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Issue Number One

Housing Bill Stalled Again; Obama Defines Patriotism in his Own Words; Airfares on the Rise; War Veterans Increasing Come Home to No Home

Aired June 30, 2008 - 12:00   ET

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

GERRI WILLIS, CO-HOST: Records for oil and gas. Why this is happening and if there's any relief in sight.
Free gas, we'll tell you where you can get it and what the catch is.

Airfares are going up once again. Why you might want to buy that plane ticket right now even if you're not flying for several months.

Issue #1 is your economy. ISSUE #1 starts right now.

Hello and welcome to ISSUE #1. I'm Gerri Willis.

The surge just don't seem to stop. It's another Monday, and yet another record for both gas and oil prices.

Hundreds of thousands of American families are going through foreclosure, and it appeared Congress was about to step in. We'll see what the holdup is.

And can you argue with free gas? Lots of companies out there are trying to get your business by offering free fuel, but is it worth it?

From the ISSUE #1 headquarters to the CNNMoney.com newsroom, we are all over the stories that matter to you.

Topping off today, record gas prices.

ALI VELSHI, CO-HOST: That's right, Gerri. Oil and gas both at records now. But as you sort of said, what is really going on here? What's behind it?

Well, perspective when you realize that oil is up 50 percent this year alone.

CNNMoney.com's Poppy Harlow is here with today's "Energy Fix."

Hi, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey, Ali.

Well, let's start off with the hard numbers for everyone out there.

Oil prices climbing above $143 a barrel this morning to a new record high, as Ali said. Many of the same culprits continue to push the price upwards, including a weak U.S. dollar, mounting tension in Iran, and fears of surging worldwide demand. And today the spike shows us, as Ali said, a rise of nearly 50 percent from the beginning of this year.

Since almost all of us use oil in one form or another, even if we don't have a car, it's really a burden on all of us. Gas prices, another record high, up to $4.09. That surge not as dramatic as oil, but still up 38 percent from a year ago.

And you know what, Ali? More increases are expected. Thirty- three states, including the District of Columbia, now have $4 or higher gas prices.

VELSHI: All right. Well, it's called "Energy Fix."

HARLOW: It's called "Energy Fix."

VELSHI: Give us a fix.

HARLOW: I would give you a fix if I could give you a fix. What I can do is tell you stop using so much oil. Stop driving those SUVs. Park them, walk or bike. There are no easy fixes.

One scenario that would likely bring down prices, it's not a pretty one. What it would be is a huge global slowdown.

There's an organization in Switzerland that is basically the supreme central bank. What it does is it oversees our Federal Reserve and similar banks around the world, and it says that we may be near a tipping point where the rise in prices causes a global economic slowdown.

Of course, that would mean oil consumption would fall. That would bring down prices. It sounds like a potential energy fix, but such a rough economic environment would be painful in other ways, including the resulting jump in unemployment. So it's tough either way you play it.

VELSHI: Right. And you lower the price of gas, but then you've got yourself a global slowdown, which isn't ideal.

HARLOW: And you might not have a job.

VELSHI: Yes.

HARLOW: Yes.

VELSHI: All right, Poppy. Thanks very much with our daily "Energy Fix."

Gerri, why don't you take it away?

WILLIS: All right, I will.

So, is offshore drilling here at home the answer to our energy crisis? Memories of the 1969 oil spill have many people in Santa Barbara saying absolutely not.

CNN's Ted Rowlands reports.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): The price of oil has renewed the national debate over offshore drilling, something that presumptive Republican nominee John McCain thinks states should examine further.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Lifting the moratorium from offshore drilling or oil and natural gas exploration is something we should place as a very high priority.

ROWLANDS: But here in Santa Barbara, along California's central coast, offshore drilling is a very touchy subject.

BUD BOTTOMS, ENVIRONMENTAL ACTIVIST: Everybody stood by the beach and cried.

ROWLANDS: Eighty-year-old Bud Bottom still remembers the offshore oil spill in 1969 that dumped an estimated three million gallons of crude oil into the water off the coast of Santa Barbara, killing thousands of fish and birds and turning the pristine beaches into an oily mess that took years to clean up.

BOTTOMS: Dead birds as far as you could see all over the place. You couldn't save them. There was no way to save the birds in those days.

JOHN PALMINTERI, KEYT REPORTER: It blackened the ocean, it ruined the marine life, it killed birds, it wrecked tourism. It was a disaster, and they never want to see it again.

ROWLANDS: When John McCain came to Santa Barbara last week to discuss his energy plan, his ideas for conservation and alternative fuel vehicles were overshadowed by his stance on offshore drilling. Even a handpicked panelist peppered McCain during what was expected to be a nonconfrontational environmental roundtable.

MICHAEL FEENEY, LAND TRUST FOR SANTA BARBARA COUNTY: It makes me nervous to think about those who are proposing to drain America's offshore oil and gas reserves as quickly as possible in the hopes of driving down the price of gasoline.

ROWLANDS: Even California Governor Arnold Schwarzenegger, who endorses McCain and introduced him at the Santa Barbara event, sides more with Democratic presumptive nominee Barack Obama on this issue, saying...

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Anyone who tells you that this will bring down our gas prices immediately or anytime soon is blowing smoke.

ROWLANDS: While the country debates ways to increase U.S. oil production, what happened almost 40 years ago has many people in Santa Barbara convinced that offshore drilling should be off limits.

Ted Rowlands, CNN, Los Angeles.

(END VIDEOTAPE)

VELSHI: Well, record high gas prices and oil prices are pinching household budgets across the country. And that brings us to our "Quick Vote," where you get to weigh in.

Poppy Harlow from CNNMoney.com is here with today's question.

Hello again, Poppy.

HARLOW: Hey there, Ali.

Again, we're talking about jobs today. Times are tough out there. We all know that. People are concerned about the security of their job.

We're talking about everyone, from investment bankers to autoworkers. So we want to know how prepared you are.

Here is our question today: "If I lost my job today, I'd have enough savings for three to six months, six to 12 months, at least one year, or I don't have any savings."

Weigh in on CNNMoney.com. We'll bring you those results later in the show.

I think a lot of people that don't have savings right now are probably pretty concerned.

VELSHI: Yes, because this really gets -- it's into money that you don't actually have.

Poppy, thank you for that -- Gerri.

WILLIS: Great question.

Well, all this talk about a big housing bill on Capitol Hill helping out folks going through foreclosure, whatever happened to it? We're on the case with CNNMoney.com.

Plus, we're talking about free gas. That's right, free. How some companies are going out of their way to fuel up your car and get your business at the same time.

We're all over issue #1, the economy, right here on CNN.

(COMMERCIAL BREAK)

WILLIS: It is a busy, busy Monday on the campaign trial. We are just minutes away from Senator Barack Obama's patriotism speech in Independence, Missouri. The senator's campaign says he will talk about what patriotism means to him and what it requires of all Americans who love this country and want to see it do better. Senator Obama will deliver the speech at the Truman Memorial Building on the grounds of Truman's presidential library.

A thousand-plus miles away, Senator John McCain touring two manufacturing facilities in Pennsylvania. He'll first visit Turbine Airfoil Designs in Harrisburg, Pennsylvania, then setting his sights on manufacturing sheet metal facilities in Pipersville, Pennsylvania, where he will also hold a town hall.

We, of course, will bring all of these events to you as they happen live, right here on CNN, with complete coverage from the best political team on television.

VELSHI: Well, one of the problems the new president will have to deal with is the aftermath of the Iraq and Afghanistan wars. Veterans are coming back with post-combat stress, and it may be leading to a new wave of homelessness.

CNN's Barbara Starr reports.

(BEGIN VIDEOTAPE)

JAMES STREET, SOCIAL WORKERS, DEPT. OF VETERANS AFFAIRS: How are you doing, man? Are you a vet?

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Lunchtime at a Washington, D.C., soup kitchen. James Street is reaching out. If any of these homeless men are veterans, he will try to help.

STREET: You've got my card, right?

UNIDENTIFIED MALE: Yes.

STREET: When can you come over and talk to me at the VA?

STARR: Street works for the Department of Veterans Affairs, trying to get homeless vets into shelters. A regular stop, outside the most powerful address in the world, 1600 Pennsylvania Avenue.

STREET: I have had homeless vets here. One of my veterans lived down here on a park bench right across from the White House.

STARR: There are about 150,000 homeless vets nationwide, according to the VA. About 2,000 fought in Iraq and Afghanistan.

Joseph Jacobo has been homeless since returning from Iraq two years ago. At one point he went four days without food.

JOSEPH JACOBO, HOMELESS VETERAN: I had to live day by day, you know, not knowing where I was going to get my next meal, or to be able to shower the next day, you know, I mean, because you get stinky. Believe me, you get stinky.

STARR: Jacobo is now in a shelter dealing with post-traumatic stress.

JACOBO: When you get to see people dying next to you, it's traumatic. You know, it's traumatic, and it can stay with you for a long time.

STARR: The VA worries post-combat street is leading to a rise in homelessness in today's vets.

PETE DOUGHERTY, DEPT. OF VETERANS AFFAIRS: They come back. They're having night trauma, they're having difficulty sleeping. They're feeling alienated.

STREET: These guys, they go to Iraq and Afghanistan with the intent that, yes, I'm going to go serve my country, but I'm to come home and I'm going to slip right in to where I was, and I won't be affected. Well, they will be affected.

STARR (on camera): Veterans experts tell us their big worry, what will happen over the next three to five years as more troops return from the wars in Iraq and Afghanistan.

Barbara Starr, CNN, Washington.

(END VIDEOTAPE)

WILLIS: A sad story.

Well, you know those housing bills, the ones that were supposed to help out the hundreds of thousands of folks going through the mortgage meltdown. Whatever happened to them? We're on the case.

Plus, we're talking free gas and how to get your hands on some. There's a catch though. There's always a catch.

You're watching ISSUE #1. Stay with us.

(COMMERCIAL BREAK)

VELSHI: Well, the Fourth of July is almost upon us. We are looking at live pictures of Senator Barack Obama, the Democratic -- presumptive Democrat nominee, in Independence, Missouri, where he is delivering this week a speech -- his patriotism speech on what patriotism means to him and what he think it is might mean to other Americans. He is talking about that this week and saying that he will never question the patriotism of others during this campaign.

Let's listen in to Senator Barack Obama in Independence, Missouri.

(JOINED IN PROGRESS)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: ... and Attorney General Jay Nixon.

(APPLAUSE)

You know, on a spring morning in April of 1775, a simple band of colonists, farmers and merchants and blacksmiths and printers, men and boys, they left their home and their families in Lexington and Concord to take up arms against the tyranny of an empire. And the odds against them were long, and the risks were enormous, for even if they survived that particular battle, any ultimate failure would bring charges of treason and death by hanging.

And yet they took that chance. They did so not on behalf of a particular tribe or lineage, but on behalf of a larger idea: the idea of liberty, the idea of God-given, inalienable rights. And when the first shot of that fateful day, a shot heard round the world, was fired, the American Revolution and America's experiment with democracy began.

Those men of Lexington and Concord were among our first patriots. And at the beginning of a week when we celebrate the birth of our nation, I think it's fitting to pause for a moment and reflect on the meaning of patriotism. Theirs and ours.

We do so in part because we're in the midst of war. More than 1.5 million of our finest young men and women have now fought in Iraq and Afghanistan. Over 60,000 have been wounded. Over 4,600 have been laid to rest. The cost of war has been great, and the debate surrounding our mission in Iraq has been fierce.

It's natural in light of such sacrifice by so many to think more deeply about the commitments that bind us together as a nation and that bind us to each other as well. We reflect on these questions also because we are in the midst of a presidential election, perhaps the most consequential in generations, a contest that will determine the course of this nation for years, perhaps decades, to come. Not only is it a debate about big issues: health care, jobs, energy, education, retirement security, but it's also a debate about values.

How do we keep ourselves safe and secure while preserving our liberties? How do we restore trust in a government that seems increasingly removed from its people and dominated by special interests? How do we ensure that in an increasingly global economy, the winners maintain allegiance to the less fortunate. And how do we resolve our differences at a time of increasing diversity?

Finally, it's worth considering the meaning of patriotism because the question of who is or is not a patriot all too often poisons our political debates in ways that divide us rather than bring us together. I've come to know this from my own experience on the campaign trail.

Throughout my life I have always taken my deep and abiding love for this country as a given. It was how I was raised. It is what propelled me into public service. It is why I am running for president.

And yet at certain times over the last 16 months I have found for the first time my patriotism challenged. At times as a result of my own carelessness, more often as a result of the desire by some to score political points and raise fears and doubts about who I am and what I stand for. So let me say this at the outset of my remarks, I will never question the patriotism of others in this campaign.

(APPLAUSE) And I will not stand idly buy when I hear others question mine.

(APPLAUSE)

My concerns here aren't simply personal, however. After all, throughout our history men and women of far greater significance and stature than me have had their patriotism questioned in the midst of momentous debates.

Thomas Jefferson was accused by the federalists of selling out to the French. The anti-federalists were just as convinced that John Adams was in cahoots with the British, intent on restoring monarchial rule.

Likewise, even our wisest presidents have sought sometimes to justify questionable practices on the basis of patriotism. Adams' Alien and Sedition Act, Lincoln's suspension of habeas corpus, Roosevelt's internment of Japanese-Americans during World War II. All were defended at the time as expressions of patriotism, and those who disagreed with their policies were sometimes labeled as "unpatriotic."

In other words, the use of patriotism as a political sword or a political shield is as old as the republic. Still, what is striking about today's patriotism debate is the degree to which it remains rooted in the cultural wars of the 1960s, in the arguments that go back 40 years or more. Some of you remember this.

In the early years of the civil rights movement and the opposition to the Vietnam War, defenders of the status quo often accused anybody who questioned the wisdom of government policies of being unpatriotic. Meanwhile, some of those in the so-called counterculture of the '60s reacted not merely by criticizing particular government policies, but by attacking the symbols. And in extreme cases, the very idea of America itself by burning flags, by blaming America for all that was wrong with the world, and perhaps most tragically, by failing to honor those veterans coming home from Vietnam, something that remains a national shame to this day.

(APPLAUSE)

Now, most Americans never bought into these simplistic world views, these caricatures of left and of right. Most Americans understood that dissent does not make one unpatriotic.

(APPLAUSE)

And most Americans understand that there's nothing smart or sophisticated about a cynical disregard for America's traditions and institutions.

(APPLAUSE)

And yet -- and yet the anger and turmoil of that period never entirely drained away. All too often our politics still seems trapped in these old threadbare arguments, a fact most evident during our recent debates about the war in Iraq when those who opposed administration policy were tagged by some as unpatriotic, and a general providing his best counsel on how to move forward in Iraq was accused of betrayal.

Given the enormous challenges that lie before us, we can no longer afford these sorts of divisions. None of us expect that arguments about patriotism will or should vanish entirely. After all, when we argue about patriotism, we're arguing about who we are as a country and, more importantly, who we should be. But surely we can agree that no party or political philosophy has a monopoly on patriotism.

(APPLAUSE)

And surely we can arrive at a definition of patriotism that, however rough and imperfect, captures the best of America's common spirit.

What would such a definition look like? For me, as for most Americans, patriotism starts as a gut instinct, a loyalty and love for country that's rooted in some of my earliest memories.

And I'm not just talking about the recitations of the Pledge of Allegiance or the Thanksgiving pageants at school or the same fireworks on the Fourth of July that we just heard from earlier from Vince. Rather, as wonderful as these things may be, I'm referring to the way the American ideal wove its way throughout the lessons of my family, the lessons that my family taught me as a child.

You know, one of my earliest memories is of sitting on my grandfather's shoulders and watching the astronauts come to shore in Hawaii. I remember the cheers and the small flags that people waved, and my grandfather explaining how we Americans could do anything we set our minds to do. That's my idea of America.

(APPLAUSE)

I remember listening to my grandmother telling stories about her work on a bomber assembly line during World War II. I remember my grandfather handing me his dog tags from his time in Patton's army and understanding that his defense of this country marked one of his greatest sources of pride.

That's my idea of America.

I remember...

(APPLAUSE)

I remember when living for four years in Indonesia as a child I listened to my mother reading me the first lines of the Declaration of Independence. "We hold these truths to be self-evident that all men are created equal, that they're endowed by their creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness."

I remember explaining how this declaration applied to every American, black and white and brown alike. How those words and the words of the United States Constitution protected us from the injustices that we witnessed other people suffering during those years abroad.

That's my idea of America.

(APPLAUSE)

As I got older, that gut instinct that so many of us have, that America is the greatest country on Earth, would survive -- that gut instinct, that knowledge would survive my growing awareness of our nation's imperfections, it's ongoing racial strife, the perversions of our political system that were laid bare during the Watergate hearings, the wrenching poverty of the Mississippi Delta and the hills of Appalachia and inner cities and rural communities all across America. That instinct that this is the greatest country on Earth survived not only because in my mind the joys of American life and culture, its vitality, its variety, its freedom, always outweighed its imperfections, but because I learned that what make's America's great has never been its perfection, but the belief that it can be made better.

I came to understand that our revolution was waged for the sake of that belief, that we could be governed by laws, not men, that we could be equal in the eyes of those laws. That we could be free to say what we want and assemble with whomever we want and worship as we please. That we could have the right to pursue our individual dreams, but the obligation to help our fellow citizens pursue theirs.

(APPLAUSE)

You know, for a young man like me of mixed race without firm anchor in any particular community, without even a father's steadying hand, it is this essential American idea that we are not constrained by the accident of birth, but can make of our lives what we will. That has defined my life just as it has defined the life of so many other Americans.

(APPLAUSE)

And that's why for me patriotism is always more than just loyalty to a place on a map or a certain kind of people. Instead, it's also loyalty to America's ideals, ideals for which anyone can sacrifice or defend or give their last full measure of devotion.

I believe it is this loyalty that allows a country teeming with different races and ethnicities, religions, and customs, to come together as one. It is the application of these ideals that separates us from Zimbabwe, where the opposition party and their supporters have been silently hunted, tortured or killed. It separates us from Burma, where tens of thousands continue to struggle for basic food and shelter in the wake of a monstrous storm because the military junta fears opening up the country to outsiders. Or Iraq, where despite our heroic efforts of our military, men and women like this, and the courage of many ordinary Iraqi, even limited cooperation between various factions remains far too elusive. I believe those who attack America's flaws without acknowledging the singular greatness of our ideals and their proven capacity to inspire a better world do not truly understand America.

Of course, precisely because America isn't perfect, precisely because our ideals constantly demand more from us, patriotism can never be defined as loyalty to any particular leader or government or policy. As Mark Twain, that greatest American satirists and proud son of Missouri once wrote, "patriotism is supporting your country all the time and your government when it deserves it." That's what patriotism is. That's what patriotism is.

Now, we may hope that our leaders and our government stands up for our ideals, stands up for what's right. And there are many times in our history when that's occurred. But when our laws, when our leaders, or our government are out of alignment with those ideals, then the dissent of ordinary Americans may prove to be one of the truest expressions of patriotism.

The young preacher from Georgia, Dr. Martin Luther King Jr., who led a movement to help America confront our tragic history of racial injustice and live up to the meaning of our creed, he was a patriot. The young soldier who first spoke about the prisoner abuse at Abu Ghraib. He is a patriot. Recognizing a wrong being committed in this country's name, insisting that we deliver on the promise of our Constitution, these are the acts of patriots, men and women who are defending what is best in America, and we should never forget that, especially when we disagree with them, especially when they make us uncomfortable with their words. That's part of the American tradition. That's part of why we are proud to be Americans.

Beyond the loyalty to America's ideals, beyond a willingness to dissent on behalf of those ideals, I also believe that patriotism must, if it is to mean anything, involve the willingness to sacrifice, to give up something we value on behalf of a larger cause. Now, for those who fought under the flag of this nation, for the young veterans like Vince (ph), the young veterans I meet when I visit Walter Reed, for those like John McCain who have endured physical torment in service to our country, no further proof of such sacrifice is necessary. Let me also add that no one should ever devalue that service, especially for the sake of a political campaign, and that goes for supporters of both sides. We must always express our profound gratitude for the service of our men and women in uniform, period, full stop.

Indeed, one of the good things to emerge from the current conflict in Iraq has been the widespread recognition that whether you support this war or oppose it, the sacrifice of our troops is always worthy of honor. That's a change from the '60s that's been very welcome to many of us. But, you know, for the rest of us, for those of us not in uniform or without loved ones in the military, the call to service for the country's greater good remains an imperative of citizenship. Sadly, in recent years, in the midst of war on two fronts, this call to service never came.

After 9/11 we were asked to shop. The wealthiest among us saw their tax obligations decline. Something that had never occurred before during wartime, even as the costs of war continued to mount. Rather than work together to reduce our dependence on foreign oil and thereby lessen our vulnerability to a volatile region, our energy policy remained unchanged and our oil dependence only grew.

In spite of that absence of leadership from Washington, I've seen a new generation of Americans begin to take up the call. I meet them everywhere I go. Young people involved in the project of American renewal. Not only those who have signed up to fight for our country in distant lands, but those who are fighting for a better America right here at home by reaching out to those who are less fortunate, by teaching in under served schools, or caring for the sick in understaffed hospitals, or promoting more sustainable energy policies in their local communities.

I believe one of the tasks of the next administration is to ensure that this movement towards service grows and sustains itself in the years to come. We should expand AmeriCorps and grow the Peace Corps. We should encourage national service by making it part of the requirement for a new college assistance program, even as we strengthen benefits for those whose sense of duty has already led them to serve in our military.

So government can do its part. We must remember though that true patriotism cannot be forced or legislated with a mere set of government programs. Instead, it must reside in the hearts of our people and cultivated in the heart of our culture and nurtured in the hearts of our children.

As we begin our fourth century as a nation, it is easy to take the extraordinary nature of America for granted, but it is our responsibility as Americans, and as parents, to instill that history in our children, both at home and at school. The loss of quality civic education from so many of our classrooms has left too many young Americans without the most basic knowledge of who our forefathers are or what they did or the significance of the founding documents that bear their names.

Too many children are ignorant of the sheer effort, the risks and sacrifices made by previous generations, to ensure that this country survived war and depression. Through the great struggles of civil and social and workers' rights. It is up to us then to teach them. It is up to us to teach them that even though we have faced great challenges and made our share of mistakes, we have always been able to come together and make this nation stronger and more prosperous and more united and more just. It's up to us to teach them that America has been a force for good in the world and that other nations and other people have looked to us as the last best hope on earth.

It is up to us to teach them that it is good to give back to one's community. That it is honorable to serve in the military. That it is vital to participate in our democracy and make our voices heard. And it is up to us to teach our children a lesson that those of us in politics all too often forget -- that patriotism involves not only defending this country against external threat, but also working constantly to make America a better place for future generations. When we pile up mountains of debt for the next generation to absorb, or put off changes to our energy policies knowing full well the potential consequences of inaction, we are placing our short-term interests ahead of the nation's long-term well-being. When we fail to educate effectively millions of our children so that they might compete in a global economy, where we fail to invest in the basic scientific research that has driven innovation in this country, we risk leaving behind an America that has fallen in the ranks of the world. Just as patriotism involves each of us making a commitment to this nation that extends beyond our own individual, immediate self- interests, so must that commitment extend beyond our own time here on earth.

Our greatest leaders have always understood this. They defined patriotism with an eye towards posterity. George Washington is rightly revered for his leadership of the continental army, but one of his greatest acts of patriotism was his insistence on stepping down after two terms, thereby setting a pattern for those that would follow. Reminding future presidents that this is a government of and by and for the people.

Abraham Lincoln did not simply win a war or hold the union together. In his unwillingness to demonize those against whom he fought, and his refusal to succumb to either the hatred or self- righteousness that war can unleash, and his ultimate insistence that in the aftermath of war, the nation would no longer remain half slave and half free. In his trust in the better angels of our nature, Lincoln displayed the wisdom and courage that sets a standard for patriotism.

It was the most famous son of independence, Harry S. Truman, who sat in the White House during his final days in office and said in his farewell address, "when Franklin Roosevelt died, I felt there must be millions -- a million men better qualified than I to take up the presidential task, but through all of it, through all the years I have worked here in this room, I have been well aware that I did not really work alone. That you were working with me. No president could ever hope to lead our country or to sustain the burdens of this office, save the people helped with their support."

In the end, that's what Truman said. And in the end, it may be this quality that best describes patriotism in my mind. Not just a love of America in the abstract, but a very particular love for and faith in the American people. That's why our hearts swell with pride at the sight of our flag, why we shed a tear as the lonely notes of taps sounds. For we know that the greatness of this country, its victories in war, its enormous wealth, its scientific and cultural achievements, all result from the energy and imagination of the American people. They're toil, drive, struggle, their restlessness and humor and quiet heroism.

That's the liberty we defend. The liberty of each of us to pursue our own dreams. That's the equality we seek. Not an equality of results, but the chance of every single one of us to make it if we try. That's the community we strive to build. One in which we trust in the sometimes messy democracy of ours. One in which we continue to insist that there is nothing we cannot do when we put our mind to it. One in which we see ourselves as part of a larger story. Our own fates wrapped up in the fates of those who share allegiance to America's happy and singular creed. That's what patriotism means to me.

Thank you, Independence. God bless you. And may God bless the United States of America.

VELSHI: And that is Barack Obama in Independence, Missouri, delivering a speech on his take on patriotism, timed for the July 4th holiday this week. Talking about his different interpretations and mentioning those in American history who he thought were patriots in their own different way.

We're going to take a break here on ISSUE #1. When we come back, we are going to have a look at the state of the housing bill. Whatever happened to it and what difference is it going to make to you?

We are all over issue #1, the economy, right here on CNN. Stay with us.

(COMMERCIAL BREAK)

WILLIS: Well, the housing bill Congress has been working on for more than a year is stalled yet again. Legislators will not take it up until after their July 4th recess. CNN Money's Jeanne Sahadi is here to break it all down for us.

Jeanne, good to see you.

JEANNE SAHADI, SENIOR WRITER, CNNMONEY.COM: Good to see you, too.

WILLIS: All right. So what happened? We've been waiting for this bill forever.

SAHADI: Right. Keep waiting.

Yes, we really thought the Senate was going to pass the bill last week, but because of some procedural moves in the Senate that allow one or two senators to hold up the works, an amendment about energy tax credits kind of gummed up everything. So what they're going to do now is they're going to wait until July 7th when they come back and they're going to start the whole process, not again, but they're going to continue it and it could be another six legislative days or so before (INAUDIBLE).

WILLIS: Wow. OK. So off the tracks for a little while, but could get back on the tracks.

Let's walk through what's in this legislation piece by piece. The most important elements of it. SAHADI: Well, the biggest one, the one that's gotten the most attention, is the new program that lawmakers want to allow the FHA to insure up to $300 billion in at-risk loans. People who could lose their homes in foreclosure would be allowed to join this program if they meet certain criteria, if their lenders agree to write down the values of their loans to below the appraised value of the house. So the thinking is, that would help set a floor in the housing market because traders would know, hey, borrowers now have a loan they can afford. We can feel comfortable buying it and selling it in the secondary market. And, you know, people will calm down a bit about the housing market. That's the theory.

WILLIS: OK. And so we've also got more oversight of Freddie Mac, Fannie Mae. There's some discussion of that. Other -- a myriad other elements to the bill, but you've really gone over the most important part of it here. Tell me, is the White House going to veto any of this? Is there any part that the president does not like ?

SAHADI: They didn't like a lot of the pieces of it, but right now it's come down to about one piece, which is a provision that would give federal aid to states to buy up foreclosures. The White House says, yes, that's just going to help the banks. We don't like that. And so the thinking is lawmakers are going to pitch that provision.

WILLIS: All right. And so you do expect it to pass? Won't pass?

SAHADI: The thinking is still better than 70 percent that the Senate will pass it. It could still fall apart, but that's the thinking.

WILLIS: All right. Well, Jeanne Sahadi, thank you for that.

If you want to read more about this issue, go to CNNMoney.com. Lots of stories there detailing that legislation -- Ali.

VELSHI: Thanks, Gerri.

Airline fares are up again. Why you might want to buy your next plane ticket right now. We're going to get into it when we come back on ISSUE #1. Stay with us.

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VELSHI: Well, if you're flying now or in several months, you have to be a little concerned if you don't have your ticket. Prices are all over the place. Rick Seaney follows this stuff for a living and he's been a big help on our program over the past couple of months helping guide us through all this. Rick is the CEO of farecompare.com and they tell you what fares are now and where they're going.

Rick, good to see you again. We now have -- we are halfway through the year and we have had 20 attempts to increase airfares by the airlines. And this last one, has it stuck?

RICK SEANEY, CEO, FARECOMPARE.COM: Well, actually, over the weekend, it did stick. They matched very quickly. But just this morning, Continental Airlines pulled out. So it's likely the other airlines will be pulling out later today.

VELSHI: This one was a little interesting in that it sort of got kicked off by Southwest, which really hasn't been part of this game, but you've got American now, Delta, United, Northwest, U.S. Airways. All of those except Southwest with a $20 to $40 round-trip increase.

SEANEY: That's correct. Yes. And with Continental pulling out this morning on the increase, I expect, actually, the prices to go down. Airline tickets are going to be very volatile over the next several weeks and months and the consumers need to be aware of this and like, you know, this afternoon will be a great time as they start to roll back these increases to go ahead and purchase those tickets for holiday travel.

VELSHI: All right. And if people are traveling for July 4th, are there any deals to be had right now? Are there last minute deals? Are there places that are still reasonable?

SEANEY: Yes, the airlines just spent the weekend and part of last week filing a bunch of new July 4th only fares. The biggest location and the cheapest to go is Florida and Vegas. So if you guys have any last-minute money, get out there to Florida and Vegas. There's some good deals running around out there.

VELSHI: Where, generally speaking today, is it easiest to get a good fare? You know, there are all sorts of differences. If you call an airline, you're going to get different fares than if you go on their own web site, which could be different fares than if you go on some other sort of web site. What's the smartest thing it do?

SEANEY: Well, the smartest thing to do is to shop all airlines. Most airlines match each other, but they tend to have price increases and decreases. They want to be competitive. Check the low-cost airlines. Basically you just have to do a lot of checking day after day you can check. Start shopping early than you are -- most people like to start shopping 40 to 20 days inside of travel. Definitely start shopping four months in advance. If you want a decent deal, that's what you're going to have to start doing is shopping earlier.

VELSHI: If you're looking at Labor Day, you're looking at Columbus Day, you're looking at Thanksgiving.

SEANEY: Exactly.

VELSHI: And as you mentioned a few weeks ago, even Christmas.

Rick, good to talk to you.

SEANEY: Good to see you, too.

VELSHI: Rick Seaney is the CEO of farecompare.com. They tell us about a lot of those increases that we're seeing on a daily basis -- Gerri. VELSHI: Well, Ali, we have some good news here. We're talking free gas. Free. Where to get it and what you'll have to do to get it.

You're watching ISSUE #1.

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WILLIS: OK. So if you lost your job today, today, how long could you stay afloat with just your savings? That's our Quick Vote question today. And here's how you voted. Thirty-five percent of you said, I don't have any savings. Twenty-seven percent said at least one year. Twenty-five percent said three to six months. And another 12 percent said six to 12 months.

Ali, that's got to be frustrating for a lot of folks out there. Got to have that savings.

VELSHI: That's a big problem. Yes, if you don't have the savings, that's a big problem. We're going to have to talk a little bit more about that on the show, what to do if you could lose your job but you don't have savings.

Well, free gas. Those two words probably get your attention more than most other two words these days. And more and more companies are taking advantage of these high gas prices to try and lure you in to their businesses.

CNN senior correspondent Allan Chernoff checked it out.

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ALLAN CHERNOFF, CNN SR. CORRESPONDENT, (voice-over): In a lousy economy, you've got to motivate consumers. And the motivator of the year is free gas. The promise of free fuel is how businesses are selling everything, from candy bars to cars.

VINCENT TEPEDINO, BAY RIDGE CHRYSLER: It brought a lot of customers in that may not otherwise have bought our product.

FRED AUSTIN, CHRYSLER CUSTOMER: This is a good bargain. This is a good deal. And, you know, we as Americans, we're all looking for a deal.

CHERNOFF: There are deals at the ballpark. $25 of gas if you buy four tickets to the San Francisco Giants. Free gas for less wholesome entertainment in Nevada. The women of the Shady Lady Ranch, a legal brothel, offer $150 gas cards for those who indulge in three hours of pleasure.

Free gas promotions are in the supermarket, too. The Shop Rite chain is offering $25 gas cards to shoppers who buy $75 worth of major brand name products. So you can fight gingivitis and get free gas at the same time.

For these pharmacists, gas is also a lure to take business from competitors. Transfer prescriptions to Rite Aid and the pharmacy will enter you into a weekly drawing for a year's worth of fuel.

MIKE POIRIER, RITE AID PHARMACIST: The more prescriptions they transfer with that coupon, the more chances they have to win.

CHERNOFF: And free gas is motivating good deeds. Connecticut's Red Cross enters blood donors in free gas raffles.

PAUL SULLIVAN, CEO, CT. BLOOD SERVICES, AMERICAN RED CROSS: The gas cards these days are highly valued. So we're finding it to be a successful promotion.

CHERNOFF: The more you spend, the more gas you get. Mike Holloway's (ph) best driver, get it, and you'll have a full tank to get to the golf course.

CHARLES RHEE, NEW YORK GOLF CENTER: This is the FTI, which is their square driver. Also a composite head. And this one is $500 and gets a $100 gas card rebate.

CHERNOFF: Or, if you can afford it in this economy, rent a yacht for $20,000 and get $500 of gas. Let's not even think of how much gas that yacht is burning.

Allan Chernoff, CNN, New York.

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VELSHI: And that's it for us.

"CNN NEWSROOM" starts right now.