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Arm-Twisting on Capitol Hill; Who Won Biden-Palin Face-Off?; Obama, McCain Courting Votes in Key States

Aired October 03, 2008 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: Hello everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.
You are looking live now at the gears of government grinding and the heartbeat of capitalism. The weeklong drama over the financial bailout bill may finally end at this hour with a vote. It is $700 billion of taxpayer money, your money. The House said no Monday. Will Friday bring yes?

CNN's Brianna Keilar watching developments at Capitol Hill.

And there appears, Brianna, to be a lot of arm-twisting going on.

BRIANNA KEILAR, CNN CORRESPONDENT: Yes, and there's actually some movement that we can finally tell you about, Tony. But I have to caution you, you know, we're not going to know for sure exactly whether this bailout plan passes the House until the gavel goes down after a vote.

But at this point, the House continues to debate this bailout plan. And we've seen a whole lot of members, Republicans and Democrats, who voted no on Monday who have come to give a speech and say, today I'm going to vote yes.

We have counted actually 16 members. We've got at least 16 members who say they're switching from a "no" vote to a "yes" vote today.

As you'll recall, the House was 12 votes short on Monday when the bailout plan failed. So is that enough? Yes, provided, if, and this is a big "if," if the House manages not to lose many of the people who voted yes on Monday who could, perhaps, vote no today. So that's a big "if," a caveat I want to caution you on there.

Now, one of the people who said they voted no on Monday, I'm going to vote yes today, Congressman John Lewis, a Democrat from Georgia. Listen to what he said on the floor a short time ago.

(BEGIN VIDEO CLIP)

REP. JOHN LEWIS (D), GEORGIA: I've decided that the cause of doing nothing is greater than the cause of doing something. The fear that is gripping Wall Street has the power to shut down Main Street. We cannot and we must not allow this to happen. The people are afraid.

(END VIDEO CLIP)

KEILAR: Now, Congressman Lewis is a respected Democrat. He's a member -- actually a leader in the Congressional Black Caucus. And there were quite a few holdout members in the Congressional Black Caucus on Monday. A few of them, at least, have said they're going to be voting yes today. That's why it's significant to listen to what he said.

So again, Tony, as you said, it's a possibility there could be a vote here in the next hour, but at the same time, that's not necessarily the case, because as this debate continues and it wraps up here shortly, it doesn't mean the vote has to go right after the debate wraps up. They've got all day, and it could be what we've been told was midday, Tony, and we're not being told a hard and fast time. We're still not being told a hard and fast time.

HARRIS: Oh, it will happen in the next hour or so, it seems to me, Brianna. It's Friday.

I have to ask you -- I can't let you go without asking this next question. If you would, take a moment and remind us how this bill is different from the one that was defeated on Monday.

KEILAR: Yes, because the Senate passed sort of a redone bill that they'd added some things to, and the House is going to be taking -- this bill they're taking up is just the Senate bill. A couple things added on -- an increase in the FDIC insurance cap. So, instead of $100,000 in your bank account being insured, it would be $250,000. And then the other thing is $110 billion in tax breaks, some for renewable energy, wind and solar power, some for research and development for businesses, and including tax breaks that some people consider pork -- Tony.

HARRIS: OK. Brianna Keilar on Capitol Hill for us.

Brianna, appreciate it. Thank you.

You know, the financial crisis whipping up a bit of soap opera- like drama between banks today. Wells Fargo announcing it will buy Wachovia in a $15 billion deal. The trouble is Citi agreed to buy Wachovia on Monday. A little while ago, Citi put out a statement telling Wells Fargo in no uncertain terms to step back.

Stay tuned.

Let's talk America's money crisis with Senior Business Correspondent Ali Velshi. Ali is at the Chicago Board of Trade for us.

Ali, it is great to talk to you, as always.

First of all, we're hearing from Brianna that there is some progress being made on the possibly passing that bailout package. Remind us again, your take on this and why you feel this is so important. ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Because credit has frozen up all around the world, and that trickles down to the company that pays your payroll, that trickles down to your ability to get a loan, that trickles down to the ability of the person who might be wanting to buy your house to get a loan. So the fact is, as much as it has been characterized by some people as a Wall Street bailout, our credit system is so intricate and we're so intertied to it that it matters to every single person.

Now, that hope that there might be a deal that Brianna was talking about is part of why we're seeing a more than 200-point gain on the New York Stock Exchange, even though we had the worst monthly job loss in five years today. More than 159,000 people lost their jobs, Tony, and that means that our average, our running total for the year, it means more than three-quarters of a million people have lost their jobs.

HARRIS: Yes.

VELSHI: That's people who can't get credit, that's people who don't pay taxes, that's people who don't buy things, that's people who might become a net cost to the system, that's people who might foreclose on their home. So this is important. Something has to be done to free up the credit crisis.

And why I'm here is because, if something gets done, this is one of the first places you'll see a reaction in terms of credit markets loosening up, as treasuries and government bonds are traded here.

HARRIS: Yes. Hey, you were talking about Main Street. We've been hearing a discussion about Main Street and how all of this impacts Main Street for the last week or so. You'll love this.

VELSHI: Yes.

HARRIS: We had a great discussion last hour with a couple of businesspeople, with businesses right there on Main Street. I want to play you a bit of sound from Monique Hayward. She owns a restaurant, actually a series, a string of restaurants, and she also runs a marketing business. I asked her how the nation's financial problems are impacting her business.

Have a listen, and then I'll have you respond to it.

VELSHI: Sure.

(BEGIN VIDEO CLIP)

MONIQUE HAYWARD, BUSINESSWOMAN: We are absolutely in the middle. We are suffering from the dual effect of the economy having an impact on consumers' confidence and spending and banks paralyzed with lending. And so, as you might imagine, if we are getting squeezed on both sides, where we don't have enough revenue coming in to cover our expenses, and we can't go to the bank to actually manage that through working capital with lines of credit and loans, that's a really terrible way to manage your business. (END VIDEO CLIP)

HARRIS: And, again, Ali, you said it, paralyzed in the credit markets. Can't get credit to move the business forward.

VELSHI: Yes. She stated that entirely perfectly.

Something like a restaurant or a hotel, or whatever the cases, are getting squeezed on both sides. Businesses need short-term credit to be able to operate, because they have to buy supplies and lay out money for food and things likes that that they don't always have the money on hand for. But the banks are becoming restrictive about that.

And then your customers are being restricted in their credit. Credit lines are being pulled down. They may be losing jobs. So you've got less revenue coming in. That combination is deadly for American's businesses, and that's part of the problem here -- Tony.

HARRIS: OK. So you're doing such a great job in telling the story. You're getting opportunities to tell the story in many different outlets.

VELSHI: Unfortunately, Tony, I've lost...

HARRIS: Take a look at Ali Velshi on Oprah Winfrey. The show airs around the country today.

(BEGIN VIDEO CLIP)

OPRAH WINFREY, TALK SHOW HOST: My friend Gail King on XM had interviewed Ali. He explained it to her so well, she could explain it to me. So I said...

This is the guy. This is the guy. Welcome, Ali.

VELSHI: Thanks, Oprah.

WINFREY: OK.

(APPLAUSE)

WINFREY: You get poked fun at -- I hear often you get poked fun at for your gloom and doom reports, but is it really as gloomy and doomy, as you said?

VELSHI: It's serious, Oprah, but the fact is, we'll get through this if we understand how it affects us and what we can do.

(END VIDEO CLIP)

HARRIS: Ali Velshi with Oprah Winfrey. On the big show. Boy. OK.

You know, you can follow all of this news on this crisis on Wall Street, the buyouts, the bailouts, falling oil prices or rising gas prices, all of it at CNNMoney.com with our money team, including Ali Velshi there. Get all the day's market news and numbers, plus expert analysis. You can log on now.

The day after a debate night and the showdown in St. Louis. So how did they do? Our poll gives the edge to Senator Joe Biden, but observers say Governor Sarah Palin held her own and exceeded expectations.

Senior Political Correspondent Candy Crowley has more on who won the face-off.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): Sarah Palin did not deliver perfection.

GWEN IFILL, MODERATOR: As vice president, there is nothing that you have promised as a candidate that you wouldn't take off the table because of this financial crisis we're in?

GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: There is not. And how long I have been at this, like five weeks? So there hasn't been a whole lot that I've promised.

CROWLEY: But neither did she implode, repeatedly touching base with her regular gal persona, here decrying Wall Street's meltdown.

PALIN: Let's commit ourselves, just every day American people, Joe six-pack, hockey moms across the nation, I think we need to band together and say never again.

CROWLEY: She was the newbie but she went toe to toe on climate change, economy and Iraq, with a 35-year Washington insider.

SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: Barack Obama has offered a clear plan. Shift responsibility to the Iraqis over the next 16 months, draw down our combat troops. Ironically, the same plan that Maliki, the prime minister of Iraq, and George Bush are now negotiating. The only odd man out here, only one left out is John McCain.

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.

CROWLEY: Eighty-four percent of debate watchers said Palin did better than expected. That's according to a snap poll from CNN and Opinion Research Corporation. But 51 percent said Joe Biden won the night. Polite and even warm toward Palin, Biden mostly debated the top of the McCain/Palin ticket.

BIDEN: I haven't heard how his policies can be different on Iran than George Bush's. I haven't heard how his policy is going to be different with Israel than George Bush's. I haven't heard how his policy in Afghanistan is going to be different than George Bush's.

CROWLEY: She answered some questions but not others. It may not have won her the night, but she did take control. PALIN: I may not answer the questions the way that either the moderator or you want to hear, but I'm going to talk straight to the American people.

CROWLEY: If nothing else, Palin seems to have quieted conservatives' growing concern she was not up to the job. The rest now is up to John McCain.

Candy Crowley, CNN, St. Louis.

(END VIDEOTAPE)

HARRIS: And back on the trail, the presidential candidates are courting voters in key states today.

CNN's Jim Acosta is covering the Obama/Biden campaign in Pennsylvania for us. And there she is, our Dana Bash, tracking the McCain/Palin campaign. Dana is in St. Louis, the scene of last night's VP debate.

Let's start with Jim Acosta in Abington, Pennsylvania, where Obama held a rally last hour.

And Jim, what is the Obama campaign saying about last night's debate, and what is the campaign pivoting to today?

JIM ACOSTA, CNN CORRESPONDENT: Tony, not a surprise here. They are pivoting away from that debate last night and to the economy.

And Barack Obama, who is working the rope line right now, working the crowd here, as he just wrapped up this event here in Abington, he made the case that he and Joe Biden are going to be much stronger on the economy in states like Pennsylvania, that are being hit hard by this financial crisis. And he took aim at Sarah Palin just a few moments ago during his remarks, saying that the governor of Alaska said during last night's debate that Barack Obama and Joe Biden would be job killers.

Barack Obama remarked that perhaps Governor Palin hasn't been watching what's unfolding on television, pointing out that those are pretty serious job numbers that came out this morning, 159,000 jobs lost in the last month alone, the highest number in five years. So Barack Obama, without making a direct comparison with the governor of Alaska, said he's pretty comfortable with his choice of a running mate.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I was so proud of Joe. You know, America, I think, saw clearly why I felt he'd be such a great vice president, especially during these difficult, challenging times. So we are very, very proud of Joe. He is going to be outstanding.

(END VIDEO CLIP) ACOSTA: And speaking of Joe Biden, he was not here in Abington today. He's over in Delaware, because his son, Beau Biden, who serves in the Delaware Army National Guard, is being deployed to Iraq.

He, like Sarah Palin and John McCain, all have children who have either served in Iraq or are currently going to be serving in Iraq. And so Joe Biden, as he talk about last night, in the last few moments of that debate, is heading off to Delaware to wish his son well overseas.

And, Tony, all you have to do is take a look at the latest CNN Poll of Polls in this state. In Pennsylvania, Barack Obama is now holding a 10-point lead.

They're not doing any touchdown dances over here with the Obama campaign. That's not their style. They definitely play it cooler than that, but they have to be hard heartened by those numbers. Tony, this is a state that was almost dead even just a couple of weeks ago.

HARRIS: That's true.

All right. Jim Acosta for us this morning.

Jim, appreciate it. Thank you.

Our Dana Bash, live from St. Louis with the latest on the McCain/Palin campaign.

And Dana, how much looking back to last night is going on?

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, certainly enough that the McCain and Palin campaign can sort of let their -- particularly the base in the party who really is, frankly, let's face it, most important here for John McCain, because it has been most important for John McCain with regard to how Sarah Palin plays -- they feel like they have done a good enough job, at least, to reassure the base that she still somebody they can rally around. But in terms of what Jim Acosta was talking about, and that terrible jobs report that came out this morning, that is one of the first things I got in my inbox from the John McCain campaign, talking about and acknowledging that jobs report, and making clear in this -- it was a written statement from John McCain, I'm sure we'll hear from him later in Colorado -- about the fact that they understand that this is just another piece of evidence of how bad it is for working men and women in this country.

So definitely, you know, last night was important. And it was most important, Tony, to sort of do no harm. They feel like they accomplished that.

But they understand inside the McCain campaign, this is not going to ride on whether or not Sarah Palin won or lost the debate with Joe Biden. It is very much looking like this campaign is going to ride on what happens with the economy, and most importantly how John McCain can use the next 30-plus days to communicate better on the economy, because every poll, as Jim was talking about, nationally and in battleground states shows that as this economic crisis has gotten worse, as we've gotten jobs reports like we got this morning, it's gotten much worse politically for John McCain.

HARRIS: Yes. All right.

Dana Bash for us in St. Louis.

Dana, appreciate it. Thank you.

And for all of the latest campaign news, check out our Political Ticker. Just log on to CNN.com/politics. It is your source for all things political.

So who made the best case for their team issue by issue? We break down last night's debate.

(COMMERCIAL BREAK)

HARRIS: OK. This is going to be fun.

Last night, Senator Biden and Governor Palin went at it. If you didn't watch the VP debate, not to worry. We have got two experts here to break it all down for you.

Not so much the zingers. I'm not that particularly interested in that. But the real issues. We're talking about the economy and Iraq.

Jeanne Cummings from Politico.com is back with us. And CNN Special Correspondent Frank Sesno, who covered the White House for many years.

Good to see you both again.

You watched. You were here with us yesterday, then you watched the debate. And you're back with us.

So here's what we're going to do. Let's start with the economy.

Gwen Ifill asked Governor Palin last night first who the candidates thought was at fault for the financial meltdown, greedy lenders or risk-taking homebuyers, and what they planned to do about it.

Let's listen to part of her answer.

(BEGIN VIDEO CLIP)

GOV. SARAH PALIN (R-AK), VICE PRESIDENTIAL CANDIDATE: 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.

We need to make sure that we demand from the federal government strict oversight of those entities in charge of our investments and our savings, and we need also to not get ourselves in debt. Let's do what our parents' told us before we probably even got that first credit card. Don't live outside of our means.

SEN. JOE BIDEN (D-DE), VICE PRESIDENTIAL CANDIDATE: Well, Gwen, a few years ago, Barack Obama warned about the subprime mortgage crisis. John McCain said shortly after that in December he was surprised there was a subprime mortgage problem. John McCain, while Barack Obama was warning about what we had to do, was literally giving an interview to "The Wall Street Journal" saying that, "I'm always for cutting regulations."

We let Wall Street run wild. John McCain -- and he's a good man, but John McCain thought that the answer is that tried and true Republican response, deregulate. Deregulate. So what you had is, you had overwhelming "deregulation." You had actually the belief that Wall Street could self-regulate itself.

(END VIDEO CLIP)

HARRIS: OK.

So, Jeanne and Frank, we wanted to give folks who maybe didn't get an opportunity to see the debate last night to get a flavor there for what the economy debate sounded like.

Now, let's sort of take the gloves off. And Jeanne, let me start with you. And let me have you give everyone your overall impression of the debate on that particular issue.

And Frank, jump in here. I'd love it if you two talked amongst yourselves for a while and I'll listen.

JEANNE CUMMINGS, POLITICO.COM: Well, I thought in that exchange it wasn't Governor Palin's best moment. I think that most Americans don't think this is their fault, and there was an element in that, that answer, where she was, on the one hand, saying you've been victims, and on the other hand, you need to buck it up.

And so I felt like it was a confusing message and one that I think the voters really weren't interested in. I don't think they think that this is their fault.

I thought Biden went for just a clean political hit against John McCain, and he delivered it pretty sharply. And so in that exchange, I thought Biden got something of an advantage.

In other answers, Governor Palin I thought did a better job of trying to lay some of these problems at the footsteps of Barack Obama, but not in that particular exchange.

HARRIS: OK.

FRANK SESNO, CNN SPECIAL CORRESPONDENT: All right. I'm going to jump in.

HARRIS: Yes.

SESNO: I don't agree. I don't see it quite the same way, just to make this interesting.

I think Palin connected with that. I think -- I'm not sure I liked the "Joe Six Pack" reference. And a lot of people I talk to actually find it a little condescending, including people who say, "I hang out with 'Joe Six Pack.'"

I'm not talking about the Washington East Coast set. I'm talking about people in the Midwest. But nonetheless, there was something real there, and there was also a reality check. That business about living beyond our means I think is part of the larger message, that we're in debt and we're in trouble for a bunch of reasons.

What she didn't say, though, was a lot of people are in debt and in trouble because they haven't been making the money. I mean, some people are in debt and trouble because they've been spending too much. Others are in debt and trouble because they haven't been making enough, which tracks back to a lot of what Joe Biden was saying, which then plays to his point about connecting with the larger narrative...

HARRIS: Got you.

SESNO: ... that these last several years haven't been good.

HARRIS: So Jeanne, go ahead.

CUMMINGS: Well, I agree with Frank that our own personal debt is a primary contributory to some of our problems right now. But I think if you ask voters, if you did a survey, is it your fault or Wall Street's, I think we know who's going to win there.

SESNO: But she said. But she said that. But she said that.

She said it's Wall Street's fault. I mean, again, she went first, in that exchange, anyway, and she was very clear and very direct. Biden came back, he was kind of somber and went into a history lesson. She went after Wall Street.

What she didn't say convincingly is just exactly how she'd connect the generalities, we can't let this happen again, with what they'd actually do about it.

HARRIS: Right. Hey Frank, let me ask you, on the general topic of the economy -- because we don't have enough time to go through the other positions taken by both of these candidates -- who do you believe fared better on this general question of the economy?

SESNO: I have to say that I think as you listened to the bulk of this thing in terms of what the issues are, how personal they're becoming, I give it to Biden.

HARRIS: And Jeanne?

CUMMINGS: I thought it was close. I thought Governor Palin did a really good job of trying to talk to the middle class as well. I think they both did well on that front.

HARRIS: OK. So let's move on to one other topic, I think we have got time to squeeze in here. Iraq.

The question was, what should the plan be for an exit strategy? And here's a bit of the conversation.

(BEGIN VIDEO CLIP)

PALIN: I know that the other ticket opposed the surge. In fact, even opposed funding for our troops in Iraq and Afghanistan. Barack Obama voted against funding troops there after promising that he would not do so.

And Senator Biden I respected you when you called him out on that. You said that his vote was political, and you said it would cost lives. And Barack Obama at first said he would not do that. He turned around under political pressure and he voted against funding the troops.

We do have a plan for withdrawal. We don't need early withdrawal out of Iraq. We cannot afford to lose there, or we're going to be no better off than the war in Afghanistan either.

We have got to win in Iraq. And with the surge that has worked, we're now down to pre-surge numbers in Iraq. That's where we can be.

We can start putting more troops in Afghanistan, as we also work with our NATO allies who are there strengthening us. And we need to grow our military. We cannot afford to lose against al Qaeda and the Shia extremists who are still there, still fighting us, but we're getting closer and closer to victory, and it would be a travesty if we quit now in Iraq.

IFILL: Senator?

BIDEN: Gwen, with all due respect, I didn't hear a plan. Barack Obama has offered a clear plan -- shift responsibility to the Iraqis over the next 16 months, draw down our combat troops. Ironically, the same plan that Maliki, the prime minister of Iraq, and George Bush are now negotiating.

The only odd man out here, only one left out, is John McCain. Number one.

Number two, with regard to Barack Obama not "funding the troops," John McCain voted the exact same way. John McCain voted against funding the troops, because the amendment he voted against had a timeline in it to draw down American troops. And John said, I'm not going to fund the troops if in fact there was a timeline.

Barack Obama and I agree full and completely on one thing -- you've got to have a timeline to draw down the troops and shift responsibility to the Iraqis.

(END VIDEO CLIP)

HARRIS: OK. And Frank, let me start with you this time. Who fared better on this point, Iraq? SESNO: That's a really hard one, I think, because I think Sarah Palin was very serious, very somber in the way she was addressing that, rather complete. She was going after Barack Obama. Barack Obama.

Barack Obama does have an issue with respect to what he said about the surge and where he's been on the funding. Biden clarified things over time in his -- tried to in his response, tried to put it in context. Palin used Biden's own words against him, as you heard it there.

Again, probably because of some of the context and in pointing out the distinctions with those votes and saying, well, McCain voted against it, too, very narrowly to Biden. But Palin was right there.

HARRIS: Jeanne?

CUMMINGS: Well, I will respectfully disagree with you this time, Frank. I think this was hands down Biden.

I thought her answer had too many elements in it. It was difficult to follow. It was not responsive to the question. And quite obviously so.

And so I think that Biden offered a much more clear response to the question and a coherent answer. And so I felt he broke through on that one.

SESNO: Can I jump back in here, Tony?

CUMMINGS: Yes.

HARRIS: Yes. Yes. Go ahead.

SESNO: I mean, I said "narrowly Biden" But I don't agree with you, Jeanne.

I think she laid it out very clearly. She said, look, you know -- I mean, she said, our plan is to stay until the job is done. We're getting closer. We're down to pre-surge levels of violence. Some of the troops have already been taken out. We've got to put them into Afghanistan, and Barack Obama has said that -- you know, has made his funding wobbly about this.

I don't see what's too much about that.

CUMMINGS: But, Frank, you just rattled off at least five different elements...

SESNO: Well, they're connected.

CUMMINGS: ... that were in a two-minute answer.

SESNO: But they're connected.

CUMMINGS: I don't think -- but they are. They are, we know that, but I don't think they were well connected in her answer.

SESNO: I think the public knows that.

CUMMINGS: I just felt like she tried to get a little too much into that answer. Over the course of the following questions, she was able to clarify some of it. But in that particular showdown, I don't think it was clear.

SESNO: If the American public can listen to an hour of a Bill Clinton State of the Union Address, they can handle that response from her.

HARRIS: Hey, that's terrific. You know, that's why we love having you guys on the program.

Thank you both so much, Jeanne Cummings of Politico.com, and Frank Sesno.

Frank, great to see you.

Jeanne, great to see you as well. Have a great weekend.

SESNO: Thanks.

CUMMINGS: You too, Tony.

HARRIS: In last night's debate, both candidates said nuclear power is one solution to our energy fix. How realistic is that?

(COMMERCIAL BREAK)

HARRIS: The Department of Energy has announced applications from energy companies seeking loan guarantees to build 21 new nuclear plants. But as the credit crunch -- yes, again -- puts the squeeze on businesses of all types, can those plants even be built at all? Nuclear power is today's Energy Fix. And for Diane King in New York.

Diane, good to see you.

Break this down for me, please.

DIANE KING, CNNMONEY.COM: Good to see you, too, Tony.

Well, here's how it breaks down. To build 21 new nuclear plants, it will cost an estimated $188 billion. Now the companies say they need $122 billion in loan guarantees from the Department of Energy. But the DOE says only $18.5 billion is available. Now that's a pretty big shortfall.

One company applying for these guarantee, Duke Energy, tells us it does not have plans for a new nuclear plant but it's just keeping the option open.

And how will the locked up credit market play into this? Well, we spoke to the Nuclear Energy Institute. It says the review process for the plants will take three to four years. And that if credit is still a problem at that point, we'll have bigger problems than not having enough energy -- Tony.

HARRIS: Yes, obviously that's not the only obstacle in building these plants, Diane.

KING: Right. Well, nuclear plants have always been controversial, but they're becoming more accepted. Now both of the presidential candidates include nuclear power in their energy policy, although McCain's plan is more aggressive in adding this type of power.

The good news about nuclear power, it emits zero green house gases. And once they're built, it's a relatively cheap, reliable source of domestically produced energy. The bad news, though, disposing of nuclear waste is a major concern. It can be recycled, but the by-product of that has been weapons grade plutonium. So a major security issue there.

Plus, there is always the risk of an accident, which means most local communities don't want a nuclear plant in their backyard.

Yes, CNNMoney.com is following the Energy Fix story and the credit crunch. Log on to our web site for all the latest news.

Tony, I'll send it back to you.

HARRIS: Look at that Diane King sitting in there for Poppy Harlow.

Diane, have a great weekend. Thanks.

KING: Thank you. You, too.

HARRIS: What did young voters think of last night's debates? We've been watching those who were watching the candidates.

(COMMERCIAL BREAK)

HARRIS: Boy, so far so good for the markets. As you can see, the Dow up 185 points. What a nice rally as we head into the weekend. The Nasdaq up as well, 49 points. The S&P up 24. So all of the major indices in positive territory on this getaway day Friday.

She exceeded expectations, but he did a better job overall. That's what debate watchers said about last night's match-up between Governor Sarah Palin and Senator Joe Biden. And in a CNN/Opinion Research Corporation Poll, 51 percent said Biden did a better job, compared to 36 percent for Palin. But respondents did say the folksy Palin was more likable.

So how did last night's debate sit with the young voters who often don't show up in the polling because they don't have land lines. They have these hand-held devices. These cell phones and these side kicks and whatever.

VERONICA DE LA CRUZ, CNN CORRESPONDENT: And so on and so forth. These Blackberries. HARRIS: Yes, Veronica's here.

DE LA CRUZ: These -- hey, how are you doing?

HARRIS: Yes, terrific. Terrific.

DE LA CRUZ: OK. So in a nutshell, voters were unsatisfied. The young voters were unsatisfied. And I wanted to say, this is one of the top stories on the CNN political ticker, by the way.

And here's what happened. A group of about 40 young voter turned out to watch the debate at the Hard Rock Cafe in Atlanta. It was all organized by Rock the Vote, which, Tony, as you know, it's a non- partisan organization aimed at getting young people out to the polls.

HARRIS: OK.

DE LA CRUZ: So what did they think? Well, they felt that the debate lacked substance. Thirty-year-old Daryll Cordiero said that he was unimpressed with both candidates responses on nearly every topic ranging from health care to Iraq. Daryll says he's probably going to vote for the third party candidate, Tony.

HARRIS: Oh, really?

DE LA CRUZ: Yes. He says, "what did they say that was different, really? They aren't speaking to me. There's all this talk about change, change, change. It's all gimmicks."

And then 30-year-old Laura Butler says "they are all the same. It's a matter to me of who you don't want."

But then, Tony, some participants were a little more specific. One said he felt Palin took some cheap shots that worked well for her. He felt that she did really, really well. Then another participant felt Biden made really good arguments on health care and the war in Iraq.

So, the question, who did they say won last night's debate? Well, it wasn't the candidates, but it was a Palin bingo.

HARRIS: What?

DE LA CRUZ: Palin bingo. Take a look. The viewing party hit was the (INAUDIBLE) this game right here. As they watched last night's debate, players waited to see how many times the Alaskan governor was going to say words like pit bull, special needs, foreign oil, job creation.

HARRIS: Moose hunters or, yes, yes.

DE LA CRUZ: Right. Drill. Drill, baby, drill.

HARRIS: Sure.

DE LA CRUZ: Right. And we want to know how you feel about this. Who do you think was last night's winner? We've been watching the quick vote all morning long, Tony, at CNN.com and so far about 66 percent are saying, can you guess?

HARRIS: No. No, no. I don't want to.

DE LA CRUZ: Joe Biden. Sixty-six percent of CNN.com users feel Joe Biden won. Governor Sarah Palin, about 28 percent. And you, too, can vote right now by logging on to CNN.com. And I brought you back a souvenir just in case you want to play at some point. This is the Palin bingo card.

HARRIS: They're not taking enough classes, obviously. They're just not. They've got way too much time on their hands.

All right, Veronica, appreciate it.

DE LA CRUZ: You know what, at least they're participating, at least they're watching and at least they will show up at the polls.

HARRIS: We love that. We hope they show up. Come on.

DE LA CRUZ: We hope they do.

HARRIS: Well, let's do this. All right. You have a lot to say. You, not just young people, about Sarah Palin and Joe Biden's performances as well. We are checking in with our I-Reporters.

(COMMERCIAL BREAK)

HARRIS: What do you say? A live picture now of Capitol Hill. The House debate continues over the financial rescue plan. Steny Hoyer is speaking right now, a Democrat from Maryland. Let's listen in.

(JOINED IN PROGRESS)

REP. STENY HOYER, (D) MAJORITY LEADER: ... Affirmatively on Monday. What we did decide, however, that was initial failure should not stand because the crisis confronting our country was too great. And Republicans and Democrats together, administration and Congress, chairman and ranking member, each individual member, decided that failure was not an option.

On Monday, the dividing line in this House was not between parties. It was between those who believed the dangers of doing nothing outweighed their reservation about Monday's bill and those who had yet to be convinced. Since then, I believe that the number of the convinced that this action is essential has grown.

Some were convinced when a vote in this chamber led to the evaporation at $1.2 trillion of wealth in about 120 seconds. Some were convinced when they heard that America lost another 159,000 jobs last month. Making a total lost jobs this year of 760,000 jobs.

In a similar period eight years ago, we had gained 1.5 million jobs. A net turnaround of over 2.2 million jobs.

Americans are in trouble. They're expecting us to act. Some were convinced by the stories like this one from a small town car dealer in Utah. He said this -- I'm not going to be able to pay my employees next week. I can't get the kind of credit line from the bank that I've had through my entire career unless you do something.

This bill outreaches not only to minorities, but to small businesses as well. And I thank the general lady from California for her focus on that issue, and Mr. Baucus for his focus on that issue.

What happens on Wall Street is bound up with the jobs of millions on main street, and the retirement of millions on main street, and the homes of millions in hometown America, and dreams of millions of our fellow Americans. And if disaster strikes those few square miles in Manhattan, it will surely spread until every one of those jobs and retirements and homes and dreams are put at great risk.

This week, I've heard from the prime minister of Australia and Japan, who are telling us that their people are bracing themselves, worried that America will not rise to the occasions. I am proud to be a member of this House. And when challenged, I believe this House rises to its responsibilities. And I believe it will do so today. We sing the praises of American leadership, and today I think we will deserve that praise.

This is the responsibility that comes with our duty as representatives in the people's House. For all of those reasons, this bill is essential. So many of us have improved the administration's plan, Republicans and Democrats working together, which came to us as a mere three-page bill, giving essentially a $700 billion blank check to the administration. Republicans and Democrats knew as one that that could not stand.

The heart of the bill remains a plan for the government to buy up bad financial assets, restoring the flow of credit. So essential to the growth and maintenance of our economy. But we fought to ensure that taxpayers will be the first to profit, if and when those assets rise again in value. Making the true price tag of this bill far, far less than $700 billion.

In fact, Warren Buffett, one of the most successful investors in the history of America, has said this, and I quote, "if they do it right -- if they do it right," he said, "and I think they'll do it reasonably right." His expectation is that we will do it reasonably right. He said, if we do that, we'll make a lot of money. We, being the taxpayers of America. So we have the opportunity not only to save our economy, to save those dreams of our fellow citizens, but also to make some profit.

In addition, we made sure that the financial community will be obligated to pay the taxpayers back for our loan. We've restricted executive compensation, because CEOs whose recklessness helped bring on this crisis should not receive taxpayer subsidized golden parachutes for extraordinary salaries. We are subjecting the Treasury secretary's decision to strong oversight. Republicans and Democrats together agreed that that should be done.

Finally, we will help homeowners renegotiate their mortgages to prevent a further flood of 2 million projected foreclosures. That's what this bill is about. That is the action we are asked to take today.

On Wednesday, the Senate raised federal insurance of bank accounts from $100,000 to $250,000 and also chose to add several tax cuts. I personally believe that raising the FDIC could be argued on both sides of the question. But certainly it ought to stabilize our local banks.

However, as all of you know, I strongly disagree with adding those tax provisions, because the Senate has chosen to finance them with debt. This crisis is making it painfully clear the dangers of fiscal recklessness and that debt does indeed matter. A lesson, in my opinion, the Senate has ignored.

But an emergency like this calls for the courage to compromise. On Monday, Chairman Frank said, and I quote the chairman, "if we aren't prepared to accept some of the things we don't like, we will not have the power to deliver for the people we care about."

The chairman was absolutely right. For me, those people are families unable to take out a loan to buy an appliance or pay for college. They're Americans who have worked their whole lives only to see their retirement accounts threatened. They are the millions of workers fearing a pink slip they did nothing to earn.

For their sake, for their sake, we must act. I urge all of us to pass this legislation. I urge all of us to vote for this legislation.

I know there will be some who will not vote for this legislation. And I want them to know that I respect their judgment. We have a difference of opinion.

On Monday, America was deeply divided and their representative body, not surprisingly, was deeply divided. In the last four days, Americans in small towns, on farms, in urban areas and suburban areas have reflected upon the consequences of inaction.

And while they have not come to the universal thought that we ought to pass this bill, they have told us in the strongest terms, we expect the people's House to act in a way that they think best to save our economy, to protect our dreams, to make America whole again. And I yield back the balance of my time.

UNIDENTIFIED FEMALE: The chairman yields back his time. The gentlemen from Alabama. Gentleman from Alabama.

UNIDENTIFIED MALE: Madam speaker, I yield one minute to the gentlemen from Ohio.

HARRIS: OK. You just heard House Majority Leader Steny Hoyer from Maryland and his floor speech, encouraging House members to vote for passage of the $700 billion rescue plan for the financial sector. As you know, the plan would allow -- John Boehner speaking now.

Very quickly, let's take you back to the floor of the House.

(JOINED IN PROGRESS)

REP. JOHN BOEHNER, (R) MINORITY LEADER: ... We've worked together to bring us to this point. We all know that we are in the midst of a financial crisis. And we all know that this crisis is about our neighbors. And it's about our small businesses. It's about retirees whose saving are on the line. It's about the American people and their jobs. And we know that if we do nothing, this crisis is likely to worsen and to put us into an economic slump like most of us have never seen.

We've come together on a bill that is a much better bill than it was when it started. It isn't the bill that I would write. It's not the bill any of you would write, because this bill was done in a bipartisan way, where members on both sides of the aisle came together, worked together to build a product that we thought would help overt this crisis. It certainly has grown in size.

But to do nothing, in my view, is not an option. The consequences of us not acting are overwhelming. And so I do believe that it's our responsibility to act. The American people sent us here to do our jobs on their behalf. They're counting on us.

And I know that some of you will disagree with the bill that we have before us. And I understand and respect those views. But while we have an imperfect product, we have a responsibility to act. And to act in a way that we will do our best on behalf of our constituents.

I've talked to a lot of members on both sides of the aisle who were stuck in really difficult elections. And doing this bill in the middle of an election is complicated enough. And I've had members worried about how this is going to affect their election.

I told them that whether you vote yes or you vote no, you've got to go home and defend this. And it's a lot easier to defend your vote if you, in your own mind, will just do the right thing. I'm going to vote for this bill today because I think it's in the best interests of the American people. That's what they sent us here to do and that's what I'm going to do.

Above the speaker's rostrum is our motto, "In God we trust." Probably one of the most serious votes that any of us will ever cast. I said my prayers this morning, like I do every morning, so that I can understand and feel better about the vote that I cast.

But even if we pass this bill today, let's not kid ourselves. We're in the midst of a recession. It's going to be a rough ride. But it will be a whole lot rougher ride if we don't pass this bill. But I will say to all of you, when this bill passes today, remember those words, "in God we trust," because we're going to need his help.

I yield back.