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American Morning
Global Markets Plunge; McCain Launches New Ad with Joe Biden's Own Words; Palin Defines Being Elite; Obama Visits Ailing Grandmother; Scott McClellan Endorses Obama; Problems at the Polls: Checking if America is Ready; Obama's Big Party Plans
Aired October 24, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): Air attack.
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: The world is looking. We're going to have an international crisis.
ROBERTS: New this morning, the John McCain ad flooding battleground states.
BIDEN: I guarantee you, it's going to happen.
ROBERTS: With 11 days until the election. Plus, sharp words from the former Fed chief.
ALAN GREENSPAN, FMR. FEDERAL RESERVE CHAIRMAN: A once in a century credit tsunami.
ROBERTS: Stocks suffering historic losses right now after Alan Greenspan admits a mistake on this AMERICAN MORNING.
(END VIDEO CLIP)
ROBERTS: Good morning to you. It's Friday. It's the 24th of October, typically the last day before the weekend. But with 11 days left until the election, nobody is sitting down even for a moment.
KIRAN CHETRY, CNN ANCHOR: That's right. No rest for the weary, that's for sure.
We start with --
ROBERTS: Can you tell I dig these things?
CHETRY: Yes. Well, we're very excited. Believe me. We've been talking about it for it seems like years. It's only been months actually.
But we've also, unfortunately, been talking about some trouble in the financial markets and today that news continues.
Asian stocks closing down overnight after a huge selloff on Wall Street yesterday. Japan's Nikkei fell another 9.6 percent, down 12 percent this week alone. Hong Kong's Hang Seng also down over eight percent, and Europe's main markets are in the red as well, all around eight percent. Dow futures right now down over 500 points.
In southern states, African-Americans are going to the polls in record numbers for early voting. In the battleground state of North Carolina, they say that nearly a third of early voters are black. Democrats also outnumbering Republicans in the early voting there more than 2-1.
Dozens of high school students at a high school in suburban St. Louis are undergoing HIV testing. Health officials say that an infected person told them as many as 50 teenagers could have been exposed to the virus that causes AIDS, but they're not giving details on who that person is or how the students may have been exposed.
Right now, the school district says it's working with national AIDS organizations to minimize the risk. They are also working to prevent wrong information from spreading and, again, this was Normandy High School outside of St. Louis, Missouri.
ROBERTS: To the "Most Politics in the Morning" now and we are counting down to the election, down to the very second. Let's take a look at the clock.
Right now, it is -- where's the clock? Where's the clock? There's no clock. But it's 11 days and as the clock ticks down, believe me, it's there somewhere and we'll find it for you.
The McCain campaign launching this morning a new attack ad taking on Barack Obama's readiness to lead. This time using Joe Biden's own words against Obama.
(BEGIN VIDEO CLIP)
NARRATOR: Listen to Joe Biden talking about what electing Barack Obama will mean.
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: Mark my words, it will not be six months before the world tests Barack Obama. The world is looking. We're going to have an international crisis to test the mettle of this guy. I guarantee you it's going to happen.
NARRATOR: It doesn't have to happen. Vote McCain.
(END VIDEO CLIP)
ROBERTS: Well that ad is airing in key battleground states including Florida. John McCain racking up the miles across the Sunshine State yesterday campaigning with Governor Charlie Crist at a bus tour aimed at blue collar voters. Our latest CNN poll of polls shows a very close race there. Barack Obama has a three-point edge.
Ed Henry traveling with the McCain campaign. He's here now with a report of what happened.
Hey, Ed.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: John, Kiran, aides believe John McCain has found a way to connect with middle class voters. But that message may be undercut by questions about Sarah Palin's pricey wardrobe.
(BEGIN VIDEOTAPE)
HENRY (voice-over): It's all about branding so it was a matter of time before John McCain gave Joe the plumber his own bus tour, even though Joe himself wasn't along for the ride. It said McCain had coffee with Tom the contractor, and Patricia the kitchen supplies purveyor, before heading over to a lumber yard.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Whether it's Joe the plumber in Ohio or Joe over here, thank you, Joe. Joe, thank you. There's Joes all over here. We shouldn't be taxing our small businesses more as Senator Obama wants to do. We need to be helping them expand their businesses and create jobs.
HENRY: McCain aides say Joe is not really just a man anymore. He's a metaphor aimed at showing McCain feels the middle class' pain.
MCCAIN: Obama wants to spread the wealth around. Senator Obama wants to spread it around. That means fewer jobs at their businesses and fewer jobs here in Florida.
HENRY: That plays well in Florida where retirees are nervous about their nest eggs. McCain is trailing Obama here and desperately needs its 27 electoral votes.
MCCAIN: We're going to win Florida and bring real change to Washington, D.C.
HENRY: But McCain's pitch for regular Joes may fall flat after revelation Sarah Palin and her family got $150,000 in clothes and styling. Thanks to the Republican National Committee. Pressed by Florida reporters aboard his bus, McCain said she needed clothes at the time. They'll be donated at the end of this campaign.
(END VIDEOTAPE)
HENRY: McCain advisers also believe the media is applying a double standard, focusing on Sarah Palin's clothes because she's a woman -- John, Kiran.
CHETRY: Well, as Ed reported, the McCain/Palin ticket continues to make its case for middle class America. The campaign was railing against so-called elitist and when John McCain and Sarah Palin sat down with Brian Williams on "NBC Nightly News" earlier this week, Williams asked the pair to define who the elitists are.
(BEGIN VIDEO CLIP, FROM "NBC NIGHTLY NEWS")
BRIAN WILLIAMS, ANCHOR, "NBC NIGHTLY NEWS": Governor, what is an elite? Who is a member of the elite?
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: I guess just people who think that they're better than anyone else. And John McCain and I are so committed to serving every American, hardworking, middle class Americans who are so desiring of this economy getting put back on the right track and winning these wars and America starting to reach her potential. And that is opportunity and hope provided everyone equally. So anyone who thinks that they are, I guess, better than anyone else, that's my definition of elitism.
WILLIAMS: So it's not education? It's not income based? It's --
PALIN: Anyone who thinks that they're better than someone else.
WILLIAMS: A state of mind? It's not geography?
PALIN: Of course not.
WILLIAMS: Senator?
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I know where a lot of them live.
WILLIAMS: Where is that?
MCCAIN: Well, in our nation's capital and New York City. I've seen it. I've lived there. I know the town.
I know what a lot of these elitists are, the ones that she never went to a cocktail party with in Georgetown. I'll be very frank with you, who think that they can dictate what they believe to America rather than let Americans decide for themselves.
(END VIDEO CLIP)
CHETRY: Well today, John McCain travels to Colorado and Sarah Palin is headed to Missouri. Barack Obama meantime is in Hawaii taking a break from the campaign to be with his seriously ill grandmother who he calls the rock of the family. Michelle Obama will sub for her husband today appearing at two rallies in battleground Ohio.
Senator Obama is expected to be back on the campaign trail tomorrow in Nevada. CNN's Suzanne Malveaux is live in Honolulu for us this morning with more.
Hey, Suzanne. Good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, Kiran, good morning. It really is kind of a bittersweet homecoming for Barack Obama. He is very close to his grandmother.
I did a documentary a couple of months ago. You got a sense of that relationship. And really, friends and family tell me she's somebody who loves to play bridge. She listens to books on tape. She loves to visit with the grandkids, but she is in decline, her health. She suffers from severe osteoporosis. She recently broke her hip, and this is a very important trip for Barack Obama.
(BEGIN VIDEOTAPE) MALVEAUX (voice-over): She's called the rock of the family, 85-year- old Madelyn Dunham. This on the night Obama clinched the Democratic nomination.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Thank you to my grandmother who helped raise me and is sitting in Hawaii somewhere right now because she can't travel, but who poured everything she had into me and who helped to make me the man I am today. Tonight is for her.
MALVEAUX: As a child, Obama was abandoned by his father and for long stretches separated from his mother who pursued studies in Indonesia. So Obama's white grandparents largely raised him as a teen in Honolulu. Obama told me they instilled the values in him he needed to embrace his identity as a biracial child.
OBAMA: They were fundamentally American values. And that I could feel comfortable in my own identity and my own skin embracing that side of my family while also embracing the fact of my race.
MALVEAUX: Obama's sister Maya told me Madelyn Dunham didn't care to be called grandmother, so they called her "Toot," short for "tutu," the Hawaiian word for grandma. Toot hasn't been able to travel on the campaign trail because of her osteoporosis, but Maya says she follows it closely on cable TV.
MAYA SOETORO, BARACK OBAMA'S SISTER: A relative lives in the same apartment that she's been renting for nearly 40 years, 950 square feet. That is our family estate. When he becomes president, I hope they put a little, you know, historical plaque up there.
MALVEAUX: Obama calls her a trailblazer, a no-nonsense kind of woman who broke barriers.
GEORGIA MCCAULEY, OBAMA FAMILY FRIEND: And she rose to be the head of the escrow division of the Bank of Hawaii, which was quite a feat.
OBAMA: We're among friends here. We're family.
MALVEAUX: Obama first spoke of his grandmother at length in El Dorado, Kansas, to highlight his Midwestern roots. But it was his race speech in Philadelphia that captured the nation's attention when he highlighted her as an example of someone who loved him dearly but also overcame her own racial prejudices.
(END VIDEOTAPE)
MALVEAUX: And Obama has said that the biggest regret he had is not getting to his mother in time before she unexpectedly died of cancer. Barack Obama said yesterday that he does not want to make that same mistake, if God forbid his grandmother takes a turn for the worse. And, Kiran, he also said that he believes that voters will understand if he takes this time from the campaign trail to spend time with his family -- Kiran.
CHETRY: Suzanne Malveaux for us in Honolulu. Thank you. ROBERTS: Well, first it was Colin Powell. Now another former member of President Bush's inner circle is endorsing Barack Obama. Scott McClellan who served as the White House press secretary and then wrote a tell-all book broke the news to CNN during a taping of comedian D.L. Hughley's new show. Listen to what he said.
(BEGIN VIDEO CLIP, FROM CNN'S "D.L. HUGHLEY BREAKS THE NEWS")
D.L. HUGHLEY, COMEDIAN AND HOST, "D.L. HUGHLEY BREAKS THE NEWS": But you haven't endorsed anybody? You haven't endorsed anybody? And it's McCain and it's Obama.
You know, I'm a new show and your endorsement will probably mean a lot. And don't look at the fact that I'm black. There's nothing like -- no pressure.
Endorse somebody, damn it. Endorse somebody.
SCOTT MCCLELLAN, FORMER WHITE HOUSE PRESS SECRETARY: From the very beginning, I've said I'm going to support the candidate that has the best chance of changing the way Washington works and getting things done. I will be voting for Barack Obama.
HUGHLEY: Oh!
(END VIDEO CLIP)
ROBERTS: You can see the entire interview on the premier of the new show "D.L. HUGHLEY BREAKS THE NEWS" Saturday night at 10:00 Eastern right here on CNN. And Hughley will be our guest at 8:24 this morning. So we'll make sure that you tune in for that.
CHETRY: All right. Well, time for a little fun this morning. "Saturday Night Live" back at it again last night. They had a special Thursday night election coverage. And Tina Fey, of course, reprised her Sarah Palin. But another NFL alum came back to play another familiar face. Check it out.
(BEGIN VIDEO CLIP, "SATURDAY NIGHT LIVE")
WILLIAM FERRELL, PLAYING GEORGE W. BUSH: A vote for John McCain is a vote for George W. Bush.
(END VIDEO CLIP)
CHETRY: Wait. It was over that fast?
ROBERTS: It was over that fast.
CHETRY: All right. Well --
ROBERTS: It went on much longer, though, actually on the program.
CHETRY: It was pretty funny. We will play it a little bit of a longer time a little bit later because it was hilarious. ROBERTS: You know what they are doing, though? They're crossing the line. They crossed the line last night. They made fun of the magic wall.
CHETRY: They made fun of CNN's own magic wall. And right before John takes a look at the battleground states on the magic wall, we're going to show you the parody of it as well.
Well, if you're looking to stay in office, New York Mayor Michael Bloomberg takes his case for a third term to the city council. But will he be on the ballot again next year?
ROBERTS: Plus, a lot has been made of the $150,000 the GOP spent to buy clothes for Sarah Palin but now the candidate is denying the pricey shopping spree. What she said coming up.
(COMMERCIAL BREAK)
CHETRY: Well, "Saturday Night Live" back at it again last night. They had a Thursday night special because of all the election coverage. Let's check out what we wanted to bring you a little earlier but we had a little technical glitch. Here it is.
(BEGIN VIDEO CLIP, "SATURDAY NIGHT LIVE")
WILL FERRELL, PLAYING GEORGE W. BUSH: When you're in the voting booth, before you vote, think of me. Right here. A vote for John McCain is a vote for George W. Bush.
You're welcome. I want to be there for you, John, for the next eight years.
TINA FEY, PLAYING SARAH PALIN: The next 16 years!
FERRELL: Let's get a safety. I think I blinked on that last shot. Thumbs up, everybody.
(END VIDEO CLIP)
CHETRY: Will Ferrell back at it again. Another SNL alum coming to play George W. Bush.
ROBERTS: He plays it so well, doesn't he?
CHETRY: Josh Brolin is a little better but --
ROBERTS: Yes. I tell you, you need a few laughs these days because today, unfortunately, looking like a Black Friday on the markets. And what about Greenspan yesterday testifying on the Hill saying oops, we got it wrong.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: The maestro miscalculated.
ROBERTS: He went from here to (INAUDIBLE). ROMANS: And there are a lot of people in Congress but it was almost some would say a farce at some point because you had Congress trying to really get him in a corner and say that he was wrong and he made these mistakes. But Congress also has oversight for everything that went wrong as well. So you have all this blame game going on.
CHETRY: And they were all pushing Fannie and Freddie to give loans to people.
(CROSSTALK)
ROMANS: That's right. That's right.
So you know, a lot of people watching those hearings rolling their eyes saying these are all the people who presided over what has been --
ROBERTS: Everybody is kind of doing this these days.
ROMANS: Exactly. That's exactly right.
ROBERTS: Nobody's doing this.
ROMANS: And overseas, they're doing this because the stock markets are going down overseas and a really big decline in Japanese stocks on those concerns in Europe because Britain had its first negative economic growth since I think 16 years since the recession of 1991.
So we're talking this morning about a global economic slowdown, fears of a global recession, how deep would it be, what would it look like, how long will it last, has it already started. These are all questions that can't be answered. And, of course, stock market investors and credit market investors, they need confidence and certainty to, you know, do their daily business. And so these are the kinds of questions that are unanswered that are concerning everyone overseas.
ROBERTS: My contact lens hates it so much it just jumped out of my eye.
ROMANS: Oh, my goodness, John.
ROBERTS: Everybody is running for the hills.
ROMANS: I know. You're crying. You're tearing up over this.
Xerox job cuts yesterday after we spoke last time I gave you all these job cuts just in the most recent days. Xerox job cuts, 3,000. They talked about an unpredictable economy. And that's the bottom line.
The economy is unpredictable here. The credit crisis is still going on. Some would say it's not a crisis anymore. It's a condition. It's a condition now and you don't see the reality.
CHETRY: You don't even blink when we talk about Dow futures being down 500 points this morning. ROBERTS: Oh, I do.
ROMANS: I know.
CHETRY: You blink your contacts right out. All right, Christine.
ROMANS: So we'll keep watching it this morning for you.
CHETRY: All right. Thanks, Christine.
Right now, we're just checking with Rob Marciano. He is tracking the weekend forecast for us. Hey, Rob.
ROB MARCIANO, AMS METEOROLOGIST: Well, chilly out there. Hi, Kiran. Frost and freeze advisories and warnings out for much of the northeast. Some of the coldest air this season. What's coming up for the weekend? Details coming up when the "Most News in the Morning" comes right back.
(COMMERCIAL BREAK)
CHETRY: Wow. It certainly feels like a Friday around here. It is, boy, a lot going on in our studio this morning. Thanks to our (INAUDIBLE) sister Dina boarding up this morning.
Twenty-eight degrees and clear right now as you take a look at Manchester, New Hampshire, this morning courtesy of WMUR. What's it going to be like later? Sunny, 59 degrees. Fall is certainly here.
Our Rob Marciano keeping track of the forecast for us everywhere. What do you think? We're rocking out this morning, Rob? Get up here.
MARCIANO: I like it. Feels like a Friday. You got everybody pumped up. I saw that video. I'm like, where was it thundering and lightning last night? I totally missed that in the briefing this morning.
No thunder no lightning across the northeast. Definitely cold, though, 26 Albany and 36 degrees in Boston, 40 in New York. But the suburbs are certainly cold enough to warrant frost and freeze warnings and advisories. So that's what we got cooking.
These purple areas are where temperatures are right at or even slightly below the freezing mark. And so a little frosty out there this morning. A cliche but a time of the year to say frost on the pumpkin, that's for sure.
All right. Some of the pumpkins will be wet across Appalachia down across the Ohio River Valley. A big storm system. This is slowly pressing to the east. So northeast gorgeous day today, but you're going to see things cloud up and you'll see some rain over the weekend.
Look at the radar scope. It's raining all the way from the Canadian border all the way down to the Gulf of Mexico. So this is a big storm and it stretches the entire stretch of the country. Northern parts of Florida to parts of Georgia and South Carolina, they definitely need the rain. Getting it now. You'll dry out I think tomorrow.
And then parts of Illinois where some parts of Illinois are going to see the wettest year on record. Some heavy rain moving into parts of Indiana.
And a quick check on what's going on out west. Fire danger still on the high side. Red flag warning out today although it shouldn't be as bad as yesterday.
Kiran, that's the latest on the weather check. Back up to you.
CHETRY: Rob, thanks.
MARCIANO: All right.
ROBERTS: The blue state blues. People living in a Nevada county known as McCain country on the prospect their state could go Barack Obama blue.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I think everybody is looking for a change. I just wish that it wasn't such a dramatic change.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Twenty-five and a half minutes after the hour and welcome back to the "Most Politics in the Morning."
As the election gets closer, CNN is looking out for your vote. With our count the vote series, we're investigating potential problems in key battleground states.
Michael Waldman is the director of the NYU School of Law's Brennan Center for Justice. The center has been conducting tests to see if we are ready for the election. And Michael is here now to tell us.
Let's first of all take a look at the results of a CNN/Opinion Research Corporation poll out this week that found only 58 percent of people are confident that their vote will be accurately cast and counted this year. That compares to 72 percent in 2004.
Michael, are they right to be concerned?
MICHAEL WALDMAN, EXECUTIVE DIRECTOR, BRENNAN CENTER FOR JUSTICE: Well, that's a very disturbing figure. And look, most votes will be counted accurately. Most people who show up to vote will be able to vote without a problem. But we have a voting system that's ramshackle, that's going to have a hard time handling the millions of new voters. In a way that's a high class problem, but we have to make sure every vote counts. This year and after the election, we have to look at what we can do to modernize and strengthen that system. ROBERTS: You know, we've seen state officials trying to take some pressure off the system by opening it up for early voting and already we've heard of voting machine problems, registration problems. We've been at this for 232 years. Why the problem?
WALDMAN: 232 years and it certainly feels like that long since Florida in 2000. You would think after Florida and after Ohio four years ago where people had to wait 10 hours in the rain, that we would get this right. And actually I do think things are going to be better in a lot of ways than four years ago.
These early voting problems aren't really special to early voting. They're just sort of the canary in the coal mine of what we can expect on Election Day. And the main thing voters should know is that if you're eligible to vote, if you're registered, if you show up to vote, don't take no for an answer. If there's too long a line, ask for an emergency paper ballot. People at the polling places, officials should be providing those ballots. We shouldn't be waiting for the computer technician to come to fix the machine.
ROBERTS: Good tip. And now in places like West Virginia, this is anecdotal. But we've heard some problems with electronic voting machines where one voter punched for Obama and it came up McCain. Is that a common problem and what do you do when that happens?
WALDMAN: Well, you know, all these electronic voting systems have the various glitches that you can find in electronic gizmos of any kind. It doesn't mean someone somewhere ordered the machine to do that. What you need to make sure is that there's a paper record that lets the voters --
ROBERTS: They all have paper records?
WALDMAN: Well, they should. Now all around the country they moved to it. Either you mark the paper which is the way a lot of places do it, or at least you get a receipt. The voters should check.
Don't just assume that the machine has got it right. If you want to vote for one candidate, make sure that the machine does it right and tell someone there if there's a problem.
ROBERTS: There are people who want to look more on this, the Brennan Center for Justice www.Brennancenter.org. It's got a fascinating study out suggesting that we're not as prepared as we should be.
But let me ask you quickly about ACORN because this is a big controversy. Association of Community Organizers for Reform Now. All the controversy over the registration of new voters, do you think that that's -- is it an institutional problem with ACORN? Is it deliberate or is it a bunch of rogue operators out there just trying to short the system, trying to collect as many names as they can and earn their money?
WALDMAN: Yes, I don't think it's deliberate. I think that from what I know there's been some sloppiness with the few of the people doing the registrations. The key thing voters should know is that when someone registers under a fake name, that doesn't mean they can vote under a fake name.
Mickey Mouse is not going to be able to vote without showing some I.D. as a first time voter even in Orlando where they know him. You know, people shouldn't worry that there's a problem of voter fraud. Statistically and we've studied this, you are more likely to get killed by lightning than to commit voter fraud. That's not really a worry. The bigger worry is that we overreact to worries about voter fraud by purging legitimate voters from the rolls as it's happening around the country. And that's part of what's creating lines and problems at the polling places.
ROBERTS: Yes. Well, we'll certainly going to keep an eye on this. And let's get you back before Election Day too because you certainly got this whole thing nailed.
Michael Waldman from the Brennan Center for Justice at NYU, it's good to see you this morning.
WALDMAN: My pleasure.
ROBERTS: Thanks for coming in.
If you've got concerns, by the way, about possible voting irregularities in your state, we want to know about them. You can call us toll free at 1-877-GOCNN-08. Again, that's 1-877-462-6608 -- Kiran.
CHETRY: Well, it's just about half past the hour now. We got a check on the top stories and it could be a grim Friday on Wall Street.
Dow futures down more than 500 points ahead of the opening bell today. Asian stocks also plunging overnight with Japan's Nikkei index suffering a nearly 10 percent drop closing at its lowest level in more than five years. Hong Kong's Hang Seng also losing more than eight percent today.
A CNN exclusive we've been following. The progress of billionaire adventurer Richard Branson as he tries to sail across the Atlantic in record time aboard his Virgin Money Yacht. Well, the Virgin Group chairman will make a major announcement in the next hour. We're going to talk to Richard Branson live just ahead.
11 days to go and Barack Obama widening his lead again in the CNN national poll of polls. There's a look. Obama now up by nine points. 51 percent to 42 percent for McCain, with 7 percent of those asked saying they are unsure. Obama's lead is four points in battleground Nevada, a state that's traditionally gone Republican.
And as CNN's Dan Simon tells us, the fight to keep Nevada red is being waged far from Sin City.
DAN SIMON, CNN CORRESPONDENT: John and Kiran, this is not how you picture Nevada. There's not a slot machine or a blackjack table in sight. And when you come to small towns like this, rural areas, you quickly realize they are dominated by Republicans and they are dismayed by the growing possibility that this state could turn blue. (BEGIN VIDEOTAPE)
SIMON (voice-over): Douglas County, Nevada is McCain country, about as Republican red as any place you'll find in the state. We're in the town of Genoa, about 45 minutes outside of Reno. It's claim to fame, it was Nevada's first settlement in 1850. It has the state's oldest thirst parlor but few here seem thirsty for a leadership overhaul.
(on camera): How disappointed would you be that after all these years if Nevada turns blue?
UNIDENTIFIED FEMALE: I would be devastated. I don't think that's going to happen.
SIMON (voice-over): Tina Delaun (ph) jokes that her two dogs are also Republican. She dismisses talk that Nevada Republicans are losing their pit bull like grip when it comes to presidential elections.
UNIDENTIFIED FEMALE: I believe that Nevada is going to stand tough and be the Republicans that we are.
SIMON: In 2004, about 70 percent of Genoa's nearly 600 voters went for Bush. Yet here and countywide, there is evidence that GOP is losing some of its dominance. This year, Democrats increased their registration rolls by 20 percent in Douglas County. Republicans by only 5 percent. They may still have twice the amount of registered voters than Democrats but some have noticed a change.
CHRISTINE ADAMSON, BUSINESS OWNER: Talking to people, I'm noticing a lot more Democrats, especially here in Genoa.
SIMON: Christine Adamson owns a jewelry shop. She's unhappy with President Bush but is supporting McCain because she prefers his economic policy over Obama's. She's also anti-abortion.
ADAMSON: I think everybody is looking for a change. I just wish that it wasn't such a dramatic change. You know, I think we need to take baby steps.
SIMON: We met Troy Sale at a local pub. He was one of the few registered independent voters we came across.
So, you would support a Democrat?
TROY SALE, REGISTERED INDEPENDENT: I never have.
SIMON: And he's not about to start with Obama.
SALE: I don't know if I actually even believe Obama. I think he's a talker.
SIMON: Nevada turning blue? Democrats may be gaining strength, but in the country side, they hope the state stays as red as farm yard barns.
(END VIDEOTAPE)
SIMON: And there is more bad news for John McCain in this state. The early voting numbers are beginning to come in. And when you look at Reno and in Las Vegas, the two biggest cities in the state, by and large, most of the people coming to vote early are Democrats.
John and Kiran, back to you.
ROBERTS: Dan Simon reporting for us this morning. Dan, thanks so much. To the "Truth Squad" now. And a look at some of those robocalls that are flooding the swing states. Perhaps you got one. Our Alina Cho has been checking the one put out by the Republicans. And she's here now to run it through the "Truth Squad."
Good morning.
ALINA CHO, CNN CORRESPONDENT: Hey, there, John. Good morning to you. Good morning, everybody. The latest attack is a new automated phone call being sent out by the Republican National Committee in battleground states. And it bears the voice of former GOP presidential candidates Rudy Giuliani, a McCain supporter and of course a well-known crime fighter.
Giuliani said Obama is not only soft on crime, he wants to give violent criminal a pass.
(BEGIN VIDEOTAPE)
VOICE OF RUDY GUILIANI, FORMER PRESIDENTIAL CANDIDATE: You need to know that Barack Obama opposes mandatory prison sentences to sex offenders, drug dealers and murderers.
CHO: Once again we went through the record. In 2003, Obama was asked about mandatory minimum sentence while running for the Senate, and said, quote, I would vote to abolish mandatory minimum sentences. We also found this. Obama speaking a little more specifically at Howard University last September.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I think it's time we took a hard look at the wisdom of locking up some first time non-violent drug users for decades.
CHO: Which is echoed on his campaign's Web site in a promise to review mandatory minimums to, quote, "reduce the blind and counter- productive of warehousing of non-violent offenders."
So, are Rudy Giuliani and the Republicans getting it right?
GIULIANI: You need to know that Barack Obama opposes mandatory prison sentences for sex offenders, drug dealers and murderers.
(END VIDEOTAPE)
CHO: So the "Truth Squad" verdict on this one is misleading. What about the sound effect? Thank you. Thank you, anchors.
Obama did --
ROBERTS: Hey, we got to be good for something.
CHO: What you're doing, guys, are great. Obama did say, we should mention, that he would vote to abolish mandatory sentence but he made a general comment. It was four years ago. Recently on his Web site, Obama has offered more details, saying we need to focus on non-violent drug offenses not violent crimes. And of course, as always, we are watching both sides.
Coming up at 7:00, Joe Biden said even George Bush is backing Barack Obama's plan to draw down troops in Iraq on a timetable. Is that true? We will have the answer.
As you know, John, a lot has been said on both sides. It's hard to sort of parse through all of it, but we're going to do that for you in the next hour.
ROBERTS: It is. I think our sound effects have already left for the weekend. Alina, thanks for that, though.
CHETRY: Hey, Alina, you always got us. Don't worry.
CHO: I know. But we're trying to bring it back.
ROBERTS: And we -- and we can handle it.
CHO: I you know can.
CHETRY: Thanks, Alina. Well, we have some breaking news on the markets as well. Christine Romans "Minding Your Business" for us this morning.
Hey, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi, there. Big loss overseas. And S&P futures are lock, limit down. That's means they're not allowed to go any lower because they've already fallen the limit that is allowed from the Chicago Mercantile Exchange this morning. We're going to continue to follow that for you. We're going to tell you which candidate has the best plan to solve this financial crisis. It's 36 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back. It's a Friday, and we have some breaking news as it relates to the market. Good thing. There's going to be a two day break because things were not looking great.
ROMANS: Right. We had these big losses overseas. The Japanese markets and pretty much all of the market, big losses overseas. And then this morning, you have Dow futures and S&P futures were down quite sharply. And now, it's something called limit down, when they've fallen to a certain level, the exchanges freeze that level. They don't let the price go any lower for those S&P futures and those Dow futures. Dow futures are down some 546 points a little bit earlier going.
So, they lock in this limit down, it's called, and that just sort of halts things where it is until the futures -- until the exchanges can open and the physical market can open. You know, 9:30 Eastern Time is when the stock market opens. So, we'll see what that means for the stock market at the open.
ROMANS: So, we'll see what that means for the stock market at the open. What we know is that there's an awful lot of selling all around the world including in U.S. stocks and selling interest in U.S. stocks.
So, we're probably going to see a very, very big decline, which brings us to something that is so important for so many voters -- which presidential candidate is best equipped to handle this crisis?
You know, both of these candidates have actually been scrambling over the past two or three weeks trying to articulate their response to this crisis. And we know that conditions have been changing on a day-to-day basis. You know, do they support the bailout? Both of these candidates, they do support the bailout.
Do they support another stimulus? We know that Barack Obama supports a second stimulus but John McCain has been a little more cautious in supporting another stimulus. He's open to it but he doesn't necessarily want to throw another $150 or $300 billion at something if we don't know if it's going to work.
Where they agree on seniors and on the jobless? John McCain at first said he didn't want people who are 70-1/2 years old to have to go in and tap their retirement in the stock market just because they reached that age. That's the rule. He wanted to suspend that rule. And Barack Obama agrees with him. They both want to suspend taxes on jobless benefits. That's where they agree.
Let's quickly go through John McCain and the specifics of his plan for this crisis. He wants to spend $300 billion to buy and convert bad home loans into 30-year fixed loans backed by the government. He wants to lower taxes on seniors who are tapping their retirement benefits. He wants more tax write-offs for home sellers in a down market. He wants to cap the capital gains tax. And as we said, eliminate taxes on jobless benefits.
Where does Barack Obama stand? He wants to allow early withdrawals from retirement savings. We already have hardship withdrawals but he wants to go a little bit further. He wants to lend to state and municipal governments. He wants to encourage job creation with this tax credit, $3,000 tax credit for each worker temporarily, just for the next couple of years. He wants to extend jobless benefits and cut taxes on them. And mandate a foreclosure moratorium for about three months for homeowners who are, quote unquote, "acting in good faith." He wants to just suspend foreclosures for the next three months.
So that's where they stand. There are some agreements. And they've really refined their positions over the past couple of weeks. But let's be honest, these things are changing day-by-day in this economy, this credit crisis and this market.
CHETRY: Sure are. All right. You'll keep us posted on all of this.
ROMANS: Sure.
CHETRY: Thanks so much, Christine. What do America's kids think about the presidential race? Well, the woman behind the "Nick News," Linda Ellerbee of Nickelodeon, tells us what they asked the candidates and who they picked to be president.
And forget Berlin. Denver was nothing. Barack Obama wants a massive blowout party for election night but who's going to foot the bill? It's 42 minutes after the hour.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED CHILD: My question is, my family has four girls going to college. It's a big expense for us. So, if you were elected president, what would you tell families like mine?
UNIDENTIFIED CHILD: I know what it feels like to be picked last for the football team in school. And I was wondering have you ever been picked last and how did you handle it?
(END VIDEO CLIP)
CHETRY: Well, they may not yet be old enough to vote but they do know what to ask the presidential candidates. Since 1988, Nickelodeon, which is the kids' network, has done a "Kids Pick the President" poll and this year they voted in record numbers. And joining us is award-winning journalist Linda Ellerbee, the host of "Nick News."
Thanks for being with us this morning. Great to see you.
LINDA ELLERBEE, HOST, "NICK NEWS": Good morning.
CHETRY: So, it's really interesting these kids voted. They predicted the winner in four out of the last five U.S. presidential elections. And this year, more than 2.2 million kids cast their vote and they ended up picking Barack Obama as the winner. Pretty close race. Do you think the kids will be right again this year?
ELLERBEE: I never -- I'm a journalist. I do not predict. I've learned years ago that I'm terrible at it. So, I won't even go there.
CHETRY: But it really is amazing that so many young people are energized and interested. I mean, you had 1.1 million -- 1.167 million for Barack Obama and 1.129 million for John McCain. That's a lot of kids voting.
ELLERBEE: You know, every year since this began in '88, we've seen a few more kids interested but this year, it was just astounding. Every where we went around the country, the number of kids who were interested and involved in the campaign in some form or another was, I would say, more than double that it was ever been before since '88.
CHETRY: What do you attribute that to?
ELLERBEE: I don't know. I think part of it is -- well, part of it is age. You have to remember that for a 12-year-old, really their memory -- they only remember one president, George Bush. So, you don't have a president running this time. So, you have new people.
And let's face it, it is a historic election. We have a biracial presidential candidate. We have a female vice presidential candidate. And kids, if nothing else, you have to remember that more than anyone else, kids are into change.
CHETRY: You're right. And the other interesting thing, you know, I'm wondering is the effect of access, 24/7 to information...
ELLERBEE: I think that's true, too. The internet. CNN. Those other unnamed 24-hour news services. No question about it. I also think they're also hearing more conversation around the dinner table.
CHETRY: I bet they are. Absolutely. It's really interesting because they had a chance to sit down and ask both of the candidates some different things. And this is something that you probably wouldn't see asked in a cable news interview or maybe a network news interview...
ELLERBEE: No, you wouldn't.
CHETRY: But this is why kids are kids. Let's listen to what they asked about Halloween costumes to the two candidates.
(BEGIN VIDEO CLIP)
OBAMA: The costume I had when I was 3 as a pirate was one of the best costumes of all times. You know, I had a sword and I'd a little mustache. It was outstanding.
MCCAIN: Mine was a pirate and sometimes when I see the way they behave in the United States Senate, sometimes I wish I put my costume on and take my sword out or my dagger and get them back in line.
(END VIDEO CLIP)
CHETRY: Little bit of irony there. Maybe they can't agree on much but they agreed on the same Halloween costume when they were little.
ELLERBEE: You know, it has to wonder where that actually says something about guys or just guys who go into politics.
CHETRY: Well, I think that they can't really say I was Nemo. You know, probably wouldn't try.
ELLERBEE: Probably not. Although Obama did say that his little girls, he said they always want to be little fairy princesses and things like that and he said, I think you ought to scare people at Halloween.
CHETRY: Well, it's very interesting. As you said, they're more energized than ever. And they picked Barack Obama by a slight margin. This time, we'll see if they're right.
ELLERBEE: Very close, very close.
CHETRY: We'll see if they're right. Well, it's great to have you with us. Linda Ellerbee, thanks for being with us this morning.
ELLERBEE: Thank you. Glad to be here.
CHETRY: It's 48 minutes after the hour.
ROBERTS: Campaign keepsakes.
(BEGIN VIDEO CLIP)
JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (on camera): These are the designer Obama underwear.
(END VIDEO CLIP)
ROBERTS: Jeanne Moos looks at some of the most unusual costumes, gifts and gadgets to spring forth from the campaign.
(BEGIN VIDEO CLIP)
MOOS: Barack in the box.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
TINA FEY, GOV. SARAH PALIN IMPRESSIONIST: It's so nice to meet you, Mr. President. I've seen you on TV.
WILL FARRELL AS GEORGE W. BUSH: Where is McRage?
FEY AS PALIN: You know, John McCain and I have been so busy traveling around this great country of ours, talking about change and energy independence and William Ayers and doing a little shopping.
FARRELL AS BUSH: Good.
(END VIDEO CLIP)
ROBERTS: Tina Fey meets Will Ferrell, or is it Sarah Palin meets George Bush in the Oval Office. The latest presidential parody from the "Saturday Night Live" folks. Just when you thought this campaign couldn't surprise you, along comes a giant puppet and a breakfast cereal fortified with real slogans. Our Jeanne Moos has got another edition of the campaign follies.
(BEGIN VIDEOTAPE)
MOOS (voice-over): Candidate's say the darndest things. Take Sarah Palin speaking after country star Gretchen Wilson serenaded the crowd about what kind of woman she is.
UNIDENTIFIED FEMALE: I've been red neck woman.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: Someone called me a red neck woman once and you know what I said back? I said, why, thank you.
MOOS: Governor Palin is probably fed up with the press, but at least she hasn't sneezed on us.
OBAMA: It should be the banks taking -- I'm sorry.
UNIDENTIFIED REPORTER: Bless you.
OBAMA: I was fighting it up for a while.
MOOS: Not only did Senator Obama sneezed, he then reached out and touched the poor reporter. The video spreading faster than germs on the Web. As did this photo of the senator with holes in his soles. Obama's V.P. soul mate had some trouble with their opponent's name.
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: John McClain -- John McClain, excuse me, John McCain.
MOOS: We know John McClain, senator, from "Die Hard"
UNIDENTIFIED MALE: (INAUDIBLE).
MOOS: And McCain, you're no McClain. From "Die Hard" to "007," "Parade" magazine asked actor Daniel Craig which candidate would be the better Bond. Craig said Obama. McCain would be a better "M."
JUDY DENCH, ACTRESS: Utter one more syllable and I'll have you killed.
MOOS: Craig said McCain has a kind of Judy Dench quality. Meanwhile, Sarah Palin told "People" magazine that if she had had another child, bringing the rights of Trig and Piper and Track, she would have named him Zamboni. What? Not Joe the Plumber?
MCCAIN: Joe over here, thank you, Joe. Joe, thank you. There's Joes --
OBAMA: He's fighting for Joe the Hedge Fund Manager, Joe the CEO.
MOOS: But Joe the Plumber custom is big on Ricky's Halloween Web site. There were dozen, amount to much more than a bald cap, a plunger and a name tag.
(on camera): We thought you might like to take a look at a few of our favorite campaign souvenirs. For instance, the Obama and McCain gargoyles. And these are the designer Obama underwear. Captain McCain's and Obama O's cereal. Custom cereal, $39 a box. And speaking of boxes, Barack in the box.
(voice-over): Remind us of that 13-foot puppet. An iReporter sent in, tended to encourage early voting in Cleveland, Ohio. He looks like he's had his Wheaties or maybe his Obama O's. "Hope in every bowl" versus "a maverick in every bite."
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
ROBERTS: Party night for a president. Obama's bash, McCain's gallop and the million dollar question.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Who is paying for right now.
(END VIDEO CLIP)
ROBERTS: Plus, you know who has the Best Political Team on Television, but the best political team on wheels?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Taxi!
(END VIDEO CLIP)
ROBERTS: The taxi pundits, left, right.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Shouldn't they be talking about Joe the Taxi Driver.
UNIDENTIFIED MALE: Of course.
(END VIDEO CLIP)
ROBERTS: Behind the wheel, on top of the issues. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: The needle now moving for Barack Obama in a brand new set of CNN Poll of Polls. His lead back up to nine over John McCain -- 51 percent to 42 percent. That's a point higher than it was yesterday. And coming up in a couple of minutes, we're going to run down the battleground states, play a little bit of the magic wall, show you how the electoral college stacks up. And John McCain and Barack Obama's respective routes to the Oval Office.
Win, lose or draw, the Obama campaign is already planning a colossal election night bash that could make Chicago look like Times Square on New Year's Eve.
AMERICAN MORNING's Carol Costello joins us now live from Washington. She's been following the preparations.
It's not going to be your typical ballroom at the Renaissance Hotel.
CAROL COSTELLO, CNN CORRESPONDENT: Oh, nothing quite about this celebration or not celebration. Obama supporters will come together to cheer in victory or cry in defeat. Either way, they will have a million shoulders to lean on.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): You think that rally in Berlin was big? Win or lose, Barack Obama wants election night to be bigger.
JERRY ROPER, CHICAGO LAND CHAMBER OF COMMERCE: This is going to make the crowd that he had in Germany and St. Louis -- this will triple that. I mean, I see this upwards of a million people.
COSTELLO: Imagine four times the crowd in Germany filling this half empty park, Chicago's Grant Park.
MARK HALPERIN, TIME MAGAZINE: Whether you're a supporter of Barack Obama or not, the ability to draw this many people on a cold Chicago night is going to be an impressive sight to see.
COSTELLO: And what a contrast it will be.
John F. Kennedy, he went to bed not knowing if he'd won. The next day he greeted reporters in Hyannisport.
JOHN F. KENNEDY, FORMER PRESIDENT OF THE UNITED STATES: So now, my wife and I prepare for a new administration and for a new baby.
COSTELLO: Ronald Reagan in California, in a hotel ballroom to a more modest crowd. John McCain is going the Reagan route, holding his election night party at Phoenix's historic Biltmore Hotel, where the Reagans got married.
Some Chicagoans are way more open to that more modest way. They like the idea of a big Obama bash but they're leery of the cost.
ANGELA SCHMIDT, CHICAGO VOTER: Didn't even know if there was one going on. Who is paying for it right now?
COSTELLO: A fair question. According to the "Chicago Sun- Times," the city has more than a $400 million deficit and will lay off more than 1,000 employees. City officials were quick to say, they're negotiating with Obama for the cost.
RAYMOND OROZCO, CHICAGO EMERGENCY MANAGEMENT OFFICE: What I will tell you is that this cost of this event will not be paid for by the taxpayers of the City of Chicago.
(END VIDEOTAPE)
COSTELLO: Negotiations are ongoing, however. The Obama campaign did tell me they are more than willing to pay for private security, emergency services and they will pay for all of the clean up costs, too.
John?
ROBERTS: I'm just trying to do the calculation here. We got November 4th, Grant Park, Chicago, Lakefront. I mean, the weather could be terrible.
COSTELLO: It could be terrible, but, you know what? I think that hundreds of thousands of people will go anyway. At least that's what the Chamber of Commerce in Chicago is predicting.
ROBERTS: Yes. It sure will. They are a tough bunch of people there. They go to Bear's games, right?
COSTELLO: That's right. And there's a lot of them, they can huddle together and keep warm.
ROBERTS: There you go. Warmth in numbers. All right. Carol Costello this morning.
Carol, it's good to see you. Thanks.
COSTELLO: Sure.
