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Lou Dobbs This Week

Reviewing the Coverage on Lou Dobbs Tonight for the Week

Aired October 18, 2008 - 19:00   ET

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


KITTY PILGRIM, CNN HOST: Tonight: The presidential election is just over two weeks away, and Senator McCain has a new weapon to fight Senator Obama -- Joe the Plumber.
And: The FBI has launched an investigation into possible voter fraud by the left-wing group ACORN, a group with links to Senator Obama.

We'll have all of that and much more -- straight ahead here tonight.

ANNOUNCER: This is LOU DOBBS THIS WEEK: News, debate, and opinion. Here now: Kitty Pilgrim.

PILGRIM: Good evening, everybody.

The presidential candidates tonight are in the final lap of their race to be president. Both candidates are trying to convince voters they have the credentials to tackle this nation's economic crisis and other issues.

Now, polls indicate Senator Obama is in the lead but some pollsters say the gap is narrowing. Senators Obama and McCain both are trying to win the support of independent voters in key battleground states.

Candy Crowley has our report.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN CORRESPONDENT (voice-over): Different generations, personalities and philosophies. One is up, the other down. But less than three weeks out, they do share a mission, convincing voters it's not over.

SEN. BARACK OBAMA, (D-IL) PRESIDENTIAL CANDIDATE: For those who are getting a little cocky, I've got two words for you: New Hampshire. I learned right here, with the help of my great friend and supporter, Hillary Clinton, that you cannot let up. You can't pay too much attention to polls.

CROWLEY: This may take practice, because earlier at a $30,000 per person New York fund-raiser, Obama all but solicited resumes.

(BEGIN AUDIO CLIP)

OBAMA: Once we're done, there's extraordinary expertise in this room and we're going to need good advice.

(END AUDIO CLIP) CROWLEY: There is a fine line between hubris and confidence. Hubris could turn off the persuadables, the undecideds and it could convince some of the faithful they can stay home.

Confidence is presidential and there is good reason for it. It is the story told in Obama's itinerary. From New Hampshire, he works his way through a string of red states -- Virginia, Missouri, North Carolina and Florida. George Bush states in 2004.

The campaign also eyes a return of campaign workers to Georgia and a play for North Dakota, West Virginia, and Kentucky. It's not just about running up for score but about helping down ballot candidates, particularly those running for the U.S. Senate where Democrats hope to reach the magic 60. The number of lawmakers it takes to break a filibuster.

SEN. JOHN MCCAIN, (R-AZ) PRESIDENTIAL CANDIDATE: Joe the Plumber. Joe's the man.

CROWLEY: John McCain is in search of a little more Joe-mo (ph) and a little less George Bush.

MCCAIN: The last eight years haven't worked very well, have they? I'll make the next four better.

CROWLEY: As he pushes away from the president and tries to embrace the working class, McCain is also doing battle on a third front. Even as Obama can't afford to look as though he's already won, McCain can't seem as though he's already lost. It could depress the turnout of his Republican base and tempt undecideds to go with the flow of the polls.

McCain's first post-debate stop was Pennsylvania, where he is down by 13 points.

MCCAIN: We never give up. We never quit. We never hide from history. We make history.

CROWLEY: McCain's upcoming travel tells the rest of the story. Pennsylvania, which hasn't voted for a Republican president since 1988, is the exception. McCain, like Obama, is beginning his own red state tour -- Florida, North Carolina, Virginia, Ohio. The difference is, McCain is on defense in his own territory.

Candy Crowley, CNN, New York.

(END VIDEOTAPE)

PILGRIM: Joe the Plumber has become an instant celebrity. Plumber Joe Wurzelbacher is now a big talking point in this presidential campaign. His name came up 26 times in the final presidential debate.

David Mattingly has the report.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): Suddenly everyone's talking about this guy.

UNIDENTIFIED MALE: Not since Nixon have we heard so much about plumbers by the way, but...

UNIDENTIFIED MALE: Joe the Plumber.

JOHN ROBERTS, CNN ANCHOR: That's one way of putting it, I guess.

KIRAN CHETRY, CNN ANCHOR: It's Joe the Plumber, right? It's over, at least.

ROBERTS: Down the drain for Joe the Plumber.

UNIDENTIFIED MALE: Joe the Plumber.

UNIDENTIFIED FEMALE: Joe the Plumber.

UNIDENTIFIED MALE: Joe the Plumber.

SUZANNE MALVEAUX, CNN CORRESPONDENT: I think he was the winner in this debate, it's Joe the Plumber.

MATTINGLY: The media has descended on his Toledo, Ohio neighborhood. Think instant circus. So here's the deal, it all started over the weekend when Obama was campaigning in Ohio.

OBAMA: What's your name?

JOE WURZELBACHER, JOE THE PLUMBER: My name's Joe Wurzelbacher.

OBAMA: Glad to see you, Joe.

MATTINGLY: Joe explained he was ready to buy a company that makes about $250,000 a year and wanted to know if he'd pay higher taxes if Obama wins.

OBAMA: You may end up, I'd have to look at your particular business, but you might end up paying lower taxes under my plan and my approach than under John McCain's plan.

MATTINGLY: At one point in their conversation, Obama added this.

OBAMA: I think when you spread the wealth around, it's good for everybody.

MATTINGLY: John McCain lasered in on that, that "spread the wealth" line during the debate. And before the candidates were done, they named "Joe the Plumber" 26 times with more than 52 million people watching.

OBAMA: I'm happy to talk to you, Joe.

MCCAIN: People like Joe the Plumber. Joe, I want to tell you.

Hey, Joe. You're rich.

OBAMA: That includes you, Joe.

MCCAIN: I want, Joe, you to do the job.

OBAMA: The conversation I had with Joe the Plumber.

MCCAIN: What Joe wanted to do...

Joe was trying to realize the American Dream. What you want to do to Joe the Plumber.

MATTINGLY: And now, today, Joe is still the man.

MCCAIN: The real winner last night was Joe the Plumber.

OBAMA: He's trying to suggest that -- that a plumber is the guy he's fighting for.

MATTINGLY: Sarah Palin is on it too, with a slight gender twist.

GOV. SARAH PALIN, (R) VICE PRESIDENTIAL CANDIDATE: We want to cut taxes because we think like Joe or Jane the plumber thinks.

MATTINGLY (on camera): So now, everyone wants to know what Joe the Plumber thinks. And he's more than happy to tell us.

WURZELBACHER: I'm a flash in the pan. You know, I'm just a novelty. You know, Joe the Plumber is going to be fun for a couple days and then it's going to go away. And that's it.

MATTINGLY (voice-over): He knocked down a story all over the Internet claiming he isn't a registered voter.

UNIDENTIFIED MALE: Are you registered to vote?

WURZELBACHER: Yes.

UNIDENTIFIED MALE: Which party are you registered to vote for?

WURZELBACHER: To be honest with you I don't believe I'm registered to vote for one particular party.

MATTINGLY: A Toledo newspaper says he doesn't have a plumber's license. Joe says he doesn't need one now because he's working for someone who does.

WURZELBACHER: None of this is national, is it?

MATTINGLY: Oh, yes. Global is more like it.

So, how is Joe about his new role as every man or average Joe in the campaign?

WURZELBACHER: I just hope I'm not making too much of a fool of myself.

MATTINGLY: Well, he won't be short of opportunities. Maybe Joe needs a plumber's helper.

David Mattingly, CNN, Los Angeles.

(END VIDEOTAPE)

PILGRIM: Joining me now for politics, the presidential campaign, and the economy is Christine Romans, who's been following the market turmoil throughout the financial crisis. We're also joined by Bill Schneider, who's one of the most respected political analysts anywhere. Thanks for being with us.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Sure.

PILGRIM: Let's start with the economy. Neither candidate really is proposing much in the way of programs or initiatives to help the middle class.

Christine, what's your sense with each of the candidates, how they're appealing to not only to voters, but independent-minded voters who may be critical in this election?

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, they're both becoming a lot more detailed. Over the past week we've learned more. And there are a couple of places where they agree that a lot of analysts are saying are specifically focused on the voting booth.

They both agreed that seniors shouldn't have to start taking money out of their 401(k)s, their IRAs at the age of 70 1/2, and they both agree that people who are getting jobless benefits should, at least, temporarily not have to pay taxes on those. And a lot of people telling me those both resonate at the voting booth.

But independent-minded voters and middle class voters know that the agenda for the economy and the crisis has already been set. It's been set by the president, and his team, and that next year, these two gentlemen, whichever one is going to be the president, will be tinkering around the margins, as one analyst told me of that agenda that has already been set.

PILGRIM: Now, Warren Buffett features very heavily in one of the campaigns. Are voters likely to believe a candidate who has Warren Buffett standing behind him?

ROMANS: Well, that's an interesting point. I think people are more likely to believe Warren Buffett than either of the candidates at this point, because Warren Buffett, in the "New York Times," came out and said, "Look, I'm buying American and you should be buying American too. I had treasury bonds in my personal portfolio and now I'm buying stocks." He's saying there's so much fear out there right now that it's time to just go in there and start buying.

PILGRIM: Bill, do you think that the voters are actually focused on the details of some of these plans or are they getting lost in the weeds and the big picture on the economy is the most important thing?

SCHNEIDER: The big picture in the economy to most voters -- jobs, jobs, jobs and by the way, housing insurance that people won't be thrown out of their homes. Those are the big issues. The problem with these plans are, is that there isn't a lot of money. The government is running huge deficits, what is it? $450 billion, almost half a trillion dollars. So, when all the candidates -- when both the candidates talk about big plans, big proposals, they have to begin to immediately scale them back and say, "It's temporary, it's partial, it won't cost so much, it will pay for itself," because there isn't any money.

PILGRIM: Yes.

(CROSSTALK)

PILGRIM: Let me just bring up one thing, Christine. President Bush on Friday said he was going to -- it's going to take some time to unfreeze the credit markets. Everyone is talking about how long this is going to take. Let's listen to what President Bush had to say.

(BEGIN VIDEO CLIP)

PRES. GEORGE W. BUSH, UNITED STATES OF AMERICA: I know many Americans have reservations about the government's approach, especially about allowing the government to hold shares in private banks. As a strong believer in free markets, I would oppose such measures under ordinary circumstances. But these are not ordinary circumstances. We took this measure as a last resort.

(END VIDEO CLIP)

PILGRIM: When we talked about how this is playing out on the campaign trail, how is just the general economy playing with the American public? Christine, you've spent a week looking at the financial issues. What do you think this week?

ROMANS: The president admits that there are reservations, the American people have reservations, and they know what's happening here and they know that it's not good for them, and they're ticked off about this bailout, they're ticked off that the bailout keeps changing, that they're changing the rules on the fly.

We know that housing starts are down sharply, we know that there will be more jobless claims and more layoffs going ahead. I mean, the president has stated the obvious there, that the American people have reservations about what they're doing but they didn't have any other choice.

PILGRIM: Bill, I know you covered the campaign's extensively, but just as you're moving around the country, you've been moving around the country quite a bit these days.

SCHNEIDER: Yes.

PILGRIM: What are you hearing from the American public about the economy, about their basic outlook for what's going on in -- and being handled by Washington? SCHNEIDER: They're very anxious. They're very fearful. They're very worried. You keep hearing the word "Depression." Are we entering another depression?

And, in fact, our polling shows that nearly 60 percent of Americans believe the country could be going to another depression like the 1930s and we explain what that was, that a quarter of people are out of work, that people couldn't stay in their homes, they had trouble feeding their families.

And the voters say, yes, you know, that could happen. The majority of voters believe that could happen. And they want to hear answers. They want to know exactly what McCain and Obama are going to do to make sure that doesn't happen.

You know, one of the problems with the American voters is they always behave as if the president is commander-in-chief of the economy. And it's hard for them to believe that the president is not commander-in- chief of the economy. No one really is. No one controls an economy this big. They can't just give orders and expect the economy to turn around...

PILGRIM: You know...

SCHNEIDER: Especially when there isn't any money.

PILGRIM: Bill, you know, there usually is a disconnect between Washington and the American public because Washington is so remote. And now with this crisis, we've seen everyone turning to Washington to solve this.

Do you think that there's a fundamental shift in the entire attitude towards government, politics, the campaign? Are you seeing a major difference?

SCHNEIDER: Well, what we're seeing is people saying to the government -- do something, we're in a crisis. That's the way our system works. It works very poorly -- it wasn't designed to work very efficiently. That's why there's so many checks and balances and separations of power, but in a crisis, it's supposed to work. All the road blocks are supposed to fall away.

The government is supposed to do something. That is how that bailout got passed so quickly. It just went zoom and the president was signing it. But the people are very suspicious of that. When they say "Do something," that wasn't exactly what they had in mind.

PILGRIM: All right. Thanks very much, Bill Schneider. Christine Romans, thank you.

Still to come, the scandal over the left-wing activist group ACORN escalates. Was ACORN involved in a nationwide voter fraud? We'll have a special report on that.

And: A sex scandal involving a Florida congressman, charges of a possible cover-up by top Democrats in Washington. We'll have that story as well. Stay with us.

(COMMERCIAL BREAK)

LOU DOBBS, CNN HOST: The FBI is now investigating ACORN to determine whether this left-wing activist group with ties to Senator Obama promoted voter registration fraud across the country. Government officials tell CNN that the FBI is now looking at state investigations of ACORN to see whether there is a basis for a federal criminal investigation.

ACORN tonight says it hasn't been contacted by any federal law enforcement agencies and it says, quote, "We are 110 percent confident that any legitimate review of ACORN by any law enforcement entity will determine that the organization has conducted itself properly."

Other allegations of election fraud however tonight all across the country. As Bill Tucker reports, thousands of convicted felons who are ineligible to vote, have somehow found their way on to voter rolls.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): In Washington State, convicted felons can vote, but only after they've completed their sentence and been declared eligible by the courts. Yet a recent investigative report by KIRO TV uncovered tens of thousands of ineligible felons on voter registration rolls, many of whom have voted in past elections.

An investigation by "Florida Sun Central" newspaper found of the same in Florida. Lawyers for the conservative Evergreen Freedom Foundation say the voter registration process is full of holes that creates the possibility of fraud and undermines confidence in the system.

JONATHAN BECHTLE, EVERGREEN FREEDOM FDN.: If you end up with an election like some we've had here in Washington and other states as well, where it was a very, very narrow margin of victory, a few hundred votes, say, but afterward it was found out there were thousands of illegal votes cast, that really, really damages the confidence of the public in the elections.

TUCKER: Similar concerns were raised in New York state when former Governor Eliot Spitzer wanted to grant driver licenses to illegal aliens which may have enabled them to register to vote under Motor Voter Laws. The investigation of voter registration activities of the citizens group, ACORN, exposes another vulnerability.

One voter expert says the answer is to have the government register voters and get rid of outside parties.

RICHARD HASEN, ELECTION LAW EXPERT: If you look at the way most mature democracies handle their elections, the government conducts voter registration. I have long supported universal voter registration conducted by the government. So everybody who wants to register would be registered by the government.

TUCKER: However, Hanson admits such an idea would probably never get past Congress, even though the Constitution permits it.

(END VIDEOTAPE)

TUCKER: The idea of a national voter I.D. card has proven to be a hard sell in the past with critics portraying it is, as yet another way for "big brother" to be watching you, Lou.

DOBBS: All right. Bill, thank you very much.

PILGRIM: In the key battle ground state of Pennsylvania, there are new allegations of voter registration fraud against ACORN. Drew Griffin reports from Philadelphia.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT (voice-over): The good news: There have been hundreds of thousands of new voter registrations processed in Philadelphia, including a vast majority of good, clean registrations from ACORN. The bad news? Philadelphia has already sent 1,500 obvious fraudulent voter registrations to the U.S. Attorney to be investigated, every one of them from the same group -- ACORN.

(on camera): Is ACORN a group had a has been problematic in its organizing of these voter registration drives?

FRED VOIGT, PHILA. DEPUTY CITY COMMISSIONER: Yes.

GRIFFIN: Have you tried to work with them to explain to them?

VOIGT: Absolutely.

GRIFFIN: Why, you know, because this is...

VOIGT: I don't have any answers for you, OK?

GRIFFIN: Right.

VOIGT: We originally -- this has been going on for a number of years. We have met with them. We have talked to them.

GRIFFIN (voice-over): According to city officials, close to 8,000 applications turned in by ACORN are problematic, including the 1,500 already sent to the U.S. Attorney. And officials expect the number to climb. Fred Voigt says, so far his office is catching them, making sure no bad registrations lead to bad votes. But admits he has limited staff.

VOIGT: Are there going to be bad votes? Sure, there are going to be bad votes. There are always bad votes. Am I concerned that this is a close election? Of course, I'm concerned that it's a close election. But you have to weigh everything in terms of your capacity to find things out.

GRIFFIN: That's right (ph).

(voice-over): Voigt says the problem is: ACORN hires people desperate for money, including drug addicts, homeless, recovering alcoholics, even recent parolees who only get paid if they get signatures.

VOIGT: You just looked and it was all at the same hand. You know, you could see some where they used a phone book, including the apostrophe. You know, some...

GRIFFIN (on camera): Went down through the phone book and just copy verbatim right up.

VOIGT: Kitchen petition is what it is.

GRIFFIN: Kitchen petition.

VOIGT: Kitchen petition.

GRIFFIN: Sit around the kitchen. Draw (ph) a lot of petition.

VOIGT: Then throw out (ph) a petition. That's how it happens.

GRIFFIN: We went to ACORN's Philadelphia headquarters where a rally was taking place, telling volunteers the recent news about voter fraud was just another attack by the right-wing and the media on the poor.

UNIDENTIFIED MALE: That is fraud. That is voter suppression. That is not (INAUDIBLE).

(APPLAUSE)

UNIDENTIFIED MALE: The American news media will know (ph) what's going on.

GRIFFIN: Junette Marcano is the local ACORN chairperson who acknowledges ACORN hires the less fortunate but says there is nothing wrong with that.

Why is the deputy city commissioner of Philadelphia telling me that ACORN is hiring recovering alcoholics, drug addicts, homeless people, who are so desperate to get money, that they know that they don't make their quota, they just fill in any old name? That's what he's telling me.

JUNETTE MARCANO, ACORN: That's just not the point.

GRIFFIN: That's not the point?

MARCANO: No, that is not the point.

GRIFFIN: What is the point?

MARCANO: They did not deliberately go out there and say, you are homeless, you are recovering alcoholic, you are...

GRIFFIN: But has it presented itself as a problem to ACORN? Wouldn't ACORN like to run a nice, clean, smooth voter registration drive?

MARCANO: We have done that. Because if we have been able to register 85,000, above 85,000 good registrants, compared to 5,000 suspect cards, we have done a good job.

GRIFFIN: Election officials in Philadelphia say that number is actually closer to 10,000 fraudulent voter registration cards. But they really won't know until after the election.

Drew Griffin, CNN, Philadelphia.

(END VIDEOTAPE)

PILGRIM: Coming up: The FBI is now looking into the sex scandal involving a Florida congressman. Was there a misuse of power and taxpayer money?

Also: Many states could face chaos on Election Day. E-voting machine failures could put our democracy at risk. We'll have the special report.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: The FBI tonight is investigating Florida Congressman Tim Mahoney. The "Associated Press" reports the FBI wants to know if Mahoney broke any laws or misused federal funds when he hired his mistress to work in his congressional office. Congressman Mahoney succeeded Mark Foley who resigned over a scandal involving congressional pages.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): Dozens of voters gathered this week outside the office of embattled Florida Congressman Tim Mahoney, angered by an ABC News report, Tim Mahoney paid his former staffer and mistress $121,000 to avoid a sexual harassment lawsuit -- other papers have picked up the story -- and, incensed over reports of a potential money scandal stemming from yet another second Mahoney mistress.

The latest is a reported high-ranking official with Martin County government.

UNIDENTIFIED FEMALE: He's lied and we want to know the truth. Where is that money come from, Tim? You maybe a sleaze ball, we know that because of your affair with this woman, and, I understand, other women -- which I won't go into. But how -- how are these women paid? With taxpayers' dollars or from your campaign funds? Both of which are illegal.

UNIDENTIFIED FEMALE: We are a country based on innocent until proven guilty. He has not been proven guilty of this. The only thing that he admitted is to having an affair when our own president had an affair.

PILGRIM: Tim Mahoney campaigned as an ethics reformer in 2006.

REP. TIM MAHONEY, (D) FLORIDA: Every generation has a responsibility to turning over to the next generation an America that's more morale. PILGRIM: With that campaign, Mahoney won the congressional seat formerly held by Republican Mark Foley. Foley had to resign after his scandal in 2006. ABC News says this audiotape is of Mahoney firing her from his staff.

(BEGIN AUDIO CLIP, SOURCE: ABC NEWS)

MAHONEY: You're fired. Do you hear me? Don't tell me whether it's correct or not.

UNIDENTIFIED FEMALE: Tell me why else I'm fired.

MAHONEY: You know why else. I don't give a (BLEEP), OK? But if you say anything, you won't get your last paycheck.

UNIDENTIFIED FEMALE: You are firing me for other reasons, but you are not man enough to say it.

(END AUDIO CLIP)

PILGRIM: Republicans were outraged.

REP. TOM COLE. CHMN., NAT'L REPUB. CONG. CMITE: You know, we do are concerned about the Democratic leadership's involvement. They clearly knew something was wrong. We don't know what they knew, when they did knew it and what they did about it.

PILGRIM: Congressman Rahm Emanuel who was then chairman of the Democratic Congressional Campaign Committee says he confronted Mahoney about the affair in 2007, not knowing the woman was a staffer. Emanuel says he told Mahoney to act appropriately because he was in public life. Emanuel says he had no further conversations on the topic.

House Speaker Nancy Pelosi called for an immediate investigation by the House Ethics Committee saying she just learned of the charges. The Democratic Congressional Campaign Committee says its current chairman, Chris Van Hollen warned Congressman Mahoney to respond to allegations when he learned of them two months ago.

The scandal comes one week before early voting begins in Florida. Mahoney defended himself but did not take questions.

MAHONEY: I have not violated my oath of office, nor have I broken any laws, and I consider this to be a private matter.

(END VIDEOTAPE)

PILGRIM: The Mark Foley scandal of 2006 came just before the election that cost Republicans control of the House. This scandal comes even later in the campaign season, with few willing to predict that the Democrats will be able to hold this seat in November.

Coming up: The financial crisis sent shockwaves through state and local governments. We'll tell you what that could mean for you. Also, Senator McCain fights to hold on to some of the traditionally- Republican states. We'll examine the final push for votes in the battleground states.

Also, new warnings of possible chaos on Election Day because of E- voting machines. We'll have a special report on.

Stay with us.

(COMMERCIAL BREAK)

KITTY PILGRIM, CNN HOST: Election day is almost two weeks away, and electronic voting still poses a threat to this democracy. In fact, there's disturbing new evidence that some states are not prepared to handle electronic voting machine problems come election day.

(BEGIN VIDEO CLIP)

PILGRIM (voice-over): Is America ready to vote? A new report raises deep concerns about voting problems on election day. Problems this broadcast has been reporting on for years. The report put together by three voter groups took a look at recent primaries in places like Ohio where votes in at least 11 counties were dropped in the March primary. August 26 primary in Palm Beach County, Florida, several votes disappeared during a recount, and then reappeared on a second and third recount, flipping the outcome to a different winner each time. September 9th primary in Washington, D.C., three counts, three different totals.

SUSANNAH GOODMAN, COMMON CAUSE: We are very concerned because basically, the premise of this report is that machines fail. We know they fail. And do they have the backup procedures and checks and balances in place to make sure that no votes are lost when that happens?

PILGRIM: According to the report, half the states in the country use voting machines. But eight states have no requirement for emergency paper ballots as a backup. Ten states don't have good cross checks to make sure every vote is counted or counted only once. 28 states don't have adequate audit procedures to make sure the votes are counted.

LARRY NORDEN, NYU BRENNAN CENTER: The truth of the matter is, look, most people have other obligations on election day. They have to work, maybe have to take care of kids. They don't have four hours to spend waiting in line to go vote. So when there are long lines that result from machines breaking down, you can break out the paper ballots.

PILGRIM: But unfortunately many states are not stepping up to put in paper ballots as backup before this election.

(END VIDEOTAPE)

PILGRIM: The sad fact is states have been trying to change voting systems since the botched presidential election in 2000. The conclusion is there still could be massive, massive problems with this presidential election.

Well, if you notice any trouble at your polling place on election day, we want to hear about it. Please call CNN's voter hotline. The number is 1-877-462-6608. You can also find that number on our website at loudobbs.com.

Coming up, working men and women who have lost their jobs in this economic turndown could face a devastating new set back. We'll have a report.

Also, will democrats make sweeping gains in the congressional elections next month? We'll have that story next. Stay with us.

(COMMERCIAL BREAK)

LOU DOBBS, CNN HOST: Well, our unemployment rate stands at 6.1 percent. As the unemployment rate rises, more laid off workers are turning to their state's unemployment benefits programs for help. But as Lisa Sylvester now reports, states including the battleground states of Missouri and Ohio are on the verge of running out of money for those programs.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT: Out of work and out of luck, workers have been crushed by job layoffs. In Ohio, the unemployment rate is 7.4 percent. In the last year, the number of people seeking unemployment checks from the state has surged 63 percent. Helen Jones-Kelley, director of the state's Job and Family Services, says the state is paying out $34 million a week for unemployment benefits.

HELEN JONES-KELLEY, OH DEPT. OF JOB AND FAMILY SVCS.: This is really critical for people who are transitioning from jobs, who are finding themselves through no fault of their own, downsized or outsized and needing to call upon the government to assist them.

SYLVESTER: Ohio's unemployment picture is key. It is a battleground state in the presidential election. Struggling to keep up with massive layoffs, Ohio, Missouri, Michigan and New York could see their unemployment benefit funds tapped out by the end of this year. Six other states have less than six months' reserves, according to analysis by the national employment law project. The impacted states fall across the political spectrum. Those that lean republican and democratic. States that run out of money will likely have to turn to the federal government.

ANDREW STETTNER, NATL. EMPLOYMENT LAW PROJECT: It means they're going to have to borrow from the federal government. They'll have to repay that debt and pay interest, or the employers in their state may face federal tax penalties.

SYLVESTER: One option that is not on the table, cutting off benefits to workers. The states will continue to make sure workers receive their unemployment compensation.

(END VIDEOTAPE) SYLVESTER: Ohio is one of those states that will likely have to borrow from the federal government. State officials anticipate the interest alone could be $300 million. State officials would prefer Congress would provide an infusion of money as an alternative to a loan. Lou?

DOBBS: Well, certainly the precedent has been set in a number of areas. No one should be surprised that the federal government doesn't do exactly that. Lisa, thank you so much. Lisa Sylvester.

DOBBS: Certainly the precedent has been set in a number of areas. No one should be surprised that the federal government doesn't do exactly that. Thank you so much, Lisa Sylvester.

This year's election isn't just about winning the White House. It's also about who wins the House and the Senate. Bill Schneider joins me now for more on the congressional and the senate races to watch in key battleground states.

Bill, good to see you. This is quite a race. How is it shaping up though in terms of the house, which every state is obviously up for election, a third of the seats in the senate? How is it looking for the democrats?

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Democrats are getting very ambitious.

Let's start with the Senate. The democrats' ambition in the Senate is to gain nine seats. They dare to think that they could gain as many as nine seats, which would give them 60. And that would mean that that would have a filibuster-proof majority. Right now they have 49 democrats and two independents who caucus with the democrats. But 35 Senate seats are up. 12 of them now held by democrats, only one of those seats is in trouble, Mary Landrieu in Louisiana because it's estimated that 100,000 of her base constituents in New Orleans have left after Hurricane Katrina. 23 Republican Senate seats are up. And as many as ten of those Republican seats may be in danger of flipping to the Democrats. The one most likely, Virginia, two former governors are running where the democrat Mark Warner is way ahead. Elizabeth Dole in North Carolina is in trouble because she's accused of losing touch with her constituents. The most interesting race probably is Ted Stevens in Alaska, that race will be decided not so much by the voters of Alaska as by 12 citizens of the District of Columbia sitting on a jury who are going to decide whether he's guilty or innocent of trying to conceal $250,000 in gifts. So at last citizens of the District of Columbia may be able to elect a senator.

(LAUGHTER)

DOBBS: Well I'm not sure that Ted Stevens would appreciate the humor but it looks like they have, at this point, if Mary Landrieu was to lose in Louisiana, they were to prevail of those 10 seats. You're looking at a switch of about nine seats, is that correct?

SCHNEIDER: That would give the Democrats 60 seats, although 58, although two independents. And then the interesting question, what does Joe Lieberman do?

DOBBS: Well, it's always interesting.

Let's turn to the House now. How does the House look?

SCHNEIDER: All 435 seats are up. Right now the democrats have 236. The democrats have an ambitious goal in the House as well. They would like to gain 20 more seats. That doesn't sound so ambitious. But they gained 30 seats in 2006. To get 20 more seats on top of that would be a very big accomplishment indeed. I've checked over what the experts are saying and they estimate - this is Charlie Cook and Stu Rothenberg, that there are 17 or 18 democratic seats, now democratic seats that could be taken by Republicans, including Tim Mahoney's seat in Florida that we just heard a report.

DOBBS: Looks like he just moved into the problematic column.

SCHNEIDER: Problematic column where there is a sex scandal. But the republican seats in trouble number between 37 and 48 which is a lot more than the democratic seats. One of those that's in trouble is Vito Fossella here on Staten Island. He's not running for re-election but he got in trouble when he was arrested for drunk driving back in May. He was bailed out by his mistress with whom he acknowledged that he had a child out of wedlock some three years ago. It's a problem. And he's not running for re-election but that seat is almost certain to go democratic. So I think we can conclude that hanky-panky is bipartisan.

DOBBS: Well, I think -

SCHNEIDER: Not independents, they don't do such things.

DOBBS: No way in the world. But we're talking about a pick-up of somewhere between 20 and 30 seats for the democrats in the House?

SCHNEIDER: Which would be quite an achievement mainly because they've already gained 20 in the last election and gains half of that.

DOBBS: And I should say, if nothing else changes here.

SCHNEIDER: Nothing else changes. The democrats -

DOBBS: And if it were, all the experts would be proved correct in their prognostic -

SCHNEIDER: And also the case but the democrats are getting very ambitious.

DOBBS: Well and not without considerable support from the republicans, it appears.

SCHNEIDER: Yes.

DOBBS: Thanks very much, Bill Schneider.

PILGRIM: Still ahead, Senator McCain says don't count me out. New polls show the presidential race maybe tightening. Three of the countries best political minds will join me with their thoughts on the election and much more next. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Joining me now are three of the best political analysts in the country, all CNN contributors. We have democratic strategist Hank Sheinkopf, "New York Daily News" columnist Errol Louis, and Errol is also the host of the morning show on WWRL in New York City. We're also joined by syndicated columnist Diana West. Thanks for being with us.

You know, after the big debate this week, we saw John McCain in a very big push to try to boost the image, he was on "Letterman," quite an amusing anecdote there. We see him trying very, very hard. But the one thing that we haven't seen is a new stump speech. And he's giving pretty of the same stump speech. What's your reaction after the debate on McCain's new push to regain ground, Hank?

HANK SHEINKOPF, DEMOCRATIC STRATEGIST: He better start regaining ground. He's got to go to states where a number of republicans should win normally. And frankly it's especially important now that he's given up on Michigan. He's got to find electoral states where Republicans win to go get this done and there aren't many left.

PILGRIM: Diana, thoughts on McCain and his sort of image-boosting last-minute dash to the finish line?

DIANA WEST, SYNDICATED COLUMNIST: Well, you know, that's exactly what it is. It's a last-minute dash to the finish line. I think that the big story of the week, more than the debate, was the introduction of Joe the plumber into national life. And I think that this in many ways, more than any stump speech, has actually invigorated the McCain campaign because he has some way of explaining to people the redistributionist policies of his opponent, Barack Obama, of course, and his own attempts to stave off the socialization of America.

PILGRIM: Errol, thoughts on Joe the plumber?

ERROL LOUIS, "NEW YORK DAILY NEWS": Well, look, he's Joe the unlicensed plumber's apprentice who is about as close to buying his own plumber's business as I am to buying CNN. You know, I mean, the story just didn't - it fell apart immediately. He hasn't paid his taxes, he's got -

PILGRIM: As a metaphor, it is interesting -

LOUIS: As a metaphor, I think it is interesting, actually. Because that is the kind of argument that they're making. On the other hand, I don't think most people are aspiring necessarily to become entrepreneurs. We're in a position economically where people are struggling just to keep their heads above water, get their kids in college, make sure they keep their house. And I don't know that you know an extra $900 in taxes or whatever it might come out to, if you actually do make $250,000, I don't think that's going to be life or death for most voters. PILGRIM: Let's take a look at some CNN poll of polls. This is the national general election, voters choice for president, this is - has Obama at 49 percent. McCain at 43 percent, eight percent unsure. We're in the final weeks of the campaign.

Errol, as you say, the bread and butter issues, they spent a lot of time on health care. The bread and butter issues that are important to American families are really going what's going to pull in these voters. Who's making the better case now and what does McCain have to do, presumably, as the lager in the polls to make up this ground?

SHEINKOPF: The problem for McCain is he's doing republicans have done in the past, he's concentrating on social issues. That's what Joe the plumber represents. What people want to hear is economic plans, not social issues, and that's why he's in trouble.

PILGRIM: All right. Let's look at a couple of states where McCain is in a big push. He's going to Virginia, North Carolina and Florida. Big states in this election. Let's start with Virginia and look at this poll. And this is likely voters of Obama is 53 percent, McCain 43 percent. This is a state that has not voted democratic for president since 1964. Diana, thoughts on Virginia?

WEST: Well, I think some of my thoughts are, you know, Virginia obviously this is a state in play, as the polls indicate. But one of the things that I'm really struck by is how poll-driven we have become. You know, it's become almost - it's become a stomach-turning sort of exercise. Every day we have a new poll. And I'm waiting for the big poll of course of November 4th. But getting back to one thing Hank said, Joe the plumber is not a social issue, if anything he's a small business issue, and I think it will resonate. I think it is resonating. Some of the other polls we've seen this week, for example, the AP/Yahoo! poll show intensive tightening in the race. So we really can't rely on this tsunami of polls I think to drive us into the election.

PILGRIM: Nevertheless, let's look at the Florida poll, despite your objections to it. Because I would actually like to discuss Florida and the big issues in Florida. First let's take a look. Obama, 51 percent. McCain, 46 percent. Joe Lieberman backing McCain. This is a state that's been very hard-hit by the mortgage crisis, Errol. Its economic issue is definitely one of the top, top voting issues down there. What are your thoughts on how Florida -

LOUIS: Again, I got relatives down there, from what I hear, there is something like 100,000 unsold homes that are just sitting there on the market. I mean it's a dire emergence down there. But I think in Florida, as in Virginia, the McCain campaign has been outspent. And you know, you put polls aside, when I hear that in Virginia, Obama ran 1300 ads to eight for McCain and had a bunch of offices and McCain didn't have any offices, you see a similar kind of spending disparities in Florida. That's important. And you don't need a poll to tell you that. An unanswered message that goes out over and over again on the economy is going to resonate with people who are in trouble in Florida and elsewhere. PILGRIM: Well, the spending in Florida over the summer where Obama was spending millions in Florida and other state where the spending might make big differences in Virginia. Obama has a double-digit lead right now, but and this is a traditionally red state though. So there is just massive amounts of money pouring in.

SHEINKOPF: Lots and lots of money. Remember, democrats are the winning state wide races. Number two, the demographic shift in the state of Virginia is extraordinary. Northern Virginia has become a suburb of Washington. People have moved further in. I mean, it's changing demographics that are also undermining John McCain throughout the nation.

PILGRIM: Very good point. All right. We'll get back to all of the campaign and the debate when we return with our panel right after this. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: We are back with the political panel, Hank Sheinkopf, Errol Louis and Diana West. OK. Let's go to the great moments of the debate. I thought it was a very good debate and very interesting. We have Senator Obama talking about President Bush and trying to draw deep parallels with Bush. Let's listen to what he said.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Last night Senator McCain said that George Bush won't be on the ballot this November. He said, I don't know why you are running against George Bush. I said I'm not running against George Bush. I'm running against those policies of George Bush that you support, Senator McCain.

(END VIDEO CLIP)

PILGRIM: We had this great rebuttal by McCain, "you should have run four years ago." How do you think all that Bush analysis played out, Hank?

SHEINKOPF: I think that John McCain is among the many policies and experience, issues, running a reasonably bad campaign is George Bush in the White House with record low popularity ratings and an economy that is faltering and failures in two war that are not resolved. And it's just impossible. You cannot get away from the leader of the party. He happens to be sitting in the White House.

PILGRIM: It is a trough trick. Diana, what do you think.

WEST: It's a very tough trick. And of course, Senator Obama will continue to hit that rather than I guess pitting Senator McCain specifically. So we'll just have to see, you know, how it works. Senator McCain says he's not George Bush. Let's see how the voters decide.

PILGRIM: Thoughts on this, Errol? LOUIS: Yes. If he had been Bush's arch enemy. You know, not just breaking with him on a couple of issues, but really pounding him, really going against him. If he had made a different decision say in 2004 and not endorsed him and staked out an entirely separate wing of the party for himself, then he could maybe get himself out of this trap. But now he is tied to Bush and he doesn't want to hear it, mentioned very much, but you know, with 17 days to go, what else can he do except make the best of it.

WEST: Well, what I think that he probably needs to do is tie Senator Obama to the congressional democrats who are also in equally bad odor as President Bush.

SHEINKOPF: I don't think that's going to work.

PILGRIM: We will see. I mean, we will really see on that one.

Now, let's talk about the third party who suddenly entered this race, Joe the Plumber and let's listen to the - what Senator McCain said.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I will not stand for a tax increase on small business income. 50 percent of small business income tax is paid by small businesses. That is 16 million jobs in America. And what you want to do to Joe the plumber and millions more like him is have taxes increase and not be able to realize the American dream.

(END VIDEO CLIP)

PILGRIM: One of the strongest moments I think in the entire debate is when McCain said why do you raise taxes in this kind of an economy. It is a compelling argument that will resonate with voters. What do you think, Errol?

LOUIS: I don't find that compelling to tell you the truth. I mean, raising taxes on people who make over $250,000 a year, income. Not gross income, but what you actually take home. That is a very small segment of the population. Now, you know, if McCain wants to make the case that this very small segment of the population is crucial to the functioning of the entire economy, he can make that argument, but I don't think most people are not going to buy that because most people are no way near that level of income. Most people don't see that as the worst thing in the world for people who are pretty well off as far as their income and have some maneuverability to pay a little extra especially if it's paying for something that everybody knows we need like health care or infrastructure or these wars, whether you like them or not. They got to get paid for.

PILGRIM: You know, I really would like to get into the issue of voter fraud before we close out this panel and we did have a Supreme Court decision. Sided with Jennifer Bruner, the secretary of state of Ohio that she does not have to provide the names to the local officials of newly registered voters whose license numbers and social security number do not match. Now, Republicans said this would prevent fraud if she provided those names and social security numbers. She argued that it would disenfranchise voters. The Supreme Court siding with Secretary of State Jennifer Bruner.

This has been a very contentious - Ohio, particularly been a very contentious state for issues of voter fraud. What do you think, Hank, on this decision?

SHEINKOPF: I think the Secretary of State is absolutely wrong and the court is wrong and the protection of the integrity of this voting system comes first and that's why the Congress had the Help America Voting Act to make something work here. Now what we find after the money has been spent and the act has been done and things are a bit more chaotic, not so good.

PILGRIM: Diana, it doesn't, I mean, to me the logic of this decision is not apparent. Because sharing the names and social security numbers of voters whose names don't match seems almost common sense to let the local officials know. Your thoughts on this?

WEST: Kitty, I think it's surreal, particularly given the spate of soaring, about ACORN, about voter fraud and now we have the FBI opening an investigation to this and it becomes an election issue. You know, given Senator Obama's ties to ACORN over the years. I mean, this is a very important issue and not to safeguard the vote, not to do everything you can to make sure that it (inaudible) is again surreal. It's the only word I can think of.

LOUIS: Yes. I think surreal is a pretty good word. We got 3100 counties in the United States, give or take. We have about 3100 different ways of counting the vote and about 3100 different problems. There needs to be a hob or two. There needs to be a uniform standard like in other countries. I don't know how we get to that point. But until we have that, we are guaranteed to see this over and over again.

PILGRIM: It seems incomprehensible that this Help America Vote Act provided funds for people to upgrade their systems after the botch election of 2000. And yet it has almost arguably has gotten worse that we have this hodge podge of systems. And do you believe that this election is in jeopardy, Hank?

SHEINKOPF: Look, anything can happen. Here are some facts. This has worked pretty well, we have had some problems but generally it's worked. Number one. Number two is the election in jeopardy? The integrity of the political system is in jeopardy. That's more significant. The election itself, no. But long-term people have to have respect for what goes on and know it's fair. If it's not, we all suffer significantly.

PILGRIM: Well said. Thank you very much for joining us this evening. Errol Louis, Hank Sheinkopf and Diana West. And thank you for joining us. Please join us tomorrow.

Also join Lou on the radio, Monday through Friday for the "Lou Dobbs Show." Go to loudobbsradio.com to find the local listing for the "Lou Dobbs Show" on the radio. For all of us here, thanks for watching. Good night from New York.