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Dow Stocks Surge; President Bush, Italian Prime Minister Hold Joint News Conference; McCain, Palin Stump in Virginia

Aired October 13, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Monday, October 13th, Columbus Day. And here are the headlines on CNN.
Stock surge out of the gate. The Dow looks for its first winning day this October.

Three weeks and a day to go. The McCain/Palin ticket plays catch-up. See their rally live this hour.

Politics of black and white. Will race be a factor for Barack Obama in a key battleground state?

Good morning, everyone. I'm Tony Harris.

And you are in the CNN NEWSROOM.

You know, one trader calls it the relief rally. After its worst week ever, Dow stocks are shooting up like a rocket this morning.

CNN's Christine Romans with the numbers for us.

Christine, good to see you. It looks like some investors snapping up the bargains out there.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Or there just aren't so many sellers today as there were last week, Tony.

HARRIS: Yes.

ROMANS: A "relief rally" one of those terms on Wall Street that people throw around after you have had markets down so strongly. Sometimes it doesn't even take any news to have a relief rally. But there's plenty of news today.

A lot of folks are talking about what they see as coordinated global efforts to shore up the financial system. Until now, there had been some concerns that much that had been happening was kind of ad hoc, a little of this, a little of that. Now they're saying they feel as though maybe there's going to be a global approach here and that it's going to work.

And among the things that they really like to see is the recapitalization of the banking system. It's something we're talking about here in the U.S. and something that the British banking authorities have already been doing.

But let's put this rally in a little bit of perspective.

The Dow up 459 points. So rare to see a triple-digit move on the upside. But this comes on the heels of a horrific week for stocks.

The Dow down 18 percent last week. The Nasdaq down 15 percent. The S&P 500 down 18 percent last week. The Dow over eight days lost 2,400 points.

HARRIS: Boy.

ROMANS: I mean, it's almost incomprehensible that you're talking about so many triple-digit declines back to back to back to back. So, a relief rally is what you're seeing here.

What everyone is asking about is, is it the bottom? Is it some kind of a new trend? It's just one day. A lot of people want to see how the global central bankers...

HARRIS: Yes.

ROMANS: ... and the global governments, what kind of solutions that they are going to be able to forge through and whether they're going to work. We've got to still see if the credit market can thaw out.

HARRIS: That's my question right there, Christine, because we're often told by you and others on our money team to -- you know, to, all right, pay attention to what's happening with the Dow and the stocks. But that's the sideshow. The real show is what's happening with credit markets.

Any signs that the credit market is starting to fall a bit?

ROMANS: Little cracks here and there, but nothing to write home about. I mean, that's what everyone is talking about this week.

HARRIS: Yes.

ROMANS: Will it be a complicated week if you don't start to see some real falling there?

Something interesting, Tony, that the Fed did. The Federal Reserved announced that it was going to give an unlimited amount of loans to three foreign central banks to help them lend money to private financial institutions and the like. And as much as money as they want the Fed is going to lend to the Bank of England, the European Central Bank, and I think the Swiss Central Bank.

That's one of the many, many things that are just unprecedented that policymakers are doing, trying to free up the money to get the global system working properly again. So we just have to be patient and wait to see if it works.

HARRIS: Where is this money coming from?

Christine, good to see you. ROMANS: So much money it's mind-boggling.

HARRIS: It is. It is.

Thanks, Christine.

You know, he is the man in charge of the $700 bailout. Thirty- five-year-old Neel Kashkari says the federal government is moving quickly to put the plan in action.

(BEGIN VIDEO CLIP)

NEEL KASHKARI, ASSISTANT TREASURY SECRETARY: Treasury is implementing its new authorities with one simple goal: to restore capital flows to the consumers and businesses that form the core of our economy. Achieving this goal will require multiple tools to help financial institutions remove illiquid assets from their balance sheets, as well as attracting both private and public capital. Our toolkit is being designed to help financial institutions of all sizes so they can grow stronger and provide crucial funding to our economy.

(END VIDEO CLIP)

HARRIS: One specific step Treasury is taking today, officials are talking with specialty law firms about the nuts and bolts of buying bank stocks.

The Federal Reserve is blessing Wells Fargo's purchase of Wachovia. Citigroup had a deal to buy Wachovia with government backing, but Citi bowed out last week, saying instead it will sue Wells and Wachovia for breach of contract. The Fed expects the bank buyout to close in as little as five days.

President Bush hosting Italian Prime Minister Silvio Berlusconi at the White House. The two leaders are gearing up any moment now for a live news conference in the Rose Garden. Mr. Berlusconi, as you know, is a close U.S. ally in the Iraq war.

The global financial crisis certainly now the focus of their discussion. And again, this all comes just 100 days to the end of President Bush's term in the office.

A live picture now of the Rose Garden. And I believe we're just seconds away. There you see the two men. The two leaders now walking to the microphones. President Bush and Italian Prime Minister, Italy's Prime Minister Silvio Berlusconi to issue a statement.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES OF AMERICA: Prime Minister Berlusconi and I just had a very good discussion. That's exactly the kind of meeting that you would expect when good friends get together.

Mr. Prime Minister, I appreciate your leadership. I want to thank you for your gracious words earlier today. I want to thank you for giving American people the honor of celebrating Columbus Day with the leader of Italy. For more than 60 years the United States and Italy have worked together to strengthen transatlantic alliances and to help freedom expand across Europe. Today we're addressing global challenges with determination, vision, and with confidence.

America and Italy are working to stabilize global financial markets. People all over the world are understandably concerned about the global financial crisis and about how it will affect their families and their businesses. I appreciate Italy's participation in the meeting of the G-7 and G-20 finance ministers over the weekend. Both the G-7 and G-20 issued important statements, committing to work together to help resolve the crisis.

I welcome the bold and specific follow-up actions by European nations to pursue the G-7 action plan. And the United States is also acting, and we will continue to implement measures consistent with the G-7 action plan to help banks gain access to capital, to strengthen the financial system, and to unfreeze credit markets and restore confidence in our financial system.

These are tough times for our economies. Yet, we can be confident that we can work our way through these challenges. And America will continue to work closely with the other nations to coordinate our response to this global financial crisis.

America and Italy are working with other nations to fight terror and maintain stability and secure their democratic future. More than 8,300 Italian troops are deployed in regions of conflict around the world. They're helping to fight extremism, and to defend liberty and give more people a hope of a better future.

About 2,100 Italian troops are supporting the NATO mission in Afghanistan. Italy leads Regional Command West, as well as a provincial reconstruction team. I appreciate the prime minister's willingness to modify strictness on where Italian forces can operate in Afghanistan.

Italy has deployed Carbanari (ph) to support the NATO training mission in Iraq. They're doing a fine job. These are highly professional, highly skilled folks that are helping the Iraqi people.

In Lebanon, Italy is the single largest contributor to the United Nations' peacekeeping mission. We discussed the need for Syria to respect Lebanon's sovereignty, to cease its support for terror, and to open full diplomatic relations with Lebanon's elected government.

Italy has deployed more than 2,300 troops to maintain stability in the Balkans. Our two nations support an independent and democratic Kosovo. And we're working to ensure that the new European Union mission deploys throughout that country. We agree that all Balkan nations should be invited to join the EU and other transatlantic institutions as they qualify for membership.

We discussed Iran. And we agree that Iran must not be allowed to have a nuclear weapon. We discussed the importance of full implementation of the United Nations' sanctions on the regime in Tehran.

America and Italy are working closely to end the conflict in Georgia. We firmly support Georgia's democracy and sovereignty and territorial integrity.

The United States and the EU agree that the territory of Georgia includes the regions of Abkhazia and South Ossetia. We're working to meet the humanitarian needs of the Georgian people and help displaced families return to their homes.

To earn the respect of the international community, Russia must show respect for the sovereignty and territory of its neighbors. Russia must accept the responsibilities and obligations of international leadership.

Mr. Prime Minister, Laura and I are looking forward to our dinner with you tonight. We look forward to celebrating the enormous contributions that the sons and daughters of Italy have made in America. And we look forward to honoring the strong alliance that binds our two nations together.

Welcome.

SILVIO BERLUSCONI, PRIME MINISTER, ITALY: (through translator): Thank you.

Thank you very much, Mr. President. Thank you for this extraordinary invitation.

My presence in Washington today is also the tribute of a friendship, a personal friendship which binds me to President Bush, as well as the friendship between our two people. And the fact that I'm here on the official celebration of Columbus Day gives me the opportunity of paying homage not only to America, but also to Italian- Americans.

I give also thanks to that America which has welcomed us and made them part of this country. We also thank you for the opportunity to enjoy welfare, wealth, and also the opportunity to give a contribution which I think has been an important one.

Many of the Italian-Americans now are leading the country. They're a seat in Congress and the Supreme Court in the state governments, and key roles of its administration, the administration of the biggest democracy in the world.

Our two countries have tackled together all too recently the challenges and the problems. Our friendship is a special friendship which has its roots in common values in sharing a world which is inspired by love for democracy and freedom.

This is the deep meaning of this bond. Not only a personal bond, which I have for President Bush, but also the bond which unites our two countries and our two peoples. Today, more than ever, values do matter in a moment when two visions, opposing visions of the world, are confronted -- the vision of ignorance, of prevarication, violence on the one hand, and the vision of freedom, of respect, of rights and equality of all human beings on the other side.

Over these years we have shared difficult moments, the tragic September, 9/11, which has changed the world. We have been called upon to tackle difficult challenges, being aware of the fact that enemies must be defeated with every means available, with the strength of our beliefs, and our heritage of ideals.

The globalized world continues to test us by submitting us to bigger and new challenges. And we can't (ph) give concrete answers to these challenges.

And once again, it was the fact that being concrete and the efficacy of the actions we agreed upon which is helping us to solve one of the most recent crises which have affected our countries, the financial crisis, which we must absolutely prevent from being a crisis affecting real (ph) economy as well. Upon indication of the other leaders of the countries, which in Europe share the same currency, I reported and briefed President Bush about what we decided yesterday during the summit meeting of the Euro area countries.

This proposal will be then submitted to the European Council meeting, which will be on Wednesday. And I also informed President Bush that today at 3:00 in various countries, Germany, U.K., Italy, France, council minister meetings were held which have concretely implemented through low regulations provisions the decisions which were made yesterday in order to support really economy, in order to make it possible for liquidity to be guaranteed to our banking systems so that banks can continue to play, and to play their role, and do the job. That is, support investments by businesses and companies, and support consumption.

I think this is really the objective we must pursue with a coordinated and concerted action. That is, what has been developed over the world, in the world of markets, which have moved away from reality, should not affect the reality of economies. And the concerted and common action between the United States and Europe will certainly have chances to make the real economy -- to prevent real economy from being affected by what has happened all over the world in the financial markets.

So we'll continue to work together. President Bush has also expressed the intention to have a meeting among the leaders in -- within the GLICK: -8 in the next few weeks. I absolute agree with him. I think that everything which can be done for a coordinated action just to pursue a common method and behave the same way versus this global crisis is something which is positive.

I would like to close my statement by telling President Bush and expressing my appreciation, my friendship, my congratulations, and my love and esteem. I've been working with him very well. There has never been a moment when I saw in him interests which are not general interests.

I never saw biased interests. There has never been a moment when I saw in him something different from a very sincere and pure feelings and sentiment. He is a person -- he is a man of vision. He's an idealist. And also, he has the courage of implementing what he believes is right, what he thinks needs to be done to pursue the deals that he considers right for himself, his people, and the world. The United States has taken over the responsibility of taking care of the world.

I would like to express a special thanks to President Bush and to his people for what America and the United States have been doing over these years. And not only they save us, save Europe from communism many years ago, but also, the United States has helped us to achieve welfare, wealth and well-being.

They were next to us over the Cold War years. Every time (INAUDIBLE) in the world, the United States sends its troops, paying a very his price in terms of human lives, to guarantee freedom not only for the United States, but for the rest of the world as well. And I think we -- all Europeans think we must be grateful to the United States for this.

We must be grateful to the American people. We must (INAUDIBLE) the sacrifices, and the sacrifices of so many lives. And we have to state (ph) and say that never, ever the U.S. troops continued to stay in countries where they had intervened to help people save their lives. So they didn't (ph) have a stake there to occupy out of interest. And this has to be remembered by all Europeans.

Thank you, Mr. President. Thank you for being here. And believe me, believe me that my feelings are shared by the great majority of Italians and European citizens as well.

Thank you very much. Thank you again.

(APPLAUSE)

HARRIS: All right. And there you have it, the joint statement from President Bush and the Italian prime minister, Silvio Berlusconi, allies in the Iraq war, and now working closely together on finding solutions to the global financial downturn.

There you have it, a statement at the White House Rose Garden.

You know, we're hearing Treasury and Fed, the Treasury Department and the Federal Reserve, are set to meet later today and work out the final details of that $700 billion bailout plan. We will check in and get the latest details on that.

And the Republican ticket is on the campaign trail in Virginia this morning. Virginia Beach, to be a little more precise. And we're hearing the economy is John McCain's focus. We will go there live when he steps to the podium in minutes, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: What do you say we get back on the campaign trail right now? Virginia Beach, and there is Sarah Palin. John McCain will be speaking shortly.

But let's listen in to the Republican vice presidential candidate, Sarah Palin.

(JOINED IN PROGRESS)

GOV. SARAH PALIN (R-AK), VICE PRESIDENTIAL CANDIDATE: Wow. Virginia Beach, this is so beautiful. So filled with good, hardworking, patriotic Americans. No place I'd rather be.

Thank you.

(APPLAUSE)

PALIN: You know, this election is going to come right down to the wire here. And it's pretty clear that the road to victory in 2008 is going to run right through the Hampton Roads. We're counting on the people of America's first region to help us send John McCain to the White House.

(APPLAUSE)

Virginia, are you ready to help carry the state to victory?

(APPLAUSE)

Are you ready to make John McCain the next president of the United States?

(APPLAUSE)

And are you ready to shake things up in Washington?

(APPLAUSE)

Very good to be here in the home of the Naval Station Norfolk and the Naval Air Force Station Oceana. It's good to be here because it's always a special day when I get to visit a Navy town with Senator John McCain, who served our country so honorably as a naval aviator.

(APPLAUSE)

John served our nation in uniform for 22 years. He spent five and a half years as a POW.

I know we have people in this crowd today, too, serving or who have served our country in the past. Would you do us a favor? Those of you who have served or are serving now, raise your hand and let us thank you.

We thank you guys.

(APPLAUSE)

Thank you, guys. Thank you.

We thank you for your service and your sacrifice. Thank you.

You know, for a campaign that says it's all about the future, our opponents sure do a lot of talking about the past and pointing fingers in the past. That strategy is finally wearing a little bit too thin.

Enough is enough. They look to the past because that's where you find blame. We are joining you in looking to the future. That's where we find solutions.

(APPLAUSE)

AUDIENCE: Nobama! Nobama! Nobama! Nobama!

PALIN: We know that all across America right now there's a lot of anger. There's anger about the insider dealing of lobbyists and anger about the greed on Wall Street. And anger about the arrogance of the Washington elite. And anger about voter fraud.

(APPLAUSE)

America -- America, let John McCain turn that anger into action.

(APPLAUSE)

See, as a senator, John has Congress fronted the corrupt ways of Washington, and the wasteful spending and the abuses of power. As president, he's going to end those once and for all.

(APPLAUSE)

John's economic recovery plan will help families keep their homes, and help retirees keep their savings, and help our students pay for college, and help all of us afford health care. And to get this economy back on the right track, we need John McCain's economic plan.

(APPLAUSE)

He's got the guts to confront the $10 trillion debt that the federal government has run up, and we will balance the federal budget by the end of our term. And we will bring tax relief to every American and every business so that business owners can hire more people. That's how jobs are created. Yes.

(APPLAUSE)

In a McCain/Palin administration, we're also going to set this nation firmly on a path towards energy independence.

(APPLAUSE)

We do need to. We need to drill here and drill now. We need American energy resources.

(APPLAUSE)

AUDIENCE: Drill, baby, drill! Drill, baby, drill! Drill, baby, drill!

PALIN: Drill, baby, drill. That's right. You're right. Drill, baby, drill. And mine, baby, mine.

(APPLAUSE)

We need American energy resources brought to you by American ingenuity and produced by American workers.

(APPLAUSE)

In this great community and in so many places like it, all that working people are asking for is, government, be on our side so that we can have a good job in our own hometown. And now with more taxes and a pro-growth agenda, and serious reform and spending under control in Washington, we are going to get this economy moving again. I promise you that.

(APPLAUSE)

Virginia, on November 4th it's going to come down to what we believe in. And what John McCain and I believe in is what Ronald Reagan believed in.

(APPLAUSE)

We believe in the forward movement of freedom, not in the constant expansion of government. And we believe that the best of America is not gathered in Washington, D.C. It's found here in the kindness and the courage of everyday hardworking people who run our factories and grow our food and fight our wars, those who protect us and protect the virtues of freedom.

(APPLAUSE)

We so believe in the promise of this country and all the opportunities that we wish for ourselves and each other, for our sons and for our daughters. And we still believe that America is that shining city on a hill. And we have a man ready and worthy to lead it, someone who inspires us with heroic and trustworthy deeds and not just words.

(APPLAUSE)

So, Virginia, you're going to hear from now until Election Day, our opponents are going to go on and on about how they'll "fight for you." But since he won't say it on his own behalf, I'm going to say it for my running mate here, there is only one man in this race who has ever really fought for you.

(APPLAUSE)

He is the only man with the courage to keep on fighting for you, and it is my pleasure to get to introduce you to the next president of the United States, John McCain. And God bless you.

(APPLAUSE)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Thank you. Thank you. Thank you.

Isn't this a great vice president of the United States? Sarah Palin. I'm so proud to be --

(APPLAUSE)

My friends, I can hardly wait to introduce her to Washington, D.C. and the people who will know that times are going to be different and change is coming. And change is coming. Thank you.

(APPLAUSE)

Hank Williams, Jr., thank you for the highlight of the program. Thank you so much --

(APPLAUSE)

I'm very grateful.

Two of my old, dear, and good friends George Allen and John Warner are here today. Thank you both George and John for your service.

(APPLAUSE)

My son, Doug McCain, who lives here at the beach, and may I remind you that many years ago, as a fresh young pilot out of pilot training, this was my first duty station, and it's almost like coming home. And I'm so glad to be back.

(APPLAUSE)

And the great honor of my life was being able to serve my country in good times and in bad. And I will always look back on those who I knew in my service in the military as those who I knew best and loved most. I'm grateful to be back. And thank you for such a huge turnout here today. We are very grateful.

(APPLAUSE)

Three weeks from now you will choose a new president. Choose well. There is much at stake my friends. I've got to give you some straight talk -- what you know. These are hard times -- these are hard times, my friends. Our economy is in crisis. Financial markets are collapsing. Credit is drying up. Your savings are in danger, and your retirement is at risk. Jobs are disappearing. The cost of health care, your children's college, gasoline and groceries are rising all the time with no end in sight, while your most important asset, your home, is losing value every day.

Americans are fighting in two wars. We face many enemies in this dangerous world, and they're waiting to see if our current troubles will permanently weaken us. The next president won't have time to get used to the office. He won't have the luxury of studying up on the issues before he acts. He will have to act immediately.

(APPLAUSE)

And to do that, he will need experience, courage, judgment, and a bold plan of action to take this country in a new direction. We cannot spend the next four years, as we have spent much of the last eight, waiting for our luck to change. The hour is late, our troubles are getting worse, our enemy's watch.

We have to act immediately. We have to change direction now and we have to fight. And you and I know how to do that.

(APPLAUSE)

I've been fighting for this country since I was 17 years old, and I have the scars to prove it.

(APPLAUSE)

If you elect me president, I will fight to take America in a new direction from my first day in office until my last. I'm not afraid of the fight. I'm ready for it.

(APPLAUSE)

I'm not going on the spend $700 billion of your money just bailing out the Wall Street bankers and brokers who got us into this mess. I'm going to make sure we take care of the people who are devastated by the excesses of Wall Street and Washington. My friends, I'm going to spend a lot of that money to bring relief to you. And I'm not going to wait 60 days to start doing it.

(APPLAUSE)

I have a plan to protect the value of your home and get it rising again by buying up bad mortgages and refinancing them so if your neighbor defaults, he doesn't bring down the value of your house with him.

(APPLAUSE)

I have a plan to let retirees and people nearing retirement keep their money in their retirement accounts longer so they can rebuild their savings. I have a plan to rebuild the retirement savings of every worker. I have a plan to hold the line on taxes and cut them, and make America more competitive --

(APPLAUSE)

-- and create jobs here at home. Raising taxes makes a bad economy much worse. Keeping taxes low creates jobs, keeps money in your hands, and strengthens our economy.

(APPLAUSE)

My friends, the explosion of government spending over the last eight years has put us deeper in debt to foreign countries that don't have our best interest at heart. It weakened the dollar and made everything you buy more expensive. If I'm elected president, I won't spend nearly a trillion dollars more of your money on top of the $700 billion we just gave the Treasury secretary as Senator Obama opposes.

AUDIENCE: No-bama! No-bama! No-bama! No-bama!

MCCAIN: He can't spend that much without raising your taxes or digging us further into debt. I'm going to make government live on a budget just like you do.

(APPLAUSE)

I'll freeze government spending on all but the most important programs, like defense, veterans care, Social Security and health care, until we scrub every single government program and get rid of the ones that aren't working for the American people.

(APPLAUSE)

I will veto every single pork barrel bill Congress passes. I will make them famous. You will know their names.

(APPLAUSE)

If I'm elected president, I won't fine small businesses and families with children as Senator Obama proposes to force them into a new, huge, government-run health care program. I won't keep the cost of the fine a secret until I hit you with it. I'll bring down skyrocketing costs of health care with competition and choice to lower your premiums, make it more available to more Americans.

(APPLAUSE)

I'll make sure you can keep the same health care plan if you change jobs or leave a job to stay home. I will provide every single American family with a $5,000 refundable tax credit to help them purchase insurance, workers who already have health care insurance from their employers will keep it and have more money to cover costs. Workers who don't --

(APPLAUSE)

-- and workers who don't have health insurance can use it to find a policy anywhere in this country to meet their basic needs.

My friends, if I'm elected president, I won't raise taxes on small businesses as Senator Obama proposes and force them to cut jobs.

(APPLAUSE)

I'll keep small business taxes where they are, help them keep their costs low, and let them spend their earnings to create more jobs in America.

(APPLAUSE) When I'm elected president, I won't make it harder to sell our goods overseas and kill more jobs, as Senator Obama proposes. I'll open new marks to goods made in America and make sure our trade is free and fair.

(APPLAUSE)

And I'll make sure we help workers who've lost a job that won't come back to find a new one that won't go away.

You know, the last president to do what Senator Obama wants to do, raise taxes and restrict trade in a bad economy, was Herbert Hoover. That didn't turn out too well. They say those who don't learn the lessons of history are doomed to repeat them. Well, my friends, I know my history lessons. And I sure won't make the mistakes that Senator Obama will.

(APPLAUSE)

If I'm elected president we're going to stop sending $700 billion to countries that don't like us very much.

(APPLAUSE)

I won't argue to delay drilling for more oil and gas and building new nuclear plants in America as Senator Obama does. We'll start new drilling now.

(APPLAUSE)

And we'll invest -- we'll invest in all energy alternatives: nuclear, wind, tide, solar, and we will encourage the manufacturer of hybrid flex fuel and electric automobiles. We will invest in clean coal technology. We will lower the cost of energy within months. We will create millions of new jobs.

(APPLAUSE)

By the way, next time Senator Obama tells you that nuclear power has got to be made safe and -- take him over to see one of our Navy ships with nuclear power plants --

(APPLAUSE)

-- and ask the men and women who served proudly on those nuclear powered ships, defending freedom all over the world.

(APPLAUSE)

Now, my friends, let me give you the state of the race today and some straight talk. We have 22 days to go. We're six points down. The national media has written us off. Senator Obama is measuring the drapes and planning with Speaker Pelosi and Senator Reid to raise taxes, increase spending -- take away your right to vote by secret ballot and labor elections, and concede defeat in Iraq -- and concede defeat in Iraq. Our troops -- my friends, I won't concede defeat. I'll bring our troops home with victory and with honor. My friends --

(APPLAUSE)

My friends --

AUDIENCE: John McCain! John McCain! John McCain!

MCCAIN: But, you know what they forgot? They forgot to let you decide.

(APPLAUSE)

My friends, we've got them just where we want them.

(APPLAUSE)

What America needs in this hour is a fighter, someone who puts all his cards on the table and trusts the judgment of the American people. I come --

(APPLAUSE)

I come -- I come proudly from a long line of McCains who believe that to love America is to fight for her. I have -- I have fought for you most of my life. There are other ways to love this country, but I've never been the kind to do it from the sidelines.

(APPLAUSE)

I know you're worried. America is a great country. We're in a moment of national crisis that will determine our future. Will we continue to lead the world's economies, or will we be overtaken? Will the world become safer or more dangerous? Will our military remain the strongest in the world? Will our children and grandchildren's future be brighter than ours?

My answer to you is, yes, yes we will lead, yes we will prosper, yes, we will be safer, yes, we will pass onto our children --

AUDIENCE: Yes! Yes! Yes! Yes! Yes!

MCCAIN: -- we will pass onto our children a better, stronger country, but we must be prepared to act swiftly, boldly, with courage, with wisdom.

I know -- I know what fear feels like. It's a thief in the night who robs your strength. I know what hopelessness feels like. It's an enemy who defeats your will. I've felt those things once before. I will never let them in again.

(APPLAUSE)

I'm an American, and I choose to fight. Don't give up hope. Be strong, have courage and fight -- fight for a new direction for our country, fight for what's right for America, fight to clean up the mess of corruption, infighting and selfishness in Washington --

(APPLAUSE)

-- fight to get our economy out of the ditch and back in the lead, fight for the ideals and character of a free people, fight for our childrens' future, fight for justice and opportunity for all. Stand up to defend our country from its enemies. Stand up -- stand up and fight. America is worth fighting for. Nothing is inevitable here. We never give up. We never quit. We never hide from history. We make history. Let's go win this election and get this country moving again.

Thank you and God bless you. God bless --

(APPLAUSE)

HARRIS: And there you have it. That is the new speech that McCain campaign suggests, or at least hopes, will begin a turnaround for the campaign and encourage voters to take a new, fresh look at Senator John McCain in this campaign. John McCain is painting himself as the underdog in this campaign, suggesting that Senator Obama is already measuring for new drapes in the White House.

You heard him say we have got them -- the Obama campaign -- right where we want them. John McCain, Sarah Palin as you see there in Virginia Beach, Virginia.

Be honest for a second here. Would you vote for or against a candidate based on color? It is an undercurrent some Barack Obama supporters are meeting head-on.

(COMMERCIAL BREAK)

HARRIS: Barack Obama rallied supporters in Toledo, Ohio, today. Ohio, once again a crucial battleground state. And some Obama backers are concerned race could be a factor in the race.

Here's chief national correspondent John King.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We're calling all of our fellow Union members and retirees around the state.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Sometimes they hear it on the other end of the call.

UNIDENTIFIED FEMALE: Can I ask you how you're planning to vote in the upcoming presidential election?

KING: Or, in rural Portsmouth, Obama supporter Jean Carlson says it may come up after church, or in conversations over lunch.

JEAN CARLSON, OBAMA SUPPORTER: I think it's an undercurrent. I think it's sad, but I think it's still an undercurrent.

KING: An undercurrent of racism. A reluctance, or refusal to support Barack Obama because of the color of his skin.

RANDY BASHEM, SCIOTO CO., OHIO DEMOCRATIC CHMN.: It's basically comes down to that. (INAUDIBLE) election, it's probably the hardest place in the state of Ohio, because you know, the population of black vote here in southern Ohio is probably 2 percent.

KING: In Ohio and several other major battlegrounds, the race issue is an urgent focus, as increasingly optimistic Democrats and their allies, confront what many believe is the last potential barrier to victory.

UNIDENTIFIED MALE: Then when it gets real bad, and they never just sort of look you in the eye. Well, I can't vote for him.

KING: At this labor rally in Cleveland, Union leader Gerry Mackenty's (ph) frustration, spilled into the open.

And this doesn't even come out in code, it comes out like this. 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).

KING: The AFL's CEO promise a $200 billion election effort. 70 million phone calls to Union households. 25 million mail pieces, many of them featuring white working class voters vouching for Obama. Others rebutting rumors he won't wear a flag pin, or isn't a Christian.

UNIDENTIFIED MALE: You go and talk to a member and I talk to some. You support Barack Obama. You know his record. His record's good for working men and women. Gerry, I know, I like you. But he's a Muslim. Barack Obama's a Muslim. But, he's not even a Muslim. He's a Christian.

KING: Democrats across Ohio, say increasingly troubling economic news is turning more and more voters against McCain and the Republicans.

UNIDENTIFIED FEMALE: This is a critical election. It is, it's frightening.

KING: But they concede much of the support for Obama is soft. It's one reason Democrats are more aggressively addressing the race issue. And encouraging early voting among Union members and others, they worry might change their minds.

John King, CNN, Columbus, Ohio.

(END VIDEOTAPE)

HARRIS: And once again, we want to remind you to check our political ticker for all the latest campaign news. Just logon to CNNpolitics.com, your source for all things political.

(COMMERCIAL BREAK) HARRIS: So, are you looking for ways to help you during these tough times? Our senior business correspondent Ali Velshi has some advice.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT (voice-over): Protect yourself. When it comes to this economy, having easy access to cash gives you a safety net for the unexpected, like losing your job. So you should have enough on hand to cover your lifestyle for several months.

WALTER UPDEGRAVE, SR. EDITOR, "MONEY" MAGAZINE: For my emergency reserve, there's three to six months that I need. Your primary concern here is safety. You're not trying to get the absolute highest yield.

VELSHI: The key is putting your money into an investment you can withdraw from any time without penalty.

UPDEGRAVE: Security is of utmost importance. So, you want to stick primarily to savings accounts, money market accounts, short term CDs. You want to do the best that you can do within those categories.

VELSHI: So, shop around and remember, this is a low risk, low reward investment. That's why finding the best rate is your best bet.

UPDEGRADE: You're still probably a little bit below 4 percent, so you may be still losing out a little but to inflation. But you can still do a little bit better then for example, just getting the average return, or just going -- automatically going to your local bank.

VELSHI: And that's Right on Your Money.

Ali Velshi, CNN, New York.

(END VIDEOTAPE)

HARRIS: And again, as the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advice an answers. Check out our special report: America's Money Crisis. Again, that's at CNNMoney.com.

And hello again, everyone. I'm Tony Harris. And here are the headlines from CNN on Monday, October 13th. Barack Obama, his rescue plan for the middle class unveiled shortly. With 22 days to go, John McCain is scrambling to rescue his campaign.

What a difference a weekend makes. Dow stocks surging more than 500 points. Is all that government tinkering finally unfreezing credit?

You're in the CNN NEWSROOM.