)
STARR: Earlier this year, "The Washington Post" reported that a former top Iranian defense official had been kidnapped in Turkey and was now cooperating with U.S. and Israeli intelligence, raising new questions about whether that man has new information to offer about Iran's weapons program. The Bush administration, Lisa, isn't commenting. SYLVESTER: Barbara Starr, thank you very much for that report from the Pentagon.
One of the most influential Republicans on Capitol Hill, Senator John Warner, today broke decisively from President Bush on the issue of Iraq. Senator Warner said the president should withdraw some of our troops from Iraq in coming months. The senator said that's the only way to convince the Iraqi government to introduce political reform.
Dana Bash reforms from Capitol Hill.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice-over): It is a seismic shift in the Iraq political debate. Influential Republican Senator John Warner now wants the president to start bringing troops home by Christmas.
SEN. JOHN WARNER (R), VIRGINIA: We simply cannot as a nation stand and put our troops at continuous risk of loss of life and limb without beginning to take some decisive action, which will get everybody's attention.
BASH: Warner is just back from a four-day trip to Iraq, deeply disillusioned with its fledgling government.
WARNER: The Iraqi government under the leadership of Prime Minister Maliki have let our troops down.
BASH: Now, in attempt to convince Iraqis the U.S. will not stay forever, Warner wants the president to announce September 15 that he's going to take the first step in troop withdrawal.
WARNER: Certainly, in 160,000-plus, say 5,000 could begin to redeploy and be home to their families and loved ones no later than Christmas of this year.
BASH: Warner calls this a respectful suggestion to the president, one he first delivered personally to senior White House officials. And, though he was careful to say he does not advocate a deadline for troop withdrawal, pushing for any redeployment puts Warner more in line with Democrats than most Republicans.
The White House was careful to express respect for the former Senate Armed Services chairman, but said Mr. Bush won't announce any troop withdrawal before the Pentagon makes its recommendations, due September 15.
GORDON JOHNDROE, NATIONAL SECURITY SPOKESMAN: The most important thing for to us do is wait for General Petraeus and Ambassador Crocker to come back, come back to the United States, report to the president, report to the Congress, about what they see as the way ahead.
(END VIDEOTAPE) BASH: Now, U.S. military commanders have already suggested some troops involved in the surge should start coming home by the spring. So, Warner's call may not be that significant militarily but it certainly is significant politically because it gives cover to Republicans who are hearing from more wary constituents back home -- Lisa.
SYLVESTER: And it certainly sends a message. Dana, thank you very much for that report.
In Iraq, insurgents killed two more of our troops in separate attacks near Baghdad; 66 of our troops have been killed so far this month; 3,724 of our troops have been killed since the war began; 27,506 troops have been wounded, 12,340 of them seriously.
Arm Secretary Pete Geren today ruled out longer tours of duty for soldiers deployed on combat missions overseas. Geren told the Associated Press he sees no possibility of extending the tours of duty from their current length of 15 months. Some military analysts said an increase to 18 months would be required to sustain the surge in Iraq beyond next spring.
Geren said longer tours would put additional stress on soldiers and their families.
Still to come: Mexican lawmakers help a deported illegal alien publicly criticize our immigration policies.
Casey Wian has the story -- Casey.
CASEY WIAN, CNN CORRESPONDENT: That's right, Lisa.
And strangely enough, border security activists agree with Elvira Arellano's assessment of who is to blame for her repeated illegal entry into the United States-- Lisa.
SYLVESTER: Thanks, Casey. We will check back with you in just a moment.
Also, new evidence that a government project to build a virtual fence along our borders is in trouble.
The national housing crisis threatens to destroy what remains of our beleaguered middle class.
And more people are killed by the worst floods in nearly a century in the Midwest. We will have a live report from one of the worst-affected areas.
(COMMERCIAL BREAK)
SYLVESTER: Illegal alien Elvira Arellano is complaining to the Mexican congress about her deportation from the United States. She says the U.S. is to blame for illegal immigration.
Casey Wian reports on this incredible case of Mexican chutzpah. (BEGIN VIDEOTAPE)
WIAN: Former fugitive illegal alien Elvira Arellano blames the United States for failing to secure its border. Three days after being deported, she spoke to Mexican lawmakers.
ELVIRA ARELLANO, DEPORTEE (through translator): The United States is the one who broke the law first by letting people cross over without documents, by letting people pay taxes.
UNIDENTIFIED PROTESTERS: Deportation!
WIAN: Border security activists rallying in Los Angeles to support Arellano's deportation say she has a point.
JIM GILCHRIST, FOUNDER, MINUTEMAN PROJECT: I thank Elvira Arellano for making that statement, because she's right. We are a nation that has laws, but has chosen at certain levels of government not to enforce those laws.
WIAN: Arellano was caught crossing the border illegally in 1997, deported, then, according to U.S. authorities, committed a felony punishable by 20 years in prison when she crossed the border again. After 9/11, Arellano was arrested working at Chicago's O'Hare Airport and convicted of document fraud. She was ordered deported but became a fugitive, claiming sanctuary for a year in a Chicago church.
Immigration and Customs Enforcement arrested and deported Arellano after she travelled to Los Angeles. The next day she was joined in Mexico by her young U.S. citizen son, Saul. Reporters continue to use the 8-year-old boy, now back in the States, to plead his mother's case and to demand illegal alien amnesty.
ANGELICA SALAS, CHIRLA: I want to talk about your laws, your immigration laws. Your immigration laws are inhumane. Your immigration laws are mean-spirited, and they are punitive. How can we continue to support the laws that actually tear families apart, that tear apart a mother from a son?
WIAN: While Arellano received a hero's welcome in Mexico, U.S. border security activists bid her good riddance.
ROBIN HVIDSTON, MINUTEMAN PROJECT: We support ICE and stepping in and doing something, apprehending a criminal and returning her to her home country. She only went home. And we hope she does well there and that she will remain there until she can enter this country legally.
WIAN: ICE says that won't happen without permission from the attorney general or secretary of homeland security.
(END VIDEOTAPE)
WIAN: A Mexican senate committee this week approved a resolution asking that President Felipe Calderon send a diplomatic note to the United States protesting Elvira Arellano's deportation. The committee has also set aside money for a college scholarship for her son -- Lisa.
SYLVESTER: Well, Casey, it sounds like Elvira Arellano won't mind then if the United States starts enforcing some of its laws. That is essentially what the argument it sounds like that she's making.
WIAN: That is the argument she's making. I don't think it's the intent of the argument she's making, though, Lisa.
SYLVESTER: All right, Casey, thank you very much for that report.
WIAN: OK.
SYLVESTER: And that brings us to the subject of tonight's poll: Are you outraged that the Mexican senate supports Elvira Arellano's claim that the United States is to blame for her deportation, yes or no? Cast your vote at LouDobbs.com. We will bring you the results a little later in the broadcast.
New evidence tonight that the federal government is falling behind on its latest efforts to secure our southern border. High-tech virtual fencing was to be deployed more than two months ago. But it has run into significant delays.
As Bill Tucker reports, there are also concerns the system will be far more expensive than first estimated.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): There are 6,000 miles of border between the United States, Canada and Mexico. The Department of Homeland Security is falling behind on securing it. They are behind in several ways.
Boeing holds the contract for developing the technology known as SBInet, or the virtual fence, which is more than two months past a deadline of June 13 for turning over the technology to the government, and the project is costing more than originally estimated.
REP. DUNCAN HUNTER (R-CA), PRESIDENTIAL CANDIDATE: I told them that the high-tech systems -- because it's new ground; they have not done these border systems before -- would be overrun, there would be delays, and we would end up with a problem like this.
TUCKER: A spokesman for Customs and Border Protection responds to the news of the delays by saying -- quote -- "Customs and Border Protection is committed to giving the agent the tools they need. We are working with a sense of urgency to get this technology operating the way it needs to be to help the agents do their job to secure the border."
Critics, though, are highly cynical that the Department of Homeland Security has any intention of securing the border.
PETER GADIEL, 9/11 FAMILIES FOR A SECURE AMERICA: Instead of using reliable low-tech technology, it's using the highest, most complex technology that's available, and nobody should be surprised that it doesn't work, because it's just -- it's not designed to work. And people have to understand that that's the purpose here. It is designed to fail.
TUCKER: And in the process of attempting to develop the technology, the physical fence is being neglected. So far only 17.9 miles of fence out of 854 have been built.
(END VIDEOTAPE)
TUCKER: And the government says that by the end of next year, there will be a cumulative 370 miles of fencing constructed. Now if the Department of Homeland Security keeps that commitment, it will still be more than 50 miles short of what is mandated by law under that deadline.
And I should add, Lisa, that we did call Boeing today and they declined comment on the delays, deferring to the Department of Homeland Security, who had asked them to let them serve as the comment on this case.
SYLVESTER: Bill, all I know from following this story is that these contractors have made a lot of money on this contract...
TUCKER: Yes.
SYLVESTER: ... and on similar contracts for border security, private companies.
TUCKER: They have made a lot of money, and everybody's quite open about the fact that they don't know when it's going to be effectively deployed, because, as they point out over and over again, none of the technology is new. It's just never been used this way before.
SYLVESTER: And, meanwhile, we keep having these cost overruns.
TUCKER: Exactly.
SYLVESTER: All right. Thanks, Bill, for your report.
Today, a Texas judge again sentenced the trucker in the nation's deadliest illegal alien smuggling attempt. Tyrone Williams is already serving a life sentence for killing 19 illegal aliens while driving a tractor-trailer through Texas in hot weather in May of 2003.
Prosecutors said Williams never turned on the air conditioning in the air-tight cargo hold, even as the illegal aliens kicked walls, broke out taillights, and screamed for help as the temperatures inside the truck skyrocketed. Today, Williams was sentenced to 34 more years in prison on multiple counts of conspiracy, harboring and transporting illegal aliens.
Time now for some of your thoughts.
Terri in Illinois writes in: "Why doesn't Elvira Arellano and all the other illegals who are fighting for their so-called rights in the United States put their efforts together to make their country, Mexico, a better place to live?"
Harold in Alaska: "It appears that the administration's answer to consumer safety is caveat emptor, let the buyer beware."
Bobbi in Illinois: "Not only should China face severe penalties for unsafe toys, tires, food, et cetera; the U.S. companies involved should also face severe penalties."
And Ina in Texas: "China should be fined for the shoddy, dangerous merchandise, and so should the American importers."
We will have more of your e-mails a little later in the broadcast.
Coming up: More than two dozen people have died and many have been left homeless after a week of flooding in the Midwest. We will have a live report from one of the hardest-hit areas.
The mortgage market collapse, we will tell you how it will affect America's already embattled middle class.
And it's open season on Senator Hillary Clinton. Another of her Democratic opponents takes a swipe at the Clinton White House days. We will have the details.
Stay with us.
(COMMERCIAL BREAK)
SYLVESTER: The mortgage market collapse comes at a precarious time for America's embattled middle class. Their wages have been stagnant for years and their costs are rising.
As Christine Romans reports, the housing market is at the center of this crisis. And for many Americans, their largest asset is, of course, their home.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Think the subprime mortgage crisis doesn't matter to you? Think again. Your biggest asset, your home, is harder to sell. Even people with good credit pay more for a mortgage and may have difficulty refinancing or getting a home equity loan.
At the same time, lenders are shedding Main Street mortgage jobs by the thousands, every day, it seems, a new layoff announcement.
JOHN CHALLENGER, CEO, CHALLENGER GRAY & CHRISTMAS INC.: We are inevitably going to see these job cuts that right now are hitting mortgage financing move into areas like realtors, home construction, home retail, big developers, people who make building products. So, it's going to spread. We are just in the very first two weeks right now, and that could cause job loss for many people.
ROMANS: It all comes at a tough time for the middle class.
JOHN IRONS, ECONOMIC POLICY INSTITUTE: They just haven't seen the wage gains that they have been expecting. They haven't seen income gains that they have been expecting. At the same time they are seeing higher costs for energy. They are seeing higher costs for health care and higher costs potentially now for their mortgage.
ROMANS: Monthly mortgage payments will double for 1.4 million homeowners over the next five years, with 1.1 million foreclosures in the next six years. It's already begun. July foreclosures shot up 93 percent from a year ago, painful for millions, yes, but eventually it means a more rational housing market after years of runaway home prices.
MARK FLEMING, FIRST AMERICAN CORELOGIC: There are many people who have been priced out of the housing market, particularly first homebuyers in recent years, by the great run-up in house price appreciation.
ROMANS: Fleming sees a potential opportunity for them to finally afford a house.
(END VIDEOTAPE)
ROMANS: But the CEO of Countrywide Financial today predicted a recession because of the housing meltdown. And what started as a problem for people who took loans they were never qualified for and the Wall Street pros who made a fortune from it, it could end up hurting everyone.
SYLVESTER: I know a lot of people who were counting on taking out home equity loans, for instance, to help pay for college or for other expenses. They now don't have that as an option, because it's a lot harder to get a home equity loan, for instance, to finance a child's education.
ROMANS: They're tightening up credit card lending as well. And some of the people we talked to today said more of the middle-class families than you would think are actually using credit cards to get over the hump, which, you know, is just -- it's dangerous. It's a vicious, vicious cycle. Everything is going up, and there's just not a lot of exits.
SYLVESTER: All right. Thank you very much, Christine, for that report.
Coming up: California may change its election rules, and that could shake up the next presidential election. We will have a live report.
Being the front-runner has its costs, Senator Hillary Clinton now the target of attacks from her Democratic opponents. We will have that story.
And more than two-dozen people died as floods ravage the Midwest. We will a live report from hard-hit Findlay, Ohio.
Stay with us.
(COMMERCIAL BREAK)
SYLVESTER: The worst floods in nearly a century are keeping hundreds of Midwest residents from their homes today. At least 26 people have died from the flooding over the past five days. In hard- hit Findlay, Ohio, the waters have receded, and some residents hope they will return home soon.
WTOL's Brad Harvey is in Findlay. And he joins me now with the very latest -- Brad.
BRAD HARVEY, WTOL REPORTER: You know, I wish I could tell you that the situation is a good one here. It's certainly not for the people of Findlay, but it's considerably better than it was 24 hours ago.
On the spot where I'm standing, the water last night was literally up to my neck. As you can see, it has receded. The Blanchard River, which is what has actually crested here, is a couple of blocks behind me. It is back within its banks, but now all of these business owners up and down Main Street are beginning to go back inside their businesses to find out what kind of damage they have.
You can hear generators running behind me. That's what is pumping the water out of the lower levels of these businesses. They're going inside. All they are finding is just debris, and they're pulling it out onto the curb. It is a very poignant situation.
But there is hope. We did have a visit today from Michael Chertoff, the director of homeland security. Also, people from the Emergency Management Agency were here as well, the federal officials saying that it's a pretty good bet, given the scope of the damage here, that some of these folks will be able to qualify for at least some kind of federal assistance, and maybe some of that could come pretty immediately, as early as this weekend -- Lisa.
SYLVESTER: I'm guessing a lot of those residents probably didn't have flood insurance.
HARVEY: No. And in a situation like this -- and I've covered a lot of flooding events across both Northwestern Ohio and Northeastern Ohio. In a lot of cases, that insurance does not even cover a lot of the situations where you have water come up. And then it begins to back up backwards into the basements. And that's certainly the situation with a lot of these folks.
So, as you can imagine, they're going to need that federal assistance hugely.
SYLVESTER: It's a heartbreaking situation.
Brad, thank you very much for that report. Teams from the Federal Emergency Management Agency are also in Southeastern Minnesota today to assess flood damage there. Governor Tim Pawlenty wants President Bush to quickly declare parts of that state a disaster area. Many residents have been left homeless by the rain, flooding and mudslides.
Keith Oppenheim reports on one Minnesota family that was lucky to escape with their lives -- Keith.
KEITH OPPENHEIM, CNN CORRESPONDENT: Lisa, I'm standing on the hillside where a whole lot of rain came down, and along with it a lot of mud -- an avalanche of mud.
Take a look at this house right next to me. This is the home of Sharon and Lynn Partington. It was knocked off its foundation by that mud a good 150 feet. Sharon was inside, along with her grandson. We interviewed her earlier and she gave us a sense of how she and her family were caught by surprise.
(BEGIN VIDEO CLIP)
SHARON PARTINGTON, LOST HOME IN MUDSLIDE: We had absolutely no warning. The water was not rising. We're, I don't know, 50 feet above the highway and above the river here. And we were in our home. It had been raining and we knew the ground was saturated. We had had mudslides in the past -- small. I mean nothing big. And our property has always been able to take it.
But there was no warning for this except that our neighbor called and said they had a slide that was worse than the past, that hit the back of their house. And so that gave us an idea that things were bad. But we never dreamt it was anything like this.
(END VIDEO CLIP)
OPPENHEIM: Back now with a view of the Mississippi River. This is the view that the Partingtons had. It's why they lived in this really picturesque spot. But whether they're going to be able to live here anymore is really a question.
First of all, I'll mention that Lynn Partington, after he heard what was going on, he went into the home and he rescued his wife and his grandson, got them out. So they survived. The good news.
The bad news is they have lost just about everything that they have and they don't know if anything will help them recover because they are told that their insurance policy does not cover mudslides. They may be reliant on aid from either the state or the federal government -- Lisa.
SYLVESTER: Keith Oppenheim reporting.
And it's not only the flooding that's causing misery across the country. Heat -- high heat in the Midwest and South is blamed for at least 50 deaths. Temperatures today were in the high 90s and more than 100 through much of the nation's heartland. And in California, firefighters are making progress against a massive wildfire in the Los Padres National Forest. Officials say increased humidity is slowing the blaze. The fire has consumed more than 225,000 acres.
And Hurricane Dean has lost even more power. The storm that caused considerable damage, but no deaths, in Mexico has been downgraded to a tropical depression. Mexican president Felipe Calderon today toured the damage in Veracruz and other towns in Central America -- in Central Mexico -- that were hit by the storm.
A different kind of storm -- a political storm -- is brewing as the presidential candidates are sharpening their campaign rhetoric. With just over four months to go until the first caucuses and primaries, former Senator John Edwards is slamming the Democratic frontrunner.
John King reports on the escalating attacks.
(BEGIN VIDEOTAPE)
JOHN KING, CHIEF NATIONAL CORRESPONDENT (voice over): He didn't name names, but the target was more than obvious.
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: The American people deserve to know that their presidency is not for sale. The Lincoln Bedroom is not for rent. And lobbyists' money can no longer influence policy in the House or the Senate.
KING: It was a shot at her and her husband, Senator Edwards trying to shake up the Democratic race by reminding voters the Clinton days weren't all worth celebrating.
EDWARDS: The problem with nostalgia is what we tend to do is you only remember what you like.
And you -- right?
And you forget the parts that you didn't like. KING: Not the first time Edwards has called on Senator Clinton to reject contributions from lobbyists. Not the first time he's labeled her a Washington insider. But the script he followed carefully this time was more pointed and more personal. EDWARDS: It's caution versus courage, old versus new, calculation versus principle. (APPLAUSE) KING: Senator Clinton was briefed on the Edwards attacks before this health care speech in New Hampshire, but following a frontrunner's playbook, decided against personally responding. SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: During the eight years as first lady... PETER HART, DEMOCRATIC STRATEGIST: She has an exceptionally high rating with Democrats, probably better than 75 percent positive.
KING: Edwards was the Democrats' vice presidential nominee in 2004. But he trails Senators Clinton and Barack Obama in campaign 2008 polls and fundraising, with the first contest now just a little more than four months off. HART: Senator Edwards has an extremely difficult task because he's running in third place. He has to find a way to move up to second place. That means displacing either Obama or Clinton. A tough task. (END VIDEO TAPE)
KING: Now while Senator Clinton did not respond to Senator Edwards, her campaign, Lisa, did return fire, saying Hillary Clinton has been fighting for America's families for some 35 years and that "angry attacks won't help John Edwards" -- Lisa.
SYLVESTER: John, Edwards is essentially the third guy in this race.
I mean how does he really get up front?
How does he somehow surge ahead and move ahead over Obama and Clinton?
KING: Well, the best way to do it would be to win the Iowa caucuses and surprise people. And that is his strategy on the ground. But it's very hard to raise money when you're month after month after month in third place. So he's trying to shake things up.
And both Edwards and Barack Obama are now going at what they view as Hillary Clinton's big vulnerability, saying Democrats might love her, but they don't think she can win in November. We'll see if that catches hold among Democrats.
SYLVESTER: OK, John King, thanks for that report.
We appreciate it.
Meanwhile, get ready for a possible different set of rules for the actual presidential election. California is considering changing how it awards votes in the Electoral College -- the one that elects the president.
As Bill Schneider reports, that could shake up the entire White House campaign.
(BEGIN VIDEO TAPE)
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): An obscure California ballot measure could doom Democrats' chances of winning the White House. Right now, the presidential candidate who carries California wins all of the state's 55 electoral votes. In the last four presidential elections, that's been the Democrat.
A group of California Republicans is promoting a ballot measure that would divide the state into 53 Congressional districts. Presidential candidates would get one electoral vote for each district they carry, plus two more electoral votes for carrying the state.
In 2004, John Kerry won 31 California districts and George W. Bush carried 22. Kerry got all of California's 55 electoral votes. If the proposed new measure had been in effect, Bush would have gotten 22 electoral votes -- more than the entire state of Ohio.
Dividing the state's electoral votes sounds fairer and supporters say it would force the candidates to campaign in California.
A field poll shows California voters inclined to pass the measure. California Democrats are divided. But first, the measure has to qualify for the ballot. That may not be so hard. There are no contribution limits for ballot measures in California.
DARRY SRAGOW, DEMOCRATIC STRATEGIST: And it takes about a million dollars to gather the signatures.
SCHNEIDER: Can Democrats rally their voters against it?
ALLEN HOFFENBLUM, REPUBLICAN STRATEGIST: The Democrats will say it's a power grab. I think this will be viewed as a political power grab and it won't work.
SCHNEIDER: If the California split gets on the state primary ballot in June, expect an intense campaign, with money pouring in from all over the country.
HOFFENBLUM: It would be an interesting campaign, I can assure you.
SCHNEIDER: Because nothing less than the entire presidential election would be at stake.
Bill Schneider, CNN, Washington.
(END VIDEOTAPE)
SYLVESTER: And legislatures in several other states have passed law that could change the presidential election. The measures call for abolishing the Electoral College and instead awarding the presidency to the winner of the national popular vote.
Still to come, a bleak new assessment of the progress of the war in Iraq.
Is it too late to achieve any success in Iraq?
General David Grange will join us in a moment.
And a provocative and disturbing new book that declares America is bringing down the whole of Western civilization. The author, Diana West, is my guest, coming up.
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SYLVESTER: A new National Intelligence Estimate says Iraq is in chaos, with little prospect for short-term improvement. The report says many Iraqis believe the United States is preparing to leave Iraq and that's raising fears of an all out civil war.
Joining me is General David Grange. He's one of our most distinguished former commanders.
Let me just start, General, civilian casualties are high, sectarian groups are not getting along, the political situation is very shaky.
What does this say about the progress in Iraq?
BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Well, it is -- it's a bleak report, there's no doubt about it. I do believe there is some progress, especially on the military side, though that's only one part of the whole process. The economic, the social, the political is very much key to the success.
But, you know, it's -- of all of the Iraqi people, what they hear on the news and these reports one after another -- I mean if I was an Iraqi, I'd feel pretty bad, too.
I'm not sure it's all that bad, though.
SYLVESTER: But at some point we have to face the reality. I mean we had a report on earlier this week from one of our reporters in Iraq, Michael Ware, who said that essentially Iraq is a failing state.
I know it sounds like you're a glass is half full kind of a guy, but do you agree that it's a failing state or are we headed that way?
GRANGE: Well, yes, you can look half full or half empty. But, you know, a failed state, it's interesting, there's many definitions of that. It usually means that a political leadership, the government of a country cannot control its own territory. Probably true for Iraq, no doubt about it.
I think the U.S. augmentation there and support in Iraq changes it a little bit.
But other failed states are Haiti, Pakistan, Sudan, North Korea, Iraq. The "Foreign Policy" magazine -- many list many failed states.
And so Iraq is in that category, there's no doubt about it. But just, you know, there's several definitions of that.
SYLVESTER: You know, though, it sounds like expectations are really being lowered. General David Petraeus and U.S. Ambassador Ryan Crocker issued a joint statement saying, and I'm going to quote here: "We are now engaged in pursuing less lofty and ambitious goals. That was the case at the outset."
What is your reaction to this?
GRANGE: It's probably a good decision. I think the initial goals were too lofty.
At that time did I?
I wasn't sure. But I do now, and I think most people do. And so they're trying to scope them down somewhat, make them more realistic, establish goals that will provide at least an acceptable level of success so the United States can depart.
SYLVESTER: But let me ask just point blank -- is it possible to achieve a democracy?
Given all of the conditions, given all of the concerns, the sectarian violence, the democracy that the United States initially envisioned, is that still a possibility or a reality?
GRANGE: Well, I don't think so. Not -- not the way we envisioned it, not the way we look at democracy. No, I don't think so.
SYLVESTER: All right.
I want to turn to another topic that's -- it's actually a related topic.
President Bush this week defended his conduct of the war in Iraq, essentially drawing a parallel to Vietnam.
I know that you served in Vietnam. I want to get your thoughts on what you -- we're going to listen to a sound bite first. But then I want to get your thoughts on what you thought about his comments.
(BEGIN VIDEO CLIP)
GEORGE BUSH, PRESIDENT OF THE UNITED STATES: One unmistakable legacy of Vietnam is that the price of America's withdrawal was paid by millions of innocent citizens whose agonies would add to our vocabulary new terms like "boat people," "reeducation camps" and "killing fields."
(END VIDEO CLIP)
SYLVESTER: You know, David Grange, that the president has been really reluctant to even draw any kind of comparison up to this point between Iraq and Vietnam.
Were you surprised by those comments?
GRANGE: I was surprised by the use of Vietnam because it's kind of taboo. And I don't know if he -- I didn't hear the rest of his talk.
Yes, I would be concerned about the Iraqi casualties if we departed. There's no doubt in my mind there would be many.
But I would also, if I was President Bush, I would state that what about all the G.I.s that gave their lives?
What about the stature of the United States of America globally if this mission fails, and other chaos that will start in the region and how it would actually help terrorism, which I believe it would?
I would add a bit to those comments on Vietnam. SYLVESTER: Well, let me also turn to Iran.
I know that you are concerned about Iran's meddling in Iraq. And, also, there was the new NIE report that came out on Iran. At least we're getting some -- some tidbits from the classified version of that, which essentially says that Iran is trying to build up and ramp up its nuclear program.
GRANGE: Well, Iran, it's interesting, because our foundation just completed today another conference on what to do about Iran.
What's our strategy?
What are we going to do?
You know, it's not just -- first of all, what is the United States going to do about it?
It should be what's the world going to do about it, Europeans, Russians, others?
It's a shame a lot of it falls onto us, but it will. And it's not just a counter-proliferation of the nuclear weaponry. It's also their support of terrorism worldwide and it's their support of the insurgency in Iraq.
I mean if 60 something percent of the G.I.s die from improvised devices, and of those 60 something percent, 30 percent die from EFPs, improvised -- the formed devices that are supported by Iran, we should be concerned about that and do something about it.
So I believe you will see an increase in what the dialogue -- even if it's behind closed doors and drawing some red lines and saying you cannot continue to do this. So you're looking at diplomatic, informational, military and economic actions that may come about. And I hope they're being planned for right now.
We sure recommended some in our conference, because it cannot stay the same. It can't continue like it is right now. Time is running out.
SYLVESTER: And we certainly hope that the policymakers are, indeed, listening. General David Grange, as always, a pleasure.
Thank you very much for your time.
GRANGE: My pleasure.
SYLVESTER: A reminder now to vote in tonight's poll -- are you outraged that the Mexican Senate supports Elvira Arellano's claim that the United States is to blame for her deportation, yes or no?
Cast your vote at loudobbs.com.
We'll bring you the results in just a few minutes.
Still to come, the war against terror and why we may not be winning the battle against radical Islamist terrorists.
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SYLVESTER: President Bush says the battle against Islamic extremists will take a long time.
My next guest says that is, in part, because of the American people.
In her new book "Death of the Grown-Up: How America's Arrested Development Is Bringing Down Western Civilization," Diana West claims that the baby boomer generation is too spoiled and self-absorbed to understand America's many challenges, including the radical Islamist terror threat.
And she joins me now.
This is a fascinating read, I mean on so many different levels. But I want to first start off that there -- you open it up and you talk about your family situation, how you spent a year in Ireland.
DIANA WEST, AUTHOR, "THE DEATH OF THE GROWN-UP," "THE WASHINGTON TIMES": Yes.
SYLVESTER: ...and then fast forward, what the events of 9/11 really helped shape and form this book.
Tell me about that.
WEST: The year in Ireland was significant only because it took me out of American culture and then put me back into a different person. I think any time you leave your culture, you come back a little bit someone else.
I actually started working on the book about 10 years ago, back when we had a president named Clinton. We had a big scandal involving a White House intern. And what really struck me about the wheel way the scandal unfolded was the fact that I decided Bill Clinton thought the country was more grown up than he was, because if you remember those first televised pictures of Bill Clinton on the revelations about Monica Lewinsky, he looked like he was a cooked goose.
And in retrospect, it struck me that I believe he thought he was going to be punished. He wasn't.
And when I started thinking back on those -- that period, I wanted to find out what had happened to us?
How had we gotten to the point where the country was not more grown up than this particular president, who did seem like the poster boy for the death of the grown up?
SYLVESTER: When you talk about grown ups, you also have, in your first chapter, you have some interesting statistics. More adults ages 18 to 49 watch the Cartoon Network than watch CNN.
(LAUGHTER)
SYLVESTER: The average video gamester was 18 in 1990 and now he's going on 30.
How does this all factor in?
WEST: Well, I think that it -- it factors in, in showing us that we are a culture of perpetual adolescents. We haven't really gotten to the point where we rediscovered maturity. It kind of went out of style, I guess in the 1960s. But we really seem to be frozen with the sort of model of the sort of counterculture cool, never quite growing up, flaunting -- flouting authority kind of figure. And that, I think, we do owe to our baby boomers. And that is why we see these statistics like this, and many others.
SYLVESTER: And how does this factor in -- tie it all in together -- on the war on terror?
Because your concern is that people are essentially just tuning out, not paying attention, not focused enough, that they are essentially, you know, we don't have grown ups in this country.
WEST: Well, I think that's true. I think that what we saw in that kind of countercultural period in the 1960s was a kind of leveling of all sorts of hierarchies -- hierarchies of learning and hierarchies of authority. And from that emerged the kind of leveling of culture. And I think from that comes multiculturalism, in which no culture is any better, any different than any other except, of course, Western culture usually is denigrated.
And from that, I think we get to this point where it becomes very hard for people to discuss the war on radical Islam. It becomes very difficult for people to assess frankly the problems facing us, because we don't want to be considered mean or not inclusive.
I think inclusion has become our great virtue and yet there's a big difference between preserving openness in a society and preserving tolerance. You can't go on forever being tolerant because you are going to be subsumed.
SYLVESTER: And you also talk, as part of that, that we lose our identity.
WEST: Yes.
SYLVESTER: We have a full screen that I want to pull up.
WEST: OK.
SYLVESTER: You have a chapter called "The Real Culture War," where you call multiculturalism a faith more dangerous to us than jihadist terrorists.
You write: "From the multicultural teachings of the politically correct classroom, we as a culture have learned to censor incorrect thoughts. In the absence of adults, we have found ways to sidestep taxing responsibilities."
What did you mean by that?
WEST: Well, it's kind of like the enemy within. I think we've trained ourselves to be nonjudgmental to a fault. And, perhaps, inspired by very kindly sorts of notions. But there is in this -- in this to make judgments, to make distinctions, a loss of ourselves.
And so, to me, the multicultural paradigm that seems to be motivating so much of our discussions fail to allow us to face facts, discuss things rationally as adults, as mature people.
And so that -- that is basically what I mean. I feel like we could take on the threats posed to our liberty by expansionist Islam, but not unless we can talk about them.
SYLVESTER: Now, we only have about 30 seconds left.
WEST: Yes.
SYLVESTER: What are some of the solutions?
Because, clearly, you've identified several problems. It's the loss of identity, this, essentially this multiculturalism, that we don't have grown ups in this country.
What are some of the solutions?
WEST: Well, I think the solutions come with trying to realize where we were and how far we've come down, in a sense, and looking back at that figure about the 30-year-old gamester. And it really also goes back to discovering what makes us Western, what makes us a liberty belt -- based culture -- and -- which is a more benevolent society than what we're up against.
So I think it comes to facing facts about who we are and why we need to stay that way.
SYLVESTER: Diana West.
It's a great book.
It's called "The Death of the Grown-Up: How America's Arrested Development Is Bringing Down Western Civilization."
WEST: Oh, thank you.
SYLVESTER: It's been a pleasure. Appreciate it.
WEST: Thank you, Lisa.
SYLVESTER: Thanks.
And coming up at the top of the hour, "THE SITUATION ROOM WITH WOLF BLITZER" -- Wolf.
WOLF BLITZER, HOST, "THE SITUATION ROOM": Thanks very much, Lisa.
CNN goes one-on-one with Democratic presidential candidate Barack Obama. He visited a South Carolina school today and says he wouldn't want his daughters to go to school there. Find out what he'd do to fix schools across the country.
Also on the campaign trail, John Edwards launching his harshest attack yet on the frontrunner, Hillary Clinton. It's a brand new line of attack that he unveiled today. You're going to want to hear what he said.
Now, the Clinton camp is now reacting.
Also, a new version of "Saving Private Ryan". A tragedy turns -- a tribute turns to tragedy, that is. We're going to tell you about a family's heartbreaking sacrifice.
And a religious college has classes for women only -- not in theology, but in housework.
Are they turning back the clock?
All of that, Lisa, coming up in "THE SITUATION ROOM."
SYLVESTER: Thanks, Wolf.
And still ahead, the results of our poll tonight and some more of your thoughts.
We'll be right back.
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SYLVESTER: Now the results of tonight's poll -- 94 percent of you are outraged that the Mexican senate supports Elvira Arellano's claim that the United States is to blame for her deportation.
Time now for some of your thoughts.
Steven in Ohio: "Don't blame China for recalled items. We have to blame ourselves. We can't have it both ways. Good paying jobs and cheap prices. I vote for quality goods made in the USA to support the USA."
And Milt in California: "American businesses like Mattel should be responsible for the safety of toys, not China. China is only doing what Mattel wants -- lower costs at any price, even the lives of our children."
Mary in Maryland: "The onus of importing tainted and poisonous products and foods lay on the companies who outsource their manufacturing for profits and greed."
Each of you whose e-mail is read here will receive a copy of Joseph Califano's book, "High Society".
Thanks for being with us tonight.
Please join us tomorrow.
For all of us here, thanks for watching.
Good night from New York.
"THE SITUATION ROOM" starts now, with Wolf Blitzer -- Wolf.
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