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Michelle Obama Stumps in Columbus, Ohio; Markets in Turmoil; John McCain Campaigns in Denver

Aired October 24, 2008 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: Eleven days until the presidential election. John McCain at a rally this hour in Denver. Michelle Obama in Columbus, Ohio.
And to New York, where fears of a global recession bring more turmoil to Wall Street. We are heading into this market storm.

But right now let's get you to Columbus, Ohio. Michelle Obama standing in for her husband, who is in Hawaii right now with his ailing grandmother. Michelle Obama on the stump in Columbus, Ohio.

(JOINED IN PROGRESS)

MICHELLE OBAMA, BARACK OBAMA'S WIFE: ... has made this campaign possible. She laid out the challenges that we're facing in a real and eloquent way. And she's the kind of person, as so many folks in this room and in this state and this country, knows we need change. So I want to thank June (ph) for all of her hard work.

I want to recognize David Robinson, who's a congressional candidate here.

(APPLAUSE)

There he is over there.

I want to recognize and thank your wonderful mayor, Mayor Coleman, and his wife Frankie.

(COMMERCIAL BREAK)

I love your mayor. I think I said that the last time I was here. I told Barack he needs to look out.

I also want to thank your senator, Sherrod Brown.

(APPLAUSE)

He has been a phenomenal supporter. He has been going all across the country on be half of this campaign. And you know you've got a good senator when his wife is smarter than he is.

(APPLAUSE)

I mean, just from one wife to another.

And we have another phenomenal woman here, your first lady, Frances Strickland.

(APPLAUSE)

She and the governor have been just invaluable to our efforts here in Ohio. And we are grateful.

I want to also recognize Rich Trunca (ph), who's AFL-CIO secretary treasurer. He is here as well. Let's give him a big round of applause.

(APPLAUSE)

So as many of you may know, Barack is off the campaign trail today. He flew to Hawaii last night to see his grandmother, who we call Toot. She is doing OK.

(APPLAUSE)

And you probably know that, you know, Toot is a very important person, like many of our grandparents are, but Toot helped to raise Barack. And she -- you know, I was talking to him the other night and she is tough. Her birthday is on Sunday. And he said that, you know -- because I always asked Barack through the year -- I was like, "How are you doing this? You are tough."

And he said the other night -- he said, "You know, I got my toughness from Toot." You know? Because taught him with her quiet confidence and that love and support that he could do anything, just deep love and admiration.

So on be half of Barack, and Malia and Sasha and all of our family, we just want to thank all of the supporters, and not just folks who have been supporting this campaign, but people who have sent well-wishes and good wishes and prayers. It means so much to us. And I just want to thank you for that.

(APPLAUSE)

So, 11 days to go.

(APPLAUSE)

I can't believe it's 11 days. That's how we greet each other in the campaign. You say, "How you doing?" "Eleven, 20." Not even fine (ph). It's a number.

But it has been an amazing year and a half for us. And it has been just fun to watch this country in action.

We have seen so much over the last year and a half. We have seen young people finding their voices for the first time, many of whom have never engaged in politics, saying this is my time, I'm getting engaged. And they are doing things that no one ever expected them to do. Not just going on a political rallies, but, you know, leaving schools, sleeping on floors, traveling to other states.

(APPLAUSE)

Showing this nation that they are ready to be a part of this, to own the responsibility, and to work for it. We are so proud of our young people.

(APPLAUSE)

But we have also seen some not so young folks as well. Let's hear it for the not so young people!

(APPLAUSE)

So young people, you hear that. You have got a lot of energy to catch up to, because it has also been amazing to see our not so young folks. Because, you know, when you come across somebody who is in their 50s or 60s or 70s who have said they have never voted before in their lives, never, saying that for the first time they feel like they have to be involved, or you see someone in their 80s or 90s -- and this happens all the time around a rope line. Somebody will grab your arm, and there's nothing like an 80-year-old grit, boy.

(APPLAUSE)

They'll grab your arm, and sometimes with tears streaming down their faces they will say, "I never thought I would live to see the day."

(APPLAUSE)

That is some powerful stuff. And that's been our experience over this year, watching folks do things that they never thought they do. Coming to a political rally in the middle of the day to see some candidate's wife. Standing out in the cold holding up signs. Getting on a phone, calling a complete stranger. Suffering the embarrassment of being hung up on, but still picking the phone up and calling back and trying to share with them why you are so passionate about this election.

UNIDENTIFIED MALE: We love you, Michelle!

(APPLAUSE)

M. OBAMA: I love you, too. And we are working so hard. See, I paid that guy in the back.

(LAUGHTER)

He travel was me all the time -- $5, $10. I'm like, "Now."

But it has been amazing to watch and to experience this. And while I would like to say that all this that's going on this year has everything to do with my husband -- because you know I think he's great, the truth is -- and he will be the first to tell you this, and he said it when he first announced. He said this race is not about him, will never be. He said this race is about all of us, all of you, the millions of you who are going above and beyond fighting, working hard, believing, and being a part of building what has become a movement for change.

(APPLAUSE)

And we have all gotten to this point in time with -- from different paths, with different stories, and I try to share mine everywhere I go. I come here as a wife, first and foremost, who you know loves her husband. And I've watched him perform, grow. And I know after being so close to him and seeing his abilities up close, I know in my heart with no hesitation that he will be an extraordinary president. That I know.

(APPLAUSE)

But I also come here as a mom. You know those little girls, those little people. They are the light of our lives. They are the reason why I breathe in and out.

Like any parent, I am only as good as they are. I can't move to the next thing unless I know that they are happy, that they are whole, that they are in a good spot. And I know I'm not unique. We all feel that way about our children. So for me, and for so many of us, it is their future that is our stake in this election.

(APPLAUSE)

And I also come here as a daughter. As you know, I've talked about this so often, but it defines me, my background.

I am the product of a working class family, grew up on the south side of Chicago. My father -- south side.

(APPLAUSE)

South side of Chicago. My father was a city worker. He worked in a shift job his entire life. And as you may have heard, my father contracted Multiple Sclerosis in the prime of his life.

He went from being a strapping young man that could swim and box. He even served in the military. Waking up one day and not being able to walk without the assistance of a cane.

And MS is a debilitating disease. So you watch your father deteriorate. It's harder for him to button his shirt.

But what I remember most about my father -- my brother and I talk about this all the time, we were on the phone last night talking about dad -- is that he was the kind of man like so many people across this country that never complained about his own problems and issues. He got up, he went to work every day. He was never late. Because the beauty of people like my parents were that they were proud of the fact that they could get up and go to work. That was what gave them joy and a sense of meaning.

(APPLAUSE)

And for someone like my father, without a college education, someone like my mother, who never went to college, being able to work hard enough in their lifetime to send not one, but two of their kids to some of the best schools in the country...

(APPLAUSE)

... what my father and my background reminds me of deeply is that is the American dream that we're fighting for. That is truly what we're fighting for.

So when I think about the problems that are at stake, the issues at stake in this election, how we're going to fix this broken economy, as June Ann (ph) pointed out, which is causing us all to just be on survival mode; how we're going to fix a broken health care system that's bankrupting so many families; how we're going to keep people in their homes; how we're going to send kids to college in an affordable way; how we're going to end this war; and how we're going to clean up our environment...

(APPLAUSE)

... all of these issues for me are not just political issues. This isn't about politics. This is personal. It's personal for me, and I know it's personal for every single one of us in this place. It's personal because we're all feeling it now.

As June Ann said, we're all feeling it now. I don't care who you are. And if you're not feeling it, you're living real close to someone who is.

You know, we feel it every day when we go to fill up our gas tanks, and just not getting much out of the pump from that $20 that you could put in. We feel it when we go to the grocery store with the same check we have been taking for years and finding that it's not buying what it used to buy. So we are putting down the milk and picking up the juice. You can't buy fresh fruits and vegetables for your kids because the costs are too high.

You know, we feel white we go to the mailbox and we are worried about whether we are going to be the next on the list to receive a foreclosure notice. We are worried about it here in Columbus, as it's starting to get cold, whether we're going to be able to pay for the heat to keep us warm. We feel it when we are sitting in these wonderful universities wondering whether we will be able to pay off our student loans, whether we will find a job at the end of this cycle.

(APPLAUSE)

HARRIS: All right, Roger (ph). Let's do this. Let's split the screen right now, because we obviously have competing events going on right now.

To the left, Michelle Obama, standing for her husband, Barack, who, as you know, is in Hawaii right now at the bedside of his ailing grandmother. And on the right, John McCain is in Denver, Colorado, now. Another battleground state. Set to make remarks there. And when John McCain begins his remarks in Denver, we will take you there.

If you would like to watch Michelle Obama, you can do that by going to cnn.com/live.

But right now we are certainly keeping an eye on your money. So many of us have money in stocks and bonds. So what's happening on Wall Street today matters on your street.

Helping us see through the clouds of this financial storm, CNN's crack money team. Gerri Willis is New York. And Carrie Lee is at the New York Stock Exchange for us.

First, though, let us check the numbers and where we are right now. And Carrie Lee is watching the Big Board for us.

Good to see you again, Carrie.

CARRIE LEE, CNN BUSINESS CORRESPONDENT: Hi. Thanks, Tony.

Well, we are in the negative, but well off of the lows of the session. We were down 504 points at the low point this morning on the Dow. We have come back, giving back half of those losses -- retracing half of those losses, I should say. The industrials now down 237 points.

However, the Dow is now at 8,451. And that is exactly where the lowest close to date in this recent downturn for the Dow has been. So right about at this level. This is the low point, if we close here for the Dow.

Now, I do want to give you a couple of bright spots, because you know they are hard to find in this market. Right?

Microsoft is the only Dow mover to the plus column. It's up just fractionally, but hey, that's worth something in this market.

Like other companies, Microsoft reporting profits and sales that beat expectations this week. They actually reported last night. They are though saying that this current quarter is going to be weaker than originally expected. Well, that news for other companies has really sent the stocks spinning. But for Microsoft, it looks like investors are taking it in stride.

They say that they're going to be cutting costs a bit more, be more prudent about that. Be more careful about hiring decisions. And so Microsoft is gaining a little bit. So that's rather encouraging, because profits have been dismal.

The worst performer on the Dow, General Motors. And that stock is down 14 percent right now, in part because U.S. car demand has fallen the most in 17 years last month. And so people, you know, they don't have the money to buy a car, they can't get a loan, and so that's just the latest problems for Detroit, Tony.

So, good news, bad news. HARRIS: Well, and we can't emphasize this enough, it seems to me. You know, we were out of the gate -- Carrie, where were we, negative, what, 400, 500?

LEE: 504 is the low point today, yes.

HARRIS: Yes. And this represents a nice little rally if we put it in its proper perspective, correct?

LEE: Well, yes. You can see it that way.

But I will say -- and not to give any forecasting here, but last hour of trading is an animal all unto itself. Now, yesterday we saw a rally in the last hour. But in typical days over the past couple of weeks, that's when we have seen a lot of selling. So I wouldn't say we are out of the woods just yet on this one.

HARRIS: Got you. Appreciate it, Carrie. Thank you.

And let's get the bigger picture here. Let's check in with CNN Personal Finance Editor Gerri Willis.

Gerri, good to see you again.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: If you would, give us that bigger view. What's going on with the markets right now?

WILLIS: Well, you know, I think Carrie has got it absolutely right. You know, we are bouncing off of the lows here, and actually have turned around pretty significantly. But you don't know until the market closes.

You know what I want to talk about just a little bit here, Tony? Let's put this in perspective.

The market goes through what they call bear markets, big sell- offs that can last a very long period of time. And I'm going to show you numbers here so you get a sense of just how long these typically last. Christine Romans was showing these numbers earlier in the day.

The average bear market sell-off, look at this, 38 percent. We are right in the teeth of bear market. That's what's going on.

And we were talking a little earlier in the day, Tony, you and I, about how people just react on fear. And even professional money managers now are operating on fear and anxiety, selling willy-nilly. And how you don't want to be a part of that. Part of doing that is just really pulling away and not focusing every minute on what the stock market is doing and checking your 401(k) every 20 minutes.

HARRIS: Right.

WILLIS: I think that's a big mistake here, because as you can see, what started as a wholesale sell-off this morning is turning into something much more garden variety. Now, it could change later in the day. But if you had made decisions at the market open today, you know, you might be regretting it right now. I hear this from financial advisers all the time.

They get panicked phone calls from people. You know, sell, sell, sell, sell all my stocks. And by the time they get to that phone call, they find out the market has turned around, the person has changed their mind.

So reacting on fear here is not a big help. As you see, this is a conventional bear market. We have been here before. We know what it looks like.

You know, we have got to focus on this recession that's coming. Instead of focusing on your stock holdings, you'd be better off thinking about your job and what you need to do to keep that job, what you need to do to have some cash on the sidelines to make sure you're safe if the very worst does happen so that you can pay that mortgage, you can pay that rent, you can put food on the table and get the kids to school every day. Those are the basics, the fundamentals we want to be focusing on right now.

HARRIS: Boy, you have been steady. You really have been with that advice. And on message, man.

WILLIS: Well, you've got to control what you can control, right?

HARRIS: Yes.

WILLIS: I mean, you can't control the stock market.

One other thing here, Tony.

HARRIS: You've just been solid. Yes.

WILLIS: Tony, one other thing just to think about here. You know, when people sell in a market like this, and they're fearful, they're not -- they don't have a plan.

You need a plan. You need to know why you are saving, what your goals are. Establish those.

You know, it's OK to sell if that was your discipline. If your discipline was to sell at these levels, then that's fine. But most people aren't doing that. They are just selling because of fear. So we want to avoid that at all costs.

HARRIS: Great advice. Great tips. Gerri, thank you.

WILLIS: My pleasure.

HARRIS: And to Carrie Lee as well.

As promised, let's get to you Denver, Colorado, now, that battleground state. And the John McCain rally, which as you can see is about to get under way. Cindy McCain on stage now to introduce her husband. When John McCain begins to speak, we will take you there live.

Ten issues in 10 days. We are counting down to Election Day, breaking down the issues that you care about the most and what the presidential candidates want to do about them.

The problems and the plans from education to health care and homeland security. We kick things off tomorrow with issue #1, the economy. Ten issues in 10 days, only on CNN.

And CNN is keeping them honest. If you have trouble at the polls, call the CNN voter hotline, help us track the problems, and we will report the trouble in real time. Here's the number: 1-877-462- 6608. And we are keeping them honest all the way through the election and beyond.

As we enter the final days of this campaign, what role is race really playing in this election?

(COMMERCIAL BREAK)

HARRIS: As promised, John McCain on the stump in Denver, Colorado.

(JOINED IN PROGRESS)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: ... the trees chase the dogs. But that's not true thanks to you. Thanks to you, Colorado, in sending us all that water.

But I also want to say I will not renegotiate the Colorado River compact. Colorado will keep its water, and it will not change.

So it's great to be back, my friends. And let's have some straight talk.

We need to win Colorado on November 4th, and with your help we are going to win Colorado, and we are going to bring real change to Washington.

(APPLAUSE)

And it's 11 days. And it's 11 days, and I need you to work every single day. This is going to be a tough state, my friends. And we are going to be up late, but we're going to win here.

(APPLAUSE)

And thank you for coming out this morning. Thank you for being here. I'm honored. I'm honored by your presence.

May I say -- may I say it has been a long campaign. We have heard a lot of words. We've heard a lot of words.

AUDIENCE: USA! USA! USA! USA! USA! MCCAIN: You know, one of the messages -- one of the messages that the American people are trying to send people like that is, we want -- they want us to stop yelling at each other. They want us to stop yelling at each other.

So good luck to you, my friend. Thank you. .

(APPLAUSE)

AUDIENCE: John McCain! John McCain! John McCain! John McCain!

MCCAIN: A lot of times the people come and yell, and they yell about the war in Iraq. I want to tell you, my friends, we'll bring the troops home. But we will bring them home in honor and victory. We won't bring them home in defeat.

(APPLAUSE)

And I've also got some more news for you. We are winning. We are winning in Iraq.

(APPLAUSE)

And thank you all, all Americans, for their support of the brave young Americans who are serving our nation in uniform today. Thank you and God bless you for it.

(APPLAUSE)

My friends, it's been a long -- it's been a long campaign. And we've heard a lot of words. And after months of campaign trail eloquence, we finally learned what Senator Obama's economic goal is.

As he told Joe the plumber back in Ohio, he wants to "spread the wealth around." And just this morning he said it again. He believes in redistributing the wealth, not in politics that grow our economy and create jobs.

Senator Obama is more interested in controlling wealth than in creating it, in redistributing money instead of spreading opportunity. I'm going to create wealth for all Americans by creating opportunity for all Americans.

You know, Senator Obama may say he's trying to soak the rich. But it's the middle class who are going to get through the wringer, because a lot of his promised tax increases misses the target. And to pay for nearly a trillion dollars in new government spending, his tax increase would impact 50 percent of small business income in this country, and the jobs of 16 million middle class Americans who work for those small businesses.

I'm not going to let that happen to you, my friends.

(APPLAUSE)

And I want to ask right now, how many people here are involved in small business in America? I want to say thank you. Raise your hands.

Thank you.

How many Joe the plumbers are here?

Thank you. Thank you. Thank you.

You know, my opponent's massive new tax increase is exactly the wrong approach in an economic slowdown. Just yesterday you know we received news that jobless claims have increased by 15,000. And yet, just this week -- just this week...

CROWD: John McCain! John McCain! John McCain!

(BOOING)

MCCAIN: Just yesterday, we received news that jobless claims have increased by 15,000. And yet, just this week Senator Obama announced that his plan would have a work requirement, meaning that those who are unemployed would receive no help under the Obama plan. While Senator Obama's tax increases would put even more people out of work. The answer to a slowing economy is not higher taxes.

(APPLAUSE)

MCCAIN: The answer to a slowing economy is not higher taxes. But, that's exactly what's going to happen when the Democrats have total control of Washington. We can't let that happen.

(APPLAUSE)

MCCAIN: We've already seen a preview of their plans. It's pretty simple and pretty familiar. Tax and spend. When the chairman of the House Financial Services committee, Barney Frank of Massachusetts...

(BOOING)

MCCAIN: ... says and I quote, "Focus on an immediate increase in spending." We should take him at his word and when he says that quote, there are quote, a lot of very rich people out there whom we can tax. It's safe to assume that means you.

(BOOING)

MCCAIN: You know what it means because the Democratic budget plan they passed just last year with Senator Obama's help, called for raising taxes on people making just $42,000. No wonder they think they're a lot of very rich people out there. Rich for Senator Obama and the Democratic Congress means change in your pocket.

Senator Obama assures us that he has a very clear target of just the top five percent of income earners. And anytime you hear talk of a targeted tax increase, you might want to double check the skill of the marksman. The U.S. Congressman has been -- the U.S. Congress has been known to fire pretty wildly. Remember the Alternative Minimum Tax? You probably do. You probably do if you're one of the more 30 million Americans currently threatened by it. That targeted tax was originally aimed at just 155 specific people. Once enacted, taxes have a way of spreading and rising and that's why, as president, I'm going to put a stop to the out of control spending so we can keep taxes low.

(APPLAUSE)

MCCAIN: The McCain/Palin tax cut is the real thing. By the way, how do you like that Governor Palin? Isn't she wonderful, isn't she great?

(APPLAUSE)

MCCAIN: She's done a great job in (INAUDIBLE). She has energized our base and inspired millions and millions of Americans. I can't tell you how proud I am of her. And by the way, speaking of athletes, her husband, four-time world champion, 2,000 miles across Alaska in a snow mobile. A great guy and a great family.

(APPLAUSE)

MCCAIN: We're going to double a child deduction for every family. We'll cut the capital gains tax. We'll cut business taxes. To help create jobs and keep American business in America.

(BOOING)

CROWD: USA! USA! USA!

John McCain! John McCain! John McCain!

MCCAIN: Just yesterday we received news that jobless claims have increased by 15,000. And yet, just this week, Senator Obama announced that his plan would have a work requirement. Meaning that those who are unemployed will receive no help under the Obama plan, while Senator Obama's tax increases would put even more people out of work.

The answer to a slowing economy is not higher taxes. The answer to a slowing economy is not higher taxes, but that's exactly what's going to happen when the Democrats have total control of Washington. We can't let that happen.

We've already seen a preview of their plans. It's pretty simple and pretty familiar. Tax and spend. When the chairman of the House Financial Services Committee, Barney Frank of Massachusetts, says, and I quote, "focus on an immediate increase in spending," we should take him at his word. And when he says that, quote, there are quote, "a lot of very rich people out there whom we can tax," it's safe to assume that means you.

You know what it means because the Democratic budget plan they passed just last year with Senator Obama's help called for raising taxes on people making just $42,000 a year. No wonder they think there are a lot of very rich people out there. Rich for Senator Obama and the Democratic Congress means change in your pocket.

Senator Obama assures us that he has a very clear target of just the top 5 percent of income earners. And any time you hear talk of a targeted tax increase, you might want to double-check the skill of the marksman.

The U.S. Congress has been known to fire pretty wildly. Remember the Alternative Minimum Tax. You probably do. You probably do if you're one of the more than 30 million Americans currently threatened by it. That targeted tax was originally aimed at just 155 specific people. Once enacted, taxes have a way of spreading and rising and that's why, as president, I'm going to put a stop to the out-of- control spending so we can keep taxes low.

A McCain/Palin tax cut is the real thing. By the way, how do you like that Governor Palin? Isn't she wonderful? Isn't she great? She's doing a great job. She has energized our base and inspired millions and millions of Americans. I can't tell you how proud I am of her.

And, by the way, speaking of athletes, her husband, four-time world champion, 2,000 miles across Alaska on a snowmobile. A great guy and a great family.

We're going to double the child deduction for every family. We'll cut the capital gains tax. We'll cut business taxes to help create jobs and keep American businesses in America.

HARRIS: John McCain at a campaign stop in Denver. As you heard, an event that was interrupted repeatedly. And, boy, that affect for a while there is that the interruptions seemed to take a lot of the steam out of the event until he mentioned Sarah Palin and then now all of the energy came back to the room. John McCain in Denver.

A tough day so far, as you can see, for the markets. Richard Quest is here to help us break it all down.

(COMMERCIAL BREAK)

HARRIS: Well, the markets down today amid worries of a global recession. Stocks sharply lower around the world. Carrie Lee following that for us from the New York Stock Exchange.

Hi, Carrie.

LEE: Hi, Tony.

Well, you know, this is quintessentially a global marketplace now. And this crisis is certainly global as well. The Nikkei, the key index in Japan, down 10 percent. And Europe trading, which is pretty much wrapping up, down anywhere from 3 percent to 5 percent. So the U.S. markets basically following the European and Asian markets today. One catalyst for the sell-off in Europe, Britain now could be on the brink of a recession. And that's because GDP, that is Gross Domestic Product, in the recent quarter, this is the value of all the goods and services produced in the country, actually came in negative. This is for the three month ending September. For the first time since 1992.

Now the fast and dirty definition of a recession, two back-to- back quarters of negative growth. So one could argue that Britain is halfway there. So that's causing some of the selling. And, you know, just this whole concern that the deep global, economic slump is going to cut into corporate profit across the board.

One other interesting sort of connection globally. The dollar. The dollar versus the yen. The dollar has hit a 13-year low against the yen. And that's because Japan is more worried about the U.S. economy than its own economy. But then in Europe, we're seeing the dollar strengthen compared to the dollar. And that's because Europe is more, Tony, concerned with its own troubles. So you don't really see those different directions for the dollar.

HARRIS: Yes. Well, Carrie, we're going to take this up with Richard Quest here right now. Last hour -- I don't know if you heard this, Carrie -- but last hour we -- we had a good time, didn't we?

RICHARD QUEST, CNN CORRESPONDENT: We did.

HARRIS: We did, talking about these issues.

QUEST: Yes.

HARRIS: You know, we've been talking -- since our time here the last hour, we've been talking a lot about the markets looking for a bottom here. And, look, I think it's the wrong question. I think we're prematurely looking for a bottom here. It just seems to me, just from sitting at this perch every day watching this for the last 18 months or so, that until all of this bad stuff, these illiquid assets work their way through the system . . .

QUEST: No.

HARRIS: Come on. And you have the United States . . .

QUEST: You have missed the point again.

HARRIS: Oh, my goodness.

QUEST: Once again you've managed to miss the point.

HARRIS: All right.

QUEST: Look, the illiquid assets are one issue.

HARRIS: Yes.

QUEST: The so-called TARP -- Troubled Asset Relief Program. We know about that. We know what's going to happen with them. Put that to one side.

HARRIS: I'm willing to for the discussion.

QUEST: What is more significant now is the news on the real economy. When we have reports that Chrysler my lay off 25 percent of its white collar work force, when we have reports, for instance, that others may be laying off many, many . . .

HARRIS: But real economy is you and me and everyone spending.

QUEST: Exactly.

HARRIS: That's the real economy.

QUEST: Hallelujah. You got that right.

HARRIS: OK. All right.

QUEST: So once we're getting news of the real economy, then that market then that market -- the market has to price that in. And that is what is happening at the moment.

HARRIS: So what are we talking about, retail sales numbers? Are we talking about . . .

QUEST: Yes. Yes. Retail sales.

HARRIS: OK. All right.

QUEST: White goods. We're talking about . . .

HARRIS: Durable goods. And all of those. Those types of -- are we buying refrigerators and furniture and those sorts of . . .

QUEST: Yes. Yes.

HARRIS: And the answer is no. The evidence is the answer is no.

QUEST: Right. But the market hasn't priced that in yet because the market has been too busy pricing in the troubled assets. The banking crisis.

HARRIS: So project forward. Project forward. We're talking about a couple of quarters of real restriction here?

QUEST: We don't know. Oh, yes. I mean, which bit of this are you just getting? This -- absolutely! Look, this is not going to be over in a month or two. The new president on January the 20th is going to be grappling with a crisis that is still unfolding in that respect.

HARRIS: Yes. Yes.

QUEST: It is not going -- there's going to have to be a second stimulus package from the U.S. Congress for . . .

HARRIS: You believe that that's got to happen?

QUEST: Yes, because now we're back to traditional economics. Now we're back. We're no longer -- we've shored up the banks. We've put the equity capital in. We've sorted that bit out. Now we're back to good, old fashioned kingston (ph) economics. Give people money to spend so that they can go out and buy things. The problem is, Tony, stay with me . . .

HARRIS: I'm with you. Come on, doctor.

QUEST: Work with me. The problem is, in debtedness (ph). Are people in a position to take on any more debt?

HARRIS: We're going to get that check. Whatever form the stimulus comes to us. We're going to take it and we're going to pay off debt. The same thing we did a couple of months ago when we got the last stimulus check. We're not going to spend . . .

QUEST: No, no. Well, arguably you didn't. Arguably you didn't.

HARRIS: We're not going to buy the refrigerator. We're not going to buy the new coach. We're going to pay off debt. That's the advice that we get from most of the financial folks on the show, paying off the debt. And what's going to happen then? That's what we're going to do.

QUEST: And that is the wonderful dichotomy of this crisis. Because on the one hand, the government wants you to pay off that debt.

HARRIS: And we're going to pay off our personal debt.

QUEST: And on the other hand, they want you to go out spending.

HARRIS: Yes.

QUEST: Look, you know, internationally we have a famous saying. When the going gets tough, Americans go shopping.

HARRIS: That's right. That's right.

Richard, good to see you. Good rip. All right, we got to go.

As we enter the final days of the campaign, what role is race really playing in this election? We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Breaking down the races in the race for president. A new CNN/Opinion Research poll shows 45 percent of whites say they will vote for Barack Obama. Fifty-two percent for John McCain. Ninety- seven percent of blacks for Obama. Three percent for John McCain. And 69 percent of Hispanics voting for Obama. Twenty-five percent for John McCain.

And here is a look at the racial breakdown in the last presidential election. Forty-one percent of whites for John McCain. Fifty-eight percent for President Bush. 88 percent of black voters chose Kerry compared to 11 percent who voted for President Bush. And Kerry got 53 percent of the Hispanic votes to President Bush's 44 percent.

John McCain and Barack Obama don't talk much about race. At least not in so many worlds. But some say the race card is being played in more subtle ways. CNN national correspondent Jason Carroll reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Let's leave Barack Hussein Obama wondering what happened.

JASON CARROLL, CNN CORRESPONDENT, (voice over): The goal, energize the Republican base. But some critics see a more subliminal message.

JIM VANDEHEI, POLITICO.COM: You know, when you have people introducing the vice presidential nominee or the presidential nominee and talking about Barack Hussein Obama, people aren't -- that's not an accident.

CARROLL: Some critics say it's code.

SEN. JOE BIDEN, (D) VICE PRESIDENTIAL CANDIDATE: When you hear these kind of phrases, you know where it's going.

PROF. CHARLTON MCILWAIN, NEW YORK UNIVERSITY: There are a lot of -- a whole stable full of race-coded language that they use in their stump speeches. It's a way of tapping into unconscious, racial attitudes.

CARROLL: Republican Don Scoggins says while racism in politics exists, it doesn't mean it's always there.

DON SCOGGINS, REPUBLICANS FOR BARACK EMPOWERMENT: Quite frankly, I do not think that it's specifically coded language. I think that just like anything else, you can also -- you can always apply meaning to something that is said by someone.

CARROLL: Critics are not just targeting the McCain camp for using coded language. Remember this comment?

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: And so the only way they figure they're going to win this election is if they make you scared of me. You can't risk electing Obama. You know, he's new. He doesn't look like the other presidents on the currency.

MCCAIN: He brought up the issue of race. I responded to it. Because I'm disappointed. And I don't want that issue to be part of this campaign.

UNIDENTIFIED MALE: I'm begging you, take it to him (ph).

CARROLL: Following a town hall meeting, one voter urged Senator John McCain to get tougher on Obama.

MCCAIN: Yes, I'll do that. But I also, my friends, want to address the greatest financial challenge of our lifetime with a positive plan for action.

CARROLL: Most political observers agree both McCain and Obama will be cautious in how they criticize each other.

MARK HALPERIN, "TIME" MAGAZINE: Politicians stay away from the unpredictable, from something that can blow back in their face. Race is such a potentially explosive issue that no one has wanted to engage on it.

(END VIDEOTAPE)

HARRIS: The McCain campaign has repudiated supporters, such as the sheriff in Jason Carroll's report, who have used Obama's full name as a way to denigrate him.

What happens when a soldier returns from war and goes back to school?

(COMMERCIAL BREAK)

HARRIS: I don't have to tell you military life and civilian life can be strikingly different, especially if you're coming back from a war zone. CNN and MTV have teamed up to shine a light on issues facing our war heroes.

Here's MTV correspondent Tim Kash.

(BEGIN VIDEOTAPE)

TIM KASH, MTV NEWS: There's a fair amount of anxiety they comes with being a university freshman -- all new friends, dorm living, college-level classes. But after you've seen battle in Fallujah, an uptight professor isn't nearly as intimidating.

GRAHAM PLANTER, VETERAN: And trust me, writing papers still sucks, even after four years in the Marines.

KASH: There are an estimated 297,000 veterans of the global war on terror now combating the domestic perils of college life.

(INAUDIBLE), has it been easy for you to make friends? Has it been easy for you to integrate, honestly?

PLANTER: No.

KASH: What makes it difficult?

PLANTER: I don't feel as though I have that much common ground with the fellow students.

UNIDENTIFIED MALE: They're thinking, oh, my God, you know, I have to write this huge paper and they're freaking out about it. And I'm like, well, OK, so I'm going to have to stay up and write paper. It's not the end of the world. I've dealt with so much more than this before.

KASH: To help address the specific concerns of being former military and a students, Graham and his peers started George Washington University Veterans, an organization hoping to foster communication between the former enlisted men and the civilian classmates.

UNIDENTIFIED FEMALE: I was wondering, how's it been adjusting back to life now that you guys have been back?

KEVIN BLANCHARD, VETERAN: Three years ago to now, all of life looks different. The color of these lights, the smiles on you guys' faces, it all looks a little bit different. I know that gets a little deep.

JULIE CAMPBELL, FRESHMAN: I thought it was so interesting how they can apply what they're knowing to like modern day time and stuff. And like you learn about stuff in class but they have actually been there.

PLANTER: These are the pamphlets from the memorial services that we had after deployments. Lost all of these guys on one day.

KASH: While we often hear students talk about the stresses put on them by their parents and their professors, the veterans studying at universities across the U.S. speak of an added pressure.

WADE SPANN, VETERAN: I want to be successful so I can change things. I want to be successful so they can say, you know, look at this guy. Look at what he -- I don't want the war to define me.

PLANTER: I can't screw this up. I think there's a -- there's an awesome responsibility resting on my shorts while I'm here because not a lot of guys have the opportunity to come do this. For me to come here, mess around and screw that up would be -- I would be disrespects myself but I'd also be disrespecting all the guys who didn't have this chance.

(END VIDEOTAPE)

HARRIS: The MTV Concert for the Brave, A Night for Vets, it is on tonight 8:00 Eastern Time. It features music from, wow, this is good, Ludacris, 50 Cent, Beyonce and many, many more.

KYRA PHILLIPS, CNN ANCHOR: 50 Cents. Come on.

HARRIS: Yes, I know. You're right.

And here on CNN, Back from the Battle. The "AC 360" special, Saturday and Sunday, also at 8:00 p.m. Eastern Time.

Just into CNN, a federal appeals court has granted a 25 day stay of execution for a Georgia death row inmate. Troy Davis was convicted of killing a Savannah police officer in 1989. He was scheduled to be executed Monday. Since Davis' conviction, seven of nine witnesses who testified against him have recanted their testimony.

You know, we call it the magic board. It is a very useful tool for helping to explain a lot of things. "Saturday Night Live" has a, let's call it, a different take.

(COMMERCIAL BREAK)

HARRIS: Red states, blue states, battleground states. Keeping them all straight can be downright confusing. OK. OK. "Saturday Night Live" is here to straighten it all out for us.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Now, let's take a little bit of Oregon. Let's move it out to the ocean. It's going to be surrounded by water. That's very, very dangerous. Let's take Minnesota. Let's put it right over Virginia. Minnesota's very heavy. Imagine the sheer weight of it. Here's New York right there. New York was there in 2004 as well. And we can shake it around like that.

UNIDENTIFIED FEMALE: Hey, don't do that!

UNIDENTIFIED MALE: Come on, Trent (ph), put those states back where they belong.

UNIDENTIFIED MALE: Check out Michigan. I can make it bounce.

(END VIDEO CLIP)

HARRIS: That's the line right there. I'll take the job any day. That was good, though. I've got to get out of here because Quest is here. He's ready . . .

PHILLIPS: I tell you what, Richard Quest has lit up this newsroom. The two of you are out of control. Actually it's Richard Quest who's just off the rails.

HARRIS: Your turn. OK.

CNN NEWSROOM with Kyra Phillips starts right now. I am so out of here.