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President Bush Speaks at Economic Club of New York; 'Ballot Bowl '08'
Aired March 14, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Let's talk to our White House correspondent, Ed Henry, here.
Ed, this is a difficult speech for the president to make right now. The last thing he wants to do is turn a failing economy over to the Republican standard bearer for the presidency, John McCain. But it's -- there's no way to avoid the difficulties Americans are facing right now.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That's right, a tough speech. This president, in fact, saw his own father in 1992...
HARRIS: That's right.
HENRY: ...deal with an economic downturn, lose reelection, of course very painfully.
He is concerned obviously about turning -- having a difficult situation, hurting the presidential campaign of John McCain. And let's put it on the table -- this president doesn't do "I feel your pain" very well.
He's not like Bill Clinton in that way. And you can see him struggling in this speech in how he would characterize how the economy is doing right now.
He didn't want to use the "R" word, recession. You heard him talk about uncertain times, tough times.
He touted the tax rebates that he's already signed into law that are going to go to 130 million homes, but he also noted himself, they're not really going out until late April, early May. So a lot of people in the short term are not going to feel it.
And even in the face of these soaring prices, the oil prices, the consumer confidence going down, the president was trying, nevertheless, to sound upbeat.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: So I'm coming to you as an optimistic fellow. I've seen what happens when America deals with difficulty. I believe that we're a resilient economy, and I believe that the ingenuity and resolve of the American people is what helps us deal with these issues. And it's going to happen again.
(END VIDEO CLIP)
HENRY: Now, on one of the biggest issues, the housing crisis, the president called that the root cause of the current problems in the economy, but he said that while the government can help in small ways, he's very leery of a bailout law, a bad law, as he called it, that could make the situation worse by rewarding, risky behavior in the financial markets. Already back in Washington you have Democratic leaders like Rahm Emanuel saying that they think the country doesn't need right now more speeches of more of the same, they need new policies.
That's why obviously you're hearing talk about the economy so much on the presidential campaign trail. The Democratic candidates obviously want to use this as a major, major issue in November -- Tony.
HARRIS: There he is, our White House correspondent, Ed Henry, with the president in New York City.
Ed, great to see you. Thank you.
BETTY NGUYEN, CNN ANCHOR: Want to take you now to CNN's Ali Velshi and Christine Romans in New York to get some perspective on this.
And as we heard the president speak, you know, he came straight out of the gates talking about this tax rebate plan, how his economic stimulus plan is really going to get this economy churning again. But when you look at those rebates, honestly, guys, realistically, is it really going to do that much?
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Yes, that's a good question, Betty. I mean, President Bush was speaking to the Economic Club of New York, so he had to make sure what he was saying was going to go over well with some of sort of the smartest minds in the economy.
He's right, the economy goes in cycles. We do have downturns. We actually -- the economy often comes out stronger at the end. The bottom line is, what do you do about the one that we are in right now? We can't all take a 50,000-foot view and say it's all going to be better. It fundamentally will.
Is that rebate check going to do it? The economy is one of those things that you have to front-end load solving the problem. Because once the recession starts, and even when they're not big recessions, you lose jobs. And trying to get those jobs back and the revenue that comes from those workers who pay taxes is a very, very big deal.
So what -- there weren't a lot of answers in the speech about what needs to happen right now, unless you believe the president that this stimulus package is the answer.
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, and we go back to what people are going to do with that stimulus check. If you're going to use it to pay down a credit card, like maybe your financial planner would recommend, or you're going to use it as a down payment on tuition next year for your kid in college, you know, that's going to be money that's not necessarily going to be a direct injection right into the malls of this country.
You've also got a question about, if you go and spend it at, you know, a big discount chain or something, who does it really help? Is it a short-term kind of injection and then we still have the same problems, you know, later on?
So, the question is what you do. I mean, what is -- how does the stimulus help the economy and how does it help your economy? I'm a little more worried about your economy at this point.
VELSHI: Right. And when you are spending it, Betty, it's got to go somewhere where it's either creating jobs because you're buying things that are manufactured that it creates demand for, or it's creating jobs because you're creating demand.
We know in February we lost jobs in the United States in construction, in manufacturing, and the retail sector.
ROMANS: Right.
VELSHI: This is the engine of America -- retailing, buying things. We know that that...
ROMANS: Two-thirds of growth, right?
VELSHI: You know, in terms of President Bush, what did he say, the second week of May is when those checks...
NGUYEN: Yes, 130 million households.
VELSHI: Yes. I mean, it's a good question, is it going to work? There are a lot of economists who say get money out into the hands of Americans. That stimulates the economy.
ROMANS: Well, don't forget we have the Fed, too. The Fed has been cutting interest rates, and that's not going to help if you've got a fixed, like, car note or something. That's not going to help that.
Or in some cases it won't help your credit cards. In some cases it will. But that is also other stimulus, monetary stimulus, they call it, that's coming a little bit later, too. So there is a bunch of stuff in the pipeline. There is, and that's what the president was referring to.
NGUYEN: Yes. And you know good and well that those rebate checks for a lot of folks is going to go to pay off some of that debt, maybe even those mortgages as we've been talking about this meltdown.
You know, the economy is issue number one. I know you guys are going to be in full force all next week at noon Eastern talking about this.
Give us an idea of what you got on the plate.
VELSHI: Well, it's very much this sort of thing.
First of all, we know on Tuesday the Fed is likely to cut interest rates again. What does it mean to you? How is it going to affect the rest of your investments?
We're going to be talking about jobs, we're going to be talking about investment, we're going to be talking about credit.
ROMANS: Inflation, too.
VELSHI: We're going to be talking about inflation, housing. You know, the mortgage meltdown, the issues that matter to your bottom line.
We are going to be live here every day, 12:00 p.m. Eastern Time, important information about all of those topics, and your savings.
We're going to answer your e-mails as well. 12:00 Eastern all next week.
ROMANS: Making money, growing your money, spending your money. All these things that are so important to your money and to your bottom line.
VELSHI: And the good news. And the good news. I mean, the opportunities that are out there.
ROMANS: And there are some opportunities.
NGUYEN: Really good news? You're kidding me.
Issue number one all next week.
Thank you both. We do appreciate it.
HARRIS: Boy, that's terrific stuff. Man.
Really good at this, aren't they?
NGUYEN: They are.
HARRIS: All right.
CNN NEWSROOM continues one hour for now, less than one hour from now at 1:00 p.m. Eastern.
But up next, "Ballot Bowl" talking the number one issue.
NGUYEN: The economy.
HARRIS: The economy, and politics, of course.
I'm Tony Harris.
NGUYEN: And I'm Betty Nguyen.
I'll see you tomorrow morning for "CNN SATURDAY."
(COMMERCIAL BREAK)
DANA BASH, HOST: Hello and welcome to this Friday edition of CNN's "Ballot Bowl '08."
I'm Dana Bash in Springfield, Pennsylvania, just outside of Philadelphia, where the presumptive Republican presidential nominee John McCain just wrapped up a town hall meeting.
Now "Ballot Bowl" is the time that we set aside at CNN for you to have a chance to listen to these candidates, Republicans and Democrats, in large portions, large portions of their stump speeches, as they try to get their party's nomination -- at least that is still the case on the Democratic side -- and, of course, as they try to get your vote.
So we try to give you their speeches, sometimes live, sometimes taped, but always it is these candidates in their own words, unfiltered.
And joining me now for the rest of this hour is my colleague Suzanne Malveaux, who is on the other side of the state of Pennsylvania, in Pittsburgh.
Hi, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, hey, Dana.
This is where we're expecting Senator Hillary Clinton. She'll be speaking here later. And then her first stop is going to be at a gas station to talk about gas prices.
We are actually at Soldiers and Sailors Hall. I know you like movie trivia. This is where I'm told "Silence of the Lambs" was actually filmed.
This is where she is going to be talking about issue number one -- that is the economy. She's going to be talking about her own plan when it comes to the housing crisis, when it comes to lowering gas prices, alternative sources of fuel. These are the kinds of things that voters here in Pittsburgh and throughout Pennsylvania are very focused on.
This is also a critical state for Senator Hillary Clinton. Her own campaign really describing it as a do-or-die win for her, moving forward in that April 22nd primary. A hundred fifty-eight delegates that are up for grabs here.
Now, Senator Barack Obama says, yes, Pennsylvania's an important contest, but he also emphasizes as well that there are nine other contests after this one, that he's going to be focusing on that. Clearly, Senator Clinton feels confident that she's got advantages in this state.
You look at the population, you look at the demographics, very favorable to her campaign. We're talking about older voters, female voters, blue collar, Roman Catholic. These are the kinds of voters that she's done very well with in the past, and so she's going to be here, she's going to be throughout Pennsylvania trying to really push forward what she sees as a potential advantage -- Dana.
BASH: Thanks, Suzanne. "Silence of the Lambs" was film there, huh? So, if somebody offers you a glass of Chianti, my advice is to run, run very fast, Suzanne.
But on a much more serious note, you talk about the state of Pennsylvania. Clearly, all eyes right now are on Pennsylvania for all of the reasons you just described, because this is the next big battleground for the Democrats and their primary.
But Pennsylvania, of course, is always a battleground for the fall campaign, which is why Republican candidate John McCain was here today. He was actually here yesterday as well raising some money.
It is going to be a big challenge for John McCain in the fall campaign, and he acknowledged that here today, talking about the fact that the reality is a Republican has not won the state of Pennsylvania -- a Republican candidate -- since George H. W. Bush did in 1988. So it's an important state, but clearly a big challenge, particularly in this political environment.
But one of the things that John McCain did here at the town hall meeting was really rail against what he thinks is a big problem for Republicans, at least the genesis of a problem for Republicans, and that is what he calls wasteful spending in Washington. And he really railed against what happened in the United States Senate last night, that a measure -- a piece of legislation to have a moratorium on earmarks, so-called pork barrel spending, failed.
And not only did it fail, it failed miserably. The vote was 29- 71, meaning only 29 senators voted for that one-year ban on earmarks.
Now, earmarks have been a signature issue for John McCain. So here he really expressed his outrage about that vote.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Last night, my friends, we had -- we had a vote on a proposal to have a moratorium, a pause, a moratorium on pork barrel projects, which, by the way, in the last two years, there was $36 billion in earmark and pork barrel projects on these massive spending bills. Now, we could have had a $1,000 tax credit for every child in America for that $36 billion, or a "bridge to nowhere" in Alaska for $233 million to an island with 50 people on it. -- and pork barrel projects, my friends.
So last night we had a vote on an amendment. You know how many votes that it got in just a pause, a moratorium on these earmark projects? There's 100 members of the United States Senate and it got 29 votes. It got 29 votes, my friends -- six Democrats.
And so, the moral of the story is, there's only one place left in America that they don't get it, they don't get it, that pork barrel spending is out of control and Americans want it stopped, and that's in our nation's capital. And I want to tell you, as president we will veto those bills.
(APPLAUSE)
We will stop it. I will make them famous and I will stop it.
I have never -- I have never asked for, nor received, a pork barrel project for my state, and I'm proud of that. Senator Obama and Senator Clinton have asked for hundreds of millions of dollars.
Senator Obama just revealed today -- or yesterday -- the hundreds of millions of dollars requested he made. Senator Clinton has not revealed the request that she has made. But it's hundreds of millions of dollars of pork barrel projects.
And so they said -- they voted, both of them voted last night, for this moratorium. Well, the first thing they can do if they're against the earmarks is ask that the money that they've gotten, the hundreds of millions that they've gotten for pork barrel projects, not be spent. A lot of that money is not spent.
So just ask for it. If you're against it, say it shouldn't be spent.
(APPLAUSE)
And I'm sure -- I'm sure we could get it through that they wouldn't have to -- that money wouldn't have to be spent.
So I just want to tell you again, we should not be surprised in Washington at the low approval ratings. We should not be surprised. We are spending $3 million of your tax dollars to study the DNA of bears in Montana. I don't know if that's a paternity issue or a criminal issue, but it needs to stop.
(END VIDEO CLIP)
BASH: Republican presidential candidate John McCain speaking just a short while ago here where I am, in Springfield, Pennsylvania.
You heard there really expressing his concern and outrage about the vote that took place last night in the Senate, that he returned back to Washington -- actually went back twice to Washington after coming here to Pennsylvania for a fundraiser. He went back in order to cast that vote, but he was only one of 29 senators to vote for a one-year ban on so-called earmarks.
And Suzanne, there was another -- actually many interesting moments in this town hall, as often happens when you get unexpected questions from voters. And one was, one -- a woman saying some things about Hillary Clinton and Barack Obama, saying, you know, some pretty negative things about them, and actually tried to hand John McCain a doll of Hillary Clinton which he kind of gave to an aide and said -- made the point of saying that it's all fine to have some humor, but wanted to really make the point, as he does many, many times, that he intends to have what he calls a respectful campaign in the fall.
That's really mirroring what his campaign manager said in a lengthy memo to Republicans across the country. So an interesting moment here, especially as you were covering the Democrats, who were really going after one another, never mind what's going to happen with regard to John McCain come the fall.
MALVEAUX: Absolutely, Dana.
Really, I mean, you take a look at what the voters are focusing on, obviously they are focusing on the economy. But there's another dynamic that is taking place between these campaigns, Barack Obama and Senator Hillary Clinton.
A lot of it has to do over gender, over race, identity politics, and how it is playing out here. Both of the sides really trying to take advantage when they see that there's a supporter perhaps that's gone over the line here, perhaps has said something offensive.
We saw that last week when it came to Samantha Power, an aide to Barack Obama, who called Senator Hillary Clinton a monster, and then stepped down. We have since seen this week another controversy, a flap that -- over Geraldine Ferraro saying about Barack Obama that he was in the position that he was in primarily because he was black.
A lot of people took offense to that. And certainly the Obama campaign played that out, put a lot of pressure on the Clinton campaign, essentially forcing Ferraro to step aside, to step down, resign from her position in the finance committee. And also put Senator Hillary Clinton in a situation, a difficult situation, trying to explain all of this before the African-American community.
Take a listen.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): Hillary Clinton is in the hot seat...
UNIDENTIFIED FEMALE: Let's hear it for Senator Clinton.
MALVEAUX: ... facing fallout from racially-charged remarks from fundraiser Geraldine Ferraro. At a gathering of black publishers, she tried to make amends.
SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I rejected what she said. And I certainly do repudiate it.
MALVEAUX: Senator Clinton was full of apologies before this group, as she was confronted with various perceived offenses, including remarks considered racially insensitive that her husband, the former president, made on the campaign trail.
CLINTON: I am sorry if anyone was offended. It was certainly not meant in any way to be offensive.
MALVEAUX: She even apologized for President Bush's lackluster response regarding Hurricane Katrina.
CLINTON: I apologize. And I'm embarrassed that our government so mistreated our fellow citizens.
MALVEAUX: Her aides say this is not a mea culpa tour, but rather a clear message she has not given up on the black vote.
TRACI BLUNT, CLINTON CAMPAIGN: So because the numbers are skewed, and it appears as if we are losing ground in African-American communities, she's not conceding that vote whatsoever.
MALVEAUX: But looking ahead, she certainly has her work without out for her. While Barack Obama has steadily seen his African- American support grow from 78 percent in South Carolina, 90 percent in Virginia, and 92 percent in Mississippi, Clinton has lost ground.
JOHN B. SMITH, NATIONAL NEWSPAPER PUBLISHERS ASSOCIATION: They're open to her, but at this point they're kind of lukewarm because of disparaging comments of some of her people. Not necessarily she.
MALVEAUX: While Clinton tries to minimize the damage, she's leaning on loyalists.
One of her biggest fans is Philadelphia Mayor Michael Nutter, seated in the critical state of Pennsylvania, where she will campaign heavily for that important contest.
(END VIDEOTAPE)
MALVEAUX: And Senator Hillary Clinton's game plan is to deny Barack Obama a clean sweep when it comes to the African-American community. She is putting her face forward here, essentially she said she'll be in churches, she'll be in social organizations, that she's going to be answering the tough questions from the black media.
The message certainly is do not count her out. A lot of black voters I spoke with as well believe that that is a good idea. They agree with her that she should remain engaged.
Coming up after the break from "Ballot Bowl," obviously we're going to be taking a close look at some critical states -- that is Michigan and Florida. That's where they had those contests earlier in January, breaking the party rules. They were punished for that by denying the ability to have their delegates be seated. Well, now there is potential talk and some real negotiations over potential do- overs, those re-votes and whether or not they'll really make a difference.
Stay with us.
(COMMERCIAL BREAK) MALVEAUX: We now look forward to Michigan and Florida, two potential states where there may be some do-overs, some re-votes from those states. Our own John Roberts reporting earlier that there are negotiations and a possible proposal that is on the table, perhaps even looking at a date, the date of June 3rd, for a primary to happen, a do-over in the state of Michigan to be conducted by the state, but reimbursed by the Democratic Party somehow through private fundraising.
I want to bring in a reporter from "The Detroit Free Press," Washington correspondent Deb Price.
Deb, you were also writing about this as well, you've been following the story very closely. Where are we in this process? Do they have something on the table that's concrete?
DEB PRICE, REPORTER, "DETROIT FREE PRESS": Well, where we are right now is we have a blue ribbon panel in Michigan that is working on developing a proposal, and they were working late into the night last night. And it sounds like they may have something that would be suitable to both campaigns.
This blew ribbon panel which includes our senator, Senator Levin, and Debbie Dingell, who is a DNC committee member, they talked with both the Clinton and Obama camps yesterday. And so they would be using that to inform part of the development of the plan.
If it goes through, it looks like it might be June 3. There's still some hurdles ahead though.
MALVEAUX: And what is the idea? What is the plan itself? What's the proposal?
PRICE: Well, the plan would be to have a full-scale primary do- over. And one of the questions that's raised is, how do you screen out people who voted in the Republican primary on January 15th, the one that's now in dispute?
And that's one of the questions, would people sign a document that said they didn't vote, would people say they're Democrats? Exactly how do you screen out people?
In addition to that, we have the money issue. Governor Rendell talked to me this week and said that he thinks he can easily raise $30 million for -- to pay for the redos in Michigan and Florida, so that might be a way to fix the money angle of this. Michigan certainly is not going to ask the taxpayers again to pay for another primary.
MALVEAUX: And what about the candidates themselves, the campaigns? Have they come together? Do they believe that this is a good idea?
I know that Senator Hillary Clinton has been talking -- she got 55 percent the last time. It was 40 percent uncommitted. Obama's name was not even on the ballot itself.
Is she pushing for the do-over, and how does the Obama campaign react to this proposal?
PRICE: Well, I think that both of them have a very big incentive to have a do-over. I mean, Obama less so than Clinton.
Clinton, clearly, if she could come out of Pennsylvania strongly, it could, you know, help her in Michigan. She won the primary last time even with Obama's name not being on there. She still would do well in the state, people think, because she did so well in Ohio. Our state has a very similar demographics.
But it's very important. No one can look at the math for November and see the Democrats winning the White House without Michigan. Our state is absolutely critical to the Democrats, and there is a new report out from Rasmussen Reports saying now that they are putting Michigan in a tossup category for the fall. That's pretty incredible when you think about it, because right now, according to their polling, McCain is slightly ahead of either Obama or Clinton in a general election match-up.
MALVEAUX: Well, a very fascinating story that is developing.
Thank you so much, Deb Price, for joining us.
Obviously it is amazing what is happening, and it looks like there could be something in the works there.
Do we have a sense of when it might be resolved?
PRICE: Well, I think that it might be resolved today. I mean, I know they were working on it last night. They're working on it this morning.
I think there may be some news out today, and I think the pieces are falling together. The legislature is on board in terms of passing the kind of legislation that would be needed. The secretary of state is pulling together what she would need to be doing.
So, I mean, what we've got in Michigan is something that looks like -- at least the momentum is for this Democratic primary mess being resolved, which is very, very much to the Democrats' favor. There are a lot of sour feelings among Democrats and among Independents, and John McCain has always played very, very well in the state of Michigan, and he is doing well there now, clearly, from the polls. So the Democrats need to get this resolved.
MALVEAUX: OK. We'll have to leave it there.
Thank you so much, Deb Price. Appreciate your time.
I want to go live to our own John Zarrella, who is in Miami, obviously covering the Florida side of all of this.
And John, you might have a very different story, from what I understand, that the do-over idea might be falling apart? Tell us what's happening. JOHN ZARRELLA, CNN CORRESPONDENT: I was just going to say, Suzanne, that Deb Price was saying that pieces are coming together in Michigan? Well, they're falling apart here in Florida very quickly.
You know, we had said right along, Democratic Party leaders had said here in Florida, look, you can do a re-vote, a full primary, that's not going to work. It's going to take too much to put that together.
You could try a caucus. Well, that's not going to work in Florida either, because it doesn't bring enough of the electorate into the process.
So, the best option was to try this mail-in vote here in Florida. Well, yesterday the Democratic Party of Florida went ahead, they stepped up to the plate, they said, look, this is a plan, let's put it out there for a mail-in re-vote. Well, before they even got out of the batter's box the plan was being shot down.
(BEGIN VIDEOTAPE)
ZARRELLA (voice over): The state Democratic Party is proposing what's been rumored for a week -- a vote-by-mail primary.
KAREN THURMAN, CHAIRMAN, FLORIDA DEM. PARTY: This has got to move forward. I think the unrest is not good, and I'm ready to try to give them something to look at. If this is not it, then what?
ZARRELLA: The party's proposal also sets up 50 regional election offices where people can vote in person. According to the proposal, this will ensure disadvantaged communities have the ability to vote. The plan needs several stamps of approval before it can move forward. If the Obama and Clinton campaigns don't sign off on it, one Democratic Party leader says it's dead in the water.
THURMAN: We don't want to move forward if this is not what people want to do.
ZARRELLA: And with the ink on the proposal barely dry, there are already concerns. Florida Senator Bill Nelson, the leading advocate for a re-vote, is concerned this plan does not provide a way for the state to verify signatures.
Representative Robert Wexler, an Obama supporter, is not satisfied either.
REP. ROBERT WEXLER (D), FLORIDA: ... is that a mail election would be a chaotic, potentially divisive election that would wind up with two contested elections, not one.
ZARRELLA: State party officials say that re-vote plan will cost between $10 million and $12 million. Between now and April 14th, fundraising to cover the costs and final Democratic National Committee approval. April 30th, last day to register to vote. May 1st, set up the 50 regional offices. May 9th, ballots go out in the mail. June 3rd, primary day. Whether it's this plan, or something else, the national Democratic chairman says there needs to be a resolution for the good of the party.
HOWARD DEAN, CHAIRMAN, DEMOCRATIC NATIONAL COMMITTEE: The issue is here is, do we want to be united at the convention? If we want to be united at the convention, we ought to try to fix this problem now and not wait till the convention to fix it.
(END VIDEOTAPE)
ZARRELLA: So now several Democratic Party leaders here in Florida I spoke with today said it is very, very unlikely, it is growing more and more unlikely as every hour passes, that there can be any kind of a re-vote in Florida. It just doesn't look like it's going to happen now. What they are saying now is it is going to be up to the candidates, to the two candidates, to get together with the Democratic National Committee and come up with some resolution.
But, Suzanne, the problem has been all along that everybody has said, let's have a resolution to the problem in Florida, but then when the Democratic Party of Florida comes up with a plan, everybody says, well, that's no good, but nobody has any alternatives. So it's a very, very bad situation here. People I spoke with today said they are very concerned that there may not be a resolution to Florida before they get to the convention.
Suzanne.
SUZANNE MALVEAUX, CNN ANCHOR: So, John, just to be clear here, if they don't have a solution before they get to the convention, there's no deadline, there's no real goal here, we've got to have this solved, we've got to have this in place by next week or the following week or if -- do they give themselves a window here to keep talking, to keep negotiating?
ZARRELLA: No they don't. I mean they all say -- and you're absolutely right, you know, there should be a window there, but nobody is saying what that window is. They're saying they'd like to get this thing resolved before you get to Pennsylvania where you are. We need to have something in place, is what they are saying, a resolution, before Pennsylvania.
But now there are people that are genuinely concerned that the way things are going, unless the candidates can get together with the DNC and with the state party of Florida and there's really some movement there, based on what happened yesterday and the falling apart of this mail-in vote plan, unless there's some movement on the parts of the candidates, there may not be a resolution, certainly before Pennsylvania, and perhaps not before the convention in Denver.
MALVEAUX: OK, John.
John Zarrella in Miami, thank you so much for the latest update. Obviously a situation still very much in flux.
Coming up after this break, we're going to be taking a closer look at President Bush and more about his plan when it comes to the housing crisis, when it comes to gas prices, obviously putting forward a plan that he believes will resonate with the American people. A very hot topic. Issue number one, the economy.
(COMMERCIAL BREAK)
DON LEMON, CNN CORRESPONDENT: Hello, everyone. I'm Don Lemon, live at the CNN center here in Atlanta. More BALLOT BOWL in just a few minutes. But first, a check on some stories making headlines at this hour.
Issue number one for Americans, your paycheck. Shrinking your investments. Shriveling stocks. Well, they're plunging today and sorry for all the bad news but this is a live snapshot of the Dow Jones Industrials, where many of us have our retirement nest eggs.
Other concerns today, gas is up again. Hawaii and California are already reporting prices above -- above -- $4 a gallon. Oil once again sets a new record and the dollar is at a new low. Just last hour, President Bush talked about the economy. He says it will get a shot in the arm when taxpayers start spending their rebate checks.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The rebates haven't been put in the mail yet. In other words, this aspect of the plan hasn't taken to effect. There's a lot of Americans who have heard about the plan. A lot of them are a little skeptical about this "check's in the mail" stuff that the federal government talks about. But it's coming. And those checks, the secretary assures me, will be mailed by the second week of May.
(END VIDEO CLIP)
LEMON: Well, President Bush also urged Congress not to launch a large-scale effort to bail out homeowners caught up in the mortgage crisis.
The government's ability to eavesdrop on phone calls and e-mails at the center of a showdown today. The House could vote on surveillance legislation after a rare late night closed-door session. It was the first secret session in 25 years. Lawmakers met to discuss the eavesdropping bill intended to help the government pursue terror suspects. President Bush threatens to veto the bill by House Democrats. He wants legal protection for telecom companies that cooperated with the government.
Well, it started peacefully enough, but quickly turned violent. New pictures out of Lhasa, Tibet, today. Gunfire, tear gas and injuries. The violence began after Buddhist monks poured into the streets. Police were attempting to stop them from leaving the monastery for another day of demonstrations. Protesters set fire to vehicles an shops, reportedly leaving up to one-third of the city on fire.
In response, the U.S. is signaling China to halt any crackdown on Tibetan protesters. Meantime, in China's Gansu province, security forces keeping a watchful eye on protests there. About 2,000 Tibetans carried the Tibetan flag to protest Chinese rule in their native land. BALLOT BOWL returns after a quick break. I'm Don Lemon. I'll see you at the top of the hour.
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DANA BASH, CNN ANCHOR: Welcome back to this Friday edition of CNN's BALLOT BOWL '08. I'm Dana Bash in Springfield, Pennsylvania, where John McCain just wrapped up a town hall meeting he had just a short while ago.
Now Springfield is an area just outside of Philadelphia. One of their so-called -- one of the areas in the so-called collar counties. This is, when you talk about Pennsylvania being a battleground state, this is the battleground area of this state.
For those of us who have covered presidential contests in the past, we've spent a lot of time in these areas because traditionally there are a lot of moderate Republicans who live in and around here. They're the suburbs of Philadelphia. Moderate Republicans who really are focused on economic, being economically fiscal -- excuse me, fiscally responsible, I should say, on economic issues and lower taxes.
And you talk to Republicans, they feel that part of the reason why they have been losing these areas -- in fact a Republican has not won the White House since 1988 in Pennsylvania and part of the reason is because they've been losing these particular areas in and around Philadelphia. If you talk to John McCain, he will tell you that a big part of that is because he thinks the Republican Party has lost its way with regard to fiscal discipline and also specifically wasteful spending in Washington. And that is why he was pretty outraged in his town hall meeting here about a vote that happened back in Washington last night. A vote that was very much -- that failed big-time. A vote to try to ban so-called earmarks, or pet projects, for about a year.
Now John McCain, that is one of his signature issues. And part of the problem -- and he recognized that in a Q&A session with the press after his town hall -- is that it didn't just fail because of Democrats, it failed because more than half of the Republicans in the Senate also voted against this one-year moratorium on earmarks. So in his media exchange after the town hall, he actually talked about that. Take a listen.
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SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: Twenty-nine votes in favor of a moratorium on earmark and pork barrel spending, which shows the last place in America where they don't get it is Washington, D.C. Americans want this process stopped. They want the want and waste and mismanagement of their tax dollars stopped. And it indicates the absolute requirement for the next president of the United States, I commit to vetoing every single bill that has a pork barrel or earmark project on it and I am confident the overwhelming majority of the American people will support such action. And, frankly, the inability of the United States Senate last night to get more than 29 votes, which is obviously the will of the American people, is an interesting commentary on how the Congress and the Senate is disconnected from the American people. It tells me that my Republican conference is not responding to the will of the people. I did notice also that only six Democrats, two of them who are candidates for president, voted also for the moratorium. Much smaller number than Republicans, if you're digging for the pony.
But it shows, really, that there is this disconnect. And it's not just Democrats. It's Democrats and Republicans. Americans want this stopped. And the members of our party are very upset about it. And so we're going to have to -- I'm going to have to make them famous as president of the United States.
(END VIDEO CLIP)
BASH: Now there a dig by John McCain at some of his colleagues, Republican colleagues in the Senate, for voting against that one-year ban on so-called earmarks. It's that kind of comment that makes John McCain, as he likes to put it, not the most popular guy in the Republican cloakroom. That's probably an understatement, even though, for the most part, his colleagues have rallied around him now that he is the presumptive Republican nominee. But from his campaign's point of view, they hope that kind of comment is an example, they hope, of why, even though he's a 71-year-old man, that they think that he can try to push himself as a candidate who is an agent of change and a man who wants to change the ways of Washington.
And, Suzanne, certainly that is going to be a big challenge for him. Not only because of those issues, but because of the issue that we've been talking about all hour, an issue that John McCain talked much, much more about on the stump, and that's the economy, especially here in Pennsylvania.
MALVEAUX: You're absolutely right, Dana. A lot of people listening to John McCain, also listening to the Democrats over their economic plans. What are they going to do. There are a lot of people in Pennsylvania, in Pittsburgh particularly, who have lost their jobs. They've lost their homes. They're trying to put their kids through college. They are facing large debt. So, obviously, paying very close attention to those candidates.
We're going to get a little bit more into the details, take a look at this area, as well as the state of Pennsylvania specifically to see how folks are faring here just after the break.
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MALVEAUX: Issue number one, the economy for many voters, but specifically for people in Pennsylvania and Pittsburgh where times have been particularly tough. Our own Alina Cho takes a more detailed look.
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ALINA CHO, CNN CORRESPONDENT, (voice over): Regis Wintermantel never dreamed he'd be doing this one day.
REGIS WINTERMANTEL, REGISTERED NURSE: : His blood pressure is going to end up dropping.
CHO: He's a critical care nurse at Allegheny General Hospital in Pittsburgh. A complete mid life career change. The 42-year-old used to be a purchasing manager at a steel mill. But steel is no longer the driving force of Pittsburgh's economy.
WINTERMANTEL: It has its ups and its downs. And I've seen two downs and I didn't want to have to live through a third down.
Right now, the ventilator will . . .
CHO: So Wintermantel traded in his hard hat for scrubs. He's not alone. Once the steel city, Pittsburgh now touts health care as its number one industry.
BARNEY OURSLER, JOB COUNSELOR: The future of jobs in Pennsylvania is really service industry jobs. That's what's replacing the manufacturing jobs.
CHO: With the Pennsylvania primary just six weeks away, experts say the key to winning here is finding the right balance, drafting an economic message that plays well in Philadelphia and struggling communities like Pittsburgh. For 18 years, Jim Neiman was a maintenance mechanic at a suburban Pittsburgh electronics plant. A month ago, the father of three lost his job.
JIM NEIMAN, UNEMPLOYED MECHANIC: This one, it starts at $9 an hour.
CHO: Now he's looking for work.
J. NEIMAN: What am I going to do? I have a family, kids and all of that, a house payment. How am I going to find another job to be able to provide for my family?
CHO: Wife, Carmi, works part-time at K-Mart. Her salary is barely enough to pay the bills.
CARMI NEIMAN, JIM NEIMAN'S WIFE: You don't know what the future holds for you. It could turn out to be good. It could turn out to be bad.
CHO: Many voters in this state share that uncertainty, but Regis Wintermantel is hopeful. Retrained, working again, in Pennsylvania's new economy.
Alino Cho, CNN reporting.
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MALVEAUX: And voters looking very carefully at the candidates. A split over many different lines. They call it identity politics. Sometimes it's black, white. Sometimes it's male, female. But now something else, too. Not only young and old, but mother and daughters seeing things a different way. We bring you more of that as BALLOT BOWL continues.
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MALVEAUX: Welcome back to CNN's BALLOT BOWL.
There's been a lot of discussion over a Democratic divide. Even couples splitting up, husbands and wives, over who they are going to vote for, who they actually support. But now there is something else that we're taking a closer look, that is the mother/daughter divide. Our own Carol Costello has more.
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CAROL COSTELLO, CNN CORRESPONDENT, (voice over): The Clinton/Obama battle has spilled over to the home front, pitting mothers against daughters. Meet Juana, a 60-something passionate supporter of Hillary Clinton, and her 30-something daughter Lorenza Munoz, an ardent supporter of Barack Obama.
LORENZA MUNOZ, OBAMA SUPPORTER: We actually don't talk politics at the table anymore.
JUANA MUNOZ, CLINTON SUPPORTER: We don't talk.
COSTELLO: Juana and Lorenza aren't alone. CNN exit polls from Ohio show an astounding split. Barack Obama wooed young women voters in large numbers. Hillary Clinton handily won older women, 71 percent to 25 percent.
L. MUNOZ: The reason I'm supporting Barack is that I think that he stands for something new. He does, to me, signify hope.
COSTELLO: Lorenza's mom doesn't quite get that. Hope is Hillary Clinton. Clinton's achievements in a man's world resonate with her, as do Clinton's feminist credentials, which were solidified for many women of Juana's generation when Hillary proved herself a strong person in her own right.
SEN. HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: I suppose I could have stayed home and baked cookies and had tea.
COSTELLO: Those words hit the right chord for a generation that fought for equality.
J. MUNOZ: She's a very, very intelligent person. She's a very strong. And she really is prepared for the job. It will take a woman to really change the women's issues.
COSTELLO: But many younger women think Clinton is admirable but from a different time. They've told me Clinton's vote for the Iraq War was old school, as was Clinton's choice to remain with a husband who was unfaithful. And Lorenza says Clinton's brand of traditional feminism seems old-school, too, since it seems to focus on a single issue -- abortion. L. MUNOZ: The feminist movement that she was a part of that, you know, her generation, to me, has not addressed the bigger issues of my generation, which is that, you know, equal pay, which is child care, which is flexibility on the job.
J. MUNOZ: You cannot believe how angry it makes me.
COSTELLO: So angry that after today they'll go back to not talking politics until November, with this caveat. Lorenza knows full well if her candidate wins, conversation with mom still won't be easy.
L. MUNOZ: I think it's going to be very difficult. Barack is going to have to be like batting 100 because any little thing he does wrong, my mother's going to say, see, I told you!
COSTELLO: Just like a mom. I did ask Juana if she would taunt her daughter if Hillary Clinton won the nomination. And Juana says, no, she loves her daughter, she just happens to be wrong.
Carol Costello, CNN, Washington.
(END VIDEOTAPE)
MALVEAUX: And, Dana, you look at all the different divides, mother-daughter divides, generational divides, it's really interesting what is going to happen later here today. That is Senator Hillary Clinton is going to get the endorsement of Pittsburgh's mayor. And he is all of 28 years old. So not surprising they are happy about that. Kind of reaching out to the younger voters. That really a feather in her cap, reaching out over that generational divide.
Dana.
BASH: Absolutely. I heard an interview with him saying that he couldn't vote in the 1996 election, Suzanne. I mean, that's something to put everything in perspective, I think. Couldn't vote -- actually could not vote for Hillary Clinton's husband and all of that means. So that's very interesting. Obviously I know that this is what you meant, the fact that she's going to get that endorsement. That is something that certainly could hurt the key issue and the key demographics, one of them, I should say, that Barack Obama has really been relying on, and that is the youth vote.
The other thing I thought was really interesting, just as sort of two female reporters here talking, is that Carol Costello package about the generational divide among women in the Democratic Party, it just kind of goes to show how younger women really don't find the female issue as important as older women do. It's really, really fascinating.
And we're going to have more on that and every political issue you can imagine starting tomorrow again at 2:00 p.m. Eastern. That's when the next edition of BALLOT BOWL is going to continue. But stay tuned after the break because that's when "Newsroom" starts.
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