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Lawmakers Agree Among Themselves on Bailout Terms; Mississippi Spurned?; Taxpayer Anger Boils Up

Aired September 25, 2008 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: And up first in this hour, an apparent breakthrough in a bailout. You heard it first here on CNN.
Top lawmakers from both parties announcing an agreement in principle, if not a done deal, on a rescue package for the faltering financial system. The lawmakers say that they'll run their principles past the treasury secretary and President Bush, and should be able to pass something soon.

And still on the White House agenda, a meeting two hours from now with congressional leaders and the two main presidential candidates. As for the other debate, a meeting of minds on the bailout. It may allow John McCain to drop his demand to postpone tomorrow night's face-off with Barack Obama. We haven't heard anything for sure.

And we're on the story this hour with White House Correspondent Ed Henry, Brianna Keilar on Capitol Hill, and Suzanne Malveaux at the site of the scheduled presidential debate in Oxford, Mississippi.

Let's get straight to Capitol Hill and CNN's Brianna Keilar.

Brianna, what do you think? Is this the real deal?

BRIANNA KEILAR, CNN CORRESPONDENT: Well, I have to tell you, Kyra, there is still a bit of a semantic question of exactly what agreements on fundamentals principles mean, but what I can tell you that there was this meeting with Senate Democrats and Republicans, House Democrats and Republicans, where they were trying to hammer out their differences, and they did come out in a unified front, saying, at least as much as we can tell, that they are definitely moving closer to a deal. Take a listen.

(BEGIN VIDEO CLIP)

SEN. CHRISTOPHER DODD (D), BANKING CHAIRMAN: We have reached a fundamental agreement on a set of principles. One for taxpayers, which is tremendously important. We're giving the secretary authority that he will need in order to act, and the funding that he will need. We also have dealt, I think, effectively with the issue of effective oversight, with homeownership preservation, as well as executive compensation.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP) SEN. ROBERT BENNETT (R), BANKING COMMITTEE: The most encouraging thing that comes out of it, from my point of view, is that I now expect that we will indeed have a plan that can pass the House, pass the Senate, be signed by the President, and bring a sense of certainty to this crisis.

(END VIDEO CLIP)

KEILAR: And the reason why there is this semantic question about what this agreement on fundamental principles mean, well, we just heard a short time ago off camera from Senate Majority Leader Harry Reid, and he said that there are still major things to be resolved, but the spirit at the table is a very positive one. So he's not saying this is a totally done deal.

And I've got to tell you, Kyra, that this morning, when House and Senate Republicans met, there was still a whole lot of especially House Republicans who are not completely on board here. So obviously things are progressing, but whether it's a completely done deal, hard to say at this point.

PHILLIPS: All right. Brianna Keilar, thanks so much.

And the White House likes what it's hearing from the other end of Pennsylvania Avenue, but still wants to read the fine print. Ed Henry is there.

Ed, is everything still a go for this afternoon?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That's right. In two hours from now, we will see not just the congressional leadership here, but we will also see the two major presidential nominees, both Barack Obama and John McCain, coming here at President Bush's invitation.

For now, the focus is on what is happening on the Hill, and as you just heard from Brianna. We have a quick statement from Tony Fratto. The White House spokesman saying, "It's a good sign that progress is being made. We'll want to hear from Secretary Paulson and take a look at the details. We look forward to a good discussion at the meeting this afternoon." So that points it all back to here at the White House eventually, after those negotiations, what will happen here.

There is obviously some hope from the White House that by getting all of these parties together, that will break through any remaining sticking points. And of course you then have to get to the politics of all of this. And John McCain will certainly want to try and take some credit for the fact that he suspended his campaign yesterday, talked about trying to delay that presidential debate tomorrow, all to come back here to Washington. Urged Barack Obama to do the same.

You're immediately going to hear Democrats though saying this thing was already in the works. You're already hearing about those "fundamental principles" for an agreement from Capitol Hill hours before the actual White House meeting.

So I think what will be really fascinating will be to see what happens right after the 4:00 meeting, whether or not John McCain and Barack Obama, will they come to the cameras? Will they come to the stakeout together here on the White House north lawn together, separately? Will they talk about an agreement, and will that finally push it over the top?

Kyra.

PHILLIPS: All right. Ed Henry at the White House. We'll be paying attention, that's for sure.

And if you caught President Bush's speech to the nation last night, you may have had a hard time sleeping. You may also have thought, what a difference a few short months can make in the presidential perspective.

Take a listen and note the dates in the upper right corner.

(BEGIN VIDEO CLIP)

GEORGE. W. BUSH, PRESIDENT OF THE UNITED STATES: Ours is a belief that, one, we shouldn't bail out lenders. And so, in other words, we shouldn't be using taxpayers' money to say, OK, you made a lousy loan. Therefore, we're going to subsidize you.

I mean, this economy rests in the hands of the American people and not the halls of our government.

Our financial institutions are strong, and that our capital markets are functioning efficiently and effectively.

We can have confidence in the long-term foundation of our economy.

(END VIDEO CLIP)

PHILLIPS: Oh. Well, that was then. This is now.

(BEGIN VIDEO CLIP)

BUSH: Major sectors of America's financial system are at risk of shutting down. The government's top economic experts warn that without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.

(END VIDEO CLIP)

PHILLIPS: Well, that stark warning and the equally stark contrast from the recent past was the topic of our morning editorial meeting.

(BEGIN VIDEOTAPE)

TENISHA, EXECUTIVE PRODUER: The President comes out and says, you know, we have to do this. If we don't do this bailout then, you know, jobs will be lost.

PHILLIPS: What's interesting is I don't think a lot of people believe... (CROSSTALK)

TENISHA: I don't either.

PHILLIPS: And if we take a look at the latest polls about, do you believe him, do you trust him...

UNIDENTIFIED FEMALE: Do you trust him. I mean, that's very low.

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: I think it was just an attempt to get Congress to hurry the hell up and...

WALT, COPY EDITOR: Kyra mentioned the polls. I don't know that we have done one, but Maris released one last night. And I don't know when it was taken, but 60-something percent said they thought that the ought to enact it immediately.

JIM, LEAD WRITER: Bush gave his spupeech to try to tell people, we're not bailing out Wall Street, we're not bailing out the fat cats, we're rescuing the economy.

UNIDENTIFIED FEMALE: He was asked the question...

PHILLIPS: Wait -- as to how he would pose the question in the congressmen would pay attention to him.

SONYA, SEGMENT PRODUCER: That's the other big question. Do they even care what he's going to say? He's a lame duck.

PHILLIPS: There you go.

UNIDENTIFIED FEMALE: I think people will really sound off on that.

(END VIDEOTAPE)

PHILLIPS: All right. We apologize. Just a few seconds ago we had a bit of a technical problem. I hope you understand we were showing the President before and after, and then showing how that sparked conversation in our editorial meeting this morning.

That's what leads to our coverage, of course, on issues like this. Also, it also got us talking about e-mail questions.

We want to know what you have to say. We can throw that in as well. Did President Bush sell you on the bailout? Just send us an e-mail at cnnnewsroom@cnn.com. We will read what you have to say.

(COMMERCIAL BREAK)

PHILLIPS: Months getting prepared, millions of dollars already spent. The city of Oxford, Mississippi, and Ole Miss are counting on tomorrow night's presidential debate to put them in the global spotlight and to pump a lot of money into their economy.

So in our morning editorial meeting, we wondered how folks there would feel if the debate is delayed, as John McCain has called for.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: One good thing (INAUDIBLE) this morning, she said, you know, we're talking about the economy. There is, what, $3 million in for the city to make this actual debate go on. So if you don't have it, they are losing more money.

UNIDENTIFIED MALE: They've already spent, like, $5 million.

(CROSSTALK)

UNIDENTIFIED MALE: And they are really not happy.

UNIDENTIFIED FEMALE: Well, that's the thing.

UNIDENTIFIED FEMALE: I sent an e-mail to some, asking her, what are they saying on the ground? What is the buzz? What is the mood? And hopefully she can either look (ph) for something like that. I do like the whole Mississippi angle. I feel like we need to be talking to people on the ground there in Mississippi about what they are losing out on if this debate does not happen.

TONY, WRITER: And you've got kids in classes all week, classes that are tied to the debate. Everything is wrapped around this debate there.

(END VIDEOTAPE)

PHILLIPS: And Tony knows. He's from that area.

And our Suzanne Malveaux is actually there in Oxford, Mississippi. She has spoken with a number of university officials about tomorrow night's debate and what they've heard. And here is what she told me just a short time ago.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kyra, I also had a chance to talk to the governor, asked him that question, what does he base this on, the fact that this is going to be a go? Is it based on any current conversations?

He said this is based on previous commitments by both of these candidates, so obviously there's a certain sense of optimism. But I want to show you -- this is the campus newspaper here. And this really is the question, though, "Will He Show?"

There are a lot of people who aren't necessarily as confident as the governor as to whether or not McCain is going to show. And there's a lot of people, some students, some faculty, hundreds of volunteers, who are very frustrated, even angry, at this latest development.

But I did have a chance to talk to the vice chancellor, Gloria Kellum, and she told me that she is in constant contact about an hour, every hour or so, with the Debate Commission. That is ultimately the group that is going to make this decision. They're the ones who are talking to the campaigns. And they are still optimistic that this thing is going to happen tomorrow.

Take a listen.

(BEGIN VIDEO CLIP)

GLORIA KELLUM, VICE CHANCELLOR, UNIVERSITY OF MISSISSIPPI: The University of Mississippi works regularly with the commission. We've been in contact with them since yesterday afternoon. And we're all working together to make sure that this debate comes off on Friday night.

MALVEAUX: Have they told you that John McCain is going to show up tomorrow, that this is going to be a go?

KELLUM: The commission has not told us that, but we all -- the commission, the university, all of us expect this to be here.

(END VIDEO CLIP)

MALVEAUX: University officials say that, Kyra, this could cost anywhere from $5.5 million. That is the kind of investment that they have put in to preparing for this debate through private donations. They say there are hundreds of volunteers, there are hundreds of employees that are involved in this, but they are acting on the assumption here that this is going to happen.

And there are signs of that everywhere. We've got our press credentials for about 3,000 of us that are expected tomorrow.

I was in the hall where the debate is taking place, and there are two podiums that are set up there on stage. They say that they believe when it's all said and done -- there's been a lot of arm-twisting that's happening right now behind the scenes -- that these two candidates will be on that stage tomorrow night -- Kyra.

PHILLIPS: All right. Suzanne Malveaux there in Oxford, Mississippi.

Meanwhile, Mississippi's governor, Haley Barbour, says that he has got no inside information, but he expects tomorrow night's presidential debate to go on as planned as well.

(BEGIN VIDEO CLIP)

GOV. HALEY BARBOUR (R), MISSISSIPPI: Am I going to show up? Sure, I'm going to show up. I can't think of a bad day to be at Ole Miss. I expect that debate will happen tomorrow night, yes, between the two candidates for president.

(END VIDEO CLIP)

PHILLIPS: Well, Barbour, an Ole Miss grad, is a John McCain supporter.

Should tomorrow night's presidential debate be delayed? Our iReporters are weighing in. We're going to find out what they are saying.

(WEATHER REPORT)

(COMMERCIAL BREAK)

It's 2:25 Eastern Time right now. Here are some of the stories we are working on in the CNN NEWSROOM.

Money talks today at the White House. President Bush summons Barack Obama and John McCain for a sit-down on his financial bailout plan. Congressional leaders will join them to hash out compromises that might be needed to get the measure through.

And if it doesn't get through, today's meeting could be the candidates' only face-to-face this week. It's still unclear what will happen with tomorrow's scheduled debate.

Obama and the organizers say that they'll be there, and McCain, of course, said that he wouldn't if no bailout deal is reached.

The Ted Stevens trial getting under way in Washington. In her opening, the federal prosecutor called it a simple case of corruption by the Alaska senator. The defense blamed a contractor friend for Stevens' troubles.

And we've reported a lot of reaction to the bailout plan from Wall Street to Main Street, and now Montana, which is a key battleground state.

CNN Chief National Correspondent John King is there to gauge the taxpayer anger that has gone from a simmer to a boil.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Montana is a long way from Wall Street and Washington, geographically and culturally. And the talk of a big bailout there is the source of outrage here.

GOV. BRIAN SCHWEITZER (D), MONTANA: I say, my God, this looks like a condition where the powerful are going to give money to the rich. What's new?

KING: Democratic Governor Brian Schweitzer calls it a classic case of Washington disconnect from the real world.

SCHWEITZER: People say, "Now wait a minute. My stock portfolio has gone down. I lost 15, 20 percent. My value is down to zero, and they're going to bail out the big banks. What gives here?"

KING: Out here what gives is a sudden and dramatic shift in public opinion. The more people hear about the $700 billion plan, the more they're trying to block it.

SUZANNE SCOOTER: You're calling to protest. Well, you know, I've heard a lot of those. So let me just get this written down. KING: At the Helena office of Republican Congressman Denny Rehberg...

SCOOTER: Against the bailout.

KING: ... Suzanne Scooter says she's never seen anything like it. A flood of calls and ample evidence of why consensus in Congress is so hard to come by.

SCOOTER: What are you saying, basically hit the bottom and then start again?

KING: Dozens the past two days, and not one in favor of the bailout.

SCOOTER: I've gotten one, "Think about it."

KING: Montana senators give similar accounts of overwhelming opposition and concern Congress is in too much of a rush.

You're a governor. You understand sometimes you've got to make decisions that drive you crazy, but you've got to do it. Is this something you think they have to do, despite that feeling on the street? Or is this something where they need to say, "Whoa, time out. Let's think a little more"?

SCHWEITZER: Ask a few questions. If we're going to bail these coyotes out, well then how about if we have an equity position? Why wouldn't the taxpayer make a little money if they do turn around? Instead of just shoveling that money out the door and have them pay themselves now big golden parachutes again?

KING: All this in the closing weeks of a fiercely- contested presidential campaign, and it's a pointed reminder most members of Congress face the voters, too.

And at a time of profound economic anxiety, it's apparent here that the politicians promising to fix things are held in considerably less than high esteem.

John King, CNN, Helena, Montana.

(END VIDEOTAPE)

PHILLIPS: Well, for President Bush, a public backlash against a massive plan to bail out Wall Street with taxpayer dollars. Protests are taking place across the country today. They include the demonstration that you're seeing here in New York City.

Well, you remember Willie Sutton? He's famous for saying that he robbed banks because that's where the money is. Well, nowadays, the real money is not in vaults, and you don't need a gun to steal it. You do need special know-how to root out white-collar corruption though, as the FBI now suspects in the financial market meltdown.

All this brings me to Harold Copus. He's a former FBI special agent and expert in the field of forensic accounting. CSI Wall Street, as we have been calling it. Let me tell you, this is probably something that you wish you were active on.

HAROLD COPUS, COPUS SECURITY CONSULTANTS: Oh, I tell you, I just can't wait. If Mueller would call me up and ask me to come back, I would go back in a minute. Somebody has got to go to jail big-time for this one.

PHILLIPS: Is bigger than Enron?

COPUS: Far bigger than Enron. I'll tell you this -- this is a scandal on steroids.

PHILLIPS: Really? So, tell me, because we have been talking so much about the oversight. Where was the SEC? Where were all these commissions, all these people supposed to keep folks accountable? I mean, does it just not happen when you're dealing with such big amounts of money?

COPUS: I had a friend of mine tell me one time, "You know, Harold, if you go borrow $10,000, the bank will be over you. Go borrow $10 million, and they're trying to invite you out and see what they can do to keep that loan straight."

And that's what we are dealing with, except that the numbers are far greater. So, were they asleep? Yes, they were asleep at the switch. Everybody. When this investigation is finished, I suspect a lot of people are going to go to jail.

PHILLIPS: So are you saying basically money talks and our oversight system is lame?

COPUS: Totally, 100 percent. And what bothers me is that, in my world, the one I come from, the fox is in the chicken house. The people right now who are writing this bailout provision, they're the same characters who have been taking contributions from these same companies that now they're trying to do the bailout of. This has got to stop and you have the start the investigation sooner than later.

PHILLIPS: So you are saying that these politicians talking about the big bailout plan were the same ones getting contributions to campaign -- I mean, give me a specific. What do you mean?

COPUS: Well, I have heard that Dodd and a couple of the others have taken thousands of dollars from these companies and how in the world can you write a bailout when you are beholden to these people. If I sent them $10, they would not pay any attention to me, but if I gave you $100,000 I would have your private cell phone number.

PHILLIPS: Interesting. So you have had these investigations when you were in the FBI. Tell me sort of how the investigation works. Where do you start with something like this? Do you go with the richest CEO in the country and work your way down from there? How do you even begin?

COPUS: Well, you'll never work that way because they have the money to pay the lawyers. So you have to start at the bottom and squeeze them and work up. And the first thing the bureau is going to have to do is put subpoenas out there and say, no destruction of records. Because I guarantee there has been some shredding parties going on. Don't shred anything, even your grandmother's for coconut cookies, they've got to stay. Everything is going to say. As soon as we finish that, we are going to slam subpoenas on you and ask for paperwork and we're going to start interviews.

PHILLIPS: How long do you think this is going to take? And how big do you think it can get and as we all sit here as taxpayers and especially lower income middle class folks, what is going to happen to them while this is all ongoing?

COPUS: We are going to take it right in the neck and some of the big guys will take bonuses and some of them is going to say, gosh, I didn't know what was going on, well, if you didn't know what was going on, why did you take all those millions in salaries and bonuses to begin with? How long will it take? Six to eight months to a year, 300 to 400 agents minimum working on this.

PHILLIPS: Could this have all been prevented if the SEC did its job better or is that too easy? Is that too black and white.

COPUS: That is too black and white. It is a combination of the SEC, it is a combination of everybody that prepared a financial statement and traded loans and pushed the paper and pushed this stuff up and kept puffing it up and fluffing it and nothing was there. It was air. By the time it got to the big boys, everybody said, hey, if we wait long enough, we will keep this thing going, so the Ponzi scheme, it collapsed.

PHILLIPS: In all of your years in the FBI, working as a CSI type on Wall Street, have you ever seen anything this bad? When you hear the word depression, do you for the first time sit back and think, yep, it can happen or is that a little overboard?

COPUS: No, I think it could happen. I believe what we are really seeing is an equivalent of financial 9/11. What these people have done on Wall Street has almost brought the economy to its knees which is what the terrorists could not do, but these characters have done that.

PHILLIPS: Wow. Harold Copus, powerful words. We'll continue to follow up with you. Will you monitor this and join us again?

COPUS: Certainly.

PHILLIPS: Appreciate it. Thank you, Harold.

COPUS: Thank you.

PHILLIPS: Well, get ready to fly the merging skies, Delta shareholders just voted to get in bed with Northwest Airlines and Northwest shareholders already gave the plan an overwhelming thumbs up, but a union official says that this marriage will never work, because the companies are so different. The deal would still have to fly with the federal government and if it all works out, it could create the world's biggest airline.

And looks like the biggest Chevy dealer in the country is out of gas so to speak. Phil Herd Enterprises has shutdown all 14 of its dealerships. They are blaming a perfect storm of high fuel prices, a glut of gas guzzling inventory and the credit crunch. The company has had many issues for some time and GMAC discontinued credit for some dealerships last month. About 2700 people in seven states will be out of work.

And investors are pushing aside a trio of poor economic readings and instead of focusing reports of a breakthrough on the government's $700 billion bailout plan, Susan Lisovicz is at the New York Stock Exchange on more of what the optimism is doing for stocks.

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, there is optimism, Kyra, despite the hat trick of bad news. For instance sales of newly built homes fell to lowest levels in 17 years and durable goods, those are items, everything ranging from toasters to airplanes plunged, orders for those plunged 4.5 percent and jobless claims hit a seven-year high. So why the optimism? Well, investors are cheering word that House and Senate negotiators have agreed to a framework on the Treasury's massive bank rescue plan. You can see it play out, and the Dow Industrials had given up 560 points in the three previous sessions, but right now up 228 points or two percent and the NASDAQ and the S&P 500 each up two percent.

Investors may be in a good mood this afternoon, but not everybody is. Though, Kyra, you mentioned the coordinated protests to begin across the country in little over an hour, while earlier today, just outside of the New York Stock Exchange was a noisy demonstration led by New York City union members. They were picketing there should be no free ride on Wall Street and they want precondition for this massive plan before anything is rescued, Kyra. Back to you.

PHILLIPS: Well, that is fascinating to see how it plays out. I don't know if you you had the chance to listen to hear from the former FBI investigator ...

LISOVICZ: I did.

PHILLIPS: Amazing stuff, wouldn't you say? He put it point blank, we're in big trouble, a lot of people need to be held accountable.

LISOVICZ: Well, it will be an interesting balancing act, because in order to move forward, you cannot keep arresting people, and you know, this is really such a huge crisis that, that is unfolding, but on the other hand, you want to punish, there are plenty of culprits, boy, right across the board. No question about it, Kyra, it is huge.

PHILLIPS: Heads will start rolling. Susan Lisovicz. Sure appreciate it.

LISOVICZ: You're welcome.

PHILLIPS: Oh gosh, this just breaks your heart. Authorities in Nebraska say that a father abandoned his nine children at an Omaha hospital yesterday. Not a crime though under the state's safe haven law that took effect in July. Look at this. Other states have similar laws but they only cover newborns or babies up to a year old. Well, Nebraska's language does not include an age limit. The kids dropped off last night range from onw to 17.

Well, it has been a wild gas chase for a lot of people here in Atlanta. A pump without a plastic bag on the handle or no gas sign is hard to come by thanks to supply issues from Gulf Coast refineries. But Georgia's governor says that gas should flow more easily now that the EPA has eased up on some pollution restrictions the short term. Any available gas equals happy and relieved buyers and sellers. But will it relieve unhappy buyers and sellers this morning?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I got a hug from the attendant this morning. She came out and gave me a big hug. So happy to see you. That is a first in eight years.

(END VIDEO CLIP)

PHILLIPS: Well, it could be a week or more before things get back to normal.

And on the trail, and away from their jobs, who has missed the most votes in the Senate, John McCain or Barack Obama? We will find out.

And should the first presidential debate be delayed or go on as planned? We will hear what our I-Reporters are saying.

(COMMERCIAL BREAK)

PHILLIPS: John McCain's running mate Sarah Palin took a tour of Ground Zero today and she also had a quick but rare exchange with reporters. Palin toured a visitors' center dedicated to the victims of the 2001 World Trade Center Attack. Outside a nearby firehouse, she took a question about U.S. strategy in Iraq and Afghanistan.

(BEGIN VIDEO CLIP)

GOV. SARAH PALIN, (R) VICE PRESIDENTIAL CANDIDATE: I think that the presence in Iraq and Afghanistan will need to further lead to security of our nation, again, because the mission is to keep the fight over there, and do not let them come over here and attempt again what they have accomplished here and that was some destruction. Terrible destruction on that day. But since September 11th, Americans uniting and rebuilding and committing to never letting that happen again.

(END VIDEO CLIP)

PHILLIPS: Governor Palin was also asked about her state's long-time senator and fellow Republican Ted Stevens whose corruption trial got started today. Asked if she supports his bid for reelection, she said, quote, "we will see where that goes."

Now earlier we asked whether President Bush sold you on the huge financial bailout and we are letting you know what you think.

Here is what Lee writes. "The president is the same guy who pushed for the invasion of Iraq based on faulty information, the advisors Paulson, Bernanke and Cox are the same guys who didn't see this mess coming. I don't have any confidence that anyone can wave a magic wand and make things right."

Deirdre writes, "I have written my congressman and senator opposing any bailout, and in nothing I have heard in days of watching news coverage and hearings has altered my opinion."

And Leslie has this to say, "I was sold but not with a great deal of confidence. It seems enacting a rescue bailout plan is necessary, possibly even critical to the U.S. economy, but it addresses only a portion of our problems."

Thank you all for e-mailing us. We sure appreciate it. It was not exactly a 3:00 a.m. phone call, but President Bush did go into crisis mode last night with a sobering speech. Reassuring the public is part of the job description and Mr. Bbush has had his share of crisis over the years. How does he measure up to history? Here is Frank Sesno.

(BEGIN VIDEOTAPE)

FRANKLIN DELANO ROOSEVELET, FORMER PRESIDENT: The only thing to fear is fear itself!

FRANK SESNO, CNN CORRESPONDENT (voice-over): A president said that to reassure and to explain, a fireside chat presidency to bring frightened Americans through an economic meltdown when so many lost so much. Presidents have to deal with crises and talk us through them and sometimes they connect us and rally us, and sometimes they don't.

Gas lines and stagflation were among Jimmy Carter's crises. He tried to use Roosevelt's fireplace, it didn't work.

When the space shuttle Challenger exploded, Ronald Reagan began the healer in chief. From the Oval Office he said, we will keep going and we will never forget those astronauts as they waved good-bye.

RONALD REAGAN, FORMER PRESIDENT: And slipped the surly bonds of earth to touch the face of God.

SESNO: This president has more than his share of crises to confront and communicate. After 9/11 when he went to Ground Zero.

BUSH: And the people who knocked these buildings down will hear all of us soon.

SESNO: After Hurricane Katrina when he went to New Orleans.

BUSH: And this great city will rise again.

SESNO: Today his handling of both Iraq and New Orleans are judged harshly, and neither war has been won and both have been far more costly than imagined and the job approval numbers are dismal. As the financial system nearly collapsed, the president kept a lower profile, was slower out of the gate and first just a statement from the Rose Garden.

BUSH: This is no time for partisanship and we must join to move urgently-need legislation as quickly as possible.

SESNO: Not likely to reassure a jumpy public or be remembered as soaring politics or prose.

Frank Sesno, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: President Bush will be meeting with John McCain and Barack Obama in a little over an hour in Washington. Looking at their voting records, it is clear that the nation's capital is not a popular stop on the campaign trail. With 412 missed votes in the Senate this year, McCain is in the lead, and Obama is third with 295 missed votes and he is just behind Senator Tim Johnson of South Dakota who has missed 311 votes as he recovers from a stroke-like illness.

Obama's last roll call vote was July 9, McCain's April 8th.

With the country facing a financial crisis, should tomorrow's presidential debate be canceled or should things roll forward as planned? You chimed in and CNN's Internet correspondent Veronica Delacruz joins us now from New York with your I-Reports. Veronica?

VERONICA DELACRUZ, CNN CORRESPONDENT: Hey there, well, some people are supporting McCain's decision to cancel this debate but others do think Barack Obama is right, that the debate should continue on as planned.

Let's go on and start with James Johnson in Myrtle Beach. He aggress with John McCain. "Presidents must defend those of us that can't have our voices heard. To be a strong member of Congress and ignore a vote to save our economy is on the verge of treason. Go to Washington, Obama, be part of the solution or admit that you are part of the problem. A debate can be held next week when our economy has been addressed."

But Len Parks in Stark Ridge, Georgia completely disagrees. He says, McCain's cost him a vote.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: My thoughts on this? Why can you not do both? You got Barack Obama, he is talking to leaders in Congress, talking on the phone, doing conference calls and they have cell phones and Blackberries and think they this is a political theater and grandstanding and people should look at it. This is the real John McCain. He is not putting country first. Here is putting his campaign first. This is the political ploy, and a political game, and he knows it.

(END VIDEO CLIP) DELACRUZ: That was actually Mike Nanzano (ph) who is a registered Republican, and Jeff Calver (ph) doesn't believe that the activities are presidential and he agrees with Mike and he says real leadership requires making an intelligent decision that it is great that Obama can do two things at once, I believe that the economic crisis requires a full dedication of the time. One cannot stump on campaign trail and fly all over the country and make speeches and TV appearances and also help solve this issue.

So back to Len Parks, let's try to get back to him, he disagrees and he says will not be voting for McCain.

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JOHN WOODLOCK, IREPORTER: Isn't Sarah Palin available for the debate to go against Barack Obama? Isn't that what a vice president is supposed to be for, to fill in when the president is otherwise engaged? How about it, Sarah? Are you ready for the big leagues?

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DELACRUZ: That was John Woodlock there and he thinks that he has the solution to the problem. Why not just send a surrogate? So we are asking you, what do you think about this issue, and go ahead to logon to ireport.com and let us know. Kyra?

PHILLIPS: All right. Veronica Delacruz. Thanks.

Israel decides to live and let sing. Paul McCartney is finally playing Tel Aviv, 43 years after the bad boy Beatles were banned.

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PHILLIPS: Well, serious girl power going on in New York. Secretary of State Condoleezza Rice is meeting with other power. Women. So maybe not girl, but women power. So let's get that straight. State Department correspondent Zane Verjee, and that sounds better, right? With whom did Rice meet?

ZAIN VERJEE, CNN CORRESPONDENT: Well, exactly. There are more world leaders that are women than ever before. Secretary of State Condoleezza Rice met with about 50 female leaders and four of whom were the heads of state. She met with the president of the Chile, and the president of the Philippines and the president of Liberia as well, and essentially said that women were a force to be reckoned with in the world today. Here is what she had to say.

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CONDOLEEZZA RICE, SECRETARY OF STATE: You have been pivotal in our efforts to stop traffickers who prey on innocent women and children. You have been critical to our work to highlight the need for women to have access to education. And you have been instrumental in fighting to ensure that all women are empowered and that the glass ceilings are shattered whether here at the United Nations or in our respective countries. (END VIDEO CLIP)

VERJEE: I spoke to a woman who was present at the meeting that was not - that had no access for press to be there and she said that one of the most striking things that was said is that one minister got up and said, everyone is talking about the future rising powers and China and India, but actually the rising powers, kyat, she said, were women. The other thing they focused on was really addressing the issue of violence against women and girls worldwide, Kyra.

PHILLIPS: I'm curious, did anyone say, hey, you should be running for president or vice president? What's the deal?

VERJEE: Yes, actually, the president of Finland said, I am happy to be here, but I just want to tell you Condi Rice, I am the president now and I used to be the foreign minister and maybe it is a path that you should consider. You know. So they had a good laugh over that. But there are so many women political figures and Hillary Clinton, Sarah Palin, Tzipi Livni may be the next and there is also Kyra Phillips and by the way, Kyra, most of the secretary state's, Secretary Rice's press corps are all women, and we like to call ourselves the diplo-babes. So that's our own little thing.

PHILLIPS: And we cannot forget that behind every good man is an even better woman. Right? Now, Zain, you were not the only one wearing a sharp suit, I noticed.

VERJEE: Yes, in is a conversation among the diplo-babes too. Secretary Rice wore a turquoise blue, an electric blue, and it was something that we never have seen her in before, so it was a subject of some conversations.

PHILLIPS: State Department correspondent-slash-diplo-babe Zain Verjee ...

VERJEE: Following the important things, designer outfits.

PHILLIPS: Exactly.

Hey, it is all part of what makes a woman. All right, Zain. We already know that the brains are there.

Yesterday, they wanted him to stay away, but, Paul McCartney got to play. Israel finally said OK.

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PHILLIPS: Well, he is not 23 anymore and heck, he is not 64 anymore, so Israeli officials must have figured it was finally safe to unleash Paul McCartney on the masses. CNN's Paula Hancocks explains from Tel Aviv.

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PAULA HANCOCKS, CNN CORRESPONDENT: Now the swinging '60s somewhat bypassed Israel the first time 'round but this time, it is here. Belated Beatlemania 43 years after the Beatles were banned. Now, back in 1965, at the height of Beatlemania, at the height of pictures of young female fans found screaming and fainting in front of stages and Israel deciding to ban the group saying it is no artistic merit, and could also be a corruptive influence on its youth. But here we are 43 years later, and between 40,000 to 50,000 people all coming here to watch this Paul McCartney historical event. Many of them I spoke to actually remembered back in 1965 when it was banned. They are very excited to be here now.

UNIDENTIFIED MALE: It is one of the situations that we were looking for music and not for wars. So, we now have so many people coming here and you can see how the people react to music.

HANCOCKS: But of course even now this concert is not without its controversy. Now, there are reports that there was a death threat against Sir Paul McCartney and there have been calls by some Arabs that Sir Paul McCartney should boycott the event simply because it is being held in Israel and he could be perceived as being pro Israeli that he was careful not to play favorites. He said on Wednesday he went into the West Bank and went to Bethlehem and surprised a very bemused group of schoolchildren at a music school to lend support there. He also went to the Church of the Nativity, and this concert is called friendship first so he is very keen to point out that he is here in a nonpolitical way and he is here in peaceful way to hope he can do his little bit and the music can bring people together. Paula Hancocks, CNN, Tel Aviv.

(END VIDEOTAPE)

PHILLIPS: We want to wrap up the hour by telling you about a brainstorming idea that we have been talking about today, cost cutting by tube tying. A Louisiana state lawmaker thinks that paying people not to parent could be a win-win way to shrink welfare spending. The story has been quite a talker around Louisiana. Also in the NEWSROOM it was a talker around the table around our team's morning meeting.

Well, it sparked such a hot debate, that we booked the state rep as a guest and talked to him last hour, and as you can imagine, this interview inspired a lot of us to talk about it in more depth and a lot of you started to write us here in the NEWSROOM, and the producers have been reading all of the e-mails and actually getting some right now actually, and folks that have been watching want us to rerun the entire interview tomorrow. So we are going to do that. We are going to read some of your comments. Here is one that came from Colleen.

"I wish you would have thought to ask the 'gentleman,'" in quotes, "from Louisiana what he meant by these people when he was speaking about be paid for tubal ligations. Well, you were probably in as much shock as I was, because I truly didn't realize there were any pointy- headed drooling creatures like that left in the United States."

As you can imagine we've been getting a lot of e-mails about this. We are going to rerun the interview tomorrow, and read more of your e- mails. In the meantime, Rick Sanchez will take it from here in the CNN NEWSROOM. RICK SANCHEZ, CNN HOST: Coming at you now -- you, the American people, sending a resounding no to President Bush's bailout. On twitter, you are saying not with my money. On Facebook, this is outrageous. Record I-Reports also coming in.

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UNIDENTIFIED MALE: $700 billion -- why didn't they make it $699 billion and everybody would have thought they were getting a good deal without the sticker shock.

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SANCHEZ: Republicans sending President Bush a similar message on our air.

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UNIDENTIFIED MALE: The Paulson plan is dead on arrival.

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SANCHEZ: Is our economy really hanging in the balance? Should the presidential debate be postponed? A historic meeting -- Bush, Obama, McCain -- getting together in the White House during the next hour. You will watch it, and react to it live as it happens.