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American Morning
Democrats Want More Oversight on $700 Bailout Plan; Obama Attacks McCain on Social Security; McCain and Obama Offers Views on Bailout Plans; Obama on Social Security Claims: Fact or Fiction?
Aired September 22, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: And we're almost two minutes after the hour. Here are some of the top stories this morning. Washington's efforts to control the financial crisis moving the markets big time this morning. Overseas markets rallied. But here at home, the Dow futures are in negative territory down about 100 points.
Iran's hard-line president upping his anti-American rhetoric ahead of speaking at the U.N. General Assembly. He spoke at a rally to mark the 28th anniversary of the Iran-Iraq war. Mahmoud Ahmadinejad saying if anyone commits an offense against Iran's legitimate interest, its armed forces will "break his hand before he pulls the trigger. The phrase "legitimate interest" is Iran's way of referring to its nuclear program.
Jury selection begins today in the government's case against Republican Senator Ted Stevens. Among other things, the Alaskan senator is accused of concealing $25,000 worth of gifts and renovations to his home from an oil company. Stevens, who's in the midst of a tough re-election fight, says he is innocent.
Tina Fey is TV's new golden girl. Her series "30 Rock" picks up three Emmys, including Best Comedy. And Fey herself won for Best Actress. The series "Mad Men" won Best Drama. The win is the first time ever that a basic cable show has taken home that award.
ROBERTS: This morning, the devil is in the details as congressional leaders try to hammer out the unprecedented $700 billion bail out bill. There is a lot at stake because, as we have seen, whatever happens in Washington is going to have a huge effect on Wall Street. Here's CNN's Kate Bolduan with that part of the story.
KATE BOLDUAN, CNN CORRESPONDENT: Good morning, John and Kiran. Treasury Secretary Henry Paulson is pressing Congress to take immediate action on the administration's proposed $700 billion bailout.
(BEGIN VIDEOTAPE)
BOLDUAN (voice-over): It would be the biggest government intervention since the Great Depression. Treasury Secretary Henry Paulson says it's necessary.
(BEGIN VIDEO CLIP, ABC'S "THIS WEEK")
HENRY PAULSON, TREASURY SECRETARY: We need this to be clean and quick, and we need to get it in place. The biggest help we can give to the American people is to stabilize our financial system right now.
(END VIDEO CLIP)
BOLDUAN: Under the plan, treasury would buy up bad mortgages from banks and other financial institutions hoping banks would then be more willing to lend. And once the housing market rebounds, the government would try to sell the loans. Congressional leaders sense the urgency of the crisis and are pledging bipartisan support.
(BEGIN VIDEO CLIP, ABC'S "THIS WEEK")
REP. JOHN BOEHNER (R), OHIO: This could be the most serious financial crisis that the world has ever dealt with. And this is not a time for people to be playing games.
(END VIDEO CLIP)
BOLDUAN: Democrats don't dispute that but say the plan should have some protection for taxpayers because they are taking on such risk.
SEN. CHRIS DODD, CHAIRMAN, SENATE BANKING COMMITTEE: We make a huge mistake if we just basically write a check for $700 billion and turn it over without demanding accountability, addressing home ownership, and raising major concerns about taxpayer exposure.
BOLDUAN: But Secretary Paulson insists the priority must remain emergency help to the financial markets to avert further crisis.
(BEGIN VIDEO CLIP, ABC'S "THIS WEEK")
PAULSON: What we're doing right now is, first, stabilizing the market. That is only part of it. Once we stabilize the market, we need to ask ourselves, how did we get here and what do we do about it so we don't get here again.
(END VIDEO CLIP)
(END VIDEOTAPE)
BOLDUAN: Treasury and congressional staffers and lawmakers have been in talks throughout the weekend. The big question, no matter what final form this plan takes, will it work? Secretary Paulson says it must, and lawmakers aim for final passage by the end of the week -- John, Kiran.
CHETRY: Kate Bolduan for us in Washington, thanks.
Well, the financial turmoil giving Barack Obama a new opening to attack John McCain on Social Security. The McCain campaign hitting back hard and taking the message to Florida's Republican heartland where tens of thousands turned out over the weekend to hear Governor Sarah Palin.
CNN's Jim Acosta is live in Lady Lake, Florida, with more for us. Hi, Jim. JIN ACOSTA, CNN CORRESPONDENT: Hi, Kiran. There's a reason why Social Security is called the third rail in politics. And right now, John McCain and Sarah Palin don't want to touch it. Governor Palin landed in Florida under a barrage of attacks from Barack Obama on this issue.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): In this key swing section of Florida, Sarah Palin told a sea of supporters, many of them senior citizens, that only John McCain can fix the mess on Wall Street.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: He told Congress -- he warned Congress that we needed to do something before these problems became a crisis. But Congress did nothing and now Americans are paying the price.
ACOSTA: But Palin had no response to a new line of attack from Barack Obama who is trying to link the financial crisis to McCain's past support for changing Social Security, changes the Democrats label as privatization.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: When I'm president, we are not going to gamble with Social Security. If my opponent had his way, millions would have watched as the market tumbled and their nest egg disappeared before their eyes.
ACOSTA: For years, McCain has favored allowing young Americans to divert payroll contributions away from Social Security and into financial markets.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: You have to go to the American people and say we don't -- we won't raise your taxes. We need personal savings accounts, but we've got to fix this system.
ACOSTA: Accusing Obama of entitlement fear mongering, the McCain campaign insists the Arizona senator is simply trying to keep the program solvent.
MCCAIN: I will not privatize Social Security.
ACOSTA: Democrats are also highlighting an article written by McCain in a trade magazine for actuaries in which the Republican nominee calls for deregulating health care. Opening up the health insurance market to more vigorous nationwide competition, the senator wrote, "As we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation."
OBAMA: So let me get this straight. He wants to run health care like they've been running Wall Street. Folks, you cannot make this stuff up.
ACOSTA: Not so, says the McCain camp. But with Florida almost dead even, McCain supporters here want their candidate to steer clear of Social Security. TONI MAGGIORE, MCCAIN SUPPORTER: I don't think he's going to go through with it because he knows a lot of us are against it. I believe that anyhow.
(END VIDEOTAPE)
ACOSTA: As for that article on health care, the McCain campaign says he was only talking about increasing competition as a way to lower costs for consumers. The Obama campaign is not buying it. They sense they've got an issue that is tailor-made for senior citizens here in Florida - Kiran.
CHETRY: Jim Acosta for us in Lady Lake this morning, thank you.
And we just heard from both of the candidates on Social Security. But do their past records match their current speeches? In just a moment, the truth squad puts Barack Obama's attacks to the test.
ROBERTS: And a close call for the leaders of Pakistan. A last- minute change to their dinner plans keeps them away from the huge hotel truck bombing. And we have new video of the explosion to show you this morning.
CHETRY: Shake-up on Wall Street. A late night move to save the only two giants left. Christine Romans looks at what the historic shift means to you.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. You know, we're talking about the fact that this really is the end of Wall Street as we know it. We are talking about Goldman Sachs and Morgan Stanley...
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Morgan Stanley.
CHETRY: ... the last remaining investment banks. What happened?
ROMANS: And they've asked the Fed to reclassify them as bank- holding companies. This allows them to come under more Fed scrutiny and more Fed regulation. It allows them to raise more money. It allows them to buy some other maybe beleaguered banks. Basically ends those days of, you know, the high risk, high-reward masters of the universe type of stuff.
So, Goldman and Morgan, basically, the Fed helping -- bailing these two out. They have been targets on Wall Street, as you know, over the last week. The stocks have been hammered over and over again as people had speculated that maybe they'd be the next to fall. So this is them being taken off that list.
Now, what does it all mean? We keep talking about what's happening in the economy. What would the economy look like without a bailout? I mean, when I talk to people and the e-mails we're getting and the feedback we're getting is that many people in this country are not fans of bailouts.
But this is what the economy could look like without a bailout. You would have companies that wouldn't be able to make payroll to pay their bills. Consumers and small businesses couldn't get loans. That's already happening, folks. Corporate profits would fall that hurts government revenues, worsening an already burgeoning budget deficit.
Housing prices would continue to fall. They already have been. That means property taxes decline and then funding drops for schools and local services. We've already seen this. Strapped local and county governments closing pools, laying off crossing guards, raising park entrance fees. These are the kinds of things that are happening right now that a lot of folks say could get worse.
Now we know that the Fed chief and we know that the treasury secretary sat down with, you know, key members of Congress. And I would love to know exactly what was said in there.
Chris Dodd, Senator Chris Dodd, the chairman of the Banking Committee, he said -- he said that there was silence for a good 10 seconds after they sat down.
You know, Bernanke is a depression expert. And the Treasury Secretary is a Goldman, you know, a Goldman alumni. I mean, these are two people who really know what's going on who convinced Congress that something really has to be done quickly. So we don't know what kind of worse case scenario they painted.
We know that what's happening right now in the economy is already starting to really hurt and hurt everybody. So I guess they needed hundreds of billions of dollars to make it not be worse.
CHETRY: All right. Well, there has to be a bright side to this somewhere. We're certainly not seeing it anytime soon. Christine Romans "Minding Your Business" for us this morning. Thanks.
ROBERTS: Barack Obama and John McCain each claiming that he is the one looking out for your retirement, but do their records stand up against their rhetoric? Alina Cho and the truth squad busy at work this morning checking fact from fiction.
Hi, Alina.
ALINA CHO, CNN CORRESPONDENT: Hey there, John. Good morning. Is it true that if John McCain had his way, millions of Americans would have had their Social Security tied up in the stock market?
Well, that's what Barack Obama is saying. We've got our truth squad on the case. They're checking the facts. And we'll have the answer when AMERICAN MORNING returns.
(COMMERCIAL BREAK)
ROBERTS: Sixteen minutes after the hour. Time to check in now with the truth squad. We are running the traps on statements and advertisements from the campaigns trying to separate fact from fiction. Alina Cho joins us now with more on Social Security and what the candidates are saying. Good morning to you.
CHO: Yes. If you are of a certain age and you work, you certainly care about this. John, good morning. It's all something that we have a major stake in. Eighty million Americans are expected to become eligible for Social Security benefits in the next 20 years. And figuring out how to keep the system solvent always a hot topic of debate.
Now, as you may have heard earlier in Jim Acosta's report, Barack Obama says John McCain is wrong on Social Security. But, in case you missed it, here's another look at what Obama said on Saturday in Florida.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL NOMINEE: If my opponent had his way, the millions of Floridians who rely on it would have had their Social Security tied up in the stock market this week. Millions would have watched as the market tumbled and their nest egg disappeared before their eyes.
(END VIDEO CLIP)
CHO: All right. So is it true? On his Web site, John McCain says, "He supports supplementing the current Social Security system with personal accounts but not as a substitute for addressing benefit promises that cannot be kept." The site does not specify how those accounts would work. And while McCain did support a 2005 proposal by President Bush to let workers invest in the market, none of this backs up what Obama said.
Let's break it down for you piece by piece. In the first part of the statement, Obama said millions of Floridians who rely on it, meaning Social Security, would have had their Social Security tied up in the stock market this week. Guess what? Not true. The plan McCain supported would not have applied to people now receiving benefits, only the younger workers.
Now, second part of the statement. Obama said millions would have watched as the market tumbled and their nest egg disappeared. Again, not true. The plan only allowed for limited investment to supplement the system. That's key. So a person's entire nest egg would not have been at risk and would not have disappeared, though it is fair to say that they're definitely would have been some sort of risk.
So the verdict from the truth squad on this one, you guessed it, false. Sometimes it's a little murky. You know, you can play it either way and, of course, the Obama campaign it would appear, according to our truth squad, took a portion of what Obama has said, some of his statements saying he used it to their advantage, which often happens on both sides in public.
ROBERTS: Never heard of such a thing. Gambling in Las Vegas? CHO: No.
ROBERTS: Didn't know about that. Alina Cho, thanks so much for that.
CHO: You bet.
ROBERTS: As you said, you know, these statements get thrown out there fast and furiously on the campaign trail.
CHO: Yes, they do. It's almost hard to keep track. They're so many of them. As I said earlier, my e-mail box is filling up with all kinds of suggestions so we're going to have some good ones for you all week.
ROBERTS: Right. And what's the difference between a truth squader and a pit buller?
CHO: Lipstick.
ROBERTS: There you go.
New questions this morning about Sarah Palin's record as mayor of Wasilla. Critics charging that she made alleged rape victims pay for their own exams. Others say it's not so. Nothing but lies. We'll tell you the truth.
It is the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-one minutes after the hour. The top videos right now on CNN.com. The most popular, unbelievable pictures from the scene of a terrible accident in Wisconsin over the weekend.
A helicopter crashing through the roof of a house in Kenosha. Two people aboard the chopper were killed. Amazingly, the family in the house at the time unharmed. No word yet on what caused the crash.
Also, a slithery surprise for two women in Vero Beach, Florida. They came upon this 10-foot boa constrictor, so they called animal control. They came over and captured the snake, not knowing there it was hurt. But a little disarming to know that you have a 10-foot boa constrictor in your backyard.
And check this out, a drag boat driver losing control. His boat flipping over several times. Watch this as it rolls. Boom. It literally comes apart around him.
It happened during practice runs for a power boat race in Mission Bay, California. The driver saying he was going 180 miles an hour at the time of the crash suffering only a few minor scrapes because the cockpit where he sits is its own little boat in and of itself. And after this whole crash, there you see the cockpit flying off to the left there, was just kind of sitting around. Opened the top of it. Said, come get me, folks. Those are the most popular videos right now on CNN.com.
CHETRY: Wow, what a ride. All right. Reynolds Wolf joins us now. We won't be seeing a lot of that boating, I mean, even the drag boating, because it is now -- we're about four -- four hours away from fall.
REYNOLDS WOLF, AMS METEOROLOGIST: I know, I can't believe it. Can you believe it? We've got the confetti cannon set up here in the studio. The balloons are going to fall. We couldn't be happier that fall is here.
I'll tell you what. Although fall is going to begin in just a few hours, we still have a great deal of hurricane season to deal with. Hurricane season will last through the rest of November, possibly longer. It does sometimes overlap. But we have a lot of things happening in the tropics, namely, this system you see moving through parts of Puerto Rico dumping a lot of rainfall.
Some places in Puerto Rico especially in the higher elevations could get up to 20 inches of rainfall. The storm is expected to strengthen. We'll keep a very sharp eye on this storm. No threat to the U.S. at this time, but it may become a named storm, possibly Kyle over the next couple of days.
Meanwhile, what is affecting parts of the U.S., some scattered showers off the Carolina coastline. We've seen some rain from places like Nags Head back over to Jacksonville, even into Myrtle Beach. Charleston this morning, some thunder boomers right off the coast near Fort Sumter.
Meanwhile, we make our way back to the nation's midsection. And from Grand Forks, good morning to you in Fargo southward of Brookings and in Sioux Falls, some scattered showers.
Later on today, parts of, say, Minneapolis back into Mason City and even into Des Moines, you may be dealing with scattered showers. Same story for you in pats of Chicago before the day is out.
There's a quick look on your forecast. We're going to have a whole lot more coming up so make sure you stay tuned. But for now, let's send it back to you guys in New York.
CHETRY: Reynolds, thanks.
WOLF: You bet.
CHETRY: The government is getting ready to spend $700 billion to bail out banks from bad loans. But do the presidential candidates have a plan that will fix the economy? We're going to take a look at both sides.
ROBERTS: Life in the fast lane.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: They're buying time. They're buying speed.
(END VIDEO CLIP)
ROBERTS: Paying for a private highway. How a dollar a mile can get you cruising in the luxury lane.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If I can save an extra 15, 20, 30 minutes, you know, that adds up over time.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to the "Most News in the Morning." As the government races to pass a historic bailout of financial institutions, the presidential candidates are talking about what they would do. Both are calling for speedy bipartisan consideration of the Bush administration's $700 billion rescue plan. John McCain wants more oversight of the treasury secretary, and Barack Obama thinks that the final deal must offer protection to taxpayers and homeowners, as well as to Wall Street.
So joining me now to discuss this is Democratic strategist Lisa Caputo and Republican strategist and CNN contributor Ed Rollins.
We're talking all the way up until we come on because this really is unprecedented. I mean, everyone is saying, a lot of analysts are saying this is really Armageddon as we're talking about our financial markets. Can this be done quickly, Lisa, as they're talking?
LISA CAPUTO, DEMOCRATIC STRATEGIST: I think --
CHETRY: Should it be?
CAPUTO: Well, I think everybody needs to take a step back and I think that this needs to be done methodically. We're in a very precarious situation. You know, a lot of people comparing it back to the 1930s. And I think we need to be methodical about this and not rush to push something through until things are thought through.
ED ROLLINS, REPUBLICAN STRATEGIST: I would totally agree with that. And the critical thing here is Congress has to reassert itself. This has been an administration that has been run by a chief executive who's tried to pull power daily. And I think this particular case, whoever the next president is, is going to have to live with this, and the next Congress is going to have to live with this.
So the Congress really needs to get back engaged and I think a rush to judgment, whatever the commitment you have to make, may have to say that the banks and what's left of Wall Street. But the regulatory and all that sort of stuff need to be done and Congress basically should not adjourn this week. It should stay in for the next month. There's only 30 of them in every race (ph) is and get this thing fixed. CAPUTO: You know -- you know, just to add to what is Ed is saying. Let's remember, we're dealing with a president who has a 30 percent favorability and a Congress who has a 20 percent favorability. Right? So, it's in their interest, let's remember, to rush something through. And it may not be in the American public's interest to rush something through.
CHETRY: And all of this, of course, is happening in the context of a presidential election. So everything that's said is more fodder for what's going on with our presidential election.
And so, I want to ask you, Ed. Obama said that the plan should include more relief for homeowners and distressed communities. Should McCain be talking about that as well as he tries to take his economic message out to the people?
ROLLINS: I think both of them got caught with their guards down last week. Neither of them had a real strong economic, other than traditional Republican and Democrat. I think at this point in time, both of them need to, once again, contribute to the process not make it just a partisan thing.
This is a big week. Going to talk about foreign policy in the debate but no one really cares about foreign policy this week. They really care about economic policy. So every step they take needs to be a productive and a bipartisan one.
CHETRY: And I want to ask you about this, Lisa, because Barack Obama said he didn't want to lay out a detailed plan because he didn't want it to get in the way of partisan wrangling, as he put it. Did he make a mistake by not releasing specifics when his challenger, John McCain, did?
CAPUTO: No, I don't. Because, remember, this is a very fluid situation. It's changing almost daily, certainly in the financial services world and he is being very thoughtful about this. He's assembled, what Ed said earlier, is kind of a dream team of economic advisers, which is true, who are advising him almost daily.
I would also say this, that economic security is tied to national security. And so, he needs to be thoughtful about this. And when we have the debates coming up this Friday, I think you're going to see both candidates kind of trying to make that tie because it's not just about the war in Iraq. It is about our financial security at home and how that positions us in the world.
CHETRY: So you think we're going to hear a lot more at the debates, which is -- they're Friday?
ROLLINS: There's no question. First of all, the U.N. is in town this week. It's always a big week. Equally as -- and where there is going to be a lot of job owning on us. Equally as important, I think the country is very insecure. And both of us are parents of young children. I mean, I think this is about them. This is not about us.
CHETRY: All right. Well, thanks to both of you for being with us. Lisa Caputo and Ed Rollins, good to see you as always.
ROLLINS: Thank you.
ROBERTS: Thirty minutes past the hour now, and our top stories that we're following for you this morning.
Right now, leaders of both parties scrambling to come up with a $700 billion economic rescue plan. One lawmaker calling it the "mother of all bailouts."
Also this morning, the Fed allowing the last two major U.S. investment banks to become bank holding companies. The move makes it easier for Morgan Stanley and Goldman Sachs to access cash by buying up smaller banks.
It's back to work this morning for principals and teachers in Houston. They'll have one day to get things ready for students to return tomorrow. City officials say all but 15 schools had made the necessary repairs to re-open after Hurricane Ike made landfall that was more than a week ago.
And new word this morning that Pakistan's president and prime minister were supposed to be eating dinner at the Islamabad Marriott Hotel when a huge truck bomb exploded in front of it. But their plans changed at the last minute and they were not there. New surveillance video shows the truck pulling up to the security gate. The video does not show the explosion because it destroyed the camera and left a 24- foot deep crater at that checkpoint.
KIRAN CHETRY, CNN, ANCHOR: Well, Sarah Palin often talks about her experience running a small town in Alaska before becoming governor. And that led to plenty of scrutiny of her record as mayor of Wasilla, population about 7,000. CNN's Jessica Yellin went there in search of facts about one very disputed issue.
JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: Since Sarah Palin has joined the ticket, one story has circulated widely on the blogs and in the mainstream media that when she was mayor, her town of Wasilla refused to pay the cost of rape exams. Her critics call it outrageous. Her supporters say it's a myth. We took a closer look.
(BEGIN VIDEOTAPE)
YELLIN: Multiple sources tell CNN when Sarah Palin was mayor of Wasilla, her police department charged some rape victims the cost of the forensic exam they get after an attack. The police chief says it was not a cost the town should bear. Eric Croft then a democrat in the state legislature sponsored a bill to force Wasilla to pay.
ERIC CROFT (D), FORMER STATE REP.: It's just one of those things that everybody could agree on except Wasilla. We couldn't convince the chief of police there to stop charging them. And so I introduced a bill in January in the legislature to prohibit that.
YELLIN: Experts testified that charging rape victims was incomprehensible, comparing the exam to dusting for fingerprints, only the victim's body is the crime scene.
TARA HENRY, FORENSIC NURSE, ALASKA RAPE RESPONDER: Having a victim have to pay then for their exam is just, you know, re- traumatizes them.
YELLIN: At the time, some other small Alaska cities also charged rape victims. This woman says she was billed by a city hundreds of miles from Wasilla. But Mayor Palin's city stood out.
HENRY: What I recall is that the chief of police in Wasilla PD seemed to be the most vocal about how it was going to affect their budget.
YELLIN: After the bill passed unanimously, Wasilla's police chief Charlie Fannin said it would cost the city $5,000 to $14,000 a year and he objected saying I just don't want to see any more burden put on the taxpayer. Judy Patrick was Palin's deputy and a friend.
JUDY PATRICK, DEPUTY MAYOR, WASILLA CITY COUNCIL: The bigger picture of what was going on at that time was that the state was trying to cut their own budget and one of the things they were doing was passing on costs to cities. And that was one of the many things that they were passing on the cost of the city.
YELLIN: She doesn't recall the issue coming before city council. And we found no record that Palin was aware her city was charging rape victims. The McCain campaign says Palin has never believed rape victims should have to pay for an evidence gathering test and to imply she did is an utter distortion of reality. Those who fought the policy are unconvinced.
CROFT: I find it hard to believe that for six months in a small town, a police chief would lead a fight against a statewide piece of legislation receiving unanimous support and the mayor not know about it.
YELLIN: Though Croft admit he can't recall discussing the issue with Palin. The rape kit charges have become an issue among Palin's critics because some say as governor, she has done little to combat Alaska's epidemic problem of violence against women. For years, Alaska has had the worst record of any state in rape and murder of women by men. For the record, as governor, Sarah Palin approved a funding increase for domestic violence shelters and reauthorized a counsel on domestic violence and sexual assault.
But this year, that council found some of Alaska's programs responding to violence against women remain underfunded.
(END VIDEOTAPE)
YELLIN: Other cities around the country also once billed women for the cost of their rape exams. But now that practice is rare. To qualify for funding under the violence against women act, law enforcement agencies now must pick up that cost. John, Kiran.
ROBERTS: Our Jessica Yellin reporting for us this morning from Alaska.
It's coming up on 35 minutes after the hour. Secretary of State Condoleezza Rice has got a big week ahead of her as world leaders convene in New York for the annual meeting of the United Nations General Assembly. She's facing several tough issues including Russia, Iran and North Korea. Joining me now, our state department correspondent Zain Verjee. We find her in New York this morning, which is a great place for you to be. So what's on her agenda today?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well Secretary Rice has been holding court. Already she jumped the gun and got here a day early. She's at the mega luxury hotel, the Waldorf Astoria and meeting with world leaders. Secretary Rice really faces some difficult challenges here, though, John. She's dealing with Iran. She's got to try and shore up the allies to try to get a fourth sanctions resolution on Iran. And that seems increasingly unlikely on the Israeli-Palestinian issue. It's unlikely that she's going to be able to get a peace deal.
On North Korea that's supposed to be this big foreign policy success of the administration. That may be starting to unravel and then, of course, on Russia, there are major tensions. Secretary Rice really ripped into Russia just a few days ago and now she's here at the United Nations and she's going to be coming to Russia with hat in hand because she needs the Russians on things like negotiations with Iran and North Korea. So it's going to be tough.
ROBERTS: So how much do you think she can get done? I mean, the process at the United Nations moves slowly in the best of times.
VERJEE: Exactly. Well it's going to be difficult to get anything accomplished. I mean, there's going to be photo-op after photo-op. A lot of them just tedious and repetitive. But there is that opportunity that they could be a breakthrough both officially in meetings, although there are also a lot of business that does get done on the sidelines as well. But the thing is, John, that a lot of world leaders here are looking at this administration and saying this is a lame-duck administration and they may not want to do business.
ROBERTS: In terms it of a breakthrough, where would there most likely to be a breakthrough.
VERJEE: Well, on Iran, Secretary Rice is really trying to get some kind of sanctions resolution here. It's going to be the fourth time around, but it's going to be really difficult. If she manages to get the Russians and the Chinese on board, which is really going to be the toughest thing for her. She may get a watered down resolution, which would send a symbolic message to the Iranians but not really achieve anything tangible with such little time left. But she has an incentive. She's got her legacy to look after.
ROBERTS: Well, I know you're watching it very closely all this week. Zain Verjee with us this morning in New York, which means for the next few days, the Big Apple will be a little bit brighter.
VERJEE: Thank you. CHETRY: And still ahead - financial market meltdown. The big question, what should you do with your money. Christine Romans is working on some practical tips for you. Hey, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Kiran, a Wall Street meltdown is a money crisis and money matters to everybody. We'll have some very important new information about your money when we come back.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. "Minding your business" right now. Christine Romans in for Ali Velshi. He took a little break. He was a little busy.
ROMANS: He's had a very tough week. I mean, he's been working really hard. We'll let him take the day off. But you know, we're taking a look at here what to do with your money. The number one question that I get from people. They may not even understand what a credit default swap is or some of these crazy Wall Street terminology that just exploded into America's living room. But people want to know what to do with their money. And the answer to that question is, it's different as the person who is asking it.
There are 300 million people in this country. And everybody is on a different stage of the American dream. If you are young, this might be a time to put money away - we call it dollar cost averaging where you're putting money into the stock market because in 10, 15, 20 years, things could be a lot higher than they are. But also if you're young, you might be having a hard time getting a job. Because we're looking at more jobs to be lost. You might have $20,000 in credit card debt which is or in student loan which is pretty much the average somebody getting out of college has. So, there are a couple of things to balance there.
If you are close to retirement, you shouldn't have a lot of money in the stock market anyway, folks. This is why we talk about making sure that you have the right exposure and the right kind of risk. If you are 55 and - or 65 even and nearing retirement, you shouldn't have a lot of money in the stock market. You should have some safe money put aside, too. So take a very close look at where you are. It might mean that some people may have to work a few more years, quite honestly.
So there are going to be opportunities for some people but there's going to be -- it's going to be tough for some others. If you can put money away if you are young and you have money and you can put it away, do it.
CHETRY: You said when you are older and nearing retirement you shouldn't be in the stock market. But there are some fears about money market accounts -
ROMANS: Oh, yes. Absolutely.
CHETRY: - which for a long time you just think, that's just putting money in a savings account.
ROMANS: And that's why this whole thing is so unsettling to people because some people thought they were doing the right thing and it turns out that they weren't. What I tell people a lot is you need to have three to six months of your operating expenses in a rainy day fund. Whether - it's got to be reasonably liquid. A lot of people don't. They got a lot of credit card debt. This is a time to remember, cut down on the credit card debt. Why are you running up so much credit card debt in the first place and something this is a real wake-up call that's happening here right now is that we need to live within our means and we need to teach our children to do the same because the government isn't. And you know we're running these huge deficits. And this just going to cost more. It's going to make that even worse. So you can really only take care of yourself. So, you know, don't worry about anybody else. Just take care of yourself. Put some money aside. Take a good look at where you are right now and you know, prepare for a rainy day because it's raining.
ROBERTS: It's pouring.
CHETRY: We need an umbrella, Christine. Thank you.
ROBERTS: Well, nobody likes sitting in traffic. But would you pay extra to drive in a special lane with fewer cars? We'll show you this hot new trend on the highway called hot lanes or Lexus lanes. You're watching the most news in the morning.
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ROBERTS: Here's a song for Philadelphia this morning. Singing about the skukle (ph). Clear and 60 degrees right there right now and sunny and 77 for the high today. Kicks us off with the news around the nation this morning.
Doctors are calling Adam Goldstein better known as Deejay A.M. and former Blink 182 drummer Travis Barker "walking miracles." They are expected to make a full recovery after the fiery crash of their Learjet in South Carolina on Friday night. Four others died in the crash, including the pilot and co-pilot. Federal safety officials say a blown tire may have caused the jet to skid off the runway.
Opening statements begin today in the trial for Atlanta courthouse gunman Brian Nichols back in March of 2005. Police say Nichols overpower a deputy, took her gun, and shot a judge, a court reporter, a sheriff's deputy and a federal agent. If convicted, the 36-year-old could face the death penalty. He has pleaded not guilty by reason of insanity.
CHETRY: In Miami, more than 100 pounds of explosives brought down the house once home to the city's basketball and football team. Crews were hoping the implosion of the Miami Arena would bring down parts of the walls when the smoke cleared. They were still standing. They now say that workers will pull down the walls of the iconic pink building in the coming weeks.
And going, going, gone. After 85 years, the New York Yankees said farewell to the house that Ruth built with a win over Baltimore. Before last night's game, thousands of die-hard fans were allowed to walk around the warning track. Many filling pockets and plastic bags with handfuls of dirt to keep as mementos.
ROBERTS: You know if and when Ali Velshi ever comes back here, we'll have to ask if he got a handful of dirt because that's where he was last night.
CHETRY: Or a Ziploc bagful.
ROBERTS: It's better to just put it in your pockets. It's more Yankee stadium.
47 minutes after the hour. A new class divide. Boys and girls separated by gender at school. Why some schools are putting kids in same-sex classes and teaching them in entirely different ways.
CHETRY: And the Obama campaign targets the faithful. What they are doing this week to try to win over religious voters. You're watching the most news in the morning.
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ROBERTS: We all hate sitting in traffic, but would you actually pay extra to drive in a lane with fewer cars? They are called high occupancy toll lanes or hot lanes. Some people also call them Lexus lane. Our John Zarrella shows you why the hot lanes are suddenly the hot new things on the highway.
JOHN ZARRELLA, CNN CORRESPONDENT: John, Kiran, it may be coming to a highway near you. A way you can avoid frustrating tie-ups in rush hour madness. But what a surprise. It's going to cost you.
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ZARRELLA: Watch this. A three-car simultaneous swerve between the pylons. An asphalt version of an Olympic slalom. Negotiating Miami's new high occupancy toll lanes, hot lanes for short has been an adventure.
CHRIS CRABTREE, COMMUTER: The joys of starting out with a new process and some change.
ZARRELLA: For 12 years Chris Crabtree has been driving interstate 95 to work in downtown Miami, 45 miles each way, two hours a day, spent in motorist misery. Now he has a choice, sit in rush hour gridlock or pay a toll and ride the hot lane and maybe keep his sanity.
CRABTREE: I'm in the car almost two hours a day, you know, if I can save an extra 15, 20, 30 minutes on either end, you know it adds up over time.
ZARRELLA: Miami is joining a growing list of places converting their most congested stretches of highways into pay ways where the toll fluctuates based on traffic volume. Some sarcastically dub them Lexus lane, just for the rich who can afford a "Driving Miss Daisy" ride, rather than a driving-you-crazy ride.
ART LEAHY, ORANGE CO., FLA. TRANSPORTATION AUTHORITY: They're buying time. They're buying speed.
ZARRELLA: But Art Leahy who overseas the California hot lanes says most people there use the lane out of necessity and not every day.
LEAHY: Some of them are gardeners, they need to get home for their children. We find people who do have expensive cars in the free lanes because they choose not to pay a toll.
ZARRELLA: Ten bucks for 10 miles during some peak travel time. And when they first open there's clearly a learning curve like once you're in the lane, you can't get out. Now you can try.
JOAN JONES, COMMUTER: I noticed one of the cars cut through the barricade and the trooper went right behind them.
ZARRELLA: that will cost a lot more than the toll. In Miami, the toll will fluctuate from 25 cents to $2.50. Now there are ways to avoid paying it. Just don't get on it. Or if you're in a registered three-person carpool, it's free. John, Kiran.
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ROBERTS (voice-over): The race card. Could voters' views undermine Barack Obama's bid? Two experts weigh in on a surprising study. It's the most politics in the morning.
And making history. Records topple as a newcomer scoops top honor.
(END VIDEOTAPE)
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ROBERTS: 54 minutes after the hour. Religious voters are highly coveted in the race for the White House, especially in the battleground states. This week the Obama campaign is stepping up its efforts to win them over with a series of events billed as a Faith, Family and Values Tour. David Brody is a CNN senior political contributor. He is the senior national correspondent for the Christian Broadcasting Network and he joins us now live from Washington with details on the tour. Good morning, David. Good to see you.
DAVID BRODY, CNN SENIOR POLITICAL CONTRIBUTOR: Hey, John, how are you?
ROBERTS: Good. A Pew research poll out recently shows that Barack Obama is trailing John McCain among white evangelical, Catholic and mainland Protestant voters. Is it possible for him with this tour to win that group or could he just try to make some inroads there. Do better than John Kerry did in 2004? BRODY: I think the plan here is to just make small inroads, more with the whitey than the gelicals, especially the conservatives. They're not really going for that group, John. I mean, they're looking at more of the moderate Evangelicals and the progressive Evangelicals, if you want to call them that. I mean, the Obama campaign looks at this to be about 30, maybe 40 percent of Evangelicals. They really believe they have a true shot at.
Remember, we're not talking about the pro-life, pro-traditional marriage Evangelicals but the ones in the middle. They believe they've got a shot. And remember, John, they've been doing this for a while. I mean, this goes back over a year back to Iowa. So this is pretty authentic from their standpoint. This is not politics as usual.
ROBERTS: You suggested in your article that the Catholic vote may be up for grabs this year, though.
BRODY: Yes, I think so. We're seeing some tangible evidence of that. You know, and actually, United Methodists in Ohio, the Obama campaign is targeting about 500,000 United Methodists that live in Ohio, because Ohio being a huge swing state. So that' very important. The Obama campaign is going to come under some scrutiny on the abortion issue clearly with Catholics. And that's going to be a big vote. Listen, you know -
ROBERTS: So how does he answer that question? Because he apparently didn't do it very well at that Saddleback Forum with Pastor Rick Warren.
BRODY: Right. My guess is the "above the pay grade" answer will go out the window. That won't be part of the lingo used obviously. Look, what they're going to do is what they've been doing now for a year. They're going to talk about the need to reduce abortions. And there seems to be some general consensus here on both sides that obviously that is very - extremely important. And they believe if they continue to talk about that, that will be a winning ticket for them on the abortion issue as a way to deflect some of the comments before.
ROBERTS: Governor Sarah Palin is very popular among that group of voters that he's targeting. How much of a problem is she for him now in his effort to try to peel some of them off to the democratic side?
BRODY: Well, she's a problem, there' no doubt about it, when it comes to conservative Evangelicals, with these conservative evangelical movement. But, you know, once again, if you're talking about the moderate Evangelicals, you know, this is where the Obama campaign believes they can play very well. And they've been doing this for a while, John, so I think you're going to see more of this and we're going to see quite a bit of it starting this week in Colorado Springs tomorrow. That's the first event.
ROBERTS: You know, there's another issue at play here too. Right now everybody is focused like a laser beam on the economy. If he goes down this road, of a lot of town hall meetings, a lot of emphasis on faith and values, does he risk reigniting the culture wars that democrats traditionally don't do very well on.
BRODY: Probably not, John. And here's the reason that they will tie faith into the economy. They will tie faith into immigration, into poverty and climate change. And that is what they've been doing. I've been at some of these faith town hall meetings especially back in Iowa. I mean they're not looking at this as talking about abortion and marriage. They're going to tie faith in, Barack Obama's faith, Joe Biden's faith, into every issue, not just cultural issues. And that's where they think they can broaden the agenda.
ROBERTS: It would be interesting to watch. David Brody, it's good to see you this morning. Thanks for coming in.
BRODY: Thanks, John. All the best.
