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American Morning
Vote on the Bailout Bill to Happen Today; Conservative Urging Palin to Drop Out of the Race; A Town in Alabama Celebrates Rosh Hashanah Differently
Aired September 29, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Well, coming up at the top of the hour now and here's a look at top stories that we're following this Monday morning. Later on today the House will vote on the historic $700 billion economic bailout plan. Key Republicans and Democrats reached an agreement on the bill on Sunday. It's based on Treasury Secretary Henry Paulson's original plan but lawmakers say they have added several taxpayer protections.
Well, that could be an understatement because the bill ballooned from three to 101 pages. President Bush is leaning on lawmakers in the House to pass the bill speaking briefly just moments ago. Mr. Bush said the bill will prove that the U.S. is serious about restoring its financial stability. He also spoke directly to critics of the plan's price tag assuring taxpayers that the Treasury Department will get back most if not all the money.
Meanwhile, at least two major banks are said to be in talks to buy Wachovia. "The New York Times" says both Citigroup and Wells Fargo are bidding in a possible emergency takeover. "The Wall Street Journal" lists the Spanish bank as another possible bidder. Wachovia has been plagued by toxic assets from the sub prime mortgage crises.
After days of bitter battles on this bailout plan, will Congress put it through? Here is a live look at the house chamber where today's vote is scheduled. House speaker Nancy Pelosi thinks that the message this legislation sends is crystal clear.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI, (D) HOUSE SPEAKER: The party is over. The era of golden parachutes for high-flying Wall Street operators is over. No longer will the U.S. taxpayer bail out the recklessness of Wall Street, and that's the news that this legislation brings.
(END VIDEO CLIP)
ROBERTS: And for more on what we can expect today out Kate Bolduan joins us from Capital Hill. And Kate while Democrats and many Republicans are in support of this bill there are some holdout house Republicans who don't like it at all.
KATE BOLDUAN, CNN CORRESPONDENT: There definitely are some holdout house Republicans and there have been Republicans and some liberal Democrats who say they wouldn't vote for it no matter what the compromise is that came out. We need to keep an eye on the house floor today. We're expecting debate to get under way within the hour this comes after a very full day yesterday of the key negotiators and party leaders really trying to line up votes and win support among their colleagues and the public even prominently posting the entire bill, all 100-plus pages on the Internet for all to see.
In the bill we've been talking about the authorization of $700 billion to buy out troubled mortgage assets but also in the bill there are two oversight boards, a Federal Oversight Board and a Congressional Oversight Board.
There is also limits on executive compensation as those golden parachutes we've been talking so much about for top executives of the financial firms who get help from this program. And while negotiators on both sides of the aisle admit that this is not a perfect bill for one party or another, they say it's the necessary compromise and they need to pass it now. Listen here.
(BEGIN VIDEO CLIP)
SEN. CHRISTOPHER DODD, (D) CHAIR. SENATE BANKING CMTE: Because I deeply believe this is essential for dealing with people's retirement accounts, student loans, small businesses, all across this country of ours. Credit is not flowing to them and that's really the problem here. That's why I'm supporting this and why we spent 11 days pulling this together.
REP. ROY BLUNT, (R) MINORITY WHIP: I think the alternative is what our members have to think about. Clearly this is going to have to be a bipartisan effort. We're working closely with the majority to see if we can't get this done and get it done for the country today and it's not easy. There's no question about that. But these aren't easy times.
(END VIDEO CLIP)
BOLDUAN: Not easy times at all from Wall Street to Main Street, John. One nod for fiscal conservatives to get them on board, part of the compromise is an insurance program where the government would guarantee the troubled assets rather than buy them up. We'll see if that wins over enough Republicans today. We're expecting a vote around noon in the house, John.
ROBERTS: Even if you say it quickly, there's no way to get around the fact $700 billion is an awful lot of money.
BOLDUAN: I've been talking about it for 15 days and still can't wrap my mind around the number.
ROBERTS: One-third the federal budget.
Kate Bolduan for us at Capital Hill. Kate thanks so much.
BOLDUAN: Thanks Rob.
ROBERTS: We've been saying it a lot today and we will continue to day and we will continue to say it. That bailout, if it passes will be, again, $700 billion of really your money. So what can you expect to back from Wall Street when it comes to your investments? Our Christine Romans is minding your business this morning and looking into that angle for us.
CHRISTINE ROMANS, CNN CORRESPONDENT: I've been asking people over and over again what does this mean for me right now, what does it me for my investments if I'm close to retirement, this is not the time to be taking big risk. This is not the time to be taking big risks on your house, on your job, on your retirement because we still do have some economic uncertainty ahead whether or not this thing gets passed. This is supposed to stabilize the credit market but it's not going to fix the problems that we're seeing on Main Street at least not in the very near term.
OK. So what does it mean? Who may benefit from this bailout package? Well, banks, credit unions, pensions, the government is going to be mopping up these toxic assets off the books for some of these folks so they can start lending again and if they can lend, that helps you because you can borrow and it also helps your company because your company can make its payroll and pay its bills.
It helps taxpayers at least hypothetically with all of these taxpayer protections in this 100-some-page bill and homeowners, some homeowner protections in there as well although the big protection that people wanted that advocates wanted was to rewrite the bankruptcy laws and that's not in there. So what does it mean the very near term for you? The economy is still headed for a little bit of rough patch at the very least. This is not a time to be taking risks if you're close to retirement. If you're just getting out of college and looking for a job, we're going to see some more job losses in the near term so there are still some -- there are still some rough days ahead regardless.
ROBERTS: Well, we all know that. Thanks.
(COMMERCIAL BREAK)
ROBERTS: Let's get to the political part of it now and the most politics in the morning, John McCain back on the campaign trail today in Iowa and Ohio and this weekend his congressional colleagues finally agreed on that bail out package. Questions about whether McCain helped or hindered the process by coming back to Washington. CNN's Dana Bash is live in Washington. What is McCain saying about supporting this whole idea?
DANA BASH, CNN CORRESPONDENT: He hasn't actually said whether he will formally vote for this bailout bill and his advisers say he's still reading the fine print. You know McCain has some time since the Senate won't vote until Wednesday or even Thursday but it is impossible to imagine he would vote no now, that leaders on all sides have signed on including the Republican leadership in the house who McCain insisted, John, that he needed to come back and help.
ROBERTS: He got roundly criticized for coming back to the White House on his white horse. Is he expected to take some credit for helping to solve the problem? BASH: It's really interesting. McCain himself is being very careful to say he'll leave it up to history to judge whether he helped or hurt but the reality is all weekend McCain's aides were furiously trying to shape that history making the case to me and I'm sure other reporters that McCain came back, listened to the concerns of house Republicans and gave them a voice by making clear to his fellow Republicans in the Senate that as far as McCain was concerned there was no deal without the house GOP. In fact, their leader John Boehner is giving McCain credit to that.
Let's take a listen.
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER, (R) MINORITY LEADER: He has been making calls to members in support of this bill. And I think I've made clear to many of you that John McCain not supporting me for the White House when I said, time out. I'm grateful for his support.
(END VIDEO CLIP)
BASH: Now others have quite a different take. Democrats and even some senate Republicans say McCain's decision to come back to Washington and all of the politics and of the drama infused into the process actually delayed this deal getting done but politically McCain aides are hoping all is well that ends well and they are very, very eager to get him back on the trail today. They're ready to move on big time.
ROBERTS: We'll try to get some more opinion about this. We have Mark Pan who used to work with Hillary Clinton's campaign as well as Karen Hughes, who of course is a major fixture at the White House for so many years. Dana Bash for us this morning from Washington, Dana thanks so much. Seven minutes now after the hour.
Back on the trail.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: And that's just the facts. Again, you can look it up.
SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: Look, it's just not true.
(END VIDEO CLIP)
ROBERTS: Fresh off the first battle Obama takes the fight back to the battle state. Suzanne Malveaux is live in Denver following the campaign. You're watching the most news in the morning.
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ROBERTS: Welcome back to the most news in the morning. A busy weekend for Barack Obama who made campaign stops in Michigan, North Carolina and Virginia. Today he's in Colorado. Suzanne Malveaux is traveling with his campaign. She joins us live from Denver. What's going on in one of my favorite states there today, Suzanne?
SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, John. People started lining up for this rally at 2:00 in the morning local time. A lot of people very excited about seeing Barack Obama. He has not stopped his campaigning throughout the financial crises but Barack Obama is insisting here that he has exhibited some leadership that he can campaign at the same time, that he is involved with this. It was just yesterday he was in Detroit, Michigan, he was constantly in contact with Secretary Paulson, the Democratic leadership and essentially he is making the case that he laid out some principles, a vision of protecting the taxpayer as well as holding the CEOs accountable that he now says the administration is complying with.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: This administration started off asking for a blank check to solve this problem. Joe Biden and I said absolutely not. I said it was unacceptable to expect the American people to hand this administration, of all administrations, a $700 billion check with no conditions, no oversight, when a lack of oversight in Washington and on Wall Street is exactly what got us into this situation.
(END VIDEO CLIP)
MALVEAUX: But he's also been very cautious about taking a look at the plan and actually praising the plan. He says this is no time for celebration. He says essentially the taxpayers are paying for this mess and, John, as you know, it's going to be the next president whether it's John McCain or Barack Obama who is going to have to come up with the plan if taxpayers ultimately lose their money.
ROBERTS: Suzanne, Colorado went in the Republican column last election back in 2004, stayed very much in play. Democrats are investing heavily in it. They have a democratic governor. What's going on there now?
MALVEAUX: They think they have a shot at this, John. The last nine out of ten presidential elections went Republican but they're looking at this and, you're right, they say there's a Democratic governor, you have a Democratic senator. The state legislature democratically controlled. They put a lot of money in here advertising and look at the Hispanic population, now this population that has boomed over the last four years. They're hoping that works in his favor.
And what happens here in Denver, they believe, is ultimately going to tip the state of Colorado and figure out whether it's in the loss or the win category. They believe they've got a shot this time around. John.
ROBERTS: Nine electoral votes at stake, not a huge pop but taken in combination with other western states could turn the tide. Suzanne Malveaux for us this morning in Denver, Suzanne thanks so much.
Well, he's known for his music and acting but now he wants his young fans to know how important it is to get out and vote this November. We're going to be talking live to rapper and actor Bow Wow. Still ahead.
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ROBERTS: Loose lips, Biden unplugged. He might have the gift of gab but he also has a gift for gaffes. Every vice presidential candidate should have an off switch. Joe Biden doesn't.
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ROBERTS: You are watching the Most News in the Morning.
(COMMERCIAL BREAK)
AMY POEHLER, ACTRESS PLAYING KATIE COURIC ON "SATURDAY NIGHT LIVE": You went to the U.N. for the first time. How was that experience?
TINA FEY, ACTRESS PLAYING GOV. SARAH PALIN ON "SATURDAY NIGHT LIVE": It was just amazing; so many interesting people though I have to say I was disheartened by how many of them were foreigners. When Senator McCain and I are elected we're going to get those jobs back in American hands.
CHETRY: Well, that was Tina Fey channeling Governor Sarah Palin again on "Saturday Night Live" this weekend and while Sarah Palin takes some heat from the late-night comics and even some conservatives, Democrats also have some worries that Joe Biden's tendency to talk too much could end up being a liability.
CNN's Jim Acosta joins me now. You know as a reporter there are many things that you cover but I'm sure you're going to be glued to the TV for Thursday night's debate.
JIM ACOSTA, CNN CORRESPONDENT: That's right and no SNL character for Joe Biden just yet.
MALVEAUX: Give it time.
ACOSTA: Over the weekend one of McCain's top surrogates Lindsey Graham was asked about Sarah Palin's recent troubles and responded that she's not the only running mate who sometimes runs off at the mouth. Just days from the vice presidential debate Joe Biden has shown he has the gift of gab, firing up a crowd in Michigan over the weekend.
(BEGIN VIDEO CLIP)
JOE BIDEN, (D) VICE PRESIDENTIAL CANDIDATE: Barack Obama and I will end this war!
ACOSTA: But he also has a gift of the gaffe. The preacher not only of Washington but also YouTube, whether it's his campaign stumbles on Hillary Clinton.- BIDEN: She's easily qualified to be vice president of the United States of America and, quite frankly, might have been a better pick than me.
ACOSTA: Or Franklin Roosevelt.
BIDEN: When the stock market crashed Franklin Roosevelt got on television and didn't just talk about the, you know, princes of greed.
ACOSTA: FDR wasn't president when the market crashed in 1929 and of course commercial TV wasn't around then either.
BIDEN: Get up.
ACOSTA: But it's Biden's verbal flair that has endeared him to many Democrats. His attack on Rudy Giuliani during the Democratic primaries earned him more viewings online than votes of Iowa.
BIDEN: Rudy Giuliani, I mean think about it. There are only three things he mentions in his sentence, a noun and a verb and 9/11. There's nothing else.
SARAH PALIN, (R) VICE PRESIDENTIAL CANDIDATE: I'll try to find you some and bring them to you.
ACOSTA: And after a rough week for Sarah Palin, Democrats took note the Alaska governor was missing from the analysis following the first presidential debate but Biden was front and center hitting McCain on the economy.
MCCAIN: He's the guy who identifies with Joe Lunch bucket.
ROBERTS: Alex says Biden should do himself a favor during the upcoming debate and play it safe.
UNIDENTIFIED MALE: Every vice presidential candidate should have an off switch. Joe Biden doesn't and that presents a great opportunity for Republicans.
ACOSTA: No off switch but perhaps a mute button.
Can you assure voters in this country you would have the discipline you would need on the world stage, senator?
BIDEN: Yeah.
(END VIDEO CLIP)
ACOSTA: Joe Biden even had his own gaffe on Sarah Palin calling her good looking but, unlike some of the second-guessing among Republicans over whether Palin was a strong pick, that kind of talk about Biden has gone strangely silent.
UNIDENTIFIED FEMALE: Maybe we'll get a couple of one-word answers from him. Who knows? He's unpredictable. Great to see you, thanks. ACOSTA: Great to see you.
CHETRY: Left behind --
ROBERTS: That is strong --
CHETRY: Parents abandoning their grown children at the local hospital and the law that's made it legal.
ROBERTS: These mothers that are in this situation are not criminals.
CHETRY: You are watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: And this just in. Some news breaking this morning as it relates to a takeover of Wachovia. Our Christine Romans is here. We don't have many details right now but explain what is going on.
ROMANS: It has helped Citigroup take over the assets of Wachovia and we knew that there was some sort of bidding war going on for the New York Times. "The New York Times" has been reporting for some time. The FDIC said it was not a bank failure. That with the help of the government was a company that they made a point of saying that it was not a bank failure but with the help of the government that this was a company whose assets would now be turned over to Citigroup. No transition for the customers of Wachovia.
CHETRY: This is much like we just talked about with Washington Mutual.
ROMANS: I think so. Similar to that. The FDIC like its insurance assets were not at risk. But with the help of the government Citigroup taking over Wachovia. So if you were a Wachovia customer I think you're going to be able to assume it's going to be much like Washington Mutual where you're going to be able to use your ATM card and go and now it's going to be a Citibank account but for Wachovia. So a seamless transition is what we saw from Washington Mutual. We'll see if that's the way it is for Wachovia. The FDIC in a statement making it very clear that this was an open bank basis kind of a takeover. This is not a bank failure.
CHETRY: Wachovia lost half its share value? One week alone before even the markets opening an hour they were plummeting as well.
This was a bank in distress, no question about it, and a bank that had to do something. It has great exposure to mortgage lending. It is much like Washington mutual in that regard.
ROMANS: We asked about this on Friday. Are we going to keep waking up to yet another bank failure, call it what you will, each morning as we continue to talk in Washington about this bailout? What's going on?
CHETRY: Who knows what it will be this morning but I think many of the banks are expecting more banks to be in trouble. They just are. I'm sure that they're working round the clock at the FDIC. They have a list of troubled banks; they are keeping a very close eye on them. As you can see they are working with the purchaser to sort of make this happen. They like to do this on an open bank basis. They don't want a bank to fail and be closed and have a panic. They want to make sure these things happen smoothly for the sake of confidence in the banking system and for people who have their assets in these banks.
CHETRY: Right.
ROMANS: So we are going to see more bank failures. A lot of people say that. The size of them, I'm not sure how many. One thing about the Washington Mutual failure last week, the biggest in the history of the United States. That bank itself is, I think, two-thirds of the size of the 700 and some that went down.
CHETRY: A huge giant.
ROMANS: These are big banks we're talking about.
CHETRY: You mentioned it but just to reiterate for people watching today, according to the FDIC, the Wachovia customers they say will have no interruption in services and bank customers should expect business as usual, full protection for all of their deposits. So maybe a little bit of reassurance in this shaky time. Christine Romans thanks.
CHETRY: After a big political weekend John McCain and Barack Obama are looking ahead to an enormous political week. Former presidential advisers Karen Hughes and Mark Penn join us with their thoughts coming up.
Plus every election year candidates hope that young voters will get out to the polls. Rapper and actor Bow Wow is joining a slew of celebrities to help the presidential contenders out. He's going to join us live on THE MOST NEWS in the morning.
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ROBERTS: It was a very busy political weekend. A presidential debate and the breakthrough on the $700 billion bailout plan. Now Barack Obama and John McCain hit the campaign trail hard today to talk about the last few days. We're joined by Democratic strategist Mark Penn from Washington and Republican strategist Karen Hughes who, by the way, just teamed up in a consulting firm with Mark Penn. She's in Austin this morning. Good morning to both of you. Thank you for being with us.
KAREN HUGHES, REPUBLICAN STRATEGIST: Good morning John.
ROBERTS: Karen let's talk first of all about the bailout plan and John McCain's role in it. It was criticized by Democrats Barney Frank, Harry Reid for, quote, riding into the White House on a white horse. But here's what John Boehner said about his presence there in Washington.
Let's listen.
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER, (R) MINORITY LEADER: As for John McCain not supporting me for the White House I said, whoa, time-out. Going to run over me like a freight train. I'm grateful for his support.
(END VIDEO CLIP)
ROBERTS: Karen what do you think of his participation in this? Was it worthwile?
HUGHES: I think he did the right thing and he proved himself to be a man of action throughout his time in the Senate. John McCain has brought Democrats and Republicans together to try to make progress. In this case he was very forceful about the need to protect the taxpayers, to make sure he was the first to call for limits on executive pay.
By contrast I think Barack Obama was strangely absent. He said as little as possible, he did as little as possible. I think he was more worried about the impact on his campaign than he was about solving these national crises. And John McCain got engaged, got involved, and worked with Republican leaders to help protect the taxpayers.
ROBERTS: Mark, let's test this new partnership here. Put it to its first test. What do you think about that statement? It was Chris Dodd and Barney Frank, who were the real work horses on the Democratic side. Barney Frank even criticized Barack Obama for suggesting that they take that bankruptcy provision off the table before the negotiations even began.
MARK PENN, DEMOCRATIC STRATEGIST: Now Karen, you know it was Barack Obama that enunciated clear principles about what the bailout has to have and that McCain seemed desperate running after the whole thing, saying he wasn't going to debate and showing up at the debate. I think very much losing the entire issue and losing the issue of leadership and crises.
ROBERTS: He did show up, Mark, at the debate later that night and now we're looking forward to the next presidential debate, a town hall format. Does that play more to John McCain's strengths than Barack Obama?
PENN: Well, I think Barack Obama so far has shown a very strong connection to people and to the middle class. One of the big things in the debate was that Barack Obama brought the financial crisis home right into the homes of average people to understand that he would be fighting for them and McCain seemed so far above it talking about earmarks and abstract concepts that I think right now the town hall will do quite well for Barack Obama.
ROBERTS: Karen did John McCain lose on the economic front there?
HUGHES: Absolutely not. John McCain was talking about people's money. That's not abstract. That's their money that the government is spending too much of. I thought it was interesting and a little disingenuous of Barack Obama to run a commercial attacking John McCain for failing to say the words middle class because in his very first answer to his very first question John McCain talked about the economic plan and its impact on people, on their ability to afford a house or car or to get credit and so he was talking about people.
His entire program is about the impact on people. You know, I really think that both men were substantive. They both talked a lot about the issues. I do think the town hall format will give both of them a chance to show how they can connect with everyday Americans.
ROBERTS: And of course, you know, the first thing we're looking for is that vice presidential debate coming up on Thursday night. We'll get you back to talk about that. Mark Penn, Karen Hughes, our new team here on AMERICAN MORNING. Good to see you. Thanks very much.
CHETRY: And breaking this morning, according to the FDIC Citigroup will acquire the banking operations of Wachovia. In a statement the FDIC emphasized that Wachovia is not a bank that failed. It's also reassuring bank customers there should be no interruption in services. The money in deposits are protected and people should expect business as usual.
Well, more fallout from the tainted milk in China. British chocolate maker Cadbury recalling all of its Chinese-made candy. The company says it's a precautionary step, still not clear if melamine, the toxic chemical used to make plastics was found in the chocolate.
And more gas lines and shortages in the southeast. The problem started when Hurricane Gustav and Ike shut down the Gulf coast refineries. Industry experts say the gas shortage could last another two weeks.
Returning to our top stories this morning. That's the mammoth $700 billion Wall Street bailout taking a toll on overseas markets. Major indices in Asia and Europe are down. CNN's Becky Anderson is live in London with the latest for us on this.
Good morning, Becky.
BECKY ANDERSON, CNN CORRESPONDENT: Good morning. And the party is truly over and the pain has really begun, I'm afraid. This is the front page of the first paper to react to today's share of a plunge. This is "The Evening Standard" and it tells the tale, "Bank shares plunge in the city." European stocks down across the board taking their lead from Asian markets. You're absolutely right.
The big question here now really is this, it's where the U.K. and European banks will be involved in that (foursome tandem). The other question I'm being asked this morning by people in the city - this is an interesting one, whether $700 billion is actually enough to stave off what could be a serious calamity. Not just a crisis but a serious calamity in these markets. So we know the U.S. markets are up on Friday. We were expecting these markets to push higher today after the details of that Paulson plan came up. As you can see with your Citibank-Wachovia story, we have a story here today as well in the U.K.. The markets just don't like this insecurity and this incompetence, to a certain extent. This being shown by these bankers and, as I say, shares down on the back of all of that.
CHETRY: Hey, Becky, is the U.K. also preparing for the possibility of a Paulson-style bailout as well?
ANDERSON: Well, let me show you the front page of "The Guardian" newspaper today. "Another day, another bailout" and they're not talking about the Paulson pay out in this story. This is a $41 billion pound or $80 billion bailout of the toxic waste as it's now being called on the books of the building society bank known as the Bradford and Binley. There's something like 850,000 shareholders which are going to be hit as a result of these central banks in the U.K. The government taking over the Bradford and Binley.
You remember about six, seven months ago Northern Rock, an enormous bank here, full of mortgage debt which was nationalized after five months of negotiations. A weekend's worth of negotiations in the U.K. and that bank gets nationalized as well. The banking world it seems, Kiran, is quaking in its boots.
CHETRY: Speaking of boots, I thought about you this morning which is why I sent you this picture of your transplant. Victoria "Posh Spice" Beckham causing quite a stir. That just looks like, OK, your normal thigh length PVC boots but, no, on closer examination, where's the heel?
ANDERSON: Never mind the gravity defying bailout that Paulson's put together. I'm trying to work out the mechanics of these gravity- defying piece. I'm just not sure how she's going to work with these. This is a woman, don't forget, who suggested at times that she goes to bed in her Louboutin and for those who don't know, it's really expensive shoes with heels about that high.
She doesn't do flat boots. She doesn't do flat shoes. How she is going to work those, I just don't know. Let me tell you that the bank balance is OK at the moment. It's not that she can't afford the heels, I'm sure. If you're getting paid like $250 million over five years, she can afford the heels so it's something else and I'm not sure what.
CHETRY: If times get tough, they just invent another perfume. That's what they do. All right. Great to see you this morning, Becky. Thanks.
ROBERTS: Well, turning from global reaction to things here at home, speaking an hour ago President Bush tried to calm the fear of Americans who are unsure about the bill but what can the average American consumer expect? Our personal finance editor Gerri Willis is here to answer that loaded question. Obviously, Posh Spice being affected by it. She can't afford heels for her boots anymore.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Oh, my heart goes out.
ROBERTS: What about the rest of the consumers.
WILLIS: My bleeding heart.
ROBERTS: It's an important story. Let me get that one out.
WILLIS: Let's talk about individuals out there, American consumers, what can they expect? The expectations out there according to economists and financial advisers we talked to this weekend. Look out for some improvement to come in under the stock market should help the economy. I know you're not seeing it this morning but as one financial adviser put it to me over the weekend he said, OK, the fire's out in the theater, now we just have to watch the movie and see if it's any good.
People are going to go back to fundamentals, looking at corporate profits. That's why you're seeing the stock market down so dramatically because they don't like what they see when they look at these bank stocks. We're clearly not out of the woods yet but some of the other things that consumers can expect here, improved loan availability. I don't know if you've gone out and tried to get an auto loan, John, or a mortgage in the past couple of weeks but it's been darned difficult in the coming weeks ahead. It should be much, much easier.
Mortgage rates according to bankrate.com could go lower here as this capital comes into the markets, comes into banks. We could see mortgage rates go a little bit lower. So there's some good news out there. It could take a while to play out. Obviously the market still digesting all this news today and we're continuing to see bad news in the headlines out of the banks.
ROBERTS: Yes. we're seeing a lot of bad news in the headlines of the job market recently as well. What might this mean for job creation?
WILLIS: Well, the expectations for job creation given what was going on in the markets without any help from the federal government bleak indeed, at least nine percent jobless rate in the country, may be more economists were very negative on any improvement in the jobless rates had there been no bailout but with the bailout they see this situation improving slowly, not tomorrow, not the next day, but in the coming months ahead. So some good news out there for consumers as they try to digest the details of this as well.
ROBERTS: A lot of people looking for a life preserver out there. Gerri, thanks so much for that.
WILLIS: My pleasure.
ROBERTS: 37 minutes now after the hour.
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CHETRY (voice-over): Rocking the vote. Rap star Bow Wow live with an exclusive look at how he plans to help make history in November. You're watching the most news in the morning.
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CHETRY: Young voters could make the difference in this election but will they actually come out to vote on election day? Rapper and actor Bow Wow is joining other celebrities trying to make sure that they do. He has a special project and he joins us now from Atlanta to talk more about it.
You're unveiling this today here on AMERICAN MORNING. Thanks for being with us. Tell us about your newest venture.
BOW WOW, RAPPER-ACTOR: It's really an idea that I came up with, the walk across America. It's a multi-city touring campaign. I'm going to other cities right here, right here in the U.S. and basically just trying to bring awareness and just get the youth to come out and vote. And you know, that's really the primary goal is to get out here to get the young guys and the young kids to come out here and vote.
Those are the ages of 18 to 25 and I've teamed up with a lot of other great organizations to help me, assist me in these cities, in the ground, and help get the people registered. I'm excited. I'm a first-time voter myself. And it feels good to just share this with my peers and encourage and just preach the importance to get the young people out here to the polls.
CHETRY: This is exciting for you. I mean, this is an historic election, something we're going to see for the first time in our nation's history. And this is the first time because you're 21, that you're able to vote. What are the issues? What do you think is most important for many young people out there?
BOW WOW: Right now I believe the economy. I'm sure not just myself but a lot of other young - my peers can definitely relate to as far as the kids who, you know, have to get to school, the buses, trying to fill up the buses, a lot of schools being canceled due to the fact of gas, the gas shortage.
On top of that the gas prices are crazy. You got a lot of the kids who are not fortunate enough to live on campus who, you know, might have an apartment outside of the campus who have to drive and are affected by it. So, one thing is that definitely is our economy. You got the banks that are closing down.
You have a lot of foreclosures going on right here in the U.S. and I definitely feel that's one of the main important subjects, the main subject matter at hand when you want to talk about this year's, you know, the whole political.
CHETRY: Right. You know, Bow Wow, in 2004 only half of the eligible young voters actually went out there to vote. We did see a record number, though, in the primaries and the caucuses of this election, 6.5 million young voters participated. How do you make sure that this excitement carries over to election day, that they actually come out and cast their vote?
BOW WOW: Hopefully with this campaign I can do that. You know, I look at it like if I can get to millions of kids through my music, hopefully those same kids that I reached through my music can take this message in the same matter and go about it the same way. They see Bow Wow get out and vote and preach and speak on positively, and hopefully they can do the same thing.
You know that the connection I have with the youth is so strong and I was just like them when I was 18. I was sitting, watching the news and I would watch, you know what I don't know if voting is that important or should I really do it. And I was once that person until I really understood and I learned more as I traveled, went to different cities watching the news and getting more involved.
And I say, you know what Mom, I'm starting to get more into the political side of things now and it just really captured me. It's definitely exciting. It's the first time for me to vote. I just want to share that with the people for them to get out and do the same exact thing. So I'm excited to kick off this whole walk across America thing going to different cities as I said and to really bring awareness.
CHETRY: you say that you don't want to - you know who you're voting for.
BOW WOW: Right.
CHETRY: You're going to be voting early in Atlanta but you don't want to say who you're voting for because you don't want to sway anybody's opinion either way.
BOW WOW: Exactly.
CHETRY: But there has been certainly a lot of excitement surrounding Barack Obama. He actually in the polls gets much more support from young voters. What are your friends saying to you about the excitement or the possibility of the first you know black president?
BOW WOW: Right. I mean, it's amazing. I mean, for me to be living in this time to actually witness the history of what's going on just in itself, in its own right, is definitely major. And a lot of my friends are excited. You know, this is their first time I'm actually going into politics as well, my first time as well. And you know, it's just lucky for Barack, I mean he has that connection with the youth and you can kind of relate to him. And I think that's what's important.
CHETRY: Well, it's great. You know, you still hold the Guinness Book World Record for youngest solo rapper to ever hit number one, 13 years old. Wow.
BOW WOW: It's crazy.
CHETRY: So you're a veteran in the business at age 21. BOW WOW: I know. Right? In dog years.
CHETRY: Bow Wow, thanks so much for joining us this morning.
BOW WOW: Thanks for having me. Appreciate it. Thank you.
CHETRY: And by the way, you can see more of Bow Wow right now on CNN.com. He's going to be on our web site giving an interview right after AMERICAN MORNING. so that viewers can go to our web site, find out more information as well on his Walk across America.
ROBERTS: Big dog in the street even back when he was a puppy.
She owned the Republican convention but what a difference a month makes in presidential politics. Why some conservatives now say Sarah Palin has to go.
Also, Jewish families being lured to a small town in the Bible belt. Hear what a temple congregation in Alabama is offering to get other Jews to relocate there. You're watching the most news in the morning.
(COMMERCIAL BREAK)
ROBERTS: 47 minutes after the hour now. Reynolds Wolf tracking extreme weather in the weather center down there in Atlanta. Reynolds, I did 50 miles on the bike yesterday. 25 of it in the pouring rain. What it's going to be like today?
REYNOLDS WOLF, CNN METEOROLOGIST: You know though, it doesn't matter if you're under the pouring rain or not, any time on the bike is always a good time. It's always a special time.
Today, it should be a little bit better for you, John. All the rain that's been bothering you yesterday now moving to parts of Boston and eventually are going to be moving out to sea but still this morning on parts of i-95 it is going to be a wet commute for you. But as we go minute by minute, conditions will get better.
What is left of Kyle, that tropical system continues to move through New Brunswick but out deeper in the Atlantic we got another storm. This one a tropical storm Laura, with winds of 60 gusting to 70 miles an hour. This storm not expected to affect land at all, moving deeper into the north Atlantic as we get into Thursday.
Besides that, we head back to the Midwest. We're seeing some scattered showers and storms there. We might have some delays in places like Chicago or maybe even St. Louis today. All (confidence) storms you see stretching just to the west of Milwaukee, southward outside of St. Louis as we speak. That is a look at your forecast. John, let's send it back to you.
ROBERTS: Reynolds, thanks so much for that.
WOLF: Anytime. CHETRY: And CNN "NEWSROOM" is just minutes away. Heidi Collins is at the CNN Center with a look at what's ahead. Good morning, Heidi.
HEIDI COLLINS, CNN ANCHOR: Good morning to you, Kiran. That's right. Here's what we're looking at for the 9:00 hour in CNN. A deal on paper but the vote will actually come at noon today. A financial rescue agreement reached over the weekend. What it means for you?
And reaction to it all from John McCain and Barack Obama. CBS anchorman Bob Shaeffer will be with me. He just interviewed Barack Obama yesterday, where does the political race go from here? And fear factor at the pump. Southern gas supply problems change behaviors. We'll tell you all about that we're starting at the top of the hour right here on CNN. Kiran.
CHETRY: All right, Heidi. Thanks.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Piling on Palin.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: I'm just your average hockey mom.
ROBERTS: It's not just Democrats and late-night comics taking shots anymore.
UNIDENTIFIED MALE: The expectations for Sarah Palin, I think, are pretty low.
ROBERTS: Carol Costello looks at how some conservatives are joining the chorus. You're watching the most news in the morning.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
KATIE COURIC, CBS ANCHOR: How did the world leaders you met with react to you?
PALIN: They embraced me, Katie. Figuratively and a couple of them Pakistani guys, literally. But they were all so welcoming. Be it from Hamid Karzai, the president of Afghanistan, or Jalal Talabani, the president of Iraq, or Bono, the king of Ireland.
(END VIDEO CLIP)
ROBERTS: Well, ate-night attacks on the presidential candidates are nothing new but after a couple uncomfortable interviews some conservatives are now questioning John McCain's vice presidential pick. Our Carol Costello is live in Washington and she joins us now this morning and some of them are saying some not very kind things.
CAROL COSTELLO, CNN CORRESPONDENT: Oh, John, "Saturday Night Live" is positively pulverizing Palin as kind of expected. What's not, some conservative voices are saying, hey, it was fun while it lasted, but Governor Palin, you are clearly out of your league. Ouch.
(BEGIN VIDEOTAPE)
PALIN: One proven reformer who will clean up Wall Street and Washington, and that man is John McCain.
COSTELLO (voice-over): Sarah Palin's star rose at lightning speed.
PALIN: I was just your average hockey mom.
COSTELLO: But some fear that old cliche will hold true. The faster they rise, the harder they fall. And if Palin falls, some fear she'll take John McCain down with her. Former Palin fan, conservative columnist Kathleen Parker make no bones about it.
She writes, "Only Palin can save McCain, her party, and the country she loves. She can bow out for personal reasons. Do it for your country."
Parker's plea comes on the heels of Palin's widely panned interview with CBS's Katie Couric.
PALIN: It's very important when you consider even national security issues with Russia, as Putin rears his head and comes into the air space of the United States of America, where do they go? It's Alaska.
COSTELLO: It's became instant fodder for "Saturday Night Live."
POEHLER: Forgive, Mrs. Palin. But it seems to me that when cornered, you become increasingly adorable. Is that fair to say?
FEY: I don't know. Is it?
COSTELLO: Conservative columnist George Will was just as harsh writing, Palin performed like a flustered rookie. Former Bush speech writer David Frum wondered if Palin was a responsible choice for vice president.
While all of this sounds bad, Republicans caution, it's coming from intellectual conservatives, not Main Street Republicans who still love the hockey mom from Alaska.
UNIDENTIFIED FEMALE: These are the folks that have really responded to the candidacy of McCain/Palin ticket. These are the folks that are showing up in huge numbers, tens of thousands to the rallies.
COSTELLO: Still some wonder if all of this negative talk coming from conservative pundits will affect Palin, who will debate Joe Biden in just four days. The answer to that seems to be no. Actually, the negative talk about Palin may help her. UNIDENTIFIED MALE: The expectations for Sarah Palin, I think, are pretty low. So, I think she can exceed expectations. I'm not sure that she can disappoint them.
COSTELLO: And there are analysts who say, despite some ominous signs, Palin has performed well in past debates in Alaska.
(END VIDEOTAPE)
COSTELLO: And word is Palin is cramming for the debate. As expected Republicans are downplaying her performance and Democrats are saying, hey, she'll do just fine. While the rest of America waits eagerly for Thursday to either witness a train wreck and or an interesting, informative debate. John.
ROBERTS: Well, we certainly hope it's going to be the latter, Carol but the Obama campaign is doing everything it can as well to try to raise expectations. David Axelrod, the chief strategist of the campaign was out over the weekend saying hey don't count her out, don't underestimate her. She can be good. She has been good in the past. You know, this game of raising expectations is a tried and true political tactic, but what about Joe Biden.
I mean, is he kind of walking on eggshells here going into Thursday night?
COSTELLO: Well, he says he's ready. He is also like raising expectations at Sarah Palin's performance. He's saying things that she'd be formidable in this debate. I'm a little worried about her. But then Joe Biden has his own problem, right? He has a tendency to like say things he probably shouldn't. And can't appear condescending either. It's going to be interesting.
ROBERTS: A lot of it is going to be about body language. But as you said, it's going to be fascinating to watch. Carol Costello for us this morning in Washington. Carol, thanks so much.
It's 56 minutes after the hour.
(BEGIN VIDEO CLIP)
ROBERTS (voice-over): A $50,000 offer to move to the peanut capital of the world.
UNIDENTIFIED MALE: It's a five-year agreement like a sports star.
ROBERTS: How far one businessman is going to lure Jewish families to his city?
UNIDENTIFIED MALE: We felt like it need to be something that had enough sizzle.
ROBERTS: You're watching the Most News in the Morning.
(END VIDEO CLIP) (COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
As Jews across the country head to synagogues tonight for the start of Rosh Hashanah, chances are none of them are getting $50,000 to be there. But that's exactly what they would get or could get in small town Alabama. Our John Zarrella reports.
(BEGIN VIDEOTAPE)
JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): When members of Temple Emmanuel in Dothan, Alabama, arrive for services, it's clear. They're mostly older and there aren't very many of them. 50 families. So Larry Bloomberg, a wealthy member of the temple decided his community needed more Jews.
LARRY BLUMBERG, CHAIRMAN, BLUMBERG FAMILY RELOCATION FUND: We felt like it needed to be something that had enough sizzle that it would get attention, and it really has.
ZARRELLA: Bloomberg put up $1 million to help relocate 20 young families with children to Dothan. A town of 60,000 nestled in the southeast corner of Alabama. Response to ad in Jewish newspapers has been over the top.
ROB GOLDSMITH, EXEC. DIR., JEWISH COMMUNITY SERVICES: China, Ecuador, Cuba, South America. All over Israel.
ZARRELLA: Rob Goldsmith runs the relocation project. They are targeting families in the United States who will have to sign a multi- year deal, and could get up to $50,000 each.
GOLDSMITH: It's a five-year agreement like a sports star, that you will behave, that you'll be a good, contributing member to the community and to our congregation.
ZARRELLA: Dothan known for its murals. There's one on just about everything but the water tower, also prides itself in being different from a stereotype of a deep south city.
MAYOR PAT THOMAS, DOTHAN, ALABAMA: There is ignorance is everywhere. Here as well, but you have a great community here. You have a community that's very open to other faiths, and I think that's a great strength here.
ZARRELLA: A city that practices, the Jewish families here say, not just religious tolerance but religious acceptance.
DARYL SHAPIRO, TEMPLE MEMBER: Being a Jew, living in Dothan for 20 years, I have never experienced any anti-Semitism. Not one talk.
ZARRELLA: The Jews here say they have no problem using dollars as an incentive. It's a matter of survival, says Rabbi Lynne Goldsmith (ph).
UNIDENTIFIED FEMALE: We don't want it to die.
ZARRELLA: And an opportunity to stop the exodus of young Jews from small southern cities.
(END VIDEOTAPE)
CHETRY: That was John Zarrella reporting. So far, no serious offers. There's been some interest.
ROBERTS: We'll see.
CHETRY: Well, thanks so much for joining us this morning on AMERICAN MORNING. Hope to see you back here tomorrow.
ROBERTS: The news continues on CNN with "NEWSROOM" and Heidi Collins.
