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Government Move May Put Consumers On For Bad Mortgages; Investors Praise Plan to Fix Crisis
Aired September 19, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: It's noon here in the East. It is Friday, September 19th. I'm Don Lemon in today for Tony Harris. Here are the headlines right here in the CNN NEWSROOM.
An extraordinary move by the government to stop the bleeding. It would put tax payers on the hook for bad mortgages. The politicians who will inherit the financial prices weigh in. We'll hear from John McCain and Barack Obama.
Investors applaud the plan to fix the financial crisis. Stock surge. Recovering much of this week's dramatic losses.
You're in the CNN NEWSROOM.
We are following all of your financial news here today in the CNN NEWSROOM. It has been a remarkable week in the financial world. It is ending. The case-by-case approach to bailout is transforming into a comprehensive fix. The federal government hopes its proposal will end the credit crisis and calm the fear of sweeping Wall Street. Here what we know right now.
The government would assume bad mortgage debt now held by many financial institutions. By some estimates it totals as much as $2 trillion. Mortgage giants Fannie Mae and Freddie Mac would get additional money to buy home loans. The government has also put an emergency ban on short-selling financial stocks. More about that coming up in just a bit. And the government took steps today to ensure publicly offered money market mutual funds. Don't confuse these with money market deposit accounts at your bank.
All right. Here are the President and the Treasury Secretary talking about the rescue plan just a short time ago.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We believe that this decisive government action is needed to preserve America's financial system and sustain America's overall economy. These measures will require us to put a significant amount of taxpayer dollars on the line. This action does entail risk, but we expect that this money will eventually be paid back.
HENRY PAULSON, TREASURY SECRETARY: The ultimate, tax payer protection will be the stability, this troubled asset relief program provides to our financial system, even as it will involve a significant investment of taxpayer dollars. I am convinced that this bold approach will cost American families far less than the alternative.
(END VIDEO CLIP)
LEMON: Brianna Keilar is getting reaction and details at the White House. Our Kate Bolduan is covering Capitol Hill. Susan Lisovicz is at the New York Stock Exchange.
For the administration to fix or for it to work, Congress must first sign off on this plan. Straight to Capitol Hill now and CNN's Kate Bolduan. Kate.
KATE BOLDUAN, CNN CORRESPONDENT: Well it seems, Don, that they've at least gotten over one hurdle. It's been a rare show of bipartisanship here on Capitol Hill. Congressional leaders on both sides of the aisle, both chambers, coming together along with the government's top money men to agree on and pass a comprehensive plan they say they hope everyone can agree on and they can - and it will effectively get the country out of this credit crisis.
So first it started late last night with that late-night meeting where they all came out in a very strong show of bipartisanship across party lines and also to prove to the public and to the market that they are going to be on top of it and that they are going to get something done.
But today what we're hearing is that leaders at least are agreeing on concepts. They still want to hear what this proposal is going to include, but they do agree on concept. The effect that something does need to be done. It needs to have a significant impact and it needs to happen quickly. What we're also hearing now is that lawmakers, they want details. They want to know what the proposal includes. And on top of that list, is who it helps. Lawmakers wanting to make sure that homeowners, struggling homeowners are a major part of the focus here, not just the banks. Listen to the number two house republican Roy Blunt.
(BEGIN VIDEO CLIP)
REP. ROY BLUNT (R), MINORITY WHIP: We want to do the best thing for taxpayers, the best thing for pension funds, the best thing for mom and pop businesses, the best thing for people who have a mortgage that they're concerned about, and I think there's a way we can do that, and we'll just have to see if that's what happens. You know, it's going to take the democratic majority also has to be committed to solving this problem, or it won't be solved.
(END VIDEO CLIP)
BOLDUAN: And what we're hearing already today is that the democratic majority as Roy Blunt says, that they do feel the same way in the sense that they need to come together and it's going to require cooperation to get something done. It's still unclear when the administration's proposal is going to make its way over to Capitol Hill. One democratic aide does say that they hope late this afternoon or this evening and then they're going to be hunkering down in closed door sessions, closed door meetings, to really start picking this apart, hammering it out and trying to get something they hope pass by the end of next week -- Don.
LEMON: Kate Bolduan on Capitol Hill. We appreciate that, Kate.
BOLDUAN: Of course.
LEMON: Well, stocks climbed dramatically today on news of a financial fix. CNN's Susan Lisovicz is at the New York Stock Exchange with the latest on that and the Dow still in plus territory.
SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, Don. I mean this is a big, rally, and it is holding 2 1/2 hours into the session. You know, this is all about instilling confidence in the nation's financial system and what we're getting on Wall Street is a vote of confidence. You know investors have been saying, loud and clear, you've seen play out dramatically this week on Wall Street. Who's next?
If the government enacts successfully a big broad-based plan to absorb all this bad debt and sort of clear the decks, then maybe we can get on solid ground and the nation's banks, banks worldwide, for that matter, will start lending again. You know, the alternative is so much worse, because it could really, really impact an company that is already challenged, but it's been remarkably resilient. So where is this rally playing out most dramatically, Don? Predictably in the financial sector.
We see Morgan Stanley shares up 25 percent. Goldman-Sachs up 22 percent. Merrill Lynch up 26 percent. You get the idea. Now, I should just say, there is one thing about this that makes it somewhat artificial, and that is temporary ban on short sales. Specifically involving hundreds of financial companies. So you know, you have to say, well, if that's really helping them out. But if you look at the Nasdaq, which doesn't have a whole lot of financial stocks, that index is up 3 1/3 percent. That's real close to what the Dow is doing now. so, it's a very positive response across the board -- Don.
LEMON: All right. Susan Lisovicz, thank you very much for that, Susan. You can follow the crisis on Wall Street, the buyouts, the bailouts, falling oil prices, rising gas prices all of it at cnnmoney.com. Make sure you get all the market news and numbers plus expert analysis there. Just logon right now.
So the country's financial crisis is of course issue number one for the presidential candidates today's. In Wisconsin this morning, Senator John McCain laid out his plans for addressing the crisis and he blasted Senator Obama. He said Obama has been too busy benefiting from the current system to change it.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: We've heard a lot of words from Senator Obama over the course of this campaign, but maybe just this once he could spare us the lectures and admit to his own poor judgment in contributing to these problems. The crisis on Wall Street started in the Washington culture of lobbying and influence peddling, and he was right square in the middle of it. (END VIDEO CLIP)
LEMON: Looking at live pictures now at Coral Gables, Florida, where Barack Obama had a speech just moments ago. It turned into a rally and this morning he is backing the federal government's bailout plan. He says he supports efforts to develop a systematic solution to the current financial crisis.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: We are, as everybody knows, facing one of the most serious financial crisis in this nation's history. In the events of last week, from the failure of Lehman, to the bailout of AIG, to the continuing volatility in the market has not just thread trading doors and high rises of Wall Street but the stability and security of our entire global economy. Across this country, Americans are worried about whether they can make their mortgage payments, or keep their jobs or ensure that their retirement is secure. So truly we're all in this together.
(END VIDEO CLIP)
LEMON: Also on the campaign trail this hour, Obama's running mate Senator Joe Biden, holding a rally in Sterling, Virginia.
The government wants to put the brakes on the practice of short selling. A short but thorough explanation coming your way.
(COMMERCIAL BREAK)
LEMON: All right. Live pictures now. Coral Gables, Florida, at a Barack Obama rally. Coral Gables was the site also of a meeting this morning with Barack Obama and his financial advisers. His economic advisers, is probably a better way of putting it. Talking about ways that they plan to fix the economic crisis in the U.S. if Barack Obama does in fact become president. He laid out a four-prong plan just a short time ago saying that he will get back to the public in a couple of days with specifics on it but also saying he wanted to see what the chairman and the Fed Secretary signed off on before he completely endorses their plan as well. Barack Obama will hold a rally here in just a short time. When he starts to speak we'll bring it to you live right here in the CNN NEWSROOM.
We want to move on now and talk about what you're hearing. You're hearing a lot about the S.E.C.'s emergency ban on a trading method known as short selling. Short selling, we've been telling you about it. It is blamed for contributing to the collapse of stock values. Many people don't understand how it works so we found a British reporter who can break it down for you. It's in pounds, but he'll break it down for you. Check it out.
(BEGIN VIDEO CLIP)
LUCY MANNING, REPORTER, LONDON: The idiot's guide to short selling works something like this - if I'm the short seller, for a fee, I would borrow shares from the shareholder and promise to return them. I can then sell the borrowed shares on the market, to say ten pounds a share. I'm betting the shares would have dropped and lucky me, they have, to five pounds. So I can buy them back at a cheaper price. I gave those shares back to the shareholder, but I've made a healthy five-pound profit on each hair share.
(END VIDEO CLIP)
LEMON: All right. Well some of the big firms getting federal bailouts. I hope you understood that. Some of the big firms getting bailouts. Well, they have been big contributors to key members of Congress. CNN's Lisa Sylvester looks at the two-way street of money connections.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): For years, Wall Street has been bankrolling national political campaigns. The people running and working for the firms are now looking to Washington as their new bank. The federal government has come to the rescue of Bear Stearns, Fannie Mae, Freddie Mac and now AIG, with multibillion dollar taxpayer bailouts. Those companies' employees and political action committees are in fact, have been longtime campaign contributors.
According to the Center for Responsive Politic, AIG contributions to federal candidates and committees have amounted to nearly $10 million since 1990. This year even with the company's financial troubles, AIG employees contributed $646,000. For Bear Stearns the total was just over a million dollars. Fannie Mae, $1.1 million in campaign contributions, and Freddie Mac, $555,700.
SHEILA KRUMHOLZ, CENTER FOR RESPONSIVE POLITICS: They viewed it as a good invest to give campaign contributions to members of Congress in particular and especially key members, key committees that have jurisdiction over their issues. In this way they've been able to forestall regulations that has been discussed but not passed for many, many years.
SYLVESTER: Senate banking committee chairman Chris Dodd received the most from AIG, followed by Senator Charles Schumer, another committee member. Presidential contenders John McCain and Barack Obama also received generous AIG contributions. But now the mood in Washington is shifting. Lawmakers say Wall Street has had its way for a long time, and enough is enough.
REP. MICHELLE BACHMANN (R), MINNESOTA: Our heads are spinning right now with the bailout mania. First we told that Bear Stearns was too big a fail then We were told that Freddie, Fannie, were who big to fail. And then we were told that AIG was too big to fail. What's next? Starbucks, too big to fail.
(END VIDEOTAPE)
SYLVESTER: These Wall Street firms know how to play the game. When Republicans were in control of Congress they received more in campaign contributions, than when democrats took over, and the number shifted. Suddenly democrats were receiving more from the employees of these corporate giants. And these numbers are just the campaign contributions. That doesn't include the millions spent on lobbying by the companies themselves. Lisa Sylvester, CNN, Washington.
LEMON: Thanks, Lisa.
In the 1960s some black students were expelled from school for taking part in the freedom ride of the civil rights movement. Now one school has made good in its mistake in a very big way.
(COMMERCIAL BREAK)
LEMON: So after eight days of hurricane-induced spikes, gasoline prices are going down just a little. According to AAA, average gas prices are down for the second straight day. The price of regular dropped nearly three cents overnight to $3.81 a gallon. You're paying an average of $4.10 for premium. One reason for the drop, refineries shut down by Gustav and Ike are getting back online finally.
Murdered in a Maryland jail cell. That's the official ruling in the suspicious death of a 19-year-old inmate accused f killing a police officer. The state's medical examiner says Ronny White was strangled. He was found dead in his cell in June just days after his arrest. White was allegedly driving a stolen car when he struck and dragged a police officer. Investigators now plan to question seven corrections officers at the Prince George's County Jail. They were the only people who had access to White's cell.
Take a look at that video. Just amazing pictures. It's from the 1960s group of brave men and women honored for taking part in one of the biggest moments in the civil rights movement. It's called the Freedom Ride. Before 1960, blacks and whites couldn't ride on buses and trains in the same section together, because of segregation laws. Then when the Supreme Court made that practice illegal in the 1960s, well, southern states, well they just wouldn't listen.
In this documentary, from "Montgomery to Memphis," you can see what happened. In the 1961, hundreds of people tested the law boarding buses and trains and sitting in white sections. Those rides resulted in some of the most violent clashes the civil rights movement has seen.
Joining me now is Bill Harbour. He was expelled from Tennessee State University as a freshman who took part in those rides. Thank you very much, sir, for joining us today and taking time.
As I understand, you are - you graduated from college. You went back and got another degree, but you had an honorary degree now. How does that feel like to you after all these years?
BILL HARBOUR, FREEDOM RIDER: Yes, after I got out of Tennessee State University, we sued the state of Tennessee, and they let us back in school, and I went back and graduated in four years. 47 years later, they honored me yesterday with a degree, bachelor's degree. As a matter of fact, I got it today. You're showing yours. How do you like that?
LEMON: You're very proud of that. Right?
HARBOUR: Very proud of it. Thank you very much.
LEMON: When you look back on all these, after all these years, and you look back on what you've done, would you change anything? Would you go on those rides, freedom rides again? And as you're saying that, let's look at your mug shot from jail there.
HARBOUR: Oh, OK. I still would go on the same freedom ride again. It was very necessary. We changed the fabric of this nation. Even during the time that, it was in Nashville, Tennessee, before we went on the Freedom Ride, we demonstrated downtown, in movie theaters, in cafeterias and lunch counters and so forth. So when the freedom ride came up, I had already been to jail four, five times to try to change the injustice of the society. Even in Nashville, Tennessee.
LEMON: It's amazing to me. And you know, I often ask my parents and family member whose went through the civil rights movement. You know, I guess a similar question is with the threat of death or bodily injury and harm and what have you, how did you get the courage to do all of this?
HARBOUR: Well, I guess probably from my family. I came from a very religious background and we knew that things might have happened. As a matter of fact, they tell a story that we made out of wheels before we went on freedom ride I always wondered I wished I had a copy of what I made up. I didn't have too much from Tennessee State University, but at age 19 years old, we were willing to risk our lives and end careers (inaudible) yesterday to make a change in this society. And we're proud of that.
LEMON: Yes. And you said that you changed the fabric of society. Without those freedom rides, do you think that we would, even I would have the freedom that this country has today?
HARBOUR: Right. One of the things we have to keep in mind is that - that during that time, before the freedom ride started, they had demonstrations everywhere. Throughout lunch counters throughout Birmingham, North Carolina and also we knew about the struggles, the strategies we've been using and so forth. But that was local. And the freedom ride was a national thing. It shows what happened throughout the United States. The laws had passed on riding the bus and so forth, and we were not trying to change the law. We was trying to test the system that should have been in effect.
LEMON: You know, Bill Harbour, everyone appreciates what you did and as you said changing the fabric of society. So we thank you very much for what you've done and congratulations on your honorary degree. You're a strong man. Best of luck to you.
HARBOUR: OK. Thank you very much.
LEMON: Thank you very much.
I want to get you back now, live pictures in Florida where Barack Obama will be speaking just moments from now. Just a short time ago, probably about 15, 20 minutes ago, he made a speech about his economic plans to sort of quail what he would do as president to quail a struggling economy here in the United States and also make some changes on Wall Street. Barack Obama will be speaking just in a minute in Florida. We will take you back there live as soon as he gets to podium.
Meantime, two U.S. soldiers are killed in Iraq. A fellow soldier is in custody. What happened?
(COMMERCIAL BREAK)
LEMON: All right. Live picture now of the big boards. Stocks doing pretty well today. I should say, the Down up 433 points. We still got about three hours until the close of the trading day which would have been a very busy week. Once the closing bell rings this Friday for everyone there and for people who are even not on Wall Street today trading. People just watching at home. Very interesting week for all of us.
The excitement on Wall street fueled by the administration's extraordinary plan to end the long-running financial crisis and CNN's Brianna Keilar is at the White House to tell us what the President said a little bit earlier and the rumblings there as well -- Brianna.
BRIANNA KEILAR, CNN CORRESPONDENT: And Don, I should tell you there's a lot of discussion of bipartisanship and quick movement on this. We just learned during the briefing from White House Press Secretary Dana Perino that within the last hour, President Bush had been in touch with most of the top leaders in Congress. So House Speaker Nancy Pelosi, Senate Minority Leader Mitch McConnell, Senate Majority Leader Harry Reid -- and that he's planning on speaking with House Minority Leader John Boehner as soon as possible.
But President Bush, we heard him earlier outlining the problems facing the U.S. economy. He called this a pivotal moment. And, for the first time, he discussed a really comprehensive plan for dealing with the financial crisis.
This came right on the heels of an announcement from Treasury Secretary Henry Paulson. And the big headline from announcement was what Paulson referred to as a troubled asset relief program. Basically having the federal government take over troubled mortgage backed securities. Basically, you know, lapsed loans, bad loans, that are sort of decreasing liquidity in the market.
President Bush defended this move to shore up the U.S. economy. He said that it would require a significant amount of U.S. taxpayer dollars, but that the risk of not taking action is too great.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America's economy is facing unprecedented challenges and we are responding with unprecedented action. Secretary Paulson, Chairman Bernanke and Chairman Cox have briefed leaders on Capitol Hill on the urgent need for Congress to pass legislation approving the federal government's purchase of ill liquid assets, such as troubled mortgages, from banks and other financial institutions.
(END VIDEO CLIP)
KEILAR: And that there was that troubled asset relief program that he is referring to. We heard Secretary Paulson earlier say the plan is to work with Congress and to actually push through some legislation by next week. We just heard from -- a briefing from a top economic adviser to President Bush that there will be a lot of discussions between Henry Paulson, as well as Fed Chief Ben Bernanke, with Congress over the weekend, hammering out details so they can begin to write legislation and have it all in the works or finishing up, I should say, Don, by the end of next week.
LEMON: All right. Brianna Keilar at the White House. Brianna, we appreciate it.
You know the presidential candidates are weighing in on the country's financial crisis. Barack Obama, today, came out in support of the government's rescue plan. But Obama also called for economic help for working families. He says "we can not only have a plan for Wall Street. We must also have a plan for main street." Senator John McCain says he would establish a new agency to deal with the financial crisis. He says it would be an early intervention program to help financial institutions avoid bankruptcy. McCain blamed the current crisis on the corruption and manipulation, that's his quote, of the home mortgage system.
Well, we're seeing a shift in the presidential polls. Our senior political analyst, Bill Schneider, take as look.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN CORRESPONDENT, (voice over): The trend is getting clearer. In CNN's poll of polls immediately after the Republican Convention, which averages all of the national polls, John McCain was slightly ahead for the first time. A week later, the race was tied. Now, Barack Obama is three points ahead.
"The New York Times"/CBS News poll gives a more detailed picture. In August, before the conventions, Obama was three points ahead. The Democratic Convention gave Obama a bounce. His lead grew to eight points. Then the Republican Convention gave McCain a bounce. He moved slightly ahead. And now this week's poll puts Obama back into the lead by five points.
What's happening? Two things. The financial crisis is creating anxiety about the economy.
OBAMA: This is serious. This is a major threat to our economy and its ability to create good paying jobs and help working Americans pay their bills.
SCHNEIDER: In "The Times"/CBS News poll, more and more voters are naming the economy and jobs as the most important issue. Those whose top concern is the economy are voting nearly two to one for Obama. Second, the Republican Convention bounce is fading. Specifically, enthusiasm for McCain's running mate, Sarah Palin. She is facing growing criticism. Republican Senator Chuck Hagel told the "Omaha World Herald," "I think it's a stretch."
(END VIDEOTAPE)
LEMON: All right. We'll get back to Bill's piece hopefully on CNN a little bit later.
We're going to get you now to Coral Gables, Florida, where Barack Obama is speaking, holding a rally now. Let's listen in.
(JOINED IN PROGRESS)
OBAMA: But as I stand here with all of you, I know that this isn't just about politics for me. This is personal. Because I come here today, not just as a candidate for president. I come here as a son and a grandson, as husband and a father, who has seen firsthand throughout my life the challenges so many women face every day in this country.
You know, growing up, I saw my mother struggle to put herself through school while working, while raising me and my sister on her own. She once had to turn to food stamps to make sure we had enough to eat, but thanks to student loans and scholarships, she was able to get her Ph.D., she was able to make sure we went to the best possible schools in the world. I think women like her, who work hard and pour everything they've got into their kids, should be able to pay their bills and get ahead. And that's why I'm running for president of the United States, because I think about my mother.
You know, I saw my grandmother, who helped raise me. She had worked on a bomber assembly line during World War II while my grandfather was away. She was raising her baby at the same time. But she never was able to go to college, even though she was probably the smartest person I knew.
And so she went to work as a secretary, in the secretarial pool. And over the years, she was able to work her way to middle management at a bank. And she wasn't the financial rock of our family, but during all those years, even though she never complained, I saw her hit a glass ceiling as men no more qualified than she was, and sometimes less, were moved up the corporate ladder ahead of her. So I think women like her should be paid fairly and have the same chance to succeed as everyone else. And that's why I'm running for president of the United States of America, because I'm thinking about my grandmother.
I've seen my wife, Michelle, who is like that Chaka Khan song, "I'm every woman." She has got everything going on. The rock of the Obama family. Juggling work and parenting, with more skill and grace than anyone I know. But -- and she's had to put up with her knucklehead husband running for president.
But I've seen her -- I've seen her struggle sometimes. I've seen how it's torn at her. How sometimes when she's with the girls, she's worrying about work. And when she's at work, she's worrying about the girls. And it's a feeling I share every day. Especially these days when I'm away so much out on the campaign trail.
And I think about the fact that we have so much more than so many other families who are having a tough time affording daycare. Maybe can't even find a baby-sitter and can't figure out how to pay for that additional help. And I think to myself, it should be a little easier for parents in this country to raise their children and do their jobs, getting a little bit of a break once in a while on child care, making sure that family leave is there when a child gets sick so they don't lose their jobs. That's why I'm running for president of the United States of America.
I know how hard the women of this country are working. I know the anxiety so many of you are feeling right now as we stand in the midst of the most serious financial crisis in generations. We've seen three of America's five largest investment banks fail or be sold off in distress. Our housing market is in shambles. Monday brought the worst losses on Wall Street since the day after September 11th. Everywhere you look, the economic news is troubling.
But for so many of you, it isn't really news. It really isn't news at all. You know, you've seen -- you've seen your home value falling. You've seen gas price -- all right. Hold on, guys. Hold on. Hold on, guys. Hold on. Hold on. Hold on, everybody.
Hey, young people out there, it's no problem for you to put your signs up, but let everybody -- let me finish what I have to say. All right? Come on, guys. All right. So -- you -- it's all right.
So you've seen your home values falling. Gas prices rising. Bills piling up month after month. So you're working longer hours, or working more than one job just to get by.
And then there's the jobs that you do once the work day ends. Jobs like paying bills. Like buying groceries. Like making dinner. Doing the laundry.
All right, guys. See ya. All right. All right. All right. Let's get back to work. Let's get back to work. Settle down, everybody. Let's get back to work.
You know, even though the market crisis is getting everybody's attention right now, even though it's almost like we've got a hurricane sweeping through Wall Street, there's been a quiet storm going on for a lot of families for years now. It's not news to them that the economy's not working. And what they've been looking for is so modest (ph). You know, most people, what they're looking for are jobs that pay the bills. That they've got enough money to buy groceries and make dinner and doing the laundry and enforcing bedtimes. All the jobs that parents do and women especially do, even if they don't get paid for it, but that hold families together.
Now, that's the thing that I always think about is, is how many jobs women have. And jobs that still, even in the year 2008, too often fall just on the women in the family. But let's be clear. While women have been hit especially hard by this economy, so many of the challenges you face -- equal pay, child care, balancing work and family -- these aren't just women's issues.
When a job doesn't offer family leave, that also hurts men who want to help care for a new baby or a sick parent. When there's no affordable child care or after-school programs, that hurts children who wind up in second-rate care, or in front of the TV, or out getting into trouble. When women still make just 77 cents on every dollar that men make, black and Latino women making even less, that doesn't just hurt women, it hurts families who find themselves with less income and have to work even harder just to get by.
So you think we'd all be in agreement at this point on these issues. You'd think that solving these problems would be a high priority for anyone running for president in this country. Well, you haven't met my opponent, John McCain.
Now, it's not that Senator McCain doesn't care about what's going on in the lives of women in this country. It's -- I like to think it's just that he doesn't know. Because why else would he oppose legislation to help women get equal pay and suggest that the reason women aren't paid fairly isn't because of discrimination on the job, but because they need more education and training? He must not understand. He must not know.
Why else would he say that Roe versus Wade is a flawed decision and run away from a platform -- and run on a platform to outlaw abortion? Even in cases of rape and incest. Why else would he propose a health care plan that actually taxes your health care benefits for the first time in history and gives insurance companies free reign to discriminate against women with histories of breast cancer and heart disease and other illnesses? He must not know.
Why else, other than just being plain out of touch, would he claim that we've made great progress economically under George Bush? Why else would he have, as the architects of his economic plan, the man he wants to put in charge of the Treasury Department of his presidency someone who said that we're just suffering from a "mental recession" and that we've become, and I quote, "a nation of whiners." "A nation of whiners."
Tell that to the student I met, a young woman I met in Iowa who was working nights, sleeping just three hours a day, even while she was going to school full-time, because she had to take care of her sister's health care. She wasn't whining. She was just wondering why the federal government wasn't giving her some help.
Tell that to the folk whose get up early to check the homework and pack the lunches and work all day and then head to those community college classes at night because they want more for their kids. Tell that to the military spouses who stay strong through third, fourth and fifth tours of duty, saying grace night after night with the same empty seat at the table.
I don't know who John McCain's been talking to, but these are the women I've met on the campaign trail. Women who no matter what they're facing don't complain or ask for special treatment or deference or an easy way out. Most of you here today, you just work hard and sleep less and do the best you can with what you've got.
You're not whiners. You're the backbone of our families and our country. And it's time had you a president who knows what you're going through and will fight for you for a change. And that's why I'm running for president of the United States of America.
And I know many of you here and across . . .
LEMON: OK. A rally in Coral Gables, Florida. Barack Obama giving a speech there, just moments after he met with his economic advisers and talked about this plan to help out the struggling economy in the U.S.
And if you were watching and paying attention here, you saw some protesters in the crowd. Very rowdy protesters. There you go. Can we hold that. Can we freeze that shot. If we can back up. Hang on. Back up that shot and freeze it close up, because we want to see exactly what's on those signs.
If we can back that shot up and freeze it, because it says, "blacks against Obama." And then there was something of "Obama endorsed by the KKK," or what it looked like to me, hold it there. Right there. Freeze there. "Obama endorsed by the KKK." And then there's something that looks like it says Michelle, wrong or something like that. "Blacks against Obama," "Jesse Jackson hates Obama" and "Federal Child Support Act Michael" something -- that we can't read there. Michael what? "Michael warns." OK. So we're I'm looking at this -- at this shot just as you are here. We couldn't make it out as the event was going live. But those are those protesters. "Blacks against Obama." Have not heard of this.
But just getting some specifics from our people on the ground here. Obama's "Women for Obama" rally was just interrupted by a group of approximately six African-American protesters looks like more than that to me -- holding signs that said "Blacks again Obama" and then what we said to you earlier, "endorsed by the KKK." And signs that said "Obama was for gay marriage and abortion." There were two signs that said "Obama endorsed by the KKK."
Obama originally said that they could stand and hold their signs, but when they wouldn't stop yelling, they were escorted out. You saw that live on CNN.
OK. So there you go. John McCain will be speaking from Blaine, Minnesota, in the next hour. We had a very interesting rally from Cedar Rapids yesterday for John McCain and this one as well from Barack Obama. And this is Blaine, Minnesota, right there, where John McCain is about to speak. And as soon as that happens, we'll bring it to you in the 1 p.m. hour Eastern here in the CNN NEWSROOM.
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LEMON: A Florida family loses a son in Iraq, but they're at a loss as to exactly what happened. The family of Sergeant Darris Dawson say the Army can't even tell them what happened to him. All they know is that he was shot by another soldier.
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DARRYL MATHIS, HAS QUESTIONS ABOUT SON'S DEATH: We know he was in a dangerous situation when he went over there. We know that. But to not know what happened, that's the thing. That's the most puzzling. That's the most hurtful thing at this point. And to get bits and pieces from the media, it just is not right.
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LEMON: Well, CNN's Cal Perry is in Baghdad. He is tracking this story from there. Plus, he has spoken by phone with this family. And I was wondering what they are saying and what people are saying about it there, Cal?
CAL PERRY, CNN CORRESPONDENT: Well, I spoke to the family. The father, Darryl, and stepmother, Maxine, all day yesterday and I heard very similar things to that. But also things that send chills down my spine.
We're talking about Sergeant Darris Dawson here. Twenty-four- years-old. He was shot and killed on Sunday by another U.S. soldier. He leaves behind four kids, all under the age of four.
And this really -- he death was foreshadowed, his stepmother says. She says that he told her he was more shaky sometimes about the soldiers around him. He described them as being young, as being jumpy. And he said, you know, I'm more worried about them than I am the enemy at sometimes.
And I spoke to his father, Darryl, who's a veteran himself, and he says, you know, the military cannot even tell us what happened to our son. We're getting these reports from the media. We're hearing what you're telling us.
But the officials here, the grievance officer who's been assigned to us, won't even confirm that he was shot by a fellow U.S. soldier. But yet the U.S. military has these press releases on Wednesday. One was drafted in the U.S. by a commanding general. It was not distributed to the media, which it normally is, in which he sort of describes the incident as a friendly -- not a friendly fire incident, but an incident in which a U.S. soldier raised up his weapon and killed these two other soldiers.
The last thing that Maxine said to me, that's the stepmother of the soldier who died, she said that this was a needless and a useless death. So, really, a tragedy compounded by a real disconnect here of information from the military to the family.
LEMON: All right. Our Cal Perry joining us from Baghdad. Thank you very much for that, Cal.
Want to get you live now to Sterling, Virginia, where we are awaiting Joe Biden to there you see his wife at the microphone. She's doing the introductions there. He is going to speak here in Sterling, Virginia, in just a little bit. Probably offer up some information about the economy as well.
He is not traveling with Barack Obama. We saw that Sarah Palin and John McCain were traveling both together. But they have separated. Barack Obama in Florida today, Joe Biden in Sterling, Virginia.
Just as soon as he steps to the podium, we'll bring it all to you right here in the CNN NEWSROOM. You won't miss any of it.
Meantime, tough news for the victims of Hurricane Ike.
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