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Senator Obama Speaking in Dayton, Ohio; Cracking Frozen Credit Markets
Aired October 09, 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: As promised, Senator Barack Obama is in Ohio, this morning.
Let's listen in to his rally in Dayton.
(JOINED IN PROGRESS)
(CHEERS AND APPLAUSE)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Thank you! Thank you. Thank you. Thank you, everybody. Thank you! Thank you. It is good to be back in Dayton! Thank you so much.
There's some special thank yous I've got to say. First of all, please give Tony Currington a big round of applause for the introduction.
(APPLAUSE)
I want to thank one of the finest governors that we have in the country. He is working tirelessly on behalf of the people of Ohio. Please give Governor Strickland a big round of applause.
(APPLAUSE)
One of the finest mayors that we've got in the country, who's working hard here in Dayton. Please give the Mayor McLin a big round of applause.
(APPLAUSE)
A great young Congressman. Give Congressman Ryan a big round of applause.
(APPLAUSE)
For the invocation, thank you so much to Sister Laura Lemming. For the pledge of allegiance, thank you Edwin Madison Prim Jr. (ph). And I want to acknowledge our field organizer in the area, Mike Berger. Please give Mike Berger a big round of applause.
(APPLAUSE)
And I want to thank the Dayton Dragons, for letting us use this stadium.
UNIDENTIFIED FEMALE: We love you, Obama! We love you, Obama!
OBAMA: I love you back.
(APPLAUSE)
Dayton, we meet at a moment of great uncertainty in America. And by the way, everybody, you guys can sit down, if you want. If you got seats. Make yourselves comfortable.
(APPLAUSE)
All right. Dayton, we meet at a moment of great uncertainty in America. In recent weeks we've seen, as all of you know, a growing financial crisis that's threatening not only banks and businesses, but it's threatening your economic security as well. It's getting harder and harder to get that loan for a new car, or that start-up business, or that college that you've dreamed of attending.
If you've invested your life's savings in the stock market, or if your pension has invested in the stock market. If you've got a 401(k), you've probably watched a good chunk of your savings disappear. It's -- now a 101(k), not a 401(k), it's a 101(k).
(CHEERS)
It's a crisis that's been years in the making. People here in Dayton, people here in Ohio, you know that this isn't news, hard economic times. Because we've been seeing on Main Street some of this tough stuff going on for years now.
UNIDENTIFIED FEMALE: We can't hear you!
OBAMA: You can't hear me? You can't hear me? Can you hear me now? Can you folks hear me out there? Can you hear me out there? You can hear me out there?
(APPLAUSE)
So what about? I think it's just you who can't hear me.
(LAUGHTER)
All right. I'll use this microphone. OK. But I can't turn around the whole time. Thank you.
APPLAUSE)
Now, the crisis that we're facing right now -- let's face it, it's the result of greed and irresponsibility, that's fresh from Wall Street to Washington, and the truth is, it's going to take more of than just a few days or even a few weeks to repair.
Now yesterday the Federal Reserve bank took another unprecedented step to cut rates together with nations around the world. And those nations will soon be gathering in Washington, to deal with this crisis. The next president will have to manage this recovery. The question is, will that be -- will that president be looking out for you? Will that president be looking out for banks? Will that president be looking out for CEOs? Or, will that president be looking out for the workers, for the families of Dayton, Ohio? That's the question you've got to ask.
(APPLAUSE)
Now, Senator McCain and I had a chance to talk about this the other night in Nashville. Some of you may have seen it. And in that debate, Senator McCain offered what he said was a new idea to help deal with the financial crisis. And that was to have the government, meaning taxpayers, meaning you, buy up bad mortgages in America. Now, the idea was not particularly new. The authority for the secretary of the Treasury to buy and renegotiate bad mortgages is part of the financial rescue plan that we just passed.
In fact, I proposed taking these steps myself several weeks ago, because if it's done properly and limited in scope, such buybacks can be one tool to help innocent homeowners stay in their homes on terms they can afford, but -- but -- here's the important but, I also said at the time that this should not be a vehicle to reward banks and lending institutions that recklessly wrote bad loans. It should not be a bailout for high-rolling real estate speculators who took those loans to make a quick buck. We have to act to fix our broken economy and restore the credit markets, but taxpayers shouldn't be asked to pick up the tab for the very folks who helped create this crisis.
And that's the problem with Senator McCain's risky idea. On Tuesday, his campaign said he would ask the banks to absorb some of the costs of his plan by selling the bad mortgages to the government at a discount. Then by Wednesday morning he changed his mind. He was proposing to bail out banks and lenders with taxpayer money, no questions asked.
Senator McCain actually wants the government to pay the full face value of mortgages on the books, even though they're not worth that much anymore. So banks wouldn't take a loss, but taxpayers would take a loss. It's a plan that would guarantee that you, the American taxpayers would lose by handing over $300 billion to underwrite the kind of greed and irresponsibility on Wall Street that got us into this mess.
It's not just that Senator McCain's bailout rewards irresponsible lenders, it's that his bailout would make it more likely that those lenders keep up their bad behavior. Now, just yesterday Countrywide -- you remember Countrywide, one of the nation's largest lenders, were all up in the subprime lending market. What's the problem now? OK. Sound system. Where's my sound man? I'm going to have my sound man come out here so that everybody knows who messed up the sound. That's all right. I'm teasing, that's all right.
Let's see if we can kick up the volume a little bit now. All right. Now -- now the other thing -- I -- all right. Just yesterday Countrywide, one of the nation's largest lenders, reached an agreement to help homeowners refinance their mortgages. They wouldn't have an incentive to come forward and help homeowners because they can just wait for you, the taxpayer, for the government to bail them out.
This is just the latest in a series of shifting positions that Senator McCain has taken on this issue and just about every issue. His first response to the housing crisis in March was that homeowners shouldn't get any help at all. Then a few weeks ago he put out a plan that basically ignored homeowners. Now in the course of 12 hours, he's ended up with a plan that punishes taxpayers, rewards banks, and won't solve our housing crisis. But -- this is the kind of erratic behavior we've been seeing out of Senator McCain. You remember the first day of this crisis he came out and said the economy was fundamentally sound. Then two hours later he said we were in a crisis.
I don't think we can afford that kind of erratic and uncertain leadership in these uncertain times. We need steady leadership in the White House. We need a president we can trust in times of crisis. And that's why I'm running for president of the United States of America. Now, Dayton, make no mistake. Make no mistake. We must do more to help innocent homebuyers. I've worked on a series of proposals over the past two years to do just that.
I support the Treasury's effort to buy out troubled mortgages but we need to do it in a responsible way. That means making sure we're not overpaying for these mortgages and rewarding the very lenders whose recklessness helped cause this crisis. It means giving taxpayers a share of the benefits when our housing market recovers. It means doing what I proposed more than two years ago and cracking down on predatory lenders by treating mortgage fraud like the crime that it is. That's what we should be doing.
We also have to make sure that if the Treasury moves forward with its plan to put out more money into struggling banks, that the taxpayers will be able to get their money back. And the CEOs who contributed to this crisis won't get rich or more rich as a result. Those AIG executives some of you read about who went on vacation, went on a junket with taxpayer dollars, they should return to Washington with a check for the taxpayers' and be fired on the spot. That's what we would do if I was president of the United States.
Now, there are other steps we can take to help homeowners that won't cost taxpayers a dime. One thing we can do is change our bankruptcy laws so they help ordinary folk. Right now the law let's a bankruptcy judge write down your mortgage if you own six or seven homes. They can do it on the second and the third and the fourth and the fifth and the six and the seventh, but they can't do it on the only home you've got. If you've just got one. So that might help Senator McCain sleep easier at night, but it won't do anything for folks like you, and that's why if I'm president, and you're like most people and own only one home, I'll make sure these judges can write down your mortgage, too. That's only fair. Somebody with seven homes shouldn't get a better deal than somebody with one home.
I know these are difficult times, Dayton. They're difficult times for Dayton. They're difficult times for Ohio. They're difficult times for America. But I believe we can steer ourselves out of this crisis. Not just because I have confidence in the plans I'm proposing or the leadership that I'm offering, but because I believe in you. Because I believe in this country. Because this is the United States of America.
This is a nation that has faced down war, and depression, great challenges and great threats, and at each moment we have risen to meet these challenges, not as Democrats, not as Republicans, but as Americans. With resolve, with courage, with that fundamental belief that here in America our destiny is not written for us but it's written by us. That's who we are, and that's the country we need to be right now, and that's why I'm running for president of the United States to help lead this country in a better direction.
America still has the most talented, most productive workers of any country on earth. Right here in Dayton, you've got folks who work two or three jobs. Take the last bus home at night, because they want something more for their children. America's still the home of innovation and technology. Colleges and universities that are the envy of the world. Some of the best, brightest ideas in history have come from our small businesses, from our garages, from our research facilities. So let me say this. It will not be easy, but there's no reason we can't make this century another American century. Yes, we can.
Of course we can. We can continue to make sure that our children's future is better than ours. But it's going to take a new direction. We're not going to be able to bring about change. We're not going to be able to take a new path a new road, if we hire the same drivers. It's going to take new leadership in Washington. It will take a real change in the policies and politics of the last eight years, and that's why the decision you make in 26 days is so important, Dayton. That's why this is no ordinary election, because this is no ordinary moment for America.
Even as we face the most serious economic crisis of our time, even as so many Americans are worried about keeping your job or paying your bills, or staying in your home, Senator McCain's campaign announced last week that they are trying to turn the page on the discussion about our economy, and spend the next, final few weeks in this election attacking me instead.
I don't know if you've noticed, but they're not -- they don't seem to want to talk about the economy. They want to talk about me. And his campaign actually said this. I quote them. They said, "If we keep talking about the economy, we're going to lose." Well, I've got news for John McCain. This isn't about losing a campaign. This is about Americans here in Dayton who are losing their jobs and losing their homes and losing their life savings. This is about young people losing hope and losing direction. That's what we should be worrying about.
I can take four more weeks of John McCain's attacks, but America can't take four more years of John McCain's George Bush policies. We can't afford four more years of the same. We can't afford four more years of the economic theory that says we should give more and more to those with the most, and hope that prosperity trickles down on everybody else. We can't afford four more years of John McCain's call for less regulation, so that no one in Washington is watching anyone on Wall Street.
We've seen where that's led us, and we're not going back. John McCain's wrong about turning the page on talking about the economy. What we need to do is turn the page on eight years of economic policies that put Wall Street before Main Street and ended up hurting both. We need policies that grow our economy, Dayton, from the bottom up. So that every American everywhere has the chance to get ahead. Not just corporate CEOs, but their secretaries, too. Not just the person who owns the factory, but the men and women who work on its floors. Because if I've learned anything from this economic crisis, it's that we're all connected.
We're all in this together. We rise or fall as one nation, as one people. It doesn't matter, black, white, Hispanic, Asian, Native American, young, old, rich, poor, Democrat, Republican, we've got to work together to move this country forward, and that's what I intend to do when I'm president of the United States of America.
The rescue -- the rescue plan that passed Congress last week --
HARRIS: There you have Barack Obama campaigning in the crucial battleground state of Ohio, in Dayton, Ohio. John McCain and Sarah Palin next hour in Wisconsin.
Hello again, everyone. I'm Tony Harris.
Here are the headlines from CNN on this Thursday, October 9th.
Dow stocks rally, but it is, oh, so brief. Tight credit and fear driving the market back towards 9000.
A sheriff putting the brakes on foreclosures in Chicago. In many cases he says the wrong people are paying the price.
CNN revealing its top heroes for 2008. Now it is your turn to vote on a winner. Find out how, in the NEWSROOM.
So far a scary October for investors. The Dow, a loser every day this month and right now today isn't looking any different. Blue chips tumbled some 200 points after a short visit to positive territory this morning. There you can see the numbers. The Dow down 62, despite all the steps taken in Washington and around the world, credit appears to be tighter today. Banks are holding on to cash, that includes other banks won't pay them back.
You know this financial crisis is all about numbers. Here are a few digits that show the crisis in stark terms. It was one year ago today, October 9, 2007, that the Dow closed at its all-time high. 14,164. 12 months later, take a look. The Dow opened today at 9,258. That's a loss of 4,906 points or about 35 percent of its value. When will the turmoil end?
Personal finance expert Suze Orman is measuring the gloomy times not in weeks or months but years. She talked to our Anderson Cooper.
(BEGIN VIDEO CLIP) SUZE ORMAN, HOST, "THE SUZE ORMAN SHOW": I want you to think about the reality of this, for those of you out there who all you have is credit card debt, you're losing your home because you're behind on your payments, you can't make your car payment, you work in an industry, possibly that you're going to lose a job in. You have absolutely no money, and this keeps going on, and you can't get another job. What are you going to do?
So it is very, very possible out there that you will start to see things not where there are bread lines, like we saw, and nobody having any, but that a lot of people are out on the streets. I have people calling in to my show that are actually starting to live in their car, because they don't know what else to do.
(END VIDEO CLIP)
HARRIS: OK, reports this morning that the government is considering taking ownership stakes in U.S. banks. It is a bold move to fix this financial frenzy that we're in. Let's check in with one of our money experts, CNN personal finance editor Gerri Willis.
I know you've been looking into the story. How does this look to you? What are you hearing?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: The Treasury Department, Tony, is considering absolutely every option, in fighting this credit crunch. One of the things they're thinking about, one of the things on the table right now, is actually putting money right into banks. Buying ownership stakes. Putting money up for the banks rather than coming in setting up a whole system of buying some of this bad debt, some of this bad mortgage bad debt.
It would be much faster and possibly more streamlined. Keep in mind that Great Britain just yesterday said that's exactly what they were doing to do. They were going go in and buy pieces of banks. So now the discussion is, should we do that as well? You know, understand that the credit markets haven't recovered yet, we're still waiting for this, and he make as good point that, hey, we are a long way from where the stock market was just this time last year. It hit a high of over 14,000. Look where we are today.
I know people out there are worried, but the federal government son the case trying to find a solution, finding ways of easing this credit crunch. And again, the credit crunch, in case you haven't been following this, banks are even lending to each other much less you, right now. If you try to go out and get an auto loan, a car loan, a mortgage for goodness sakes, you're going to have a very hard time doing that, because banks are so fearful right now, they don't want to lend money to most anyone.
It's very difficult to get a loan. Federal government trying to ease that credit crisis so it doesn't get worse. Trying to find a solution right now.
HARRIS: Gerri, help me with this. Let me take a moment here. Trying to figure why banks aren't willing to lend to, hello, to other banks. I mean, is it a sense that the lender bank has no idea what kind of shape the borrowing bank is in? What in terms of bad assets are on the books of the bank that is doing the borrowing?
WILLIS: Well that's absolutely right, Tony.
I mean, they are worried that whoever they're lending to won't make good on the loan. They don't know what they have on their balance sheet. They're just too worried. Look, it's fear that is driving this market right now. F-E-A-R. That's as simple as it gets. Some of the things the Treasury has done, for example, standing behind what they call commercial papers. These are short-term corporate loans.
Now that the corporate market is falling apart, it's not that these credits aren't any good, it's just that there's so much fear in the marketplace and nobody wants to do business. So that's what the Treasury's trying to fix. It's changed the sentiment, making people think differently about their money. Think differently about loans, and if you're an individual out there, you know, you're struggling, maybe you're trying to find your way forward, and a lot of people are worried about their 401(k)s out there.
Now, unless you are on top of retirement or in retirement now isn't the time to be willy-nilly selling your investments. You've got to think seriously about getting some savings on the sidelines if the worst happens, you lose your job, you have something you can fall back on.
HARRIS: Good guidance, as always. Gerri, great to see you. Thank you, just for that.
WILLIS: My pleasure.
HARRIS: You know there are so many questions and so many scenarios in this financial crisis. That's why senior business correspondent Ali Velshi is answering your questions right now on CNN radio and CNN.com. We will check in with him in just a few moments.
(COMMERCIAL BREAK)
HARRIS: Insurance giant AIG is calling off its next corporate retreat. We told you about the last one just days after it nailed down a federal bailout. The company spent $440,000 on spa treatments, golfing, banquets. That outraged everyone, including Congress. Now a retreat set for a San Francisco area resort October 20th is off.
Here's an updated statement of the event at Half Moon Bay, was to be an event to host brokers. Not AIG employees or corporate executives. It has been canceled as part of an overall review of cost in light of AIG's liquidity problems and in recognition of the heightened sensitivity about all AIG expenditures in the current environment. Our insurance businesses continue to be healthy and continue to provide outstanding service to our policyholders. The updated statement there from AIG.
CNN senior business correspondent Ali Velshi right now answering your money questions, your concerns on CNN radio. Let's check in and hear what people are talking about.
Ali, let me bring a concern to you.
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Yes.
HARRIS: We were talking yesterday about the numbers for pending home sales.
VELSHI: Right.
HARRIS: And a bit of a boost there, but those are pending home sales. The deals haven't been completed.
VELSHI: Right.
HARRIS: So I'm coming to the table, and I think I'm in great shape, I have a 750 or above credit score. But guess what I'm finding? I'm finding that the terms of my loan have been changed.
VELSHI: Yes, yes.
HARRIS: Because of this environment.
VELSHI: Right. Because those pending home sales numbers, which were a real surprise, they were up more than 7 percent from July to August, those were homes that had not been closed on yet. August was a long time ago in this financial environment and people have seen their credit toughen up. A lot of the calls I'm getting are from people who have seen that credit toughen up. So that's exactly the concern.
I'm getting calls from people who are actually asking me in some cases, is this the time to buy? Those pending home sales, you know where the jumps were, they were in California, Nevada, Arizona, Florida. A lot of these states getting really hard hit.
HARRIS: Well you're getting some rock bottom deals there, aren't you?
VELSHI: Right, you're getting good deals, that's right. And interest rates, if you have that 750 or above credit score, interest rates for a 30-year mortgage are still around 6 percent. Some people get even better deals than that. So if you have money and if you have a good place to buy, the price is good, and if you can get that mortgage, there are people saying this might be the market to get into. But if you can get the mortgage is the key deal.
HARRIS: OK, but that gets me to the bank. And the other issue we're facing now, is this scenario where banks aren't lending to other banks. I'm trying to figure out what is that all about? Is that because the lender bank is concerned that the borrowing bank may not be able to pay it back? Because you don't know what's -- VELSHI: You don't know what they're loans are. And the rules of the game, if you want to be a bank in this country, in most countries, you have to have a certain amount in reserves every night. A certain amount of your money that's loaned out you have to have, so it prevents run on the bank. Every night certain banks have excess and certain banks have shortages. They lend to each other overnight and that's how they keep their balances. Used to be a done deal.
Hey Tony, need a billion dollars overnight. The system, now all of a sudden, it's like Tony saying, Ali, I don't know if you're good for it. I don't know who you've been loaning money to. Or you're in this area, which has seen a lot of foreclosures. That's what it is. That's just one little microcosm of this credit crisis. I just heard from a business man who said he put money in his personal account, he had a business credit line, the bank just went in and took the money out of his personal account to cover his business credit line because they weren't sure he was going to make the payment. He thought he had cash, and he doesn't have cash in his personal bank account, because it was connected to his business bank account, they just went in and took the cash and didn't tell him.
HARRIS: It is amazing what is happening right now. All right, we've got the number for folks to call you. You're on the air until the top of the hour?
VELSHI: I'm on the air until the top of the hour. We're getting great calls and e-mails. Come in, tell us, vent, or ask your question because people have things to get off their chest. We're prepared to listen.
HARRIS: Terrific, Ali appreciate it, thank you.
VELSHI: OK buddy.
(WEATHER REPORT)
HARRIS: Boy, you are so good. Saving money this winter is the day's energy fix. We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: Another check of the big board. The New York Stock Exchange right now. And as you can see, the Dow is down 69 points. We are actually off session lows considerably. At one point we were down over 200 points. About 202 points. So, again, all session lows. We're following the market throughout the day with Susan Lisovicz and the entire CNN money team right here at the CNN NEWSROOM.
Trying desperately to crack the frozen credit markets. Reports now say the Treasury Department is considering buying ownership stakes in many U.S. banks. The move would inject capital directly into the banking system. Treasury officials say that's exactly what the newly passed $700 billion bailout bill authorize them to do. The plan is still in the discussion stage, but according to "The New York Times," the proposal is emerging as one of the most favored new options being considered in Washington and Wall Street. Financial frenzy not just here but around the world. We asked people across the globe, how has this economic turmoil affected you and changed your lifestyle? Listen to some of these responses.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE, (through translator): No, not for now because we didn't have particularly demanding habits to begin with. My lifestyle, for now, hasn't changed. We'll see if, in the future, for example, if we will be able to go on vacation. But there's still time for that.
There is a little anxiety. But, for now, I still think that by being careful, even on a daily basis, everybody can be dealt with well.
UNIDENTIFIED MALE, (through translator): A loaf of bread is like (INAUDIBLE) extra. Buy a can of cold drink. You know, I can't buy three cans of Coke (ph) anymore. I have to buy two a day.
UNIDENTIFIED MALE: I wonder what's going to happen next year, maybe, for us in terms of like I finish school this year and then I want to -- I'm going to work (ph). So am I going to (INAUDIBLE)-- am I going to have (ph) enough or how is it going to like effect my life.
UNIDENTIFIED FEMALE, (through translator): Yes. We buy less right now. Especially bigger investments. No cars or things like that. We're waiting to see what happens.
UNIDENTIFIED FEMALE, (through translator): My trust is eroding. You give the little private (ph) money you have to the bank and they just play with it. It is that simple.
(END VIDEO CLIP)
HARRIS: Boy, it is a trust and confidence game at this point, in it?
Checking the numbers. Stocked around the world have moved mostly higher today. CNN's i-Reporters are showing us the real effects of the finance crisis on you. Mike Kowaleski of Augusta, Georgia, went to one store to see just how much people are spending and saving.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: In the last few months, prices have really shot up and it's not much fun to do.
MIKE KOWALESKI, IREPORTER: I mean, can I ask how much you spent on the shopping cart of groceries that you have right here?
UNIDENTIFIED MALE: $285.
KOWALESKI: $285. And how long do you expect these to last you?
UNIDENTIFIED MALE: I have a houseful. So I'd say maybe two weeks. KOWALESKI: So how much did you spend on your cart of groceries here do you think?
UNIDENTIFIED FEMALE: $100.
KOWALESKI: $100. How long do you expect this to last you about? Is this pretty much general shopping for you or . . .
UNIDENTIFIED FEMALE: A week.
KOWALESKI: A week. OK. And if I could ask one more question. How much do you think you're spending now compared to what you did a year ago?
UNIDENTIFIED FEMALE: I think probably 20 percent more.
KOWALESKI: Twenty percent more.
(END VIDEO CLIP)
HARRIS: These i-Reporters, huh?
We continue to look at the rest of the nation and how all of us are -- because we're in this together, are faring in these troubled time. Let's bring in our Veronica De La Cruz now. She has been watching our affiliate and watching the web for us throughout the morning and throughout the day.
Veronica, what are you finding?
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Well, let's go ahead and start in Illinois with a story from affiliate WLS, Tony. A sheriff there taking extreme measures to protect some victims of the mortgage crisis. Sheriff Tom Dart is suspending evictions from foreclosed homes. He says many people getting thrown out of their homes are renters. But it's actually their landlords who are falling behind on payments. Take a listen.
(BEGIN VIDEO CLIP)
SHERIFF THOMAS DART, COOK COUNTY, ILLINOIS: An example of where the banking industry has not done any of work they should do. It's a piece of paper to them. And these poor people are seeing everything they own put out on the street. And they've done absolutely nothing wrong. They've paid their bills. They've paid them on time. And here we are with a battering ram at the front door, you know, to throw them out. This stuff has -- it's gotten insane and we're going to stop it.
(END VIDEO CLIP)
DE LA CRUZ: You know Dart says mortgage companies are supposed to find out who is living in the building before requesting an eviction and they simply are not doing their jobs.
Now from our affiliate WCDB in Massachusetts. A unique program helping senior citizens deal with the economy. It gives qualifying seniors like Helen O'Malley, you see her right there, it gives them a chance to work 94 hours for $750 in real estate tax credit. And the way O'Malley explains it is this, Tony. She says, "I'm a senior citizen on a fixed income. I only have so much money to go around and when taxes go up, if I can't alleviate that burden, I get in trouble. O'Malley has been filing papers in the town's comptroller's office. She says she enjoys the work. She likes the fact that she's able to eliminate her tax debt. So there you go.
HARRIS: Can you imagine what it's like if you're living on a fixed income? It just occurred to me, sorry about that, if you're living on a fixed income right now, the rising prices for fuel, energy costs, obviously, and food as well.
DE LA CRUZ: Yes, I know. It definitely is tough.
I have one more story I wanted to share with you. This is from the web, Tony. It's on CNN.com right now. Some states are seeing their unemployment funds dry up. With a weekly average of more than 470,000 new applicants in August and a system already dealing with more than 3.5 million people each week, several states are facing trust funds that could be depleted as early as March. A policy group reports as many as 10 states facing this issue, the group which tracks legislation and activity related to state and federal unemployment benefits says California, Michigan, Missouri, New York, Ohio, South Carolina, Wisconsin, Indiana, Kentucky and Arkansas, Tony, have less than six months' worth of unemployment trust fund reserves.
HARRIS: What do you do? I guess you . . .
DE LA CRUZ: What do you do?
HARRIS: You make a loan if you're one of these states. And we know how difficult that can be, right?
DE LA CRUZ: Exactly. Where's the money? Who's loaning it?
And, Tony, I wanted to remind you that you can find that story at CNN.com, as well as a lot of those affiliate stories.
HARRIS: All right. Veronica, good to see you. Thank you.
DE LA CRUZ: Good to see you.
HARRIS: New data from the Energy Department predicts heating costs will be 15 percent higher than last winter. Most energy companies offer home audits. And it might be a good idea to think about getting one before it gets too cold. Poppy Harlow of CNNMoney.com shows us how we can all save in today's "Energy Fix."
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNNMONEY.COM (on camera): Owning a home is a big investment. And when you lose energy, you lose money. So with us now, Kevin and Kelsy, they own this house here behind me in Hopkins, Minnesota. They're looking for their energy fix. To help them do that, Jimmie Sparks, Xcel Energy auditor.
Should we head inside guys?
UNIDENTIFIED MALE: Sounds good.
JIMMIE SPARKS, AUDITOR, XCEL ENERGY: OK. This is where we like to start. Basically, like your mother used to tell you, let's put a hat on our heads. We want to see how much insulation we have up here to stop the heat loss. We actually recommend R-50.
HARLOW: How many inches is that?
SPARKS: You're probably looking 16 to 18 inches of insulation.
So I notice in your master bedroom you have a fireplace. One thing to know about most fireplaces is they have a tendency to pull more heat out of the house than they put back in below 40 degrees.
Sometimes people forget to shut the dampers.
The one thing I'm looking for is the Energy Star logo. So when it does come time to replace this, you want to look for the Energy Star logo. They make dishwashers, microwaves, refrigerators and clothes washers -- can all be Energy Star, basically.
Changing the furnace filters often. Check at least every month. Ceiling the ducts. Air is lazy like a teenager, seeks the least resistance.
So you have an electric water heater. One of the things we do highly recommend is insulating that. You can buy an insulated jacket for around $10.
We're going to do an air leakage test. Basically it's a device that shows us how leaky your house is. Really the blowers (ph) it's going to lattice, tell us if your house is too leaky, too tight or just right. I always like to say if you could see little dollar bills leaking out, I wouldn't be here. You would have sealed those years ago.
So let's see what we can find. We're going to release some of this and we can follow it where it goes. Definitely going up the chimney.
Do you see that?
UNIDENTIFIED MALE: Oh, wow. Look at that.
SPARKS: We do have some leakage. This is a traditional one that we always see.
HARLOW: All right, guys. What did you learn?
UNIDENTIFIED MALE: We've got a pretty leaky house. There's a lot of air coming in and out of this place that shouldn't be.
HARLOW: Kelsy, for you what was the most eye opening thing from this energy audit?
KELSY PETRYKOWSKI, HOMEOWNER: Actually seeing the smoke test and seeing where those air leaks are actually happening.
SPARKS: You've got a lot of opportunities here to reduce your usage, be more comfortable, do good for everybody.
UNIDENTIFIED MALE: Thanks for your time.
(END VIDEOTAPE)
HARRIS: How about that. Lots of good tip there's. You know, the Energy Department says combing proper equipment maintenance, insulation, air sealing and thermostat setting can cut your energy consumption from heating and cooling between 20 percent and 50 percent. And in this economy, every penny counts.
You know, as the most serious credit crisis in decades rocks you finances, CNNMoney.com has some advice and answers. Check out our special report, "America's Money Crisis." That's at CNNMoney.com.
You're experiencing this financial crisis firsthand. So we are watching your i-Reports.
(COMMERCIAL BREAK)
HARRIS: Forty-three minutes after the hour right now and you're in the CNN NEWSROOM.
Why don't we take a trip to CNN.com right now. It takes a minute. We've got to get through the NEWSROOM. We've got to get down the escalators and down the hall through the food court. So it takes us a minute to get there. When we do, one of the guys helping us run thing down there, in our i-Report operation, is producer Tyson Wheatley there in Tyson's Corner.
TYSON WHEATLEY, CNN.COM: Hi, Tony.
HARRIS: Hey, good to see you, doctor (ph).
I've got to ask you, are you getting -- my guess is you're being inundated with i-Reports on the story of the day, the week, the month, the last six months really, that's the economy.
WHEATLEY: Yes. Tony, we're getting a great response. And a lot of people are telling us about the lifestyle changes that they're making. You know, it's tough economic times, obviously. But, you know, and, in fact, if you look here on the map, this is where some of the most recent ones are coming in.
HARRIS: Where they're coming from. OK.
WHEATLEY: They're coming in from all across the country. And, you know, we're hearing from people who have -- who are restaurant owners, who are sort of going through -- they're struggling right now. And we're hearing from grandparents who are having to give up luxury items like their RV.
I've got a few examples I was going to share with you and your audience today.
HARRIS: Oh, good. Good.
WHEATLEY: So let's go to this first one. It comes to us from Allen, Texas. And this is from Ingrid Zaharris. And, you know, Ingrid, she make as decent salary. She has a good home. But she says after her payments, she doesn't have a lot left for savings. This is her and her daughter. And they say they're already learning to live with less. They've downsized their home. She says she's taken her daughter out of gymnastics class. And they've stopped doing the lawn service. Those are just some small things that they're doing.
Let's go to Hagerstown, Maryland.
HARRIS: That's Hagerstown. Come on, man. That's Hagerstown. There you go.
WHEATLEY: Hagerstown.
HARRIS: You know I like to help.
WHEATLEY: This is -- well, check it out. This is from Kevin Moriarty (ph). And he says his family is making a lot of small adjustments hoping that it's going to add up in a significant way.
HARRIS: No, that's smart. That's smart.
WHEATLEY: So he says he leaves his pickup truck at home and does his daily errands on this 95 mile per gallon scooter. And he says he's switched to working four 10-hour days to save on fuel. And he says instead of beef and pork, you know, they're having more spaghetti dinners. And something else they did that's pretty smart. They said they did their Christmas shopping this July because they're anticipating a tough winter.
HARRIS: Oh, yes, I think that's pretty smart. There are a lot of folks who probably should think about doing that. I mean there are all kinds of discounts available at Wal-Mart and some other -- KB Toys, if you're out to buy some toys. Maybe now is the time to do that.
WHEATLEY: Yes, I think so. You know, we also got a really interesting video response from a grad student at Washington University in St. Louis. Let's take a listen to what he says.
HARRIS: OK.
(BEGIN VIDEO CLIP)
PETER CABRERA: Both my parents did everything the right way, you know? They worked hard their whole lives. They saved. And now my father is -- he's retired early, after working so hard his whole life, and he's watching his 401(k) disappear. (END VIDEO CLIP)
WHEATLEY: So that's from Peter Cabrera. That's pretty sobering. You know, he says, not only is he worried about his dad's retirement, he's also worried about his own future. He's getting ready to graduate soon and he wants to buy a home. And he's kind of worried about the prospects there.
HARRIS: Hey, Tyson, very quickly. I know these are difficult times for a lot of folks around the country. But I'm just wondering, are you getting any i-Reports from folks who, you know, taking into account that these are tough times, are still optimistic about their futures?
WHEATLEY: Well, yes. I mean, it's not all doom and gloom. I mean people who are making these kind of sacrifices and these early lifestyle changes, they acknowledge that, you know, the reasons why they're doing it is because they want to make sure that they're safe for the future. And so I think there is a lot of optimism there as well.
HARRIS: Well, let's get a few of those on. I just -- maybe there's a way to balance this out and paint a more holistic picture of the whole -- Tyson, good to see you. Thank you, sir. Well done.
WHEATLEY: Take care, Tony.
HARRIS: We'll see you tomorrow.
WHEATLEY: See you soon.
HARRIS: You know, major companies are getting a bailout. But what about homeowners? We go live to Los Angeles, next.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
DAVID KENDALL, BUSINESS OWNER: When everybody else is worrying about the economy and worrying about the credit and everything, I haven't lost a minute of sleep.
(END VIDEO CLIP)
HARRIS: You want to know why? That's because David Kendall runs his household and his playground equipment business on a cash-only basis. No credit. No debt. And, for him, no crisis, Kyra. The credit crunch that has Wall Street, main street in turmoil isn't impacting Kendall at all. He says his cash-only philosophy started years ago when his business was $250,000 in the hole. He got serious about getting out and staying out of debt.
(BEGIN VIDEO CLIP)
KENDALL: We live on a budget. Personally and in the business. And so we do everything on a cash basis. (END VIDEO CLIP)
HARRIS: I'm sorry. We're debating about it amongst ourselves here. Well, Kendall says he hasn't had a car payment in 15 years and he paid off his 30-year mortgage. I mean, we listen to all of these analysts talk about this and we've got to live within our means, right?
KYRA PHILLIPS, CNN ANCHOR: Think about your very first credit card. I remember my very first credit card. I thought, I have a credit card. OK. And the next thing you know, you're wracking up your debt (ph).
HARRIS: That's right. That's right.
PHILLIPS: I remember, I was in tears when I could not pay off that first credit card. I must have been about 19, 20 years old.
HARRIS: You know, I want to cut them up and get rid of them, but they keep telling me that I need to leave the accounts open. But I just want to jettison all of the cards and not be bothered with them for the rest of -- but I'm, you know, look, I'm not putting anything on them.
PHILLIPS: You only need one or two and you monitor it.
HARRIS: Just leave the account -- we got to go? All right.
Our Chris Lawrence -- that's what happens when you put us up here together. Our Chris Lawrence has been talking with southern California families about John McCain's $300 billion plan to help homeowners. And Chris is in Los Angeles for us.
And, Chris, you know, some of these families, I'm getting the impression, they see this as a lifeline. But others are pretty furious about this.
CHRIS LAWRENCE, CNN CORRESPONDENT: Yes. You said it, Tony. You know, some of these people are wondering, how many more bailouts they can stomach. While other families are looking at John McCain's proposal and see it kind of as a last chance to stay in their home.
(BEGIN VIDEOTAPE)
LAWRENCE, (voice over): Two homes, right across the street from each other. Two neighbors, stuck with homes worth $200,000 less than they paid. And two very different views of Senator McCain's mortgage plan.
LEANNE BENSON, HOMEOWNER: It feels unfair. It feels like it should be across the board.
DAVID MELTON, SUPPORTS MCCAIN'S PLAN: That would give me a breather. A little room to breathe.
LAWRENCE: David Melton hasn't made a mortgage payment since February when he lost his union job.
MELTON: There's 116 men above me on that out of work list. And the list isn't moving at all.
LAWRENCE: He'd probably be able to renegotiate his mortgage under McCain's plan. David says he can't eat, buy health insurance and afford the $1,700 payment, making $1,800 in unemployment.
MELTON: I'm 58 years old. Which way do I go?
BENSON: Don't go on the street. Just stay on the sidewalk.
LAWRENCE: Leanne Benson makes her house payments on time and sacrifices a lot to do it.
BENSON: I don't even go to the grocery store. I just -- if I have to make beans and wennies every night for dinner, I have to do that, because it just wipes us out completely.
LAWRENCE: She could support McCain's plan, but only if it includes some reward for taxpayers who do make their payments.
BENSON: Not just the people who choose to throw in the towel earlier or don't want to sacrifice their vehicle or their vacation.
LAWRENCE: Realtor Heather Upton (ph) says, when home prices rise again, homeowners who get a break on their payments will be ahead of those who didn't. So any bailout should account (ph) for faithful payers.
HEATHER UPTON, REALTOR: That would be giving back to the consumer. That would be giving back and rewarding the people that have been hanging in there.
(END VIDEOTAPE)
LAWRENCE: Now, the one thing that all these families agree on is that no matter what final form this housing help takes, it's got to do as much to help the families at the bottom as the bailout's doing to help those big companies at the top -- Tony.
HARRIS: Well said. Absolutely. All right, Chris Lawrence for us in Los Angeles.
Chris, good to see you. Thank you.
You know, a pair of high school football players -- you're going to love this story -- making history in South Carolina.
(COMMERCIAL BREAK)
HARRIS: Hello, everyone. We love this story. And we've been trying to get it on for a week. There were a couple of high school football players, kickers to be exact. And, boy, these guy are scoring points. CNN's Brooke Baldwin shows us.
(BEGIN VIDEOTAPE)
BROOKE BALDWIN, CNN ANCHOR: In South Carolina, Friday means football. And just like any other team, the Pelion Panthers want to win.
UNIDENTIFIED MALE: One, two, three!
BALDWIN: But this coach is taking an atypical page out of the playbook, and his high school team is tackling sports history.
UNIDENTIFIED MALE: Here we go.
BALDWIN: Already once this season, two teammates each kick extra points in the same game, a feat not unheard of, unless both of your kickers are girls.
KACI POOLE, PELION HIGH SCHOOL KICKER: I like to just go shopping and dress up.
BALDWIN: Elizabeth Mitchum and Kaci Poole are juniors at Pelion High School. But every afternoon, these young ladies lose the earrings and heels for football pads and cleats.
What does it feel like stepping out on the field when you know you're surrounded by boys. This is a tough boys sport.
ELIZABETH MITCHUM, PELION HIGH SCHOOL KICKER: Well, I'm nervous every time I go out there. But I think it's mainly just because I don't want to actually miss.
BALDWIN: Elizabeth is 11 for 12 on field goals and extra points so far this season. She plays first string varsity, while Kaci is the backup kicker.
K. POOLE: I would love to tackle. They won't let me.
BALDWIN: That is just fine with her mom.
WENDY POOLE, KACI'S MOTHER: You just pray that she'll hurry up and kick the ball and it to be over with.
BALDWIN: But the Mitchums, look the Pooles, couldn't be more proud.
TONY MITCHUM, ELIZABETH'S FATHER: I'm the proudest dad in the world. I get to go to work and tell all the guys at work that my daughter's on the football team.
BALDWIN: Pelion's coach boasts bragging rights as well.
Two girls score extra points in one football game. A first for the state.
BEN FREEMAN, PELION HIGH SCHOOL FOOTBALL COACH: Well, we know that for sure. And we're not sure about the national part of it. But we think it is. BALDWIN: According to the National Association for Girls and Women in Sports, this team's triumph could be the first in the nation. It is not unheard of, though, for girls to play high school football. Amanda Bolander (ph) is just one example of playing wide receiver for Sandy High (ph) in Oregon. But it is a trend that is gaining ground.
FREEMAN: The more successes you see, I think the more girls that are going to want to, you know, try to do it and I think they'll be successful doing it.
BALDWIN: That's an idea their more traditional teammates are starting to run with.
MARTIN MASCO, PELION HIGH SCHOOL RIGHT GUARD: She's got great leg.
UNIDENTIFIED MALE: I mean she's like a sister out there. You don't want to see her get hurt.
MITCHUM: You've got to make sure you get like under it, like right through there.
BALDWIN: Take it from me, it isn't easy. Oh! Almost.
Yet these girls who both started as soccer players, make it look that way and hope to give other girl as leg up in the sport.
POOLE: If you want to go out for it, then go (ph) and don't be scared.
MITCHUM: To go for it. I mean just to try it. You just have to go out there and give it your all. And if it's what you're suppose to do, then it's what's you're supposed to do.
BALDWIN: Brooke Baldwin, CNN, Pelion, South Carolina.
(END VIDEOTAPE)
HARRIS: How about that? We know the families are watching, so we're really happy to be able to get that story on. We've been trying to do it for a week.
PHILLIPS: OK. Fabulous. And, you know what? I did not even plan this. This is going to completely diminish the great story we just told.
HARRIS: What do you have?
PHILLIPS: Well, you know, you like football.
HARRIS: I love football.
PHILLIPS: Flag, touch, tackle, maybe. Oh, yes, lingerie football league, Tony. And guess what? You know, skill doesn't really matter in this team. It's how you wear the uniform.
From backgrounds, go-go dancers to personal training, they started up their new league.
HARRIS: Oh!
PHILLIPS: Pay-per-view, baby. The only push-ups you're going to see in practice will be those push-up bras.
HARRIS: I -- I -- I am so happy when you come to sit on the set and get going with your show. I just can't tell you. Just -- every day something exciting and new.
CNN NEWSROOM with Kyra Phillips starts right now.
