Return to Transcripts main page
CNN Newsroom
Hedging Bets on the House: Will the Bailout Bill Pass?; Analyzing the Performance of the Vice Presidential Candidates; High Seas Standoff
Aired October 03, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Main Street and Wall Street watching Washington. This hour the House gets back to it, heading for an executive vote on the revised bailout bill. Will the changes help or hurt?
And debate bounce. Vice presidential candidates make their points. Did voters make up their minds?
Also, signs of the economic times. Job losses and bank buyout.
It is Friday, October 3rd. You made it through the week, everybody. I'm Heidi Collins. You're in the CNN NEWSROOM.
Open for business and ready for another bailout battle. House members are huddling this morning over the Senate's reworked bill.
CNN's Brianna Keilar is also on Capitol Hill.
So, Brianna, when is the earliest there could be a vote on this?
BRIANNA KEILAR, CNN CORRESPONDENT: Well, we're expecting that it would be midday, Heidi. I mean the earliest would be sometime, I think, perhaps in the 11:00 a.m. hour, but that is, by far, the earliest. And we're not hearing that it's going to be at that time.
What we can tell you right now is that this hour the House will begin debate, sort of on the preliminary housekeeping things that they need to get out of the way before they could take up this measure and then go on to actually debating the bailout package.
So as we speak, you can see a live picture there of the House. We're expecting the House to convene momentarily and for those preliminary things to begin. And, again, midday, that's obviously sort of a bit of a vague description, but that's what we're hearing...
COLLINS: Yes.
KEILAR: ... in terms of when the vote may come.
Last night we heard House Speaker Nancy Pelosi saying there was growing support. That support was growing. We heard it from Roy blunt who was heading up negotiations on behalf of House Republicans, who we all are keeping our eye on.
He said that he was expecting a vote. And just to be clear, Heidi, Nancy Pelosi has made it clear she's not going to put this bill on the floor unless they have the votes this time. Obviously, it would be tremendously embarrassing for them to basically have a repeat of Monday.
COLLINS: Yes -- but we heard that on Monday, too, when it happened, that they really were not going to put this before the House until they felt like they had the votes. So this time around, we hear about growing support.
Does that mean that it will pass? $64,000 question for you.
KEILAR: That is the huge question, right?
COLLINS: Yes.
KEILAR: And that's the thing. We're not getting this definitive yes or no answer from House Republican or Democratic leadership. It's very possible, you know, that -- and probable that arm twisting is going to be going to the last minute on this.
And they still have time this morning ahead of the vote to do that. So the House, though I should point out, under a whole lot of pressure to push this through, some calls coming in from constituents now in favor...
COLLINS: You can see Nancy Pelosi coming in right now, too.
KEILAR: Yes, you see things...
COLLINS: Brianna, I'm sorry.
KEILAR: You see things picking up here. House Speaker Nancy Pelosi coming in.
A lot of arm twisting from House Republican leadership trying to get those rank and file House Republicans members on board. President Bush has been calling members over here. There's also a lot of pressure from governors and the U.S. Chamber of Commerce and other groups.
So under a tremendous amount of pressure, but really what we're looking for, Heidi, is when this bill goes to the floor, because House Speaker Nancy Pelosi and other Democratic leaderships have made it clear that is a sign that they believe they have the votes, but to be honest, until this thing -- you hear the gavel hit, you're really not going to know exactly the answer to that.
We're really going to have to wait until was see the vote.
COLLINS: Very true. And, obviously, the chaplain there giving the prayer for the opening of the session. So we'll get off that chopper now.
But Brianna Keilar, we sure do appreciate that. We will check back in with you just as -- soon as you learn anything. Just to remind you of what this federal bailout is all about. It would allow the treasury to buy up to $700 billion of bad assets, mostly mortgages, from banks so that they can begin lending again. And it sets up two oversight committees.
The Senate version temporarily raises the FDIC insurance cap -- you remember this -- to $250,000. It had been $100,000. It also adds $110 billion in tax breaks.
Monday's initial rejection of the bill sent stocks tumbling. No one can forget that. They were down again yesterday over concern the House wouldn't pass this bill either.
Overseas, the same concerns, the same reaction. For the most part, Asian and Pacific stock markets closed lower today. Taiwan, the only one posting a gain.
While lawmakers debate, another worrisome economic report from the government.
We want to go to Allan Chernoff now in New York for the very latest on this.
Allan, we're talking about jobs here.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Yes, Heidi, why don't we start with the good news?
COLLINS: OK.
CHERNOFF: Unemployment remains steady at 6.1 percent. That's it for the good news. Here's the bad news, OK? Payrolls down by 159,000 in the latest month. That is far worse than Wall Street expected. And, unfortunately, the news is likely to continue to deteriorate as the months go on in this year.
So far this year, we have lost thousands -- hundreds and hundreds of thousands of jobs. The past 12 months, we've lost 2.2 million jobs. And if you look inside of the report, it is also very troubling.
Job losses, not only in construction and manufacturing, and we knew that was going to happen, but services suffering a major hit. That's a real worrisome trend.
And also, Heidi, the news is even worse than what we see, that decline of 159,000, because the number of part-time jobs is way up. That tells us that a lot of people are just getting part-time work when they want full-time work.
The employment situation is bad and it is likely to get worse, economists predict. Heidi?
COLLINS: We should also talk, Allan, about this new bank deal, another bank deal. A little bit of competition going on here. Who's got the most money to offer, I guess? CHERNOFF: This is -- this is actually a very positive thing we've got going on here.
COLLINS: Yes.
CHERNOFF: That a bank was willing to step up. Wells Fargo has agreed to buy all of Wachovia. Remember, Citigroup had a deal to buy just the banking portion of Wachovia, and they were going to get some help from the FDIC to cover some losses.
Well, here we have a deal with Wells Fargo stepping in, buying Wachovia at yesterday's closing price. It's worth $7 a share, about $15 billion. And they're saying, also, that this would add to the company's earnings after a full year.
So that's in the first year of operations. So that's also very positive. The negative aspect of this, they're saying that the cost of the integration of the merger will be $10 billion. Heidi, that will include -- you better believe it -- plenty of, yes, layoffs, which will add to that unemployment situation.
COLLINS: Yes. OK, I fear -- not fear, but I'm thinking that we're going to see more and more competition like this, though, that could be a healthy thing. Just have to see how it all plays out.
COLLINS: It's a good sign for the banking industry and it means taxpayers will not be on the hook for this deal. That's a positive.
COLLINS: Everybody likes the sound of that.
All right, Allan Chernoff, sure do appreciate that, live from New York this morning.
I just want to let you know we are watching to see how all of this -- the bailout, the jobless numbers, the Wachovia deal -- plays on Wall Street. So the opening bell going to be happening in about 25 minutes from now. We, of course, will be watching and check in with Susan Lisovicz for that.
Meanwhile, California governor Arnold Schwarzenegger giving the federal government a major heads up that his state may need a multibillion dollar shot in the arm.
In a letter to the U.S. Treasury secretary, Schwarzenegger warns if the country's credit crunch does not ease up, California may have to turn to the Feds for a $7 billion emergency loan.
The governor says the cash would be needed to continue day-to-day operations, pay teachers and police and fund state services.
The much-anticipated vice presidential debate. The candidates took center stage all by themselves last night, facing off for their one and only debate. We'll take a look at how they did in just a moment.
But first, here's how each tried to reach out to the American people while talking about our current financial crisis.
(BEGIN VIDEO CLIP)
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: All you've got to do is go down Union Street with me in Wilmington and go to Katie's Restaurant or walk into Home Depot with me where I spend a lot of time, and you ask anybody in there whether or not the economic and foreign policy this administration has made them better off in the last eight years.
And then ask them whether there's a single major initiative that John McCain differs with the president on -- on taxes, on Iraq, on Afghanistan, on the whole question of how to help education, on the dealing with health care.
Look, the people in my neighborhood, they get it. They get it. And they know they've been getting the short end of the stick.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: There was greed and there is corruption on Wall Street. And we need to stop that. Again, John McCain and I, that commitment that we have made and we're going to follow through on that, getting rid of that corruption.
One thing that Americans do at this time, also, though is, let's commit ourselves, just everyday American people, Joe six pack, hockey moms across the nation. I think we need to band together and say never again, never will we be exploited and taken advantage of -- again by those who are managing our money and loaning us these dollars.
(END VIDEO CLIP)
COLLINS: CNN's Dana Bash is joining us now live from St. Louis this morning on the day after.
So, Dana, you've been on the campaign trail with John McCain and Sarah Palin. How's everybody say she did last night?
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, I don't think you're going to be in shock and you're going to fall off your chair, Heidi, when you hear that the McCain campaign say that they -- say that they think that she did pretty well, in fact, very well.
That is sort of the word coming out of the spin room and the word, frankly, that is coming not just from the McCain campaign, but from conservatives who have been very, very worried.
I mean, I -- my BlackBerry last night was buzzing from people I've been in touch around the country who, obviously -- on the Republican side -- want John McCain to win. They were initially very, very happy with Sarah Palin and that pick, but because of the series of interviews we have been talking about where she simply did not do well, they have been -- become worried that she had been a drag on the ticket.
I think the overall consensus in a number of Republicans I have talked to is that what she did was she basically stopped the bleeding in terms of how she -- how her presence on the ticket is affecting the ticket.
You know, many people -- Republicans I've talked to -- like the fact that she looked into the camera almost the entire time, connected with the American people.
But look -- I mean, it's hard to, you know, say with a straight face that she's answered the questions the way Joe Biden answered them. She simply didn't. But what she did was she developed in this debate prep that she had been having, over the past several days -- or leading up to this debate, she developed a tactic and how to basically shift away from answering a question that she wasn't ready to answer.
And that was basically clear on a number of fronts, on a number of issues. Gwen Ifill asked her about, you know, X, and she would say, hold on a second, and then she would pivot to Y.
Now Joe Biden did that a little bit, too...
COLLINS: Yes.
BASH: ... but Sarah Palin did that a lot more.
COLLINS: Well -- and here's the question -- you know Palin prepared so much. You say that, you know, she's held her own, a lot of people would agree with that, some wouldn't.
But does this mean now, after last night's debate, that the press will loosen up on her?
BASH: Well, I think the question is whether or not she's going to talk to the press more. You know? I mean that's -- that is going to be a big question. I think, you know, part of the tension, if you will, has been that those of us following her, those of us covering her have really not gotten near her at all to be able to interact with her.
What they say, what they said last night inside the McCain campaign is that she will be more out there, because, you know, one thing that many of us standing and talking to her advisers last night, and his -- McCain's advisers last night said if -- you know if you feel so comfortable and confident with how she did, why are you keeping her away from us?
They say that that's going to change a little bit. We'll believe it when we see it, Heidi.
COLLINS: Dana bash, sure do appreciate it.
So how are voters reacting to last night's debate? We're going to be showing you some brand new post-debate poll numbers coming up at the bottom of the hour. So watch for that.
We do want to know what you think. Yesterday we asked you if you thought this debate would affect the November election. We got a whole lot of responses on that. But now we want to know, you all watched the debate right here on CNN, I'm sure, last night so we want to follow up.
After seeing last night's debate, do you think it will affect the November election? Maybe your opinion has changed after you saw it, maybe it hasn't. Send us your e-mails at CNNnewsroom@CNN.com. Sorry, CNNnewsroom@CNN.com. We're going to read some of them a little bit later right here on the show.
Showdown done. So now we're doing some Friday morning quarterbacking as we do. The vice presidential debate, experts have their say.
(COMMERCIAL BREAK)
COLLINS: Supporters have been working the halls. Do they have the votes to bring it to the floor? Bailout bill back in the House. We are watching closely.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
PALIN: People aren't looking for more of the same. They are looking for change and John McCain has been the consummate maverick in the Senate over all these years.
BIDEN: Can I respond to that? Look, the maverick -- let's talk about the maverick John McCain is. Again, I love him, he's been a maverick on some issues, but he has been no maverick on the things that matter to people's lives.
(END VIDEO CLIP)
COLLINS: Both of the VP candidates played the expectations game leading up to last night's debate. So how did they do?
Joining us from St. Louis this morning is "TIME" magazine's senior political analysis, Mark Halperin. Hi there, Mark. And Jonathan Martin...
MARK HALPERIN, TIME MAGAZINE: Heidi, hi.
COLLINS: ... from Politico.com. Hello to you, as well, Jonathan.
JONATHAN MARTIN, POLITICO.COM: Good morning, Heidi.
COLLINS: OK. So lots to talk about here, because there was great anticipation for this debate. We have said that we really expected a lot more people to be watching the vice presidential debate instead of the presidential debate. So very interesting the morning after.
In fact, the headline, Jonathan, your story today in "Politico" says this, "Campaign Trajectory Remains Unchanged." OK? Is this a big flat line?
MARTIN: Heidi, I think if you were tuning in like a NASCAR fan hoping to see a big pileup, you were probably disappointed last night. Both Joe Biden and Sarah Palin came out, didn't make any gaffes, there were no sort of YouTube moments that we're going to see on CNN here in the days ahead.
And I think for both campaigns, they breathed a sigh of relief because of that. But, especially, Heidi, because the McCain campaign, going into last night, was very nervous about Palin's performance.
She didn't have a spectacular night. She was sufficient, perhaps, but that was good enough for a McCain team that just wanted to stop the bleeding from that Katie Couric long interview.
COLLINS: And by the way, we've heard your NASCAR analysis on many other networks across the way there.
So I want to ask you, thought, Mark...
MARTIN: It's been stolen.
COLLINS: It's been stolen many times.
Mark, what were your impressions?
HALPERIN: Well, Heidi, if you come off the set after -- during your anchoring today and someone said, you did sufficient, you probably wouldn't be that happy. But in this case Sarah Palin, I think probably...
COLLINS: Do no harm. Do no harm.
HALPERIN: That's right. Look, I -- try not to evaluate these debates based on expectations. I think that does the public a disservice, but I think it was inevitable in this case because there was so much expectation and curiosity about how Sarah Palin would do.
I think the poll that CNN did and some of the other polls that were done last night showed that the public thought Joe Biden won. I think on the stage, he did better. He did benefit somewhat, at least from his greater experience.
But I think she did, the other thing that I look to evaluate when I evaluate these debates on Time.com, which is how did she do in terms of helping McCain's chances of winning? And I think she helped there by becoming less of a story.
I suspect the late-night comics might not leave her alone completely, but she won't be as big a deal in being made fun of and being a national joke. That gives McCain a chance going forward now to try to make his case, which is what he needs to do, because he is still behind, despite what happened last night.
COLLINS: Yes, quickly, in fact, what you say on the page for "TIME" magazine, no big moments, no news, little to spoof about Palin, no major Biden gaffes, because, obviously, we even had a piece that we ran earlier today with a gaffometer -- gaffe-o-meter on it, so people were really watching out for that.
But I do have to ask. I mean this was a vice presidential debate. And history has shown, has it not, that usually when we're talking about going on to Election Day for the president, people don't pick on a vice president anyway.
Go ahead, Jonathan.
MARTIN: Yes, I think you're right about that -- you know, I think you're right about that. Exactly, and the fact is, Sarah Palin has an outsider's role as McCain's number two, when you do look at American history.
But the fact is, given that there was no major news coming out of last night, I think Mark's right. This campaign goes back to being about Barack Obama and John McCain. Sarah Palin's still going to draw huge crowds. She'll still be a polarizing figure, a sort of pop culture sensation, if you will.
But the fact is, for the next 31 days, the public will be largely focused on what Barack Obama and John McCain are saying, Heidi.
COLLINS: All right, so, Mark, what happens next? What is the next focus for the campaigns overall? Clearly, the next debate, correct?
HALPERIN: Well -- well, no, I think that what goes on in the House of Representatives is a big deal. John McCain needs this crisis resolved. He tried to be aggressive, play a role in arguing that he could help settle the problem in Washington.
He didn't necessarily do that. I don't think you could argue he did it in a way that inspired tons of confidence. He's got to hope the crisis, the financial crisis is put aside and then he does have to have a strong debate performance next Tuesday in Nashville and the following week in New York.
But he also has to find a way to argue that he's still in this race. All the polls, the poll that "TIME" did with CNN in some key states this week, the national polls, other key state polls show McCain is in a lot of trouble.
It's a reality. He can still win, but he needs to show forward movement and he needs to start driving a message and he can't just be playing defense about the economy and about Sarah Palin.
COLLINS: Yes, and quickly, Jonathan, as we have said, you know, both senators already did cast their vote on this bailout plan, so moving forward to actual action they can take, what would it be?
MARTIN: Well, they need to get this deal out of the House today. That will give John McCain some political oxygen to fundamentally drive a message, hopefully stabilize, not just the market, but also his campaign. But, keep in mind, the worst jobs report in five years coming out today with no major national security events. This is going to be, Heidi, an economic dominating campaign for the next month, and that's going to be a challenge for John McCain, I think.
COLLINS: All right, to the both of you guys, appreciate your time this morning.
Mark Halperin from "TIME" magazine and Jonathan Martin from Politico.com - thanks, guys.
MARTIN: Thank you.
COLLINS: The one and only vice presidential debate is now history. So we can look forward to round two for the top of the ticket. Barack Obama, John McCain, facing off for their second presidential debate.
It will happen Tuesday night, Nashville, Tennessee, and you can see it right here on CNN at 9:00 p.m. Eastern. And make sure you join the best political team on television for analysis before and after that debate.
Drivers pumped up. Gas prices where they haven't been for six months. And one place where they're really, really low.
(COMMERCIAL BREAK)
ANNOUNCER: Breaking news, revealing developments, see for yourself in the CNN NEWSROOM.
COLLINS: Quickly, want to show you this live picture of Capitol Hill, because we are understanding that the process has begun. And the particular process right now, just to give you an idea of what we are looking for here, this is the vote on the rules of the debate.
It will basically set up how the game is played throughout the entire morning. So obviously, you've got to know what rules you're playing by before you can go out there and play.
So you can think of it as a key test vote, the House Rules Committee chairman there speaking.
So we will continue to watch this. And then after that is when the debate will begin and hopefully there will be a vote that we can report to you.
Again, all eyes on Capitol Hill this morning.
Gas prices dropping again. AAA reports the average cost of a gallon of unleaded gas fell more than 2 cents today to $3.57. That is, in fact, the lowest it's been since April and the 16th consecutive price drop.
Drivers in Chesterfield, Virginia, getting even cheaper gas than that. Yesterday a price war between three stations pushed prices down lower and lower, finally bottoming out at $3.19 a gallon.
(BEGIN VIDEO CLIP)
ANNMARIE ROBERTO, DRIVER: I look, I couldn't believe it.
UNIDENTIFIED REPORTER: Did you think it was a mistake?
ROBERTO: I did. I was like $3.19? Is that true?
(END VIDEO CLIP)
COLLINS: One gas station ran out of the cheap gas -- shock -- making lines at the other stations even longer, but consumers thrilled at getting a bargain didn't mind the wait.
Wall Street about to open. Investors have a whole lot to chew on today, big bank deal, jobless numbers, and, of course, the bailout plan back in the House.
Opening bell coming your way, next.
(COMMERCIAL BREAK)
COLLINS: Some are saying one was folksy and one was matter of fact, but did the vice presidential candidates change voters' minds with what they said?
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: There is a barrage of news coming out of Wall Street today. Another banking deal, the latest numbers on the labor market, and of course, don't forget, the House vote on the bailout bill.
Susan Lisovicz is at the New York Stock Exchange now with a look at how all of this is likely to play out on Wall Street today.
Hi, there, Susan. We know how it ended up yesterday, down triple digits.
SUSAN LISOVICZ CNN CORRESPONDENT: Oh, yes, and then Monday and Tuesday -- Wednesday we had a respite, right, in the middle of the week, Heidi.
When we started the trading week with a House vote, that prompted Monday's record-selling -- sell-off and we may end the trading week with a House vote. We already know what a rejection will do to market sentiments. Even a delay going to the weekend may not be received anymore favorably.
That's because we continue to get information on the scope of an economy going in reverse. An hour ago, the Labor Department said employers shed a whopping 159,000 jobs and puts temper much worse than the consensus. The U.S. economy, the biggest economy in the world, has now lost 769,000 jobs this year. The unemployment rate holds steady at 6.1 percent. But we are expecting some buying at the open because of an unexpected deal in the financial sector.
Wachovia walking away from its tentative deal with Citigroup. Instead, Wachovia says it will be bought by Wells Fargo at a much higher price, $15 billion. That compares to the $2 billion that Citi offered just for banking regulations. And hey, here's another headline. Regulators are also cheering this buyout, because unlike the Citi deal, it will require no financial assistance from the government. It's the private sector again. Wachovia shares were soaring nearly 80 percent. Let's see if I can get Wachovia shares right now. Yes, 78 percent at the open. Wells Fargo, meanwhile, is up 8 percent.
And finally, speaking of government intervention, AIG says it will sell a number of its business units. It's already been contacted by several suitors. The insurance giant of course had teetered on the edge of failure before the government swooped in with an $85 billion emergency loan. AIG had drown $61 billion from its line of credit at the end of last month. AIG shares are up 10 percent. And we've got a rally in the first minute of trading, Heidi. The Dow up 82 points with three quarters of percent. The Nasdaq is up 1-2/3 and we're waiting on Washington once again.
HEIDI COLLINS, CNN ANCHOR: Yes, yet again. All right, Susan, we are all waiting. And we'll check back with you a little bit later on. Thanks.
LISOVICZ: Count on it.
COLLINS: Investors of course keeping one eye on Washington. House members are set to revote on a rescue plan for Wall Street as we have said here this morning. And when they rejected the original $700 billion on Monday, the Senate revised it. The version it passed then temporarily raises now the FDIC insurance cap to $250,000 and adds $110 billion in tax breaks. Just to remind you what they are voting on, or hopefully will be voting on today.
The crisis in the financial markets taking a toll on Switzerland's biggest bank. UBS says it's cutting 2,000 jobs at its troubled investment banking unit. A move it says will strengthen its position in an unstable market place. Most of the job losses will be in the United States and Britain.
The country's financial crisis hitting the auto history particularly hard. Now that the free flow of credit is down to a snail's pace, people are not buying or selling nearly as many cars. A fact that is painfully obvious at the Paris auto show. CNN's Jim Boulden is there.
So Jim, are you getting a sense of the economic down turn there, and why do we care in America about what's happening in Paris?
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: Absolutely, Heidi. You know, it's all doom and gloom here. Don't forget, General Motors and Ford make a heck of a lot of money overseas, especially here in Europe. This is a very, very important part of their business. And so while the U.S. is in the dumps, they are counting on emerging markets and they're counting on the European markets to help them along.
The problem is, that this has become a global financial crisis, hasn't it? And that means it's starting to hit them in these other markets as well. And that's why they're looking at these kind of European-inspired small cars full of features like this, the Ford car, and trying to get these kind of small cars into the American market. Not sure this one is going to go, but some of the others are going to be in American -- in some showrooms in a few years' time.
The thought is Americans of course now want smaller cars. They want high fuel efficient cars, and these American companies already make them. It's just they make them for the Europeans and the Asians. So, they're going to bring to us desires, they're going to bring those designs, an inspired designs to the U.S. market and hope, just hope to get Americans back into the showrooms. And they would do it. But these aren't going to be cheaply made, they're not going to be low priced. They think Americans will pay more for a lot of features, but they will be of course small and very fuel efficient.
COLLINS: OK, understood. Jim Boulden, sure do appreciate that, coming to us from Paris this morning.
Thank you, Jim.
All your financial news as it happens just a click away at CNNMoney.com. Go ahead and check that site out. You might have a lot of your questions answered there.
The presidential candidates trying to sway voters today in two key states. Barack Obama is in Pennsylvania for a rally that will happen this morning. And the latest poll of polls there show Obama widening his lead by ten points. Senator McCain holding a town hall in Colorado where both candidates are running neck and neck. We'll bring those rallies to you when they happen.
No knockout punch, that's a lot of people are saying, but a flurry of jabs and hooks in last night's vice presidential debate.
CNN's Susan Roesgen has the highlights from St. Louis.
(BEGIN VIDEOTAPE)
SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): It started with a handshake and ended with fundamental differences about how this country should be run. Senator Joe Biden went through the issues in a matter-of-fact way, while Governor Sarah Palin stuck to her folksy style.
PALIN: Darn right we need tax relief for Americans, so that jobs can be created here. Now, Barack Obama and Senator Biden also voted for the largest tax increases in U.S. history. Barack Obama even supported increasing taxes as late as last year.
BIDEN: The charge is absolutely not true. Barack Obama did not vote to raise taxes. The vote she's referring to, John McCain voted the exact same way. It was a budget procedural vote. John McCain voted the same way; it did not raise taxes.
ROESGEN: They also disagreed on foreign policy.
PALIN: Your plan is a white flag of surrender in Iraq. And that is not what our troops need to hear today, that's for sure. And it's not what our nation needs to be able to count on.
BIDEN: If we don't go the extra mile in diplomacy, what makes you think the allies are going to sit with us? And last point I'll make, John McCain said as recently as a couple of weeks ago, he wouldn't even sit down with the government of Spain -- a NATO ally that has troops in Afghanistan with us now. I find that incredible.
ROESGEN: Whichever candidate you support, there were plenty of points scored by both. The true win will not be known until November.
(on camera): And in fact, I talked to about a dozen people as they left the debate. They all said they enjoyed it, but not a single person said that his vote had been changed.
In St. Louis, I'm Susan Roesgen.
(END VIDEOTAPE)
COLLINS: That's what they said. Well, how did it play for everyday Americans watching at home? We heard some of that in Susan Roesgen's piece there. But we do have some new numbers to share with you now this morning. For that, let's bring in CNN deputy political director Paul Steinhauser who is still in St. Louis this morning.
OK, Paul, according to these numbers now, who did a better job getting their message across?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, well, we asked that. CNN and the Opinion Research Corporation, we polled debate watchers, not just all Americans, but people who specifically watched the debate. And that's the most important question, I guess. Who do you think did a better job? Take a look at these numbers. 51 percent, Joe Biden. 36 percent, Sarah Palin. So you've got a 15- point advantage there Biden over Palin.
People are asking me, too, who was watching in this poll? The party breakdown was interesting. It was pretty close to what America is right now. 37 percent of our debate watchers that we polled were Democrats, 31 percent independents, and 31 percent Republicans, Heidi.
COLLINS: OK. Well then, what about the qualities needed to be commander-in-chief? I know that was one of the questions in the poll, too.
STEINHAUSER: Yes. And that is such an important question, because that is one of the major responsibilities. Remember the most important responsibility of a vice president, if something happens to the president, they would take over as commander-in-chief. So, we asked that. And let's take a look at Sarah Palin first. Her numbers first because there's a lot of question marks about her.
Before the debate started, 42 percent of those we polled said she's qualified to be president if need be. Those numbers only went up four points to 46 percent after the debate was over. So not much of a difference, and still a lot of doubt among debate watchers we polled as to whether she could be commander-in-chief.
Take a look at Joe Biden's numbers, and it's a very different story. Very, very different story. 78 percent of those we polled before the debate said he was qualified to be president and that pumped up nine points to 87 percent. But that has not been a question mark with Joe Biden like it has been with Sarah Palin, Heidi.
COLLINS: All right. CNN's Paul Steinhauser, still there the morning after the vice presidential debate in St. Louis.
Thank you, Paul.
We want to know what you think, though. Yesterday we asked you if you thought the debate would impact the actual presidential vote. Now we want to know if your opinion changed. So here's the question, "After seeing last night's debate, do you think it will affect the November election." Send us your e-mails, cnnnewsroom@cnn.com.
Of course, we're going to be reading some of them a little bit later right here on the show. You rate the debate. CNN's iReporters give us their views on the vice presidential candidates.
(COMMERCIAL BREAK)
COLLINS: Like a lot of you, our CNN iReporters watch the vice presidential debate, so here now is some of what they thought.
(BEGIN VIDEO CLIP)
JASON DINANT, IREPORTER: In my opinion, Joe Biden won. You know, in part, I wasn't sure if Tina Fey had shown up, or if it really was Sarah Palin. You know, she did, after all -- poof. She gave a shout-out, really, who gives a shout-out during the middle of a very important debate? It just kind of seemed weird and awkward to me.
KATY BROWN, IREPORTER: I told you that Sarah Palin would come full force and she did just that. She stood her ground.
KEVIN NEUGEBAUER, IREPORTER: I really think Sarah Palin did a good job, and I think the Democrats are probably a little disappointed because they thought that, you know, she was going to get blown away.
MICHAEL ALLEN, IREPORTER: I felt Biden was genuine and real and answered questions clearly and concisely, and made me feel as though he would have no problem handling this country.
(END VIDEO CLIP)
COLLINS: You, too, can have your say about this election season as a CNN iReporter. Just log on to cnn.com/ireport and let us know what you're thinking.
Many around the world watched last night's debate between Joe Biden and Sarah Palin. Our international correspondents are checking out reaction from Asia to the Middle East. We begin in Pakistan.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP)
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT (on camera): I'm Reza Sayah in Islamabad, Pakistan. Ask the average Pakistani if they know about vice presidential candidate Sarah Palin, and those who do will tell you, oh, yes, that's the woman our president, Asif Ali- Zardari called gorgeous on a recent trip to New York.
PALIN: You are so nice. Thank you. I appreciate you. Thank you.
ASIF ALI-ZARDARI, PRESIDENT OF PAKISTAN: Now I know why the whole of America is crazy about you.
SAYAH: It wasn't the proudest moment for Pakistanis, who were just days removed from one of the deadliest suicide attacks they'd ever seen.
UNIDENTIFIED MALE: We really don't like her.
UNIDENTIFIED MALE: Her and Pakistan people took that very negative.
SAYAH (on camera): The incident did raise Sarah Palin's profile among Pakistanis, but neither Palin or Senator Biden is getting much support from the average Pakistani. A recent poll shows nearly 60 percent of Pakistanis don't care who wins in November.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
CAL PERRY, CNN INTERNATIONAL CORRESPONDENT (on camera): I'm Cal Perry in Baghdad where this week dozens of people have been killed in multiple explosions across the country, which is why when you talk to people here, they tell you they're not paying attention to the vice presidential debate and they're not paying attention to the U.S. economy. They want security. And they want better services, better water, a better health care system, and more electricity.
Now, some in the Iraqi government have said they are concerned that there could be a knock on effect from the struggling U.S. economy. After all, the United States is spending roughly $10 billion a month here in Iraq.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (on camera): I'm Kyung Lah in the heart of Tokyo's fashionable Ginza district where anybody who is in the know knows Sarah Palin, but not for the vice presidential debate or her policies, it's for her sense of style.
Despite the financial crisis in the U.S. and its connection to Japan's economy, discussion about the vice presidential debate on television and in the blogosphere has been remarkably shallow. The discussion here in Japan is about the fact that Sarah Palin wears glasses designed by a Japanese maker, and that people here think she has quite a good personality.
(END VIDEO CLIP)
(END VIDEOTAPE)
COLLINS: Barack Obama and John McCain face off for their second presidential debate now Tuesday night, Nashville, Tennessee. You can see it right here on CNN at 9:00 p.m. Eastern also. Make sure you join the Best Political Team on Television for analysis before and after the debate.
It's a bill to save America's financial system, so why does it include money to make wooden arrows?
(COMMERCIAL BREAK)
COLLINS: Something happened to the bailout bill between its rejection in the House and acceptance in the Senate. Add-ons, or as some would say, pass the pork.
Here's CNN's Brian Todd.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): The Democrat is certain how we got here.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: This financial crisis is a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years.
TODD: The Republican is certain none of that greed had better show up in the final bailout bill.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: It's completely unacceptable for any kind of earmarks to be included in this bill.
TODD: And yet this emergency legislation, counted on to help pull America out of its financial crisis is up to its ears in provisions that could be considered earmarks -- those unrelated, sometimes wasteful funding requests made by lawmakers, often for their home districts. In this case, according to Taxpayers for Common Sense, $100 million in tax breaks for car racing tracks and nearly $500 million in tax incentives for the movie and TV industry. Watchdog groups say it's hard to determine if the Senate's passage of this bailout was bought with earmarks.
STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: And I mean, clearly, you didn't need to have this package in there to make it happen. They could have gotten their majority without any of this stuff.
TODD: For instance, $2 million in tax breaks for the makers of wooden arrows for children. That provision was sponsored first by Oregon's Republican senator, Gordon Smith, and this year by his Democratic counterpart, Ron Wyden. It would be worth about $200,000 to an archery company in Oregon.
A Wyden aide tells us this isn't an earmark because Wyden didn't ask for it to be put in the bailout bill, which he voted against, and because it impacts businesses in several states, not targeted to just one.
That doesn't fly with Steve Ellis.
ELLIS: But the bottom line this is, is this is benefiting a very few manufacturers. And I think most of Americans who are concerned about either the bailout package or concerned about the economy are going to be wondering why a provision benefiting wooden arrow manufacturers is catching a ride on the package.
(END VIDEOTAPE)
COLLINS: So, how did all this porky get into a bill aimed at bailing out banks? Taxpayers for Common Sense tells us it was a calculated legislative tactic. These provisions were in a separate tax bill that stalled in Congress last month. Lawmaker rammed into this one because they knew there would be intense pressure of course to pass the bailout bill.
Rain in the northeast. Reynolds Wolf is tracking it all from the severe weather center. Raining in Washington, D.C., I hope not. What's it down there today?
(WEATHER REPORT)
COLLINS: O.J. Simpson again finds his fate in the hands of a jury. Deliberations begin in Las Vegas later today. Simpson is accused of robbing and kidnapping two sports memorabilia dealers. Simpson's lawyers say he was only trying to reclaim property that belongs to him.
Investigator say they have found a small amount of human remains in the wreckage of Steve Fossett's plane. Scattered pieces of the plane were found Wednesday near Mammoth Lakes, California. Fossett disappeared more than a year ago during a flight that took him over the Sierra Nevada. Official say it appears Fossett likely died when his plane crashed head on into the side of a mountain. Made in China, contaminated with melamine and recalls in America. White Rabbit creamy candy is being pulled off the shelves in cities across the U.S. It's sold mainly in Asian markets. Baby formula tainted with the chemical is believed responsible for making tens of thousands of Chinese infants sick.
It's a 38,000-ton museum, and it took a trip home by water.
(COMMERCIAL BREAK)
COLLINS: High seas standoff. A cargo ship still held by pirates with U.S. war ships nearby. What could the next move be?
(COMMERCIAL BREAK)
COLLINS: U.S. Nuclear Envoy Christopher Hill is back in Seoul, South Korea this morning. So far, he is not saying much about his two days of nuclear talks in North Korea. Hill has been trying to convince Pyongyang to resume dismantling its nuclear program. North Korea wants off Washington's terrorism blacklist.
Treasury on the high seas. The U.N. Security Council preparing a resolution calling military action against piracy off Africa's Coast. Somali pirates have been holding that high-jacked (INAUDIBLE) ship for nine days now. They're demanding a $20 million ransom and warning. They will fight back against any rescue attempt. A half dozen U.S. naval ships have the cargo ship surrounded.
More than 60 ships have been attacked off Somalia's Coast this year. David McKenzie looks at the impact of piracy on world shipping and global trade. He's got some exclusive video you'll see only on CNN.
(BEGIN VIDEOTAPE)
DAVID MCKENZIE, CNN CORRESPONDENT (voice-over): They ply their trade in small boats and depend on rusty weapons. In this exclusive footage shot by pirates and obtained by CNN from a third party, this group doesn't look like much, but pirates off the coast of Somalia have made these sea lanes some of the most dangerous in the world.
Researcher Roger Middleton produced a special paper on piracy for Chatham House, the respected British Think Tank. He says piracy costs are skyrocketing.
ROGER MIDDLETON, RESEARCHER, CHATHAM HOUSE: In the last few years we might have expected a ransom payment to range from a $10,000 to $200,000, maybe $500,000 at the outside. This year the average payment is at least $1.5 million.
MCKENZIE: Pirates get their lucrative loot here in the Gulf of Adam. Each year 16,000 ships pass through this insecure funnel bringing crucial shipments of oil from the Middle East and goods to and from the rest of the world. The ships have become easy pickings with piracy doubling this year, which means that each year the shipping business is setback by up to $30 million because of ransoms. On top of that, insurance costs for passage through the Gulf of Adam have increased tenfold. So shipping companies are even considering skipping these dangerous waters and heading around the Cape of Good Hope, adding further time and costs.
MIDDLETON: They're seriously considering diverting. And that would add considerably to the prices of manufactured goods from Asia and also from oil and gas from the Middle East.
MCKENZIE: Somali pirates don't just slow commerce, they even put humanitarian vessels in jeopardy, high-jacking food and supplies for their desperate country. The Chatham House Paper calls for international cooperation to end piracy, and several nations have sent war ships to the area. But until the waters of Somalia are consistently policed, cargo ships will be prey for the pirates.
David McKenzie, CNN, Nairobi.
(END VIDEOTAPE)
COLLINS: Earlier this hour we asked you to weigh in on last night's vice presidential debate. We wanted to know if you thought it would affect the November elections. We want to read some of the responses now. This coming in to us from Robert. He said "the V.P. debate demonstrated that Biden is a statesman and Sarah Palin is for real. We all won." Then from Susan in Colorado, "ultimately, a debate cannot compete with the economy or even with the war."
Eddie in Chester, Virginia, "Yes, I think the debate will affect the election. Palin proved herself a valid candidate. I went into the debate last night undecided, and I'm still undecided, but my concern is not Palin anymore." Finally, Tim in California says this, "I think the debate will affect the election as it gave a critical insight to the vice presidential candidates, one of whom we hardly know. Sarah Palin did well, but it still showed Biden is more ready to take office if required.
So, we do want to hear from you. After seeing last night's debate, do you think it will affect the November election? That's the question. Go ahead and send those e-mails to cnnnewsroom@cnn.com.
Rejection, revision, reconsideration. Bailout bill, round three. House members talking about it right now. Will they be voting any time soon?
And speaking about talking and voting, running mates had their say last night. Will it change your choice next month?
Plus warrior returns home with quite a facelift. The intrepid's curator comes on board with us this Friday, October 3rd.
I'm Heidi Collins. You're in the CNN NEWSROOM.
