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House Considers Revised Bailout Bill; Biden, Palin Prepare for Debate; Missing Adventurer's Plane Found; Best Ways to Borrow Money
Aired October 02, 2008 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Same week, same House. Slightly different bailouts. Will the same lawmakers who hated bailout one think better of bailout two? We're bracing for another make-or-break vote.
One night only. The bottom halves of the presidential tickets at the top of their games, they hope, for their one and only debate. We're live in St. Louis.
(BEGIN VIDEO CLIP)
SARAH SILVERMAN, COMEDIAN: You know why your grandparents don't like Barack Obama? Because his name sounds scary, but you'd think that somebody named Manishevitz Guberman (ph) might understand that.
(END VIDEO CLIP)
PHILLIPS: Not to drop names, but Sarah Silverman jumping into politics as only she can. Schlep the vote -- no joke -- this hour.
Hello, everyone. I'm Kyra Phillips, live at the CNN World Headquarters in Atlanta. And you're in the CNN NEWSROOM.
The Senate made it look easy, but last night's lopsided vote for a banking bailout package won't mean a thing if the House bails tomorrow. The $700 billion question is this: will the so-called sweeteners tacked onto the plan in the Senate win over more House members than they drive off?
Well, the add-ons, mostly different types of tax breaks, add more than $100 billion to the measure's price tag. Wall Street isn't optimistic, and stocks have been on the skids all day.
And it didn't help the first time, but President Bush is keeping up the pressure on lawmakers who voted down the original bill, as well as those who were on board before but don't like some of the changes.
CNN's Kathleen Koch is at the White House.
Kathleen, we have to ask, is anybody listening?
KATHLEEN KOCH, CNN CORRESPONDENT: Well, Kyra, that is the question. And we just got out of a very interesting briefing with deputy press secretary Tony Fratto. He says the president right now has called, over the last couple of days, about 36 lawmakers. He wouldn't say how many he's changed -- minds he's changed, but Tony did say that he has changed some.
Now, we asked him, because Fratto was changing his terminology. He said right now that the White House is, quote, "fairly optimistic" about the outcome of the vote come tomorrow.
I said, "Well, but, Tony, on Monday you were confident. What's happened?"
He said, "Well, I touched a hot stove." They're being a little bit more cautious right now.
And they're trying a new strategy. The president meeting today with small business, small- and medium-sized business leaders from around the country here at the White House.
And the president said that -- he was encouraging them to go up on the Hill, share their stories with lawmakers. And he told them that he believes that the bill that was passed in the Senate last night is really the best chance, he said, of providing the necessary liquidity, credit and money so that small and medium-sized businesses like theirs could continue to function.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This issue has gone way beyond New York and Wall Street. This is an issue that's affecting hard-working people. They're worried about their savings. They're worried about their jobs. They're worried about their houses. They're worried about their small businesses. And the House of Representatives must listen to these voices and get this bill passed so we can get about the business of restoring confidence.
(END VIDEO CLIP)
KOCH: The voices were telling some troubling stories that we heard some of the small business people talk about their employees' 401(k) plans, obviously, losing their value; talking about their employees not being able to borrow money to send their children to college.
One employer talked about how he had to lay off two-thirds of his employees for two weeks, because he said customers who would normally be buying their heavy pieces of machinery can't get credit to make the purchases. So this is a tactic that many here in Washington believe that the White House should have really turned to long ago: letting the people who are most affected, Kyra, by this credit crunch get out in front and say, you know, "This crisis is real."
PHILLIPS: Well, here is where the crunch hits home. Thanks so much, Kathleen.
Four hundred and ninety-seven thousand new claims for unemployment benefits last week, the most in seven years. The Labor Department estimates that some of those, 45,000 or so, resulted from hurricanes Gustav and Ike. Now, those numbers weighing on Wall Street right now. The Dow went down at the opening bell and hasn't looked back. Right now, Dow Industrials down 272 points. We're going to run all the numbers with our favorite Susan Lisovicz at the bottom of the hour.
So you need cash fast? Where you get it could affect your financial well-being for years to come. Our Gerri Willis tells us where to look and what to leave alone later in the hour.
Well, it is sure to be one of the most watched political events this season: Joe Biden and Sarah Palin going face-to-face in their first and only vice-presidential debate, and it's just hours away.
CNN's Suzanne Malveaux joins us now from the debate site, Washington University in St. Louis.
Suzanne, I'll tell you what, you are lucky to be there. I think everybody wants to be right there in person watching this go down.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Kyra, you know, all eyes are on this university. And I tell you, there's a lot of buzz already. We're about eight hours away from this debate. There's a lot of excitement, enthusiasm here.
Honestly, both these candidates have been really preparing very much of the week. Sarah Palin sequestered in Sedona, the ranch of John McCain, his top aides. What they need to do tonight, what they acknowledge, is that she needs to recover, recoup from some interviews that were less than stellar this past week. She needs to show a sense of command of certain things: foreign policy, domestic policy.
And she needs to have the kind of presence that she had when she was doing dozens of debates, when she was running for the governor of Alaska, that she had a sense of possession of herself, some issues: energy, that type of thing. She needs to be herself.
And what she is also going to do, as well, is set up a contrast between McCain-Palin ticket, their philosophy, their policies, and what they are calling, really, the Obama-Biden liberal record. And she's going to highlight that this evening.
On the other side, Joe Biden, what he needs to do, it's kind of a delicate balancing act here. He obviously is going to demonstrate the contrast between his policy and the other ticket. He's going to show his knowledge.
But he has to be careful not to appear as if he is being a sexist or offensive. He's been accused of that before. They believe that they've got that pretty much in control here. We saw that they had these debate camps. The person who was playing Sarah Palin, Michigan Governor Jennifer Granholm. We also know that he's reached out to Senator Clinton, Hillary Clinton, to get some tips when it comes to that.
But they say he's not that concerned. He has debated strong, tough women before: Kay Bailey Hutchinson, Mikulski, a number of women. So he is going to put that in perspective. But they say he's not going to take the bait if there's any kind of one-line zingers. He is going to stick with the issues -- Kyra.
PHILLIPS: We were thinking about, you know, when he made those comments about Barack Obama a while back. We're just hoping he doesn't say to Sarah Palin, "Oh, you're so clean and articulate." That would not be the right thing to say! All right.
MALVEAUX: He needs to stay away from those lines. Right.
PHILLIPS: Exactly.
MALVEAUX: Stick with the issues.
PHILLIPS: Amen. We'll talk to you again. Thanks, Suzanne.
Well, both vice-presidential candidates are under the media microscope as they get ready to go one on one, and they'll be facing tough questions. And critics will be picking apart every answer, word, expression, and tone.
And as for Palin, she's still trying to regain her footing after several shaky network TV interviews, and now she's taking heat again for this one. It focused on the Supreme Court cases, including the Roe versus Wade abortion case.
Take a listen.
(BEGIN VIDEO CLIP)
KATIE COURIC, CBS NEWS ANCHOR: What other Supreme Court decisions do you disagree with?
GOV. SARAH PALIN (R-AK), VICE-PRESIDENTIAL NOMINEE: Well, let's see. There's -- of course, in the great history of America, there have been rulings that there's never going to be absolute consensus by every American. And there are those issues again like Roe v. Wade, where I believe are best held on a state level and addressed there. So, you know, going through the history of America, there would be others, but...
COURIC: Can you think of any?
PALIN: Well, I would think of any, again, that could best be dealt with on more local level.
(END VIDEO CLIP)
PHILLIPS: And here's how Senator Joe Biden answered the same question.
(BEGIN VIDEO CLIP)
COURIC: Are there Supreme Court decisions you disagree with?
SEN. JOE BIDEN (D-DE), VICE-PRESIDENTIAL CANDIDATE: You know, I'm the guy that wrote the Violence Against Women Act, and I said that every woman in America, if they are beaten and abused by a man, should be able to take that person to court, and meaning you should be able to go to federal court and sue in federal court the man who abused you, if you can prove that abuse.
But they said, no, that a woman, there was no federal jurisdiction. And I held -- they acknowledged I held about 1,000 hours of hearings proving that, that there's an affect on interstate commerce. Women who are abused and beaten are women who are not able to be in the workforce.
And the Supreme Court said, "Well, there is an impact on commerce, but this is federalizing a private crime, and we're not going to allow that." I think the Supreme Court was wrong about that decision.
(END VIDEO CLIP)
PHILLIPS: So what will you be paying attention to when you watch the debate tonight? Will it be the issues, confidence levels, or manners? that leads me to Joe Biden, and it got us talking in our morning meaning.
Biden is known for not putting on the kid gloves. So does that matter if he gets ready to debate a woman? Should he act like a gentleman? Should he pay attention to chivalry? As a strong women, does it insult you that we even brought this up?
Here's what we said in our morning editorial meeting.
(BEGIN VIDEO CLIP)
MICHELLE, PRODUCER: This is not about a woman -- a woman, you know, debating. It's about two vice-presidential candidates talking about the issues.
PHILLIPS: So I really want to steer away from the whole gender issue, because I think it's just -- I think it's moralizing.
MICHELLE: Biden's addressed this already. I don't know if I saw it on our air or somewhere else. But somebody posed the question to him. He's not going to temper himself or make himself any different tonight than he would be any other time, because he's already debated "the woman."
PHILLIPS: I would even have no problem saying this bothered me, you know, and should this even be an issue?
(END VIDEO CLIP)
PHILLIPS: Well, so what do you think? Should this be an issue? No one ever said that Biden to watch his manners with Hillary Clinton. So what's up with this? Whether Biden is debating a man or a wooden -- or a woman, rather, shouldn't he and Palin just be as tough as they can, no matter what the gender? Tell us what you think. E-mail us at CNNnewsroom@CNN.com. And be sure to stay with CNN tonight for complete coverage of the one and only vice-presidential debate. The debate kicks off, 9 p.m. Eastern Time right here on CNN.
And we're following new developments in the corruption trial of Alaska Senator Ted Stevens. A hearing is set this afternoon to consider a defense motion to dismiss charges against the nation's longest serving Republican Senator. Attorneys for Stevens claim that prosecutors withheld evidence that would have helped their defense.
Stevens is accused of failing to report hundreds of thousands of dollars in gifts from the founder of a major oil contractor in Alaska. Stevens says he's not guilty. We'll continue to monitor the trial throughout the day.
More than a year went by and nothing on the whereabouts of adventurer Steve Fossett. Now, searchers have uncovered more evidence about his disappearance. We'll tell you what they found in a live report.
And it's one of the world's tiniest schools, but it's got a teacher with a big, big heart. We're going to take you there.
(COMMERCIAL BREAK)
PHILLIPS: For over a year nothing. Adventurer Steve Fossett and his plane had simply disappeared from the sky. And then this week a California hiker finds stuff with Fossett's name on it. Searchers go back out and confirm today they have located the wreckage of Fossett's plane.
Dan Simon joins me now live from Mammoth Lakes, California.
What do you know, Dan?
DAN SIMON, CNN CORRESPONDENT: Hi, Kyra.
Pretty remarkable that, after all this time, Steve Fossett's plane would be found. Let me tell you what's happening at this exact moment.
The wreckage is about 12 mile behind me in the California Sierra, deep in the mountains. And right now the NTSB is headed that way to begin processing the scene and, hopefully, figure out what caused that plane to go down. There are also about 60 people looking for any kind of human remains.
Kyra, this is a mystery that had gone on for well over a year. When Steve Fossett first went missing, this search involved more than 1,000 volunteers that covered more than 20,000 square miles. Of course, he'd been presumed dead, but this question always lingered, what happened to Steve Fossett's plane?
Well, we found out that answer after a hiker went into the mountains and discovered three pieces of identification that had Steve Fossett's name on them. There was also $1,000 in cash. Well, that prompted a whole new search, and that's when they found that plane.
And looking at that wreckage, authorities say there's no chance anyone could have survived. Take a look.
(BEGIN VIDEO CLIP)
MARK ROSENKER, ACTING CHAIRMAN, NTSB: That information is indicative of a high-impact crash, which appears to be consistent with a non-survivable accident.
(END VIDEO CLIP)
SIMON: The NTSB, of course, investigating the cause of this crash. Hopefully, we'll get some answers but could be a very lengthy investigation. But the focus today, the focus today is trying to find Steve Fossett's body, and some 60 people are up there deep in the mountains, looking for any kind of human remains. Also, about five cadaver dogs up there, Kyra.
PHILLIPS: Well, Dan, just talking to investigators. And I don't even know if you were able to ask this question or if they could answer this question. Due to the wreckage and what -- how it looks now, is it possible that there could be no remains because of the way the crash went down?
SIMON: That's always possible. It's possible that, due to the impact of the crash, that you won't find anything.
Also, you're talking about the California Sierra, where there's wild -- a lot of wildlife, and an animal could have gotten to Steve Fossett's body.
So -- hopefully, they will find something. Hopefully, it will give at least the family a little bit of closure, but, you know, we'll hear from the authorities a bit later today, and we'll get back to you, Kyra.
PHILLIPS: Sounds good. Dan Simon, thanks so much.
Twenty-two seconds after he hit "send," this devastation. Investigators have confirmed the engineer of a commuter train did send a text message right before it plowed into a freight train.
Engineer Robert Sanchez and 24 other people were killed in last month's collision just outside of L.A. His texting broke a company policy forbidding cell phones on duty. A week later, California officials passed a state-wide ban on cell phone use by train crews.
About 300 people, including 24 children are still missing, nearly three weeks after Hurricane Ike battered the Texas coastline. They remain unaccounted for. Crews using dog teams are scouring mounds of storm debris today. Officials hope that most of those missing evacuated to shelters and aren't even aware that they're being sought.
Most are from the area's hardest hit, including Crystal Beach, Port Bolivar, Gilchrest -- -christ, rather, and Galveston. Well, the weather service says that staying on the coastal islands during Ike would be certain death. Chad Myers in the weather center.
You know, you've got some pictures here to show it and explain.
CHAD MYERS, CNN METEOROLOGIST: Well, right. The weather service took a lot of heat about that little statement that they said. If you stay on the islands, you'll face certain death. And then people stayed on Galveston Island and they said, "See? I'm still alive."
Well, the problem is, they really didn't a good look at what the Bolivar Peninsula looked like, because people were down there in Galveston, now are finally back in Bolivar, and we'll show you.
This is what this peaceful area of Bolivar looked like, a little square right through here. I want you to notice that there's a little canal back here and there's a bunch of homes in the middle. Now I'm show you exactly what it looks like now after the storm. That same square is right there. That's it. That's the canal and that's the beach.
Let's go back up to the top. We'll show you what it did look like. There's the canal right there. There's the beach. One, two, three, four, five, and I'll count them all. There's 39 houses in that square. Now see how many are left. Two. One, two. Thirty-seven houses don't exist anymore. They are gone.
People were in those houses. If they were, they're in parts -- those are the ones that are missing, I'm afraid. Because this is just -- that's an unsurvivable event there, when your house leaves you and it just takes you into the debris field as you're washed away. People know about that from Katrina. Some people did survive floating on rooftops. But didn't get any reports of that in this storm -- Kyra.
PHILLIPS: All right. And just to be clear, because I think I mispronounced it. It's Port Bolivar?
MYERS: Bolivar, like Oliver.
PHILLIPS: OK. And Gil-christ or Gilchrist?
MYERS: I think it's "crisst."
PHILLIPS: OK. Gilchrist. Thank you, Chad.
MYERS: I don't know. That's a 50/50 shot on that one.
PHILLIPS: All right. I just want to make sure I get it right for those who live there.
MYERS: Sure.
PHILLIPS: Well, a man accused of line-jumping jumps his accuser, who happened to be a 16-year-old girl. It happened at a McDonald's in Los Angeles, and it was all caught on tape. You can see the guy punch the teenager in the face several times, the whole thing going down in front of some little kids. People really want to I.D. this guy. He's described as a black male, 35 to 40, about 5'10". He and two young boys left in a red pickup truck.
And the big face-off. Sarah Palin going face-to-face with Joe Biden just hours from now. We're going to hear from supporters from both sides just in a little bit.
And it doesn't grow on trees, you know, but money may be available when you find yourself in a jam. Financial expert Gerri Willis is here to tell us what to look for.
(COMMERCIAL BREAK)
PHILLIPS: Checking the big board right now. Dow Jones Industrials down 293 points. As you can imagine, with everything going on, on Cap Hill and the decision made by the Senate, the numbers being affected dramatically as we try and figure out what is going to happen with that $700 billion bailout plan.
Well, the car breaks down, the plumbing backs up, the bills pile up and up and up, and then all we need is a money fix. And your credit cards start getting scarce. Well, where do you turn? We turned to CNN personal finance editor, Gerri Willis.
Gerri, let's go ahead and start with the places to avoid.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right. Well, Kyra, there are good places and bad places to go.
The bad places to go for emergency money, getting a payday loan. With a payday loan, it's basically a cash advance on your salary, and it's expensive. Fees can be 15 bucks to 30 bucks for every $100 you borrow. And if you don't pay off what you owe by your next paycheck, you are looking at sky-high interest rates that annualize out at 400 percent.
OK. Bad, but not as bad as payday loans, cash advances on your credit card. You get these letters all the time from your credit-card operator saying, you know, "Sign this check. We'll give you this money." Guess what? Don't do it, because it's really expensive. Again, interest rates on those checks, 20 to 25 percent in some cases.
Another thing people think about, particularly because so many folks are losing this jobs right now, liquidating your 401(k). Maybe you think, "I'll just liquidate this 401(k), take the money." But look, if you're not 59 1/2 years old, you'll pay penalties and taxes on the money. Not to mention the fact you're putting your retirement in jeopardy -- Kyra.
PHILLIPS: What about student loans?
WILLIS: Student loans. Well, I mean, student loans, of course, are critically important. If you're trying to borrow money quickly for a student loan, you definitely want to think about going to places like Prosper.com, Zopa.com.
We talked a lot about problems with student loans right now. Certainly, some colleges are having a hard time borrowing. They often go to banks. And I don't know if you've heard the story, Kyra, but essentially some banks are now telling colleges they're not going to loan them money. They use this money for new dorm residences or gyms, in many cases. Colleges tap into bank loans so they can pay their teachers and their staff.
So banks, because of the credit crunch don't have access to these funds. There will be less construction on campuses, perhaps layoffs. Ultimately, that could result in increased -- increased tuition rates, that is.
But remember, the 700 bailout bill that will be voted on in Congress is supposed to loosen up credit markets. We'll see if that happens. But as you can see, that credit crunch, Kyra, it's getting tighter and tighter and tighter, affecting people you've never expected it would.
PHILLIPS: All right. So what do you think? Where are some good places that consumers should definitely go?
WILLIS: Well, I think you definitely should think about, not liquidating your 401(k), but if you do have big bills, then think about borrowing from your 401(k). A 401(k) loan is a good idea, if you absolutely have to have the money.
You must pay the loan back within five years. You can generally take up to half of the value of your 401(k).
A better option, probably, tapping into your investments, breaking a CD that may not have matured. You'll pay penalty fees on some interests -- you'll give up interest payments. But if you need the cash now, look, it's your money. Go for it.
Also if you're a senior, consider a reverse mortgage. This is for folks 62 or older. It's basically a loan against your home that you don't have to pay back as long as you live there. Keep in mind, thought, there could be a lot of fees.
Kyra, back to you.
PHILLIPS: All right. Gerri, thanks so much.
WILLIS: My pleasure.
PHILLIPS: A school with four students, a bit hit on the World Wide Web, and we're going to take you to the class in southern Iran.
(COMMERCIAL BREAK)
PHILLIPS: Wall Street definitely on edge, waiting for the House vote on the bailout bill. And until we get it, investors are hunkering down. Susan Lisovicz on the floor of the New York Stock Exchange with all the details. Hey, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Kyra.
Well, you know we're in a bear market, and the path of least resistance is down, especially when, you know, we're waiting on the House. Everybody remembers what happened when the House voted down this massive package on Monday. So some concerns about that.
But in the meantime, clear and unmistakable signs that credit continues to tighten and that the economy continues to worsen. We've got initial jobless claims. We're -- they're coming in just under half a million. It's a bad omen just before the monthly job reports tomorrow. And, by the way, that weekly jobless report, that level is the highest since September of '01. Meanwhile, factory orders fell by the largest amounts in two years.
Retailers are getting proactive. Wal-Mart today saying that it is going to cut prices on 200 toys to $10 or less. They include Barbie and her dog Tanner. Who knew that Barbie's dog was named Tanner?
And "Wall Street Journal" saying that the Federal Reserve is now thinking about an interest rate cut. Was not in a position to do so a couple months ago when oil prices were close to $150 a barrel. But oil is right now down $4, and trading under $95 a barrel, Kyra. And why is that? Because of clear and unmistakable signs that the U.S. economy continues to decline. And not only that, declining global economy as well.
What we're also seeing decline, the Dow Industrials. Right now off their lows for the session, down 272 points. Nasdaq is down 68 -- Kyra.
PHILLIPS: All right. We'll be talking again.
Susan, thanks so much.
Let's talk about those debates. The House is back on the bailout issue three days after it just said no. Will things turn out differently tomorrow? We're going to ask around.
And a winning role on the popular "Sex and the City" and a winning role in the battle against leukemia. We will hear from actor Evan Handler.
(COMMERCIAL BREAK)
PHILLIPS: Anticipation with a capital A. Everybody's waiting for tonight's showdown in St. Louis. Sarah Palin and Joe Biden will meet face to face just hours from now in their first and only vice presidential debate. It takes place at Washington University.
Joining me now from St. Louis, Obama campaign senior adviser, Linda Douglass. And by the way, we're going to talk to Joe Lieberman right after Linda, so stay with us here so we get a nice balance going.
LINDA DOUGLASS, OBAMA CAMPAIGN SENIOR ADVISER: Linda, good to see you.
Thanks for having me.
PHILLIPS: All right. So I'm curious -- I just want what to know, as a strong female who's been very successful, is all this talk about, oh, Joe Biden needs to be a gentleman, he needs to watch his manners , he needs to treat Sarah Palin like a lady, does that bother you in any way that that's even coming up?
DOUGLASS: What a good question. You are the first person who has asked that question today.
Look, Senator Biden looks at her as a very formidable opponent in this debate. He has debated many, many women over the course of his career -- strong women in the Senate, Senator Feinstein, Senator Mikulski. He debated Hillary Clinton 12 times during the primary. He's not looking at this as an issue of what the gender of his opponent is.
He's looking at which one of these candidates represents what kind of administration that's going to be provided for the American people. He's looking at her as a representative of the McCain/Palin ticket, which would continue the policies of George Bush, economically and in foreign policy. That's his focus, certainly not her gender.
PHILLIPS: Good. But he'll still get the door for her, right?
(LAUGHTER)
PHILLIPS: All right, Linda.
DOUGLASS: He's a very gentlemanly fellow.
PHILLIPS: Yes, he is. He can be a tough one, too.
Let's talk about Governor Palin. A lot of this talk was created because she's had a tough time with some of these network interviews and receiving a lot of criticism.
Is that going to work to his advantage? Is he going to look for those weak spots and try and stump her? Or is he just going to stay focused on, this is my experience, this is what I know, this is why I should be the vice president?
DOUGLASS: That's exactly -- it's option No. 2. You're exactly right.
He's going to be talking about what it is that the Obama/Biden administration would do with respect to the devastating financial news is affecting all Americans' lives around the country. Their pensions are in jeopardy, their wages are going down. You saw today that 500,000 people filed for unemployment claims. Senator Obama was in Michigan today where 30,000 jobs have been lost. Half a million, 600,000 jobs in the last nine months.
These are the kinds of things he's going to be talking to voters about. It's a very different approach to how this administration, the Obama/Biden administration, would handle the lives of average Americans. That's going to be his focus.
PHILLIPS: Is the Palin effect wearing off? Have these recent television interviews helped Obama recently in any way? Helped Joe Biden in any way?
DOUGLASS: Well, it's really hard to say. These polls are all over the map. They've been so wild and extreme. We don't really look at that in particular. Certainly I think that what is working right now in terms of the message that Senator Obama and Senator Biden are delivering to voters is they're taking a look at one ticket which really understands what's going on in Americans' lives, which is offering tax cuts to the middle class and all kinds of solutions to help people, for example, send their kids through college and create 5 million new green jobs in a new economy. And they're looking at John McCain, who had a very erratic response to the financial meltdown of the last couple of weeks, and is also offering pretty much the same old thing they'd been getting the last eight years. That's really what's working, we think, in our favor at the moment moment.
PHILLIPS: Well, and for sake of fairness, Biden has made a number of gaffes on the campaign trail as well. How has he been preparing? Has he been sequestered and meeting with advisers and -- has he been surrounded by consultants?
DOUGLASS: Well he certainly has been preparing.
Senator Palin has done a tremendous amount of preparation. Senator Biden too has been preparing. He's got a pretty good grasp of all this already. He's considered one of the foreign policy experts in the country and he's considered certainly a great expert on the economy as well. He's been fighting for people who live in the middle class for all of this career.
And in terms of this gaffe issue, I have to say that it seems to me that the biggest gaffe that has been made in the last couple of weeks is John McCain saying that the fundamentals of the economy are strong in the middle of this financial meltdown. Joe Biden is a guy who speaks from the heart, speaks from the gut and he'll be fine tonight.
PHILLIPS: All right. Linda Douglass, of course we'll all be watching.
Great talking to you. Thanks, Linda.
DOUGLASS: Thanks so much, Kyra.
PHILLIPS: You bet.
Independent senator Joe Lieberman who was the Democratic nominee for vice president eight years ago now supports John McCain. He joins us live from St. Louis.
I hope that you could hear Linda's entire interview there, Senator. And I want to ask you the same question.
SEN. JOE LIEBERMAN (I), CONNECTICUT: Yes, I did, Kyra.
PHILLIPS: You did? OK. Great.
And I want to ask you the same question, this whole talk about Joe Biden, he better be a gentleman, treat her like a lady. How does that make you feel? How does that make your candidate feel?
LIEBERMAN: Well, Joe Biden is a gentleman. So he'll take care of himself and handle it just right.
I think -- tonight's a real opportunity for Sarah Palin to get this discussion away from the kind of gotcha sort of final exam in college kinds of question she's been asked and to the qualities that led John McCain to select her. She's had executive experience. That's different from any of the other three candidates, frankly. She's a typical middle class person from a typical middle class family who got frustrated and angry at government and decided to get involved and make it better.
And she did. She ran against the incumbent Republican governor, she beat him. She took on the oil industry. McCain/Palin really is the the ticket that will change Washington because that's uniquely the record of John McCain and Sarah Palin -- work across party lines to get things done. And that's what our country needs desperately right now.
PHILLIPS: And you bring up good points. I mean, we do want to go back and remember that she did win the position of governor because she took on the good ole' boys, she let them have it. Everybody wanted change. And she's one of the most popular governors in America right now.
But she has not handled those network interviews very well. And she's received a lot of heat. So what's the story? Does she know what she's talking about? Is she qualified? Or, was she treated unfairly by given too many advisers. Told to worry about too much. Too much coaching, too much being sequestered. And that's taken a knock at her confidence.
LIEBERMAN: Yes. Let me just do what my buddy John McCain would call straight talk.
PHILLIPS: I would hope so.
LIEBERMAN: Yes. She knows things, she can discuss issues that neither Biden, McCain, Obama or I could discuss with that certainty because we haven't done that. We, because we've lived in Washington, can talk about federal issue, national issues, that she's just absorbing and learning.
But what's important, really, is the personal qualities. She's very strong. She has great values. She's smart. And she's been a leader. And she's a breath of fresh air that Washington desperately needs. So that's why I say, she's the unique person running for national office. She really comes from the America that feels its unrepresented in Washington today. And I think that's what she's got to get back to tonight.
PHILLIPS: Well, and how will she do that? And also install a confidence that she is smart, knows the issues, I mean, Senator, she couldn't say what newspaper she reads. She couldn't talk about specifics supreme court cases. I don't think anybody argues with the point that she is down to earth, she comes from blue collar roots. She's the real deal. I mean, I've met her family. She's got an amazing family.
But the question is --
LIEBERMAN: Right, great family.
PHILLIPS: Yes. Is, is she deep enough? Is she smart enough? Is she experienced enough? Do you really think she is better than Joe Biden?
LIEBERMAN: Well, this is the challenge that she has tonight. And I think she's got it within her, because she is deep enough, she is smart enough and she's made decisions. She's been an executive. I mean, you don't get to be the most popular governor in America by just, your smile. I mean, she's done it.
So I think she's got to come back to that, and that sense go on the offensive. And of course, she's also got to explain why she's so proud to be running with John McCain, and why she's convinced that John McCain will be so much better a president than Barack Obama. And really be able to get change accomplished that Senator Obama, by his record, has not done up until this point. Not taking on his own party. Not really having a record that McCain has of working across party lines to get things done. And, of course, Sarah Palin a that same record in Alaska.
PHILLIPS: Did you talk to Sarah Palin? Did you advise her, did you tell her what she needed to do?
LIEBERMAN: I actually was with her in Philadelphia for a while. I did some events for the campaign and I talked to her for a while. And basically, this is going to seem trite, but I said what I've just said to you and your viewers which is, be yourself.
You know, you've got this far. John McCain chose you because of who you are, and if somebody asks you a question that you don't know four points of the answer to, go with the two or three you know, but show them who you are. Which is that you're a typical middle class American with all the great values and hopes --
PHILLIPS: But is she smarter than Joe Biden?
LIEBERMAN: -- and desire to make our country --
PHILLIPS: Is she smarter than Joe Biden?
LIEBERMAN: I'm not going to -- Yes, but this is --
PHILLIPS: Come on. You know Joe Biden. You're supporting Sarah Palin. I want to hear it, Senator. I want to hear it.
LIEBERMAN: But this is not an IQ test. She's plenty smart and Joe Biden is plenty smart. I've known Joe more than 30 years. We're friends. I'm not here to say anything negative about him.
I'm here to say that Sarah Palin is ready to be vice president based on her record and to make John McCain's central point. You're upset with Washington, you want change. Go with the McCain/Palin ticket because that's the ticket composed to people --
PHILLIPS: I'm going to try one more time. Is she smarter than Joe Biden? you know Joe Biden and she's going for the vice presidential position.
LIEBERMAN: But that's not --
PHILLIPS: You don't think that's important?
LIEBERMAN: They're both plenty smart enough to do this job. The question is, what does Sarah Palin bring to national office? She brings executive experience. She brings the heart and head and voice of middle class America. And she'll be their advocate in exactly the areas that John McCain wants her to work in. In energy independence, in reform of our government and in the --
PHILLIPS: Senator Joe Lieberman.
LIEBERMAN: -- and taking care of the needs of special needs kids.
Thanks, Kyra. Have a good day.
PHILLIPS: You're a gentleman. Thank you, Senator.
LIEBERMAN: Well, you are -- thank you.
PHILLIPS: Well, he was one of the special men among the women of "Sex and the City" but after Evan Handler has a winning role off the screen as well, he's trying to change the way the hospitals do business and CNN medical correspondent Elizabeth Cohen explains in today's Empowered Patient segment.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice-over): For fans of "Sex and the City," Evan Handler is Harry Goldenblatt.
EVAN HANDLER, ACTOR, "SEX AND THE CITY": Charlotte York, will you marry me?
COHEN: What people don't know is along with acting, Handler has another passion. Patient empowerment. For him, it's personal. When he was 24, Handler was diagnosed with leukemia. Doctors told him he would likely die. Handler believes he's alive today because of some truly excellent doctors. But also because he was a royal pain in the neck.
HANDLER (on camera): I was considered to be difficult and I was pretty rigorous about checking everything all the time.
COHEN: For example, once he looked at his I.V. bag and noticed another patient's name.
HANDLER: So I rang the call bell for the nurse and got the very common response of, what is it, Evan? We're on a lunch break. And I said, well actually, the drug that's running into my vein has someone else's name on it. And there was a pause. And they said, someone will be right there.
COHEN: And he says this was just the beginning. Infection were allowed to fester. Safety precautions ignored. So what are his tips for dealing with an imperfect health care system? Handler's first words of advice, when you're seriously ill, bring someone with you to the doctor's office or hospital.
HANDLER: It's really, really tough to keep your eye on everything by yourself.
COHEN: Also, read about the drugs you're taking and don't be afraid to speak up.
HANDLER: Question whether it's the best drug for the condition.
COHEN: Now more than 20 years later, Handler is cancer-free and writes books about what happened to him.
HANDLER: You go in this room here!
COHEN: And uses his celebrity to tell his story.
HANDLER: I think it's horrendous that some of the things that happened to me happened and I'd like them not to happen to others.
COHEN: Elizabeth Cohen, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: And you can read more about Handler's story by checking out Elizabeth's column at CNN.com/health.
Size doesn't matter when there are lessons to be learned. We're going to take you to one of the world's smallest schools where education is big.
(COMMERCIAL BREAK)
PHILLIPS: Lessons loom large at one of the world's smallest schools. Sometimes all you need are the pictures to tell the story. And that's exactly what CNN Headline News senior writer, Asieh Namder. Asieh takes us inside of the tiny Iranian school with a big-hearted teacher.
(BEGIN VIDEOTAPE)
ASHIEH NAMDER, CNN HEADLINE NEWS SENIOR WRITER (voice-over): Four young students and one very dedicated teacher. This is perhaps the world's smallest school in the southern Iranian town Kalou, on the Persian Gulf.
Population, 34. In fact, it is so small that you cannot find it on the Google maps. It's 70 miles from Bushehr, where Russia is helping Iran build a nuclear power plant. But in this fishing village, no one is talking about Iran's standoff with the west. Chances are, no one cares.
It was 21-year-old teacher Abdol-Mohammad Sha'raani, who put this tiny school on the map in his blog. A friend in Australia created an English version for the world to see. The school is now recognized by UNESCO as the world's smallest. This is where Sha'raani wanted to teach. He could have gone to big city schools. S chose this because he could make a real difference.
And he already has. Meet Hamidah, Parisa, Mahdi and Hossein. Their faces filled with hope and big dreams for the future.
Life in Iran can also be filled with a fear and uncertainty. When a package arrived from the U.S., 10-year-old Hossein was terrified. He thought it was a bomb. There were chocolates. The gift that gave Sha'raani the change to talk to kids about the world. He told them governments are different from people.
The kids study inside of the classroom or out by the sea. Sometimes as a group, other times the work has to be done alone. And for fun, there are picnics at the beach for an occasional dip in the water. Because of worldwide publicity, the classroom now has all of the basics. The broken desks have been replaced by four new ones. There is even a computer donated by the local Ministry of Education.
For Sha'raani, the job is not always easy. But he says that the kids and their enthusiasm make it all worthwhile. When he was asked about the dreams for the future a few years ago, Sha'raani said he wanted to be a teacher in a far flung village. Looks like he's living the dream.
(BEGIN VIDEOTAPE)
PHILLIPS: Ashieh joins us now. You know, the president of the United States says, Iran, axis of evil, don't want to deal. Bad news. Tell me why you cared about this story.
NAMDER: Well, to show another side of this country that is constantly in the news, Kyra. Put aside the nuclear issue, put aside you know, Iranian militants helping insurgents in Iraq. This is a nation with some many great things, like this teacher, who's really trying to make a difference in the lives of four kids. PHILLIPS: And he's teaching those four kids, it's about peace, it's about getting along.
NAMDER: It's about the people. You know, government can do what they want. But when it comes down it to, every nation, every country has good and bad.
PHILLIPS: So how do Americans help? I mean, you see the computer, you see the books. A lot of people responded to his efforts via the web.
NAMDER: We have the address for you on the full screen there. And it looks like it may be a little bizarre for what we're used to as Americans. But that's what you need to do on the envelope.
And I asked Abdol-Mohmmad. I said, what do you need? He said, whatever you send me I will appreciate it. So, very sweet man. Clearly dedicated. I asked him what his plans for the future are. He said, you know, I have offers to move into big cities. But I started this job and I want to finish it.
PHILLIPS: All right. And these kids. I can't wait to see what they grow up to be.
NAMDER: We will keep an eye on them.
PHILLIPS: We will. We'll follow them.
NAMDER: Sounds great, Kyra.
PHILLIPS: Ashieh Namder, thanks so much.
NAMDER: Sure.
PHILLIPS: Well, amping up her dark comedy with some Jewish jokes. Sarah Silverman and her potty mouth try to flush out the votes in Florida. You've never seen a get out the vote campaign like this before, I promise.
(COMMERCIAL BREAK)
PHILLIPS: Well, it may sound like 2000 all over again. But Florida is once again a key state in the presidential race. John McCain and Barack Obama desperately want to win there. And now there's a reverent new push to get young Jewish voters to lobby their grandparents. You've heard of get out the vote. How about, heard of get out the vote, but what about schlep out the vote?
Kareen Wynter reports.
(BEGIN VIDEOTAPE)
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Sarah Silverman is bringing her dirty humor to the campaign trail.
SARAH SILVERMAN, COMEDIAN: And get your fat, Jewish (EXPLETIVE DELETED) on a plane to Florida.
WYNTER: And she isn't kidding. Check out this four-minute internet video on the web site, thegreatschlep.com. Silverman wants young, Jewish voters to schlep it to Florida, a closely fought battleground state to convince their undecided grandparents to vote for Obama.
SILVERMAN: You know why your grandparents don't like Barack Obama? Because his name sounds scary. But you'd think that somebody named Manishevitz Guberman (ph) might understand that.
WYNTER: Wallach co-founded the web site.
ARI WALLACH, CO-FOUNDER, "THE GREAT SCHLEP": It literally took Sarah about 15 seconds to get the concept, say yes, and already start kind of scripting it out. And we had it about 10 days later.
SILVERMAN: You know, you could compare an elderly Jewish woman like Nana, to a young black man. They both love track suits. They can't get enough of them. What else? Car of choice, the Cadillac. If all of their friends are dying --
UNIDENTIFIED MALE: No. No.
WYNTER: Jokes aside, Wallach's campaign has a serious goal.
WALLACH: 12 percent of the American-Jewish community is undecided. That comes out to a few hundred thousand votes. Most of those actually are in swing states.
WYNTER: Wallach says response to their initiative has been overwhelming. Silverman's video has received more than a million hits. And more than 11,000 people have joined the organization's Facebook page.
WALLACH: It's a testament to the work that people are doing across the board and how strongly we believe in this candidate and the change he can bring to America.
Kareen Wynter, CNN, Hollywood.
(END VIDEOTAPE)
PHILLIPS: $100 billion here, more add-on there. Could the Senate sweeteners sour House members on the bailout? A potential pickle on Capitol Hill.
Just hours to go before they meet, the vice presidential hopefuls cramming for this evening's debate. Joe Biden versus Sarah Palin. Will there be drama? Will you watch?
