Return to Transcripts main page
American Morning
Overseas Markets Rebound; McCain Dials Down Campaign Rhetoric; Biden Says 100 Percent McCain Ads Attacking Obama; A Look at Black Men Supporting McCain
Aired October 13, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): Breaking news, a worldwide rebound as world leaders respond to an economic emergency.
UNIDENTIFIED MALE: The key thing is how do we get the banking system lending money again?
ROBERTS: We are watching Wall Street after the Dow's worst week ever.
And not so black and white.
RUFUS MONTGOMERY, REPUBLICAN VOTER: It's about leadership, who's best prepared to lead our country.
ROBERTS: First time African-American voters who say they won't pull the leaver for Obama on the "Most Politics in the Morning."
(END VIDEO CLIP)
ROBERTS: And good Monday morning. Thanks very much for being with us. It's the 13th of October. We hope that this is a lucky 13th of October, and some indications are that it just might be.
KIRAN CHETRY, CNN ANCHOR: That's right. Let's just say this. It can't get much worse than it did last week.
ROBERTS: Yes.
CHETRY: So we have our fingers crossed this morning.
ROBERTS: When you're in the basement nowhere to go, but up, right?
CHETRY: Exactly. Well, thanks so much for being with us. And we begin with signs of a bounce back from last week's historic decline on the world financial markets.
Asian stocks did finish higher overnight. European stocks are trading in positive territory. And meantime, central banks in the U.S, Japan and in Europe are taking new steps to unfreeze credit markets. All the details on that just ahead.
And some good news at the pump this morning. Gas prices have dropped dramatically over the past two weeks, more than 35 cents a gallon according to the Lundberg Survey. The national average now for a self-serve regular gallon stands at $3.31, the tumbling price of crude oil, the reason crude oil falling below $78 a barrel last week.
And firefighters are on the front lines just 20 miles north of Los Angeles. So far, flames in the Angeles National Forest have consumed 2,000 acres and at least three homes. More than 1,200 people have been evacuated. Right now, they say this wildfire is only about 20 percent contained but crews fear today's Santa Ana winds expected to top 60 miles per hour could stoke the fire.
ROBERTS: Back now to our top story. And finally some encouraging signs for shaken investors that a financial rebound may be taking shape right now in the overseas markets.
In Asia, Hong Kong closed up more than 10 percent. South Korea up almost four percent. The markets in Japan were closed for a national holiday, so they're still reflecting Friday's losses.
But Europe is also in positive territory. London's FTSE up almost six percent, and Dow futures have been up as high as 400 points this morning. There's a long way to go until our opening.
The news follows emergency finance meetings in Washington and Paris and plans to prop out troubled banks and credit markets. Meantime, the U.S. is taking another new approach to the financial crisis. The "New York Times" reporting that federal officials have promised to guarantee a Japanese bank's investment if it goes ahead and buys a $9 billion stake in Morgan Stanley.
Christine Romans is here "Minding Your Business." They're tweaking around the edges here, not outright throwing out the old plan and starting with a brand new one.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's absolutely right.
ROBERTS: It's going to look like it's going to have any kind of effect.
ROMANS: Well, it looks as though the markets at least know that the policymakers are doing everything that they possibly can to shore up the financial system and that's what you're seeing the reaction to overnight. And even the British government pumping billions into the British banks. You've got world leaders promising to shore up the financial system in an emergency meeting in Paris.
You've got every kind of photo op you can imagine and press release and communique over the weekend trying to show that listen, our policymakers around the world are on the ball here. And after a hellish week to 10 days in the stock markets, you're seeing a relief rally, as they call it, in Wall Street parlance.
The Dow down 2,400 points in just eight days. And overnight, you're seeing Hong Kong up some 10 percent. Australia was the first one to open and really powered higher. Shanghai up 3.7 percent. Keep in mind this has been a really rotten ride. The Dow down 36 percent so far this year. The Nasdaq down 38 percent. The S&P 500 down 39 percent.
John, you're right. Once you're in the basement, you have no place to go but up. So we can see that we're definitely been in the basement.
And watching gas prices as well, it's the one silver lining in all of this. Over the past couple of weeks, gas prices have continued to come down. Gas prices at $3.21 a gallon. That's kind of for one of those kind of crazy Wall Street reasons. That is because everyone is expecting some kind of deep, long recession that demand for oil and gasoline will go down and so then that will mean that the prices can go down. So --
ROBERTS: In regard to what the federal government is going to do with the $700 billion bailout...
ROMANS: Right. Right.
ROBERTS: ... is this idea of using it to buy up these toxic securities, these mortgage-backed securities out the window now in favor of buying a financial share in stocks and trying to recapitalize the market that way?
ROMANS: Well, a lot of people are saying they hope it's out the window. They think that the recapitalization of the banks to absolutely inject money in them and take preferred shares is a better plan.
We're going to hear from Neel Kashkari who's running this, this TARP (ph) program, as they call it. We're going to hear from him at 8:00. I'm very interested to hear what he says about what...
ROBERTS: Yes.
ROMANS: ... what exactly this plan is starting to take shape. But we talked to several people over the past couple of weeks and you've done several interviews where people have said the facts on the ground are changing much more quickly than the government response has been.
ROBERTS: Well, we'll see what Kashkari has to say this morning.
ROMANS: Right.
ROBERTS: Christine, thanks so much for that.
CHETRY: The nation's financial crisis, the dominating issue in the presidential campaign for weeks now. And with just 22 days to go until the election, there are new numbers showing Barack Obama continuing to pull ahead. In fact the latest CNN poll of polls gives him a 49 to 41 percent lead over John McCain. McCain told supporters at his Virginia headquarters yesterday that he's looking forward to Wednesday night's debate. (BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: 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 --
(END VIDEO CLIP)
CHETRY: And while McCain is still on the attack, there's been a change of tone. CNN's Jim Acosta joins us now from Washington.
Hey, Jim.
JIM ACOSTA, CNN CORRESPONDENT: Hi, Kiran. Let's get ready to rumble. You heard John McCain there. Is it worth noting that he also reminded his supporters to remain respectful, which we should mention, because it's not just the feel of autumn in the air, we're also noticing a momentary cooling of campaign temperatures.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): The man once dubbed "McNasty" may be turning "McNice." In Davenport, Iowa, John McCain's provocative stump question "Who is Barack Obama" was nowhere to be found.
MCCAIN: Who's ready to lead? In a time of trouble and danger for our country, who will put our country first?
ACOSTA: At a Sarah Palin rally over in Pennsylvania, no mention of Obama's debatable link to former radical, William Ayers.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: Please, it is not negative. It is not mean spirited to talk about his record.
ACOSTA: It was a measurable dialing down of the rhetoric from one week ago.
PALIN: Our opponent is someone who sees America as imperfect enough to pal around with terrorists.
ACOSTA: When the floodgates of intolerance were opened at McCain/Palin rallies.
UNIDENTIFIED FEMALE: I can't trust Obama. I have read about him, and he's not -- he's not -- he's an Arab. He is not -- no?
MCCAIN: No, ma'am. No, ma'am. He's a decent family man.
ACOSTA: By week's end, the GOP nominee met resistance as he tried to stem an angry tide.
MCCAIN: He is a decent person and a person that you do not have to be scared as president of the United States. Now, I just --
ACOSTA: The seesawing message left leading conservatives voicing doubts. (BEGIN VIDEO CLIP, FROM ABC'S "THIS WEEK")
GEORGE WILL, CONSERVATIVE COLUMNIST: The candidate himself saying he's a decent family man. His ad is saying he's a decent family man but a liar. And his running mate says he's a decent man but a liar, and he pals around with terrorists. I mean, the dissonance is paralyzing.
(END VIDEO CLIP)
ACOSTA: One of McCain's own civil rights hero, Congressman John Lewis, accused the Arizona senator of inciting violence by "sowing the seeds of hatred," a statement Lewis later clarified. Both campaigns rejected Lewis' remarks then started pointing fingers over who crossed the line first.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's absolutely nothing being done on the stage by our candidates, John McCain or Governor Palin, that would incite that kind of thing.
(BEGIN VIDEO CLIP, OBAMA FOR PRESIDENT CAMPAIGN COMMERCIAL)
NARRATOR: McCain is resorting to smears and false attacks. Barack Obama launched his first campaign here not in anyone's living room.
(END VIDEO CLIP)
ACOSTA: Obama, who has a new ad, addressing the Ayers' controversy praised McCain for turning down the heat.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I appreciated his reminder that we can disagree while still being respectful of each other.
(END VIDEOTAPE)
ACOSTA: And a McCain campaign spokesman told me the GOP nominee will continue to take questions from voters at town hall rallies saying people remain "angry with the failures in Washington and on Wall Street" -- Kiran.
CHETRY: So it seems like you're in some ways seeing two John McCains on the stump, as some call for him to really try to showcase the differences and then others say, hold on, you got to help dial it back a little bit with what some of your supporters are saying. So how does he balance that?
ACOSTA: Right. He's in a tough spot, Kiran. You know, you're seeing at these town hall rallies the hard-core Republicans showing up and saying go after him, tear into him. And yet at the same time, the respected party elders in the Republican Party are saying, hold on, you don't want to lose ugly. I made a crude list of some of those party elders, Kiran. Bill Kristol, David Brooks, George Will, John Danforth, Tommy Thompson, Dan (ph) Weber and William F. Buckley's son, Chris, all saying that John McCain needs a new game plan.
CHETRY: All right. Twenty-two days out, that's a tough spot to be in. Jim Acosta, thank you.
ACOSTA: You bet.
ROBERTS: Well, do not expect any new economic proposals from John McCain this week despite what McCain surrogate Lindsey Graham might be saying. Graham said on one of the Sunday talk shows that McCain would unveil new proposals to "jumpstart the economy by cutting taxes on investors, capital gains and dividends." But McCain's advisers say they don't know what prompted Graham to say that adding that McCain's economic plan already accomplishes that by extending the Bush tax cuts.
Meantime, the Obama campaign is getting some heavyweight help on the campaign trail. Bill and Hillary Clinton appeared with Joe Biden on Sunday at a rally in Biden's hometown of Scranton, Pennsylvania.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), NEW YORK: We can help Americans losing their houses. But we can only do it by if we make sure the Republicans lose the White House come November.
WILLIAM JEFFERSON CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Who has the best ideas? Who's got the best instincts? Who's got the best ability to understand these challenges? Who's got the best supporting cast?
The answer is Barack Obama, and that's why Hillary is here. That's why I'm here. That's why you're here.
(END VIDEO CLIP)
ROBERTS: Barack Obama holds a rally in Toledo, Ohio, today as he prepares for Wednesday night's final presidential debate. And we'll be hearing from Senator Hillary Clinton tomorrow here on AMERICAN MORNING.
The race for the White House in many parts being waged in the living rooms through a blitz of negative ads. But is John McCain solely airing attack ads like Joe Biden's claim? Our "Truth Squad" is on the case.
CHETRY: A Supreme Court shake-up?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: This is the American citizen's last chance.
(END VIDEO CLIP)
CHETRY: How much change could the next president bring to the highest court in the land?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I am petrified about what's at stake here.
(END VIDEO CLIP)
CHETRY: Kelli Arena takes a look at the important campaign issue that's not getting much attention.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Well, welcome back to the "Most Politics in the Morning." Time now to check in with the "Truth Squad." This morning, Alina Cho is looking into a comment that was made by Democratic vice presidential candidate Joe Biden that John McCain's advertising has gone 100 percent negative.
Hey, Alina. Good morning.
ALINA CHO, CNN CORRESPONDENT: Hey there, good morning. Sounds unbelievable, right?
Let's take a look first of what was said. Kiran, good morning. Good morning, everybody.
Well, Joe Biden stirred up supporters at a rally in his hometown of Scranton, Pennsylvania, yesterday with this shot at John McCain. Take a listen.
(BEGIN VIDEO CLIP)
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: A recent analysis showed and this is literal. A recent analysis showed that 100 percent of the advertisements that the McCain campaign is now running, 100 percent are advertisements attacking, attacking Barack Obama.
(END VIDEO CLIP)
CHO: All of the McCain ads are attacks? It sounds unbelievable. But is it actually true?
Well, the "Truth Squad" went digging for the numbers and here's what we found. Biden was referring to a study by the University of Wisconsin advertising project. It looked at campaign ad spending from September 28 to October 4th of this year.
Now during that week, the study found, "Nearly 100 percent of the McCain campaign's advertisements were negative." Remember that word "nearly." And again, this is for a six-day period that ended on October 4th.
So we want to look at some more recent numbers. According to the Campaign Media Analysis Group, Obama spent $21.5 million on total advertising last week alone. McCain, a little more than $9 million. Now the group found that a little less than 50 percent of Barack Obama's $21.5 million went toward negative ads, so call that about $10 million to McCain's approximately $9 million. So the analysis is, even if the McCain camp really is spending nearly all of its money on attack ads, that would mean that both campaigns are just about equal in terms of money spent on negative commercials.
Interesting, right? So the question again, is Joe Biden right to say that 100 percent of the ads the McCain campaign is now running are attacks. The "Truth Squad"'s verdict on this one is false.
Biden misquoted a study conducted more than a week ago and if you break down the numbers as we just did, and consider the total cash spent, our research says that both sides are pretty much equal.
Coming at 8:00, we'll be taking a closer look at something McCain said about Barack Obama and health care, Kiran. Very interesting what he said on the stump. We'll be truth squading (ph) that in the 8:00 hour.
CHETRY: Keeping them honest, Alina. All right. We look forward to it. Thanks.
CHO: You bet.
ROBERTS: They say history can wait.
(BEGIN VIDEO CLIP)
AUSTIN KING, REPUBLICAN VOTER: Being a Republican is the way to go.
(END VIDEO CLIP)
ROBERTS: Meet three African-American men who think John McCain is right on the important issues.
(BEGIN VIDEO CLIP)
MICHAEL MCNEELY, REPUBLICAN VOTER: Lower taxes, strong national defense, traditional marriage, free market solutions.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: No one was going hungry in Times Square this weekend, that's for sure. Talking about fast food, the world's hot dog eating champ has now smashed the world record for eating pizza.
Joey Chestnut suck down 45 slices in just 10 minutes yesterday in Times Square. It's estimated that he scarf down nearly 12,000 calories and 450 grams of fat, or as someone say Michael Phelps' daily intake. Chestnut says that he drank a gallon of water to stretch his stomach muscles the morning of the matchup, and he didn't eat anything but protein supplements for two days before that.
Eighteen minutes past the hour. Rob Marciano checking on extreme weather, but first we double check on some extreme eating. How about that?
ROB MARCIANO, AMS METEOROLOGIST: Why is --
CHETRY: Forty-five slices.
MARCIANO: Why is it that these eating contests are always probably the worst thing you can possibly eat? Be it a hot dog or a slice of pizza, not exactly high on the hierarchy of what's good to eat.
All right. Let's talk about tropics. We've got a couple of things in Nana. Nana is not that too big of a deal. This tropical storm now probably going to weaken. They should know this isn't going to be a big deal. I mean, anytime you name a tropical storm or hurricane after basically grandma, it shouldn't do much. So we're not worried about that.
Eastern Caribbean, this thing looks a little bit more interesting and they may very well fly a recon aircraft in there to check things out.
All right. On the more domestic front, we got a front that's moving through the midsection of the country that's brought a lot of snow to the intermountain northern west last weekend and fire danger remains high. We have issues in California. We mentioned it last week, and sure enough fires broke out over the weekend. Check out a couple of them.
First, there's one in San Francisco and then one also just north of Los Angeles. This is the one in San Francisco near the bay actually. The one in So Cal is about 20 miles north of L.A. and they've actually had about 1,000 people to show that have evacuated from that one.
All right. So fire danger is going to be huge again today with dry, warm winds and they'll be battling Mother Nature along with those flames today and probably not going to have any help from Mother Nature until we get into tomorrow or Wednesday.
All right. This frontal showers will fire up some showers and thunderstorms across the midsection. Temperatures, record highs yesterday in Chicago. Mid 80s, 79 in Chicago. So you see warmth, you see cool. In the middle, we got a little bit of action as far as showers and thunderstorms.
Kiran, back up to you.
CHETRY: All right. Thanks, Rob.
MARCIANO: All right.
ROBERTS: To the "Most Politics in the Morning" now. CNN's Rick Sanchez has been checking the country's political pulse for his ongoing series "The League of First-Time Voters." This morning, he talks with three African-American men about their decision to vote for John McCain.
(BEGIN VIDEOTAPE)
RUFUS MONTGOMERY, REPUBLICAN VOTER: It's about leadership, who's best prepared to lead our country.
RICK SANCHEZ, CNN CORRESPONDENT: And you think John McCain is better prepared to lead our country than Barack Obama?
MONTGOMERY: I know he's better prepared to lead.
MICHAEL MCNEELY, REPUBLICAN VOTER: Principles matter. Lower taxes, strong national defense, traditional marriage, free market solutions -- those types of things. That's what we believe in the Republican Party.
SANCHEZ: Austin, you agree?
AUSTIN KING, REPUBLICAN VOTER: Barack is a good candidate, but I feel like he talks a lot. I don't believe everything that he talks that can be done. I feel that he's just -- just like a motivational speaker sometimes, but I really think that being Republican is the way to go.
SANCHEZ: Does that mean you support the policies of George Bush?
MONTGOMERY: I don't want to vote for someone who is only going to side with the people that are presumably in power. John McCain has a proven record of working across the aisle to the extent that has caused him angst amongst Republicans.
SANCHEZ: But given the economic situation, the dire economic situation, you hear Henry Paulson and others describe it that way, wouldn't you tend to want to lean with the guy who doesn't represent or is most distant from the party at hand right now, which is the George W. Bush/Dick Cheney party?
MCNEELY: Change for us is not looking to the government to be our savior. We are individuals. This nation is great because of individuals who have risen up and taken on the challenges of the country.
SANCHEZ: Is there a chance that come that Tuesday, you might actually pull the ballot for Barack Obama, or are you pretty much set on John McCain?
KING: There is a chance. I mean, especially me as a young voter, I'm only 19. I'm hearing most of the debates. I really never voted before, just like class elections at school. So I'm just really trying to hear everybody out, trying to get everybody's opinion. MCNEELY: Although we're seeing some times of trouble in our economy, we know that we can see it through and the Republican Party is the best answer.
MONTGOMERY: I actually get to vote twice this year. I'm a presidential elector and I will cast a vote for John McCain in November. And I'll also do the same in December when we certify him as the next president of the United States.
(END VIDEOTAPE)
ROBERTS: And you can learn more about "The League of First-Time Voters" at our Web site, CNN.com/league.
The candidates barnstorming the battleground states, and this morning new polls from the key state showing who's up and who's down. Plus, important changes to our CNN electoral map.
After the worst week ever for the Dow, there may finally be some reason for optimism. We ask a financial adviser what you should do going forward.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-six minutes after the hour now and a live look at the London stock exchange where the markets are up nearly five percent right now. That's a lovely turnaround from the way they were last week.
We're seeing a rebound this morning across overseas financial markets after last week's historic declines. Have we finally turned a corner in the financial crisis and what could it mean for your financial future?
Jordan Goodman is a financial adviser. He's also the author of "Fast Profits in Hard Times," a brand new book. Good timing as well. And he joins us now this morning.
So what do you make of what we're seeing in the markets overseas? Is this -- have we reached the bottom?
JORDAN GOODMAN, FINANCIAL ADVISER: No, we haven't. This a relief rally. It's good. The banks are saying we'll put whatever money it takes to save the system, but it's like putting out a fire in the kitchen. We have not solved the housing problem. We have not solved the credit crunch, so I do not think this is the bottom unfortunately.
ROBERTS: So what more does it take before we reach the bottom?
GOODMAN: Getting confidence back. I mean, I think there's plenty of time when the market moves up to get back in. But I'm saying we got to be concerned of them. You have to have consumer confidence rising, housing prices stabilize, unemployment going down instead of up. You know, you have to have the economy in better shape.
ROBERTS: So the White House appears to be at least considering, we haven't heard the official plan yet, but considering shelving this plan to buy up all these toxic mortgage-backed securities...
GOODMAN: Right.
ROBERTS: ... that were dragging all these investment houses down in favor of taking an ownership position in a lot of banks, in effect recapitalizing those banks...
GOODMAN: That's right.
ROBERTS: ... with full faith and credit of the U.S. government. Is that a good idea?
GOODMAN: I think it is a good idea. This is what Wall Street is looking for. They're doing it in Europe and if we don't do it here, people kind of move their money around to where it's going to be the safest place. So, yes, I think, in fact, that's going to happen. I think we will buy actual preferred shares, non-voting preferred shares in U.S. banks to try to recapitalize them.
ROBERTS: So we mentioned the book here "Fast Profits in Hard Times," what are some suggestions for people this morning who want to invest safely in this incredibly volatile market?
GOODMAN: First is -- keep your money safe. And so, here are some specific places you can do it. Treasury bills and Treasury bonds. You're going to get very low yields but at least your money is safe. Treasury bills are almost yielding nothing today, but bonds maybe two or three percent.
ROBERTS: But it's better than losing.
GOODMAN: It's better than losing your principal which a lot of people have been doing. Gold, I think, with the huge amount of money being created in the world economy, gold is going to do well. I think it's about $900 an ounce, something like that now.
Money market mutual funds, which actually have been guaranteed by the FDIC recently. And FDIC-insured CDs. They just recently increased the insurance from $100,000 up to $250,000.
Another way to do that, there are CDs denominated in foreign currencies that are still FDIC insured, so you could buy a euro CD or a Swiss franc CD, but if the U.S. dollar falls, you actually have some appreciation.
ROBERTS: Some people at home are opening up their 401(k) statements, they're saying, oh, my God. They're saying --
GOODMAN: Don't open them.
ROBERTS: I know. They're seeing down 25, 35 percent in some cases. GOODMAN: That's right.
ROBERTS: What are some ways to try to minimize your loss in 401(k), Jordan?
GOODMAN: Within the 401(k), you should move to the conservative options. That's what I'm saying. So you have, for example, money market funds in them. You've got stable value funds, they call them, and government bond funds. These are the safe places, so you don't have this enormous loss of principal.
People say, well, it will come back eventually. Well, it may or may not. But I don't like people seeing these enormous losses. I'm getting e-mails from people all the time saying, "Should I cash up my 401(k)? Should I stop contributing to it?"
No, you should keep contributing to it but put it in those safe kinds of options.
ROBERTS: And what about paying off debt? What about holding as much cash as possible?
(CROSSTALK)
GOODMAN: This is the time to pay off debt if you ever have one now because, you know, you're having a tremendous burden of debt here. So here are some specific ways people can pay off debt.
There are things called mortgage equity accelerators. There's a Web site for one of them, for example, called truthinequity.com, where you can literally pay your mortgage off in five years instead of 30 years by using a home equity line of credit. You can do lower interest credit card. There's a Web site, for example, creditcardperks.com, where you can shop around for the best credit card anywhere if you have decent credit.
If you don't have decent credit, you can do our consumer credit counseling agency. One of them I like for example is called cambridgecredit.org, where you can combine all your credit into one payment to lower interest rate and get out of that quickly.
And finally, mortgage modification. Now, this is -- if you're running into trouble with your mortgage, the banks do not want to take over your home. There's about 10,000 foreclosures a day in the United States right now. They don't want to do this. They want to work with you to try to prevent that from happening.
So, for example, there's a Web site called modifymyloan.com, that will work with the banks to stretch out your interest rate, stretch out your payments due, whatever it takes to keep you in your house.
ROBERTS: Some good tips. Jordan Goodman, author of "Fast Profits in Hard Times," thanks for sharing this morning.
GOODMAN: Thanks so much, John.
ROBERTS: All right. Good stuff.
Kiran?
CHETRY: Well, we're half past the hour now. Checking our top stories this morning.
A shot of confidence on the world financial markets. Hong Kong closes up 10 percent. European trading in positive territory and Dow futures have been up as much as 400 points ahead of today's opening on Wall Street. The markets apparently responding to worldwide efforts to prop up troubled banks and credit markets.
There's a new study saying that your kids may not be getting enough vitamin D. The American Academy of Pediatrics now doubling the recommendation to 400 units for infants and young children. That's roughly 4 8-ounce glasses of milk. It also means that millions of children will need to take daily vitamin D supplements.
The new advice is based on growing evidence that the vitamin not only keeps bone strong but that it may reduce risk for cancer, diabetes and heart disease. The group says that formula-fed babies generally get enough vitamin D, but breast-fed babies as well as toddlers and teens may need a supplement. The best source, by the way, is sunlight because the body makes vitamin D when sunshine hits the skin.
And Cuba's Fidel Castro weighing in on the U.S. presidential race. He says, quote, "Profound racism will keep millions of Americans from voting for Barack Obama." In written comments published by Cuba's state-run media, the 82-year-old Castro says it's, quote, "a miracle that Obama hasn't suffered the same fate as assassinated black leader Martin Luther King and Malcolm X." Castro also described John McCain as, quote, "bellicose."
And the candidates in overdrive after taking light schedules yesterday to prepare for Wednesday's debate. The stakes could not be higher. The latest CNN poll of polls shows Barack Obama leading John McCain by eight points, 49 to 41 percent, and in the waning days of the campaign, the candidates are spending a great deal of time in a number of key battleground states. Alina Cho joins me now with more this morning.
Hey, Alina.
CHO: Hey there, Kiran, good morning. You know, a lot to talk about.
In 22 days until the election, it is all a about the ground game. Surrogates going door to door until voters frankly can't stand it anymore. But when the race is still this tight, every vote counts, especially in electoral-rich Ohio. Twenty electoral votes there is why John McCain and Barack Obama are spending so much time campaigning there.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: How are you?
OBAMA: I'm Barack Obama.
CHO (voice-over): Barack Obama going door to door in Ohio, hoping to win over undecided voters. And his rival, John McCain, campaigning in the state late last week.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I need to you help me carry the state of Ohio and take the presidency of the United States.
CHO: Ohio put George W. Bush over the top four years ago and it could once again all come down to the state. Our latest CNN poll of polls in Ohio, which averages the latest surveys in the state, has Obama up by 3 points with 5 percent of voters undecided.
PALIN: We are so excited to be here. We also recognize it's going to be a real hard-fought contest here in Virginia.
CHO: Both Sarah Palin and McCain campaigned separately in Virginia today, a once reliably Republican state. But our most recent poll of polls there has Obama up by 4 points with 6 percent of voters undecided. McCain also campaigns in North Carolina today, another red state that is being forced to defend.
A CNN/Time Magazine Opinion Research Corporation poll conducted last week suggested the race was a dead heat. So, where does it stand in the big picture? If the election were held today, our CNN Electoral College map estimates that Obama would win 264 electoral votes, McCain 174 with 100 in states up for grabs. 270 electoral votes are needed to win the White House.
(END VIDEOTAPE)
CHO: And as we have seen so many times before, anything can happen in these final days before the election. And with 100 electoral votes still up for grab, you can see why the candidates are campaigning so hard in those battleground states.
And just like in 2004, it could all come down to Ohio. No Republican has ever won the White House without winning Ohio. In the past eight years, 200,000 people have lost their jobs there. So you can bet, Kiran, that a lot of people there and elsewhere, of course, will be going to the polls with that in mind.
It is all about the economy these days. It's why you've seen Barack Obama's poll numbers inching up, but John McCain is said to be considering rolling out a new economic package of his own and that could appeal to voters, too.
CHETRY: Yes. In fact, coming up in just a few minutes, we're going to talk to a radio host out of Cincinnati on what the issues are in that crucial battleground state. Thanks a lot, Alina.
CHO: You bet. ROBERTS: North Korea says it's resuming the dismantlement of its nuclear program and it's in response to President Bush's decision to remove Pyongyang from the list of countries sponsoring terrorism. CNN's State Department correspondent Zain Verjee is live in Washington for us this morning.
How significant is it getting North Korea off this list of state sponsors of terror?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning, John. It's really significant both politically and symbolically. What happened is essentially a reminder of just how difficult it is negotiating with the North Koreans. It's also a reminder of just how much the Bush administration really wants a foreign policy success and just wants to keep those talks going.
You know, it's even willing to take the heat back here in the U.S. from critics who just say, John, that it's a bad move, that North Korea just can't be trusted. The U.S. was willing to take North Korea off the terrorism blacklist only in return for something. And that was North Korea agreeing to some pretty specific inspections, monitoring and sampling at the main bomb-making facility in Yongbyon to make sure that it is telling the truth about its nuclear secrets and specifically with regard to plutonium that you need to make those bombs -- John.
ROBERTS: See, over the weekend, both Sarah Palin and Senator John McCain responded to this move and didn't quite seem to be on the same page. John McCain was very skeptical about it. Sarah Palin thought that it was a good idea.
VERJEE: Right. Exactly. There was daylight between the two. Senator McCain issued a statement saying that he doesn't support the decision, that it didn't allow the U.S. to fully explore all of North Korea's nuclear programs. He also said that it was bad that they didn't consult with allies like Japan enough.
And Governor Sarah Palin said at the same time that she thought it was a pretty wise decision. A little bit later, a spokesperson issued a statement saying actually there's no difference between the two, that they both believe that the verification steps just aren't enough and that Governor Palin was referring to diplomacy being the wise decision, but not that it was a wise decision to remove North Korea from the terrorism blacklist -- John.
ROBERTS: I see. All right. Zain Verjee for us this morning. Zain, thanks for that one. Let's keep trying to decipher what the words really mean. Appreciate it.
VERJEE: OK.
CHETRY: Well, if the financial crisis has you wondering what to do with your money, help is on the way. Our Personal Finance Editor Gerri Willis is working her blog and taking your questions next. And there's still time to send one. Go to CNN.com/am.
(COMMERCIAL BREAK)
CHETRY: We're "Minding Your Business" this morning. We're answering your money questions with CNN's Personal Finance Editor Gerri Willis.
I know we can't get to all of them but, you know, a lot of people have the same theme -- wondering what the heck they're supposed to do in this time of turmoil.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: And I'm trying to point out the ones that will appeal to the most people.
The first question today is from Barbara in Beverly, Massachusetts. She asks, "We are recent retirees with a portfolio ratio of about 40 percent stocks, 60 percent bonds, largely in mutual funds. What advice do you have for retirees at this time?
This is really common. The people who are most hurt by the selloff we've seen are people in retirement, people on the verge of retirement. First of all, I want to say your asset allocation is good, but I want you to avoid panic-selling. Look what's going on in the market today. It looks like we're going to have a 400 point gain at the open here. You don't know where stocks are going to go next.
One good idea for folks in your situation -- if you absolutely need cash now, you might think about a reverse mortgage. This allows you to borrow against your home. You don't have to repay it until you move out.
Question number two comes from Chuck in Louisville, Kentucky. He asks, "Do you think we've hit rock bottom?" Well, if I could predict that with accuracy, I'd own an island in the Caribbean somewhere. But, I have to tell you, the typical trend with bear markets is that they bounce along the bottom; they don't make a "V" recovery. So, if we do see a big gain today, you'll probably see some more down side. So, it will take a while to get out of this.
And the third question comes from Amela in Burlington, Vermont who asks, "What happens to my mutual fund investments if the company at the core of my mutual fund fails?" Well, Amela, I have to tell you, your money is safe because it's held separately from the company who's managing your money and the trust. So, you don't have to worry about that. Your mutual fund money is held separately from the company that runs it -- guys.
CHETRY: All right. Sounds good. Thanks so much, Gerri.
WILLIS: My pleasure.
CHETRY: A Supreme Court shake-up?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: This is the American citizens' last chance.
(END VIDEO CLIP) CHETRY: How much change could the next president bring to the highest court in the land?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I am petrified about what's at stake here.
(END VIDEO CLIP)
CHETRY: Kelli Arena takes a look at the important campaign issue that's not getting much attention.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
PALIN: A vote for Barack Obama is a vote for activist courts that will continue to smother the open and Democratic debate that we deserve and that we need on this issue of life. That's OK, that debate, at both the state and federal level.
(END VIDEO CLIP)
ROBERTS: 44 minutes after the hour. With so much of the nation focusing on the economy, issue number one this morning, Sarah Palin is shaping her speeches around a different theme, wedge issues of the culture wars. In this election, the stakes are high for many Americans passionate about hot-button issues like abortion. That's because the Supreme Court could change depending on whether Barack Obama or John McCain is elected president.
Here's CNN's Kelli Arena with that.
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Good morning, guys.
You know with issues like the economy dominating the presidential campaign, you haven't really heard a lot about the Supreme Court. But don't let that fool you. It is all some voters care about.
(BEGIN VIDEOTAPE)
ARENA (voice-over): Make no mistake. The Supreme Court is very much on the ballot.
WENDY LONG, JUDICIAL CONFIRMATION NETWORK: This is the American citizens' last chance to choose the man who's going to be picking at least probably several justices and shaping the Court for most of this century.
ARENA: From abortion to the war on terror, the Court will play a vital role.
KATHRYN KOLBERT, PRES., PEOPLE FOR THE AMERICAN WAY: I am petrified about what's at stake here. ARENA: And activists from both parties are making sure the rest of the electorate knows it.
MCCAIN: We have not done enough.
VOICE OF UNIDENTIFIED FEMALE: No, Senator McCain, you have not. Tell John McCain to support judges who support our rights.
VOICE OF UNIDENTIFIED MALE: Choosing the right justices is critical to America. We don't know who Barack Obama would choose.
ARENA: The face of the Court could go through some radical changes. Court observers speculate 88-year-old Justice John Paul Stevens may retire. Justice Ruth Bader Ginsburg in her later 70's has had health issues. And friends of Justice David Souter say that he might like to go back to New Hampshire. All three lean left.
EDWARD LAZARUS, SUPREME COURT LEGAL ANALYST: If Barack Obama becomes president, it is almost certain that the Court will stay roughly the way it is. If Senator McCain were to win the presidency, he would be replacing liberal justices presumably with justices far more conservative.
ARENA: Both candidates have made no secret about the types of justices they'd pick or avoid.
OBAMA: I would not have nominated Clarence Thomas.
MCCAIN: Justices Alito and Roberts are two of my most recent favorites, by the way.
(END VIDEOTAPE)
ARENA: For now, the Court remains very tightly divided. Many major decisions have come down to a 5-4 vote which is far too close for true believers from both parties -- John, Kiran.
CHETRY: Holy deception. Why some are not laughing at comedian Bill Maher's new documentary.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We lied. Yes, I don't feel an obligation to reveal everything about everything.
(END VIDEO CLIP)
CHETRY: The sin of the "Religulous" and the wrath of the faithful.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Bill Maher's new movie "Religulous" doesn't pull any punches as it skewers all of the major religions in the world. When we had him on the show recently, he said his goal was to get people talking about organized religion. But some aren't happy, accusing the filmmaker of tricking them into speaking about the subject.
Here's CNN's Brooke Anderson.
BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: John, Kiran, Bill Maher's film "Religulous" rails on religion and belittles those who believe. Now, some on the film are claiming they're tricked into participating, a charge Maher doesn't deny.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: You're a senator. It worries me that people are running my country who believe in a talking snake.
UNIDENTIFIED MALE: Well, you know, I have to pass an IQ test to be in the Senate, though. I think I was trying to be humorous.
ANDERSON: Senator Mark Pryor of Arkansas isn't laughing about his appearance in comedian Bill Maher's new film "Religulous."
SEN. MARK PRYOR (D), ARKANSAS: The concern I have is this is making fun of all people of faith, making them look ridiculous.
ARENA: Though Pryor knew Maher was involved, he says this e-mail request was misleading.
PRYOR: We really had no idea what he was up to. We thought that this was probably going to be a segment for his show. I don't think he explicitly said that, but he never told us that he was working on a documentary.
UNIDENTIFIED FEMALE: I'm going to go into rapture and I'm going to come back on a white horse.
ARENA: The movie directed by Larry Charles who also made "Borat" mocks all major religions. Steven Waldwan is editor-in-chief of the non-denominational Web site beliefnet.com.
STEVEN WALDMAN, WWW.BELEIFNET.COM: If he had any hopes that this was going to be a kind of persuasive indictment of religion, I think he kind of blew it by caring more about making it a comedy than about making it a real documentary.
UNIDENTIFIED MALE: Can I assume that this is your only 2000 --
ARENA: Evangelical pastor Jeremiah Cummings says he was told he was taking part in a PBS documentary and never would have participated had he known Maher was behind the project. Quote, "they never told me that Bill Maher was going to slide in at the last second. I deeply feel sorry for Larry Charles and Bill Maher for this sick movie." Cummings says that his career and reputation have suffered.
VOICE OF UNIDENTIFIED MALE: Bless me Father for I have sinned.
ARENA: Maher and Charles admit deceiving the film's subjects. LARRY CHARLES, DIRECTOR: We lied. Yes, I don't feel an obligation to reveal everything about everything.
ARENA: Despite the attacks on faith, Waldman believes something positive can come from the film.
WALDMAN: It kind of keeps believers on their toes.
UNIDENTIFIED MALE: Why doesn't he just obliterate the devil and therefore get rid of evil in the world.
UNIDENTIFIED MALE: He will.
UNIDENTIFIED MALE: He will?
UNIDENTIFIED MALE: Yes.
(END VIDEOTAPE)
ARENA: For his part, Pastor Jeremiah Cummings is considering legal action despite signing a consent form -- John, Kiran.
ROBERTS: "W," the movie, a look at Oliver Stone's October surprise.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: He's really aiming, I think, not at the Democrats, not at the Republicans, but at those independents.
(END VIDEO CLIP)
ROBERTS: And why it could backfire in November.
Plus, what women want.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Hillary never showed her feminine side. And that makes a difference.
(END VIDEO CLIP)
ROBERTS: From Senator Clinton to Sarah Palin.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Part of me is a bit appalled that she's being tossed up as a viable female candidate.
(END VIDEO CLIP)
ROBERTS: Why female voters could hold the power in 2008 on the "Most Politics in the Morning."
(COMMERCIAL BREAK) CHETRY: Well, welcome back to the "Most Politics in the Morning."
Ohio, a crucial battleground state. We've said this all along, but, seriously, no Republican has ever won the White House without it. CNN's new Ohio poll of polls shows Senator Barack Obama leading John McCain by three points there. That's a drop of a point since last Thursday's poll.
So, what are the voters in Ohio saying this morning? Well, we turned to radio talk show host Mike McConnell. He's from WLW. It's in Cincinnati.
Good morning, Mike. Good to see you this morning.
MIKE MCCONNELL, RADIO HOST, 700WLW CINCINNATI: Yes, you too, Kiran.
CHETRY: You know, it seems that some of these issues have been overshadowed by some of the intensity and anger of McCain supporters. You saw John McCain on the stump having to defend rival Barack Obama. What are your listeners saying about what they're hearing out there on the campaign trail?
MCCONNELL: They're saying the same things you're hearing that the attitude is really palpable. People are beyond aggravated with this. And in many ways, I'm not sure what to chalk it up to only that people think that John McCain should be hitting harder than he is.
But if you go back in the past, I don't think that George W. Bush would be hitting any harder than this. Bob Dole wouldn't hit any harder than this. I think Republicans, unfortunately, have a bit of a history of playing the role of a punching bag. And people are finally getting fed up with it.
CHETRY: So, what is the part that you're saying people are frustrated with? The way that John McCain's not been focusing on the issues? Or...
MCCONNELL: Well, actually many go the other way. There are many who still think that John McCain can win if they throw out names like William Ayers and Jeremiah Wright. My point is, anybody who cares about that, heard about it a long time ago, it's already reflected in the polls and it's time to move on.
From my perspective, John McCain could do much better by beginning to address things such as the economy. I think he could make the point that, yes, he said that he felt he was weak on economics.
But he should say I never suggested that I knew less than Senator Obama and then go after Senator Obama's plan. Instead, many people still believe that the way the ticket ahead is Jeremiah Wright and William Ayers. And it's not anymore than Whitewater was in 1996. Anybody who cares knows they've been polled, put it to bed. CHETRY: Right. Let's talk about Barack Obama for a moment. He is widening the gap a little bit. He has a lead in your crucial battleground state right now. And many of the pundits say that the key to him winning that is the blue-collar white vote. What do people who are thinking about voting for Barack Obama want to hear?
MCCONNELL: To me, that's a wild card. On Labor Day, I passed by an area where the AFL-CIO has their annual Labor Day picnic. And it's a huge event. And typically the Democrat running for office is at that event. It's thousands and thousands of union members.
And when I drove by, I was amazed to see there was not one Barack Obama sign. So it's -- to me, there could be a difference in what some people are saying versus how they would actually go out and vote. That speaks volume.
There were signs for every local race and regional race and state-wide race, and not one Barack Obama sign outside the AFL-CIO picnic among 75 to 100 different signs. So that to me is a wild card. They may speak one way and behave differently. And I have a strong suspicion that in at least a decent percentage, that's exactly what's going to happen.
CHETRY: That's interesting. You know, in 2004, just for a bit of history, Democrats thought that job losses in your state is what would help them win Ohio, George Bush ended up with larger leads on moral values and the war on terror. So, how did the economic issues versus the cultural issues play out in your state?
MCCONNELL: Right now, it's economics. Right now, it's the bailout, it's anger, it's all those things. And that's another area where, I think, people believe that John McCain could be making inroads. There's plenty of blame to go around in this bailout and the entire financial situation. But the case can be made that it was started by Democrats with the whole idea of trying to get, you know, loans into the hands of people who really couldn't afford to repay them.
CHETRY: Yes, that's a tough one to make though when you voted for it, and they both voted for this bailout plan.
MCCONNELL: Well, actually, I'm going back now to '95, not the bailout. But as far as what got the ball rolling, with regard to getting these subprime loans into people's hands. That's an argument, I believe, McCain could make pretty sufficiently and, yet again, he's not. People just want him to take the gloves off and go after Obama. To me, I'd try to make the point, that's completely out of character for Republicans. They just don't do that.
CHETRY: Right. Very interesting stuff from you Mike McConnell, radio host of 700WLW in Cincinnati. Thanks for being with us this morning.
MCCONNELL: Thanks, Kiran.
ROBERTS: It's coming up now at the top of the hour. And here are this morning's top stories. It could be a rebound day for stocks. Wall Street will be open for business on Columbus Day. Right now, Dow futures are pointing to a much higher open. Stock markets around the world are also higher. We'll have more on that in just a moment.
Wells Fargo and Wachovia getting the go ahead on their merger. The Federal Reserve Board approves the multibillion dollar deal. Citigroup had been competing with Well Fargo for the right to buy Wachovia, but it gave it up last week.
Gasoline prices dropping another four cents overnight. The new national average, $3.21 a gallon. According to AAA, seven states are below $3 a gallon. It's the 26th straight day that gasoline has dropped, falling 65 cents over that span.
A wildfire burning north of Los Angeles is threatening to kick up again. Right now, fire officials say the fire is just smoldering but they are preparing for it to get a lot worse if those dreaded Santa Ana winds crank up again. So far, the fires destroyed three homes and forced more than a thousand people to evacuate.
