Return to Transcripts main page

Anderson Cooper 360 Degrees

Money Meltdown; Rising Rage on the Campaign Trail; Ten Most Wanted Culprits of the Collapse; The Palin Sisterhood; CNN Heroes

Aired October 09, 2008 - 23:00   ET


ANDERSON COOPER, CNN ANCHOR: Tonight we begin with "Breaking News" and it just keeps coming, another blow to the markets, a new shock to the system and boy, what a shock. More evidence that whatever this is that we are going through, it is not through with us yet.
As we speak, Asian markets are sliding and this is what today looked like on Wall Street.


COOPER: Time lapse video, late in the day, the DOW industrials plunging 679 points, nearly 40 percent lower than it was just a year ago to this day, when it hit an all time high; another $900 billion in value gone. General Motors, GM closing below $5 a share and that is the lowest since guess when -- 1950.

President Bush speaking today, expected to speak again tomorrow, scheduled to meet with world finance ministers Saturday. In a moment we'll show you what Obama and McCain are saying but is anyone really listening? Certainly not the markets, not yet, it seems.

Joining with us the "Breaking News" is Ali Velshi. Ali there was this massive sell-off today, DOW closing at 8,579; have we hit the bottom yet?

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: No, probably not, Anderson. The good news, we might be there.

Let me show how today looked. This is an unprecedented situation. We started out this morning, it was going down. This is actually -- in fact we're looking at a year on the DOW.

Take a look at this. It was 14,000. All right, let's look at today then. We were down below the even line, we've kept on going down, and then it's a pattern we've seen before, Anderson, the last hour of trading, and look at that it goes down to 8,579.

Let's switch back if we can to the picture of the last year. You know what, these stocks are down and your portfolio might look a little like this. Since a year ago the DOW started the -- a year ago today was the highest the DOW had ever been, it was above 14,000. That loss right now, back to more than 35 percent, 39 percent now is where we are. So if you look at your 401(k) and you're down 39 percent, it looks like the rest of the market. Now, Asian markets, as you said, continue their sell-off. And there are a lot of people who say that, that level from maybe 8,000 to 8,500 might be the point that we're looking at the bottom.

There are some people who say its lower. But in the end, there are folks who are saying the companies that comprise these stock markets have an intrinsic value and, at this point, they're starting to look like they're on sale -- Anderson.

COOPER: Wow, I guess the question is where is that intrinsic value? White House confirmed today, the Treasury Department is looking to buying equity stakes in some of the nation's banks. What does that mean and how does that works?

VELSHI: All right, what this means is you know we've been seeing the government give loans to companies we saw that at AIG; another loan to AIG last night. And here is the difference.

This is part of the $700 billion bailout program. What it would involve is the federal government giving money to the nation's banks, U.S. banks, but it wouldn't be a loan. What they get in exchange for that money, is they would get stock in those banks.

Why does that matter? Because if the money that goes to the banks actually helps them stay afloat and those banks become profitable again, because historically, banking is a very profitable business, well that means that the stock could go up in value and the American taxpayer through the U.S. government could actually make money on this infusion of cash into the nation's banks.

We're probably some weeks away from it actually happening. Treasury has just confirmed that they are looking at it as one of the options, Anderson.

COOPER: All right Ali, stick with us as you know there's one piece of good news. A report demand for oil is down and so is the price of gasoline. That is pretty much it. There have been new layoffs in the headlines.

One market watcher today, said she was seeing signs of the market bottoming and even she added it was going to be ugly out there for a long time to come. So what can any of us do?

Let's bring in Ali over from the wall and bring in personal finance expert and best selling author Lynnette Khalfani-Cox.

Lynnette should people change their spending habits, they're savings habits at this point right now?

LYNNETTE KHALFANI-COX, THE MONEY COACH: Your spending and your savings habits, absolutely. This is no time to be out there splurging, taking extra family vacations, buying things, driving yourself into debt. Your investment strategy, if you're in it for the long haul, that's what I don't encourage people to change solely based on the volatility that we've seen. COOPER: Because if you do, if you pull your money out long term, you're going to be hurting yourself, if you're in it for the long term?

KHALFANI-COX: Absolutely. If you pull out right now, you're just guaranteeing your losses; you're locking in what are right now, paper losses. It's not a loss until you actually sell it. And I know it doesn't look good on paper for people to see those statements and to see the 35 to 40 percent declines that a lot of people are seeing.

But if you're 30, 40 years old, the truth of the matter is you really can ride some of these out. If you're investing for retirement, you've got 20 plus years to save now.

COOPER: Because Ali, right now, those losses are on paper and if you sell right now, you're locking in those losses.

VELSHI: They're real losses and you have to make up all that time. History has shown us these markets go down they start to come up before the end of a recession and that's important for people to understand; it doesn't mean we're coming of something. We know the rest of the economy is in bad shape but we do see market start to emerge first.

It's a very, very hard thing to stomach right now. But we think that there is a bottom to these markets. And if you're not there to take advantage of it, you'll have locked in your losses and you're not going to get the gains on the way up.

COOPER: Still sounds scary everyday looking at your 401(k).


KHALFANI-COX: And obviously, none of us has a crystal ball. But what we do know from past trends is that when the turn around does come, it's actually a very brief period of time. When you look at the number of days where the stock market has gone on a huge upswing --

COOPER: Right.

KHALFANI-COX: -- after a downturn, it's something like 10 or 20 days in the course of a year. And nobody knows.

COOPER: What scares me, though, is when you hear folks are saying like this is a 50 or 100 a year event, so all these other models, I mean I'm not even sure if they really apply.

But let's get some of these questions from our viewers on the blog.

Chris asked, "How can financially responsible people benefit from this bailout (rescue) package?" In a year today the DOW is down 35 percent, that's sounds really a grim, but is there a chance to actually make money?

KHALFANI-COX: I think there is an opportunity to make money. One is if you have great credit and if you're in a strong cash position, you might be able to pick up a foreclosure or two as an investment property.

Also, you might do some peer-to-peer lending. We've heard of a number of these lending sites like Prosper and Virgin Money, et cetera, loaning money to individuals or small businesses. You're able to charge them of course a higher interest rate than they -- if they weren't able to get that money from a loan.

So if you're in a strong position and yes, you might be well- positioned. And not to mention if you're going to be a patient and prudent investor you can go bargain hunting right now. And you can get some value oriented stock on the cheap.

COOPER: Ali, this is a question from Martina on the "360" blog. "If the market is going down and people are losing money and losing homes and losing jobs, where is the money going?" What's the answer?

VELSHI: Well, this market -- it's a deal, it's kind of like if you bought something for a -- if you bought a watch for 50 bucks and you sold it on EBay for 20 bucks, where did the money go? That money went to the first person you gave it to, the watch seller and the manufacturer.

The same thing with stocks, that money went to whoever you gave it to. And unless you can make more of it, it has disappeared. That the money was sold, you bought a stock, that money was sold.

And now, you have to sell it for more money than you bought it for. So it's not disappearing. And that's why, why Lynnette says it's a paper loss until you lock it in.

COOPER: Right, we're going to have to leave it there. Lynnette Khalfani-Cox, thanks so much. Good to have you on the program. We'd love to have you on again and Ali Velshi as well.

What do you think of the crisis? I'm blogging throughout the hour; join the conversation on Check out Erica Hill's live web cast also during the break. I'm about to logon myself.

Up next, new polling numbers on the race and new heat from both of the candidates. And in John McCain's case a lot of anger from his supporters. Take a look.


UNIDENTIFIED MALE: I'm mad, I'm really mad. And what's going to surprise you, it's not the economy. It's the socialists taking over our country.


COOPER: Who's to blame for the financial meltdown tonight? We are naming names. And tonight, we add a second name to our ten most wanted list. "The Ten Most Wanted Culprits of the Collapse," find out who we're adding tonight, coming up. (COMMERCIAL BREAK)


GOV. SARAH PALIN, (R) VICE PRESIDENTIAL CANDIDATE: I can't pick a fight with those who buy ink by the barrelful. So you guys are going to have to start asking the questions even more adamantly also and holding people accountable when they're in a position also to get those answers from the opponent.


COOPER: Sarah Palin today calling on supporters to keep the media or keep the heat on the media to do stories on Bill Ayers, the violent '60s radical and Obama acquaintance.

Senator Obama downplays the relationship of course with Ayers and who is basically unrepentant for his actions in the '60s and is now a college professor. Ayers has become the star of campaigns stops used by Sarah Palin and John McCain to try to raise doubts about Barack Obama.

In a moment, we'll have new comments about what Barack Obama has to say about Ayers.

First, a big reason the McCain forces may be focusing on Obama's character. The polls, a six-point Obama lead in our average of selected national surveys; state by state, the Obama advantage also growing. "On the Trail," McCain supporters are certainly feeling it.

Ed Henry is "On the Trail" tonight.


ED HENRY, CNN CORRESPONDENT (voice over): It's an emotion now on display at more and more McCain-Palin events; rage.

UNIDENTIFIED MALE: I'm mad. I'm really mad. And what's going to surprise you, it's not the economy. It's the socialists taking over our country.

HENRY: Republicans, this time in Wisconsin, venting frustration over Barack Obama's rise in the polls.

UNIDENTIFIED MALE: When you have an Obama, Pelosi and the rest of the hooligans up there, going to run this country, we've got to have our head examined. It's time that you two are representing us and we are mad. So go get them.

HENRY: Almost a cry for help. The party faithful amazed McCain could possibly be losing.

UNIDENTIFIED MALE: And we're all wondering why that Obama is where he's at. How he got here. I mean everybody in this room is stunned that we're in this position.

HENRY: And enraged the media is allegedly giving Obama a pass on his ties to former 1960s radical, William Ayers.

UNIDENTIFIED MALE: We're all a product of our association. Is there not a way to get around this media and line up?

HENRY: But some anger is directed at McCain himself.

UNIDENTIFIED MALE: We have the good Reverend Wright, we have Pfleger, but we have all of these shady characters that have surrounded him. We have corruption here in Wisconsin and voted across the nation. I am begging you, sir, I am begging you, take it to him.

HENRY: McCain seems torn. On one hand, he is going negative on the Ayers controversy.

SEN. JOHN MCCAIN, (R) PRESIDENTIAL NOMINEE: The point is Senator Obama said he was just a guy in the neighborhood. We know that's not true. We need to know the full extent of the relationship because of whether Senator Obama is telling the truth to the American people or not.

HENRY: But he ducked the demand that he bring up the Reverend Wright flap; instead, veering back to the economy.

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


HENRY: It's interesting John McCain has not been talking about Reverend Wright because several months ago, he suggested he did not think that was fair game. However, the McCains have also said months ago that they didn't think they wanted their son, Jimmy, who is a marine serving in Iraq, they didn't think he should be dragged into the campaign.

But as you know, yesterday, Cindy McCain did use him for political purposes, so as his campaign unfolds in the final days, who knows what will be fair game in the end -- Anderson.

COOPER: Well, as any campaign gets more and more desperate or more and more with their back against the wall, there's no telling what they're willing to do.

They've talked about not using Ayers. Governor Palin certainly, brought it up with Bill Kristol. And sort of introduced it I guess without introducing it. Are there a lot of people in the campaign camp who want McCain himself to go even more negative?

HENRY: There are some. And they're basically saying, look, from now until Election Day, the only way John McCain is going to win is by going negative and essentially laying out why he thinks Barack Obama is risky and why he think he's has poor judgment and has not leveled with the American people.

But on the other hand, there are many others, inside and outside the McCain camp who're saying, look, you're going to flip this around to the point that you're going anger Independent-undecided voters by going nuclear basically and the blow back is going to be too much.

And that's why when you see John McCain, he's sort of going through this on one hand and on the other, he doesn't quite know which button to push and he's getting pressure from all sides -- Anderson.

COOPER: Well, it is pretty stunning that someone on the McCain campaign on a conference call with reporters, I think it was, said, essentially and correct me the exact verbiage, that if we just keep talking about the economy, we're going to lose, that they had to pivot off the economy. Was that the message?

HENRY: The Republican strategists quoted in the "Washington Post" and elsewhere saying, look, if we have to continue to talk about this financial crisis, it's over. Barack Obama is going to win.

And that's obviously something the Democrats have pounce on. Because after those comments were made, and now, we're seeing all of these various attacks on different issues. It certainly suggests the McCain camp wants to change the subject.

And I think it's quite interesting you had Sarah Palin today saying, look, you've got to demand that the media ask these tough questions of Barack Obama and that he give answers. This is Sarah Palin who's been very selective as you know about which interview she'll give and which tough questions she'll answer -- Anderson.

COOPER: All right Ed Henry thanks and also for our viewers we're saying and we should be dealing this stuff on Bill Ayers. We have -- Drew Griffin did a very tough piece, looking at the connections, you can look it up on the web.

More about Sarah Palin tonight and how she's moving voters toward and away from John McCain. For her supporters, we're going to look at what is the core of her appeal. Just ahead, we'll meet a group of women who said the Alaskan Governor reaches them like no other candidate ever before.

And next, how Barack Obama is handling the Ayers barrage, plus his new challenge to John McCain when "360" continues.


COOPER: We're updating our "Breaking News"; Asian markets continuing what Wall Street began today, Hong Kong's Hang Seng index down eight percent, Japan's Nikkei, down nearly 10.

Back now to politics and Barack Obama today "On the Trail."

As we just saw before the break, there's a lot of anger directed toward Obama at McCain and Palin rallies. The name Bill Ayers comes up frequently on the stump and during speeches and interviews with McCain and Palin, but it did not come up at Tuesday's debate. That's something Charlie Gibson of ABC News asked Barack Obama about on World News on ABC, take a look.

(BEGIN VIDEO CLIP) SEN. BARACK OBAMA, (D) PRESIDENTIAL NOMINEE: I am surprised that we've been seeing some pretty over-the-top attacks coming out of the McCain campaign over the last several days, that he wasn't willing to say to my face.


COOPER: More now on Obama's counterattack from Candy Crowley "On the Trail."


CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: It is a continuing theme in the Obama campaign as carefully worded as it is direct. John McCain isn't stable enough to be president.

OBAMA: Here is my point, Cincinnati. You can't afford that kind of erratic, uncertain leadership in these uncertain times. We need a steady hand in the White House. We need a president we can trust in times of crisis.

CROWLEY: Using words like "erratic, risky, lurching," Barack Obama is aiming directly at one of John McCain's enduring strengths, higher scores than Obama in the experience category. Thursday, he ripped McCain for his evolving plan to help homeowners facing foreclosure.

OBAMA: In the course of 12 hours, he's ended up with a plan that punishes tax payers, rewards banks and won't solve our housing crisis.

But this is the kind of erratic behavior we've been seeing out of Senator McCain.

CROWLEY: While Obama pounded McCain through Ohio, Joe Biden worked his way through other battleground territory, campaigning in the swing state of Missouri with the same vocabulary.

SEN. JOE BIDEN, (D) VICE PRESIDENTIAL CANDIDATE: You're seeing John McCain campaign being so erratic, an angry man, a man who is lurching from one position to another -- to lurch from one place to another. Ladies and gentlemen, this is not a steady hand.

CROWLEY: This is a cautious campaign now, following the first rule of running ahead, limit the opportunities to stumble. And with T minus 26 days, Obama is likely to remain in safe mode and he has the money to buy it.

The campaign announced today, it is negotiating with the broadcast networks to buy a half hour of primetime at the end of this month, less than a week before the election. It's a multi-million dollar endeavor but the airways will be controlled by Barack Obama.


COOPER: Candy, you're saying it's a cautious campaign; safety at this point because they're out in front. Behind the scenes, are there folks around Obama who are very concerned about this Bill Ayers stuff that the McCain and Palin campaign is pushing?

CROWLEY: Not so far, simply because they don't see any evidence that it is getting any traction at all. They believe that they have the ready made answer, which is, you know what, John McCain is talking about this because he doesn't want to talk about the issues, because he's wrong on the issue, he's like George Bush.

So they have been able to sort of brush it aside with that. And as you see, sort of going after him, and saying and you see when he goes on the issues, he's erratic. He's this, he's that.

So they don't see anything in the polls. So they're not particularly worried about that.

But I have to tell you at this point in the campaign, you really sort of worry about everything. But what they want to do here in the Obama campaign is steady as she goes. There are teleprompters at every speech now that he gives at every rally because there's less of a chance that there'll be a mistake. There are a fewer interactions with the press.

This is pretty standard stuff for the final month of a campaign, when what you really want to do is go out and rally the voters and get them to come out and vote for you. You don't want to make new policy people can shoot at.

So very cautious here, and basically not all that worried at least about the William Ayers thing.

COOPER: All right, Candy Crowley thanks "On the Trail" tonight.

It is clearly nasty out there.

Now a short time ago, tonight, John McCain made some new comments about Bill Ayers and we'll show you what he is saying now.

And have a "Strategy Session" with David Gergen and Ed Rollins and Paul Begala, the best political team on television.

Also to some Sarah Palin isn't just another VP candidate, she is a political rock star. So what is it about Palin that has connected with some women? We'll talk about that.

And find out who's to blame for the financial meltdown. We add another name to our "Ten Most Wanted List: The Culprits of the Collapse."



UNIDENTIFIED MALE: When you have an Obama, Pelosi and the rest of the hooligans up there who's going to run this country, we've got to have our head examined. It's time that you two are representing us and we are mad.

UNIDENTIFIED MALE: We have the good Reverend Wright. We have Pfleger. We have all of these shady characters that have surrounded him. We have corruption here in Wisconsin and voters across the nation.

I am begging you, sir, I am begging you, take it to him.


COOPER: A lot of passion and some anger at John McCain events.

Let's talk about what's happening "On the Trail" out there. CNN senior political analyst and former presidential adviser, David Gergen joins me as well as CNN's senior contributor and GOP strategist, Ed Rollins and Paul Begala, CNN political contributor and Democratic campaign guru.

Ed, let me start of with you. Do you believe this race is over for John McCain?

ED ROLLINS, GOP STRATEGIST: I do. I mean, I'm for McCain; I'm going to vote for McCain. But the momentum has gone all the other way. And equally as important, you can't break through with the economy being so overwhelming.

COOPER: So all this Bill Ayers stuff, even the bringing up Reverend Wright --

ROLLINS: No one cares about it anymore. If it was month ago or two months ago, people might have cared. Today, they don't care.

Barack has met the threshold where people think he's going to be a leader. He's tied McCain to the past and Bush and I think people clearly want to make a move. It's like Carter.

When David and I were involved with Reagan in 1980, people -- once Reagan met the threshold, people clearly wanted to get rid of Carter and they did in the landslide. This is going to turn into a landslide.

COOPER: So is the tone out there, David Gergen, appropriate, is it dangerous, what is it?

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: I think it's incendiary. And I don't fully agree with Ed that it's all over it now.

COOPER: You don't agree that it's over?

GERGEN: No I don't. I think there's still a race factor and I think that introduces the wildcard in the final analysis.

COOPER: That's unknown.

GERGEN: But what we do know is that it's been stable now for about two weeks, and that's very bad news for John McCain. Barack Obama has had not only -- he's had a sizable lead now, six, eight points now for two weeks and in some polls he's even up -- the Gallup tracking has it up to 11. That's the biggest lead we see in any of the polls.

So every day that goes by like today, when McCain does not break through I think is a bad day for McCain. And what I do -- what you do sense is that McCain is losing control over his own destiny. That he's no longer the man who seems to be in command, he's thrashing around looking for something that will take hold.

And it was just two days ago with his campaign after the debate his campaign team was saying he's not going to talk about Bill Ayers. You know he's put it off-limits we talked about this last night and here he is talking about him.

COOPER: And in fact tonight, he just talked to Charlie Gibson on "ABC News" about Bill Ayers. Let's listen to what he said, Paul.


MCCAIN: He launched his political career in his living room; in Mr. Ayers' living room. And I don't care about two washed up old terrorists that are unrepentant about trying to destroy America. But I do care, and Americans should care about his relationship with him and that whether he's being truthful and candid about it.


COOPER: Do you believe, Paul Begala, that John McCain really believes that? And do you think there's a value in him bringing this up?

PAUL BEGALA, DEMOCRATIC STRATEGIST: I don't know what he believes anymore. I do sense and Candy reported this some ambivalence on McCain's part about raising this and yet there he was with Charlie Gibson.

So yes, I think the problem McCain has is voters are going to process all the information they're given through these last 26 days through the fact that they know that McCain is behind. And so, it all looks political.

Campaigns that are the most adaptive are the ones that win. And I think McCain is adapting the wrong way. He's adapting to his base, the most extreme angriest elements of his party.

Look at Barack Obama, now we all knew that McCain would try to paint Obama as risky. I could have never predicted 26 days before the election; Obama could make the argument that it is McCain who is erratic and unsteady. And yet, I think this back and forth that David mentioned about Ayers helps. You know the other day McCain looked out at his crowd and addressed them as "my fellow prisoners."

That's odd. That's really odd. And he's a tired guy it's a long campaign, he's 72, I've cut him a break on that. But he does look erratic I think in the eyes of a lot of us.

COOPER: But Ed, I mean they're both throwing hand grenades as you said earlier --

ROLLINS: They both are. I man I've never seen a campaign -- they've done it in commercial before -- I've never seen two candidates basically be as insulting to each other.

ANDERSON COOPER, CNN ANCHOR: Barack Obama raising the questions about John McCain's erraticness?

ED ROLLINS, REPUBLICAN STRATEGIST: Absolutely, and the whole calling each other liars, and what have you.

The other fundamental question here is, how do you want to end your career, if John McCain ends his career? We're now starting to lose -- the potential is there to not only lose the Senate, but to lose the Senate leader, the Republican leader, to lose someone like Elizabeth Dole. We could lose 10 Senate seats. We could lose 25 House seats.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Wow. Do you really think 10? That's the biggest number I have heard.

ROLLINS: There's 12 of them in play. And I went through the list today. And it's -- it's -- the floor is dropping. And, so, all of a sudden, he needs to help his party. He's the leader of his party.

COOPER: So, how does he do that?

ROLLINS: Well, you do that by talking -- you have to go give an alternative on the economy. He has got to be prepared this week to go out and really have a good, strong -- talk about economic leadership, so that his party has a little bit of something to run on.

COOPER: But it's interesting. You see that crowd. And he says, look, but I also want to -- they talk about Ayers a little bit. He said, but I also want to give a positive message on the economy.

It didn't seem like the crowd wanted to hear that.

ROLLINS: You don't give them a choice. They're there to -- you don't want the crowd to get angry at this point in time.

And the truth of the matter, he -- if he brings this party down, I mean, forever, his legacy will be that they lost 10 or 12 seats, 25 seats in the House, and he will give Barack everything he needs to basically move an agenda.

COOPER: There's also the question of ruling after this and bringing the country together. It's going to be all the more harder to do that whoever wins with all this anger out there.

GERGEN: Yes. There is this -- I think one of the most striking things we've seen now in the last few days. We've seen it in the Palin rallies. We saw it at the McCain rally today. And we saw it to a considerable degree during the rescue package legislation.

There is this free floating sort of whipping around anger that could really lead to some violence. I think we're not far from that.

COOPER: Really?

GERGEN: I think it's so -- well, I really worry when we get people -- when you get the kind of rhetoric that you're getting at these rallies now. I think it's really imperative that the candidates try to calm people down. And that's why I've argued not only because of the question of the ugliness of it.

But I think McCain ought to get his campaign off the road and look at the -- and get the best economic minds in the country together and come back Monday, Tuesday, with a really serious speech. He's the one who ought to be buying TV time, talking to the country.

COOPER: We've got to end it there -- and very briefly, Paul Begala, do you believe it's over for John McCain at this time?

BEGALA: No, it's not over.

But I do want to be fair here. Both candidates are not being equally angry or equally negative or equally dirty. Obama has been a model of cool, calm. Sure, he's launched his attacks but nothing like the kind of really angry and hateful things that McCain is saying.

Nobody at Obama's rally is shouting "Kill him" as the "Washington Post" reported or hurling racial epithets at an African-American cameraman, as has been reported, or saying, "off with his head," as has been reported. So let's not pretend that this is equal amounts of rage and anger here.

COOPER: We're going to have to leave it there. Paul Begala, Ed Rollins, David Gergen, thank you. All good perspectives.

It could be a record turnout this November, but will there be a clear-cut winner? Already allegations of voter registration fraud are popping up around the country. So how's that happening?

We're investigating. We're "Keeping Them Honest" tonight.

And the ten most wanted, the "Culprits of the Collapse." We add a new name tonight. Find out who this person is and how much he has cost you. We are naming names; holding people accountable. Ahead on 360.


COOPER: Well, last night, we began naming the "Ten Most Wanted Culprits of the Collapse." Every night, we're going to be adding another name to the list.

Right now, a bunch of politicians are telling us that now is not the time to point fingers of blame over this financial fiasco. We think now is the time. You should know about these people. You should know their names. You should know their faces, and you should know what they've done and how much they are costing you.

Last night, Joe Cassano from AIG became one of our ten most wanted. He and other AIG executives came up with financial instruments that avoided regulation and precipitated this collapse. Even after getting bailed out, the company spent hundreds of thousands on fancy hotel and spa treatments. Unbelievable.

And tonight, the second edition to our "Ten Most Wanted List." And if you look at the breaking news banner on our screen, you can see why. He is Richard Fuld, the former CEO of Lehman Brothers.

The report from 360's Joe Johns.


JOE JOHNS, CNN CORRESPONDENT (voice-over): Lehman Brothers' former CEO, Richard Fuld, is living pretty, a multi-million-dollar estate in Florida, a $21-million apartment on Park Avenue, another lavish estate in Greenwich, Connecticut. And it's no wonder: "Fortune" magazine says as CEO, Fuld was paid around $500 million. But now, he's on the hot seat.

UNIDENTIFIED MALE: If you haven't discovered your role, you're the villain today.

REP. HENRY WAXMAN (D),CALIFORNIA: Your company is now bankrupt, our economy is in the state of crisis, but you get to keep $480 million. I have a very basic question for you. Is this fair?

JOHNS: Call it a half-billion-dollar question, but to Fuld, there's nothing wrong with getting paid for good performance.

RICHARD FULD, FORMER CEO, LEHMAN BROTHERS: When the company did well, we did well. When the company did not do well, sir, we did not do well.

JOHNS: John Egan evaluates companies like Lehman for investors. He says Fuld isn't the kind of guy to fall on his sword when things get bad.

SEAN EGAN, EGAN-JONES RATING: Like when the firm gets into trouble, that he would be the first in line to make the sacrifices to right the ship, so to speak. He wasn't.

JOHNS: Fuld is the guy who ramped up Lehman's business and mortgage-related securities, at least until the bubble burst. But unlike many other firms, when the subprime market went south, he didn't pull back. Instead, he got in deeper.

JOE NOCERA, "NEW YORK TIMES" BUSINESS COLUMNIST: Lehman wound up thinking people are making a mountain out of a molehill. And if we go in now when everybody else is in a state of quasi-panic and buy up a lot of these things, we'll make a lot of money. And it was a bad debt.

JOHNS: The doom mounted quickly.

In September, Lehman needed billions in cash to keep the company afloat. But according to the "Wall Street Journal," just five days before declaring bankruptcy, on a conference call to shareholders, executives were talking about selling assets but didn't explicitly say anything about needing extra cash.

REP. DENNIS KUCINICH (D), OHIO: Did you mislead your investors? And I remind you, sir, you're under oath.

FULD: No, sir, we did not mislead our investors. And to the best of my ability at the time, given the information that I had, we made disclosures that we fully believed were accurate.

EGAN: Either he should have known that the company was in difficult circumstances or, if he did know and didn't tell, it creates another problem. So on the one hand, he is either a liar or else on the other hand, he is stupid.

JOHNS: Most people know the rest. Lehman Brothers goes down, the largest bankruptcy in U.S. history, helping spark a financial panic that continues today. And that's why Lehman Brothers and CEO, Richard Fuld, are one of our "Ten Most Wanted Culprits of the Collapse."


JOHNS: We asked for an interview with Richard Fuld but we were referred back to his congressional testimony, Anderson.

COOPER: Well, I extend an interview opportunity for him any time here over the next couple of nights as we continue to name -- maybe he can talk about being named to our list.

There is an investigation going on. What do we know about it, Joe?

JOHNS: Well, CNN has been told that federal investigators are looking into Lehman and more than two dozen other companies. We're told they're looking into allegations of fraud.

Now, congressional investigators, by the way, have also started asking questions about whether investors were misled by anything company officials said or didn't say regarding that company's financial health.

COOPER: All right, Joe.

Let's -- before moving on, let's make it official, adding Lehman Brothers' Dick Fuld to our "Ten Most Wanted Culprits of the Collapse," a list we began last night with Joe Cassano from AIG, just one of the many executives at AIG who, frankly, deserve to be on the list.

More politics ahead. Among women voters, one poll has Barack Obama ahead of the Republican ticket by 17 points. Women twice helped George W. Bush take the White House. Sarah Palin is the big draw this time, and conservative women speak of her like a rock star.


TAMI NANTZ, PALIN SUPPORTER: When he introduced her as his running mate, it just -- I was jumping and screaming and crying. And I was so excited. And I hadn't been before that.


COOPER: 360's Randi Kaye caught up with members of the so-called Palin Sisterhood, who explain what it is about this candidate they like so much.

And charges of voter registration fraud already being heard around the country. How can this be? We're investigating. What we found so far is pretty shocking. We're "Keeping Them Honest," ahead.



SEN. JOE BIDEN (D), VICE-PRESIDENTIAL CANDIDATE: Sarah Palin says, you know, "I was in second grade when Joe Biden was elected United States senator at age 29." That's true. But she was in 6th grade the last time John had a new idea.


COOPER: Senator Joe Biden firing back at Sarah Palin. A Pew Research survey released last week shows the Obama-Biden ticket is leading the Republican ticket by 17 points among women. That's up ten points from two weeks ago.

With 26 days to go, it is important to remember that women voters twice helped George W. Bush defeat Democratic challengers. Women like the group of mostly moms who share devotion to Sarah Palin.

360's Randi Kaye spent some time with them and has the "Raw Politics."


UNIDENTIFIED FEMALE: We pray we that may be an example for the Lord Jesus.

RANDI KAYE, CNN CORRESPONDENT (voice-over): These Florida women hope their prayers are answered and Republicans win the White House. They are conservative Christians, Bible study members and big fans of Sarah Palin.

NANTZ: She's the rock star of the Republican Party right now.

KAYE: At 37, Tami Nantz is a born-again Christian, a wife and mother who sees a kinship in Palin like no other candidate before. She waited seven hours at a rally just to shake her hand and get this autograph.

(on camera) Do you feel like she's someone you can hang out with?

NANTZ: Yes. I feel like if she walked in my door right now, and we could sit down and have -- have snacks with her and talk and have a ball. I feel like she's one of us.

KAYE (voice-over): "One of us" because she's a woman and because she has conservative views.

NANTZ: Being a mom and Christian woman.

KAYE: Tami and her friends are just a small sampling of the conservative base Palin has re-energized. But they speak volumes.

UNIDENTIFIED FEMALE: She was bold. She's authentic. She tells the truth.

KAYE: These women were not sold on John McCain until he picked Palin. He isn't conservative enough for them. Like Palin, they oppose embryonic stem cell research and abortion rights. They admire her for knowingly giving birth to a Down syndrome baby and for supporting the pregnancy of her teenage daughter.

BRENDA MYNKS, PALIN SUPPORTER: She's such a great example for the country, that people have these challenges, but with the grace of God, with the love of family, these challenges can be overcome.

KAYE: Even the single registered Democrat in the bunch says she can relate to Palin.

CARA GARCIA, PALIN SUPPORTER: When she came on the ticket, it excited me. I personally started listening to her, and I liked what I heard. So I'm a fan.

KAYE: So why aren't all these fans showing up in the polls? CNN polls show McCain hasn't made any gains among women since naming Palin. And a "Time" magazine poll this month gives Barack Obama a 17- point lead among women.

UNIDENTIFIED FEMALE: I think there is a silent majority out there. I have never been polled. Have any of you guys been polled?


KAYE (on camera): The ladies we talked with believe Palin's appeal goes beyond the conservative base. They say even if voters don't agree with her conservative belief, they will be attracted to what our group calls her authenticity.


KAYE (voice-over): And her feistiness. In Palin, these women have found their champion. NANTZ: She has got that personality. She's got that, you know -- that tenacity about her. She's -- she's a pit bull. She really is.

KAYE (on camera): In lipstick.

NANTZ: In lipstick. Absolutely in lipstick.

KAYE: What do you say to critics who say that she's more about style than substance?

NANTZ: I say that I think they just don't get her. We get her. We get the little winks and nods and the little comments and sarcastic remarks. We get them.

KAYE (voice-over): Tami was so angered by criticism of Palin she started this blog, Moms for Sarah Palin. It's received more than 11,000 hits, about half anti-Palin.

NANTZ: Emma wrote me and she said, "I thought this was the moron blog, and I wasn't disappointed. Morons for Sarah Palin." And she called her an animal killer and a pig.

KAYE: Bloggers have also targeted Tami personally. But like Sarah Palin, Tami Nantz isn't backing down. It's only strengthened her faith.

Randi Kaye, CNN, Coral Springs, Florida.


COOPER: Up next, community crusaders, others helping children and those with disabilities. Our top ten list of CNN Heroes. But who should be the Hero of the year? It's up to you. You decide. We'll tell you how when "360" continues.


COOPER: All over the world, there are ordinary people doing truly extraordinary things and on Thanksgiving CNN is going to be showcasing some of these amazing people in the "Second Annual CNN Heroes: An All-Star Tribute." And we need your help to pick the Hero of the Year.

This morning we unveiled the top ten CNN heroes and community crusaders, others helping kids in a medical marvel. A blue ribbon panel helped pick the top ten. Earlier I talked with two members of the panel: best selling author and philosopher, Deepak Chopra; and Sir Richard Branson, founder of Virgin Airlines.


COOPER: Richard, what criteria did you use for trying to select a hero?

SIR RICHARD BRANSON, FOUNDER, VIRGIN AIRLINES: Well, the thing I loved about all the heroes was that they didn't sort of decide to be heroes. They ended up having personal experiences and then realizing that a particular problem needed to be fixed.

And so for instance, the Lady Caroline who's in prison --

COOPER: Right.

BRANSON: She being a convict, she realized that a lot of people couldn't afford to actually, you know, get to prison or --

COOPER: There's a challenge --

BRANSON: Bring a family member.

So when she came out, she created videos of people in prison for the children and vice versa. I think, you know, each person really started the -- you know, their charity or their mission based on a strong personal experience.

COOPER: It is interesting that -- I mean, you don't need millions of dollars to start helping other people. I think that is the lesson that all of these people teach us. They saw a need and they just started and stepped up to it.

DEEPAK CHOPRA, SPIRITUAL ADVISOR: Yes. I think they were also very creative. You see what you see in all these heroes is an exquisite combination of creativity, love and compassion. You see, love without action is meaningless and action without love is irrelevant.

They had the combination of both. So the woman, for example, who helped homeless children, homeless people by running, had a creative way of actually empowering them and giving them the experience of a good, physical being which translated into mental and spiritual well being which translated then into these people actually using their skills and getting jobs.

And then the Cambodian woman who was working with children who were in labor, essentially, in slavery and started to educate them so that they could actually become future leaders.

I mean, these are very powerful people and, you know, they don't have a lot of money but they're rich in spirit.

COOPER: For both of you, you're both business leaders in your own right and yet you have many philanthropic enterprises. Do you find -- how do you balance the two? Does one help the other? And how does that carry over to the heroes?

BRANSON: Anderson, there's no question that one helps the other. I'm quite a high profile public person means that I can pick up the phone and get things done. You know, if I see thousands of people who have got HIV and they're not getting medical help, I'm perhaps in a position to tap into the president's fund in America and get them free help. So there's no question if you eve got resources and you are a celebrity, that helps. COOPER: What's also amazing about so many of them is they're not looking for headlines. They're not looking for a claim or obviously they'd like some money to help out the programs but not looking to become famous.

CHOPRA: They have no investment and personal power and adulation and being a celebrity. They just want to build. And they want to make a difference. And they're coming from a place of deep compassion.

COOPER: Well, I appreciate both of you taking the time out of your schedule to not only be here but also just to be on the blue ribbon panel and to whittle it down and to get -- we had 4,000 submissions from 75 different countries -- to whittle it down to 10. It is a difficult job.

CHOPRA: It was a difficult job, yes.

BRANSON: It's been a great honor.

CHOPRA: Congratulations to CNN for taking the lead on this.

COOPER: Well, it's been a privilege. Thank you very much.

Remarkable men. To vote for the CNN Hero of the Year who'll be rewarded with a $100,000 cash prize, go to through November 19th. Again it's

Coming up, we all know I love Nancy Grace. But why was I seeing double Nancy Grace just the other night? That is our shot tonight.


COOPER: All right. Time now for "The Shot." And Erica, you know how much I love me and my Nancy Grace at 8 p.m. No one can come into my office because you and I are often watching Nancy Grace.


COOPER: Eating popcorn. Everyone knows this.

Last night, of course, you and I were feuding, so you're there, but...

HILL: Yes. I'm still a little upset, by the way, but whatever.

COOPER: I noticed that Nancy had a guest who looked exactly like Nancy Grace. Take a look at "The Shot."

Now, at first I was worried. I thought maybe Nancy was a victim of identity theft and that she was actually interviewing her dangerous doppelganger (ph), which would have actually been brilliant. But I think it's just another person who loves her some Nancy Grace as much as I do and wants to look just like her.

Erica, what do you think? HILL: You know, I actually think, Anderson, that's Renee Rockwell, who happens to be a very good friend of hers. And I used to see her in makeup all the time in Atlanta.

COOPER: Really?

HILL: Yes. She -- it's just their look. Friends do that sometimes, they look like each other, without even meaning it.

Is everything all right? Checking my BlackBerry here.

You can see all the most recent "Shots" on our web site,, where you can also see other segments on the program, read the blog, check out the "Beat 360" picture. The address again, That's our web site.

COOPER: Thanks, Erica.

That does it for this edition of "360." Thanks for watching.

"LARRY KING" starts right now. I'll see you tomorrow night.