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'Your Wallet'; Atlanta's Downtown Destruction; Political Spotlight on Iraq

Aired March 17, 2008 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


TONY HARRIS, CNN ANCHOR: And good morning, everyone. You are in the CNN NEWSROOM. I'm Tony Harris.
HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.

Watch events come into the NEWSROOM live on this Monday morning, it is March 17th, St. Patrick's Day. Here's what on the rundown.

Investment house falls in a financial storm and the dollar drops to a new low. What does it mean to "Your Wallet"?

HARRIS: Atlanta's downtown destruction. Many workers told to stay home today. Safety a major concern about a tornado touchdown.

COLLINS: And political spotlight on Iraq. John McCain's there. Hillary Clinton in Washington, but both have U.S. troops on their mind, in the NEWSROOM.

Hear that drip, drip, drip? Well, it's more bad news hitting you square in the wallet. This hour, we're going to be keeping a close eye on Wall Street where the futures trading looks gloomy. Expect a dismal open in less than about a half from now. Markets at Asia tanked overnight. Japan's Nikkei closed down 3.7 percent.

One of the reasons, the stunning collapse of Bear Stearns, one of the world's largest investment banks. Its rival JP Morgan Chase agreed to buy it for just a fraction of what it was just days ago. The concern, though, America's credit crisi, only getting worse.

Also overnight, oil prices hit yet another record in Asian trading, and the Federal Reserve shows how serious the concerns are. It took the extraordinary step of lowering its discount rate this weekend. And it's expected to cut interest rates again when it meets Tuesday.

HARRIS: Wow. All this bad news brings us to issue number one making the most of your money in this rocky economy.

Here to break it down for us, CNN's money team Gerri Willis, CNNs personal finance editor, and Ali Velshi is our senior business correspondent.

And Ali, let's begin with you. Let's talk about Bear Stearns and, boy, what this really means. ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: It means right now that we're looking for an open on that stock market in about half an hour. And the Dow, it's going to be more than 200 points lower.

Now I'll tell you what happened. On Friday, we saw that Bear Stearns was in a lot of trouble. It started off the week, last week, one week ago, at $70 a share. But Bear Stearns held about 15 percent of a company called Carlyle Capital and we heard that Carlyle Capital was in trouble.

On Wednesday, Bear Stearns, that's BSC, Bear Stearns's CEO came out and said no problems. The company's fine. There's no liquidity problems. Well, by Thursday, when Carlyle had gone under, people starting taking their money out of -- Bear Stearns and that caused a classic run on the bank.

HARRIS: Yes.

VELSHI: People started taking their money. The stock prices plummeting, by Thursday night it closed at $57. On Friday the Fed, the Federal Reserve and JP Morgan came out with a deal to bail out Bear Stearns. Even with that, the Dow dropped 195 points. The stock dropped to $30. And at the end of the day, we show up on Sunday night and JP Morgan has now made a deal to buy all of Bear Stearns for $2 a share. The $70 a week ago, $57 on Thursday, $30 on Friday and $2 a share.

Well, this has piled on and caused a lot of problem in markets. We had very rough overseas markets all night. European markets, and now we're going to see rough markets here in New York.

HARRIS: Boy.

VELSHI: Also, we saw oil hitting $111.80, but I must tell you, Tony, with all of what's going on we've seen a sudden drop in the price of oil. In less than $108 right now. It's trading at. There's some fear that this economic situation might be so serious that it's going to cause economies including the American economy to drastically pull back on the amount of oil that they use. So you know...

HARRIS: Well.

VELSHI: A lot of moving parts here.

HARRIS: That would be nice if we can get some of the speculation out of that price for a barrel of oil.

VELSHI: Yes.

HARRIS: That would be welcomed. Wouldn't it? I mean come on.

VELSHI: Absolutely would, because over the weekend we saw gas prices, which is how oil affects so many of us, we saw gas prices hit another record high. $3.28.

HARRIS: Yes. VELSHI: So you know, all over, it's been sort of tough news for folks all over.

HARRIS: Anything significant in the Fed action yesterday, because of the discount rate?

VELSHI: Yes. You know, we're expecting that the Fed is going to cut interest rates tomorrow at 2:15 p.m. Eastern. But what they did last night is they cut the discount rate which is 3.5 percent to 3.25 percent. The discount rate is the way in which banks, which have some financial problems, borrow money directly from the Fed. Normally banks borrow money from each other on an overnight basis...

HARRIS: Yes

VELSHI: ...to keep, you know, their reserves in place. If they can't get money from other banks they can go right to the Fed to borrow that money and the Fed lowered that rate. So all of this is designed to keep banks in business.

HARRIS: Boy, a lot on your plate. Ali, keep us posted on all the moving charts, if you would.

VELSHI: Sure.

HARRIS: And let's get to CNNs personal finance editor Gerri Willis right now. And Gerri, we're talking about interest rates. The Fed is expected to make a move on the federal funds rate tomorrow.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right. You know, Tony, expectations out there, widespread expectations that the -- the Fed will cut federal funds rate half a percent to.75. This is a very, very big move that is expected and Ali just described the discount rate was cut over the weekend. And that really applies to banks.

Now you should know that it takes a long time for these cuts to really work themselves into the economy, 9 to 18 months. And it's been 6 months when we first started doing it's big move. I think there'll be a lot of big expectations for consumers out there but I'm not sure it's going to have that big of an impact.

HARRIS: And to the extent it will have an impact, it's probably likely to happen down the road a bit?

WILLIS: Well, exactly. Let's talk about the impact for just a second.

HARRIS: Sure.

WILLIS: You know, the big thing that people are worried about right now, mortgage rates. Will you get some kind of benefit in mortgage rates? I've got to tell a lot people think it's already baked in.

HARRIS: Yes. WILLIS: Let's look at the differences here. Right now, 30-year fixed rate, 6.37 percent. When they started cutting rates six months ago it was a little over 6 percent.

HARRIS: Absolutely.

WILLIS: So we haven't seen a big benefit for consumers out there. When it comes to adjustable credit -- rate credit cards, probably won't see a big impact there. And if you're a saver, now is the time to start paying attention, because CD rates -- these are certificates of deposit that you buy at the local bank -- are headed lower. So bad news for savers. You're going to have to think about where can I put my money now to get a better return, maybe ladder out those CDs.

You really got to start thinking about, where can I go for the best bank for my buck and the best return.

HARRIS: OK.

WILLIS: Lots of questions out there. We're bringing the answers together for you, Tony, at noon today.

HARRIS: We appreciate it.

All right. CNN personal finance editor Gerri Willis.

Gerri, good to see you. Thank you.

WILLIS: My pleasure.

HARRIS: And to Ali Velshi as well.

And a quick reminder here. You would want to keep watching CNN, because all this week our money team has a special report on money issues. It's called "Issue Number One: The Economy."

Today, we will them how the struggling economy affects your job, your savings and debt as well as your home. That's today, noon Eastern, only on CNN.

We also want to hear from you in the NEWSROOM this morning.

How is the economy impacting you? Your family? And your wallet? E-mail us at CNNNewsroom@CNN.com and we will read some of your comments throughout the morning.

COLLINS: Iraq, back in the political spotlight this morning. Vice president Dick Cheney showed up unannounced just hours ago in Baghdad. He's meeting with Prime Minister Nouri al Maliki and the U.S. commander in Iraq, General David Petraeus.

Republican presidential candidate John McCain is there, too. He flew in with the congressional delegation over the weekend. McCain says he is there to see how the so-called surge is working. Senator Hillary Clinton, in Washington delivering what she calls a major policy speech on Iraq this hour. Her Democratic rival, Barack Obama, will be out minding votes in Pennsylvania.

Following events in Baghdad today are chief national correspondent John King.

John, tell us, what is Senator McCain saying today?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well, Heidi, Senator McCain says after two days here in which he received briefings from the general, he had meetings with Iraqi officials and he walked the streets here Baghdad, in Mosul, in Haditha, in Romadi,,

Senator McCain says he is more convinced than ever that the surge policy is working. He said he knows it's a difficult sell back home both in the Congress and in the presidential campaign, but he says he is prepared to make that argument and make it with gusto.

Now the big question facing the United States is the 30,000 surge troop, the additional troops who came to Iraq in the past year, they're rotating home now. The United States will soon get to about 145,000 troops here in Iraq. The Democrats say keep going. Bring more troops home, try to get down to about 100,000 troops or fewer by the time George W. Bush leaves office. He sat down with us today on the balcony of the palace where Saddam Hussein once ruled this country and Senator McCain said his message to the Democrats will be, not so fast.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We probably should hold 15 brigades for a while and see how the progress goes. There some are big fights going up in Mosul right now, and although it's progressing I think it's Al Qaeda's - not al Qaeda's last stand. It's al Qaeda place where they feel that they need to keep Mosul in order to survive.

KING (on camera): This is your eighth visit to Iraq. Based on what you're seen on the ground and as you travel to Mosul, to Ramalah, al-Anbar, your conversations with General Petraeus and others, do you see an end in sight?

MCCAIN: A lot of progress has been made. When Harry Reid and the Democrats said the war was lost last April, they were wrong, they were dead wrong. Now the question is will we be able to continue that progress to the point where the Iraqis take up more and more of those responsibilities and we withdraw? We're not there yet, at least in nigh assessments.

KING: Today back home one of those Democrats, Senator Clinton, who could be your opponent in the fall election, is giving a speech in which she's saying if she is elected the president of the United States, she will start bringing home the troops within 60 days?

MCCAIN: Well, all I can say is that she obviously does not understand nor appreciate the progress that's been made on the ground. The surge is working. So I just think what that means is al Qeada wins. It tell us the world -- they tell the world now that and we fight here again and around the Middle East and their dedication as to follow us on.

All I can say is, that this would be a big issue in the election this week approaching November, because at least a growing number of Americans, though still frustrated and understandably so, believe that the strategy has succeeded.

(END VIDEO CLIP)

KING: Now despite those security gains and his optimistic assessment of the security gains, Senator McCain says he was quite sober about the political advances here in Iraq, says the government is corrupt, the government has not done enough to political ethnic reconciliation, has not done enough to share oil revenues and take other legislative steps, implementing a stronger judiciary system.

But Heidi, Senator McCain says his bottom line messages that the security has improved in Iraq, and while the political progress has not been as quick as he would like, it is his view that pulling more troops out now would cause the security gains to collapse and then he says the political progress would never come -- Heidi?

COLLINS: Hey, John. We also know the vice president arrived in Baghdad this morning, too. Tell us a little bit about what he'll be doing there.

KING: It was a remarkable moment. While Senator McCain was sitting down with us, Heidi, we didn't know it at the time but Vice President Cheney came into the same palace at the same time. He was getting a meeting with General Petraeus and with the Ambassador Crocker. That was one of his agenda items here, to get an update on the U.S. policy.

He also had a meeting with the Prime Minister Nouri al-Maliki. We are told in that meeting, his message was quite similar to Senator McCain's, saying that United States, the patience of the American people is running out and the Iraqi government has to be more bold and more aggressive in implementing the political reforms.

But it was quite striking. Mr. Cheney and his security detail were going up the hall at one moment. Senator McCain and (INAUDIBLE) his colleagues going down another hall. A scene you could see play out in the United States capital playing out in a palace where Saddam Hussein once roomed Iraq.

COLLINS: Yes. Yes. No question.

All right. John King reporting for us live from Baghdad, right in the middle of all the action there today.

Thanks so much, John.

Also I want to let you know, we are waiting to -- well, there she is at the podium. Senator Hillary Clinton also talking about Iraq today. She's calling it a major policy speech on Iraq. It's happening in Washington today. You see her there live at the podium. We will bring a little snippet of that to you just as soon as she gets on the topic, coming up probably any minute now.

HARRIS: Driving to work in the tornado zone. If you don't have to be downtown, stay out. That is the message for Atlanta commuters this morning after a weekend tornado ripped through the heart of the city. There is damage and destruction all over the downtown area, including the CNN Center.

Meteorologist Rob Marciano on the scene not far from where we are.

Rob, we're usually talking about tornado damage to rural areas. It has to be somewhat amazing to see this kind of damage to a major downtown?

ROB MARCIANO, CNN METEOROLOGIST: It is. It's a surreal sight. It can happen, it does happen, you know, it's kind of a myth that downtowns repel tornadoes. It's just really a matter of odds. I mean and when you think about a downtown area, for example, Atlanta, four square miles, that's just a speck on the map. So just the odds alone of getting hit are pretty small.

Well, certainly at 9:38 Friday evening, our time was up. Well, the damage, still very, very evident. You can see what's going on behind me. Take a look. So many landmarks in town have been damaged. There's the Weston Hotel. Even if you're not from here, you fly through that airport, you look at north, you'll see that cylindrical glass hotel. And today, many, many, many of those windows are blown out.

There are probably thousands of glass windows in this city that have been blown out. Not just glass, not just something as fragile at glass. Look at this old brick structure here in the heart of downtown -- looks like a bomb went off there. You can see right through it. We get another glass structure that has windows blown out. And this car right here. Look at that. That's just completely destroyed.

Many of those kind of cars and sights strewn about this city. So with the shock of those people who live in downtown, maybe -- a little bit folks now coming into downtown they can't believe their eyes. The cleanup, though, long road to recovery, but the clean up is certainly under way.

(BEGIN VIDEOTAPE)

MARCIANO (voice over): From chainsaws to cranes, to this guy dangling from a rope. A stunned city went about cleaning up from the first tornado ever to hit downtown. Damage is estimated to be at least $100 million. Much of it done right here around the CNN center.

UNIDENTIFIED FEMALE: And I can't believe that it happened here.

MARCIANO: The destruction is everywhere. Windows blown out. Roofs collapsed. Bricks and rubble on sidewalks. Even this -- someone's suitcase sucked out of a hotel room and dropped on to the street. The city's convention center and surrounding hotels took direct hits. So did the Georgia dome, where thousands were watching a basketball tournament.

UNIDENTIFIED MALE: Nolan is rocking a bit.

MARCIANO: In nearby Cabbagetown, more destruction. An apartment building and 30 to 40 homes destroyed.

UNIDENTIFIED MALE: Some of them trees uprooted, which was there when I was a child. I'm 69 years old now.

MARCIANO: Back in Atlanta, city officials are trying to keep out the gawkers and are encouraging people to stay away unless they're needed to be here. They're also hoping the crowds come back soon. The convention center is losing money by the day, and has two big events coming up.

For now, as bad as it looks, they're happy more people weren't hurt t.

GOV. SONNY PERDUE (R), GEORGIA: Because it could have been much, much, much worse.

(END VIDEOTAPE)

MARCIANO: Certainly could have a little a lot worse for sure. The fact we haven't -- we didn't see fatalities is nothing short of a miracle.

There it is. CNN worldwide headquarters. About half the windows in that hotel and office building blown out. They've got the heavy equipment in there, the cranes, to lift up some of this debris that's strewn about the city. Many of the streets cordoned off. You see the police tape on the one we are at and because of that, people have had to Bob and weave their way to work and traffic has become an absolute nightmare for this morning rush hour on a Monday morning.

The estimations are now $150 million to $200 million in damage in this first ever tornado to hit the downtown area. Certainly it's a real sight. A little less than a mile away I saw the storm come in. But to me it just looked like, hey, you know, a little lightning storm. I can't believe...

HARRIS: Yes. Yes.

MARCIANO: ...the damage that we've seen here in Atlanta. Certainly a surreal sight.

Tony, back to you.

HARRIS: Has to be for you in particular, Rob, because I saw you on the air Friday reporting on this, and to see the aftermath of it, it must be amazing for you.

All right. Rob Marciano for us riding downtown (INAUDIBLE).

COLLINS: Quickly want to get you to Senator Hillary Clinton. She's in Washington today giving what she calls a major policy speech on Iraq. Let's go ahead and listen for just a couple of minutes.

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: ...the president with the strength and determination, the knowledge and confidence to bring our troops home. To rebuild our military readiness, to care for our veterans, and to redouble our efforts against al Qaeda.

If you give me the chance, I will be that president. I will start by facing the conditions on the ground in Iraq as they are. Not as we hope or wish them to be. President Bush points to the reduction in violence in Iraq last year and claims the surge is working. Now, I applaud any decrease in violence. That is always good news. But the point of the surge was to give the Iraqis the time and space for political reconciliation.

Yet today the Iraqi government has failed to provide basic services for its citizens. They have yet to pass legislation ensuring the equitable distribution of oil revenues. Yet even to pass a law setting the date of provincial elections. Corruption and dysfunction is rampant. And last week General Petraeus himself conceded that no one in either the U.S. government or the Iraqi government feels that there has been sufficient progress by any means in the area of national reconciliation.

So by the middle of this summer, when the additional surge forces have been sent home, we'll be right back at square one with 130,000 or more troops on the ground in Iraq. That President Bush seems to want to keep as many troops there after the surge as before, and says that doing otherwise would endanger our progress is a clear admission that the surge has not accomplished its goals. Meanwhile, as we continue to police Iraq's civil war, the threats to our national security, our economy, and our standing in the world continue to mount.

The lives of our brave men and women are at stake. Nearly 4,000 of them have, by now, made that ultimate sacrifice. Tens of thousands more have suffered wounds both visible and invisible to their bodies, their minds and their hearts. Their families have sacrificed, too. In empty places at the dinner table. In the struggle to raise children alone. In the wrenching reversal of parents burying children.

The strength of our military is at stake. Only one of our army brigades is by the army to be ready. Our armed forces are stretched to near the breaking point, with many of our troops on their second, third or fourth tours of duty.

Our economic security is at stake. Taking into consideration the long-term costs of replacing equipment and providing medical care for troops and survivors' benefits for their families, the war in Iraq could ultimately cost well over $1 trillion. That is enough to provide health care for all 47 million uninsured Americans and quality pre-kindergarten for every American child, solve the housing crisis once and for all, make college affordable for every American student and provide tax relief to tens of millions of middle-class families.

Our ability to win the war in Afghanistan is at stake. When I first visited Afghanistan in 2003, I was greeted by a soldier who said, welcome to the forgotten frontline in the war on terror. Since then, the Taliban and al Qaeda have continued to gain new footholds throughout the country, and as a result, the overall terrorist threat as our own intelligence community has noted is growing.

Finally, our leadership in the world, and our ability to confront global challenges, present and future, is at stake. From extremism in Pakistan to nuclear ambitions in Iran and North Korea, to troubling anti-Democratic trends in Russia and Latin America, to the threat of global epidemics and global warming and to the rise of China. The more the world regards us with suspicion rather than admiration, the more difficult it is to confront these challenges.

Despite the evidence, President Bush is determined to continue his failed policy in Iraq until he leaves office. And Senator McCain will gladly accept the torch and stay the course, keeping troops in Iraq for up to 100 years, if necessary. They both want to keep us tied to another country's civil war, a war we cannot win. And that, in a nutshell, is the Bush/McCain Iraq policy. Don't learn from your mistakes, repeat them.

Well, here is the inescapable reality. We can have hundreds of thousands of troops on the ground for 100 years, but that will not change the fact that there is no military solution to the situation in Iraq. And don't just take it from me. In his confirmation hearing, Admiral Mullen, chairman of the Joint Chiefs of Staff, said that without national political reconciliation, no amount of troops and no amount of time will make much of a difference.

We simply cannot give the Iraqi government an endless, blank check. Each passing month we stay in Iraq gives the Iraqi government more time to avoid the hard decisions on how to split the oil money and how to share political power.

Senator McCain and President Bush claim withdrawal is defeat. Well, let's be clear. Withdrawal is not defeat. Defeat is keeping troops in Iraq for 100 years. Defeat is straining our alliances and losing our standing in the world. Defeat is draining our resources and diverting attention from our key interests. Now, withdrawal is not risk-free. But the risks of staying in Iraq are certain.

And a well-planned withdrawal is the one and only path to a political solution. The only way to spur the Iraqis to take responsibility for their own future, and to ensure that we don't bear that responsibility indefinitely. The only way to spur other countries to do their part to help secure stability in the region. The commitment to staying in Iraq has driven President Bush's foreign policy. It looks like it would drive Senator McCain's foreign policy as well, but it will not drive mine.

My foreign policy will be driven by what is in America's national security interests. So it is time to end this war as quickly and responsibly as possible. That has been my mission in the Senate and it will be my mission starting on day one as president of the United States.

For the past five years, I have served on the Senate Armed Services Committee. I have been to Iraq and Afghanistan three times. I have met with our soldiers and military leaders. I have met with Iraqi, local, regional and national elected and other influential officials. Here at home I have attended countless meetings and committee hearings where I have challenged high-ranking Pentagon officials and military leaders investigating the situation in Iraq, probing the facts presented and demanding real answers to tough questions.

And I am honored that more than 30 of America's most seamed former admirals and generals, including two former chairmen of the Joint Chiefs of Staffs and five retired officer of the four-star rank, have endorsed my candidacy. The American people don't have to guess whether I'm ready to lead or whether I understand the realities on the ground in Iraq or whether I'd be too dependent on advisers to help me determine the right way forward. I've been working day in and day out in the Senate to provide leadership to end this war. That's why I co- sponsored legislation with Senator Robert Byrd to de-authorize the word, legislation that would actually end the president's authority to fight it.

That's why I've started laying the groundwork for a swift and responsible withdrawal, beginning in early 2009 by demanding that the Pentagon start planning for it now. And I've introduced legislation ensuring that Congress would be briefed on those plans. And that's also why I'm working to block President Bush's efforts to keep this war going after he leaves office. I've introduced legislation banning him from unilaterally negotiating a long-term security commitment to Iraq, including the possibility of permanent bases.

I believe what matters in this campaign is not just the promises we've made to end the war. What matters is what we've actually done. When it came time to match words with action, because more than anything else, what we've done is an indication of what we'll do. Now, my Democratic opponent talks a great deal about a speech he gave in 2002, and I commend him for making that speech. Speaking out for what you believe is a solemn, patriotic duty. He's asking us to judge him by his words, and words can be powerful, but only if the speaker translates them into action and solutions.

Senator Obama holds up his original opposition to the war on the campaign trail, but he didn't start working aggressively to end the war until he started running for president. So when he had a chance to act on his speech, he chose silence instead. And out campaigning, Senator Obama tells voters that as president he'd withdraw combat brigades from Iraq within 16 months. But one of his top foreign policy advisers told a different story. She told a British television reporter and I quote, "he will, of course, not rely on some plan that he's crafted as a presidential candidate or a U.S. senator."

Senator Obama has said often that words matter. I strongly agree. But giving speeches alone won't end the war, and making campaign promises you might not keep certainly won't end it. In the end, the true test is not the speeches a president delivers, it's whether the president delivers on the speeches.

I have concrete, detailed plans to end this war, and I have not wavered in my commitment to follow through on them. One choice in this election is Senator McCain, who's willing to keep this war going for 100 years. You can count on him to do that. Another choice is Senator Obama, who has promised to bring combat troops out in 16 months. But according to his foreign policy adviser, you can't count on him to do that.

In uncertain times, we cannot afford uncertain leadership. Here is what you can count on me to do. Provide the leadership to end this war quickly and responsibly. Today I'd like to talk about how I will do that. How as president I will bring our troops home, work to bring stability in the region and replace military force with a new diplomatic initiative to engage countries around the world and in helping to secure Iraq's future.

The most important part of my plan is the first step -- to bring our troops home and send the strongest possible message to the Iraqis that they must take responsibility for their own future. No more talk of permanent occupation. No more policing a civil war. No more doing for the Iraqis what they need to be doing for themselves.

As president, one of my first official actions will be to convene the Joint Chiefs of Staff, my secretary of defense and my national security council and direct them to draw up a clear, viable plan to start bringing our troops home within the first 60 days of my taking office. A plan based on my consultation with the military to remove one to two brigades a month, a plan that protects our troops and reduces the risk of attacks as they depart.

As we bring our troops home I will ensure we are fully prepared to take care of them. And their families, once they have returned. I will direct the Department of Defense and the Department of Veterans Affairs to prepare a comprehensive plan to provide the highest quality of health care, disability benefits and social services for every single service member, including every member of the National Guard and reserves as well as their families. And I will make sure this plan is promptly implemented.

In the Senate I'm proud to have reached across the aisle to provide access to TRICARE for all members of the National Guard and reserve, even when they're not deployed. And to have passed my Heroes At Home act to help family members care for those with traumatic brain injury, the signature injury of this war, because I believe that when brave men and women sign up to serve our country, we sign up to serve them, too.

That is why I will also immediately adopt Representative John Murtha's urgent proposal to reduce the strain on our troops by reducing the permissible length of overseas deployments. Going forward, we will ensure that our troops spend as much time at home as they have spent deployed. So every month they spend in the field, they will be guaranteed one month here at home. I will also implement a proposal that I, Representative Murtha and others, have been calling for. Requiring that before any brigade is deployed, the secretary of defense must certify to Congress that it is fully combat ready. Sending brigades that do not meet this standard puts our soldiers in danger and our mission in Iraq or elsewhere at risk.

In addition to removing American troops from Iraq, I will also work to remove armed private military contractors who are conducting combat-oriented and security functions in Iraq. For five years, their behavior and lack of supervision and accountability have often eroded our credibility, endangered U.S. and Iraqi lives, and undermined our mission. Senator Obama and I have substantive disagreement here. He won't rule out continuing to use armed private military contractors in Iraq to do jobs that historically have been done by the U.S. military or government personnel.

When I am president, I will ask the Joint Chiefs for their help in reducing reliance on armed private military contractors. With the goal of ultimately implementing a ban on such contractors. I've already -- I've already co-sponsored the stop security outsourcing act, requiring that security services for personnel at any U.S. diplomatic or consular mission is provided only by federal government personnel.

It's also a time we put an end once and for all to the no-bid contracts that squandered taxpayer money while lining the pockets of the president's cronies. Between 2000 and 2006, spending a no-bid contracts more than doubled, representing half of all federal procurement spending. Today companies like Halliburton are enjoying record profits thanks to a 700 percent increase in taxpayer funds awarded to them. But a recent congressional report identified 100 and...

COLLINS: All right. We've been listening in for quite some time to Senator Hillary Clinton who is giving an address on Iraq, as I'm sure you well heard there to George Washington University. We heard some applause there from a couple of people in the crowd.

I also want to let you know other activity on the issue of Iraq and in Iraq. Vice President Dick Cheney, we are waiting to hear from him as well out of Baghdad. An announced visit there. That chair is his. He will be holding a news conference and possibly taking some questions there. So we'll watch for that to happen. Also, Senator John McCain in the country as well at this time.

So we'll keep an eye on all three of those folks talking Iraq today.

HARRIS: You know, we're also paying close attention to the markets. Just a short time ail ago, the opening bell, New York Stock Exchange.

We're going to bring in Ali Velshi because we have some opening numbers.

And Ali, I will tell you, we actually to log on to CNNmoney.com get ready for today's business news. And I don't think I've ever heard a market preview that sounded quite like this.

VELSHI: Yes.

HARRIS: Predicting a miserable start to the day, and it looks pretty miserable.

VELSHI: If I had hair, I'd have pulled it out. It is just -- this is too complicated to even try and make sense of it.

I will tell you this much. We were expecting, I was expecting a worse open than we're seeing. We're seeing a Dow that is off about 144 points but it was actually up about 180 and it's moved its way up.

Now let me just tell you, I don't have the understanding of why this has happened but oil hit a record of $111.80 sometime in the last 12 hour, in overnight trading. Oil. A barrel of oil is now trading for about $106. OK? So almost $6 has come off the price of a barrel of oil in the last couple of hours in the last couple of hours.

You know, gold, the price of gold is coming down. All sorts of thing, happening in the market today, which, that's probably what's affecting the market right now. In other words, it's not as bad as could be, but we're seeing some relief on the energy side. We're seeing some relief in the commodities. All of the commodities across the board have just gotten cheaper in the last 25 or 30 minutes.

We're not quite sure what's going on in there, but whenever something gets cheaper or something gets sold off it means people are moving money out of that and into something else. And when you look at the market up that's up about 150 points when all indications, remember, Tony, I usually get these -- the opening numbers pretty right because I check on futures.

HARRIS: Yes, you do.

VELSHI: When they're wrong it means somebody's moving money from something that they're selling, like oil and wheat and gold, into stocks. Which leads me to believe some people around the world seem to think that maybe what's happened today with the buying of Bear Stearns by JP Morgan, and other actions the Fed is taking and the Fed's cutting discount rates yesterday, well, the rate at which the banks borrow and the Fed planning to cut rates tomorrow for the rest of us, maybe they're thinking all of this is actually going to come together and work out to help the economy because these are all slightly bullish signs.

So even right we're looking at a Dow that's down 125 points. That shouldn't be a good thing except that we really were expecting a Dow that would have been much lower at this point. So there's a lot going on in here. Again, for the average investor I only tell you this to try and give you a larger picture about where things are going for your own investments. You don't want to be trading in and out of a market like this. You want to do everything possible to have a strategy about your investment that reflects your risk and the amount of time you can invest for it, because this is a mud's(ph) game, sitting around, watching the markets and trading stocks in and out, you know, unless do you this for a living?

HARRIS: Yes. Yes.

VELSHI: It's not worth it.

HARRIS: Very smart, as usual. Ali, we're going to let you go so that you can figure out...

VELSHI: Yes.

HARRIS: ...what's going on over the price of a barrel of oil today.

VELSHI: Absolutely. That' very what's going on wit price of a barrel of oil today.

HARRIS: That's very interesting. All right, Ali Velshi in New York for us.

Also we also want to hear from you in the "newsroom" this morning. How is this economy affecting you, your family and your wallet? If you would, e-mail us at CNNnewsroom@CNN.com. We will be reading some of your comments throughout the morning.

COLLINS: Police want people who work in downtown Atlanta to take the day off. Cleaning up from the tornado, and keeping the streets safe. We'll get an update when we talk with a deputy police chief coming up right here in the NEWSROOM.

ANNOUNCER: The Opening Bell brought to you by...

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HARRIS: Cleaning up and getting back to normal. Atlanta isn't there yet. Won't be for a while. The powerful tornado ripped through downtown over the weekend. Damaging a lot of buildings including the CNN center.

CNN's Veronica De La Cruz is here with a look at the damage right here in our building.

And Veronica, the e-mails this weekend were absolutely crazy. The one I can remember so vividly was an e-mail in all caps. Water coming down the escalator. Water coming down the -- it is a mess there in the atrium, isn't it?

VERONICA DE LA CRUZ, CNN CORRESPONDENT: You know, it really is, Tony. It is eerily quiet. It's like, what, 9:30, 9:45 in the morning, where it should normally be pretty busy. People getting their coffee, people getting their breakfast, people going on about their day. But take a look. It's a virtual ghost town. I mean really the only thing up and running right now is the Starbucks. There's an Arby's, a Gorin's. So a couple of a fast food restaurants open, Tony. And also, if we can pan this way, the one thing that is very popular here in the CNN center is this inside the CNN tour, and now I'm hearing that's going to be shut down until Wednesday. Wednesday will be the earliest that that can be operating. It's all because of this. Take a look. This is the danger zone. That's what they're calling it. They've roped off this area, and it's all because of this huge, gaping hole in the roof here. Now, if you could take a look, they've kind of boarded up the holes with plywood. You see a big net and that's to catch any falling debris. You know, when I was making my way through the CNN center that night, Tony, there was water gushing through that hole. It looks like a waterfall, and this atrium floor was flooded.

Now, they're saying, 65 percent of the roofs is going to need to be replaced. A hundred windows blown out of the CNN center and they're saying about $2 to $3 million dollars done in damage estimated at the CNN center about actually $3 to 5$ million. I'm going to take that back. They're saying $3 to $5 million worth of damage estimated done to the CNN center alone, Tony.

So again, like I said, virtual ghost town here, you know, especially on a morning where it should be pretty busy.

HARRIS: Yes. Well, it also damage to the Georgia dome and the world Congress center, where a number of conventions are held here, and that's going to set back that facility for a long, long time. As we roll into the busy convention season.

Veronica, good to see you. Thank you.

COLLINS: Parts of Atlanta are still considered a danger zone this morning after that weekend tornado. Streets are closed, traffic lights out. Glass and debris all over the street.

Joining me now is deputy police chief, Peter Andresen, who's field operations division commander.

Thanks for being with us. I know it's a busy morning for you. Tell us what your biggest challenges are right now. What are you working on?

DEPUTY CHIEF PETER ANDRESEN, ATLANTA POLICE: Right now we're still on our recovery efforts. Traffic is our biggest problem right now, getting people into the city. We also have two neighborhoods that have been affected, Vine City and Cabbage Town that we're working on.

COLLINS: Tell us a little about what we are seeing behind you. Boy, that is just --you know every keeps saying it looks like war zone. It sounds like such a cliche, but it's undeniable.

ANDRESEN: Amazingly, this is one of the two buildings that got hit along with Congress center. Mostly -- most of our damage downtown is to the windows from the high-rises, besides the two neighborhoods we have. But surprisingly, this is one of the worst sites.

COLLINS: Yes. So what are you dealing with there? I mean as we look at all of that brick and the facade of that building, you know, it's just completely demolished. ANDRESEN: We're working with all the downtown businesses to get their disaster recovery plan so we can work with them when they bring in equipment and block off streets. But until we get the windows cleared out of the high-rises, we're going to have to keep the streets blocked off.

COLLINS: Yes. It's something that people may not be thinking about. They really need to stay clear of this, because some of these structures are unstable, because of that collapse that you mentioned. Listen, how is rush hour going at this point?

ANDRESEN: Rush hour's going pretty good. We put the word out not to come downtown unless you had to. We think a lot of people tried to come anyway. So we've got motor officers out, the traffic and transportation did a good job with the traffic lights, and Georgia, power, of course, getting the car back on for the lights. We've got a few challenges there, but we've got police officers at the main intersections trying to keep traffic moving.

COLLINS: Yes. I have to tell you, we come in pretty early here for this show, but it looked -- it looks pretty good, and it seems like you guys are really on the mark with this. So we certainly appreciate the work and your time here for us today.

Deputy chief Peter Andresen, thanks again and good luck with all the work today.

ANDRESEN: Thanks so much.

HARRIS: OK. Vice President Dick Cheney is in Baghdad right now, about to begin a news conference. General Petraeus and Ambassador Ryan Crocker in the room as well.

Let's listen in.

RICHARD CHENEY, VICE PRESIDENT OF THE UNITED STATES: And it's clear that there are still a number of major issues that need to be addressed, that they are focused on, as a government, and I encourage them to -- and we wanted to work with them to resolve as many of those as possible as soon as possible. You can't help when you come here, after you've been here a few times over the years and watched these events unfold and focus on the fact, this is, this week marks the fifth anniversary since we launched into Iraq, in March of '03, all that has transpired, and not only in the last, what, 14 or 15 months since the surge decision by the president and General Petraeus's arrival with his counterinsurgency strategy, and a remarkable turnaround in the overall security situation and the level of violence both in terms of military and civilian casualties.

That's been a remarkable success, but there's also a great deal that was accomplished before that, including three national elections, the establishment of a government, preparation of a constitution, the elimination of people like Saddam Hussein and his sons, and Abu Musab al-Zarqawi, et cetera. So if you reflect back on those five years, I think it's been a difficult and challenging but nonetheless successful endeavor, and that we've come a long way in five years and it has been well worth the effort.

I think the president's made a number of very tough and difficult decisions that have been carried out by some extraordinarily capable people such as General Petraeus and Ambassador Crocker, and the hundreds of thousands of troops and diplomatic personnel that worked with them. So I'm delighted to be back. I'm pleased to be able to return next week to Washington and report to the president that we are making significant progress in Iraq.

With that, I'd be happy to stop and, Dave, or Ryan, either one of you have -- all right. I guess, Deb Riechmann?

DEB RIECHMANN, REPORTER, ASSOCIATED PRESS: It seems that you have less than a year left -- did you feel that you came here this time with a weaker hand than you did the last time you're here, 10 months ago? And is there any truth to this belief that the Iraqis and possibly other players in the region are simply waiting this administration out? And I have a follow-up if I can do the follow-up.

CHENEY: I -- I think the fact that the president made the decision that he did a year ago January, when he decided not to reduce force levels in Iraq but rather to increase them, and add additional five combat brigades that all of that put to rest any notion that either here inside Iraq or in the region people could, quote, "wait us out." I think it had a very positive effect, not only in terms of what happened on the ground with respect to the actual security situation, but also what happened in terms...

HARRIS: OK. Make a quick transition here. There you see Vice President Dick Cheney in Baghdad this morning holding a news conference, calling Iraq after nearly five years a successful endeavor, while still difficult and challenging.

Let's get you to the White House now, the Roosevelt room. President Bush meeting with his economic advisers this morning, to talk about the troubling signs in the economy. Among the people in the room with the president, Treasury Secretary Paulson, Josh Bolten and others. The president meeting this morning with his economic advisory team and statements coming in just a couple of moments.

The president, obviously, talking about the mortgage crisis, and the credit crunch and the economy, and the worrying signs throughout the economy. President Bush now in the Roosevelt room of the White House.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ..the economic situation but we'll be meeting later on this afternoon with the president's task force on financial markets.

First of all, the secretary has given to me an update. One thing is for certain. We're under -- we're in challenging times, but another thing is for certain that we've taken strong and decisive action. The Federal Reserve has moved quickly to bring order to the financial markets. Secretary Paulson has been -- is supportive of that action, as am I, and I want to thank you, Mr. Secretary, for working over the weekend. You've shown the country and the world that the United States is on top of the situation.

Secondly, you reaffirmed that the fact that our financial institutions are strong and that our capital markets are functioning efficiently and effectively. We obviously will continue to monitor the situation and when need be, we will act decisively in a way that continues to bring order to the financial markets. In the long run, our economy's going to be fine. Right now we're deal with a difficult situation and Mr. Secretary, I want to thank you for your steady and strong and consistent leadership.

Thank very much.

HARRIS: OK. There you have it. President Bush and Treasury Secretary Paulson talking about the economy, the fact that the treasury secretary has been monitoring the situation, particularly Bear Stearns, with the Federal Reserve very closely, in fact, working through the weekend and that the president is saying there that the economy will be fine. Difficult times to be sure, but that the economy will be fine.

As you take a look, just the first 20 minutes or so into the trading day, the Dow down 95 points. But as you can see there, that's actually off of the session lows. The Dow opening down about 120, 140, but now down just 98 points.

Now let's take a quick break and we'll come back with more right here in the CNN NEWSROOM.

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COLLINS: Rebuilding after a bombshell. New York welcomes its new governor today. Lieutenant Governor Paterson taking over for Eliot Spitzer. Spitzer officially resigned at noon today. As you know, he was caught in that prostitution scandal. Then it's inauguration day for the state's first African-American governor. Paterson is already doing some official business. He walked the streets with emergency officials over the weekend after that deadly crane collapsed in Manhattan.

Paterson will be the nation's first legally blind governor to serve more than just a few days.

HARRIS: A search for survivors this morning after, boy, a massive blast at an ammunition depot in Albania. At least nine people are dead, nearly 250 injured.

CNN's Emily Chang has more.

(BEGIN VIDEOTAPE)

EMILY CHANG, CNN CORRESPONDENT (voice over): A mother wails as rescuers carry her 2-year-old son into a local hospital. He's burned over most of his body. The chain of explosions rocked Albania for hours sending thick smoke over a village just six miles north of the capital Tirana. The blast could be felt as far away at Macedonia. It blew out windows at the local airport and left homes standing as skeletons.

"I've lost everything," this injured man says. "My family, my house. I'm devastated."

It happened at an army ammunition dump, where workers were destroying old munitions. Some people complained the workers weren't properly trained.

Albania is working to dismantle tense of thousands of tons of obsolete weaponry with the help of funding from the U.S. It's a condition the country must fulfill to become a member of NATO.

The Albanian defense minister said the blasts scattered artillery shells across a wide area.

FATMIR MEDIU, ALBANIAN DEFENSE MINISTER (through translator): We have isolated the area, but our fear is that the ammunition could be reactivated, because we don't know how much has exploded and how much is left unexploded. The ground is so hot, something could be reactivated.

CHANG: Neighboring villages were evacuated as thousands of troops and police moved into the danger zone searching for more bodies. Albanian officials say more than 120 workers were at the depot at the tile.

UNIDENTIFIED MALE: We transferred during the night five patients to Greece, waiting for patients to be transferred to Italy.

CHANG: Albanian press are calling it "Albanian's Hiroshima." The prime minister said an investigation is ongoing.

Emily Chang, CNN, London.

(END VIDEOTAPE)

COLLINS: Another story that we are getting some news here into the CNN NEWSROOM about. Apparently there has been a settlement of a judge in the Heather Mills and Paul McCartney divorce, has made a ruling in which Heather Mills will apparently get $25 million pounds. So what's that? $50 million.

HARRIS: What?

COLLINS: In these divorce proceedings with the former Beatle.

HARRIS: How much?

COLLINS: Paul McCartney. That would be $50 million.

It says here, though, it's interesting, and we're going to talk with Phil Black in just a little while. We're going to bring him up and get more information on this, because he is working the story for us, but it says that she's not going to appeal. So...

HARRIS: You think? COLLINS: $50 million will be enough for her.

So we're going to take a quick break and be back here in the CNN NEWSROOM in just a moment.

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