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American Morning
Overseas Markets Bounce Back; What If the Public Had Been Warned on the Financial Crisis; Clintons Stump for Obama; How the Abortion Issue Might Play on Voters
Aired October 13, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Right now, Dow futures are pointing to a much higher open. Stock markets around the world also higher. We'll have more on that just a moment.
Wells Fargo and Wachovia getting the go-ahead on their merger. The Federal Reserve Board approves a multibillion dollar deal. Citigroup had been competing with Wells 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.
Well, back to our breaking news this morning. Stocks around the world bouncing back this morning. In Australia, stocks gained more than five percent. Hong Kong's Hang Seng index added more than 10 percent. The Nikkei is closed today, by the way. London's FTSE is up five percent as well. This all comes after 15 European countries agreed to give cash to troubled banks.
And here in the United States, House Democrats meet today to discuss a second economic stimulus package. That plan will be worth as much as $150 billion and includes substantial assistance for state and local governments.
Christine Romans here is minding our business for us now. And you know, last week while the markets were tanking, we were talking about where is the bottom? Is it at 82? Is it at 79?
Do you think we're there? Or this little resurgence we're seeing, is that the dreaded "dead cat bounce."
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: The dead cat bounce -- that's the old Wall Street term for even a dead cat will bounce if you throw it on the ground. It doesn't mean the stocks are any healthier. And we all know, and many people in America know all these little crazy terms from Wall Street these days. It's because this Wall Street problem has really blown up into Main Street. We'll never know where the bottom is until long after it's passed and that's the peril of trying to choose where the bottom is in the market. And you know, people have been choosing it all the way down and have been wrong. And so, you can imagine that there's a little concern about making more than just a relief rally out of any one move.
But we can tell you about today is there's a sliver of confidence that is coming into the global markets on the idea that policymakers around the world are trying to shore up the financial system and so there is a little bit of confidence shining through in what was, you know, really a rotten week.
We've got green arrows in Hong Kong, Australia, Shanghai. Japan is closed. That's something to note. Also, the U.S. bond market is closed today for the Columbus Day holiday.
Last week, this is why even a dead cat can bounce. Look at what happened last week.
The Dow down 18 percent. The Nasdaq down 15 percent. The S&P 500 down 18 percent. The Dow over eight days was down some 2,400 points. Worst week ever for the Dow.
Friday, the Dow had a 1,000-point range. I never remember ever seeing a thousand-point range in the Dow. It hit a five-year low. And the volatility index, that's something that we use to measure just how wild things are, that was at a record high, well above, I will point out, the level where other bottoms have occurred in this market.
So what are those efforts, those global efforts everyone is talking about this morning that are helping infuse some confidence in the global markets? Britain injecting cash into its ailing banking system. In Europe, there was an emergency meeting in Paris of 15 European leaders where they say they will continue lending a direct label backup, direct lending with banks. They're going to guarantee deposits among other things, so there is a feeling that all of these little things that are little and very, very big things the governments have been doing might be coming to pass now.
ROBERTS: Fingers crossed.
ROMANS: Fingers crossed, that's right.
ROBERTS: Christine, thanks so much for that.
ROMANS: You're welcome.
ROBERTS: American political leaders have been criticized for not warning the public about the current financial crisis. But if they had, would it have changed anything?
Our Frank Sesno joins us now live from Washington answering that question or at the very least asking it.
Good morning, Frank. FRANK SESNO, CNN SPECIAL CORRESPONDENT: Good morning, John. That's right. Asking it is exactly right. And here we are with another week and another wild ride ahead.
Markets up, markets down. We're going to have a presidential debate. We'll undoubtedly have more presidential statements. But the question is if you're looking for answers, there are no easy ones, certainly not from the political candidates.
(BEGIN VIDEOTAPE)
SESNO (voice-over): What if they told us what we were really in for? Markets panic, savings disappearing. GM selling for less than five bucks a share, the lowest since 1950? Is this what they saw when they had all those meetings, looked into the abyss then wouldn't tell us what they'd really heard?
SEN. CHRIS DODD (D), CHMN., BANKING COMMITTEE: I'm not going to repeat the language of last evening.
SESNO: Because they wanted to preserve a shred of confidence. The president called for it.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We can solve this crisis, and we will.
UNIDENTIFIED MALE: OK. Let's go.
SESNO: But they've been saying that all along and it keeps getting worse. Governments have been a step behind since the dams burst. What if they hadn't used words like bailout and rescue, words that suggest a problem that can be fixed? Said that some of these lost savings and jobs won't ever come back.
Those aren't popular things to say in Washington. And on the campaign trail where you're supposed to be optimistic and always have a plan, the candidates have had to throw out their play books because now it's about survival and the agony has led to irony.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: The current crisis demands a global response.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: My friends, we got to stop spending.
SESNO: The candidates who said they'll tell it to us straight won't say they don't know where this is going or whether what's been done will really work, or what they'll do next if it doesn't. It'd be too uncertain, too negative, a bad sound bite.
UNIDENTIFIED FEMALE: At the lows today, we were down better than 700 points.
SESNO: And the media, which often think in sound bites, aren't believed either, blamed alternatively for feeding the panic or missing another one. So with less than a month to go until the election, there are no prescriptions for this. These markets have to play themselves out.
(END VIDEOTAPE)
SESNO: So, John, while the markets play themselves out, where the rest of us are sort of left wondering where we're going. And as we see these markets peeing all over the place, is confidence back? Is it not back?
Here we're going hear a plan or something like that from John McCain today. As I say, we'll have another debate this week. There's some really tough questions that these candidates should be asked. The problem is their crystal ball probably will not tell us where we're going because they just don't know. None of us do.
ROBERTS: Well, you know, in terms of what McCain is going to say today, it seems that they're dialing way back off of what the initial indication was. According to the campaign, he's going to give strong, clear, straight talk that we believe will begin a turnaround for the campaign and encourage voters to take a new look at his broader economic policies, but nothing really that sounds like a specific plan.
I think that Senator Graham there gave a little bit of misguidance on that yesterday. So if nobody is coming up with a brand new plan, nobody is talking about definitive ways to fix this, where is the voter left, Frank?
SESNO: The voter is left, John, trying to have to make a judgment on judgment, I think, because they can't climb into the specifics of this. These candidates aren't the ones who are making the policy.
You know, it reminds me a little bit of the way Rudy Guiliani handled New York after 9/11. There was a lot he didn't know and he said it. And he conveyed emotion without being emotional. These candidates are in that very, very difficult place right now, where we're all, all of us, asking these very tough questions. They actually don't have the answers, but they have to give some framework for what they think and where they take us because guess what, pretty soon, it's going to be on one of these guys' watch.
ROBERTS: Yes. A lot of tough questions out there. You know, will I be able to put food on my table? Will I have a job? Will I have a house? Will I be able to retire?
SESNO: Will I have savings left?
ROBERTS: Yes. Difficult questions.
SESNO: Will I be able to send my kid to college? Yes.
ROBERTS: Frank, thanks so much for that.
SESNO: Sure, John.
ROBERTS: You really put it in perspective today. SESNO: Sure.
KIRAN CHETRY, CNN ANCHOR: Well, the Clintons hitting the campaign trail for Obama this weekend. The senator and former president appeared at a campaign stop in Scranton, Pennsylvania with Joe Biden. Hillary Clinton attacks the Republicans on the economy.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), NEW YORK: Sending the Republicans to solve this economic crisis is like sending the bull to clean up the China closet. They broke it and we're not buying it anymore.
Barack Obama and Joe Biden will be leaders who will lead us out of this economic crisis. They will once again clean up this economic mess that Republicans have left behind.
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: If you ask yourself 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)
CHETRY: And a programming note, tomorrow on AMERICAN MORNING, Hillary Clinton will be our guest.
Meanwhile, John McCain was back at his campaign headquarters in Arlington, Virginia. He gave volunteers there an impromptu pep talk about the upcoming presidential debate.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: After I whip his you know what in this debate, we're going to be going out 24/7.
(END VIDEO CLIP)
CHETRY: John McCain will be back on the campaign trail today in Wilmington, North Carolina.
ROBERTS: McCain and Obama are gearing up for their final presidential debate. It will be on Wednesday. Join the best political team on television for your front row seat, live from Hofstra University in New York at 9:00 p.m. Eastern right here on CNN.
Sarah Palin brings up abortion on the campaign trail. How her attack on Obama will play with voters.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP) GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: So I listened when our opponent defended his unconditional support for unlimited abortions and he said -- he said that a woman shouldn't have to be "punished with a baby" -- punished with a baby. It's about time that we called him on it.
(END VIDEO CLIP)
CHETRY: That's Republican vice presidential candidate Sarah Palin attacking Barack Obama on abortion over the weekend. She was referring to comments that Barack Obama made in March about sex education. He says he wants to teach his two young daughters values and morals, but if they make a mistake, he wouldn't want them punished with a baby or a sexual transmitted disease.
Now, will those comments help fire up the GOP base or turn off moderate undecided voters?
David Brody is a CNN political contributor and a national correspondent for the Christian Broadcasting Network. He joins me this morning from Washington.
David, good to see you today.
DAVID BRODY, SR. CORRESPONDENT, CHRISTIAN BROADCASTING NETWORK: Hey, Kiran, how are you?
CHETRY: So John McCain has typically shied away from abortion. In your column on Saturday, though, you refer to some of the things that the McCain campaign, particularly Sarah Palin has been talking about on the stump. And you say, I'm surprised they waited so long. How would this help right now as they go after undecided voters?
BRODY: Well, I think it helps in quite a few different ways, but let's look at the evangelist base. A lot of times there has been the sense that, you know, once Sarah Palin came on the campaign trail with John McCain, she had Evangelicals at hello, if you will.
But remember, those evangelical numbers need to increase in key places like Ohio, in the Cincinnati region, for example, in Pennsylvania, where she was over the weekend in Johnstown. I mean, they need to get those numbers up even more.
The abortion issue is a pew standard, if you will. In other words, it gets people out of the pews and says you know what? We need to think about what we're doing here as Evangelicals and whether or not they want to vote for McCain or against Obama, if you will. And so, Sarah Palin plays to this emotional connection when the abortion issue comes up. It kind of connects the abortion issue a little bit with Bill Ayers in the sense that they're trying to portray Obama as the scary liberal.
Kiran, if you noticed, she did not talk about Roe v. Wade. That's a very polarizing subject in this country. But she did talk about the Born-alive Infants Protection Act and some of the other more liberal positions that Barack Obama has on abortion. And that's where they think the winning ticket will be.
CHETRY: All right. You know, I want to ask you about this -- some of the growing rhetoric that we're hearing and also some of the responses from those in the crowd.
Well, this weekend in Iowa, Reverend Arnold Conrad delivered the invocation of the McCain rally on Saturday. And this is a portion of what he said that raised some eyebrows. He said, "There are millions of people around this world praying to their God -- whether it's Hindu, Buddha, Allah -- that his opponent wins for a variety of reasons. And Lord I pray that you will guard your own reputation because they're going to think that their God is bigger than you, if that happens."
Now, you know, John McCain actually had to then make a statement saying that it's a distraction to question people's religious backgrounds, among other things. But how is something like that going to be received on the campaign trail?
BRODY: Well, there are a couple of different elements going on here. I mean, clearly, any time that the McCain campaign has to come out and say this was a distraction, I mean it's problematic, clearly.
I mean, Barack Obama has talked about his Christianity in depth. And so, really to have these types of prayers at a campaign rally, really does take away from the overall message because it gets the media and others focused on those type of events.
But look, I mean it does play in also, Kiran, to this, what we've been hearing this angry mob mentality, though I think some of those reports may be overblown but clearly there are concerns. You know, to paint Obama, remember, Kiran, as this "scary liberal," and then you have all of these e-mails that have been out there for a while calling him a Muslim, you put the two together and that is toxic.
And so, now you have pastors doing this as well to really talk about this. There are concerns. And I have to tell you, it's interesting because I've been at many of those rallies and when you hear these pastors talk about praying for Senator John McCain and praying for Governor Palin, what about praying for Senator Barack Obama and Joe Biden? I mean, clearly, I mean, as all Americans, you would think that pastors would be praying not just for the Republican candidate but maybe all candidates altogether.
CHETRY: Right. Of course. All right.
Well, David Brody, CNN contributor and senior national correspondent with the Christian Broadcasting Network, thanks for being with us this morning.
BRODY: Thanks, Kiran.
ROBERTS: A former treasury secretary says the financial crisis is worse than the crash of '87. The consequences for your money and whether or not there's a silver lining in all of this. Our panel of experts weighs in. CHETRY: What do women want? Putting gender politics into perspective.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: There is a change for women not for a woman. When's the next woman going to have this opportunity? Is it going to be next year or is it going to be two (ph) years?
(END VIDEO CLIP)
CHETRY: Sarah Palin, Hillary Clinton and where do women go from here?
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-one minutes after the hour. Let's fast forward now to find out what else is going to be making news this morning.
Democrats in Congress considering another economic stimulus plan. But unlike the first one which sent checks to individuals, this one would include a lot of help to state and local governments so they wouldn't have to slash education and health programs. The package could cost as much as $150 billion. A vote could be held shortly after the election.
President Bush now has exactly 100 days left in office. He's going to spend the day dealing with the global economic crisis, and he's meeting with Italy's prime minister, Silvio Berlusconi, at the White House.
And Columbus Day celebrations across the country this morning. Here in New York, the 97th annual parade on Fifth Avenue begins at 11:30 Eastern. And that's what we're following this morning.
And now, let's move over to check in with Rob. He is at the extreme weather center in Atlanta. And time to check out the skis...
ROB MARCIANO, AMS METEOROLOGIST: Yes. Right.
ROBERTS: ... make sure they're all waxed up for Big Sky Country, huh?
MARCIANO: Yes, get the boards out, my friend, because it's getting to be that time of year. We've got heat on the West Coast, heat on the East Coast and in between, a fair amount of snow. Check out some of the video coming out of Montana. John mentioned Big Sky, that's a popular ski resort.
These pictures no more -- you know, a Hallmark card, maybe a Christmas card. Take a snapshot of that and send it to your friends. Oh, it is time to get ready for the action of the slopes. And the kids are out there to -- well, they had to climb themselves, but did a little snowboarding and little sledding. Check out some of these numbers. All right. Thanks for that iReport. Keep sending them in. We love the snow.
Forty-nine inches at Red Lodge or near Red Lodge, Montana. A lot of these are pretty remote. But Billings' complete storm total of almost two feet of the last three days so that's some serious snow. You better believe it and there will be more to come, even after last year's -- this monster, monster snow hit (ph).
All right. That storm now heading to the east. Still some leftover snow showers in northern Montana. We mentioned the heat out west. We're going to have it again. Red flag warnings are posted.
Critical fire danger for southern California, and we do have a number of fire there burn. They're one especially close to Los Angeles, so that's a serious situation there.
We had a record breaking heat yesterday in Chicago. Temps today once again in the lower to mid 80s. Seventy-eight degrees in New York City for Columbus Day.
John, if I was up there, I'd go out to Columbus Circle, just walk out the CNN studios and genuflect in front of the statue of Columbus Circle. I think you should do the same. Come on. Be Italian for one day.
ROBERTS: Everybody is a little bit Italian today. Just like in March, everybody is a little bit Irish.
MARCIANO: Exactly.
ROBERTS: All right. Rob, thanks very much for that. See you soon.
CHETRY: Still money is getting tighter and so are the polls in some key battleground states. We're going to take a look at the candidates' ground game today and places on the map that could switch sides before November.
Also, the bright side of the economic crisis? Is there really one? Well, how it could teach us to save and have a little more discipline with our hard-earned cash.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
GEORGE SOROS, BILLIONAIRE INVESTOR: The housing bubble acted as a detonator that exploded the super bubble that was like in, you know, in an atomic bomb, you have a small explosion that creates a big explosion.
(END VIDEO CLIP) ROBERTS: Billionaire investor George Soros describing the world money crisis and asking why leaders did not see it coming. He also called it "a crisis of a lifetime."
Well, joining me now is Chrystia Freeland. She is the U.S. managing editor for the "Financial Times." Soros wrote an editorial today in the "Financial Times" newspaper. And Jeffrey Sachs is an economist and director of the Earth Institute at Columbia University. He's also a special economic adviser to U.N. Secretary General Ban Ki- moon.
Jeff, why don't we start with you because you were down at these IMF meetings in Washington over the weekend. What did and didn't get done?
JEFFREY SACHS, DIR., EARTH INSTITUTE AT COLUMBIA UNIV.: I think progress was made actually. There was an agreement among the main finance ministers on the broad outlines of what should be done, protecting the banks, recapitalizing the banks, being up front and forward in the crisis right now.
In Europe, there was also an agreement taking core steps. More money has been put into bank capital in Europe this morning. I think it's starting to happen in effect at least of probably putting a floor under the complete collapse. It's not going to turn around this crisis. That's not going to stop a recession in the U.S., but it could stop the collapse.
ROBERTS: It would be nice to know if the basis of our economy is built on something other than pillars of salt or pillars of sand.
Chrystia, this idea that the White House is talking about now, completely revamping the way it's going to approach the $700 billion bailout. Not buy up these toxic securities, instead take an ownership stake in these banks, inject a lot of capital in there, recapitalize that industry. Is that a good idea?
CHRYSTIA FREELAND, U.S. MANAGING EDITOR, FINANCIAL TIMES: I think it is. That's what Professor Sachs was talking about. You know, I think that we have moved from this idea that it's just a crisis of liquidity, it's just a crisis of confidence, which is what the toxic debt buyout was focused on, to the idea that there's a real, serious problem with solvency in all the big banks around the world.
And what we're seeing now, which I think is encouraging, is an emerging global consensus and what we're going to be seeing it looks like is the big countries of the world going in, taking equity stakes. It's much cleaner. They're just injecting the capital directly and also it's fairer because the governments are going to end up owning stakes in these banks.
What I think is important is that now that they're talking about this, they have to act quite quickly, because the fact that this plan is on the table means that private money that might have gone into banks is really anxious. One of the things that will happen if the governments come in and take these equity stakes is existing equity holders will be diluted quite severely. So now is not a moment when you're waiting for this government plan to happen that you're willing to come in with your own $10 billion. And that's why we're seeing some issues with Morgan and Mitsubishi.
ROBERTS: You know, yesterday, Jeff, I was watching the Sunday morning programs. Former Treasury Secretary Larry Summers was on. And he declared that this is worse than the crash of 1987 because it affects not just the stock market, it affects so many other things. But would you agree with that? And is this global coordination that you're talking about, or this idea of global coordination enough to stop it to turn it around?
SACHS: I think in terms of the economic outcomes that are going to occur right now, decline of housing construction, surely, big decline of consumption, recession, rise of unemployment, this will be a very, very significant shock. And so I think that it is the biggest of the financial crises. It clearly is affecting lots of other economies around the world.
A lot has been said over the last few weeks about the complete collapse, the Great Depression. I think it's pretty clear that's not going to happen.
ROBERTS: But as bad as 1987?
SACHS: Well, remember, '87 was a sharp shock financially, but it didn't lead to a massive economic downturn. This one is going to have a bigger effect on the so-called real economy, the Main Street economy.
ROBERTS: You have an article in today's "Financial Times." You look at four consequences of the financial crisis. You say that America's very face of capitalism hangs in the balance. Will capitalism, as we know it, survive, Chrystia?
FREELAND: I think it will, but I do think that this crisis means that for ordinary Americans who have felt for such a long time that if you put your money in stock, that that you're going to see growth and that will pay for your retirement. It will pay for your kids to go to college. This has really, really shaken people, and I think it's the moment when we saw the Dow crashing that suddenly this crisis became a reality for people on Main Street. So I think it's going to change people's relationship with the market.
ROBERTS: A lot of questions going forward.
Chrystia Freeland, Jeff Sachs, it's always great to see you. Thanks for coming in today.
SACHS: Thanks a lot.
ROBERTS: Kiran.
CHETRY: Well, it is 7:30 here in New York. Some of the top stories this morning. Signs pointing to a rebound day on Wall Street after the Dow's worst week ever. Right now, Dow futures are up over 300 points. In Australia, stocks gained more than five percent. Hong Kong's Hang Seng also added more than 10 percent and London's FTSE is up four percent this morning.
An American has won the Nobel Prize in Economics. He's "The New York Times" reporter and Princeton professor Paul Krugman honored for his studies on free trade and globalization.
And your kids may need a lot more vitamin D. There's a leading pediatric group saying that you need to double the daily recommendation to 400 units for children and teens. The new advise is based on growing evidence that vitamin D prevents serious diseases. The group says formula-fed babies generally get enough vitamin D but breast fed babies as well as toddlers and even teens may need to take a daily supplement.
With the economy still dominating on the campaign trail with just 22 days left, the latest CNN poll of polls shows that Barack Obama leads John McCain by eight points. 49 percent to 41 percent 10 percent still unsure.
And McCain campaign shifting it's strategy, moving away from attacks and choosing a softer tone. Our Jim Acosta joins me now from Washington with more.
Good morning, Jim.
JIM ACOSTA, CNN CORRESPONDENT: Good morning, Kiran. We heard yesterday John McCain saying he's going to whip Barack Obama's you know what. But it's important to know that he said that with a smile. So it's not just the feel of autumn in the air, it's 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.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Who's ready to lead?
UNIDENTIFIED MALE: You!
MCCAIN: 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 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 scared as president of the United States. Now I just - now look -
ACOSTA: The see sawing message left leading conservatives voicing doubts.
UNIDENTIFIED MALE: The candidate himself is saying he's a decent family man. His ad is saying he's a decent family man and a liar and his running mate says a decent family man is a liar and he pals around with terrorists. I mean the dissonance is paralyzing.
ACOSTA: One of McCain's own civil rights heroes 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's remarks then started pointing fingers over who crossed the line first.
UNIDENTIFIED MALE: There's absolutely nothing being done in the state of Iowa by our candidates John McCain or Sarah Palin that would incite that kind of thing.
ANNOUNCER: McCain is resorting to smears and false attacks. Barack Obama launched his first campaign here, not in anyone's living room.
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: 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 on Washington and on Wall Street." Kiran.
CHETRY: All right. It looks like we're going to be hearing something new from John McCain out on the stump today. So, we'll have more details on that a little bit later. Jim, thank you.
ROBERTS: Well, the electoral map is becoming harder to predict in these tough economic times. Today both candidates are trying to lock up votes in key battleground states. And our Alina Cho joins us now with more on all of that.
Good morning to you.
ALINA CHO, CNN, CORRESPONDENT: And good morning to you. As you know, a lot can happen in these final days, John. Good morning, everybody. 22 days until the election, all 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. 20 electoral votes there. It's why John McCain and Barack Obama are spending so much time campaigning there.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: How are you?
CHO: 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.
MCCAIN: I need you to 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 three points with five percent of voters undecided.
PALIN: We are so excited to be here. We also recognized it's going to be a real hard-fought contest here in Virginia.
CHO: Both Sarah Palin and McCain campaign separately in Virginia today. A once reliably Republican state. But our most recent poll of polls there has Obama up by four points with six percent of voters undecided. McCain also campaigned in North Carolina today. Another red state that he's 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 this 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: So with 100 electoral votes still up for grabs, 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 and in the past eight years, 200,000 people have lost their jobs there. So John, you can bet that people will be going to the polls with that in mind. The economy is issue number one. And as one analyst said, Republicans seem to have total ownership of that problem, fair or not, it's true.
ROBERTS: Yes, the economy is always a big problem there in Ohio, but in the past years, 2004 and 2000, sort of been trumped by this idea, or 2004, 2002 trumped by this idea of security. So --
CHO: That's right.
ROBERTS: We'll see how much that plays a part here.
CHO: And of course, John McCain trying to put a focus on that on his final days as well.
ROBERTS: All right. Alina, thanks so much for that great report.
CHO: You bet.
CHETRY: Our Gerri Willis is logged on, speaking of the economy. She's taking questions about your money right now. Hey, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey there. 401(k)s, annuities, student loans, we'll answer your questions, you can still get yours in at CNN.com/am, answers after the break.
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ROBERTS: Well 20 minuets to the top of the hours, Gerri Willis is answering your money questions this morning. She's been working the blog, hearing from a lot of folks out there. What have you got for us?
WILLIS: We have Suzie in Eugene, Oregon asks "My husband and I have been contributing as much as possible to our 401(k)s and our companies are matching the funds. We are considering stopping the contributions during these volatile times and putting the money in a savings account even though we'd lose the company matched portion. What's your advise?
I have to say, I would and I'm doing this myself, continue contributing to your 401(k), you don't want to lose that on the free money from your employer and you want to build that money overtime particularly if you're ten or more years from retirement.
And Matthew in Columbus, Ohio asks "as a senior in college, looking forward to attending grad school, will there be federal student loans available for me in light of the current crisis? And how will my current thousands in student loans be affected. The federal government is still lending money to students who want to go to school, so I don't think you have to worry about that. If you need a private loan from a private lender, well then, you might want to think twice. That's very difficult money to get. And we also have a third question, I'll just save that for the next - do we want to do that? Next hit.
ROBERTS: All right. Gerri, looking forward to it.
WILLIS: Thank you.
ROBERTS: Thank you.
41 minutes after the hour. You're watching the most news in the morning.
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CHETRY (voice-over): What do women want? Putting gender politics into perspective.
UNIDENTIFIED FEMALE: It was a change for women, not for a woman. When is the next woman going to have this opportunity? Is it going to be next year or is it going to be two years?
CHETRY: Sarah Palin, Hillary Clinton and where do women go from here? You're watching the most news in the morning.
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CHETRY: Welcome back to the most news in the morning. Two strong and very different women are major parts of this year's presidential campaign. Sarah Palin and Hillary Clinton. The things that separate them politically also divide millions of women voters who could pick the next president. Carol Costello looks at the power of women in this year's election.
CAROL COSTELLO, CNN CORRESPONDENT: John and Kiran, women in Ohio have strong opinions especially when it comes to Sarah Palin and Hillary Clinton. Talk about a split. It's more like a chasm.
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COSTELLO (voice-over): If election 2008 has caught us anything, it's that women do not speak with one voice, they have as many differing opinions as they do styles. But perhaps no two women illustrate that point better than the differing opinions Sarah Palin and Hillary Clinton inspire. Parodied so flawlessly by "Saturday Night Live."
TINA FEY AS GOV. PALIN: Hillary and I don't agree on everything.
AMY POEHLER AS SENATOR HILLARY CLINTON: Anything.
COSTELLO: But in middle America, near Youngstown, Ohio, it's more than style.
UNIDENTIFIED FEMALE: Hillary never showed her feminine side and that makes a difference. She can hang with the big boys but she couldn't go bake cookies.
COSTELLO: That's important to Palin's Ohio supporters, her look, her family, her way of talking validates their own lives. UNIDENTIFIED FEMALE: I think for women who worked very hard at being a mother and a wife and support in their community that she has set the standard for it.
COSTELLO: Clinton supporters who come from the same Ohio roots clearly see Palin in a different light.
HILLARY CLINTON, FMR. PRESIDENTIAL CANDIDATE: We will do -
COSTELLO: They cite Clinton's edge and her intelligence as examples that women can be as smart and tough as any man and Hillary Clinton doesn't need to soften her appeal by using her femininity.
HILLARY CLINTON: Let's go on to the White House.
UNIDENTIFIED MALE: I would say much for Hillary because I thought she was seasoned and she knew what she was doing.
COSTELLO: They see Palin as a pretender.
KATHERINE KAHN, OHIO VOTER: I don't feel that she has any experience, part of me is a bit appalled that she's being tossed up as viable female candidate.
COSTELLO: But experience isn't what Palin supporters put first on the list. Her conservative social agenda, especially her opposition to abortion rights, is tops.
JOANNE BRAFHEN, OHIO VOTER: I think that we need people who will take a stand on that and try to get American on a more moral path.
COSTELLO: Ohio Clintonites obviously see abortion rights in a very different light. The only thing both Palin women and Clinton women see eye to eye on is that if Palin isn't elected to the White House, we really don't know where women go from here?
The right to vote suffers with a change for women not for a woman. When is the next woman going to have this opportunity? Is it going to be next year or ten years?
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COSTELLO: Other women are more helpful, telling me it's a great start. It's good to see women in positions of real political power, they're sure there are more to come. John, Kiran.
Roberts (voice-over): It's the movie you can bet President Bush won't be buying a ticket to see.
PRES. GEORGE W. BUSH: Sure, historians will say gosh, I wish he could have done better.
ROBERTS: Could Oliver Stone's "W" help sink the Republicans' chances on election day?
UNIDENTIFIED MALE: It could actually backfire. MCCAIN: You're watching the most news in the morning.
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ROBERTS: Just 22 days now until the nation chooses its next president and filmmaker Oliver Stone is getting ready to unveil his October surprise. His latest film "W" that portrays President Bush as a drunk in his college years and follows him all the way to the invasion of Iraq.
CNN's Kareen Wynter is taking a look at just how it might impact this election.
KAREEN WYNTER, ENTERTAINMENT CORRESPONDENT: John, Kiran, good morning. This political film is being released right before the election with some wondering could it actually influence voters.
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PRES. GEORGE W. BUSH, UNITED STATES OF AMERICA: I'm sure historians will say, gosh, I wish he could have done better.
WYNTER (voice-over): It's Oliver Stone's latest presidential bio-pic "W," recounting what the film depicts as the current president's booze-soaked youth to a scathing indictment of his time in office. The film is anything but flattering to President Bush.
OLIVER STONE, DIRECTOR: I wanted Americans to see that this character, who they voted for a little bit better, understand why we voted for him, what it is he's done and where we are now.
UNIDENTIFIED MALE: who do you think you are? Kennedy? You're a bush, act like one.
WYNTER: Stephen J. Rollins, professor of film and politics at U.S.C., says Stone's decision to release the film just 18 days before the presidential election was no accident.
STEPHEN J. ROSS, PROFESSOR/AUTHOR: It is the impact that he wants to have right now and he's really aiming, I think, not at the democrats, not at the Republicans, but at those independents. That 20 percent that both sides are still battling for.
WYNTER: Ross says even those who choose not to buy a ticket could still be influenced, from posters and billboards that read a life misunderestimated to TV spots and web sites with a slogan everyone can grow up to be president. But Ross says this kind of disparaging marketing could flop.
ROSS: There are people who are going to see Oliver Stone's film as an example of negative campaigning, of the character smear against an outgoing president and Oliver Stone is a filmmaker who often crosses the line like Michael Moore, but as a political strategy, it actually backfires.
WYNTER: Moore's 2004 movie "Fahrenheit 9-11" slammed the current administration and was a box-office hit but it failed to keep Mr. Bush from winning a second term.
BUSH: This is for all those who doubted I won the election.
WYNTER: Whether it's seen as a character assassination or art imitating life. "W" like most of Stone's films, will probably leave audiences loving or hating it.
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WYNTER: When we asked the White House about this film, they had no comment. John, Kiran.
ROBERTS: Kareen Wynter reporting for us on that. Kareen, thanks so much. By the way, director Oliver Stone will be our guest here on AMERICAN MORNING, live on Wednesday, the most news in the morning.
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ROBERTS (voice-over): The race and racism.
UNIDENTIFIED MALE: People are actually not telling us who they voted for.
ROBERTS: Why Barack Obama's lead could mean nothing and how the color of money could change things this time around. And the real presidential legacy.
UNIDENTIFIED FEMALE: I am petrified about what's at stake here.
ROBERTS: Issue number one for many voters, the supreme court. Choosing the right justices is critical to America. On the most politics in the morning.
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CHETRY: Senator John McCain is trying to diffuse some of the anger from a few of his supporters who are lashing out at Barack Obama.
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UNIDENTIFIED MALE: We're scared, we're scared of an Obama presidency. And I'll tell you why. I'm concerned about, you know, someone that cohorts with domestic terrorists such as Ayers.
MCCAIN: I have to tell you, 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 - I just - now, look I -
UNIDENTIFIED FEMALE: I got to ask you a question, I do not believe in and I can't trust Obama. I have read about him and he's not -- he's an Arab - he's not -
MCCAIN: No, ma'am, no ma'am. He's a decent family man, citizen that I just happen to have disagreements with - on fundamental issues. And that's what this campaign is all about. He's not. Thank you. (END VIDEO CLIP)
CHETRY: Well that's John McCain on the campaign trail. In fact Barack Obama actually praised John McCain for turning down the heat, let's listen.
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SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I want to acknowledge that Senator McCain tried to tone down the rhetoric in his town hall meeting yesterday. I appreciated his reminder that we can disagree while still being respectful of each other.
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CHETRY: Joining me now to talk about this from Cincinnati, Ohio, is Kenneth Blackwell, the former Ohio Secretary of State, and also a supporter of John McCain. And from Chicago Illinois, Congressman Jesse Jackson Jr. He supports Barack Obama.
Thanks to both of you for being with us. I'm sure you've been following all of this.
And I'll start with you, Kenneth. Did the McCain campaign sort of bring this on themselves, if you will, by some of the words that both Sarah Palin and other McCain surrogates and supporters have said on the campaign trail. That they sort of let this get ahead of them and now they're trying to dial it back.
KENNETH BLACKWELL (R), FMR. OHIO SECY. OF STATE: Well, no. I don't think that's the case at all. John McCain went to the Urban League, went to the NAACP, he went to Memphis for the observance of the Dr. King's assassination. And John McCain has basically said, look, I wasn't there on the front lines in the Civil Rights movement. But, I'm here now.
So, no. I don't think the McCain campaign has brought it on itself. But look, it is the legitimate issue to talk about affiliations, associations and alliances. That gives you a glimpse of who a person is. My grandmother used to say, tell me who you walk with and in part, I'll tell you who you are. So that's a legitimate issue. What McCain has done is turn back the excessive rhetoric. I mean, this whole notion that Senator Obama is an Arab, you know, is off the chart and he was right to dial that back.
CHETRY: Is it a difficult position though, and I want to ask you Congressman Jackson, for McCain to have to be on the then stump defending his rival?
REP. JESSE JACKSON JR. (D), ILLINOIS: Well, of course it is. But let me say that I'm impressed with John McCain and so is Senator Barack Obama and the desire of both of the candidates to truly lead on some very difficult questions.
Obviously our supporters on both sides of the political spectrum are adamant, they're excited about their support for their candidates. And I think the real difference here is, and the concern here is, I think John McCain wants his base to be excited. Clearly Barack Obama wants and is exciting his base. But we don't want to incite people.
There's a difference between excitement and incitement. If we're bringing people together, our democracy flourishes, we're all the better, as are people for it. If we're inciting people, we're the consequences of that. We've seen it in previous elections. It could be devastating for the Republicans.
BLACKWELL: Well stated. Well state.
CHETRY: And Kenneth, by saying things like what Governor Palin said last week on the stump last week, which was that Barack Obama was quote, "palling around with terrorists."
Does that incite?
BLACKWELL: No, I don't think so. I think that again, affiliations, associations give you a glimpse in a person's history. Now, is that enough in itself at a time when we're looking at a crisis of confidence in our markets? No, it's not enough. And I think the polls have indicated that.
But that's a point of contrast that's legitimate. You can go over the line, I don't see that the candidates or the principles have done that. They've done the right thing as the Congressman just said, in terms of trying to dial it back and say, here's our differences of opinions on policy and direction. Here are our histories, you compare.
CHETRY: You know, Congressman Jackson, your fellow Congressman of Georgia, Congressman John Lewis, likened the McCain campaign to the segregation as George Wallace. In the quote he said, "What I'm seeing reminds me too much of another destructive period in American history. Senator McCain and Governor Palin and sowing the seeds of hatred and division."
Now, he's since dialed back on those comments. Both campaigns criticized the comments.
But, do you think it's as bad as Lewis said?
JACKSON: Well, let me say this. Actually, my friend Ken Blackwell and I have a disagreement. I happen to think that the idea that the Democratic nominee has been palling around with terrorists, when Mr. Ayers was a weatherman and Barack Obama was 8 years old.
When Mr. Ayers was a weatherman, I was 3 years old. There seems to be this emphasis here, on trying to association Barack Obama with people who have challenged America in very violent ways. And that's unfortunate.
If I chose to look back at the 8 in John McCain's life, when he was 8 or 18, or 28, or 48, 58, or 68, I could say that some of the people he served with in the United States Senate including Jesse Helms and Strom Thurman and Trent Lott, people who have a sordid past on some of these questions. Did he distance himself from them? Did he disassociate himself from them? Did he leave the Republican caucus? Did he say, I'm not going to be a senator anymore because of the remarks or things that they've made that were controversial?
And so I think we have to judge these candidates based upon their own character, based upon their own commitment which has really been tested over the last couple of years of this campaign. If we can focus on the issues, Kiran, that matter to the American people. the American people will be all the better for it and I think that's what Barack Obama wants.
CHETRY: All right. Well, we're going to have to leave it there.
I want to thank both of you, Representative Jesse Jackson Jr. and Kenneth Blackwell.
Thanks for your time this morning.
JACKSON: Thanks for having us.
