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U.S. Prepares for Talks with Iran; U.S. Custody Fight in Japan; Health Reform and the Public Option
Aired September 29, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Showdown day on Capitol Hill. We are focusing on the Senate Finance Committee where Democrats will likely be facing off over what they want in health care reform.
Our congressional correspondent Brianna Keilar is there for us this morning. So Brianna, it looks like the room is starting to fill up a little bit. At least from where I am looking, this is going to be Democrats versus Democrats for the most part today.
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Yes, it is. Certainly, Republicans, Heidi, are not on board with this public option, this idea of a government-run insurance plan but we are expecting - well, last week we saw Democrats versus Republicans rhetorically, we're expecting it to be a House divided today, Democrats versus Democrats. When two democratic senators, Jay Rockefeller from West Virginia and Charles Schumer from New York, propose amendments that would add a public option, that government-run insurance plan, to the bill that the Senate Finance Committee is considering.
Because remember that bill does not include a public option. So, you know, it's going to be really interesting to see where these Democrats stand, Heidi, because the issue with this committee that we've been paying so much attention to is they don't have the public option because it's really seen as the only way to move a bill through the Senate. Because there aren't enough Democrats on board with this idea of the government-run insurance plan.
We're going to see those democrats who say we need a public option. We're going to see those Democrats who are against it and then we're going - really interestingly see those Democrats who are expressing a lot of discomfort with the idea and we'll be certainly watching very carefully what they say during this debate today, Heidi.
COLLINS: OK. So I don't get it. If we know we don't have the votes for it or they know, they're still going to have this discussion because it could come up again later?
KEILAR: Yes, because right now there are five bills that Congress is considering. This is just one of them. And it's the only one that doesn't have that government-run insurance plan. The House right now, all of the proposals there looking at all of the bills they have moved through committee have that government-run insurance plan. So does the bill that came out of the Senate Health Committee.
And at a certain point the bill that comes out of this committee behind me is going to have to be melded with that bill from the Senate health committee with the public option and so they're really laying out markers here, these Democrats, who want a public option. Even they won't get a win today, that's definitely the expectation. They're hoping that they put a stake in the ground for a little farther down the path toward health care overhaul.
COLLINS: All right. Well, we will be watching alongside you. Brianna Keilar, thank you. And just minutes from now, we're going to talk about this further. Our own health care debate even though it is not be on the proposed bill as we've just been saying, some people are still saying the public option needs to be on the table. We'll explain it for you.
So how do you get a combative country like Iran to listen? The U.S. is hoping new sanctions will do the tricks work specifically in the areas of energy, finance and telecommunications according to the "Associated Press." This after Iran carried out several missile tests over the past few days and just before that the world learned the country is building a second uranium enrichment plant.
It won't be easy convincing Iran that it doesn't need it's nuclear program but as Jill Dougherty tells us that's exactly what the U.S. will try to do this week.
(BEGIN VIDEOTAPE)
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT (voice-over): Years after Iranians took Americans hostage, severing relations between the two nations, now the highest level discussions between Iran and the United States this Thursday. The U.S. dispatching top diplomats under secretary of state William Byrnes to Geneva, joining representatives from Britain, France, Russia, China and Germany. The message, Iran must come clean about its nuclear program.
P.J. CROWLEY, STATE DEPARTMENT SPOKESMAN: This is about Iran coming forward once and for all. Putting everything on the table. And letting the international community, you know, understand what the intentions of its programs are.
DOUGHERTY: But with Iran playing war games, testing long range missiles and revelations by President Barack Obama and his allies that Iran has been secretly developing an underground uranium enrichment facility, no one is predicting success.
Iran won't say what it will do with the meeting.
Iran's foreign ministry spokesman saying if there's good will, it's a good opportunity for constructive negotiations. But patience is running thin. Secretary of State Hillary Clinton telling CBS's "Face the Nation"...
HILLARY CLINTON, U.S. SECRETARY OF STATE: The Iranians keep insisting, no, no, this is just for peaceful purposes. Well, I think as the Russians said in their statement and as we believe and what this meeting on October 1st is to test is fine, prove it. Don't assert it. Prove it. DOUGHERTY: Could the talks simply lead to more talks? A senior administration official tells CNN that would not be a bad outcome. What could change Iran's behavior? The allies are considering drastically increased economic sanctions like cutting off international investment in Iran's oil industry. But a leading Iranian expert says there's no silver bullet.
KARIM SADJADPOUR, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: The problem with this Iranian regime is that the economic well-being of the Iranian people has never been an important priority for them. So I think they are going to be willing to endure severe economic sanctions, severe economic hardship for reasons of political and ideological expediency.
DOUGHERTY (on camera): Behind the scenes, U.S. officials claim they have more leverage than they had just a few months ago. Iran they say has damaged itself significantly by not responding to international concerns about its nuclear program and by a brutal crackdown on demonstrations during its presidential election.
But as one U.S. official tells CNN, the challenge is to put pressure on the Iranian government while keeping faith with the Iranian people.
Jill Dougherty, CNN, the State Department.
(END VIDEOTAPE)
COLLINS: A Denver man accused of plotting a terror attack in New York City is scheduled to be in court at the top of the hour. Authorities say Najibullah Zazi wanted to bomb targets on the anniversary of the September 11th attacks. Officials believe the plot may have been directed at mass transit and say three others may also have been involved. Zazi has denied any wrongdoing.
To the war in Afghanistan now, today is the focus as both the United Nations and at the White House. Let's begin with the president's schedule. This afternoon he will meet with his national security team on the deepening troubles in Afghanistan.
But first, the president will meet NATO's secretary-general. That is next hour. Anders Fogh Rasmussen has argued that the U.S. and its allies have to focus more clearly on training Afghans to take the lead in securing their own country.
Let's turn to the United Nations now. This hour, the security council is looking at those tough issues involving Afghanistan including the disputed presidential elections.
Let's get the very latest from our senior U.N. correspondent Richard Roth. Richard, good morning to you. What exactly is happening today?
RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: U.N. special envoys who are based in Afghanistan will brief the entire United Nations Security Council about the latest developments there especially the critically flawed election that's been going on. The United Nations provided structural support for that election campaign and now the result is in doubt and the future of Afghanistan as you reported being discussed in Washington.
The United Nations Security Council has been getting routine briefings. This is the latest in a series of those -- Heidi.
COLLINS: Well, we know it hasn't exactly been smooth going for U.N. leadership talking about Afghanistan, right?
ROTH: Yes. You don't see this type of event and what happened. Sharp differences between the top two United Nations officials based on the ground there. A Norwegian representing the United Nations there arguing with his deputy, the American Peter Galbraith, who played a key role in the Bosnia crisis in the late '90s. The Norwegian preferring a different approach than the American.
The American wanted a tougher style with the Karzai government and didn't want all the ballots counted even in so called ghost voting booths.
COLLINS: Right.
ROTH: So the Norwegian and the American are both here in New York. The secretary-general stands behind both of them and thinks they can still work together.
COLLINS: Well, that's the point, I guess, of the U.N. but is the general assembly session actually over? Does it ever really end?
ROTH: No, it's still going on. The final session. Last night featured an interesting development. The Honduran foreign minister, her president hiding in exile, you might say, inside (INAUDIBLE) Honduras used a cell phone to get President Zalaya's message out and North Korea had an official here who blasted without much surprise the United States and the security council.
COLLINS: All right. Our U.N. correspondent, Richard Roth, sure do appreciate it. Thank you, Richard.
A father with custody rights goes back to grab his children and winds up in jail. It seems a U.S. court decision has no influence in Japan.
(COMMERCIAL BREAK)
COLLINS: It's a custody case that began in Tennessee and is now playing out on the other side of the world with no resolution in sight. Here's what happened. Christopher Savoy's ex-wife, a Japanese native, had agreed to live near their two children in Tennessee taking them to Japan on summer vacations. But when classes started for the kids last month, the school called to say they hadn't arrived. Savoy called his ex-wife's father in Japan who said the children were there. A U.S. court then granted Savoy full custody of the children and an arrest warrant was issued for his ex-wife.
Now fast forward to this week, the dad goes to Japan to try to bring his kids back home and winds up in jail.
CNN's Kyung Lah picks up the story in Tokyo.
KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: The U.S. Embassy here in Tokyo says it is fully aware of what has happened to the American, that they have sent representatives to speak to him yesterday and today, and that he's been given a list of attorneys to try to get legal representation here. But this is a very delicate matter. Very difficult situation.
Because Japanese family law is very different from American family law. In the event of a divorce, only one parent typically is recognized as the custodian and the other essentially has no rights, and Japan also hasn't signed on to the Hague Treaty, which really means here Japan isn't necessarily obligated to act in any sort of way in this matter.
What this means for Christopher Savoie? He's in a jail cell. Even though under U.S. law he is considered the sole custodian and his Japanese ex-wife is the one considered the abductor. Under Japanese law, he is a criminal here. Japanese police say that he grabbed his two children, eight-year-old Isaac and six-year-old Rebecca, as they walked to school with their mother on Monday morning.
He took them or attempted to take them to the U.S. consulate. Steps from the doorway, from the doorway of the U.S. consulate, local police stopped him and because he was standing on Japanese soil he was arrested and charged with kidnapping. Before all of this happens, Savoie shared his frustration and his desperation from his Tennessee home.
(BEGIN VIDEO CLIP)
CHRISTOPHER SAVOIE, FATHER: I said they're what? They're what? They're in Japan?
(END VIDEO CLIP)
LAH: The U.S. State Department says they believe there are up to 100 cases involving Japanese and American citizens and parental abductions. They are hoping for a long term solution. But in the meantime for this case a very sad story about divorce and two cultures and laws colliding.
Kyung Lah, CNN, Tokyo.
COLLINS: We'll stay on top of that story for you.
Meanwhile, the battle over health care reform. We're going to look at one issue that could be a deal breaker on both sides of the debate.
(COMMERCIAL BREAK)
COLLINS: Our top stories now. Authorities have charged a fourth suspect in connection with the beating death of a Chicago honor student. The four teens have been charged with first-degree murder and are being held without bail. Prosecutors say Derrion Albert was an innocent bystander caught in the middle of a street fight between two groups of students.
An amateur video shot by a witness showed the attack unfolding. Albert was hit with railroad ties and one suspect admitted he jumping on Albert's head when he was down on the ground.
A woman suspected of robbing banks in southern New England is in jail this morning. Police say Heather Brown is accused of robbing at least six banks in the past week often while saying she had a bomb. Brown was charged with robberies in Connecticut, Rhode Island and Massachusetts.
Secret Service investigating who was behind a user generated Facebook poll that asked should Obama be killed? The choices were no, maybe, yes, and if he cuts my health care. Facebook spokesman Barry Smith tells us the poll was removed from the site as soon as the company found out about it. He said "the application was immediately suspended while the inappropriate content could be removed by the developer." Facebook says it is working with the Secret Service.
The debate over health care reform this hour it returns to the spotlight and the Senate Finance Committee. It's the last obstacle for the measure before it can actually reach the Senate floor. And what an obstacle it is. The measure from Chairman Max Baucus does not include the so-called public option of government coverage.
Today two senators will offer amendments to add a public option and there is really no middle ground in the debate over the public option. People are either for it or they're against it. Let's hear the arguments now from both sides.
Richard Kirsch is in favor of the public option. He's a national campaign manager for Health Care for America Now and against the option is the Michael Cannon. He is the director of health policy studies for the Cato Institute.
Richard, let's begin with you. You actually say there could probably not really be health care reform without a public option. How do you define what the public option even is?
RICHARD KIRSCH, HEALTH CARE FOR AMERICA NOW: Well, the public option is a health insurance plan that's run by a government agency as opposed to a private health insurance company. And we basically want to be sure that when health care reform is passed that people have a choice of getting private health insurance or getting choice from a public health insurance plan.
And the reason is that private health insurance companies have failed to control costs, premiums have gone up several times as much as wages and private health insurance companies always, in order to make money put their profits before your health and turn down health care you need. We need an insurance plan whose mission is your health.
COLLINS: All right. So Michael, do you agree with any of that?
MICHAEL CANNON, CATO INSTITUTE: Not much. The government option as it's called is not about expanding choices but it's about reducing choice because the government cannot compete fairly with private insurance companies. The government plan will always enjoy special advantages and subsidies that will allow them to undercut private insurance companies.
And I don't really mind private insurance companies going out of business. But the problem is in the government option is going to pull consumers out of private insurance, put those private insurers out of business despite offering a lower quality higher cost product. That's what the ability to subsidize the government option does.
COLLINS: All right. Sorry.
This is obviously a very heated issue. I want to make sure we give equal time here. Because I know that you wrote this article, Michael, about the public option. I want to put some of it on the screen. And Richard, I'm going to get your reaction to it. It's basically called "The Good, the Bad and the Ugly."
Under the good category, we were able to find that you're talking about the co-op and that they have startup grants and that there's also this option of interstate health insurance. What's the best thing about the Baucus bill here.
UNIDENTIFIED MALE: From my point of view?
COLLINS: Sorry, Mike, you explain first. Richard, I'll let you shoot it down because I have a feeling that's what you're going to do.
CANNON: Well, if you're asking me then, we should clarify that's not my article. That's my colleague's, Michael Tanner's article, that you're quoting. So about the Baucus bill I don't see much good at all. I don't have as much optimism about that provision to allow people to purchase insurance across state lines that my colleague does. I don't think it's going to accomplish that.
And even though the Baucus bill talked about health insurance co- ops, that's not much different or really any different from what everyone else is talking about in terms of government option. It's still the government being the venture capital firm for new "private" health plans. And if the government is paying the piper, well the government is going to call the tunes. That's a back door way of having the government manage and introduce a competitor into the marketplace and drive private insurers out of business by restricting choice.
COLLINS: All right. Richard...
KIRSCH: Well, so we really disagree on everything.
COLLINS: Yes. KIRSCH: And one is that there are no subsidies in the plan for public health insurance plan. The public health insurance plan would compete like other private insurance companies. All under these plans would get subsidies from the government. The subsidies would go to people based on their income. So what you pay for health coverage is based on your income and the government would pay the part you can't afford and you have a choice of either private health insurance or public health insurance without a government subsidy differentiated between the two of them. The same subsidy whether it's public or private but the point is -
CANNON: That's not true. Because there's always going to be that implicit subsidy for a government program because every one knows that Congress will bail out a government program if it's premiums are insufficient to cover revenues.
(CROSSTALK)
COLLINS: You know what, Michael, I got to cut you off. Because we're not getting equal time here. Richard, finish your point.
KIRSCH: Thank you. The legislation specifically says that won't happen. And it's just not true and so Mr. Tanner, Michael is just basically trying to make up things in order to disguise his ideological position which is anything the government does is wrong.
Basically, the remarkable thing to me is this idea that private health insurance can't compete. Private health insurance companies have 160 million customers, 200 million total, actually. They have years and years of marketing. They have contracts and businesses and they're whining (ph) they can't compete with the new public insurance plan that's run by the government?
They always think the government is inefficient but all of a sudden this big huge insurance companies can't compete.
COLLINS: OK.
KIRSCH: The reason they're worried is because they know they have huge profits and they don't treat people very well and people might reject them.
COLLINS: Well, clearly we're not going to be able to solve all of this today. And I believe that the Senate Finance Committee is going to be feeling the same thing because obviously right now this is what they are talking about in that committee.
Let's fast forward just a moment. I'm going to give you guys each a shot. Michael, exactly what should happen with health care reform? Give me your shortest answer on how this can be resolved or do you think we should leave it just the way it is?
CANNON: The best thing that could happen with health care reform right now would be nothing given the direction that the Democrats want to take health care reform. And I have to correct Richard. He needs to get his facts right. First of all, he's speaking to Michael Cannon and not Michael Tanner. And secondly, it's not ideology that says that the government is going to subsidize its own plan. It's Larry Summers, President Obama's economic adviser, who said the Freddie Mac and Fannie Mae benefited to the tune of $6 billion per year from the same sort of implicit government subsidy. This is not...
COLLINS: OK. So what should be done, Michael?
CANNON: What should be done is we should let individuals control their health care dollars and choose their own health plans without the federal government creating a new government program or regulating health insurance itself. We should let people purchase health insurance across state lines and those two steps would make health insurance more affordable, give people more choice and reduce the number of uninsured but the direction that Congress is taking us right now, will not do any of those things.
COLLINS: OK. Richard.
KIRSCH: Well, that basically says you're on your own with the same private health insurance company that have driven prices through the roof, that deny people care that they need all the time and it's really more of the same. And so we need to regulate insurance companies just the way we regulate cars. We don't allow people to sell cars that will kill you. We shouldn't allow the insurance companies to sell insurance policies that will stop paying when you're really sick and drive you into bankruptcy.
CANNON: The problem...
COLLINS: Richard, we got to call it quits, guys. Forgive me. We will have you back another time to debate more of this. Because I think there's going to be a lot of further debate clearly on the public option and many of the other 546 amendments of Senator Baucus's framework bill. So we will have another discussion and would sure invite the two of you back.
My apologies for confusion about the article from Michael Tanner. Michael Cannon, sure do appreciate your time and Richard Kirsch as well, Thank you, gentlemen.
UNIDENTIFIED MALE: Thank you.
COLLINS: $35 billion of your money, it may soon help buy homes for a lot of people. We'll talk to the reporter who broke the story.
(COMMERCIAL BREAK)
COLLINS: On Wall Street today, a not so happy anniversary. Exactly one year ago, the Dow plunged nearly 800 points. The drop to this day is unrivalled. Susan Lisovicz is on the floor of the New York Stock Exchange with a look at where we stand. Hi there, Susan, and a whole different day today. SUSAN LISOVICZ, CNN CORRESPONDENT: Heidi, it was just a remarkable period as you and I remember quite vividly. Because September 2008 was a period of crisis. It started, of course, with the failure of Lehman Brothers, September 15th. Escalated two weeks later when the House of Representatives failed to pass the first draft of the financial rescue plan known as T.A.R.P. That is when the blue chips plunged nearly 800 points.
And I might add the volatility didn't end there. Even though that plan was passed a few days later. We saw the 2nd, 4th, 5th, worst point losses ever for the Dow in the following month. Just to give you some insight into what it was like following the stock market then, Heidi, your producers, the assignment desks, all sorts of people were calling us constantly asking us what would it take for the New York Stock Exchange to halt trading. That's how scary it was then.
COLLINS: Yes. I remember.
LISOVICZ: And there is a mechanism in place, just so you know. It's adjusted every quarter. It would have taken a point loss of 1,100 points for there to be a halt in trading. That was put in place after the 1987 crash.
We never got to that point, but it was scary indeed. I'm happy to say that the market has certainly stabilized since then. The market has been rallying since early March, basically been nearly seven-month rally at this point.
To put it in perspective, Heidi, we are still not where we were when the Dow closed even after that nearly 800-point loss. The Dow is just above 10,365. So, we have some ground still to make up. No question about it, Heidi.
COLLINS: Absolutely. So, if you are a person that believes confidence is returning to Wall Street, then the question would be how long before that optimism will hit Main Street?
LISOVICZ: That's a great question. It's a question that's always asked here. We're getting a lot of information this week, including the big jobs report for September. We get earnings report in the next few weeks from corporate America.
What we did get this morning since we last spoke was consumer confidence that unexpectedly dipped last month. Why is that? Well, I'll just read from the report itself. It says, "Consumers remain quite apprehensive about the short-term outlook and their incomes with the holiday season quickly approaching. This is not very encouraging news."
The road to recovery is not a smooth one. It's tough, and with a very high unemployment rate that could rise later this week, Heidi, it's going to be tough sledding. That consumer confidence reflects that. In fact, what we saw with the Dow, the Dow has dipped into the negative territory. That happened after we got that report.
COLLINS: No question. That jobs report coming out on Friday. All of this together, I think there are still a lot of people, whether you are Main Street or Wall Street who are...
LISOVICZ: Not happening fast enough.
COLLINS: ... cautiously optimistic. All right. Susan Lisovicz, thank you.
One bank goes bust. FDIC makes sure your money is protected, but the insurance fund that guarantees those savings needs to be propped up. CNNmoney.com's Poppy Harlow is in New York with more on this. So Poppy, what's being done to ensure that savings are safe?
POPPY HARLOW, CNNMONEY.COM: Let's be clear here, Heidi. Savings are safe if you see that plaque, FDIC, at bank teller, you know the money is insured.
But the FDIC is saying today, Heidi, that unless action is taken to shore up those funds, they could be in the red by the end of this month and stay there through 2013. Let's be clear again. Your funds are safe, but take a look at this chart.
It's over the past five quarters or so. If you look at June, you have a big depletion in terms of those insurance funds. Just over $10 billion set aside for bank failures and another $32 billion reserved for bank failures over the next year.
But bank failures over the last year or so have taken a huge toll on this fund. If you go back to June of 2008, you had more than $45 billion in the fund, and as 95 banks have failed over the year so far, Heidi, compared to 25 bank failures last year, the funds have really, really been weighed on. A lot of pressure. The FDIC is estimating losses from bank failures, Heidi, still to come could climb to $100 billion through 2013. They're meeting on that right now.
COLLINS: All right. How will the FDIC replenish the insurance funds?
HARLOW: They're talking about a proposal right now that a closed-door meeting in Washington right now. The proposal here is to have big banks pay three years of fees into the fund upfront to try and shore it up.
As you can imagine, banks not exactly embracing that idea. What we heard from a rep from the financial services roundtable, they say the exact wrong strategy at the exact wrong time, saying the banks need their c cash on hand to stimulate the economy and do their own business.
Other options. One, the FDIC can tap a $500 billion line of credit from the Treasury. Banks could lend the FDIC money. Otherwise, we could see a one-time assessment charge on banks. That's another thing that's gotten a lot of attention. Whatever happens, the FDIC want to make it clear Americans have nothing to worry about. Take a listen.
(BEGIN VIDEO CLIP) SHEILA BAIR, FDIC CHAIRMAN: I think what depositors need to understand is obviously we full faith and credit; we're backed by the government. We have wide ability to assist the industry to cover our costs. We have substantial lines of credit with Treasury. There's no reason why anybody would ever need to worry about their insured deposit. Nobody's ever lost a penny, and no one ever will.
(END VIDEO CLIP)
HARLOW: What happens now? The banks, Heidi, after they will get to comment on that proposal. We'll get a final decision on that in November or December. We'll bring you the latest when we have it.
COLLINS: Very good. Poppy Harlow, thank you.
"The Wall Street Journal" is reporting the Obama administration is close to committing an additional $35 billion to help the housing market. The money would boost funds to agencies that provide lower- cost mortgages to first-time and low-income buyers. But the idea is getting blowback from critics concerned about massive government spending.
Deborah Solomon is "The Wall Street Journal" reporter who broke the story. She's joining us now from Washington.
So, Deborah, this is money not coming from TARP. Is it correct to say it's not really additional money, and where is it coming from?
DEBORAH SOLOMON, REPORTER, "THE WALL STREET JOURNAL": Well, I mean, it will be additional money. They're still working out the financing. Some of the money will come from Fannie Mae and Freddie Mac, which were the two government controlled mortgage giants, and the rest is going to come from the Treasury. Not through TARP, but through authorization that they have under another bill passed by Congress last year. But they are still working out the financing, and it will probably impact our debt levels in terms of we'll be spending more money, so our debt will go up.
COLLINS: We have quite a bit of debt already. I imagine people want to know why this is happening. Why are these housing finance agencies in trouble?
SOLOMON: Well, they're not in trouble because they made bad loans or got involved in the subprime area. They're in trouble because of reason a lot of states are in trouble. They can't access debt. They can't sell the bonds that they normally rely on for financing. And since they can't sell those bonds, they can't...
COLLINS: Why is that?
SOLOMON: Oh, because the municipal bond market has been pretty tight ever since the credit crunch started. Investors have been really wary of buying debt that governments sell to fund everything from sewer systems to schools.
It's really expensive right now for those governments to borrow because they worry about the risk of default. Because state and local governments aren't doing well, and they worry that governments are not good creditors. So, that's made it hard for housing finance agencies to raise they money they need to raise to offer lower-cost mortgages.
COLLINS: Yes. I bet there are people out there that will say, "Throw in more money at the housing sector? Is that the right thing to do?"
SOLOMON: The government, obviously, is trying to unwind support in other areas. I mean, we have seen the Federal Reserve start moving away from some of its liquidity facilities. But housing is really the one area where the administration and a lot of other folks think it's way too early to pull back support.
Now, you could argue whether or not you should be artificially propping up the housing market, but they argue that if they weren't, the economy would sink back into a recession. I mean, a lot of people think we're coming out of the recession. They say things would be a lot worse than they are now, and this is needed not to prevent what's a natural correction but to make it more palatable for the economic situation.
COLLINS: OK. More palatable for the economic situation. What if it doesn't work?
SOLOMON: Well -- if what doesn't work, this plan?
COLLINS: Yes.
SOLOMON: Well, I mean, you know, there's some risk to the taxpayer because the government is essentially going to be buying this debt. That said, they're going to charge premiums or fees based on how risky they think the debt is that they're buying. And the Treasury isn't saying this isn't going to come without risk, but they say risk is pretty much in hand and they're not worried about big defaults from these agencies.
COLLINS: OK. Well, we appreciate the reporting. We'll certainly be watching. Thirty-five billion -- always a lot of money when there's a b on the end.
Appreciate it. Deborah Solomon with "The Wall Street Journal."
SOLOMON: Thank you.
COLLINS: Thank you.
Rob Marciano joining us now from the Severe Weather Center with the latest on Typhoon Ketsana. We're watching this thing. Already done, obviously, some serious, serious damage.
ROB MARCIANO, AMS METEOROLOGIST: Yes, finally inland for the second time, and this time, it's been downgraded to a tropical storm. It should remain that and decay later on.
But the damage, for the most part, is already done on that. Plus, the fall chill in the air in the Eastern half of the country. Western half, fire danger critical again. Weather coming up in just a short period of time. The CNN NEWSROOM with Heidi Collins is coming right back.
(COMMERCIAL BREAK)
COLLINS: In our top story today, adding a public option or leaving it out to get some kind of health care reform passed. That is one of the issues members of the Senate finance committee are debating right now. Two Democrats say they will push to give Americans the opportunity to join a government insurance program. Right now, that proposal before the committee calls for co-ops but no public option.
A debate over Afghanistan also unfolds this hour at the United Nations. The Security Council will be briefed on the troubles there, including what may be the thorniest issue: the disputed presidential election. There are widespread reports of corruption and vote rigging and even the top U.N. diplomats on the ground can't agree on how to handle the controversy. One U.N. official is reportedly demanding at the very least a major recount. Another is said to be in favor of declaring President Hamid Karzai the confirmed winner.
If Iran won't listen, the U.S. wants to force it to with new sanctions. Specifically with the areas of energy, finance and telecommunications, according to the Associated Press. This after Iran carried out several missile tests over the past few days. Just before that, the world learned that the country is building a second uranium enrichment plant.
We asked you, how should the United States respond to Iran, and the international community, for that matter? You called into "Hotline to Heidi" and here are some of your responses.
(BEGIN AUDIO CLIPS)
CALLER: My name is Bob. I'm calling from Arizona. I think as far as this situation goes that the U.S. should show restraint right now. You don't want to wish Iran closing up the Strait of Herroz (ph), stopping the oil supply, ruining our economy more than what it already is.
CALLER: Yes, this is about the Iranian crisis. My name is Patrick Dubin (ph) from Ft. Lauderdale, Florida. I served in the U.S. Navy, served at a time when we had problems first starting over there. We cannot allow them to get nuclear weapons. They need to stop them soon from doing what they're doing or we're going to have major problems in Israel and all over the Mideast, and God knows, probably in Europe.
CALLER: My name is Craig (INAUDIBLE), calling from St. John, New Brunswick. I believe Iran should definitely let all the inspectors in, and if they don't, then just go in like they did with Iraq and force them to.
(END AUDIO CLIPS) COLLINS: And, of course, you can still call in. That number is 877-742-5760. We'll air your responses all week long on the issues of Iran.
Say you want to watch live video and check your local weather and upload an iReport you just shot. Well, there's a new app for that -- pretty cool, too. It's only from CNN.
(COMMERCIAL BREAK)
COLLINS: Hey, we have this new thing we want to tell you about. It's on the iPod. Your television screen and now your iPhone, too. I'm sorry -- I said iPod. It's an iPhone. You know that better than I do.
CNN has a new iPhone app that you can download right now. It does all kinds of cool stuff. Video, news, weather. Our Internet correspondent, Abbi Tatton, is going to show us much better than me, how it works.
ABBI TATTON, CNN INTERNET REPORTER: Heidi, the new iPhone app from CNN has the latest news. It has the breaking news. It's got personalized news stories for you, but it also has this. Live streaming video that you are now able to get in the palm of your hand wherever you go.
I'm showing you one of the videos on the iPhone app right here. You're going to be able to get CNN.com live, but also if there's a live news event, if there's breaking news, you will be able to carry that around with you.
I'm showing you this on a simulator. It's a slightly different experience than the iPhone, which is smaller but it's an idea of what it looks like. If I take you through it, this iPhone app available in the app store. Let me walk you through the different areas you've got, in addition to live video.
Right now, we're in the headline section, which will be divided up into world, U.S., politics. You can follow the stories that you're most interested in here. You can get them so that your personalized section of the iPhone is populated with the most interesting stories to you.
Let me take to you myCNN, which is that personalized section. I've already got it set up for myself here in Washington, D.C. with weather, traffic, and also affiliate stories that might be interesting to me here in this area.
Another section, the video I showed you before. Another section that we're particularly excited about here is this. I-Report. This is something that CNN launched three years ago. Citizen journalists, our viewers, can contribute material to us, which is so important in breaking news situations to us here. All of these iReports coming in from all around the world that you can watch now on your iPhone, but you can also submit content through your iPhone as well. Go to the iReport section, and it will give you the option to upload your picture, your video that you just took there on the scene and submit it to CNN, where we'll get it instantaneously. We'll be able to put it on the air potentially right after you sent it in.
All of this available for just $1.99. This is CNN.com/iphone or available at the apps store. This is something, Heidi, we're really, really excited about.
COLLINS: We turn now to the Philippines where at least 240 people are dead in flooding from Typhoon Ketsana. The U.S. is one of several nations donating money for relief supplies. Floodwaters are subsiding in the capital of Manila, but many roads are impassible which, of course, means it is hard for rescue crews to get through.
Right now, the same typhoon that hit the Philippines has slammed into the coast of Vietnam. The city of Quy (ph) picked up an estimated 13 inches of rain in a 24-hour period there. About 200,000 people were evacuated from lowlying areas to community centers and schools on higher ground.
Rob Marciano standing by in the Severe Weather Center to take a closer look at this typhoon. Obviously, hundreds of thousands of people affected by this.
MARCIANO: Yes, quite a storm, Heidi. It was a tropical storm in the Philippines and over the South China Sea exploded into the equivalent of a Category 2 hurricane. That's how it made landfall here on the coastline of Vietnam.
Right now, it's inland just past the Cambodian border now and continues to move toward the west. It's been downgraded to a tropical storm. Sixty-five-mile-an-hour winds. Probably less since that last advisory. The Joint Typhoon Warning Center says this is the last advisory they will give.
As far as what it will do next, it will die out. It's still going to have a lot of rainfall and that's going to be an issue for sure.
(WEATHER REPORT)
COLLINS: If my golf course wasn't flooded, I would be playing there today.
MARCIANO: Your fans eagerly await you.
(LAUGHTER)
COLLINS: Yeah, right. Okay, Rob. Thank you. Check in with you later on.
Meanwhile, the 2016 Chicago delegation arrives in Copenhagen, Denmark, this morning. The group hopes to win over the International Olympic Committee, the IOC, for the 2016 Olympic games. They left last night on the United Airlines 747 with the Chicago 2016 logo painted on the side. A dozen athletes, including gymnastics star Bart Connor -- that's not him -- and track runner Jackie Joyner-Kersee were on board.
(BEGIN VIDEO CLIP)
JACKIE JOYNER-KERSEE, OLYMPIC GOLD MEDAL WINNER: We're bringing our A-team.
(LAUGHTER)
BART CONNER, OLYMPIC GOLD MEDAL WINNER: It's in their heart and soul here. We just want to extend a hand of friendship to the world.
(END VIDEO CLIP)
COLLINS: The Chicago delegation will get more star power when President Barack Obama and the first lady join them this week. Chicago is a finalist along with Tokyo, Madrid and Rio de Janeiro.
All right. So, we always bring you funky pictures toward the end of the program here. Want to end on a nice or bizarre note. However you look at it.
MARCIANO: Don't try this at home. We probably shouldn't show this video because it just encourages people. This man...
COLLINS: It does?
MARCIANO: ... lost his shoe while climbing the bridge in Toledo, Ohio.
COLLINS: That's what you do -- is just climb the bridge when it is there.
MARCIANO: Obviously not wearing the correct equipment. Shirt would be nice. This move he probably saw in Cirque du Soleil and didn't pull it off quite as gracefully.
COLLINS: Wow.
MARCIANO: Do we know anything about this character and what happened?
COLLINS: We know obviously from the video that he nearly fell several times. Not sure what his intentions were or if he was sober. Rescuers did get him down safely. Again, no word on why he did it. OK.
MARCIANO: Looking sweet! We're glad you're safe and sound.
COLLINS: Absolutely. All right, Rob.
MARCIANO: Get off to the golf course.
COLLINS: Wish I could. When a tent becomes the only place you can call home until you can get back on your feet, why it's become the only way some families know how to survive.
(COMMERCIAL BREAK)
COLLINS: Hard to imagine unless it happens to you. People with nowhere to live finding safe havens in tent camps. Our all-platform journalist Patrick Oppman got to experience it firsthand. He went to Seattle, Washington, to meet families that are trying to survive.
(BEGIN VIDEOTAPE)
PATRICK OPPMANN, CNN ALL-PLATFORM JOURNALIST (voice-over): About 70 people live in this homeless camp. Residents say city shelters too often don't have enough room, and city streets are too dangerous.
(on camera): This camp has existed in various locations for over a year. The last time I came and spoke with residents here, they invited me to come and actually live here and experience homelessness through their eyes.
(voice-over): So, I'm going back to live in the camp for two days. Resident Terry Bailey shows me around.
TERRY BAILEY, RESIDENT OF HOMELESS CAMP: This is our common area out here.
OPPMANN: After losing a job driving trucks, bailey came with his wife and two sons to find work in Seattle. Life is far from easy, he says, but as good as it gets when you don't have a home.
BAILEY: We can live in a community of people that are in the same situation as we are and still sleep at night. That's the biggest thing I tell you is safety at night. You just don't know what the street has to offer.
OPPMANN (on camera): Many people living here say they prefer life in this camp to a shelter because they can come and go as they please. They can look for work during the day and know that the things are safe here, which makes finding a job much easier.
I'm finding the most difficult thing in this camp right now is setting up my tent, actually. This is not as easy as it looks.
(voice-over): The camp has rules. No drugs or alcohol. But its future is in doubt. Signs posted around the camp tell residents they're trespassing. The constant moves, residents say, make a hard life even more so.
GREGORY LEWIS, HOMELESS CAMP RESIDENT: When you get something established and set up, you don't want to find out 30 days to 90 days later that you have to move. That's what we have to deal with.
OPPMANN: People say they ended up here because of the bad economy and bad luck. Joshua and Amanda Stanton hope to get a roof over their heads before their first baby is born.
AMANDA STANTON, HOMELESS CAMP RESIDENT: I'm five-and-a-half months. I'm due in January. I've got moments that I'm scared because I don't know what's going to happen tomorrow. I don't know if something will happen...
OPPMANN: At dark residents go back to their tents for the night.
(on camera): So, everyone in the camp is in bed. I'm in my tent. You can hear trains going by, cars going by. So, I just don't think I'll sleep that well tonight.
(voice-over): At dawn, the camp stirs. I prepare to leave. But it's been just a taste of what the residents face every day.
BAILEY: You know in the back of your mind you have a home to go to when you leave here. When I walk out that gate, this is the only place I have to come back to. And it makes a serious change in how you feel.
OPPMANN: As I go, I'm already thinking about the hot shower, real bed, and decent cup of coffee waiting for me. For the people here, there are none of those luxuries. Only another day of hoping for something better.
(END VIDEOTAPE)
COLLINS: Journalist Patrick Otman (ph) this morning from Seattle.
I'm Heidi Collins.
CNN NEWSROOM continues now with Tony Harris.
