Return to Transcripts main page

CNN Newsroom

Federal Reserve Now Approved Wells Fargo's Deal to Buy Wachovia; Black Man Supporting John McCain Getting Passionate Hate Mail; The Bradley Effect on Barack Obama; Red Flag Warnings Out in California; Profits on the Rise for Thrift Stores and Garage Sales; Inside the Dark World of Child Prostitution

Aired October 12, 2008 - 22:00   ET

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

DON LEMON, CNN ANCHOR: When that bell rings in just a few hours, will all the emergency late night strategizing by world leaders this weekend make any difference?
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Everybody's turning an eye to the economy.

(END VIDEO CLIP)

LEMON: We hear you. And get the answers from our reporters.

What's said on the campaign trail --

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Barack Hussein Obama.

(END VIDEO CLIP)

LEMON: And what's said behind closed doors.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She flat out said to me, I can't vote for that black boy.

(END VIDEO CLIP)

LEMON: Sometimes blatant, sometimes coded. We look at the language and the ugly undercurrent surfacing as Election Day nears.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hey Sambo, maybe Master McCain will let you shine his shoes since you did such a good job licking his boots, boy.

(END VIDEO CLIP)

LEMON: And the attacks cut both ways. A black man supporting John McCain is getting a hateful earful from his own people. Tonight, he fires back.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Viewer discretion is advised.

(END VIDEO CLIP)

LEMON: Fair warning to a disturbing undercover investigation, inside the rapidly growing world of children as young as 3 sold for sex. Time for the pictures and the stories you haven't seen until right now.

Hello, everyone, I'm Don Lemon live here at the CNN World Headquarters in Atlanta. This is just coming across the wires. We have a lot to get to tonight we want to tell you about. This just in to CNN. What I told you about the Federal Reserve has now approved Wells Fargo's deal to buy Wachovia. That removes a deal's last major regulatory hurdle. Now rival bank Citigroup had basically worked a way for from its own efforts to take over Wachovia's banking operations. The deal still needs the approval of Wachovia shareholders.

This is going to be a big story in the morning. You'll be paying attention to that. It has been a very busy weekend for news. But here's what we want to answer for you before you turn in for the night. The economy. What is the stock market going to do tomorrow? Man, we wish we could predict that. We're going to try to answer some of that for you.

In politics, what will we hear in the final presidential debate? It happens on Wednesday. And speaking of politics, Barack Obama is leading in the polls, but will his race keep him from the White House? Mark Preston joins us to answer some those questions for you.

Financial markets overseas are up and running. Lately, they've been the first indicator of what's in store for us when our markets open here. We're keeping a close eye on all of it for you. Eunice Yoon is following the markets in Asia. Stephanie Elam standing by in New York where the focus turns first thing in the morning.

First to Eunice in Hong Kong. Eunice, markets had been open there for over an hour now. Should we be concern here in the U.S.?

EUNICE YOON, CNN INTERNATIONAL CORRESPONDENT: Well, Don, if Asia's performance is anything to go by, you guys might just see a higher open in New York in the morning. The investors here have been reacting very positively to the news over the weekend. Some comments made by European leaders that they could guarantee InterBank lending. People here say that that would really help to tackle the main problem of the credit crisis. And that is that banks just haven't been lending to each other. So people have been really focusing on those comments and really happy about that.

The Australian markets also got a huge boost today because the Australian government said that they were also going to guarantee bank deposits for three years. So we are seeing this global response, a flurry of comments from all around the world which is helping to boost sentiment here. Now one other story that we are following this morning very closely is the fact that a big Japanese bank that was supposed to invest in Morgan Stanley is now renegotiating its terms with the Wall Street firm. Now the reason for this is because we saw Morgan Stanley's stock price drop significantly last week. In fact, on Friday alone it dropped by 22 percent. So that has led to these reports now that we're hearing. Sources are saying that Mitsubishi UFJ could be renegotiating its deal to buy a 21 percent stake of Morgan Stanley for $9 billion.

Don?

LEMON: All right. Eunice Yoon joining us from Hong Kong. We appreciate your reporting.

To Stephanie now in New York. Stephanie, you heard Eunice. You heard what she said. It may be a better day. Is that an indication of what's to come on Wall Street when the opening bell happens in the morning?

STEPHANIE ELAM, CNN BUSINESS NEWS CORRESPONDENT: Definitely, Don. This is where things start. You know, everything starts with Australia, Asia and works its way over. So we'll also be looking at the European markets when they open later on as the day progresses. But right now, U.S. futures are pointing for a higher open. It's been a while since we've been able to say. Or now, of course, we have to see if that is sustained throughout the day. But right now we are looking for a higher open. It does seem that investors are taking some sort of confidence in the fact that these global markets have been working together throughout the weekend.

There was some uncertainty about the details coming out of what they were saying. But then in Paris on Sunday, we heard the European countries come in together and actually giving some plans as Eunice was just telling you. That seems to be helping out. The other thing that may help out as well, you know, there's a lot to go between now and when the U.S. markets open, but obviously if anything changes in the Asian markets, that will play into what happens here probably.

LEMON: Stephanie Elam, we will be up early, and everyone will be watching. Thank you. Have a good evening.

ELAM: Thank you, too.

LEMON: Now, let's get to the person soon to be in charge of fixing this economy, Barack Obama and John McCain. They kept light schedules Sunday prepping for Wednesday night's third and final debate. John McCain practiced at his Arlington, Virginia headquarters and spoke to campaign volunteers. Barack Obama prepped in swing State of Ohio. He also knocked on a few doors in the Toledo area in search of vote. All right, so here's the question.

So when Obama or campaign workers or pollsters talk to those key voters, are those voters telling the real truth? History shows many of them may not be when the candidate is black. It's called the Bradley Effect. And it could mean that even with Barack Obama's apparent lead, we really don't know where the race stands right now.

(BEGIN VIDEOTAPE)

LEMON (voice-over): With an African-American candidate on the ballot, CNN's senior political analyst Bill Schneider says there could be a Bradley Effect.

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: What that means is white voters essentially lying to pollsters saying they're going to vote for Barack Obama and then refusing to do that.

LEMON: The name comes from former Los Angeles Mayor Tom Bradley who had a huge lead in the polls in the 1982 governor's race in California, only to lose on Election Day. Virginia's first black Governor Douglas Wilder won a nail-biter despite polls showing him with a big lead. Some analysts predict Obama could lose up to six points as a result. But others believe a lot has changed in 25 years. And recent elections show voters may no longer hide their feelings.

SCHNEIDER: If there is some racism in this year's election, it's probably already showing up in the polls.

LEMON: And could there be a reverse Bradley Effect? A higher turnout of African-American voters than reflected in the polls could benefit Obama in states like Virginia and North Carolina. And in an election where some voters want to send a message.

SCHNEIDER: If you want to vote for change, a lot of white voters may say we're so fed up with the way things are going, we want a total change in the system. And an African-American candidate looks like an attractive way of making that sentiment, making that statement at the polls.

(END VIDEOTAPE)

LEMON: CNN's political editor Mark Preston is here to help us understand the Bradley Effect.

Mark, will race play a factor when people vote?

MARK PRESTON, CNN POLITICAL EDITOR: You know, Don, really that is the $64,000 question. And right now, we really don't know an answer. It has been 26 years, of course, since that gubernatorial race out in California. I will tell you I've been on the phone with pollsters this evening. Nobody really wants to definitively say that race will be a factor. But this is what is interesting.

I did speak to Steve Hildebrand. He is with the Obama campaign. He was one of the few people who really constructed Obama's electoral strategy, his victory over Hillary Clinton. They don't think it is going to be a factor. They think it's going to be minimal at best. And what they do think as well is that there is going to be a historic turnout of African-Americans. They also think that young voters will come out. So, even if there was a Bradley Effect, they think it would be wiped away. LEMON: It would be countered by that. OK, let's get to the issues now, Mark. John McCain admitted at his Arlington headquarters today that the economy is hurting him. But he is still determined to win. Take a listen to this.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: But we also got across, got to go across Ohio, Pennsylvania, as you know. And I don't have to tell what -- I'm not insulting your intelligence, but Colorado, Nevada, and New Mexico are also going to be important. So we're going to be spending a lot of time. And after I whip his you know what in this debate, we're going to be going out 24/7.

(END VIDEO CLIP)

LEMON: All right. So he is still keeping the faith there, saying, after I, you know, whip his you know what -- but how badly did the economy hurt him? And the question is really, can he recover, Mark?

PRESTON: Yes, absolutely. It's hurt him tremendously. And he even acknowledged that to his supporters today. He said, look, you know, I had been hit by the economy but you know our campaign has been left for dead before. And we have risen back. I will tell you right now we expect a new economic plan out of John McCain tomorrow. At least some more proposals to try to get the economy back on track. But on Wednesday, this is what he needs, Don. He needs a game changer. He needs to change where this campaign is going right now. We didn't see it in the first two debates. He's hoping he can do that on Wednesday.

LEMON: All right, Mark Preston, and another question Mark is how will all of this play in the presidential debate on Wednesday? Mark joins us a little bit later on in this broadcast to preview strategy for you. Make sure you join the Best Political Team on Television Wednesday night on CNN. Barack Obama and John McCain go head-to-head for the last time before you go to the polls.

A John McCain supporter gets some passionate hate mail. Why? Because he's black.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Most of the stuff that I got in the e-mail, like, how can a black man stand up and say, well, you know, what? You know, I happen to be an African-American descent but I am a conservative.

(END VIDEO CLIP)

LEMON: I talked to radio host James T. Harris earlier. And your response was so overwhelming we had to bring him back. We posed your questions to him.

(COMMERCIAL BREAK) LEMON: OK, let's get back to that radio talk show host. James T. Harris is a popular radio host. He is a McCain supporter and he is black. That has put him right in the crosshairs of spirited Obama supporters. Shelley Walcott from our Milwaukee affiliate WTMJ shows us an ugly side to politics.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey, Sambo, maybe Master McCain will let you shine his shoes since you did such a good job licking his boots, boy.

SHELLEY WALCOTT, WTMJ CORRESPONDENT (voice-over): The hate mail started pouring in almost immediately after WTMJ radio host James T. Harris addressed Senator John McCain at this Republican rally in (INAUDIBLE).

JAMES T. HARRIS, NEWSRADIO 620 WTMJ HOST: The next coming debate, it is absolutely vital that you take it to Obama, that you hit him where it hurts. I am begging you, sir. I'm begging you. Take it to him.

WALCOTT: The national media pounced.

HARRIS: I knew something was up when "The New York Times" and "The Washington Post" started asking me questions, and then CNN and then Fox. I'm like, Oh, Lord.

WALCOTT: The clip made heavy rotation on national talk shows, and Harris says he heard from African-Americans across the country calling him an Uncle Tom, a sellout.

HARRIS: Most of the stuff that I got in e-mail, like, how can a black man stand up and say, well, you know what? You know, I happen to be an American of African descent but I am a conservative.

WALCOTT: And he says he has no regrets.

HARRIS: I realized that I'm speaking for millions of people. It just so happens in this racially, emotionally charge election that the people who look like me happen to be on the other side of the aisle.

(END VIDEOTAPE)

LEMON: James T. Harris talked to us by phone in our earlier broadcast and laid out why he is supporting the Republican ticket in spite of all those threats.

(BEGIN VIDEO CLIP)

VOICE OF HARRIS: What have Republicans done for black people? You know what? What have Democrats done for black people? Since we've been given them 99 percent of our votes for the last 40 years, how have things improved? How was the black family better? How is, you know, how are the schools that Democrats run? How have they helped our children?

(END VIDEO CLIP)

LEMON: OK. As you can tell, he speaks his mind and so do you. We have these responses coming in to us. We have some from Twitter, from Facebook and from MySpace. The e-mail, my inbox lit up. OK. So James Harris had to come back. J.T. Harris, and he joins us now.

And you are smiling. But, you know, it's not funny, because you said you have gotten death threats with all of this. And you're concerned about your safety and you don't understand this. Let's get to one of our first responses. This is from Facebook. This is what people are saying. "Don, I think the young man is only out to make a name through the media. James Harris has no basis to be where he is. He is a traitor for real."

One more. "John Harris is stupid and it hurts my ears to hear such words from his mouth. My question is how much did John McCain pay him to sit front row and make such a statement?" That's coming from Ann. There are many, many more of those. How do you respond to that?

HARRIS: Well, I didn't get paid anything. This was something that I just ended up being in this place through a series of events. I'm not a shield for the Republican Party. I'm not paid by WTMJ. I just happen to be there with my beautiful wife. And I had an opportunity to ask a question that obviously was on the hearts and minds of millions of Americans. And I just took that opportunity.

I can't help the fact that I have a radio talk show host. I can't help the fact that I believe in my conservative principles. And I don't see -- I'm really am taken aback by the backlash of -- from the Obama supporters because I happen to have a different view than they do.

LEMON: OK, do you understand it, though, in any way? I'm just asking, do you understand that there is, you know, an African-American man who finally there's a chance for him to become president, and black people are saying what is wrong with this man? What's wrong with you? Why aren't you supporting him?

HARRIS: That's the question that I absolutely just -- listen. Barack Obama is an American of Kenyan descent. And he is on the verge of making history. But for me it's not about color or the color of one skin. It's about ideology. He is a liberal. He's the most liberal senator in the Senate. And I am a conservative. And I don't believe that his vision of America is what's best. And now there are millions of people who feel the way I do. My question is why is it that because I am an American of African descent I have to tow that line?

LEMON: OK, I got to tell you this, too, because there were some people who said -- as we said earlier, I told you this, African- Americans are not a monolithic group. And this is America, you can do whatever you want.

(CROSSTALK)

HARRIS: You said that, but I'm starting to think you are wrong.

LEMON: Whatever you want -- whatever you want to be, you can be conservative, you can be --

HARRIS: Well, Mr. Lemon that's obviously not true.

LEMON: Hang on, let me get this out and I'll get back to you.

HARRIS: OK, sorry.

LEMON: There were some positive responses. There was someone said "To each his own. Being black does not require someone to vote for Obama." And that was from BLKMGK. I guess it would be black magic. That is from Twitter. But also, I have to ask you this. The tone. A lot of people have been saying that the tone that's being brought up by the McCains is inspiring hate speech in some people. How can you support -- and I read one of those comments earlier. How can you support John McCain in light of what's happened lately on the campaign trail?

HARRIS: On the way over here to the studio, I dropped off my son's best friend. He asked me a very provocative question. He said what would happen -- let's just change the situation and say there was a white person, but he said the same thing you did. How would that be played today on CNN? And I stopped the car. I thought that was an amazing question. And the answer is it would be played out through the same comments that representative John Connors made today. We would be -- or the Republicans would be accused of inciting race.

LEMON: OK, James Harris. I will leave it at that. We don't know for sure how it would be played out. But we know how this one is playing out. And we are only the conduit here and we're reading what our viewers responded.

HARRIS: Listen, can I make one more point?

LEMON: I would love for you to make another point, but I can't. Unfortunately, I don't have enough time.

(CROSSTALK)

LEMON: You can send me an e-mail and we'll talk back and forth. All right, thank you very much, James T. Harris. Best of luck to you. We appreciate you coming on to CNN.

HARRIS: Thank you.

LEMON: All right. And brace yourselves, folks. They're here. Political fireworks from the left and from the right. The topic tonight, the race card. What happens when a black man is boastful about his support for John McCain? There you see them. Our radio guys. Hello, guys. We'll see you in a second.

(COMMERCIAL BREAK)

LEMON: All right. With all the back and forth on the campaign trail this weekend, talk radio is going to be a buzz in the morning. I can absolutely guarantee that. I have Chris Plante, conservative talk radio host on 630 WMAL. And on the left, syndicated talk radio host Warren Ballentine.

Hello, guys. Hope you had a good weekend. Good weekend. OK, Chris, I'm going to you first. You heard James T. Harris, and people calling him a sellout. That's the very least of the things that they are calling him. Most African-Americans don't understand why he would be supporting John McCain.

UNIDENTIFIED MALE: It's kind of amazing.

(CROSSTALK)

LEMON: What are you hearing from black listeners on your show -- conservative black listeners?

CHRIS PLANTE, RADIO HOST, "THE CHRIS PLANTE SHOW": Isn't it amazing that, you know, as an African-American, you're required to be a Democrat and vote Democratic. And you're required to vote for the black guy. Imagine if white voters were held to the same standards, and I'm supposed to vote for the white guy. Yes, the answer is yes. I've got lots of black listeners. My show is on Washington D.C. And lots of black Republicans and Christians and people are against abortion and not everybody is going to vote for Barack Obama and everything. But naturally you're called a sellout, because it's the big tent party, right? It's the party of inclusion.

UNIDENTIFIED MALE: It's not --

PLANTE: It's the party of division. It's a party of race, class and gender and of division. And it always has been.

LEMON: All right, Chris, well, let's let Warren get into that. Warren, you heard the comments. He says he is in fear for his life. You heard someone calling him Sambo. They've called him other things -- sellout, Uncle Tom. Are you surprise by the vitriol coming from black people against the black man?

WARREN BALLENTINE, RADIO HOST, "WARREN BALLETINE SHOW": Well, I'm going to say this. I'm not surprised, but I will say this. I don't think anybody should be threatened or called out names for their political beliefs. I think every American has the right to choose whoever they want to choose. Is he a little bit misguided? Obviously, he is. But we can't, you know, wriggling brothers have jobs. And he can always go apply at wriggling brothers. I mean -- but we know that as American, we have a right to choose who we want to vote for. And I think it's ridiculous that anybody is threatening this man.

PLANTE: You know that is so amazing. Imagine if I had the same attitude towards white people that were going to vote for Obama. I would be a racist. Wouldn't that clearly be a demonstration of racism? How dare you vote for Barack Obama, you're a white person?

(CROSSTALK) BALLENTINE: You got to understand something, Chris. You got to understand something. We're talking about now, and I know a lot of people who don't like to hear this argument. But you're talking about oppression from slavery times, to the civil rights, to up to the day. A lot of people like this --

(CROSSTALK)

BALLENTINE: They feel as though that this is an opportunity of a lifetime that they never thought they would see. So, yes, they have their hopes, their dreams and everything fit into this. And that's why when they see people acting that way or behave in that way, they take it more personally than anybody else does.

LEMON: Warren -- all right, Chris, last word?

PLANTE: Acting that way or behaving that way, isn't it amazing? This is the politics of race, my friends. And it's the Democrats, not the Republicans.

(CROSSTALK)

LEMON: Warren Ballentine, Chris Plante, thank you very much. We're not done with you guys yet. This election, will race be the deciding factor on November 4th. We're just going to let them talk, because I'm going to move on. We're going to get back to them. More passionate voices from the left and from the right straight ahead in the NEWSROOM.

But first, the red flag warnings are out in California. A wildfire sends families scrambling for shelter and the winds could kick up. It's not over yet.

(COMMERCIAL BREAK)

LEMON: All right, I want to get you live now to California, where we're keeping an eye on this three alarm fire that's broken out near Fairfield. It's burned about 12 acres. And it's moving really fast along the interstate there. We're bringing you any breaking details when we get to that. And we've been telling you about the wildfires that are also happening out there.

Firefighters are also on the front lines north of Los Angeles. They're making some progress against a raging wildfire that's forced hundreds of people to flee their homes. But the worst could be yet to come here. Our Ted Rowlands is on the scene. He joins us now from Tujunga Canyon.

Ted, what's the very latest? When I spoke to you at 6:00, people were out of their homes and you said it's going to be a while before they get back.

TED ROWLANDS, CNN GENERAL ASSIGNMENT CORRESPONDENT: Absolutely, Don. Because of the forecasted winds tonight, the 450 homes that are under mandatory evacuation will remain under a mandatory evacuation throughout the night tonight. The earliest that these folks, about 1200 of them can go back to their homes would be tomorrow at some point. The reason for that is although firefighters are very pleased with their work today, they are also very worried about what lies ahead this evening.

Forecasters are expecting winds up to 55 miles per hour, gusts, that is. Santa Anas, and those Santa Anas will be sustained winds, which is a real problem. We're talking about active fire here. 2000 acres burned. Only one home lost. But 2,000 acres burned. They've got it about 20 percent contained right now, and it's laying down right now.

However, when these winds do kick up, if they could kick up as they're forecasted, they say it could mean real trouble for firefighters and potentially homeowners.

(BEGIN VIDEO CLIP)

CAPT. MARK SAVAGE, LOS ANGELES COUNTY FIRE DEPT.: We're in the early part of a Santa Ana event. It could last two to three days. So, this could be a bad time to have any starts at all because the weather will only get worse rather than get better. So we're hitting it with everything we have. Luckily, this is the only fire in southern California. So we're able to draw a lot of resources.

(END VIDEO CLIP)

ROWLANDS: And that's a key. Right now, this is the only major fire burning in southern California. But once these winds kick up, it's all bets are off. But 900 firefighters are staged here. You sea the fire trucks going by here. They've been coming in and out throughout the day. They will remain here throughout the night trying to protect these structures, these homes and hoping, hoping, everybody hoping that the winds aren't as bad as they're forecasted to be.

Don?

LEMON: All right, Ted Rowlands, in Tujunga Canyon. Ted, we appreciate your reporting. Karen McGuiness, we want to go to you now. You saw Ted set the scene there. He talked about those winds. They're going to play a major factor. Are they going to kick up?

(WEATHER REPORT)

DON LEMON, CNN ANCHOR: Isn't that something? OK. Karen McGinnis, we appreciate it. Thank you.

Well, listen to this, a campaign worker hears some people say they can't back Barack Obama because he's black. Here's his response.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You know what I say? That is (EXPLETIVE DELETED). That is total absolute (EXPLETIVE DELETED).

(END VIDEO CLIP)

LEMON: More from our panel on the race and racism. (COMMERCIAL BREAK)

LEMON: All right. Checking the latest CNN national poll of polls, a snapshot of where the presidential race stands right now. Barack Obama leads John McCain by eight points, 49 percent to 41 percent. 10 percent are unsure. Those numbers are unchanged from yesterday.

Even with an apparent lead, there's still a major hurdle Barack Obama's got to overcome before November 4.

(BEGIN VIDEO CLIP)

ANDY ZANAGLIO, UNION MEMBER: He flat out said to me, I can't vote for that black boy.

DOUGLAS WARD, UNION MEMBER: When they talk about him being a Muslim, he said countless times that he is a Christian.

GERALD MCENTEE, UNION LEADER: This is (INAUDIBLE) in code. I can't vote for him because he's a black man. He's not one of us. Well, sisters and brothers, when you hear that, you know what you ought to say? This is what I say. That is (EXPLETIVE DELETED). That is total absolute (EXPLETIVE DELETED).

(END VIDEO CLIP)

LEMON: All right. Will this election boil down to race? It is a discussion we have engaged in all weekend because they have been talking about it on the campaign trail. This has happened this weekend. And late last week, we told our viewers about the Bradley effect and all of these things.

OK. So, let's bring in on the right, conservative talk radio host on 630 WMAL, Chris Plant. And on the left, Warren Ballentine, a radio host as well and the people's attorney, a truth fighter. That's what he says on his radio show.

OK, guys, you heard all of these things -- I can't vote for him because he's a black boy. I don't know if you saw this weekend, when you saw the lady at a McCain rally calling Barack Obama a Arab and McCain was visibly disturbed about it and responded to it. Chris, did you see that?

CHRIS PLANTE, HOST, "THE CHRIS PLANTE SHOW": Yes, I did. You know, people have said some inappropriate things. I don't think there's any doubt about. Barack Obama is not an Arab. His name has Arab roots. He said it himself. He's not an Arab. He's not a Muslim. He's the most liberal member of the Senate. Clearly, there are people who still have problems with race in this country and in every country in the world, by the way. It's not unique to our country.

And for some people it's going to be an issue. And that is obviously terribly unfortunate. You should not vote for Barack Obama for the right reasons -- because he's the most liberal member of the Senate, because he has no resume, because he hangs out with very shady characters and anti-American types. And, you know, William Ayers and Bernadine Dohrn in 20 years...

LEMON: OK. You bring up a very good point. Hang on Warren. Let me talk to him about this. You bring up a very good point when you mention that because of -- you were getting people at -- hearing people at these rallies calling Barack Obama a terrorist saying off with his head.

We saw some video of someone bringing a caricature and I'll put it at that of Barack Obama, unfavorable caricatures, to those campaign events as well. Do you think that the McCain campaign, may be unwittingly, is fueling a lot of this hatred?

That's for Chris, that's for Chris. Hang on Warren.

PLANTE: You know, I got to tell you, no, I don't think they're fuelling hatred. I think that it's a very heated political season and if he was a white liberal, it would be the same thing. I've been to lots of rallies where George Bush was burned in effigy, where Dick Cheney is (INAUDIBLE), where, you know, Nazi arm bands on George Bush.

Who's fueling that? Who's been fueling that for eight years? And also, politics gets heated and, you know, I mean, look what the left has done to Sarah Palin. Look what they've done to Karl Rove. Look what they've done to George Bush...

LEMON: And you bring up a very good point. A racist (ph) doesn't help untying McCain to the Keating 5 as well, does not help either.

PLANTE: Charles Keating was a banker not a terrorist.

LEMON: Your point is well taken. So, let's get Warren.

WARREN BALLENTINE, RADIO HOST, "WARREN BALLENTINE SHOW": You know, this is comical to me. I'm going to tell you why this is comical to me. Because we're talking about somebody who has character versus somebody who is a character. And John McCain is nothing more than a character. This man has no clue what's going on. And you want to talk about William Ayers and everything else. Let's look at Sarah Palin and her husband Todd Palin, who was part of this separatist group who want to take Alaska out of the wilderness.

(CROSSTALK)

BALLENTINE: And that's been proven to be true up until 2002.

LEMON: Both of you stop it. I need to get this in because I want to go to our viewers. This is from Facebook. Take a look at this. This is Candice. Candice says, "It is very obvious that McCain is showing two faces when it comes to smearing Obama. The rage his campaign has instilled in his constituency regarding Obama being a Muslim."

Chris? PLANTE: Please, Please. Being a Muslim, my butt. Nobody in the campaign has done anything of the kind. The statements that were made about the separatist movement is false...

BALLENTINE: Chris, John McCain called a U.S. senator that once. He called a U.S. senator that one. He may as well has said you people. He disrespected him and he was a U.S. senator.

(CROSSTALK)

LEMON: All right. Both of you guys...

PLANTE: This is not a playground slap down...

BALLENTINE: Hey, Chris, I'll send you the code book so you'll understand why black Americans feel the way I do. I'll send you the code book.

(CROSSTALK)

LEMON: I'm going to leave both of you talking but, guys, it's been a great conversation.

PLANTE: Todd Palin was not a member of the separatist movement.

BALLENTINE: No, he just wanted to get Alaska out of the United States.

LEMON: The "A" makes a comeback on the campaign trail and Sarah Palin is using it, but is anyone listening to her about abortion?

Plus, a warning for you. We're going to preview a shocking documentary. It takes us inside the dark world of child prostitution, children as young as 3 years old.

(COMMERCIAL BREAK)

LEMON: We have this just in to the CNN NEWSROOM and it's very interesting because we have been discussing all weekend the issue of race and presidential campaigns, and everybody seems to have an opinion, even former Cuban President Fidel Castro. We're just getting these new comments just coming in from him tonight. It is published in Cuban state media. Here's what he said.

"There is profound racism in the U.S. and that will keep millions of Americans from voting for Barack Obama." He goes on to say, "Racism is deeply rooted in the United States, where the minds of millions of people can hardly reconcile with the notion that a black man with his wife and children could live in the White House which is precisely called white."

And that just came in, just crossing the wires into the CNN NEWSROOM. Political editor Mark Preston, help me make some sense of all of this.

MARK PRESTON, CNN POLITICAL EDITOR: Well, Don, I mean, clearly, Fidel Castro has been rather irrelevant, I guess, in the last year, year and a half. And what he's done here is that he's just trying to roll a hand grenade right into the presidential election. You know, he wants to be a disruptor. You know, he wants to get his name out there. And quite frankly, what he's doing is he's become one of these independent 527s unto himself. You know, he is a disruptor. And that's what he can be known by.

LEMON: All right. Again, and as I said, let's move on, Mark, and make some sense of all of this. Because it gets really heated when you start talking about racial issues. And again, all of this played out on the campaign trail this weekend. So, as we look forward to this presidential debate, do we expect to hear these topics come up?

PRESTON: You know, probably not. And the reason being is that John McCain, you know, I believe true in his heart, is not a racist. In fact, it was six, seven months ago when he said, you know, who are some of the people he most admired, who he would turn to, he said John Lewis, who is the liberal congressman from Georgia but also the civil rights giant.

Look, John McCain doesn't need this. It's actually bad for his campaign. And, certainly, Barack Obama doesn't want to bring this into the race. He's not running on his race. He's really just trying to run for president.

LEMON: OK, Mark, let's get to some issues now that the American people are interested in. They are interested in race. But let's get to some other issues as probably a better way of putting it. Sarah Palin out on the campaign trail. She is really making some very strong remarks about abortion. Take a listen.

(BEGIN VIDEO CLIP)

GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: Senator Obama is a politician who has long since left behind even the middle ground on the issue of life. He sided with those who won't protect a child born alive. And this exposes the emptiness of his promise to move beyond the old politics. So, ladies and gentlemen in both parties, Americans have many concerns to be weighed in the votes that they cast on November 4th.

(END VIDEO CLIP)

LEMON: Mark, we haven't heard strong language like that from a candidate in quite a while on this issue.

PRESTON: No, absolutely not. And look, where she made that speech, Don, was out in western Pennsylvania in Johnstown. It's a very conservative area. And look, Sarah Palin, when she was selected by John McCain to be on the ticket, she was supposed to help energize the base and she has done that. When you talk about abortion, you are energizing the base. 21 electoral votes in Pennsylvania. John McCain needs to win it to win the White House.

LEMON: OK. Mark, is it fair to say, I mean, obviously, she's doing all the talking on this. John McCain really not saying much. Talking about judges and what have you. Is it a fair guess to say that he's going to stay away from this on Wednesday?

PRESTON: Yes, absolutely. Abortion has never been in his round house. He doesn't like to talk about it. He does talk about putting constructionists on the court. But the fact is, when John McCain meets up with Barack Obama in the final debate, John McCain is reaching out to independents. He already has the base. That's what Sarah Palin does for him.

LEMON: All right. Political editor Mark Preston. Mark, we appreciate it. Busy week for you coming ahead. Have a good night.

PRESTON: You too.

LEMON: All right. Wednesday night is McCain and Obama's final presidential face-off. Don't miss a minute of this action Wednesday night live on CNN, your home for politics.

Here's another sign of just how tough times have gotten. Profits are on the rise for thrift stores and garage sales.

(COMMERCIAL BREAK)

LEMON: The fear gripping Wall Street has rippled all across the country. Folks are looking to save money any way that they can. It is a segment we call "Real Cause, Real Effect." Check this out. Large discount stores like Wal-Mart, Costco and others are weathering the economic downturn better than other retailers. Many report a sharp increase in sales, especially for low-priced groceries, clothes and other necessities.

And it's not just discount retailers. Thrift stores and consignment shops say business is booming. One Salvation Army store in Dublin, Georgia reports a 50 percent spike in sales with more and more upper middle class customers.

It's not your imagination. A lot more households are turning to garage sales. It's really a win-win for them. Strapped homeowners get much needed cash while clearing out the clutter and buyers scoop up great bargains. The secret to the successful sale -- don't charge too much, let folks get a bargain. "Real Cause, Real Effect." CNN will keep bringing you the stories of how the economic crisis is affecting people all over this country.

And as we head into the holiday season, it's looking less and less likely that shoppers will bail out troubled retailers. Our Stephanie Elam gets down to business.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN CORRESPONDENT (voice-over): It was a brutal week for Wall Street. The Dow plunged below the 10,000 level. This plunged again, falling below the 9,000 mark and then again going below 8,000 before rebounding. Nervous consumers cut back on discretionary spending. This week, dismal September sales numbers from major retailers like Gap and the parent company of TJ Maxx and Marshall stores hint at a bleak holiday shopping season. Last week's retail sales report from the Commerce Department is expected to reflect even more belt tightening.

Another reason shoppers may be staying home? Inflation. Forecasters say the Labor Department's upcoming producer and consumer price indices will show wholesale and retail prices are creeping up.

People aren't taking vacations either and fewer passengers mean fewer flights. Industry tracker OAG predicts the number of U.S. domestic flights will drop nearly 11 percent in the fourth quarter

(END VIDEOTAPE)

ELAM: But if you're planning to travel during the holidays, experts recommend you book your trip early while seats are available. That's this week's "Getting Down to Business." I'm Stephanie Elam, CNN, New York.

LEMON: OK. Thanks, Stephanie. You know, we have a warning for you. When we come back, it is a story so disturbing you may not want your young ones in the room for this. It is a gritty documentary that takes us inside the dark world of child prostitution. Children as young as 3 years old sold for sex.

(COMMERCIAL BREAK)

LEMON: OK. So, before I get into this next story, again, I want to warn you, it is graphic, disturbing and it is tragic. An underage sex trade where children as young as 3 are sold into prostitution. It is all featured in a documentary that's out in theaters right now. Our Kareen Wynter has this story and again the details are hard to watch.

(BEGIN VIDEOTAPE)

VOICE OF UNIDENTIFIED MALE: You can do yum yum?

UNIDENTIFIED CHILD: Yes, good.

VOICE OF UNIDENTIFIED MALE: And good? You're good?

KAREEN WYNTER, CNN CORRESPONDENT (voice-over): These shocking images offer a window into a world many may not know exists.

What's your name?

UNIDENTIFIED CHILD: (INAUDIBLE)

JUSTIN DILLON, DIRECTOR, "CALL & RESPONSE": This is a new trade in human beings.

WYNTER: Modern-day slavery is it's called involving the sex trade or forced labor. A new documentary called "Call and Response" includes undercover video taken in places like the gritty brothels of India and Cambodia.

DILLON: People are used -- used up rather quickly. For instance, in the sex industry, what makes slavery modern there is AIDS. You have a time line on how long can you use a human being. And then when they're done, you just find another one.

WYNTER: Musician and first time filmmaker Justin Dillon documented the alleged abuses happening around the world after witnessing trafficking firsthand while touring overseas.

DILLON: I would meet girls all over the place who were getting these offers to come to the United States or come to the West for jobs in domestic work and a completely bogus.

WYNTER: According to the State Department, here in the U.S, roughly 17,500 people are trafficked each year for forced prostitution or labor. The United Nations estimates worldwide more than 12 million people are thrust into this elicit trade.

JULIA ORMOND, PRESIDENT, ASSET CAMPAIGN: They live under constant threat of violence, under constant threat or actual sexual abuse. They are given only enough food to sustain them.

WYNTER: Actress and U.N. goodwill ambassador Julia Ormond is one of the many voices in the documentary, along with prominent musicians, former U.S. Secretary of State Madeleine Albright and "New York Times" columnist Nicholas Kristof who investigated conditions in Cambodian brothels.

NICHOLAS KRISTOF, "NEW YORK TIMES" COLUMNIST: These are girls. These are 12-year-old girls, 13-year-old girls who have been kidnapped and they were being held against their will and their virginity was being sold to the highest bidder.

WYNTER: Despite the magnitude of the problem, some see ways of attacking it.

ORMOND: The solutions are either in rehabilitating victims with education and giving them income skills. It's also in providing traffickers in situations of poverty with another alternative income.

WYNTER: Justin Dillon also is encouraged that a growing 21st century abolitionist movement featured on the film's website will inspire others to act.

DILLON: Whether it's giving, whether it's being involved in our slave-free initiative. People can actually make a difference.

WYNTER: Kareen Wynter, CNN, Hollywood.

(END VIDEOTAPE)

LEMON: "Call and Response" open Friday in 16 cities including Los Angeles, Boston and Chicago.

It is "Issue # 1." Some major overseas markets opened on a positive note just a short while ago. Tomorrow morning, all eyes will be on Wall Street. We'll update you.

(COMMERCIAL BREAK)

LEMON: All right. Here's what we're doing for you right now. We are watching the Pacific trading markets right now. As you know, if you've been watching the top of this broadcast, most of them opened sharply higher. That is an encouraging sign that Wall Street will also open positively tomorrow. Hopefully, in positive territory.

We're also watching the U.S. national debt, now growing an astounding $3 billion a day according to the debt clock in Times Square or in New York City, I should say. It added $150 billion since October 1st. Other debt clocks such as this one from zbacks.com, well, puts the national debt much higher than that, $10,295,000,000,000. It uses a different method to calculate the debt here.

It's been a very interesting evening for us as it concerns the economy and also out on campaign trail. Interesting story about race playing out this weekend and also about the economy. We'll be checking that for you all throughout the night. Make sure you join Kiran Chetry and John Roberts tomorrow morning, 6:00 a.m. Eastern for "American Morning." They'll host that show out of New York City.

Meantime, at the CNN world headquarters in Atlanta, I'm Don Lemon. I'll see you right back here next weekend. Have a good night.