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Campbell Brown
Obama Warns of Republican Racial Politics; John McCain Heads North; Mortgage Meltdown Crisis Hits a House Member
Aired June 20, 2008 - 20:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Campbell Brown is off today.
Tonight, here in the ELECTION CENTER, a highly controversial warning directly from Barack Obama's lips. He bluntly says the Republicans will try to make an issue of his race. We have the audiotape. You are going to hear it here.
The Obama campaign also has a new look. Check out the eagle and a Latin motto. Our Tom Foreman translates a piece of political stagecraft that is already drawing criticism.
And John McCain heads north on a trip he insists is nonpolitical. But wait until you hear what he said and the questions he wouldn't answer.
But we start with two late-breaking developments in the presidential campaign. We have this just in to the ELECTION CENTER. CNN has confirmed from Obama aides the senator raised almost $22 million in just the month of May. And get this. For the entire election cycle, counting the primaries, Obama's campaign has raised more than $286 million. And it has $43 million in the bank right now.
Now the second developing story just coming in to the ELECTION CENTER, and it's a little bit more controversial.
At a fund-raiser today in Florida, Senator Barack Obama warned his supporters that the Republicans are going to try to play the race card against him in an effort to simply scare voters.
As always in the ELECTION CENTER, we have got -- we are going to give you have the facts, so you can come to your own independent conclusion. There were no TV cameras at Obama's fund-raiser. But we have obtained an audio recording of what he said. It's a little hard to hear. So, we are also going to put the words up on your screen. Listen very closely.
(BEGIN AUDIO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: We know what kind of campaign they're going to run. They're going to try to make you afraid. They're going to try to make you afraid of me.
(LAUGHTER)
(CHEERING AND APPLAUSE)
OBAMA: They're going to say, you know what? He's -- he's -- he's young and inexperienced. And he's got a funny name.
(LAUGHTER)
OBAMA: Did I mention he's black?
(END AUDIO CLIP)
BLITZER: Let's discuss this and more now with our senior political correspondent, Candy Crowley. She is here.
Candy, you have covered Barack Obama for a long time. Have you ever heard him talk out on the campaign trail about race like this?
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: I will tell you that he said something similar last week.
But, in the primary season, there, very much, he -- at least from the candidate, did not want to talk about race. They didn't want to run as the black candidate. And, so, even when you had criticism, as they did all through the campaign, that the Clintons were being racist or that one of their surrogates were being racist, it did not come from Barack Obama.
Remember Geraldine Ferraro? Everyone thought when she said, well, Barack wouldn't be where he is if he weren't a black man, and everyone said, oh, that is racist. He was asked directly, is it racist? He said, no, I don't think so. I just think the premise is wrong and that kind of thing.
So, we have moved obviously from primary to a general campaign. And now it's a different thing. So, perhaps he is trying to draw the sting of what he thinks is going to come. I'm not totally sure what to make of it at this point.
BLITZER: Yes. We will follow up, though.
There's another story that is developing now. And it involves a Republican, Chuck Hagel, the senator from Nebraska, outgoing senator from Nebraska, who said this today.
Let me read it to you: "I think anybody -- anybody would have to consider it. Doesn't mean you would do it. Doesn't mean you would accept it. Could be too many gaps there. But you would have to consider it."
He is referring to the possibility that Barack Obama, the Democrat, could tap him to be his vice presidential running mate.
CROWLEY: Well, you know, he was asked about it because Hagel's name has been out there, and in large part because Hagel has been against the war. He's also fought the Bush administration on a number of things.
I think right now you are going to hear that. I think we just can that answer right now to just about everybody and say, yes, well, we would have to consider it. Chuck Hagel, as much as he disagrees with John McCain on the war, he is a friend of John McCain's. So, there always is a personal side to politics. So, I sort of see it as a long shot that Obama would pick him and a long shot that Hagel would take it, but it's the season.
BLITZER: And on some of the key issues, cultural issues, whether abortion rights, or gay rights, or gun control, he is a conservative, very conservative Republican.
CROWLEY: Yes. And as long as you -- you can talk all you want about a bipartisan administration. It's a little difficult to have a vice president who is not in line with, you know, where you want to take your policies.
BLITZER: But what does it say about the Republicans this year if you have someone of Chuck Hagel's stature, even his name being floated out there, for a Democratic vice presidential running mate?
CROWLEY: I think probably it -- look, the Republicans don't need to know that they're in huge trouble this year. They see it every day. They hear it every day.
Even if they weren't, it wouldn't surprise them coming from Chuck Hagel. He has developed, as you know, quite a reputation among Republicans as someone who is one of those ornery Nebraskans.
(LAUGHTER)
BLITZER: All right, Candy, thanks very much.
A very busy day in politics today, so, here is something we're calling "Five For Friday," the top five stories that smart people will be talking about this weekend. We will give you the facts, so you can make up your own mind.
For that, we turn to Tara Wall, deputy editorial page editor of "The Washington Times" and former senior adviser to the Republican National Committee, and Jonathan Prince, Democratic strategist, former deputy campaign manager for John Edwards, and a former Clinton White House adviser.
Guys, thanks very much for coming in.
JONATHAN PRINCE, DEMOCRATIC STRATEGIST: You bet.
BLITZER: Jonathan, let me start with you.
PRINCE: Sure.
BLITZER: How would Democrats feel -- and you are a good Democrat -- about having a Republican a heartbeat away from the presidency, in other words, referring to Chuck Hagel? Is this something Democratic Party activists could realistically accept?
PRINCE: Well, I think it is a very intriguing possibility. And the reason that I think it is intriguing, the reason I am not surprised that Senator Hagel would consider it the reason frankly that I can imagine Senator Obama considering it are all kind of connected. The big issue of the day of course is the war in Iraq. And Senator Hagel has been an honest, forthright leader against the war for a long time, defying his party, defying the president.
And, then, of course, you have Senator Obama, who has been against this war with great foresight from the very beginning. So, one thing we really need to do in this country -- and Senator Obama has really staked out a position as someone who wants to bring the country together and rise above politics as usual -- we really need to move the country together and end this war. And to kind of send a signal to the country that Democrats and even some Republicans are united in pursuit of a new policy in Iraq, a new policy around the world, and that is in our best national security interests, I think it's fascinating. I think it could be very compelling.
BLITZER: All right.
Tara, let me ask you what I asked Candy. What does it say about unity within the Republican Party that an influential senator like Chuck Hagel still hasn't endorsed John McCain?
TARA WALL, DEPUTY EDITORIAL PAGE EDITOR, "THE WASHINGTON TIMES": Well, you know, I think it is (INAUDIBLE) a notion as has been stated.
But, at the same time, I mean, it is no different than what John McCain has done with Senator Lieberman. I think you -- you know, there are a plethora of issues that Republicans -- Republicans support John McCain for and a plethora of issues that they still have problems with him on. So, that is no big surprise.
I think, with Chuck Hagel, it's the notion. It's fodder, but I don't think that there will be much made out of it in the long run. I do think it is a long shot. And, quite frankly, if Barack Obama were trying to appeal to some moderates and independents and Republicans with this type of candidate, he just threw that out the window with some of his remarks, as we will get to in just a few minutes.
BLITZER: Let's talk, Tara, about a second subject that we want to discuss.
Obama, you heard him taking on the issue of race in that fund- raiser down in Jacksonville, Florida, today, something he hasn't done in the past. What do you think? Is this a new strategy we're seeing?
WALL: You know, I think it's quite troubling and disappointing, quite frankly, I mean, this coming from the candidate who is supposed to be above this and was supposed to get beyond this and not make race an issue.
I think that there is going to be a lot of outrage about these comments. I mean, this is the epitome of fear. He wants us to talk about fear. The epitome of fear is injecting fear in this way by saying, they're going to make you fearful of me. And I think that that is quite -- this is part of -- one of the strategies Democrats did in 2004 and 2006 was to say, let's claim that there's intimidation at the polls, even when there isn't intimidation.
So, I think that this is really a bad move for Barack Obama. Quite frankly, he ought to apologize, because he has essentially set the standard of transcending race...
PRINCE: Come on, Tara.
WALL: ... and now is -- no, and now is injecting race. It is an insult, quite frankly.
BLITZER: All right, go ahead, Jonathan.
PRINCE: All he did is say what everyone in America knows, what everyone in America has seen since Willie Horton, that, every time they can, the Republicans use race as a weapon. They are willing to inject any card you possibly can.
And Senator Obama is right to point out that the politics of fear, which have defined the way this Republican Party has pursued presidential elections for decades now, is something that they're going to try and insert into this election.
(CROSSTALK)
BLITZER: Jonathan, do you really believe -- do you really believe, Jonathan, that John McCain would use race as an issue in this campaign?
WALL: No.
PRINCE: Do I believe that John McCain himself...
WALL: No.
PRINCE: ... is going to go out there and necessarily use race? Not necessarily.
(CROSSTALK)
PRINCE: Do I think that the whole web of Republican attack machines out there are going to go out and try to make people afraid of Barack Obama, like they tried to make people afraid of John Kerry? The whole Bush reelection campaign was premised on the notion that, if you support Kerry, you are going to risk your lives with terrorists.
They are going to try and make people scared of Barack Obama. That's what they do. They have been trying to win presidential elections through fear for as long as I can remember.
WALL: This is fear. This is the epitome of fear, by citing fear when there is no fear. This is what, quite frankly, many liberals have done to get the communities all razzled up in fear, fearful about fear, essentially. (CROSSTALK)
PRINCE: John McCain injected Hamas into the race. That's the politics of fear.
(CROSSTALK)
WALL: The difference here is that Barack Obama has said he is the one that is going to rise above this and not interject it.
(CROSSTALK)
WALL: And, quite frankly, he did not raise this issue when Bill Clinton injected race into the race and made these comments.
(CROSSTALK)
WALL: And, so, only now, he sees it appropriate to inject race when he is going up against Republicans.
And what is this going to say to some of these moderate Republicans that may vote for him?
(CROSSTALK)
PRINCE: Do you think Senator McCain ought to apologize for injecting Hamas into the race? Because that's politics of fear. That's politics of fear.
(CROSSTALK)
BLITZER: All right, guys.
WALL: No.
Quite frankly, that is a legitimate foreign policy issue, when you're talking about sitting down with leaders who see no problem with Hamas and others who want to obliterate Israel.
BLITZER: All right. Guys, stand by for a moment. We have more to discuss. We're going to continue this, including a little discussion on the former president -- that would be Bill Clinton -- who has gone missing in action. And we are going to get your take on why Bill Clinton hasn't endorsed Barack Obama yet.
Plus, some brand-new stagecraft from the Obama campaign. Wait until you hear what the Latin motto actually means.
(COMMERCIAL BREAK)
BLITZER: Back now for our "Five For Friday" panel and another of the political stories smart people will be talking about this weekend.
John McCain's trip to Canada. If you're wondering what he was doing up north, here's what he had to say. Listen.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: There aren't any electoral votes to be won up here in the middle of a presidential election.
(LAUGHTER)
MCCAIN: But there are many shared interests that require our attention today. And many Canadians here, I am very proud to call my friends.
(END VIDEO CLIP)
BLITZER: So, the trip wasn't about votes, or was it?
Before you make up your mind, let's continue our discussion with Tara Wall and Jonathan Prince.
Tara, John McCain, in, of all places, Canada, he spoke to the Economic Club of Canada in Ottawa about NAFTA. Is this trip to Canada really the best use of McCain's time right now? What do you think he got out of it?
WALL: Well, right now, both the candidates have some time on their hands before the nominating conventions.
I think, when we exchange about $560 billion with Canada, it's a legitimate issue. And I think he wants to shore up that, you know, trade policy issue, NAFTA, with a distinction between he and Barack Obama. He wants to -- McCain is essentially saying, NAFTA is still a good thing. We're trade partners. We export goods. Canada's the largest export market for 36 of the 50 United States.
So, he wants to contrast the importance of maintaining that with some of the remarks that Senator Obama has made about NAFTA, in regard to tweaking it and challenging it and that kind of thing.
(CROSSTALK)
BLITZER: All right. You got a problem with that, Jonathan? Jonathan, you got a problem with McCain going to Canada?
PRINCE: Here's what I think about it.
I think, clearly, trade is a legitimate issue, and it's something that Senator McCain ought to be talking about. It's not surprising to me he would rather talk about supporting NAFTA in Canada than Michigan or Ohio or North Carolina, all those states where it's cost people jobs.
But I do think it bespeaks a little bit of a lack of decorum on Senator McCain's part. For decades, politicians of both parties have understood that you don't attack other politicians in a race from foreign countries. And now this year, we have seen first President Bush do it from Israel and now Senator McCain do it from Canada. Really, I think it's kind of beneath them. BLITZER: Let's get to another subject, Tara, the news from the Obama campaign announced today, that, in one week, we will see the first major joint campaign event featuring Hillary Clinton and Barack Obama side by side. It will be a great photo opportunity.
How much do you think this will actually help his campaign? And does it also help Hillary Clinton?
WALL: Well, I think -- actually, I think it will help Senator Obama. I think that it will help him in ways more so with some of the women voters that are still on the fence.
He has seen quite a bump, at least with more women voters. McCain is going to have to close that gap a little bit. But I think that she will help in that regard. That's really the only way I can see her helping at this point. But it's not surprising. This is something she said she was going to do. I think that the party, the Democratic Party expects her to do that. And I think there will be more to come.
BLITZER: What do you think, Jonathan?
PRINCE: I think Tara's right. And I think, frankly, helping with women is a great thing.
I think -- I have said this to you before, Wolf. My prediction is that, besides the folks on the ticket and their spouses, I would bet Senator Clinton will be Barack Obama's biggest campaigner.
BLITZER: Senator Clinton will.
All right, which raises the question, our fifth question right now. Hillary Clinton, as we say, will be with Barack Obama next Friday. But what about her husband, the former president? He's been uncharacteristically quiet over the past couple weeks.
I have asked David Axelrod, Obama's chief strategist, about this just a few hours ago. I want you to listen to what he told me.
(BEGIN VIDEO CLIP)
DAVID AXELROD, CHIEF OBAMA CAMPAIGN STRATEGIST: Senator Obama has respect for President Clinton. There are only four presidents alive, and he's a repository of unbelievable insights and wisdom about government and politics. I know that they're going to get together, they're going to have the opportunity to speak, and that he's going to -- and that he's going to be someone who Senator Obama consults with not just during the campaign, but after the campaign.
(END VIDEO CLIP)
BLITZER: All right, Jonathan, you worked for President Clinton when he was in the White House.
PRINCE: Sure did.
BLITZER: What do you think? Are they good to use him or are they going to keep him at sort of arm's length?
PRINCE: Oh, no. I suspect that Senator Clinton will be out -- I mean -- excuse me -- President Clinton will be out there campaigning aggressively for the ticket.
And I also think that, frankly, it's not surprising that he's taken a little time off and given Senator Obama some time. He's the last Democratic president. He ought to -- it's the gracious thing to give Senator Obama some time to really be out there as the leader of our party and consolidating the party behind him. So, I think it makes perfect sense
But I suspect he will be out there in full force, like he was for Senator Kerry.
BLITZER: Is going to be a big help or would he be a distraction, Tara? What do you think?
WALL: I don't think -- I think he will be the opposite of Hillary Clinton. He will do nothing to help Senator Obama.
I think that he will probably play a very limited role. He will spend most of his time going back and making money and doing his humanitarian work. I think he still has left quite a bitter taste in Barack Obama's mouth.
BLITZER: We will leave it there, guys.
Jonathan, Tara, thanks for coming in.
PRINCE: Thanks, Wolf.
WALL: You bet.
(CROSSTALK)
BLITZER: And coming up, you remember William Jefferson, the Louisiana congressman caught with $90,000 stashed in his freezer. Well, it seems that, for the Jeffersons, legal troubles are all in the family. We have more information on his relatives' day in court -- Joe Johns standing by.
And too little, too late? FEMA finally delivers much-needed supplies to the victims of Hurricane Katrina, thanks to our investigation.
We will be right back.
(COMMERCIAL BREAK)
BLITZER: Now a case of better late than never.
This is a story we broke right here on CNN. And it's making a real difference in people's lives.
Nearly three years after Hurricane Katrina, extra help, finally, finally getting to Louisiana. It turns out that FEMA, the Federal Emergency Management Agency, spent years hanging on to millions of dollars worth of household items intended for the storm victims. The oversight only came to light when Abbie Boudreau of CNN's Special Investigations Unit started asking questions.
She's in New Orleans right now watching the supplies finally, finally arrive.
Tell our viewers, Abbie, what happened.
ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Well, Wolf, right now, I'm standing in the warehouse where earlier today all of these supplies were delivered.
Starting next week, the community groups will hand out these supplies to the victims of Hurricane Katrina.
(BEGIN VIDEOTAPE)
BOUDREAU (voice-over): Three trucks rolled in this afternoon full of brand-new household supplies that will at last go to Hurricane Katrina victims, the people who should have gotten them years ago.
MARTHA KEGEL, EXECUTIVE DIRECTOR, UNITY OF GREATER NEW ORLEANS: This is the stuff that our clients so desperately need to have a chance at putting their lives back together. This is how they will do it.
BOUDREAU: But it only happened after CNN uncovered FEMA had given away $85 million worth of new supplies, brand-new items that had been sitting in warehouses for two years. FEMA declared the items surplus, offering them up to federal and state agencies. But Louisiana said, no thanks. A state official there claimed no one had told him the supplies were needed.
SEN. MARY LANDRIEU (D), LOUISIANA: I don't know what FEMA was thinking when it gave away $85 million of taxpayer items. They need to start thinking straighter about this.
BOUDREAU: It was a situation that sparked outrage from U.S. Senator Mary Landrieu, who took immediate action. Her office was able to locate thousands of items in Texas, where they had not yet been distributed.
Today, in New Orleans, it was quite the scene, as some of those supplies arrived in trucks, supplies that Katrina victims, like Debra Reed, say they still desperately need.
(on camera): And what do you think when you're watching all these items coming off this truck?
DEBRA REED, KATRINA VICTIM: I think I'm going to get a new pot set.
(LAUGHTER) REED: It's a blessing. It's a blessing in disguise. Thank God. And it's going to help not just me, being a homeless person, but other homeless in the city of New Orleans that UNITY and Volunteers of America are trying to help.
BOUDREAU (voice-over): Reed was homeless after Katrina.
REED: That done be the tent right there. That's my tent.
BOUDREAU (on camera): This one right there?
REED: Yes, the little-bitty one.
BOUDREAU (voice-over): She ended up living in a tent under this bridge for eight months.
(on camera): This is what you lived in for eight months?
REED: I used live in it eight months.
BOUDREAU (voice-over): Then, with the help of UNITY of Greater New Orleans, she moved into an apartment, a new home, but no supplies, other than a couple of pots and pans, a story all too common for UNITY'S director, Martha Kegel.
KEGEL: These supplies represent hope for people who have completely lost hope. These supplies represent the way in which people will get their lives back together, people who are disabled, people who are elderly, the most vulnerable people who have lost everything in the storm.
BOUDREAU: Senator Mary Landrieu and Louisiana Recovery Authority executive director Paul Rainwater now promise policies will change, saying it's time FEMA be held accountable.
LANDRIEU: It's just a shame that this link, you know, collapsed in this chain of help. But we have seen this over and over again with FEMA. They're improving, but not fast enough.
PAUL RAINWATER, EXECUTIVE DIRECTOR, LOUISIANA RECOVERY AUTHORITY: It's about people like Debra Reed. It's about people who need goods and supplies to help bring their lives back together. And, so, what the governor's asked me to do in the last six months was cut through the red tape. And there's got to be a better way to do this. And that's what we're going to work towards.
We're going to put protocols in place, so that people like Ms. Reed don't have to go to CNN and say, please find us something. So, CNN, thank you for what you did as well.
(END VIDEOTAPE)
BLITZER: So, Abbie, what exactly came out on those trucks today? What's in those boxes behind you?
BOUDREAU: Well, Wolf, there are 1,500 boxes of brand-new pots and pans. And these are exactly the type of items that are going to help Katrina victims start rebuilding their houses. Just simple pots and pans, the basic supplies are going to help them rebuild their lives.
And to tell you the truth, it's really hard to imagine that these are the same exact boxes that had been sitting in FEMA warehouses for the last two years, just sitting there collecting dust, completely unused, when there are so many people out there that still are in desperate need of help -- Wolf.
BLITZER: Abbie Boudreau, doing excellent work for us, thanks very much. Appreciate it. A lot of people in Louisiana appreciate it as well.
Another big story with major political implications developing right now in Louisiana. Up next, what happened when a powerful Louisiana congressman's relatives went to court today? Joe Johns standing by.
Later, the mortgage foreclosure crisis hitting home on Capitol Hill. We will tell you which lawmaker could lose a home -- or two.
(COMMERCIAL BREAK)
BLITZER: There was a time, not that long ago, when Louisiana Congressman William Jefferson commanded respect and clout on Capitol Hill.
But now the nine-term Democrat is charged with accepting a bribe, thousands of dollars in cash that ended up in his freezer. But get this. Jefferson isn't the only member of his family who's facing serious legal problems right now.
Joe Johns is working the story for us. And he's got details. What are you picking up?
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Wolf, it's been quite a week for the Jefferson family of Louisiana.
First, Democratic Congressman Bill Jefferson, who is under indictment, announced his plans to run for reelection. Now three of his family members are contesting felony charges against them, while a fourth family member, Brenda Jefferson, just pleaded guilty to concealing a crime.
(BEGIN VIDEOTAPE)
REP. WILLIAM JEFFERSON (D), LOUISIANA: I feel fine. It has nothing to do with me and my service to people. And they all know my record here. I'm sorry to hear that, of course, but it doesn't have any effect on me.
JOHNS (voice-over): Congressman William Jefferson adheres to rule number one in politics: Never let them see you sweat. He's under indictment on corruption charges. He's still at work and has in fact just announced he's running for reelection. That's right, the guy who got caught with $90,000 of FBI sting money in his freezer is asking voters back home in New Orleans for another term.
Jefferson is awaiting trial and he says he's not guilty, that there's an honorable explanation for the money. Some say he has no business still being in Congress.
TOM FITTON, JUDICIAL WATCH: You know what the rule is in the House? You are supposed to act in a way that doesn't bring disrepute upon the House, and certainly he's done that.
JOHNS: But the congressman and his sister, Brenda, aren't the only ones allegedly on the wrong side of the law. Another sister, 70- year-old Betty Jefferson, along with his 66-year-old brother, Mose Jefferson, and their niece, 53-year-old Angela Coleman, pleaded not guilty Friday to fraud, conspiracy and other charges. Allegedly they were ripping off charities and educational programs for needy, at-risk and disadvantaged young people.
The Jefferson legal team says there is no connection whatsoever between the case involving these family members and the case involving the congressman. Even if the family troubles are unconnected, legal observers say he's going to have a hard time explaining away that cold hard cash.
JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Any case where you can say a congressman had $90,000 cash in his freezer, that starts out as a pretty good advantage for prosecutors because what legitimate reason can you have for $90,000 in your freezer. But Jefferson will have some explanation, and the question is, which one the jury will buy.
JOHNS: On the other hand, Jefferson has one big advantage. An appeals court threw out evidence obtained in an FBI search of his congressional office saying it was unconstitutional. That decision infuriated judicial watchdogs.
FITTON: Their offices were never meant to be protected from criminal court process. No one else in America has that type of protection. Yet members of Congress do.
(END VIDEOTAPE)
JOHNS: With the election just a few months away, the big picture for Jefferson looks bleak. According to the congressional forums, Jefferson raised just $20,000 in 2007 for his legal defense fund. Not much for such a complex case. And while he's face down legal troubles before, this is the first race he's run under indictment -- Wolf.
BLITZER: All right, Joe. Thanks very much. We'll watch it with you.
Still ahead, another member of Congress feeling the pain of the mortgage foreclosure crisis.
And here's a political question, what's round, has a picture of an eagle and even a Latin motto? It isn't the presidential seal. It's a bit of stagecraft you won't want to miss.
(COMMERCIAL BREAK)
BLITZER: Neither the heartache in the heartland, where communities are being swamped tonight upriver from St Louis. The Mississippi continues to crest southward and already more than 20 levees have been topped or breached, unleashing floodwaters on farmlands and homes miles beyond its normal banks. Many more of the barriers against the cresting river right now in jeopardy.
Our meteorologist Reynolds Wolf is at a levee in Old Monroe, Missouri, about 40 miles north of St. Louis.
Reynolds, how does it look?
REYNOLDS WOLF, CNN METEOROLOGIST: Well, this is kind of a dire moment right now, Wolf. We're on a levee that is right here at the Jones farm that was constructed back in 1974. It's held up fairly well over the years, but take a look. We see some water that's beginning to seep through from one side, starting to affect this crop -- a very young crop of corn on this side.
But if you look on the other side of this levee, this levee, by the way, not protected by any sandbags. Let's cross over to the other side. And as far as you can see way off in the distance, you've got some of the Mississippi River that is spilling over that levee and flowing into this field.
Now, to those of you at home, you take a look at this, this looks like dirt, doesn't it? Well, watch this. Not so much dirt. These are corn stalks that have been popping up and give you a better illustration again.
I'm not going to get too deep in here, Wolf. This goes out to about some 10 feet and then it just drops off considerably. I don't want to go that deep, but you can see what we're dealing with here.
The problem is, this is a scene that's been playing out all over this region and many people are going to be dealing with this. And, well, I'll tell you, the family here, the Jones family does plan, does expect these waters is going to seep their way right back here onto this side and these crops will be a total loss. It is a rough situation. Let's send it back to you in New York.
BLITZER: Around millions of acres -- millions of acres under water, that cropland. All right. Reynolds, thank you.
Let's find out more about what's yet to come. Our meteorologist Chad Myers is at the CNN Severe Weather Center. Chad, is a change in the weather going to give these hard-hit areas some relief?
CHAD MYERS, CNN METEOROLOGIST: I think so, Wolf. We're going to probably get an inch or maybe an inch or two of rain in anyone of these areas over the weekend in the next 48 hours. That's great news.
There are some showers now. But I want you to see this radar and I want you to see -- I want you to notice something on this radar. These showers are spread out from New York to Denver, all the way down to almost New Mexico.
And here's what's going to happen the next 48 hours. This rain is, again, going to spread itself out. There's no real heavy light spots there, no reds, oranges or purples. So an inch or two will be just fine.
Here's some of the pictures though from today. St. Charles County, and if you live near St. Louis, St. Charles County is actually one of your suburb counties. But St. Charles County subproper had some flooding on it, but well on up into the agricultural land.
Lincoln County had another levee break. That was five in all. Clarksville sandbagging but successful so far. In Elsberry, Missouri, look at that. Look at all those -- look at all those sandbags. Wolf, there must be tens of thousands, if not 100,000 sandbags there all put there by volunteers and the National Guard. An amazing sight there.
BLITZER: Amazing, indeed. All right, let's wish them the best.
Thanks, Chad.
The Midwest flood disaster has drained the Red Cross and they're appealing for your help. For the second time in its 125-year history, the emergency aid agency has had to borrow to help victims. The first was three years ago after Hurricane Katrina.
Red Cross officials say they'll have to raise more than $15 million to cover the cost of dealing with the Midwest storms. To find out how you can help storm victims, go to CNN.com/impact. Good idea. Do it now.
A member of Congress may lose a home or two to the mortgage foreclosure crisis. We're going to tell you who that is just coming up in a little bit.
And take a look at what's on the front of Barack Obama's podium. It's a brand-new piece of stagecraft. Stay with us for a closer look.
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BLITZER: Here in the ELECTION CENTER, we like to show you the stagecraft that goes into the candidates' campaign events. And Barack Obama rolled out something entirely new today.
It caught our Tom Foreman's attention right away.
Tom, what did you see?
FOREMAN: Well, Wolf, as you know, in all of political stagecraft, there's nothing that can beat a good seal act and Obama rolled out a hot one.
In Chicago, flanked by more than a dozen governors' wall of flags behind him and for the first time today, look at this. He unveiled a new prop. There it is. A campaign seal which, as anyone can see, looks a great deal like the presidential seal itself.
Let's compare. Same general size, same general shape, the general appearance, and different color schemes, but both have an eagle in the middle, talons full of arrows and leaves, traditionally symbolizing power and peace. Both have a circle of words. Obama is promoting his Web site. And all of this says one thing, Wolf. The man behind the seal is fit to be president.
BLITZER: And we noticed also some Latin on the presidential seal, E Pluribus Unum, something else on the other seal.
FOREMAN: Something entirely different. On Obama's seal, I want you to take a look at this. It says Vero Possumus, which I thought meant there was truth in the possum. But I was wrong. The Obama campaign says it means, "Yes, we can."
And we talked with some experts over at Fordham University. They concluded that's exactly what it says. And, as you know, in stagecraft, putting things into Latin works because you can't put it in Latin unless it's true.
BLITZER: Absolutely, and I know your Latin not necessarily fluent but others certainly can talk about that. I understand though this particular bit of stagecraft has a certain flaw.
FOREMAN: It really does and it's interesting. There is a law, Title 18, Part 1, Chapter 33, against using a copy or facsimile of the presidential seal for any private purpose because it implies government approval. And if government lawyers consider this to be a close enough imitation with Obama, they could, not only demand that he drop it, but taken to the extreme, they could even put him into prison for six months. The race would be over before he got out.
BLITZER: But the White House certainly not suggesting anything along those lines?
FOREMAN: No, nobody is raising any real fuss about that right now. However, there have been issues like this before. The Ramones used the seal in a thing. "The Onion" (ph) got caught up in it. And when the first George Bush was running for reelection back in 1992, he started to use the presidential seal in a campaign ad and he took it out specifically to avoid running afoul of the law, and he was the president at that time -- Wolf.
BLITZER: Interesting stuff. Thanks very much, Tom.
FOREMAN: Good seeing you.
BLITZER: And coming up, a California congresswoman who could be the poster child for the mortgage mess. She owns three homes, or at least she used to, until she defaulted, get this, on all three of them. Her story when we return.
(COMMERCIAL BREAK)
LARRY KING, HOST, "LARRY KING LIVE": We have a great "LARRY KING LIVE" for you tonight. Motley Crue. I spent some time with Mick and Vince and Tommy and Nikki, and they showed me the ropes. Here's a look at some of what you will see.
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(COMMERCIAL BREAK)
BLITZER: It's hard to believe, but more Americans are defaulting now on their mortgages than at any time since the Great Depression, 1.2 million last year. Last month alone, more than 70,000 homes in California were in foreclosure. But as Kara Finnstrom reports, one California homeowner caught up in this mess might surprise you.
(BEGIN VIDEOTAPE)
REP. LAURA RICHARDSON (D), CALIFORNIA: I've learned --
KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Laura Richardson is single, lives in California, and she's had a great career. Her salary? Now about $170,000.
She was living the dream. She owned a home in Long Beach, a second south of L.A., and with a new job networking in Sacramento, she bought house number three.
No money down. It seemed like a good deal. She quickly found out it wasn't.
RICHARDSON: I had a difficult time of being able to properly take care of all of the financial responsibilities that I had.
FINNSTROM: Within one year, Richardson fell behind on her payments. She defaulted on her Sacramento house and the lender auctioned it off. This is a story about the mortgage mess and the power of easy money and seductive terms. Laura Richardson should have known better.
RICHARDSON: I worked in corporate America for 14 years. I have a masters in business.
FINNSTROM: In fact, she is also one of the elites. Today her job description actually includes fixing the mortgage meltdown. Laura Richardson is a member of Congress.
RICHARDSON: People are coming home, notes are on their doors, they're getting phone calls. And this is a huge problem.
FINNSTROM: Richardson says there was a mistake, that she had a new loan with her lender. She's now asking them to void the auction and return her Sacramento house. Her lender told CNN, Richardson has not given them consent to discuss anything.
FINNSTROM (on camera): Records show Richardson also defaulted on her Long Beach home, and her problems get even worse.
Were there defaults on other properties other than the Long Beach and also the property in Sacramento?
RICHARDSON: I'm not going to go into any other further details of my personal financial situation.
FINNSTROM (voice-over): As it turns out, the congresswoman defaulted on all three of her houses. And get this, she actually defaulted on her San Pedro and Long Beach houses, a total of six times. The congresswoman, caught in a cycle where she'd pay up, then default again.
We asked USC accounting professor, Cecil Jackson, whose specialty is fraudulent financial reporting to examine her situation. And again, his conclusion is at the heart of the mortgage mess all over the country.
PROF. CECIL JACKSON, UNIVERSITY OF SOUTHERN CALIFORNIA: She went in and borrowed more debt than what her income would indicate she could really repay.
FINNSTROM: Jackson says Richardson's total house debt was nearly double what she could afford.
Part of the response we've gotten has been, she must have known she couldn't afford three homes. Why did she buy a third home?
RICHARDSON: I don't have a remark to that question.
FINNSTROM: Richardson says she's working with lenders and will make good on all three home loans. So how did she get to this point?
RICHARDSON: I had four life-changing experiences in less than 12 months.
FINNSTROM: In a rapid assent, she rose from local to state to national politics. Part of the cost? Loaning her campaign $177,000. She handily won the Democratic primary and no Republicans have qualified. That means she'll probably keep her seat despite her financial problems.
EDGAR LOMAS, LONG BEACH RESIDENT: It's a very, very bad example to set. It's almost saying that that's part of the requisite of being in the office.
FINNSTROM: Richardson's view? Her rocky experience means she's more in touch. RICHARDSON: The pain that they have felt, and then they want a person who's going to use that pain and use that knowledge to do it better.
FINNSTROM: It's the trust me, I feel your pain campaign slogan. But it could also be like so many others, I should have known better.
Kara Finnstrom for CNN, Los Angeles.
(END VIDEOTAPE)
BLITZER: But that's not the end of this story. Richardson's lender is trying to rescind the foreclosure and has asked for the keys back from the man who bought her Sacramento house. He's refused and says he's suing the congresswoman and her bank.
Meanwhile, the watchdog group Citizens for Responsibility and Ethics in Washington, has filed a complaint with the House Ethics Committee, calling Richardson, and I'm quoting now, "a deadbeat congresswoman."
So is the congresswoman to blame here, or did she just get in way over her head? Coming up, we'll put that question to real estate expert Barbara Corcoran. She's standing by live.
(COMMERCIAL BREAK)
BLITZER: I want to get back to America's mortgage meltdown right now. As we've been reporting, over a million Americans are in default, including the woman we met just before the break, Congresswoman Laura Richardson. The real estate entrepreneur and bestselling author, Barbara Corcoran, is here to explain how this can happen literally to anyone, even a powerful lawmaker. Barbara, thanks for coming in.
BARBARA CORCORAN, REAL ESTATE ENTREPRENEUR: Pleasure to be here, Wolf.
BLITZER: And I think the question everyone is asking right now, how did the United States congresswoman, with an MBA, someone who's clearly well educated, successful, get into this kind of mess?
CORCORAN: Well, anyone who gets into a foreclosure mess always has one dominant trait. They're optimistic. They expect that they're going to be able to pay more than what they could pay, and they don't expect that anything on the horizon could go wrong.
So especially in this instance, this woman had a lot on her plate, a lot of pressure both personal and financial pressure running this campaign. So for her to get involved in something that was a bit over her head, on my mind, was reasonable. So many Americans are in that exact same boat.
BLITZER: So how does someone who makes close to $170,000 a year, that's her congressional salary, even get approved for three different mortgages? How could she qualify for three different mortgages? CORCORAN: It's still happening every day of the week. Everyone thinks there's been a clamp down on what people could borrow, but there's none income verification loans handed out everyday. Someone who has the stature or position like she has is far more credible than the typical American going in for a mortgage. And so much is taken on hearsay. So, so much of it relies on the judgment of the individual as to what they believe they can handle.
BLITZER: What does this say, Barbara, that a member of Congress, one of the people supposed to be fixing the housing crisis is herself caught up in it, losing three homes?
CORCORAN: Can I tell you, it says most importantly that no one is exempt. Secondly, it says that we have a really big problem in the United States with this foreclosure crisis, and not enough is being done about it by our federal government.
We meet with committees. Nothing really manageable or usable comes out of it to date, so it's a shame. So far as her ability to help this situation, I frankly think anyone who confronts any hardship in life is usually the very best person to be able to help your way out of it. So I think put this lady on one of these meaningful committees and let her propose what it's like to have a monkey on your back, not to be able to pay your mortgage and how people could avoid doing this in the future. She should be included in this.
BLITZER: All right. Good point. You're an expert. Tell us what Congress -- what else Congress should be doing right now to fix this mortgage mess.
CORCORAN: They should be focused on the number one issue, which is having -- allowing people to rewrite their mortgages with the lenders so that they can manage their immediate debt. Some of these programs are far fetched, long term, complicated.
All people want is immediate relief from the situation, and these are not deadbeats. These are people who lost jobs, who have high medical expenses, have had deaths in their families. These are not irresponsible people. Sure, there are a few. But these are average Americans having hardship and there should be immediate relief for these people.
And I know I sound like a bleeding liberal, but that's how I feel.
BLITZER: Shall we hold our breath? Do you think they'll do it?
CORCORAN: If they don't -- if it's coming out of Washington, we better be holding our breath.
BLITZER: All right. Barbara, thanks very much. Good advice from you.
That's it for us tonight. I'll be back here in the ELECTION CENTER Monday night.
"LARRY KING LIVE" starts right now.
