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Giuliani Expected to Endorse One of His Rivals; Comeback Continues for John McCain; Edwards Drops Out; Interest Rate Cut; Violence in Kenya Continues
Aired January 30, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The curtain falls on another presidential campaign. John Edwards is out, but vows his cause will live on.
DON LEMON, CNN ANCHOR: And Wall Street is on eggshells ahead of the Fed's latest move on interest rates. We are about to find out how big a cut is in store.
Hello, everyone. I'm Don Lemon, live at the World Headquarters in Atlanta.
PHILLIPS: And I'm Kyra Phillips.
You're live in the CNN NEWSROOM.
LEMON: Investors are watching and they're waiting. A short time from now, at 2:15 Eastern, the Federal Reserve is expected to announce another cut in a key interest rate. While analysts are split on how the big -- how big the cut will be, many seem to think that the Fed will trim the Federal Funds Rate half a point in hopes of fending off a recession. We will let you know as soon as the announcement comes down.
Our Ali Velshi and Susan Lisovicz will join us for the news.
PHILLIPS: "It's time for me to step aside." With those words, former senator John Edwards dropped out of the Democratic presidential race just minutes ago. He ended where he started, in New Orleans.
We'll check in with our Suzanne Malveaux in just a few moments.
And you've seen John Edwards in front of the crowds and in front of the cameras. We're going to take you behind the scenes and into the trenches with an embedded CNN producer. That's just a few minutes from now right here in the CNN NEWSROOM.
LEMON: Well, one day after a stinging defeat in Florida, Rudy Giuliani is expected to fold his campaign. He's also expected to endorse one of his rivals for the GOP nomination.
CNN's Mary Snow joins us now from Tampa.
He's going to say who he is behind.
MARY SNOW, CNN CORRESPONDENT: That's right, Don. You know, Rudy Giuliani is not bowing out of this race quietly.
Right now, he is on his way to California. And sources have told us, Republican lawmakers in New York also confirming, that he is going be dropping out later today. He's expected to endorse Senator John McCain around 6:00 p.m. Eastern Time. We have a producer traveling with Rudy Giuliani to California on the plane, on their way out there. He told reporters that he slept better than he has since this campaign started a year ago.
He and John McCain are long-time friends. That announcement is expected to come later today. That could certainly help boost Senator John McCain in some of the Northeast states, particularly New York, Rudy Giuliani's home state. But it was a stinging defeat for him, because he bet everything on Florida and trailed behind his competitors. For Senator John McCain, he is hoping this Florida win will boost him towards Super Tuesday. He is now the Republican front- runner after winning South Carolina, New Hampshire and Florida, and he is fighting hard in California, and his big rival is Mitt Romney.
Mitt Romney is saying that he is looking forward to a two-person race. He had expected to win here, but now he is trying to make the case that he is the candidate of the conservatives' choice. He's trying to tap into the discontent among conservatives about Senator John McCain. Also working to his advantage, his deep pockets. He has invested millions of his own money into the campaign. The question is, how much more will he put into the campaign? But he's vowing to go ahead on Super Tuesday and target specific states in order to be competitive in the election.
And, of course, Mike Huckabee still in the race. He said here in Florida last night, although he didn't do well, he believes he will do well on Super Tuesday. He's been concentrating on southern states.
But, of course, it's going to be very interesting tonight when the Republicans are on stage, of course, for the CNN debate at the Reagan Library, and see just how Senator John McCain and Mitt Romney square off, because they have been in a very heated battle here in Florida. It got very bitter leading up to the primary -- Don.
LEMON: Yes, and he didn't get the brass ring, Rudy Giuliani. He did, but you said he slept well last night. Can you imagine what a weight that is off your shoulder? Anybody would sleep well after that, I think.
SNOW: Yes, I think so.
LEMON: Mary Snow -- yes.
Mary Snow joining us from Tampa. Thank you very much for that.
PHILLIPS: Not long ago the pundits were writing political obituaries for John McCain. Today, he's basking in a big victory in the Florida primary. How did he do it?
CNN senior political analyst, Bill Schneider, has been crunching the numbers. (BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: How did John McCain win the all-important Florida primary? One word, authenticity. It was the strength of his personal qualities that appealed to the voters. Among the nearly half of Republican primary voters in Florida who said their vote was driven by personal qualities rather than issues, the vote clearly went to John McCain over Mitt Romney and Rudy Giuliani. McCain's victory was a personal victory. It wasn't a victory particularly on issues or ideology, it was a vote for him.
John McCain also has a problem as he goes forward in the Republican primaries. Mainly, values voters. Those are conservative voters who are the base of the Republican Party. John McCain did not carry conservatives. Mitt Romney beat him in that all-important category. John McCain is going to have to be more competitive among conservatives to prove he is at least acceptable to them if he wants to capture the Republican nomination,.
Among those Republican voters who were looking for a candidate who shares their values, Romney came out on top, followed by Mike Huckabee. McCain came out in third place. He has some work to do with the conservative base.
However, McCain does have one problem which could become an advantage; namely, the change issue. We're hearing Democrats Barack Obama, Hillary Clinton talk about change, change, change. There seems to be a tremendous market for change in this year's election.
Could a Republican candidate credibly present himself as a candidate of change? Maybe McCain could. We found that a third of the Republican primary voters in Florida have a negative assessment of the Bush administration, which means they want change. Republicans for change. And among those voters with a negative opinion of Bush, McCain came out as the winner over Mitt Romney and Rudy Giuliani.
That could be a problem for McCain as he goes forward in the Republican primaries, because most Republicans continue to like the Bush administration. However, if McCain manages to get the Republican nomination, it could be an advantage, because it says he could present himself credibly to the larger electorate as a candidate who offers change.
Finally, the one thing that McCain did have going for him that may have trumped everything else was that Republican voters thought he has the best chance of winning the election in November. He is the most electable.
Asked, "Which of the Republican contenders has the best chance?" McCain dominated the field with 46 percent; Romney, 33; Rudy Giuliani was just 11 percent. This should have been Rudy Giuliani's strongest issue. He offered himself as the most electable Republican, but in that category, McCain beat Giuliani by a margin of more than four to one.
Electability is something else that McCain has going for him as he goes into these final and decisive primaries on Super Tuesday, seeking the nomination, in what is becoming a contest between him, Mike Huckabee, and Mitt Romney.
Bill Schneider, CNN, New York.
(END VIDEOTAPE)
LEMON: All right, Bill Schneider.
Former senator John Edwards dropped out of the Democratic presidential race just moments ago.
Let's go to CNN's Suzanne Malveaux. She is in New Orleans at the scene.
Apparently, Suzanne is having -- as we wait for Suzanne -- having a little bit of trouble hearing us. But again, Suzanne, is on the scene there. She has been following this campaign, was there for the announcement -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: John Edwards saying that this was a journey that he had made a long time ago, and obviously it comes full circle ending that journey here in the Ninth Ward in New Orleans, devastated by Katrina.
He talked about his main themes -- the issue of social justice and ending poverty. He really shaped the debate among the Democrats, pushing those issues forward. He also said that he had reached out to Senator Obama, as well as Hillary Clinton, getting a pledge from both of those candidates to make that a central theme in their campaign. Obviously, this is something that he is very compassionate about.
He was here with his family, essentially saying good-bye to the voters, to all of his supporters. He wanted to do it here to emphasize just how important it is to bring this to the forefront, to fight for the little guy, if you will.
I had a chance to catch up with Edwards just moments after he made his announcement, and here is what he said.
(BEGIN VIDEO CLIP)
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: And I thought we had come to this point, this historical point where it's time for me to step aside, as I said in the speech, and let America make history -- let my party make history.
MALVEAUX: Will you endorse a candidate?
EDWARDS: I haven't made that decision yet. I've told both Senator Obama and Senator Clinton that I'd be happy to spend time with them to talk to them about what they intend to do for America and what they're -- they're committed to doing, and that I would make a decision.
(END VIDEO CLIP) MALVEAUX: And Don, I asked him, actually, what does he plan to do in the future here, will he actually, you know, perhaps even consider the chance of becoming a running mate? He says he doesn't know what he is going to do. He is going back home with his family.
Aides are saying, insiders are saying that it's not likely he would try again for that number two spot, but obviously he is going to continue, he says, to talk to both Clinton and Obama privately to see what they are going to do, what direction their campaigns are going to take to see if in fact he will decide to support their campaigns -- Don.
LEMON: Suzanne Malveaux in New Orleans. Thank you, Suzanne.
PHILLIPS: And for the rest of the field, there's no time to rest. With Super Tuesday less than a week away, Hillary Clinton is campaigning in Arkansas and Georgia today. Her Democratic rival, Barack Obama, making stops in Arizona and Colorado, and Republicans Mike Huckabee and John McCain and Mitt Romney are all campaigning in California ahead of tonight's CNN debate at the Reagan Library.
Stay with CNN for complete coverage as the Republican and Democratic candidates face off in California. It will be the last debates before Super Tuesday and the first without Rudy Giuliani and John Edwards in the field.
The Republicans square off tonight and the Democrats tomorrow night. Both at 8:00 p.m. Eastern, only on CNN, your home for politics.
And we're watching and waiting for the Fed to announce its latest decision on interest rates. Moments from now the markets will react.
Ali Velshi somewhere down on the floor at the Chicago Board of Trade. Ali, smile.
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: I'm trying to keep out of the way, Kyra, because right now it's calm. Everybody's waiting for a few minutes. See all these people standing around?
But in just a few minutes that Fed is going to make an announcement. It's going to be 25 basis points or 50, a quart of a percentage point or half a percentage points. This place is going to go nuts. And you know why it matters? Because your mortgage is being set on this floor, the price you pay for a mortgage is being set. The Fed cuts rates, your prime rates gets lower.
I'm here. I'm going to be here until it happens. It's just moments away. Stay with us. You're in the CNN NEWSROOM. Kyra, I'm going to be here. If you don't see me, call for help.
PHILLIPS: Thank you, Ali.
LEMON: I think Ali needs a little bit more energy. He is not jazzed up...
PHILLIPS: He had a couple of cups of coffee this morning.
LEMON: Yes.
And you know what? Sadly, another story. More troubles in a troubled land. Our Zain Verjee saw terrible devastation in Kenya's Rift Valley. She will join us live in the NEWSROOM.
(COMMERCIAL BREAK)
LEMON: Al right. The Federal Reserve is announcing its latest move to get the economy humming again, and we're covering it from every angle for you.
Keeping track on what's happening, our Susan Lisovicz is at the New York Stock Exchange, and Ali Velshi at the Chicago Board of Trade, getting a feel on what's happening in the Midwest.
Susan, we'll begin with you. Did they make the announcement yet?
SUSAN LISOVICZ, CNN CORRESPONDENT: OK. We've got it. We've got it, Don.
The Federal Reserve has cut interest rates again, cutting its key federal funds interest rate a half a point to three percent. That is the lowest we have seen that rate in three years. Remember, this coming just eight days after the Fed, in an emergency move, made a dramatic three-quarters of a point rate cut. We haven't seen that kind of move in 24 years, but the Fed responding.
Again, at the time last week, the Fed said it took this action because of a weakening of the economic outlook and increasing downside risk to growth. Apparently, the Fed saying in a statement just released that it still sees stress in financial markets, credit tightening, and we can see that in terms of trying to get a loan. And certainly with the rates of the loan, this should certainly bring down further downside risks to economic growth -- Don.
LEMON: And Susan, as you're getting information, we can tell you -- it's just coming in, you're getting it from your producers. In the meantime, we want to check in -- Susan, stand by -- check in with Ali Velshi, getting a feeling of what's happening in the middle of the country. He's at the Chicago Board of Trade.
What is the reaction there, Ali?
VELSHI: Muted at the moment, Don. There's been a lot of speculation today as to whether the Fed was going to move a quarter of a percentage point or half a percentage point. That half a percentage point is the one that they thought would happen. If it had been less than that, there might have been some surprise and some activity as a result of that.
Now, what you're going to see as result of this cut is, as we have been discussing, the prime rate comes down by another half a percentage point. So, the Fed rate is three percent, your prime rate is now going to be six percent. Within the next two hours we will hear from every bank in America that they are cutting those rates.
Now, behind me, we've got bonds trading. Those bonds are where the fixed mortgages are sent, and they are going to start to trade lower as a result -- that's usually what happens, which means that by the end of the day, bonds actually trade higher, the interest rates become lower, so everybody in America who has got some kind of debt is going to feel this move.
LEMON: And that's the question. That's the question. You touched on. And maybe -- I don't know if you or Susan want to talk about this or expand on it.
What does this mean for the everyday investor, the everyday person on the street here? Either one of you jump in.
LISOVICZ: Well, I mean, I think money -- go ahead, Ali.
VELSHI: For people with loans, this is what -- part of it is people with mortgages and loans. If you're in an adjustable rate mortgage, this might be a good time to move into a fixed rate. If you've got adjustable rate mortgages, that's going to go down. It means something entirely different for investors. Susan's got that.
LISOVICZ: Yes. Well, you know, we saw an immediate reaction. I mean, Ali was talking about the bond market. We saw a sell-off, a very quiet sell-off going into this -- going into this decision, but now we see a rally.
And in fact, the Dow has tacked on at least 500 points since that emergency cut last Tuesday. The fact is that one of the things that needs to stimulate the economy is consumer spending. And if consumers can't get loans and they can't get loans at attractive rates, they're certainly not going to be spending.
LEMON: Susan, there's something that I find very interesting, and I want you to talk about this really quick, and I want to ask Ali something in just a second. But there are folks out there who are financial watchers and experts who are saying that the Fed should not cut rates?
LISOVICZ: Well, you know, remember, Don, that it was cheap money, the availability of cheap money that led to the housing bubble. There was so much speculation. There are a lot of layers of blame, but one of the layers of blame for critics is that the Federal Reserve kept interest rates at a historic low, one percent for a full year. So, they say that Alan Greenspan kept rates too low for too long, and by cutting rates now in this crisis, that perhaps you could start beginning another crisis.
LEMON: OK.
Hey, Ali, we'll give you the last word here. Just real quick, everybody has been speculating about this. Some people say we are teetering on it if we don't -- you know, we're trying to stave it off. And some people are saying we are in a recession.
Is the economy in a recession?
VELSHI: We had the GDP numbers for end of 2007 come out today. GDP is sort of the broadest measure of the economy. It's the amount of money that we -- the amount of value that we produced as a society. It was low. It was .6 percent. That was the growth. It's not zero, it's not negative. It has to be negative by most definitions of a recession.
So, we still could be at that tipping point, and that is why the Fed cuts rates to try and stimulate spending. If you make it cheaper for people and businesses to borrow money, they do generally borrow it and they do generally spend. Not good, as Susan said, for people's spending habits and borrowing habits, but it does make money easier and cheaper, and then generally stimulates demand.
LEMON: All right. Ali Velshi, Susan Lisovicz, we appreciate your expertise on this rate cut. Thank you very much.
And your financial security is in the spotlight today as President Bush visits California. He is scheduled to talk about stimulating the economy. That will happen at 2:55 Eastern. You'll want to stay right here in the CNN NEWSROOM for live coverage.
PHILLIPS: Torture, the CIA, terror suspects, waterboarding -- that's what the new attorney general is talking about on Capitol Hill today, but he is not saying much.
CNN's Kelli Arena is in Washington with more on Michael Mukasey's Senate testimony -- Kelli.
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Yes, Kyra, the attorney general knew exactly what lawmakers wanted to hear, but he just will not bite. Senators wanted to know whether he thinks waterboarding is torture, but Mukasey said the CIA isn't waterboarding anybody anymore, and so he would be dealing with a legal hypothetical.
(BEGIN VIDEO CLIP)
MICHAEL MUKASEY, ATTORNEY GENERAL: Given that waterboarding is not part of the current program and may never be added to the current program, I don't think it would be appropriate for me to pass definitive judgment on the technique's legality.
(END VIDEO CLIP)
ARENA: The chairman of the Judiciary Committee, Senator Patrick Leahy, told Mukasey that it wasn't enough to just say that waterboarding isn't currently authorized. And in his opening statement, he blasted him.
(BEGIN VIDEO CLIP)
SEN. PATRICK LEAHY (D), JUDICIARY CHAIRMAN: Never mind that waterboarding has been recognized as torture for the last 500 years. Never mind that President Teddy Roosevelt properly prosecuted American soldiers for this more than 100 years ago. Never mind that we prosecuted Japanese soldiers for waterboarding Americans during World War II. Never mind that this is the practice of repressive regimes around the world. That is not America.
(END VIDEO CLIP)
ARENA: Now, in case you have been living under a rock, waterboarding is an interrogation technique that simulates drowning. Officials say the CIA has waterboarded three al Qaeda detainees. And this is the first time that the Senate has had an opportunity to grill Mukasey since his confirmation hearing. They were definitely hoping for a clear statement on the issue. Apparently, they're not going to get that today -- Kyra.
PHILLIPS: Well, obviously there are several subjects being discussed today other than waterboarding, right? Has the hearing been very contentious?
ARENA: You know, actually, we were really anticipating some fireworks, but we're not getting any. I mean, lawmakers are actually being quite cordial toward Mukasey. I don't know if it's just because, you know, he's still in his honeymoon period or because he's soft spoken or because he's new to Washington. But whatever it is, we're not getting the apoplectic fits that we're used to seeing when we have the attorney general before that committee -- Kyra.
PHILLIPS: Kelli Arena, appreciate it.
(COMMERCIAL BREAK)
(NEWSBREAK)
LEMON: Well, you saw it here on CNN just less than an hour ago, John Edwards dropping out of the presidential race. And CNN producer, Dugald McConnell, has been traveling with the Edwards campaign and he joins us now from New Orleans, where Edwards announced his withdrawal.
Dugald, were you there for his announcement? I'm not sure if you were.
DUGALD MCCONNELL, CNN PRODUCER: Yes, I was just here for his announcement, and it certainly came as a surprise today.
LEMON: No, when he announced for president back in 2006. I'm not sure if you were there, but he was up against a heavy news cycle.
I can remember here in the NEWSROOM President Gerald Ford had died, and he was making his announcement just the day -- either the day of or the day after the president had died. So he was in danger there of being drowned out, but today certainly getting the spotlight.
So a surprise to you on the campaign trail with him, even folks who had been following him?
MCCONNELL: Yes, it is true. You know, I have got a tip from a Democratic operative not with one of these campaign last night, and I dismissed it, actually, because of the signs -- you know, on Monday they had this big conference call of how they're still just trying to accumulate delegates and they're going to buy some ads, and they've still got enough money to go.
And of course, if he was going to drop out, you would expect it to be the day after he lost his native state of South Carolina, the only state that he won in 2004. And that is when the questions really started on Sunday.
LEMON: Yes.
MCCONNELL: But since he stayed in it for a few days, it came as a surprise to me today. There was a lot of travel booked, there was the debate tomorrow that I'm sure any candidate would want to be in...
(CROSSTALK)
LEMON: Yes. Hey, Dugald, let me jump in here, because you see the video of him getting off the plane there, and this, I would imagine, was shot by you, because you're on the campaign trail with him.
MCCONNELL: Yes.
LEMON: And you're sort of behind the scenes. Are you are traveling on this little plane with him, the one that we're seeing...
(CROSSTALK)
MCCONNELL: Well, planes of different sizes, but it's never been a giant one.
LEMON: OK. All right. Let me ask you this -- how is he -- people want to know, what he is like? Because we see him here on the plane, he is with reporters and he's chatting it up, it looks like. I'm not sure if he's rolling -- they call it bowling the oranges down the aisle. What's he like behind the scenes?
MCCONNELL: Well, behind the scenes, I'd say he's pretty relaxed. You know, he's -- the last couple of days he's been sick, so he's been sleeping in the back of the plane.
But, you know, he's often wearing jeans. He's often casual. He's often eating ribs and chicken and listening -- listening to southern music and Springsteen. And the other day we were in a bar -- this was in Elko, Nevada.
LEMON: Yes, we want to play that.
MCCONNELL: And you wouldn't believe it. He gave a speech in the bar. He gives a speech standing on a chair with a bullhorn. Then afterwards he goes up the bar. And they had this specialty drink there. I forget what it was called, but he went ahead and gave it a try because the bartenders were like, "Oh, you've got to try this.
LEMON: Hey, Dugald, we want to listen to this. Hey, Dugald, let us listen to it. LEMON: Yes, he is like -- he's like reaching for it. Hang on, Dugald. We want to get the moment here, but he is like, where is it?
(BEGIN VIDEO CLIP)
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: Whoa! That's got a kick.
Thank you.
(END VIDEO CLIP)
LEMON: He goes, "Whoa, that's got a kick," Dugald. "Thank you." And then he takes another one.
MCCONNELL: Don, I tried that. It was very strong. It was like turpentine. It was 100 percent alcohol. He was a good sport about it. But, by the same token, he's one of the candidates who probably doesn't usually do photo-ops where he's eating a Philly cheese steak or something like that because, you know, the gravitas issue is always something for candidates on the trail.
LEMON: Yes. Hey, Dugald, real quick, because we want to get this in. So we want to see the happy birthday video that apparently a member of the press, one of you guys, had a birthday. And he sand "Happy Birthday."
Let's listen.
(BEGIN VIDEO CLIP)
EDWARDS (SINGING): Happy birthday to you. Happy birthday, Racina (ph), happy birthday to you.
(END VIDEO CLIP)
LEMON: OK. If I were -- he wouldn't go to Hollywood, because he was a little pitchy in some spots, but not bad. He seems like a pretty nice guy behind the scenes, Dugald, with you guys.
MCCONNELL: Yes, you know he is knocking the press because he doesn't get much coverage since he's never winning, but with the press personally of course, he occasionally talks on the bus or the plane. And it is interesting, of course to hear a candidate talking about strategy and what they were thinking during a debate -- what went through their mind during that moment. But, of course it is all off of the record, Don, so if I told you, they would probably have to kill me.
LEMON: OK. Just don't tell me on national -- international television. OK, Dugald McConnell, you have one of the best jobs in television, my friend, you get to get behind the scenes with the candidates. So, I hope you are enjoying that.
MCCONNELL: Thanks, Don.
LEMON: All right, thank you.
PHILLIPS: Who is out? Who's left, and what is coming up? Presidential politics and our political round table straight ahead.
(COMMERCIAL BREAK)
LEMON: The field narrows now, the landscape changes six days before Super Tuesday, John Edwards ends his democratic presidential bid, where he began it in New Orleans. And just hours from now, we are expecting Rudy Giuliani to exit the GOP race and endorse rival John McCain. We have a lot to talk about.
Joining me now is CNN political editor, Mr. Mark Preston.
Hey, Mark. How are you doing?
Conservative commentator Michelle Bernard, and from the advocacy group, Independent Women's Voice, that's where she's from, and radio show talk show host, Mr. Carl Jeffers he is a friend of the CNN NEWSROOM.
He's here a lot -- a contributor to "The Seattle Times." Thanks to all of you and good to see you all. OK. So John Edwards drops out today, it has been the endorsement battle, who is going the get this endorsement and who is going to get that endorsement?
Our CNN person I want to ask you this, Mark, is this the endorsement that could tip the scale depending on who John Edwards endorses?
MARK PRESTON, CNN POLITICAL EDITOR: You know, I am not sure if it will tip the scales necessarily, Don, but it would certainly, it is sought out. Hillary Clinton, Barack Obama have both been trying to reach out to John Edwards trying to get him to come to his side. He certainly has a lot of supporters out there.
And, in fact, last week, Don, in Myrtle Beach after the CNN Congressional Black Caucus debate, Hillary Clinton, John Edwards had a private conservation backstage and it wasn't just a passing hello. So this has been going on now for a couple of weeks.
LEMON: OK.
Michelle, let me ask you this, John Edwards would joke about it on the campaign trail in the debates he goes, you know what, I am the good-looking white guy in all of this. He's running against -- seriously, talking to people here and -- who would have thunk that you know a black man and a woman, how could John Edwards compete against that?
MICHELLE BERNARD, CONSERVATIVE COMMENTATOR: Well, you know, actually normally the question is, how could a black man and a woman compete against John Edwards? So, the tides have turned. It is really interesting, because I think what we are going to see is that there are a lot of white males throughout the United States who are saying, hey what about us? Please pay attention to us. Because we keeping hearing about the African-American vote, we keep hearing about the women's vote, and there are a lot of just white males out there, or men out there period, who are hoping that we are going to be paying attention to their vote as well.
An endorsement by Senator Edwards is going to be really important, because you know we don't know what will happen, and we don't know if white male voters will be alienated and more likely to vote for Hillary Clinton or Barack Obama, or if his very loyal supporters will look at Hillary Clinton as the old and will be craving the type of change that Senator Obama has been speaking about and decides to throw their hat in the ring with Obama.
LEMON: I want to get to Carl Jeffers in just a second here, but I want to ask -- I want to go back to Mark real quick and ask about this.
You heard from our producer there, Dugald, who has been following the campaign, John Edwards has said it himself, he doesn't feel that he gets nearly the media coverage that Barack Obama and Hillary Clinton do. He feels that the media in some way has a love affair with those two candidates, and he's being left out. Do you agree with that?
PRESTON: Well, this is an interesting election year, Don. I mean, look, we really have the first real viable woman candidate who has a good shot of winning the Democratic nomination, moving on to the White House, and the same thing with Barack Obama.
You know, a real viable African-American male who can go on and perhaps win the White House. I think that's really tough to overcome, and I think that's what John Edwards was talking about.
LEMON: It's uncharted territory --
PRESTON: The media was really focusing on -- well, it is such an interesting story, Barack Obama has a fascinating story to tell, as does Hillary Clinton. So, I think that was difficult for John Edwards to overcome.
LEMON: All right. Let's get to Carl Jeffers now.
Carl, you got a interesting note about -- from you, we were talking about endorsements the other day, and the Kennedys endorsing Barack Obama, and the fight over who's going to get which endorsement here.
And then, we talked about the California congresswoman endorsing Hillary Clinton. You find that more interesting that Maxine Waters would endorse Hillary Clinton, than you find Ted Kennedy endorsing Barack Obama.
CARL JEFFERS, POLITICAL ANALYST: Well, I think, Don, and it is great to be here again with you again. The interesting thing about it is that, in fact, as Ted Kennedy represents the Democratic establishment in America, certainly, the old line and the liberal tradition. The white Democratic establishment in America seemingly is edging towards Barack Obama.
But the reality is right now in terms of a nose count, the majority, not by many, but by few, the majority of the Congressional Black Caucus is lined up so far with Hillary Clinton, and that is a very interesting dynamic that most of America is not aware of.
And the Maxine Waters endorsement dramatizes the fact that among black establishment political figures in America, among black business leaders in America who are Democratic versus some who are more conservative that there is a strong resonance with Hillary Clinton. And I would go back to your other point, the media certainly hasn't demonstrated any love affair with Hillary Clinton.
LEMON: Hey, Carl, we have to move on, because I want to talk about the Republicans here, because Rudy Giuliani obviously dropping out of the race as well. But he is making his endorsement known. He's saying he's going to back John McCain in this, but both of these guys, especially when it comes to the Republican Party, they are really not the Republican Party's poster boys, are they? And, I mean, who would have thunk this, John McCain struggling here.
JEFFERS: Well, John McCain comes out of Florida as the front- runner in the Republican primary, and yet he has got problems raising money and has to use his win in Florida to try to raise money to get into super Tuesday. Mitt Romney comes out of Florida number two, but he still has the money to immediately start campaigning.
And because he did not pick and choose which primaries to run in, he is still having the opportunity to amass enough delegates that even if he is not the front-runner, he will be a major player. And as they move to the conservative primaries in the south on Super Tuesday, the dilemma for the Republicans, Don, is that conservative Republicans like Mitt Romney's positions, but they're concerned that he's flip- flopped on the issues, but with John McCain they think he's just been wrong all along.
LEMON: OK. I want to give Michelle Bernard the last word here. We saw Charlie Crist there in the video yesterday. Charlie Crist coming out -- the governor of Florida endorsing him, and we see Rudy Giuliani going to endorse him as well. Who is vying -- can we look at this as someone vying to be number two here on the ticket?
BERNARD: I don't think either one of them is vying to be number two. They are going to fight this out to the very end, both of them want to be the President. This is probably the last opportunity for either one of them to do so. And really the way we should be looking in terms of this is, who is going to be the standard bearer of the Republican Party post George W. Bush. Everyone in the Republican party wants to hold Ronald Reagan mantle's, just as the Democrats want to hold John F. Kennedy's mantle. So I think that the Republican voters in the nation are going to start looking at who is electable and who can carry the Reagan legacy forward in 2008.
LEMON: OK. I don't know, I looked at that and I said, man, and -- I Mark I don't know if you disagree, but I think one of them wants to be the vice president or at least both of them. BERNARD: I would say that is Huckabee, not McCain or Romney.
PRESTON: Well, I have to tell you that John McCain, Don, has said all along that he is running for the White House. He has no desire to be vice president. And I actually believe him at his word. Would Mitt Romney take it? Perhaps, but I really think that we're going to see a fierce fight.
Mitt Romney has deep pockets. John McCain has a lot of momentum. In a couple of hours, here in the Reagan Library, we're going to see Rudy Giuliani endorse him. It is going to be an interesting debate tonight.
LEMON: OK. CNN political editor, Mark Preston, Michelle Bernard from the conservative advocacy group, Independent Women's Voice, and, of course, Carl Jeffers, who is a contributor to "The Seattle Times."
Thank you all.
BERNARD: Thank you.
LEMON: And stay with CNN for complete coverage as the Republican and Democratic candidates face off in California. They'll be the last debates -- these will be the last debates before Super Tuesday and the first without Rudy Giuliani and John Edwards in the field. Republicans square off tonight and the Democrats tomorrow night, 8:00 p.m. Eastern, only here on CNN, your home for politics.
PHILLIPS: Troubles in violent Kenya. The nation's ethnic problems deepen and widen, and not just in the big city.
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MILES O'BRIEN, CNN CORRESPONDENT: It isn't easy to skim a profit on a dairy farm. Revenues are slim and the hours are utterly daunting.
AMANDA ST. PIERRE, OWNER, PLEASANT VALLEY FARM: I get milk three times a day. We operate seven days a week 24 hours a day.
O'BRIEN: But here at the Pleasant Valley Farm, Vermont's largest, they are finding a new way to make ends meet, by capturing what comes out the ends of their 2,000 cows. They stay flush by pushing the poop into a big digester. The manure sits for about three weeks, generating a lot of methane, which, in turn, generates enough electricity to power 500 homes.
MARK ST. PIERRE, OWNER, PLEASANT VALLEY FARM: We used to spend $200 a day in electricity to run our dairy. Now we are selling $1,200 a -- of electricity day.
O'BRIEN: About 4500 customers at Central Vermont Public Service have volunteered to pay about one third more for cow power.
LOUIS DUPONT, FURNITURE MAKER: We just love the idea of that money staying in Vermont, as opposed to going to Saudi Arabia or even Canada.
A. ST. PIERRE: We are hoping that we can pay this project off between five to seven years.
O'BRIEN: The price tag for the system is about $2 million, not a solution for smaller farms just yet. But one other thing, the digester makes a dairy farm odorless. In the end, that would make be priceless.
Miles O'Brien, CNN.
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PHILLIPS: East Africa, deep inside Kenya's Great Rift Valley. Far from the capital, but not from Kenya's political and ethnic violence. When rumors emerged of a police shoot-to-kill orders, CNN's Zain Verjee went out there to check it out.
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ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Oh my goodness, look at all this --
(on-camera): We have just landed in this town. There are a number of homes on fire here in the Rift Valley. We are going to take a look and see exactly what is happening over there. We have seen a few refugees just packing up their things and leaving. But we are going to take a look and see what is happening. We have also put on these flack jackets. The reason is, a lot of people have been shot by poisoned bows and arrows, so we are putting them on for our own protection.
At 3:00 in the morning this town's neighbors, of a different tribe, came in and set this place on fire. Sixty percent of this town has been razed, completely burned to the ground. People would have been asleep at night and they fled not knowing what hit them. But, you can see here I'm in somebody's home. And you can see some maize that has been completely burned, potatoes. This would have been, really, to feed the family from the shambas, or the fields nearby, and the excess would probably have been sent off to the market so they could make a little bit of money.
But, as we just sort of walk around the home and the ash here, you can see the shattered plates, broken glass everywhere. It's scenes like this in the Rift Valley that Kenyans are shaking their heads in disbelief. The tribe on tribe violence in this part of the Rift Valley is intense. We have been to see two different tribes in two different areas. They are neighbors and both sides are telling us how much they hate each other and, in many instances, that they want revenge.
This is a house belonging to people from the Kikuyu tribe. In fact, this whole area that I'm standing in belongs to the Kikuyu. Most of it is smoldering and many villages here are on fire. Just across the road is a different tribe. The people we have spoken to here say that they have come over and attacked the homes, taken all their possessions and set the place on fire.
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PHILLIPS: Zain is now back safely from the Great Rift Valley. She joins us live from Nairobi.
Zain, tell us what it is like for you today.
VERJEE: Kyra, it was really difficult to see those kinds of scenes in the Rift Valley. We saw a lot of destruction in different pockets. What was also very striking to me was just how eerie it was, because there are a lot of shambas there, and that means farm in Swahili. And people are usually out and about -- dealing with the maize, and -- because that part of the Rift Valley is really the breadbasket.
So, it was strange to see that there was nobody there, instead we just saw a lot of refugees in different parts of the Rift Valley. The other thing too, Kyra, is that we spotted this old granny, she was 75- years-old. She was with her grandson and they were just sitting under some shrubs alone and had no food, no money and absolutely nothing. Their home was burned. And it was very heart wrenching to see that, Kyra.
PHILLIPS: Just to see you walking through rubble. I mean -- did those people make it out alive? And what did the locals there tell you?
VERJEE: Well, they told us that four people were actually killed in those fires. They said that the tribes had warned them and said get out of your house or we are coming to burn it down. And so there was a warning. So, they knocked on people's doors, said to get out and the four that died, died in the fires there.
There were about 10,000 people or so that got out. They said, we never want to come back. What many people that we spoke to also said, was that they were really resentful that this had happened. Many of them said that they would never be able to reconcile with the tribes that did this to them, Kyra.
PHILLIPS: And this is where you have obviously grown up and been raised in this -- in Kenya. Have you spent a lot of time in the Rift Valley?
VERJEE: Yes, you know I have. And it is really awful for me to think that when people hear of those two words, Rift Valley, that you really associate it with danger. Growing up, I spent a lot of time there. But you know, the Rift Valley is just so spectacular. It's one of the wonders of the world, actually.
It's got these beautiful lakes with flamingos, it's got mountains and gorges and wild game. And it's really lovely and it is just tragic for all of us here in Kenya to see that this destruction, which is a reality, is really stained the image of Kenya -- that that is really what is happening on the ground today.
PHILLIPS: Well, we appreciate your powerful reports and your insight. Zain Verjee, live from Nairobi. Thanks Zain.
LEMON: All right. We want to get to now -- live to California and a beautiful backdrop there. President Bush, along with Governor Arnold Schwarzenegger of California. President there touring this helicopter --Robinson's, as a matter of fact, a helicopter factory. He is there in Torrance to talk economy and trade. That should happen in a few minutes. As soon as it happens, we will bring it to you live, right here in the CNN NEWSROOM, whenever he is introduced.
Putting money in your pocket. Is the stimulus plan, now before Congress, the best way to get the economy back on track?
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LEMON: The president just finished thanking everyone. Now he is getting into the meat of why he is in California to talk economy.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... every time we come through strong. And that is what is going to happen this time, too. But the federal government can help. We can have some smart policy out of Washington. And the smartest thing we can do is to help deal with the uncertainty by putting about $145 billion into your pockets, so you can spend it, which will help this economy stay strong.
And at the same time, part of that $145 billion is to provide incentives for businesses, large and small, to invest. You see when you provide an incentive for a company to invest, they go out and buy a machine. And when they buy that machine, somebody has to put labor into the machine, somebody is working. So the whole purpose of a stimulus package is to have something robust enough to make a difference, temporary enough that -- so that the -- we can balance our budget over time, and simple enough to be effective.
And as the governor mentioned, we reached an agreement with both Democrats and the Republicans in the House of Representatives on a package that is simple, robust and effective. And now the Senate is debating the issue. And I understand people having their points of view, and I -- of course we welcome points of view in Washington. It appears to be a lot of them up there.
But whatever the Senate does, they should not delay this package. They should not keep money out of your pocket. The sooner you get a check, the more likely it is that the stimulus package will kick in and make a difference. So my attitude is, if you are truly interested in dealing with the slowdown in the economy, the Senate ought to accept the House package, pass it, and get it to my desk as soon as possible. This is what I want to talk about.
I also want to talk about trade. Now, people in our country, let's be perfectly frank about it, you hear them say trade isn't any good, it doesn't help. Well, if I were a worker at Robinson, I'd be -- I'd be arguing against that. You've got good jobs here, people are working, and 70 percent of what you make gets sold overseas. So you can't tell the people at Robinson Helicopter that trade is not good. When 70 percent of that which you manufacture gets sold somewhere else, other than the United States, they ought to have a sign walking here say, trade is not only good, it is great. And we want the federal government to make it easier for us to sell products. That is what trade is really about, isn't it?
If you are good at something, and you are good at making helicopters, then you ought to have your government making it easier to sell your product, not harder. Mr. Robinson says 70 percent of the revenues from this company are a result of products being sold overseas, and that happens in a lot of companies in America, by the way. As a matter of fact, it is estimated that our growth last year, one-third of that growth was caused by exports. When people are selling something overseas, it means somebody is working. And there is a lot of customers overseas.
And so, one of the goals of this administration is to reduce trade barriers. Interesting thing about what I am about to tell you on three free trade agreements that we're hoping Congress votes on here pretty soon, is that we are not treated the same way. In other words, they've got their goods and services coming to our country without a lot of tariffs, and when we are trying to sell into their countries, they are taxing it, which makes it much harder to sell. Reasonable policy says to nations, you treat us the way we treat you. That is all we are asking for. We are saying to countries, if your goods and services are coming here, which by the way are good for the consumers -- like if you're a consumer, you want a lot of choices, you want a lot of -- you want a lot of different options.
But we want to be treated equally, too. Good trade policy is fair trade policy. So these trade agreements I'm about to describe to you level the playing field. When I say level the playing field, it means we will be treated equally and that is important because we can compete with anybody, any time, anywhere, just as long as the rules are fair. That is what I think. I think our workers are the best in the world. I said in the State of the Union the other night, lets open up and the level playing field, open up the markets to the best workers in the world --
LEMON: President Bush in Torrance, California, at a helicopter factory speaking about the economy today. Also talking about some things he brought up in the State of the Union the other night.
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