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American Morning
Cubans Prepare as Hurricane Ike Moves Closer; Obama and McCain Out Campaigning; More Government Involvement with Fannie Mae and Freddie Mac
Aired September 08, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Morgan, tell us what the situation's like.
MORGAN NEILL, CNN CORRESPONDENT: Hi, Kiran. Well, that's right. This storm has been downgraded to Category 2. You can see here in Havana, we've seen the waves coming in, start to pick up a bit this morning. But the real damage is being done in the east of the country.
We've already seen some very dramatic pictures as Ike made its way into Cuba. We saw waves crashing into the city of Baracoa, in the east, waves going as high as five stories high, going over the top of a building there. We've also seen some very heavy flooding. There are people making their way around the city of Baracoa, up to their waist. We saw several defense officials there, making their way through that flooding.
Now, this storm is expected to make its way essentially from the eastern extreme of the island, almost to the western extreme, exiting Cuba right here in Havana. And what that means is, there have been evacuations basically throughout the country. The latest we have been able to hear from the government is now getting to be 900,000 people evacuated, according to the government. In addition to that, some 9,000 tourists evacuated in Varadero, the popular beach resort just to the east of here.
Now, people in Havana, we should expect to see evacuations happening here throughout the day today, though they have not yet started. The closest evacuations, just to the east of us. People here have however, already been stocking up on food, water, getting ready for the possibility that they could lose power, that they could be stuck in their buildings through possible flooding. Something that they've seen happen just nine days ago when hurricane Gustav ripped through the west of the islands -- Kiran.
CHETRY: Morgan Neill, for us in Havana, this morning. Thank you.
We want to get an update now on Ike's position. Rob Marciano is tracking the storm from the CNN Weather Center in Atlanta.
Tell us a little bit more about where they're expecting it to go, Rob?
ROB MARCIANO, AMS METEOROLOGIST: All right. Well, Kiran, we just got the latest advisory from the National Hurricane Center. It's centered about 20 miles south of Camaguey. It's probably going to touch the coastline of the southern coastline here. And it's heading westerly quite quickly.
Still lots of action on the radar. Here is is off the Cuban Met office, the western, northwest side of this thing still getting a lot of rain. We have tropical storm warnings, hurricane watches out in the Florida keys. Obviously, the entire island of Cuba, especially the western side, under hurricane warnings with this thing. They could see 9 to 12-foot surges. You saw those battering waves.
This is the worst hurricane to hit this side of Cuba, in probably decades. Here it is, Cat 1, winds down to 100 miles an hour. Cat 2, I should say. Likely to go to Cat 1 before re-emerging in the Gulf of Mexico. How much diminishing, or how much weakening, the island of Cuba has on this storm will determine a lot, how strong it gets when it re-emerges into the Gulf of Mexico.
So we expect it to be a Cat 2, maybe Cat 3 by Thursday, or Friday. Could make landfall anywhere in the Gulf Coast from the Florida panhandle, all the way to the Texas/Mexico border, from say, Thursday, to as late as Saturday morning. So, a lot to be determined here. But Cuba is getting hammered right now. Back to you in New York -- Kiran.
CHETRY: I want to ask you a quick question about the track, because it looks like it's going to brush by to the west of New Orleans once again. What is the concern, once again, just a week off of Gustav, about what's going on with the levees there?
MARCIANO: Well, the concerns are that a lot of levees and canals took a battering from Gustav. Still some people without power. Still some people picking up pieces especially west of New Orleans. So, certainly a grave concern here.
It's in the cone of uncertainty here, or at least probability. So that's definitely has people on edge. We'll try to narrow that cone and we will over the next couple ever days -- Kiran.
CHETRY: Rob, all right. Thanks.
MARCIANO: You got it.
CHO: The most politics in the morning now as Barack Obama's lead shrinks to a point in CNN's latest Poll of Polls. He's heading out to key swing states this morning, to try to stop John McCain RNC bounce.
Suzanne Malveaux, joining us live from Chicago, this morning.
Hey, Suzanne, good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi. Good morning, Alina. Well, Barack Obama's here in Chicago. It's the first day of school for his daughters Sasha and Malia. But later he's going to be traveling to Flint, Michigan. He's going to be talking about the economy. The message is very clear from Obama, that he is the stronger candidate when it comes to the financial front. But he is also saying as well, that he believes that John McCain is trying to coax his message of change.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): Fighting to hold on his message of change.
SEN. BARACK OBAMA (D), PRESIDENTIAL NOMINEE: We need change. But let's be absolutely clear about what change is and is not.
MALVEAUX: Slamming John McCain for using his slogans.
OBAMA: He says, I'm going to tell those lobbyists that their days of running Washington are over. Who's he going to tell? Is he going to tell his campaign chairman, who's one of the biggest corporate lobbyists in Washington? Who is it that he's going to tell that change is coming? I mean, come on. They must think you're stupid.
MALVEAUX: And to John McCain's running mate, he did not call Sarah Palin a liar. But did say her talk of change is misleading.
OBAMA: The word means something. You can't just make stuff up.
MALVEAUX: The message this week: We're the only ones talking about what voters care about; the economy, rising jobless rates and the mortgage crisis.
OBAMA: We have to protect the taxpayers, not bail out the shareholders in management of Fannie Mae and Freddie Mac. This is a challenging situation that's been festering for a long time.
(END VIDEOTAPE)
MALVEAUX: Well, you know, there's going to be one day at least in this week when both candidates are going to come together and suspend their campaigns. This is on Thursday. That is the September 11 attacks, the anniversary -- seventh year anniversary. Both of them are going to appear in Ground Zero, essentially to memorialize that day. They say it is a time of unity -- Alina.
CHO: And also getting word, Suzanee, as you know that Bill Clinton extending an olive branch, will have a private lunch with Barack Obama on that day in New York, as well.
I want to ask you. You mentioned that Barack Obama is heading to Flint, Michigan, later today. Why does Michigan play such a key role in the election?
MALVEAUX: Well, you may recall, he didn't even campaign there during the primaries. They were punished because of the primaries being held early. So, his name wasn't even on the ballot. So, obviously he's trying to make up for lost time. The third trip in some nine days. But also, take a look at those job numbers. 84,000 jobs lost in August. Of those, 39,000, the auto industry. Auto industry is very big in the Detroit suburbs. That is all in play here so they believe, hit the economy hard, that message -- obviously they want to win over the swing state and they believe that that is going to be important for him to appear and to make that point -- Alina.
CHO: Issue number one, as we're calling it, the economy.
Suzanne Malveaux, live in Chicago, for us this morning.
Suzanne, always great to see you. Thank you.
MALVEAUX: Thanks.
CHO: Kiran.
CHETRY: One of the big questions about Sarah Palin is whether she has enough foreign policy experience to be vice president. Well, our Zain Verjee caught up with the woman who has a lot of foreign policy experience of her own. That's our Secretary of State Condoleezza Rice.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, STATE DEPARTMENT CORRESPONDENT (on camera): Kiran, Secretary of State's Condoleezza Rice was in Libya, to meet with Moammar Gadhafi. While she was here, we asked her to weigh in on the question of Governor Sarah Palin's experience.
CONDOLEEZZA RICE, SECRETARY OF STATE: I thought that Sarah Palin gave a terrific speech. And not to get into the politics of it, you know, she's governor of a state here in the United States and she --
VERJEE: Does she have enough experience to handle the kind of things that you need to have?
RICE: These are decisions that Senator McCain has made. I have great confidence in him. I'm not going to get involved in this political campaign. Because as Secretary of State, I don't do that. But, I thought her speech was wonderful.
VERJEE: But, a lot of Republicans are also saying that she just lacks the experience. I mean you can dispatch Vice President Cheney to deal with the Ukraine and Georgia. But Sarah Palin just won't be able to handle it.
RICE: There are different kinds of experiences in life that help one to deal with matters of foreign policy.
VERJEE: There was a lot of speculation that Secretary Rice herself, could become the Republican vice presidential candidate. But she's always maintained that she just wants to go back to Stanford to teach.
(END VIDEOTAPE) CHETRY: Emergency rescue.
UNIDENTIFIED MALE: It is necessary to take action.
CHETRY: Ali Velshi looks at what the government takeover of two mortgage giants means to you. You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHO: Welcome back. DOW futures storming this morning. Up more than 250 points on the news the Treasury Department seized control of mortgage giants Fannie Mae and Freddie Mac.
(BUSINESS REPORT)
CHETRY: No rest on recess.
UNIDENTIFIED MALE: Nancy Pelosi doesn't want to drill offshore. We understand that, but no one says why.
CHETRY: Lawmakers get back to work after getting an earful at home.
KATE BOLDUAN, CNN CORRESPONDENT: You do accept some responsibility being in a majority?
UNIDENTIFIED MALE: I do. Do I? Absolutely.
CHETRY: Kate Bolduan on what, if anything, to expect next. You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the most news in the morning. We're checking on issue number one, the economy right now. And the price of gas falling again this morning. The new national average is $3.65 a gallon, according to AAA. And oil prices are above $107 a barrel in early trading this morning.
But because oil price are down so much from the high of $150, OPEC is considering cutting production. Oil ministers are meeting today to discuss decreasing crude output in order to prop up the price. If they do decide to cut back, it is expected is to be a smaller cut.
And Congress gets back to work this week after a summer recess. But work is a relative term for what's being called a do-nothing Congress.
Kate Bolduan looks at what Congress will work on when they return -- Kate.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN NATIONAL CORRESPONDENT (on camera): Kiran, during the recess, lawmakers were home meeting with constituents. And many of them got an earful from people frustrated over high gas prices.
REP. JOE SESTAK (D), PENNSYLVANIA: You can fix the income. (INAUDIBLE).
BOLDUAN (voice-over): Democratic Congressman Joe Sestak, says people are fed up and they want solutions now.
SESTAK: Inevitably I get a question, I really think Washington has to stop this politics down there.
BOLDUAN: Sestak's office says they've been flooded with complaints and suggestions on the energy crisis.
UNIDENTIFIED MALE: I hope you can do something to get the Republicans that agree on something.
BOLDUAN: Nearly 100 people packed an energy town hall Sestak hosted in his district outside Philadelphia, during the August recess.
DAVID LIPSON, VOTER: Nancy Pelosi doesn't want to drill offshore. We understand that, but no one has said why.
UNIDENTIFIED MALE: The more fundamentally, we have no cohesive energy policy.
SESTAK: This cannot be dealt with on a single track way. And heaven forbid, Congress is not best at sitting back and thinking and acting strategically.
BOLDUAN: Offshore drilling, wind and nuclear power among the options voters brought up as Congress still has not acted.
(on camera): You do accept some responsibility being in the majority?
SESTAK: I do. Do I? Yes, absolutely. I put as much blame, if not more, on the Democratic Party because we're the majority party.
BOLDUAN (voice-over): Sestak says he's open to compromise, but like many Democrats, remains skeptical expanded domestic drilling will lower gas prices. His Republican opponent Craig Williams disagrees and is attacking Sestak on the issue. Williams recently visited part of Alaska, to highlight the importance of drilling. Many other Republicans are trying to use the issue to their advantage as well.
AD NARRATOR: Feeling the pinch at the pump? Everyone is. Everyone it seems but Congress.
BOLDUAN: And dozens of House Republicans stayed behind in Washington, to stage a protest calling for a vote on drilling.
REP. JOHN BOEHNER (R), MINORITY LEADER: You have to put up or shut up. Make sure that you're saying the same thing as home that you're saying here in Washington, D.C. BOLDUAN (on camera): There are compromised bills in the works in the House and Senate. But Congressman Sestak, at least, is not optimistic they can get anything done as Congress returns to face only a few weeks left in the session -- Kiran.
CHO: She seems to be a hit here. But, how's she playing overseas? Becky Anderson live in London. You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHO: Welcome back. 20 minutes after the hour, in our efforts to bring you the complete picture of the presidential candidates on the campaign trail. We're taking a longer look at John McCain and Barack Obama in their own words.
Here's John McCain speaking in Albuquerque, New Mexico, this weekend.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL NOMINEE: I've fought corruptions and it didn't matter whether the culprits were Democrats and it didn't matter whether they were Republicans. I've fought big spenders. I've fought those big spenders every step of the way and it spread corruption, my friends, a little straight talk.
That's why we have former members of Congress now residing in federal prison. And I want to tell you -- I want to tell you the first earmark pork barrel laden bill that comes across my desk, I'll veto it and I'll make them famous and you'll know their names. You'll know their names!
(APPLAUSE)
And our troops will come home with honor and victory, not in defeat, as what would have happened if Senator Obama would have had his way.
(APPLAUSE)
These are tough times in the world, my friend. In Afghanistan, we're fighting a tough struggle against the Taliban. The government in Pakistan is very unpredictable. There's one thing that Osama bin Laden and General Petraeus agree on. And that is that Iraq is a central battleground in the war against radical Islamic extremism. We are winning and we will win.
(APPLAUSE)
And I've got to tell you, I thank God every single day for General David Petraeus and the brave men and women who are serving under his command. I thank God for them.
(APPLAUSE)
They're the best and they're the bravest and the most -- and the most professional we've ever had.
(END VIDEO CLIP)
CHO: And stick around. We'll hear from Barack Obama in his own words coming up in a couple of minutes.
CHETRY: State of emergency. Floridians flee as deadly Ike tears through the Caribbean. The latest on the storm's track. You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHETRY: The race for the White House tightening up this morning according to CNN's latest Poll of Polls. Barack Obama, leading John McCain by one point. It's 44 percent to 43. But another key in this is that 13 percent are still undecided. And with the election so close it's beginning to look like the undecided voter holds all the cards.
So what are the most important issues? Joining me now, Patricia Murphy. She's the editor of citizenjanepolitics.com, as well as John Avlon, a registered Independent, and author "Independent Nation."
Thanks to both of you for being with us.
So, we take a look at the numbers being so close. And there are a relatively high number of undecideds -- 13 percent according to the Polls of Poll.
And let me start with you John. Who are, first of all, the voters that are going to sway this election now that we know the tickets on both sides?
JOHN AVLON, CNN CONTRIBUTOR: Well, swing voters are Independents, and they're centrists. They're overwhelmingly fiscally conservative, but socially liberal. And what they're looking for in this campaign is a candidate who's going to end the hyper-partisanship in Washington, and who's going to have credibility on reducing spending. But also sort of be the the anecdote to the Bush administration.
You know, the Bush administration's 29 percent approval. In large part, because they alienated independence. Because they've been instead of fiscally conservative and socially liberal, they've been fiscally liberal and socially conservative. And that's the opposite of what Independents and swing voters want.
CHETRY: But, I want to ask you about this, Patricia. Because he said they're not hyper-partisanship. Yet, with the pick of Sarah Palin, there has been some talk about whether or not she's going to be able to really target those undecided women, possibly even some Hillary voters.
Do you think that's accurate?
PATRICIA MURPHY, EDITOR, CITIZENJANEPOLITICS.COM: Well, you know, I think that that is the big unknown here. And the reason this question is so important is because women will be the majority of voters in November. George Bush lost the women's vote but he only by 3 percent. If Sarah Palin can connect with just 1.5 to 2 percent of those women voters and move the needle, that would be a major accomplishment and could really prove the difference here.
CHETRY: And I want to know from both of you and we'll start with John. Why is it that the polls are so tight? When you big deeper into the polls, Obama has a 10 to 15 percent advantage when it comes to economic issues. We've talked about the economy being issue number one.
Why aren't we seeing that more in terms of the polling, breaking away for Barack Obama?
AVLON: Sure. Well, first of all because John McCain does have deep credibility with Independents, built over the last 10 years. He was really the brand name Independent candidates all throughout the Bush administration because he was leading the opposition to Tom Delay's conservative Congress.
So, when Independents are the largest fastest in the growing segment of the electorate, McCain's got a lot of brand-name credibility with Independents.
Obama ran a very strong post-partisan candidacy all throughout the primaries. He beat Hillary Clinton two to one with Independent voters. But, on the issue of the economy in particular, one of the problems is the Republicans are trying to label Obama the typical of liberal tax and spend. Now, the reality is, that doesn't fit.
Obama's got, for example, a much stronger middle class tract cut proposal than almost any other Democratic candidate the past. But that message hasn't been able to really permeate. And the Republicans are just calling him tax and spend. And so far, it hasn't worked.
CHETRY: And Patricia, what about women in the pocketbook issues? What do these candidates need to say to convince them?
MURPHY: Well, I think that actually Sarah Palin is doing a really good job. She is talking about the sort of economic issues that she faces every day. She also comes across as a budget cutter, particularly the little anecdote about selling that plane on eBay, resonated with a lot of women, certainly in that Republican hall when I was there. And certainly listened to the Democrats, as well.
If the Republicans can continue, as John said, to label Obama as a tax and spender, it's actually not true, in terms of the tax cuts. But he does has quite a bit of spending in his package. The Republicans need to portray themselves at budget cutters, people who are cutting their budgets while Americans are cutting their own.
CHETRY: Patricia Murphy and John Avlon. Great to have both of you, great perspective today. Thanks.
MURPHY: Thanks. AVLON: Thank you.
CHO: 28 minutes after the 8:00 hour on the East Coast. And here are some of the top stories we're following right now. DOW futures are soaring at this hour. More than 250 points higher. Investors are eager for the market to open after this weekend's government takeover of mortgage giants Fannie Mae and Freddie Mac.
NATO military officials say there's new evidence about an American attack in Afghanistan, that may have killed up to 90 civilians. One official says cell phones pictures appear to show a number of villagers buried in the rubble of the air strike. And apparently U.S. troops did not see them during a search. An initial report by the U.S. coalition found no more than seven civilians were killed in the August 22nd operation.
Breaking news this hour. Just this morning hurricane Ike downgraded to a Category 2 storm., but still very powerful as it pounds through Cuba. Almost three quarters of a million Cubans have fled for higher ground already. The storm is expected to strengthen when it hits the warm waters of the Gull of Mexico. But, forecasters say it's still too early to tell where along the Gulf Coast it could hit. CNN is the only network with a bureau in Cuba, and our Morgan Neill is live in Havana for us, right now where Ike is expected to hit later this morning.
Morgan, what's it like right now?
NEILL: Well, we've started to see some light winds but we are still a good ways away from this storm. You say the storm has been downgraded. Let me tell you, people here in Havana, would love to see it get downgraded further. They have seen the dramatic pictures from the east of the country.
When this storm came ashore at a Category 3, in the city of Baracoa, on the eastern most shore we saw waves that went over the top of a five-story building and that brought heavy flooding. We've got reports of more than 1,000 homes damaged or destroyed there. Trees knocked down. Power lines down all kinds of damage. This storm now moving to the center of the country and if you look at the path of this storm. That's where you begin to understand how wide.
So many people have been evacuated. Essentially it is going from the far east of Cuba, running along its length, expected to lead through Havana at some point tomorrow. Now I will tell you why in particular people want to see the storm weaken, because here in Havana, in old Havana in, particular a lot of old decrepit colonial buildings, these are buildings that loose big pieces of concrete sometimes in a heavy rainstorm. Now imagine what would happen if hurricane force winds were to sweep into that part of town?
CHO: Just to see those 50-foot waves crashing ashore there, you can see, incredible. Morgan Neill watching it for us from Havana.
Meanwhile Ike looks to be the sixth consecutive named storm to hit the U.S. just this year with the very latest on the track now we are going to head to Rob Marciano at the CNN Hurricane Headquarters in Atlanta.
So Rob the peak of the season is still a couple of days away. Is this unusual?
MARCIANO: Well we have definitely seen an above average year. That is the forecast, it looks like that forecast is going to verify, it is an above average air of the past 15 years and that will probably continue for the next five. Here is the center right over Cuba, expected to scoop the southern coastline of Cuba and then re-emerge into the Gulf of Mexico.
Warnings and watch throughout tropical storm the morning. Hurricane watches from the Florida Keys. You will have storm surge maybe two to four feet and then winds, probably at least tropical storms force, likely beginning tomorrow and through the day tomorrow afternoon. Here we go into the Gulf of Mexico.
And we get to Cuba that will be a big question. The track is such that late this week, Thursday, Friday or Saturday, likely affecting somewhere from the panhandle of Florida to the Mexican coastline and Texas border there, and that's the deal, Alina, once these things get into the Gulf of Mexico, that have any sort of mortally component which this thing will it's got at some point hit the U.S. So it does look very likely there will be a landfall somewhere along the Gulf coast by the end of this the week.
CHO: But generally those warm waters strengthen the storm so I know you'll be watching this area closely for us. Rob thank you.
MARCIANO: Got it.
CHO: Kiran.
Well Vice Presidential Candidate Sarah Palin energizing the evangelical base of the Republican Party and now we're learning more about her own personal faith.
Jessica Yellin joins me from Anchorage, Alaska with a look at church where Palin grew up.
CHETRY: Hi Jessica.
JESSICA YELLIN, CNN CORRESPONDENT: Hi, Kiran. A video of Palin's recent visit of the church where she grew up has stirred some interest on the Internet, now the McCain is not saying much about Palin's faith. They say she was Baptized catholic now she attends a number of churches but we took time to visit the church where Palin had worshipped the most.
(BEGIN VIDEOTAPE)
YELLIN (voice over): In June, Sarah Palin spoke at the Wasilla Assembly of God where she has worshipped for much of her adult life.
GOV. SARAH PALIN, (R) VICE PRESIDENTIAL CANDIDATE: It was so cool growing up in this church. And getting saved here. YELLIN: She was addressing graduates of the youth ministry program. Which promotes itself with this video.
UNIDENTIFIED MALE: God has a destiny for the state of Alaska.
UNIDENTIFIED MALE: One of the keys in god's plan for Alaska. The United States, the entire world.
YELLIN: The church teaches that Alaska will be a shelter at the end of the world.
ED KALNINS, PASTOR, WASILLA ASSEMBLY OF GOD: I believe Alaska is one of the refuge states. Come on, you guys, in the last days, and hundreds of thousands of people are going to come to the states to siege refuge.
YELLIN: Like many Pentecostal churches the Wasilla Assembly of God practicing speaking in tongue. Whether Palin shares these beliefs is unclear. During her June visit she described the Iraq war and a natural gas pipe she is trying to build. It is part of gods plan.
PALIN: Pray for that.
YELLIN: Since she hit the national stage, the governor has not spoken publicly about her faith. This parishioner believes the Wasilla Assembly of God shapes Palin's belief.
TERRY NELSEN, PARISHIONER: She has a better idea of what god is wanting her to do and guiding her and leading her, and that it's coming from him.
YELLIN: Since 2002, Palin has regularly attended a non- denominational church with more traditional practices. Her current pastor says.
LARRY KROON, PASTOR, WASILLA BIBLE CHURCH: She cares about her god and it doesn't get in the way of anything. I think it enhances her, and in terms how she approaches everybody with respect.
(END VIDEOTAPE)
YELLIN: Kiran, we attended the Sunday service, and it included singing, dancing and a lot of spontaneous personal prayer. The pastor there said that he is praying and asked the congregation to pray for all the presidential and vice presidential candidates -- Kiran.
CHETRY: And how are the church members handling all the media attention? What are they saying to you about how they feel about that?
YELLIN: Well, they're finding it surprising. It's a very small town. There are only about 100 people in the service and one of the people said they got 500,000 hits on their web site one day. The pastor said that they have been baptized in the media pool, and they feel a little bit burdened by some of the past press attention they've gotten, which is why they didn't let cameras into their Sunday services or do interviews. They were friendly. They welcomed us for their entire service -- Kiran.
CHETRY: All right. Jessica Yellin for us in Anchorage. Thanks.
Obama's new running mate.
MICHELLE OBAMA, WIFE OF SEN. BARACK OBAMA: We talk about this dog every day.
CHETRY: A contest to find the next first pet. Jeanne Moos runs down the results.
JEANNE MOOS, CNN CORRESPONDENT: You can't run around the white house with Turkey in your ears.
CHETRY: You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHETRY: With fewer than two months to go before the election, we want to keep bringing you the candidates in their own words. Here's Barack Obama taking aim at John McCain who's been saying that he's the man to bring change to Washington.
(BEGIN VIDEO CLIP)
SENATOR BARACK OBAMA, (D) PRESIDENTIAL NOMINEE: John McCain has said that change is coming. That's what he said. Now -- now think about this. This is coming from the party that's been in charge for eight years. They've been running the show, been up in the White House. John McCain brags 90 percent of the time I have voted with George Bush. He and I, we're right there. And suddenly, he's the change agent. He says, I'm going to tell those lobbyists that their days of running Washington are over.
Who's he going to tell? Is he going to tell his campaign chairman, who's one of the biggest corporate lobbyists in Washington? Is he going to tell his campaign manager? Who was one of the biggest corporate lobbyists in Washington? Is he going to tell all the folks who are running his campaign who are the biggest corporate lobbyists in Washington? Who is it that he's going to tell that change is coming?
I mean, come on. They must think you're stupid. Except for economic policies, and tax policies, and energy policies, and health care policies, and education policies, and Karl Rove-style politics, except for all that, we're really going to bring change to Washington.
(END VIDEO CLIP)
CHO: Issue number one for voters is the economy. It will be front and center on the minds of voters this election, of course. We want to help you make an informed choice when you cast your ballot for president.
All this week returning to Ali Velshi for a look at where the candidates stand on those pocketbook issues and we're kicking it off this Monday morning with taxes. The candidate's plans and the impact they could have on your wallet. Ali joins us now with a look at that. The plans actually don't look all that different until you get to that really high income bracket.
ALI VELSHI, CNN CORRESPONDENT: Right.
CHETRY: Exactly.
VELSHI: Let me break them down for you. There are differences in the approach that Barack Obama and John McCain take to personal income taxation. But I wanted to break it down by income level this is done by the Tax Policy Center. They have taken a look at the policies putting forward and how it would affect income.
Let's start at the lowest taxable income level, earnings between $38,000 and $66,000 a year under John McCain you can see your taxes go down by $325. Under Barack Obama triple that, you would see it go down by more than $1,000 a year. Take it up to $66,000 to $112,000 under John McCain you'd see a drop of almost $1,000. Under Barack Obama, a drop of more than $1,200. Now would you get above $112,000, you see jeer it changes. $112,000 to $161,000, your drop under John McCain is bigger, $2,500 a year in federal taxes. Under Obama it is a drop of just over $2,000.
And when you go higher than that, $161,000 to $227,000, you start to see where the differences emerge and by the way the trend continues this way. From $161,000 above you see drop of $4,000 under John McCain and a drop of a little less $3,000 under Barack Obama. As you get into the higher income levels you definitely see a bigger drop under John McCain and you start to see an increase under Barack Obama. So for most Americans, median income in America is $151,000. So most Americans, as Barack Obama says are going to see a tax cut under his plan. All Americans will see a tax cut under John McCain's plan.
CHETRY: Not sure when you hear Barack Obama on the campaign trail saying that he would give a tax cut to about 90 percent of the people in America.
VELSHI: That's correct.
CHETRY: Ali Velshi good to see you. Thanks.
He seems to be a hit here. How's he playing overseas? Becky Anderson, live in London. You're watching the most news in the morning.
(COMMERCIAL BREAK)
CHETRY: Well both political conventions set ratings records here at home and overseas and Europe, interest was huge as well. Barack Obama getting achieving rock star status in places like Berlin. His opposition campaign commercials have sort of taken a few digs out and about. Well now Sarah Palin is stealing some headlines as well.
CNN's Becky Anderson has reaction to the convention live from London. What do they think across the pond, Becky?
BECKY ANDERSON, CNN CORRESPONDENT: Well, let me tell you, they have been massively well watched, these U.S. conventions. And the headline writers across Europe really have been having a field day on a regular basis on a daily basis. You think here if you didn't know better this was a Barack Obama, Sarah Palin contest.
Let's start off with Barack Obama. Polls leading up to the convention shows if Europeans had to vote he would sweep to victory with something like 80 percent. Support in the Berlin, only serving, to put him on high than he's seen before. Many, many Europeans at work, but then, of course, came that Sarah Palin speech.
This is what some people thought of that.
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UNIDENTIFIED MALE: She's a mother. She's raised five children and fair enough, her daughter's got pregnant at 17, but I think she's probably a decent family woman who managed to have a career as well.
UNIDENTIFIED FEMALE: A bit, you I don't know, she doesn't seem like the ideal candidate. And for the American people, especially the Republican Party.
(END VIDEO CLIP)
ANDERSON: There you go. She has had commentators on the general public alike parallels to Margaret Thatcher calling her the U.S.' Margaret Thatcher. Described by one British journalist asked, are Americans amazing on those who don't like her but immensely pleasing to those that do.
The "Sunday Times" described Palin's speech and reaction to it like this. There is a wisp of baby oil and moose blood about her, rouses delegates to waggle their punches at her. This cartoon put it up so you can see it. Rather some way the commentators feel here that Sarah Palin should be running the Republican Party at this point and not John McCain.
That is very much the way the people are feel here. Obama was sort of, heads and shoulders above John McCain before these conventions started, but after Sarah Palin's speech, there is an awful lot more interest in her at this point.
CHETRY: That is really interesting. As you said, it is almost as though there's a Barack Obama/Sarah Palin contest. What about McCain or Joe Biden? What's the interest in them?
ANDERSON: Joe Biden really hasn't made any headlines here. The fact that even McCain's speech it was well covered here, but it wasn't covered particularly well by the press the following day. I think it was best summed up, though, by one blogger here in the UK which described it this way. It is a narcolepsy inducing contortion. That is how they described John McCain's speech. To a certain extent how they feel about him. Not everybody proposed to looking at these American elections wondering whether John McCain is really the right man after the Bush administration, incredibly unpopular in Europe, wondering whether John McCain at his age a speech like that is really the right man for the job.
CHETRY: Safe to say not a lot of GOP fans across the pond this morning. Becky Anderson thanks so much for being with us.
CHO: Eleven minutes before the top of the hour. "CNN NEWSROOM" is minutes away. Heidi Collins is at the CNN Center with a look what's ahead.
Hey girlfriend, good morning. What are you watching?
HEIDI COLLINS, CNN ANCHOR: Hi there, Alina. We are watching all kinds of stuff, as usual right here in the "NEWSROOM." In fact, Uncle Sam is now buying and reselling mortgages. What that means to you as a homeowner and taxpayer. Big story this morning.
And getting out of town before a big blow. The Florida Keys evacuates. Ahead of hurricane Ike.
Plus, rescue at sea. A father and his son tread water for 15 hours. We'll tell that story. We are going to tell you why they're so happy to get started at the top of the hour. Right here on CNN. Back to you Alina.
CHO: We'll be watching.
COLLINS: Thanks.
CHO: Thank you.
Mystery meat.
UNIDENTIFIED MALE: Just play baloney.
CHO: Elizabeth Cohen is what you need to know about school lunches.
UNIDENTIFIED MALE: If you care about the health of your child you don't want your child to be eating processed meats.
CHO: You're watching the most news in the morning.
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CHO: Welcome back. It's back-to-school this week for millions of children across America. That means back-to-school lunches, too. More and more there has been a call to make those school lunches healthier.
CNN's medical correspondent Elizabeth Cohen joins us from Atlanta, to talk why some people want your kids' favorite foods off the lunch plate. Hey, Elizabeth. Good morning. We're talking about the mystery meat here, right?
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Good morning, Alina. Specifically we're talking about meat processed with nitrate. There is lots of discussion, lots of debate.
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COHEN (voice-over): Safe in a staple of school lunches for decades. Hot dog, pepperoni pizza, ham.
Now they're increasing calls for schools to drop processed meats from your child's menu. The reason nitrate. Some studies linked it to cancer. Doctor Walter Willett is chair of the Department of Nutrition at the Harvard School of Public Health.
WALTER WILLETT, HARVARD SCHOOL OF PUBLIC HEALTH: If you care about the health of your child you don't want your child eating processed meats to lunch at all or at school.
COHEN: The American Cancer Society says eating processed meats increases exposure to potential cancer-causing agents and should be reduced as much as possible. The American Institute for Cancer Research says simply, avoid processed meats. But not everyone agrees. Randy Huffman is president of The American Meat Institution Foundation an industry sponsored advocacy group and he has taken his case right to today's version of the public square. YouTube.
RANDY HUFFMAN, PRESIDENT, THE AMERICAN MEAT INSTITUTION FOUNDATION: If you like cured meats that contain sodium nitrate you should eat them with confidence.
COHEN: Huffman points out there are studies showing a link between cancer and processed meats but there are also studies that do not show a link.
HUFFMAN: The science is not certain.
COHEN: He says many foods like spinach or pomegranate naturally contain nitrate.
HUFFMAN: Liter of pomegranate juice contributes about 100 times more nitrate than this hot dog.
COHEN: We put that to Doctor Willet.
WILLET: This is just plain baloney.
COHEN: Willet and many other experts say nitrates are fine in fruits and vegetables and are only a problem when combined with protein, like in meat.
The meat industry disagrees.
HUFFMAN: This is what you're referring to is an old theory. COHEN (on camera): We showed that YouTube video to several experts and they said they found it very misleading.
HUFFMAN: I don't know who your experts were, but you're not talking to the right ones.
COHEN (voice-over): So while expert's debate processed meat won't be disappearing from school lunch menus anytime soon.
(END VIDEOTAPE)
COHEN: We spoke with officials from the School Nutrition Association, they represent dietitians who work in school systems and here's what these dietitians had to say. They said the science behind the calls to eliminate process meats from school is far from conclusive. Alina.
CHO: We're all about the bottom line here Elizabeth as you know. What is the bottom line according to experts about eating processed meat? Especially if you're young?
COHEN: Right. The bottom line is that there's no absolutely clear answer from science. There are many scientists, many of them associated with the meat industry, who say that there's absolutely nothing wrong with these meats and then there are scientists on the other side who say that there may about link between processed meats and cancer.
CHO: So we're going to have for more studies.
All right. Elizabeth Cohen joining us from Atlanta. Elizabeth thanks.
CHO: Obama's new running mate.
MICHELLE OBAMA, SENATOR OBAMA'S WIFE: We talk about the dog every day.
CHO: A contest to find the next first pet. Jeanne Moos runs down the results.
MOOS: We can't walk around the White House with turkey in your ears.
CHO: You're watching the most news in the morning.
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CHETRY: You know, that song has Britney Spears written all over it. It's actually her big comeback, and she's all the buzz this morning. A huge night for her at MTV's Video Music Awards. There she was. She won three awards, including the biggest one, Video of the Year for this song, "Piece of Me."
(BEGIN VIDEO CLIP) BRITNEY SPEARS, WINNER VIDEO OF THE YEAR: Wow. Thank you. I'm in shock right now. I was not expecting this. This is just an honor to have this award right now and I just want to dedicate this to all of my amazing fans out there for all your support. Thank you --
(END VIDEO CLIP)
CHETRY: There she was. And she kept all of her speeches short. She thanks God, her fans, and her kids. She didn't sing this time. But, boy what a change and what a comeback over last year's, what many critics called, a disastrous performance.
Well, also it was a successful night for Serena Williams. Williams won the U.S Open Title, regained her number one ranking in the process. There she is celebrating her victory. You think she's excited about it? This is the third time she has won the U.S. Open. The men's final between Andy Murray and Roger Federer, was pushed back because of rain and that will be played later this afternoon.
CHO: Well with all the focus on the candidates and November 4th, you may not know that there was actually another vote just taken.
And CNN's Jeanne Moos takes a look at who won that election, for first pooch.
(BEGIN VIDEOTAPE)
MOOS (voice over): Ah, group hug. All that's missing is a family dog. A dog the Obama's have promised their daughters, win or lose the election.
M. OBAMA: We talk about the dog every day.
MOOS: Talk about this -- American Kennel Club held its own election. What kind of dog should the Obama's get? One of the kids have allergies, they selected five hypoallergenic dogs. Ranging from the Bichon Frise to the Chinese Crest. Some 42,000 votes later we have a winner.
MOOS: Cinched the nomination. Just barely beating out the Wheaten Terrier. Just imagine. White House dinners, you can't walk around the White House with turkey in your ears.
The only thing is the girls seem to be partial to beagles.
B. OBAMA: This is one of the ones that they've been looking at.
MOOS: Anyway, if Obama wins, can you match a poodle
Jeanne Moos, CNN.
(END VIDEOTAPE)
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