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Stocks Fall; Argument Against Obamacare; Shutdown's Impact; Shutdown Breakdown; Stocks Drop 100 Plus at Open; Spoiler Alert; Peyton & Bronco's Record-Setting Day

Aired September 30, 2013 - 09:30   ET

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

ZAIN ASHER, CNN CORRESPONDENT: Friday's jobs report is going to come out. That, of course, has traders scratching their heads.

And lastly, you know, for investors who are worried about their 401(k)s, the bottom line is, sit tight, stocks will almost certainly rebound when all this blows over. And this might actually be a buying opportunity for people who have been waiting on the sidelines.

Carol.

CAROL COSTELLO, CNN ANCHOR: That's looking at the glass half full.

I will say, if the stock market really tanks today, that might put some pressure on lawmakers to come to some sort of agreement.

ASHER: Yes, absolutely. And, you know, I do also want to mention that the S&P 500, if you look at previous government shutdowns, the S&P 500 fell about, you know, 3.7 percent during the last shutdown from '95 to '96 and then it rebounded, you know, higher by about 10 percent the month following. So, you know, it's going to be interesting to see, but this is a little bit different because the market has so much to digest right now. It's got the shutdown. It's got the debt ceiling. It's got third quarter earnings as well. It's got tapering as well. So - and the jobs report too. So this is going to be interesting to watch, Carol.

COSTELLO: Oh, it's already interesting to watch. It's - I mean the bell rang, what, a minute and a half ago and we're already down 148 points. So, it's going to be an ugly day.

Zain Asher, we'll get back to you. Thank you.

Despite what's happening on Wall Street, many conservative Republicans are sticking to their guns insisting that tying government spending to Obamacare is the only move they could make to save the country's economy. CNN's Erin McPike has more for you.

(BEGIN VIDEOTAPE)

ERIN MCPIKE, CNN CORRESPONDENT (voice-over): After a stint as a staffer at the Bush White House and on Capitol Hill, Tim Griffin ran for Congress in 2010, promising he'd end Obamacare.

MCPIKE (on camera): As a political guy, are you worried about how House Republicans are going to look to the public in a month?

REP. TIM GRIFFIN (R), ARKANSAS: Well, the president has a bully pulpit certainly and he's going to do everything he can to make us look bad.

MCPIKE (voice-over): Like many of his House GOP colleagues, he's insisting on tying funding the government to defunding Obamacare.

MCPIKE (on camera): Why the brinksmanship and why the insistence on health care (ph)?

GRIFFIN: Well, I will say that, in a lot of our districts, the voices are quite strong in favor of that. You know, some districts stronger than others, but there is a loud cry out there on Obamacare to do whatever we can do to delay it, to defund it, to whatever it.

MCPIKE (voice-over): Especially in the Little Rock district he represents back in Arkansas. But is it realistic?

GRIFFIN: It's a false choice to say it's Obamacare or nothing. It's Obamacare or the old way.

MCPIKE (on camera): Well, what about - what about this.

GRIFFIN: There are 100 different ways in between.

MCPIKE: Is - is there a way to keep Obamacare and amend it greatly to your liking?

GRIFFIN: No, because the entire structure, the entire structure is built on Washington making central decisions in an industrial factory age type mentality, and telling everybody out in the states, thousands of miles away, this is the way it has to work.

MCPIKE (voice-over): He admits the stakes are high.

GRIFFIN: I don't want the government to shut down. I don't think it's good policy. I don't think it's good politics.

MCPIKE: Erin McPike, CNN, Capitol Hill.

(END VIDEOTAPE)

COSTELLO: A government shutdown would impact many first time home buyers, too. Loans guaranteed by the FHA, the Veterans Administration and the Department of Agriculture would not be processed. Rene Marsh is in Washington with that side of the story.

Good morning.

RENE MARSH, CNN CORRESPONDENT: Good morning, Carol.

You know, first time home buyers, low and moderate income borrowers, will feel it if the shutdown draws out. Now, it will take longer for the Federal Housing Authority to endorse single family loans and the agency will not approve or underwrite any new loans. So what's the overall impact for the housing market? Well the agency says if the shutdown is brief, it will not be significant. But if the shutdown lasts, potential homeowner, home sellers and the entire housing market will be impacted. We could also see a decline in home sales during an extended shutdown period. Of course that would mean the reversal of an upward trend that we have seen so far in the housing market.

Carol.

COSTELLO: Yes, and a lot of other things would be affected, too, like - well, let's start with food safety for example.

MARSH: That's right. When it comes to food safety, we're talking about the USDA. We're also talking about the FDA. So when it comes to the USDA, they will continue meat inspections, but the Food and Drug Administration will not be able to support the majority of its food safety nutrition and cosmetics activities. It will have to stop routine inspections, but they still will continue to issue high-risk recalls.

Carol.

COSTELLO: What about the Centers for Disease Control?

MARSH: Well, the CDC, they say that they will be limited in their efforts as well, although be limited in their efforts to investigate disease outbreaks, like the flu. If the shutdown doesn't last very long, this won't have an impact on you and I. But if it does last for a long time, the agency will find itself in a position where they will not be able to track things like the flu. And as we all know, flu season is right around the corner.

Carol.

COSTELLO: Yes, we do. Rene Marsh reporting live from Washington.

Still to come in the NEWSROOM, will our military still get paid if the government shuts down? Well, sort of. Come mid-October, they'll just get a big fat IOU from Uncle Sam. Seriously. Details after this.

But first, what you have to say about the government shutdown.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: What's your message to Washington?

UNIDENTIFIED MALE: Behave. Behave. You know, you guys are highly intelligent, and it seems like that the more intelligent we get, the more we can't fix problems.

UNIDENTIFIED MALE: Stop being childish.

UNIDENTIFIED FEMALE: I think that the government shutting down is a mass of confusion and they've been talking about that off and on for the past several years and I think some people are just out of their depth and they don't -- they're operating on pure adrenalin. They don't really know what to do, they're just telling us something to keep us quiet.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: Here's something to keep in mind if the government shuts down in less than 15 hours. All, quote, "essential" people, like Congress, will still get their paychecks. Our military, on the other hand, our soldiers, will be paid in IOUs. Seriously. That is upsetting many people, including those near Ft. Campbell, Kentucky.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: There's going to be bills that are going to be due. And those places like -- you can't just tell the electric department, hey, you know, I got an IOU.

UNIDENTIFIED MALE: If ran my house the way the government is running the country, I would be bankrupt.

UNIDENTIFIED MALE: You've made your point. Let's get on with the business of running the country and pass the budget, pass the debt limits, and let us keep improving the economy. Don't play games anymore, please.

(END VIDEO CLIP)

COSTELLO: Soldier will start receiving those IOUs come mid-October.

Many of you want to see Congress get its act together and pass a bill to keep the government running. CNN chief national correspondent John King breaks down the latest CNN/ORC poll numbers on the gridlock in Washington.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: First and foremost, there is no question the American people think this is a bad idea to have that shutdown clock run to zero. Look, seven in 10 Americans, 68 percent, say it would be a bad thing to shut the government down for a few days. What about the prospect of a shutdown that ran on longer, for a few weeks? Hard to get eight in 10 Americans to agree on any political question, but they agree on this, a bad thing to shut the government down for more than a few weeks. However, we should note, these are national numbers.

Remember that old adage, all politics are local. Forty to 50 of the most conservative House members, four or five of the most conservative senators, are pushing this strategy through the Republican Party. They think they're on safe ground back home. Fifty-six percent of Tea Party supporters say it's a good thing to shut down the government. That is why some of those conservatives are not afraid to go to the brink right here.

However, if we come back to the national numbers, if this happens, who would the American people think is most responsible? Well, 36 percent say the president would be responsible, but nearly half say Republicans would be responsible and 13 percent say both. So the president on safer ground at the moment on the question of responsibility.

This is interesting, though, again, how you vote impacts what you think of this political brinksmanship. If you're a Democrat, you overwhelmingly blame Republicans in Congress. If you're a Republican, you overwhelmingly blame the president. But independent voters evenly divided on this question of who is responsible. That tells you the president has a sales case to make to the middle of the electorate, if you will, as this debate goes on.

Now, some Republicans say we're on safe ground here because the American people don't like the president's health care law. And it's true, our new poll shows 57 percent, nearly six in 10 Americans oppose Obamacare. However, this is a critical distinction. Break that number down. Eleven percent of those who opposed the president's health care law oppose it because they think it didn't go far enough. They wanted a single payer system or they wanted more government involvement. So that is a critical point as Republicans say, hey, the American people oppose this law. Some oppose it not for the reasons Republicans cite.

What's the fundamental question of this debate right now as that clock ticks down? What's most important for the Congress to do, avoid a government shutdown or block parts of the health care law? Six in 10 Americans say it's more important to avoid the government shutdown. That number speaks for itself.

COSTELLO: Here's what's all new in the next hour of NEWSROOM.

An ex-NFL player's home trashed by partying teens. You remember that. Instead of going after them, he went into dad mode.

(BEGIN VIDEO CLIP)

BRIAN HOLLOWAY, FORMER NFL PLAYER: I don't want to be haunted looking over a casket 10 years from now of 30 of those kids who are dead.

(END VIDEO CLIP)

COSTELLO: But a local radio host says it isn't enough. She has her own message for the kids and especially their parents.

Plus, stunning new details on the NSA surveillance program.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Americans assume a right to a certain kind of privacy that usually starts at the door to their home.

(END VIDEO CLIP)

COSTELLO: Just what the government knows about who you interact with. That's all new in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK) COSTELLO: All right. Welcome back.

We're keeping our eye on the stock market today. So far stocks down, oh, show me - show me the number, about 139 points. Let's go to New York and check in with Christine Romans.

Actually, we thought it would be worse.

CHRISTINE ROMANS, CNN BUSINESS ANCHOR: Yes and it's off the lows of the morning but look, clearly Carol, investors do not like what they're seeing from Washington. You've seen the polling about the spoiled children that Washington politicians are being and how that's holding, you know, the business of the American government at risk here. Investors do not like to see that at all.

Carol one thing I'm noticing here is even gold is down a little bit which is sort of interesting because sometimes you see this rush into the safe haven of gold. You're not seeing that so much today and again this 15,100 level seems to be holding support for the Dow Jones Industrial Average. But watch this space. Because we have a rough week ahead of us here if they can't get this resolved today.

Mark Zandi from Moody's says you know he agrees that with all these estimates that you could see $200 million of economic activity vanish every day and it will get magnified as the shutdown goes on. Carol, if this goes on for you know three or four weeks you could cut economic growth in half, that's not good for anybody.

COSTELLO: No it's not Christine Romans I know you'll be keeping an eye on things for us we appreciate it.

ROMANS: Yes.

COSTELLO: We're going to have more on the government shutdown in just a minute but first checking other "Top Stories" this morning at 47 minutes past the hour. How successful is BP at stopping the Gulf Oil spill and how much oil was released? Those questions are the center of the second phase of a trial beginning today against BP and its partners. Fines could reach into the billions of dollars. Testimony is expected to last a month but the judge's ruling possibly happening next year.

Two automakers are recalling more than a quarter million vehicles. Mazda say doors in some Mazda 6 sedans could open while the car is in motion and Nissan says some of its Infinity M35 and M45 models could stall when the car comes to a stop or is idling. No injuries have been reported from either problem.

It's over. Millions of "Breaking Bad" fans heartbroken this morning over last night's dramatic series finale but the series can live on but only if you got some cash. Hundreds of props from the hit show are going up for auction. You can now own memorable pieces of the show like Walter White's lab gear to his famous 2004 Pontiac Aztec. Sorry it's not in driving condition but oh well even this iconic undies will be up for an auction. Oh Lord. Seriously the auction ends next Monday on Screenbid.com. All right spoiler alert. We're about to reveal the ending to last night's big "Breaking Bad" finale. My producer Pamy -- my producer of this program is probably running out of the control room right now with her ears covered because she hasn't watched it yet. So I'm giving you time to do the same. Ok. CNN entertainment correspondent Nischelle Turner has a look back at the bitter sweet conclusion.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It should make one hell of a story.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Indeed it did. "Breaking Bad" cooked up quite an ending. The chemistry teacher turned meth maker was busy in the finale, as always Walter White took care of his family.

BRYAN CRANSTON, ACTOR: I earned it and you're going to give it to my children.

TURNER: And took care of his enemies. Even White's ex-partner Jesse got to settle a score. In the final moments, White, the man also known as Heisenberg was shot and died, fittingly in a meth lab. Critics loved the ending and it seems many fans did, too, from Facebook to Twitter, everyone was talking.

CRANSTON: I liked it.

TURNER: Famous folks liked it, too. Jimmy Fallon called the finale, tight, tight, tight. Ellen DeGeneres tweeted no more murderous drug dealers and horrifying criminals, I miss it already. Zach Brett joked "I can't believe Walt was a woman the whole time, awesome ending." Hard core fans celebrated in style at finale watching parties across the country.

Show creator Vince Gillian and the cast even got into the spirit at a charity screening and Q&A in Hollywood.

VINCE GILLIGAN, CREATOR, "BREAKING BAD": We knew we needed to dot all the I's and cross all the T's and we needed resolution.

TURNER: Resolution is something that's often alluded in TV finale. The "Lost" finale left a lot of questions unanswered and we still don't know what to make of "The Soprano's" cut to black.

But when "Mash" wrapped up 30 years ago, there wasn't a dry eye in the homes of more than one hundred million view viewers. "Breaking Bad" was seen by far less but leaves the stage burning white hot in the public's imagination, with high ratings and the best drama Emmy win.

CRANSTON: It's over. And I needed a proper good-bye.

TURNER: Mr. White, I'd say you got one.

Nischelle Turner, CNN, New York.

(END VIDEO CLIP) COSTELLO: Awesome.

Still to come in the NEWSROOM, Peyton Manning and the Broncos roll on and boy have they set records. It's just unbelievable. The "Bleacher Report" is next.

(COMMERCIAL BREAK)

COSTELLO: You know every Monday, it seems that we talk about how awesome Peyton Manning is and we've got to talk about it again this morning because he is just awesome, Andy Scholes.

ANDY SCHOLES, BLEACHER REPORT: Yes Carol what we can say about Peyton Manning and the Broncos they are just unstoppable right now. Is anybody going to be able to shut them down? It doesn't look like it. You know, Manning threw four more touchdowns in yesterday's blowout win over the Eagles. He now has 16 touchdowns. That's the most ever by a quarterback in the first month of the season.

Now Denver, ooh, they put up 52 points in yesterday's win. That is a franchise record. Up next are the 4-0 Broncos on a trip to the Dallas to take on the Cowboys.

All right the Patriots are trying to keep pace with the Broncos. They were in Atlanta taking on the Falcons last night, and while Tom Brady and the company they are not putting up record-setting numbers, they are continuing to just find ways to get it done. They held off a late Falcons' rally on fourth down under a minute to go Aqib Talib bats down this Matt Ryan pass, Patriots get the win, they improve to 4-0. The Falcons they are a big disappointment so far they are 1-3.

All right. Lane Kiffin is out as head coach at USC and boy, he did not see this one coming. The Trojans were blown out by Arizona State Saturday night. According to reports USC athletic director Pat Haden decided to fire Kiffin during the third quarter. Now he didn't waste much time relaying the message. Haden pulled Kiffin off of the team bus once they arrived at L.A.X. and fired him on the spot. Poor Kiffin, Carol he didn't even get to ride the bus back to campus.

COSTELLO: Things like that happens in the world of TV, right?

SCHOLES: All right. Number three in the lineup section of the BleacherReport.com. The last day of regular season of Major League Baseball, everybody talking about the playoff possibilities, but not the Miami Marlin, the ball team. That was until Henderson Alvarez with nine innings of no-hit baseball. The game was still tied at zero in the ninth. Alvarez needed some luck to het his no-hitter and he got it.

Bases loaded and a pass ball gives the Marlins the winning run. Alvarez gets his first career no-hitter. It was the third one of the major league season.

COSTELLO: Oh, the Tigers were tired.

SCHOLES: Yes, just right there just resting getting ready for the post-season. All right. 162 games were not enough to decide the playoff teams in the American League. The Rays, they're going to play at the Rangers tonight on TBS in the play-in game. First is pitch at 8:07 Eastern. And Carol, this is the play-in game to get into the wild-card-play-in game, to get into a the post-season series, right? All these one-game playoffs make for some exciting baseball.

COSTELLO: Yes, I will be watching tonight. It's cool.

SCHOLES: I will as well.

COSTELLO: Andy thanks so much.

Next hour of CNN NEWSROOM after a break.

(COMMERCIAL BREAK)

COSTELLO: Good morning. I'm Carol Costello. Thanks so much for joining me.

Congress on the edge and on notice. Let's go live to the House as it returns to session this morning. Lawmakers now have less than 14 hours to avoid a government showdown and as hope dwindles, anger builds. According to a new CNN/ORC poll, nearly seven in ten Americans believe it is Republican lawmakers who are acting like spoiled children in the stalemate. Nearly six in ten blame the Democrats. And almost half says it is President Obama's fault. A general disgust with Washington seems to cross party lines.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I just wish that people that we elected into office would do their jobs. It seems like it's a lot of grandstanding for the people they are trying to win votes from rather than doing what is best for the country.

UNIDENTIFIED FEMALE: I think it is another scheme to get us citizens very worried and try to get us on board with an agenda that we don't want.