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Not Playing Nice: Dems Trade Jabs During Debate; Fight for Florida; Emergency Fed Rate Cut
Aired January 22, 2008 - 10:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: You're with CNN. You're informed.
I'm Heidi Collins.
Developments keep coming in to the CNN NEWSROOM on this Tuesday, the 22nd day of January.
Here's what's on the rundown.
The Fed cuts key interest rates, but it doesn't pull stocks out of a funk. Is it too little, too late?
They came to play hardball. Our guest sizes up the CNN Democratic brawl game.
And a convicted killer in court this hour expected to walk out a free man. DNA proves he didn't do it -- in the NEWSROOM.
It got down right unpleasant. The front-runners on the attack during a Democratic debate on CNN last night.
Here now, Senior Political Correspondent Candy Crowley, part of the best political team on television.
(BEGIN VIDEOTAPE)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Wait. No, Hillary, you just spoke...
SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Barack, I did not -- I did not say anything about Ronald Reagan.
OBAMA: You just spoke for two minutes.
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): You think this race isn't personal? Then you didn't watch.
OBAMA: While I was working on those streets, watching those folks see their jobs shipped overseas, you were a corporate lawyer silting on the board of Wal-Mart.
CROWLEY: They read their APO research, used it frequently, and never gave an inch.
CLINTON: I was fighting against those ideas when you were practicing law and representing your contributor, Rezco, in his slum landlord business in inner city Chicago.
OBAMA: No, no, no, no, no, no, no.
CROWLEY: Also, John Edwards was there.
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: I also want to know in behalf of voters here in South Carolina, this kind of squabbling, how many children is this going to get health care?
CROWLEY: So, first victim, that high-minded campaign on the issues. And even when they did get down to it, hostilities simmered, each accusing the other of distorting the truth.
An economic stimulus plan, Obama said Clinton changed hers to match his. She said it wasn't so. Fiscal responsibility, she said he can't pay for his plans. He said it wasn't the truth.
On health care...
EDWARDS: There's nothing wrong with us arguing about this. But -- but I believe that there is not a single man, woman and child in America who's not worthy of help.
CROWLEY: It was two on one. Edwards and Clinton have health care plans that mandate insurance for everyone, with government subsidies for those who can't afford it. Obama's plan pivots on offering the same subsidies but driving down costs so people can afford health insurance.
OBAMA: You mandate on families to buy health insurance that they can't afford. And if you don't buy it, you fine them or in some other way, take money from them.
CROWLEY: The Clinton campaign thinks this is a winner. It's one of her favorite subjects.
CLINTON: I think that the whole idea of universal health care is such a core Democratic principle that I am willing to go to the mat for it.
CROWLEY: But mostly, this was a debate dominated by the dynamics of a tight race with big stakes.
CLINTON: Senator Obama, it is very difficult having a straight- up debate with you because you never take responsibility for any vote.
CROWLEY: And two candidates with row nerve ending.
OBAMA: These are the kinds of political games that we are accustomed to.
CLINTON: Wait a minute. Wait a minute. Just a minute.
CROWLEY: Candy Crowley, CNN, Myrtle Beach, South Carolina.
(END VIDEOTAPE) COLLINS: Tough talk from Democratic front-runners in a tight race. We'll talk with Hillary Clinton's national campaign co-chair ahead, right here in the CNN NEWSROOM.
Well, it's all or nothing in Florida. Republicans fighting over the winner-take-all stakes. It's 57 delegates. No split like previous primaries.
Rudy Giuliani, as you probably know, has been banking on a Florida win, but John McCain has momentum from his weekend victory in South Carolina. And don't forget about Mitt Romney or Mike Huckabee, although Huckabee may want to forget the comments from one of his star supporters attacking John McCain's age.
(BEGIN VIDEO CLIP)
CHUCK NORRIS, HUCKABEE SUPPORTER: John, I feel, at 72, to take over the presidency, you know, look at the presidents in the past. Look at George W. Look how he's aged in seven years. He's aged 3-1 in seven years.
Bill Clinton, he aged 3-1. Former President Bush, who I was with a lot, I saw him age in those four years.
And I'm thinking now, if John takes over the presidency at 72, and if he ages 3-1, how old will he be in four years? He will be 84 years old.
(END VIDEO CLIP)
COLLINS: Dangerous talk in retiree-rich Florida. McCain's response? Well, he says he'll have his 95-year-old mother wash out Chuck Norris' mouth with soap. So there.
One week to go for Republicans. That's when Florida voters decide if Rudy Giuliani's strategy will actually work or if John McCain's momentum is genuine. Or will they go in a completely different direction?
CNN's Mary Snow is in Palm Beach Gardens, Florida, this morning, where Rudy Giuliani has been speaking.
So, Mary, what are the Republican candidates saying about the markets and the efforts to stimulate the economy this morning? That is the story this morning.
MARY SNOW, CNN CORRESPONDENT: It certainly is, Heidi. And it has been the story, the economy, that is, for several days now, taking front and center.
Rudy Giuliani just spoke to supporters here, saying that he believes he's best positioned of his Republican rivals to steer the economy in the right direction, calling on the need to have financial security in the country. Here's what he had to say.
(BEGIN VIDEO CLIP) RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: Right now the most important thing that I believe a president needs to understand, the president needs to understand how to stimulate an economy like ours. And I have experience doing that.
Of all the people running for president of the United States, I've had the most experience in turning around a government and in turning around an economy. I actually accomplished that in New York City.
(END VIDEO CLIP)
SNOW: And, Heidi, if you hear the yelling behind me, Rudy Giuliani just walked out. A small group of Ron Paul supporters trying to interrupt a press conference that he's giving right now. So that's the sound that you're hearing behind me.
But also, in terms of the economy, all the Republican candidates really trying to jockey their way into being the -- claiming -- have the title of being the best one to deal with the economy. Senator John McCain released a statement this morning saying that the Fed's actions today by cutting interest rates, he believes that it stresses the urgency for cutting taxes and also cutting spending, two themes that he has hit hard upon.
Mitt Romney is also making the economy the center of his message here. He is saying that his economic record in Massachusetts qualifies him to be the person best suited to help steer the economy in the right direction, although his economic record is questioned by critics, whether there really was an economic turnaround while he was in that state. But Mitt Romney has said that he helped pull Massachusetts's economy out of the ditch when he was governor.
And as for Mike Huckabee, he has a different strategy. He's going to be campaigning in Georgia today. Also coming back to Florida. But to give you a glimpse of the sign of the times, you know, he cut back his press plane last night, telling reporters that he's having a lean operation, wants to save money where he can in order to compete effectively -- Heidi.
COLLINS: Interesting. All right.
CNN's Mary Snow, part of the best political team on television.
Mary, thank you.
And for more on the presidential candidates and their next stop, you can go to cnnpolitics.com. It's your one-stop shop for all things political.
A breathtaking move to pump up the economy and get you to spend. The Federal Reserve announcing this morning a startling key interest rate cut, three-quarters of a percentage point. The action, a response to the threat of recession.
So how are investors responding? Well, we have our financial troops in place this morning, and they are working hard.
Susan Lisovicz will have the mood on the floor of the New York Stock Exchange. Gerri Willis looks at what it means for your investments and your retirement savings. And Ali Velshi has the bigger picture.
The next question, what is next?
I want to begin with Susan, though, on the floor of the stock exchange.
How are those numbers looking?
SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Well, it's looking better. I mean, right now the Dow is down 93 points. And normally you wouldn't say we've got a rally going on, but that is what's happening, because the Dow at its low this morning was down 463 points. And clearly, everyone knows you want to buy on the dip.
You don't want to -- you don't want to -- you certainly want to buy on the dip, and you want to sell at the high. And that's what's happening right now. Whether it's going to hold is another story.
Where are they buying? Interesting. Some of the hardest-hit sectors, like retailers, which have been really hard hit because of the weakness in consumer spending.
Home Depot, the best performing of the Dow 30 stock, this is a company that's been hard hit not only by weak consumer spending, but also because of the housing market. And we're also seeing some homebuilders rally.
We're also seeing some financials rally. J.P. Morgan, the second best performing Dow 30 stock. Its shares are up 3 percent. Home Depot is up 4 percent.
And finally, DuPont, another Dow 30 company, is up 1 percent. This is a company that reported better-than-expected earnings today.
So we didn't have a chance to mention that before, but, yes, we do have an attempted rally going on. It has been a wild day on Wall Street. Whether, in fact, the Dow will get into positive territory or not, completely different question. But there's an attempted rally going on here -- Heidi.
COLLINS: Yes. Wow. We're not even two hours in either. It's going to be a long one. All right.
Susan Lisovicz, thank you.
LISOVICZ: You're welcome.
COLLINS: It's kind of weird, isn't it, Ali? Some of the stocks that she mentioned that are doing well, we've got Home Depot, we've got J.P. Morgan, and we've got DuPont. Not exactly what you would expect, I don't think, on a day like this. ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Well, let me tell you where some of this makes sense.
The Fed cut rates very unexpectedly today. We were expecting next Wednesday was when the Fed was going to announce a rate cut. We were expecting half a percentage point.
We got three-quarters today. We have not seen a move like this since 1984. It's a bit of a panic move, a bit of a desperation move, as you said earlier, to get out of a recession.
But think about this. The Fed rate is now 3.5 percent. The prime rate is always three percentage points higher than that. So it stands at 6.5 percent.
That's a rate to which a lot of consumer loans are tied. It's also a rate to which -- you know, which will influence bond trading and perhaps influence some mortgage rates.
So it would sort of makes sense that some of those companies that Susan is talking about, the retailers, if you're getting a discount on your consumer loans or your consumer credit cards, you might think or some investors might think you're going to go out and spend that at the retailers. The same thing with the homebuilders or Home Depot. If you're -- if the cost of your home equity loan or a mortgage is going to be cheaper, we might move back into that place where people start renovating their homes and doing things like that.
COLLINS: Yes.
VELSHI: So, again, a few hours is a hard time to make that sort of decision. And two and a half hours ago, Susan said something to us. We were all on together, and she said, it's not where it starts, it's where it ends on the market. And that's the kind of day you're seeing.
But, remember, when you get moves like we've seen in the last few weeks -- we've seen a couple hundred points a day in some cases -- there's no indication that this was the bottom that we hit of the market. We went into this day with a Dow that was 15 percent lower than the highs that it reached in October.
Once you get to 20 percent lower, you're in a bear market. That's when people start sort of bottom-fishing and buying stocks.
It may be that today's the day. It may be that it's a few months from now. But what we are seeing is the clearing out of this market, the fact that people are accepting there's probably a recession under way or coming. And it's going to hurt. And that's what you're seeing.
The stock market is looking ahead saying, guys, it doesn't matter what anybody else tells you, it doesn't matter what Ben Bernanke says, we've got some trouble coming in this economy.
COLLINS: All right, Ali. Thanks for that. So, Gerri Willis standing by. If we do have trouble coming in this economy, which he's right, a lot of analysts, a lot of people are saying, that's the talk on the street, what do you do? We had one analyst come on, Gerri, who said absolutely nothing.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, I think you do do something. And here's what I think you start looking at and considering.
Forget stocks for a minute. Think about what's in your savings account.
If there's a recession coming, the biggest threat to consumers is more than just your stocks. It's your job, it's your livelihood, it's your income, it's what you're using to put food on the table. So you want to make sure you have some savings in place in case the worst happens.
We've got to think about the bottom line here of American families across the country. You want to make sure you have savings in place in case you lose your job.
And one other thing you can do here, if you are concerned or worried about it, you can take out a home equity line of credit when it's a no-cost loan. Put it in your back pocket. If the worst happens, you have a way of paying that mortgage for a couple of months until you find something new.
It's all about finding solutions and focusing on the things that really matter here -- Heidi.
COLLINS: And if you panic, you can't focus. Right?
WILLIS: Well, you can't panic. I mean, it just doesn't pay.
Look what happened in the markets here. Is this rational? Is the market rational?
You know, first we're down 400 and now we're down 40? I mean, the same information that existed when the stock market opened today exists right now. We found out relatively little new except some earnings from retailers. You know, you can't be so caught up in market manias that you don't see your own bottom line.
COLLINS: All right. Thanks for that.
Gerri Willis, also Susan Lisovicz and Ali Velshi. Thanks for sticking around and sorting this out as we continue here this morning watching the numbers for you on CNN.
In fact, it's interesting to find out what people on the streets are saying. The Fed's big move, the interest rates clearly -- I don't know if we say underwheming investors, but maybe just kind of like we said, all over the map. That is for sure.
What about the average Joe or Joanne? CNN's Richard Roth is get that sampling of public opinion. He is on the streets of New York.
Richard, nice to see you. What are people telling you?
RICHARD ROTH, CNN CORRESPONDENT: Well, we're in Times Square, the crossroads of the world. And for a couple days now the world markets have been tumbling.
I asked several investors outside Nasdaq, the important stock market exchange, here in Times Square, about their concerns about falling prices on the markets.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I'm definitely concerned because I know my retirement fund is completely deteriorating. I see it daily just dropping. But that's about it.
UNIDENTIFIED MALE: I think these are trying times in the credit markets. We are beginning to see the aftermath of some of the early indications that the banks are hurting and that they've exposed themselves to too much leverage and debt.
UNIDENTIFIED FEMALE: It's a give and take situation because even though it's like down now, the chances are it could go back up again. So, no, I'm not afraid of it, because everything changes.
(END VIDEO CLIP)
ROTH: Well, look, it's pretty cold on the streets here in New York City. So people have been watching the monitors and looking at the prices, mostly going down, but they're not staying around to shiver, Heidi. They are going to be shivering when they get their 401 statements in the mail.
COLLINS: Yes. Yes. Well, I'm glad that some of them stopped to talk to you though.
Thanks so much.
CNN's Richard Roth coming to us from Times Square there in New York.
Thanks, Richard.
Heavy snow in upstate New York. No problem. We'll just bring out the plows from the garage, right? But what happened to the garage?
(COMMERCIAL BREAK)
COLLINS: Getting up from under a major snowstorm in one upstate New York town. Cars aren't the only vehicles snowed under.
CNN's Rob Marciano has the story. (BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Welcome to Fulton.
ROB MARCIANO, CNN METEOROLOGIST (voice-over): Shovels hardly make a dent. It's all about the heavy equipment here in Fulton, New York.
Digging out under three feet of snow is no easy job. And with streets and cars covered or walled in, some people just gave up.
UNIDENTIFIED FEMALE: I got the front of it. I just -- it was too heavy to take down with a broom for me. So, that's my excuse.
MARCIANO: Driving around with a foot or more on top, the mounds of snow somehow defy highway speeds. But here at the public works building, the roof just couldn't handle the load.
The weight collapsed part of the 50-year-old building crushing plows, snow blowers, and other critical snow-clearing equipment. Four people inside managed to escape unharmed.
BILL BROWN, FULTON CITY TRAFFIC DIVISION: The crews have got the roads to clear. They've got the downtown sections to take care of. You know, so -- and there's not much anybody can do about this so, you just keep on pushing.
MARCIANO: The mayor has declared a state of emergency. And neighboring towns are pitching in to help out. The city's garbage trucks weren't were here too, so trash pickup has been suspended for the time being. But for folks who couldn't find their curbs if they tried, that's the least of their worries.
BROWN: I'll be glad when it's over. Is it springtime yet?
(END VIDEOTAPE)
(WEATHER REPORT)
COLLINS: Well, can't sleep at night? Maybe it's your cell phone, but not because it's ringing.
(COMMERCIAL BREAK)
COLLINS: If you can't sleep at night, you may want to check to see if your cell phone is next to your bed. A new study actually says that may be why.
CNN's chief medical correspondent, Dr. Sanjay Gupta, has more.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, another interesting study looking at cell phones specifically and how they might impact your sleep. Now, this isn't going to be the final word on this issue by any means, but still, a lot of people very interested in this overall topic -- taking a look at people who use cell phones for about three hours sometimes in the evening and trying to figure out if it interferes with someone's sleep.
Now, the way that they did this study was they actually created these devices that give off 884 megahertz. That's roughly the average amount of radiation that a cell phone gives off. And they compared it to people who are also on a cell phone-type device that wasn't giving off any radiation and tried to figure out, was there a change?
A couple things emerged. Pretty interesting.
First of all, people complained of more headaches who were exposed to the radiation. They complained of more confusion or difficulty concentrating, and also sleep deprivation.
And more to the point, they talked about the fact that it was harder to get to stage four sleep in sleep studies, and that they spent less time there. About eight minutes less in stage four sleep.
Why is this happening? Unclear.
The researchers hypothesize that the radiation might actually interfere with the brain's stress receptor system, activating some stress hormones, making it more difficult to get to stage four sleep. They also say that it could be interfering with melatonin. This is one of those sleep/wake sort of hormones.
Unclear if either of those things are true, though. But what is sort of interesting is this idea that sleep could be impacted by your cell phone, as well as a lot of other things, such as having the television on, drinking too much caffeine, having nicotine as well. All those things we know does have an impact on sleep.
This, by no means, is going to be the final word. A small study, very hard to replicate at this point. But certainly as more details come in, we'll bring them to you.
Back to you for now.
(END VIDEOTAPE)
COLLINS: To get your "Daily Dose" of health news online log on to our Web site, where you'll find the latest medical news, a health library, and information on diet and fitness. The address, CNN.com/health.
America's first black president? Was it Bill Clinton?
(BEGIN VIDEO CLIP)
OBAMA: I would have to investigate more, you know, Bill's dancing abilities and some of this other stuff before I accurately judged whether he was in fact a brother.
(END VIDEO CLIP)
COLLINS: The best of the CNN Democratic debate, in the NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: Good morning once again, everybody. 11:30 eastern time. You are in the CNN NEWSROOM. I'm Heidi Collins. Tony Harris is off today. Hey, let's go ahead and check the big board now. Dow Jones industrial averages down 155 points. Resting at 1,945. The NASDAQ is also down 42. We will get to the numbers for the S&P 500 here in just a moment.
But, obviously we're watching these numbers today because of the interesting and unprecedented move -- the fed rate cut of about three- quarters a percentage point. We are going to be watching these closely for probably many, many days, in fact, to see what the effect of that is. The word recession being thrown around quite a bit, as I am sure you are well aware.
CNN, we are pouring unmatched resources into our global coverage of today's economic jitters (PH). We want to go ahead and check in with our correspondents scattered across the world's financial markets now.
(BEGIN VIDEOTAPE)
JIM BOULDEN, CNN CORRESPONDENT, LONDON: People here in the U.K. don't dabble in the stock market as much as Americans do, so they don't necessarily follow the gyrations of the stock market from day to day. But they do worry about house prices. Prices especially here in London have tripled in value over the past ten years.
That's where people focus and that's where the bullish sentiment has come with consumers in the U.K. Now, prices have weakened toward the second half of last year. If this stock market gyration do lead to a recession, especially a global recession, then British people might spend less, they might travel less.
And, that will make the recession worse and could lead to further falls on the stock market. Jim Boulden, CNN, London.
ANDREW STEVENS, CNN CORRESPONDENT, HONK KONG: Certainly the worst day for stock market trading in Asia since September 11, 2001. Right across the board markets tanked. In Hong Kong, Hang Seng Index down 8.5 percent. Japanese stocks down by more than 6 percent, Australian stocks by 7 percent, China stocks by 7 percent.
Even India, one of the darlings of the global market down 5 percent after being down 11 percent at one stage. The big fear, the U.S. recession and its affect on the Asian economies and also the Asian stock markets. At this stage, the jury is out whether the U.S. is actually in recession, but everything is pointing to a slow down and that is spooking markets not just in Asia, but right around the world.
The Federal Reserve has cut interest rates by 75 basis points. That will help the Asian markets, but at this stage, all eyes are on what happens in the U.S. in the next 24 hours, and the Asian market also take their queues from that. I'm Andrew Stevens in Hong Kong.
CHARLES HODSON, CNN CORRESPONDENT, DAVOS, SWITZERLAND: I'm Charles Hodson at the annual meeting of the World Economic Forum in Davos, Switzerland. Leaders from the corporate world and top policymakers are gathering here under the shadow of the events outside; the global market sell-off and, of course, the Federal Reserve's dramatic decision to cut interest rates by a full three- quarters of a percentage point.
Clearly, the recession and the fear that a U.S. slowdown will spread around the globe will be dominating each end, not only at the formal sessions, but also the scuttlebutt, all people are talking about in the corridors.
The hope is that a message can go out from these meetings that confidence does not have to be shattered, there does not have to be a downward spiral, a recession which would grip the entire world. Now, that might not work, but nobody has more of a vested interest than seeing it succeed than those who are gathering here.
(END VIDEOTAPE)
COLLINS: Stay with CNN for continuing in-depth coverage of the U.S. economy and its impact around the world.
Want to get to this story now. In court right now, Jose Padilla, he was convicted in court in August as supporting al Qaeda. Today he will learn his fate. The hearing gets underway -- we believe actually underway now. We are bringing in CNN's Susan Candiotti, she is outside that Miami courtroom to give us an idea of what will be happening inside. Hi there, Susan.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Hell, Heidi. I'm in the bureau now actually here in Miami. However, that courtroom proceeding -- the sentencing just started moments ago, a half hour late, we might add. But let's remind everyone now, Jose Padilla's story, a man who first became known as so-called dirty bomber.
Homegrown terrorist Jose Padilla was tried and convicted for conspiring to murder and maim overseas and support al Qaeda. That conviction, a hard-fought win for the Bush administration's war on terror, was a far cry from the government's scariest accusations against Padilla. At first calling him a dirty bomber for plotting to set off radio active bombs in America after 9/11.
But after being held as an enemy combatant for more than three years in a Navy brig, blindfolded and isolated without access to a lawyer, Padilla was never charged...
(COMMERCIAL BREAK)
COLLINS: The Clinton/Obama fireworks garnered most of the attention. But there were three candidates in last night's Democratic debate. John Edwards stepped in to remind people about that.
(BEGIN VIDEOTAPE)
SEN. HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: What? Wait a minute. Wait a minute. Just a minute now.
UNIDENTIFIED MALE: No.
UNIDENTIFIED MALE: Let them wrap up and then I'm going to come to you.
UNIDENTIFIED FEMALE: Yes.
CLINTON: I just want to clarify. I want to clarify the record. Wait a minute.
JOHN EDWARDS, (D) PRESIDENTIAL CANDIDATE: There's a third person in this debate.
WOLF BLITZER, CNN ANCHOR, DEBATE MODERATOR: Senator, hold on. There has been a specific charge leveled against Hillary Clinton. So he can respond and then I'll bring in Senator Edwards.
CLINTON: I just want to be sure.
SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: I just want to address what you said about Iraq.
BLITZER: We have a long time to go. You'll have other opportunities.
CLINTON: We're just getting warmed up. Now --
(LAUGHTER)
CLINTON: Well, you can read the context of it. It certainly --
OBAMA: Wolf. I didn't say there were (INAUDIBLE)
CLINTON: Well, it certainly...
EDWARDS: All right. Wolf, Wolf, Wolf.
CLINTON: It certainly came across --
BLITZER: Hold on one second. Hold on. Senator Edwards -- Senator Edwards has been remarkably patient during this exchange. And I want him -- I don't know if you want to get involved in this, Senator Edwards. EDWARDS: Well, what -- what I want to say first is, are there three people in this debate, not two?
(LAUGHTER)
EDWARDS: And I also want to know, I want also to know on behalf of voter here in South Carolina, this kind of squabbling, how many children is this going to get healthcare? How many people are going to get an education from this? How many kids are going to be able to go to college because of this? We have got to understand, you know, and I respect both of these -- my fellow candidates. But we have got to understand, this is not about us personally. It is about what we are trying to do for this country and what we believe in. Now, fiscal responsibility, which I think was the question, it's a little hard to tell after -- at the end of that.
(END VIDEOTAPE)
COLLINS: Issues and accusations. Well we heard from Barack Obama's campaign co-chairman a little bit earlier this morning. Now Indiana senator, Evan Byah, is Hillary Clinton's national campaign co- chair. He is joining us from Washington this morning.
Thank you for being here. I want to get your comments right at the top of what you just watched. I'm sure you saw it last night. Who does this benefit or is it just part of the process?
SEN. EVAN BAYH, CLINTON CAMPAIGN NATIONAL CO-CHAIRMAN: Well, I think John Edwards made a good point, Heidi. This is effectively a two-person race between Senator Clinton and Senator Obama. But I think John raised an excellent point, which is, this is about the American people and the challenges they face in their daily lives and which of these two people is going to be most effective in bringing about the real results and progress that people want.
And when you got through all the exchanges and looked at the substance, I think you saw that Senator Clinton's program is much more comprehensive, in terms of solving our healthcare challenge. Covers everybody, doesn't leave 15 million people out, and that means it's going to be better at keeping costs low for everybody else. Her economic stimulus program to try and get us out of this economic slowdown is about three times more aggressive in dealing with the housing problem than Senator Obama's is.
And finally on the subject of that clip that you showed, fiscal responsibility, she pays for her initiatives and doesn't engage in double accounting and we don't want to go back to the days of debt and deficit. And she doesn't do that. So I thought that she showed that she's prepared to lead and actually solve these problems. And that's what the election ought to be about.
COLLINS: Senator, forgive me, but is it possible or is there a concern ever that the people at home, maybe in that audience, didn't hear any of that? All they saw was the fireworks, they were looking at the hand gestures, they were listening to the yelling, the facial expressions. And they sometimes, do they not, get sucked into that and miss the message?
BAYH: Well I think that's more the chattering class, Heidi. And I think that's -- those of us who follow this kind of give and take, I think that folks watching at home kind of threw up their hands at all that and said, wait a minute, it's not about that, it's about us.
COLLINS: Or they turned it off.
BAYH: And they did focus on the substance and they did want to say that look through all the fireworks and say, who can really lead this country? Who can really make the progress that I want? Speeches are nice and raising hope is good, but who can deliver on those hopes? And I think that's where Senator Clinton's seasoning and experience, her clear knowledge and her program are really -- carried the day.
COLLINS: Well obviously the big story, as you well know this morning, is certainly the economy and the Fed announcing these rate cuts that everyone is talking about. We've been watching the market very, very closely. With a quick update here, Dow Jones Industrial average is down about 180 points. Let's go ahead and listen for a moment about what each one of the candidates said last night on the economy.
(BEGIN VIDEO CLIP)
OBAMA: We could be sliding into an extraordinary recession unless we stimulate the economy immediately.
CLINTON: The president's proposed stimulus package is not adequate. It is too little, too late.
EDWARDS: Fifty million Americans, they're low-income Americans and moderate-income Americans. They are completely left out of the stimulus package.
(END VIDEO CLIP)
COLLINS: All right, so your candidate there said, too late, too late. We have heard some of the analysts this morning say that. But what does what mean for the American public? Should she be offering a little bit more encouragement?
BAYH: Well the most important point here, Heidi, is that this is a serious moment for our country and there are tremendous economic challenges that people face in their daily lives. And so, this is not a political election, this is a substantive election. And I think Senator Clinton has demonstrated that she's prepared to lead. As I pointed out, her stimulus package is three times more aggressive in dealing with the housing problem that is the source of much of this economic disturbance that we have.
We do need to do more than the president's proposed, as she suggested. That's what you call leadership. And the final thing I would say is the last -- we've had a big debate about history, in some respects. The administration with which she was associated had a tremendous track record in terms of creating tens of millions of new jobs, moving people from welfare into jobs and growing our economy. And it's that kind of experience I think we need at this critical moment to move this economy forward.
COLLINS: Very, quickly. How important is a win in South Carolina?
BAYH: Well, South Carolina is very important. No question about that. And we're all going to compete very hard for the votes in that state. But I think you know that the first Tuesday in February, is sort of the big test...
COLLINS: Sure.
BAYH: ...with 22 states voting, so we're looking forward to that as well.
COLLINS: All right, Senator Evan Bayh, certainly appreciate your time here this morning. The national campaign co-chair for Hillary Clinton. Thanks again.
BAYH: Good to be with you.
COLLINS: Well, don't miss a showdown in the wild, wild West one week from tomorrow. The candidates face off in the California debate, the last debate before super Tuesday. You can see it only here, January 30th and 31st on CNN, your home for politics.
Spotlight on Sundance now. The movie "Death in Love," gets the top spot at the film festival. And we're talking to the leading man.
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