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American Morning
McCain Suspends Campaign to Address Financial Crisis; President Bush Brings Together Presidential Candidates; Governor Palin: Scrutinized and in the Spotlight; North Carolina Coast Braces for Big Storm
Aired September 25, 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: Well, crossing the top of the hour. Here's some of the stories we're following. Before you fallout from the financial crisis that could affect your job. Two giants of American industry, both GM and Caterpillar starting to feel the nation's credit squeeze as access to credit the companies rely on to fund their day-to-day operations chokes up in this latest crisis.
President Bush presenting a financial doomsday scenario if Congress fails to produce a bailout bill. So how are the markets reacting? Asia closed lower overnight. European markets mixed. Dow futures up, but just six points right now.
And congressional leaders say they're closing in on a deal for an emergency bailout of the financial industry. In a couple of hours, House and Senate Democrats will meet up with Republican lawmakers to attempt to draft a bipartisan rescue bill.
And Senator John McCain says he will not be at tomorrow night's debate unless there's a deal on the president's proposed financial bailout. Barack Obama says the financial crisis makes the debate even more important than ever. Here's what they had to say.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I'll suspend my campaign and return to Washington after speaking at the Clinton Global Initiative. I've spoken to Senator Obama and informed him of my decision and I've asked him to join me.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Presidents are going to have to deal with more than one thing at a time. It's not necessary for us to think that we can only do one thing and suspend everything else.
(END VIDEO CLIP)
CHETRY: Dana Bash joins us now with more on this. How and why John McCain came to this decision. It really hit everybody like a -- came out of left field, let's put it that way yesterday afternoon.
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: It did. And you know, he was here in New York obviously meeting with world leaders around the U.N. He was doing some debate prep and he was meeting with economic advisers on the phone with them. And what I'm told is that he basically at a certain point, he was sitting with his advisers, got enough dire news about the economy. In fact, one adviser said that what he was told was there could be an economic calamity the likes of which we have not seen since the Great Depression. That kind of news he got.
And secondly, he was talking to his colleagues back in Washington, Republican leaders, and they said, you know what, the votes just aren't there. So we're basically at a standstill right now. So he decided, as we saw, that he was going to suspend his campaign.
Now, the reality, the political reality, you know this Kiran, is that, yes, he's not running TV ads, he might not be fund-raising right now, but being in Washington is still very much part of his campaign. The McCain team realizes that, you know, economic crises, especially right now, could benefit and seems to be benefiting Barack Obama.
So what he thinks he can bring to the table right now is something that he is pushing, which is leadership. You know what, forget it, I'm going to go back. I'm going to deal with this. I'm going to work on this. And also, they realize McCain can't afford for Republicans to not support any kind of deal at the end of the day, because he's the titular head of the party and he would basically get blamed.
CHETRY: Exactly. Well, it's very interesting, because Senate Majority Leader Harry Reid was actually calling McCain's move a stunt. So let's listen to what he said yesterday.
(BEGIN VIDEO CLIP)
SEN. HARRY REID (D), MAJORITY LEADER: It appears to me that John McCain is trying to divert attention to his failing campaign and coming back here is not going to add to the process.
(END VIDEO CLIP)
CHETRY: It's the political season. Any move you make, of course, is through that prism of politics. What does McCain say about that?
BASH: Well, it's interesting. Because what the McCain campaign says is, wait a minute, Harry Reid actually goaded him to come back. It was a day earlier that Harry Reid stood at that same spot and said that John McCain needs to show his cards. He needs to get involved, because they were worried -- the Democrats were worried that Republicans weren't going to vote for any kind of bill, and then that the Democrats were going to be in this precarious position of siding with President Bush to pass some kind of bailout.
So, it was actually interesting behind the scenes, what happened with that, is that when McCain actually decided that he was going to do this, he called the president and said, can you convene a bipartisan meeting. Then he called Democratic leaders, including Harry Reid, and said, you know, Harry, I want to come down and let's have a bipartisan meeting. Harry Reid, actually, just basically read him his public statement, which said, John McCain, there's no need for you to come back here. We don't need you. It was apparently kind of an interesting and icy conversation between the two of them.
CHETRY: It certainly turned everything on its head about 40 days out from the election so we'll see what happens, especially with this debate Friday night.
BASH: Yes, we'll see.
CHETRY: Dana Bash, great to see you. Thanks.
BASH: Thank you.
CHETRY: Well, the fate of Friday night's debate as we were just saying up in the air, the University of Mississippi released a statement saying the school still expects the event to take place as scheduled. And as we heard from Robert Gibbs of Obama's campaign, they're showing up. So if that's the case, the debate will begin at 9:00 p.m. Eastern Time. We're still going to be there as well. Join the Best Political Team on Television for your front row seat to what, we're not sure yet.
JOHN ROBERTS, CNN ANCHOR: There are so many firsts in this presidential campaign. Need a program just to keep track of it all.
President Bush knows that any financial bailout is a tough vote for Congress, but he says the nation's economic health depends on it. The president sounding the alarm in a primetime speech to the nation last night. CNN's Elaine Quijano live at the White House for us.
Uncharacteristic language, Elaine, for any president when talking about the economy last night.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: That's right, John.
And you know, President Bush really tried to cut through all of the fancy economic speech and boiled down why he thinks Americans need to get behind a financial rescue plan.
(BEGIN VIDEOTAPE)
QUIJANO (voice-over): Warning of a financial doomsday unless government intervenes.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES OF AMERICA: America could slip into a financial panic and a distressing scenario would unfold.
QUIJANO: President Bush sounded the economic alarm, laying out his case for a $700 billion bailout plan, personalizing it for Americans.
BUSH: More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet.
QUIJANO: The president framed the proposal as a national rescue plan for all Americans.
BUSH: Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And ultimately, our country could experience a long and painful recession.
QUIJANO: And he defended the plan as a necessary step in extraordinary times.
BUSH: My natural instinct is to oppose government intervention, but these are not normal circumstances. The market is not functioning properly.
QUIJANO: Also unprecedented, the meeting the president called of both presidential candidates. And congressional leaders of both parties.
BUSH: There is a spirit of cooperation between Democrats and Republicans and between Congress and this administration. In that spirit, I've invited Senators McCain and Obama to join congressional leaders of both parties at the White House tomorrow to help speed our discussions towards a bipartisan bill.
(END VIDEOTAPE)
QUIJANO: And that meeting takes place this afternoon in the cabinet room here at the White House. A lot hanging in the balance, of course, the economy, but also less than six weeks away, the election -- John.
ROBERTS: Elaine Quijano for us this morning for the White House. Elaine, thanks very much.
Coming up on seven minutes after the hour.
You're watching the "Most News in the Morning."
CHETRY: At arm's length.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I have never seen a presidential or vice presidential nominee be so inaccessible to the national media.
(END VIDEO CLIP)
CHETRY: Sarah Palin in the spotlight, but far from the mike. A look at why even her hometown paper can't get through.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The "Anchorage Daily News" has not talked to her since August 30th. (END VIDEO CLIP)
CHETRY: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
KATIE COURIC, CBS EVENING NEWS: If this doesn't pass, do you think there's a risk of another Great Depression?
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: Unfortunately that is the road America may find itself on. Not necessarily this at it's been proposed has to pass or we're going to find ourselves in another Great Depression. But there has got to be action taken by partisan effort. Congress not pointing fingers at this point at one another, but finding the solution to this, taking action and being serious about the reforms on Wall Street that are needed.
(END VIDEO CLIP)
CHETRY: That's Republican vice presidential candidate Sarah Palin telling "CBS Evening News" anchor Katie Couric that Congress has no time to waste acting on the financial bailout.
She just finished her third network interview, but still reporters are asking, is Sarah Palin being shielded from the press?
Our Jason Carroll looks at how accessible Sarah Palin really is.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Kiran, John, for weeks, there have been questions from some of Palin's critics as to why she has not made herself more available to the press. Now she has given her third network interview, but that has not quieted the governor's critics.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): The focus was the troubled economy as Sarah Palin sat down for an interview with CBS' Katie Couric.
PALIN: We're going to find ourselves in another Great Depression, but there has got to be action.
CARROLL: Whatever Palin says is sure to attract much attention, partly because she has been virtually unresponsive to the press so far. Says "Washington Post" and CNN media critic Howard Kurtz.
HOWARD KURTZ, CNN'S RELIABLE SOURCES: I have never seen a presidential or a vice presidential nominee in my lifetime be so inaccessible to the national media.
CARROLL: This week, Palin met with several world leaders in New York. There were photo opportunities, but no questions. Not after she met with the presidents of Ukraine, Georgia, or Iraq. Only this response before a meeting with Pakistan's president... PALIN: These meetings are very informative and helpful and a lot of good people are sharing appreciation for America.
CARROLL: Palin's supporters say she doesn't need to field questions from a number of reporters.
LESLIE SANCHEZ, REPUBLICAN STRATEGIST: Are the media going to continue to put pressure on her? Yes. But they're the ones that seem to be frustrated, not, I think, the folks in the states that she's visiting.
CARROLL: Palin has given prepared speeches to thousands of enthusiastic supporters. Senator Joe Biden has hosted rallies, too. But he's also given dozens of media interviews. Palin has done three network interviews. Biden has held press conferences. Palin hasn't held any since becoming the vice presidential nominee.
MICHAEL KERRY, COLUMNIST, "ANCHORAGE DAILY NEWS": She had a good relationship with the press here. Reporters got access to her when they need to.
CARROLL: Michael Kerry is a columnist for the "Anchorage Daily News" and has been covering Palin for the past two years.
KERRY: The "Anchorage Daily News" has not talked to her since August 30th. And we're the hometown newspaper. That ought to tell you something.
CARROLL: What it's telling some media observers is the McCain camp is being very cautious.
KURTZ: The McCain campaign says that she is entirely qualified to be a heartbeat away from the presidency. If that's the case, surely she can handle some questions from mere journalists.
CARROLL: Palin supporters say at the end of the day, it's just the media that's complaining here, not the public, and certainly not all of those people who have come out to hear Palin speak -- Kiran, John.
(END VIDEOTAPE)
ROBERTS: Jason Carroll reporting for us this morning. Jason, thanks so much.
Ali Velshi logged on this morning, taking your questions about issue number one, the economy, and this massive bailout.
What are you hearing this morning, Ali?
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Massive response on our blog at cnn.com/am. Lots of great questions. We've got ones coming up on whether your 401(k) is safe and what a recession really means to you.
Stay with us. We'll come back with that in just a moment. You're watching AMERICAN MORNING.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: But these are unprecedented times for the American people and for our economy.
(END VIDEO CLIP)
ROBERTS: That's Treasury Secretary Henry Paulson on Capitol Hill, trying to get support for the $700 billion bailout plan. Some people have complained that the current plan would give Paulson a far too much power and there needs to be a lot more congressional oversight.
It is issue number one and hundreds of questions are coming in this morning about what the bailout means for your money. You can go to www.cnn.com/am and submit a question yourself. Ali Velshi fielding those questions, "Minding Your Business" for us this morning.
Good morning, Ali.
VELSHI: Good morning, John.
They're coming in on this page here. We're posting them as quickly as we can. We've got some great questions that really, I'm sure, appeal to a lot of our viewers.
Tom in Austin, Texas, says, "I've got all my money in a 401(k) in a Fidelity Money Market. Any reason to worry?"
Great question. We've been getting a lot of this. Money market mutual funds are covered. This is a new thing. They've only been covered as of Friday morning. The Treasury and the Federal Reserve have decided that they are going to insure money market mutual funds. Your money marker mutual funds are safe. Money market deposit accounts in banks are covered by the FDIC up to $100,000 per account, per institution. So, your money market mutual funds and your money market deposits are safe.
Matt in California says, "What does it actually mean for everyone if the country goes into a recession. At what point, if any, should I start to panic? I've already begun to cut back on living expenses."
That's a good choice to make. You can cut back on your expenses without panicking. Panic probably doesn't help us out very much. But a recession really indicates that jobs end up being lost. Right now, we've lost 605,000 jobs so far this year and most economists expect that to continue. Our unemployment rate is up to 6 percent. That could grow.
Home prices will continue to drop and consumer credit will get tighter. It will simply become harder for you to get a loan, possibly higher interest for your home, for your car, for your student loan. Lines of credit that are out there that are not being used will probably be reduced by banks.
Now, one thing to remember, Ben Bernanke said to Congress, if we don't pass this plan, we may go into a deep recession. We've already heard from some economists who think we're in a recession and who think it's likely to get deeper. But what he should have said is, if you don't pass this plan, we'll go into a deep recession, but we might be going into a deep recession, anyway.
So, understand that when you're deciding about this plan. This is not going to be a solution to a possible recession. This is a solution to a very particular financial crisis that we're undergoing right now, John.
ROBERTS: All right. We'll see where that solution goes because this morning apparently we're hearing that congressional leaders are getting together to hammer out some legislation. And, of course, there's that meeting this afternoon at the White House. We'll be hearing a lot about this today.
Ali, you have got a busy day ahead of you, my friend.
VELSHI: I do.
ROBERTS: Thanks very much.
CHETRY: Well, John McCain calls a time-out to focus on the economy and work on the $700 billion bailout. So will this help or hurt his campaign?
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: The North Carolina Coast is bracing for a big storm that's expected to bring 40-mile-an-hour wind gusts and several inches of rain. This is a storm that could strengthen into a tropical system, approaching the East Coast and expected to bring some dangerous rip currents as well as coastal flooding over the next few days. Our Rob Marciano was tracking all of it for us with his spaghetti models this morning.
What are those? Just a potential tracks that this thing could take?
(WEATHER REPORT)
CHETRY: Unfortunately, just in time for the weekend. All right, Rob Marciano, thanks.
ROB MARCIANO, AMS METEOROLOGIST: All right. See you later.
ROBERTS: 22 minutes now after the hour. John McCain suspending his campaign to help solve the financial crisis. Democrats dismissing the move as nothing more than political theater. The campaign responds, next. And serious financial crisis -- long, painful recession, potential panic. Dire warnings from President Bush. Did his speech help Americans feel better or did he just scare them even more? You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JON STEWART, HOST, "THE JON STEWART SHOW": This is not a football game where one team goes into the two-minute drill and you're tired now. But it's one of those things where he's like -- time-out! You can't take a time-out!
(END VIDEO CLIP)
ROBERTS: Stewart last night weighing in on John McCain's decision to put his campaign on hold to focus his attention on the economic crisis. And John McCain's daring move to suspend his campaign put Barack Obama on the defensive. But just what does Senator McCain hope to accomplish by heading back to Capitol Hill? Joining me to talk more about this is McCain's senior economic adviser Douglas Holtz-Eakin.
Douglas, good to see you this morning. So other than this meeting this afternoon with President Bush, members of Congress, and Senator Obama, what does Senator McCain hope to do in terms of this bailout legislation? He's not on the Banking Committee, he's not a member of the Senate Leadership, he's not a sponsor of the legislation. What role does he play?
DOUGLAS HOLTZ-EAKIN, MCCAIN CAMPAIGN SR. CAMPAIGN ADVISER: Well, I mean, certainly, Senator McCain has been traveling the country and he's got an understanding from meeting with advisers and with taxpayers that we do need to get something done. This is a great crisis that faces our country. And to get it done means that it has to be deal that helps the economy.
It has to be something that gets through the Congress, and it also has to be something in which the taxpayers have some confidence. And he came to the realization that there was a big gap, which what needed to be done, and the ability to have the confidence of taxpayers and get the deal through Congress.
So he thought it's time to come back, have Senator Obama join him, jump-start the process in the Congress and with the American people to get this deal done.
ROBERTS: So how does he jump-start the process? Because the principles are sitting down this morning to begin writing the legislations. He's not getting there until 11:00, 11:30.
HOLTZ-EAKIN: He is certainly been in contact with members of Congress. He's been talking to them about what they view as the key features of the legislation. What they do is the obstacles to success. But most importantly, he wants to make sure that we move past statements of principles and words to get the people in one room and get some action.
What the American people want is a deal that protects the taxpayer to display some accountability. That we don't simply give authority to a single individual to spend $700 billion, that protects the taxpayers' money and has some consequences for the private sector in places where they are really at fault and at risk.
ROBERTS: The Senate Majority Leader had some pretty harsh words for Senator McCain's decision to suspend the campaign and come back to Washington. Here's what Harry Reid said yesterday.
(BEGIN VIDEO CLIP)
REID: It appears to me that John McCain is trying to divert attention to his failing campaign and coming back here is not going to add to the process.
(END VIDEO CLIP)
ROBERTS: Douglas, how do you respond to that? This is purely a political move.
HOLTZ-EAKIN: Look, the sad reality is that Senator Reid and even Senator Obama is taking a moment where we need to draw together and in a bipartisan way deal with the real problem and turning it into a political moment. That's not the senator's intention. It is time for us to move past that kind of behavior, work on a deal for the American people, get it done quickly, get the relief into the financial markets before we see businesses unable to meet their payrolls, before we see further contraction, the ability of families to borrow.
This is a pressing national crisis. And it's important for not just the members of legislative committees and chairman to have a say, but for everyone to draw together and deliver for the American people. That is the goal and the senator's going to come to Washington and energize that process.
ROBERTS: Douglas, we have a new CNN Opinion Research Corporation Poll out, asks voters who they believe is better able to handle the economy. Barack Obama is leading that by ten points, 53 percent to 43 percent. In terms of John McCain trying to narrow that gap, would an appearance on Friday night at Ole Miss in a presidential debate to lay out plans for the economy and have a healthy debate about it be a way to do that?
HOLTZ-EAKIN: Certainly, there is some who would do the political calculation and says, oh, I can go and make a great show at the debate and convince the American people. That's not John McCain. John McCain is interested in doing the right thing. He is consistently trying to do the right thing.
ROBERTS: Hang on.
HOLTZ-EAKIN: It might be in his narrow political interest to do something else. He'll do the right thing for the American people.
ROBERTS: Right. Are you saying that these debates are merely political calculations?
HOLTZ-EAKIN: We can have the debates and we'll have all three debates. The goal is to take care of the 300 million Americans who need help from this crisis and then move to the political debates, where, quite frankly, Senator McCain has invited Senator Obama to meet with him at ten town halls. We want the chance to present their views to the American people. Senator Obama has had the chance before, he'll get the chance again. Let's do the people's business first.
ROBERTS: Douglas Holtz-Eakin, good to talk to you this morning. Thanks for coming in. Appreciate it.
HOLTZ-EAKIN: Thank you.
ROBERTS: All right.
CHETRY: We're coming up now on just 30 minutes after the hour. Some of the top stories we're following for you. Washington insisting all government employees should stay away from major hotels in four Pakistani cities. The decision comes after the Saturday explosion that killed more than 50 people at The Marriott in Islamabad. It's one of Pakistani's capital's best-known hotels.
This afternoon, President Bush brings together Barack Obama and John McCain to discuss a solution to the gridlock over the bailout. Today's meeting comes after Mr. Bush offered a dire warning if an agreement on the plan is not reached.
(BEGIN VIDEO CLIP)
BUSH: As a result, our entire economy is in danger, given the situation we are facing. Not passing a bill now would cost these Americans much more later.
(END VIDEO CLIP)
CHETRY: So did President Bush's speech help Americans understand the situation or scare them or maybe even both? How will the presidential candidates, both John McCain and Barack Obama address the financial crisis? To talk about all these issues, joining me from Cambridge, Massachusetts, this morning is CNN senior political analyst, David Gergen. He was an adviser to Presidents Nixon, ford, Reagan, as well as Clinton.
Thanks for being with us this morning, David.
DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Thank you.
CHETRY: It seemed that the President's speech certainly took a different tone, a different tone than what he's been talking about when it comes to the economy for months leading up to last night. What do you make of it?
GERGEN: Well, I thought it was an important speech, not that it moved public opinion. I doubt it moved public opinion very much at all. What it did do was provide something of an explanation, but more importantly provide cover for a lot of political figures in Washington who want the president out front in order to get their votes.
The Democrats in particular are imploring the president, you get out front and say why we need this and then we're more likely to join up with you. The Democrats in particular feel, look we didn't create this problem, we're willing to help you fix it, we didn't create it and you've got to take some of the responsibility for it by going out as president and leading.
And I think it will also help with some Republicans who have been very reluctant to vote for this unless they have the President way out front. I do not think the speech as it was moved the public opinion needle very much. Frankly, it was a workman like speech that I thought fell short in taking responsibility or really dealing with the underlying causes. But it was important for the President to be out there in order to get the votes on the Hill in the next couple of days.
CHETRY: You know, then at the same time, another bombshell came out yesterday, David. John McCain saying he's going to suspend his campaign, he's going to head back to Washington and work with his Senate colleagues to try to hammer out this bailout bill. Congressman Barney Frank said it's "the longest Hail Mary pass in the history of either football or Marys." And yet at the same time you have Newt Gingrich calling it the single greatest act of responsibility ever taken by a presidential candidate.
What do you think of John McCain's decision to suspend the campaign on the eve of this, their first big debate?
GERGEN: Look, I think there is a deep-seated patriotism in John McCain. And you know, when the country is in trouble, he likes to come to the rescue. That's who he is. So I think you have to acknowledge that and accept that. It is also true that John McCain is a politician. And he needs -- he knows and he's doing this in part also to rescue his campaign. Because a financial meltdown was driving him down in the polls and allowing Barack Obama to go up.
And he's -- this 11th hour dramatic move, I think, looks impulsive to many of his critics, but may allow him to grab the leadership back. And maybe it will help. I do not think - one thing I think is really imperative is that he not parachute into the middle of these negotiations, which are very delicate and very complex. He has not been a party to them, and people like Barney Frank leading in the House and Chris Dodd and Richard Shelby, from the Republicans.
These people have all been spending a lot of time on the details of the negotiations, working with the Treasury Department and the Federal Reserve. You don't want somebody now -- you don't want to bring presidential politics and inject them into it. What John McCain can usefully do is round up Republican votes for a package. And so can Barack Obama. He can be out rounding up Democratic votes and make it - you know, bring this to a conclusion. Because the country does need a package soon.
I'm not sure they'll wrap it up the next couple of days, from my point of view. The debates, we should be able to go forward with the debates, even as we go forward in getting this done.
CHETRY: All right. We'll see how it turns out. And Barack Obama says he's still going to go to Mississippi on Friday, tomorrow, for these debates.
David Gergen, always great to see you -- CNN senior political analyst.
GERGEN: Thank you so much.
CHETRY: Thanks.
ROBERTS: 34 minutes after the hour. John McCain recently linked Barack Obama to the failed Fannie Mae, but is there really a connection? With all eyes on the economy, we are checking Senator McCain's claim. CNN's ever-popular truth squad is coming back.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Just into CNN, President Bush last night painting a gloomy picture for the economy. And guess what, you say it, and the next morning it happens Jobless claims way up.
Here's Ali.
VELSHI: This is our weekly measure of the number of people who are filing new claims for unemployment insurance. That number just in. A very, very significant jump. 32,000 people have been added to the unemployment rolls in one week, bringing the running total to 493,000. That's the number of people who are actively claiming for unemployment right now.
That is a much bigger number than was expected. We're closing into 500,000 and this is the highest number that we've had in -- we're just waiting to confirm the numbers, but it looks like it could be in eight years. So, again, when we talk about this package and people are disassociating themselves from a Wall Street bailout, because that's what has become the popular name for it, this does trickle down to the ability for companies to keep people employed. This is a very serious number, jobless claims now running at 493,000 for the week, up 32,000, much bigger than anticipated.
ROBERTS: All right. Also, durable goods orders were in as well. You're crunching the numbers on that. So we'll have more information on that coming up.
VELSHI: That's right.
ROBERTS: All of that going forward. Ali, thanks so much. Kiran.
CHETRY: Time to turn now to the truth squad, where we're busy researching all the political statements in the ad keeping the candidates honest. And this morning, Alina Cho is looking into an attempt by the McCain campaign to link Barack Obama to the troubled mortgage giant, Fannie Mae.
Here's Alina with whether or not this holds up.
ALINA CHO, CNN CORRESPONDENT: Yes, is it true? We're researching that. Kiran, good morning again. And good morning, everybody.
John McCain is specifically trying to tie Obama to two former CEOs of Fannie Mae. Jim Johnson and Franklin Raines. Now Johnson worked at the failed mortgage giant from 1990 to 1998. He worked his way up to Chairman and a giant paycheck of $21 million a year. Here's McCain last Friday linking the two while talking about Fannie Mae.
(BEGIN VIDEO CLIP)
MCCAIN: Somehow its former CEO had managed to gain my opponent's trust to the point where Senator Obama actually put him in charge of his vice presidential search.
(END VIDEO CLIP)
CHO: All right. True or false? Was Jim Johnson in charge of Obama's VP search? True, but it only lasted for about a week. Johnson stepped down in June following reports that he received $7 million in below-market loans from Countrywide. Obama had criticized Countrywide for its role in the financial meltdown. Next up is a man named Franklin Raines, another former CEO for Fannie Mae and another attack from John McCain linking Obama to Raines. Here's McCain last week in Green Bay, Wisconsin. Let's listen.
(BEGIN VIDEO CLIP)
MCCAIN: Another CEO for Fannie Mae, Mr. Raines, has been advising Senator Obama on housing policy. This even after Fannie Mae was found to have committed, "extensive financial fraud under his leadership."
(END VIDEO CLIP)
CHO: Now, McCain has repeated the claim in ads, citing a story in "the Washington Post" that said Raines had, "taken calls from Barack Obama's presidential campaign, seeking his advice on mortgage and housing policy matters." True? Well, Obama has said he's spoken to Raines for, "five minutes in my life" and Raines himself says he was not an Obama adviser.
So in trying to link Obama to two former Fannie Mae CEOs, was he right, McCain? A split verdict, here. For the first, Jim Johnson, true. Even though it was only for about a week, the former CEO did run Obama's VP search.
But on the second person, Franklin Raines, the verdict from our truth squad is misleading. Raines did have some contact with the Obama campaign, but by all accounts that contact was limited and Raines was not an Obama adviser. Of course, we're watching all of this for you and we'll have another couple of truth squad reports tomorrow.
CHETRY: Alina's always getting to the bottom of it for us. All right. Thanks, Alina.
CHO: You bet.
ROBERTS: Former President Bill Clinton weighing in on the economy. Speaking this morning to the CBS early show. Clinton spoke about the President's meeting with Barack Obama and John McCain as well as what America needs to do to get its financial system back on track.
(BEGIN VIDEO CLIP)
WILLIAM JEFFERSON CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Bush invited both Senator Obama and Senator McCain to come by and be part of the congressional briefings, work on this together. I think they need to be attentive to it and you know fulfill their responsibilities in the Senate and as the nominees of their party.
But the larger issue is how are we going to bring the economy back? How are we going to create jobs and raise income?
That's the long-term stability. That is, there was too much investment in housing alone. We need a strategy here that will get America back across the board. That includes dealing with the energy issues, dealing with the bills people are paying for that and the job opportunities there, and dealing with health care. That, I think, those big issues, I think, will tend to overcome the international issues.
UNIDENTIFIED MALE: And who provides that best plan, do you think?
CLINTON: Well, I'm supporting Obama, as you know.
UNIDENTIFIED MALE: This is the gimme (ph) in the morning,
CLINTON: I think for the reasons I said in Denver, I think that he, personally, and our party, generally, tend to produce better economic results for ordinary people. And I think that while I -- Senator McCain, as you know, I like, he's a friend of mine. I trust him in many ways, but the Democratic economic philosophy and Obama's specific proposals I think will produce better results for ordinary Americans.
(END VIDEO CLIP)
ROBERTS: Clinton also stressed that Congress should take a day or two to make sure that the bailout is used to stabilize the economy and not subsidize the undeserving, as he said. It's 42 minutes after the hour.
One on one with the First Lady.
(BEGIN VIDEO CLIP) ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Sarah Palin is now emerged as the choice. Do you have as much confidence in her?
(END VIDEO CLIP)
ROBERTS: Laura Bush in a candid conversation about Sarah Palin's foreign policy credentials.
(BEGIN VIDEO CLIP)
LAURA BUSH, FIRST LADY OF THE UNITED STATES: She doesn't have that. That's not been her role.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Issue #1 and the e-mails are certainly proving that. We have hundreds of questions coming in about what the bailout means for your money. Ali Velshi is "Minding your Business" and answering your questions about the economy this morning.
Hey, Ali.
VELSHI: Trying to, Kiran. Lots and lots of excellent questions.
Jen in Claremont, California says, "You mentioned GM and Caterpillar are having trouble raising money because credit markets are frozen. Does this mean that credit card companies start denying new charges to credit card or individuals see their existing credit lines dry up as well?"
We've already seen that, where people have credit lines that they are not using to the maximum, many credit card companies and banks have reduced the amount of available credit. That is already happening. And why I say this is for people who are paying off their credit card balances, which is always a good thing to do, particularly when you're paying high interest, understand that as in the past where you've always had that credit available to you, you may start losing that credit.
Steve writes, "If things are so dire, why is the Dow still at 10,000 and gold at $900. It was said that we're on the brink of financial destruction yet Wall Street doesn't seem to but it. If the situation were truly as bad as painted, the Dow should be at 5,000 and the gold at 3,000. Gold rise to 3,000."
Well, gold prices have been increasing, as people move into gold and other commodities because they're worried about the stock market and the stock market was at 14,000 back in October. So I'm not sure I'd attach specific numbers to where the Dow should be and where gold should be. The trend in the stock market is down and the trend in gold is up. And Mary writes, "This morning you said that the bailout is not about Wall Street but about freeing up credit. Isn't part of the reason here that people have relied on too much credit? Without the bailout, will there be no more credit at all, or will it just be tougher to get?"
Well, it will be tougher to get. That's what it is. There will always be some money available to people whose assets are absolutely, you know, completely, completely solid and whose credit ratings are very good. So you can still get money.
I've talked about Caterpillar. Caterpillar is a solid company. They were able to get money, but they had to pay more interest for it. We will continue to take your questions as we have so many of them.
Later on today at 11:00, I'll be on CNN Radio and CNN.com and you can call in there at 11:00 a.m. Eastern, 1-877-266-4189 or send your e-mails to cnnradio@cnn.com or you can go to CNN.com and hit the "Ask Ali" link. We'll keep on doing this until we try and get through so many of your questions. We'll do it later today. We'll do it tomorrow. We'll even do it on the weekends. So we are going to try to get answers to all of your questions -- Kiran.
CHETRY: No sleep for you, but a lot of answered questions and you know, a lot of good questions being asked.
VELSHI: Excellent questions. Yes.
CHETRY: I'm glad you're doing this, Ali. Thanks.
ROBERTS: Sleep is overrated.
CHETRY: Yes, it is,.
ROBERTS: 47 minutes after the hour. CNN NEWSROOM now just 13 minutes away. Heidi Collins at the CNN Center with a look at what's ahead.
Good morning, Heidi.
HEIDI COLLINS, CNN ANCHOR: Yes. Good morning.
I think a lot of people are losing an awful lot of sleep. Right now, what we're working on in the NEWSROOM, hammering out a plan. Congressional negotiators near agreement on a financial rescue package. We'll tell you what we know about that. And candidates come together for a White House session on the bailout. But they are split on the next step in the campaign.
And heartbreaking homecoming. Residents return to Galveston after Hurricane Ike. We'll show you some of what they come home to. We get started at the top of the hour right here on CNN -- John.
ROBERTS: I would assume it's not much. And that's got to be awfully tough.
COLLINS: You're right.
ROBERTS: Heidi, thanks very much. We'll see you real soon.
COLLINS: OK.
ROBERTS: One on one with Laura Bush. Her candid interview. See what she had to say when we asked her about the downturn in the economy on her husband's watch.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
L. BUSH: I'm thrilled to have the chance to vote for Sarah Palin on the Republican ticket.
VERJEE: But do you think she has the kind of foreign policy experience --
L. BUSH: Well, obviously, of course she doesn't have that. You know, that's not been her role. But I think she is a very quick study and fortunately John McCain does have that sort of experience.
(END VIDEO CLIP)
ROBERTS: First Lady Laura Bush weighing in on Sarah Palin's foreign policy credentials. Mrs. Bush went on to say that she has a lot of confidence in Governor Palin, citing her executive experience both as a governor and as a mayor. The First Lady also talked about the nation's financial crisis and the cost of spreading democracy overseas. Our state department correspondent Zain Verjee sat down with Laura Bush yesterday. She joins us now with more on all these.
Good morning to you.
VERJEE: Good morning to you, John.
Burma is a cause that's really close to the First Lady's heart. Burma is a country that's ruled by a brutal military regime. And while she was in New York this week, John, Mrs. Bush met with a Burmese dissident and she really spoke out strongly, calling for more world pressure on the regime. I also asked the First Lady, what was it that inspired her to champion the cause of Burma. Here's what she said.
(BEGIN VIDEO CLIP)
L. BUSH: Well, I learned first about Aung Sang Suu Kyi. She was just a woman that I learned about. I read her book "Freedom From Fear," and grew to admire her. She has a lot of advocates, women in the United States, who happen to be friends of mine and my cousin. In fact, one of them is my cousin. So I learned about her first through them. And then the more I learned about her, the more I learned about Burma. And the more discouraging it's become to me. VERJEE: What inspired you to really sort of take the bull by the horns and put yourself on that global stage and use the podium that you have?
L. BUSH: Well, of course, literacy has been my lifelong dedication. I'm a librarian and a teacher and - so I've always worked on that. But really what happened was I finally realized that I had a podium. I didn't really think of that when I first moved into the White House with my husband. Even though I made that radio address about Afghanistan right after September 11th and started my advocacy for the women, particularly and children of Afghanistan right after then, but it took a while for me to realize that I did have this podium and that while my husband's president, I can use it.
VERJEE: If we reflect back, as many have been doing, eight years ago, things looked good. There was an economic surplus. Now there's a global financial crisis. How do you feel that this is happened under your husband's watch?
L. BUSH: Well, I think it's happened because of many, many factors that have gone on. And we have, as you're right, we've been very, very affluent. And even with this downturn, we are still an affluent country and there's still very affluent parts of the world, obviously. But it's really important that even in this downturn that we in the United States also keep our focus on our commitments of aid to other countries. I also think that the Congress will come together on this debate that they're having now and I think things will be better after that, once the markets can stabilize.
(END VIDEO CLIP)
VERJEE: And on the issue of Burma, Mrs. Bush says that she really wants India and China to put economic pressure on Burma, because they're the two countries that really prop up the regime. She also wants to stay focused on another cause that's close to her, which is promoting global literacy.
ROBERTS: Now, I did the math very quickly in that sleep-deprived adult brain of mine, but I think it's 117 days left in the White House. What does she plan to do after that?
VERJEE: Well, she says she wants to move back to Texas and she wants to just have a good time, relax a little bit. She wants to start cooking again she said and that she's basically looking forward to having a more normal life, but she's going to keep an eye on all those causes that she cares about.
ROBERTS: All right. Zain Verjee, it's good to see you.
VERJEE: Thank you.
ROBERTS: Thanks very much. Kiran. Oh, actually, we're going to break. We'll be right back.
Bright lights, big city.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: So nice to meet you.
(END VIDEO CLIP)
ROBERTS: Sarah Palin's crash course in the fine art of the photo op. Jeanne Moos takes us behind the scenes.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Thank you very much. Back up the same way. Thank you.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: You probably saw the video or pictures of Sarah Palin posing for photos with a revolving door of world leaders. But what was being said behind the scenes while the cameras clicked away? Not known.
Our Jeanne Moos with the polite new way of saying, don't let the door hit you on the way out.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: Welcome to the photo op follies.
UNIDENTIFIED MALE: All the way over, all the way over.
MOOS: Where handlers whisper urgent orders to the press pool. The pool gets to stay for a whopping 30 seconds or so, getting pictures, then gets shown the door. Sarah Palin -
PALIN: It's so nice to meet you.
UNIDENTIFIED MALE: Nice to meet you.
MOOS: Raced around to half a dozen of these in two days.
CRAIG FERGUSON, HOST "THE LATE LATE SHOW": It's kind of like she's speed dating the world leaders. You know. I'm coming through. I am Pakistan, I like nuclear weapons, long walks on the beach, and you.
MOOS: Comedian Craig Ferguson was prophetic. Pakistan's leader did act almost like a date, telling Palin how gorgeous she is. Gushing over her popularity.
UNIDENTIFIED MALE: Now I know why the whole of America is crazy about you.
MOOS: And when a photog asked for another handshake, threatening a hug.
UNIDENTIFIED MALE: If he's insisting, I might hug.
MOOS: But the press and Governor Palin aren't so lovey-dovey, and it complains that Palin is dodging questions. Which brings us to the most frequently heard phrase in a photo op.
UNIDENTIFIED MALE: Thank you very much. Back up the same way, thank you.
MOOS: It's not gratitude, it's attitude. Commonly used to drown out pesky questions.
UNIDENTIFIED FEMALE: Governor, what have you learned from your meeting?
UNIDENTIFIED FEMALE: Thank you so much. We're going to head out.
UNIDENTIFIED MALE: Thank you guys, please. Thanks a lot. Thank you very much. OK, guys, if everybody keeps moving.
MOOS (on-camera): In the world of photo ops, thank you doesn't always mean thank you. It means shut up and get out.
UNIDENTIFIED MALE: Thank you guys, very much. Thanks, guys.
MOOS: The press gets thanked all the way out the door.
UNIDENTIFIED MALE: Thank you. Please turn around. Thank you.
UNIDENTIFIED FEMALE: Great. Thank you.
MOOS: And when they finally did get a question answered, it wasn't much to be thankful for.
UNIDENTIFIED MALE: Governor, how's your day going so far?
PALIN: It's going great. These meetings are very informative and helpful.
MOOS: One thing the media can't say is that their job is thankless.
UNIDENTIFIED FEMALE: Guys, thank you. Please move to the door.
UNIDENTIFIED MALE: Thank you. Everybody, please.
UNIDENTIFIED FEMALE: Thanks, guys.
MOOS: At photo ops, the definition of thanks is -
PALIN: Thanks but no thanks.
MOOS: Jeanne Moos, CNN, New York.
UNIDENTIFIED FEMALE: I love you, Sarah!
(END VIDEOTAPE)
ROBERTS: You know, in all fairness, I don't know how many times I was thank youed (ph) out of the Oval Office during the Bush administration and the Clinton administration and during photo ops when we were on overseas trips and at the United Nations.
CHETRY: Did you get to your welcome, or was it just thank you and you're out the door?
ROBERTS: Thank you, thank you. And finally they say, Roberts, are you leaving or what? Thanks so much for joining us on this AMERICAN MORNING. Thank you. We're out of here. We'll see you back here tomorrow.
CHETRY: When we say thank you, we mean stay, don't go.
Right now here's CNN NEWSROOM with Heidi Collins.
