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John Edwards Drops Out of Presidential Race; Giuliani Expected to Endorse John McCain
Aired January 30, 2008 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... best workers in the world.
DON LEMON, CNN ANCHOR: President Bush in Torrance, California, at a helicopter factory speaking about the economy today, also talking about some things that he brought up in the State of the Union the other night. But, again, he is there, introduced today by the governor of California, Arnold Schwarzenegger.
It is the top of the hour, everyone. I'm Don Lemon, live here at the CNN World Headquarters in Atlanta.
KYRA PHILLIPS, CNN ANCHOR: And I'm Kyra Phillips.
The field narrows and the landscape changes six days before Super Tuesday. John Edwards ends his presidential bid where he began it, in New Orleans. And before the day is over, we are expecting Rudy Giuliani to exit the GOP race and endorse rival John McCain.
"It is time for me to step aside." And with those words, former Senator John Edwards dropped out of the Democratic presidential race just minutes ago. He ended where started, New Orleans.
And that is where CNN's Suzanne Malveaux is right now -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: It really kind of came full circle here for John Edwards here in the Ninth Ward of New Orleans, devastated by Hurricane Katrina. Well, this is where it began. This is also where it ended.
He said that it really was the cause of his life, fighting poverty and corporate lobbyists. Ultimately, Kyra, it did not end up garnering him the kind of support and the votes that he needed in those early contests. That is something that he realized, he, and his wife, Elizabeth Edwards, making that decision earlier this morning, we're told.
It was a tough decision. I had a chance to catch up with him afterwards to ask him how he made that decision and where he goes from here.
(BEGIN VIDEOTAPE)
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: Well, I thought it was the rights thing to do. I mean, my campaign has always been about giving a voice to people who didn't have a voice. I am proud of having done that. I'm proud of what we have done.
I think we have pushed issues that otherwise would not have been prominent in the campaign. And I thought we had come to this point, this historical point, where it was time for me to step aside, as I said in the speech, and let America make history and let my party make history.
MALVEAUX: Will you endorse a candidate?
EDWARDS: I haven't made that decision yet. I have told both Senator Obama and Senator Clinton that I would be happy to spend time with them to talk to them about what they intend to do for America, what they are committed to doing, and then I would make a decision.
MALVEAUX: What do they need to do for your endorsement, to win your support?
EDWARDS: Well, I don't way to say that now. I want to have a very serious, very substantive conversation with them. I know them both. I have been competing with them very hard for a year now. They are both very good candidates. But this is a conversation that needs to be in private. This cause is the cause of my life. And I need to be satisfied about, if I am going to endorse, which one will be committed to the cause.
MALVEAUX: Tell us about your family is doing. How is Elizabeth and her health? And was that a part of the decision at all or was it truly a political one?
EDWARDS: Well, your family is always a part of the decision. And any presidential campaign is hard on a family. But Elizabeth's health is actually very good. And she feels good. Her spirits are good. My kids are doing well. I just thought we had reached the place where this was the right thing to do for my country.
MALVEAUX: And what will you do next? What will you do next?
EDWARDS: I am still figuring that out.
(END VIDEOTAPE)
MALVEAUX: So, he says he is still figuring out. One of the things obviously that people are wondering is whether or not he would be willing to be a running mate to either one of his opponents, his former opponents.
We are told that that is not really necessarily the direction that he would want to go in the cards having done that before, been there, done that. But he heads home with his wife, with his children, now putting this chapter behind him, and certainly moving forward toward the debate.
When we talk about whether or not he will endorse either one of those candidates, what he is looking for? He was the first person to come up with the -- a universal health care plan, to put that out there in the debate, also, talking about fighting poverty, corporations, as well as those lobbyists, all of the things.
He is going to be listening to very closely to those other candidates to see whether or not he will lend his support to them. And he says it is not something that he has decided, but, obviously, he is still a powerful player in that way -- Kyra.
PHILLIPS: It will be interesting to watch and see who he does endorse and the impact that it makes.
Suzanne Malveaux in New Orleans, appreciate it.
LEMON: Well, one day after a stinging defeat in Florida, Rudy Giuliani is expected to quit the race. He's expected to endorse one of his rivals for the nomination.
CNN's Mary Snow joins us now from Tampa with the very latest on this.
Hi, Mary.
MARY SNOW, CNN CORRESPONDENT: Hi there, Don.
And just about three hours from now in Simi Valley at the Reagan Library, we are expecting an announcement of an endorsement. And several New York lawmakers who are Republicans we spoke with today said they received calls from Rudy Giuliani confirming that he will drop out of the race and endorse Senator John McCain, this, of course, after Rudy Giuliani gambled on winning here in Florida, and suffered a big defeat.
He had hoped to win here and launch into Super Tuesday. Last night, he spoke about his campaign in the past tense. But he has been a longtime friend of Senator John McCain, and had said early on that, if he had not been running himself, that he would have supported Senator McCain.
This, of course, after John McCain is now the Republican front- runner in this race, after winning Florida, South Carolina and New Hampshire. He told reporters on the plane this morning that he was pleased with the margin of victory. This was supposed to be a very close race between him and Mitt Romney, but he did win by about five points. He believes that his message of national security and the economy is what helped him, but also some key endorsements from Governor Charlie Crist and also Senator Mel Martinez.
Mitt Romney though says he feels his chances are good, now that it is, in his words, a two-man race. His camp is really trying to harp on the conservative message saying that they believe conservatives are rallying around Mitt Romney and trying to tap into the discontent among conservatives toward John McCain.
Mike Huckabee is still in this race. He said last night although he didn't fare well, he does expect to do well Super Tuesday. He has really been concentrating on the Southern states. But tonight at the debate, it is going to be very closely watched. What will happen between Senator John McCain and Mitt Romney? Because their feuding had gotten very bitter in recent days -- Don.
LEMON: All right, Mary Snow in Tampa. Mary, thank you very much for that.
And for the rest of the field, there is no time to rest, with Super Tuesday less than a week away. Hillary Clinton is campaigning in Arkansas and Georgia today. Her Democratic rival, Barack Obama, is making stops in Arizona and Colorado. And Republicans Mike Huckabee, John McCain, Mitt Romney are all campaigning in California, ahead of tonight's CNN debate at the Reagan Library.
Make sure you stay with CNN for complete coverage as the Republican and Democratic candidates face off in California. It will be the last debates before Super Tuesday and the first without Rudy Giuliani and John Edwards in the field. The Republicans square off tonight and the Democrats tomorrow night, both at 8:00 p.m. Eastern, only here on CNN, your home for politics.
(BUSINESS REPORT)
LEMON: Tornado warnings in the middle of winter. Severe storms that thundered across much of Indiana overnight are being blamed for at least four deaths. Three people died when their mobile homes blew apart in 80-mile-an-hour winds. Another person was killed on the rain-slicked roads.
The search is on for the body of a snowmobiler in the mountains of west Denver. His two companions rescued late yesterday told searchers their friend died Monday. That is the same day they all got lost in that blizzard. The rescued man -- men, I should say, are recovering in a hospital.
(WEATHER REPORT)
PHILLIPS: Well, winter storms are crippling China in more ways than one. Government leaders say the economy has taken a $4.5 billion hit, and that is because of all the power outages and the tens of thousands of people still stranded at train stations and airports.
The government is mobilizing almost half-a-million solders to get things moving again, but it may be for naught. Forecasters are calling for at least three more days of snow.
LEMON: Ending, well, where he began, John Edwards calls it quits in New Orleans. We will take a closer look at his special connection to that city.
(COMMERCIAL BREAK)
LEMON: 3:16 in the East.
Three of the stories we are working on for you right here in the CNN NEWSROOM: Just a short time ago, John Edwards dropped out of the presidential race. He made the announcement in New Orleans, a city where he first declared he was running. Edwards has not endorsed either of his former Democratic rivals. He has not done it yet. Let me see if I can do this right. Yeehaw, that is what one of two -- can you do it for me, Kyra? Do a yeehaw?
PHILLIPS: No, no, I will let you do that.
LEMON: Oh, come on. That is what one of two -- have a little fun.
PHILLIPS: I only want to do that when I am two-stepping.
LEMON: All right.
(LAUGHTER)
LEMON: Two U.S. astronauts on the International Space Station yelled after a crucial space walk today. The two went on the riskier- than-normal walk to fix faulty equipment that threatened to cripple their power system.
A winter blast from the West to New England. Temperatures are plunging across the Northeast, after howling winds and blowing snow lashed the Great Lakes region. Chad Myers showed us that just moments ago. Thousands are now without power in the Midwest.
PHILLIPS: Well, we talk a lot about what interest rate cuts mean for borrowers, but what about savers? And we know you are out there.
With us now from New York, personal finance editor Gerri Willis.
Gerri, does this latest rate cut mean opportunities for consumers?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, sure it does. I think people are worried in this volatile market that nothing they touch is safe. But, look, that is why they call them investments. They go up and they go down. There is a lot of volatility. You have to prepare yourself for that.
Look, if you are looking to invest for the long haul, make sure that your savings are in places where they will actually grow. That means the stock market. You really cannot avoid the stock market if you are looking for the highest returns out there for individual investors.
Of course, the easy ways to go about that is to buy index funds that buy the entire market. Just make sure that your costs for that are very low. If you look at why individual portfolios perform well over the long haul, it has very little to do with what they invest in. It has everything to do with what they pay for those investments, how they allocate their assets over many asset classes, and what fees they pay.
So, those are the critical things. Now, if you are trying to save out there right now -- and there are a lot of baby boomers who are worried about their money for retirement -- if you are in accounts, savings accounts, right now, the rate cuts today do not help you. You are going to have to go out and shop for some of the best rates you can find.
We want to show you some of the numbers out in the marketplace right now. You will see that returns on saving accounts, for example, low inflation here. You are losing money. It is like putting your money in a mattress. Interest -- inflation, that is, is eating away at your returns every day. You want to make sure that you put your money somewhere where you can get some return over the long haul.
I know people see this volatility, Kyra, and they are so just nervous, they don't know what to do. Just make sure you have your money in enough pots that something is always going up, even if other things are trending down.
PHILLIPS: Well, you know, a lot of people are obviously worried about their money right now with the stock market. Just yesterday, my producer Sonya (ph) is looking at her numbers, talking about how much she is losing. She's looking at it every day. And I said, you have to stop doing that. But --
(LAUGHTER)
WILLIS: Good advice.
PHILLIPS: Right.
WILLIS: Yes.
PHILLIPS: Don't you think? That is just going to drive you crazy right now. You have got to ride it out.
WILLIS: You have got to ride it out, because here is the problem. If you get nervous and you sell now, you are going to be selling while stocks are falling, then what are you going to do? You're going to reinvest when they are rising? You're going to pay more for the very stocks that you owned five days ago, a month ago, two months ago? It actually makes no sense.
Now is the time to be buying as the stocks are falling. If you have a regular program of investing at the same time every week, every month, every two months, whatever it is you do, you need a habit of saving and investing in the stock market. That is the way you profit, not trying to time these dips, because invariably even the pros have a hard time timing the dips. They can't do it either. So predicting the future of the stock market, Kyra, if I could do that, you and I could go off to an island somewhere.
PHILLIPS: Hey, that sounds good to me.
(LAUGHTER)
PHILLIPS: Name the island, sister. We are there.
(LAUGHTER)
PHILLIPS: Gerri Willis, thanks.
LEMON: Don't leave me out.
PHILLIPS: Oh, Don says don't leave him out. All right.
(CROSSTALK)
WILLIS: All right, Don, you come, too.
PHILLIPS: We can bring him along with the girls.
WILLIS: Come on. Yes.
(CROSSTALK)
LEMON: Thanks. That will be fun.
PHILLIPS: He is paying. Thanks, Gerri.
LEMON: A little sandwich.
(LAUGHTER)
(CROSSTALK)
PHILLIPS: Oh. Oh.
WILLIS: Oh, I have to go now.
PHILLIPS: Yes, yes, good time. We don't want to hear about the reverse Oreo.
Gerri Willis...
(LAUGHTER)
LEMON: Oh, you said it. I'm glad you said it.
PHILLIPS: We are going to have some fantastic tips on how to keep your savings safe every...
LEMON: Wait. Can we get Gerri's face back?
(LAUGHTER)
PHILLIPS: ... every Saturday night here on CNN. You can check out "OPEN HOUSE" Saturday mornings 9:30 a.m. Eastern. I made my girl blush.
See you, Gerri.
(LAUGHTER)
LEMON: Poor Gerri. All right.
PHILLIPS: Take it away.
LEMON: Thank you. I will take it away. Healthcare crisis, serious stuff. Your insurance may not cover you when you need it most. Dr. Sanjay Gupta investigates.
(COMMERCIAL BREAK)
LEMON: A recent CNN poll found more than 60 percent of Americans feel the health care system needs a major overhaul, more than 60 percent. Now, in this country, almost 50 million people don't have health insurance. And even those who do, well, they can run into serious, serious problems.
Our Dr. Sanjay Gupta has been investing for a "Broken Government" special.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN SENIOR MEDICAL CORRESPONDENT: The numbers are pretty startling. We know tens of millions of people are without any kind of health insurance.
And there's also lots of people who are underinsured. They simply don't have enough health insurance. There's also people who think they have enough insurance, but when they actually read the fine print, they find out that it is not nearly enough.
Take a look.
UNIDENTIFIED FEMALE: Are you OK, Mommy?
DAWN ZEIGLER, MOTHER: I am OK. Are you OK?
GUPTA: Dawn and William Zeigler were living the quintessential American dream as real estate brokers in Las Vegas, plenty of money, nice houses, fancy cars. And then Dawn got pregnant with twin girls.
WILLIAM ZEIGLER, FATHER: I was excited. I was excited, until we found out it was twins. Then I was nervous.
GUPTA: But Brooke and Alexa (ph) arrived early, too early, and little baby Brooke was in serious trouble.
D. ZEIGLER: When she came out, she was blue.
W. ZEIGLER: And they had to resuscitate her. We didn't know that we would have to have surgery with -- you know, within ten hours.
GUPTA: And then another surgery. And then another. Over the next 18 months, she had nine operations, including two open-heart surgeries. She was airlifted to hospitals in California and Indiana. The Zeiglers never thought about the cost because they had insurance, excellent health insurance.
(on-camera): Did you worry about it at all?
D. ZEIGLER: Not at all. GUPTA (voice-over): And yet today, this well-to-do couple is now broke and filing for bankruptcy. Insurance paid for a while. But there was a lifetime limit of $2 million for Brooke's expenses. That may sound like a lot, but it was nowhere near enough.
W. ZEIGLER: Especially when some days it was $30,000 to $40,000 a day to keep her in the ICU. You know, the days of the operations, they were $100,000 days. In the end it ended up costing us everything. We're lucky to still have our house and our cars, but that's about it.
GUPTA: But that wasn't the worst of it. After months of intensive care, Brooke's heart finally gave out. Brooke Zeigler was just 18-months-old when she died. A year later, a bill arrived in the form of a legal judgment.
(on-camera): You owe Riley Hospital $700,000?
W. ZEIGLER: $708,000. They just sued us for unpaid medical expense.
GUPTA: Now the Zeiglers are not alone. About a million people filed for bankruptcy in 2006 and the vast majority of those were actually due to medical bills.
Dr. Sanjay Gupta, CNN, reporting.
(END VIDEOTAPE)
LEMON: Man. Well, catch Dr. Gupta's "Broken Government" health care special tomorrow night at 11:00 Eastern or Sunday night also at 11:00 p.m. Eastern.
Dr. Gupta will join us here in the NEWSROOM tomorrow. We are going to talk about healthcare throughout the day, and we want to hear from patients and caregivers like you. What are your questions about health care in the U.S.? What are your questions about healthcare in the U.S.? Send us your questions. The e-mail address is CNNnewsroom@cnn.com.
PHILLIPS: Putting money in your pocket. Is the stimulus plan now before Congress the best way to get the economy back on track?
(COMMERCIAL BREAK)
PHILLIPS: And this just in to CNN. We're getting word now that the judge presiding over the Brian Nichol's murder case is stepping down. Brian Nichols, you may remember, back in 2005, had killed four people after overcoming a sheriff's deputy when he was getting ready to go into the courtroom to face charges of rape. He had overcome that deputy, shot her, took her gun, went into the courtroom, shot the judge, shot the court reporter and then shot a sheriff's deputy as he was leaving that courtroom. He went on a number of carjackings and then shot a federal agent.
You may remember that happened -- this all happened in 2005. We were carrying it live. It happened in the afternoon into the evening. He was even caught on videotape -- surveillance tape in our Turner parking lot. He was on the loose for a couple of days before he finally surrendered to the SWAT team in Gwinnett County after, you remember, a young woman by the name of Ashley Smith apparently read "The Purpose Driven Life" to him and talked him into surrendering. It's a very bizarre case, lots of twists and turns.
The judge -- the Fulton County superior judge that is stepping down is Judge Hilton Fuller. He announced that decision today. We just got word.
Our Jeffrey Toobin -- here's what's interesting. He cited that media reports, referring to a magazine article attributing him to Back on Earth, he allegedly asserted that Brian Nichols was guilty -- he's Back on Earth, that's why he's stepping down.
However, our Jeffrey Toobin wrote an investigative article for "The New Yorker" magazine.
He's joining now us by phone -- and, Jeffrey, you know, we just did the interview with you a couple of days ago. You went into extensive research in your article about a lot of criticism circling around this judge and the fact that this case was costing so much money. You couldn't get a defender to step up and take the Brian Nichols case. A number of people believing that it's because of the investigative piece that you did that might have led to the judge's decision to step down. But maybe you can give some more insight into what you did write about in that article.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, the story is about why, nearly three years after the crime, the trial has not taken place and is, in fact, terribly stalled, with the prosecutor attempting to get both the judge and the district attorney off the case.
What has now happened in the last few minutes is that the judge has withdrawn, apparently because he feels that comments he made in my article question -- raise questions about his independence or prejudgment of the issues in the case, which, I have to say, is very startling because, like most journalists, I don't like to be part of the stories I cover. But it's a -- it's something that judges sometimes do.
PHILLIPS: But you're an -- this is an investigative piece you did, Jeffrey. You had worked on it for quite a while. And you got a lot of insight into this case and the failings kind of centered around this case. So you also talked about how -- the way that the death penalty was playing a part in all of this and what's involved in that, the cost involved with that and how it might even have a domino effect to other states because of what's happening here with this case.
TOOBIN: Right. I mean the paradox at the heart of the case in my article in "The New Yorker" is everybody knows that Brian Nichols killed those four people. He killed two of them in front of a whole bunch of witnesses. He confessed...
PHILLIPS: And he admitted to the murders.
TOOBIN: He had confessed -- exactly -- to police.
So why is it taking so long and why is it costing so much money? The issue is that in death penalty cases there has to be what's called a penalty phase. And according to the Supreme Court, in that penalty phase, the defense has to do essentially a biography of their client -- psychologically, their criminal history, their relationship with their parents. And that all is very expensive -- even for a guilty defendant. In fact, for -- the more guilty the defendant, the more likely it is to be expensive, because there's more to explain. And that's what my article in "The New Yorker" is really about.
And my feeling was that Judge Fuller was sort of bearing the brunt of all of this, even though he didn't make the law. He was merely trying to enforce what the law is. And he expressed to me some of his frustration in all the criticism he's getting.
PHILLIPS: Well, is there anything that you think that the judge -- that Judge Hilton Fuller could have done to get this case moving, to wrap this case up in less than three years?
TOOBIN: That's a really hard question, Kyra. I can't say that I can monitor every single thing he's done and say that he's made every right decision. But I think that a lot of his critics failed to appreciate just how difficult the job was and just how expensive it was and how the State of Georgia is, frankly, trying to do this on the cheap and not give the defense the resources it needs.
If you want to have the death penalty, as the State of Georgia clearly does, you have to have resources for the defense. And I think that that's the -- what -- where there was a failure. And that wasn't -- that wasn't Judge Fuller's fault, but that was the State of Georgia's fault.
PHILLIPS: And just so our viewers, if they want to read your article, remind me again which "New Yorker" -- which issue...
TOOBIN: It's currently on newsstands and you can find it at NewYorker.com.
PHILLIPS: There you go.
Jeffrey Toobin, our senior legal analyst. Appreciate it, Jeffrey.
TOOBIN: OK. Kyra.
LEMON: Back now to "Decision 2008." A presidential contender calls it quits in a city that never really never quits and a city that needs a lot of help. John Edwards ended his Democratic campaign today in New Orleans -- the same city where he began it.
(BEGIN VIDEO CLIP)
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: It is appropriate that I come here today. It's time for me to step aside so that history can -- so that history can blaze its path. We do not know who will take the final steps to 1600 Pennsylvania Avenue. But what we do know is that our Democratic Party will make history. We will be strong, we will be unified and with our convictions and a little backbone, we will take back the White House in November and we'll create hope and opportunity for this country.
Now, I've spoken to both Senator Clinton and Senator Obama. And they have both pledged to me, and, more importantly, through me to America, that they will make ending poverty central to their campaign for the presidency.
(END VIDEO CLIP)
LEMON: You know, John Edwards clearly has a special connection to New Orleans. Joining me now is a man who has covered the city before Katrina, during Katrina, after Katrina. Our Sean Callebs is actually down there. And that is your bailiwick. You're in our New Orleans bureau.
It's very interesting that he chose New Orleans. It was pretty bold and some people said it's just going to be a backdrop. He's going to use it as a backdrop and move on. But is that necessarily so?
SEAN CALLEBS, CNN CORRESPONDENT: If you talk to a lot of people down there who did follow him and the work he did down there, they say simply that that isn't the case. The last thing that Senator Edwards said very important. He said that Senator Obama and Clinton have both indicated they will continue to push to fight poverty. That the reason that Edwards really chose that.
Remember, that was when he first pushed to say we have to fight poverty in the United States. Don, he said that is why I am choosing to begin my campaign here in New Orleans -- not just the fact that the Gulf area really needs a lot of attention but also a lot of poor live in that city and he wanted to bring it to light.
LEMON: Yes. I know -- and you happened to be here in Atlanta. And I said what an opportunity to get Sean up here to talk about these things, especially as it comes to knowing New Orleans. And --
CALLEBS: These pictures right here -- this is the day he announced. Excuse me for interrupting you.
LEMON: No, no, no. Go ahead.
CALLEBS: Just bringing it up. And the lady that owns this house, Orelia Tyler -- a great, great person -- a grandmother. Her son is serving his second tour in Iraq right now. What she told me that day was Senator Edwards out there for about two-and-a-half hours putting soul down. This was long after the floodwaters went away in the Chantilly section.
LEMON: But he continues to do that. I mean...
CALLEBS: Exactly. LEMON: ... she went around the country with him and then -- like I said, things that you would know from being there -- she went around the country with him and talked about those issues and was invited back today. You interviewed her just last week.
CALLEBS: Just last week.
LEMON: Look -- do you want to listen in to that?
CALLEBS: Yes, sure. Well, we asked her specifically if she was concerned that Senator Edwards was just using her as backdrop -- a way to try and draw publicity. Listen to her answer.
(BEGIN VIDEO CLIP)
ORELIA TYLER, KATRINA SURVIVOR: We all did hear that's the last you're going to see of him. I hear from him. (INAUDIBLE) me -- I call Senator Edwards' office. He is going to be here with the Musician Hall Village. He wants to have you come have lunch with him. OK. I went. He said, you know, when him and Hillary had them debates, he wanted me there. OK. I'm coming.
(LAUGHTER)
And so he said his people I was (INAUDIBLE) and I walked through all the crowds straight up to his office to this -- the woman he was waiting to go out. I just felt like royalty.
(END VIDEO CLIP)
CALLEBS: You know what's really interesting about that, too, there's so much attention that needs to be focused on that area. Super Tuesday, of course, 22 states up for grabs that day. Louisiana's primary is four days after that. A lot of concern that all these candidates who have been out there for so long back on Earth, you know, we're going to do what the Bush administration didn't, we're going to make this area whole. People are wondering just how much attention is this area going to get?
LEMON: Yes. How is it going to get now that John Edwards is out of that? And it's sort of the same thing when it comes to cancer, of course, involving his wife. It brought me right back because that accent...
CALLEBS: Oh, don't you love that?
LEMON: Yes. I was like what is she -- back on Earth? I had to adjust my ears back to figure out the New Orleans. But Orelia O'Neal (ph) is her name. Her son is in Iraq.
CALLEBS: Her son -- he's been in the service, I think, more than a dozen years. He's in Baghdad right now. She's obviously very concerned about her son. She said that perhaps the biggest issue for her right now is Iraq. It's not the Gulf area.
LEMON: We've got to move on, but I want tell you the story. Didn't her mom die recently?
CALLEBS: Her mother passed away two days before Christmas. You're right. John Edwards called right after her mother passed away -- not an aide handing the phone to the senator. He called several times, left messages, then finally reached her and they had a nice conversation.
LEMON: There you go. All right, Sean Callebs, thank you. That's very insightful and some background into what's happening in New Orleans. Thanks. Sean Callebs stationed there in our New Orleans bureau.
Now, if you haven't visited the Ronald Reagan Presidential Library in Simi Valley, California, well, you're in for a treat tonight. That's the setting for the CNN Republican debate a little more than four hours from now. The entire library has been transformed into a studio where our very own Anderson Cooper will moderate. Again, that's tonight at 8:00 p.m. Eastern. And tomorrow, it's the Democrats' turn -- California, hosted by our very own Mr. Wolf Blitzer
And do you want to see how the voters are reacting to the candidates while the debate tonight -- that goes on -- and tomorrow night?
Well, check out CNN.com/live during the California debates to get the real-time reaction from California voters -- CNN.com/live. We're streaming it live as it happens.
PHILLIPS: Putting money in your pocket.
Is the stimulus plan now before Congress the best way to get the economy back on track? We'll tell you.
(COMMERCIAL BREAK)
PHILLIPS: Well, as we expected the Federal Reserve is cutting a key interest rate again -- this time by a half a point. Meanwhile, proponents of the economic stimulus package now before Congress are counting on it to boost the economy. But will it work?
CNN's Kate Bolduan checked with some experts.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT (voice-over): Tax rebates, tax incentives for business, food stamps, unemployment benefits -- some are in and others not. But how do they stack up?
MARK ZANDI, CHIEF ECONOMIST, MOODY'S: Some provide a lot of bang for the buck to the economy and others don't.
BOLDUAN: How well each option works depends on how many additional dollars each buck generates. We took a closer look at the ripple effect. Industry research firm Moodyseconomy.com has tracked the potential impact of each stimulus dollar. The best deal may be one that's not on the table -- food stamps. For every extra in food stamps, the ripple effect would produce $1.73 for the economy. Now follow that dollar. Spent at a grocery store, it, in turn, helps pay the grocery store clerks, the truckers who transport the food and even the farmers who produce it -- simplistic, but true.
ZANDI: It benefits lots of different people all along the economic chain and, of course, that creates income that goes on to be spent on other things.
BOLDUAN: Economist Mark Zandi says that like food stamps, extending unemployment benefits also pays off quickly because people out of work are already getting checks and need to spend the money. Each dollar spent here pumps an additional $1.64 into the economy. By comparison, every dollar in tax rebates produces less -- $1.26.
ZANDI: If someone who is literally living paycheck to paycheck gets an extra dollar, it's very likely that they will spend that dollar immediately on whatever they need -- groceries, to pay the telephone bill, to pay the electric bill.
BOLDUAN: On the flip side, Moody's says business incentives like tax breaks for buying new equipment may not offer as big of a bang. A dollar here would only generate about .35 cents for the economy because...
ZANDI: Because it takes a longer period of time for them to implement any benefits that they would receive in the form of lower tax burden.
BOLDUAN: Now, no matter what's included in the final package, most everyone agrees time is of the essence.
Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
PHILLIPS: And for more information, of course, you can go to CNNMoney.com.
LEMON: Excuse me. The insider chitchat that you didn't hear at the State of the Union speech. Jeanne Moos will tell us what it was like behind-the-scenes there.
(COMMERCIAL BREAK)
LEMON: Well, President Bush seemed to be having a good time at the State of the Union Address. But was everyone happy on the Democrat side of the aisle?
Jeanne Moos looks behind-the-scenes.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice-over): Celebrate or mourn...
UNIDENTIFIED MALE: Madame Speaker, the president of the United States.
(APPLAUSE)
MOOS: It's the last time you'll see this guy making this entrance -- rubbing bald spots, signing copies of his speech.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It's about the third one I've signed for him.
MOOS: Do not expect the next president to greet lawmakers like this.
BUSH: Shays, you're an awesome dude, man. Thank you.
MOOS: But already the spotlight was shifting to the new dude and his rival.
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: How are you?
MOOS: Oh, they were friendly -- just not to each other. But was it a snub? The same day Senator Ted Kennedy endorsed Barack Obama, Senator Kennedy and Hillary nevertheless managed to shake hands before taking their seats. But look who's not looking. Obama denies giving Hillary his back, back on Earth, he was just distracted.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Sort of me turning away -- I was turning away because Claire asked me a question as Senator Kennedy was reaching forward.
MOOS (on camera): One of our favorite things to do at State of the Union is to eavesdrop -- to listen in on the chitchat between well-wishers and the president, as the president leaves the chamber.
(voice-over): President Bush loves using nicknames.
UNIDENTIFIED MALE: Thank you.
BUSH: Bad News, how are you.
UNIDENTIFIED MALE: Are you going to come back next year?
BUSH: I doubt it.
(LAUGHTER)
MOOS: There was chatter about weddings.
BUSH: How's the little bride doing?
UNIDENTIFIED FEMALE: How's the wedding planning coming?
BUSH: Oh, man.
MOOS: That would be planning for the wedding of Jenna Bush, seen here in black at the State of the Union.
BUSH: Thank you.
UNIDENTIFIED CHILD: Mr. President.
BUSH: How you doing, buddy?
UNIDENTIFIED CHILD: You know my sister, Sarah Tucker!
BUSH: Yes, I do.
MOOS: The president also joshed around with openly gay Congressman Barney Frank after Frank brought up his boyfriend.
REP. BARNEY FRANK (D), MASSACHUSETTS: It was my boyfriend.
BUSH: Good. I'm glad.
FRANK: (INAUDIBLE).
BUSH: I'm sure he'd appreciate an open-minded guy like me.
FRANK: I told him that. Absolutely.
MOOS: All this touchy feely stuff next thing you know, a guy will be kissing President Bush.
Whoa. Did you see that? Republican Congressman Christopher Shays gave the 'pres a peck. The last time something similar happened, Senator Joe Lieberman's opponents used it against him. And already, Shays' opponent has posted the kiss to YouTube as if it's the kiss of death.
Forget the State of the Union -- it's the state of their union and their union that seduces the press.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
LEMON: Kyra won't kiss me so I'm going to do this.
PHILLIPS: I'll kiss Wolf Blitzer.
(LAUGHTER)
PHILLIPS: I'd love to kiss that little furry face of his.
LEMON: Yes.
PHILLIPS: Oh, hi, Wolf.
LEMON: Oh my gosh.
BLITZER: Hi, guys.
(LAUGHTER)
BLITZER: A lot of kissing going on in Washington.
Let me tell you what's coming up at the top of the hour.
Two major announcements from two presidential campaigns -- John Edwards and Rudy Giuliani -- they're both bowing out of the race. Coming up, we'll have the reasoning of the fall out and who may it all benefit.
Also, two powerful women endorsing two different Democratic presidential candidates. We're talking to Claire McCaskill and Congresswoman Maxine Waters about their choices. And we're only hours away before a major Republican presidential debate at the Reagan Library out here in California. What the candidates need to do to make a difference.
All that and a lot more coming up in a special edition of "THE SITUATION ROOM."
We're at the Kodak Theater, Kyra and Don, right here in Los Angeles.
PHILLIPS: It sounds good, Wolf.
LEMON: Wolf is like don't say anything. Don't say anything.
PHILLIPS: We'll be watching.
LEMON: All right, Wolf.
PHILLIPS: All right, how do you pick the Super Bowl winner? You're looking at a pigskin picking camel and her record is impressive.
(LAUGHTER)
PHILLIPS: No joke.
Plus, the closing bell and a wrap of the action on Wall Street straight ahead.
(COMMERCIAL BREAK)
LEMON: All right. In the words of astronaut Peggy Whitson, "Yee- haw!" Did you not want to read the story? Is that they gave it to me twice?
PHILLIPS: That was pretty good, Don.
LEMON: Yes. She and fellow astronaut Daniel Tani had just finished hooking up a new motor to look at the solar wings at the International Space Station. It took seven hours of a riskier than usual spacewalk because of the possibility of shock.
Back on Earth, NASA is looking to launch Space Shuttle Atlantis February 7th. That's a week from tomorrow. The 11-day mission originally was set for November. PHILLIPS: Web surfers, news junkies -- these are the videos that you're watching more than anything else at our online archives, CNN.com.
Train versus van -- guess which won wins -- twice? Check out the dash came video.
John Edwards out of the presidential race. See a long report about his campaign right until the end.
And why was this promising young man kicked out of school? It's for doing what teenagers do -- smooching.
Those stories and much more -- fast and free, refreshed all day and night at CNN.com.
LEMON: Super Bowl 42 just days away. And this camel knows who will win. Well, she has a good idea. Princess is her name -- has been predicting football outcomes for a few years now. It started as a radio stunt, but her record is pretty darned good. She went 11 and six in the regular season and she predicted last year's Super Bowl winner. Her handler offers her crackers with team names on them.
So who does a New Jersey camel pick between New England and the New York Giants? Well, come on. She's biased. She like the local team, the Giants. She says the Giants will pull off the upset.
PHILLIPS: The closing bell is about to ring on Wall Street.
LEMON: And then she drank the water and went away and -- Susan Lisovicz is standing by with a final look at the trading day.
SUSAN LISOVICZ, CNN CORRESPONDENT: I am not going to argue with a camel.
LEMON: I knew you were going to say that.
LISOVICZ: The camel...
(CROSSTALK)
PHILLIPS: Exactly.
LISOVICZ: ... New Jersey and so -- actually born in the Garden State. But you know what? We can predict here what people will eat while they watch the Super Bowl. And that is a lot of pizza. So the folks at Dominos today announced something called a pizza tracker -- that you can track your pizza online from the moment you order it by phone to within 40 seconds accuracy when it arrives at your door.
LEMON: Huh.
LISOVICZ: So check it out. It's available at all 3,500 stores.
LEMON: You know, Susan, I just did this other night -- no kidding -- watching the State of the Union. I did that, ordered it online and watched the little clock count down. No kidding.
(CROSSTALK)
PHILLIPS: And we got to hear about his tummy ache the whole next day, as well.
LISOVICZ: And do you get...
LEMON: Hey, how do you say that, then? If it's New Yorker, is it New Jerseyan, New Jersen, Garden Stater? What is it?
LISOVICZ: Garden State is New Jersey. Empire State is New York.
LEMON: No, I mean if you're a -- you know, like you're a New Yorker are you a New Jerseyan -- a New...
LISOVICZ: Well, I'm -- you know, I'm from the metro area. So I love it all.
(LAUGHTER)
LEMON: OK, guys.
LISOVICZ: But I mean -- but I like the fact that the camels are New Jerseyan, of course, going for the Giants, the New York Giants.
(STOCK MARKET REPORT)
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