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Examining the White House Bailout Plan; Will Congress React to the Crisis?

Aired September 20, 2008 - 11:00   ET

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

BETTY NGUYEN, CNN ANCHOR: We will see if that happens for Congressional approval by Friday. That is when Congress is scheduled to adjourn. Now, the price tag for this extraordinary government intervention into the private sector, well over half a trillion dollars. Probably more, says the experts. How bad is it? One senator says the U.S. financial system was just days away from collapse. His words, the president's tone at the White House today, well, it was a sobering reminder as well.
(BEGIN VIDEO CLIP)

BUSH: My first instinct was to let the market work, until I realized upon being briefed by the experts how significant this problem became. So I decided to act and act boldly. It turns out that there is a lot of inner links throughout the financial system. The system had grown to a point where a lot of people were dependant upon each other. The collapse of one part of the system wouldn't just affect a part of the financial markets. It would affect the average citizen.

(END OF VIDEO CLIP)

RICHARD LUI, CNN ANCHOR: It's a complicated crisis no doubt. Our correspondents will help us break it down for you on this day. Kate Bolduan watching negotiations on Capitol Hill for us, Poppy Harlow with some of the details on what we will be on the lookout here for he next week. Let's first start with Kate Bolduan. Are negotiators making progress this morning? Kate we normally don't talk about business so much on the weekend but boy, they have a lot to do today.

KATE BOLDUAN, CNN CORRESPONDENT: They do have a lot to do today. It's going to be a very busy weekend for them all. It's hard to tell right now if negotiations are making progress right now. I know a lot of people are still just trying to gather and figure out how are they going to move forward and who they need to talk to. But you can guess the lawmakers and their staffs are definitely in discussion over the weekend. And as you mentioned, they have a lot to talk about. This proposal would grant the government a very broad power aimed at taking on the country's financial crisis.

But here are the highlights of the proposal as it stands now and what Congress is looking at. The treasury is asking Congress for $700 billion, money to be used to buy up bad mortgages from financial institutions. This authority would expire in two years. Now, all of this is what Congress is looking at right now. We're hearing from staffers that they're definitely talking about it. But it's not up to Congress to act. The ball is in Congress' court because they do need to take legislative action. What we're hearing from Congressional sources is that the treasury at this hour is set to hold a briefing with some Congressional staffers to talk about the plan. We also hear from other sources, republican sources, that house republicans are set to have a conference call around noon. So clearly they're working on it.

But the big question remains, and we always talk about this, is can Congress maintain this bi-partisan spirit that we've seen over the past few days? It's a very rare thing to find up here on Capitol Hill, especially during an election year. And the big question is, can they maintain this bi-partisan spirit and move quickly? We'll definitely be watching Richard.

LUI: Kate, the question might be deadlines. What's being discussed in terms of next week?

BOLDUAN: The fact that the treasury was able to get this proposal overnight over here does get the ball moving earlier than some had even anticipated. We're hearing everything in terms of timing from early next week passage or possibly at the end of next week passage. Leaders have said that they're definitely prepared to stay longer, if need be. Of course the government, the Bush administration, is pushing them to move as quickly as possible. But things do take some time here on Capitol Hill.

LUI: That's right, break out the diet coke and donuts there on the capitol. Thanks so much.

NGUYEN: You know a lot of comparisons this week between the current financial crisis and the savings and loan debacle of the 80s and early 90s. So is that a reasonable comparison? Poppy Harlow with cnnmoney.com is going to tackle that for us and as we look back to those times and these times, I don't know, is it fair to compare them?

POPPY HARLOW, CNNMONEY.COM: You can certainly compare them Betty but if you look at the raw numbers, it's really apples to oranges. So we'll go through this first number for everyone out there. $700 billion, that's what's being proposed. The size of our economy right now, our GDP, that's just about $14 trillion. So this is sizeable but it's not unprecedented. Back in the late 80s, early 90s, we saw huge government intervention during the S and L, the savings and loan crisis. That created something called the resolution trust corporation. They intervened in a different way but it was a massive investment. Take a look though at what the government has done just this month. The $200 billion bailout of Fannie Mae and Freddie Mac. We could see up to $200 billion there. This week alone, $85 billion in a loan to AIG, that insurance giant, to save it. Now, $700 billion proposed to essentially purchase troubled mortgage-related assets from the banks and brokerages in this country, get them off the banks books. And try to liquidate the market a bit more, get the market all oiled up and the economy back on foot. Betty?

NGUYEN: As they are working on this big plan to the tune of $700 billion, a lot of investors are looking toward this next week. What should we be keeping our eyes on?

HARLOW: It's interesting because a lot of the experts will say almost everyone says the root of this problem is the housing crisis. That's at the heart of all of what's going on now. Coming up on next week on Wednesday and Thursday, we're going to get two really key August home sales reports. That will give us a look at how our housing market stands now. Then, Ben Bernanke, the fed chief, he is going to appear on the hill three times next week. That is huge, we'll have to hear what he says. Then on Friday, to wrap up the week, we'll get a look at consumer sentiment, a reading by the University of Michigan on how people feel our economy is right now. Those are all going to play in here as well, Betty. That's going to be key coming up next week.

NGUYEN: It's going to be a big week on many fronts. Poppy Harlow joining us live with cnnmoney.com, thank you.

LUI: That's right, a lot of folks just watching the news here on this issue of the financial crisis and for many ordinary U.S. citizens, the bailout involves an incomprehensible amount of money and complicated legislation as well. We'll help you see through the muddle today. Brad Aarons writes a personal finance column for "The Wall Street Journal," he'll be along in the next half hour with some very good advice. Listen to this, what should you be doing right now to protect your finances? We'll have that.

Also tonight, a special "Your Money" emergency edition, two hours beginning at 6:00 p.m. eastern, CNN's money team, Ali Velshi and Christine Romans digging into the week's financial turmoil, no two better at it. All the information you need to feel more secure. Plus, then, at 7:00 p.m., they will be taking your phone calls live. Get the answers on this two-hour special, "YOUR MONEY", emergency edition, it starts tonight at 6:00 p.m.

NGUYEN: Let's check in on what the presidential candidates are doing today. We want to give you some live pictures right now from Daytona Beach, Florida, where we understand Senator Barack Obama will be holding a rally. In fact, is holding a rally. Polls show the race between him and John McCain are tightening in that state. Meanwhile though, Senator McCain doesn't have anything scheduled for today but yesterday, he did campaign in Minnesota where the race is also very close. And, whoever wins the presidency will have to deal with this country's financial crisis, no doubt. CNN's Mary Snow looks at what the next president inherits.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): The administration is hoping its rescue plan will be the end game to solving the current financial crisis. Its price tag isn't fully known.

HENRY PAULSON, TREASURY SECRETARY: We are talking hundreds of billions.

SNOW: For the next occupant of the White House, whether it's John McCain or Barack Obama, it means limits. ANNE MATHIAS, STANFORD GROUP: Certainly, larger federal budget deficits and the need to focus on financial sector regulation is going to make just time and attention and money available for other programs a little bit tighter.

SNOW: In fact, it could put the squeeze on the signature issues. One tax and budget expert says the costliest part of Senator McCain's plan is his tax cutting proposals.

LEONARD BURMAN, URBAN-BROOKINGS TAX POLICY CENTER: I have no doubt that Senator McCain intends to make big cuts in spending, but if you believe what he says on the stump, he would have to cut back spending to its level in the 1950s before we had a national highway system, Medicare or Medicaid.

SNOW: For Barack Obama, experts consider his health care proposal the costliest of his plans and expect the realities of (INAUDIBLE) constraints to scale it back.

MATHIAS: From a realistic standpoint in terms of Barack Obama's health care programs, we don't expect to see a major change in the U.S. health care system in the first couple of years of his presidency. That prediction I think becomes even more firm given the amount of tumult that's going on right now.

SNOW (on camera): Some experts say that the government's rescue plan may in the end actually make money. And if that happens, that could actually help the next administration. But right now, no one is counting on any rosy scenario. Mary Snow, CNN, New York.

(END OF VIDEOTAPE)

NGUYEN: You can hear more from the candidates on CNN's "Ballot Bowl." Extended excerpts from the campaign trail, the candidates unfiltered in their own words, "Ballot Bowl" starting at 2:00 p.m. eastern today only on CNN.

LUI: Breaking news for you this morning coming out of Pakistan, a key ally on the war on terror in the United States. A large explosion has ripped through downtown Islamabad. Police saying a car bomb killed at least 20 people and wounded 25 more at least. The blast has caused a natural gas leak as well that set the Marriott hotel on fire where many westerners stay. The blast came just hours after Pakistan's new president promised a joint session of parliament that he would root out terrorism in the end there.

Getting supplies to those in need, you'll see how far some victims of Ike have to go to get help.

(COMMERCIAL BREAK)

LUI: It's been one week since hurricane Ike slammed into Texas. Understandably here, evacuees are eager to get back home. Now there is a plan to make that happen in the Galveston area beginning late next week. The town's 45,000 evacuees will be allowed to return in phases, starting from the least damaged areas. But it's going to be tough because there is still no power, limited sewer services and spotty water utilities. Although some businesses are beginning to reopen and cell phone service is improving things aren't necessarily easy. In Houston, the power is back on for about half of the residents there and downtown streets are reopening after Ike blew out skyscraper windows.

NGUYEN: With so many services still crippled, millions of Texans are relying on National Guard members or relief agencies to bring them ice, water, food, all of those necessary supplies. And in some areas, they can't dish it out fast enough. CNN pentagon correspondent Barbara Starr has the story from Dickinson, Texas.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): At McAdams Junior High School in Dickinson, Texas, the line forms early. Texans waiting for food and water.

CAPTAIN ANTHONY ZISSIMOS, TEXAS AIR NATIONAL GUARD: Right now, we are distributing ice, because we ran out of all of our other supplies yesterday.

STARR: Three neighbors, including one senior citizen, trying to get food. They have nothing.

JOE JONES, RESIDENT: A freezer full of meat and all that's just gone. We have to do something. I have to get on this bicycle and do something.

STARR: The people keep coming.

ZISSIMOS: We are averaging about 20 cars every five minutes that we are loading supplies in. We ran out of food probably in about 4 1/2 hours.

STARR: These men pedaled four miles on their bicycles to wait. Word was the trucks of food were on the way. Erick Jones needs clean water, especially for a new baby.

ERICK JONES, RESIDENT: Water and whatever else they have in those trucks, we trying to get it.

STARR (on camera): Some trucks have just arrived in a convoy and the troops here are hoping that when they open the back of the trucks, there will be fresh supplies of food to hand out to the people who need it so desperately here in this region.

(Voice-over): The men get the precious cargo. The next challenge is to get it home.

PATRICK DAVIS, RESIDENT: We're going to get it there. We're going to pack it, we're going to put it on the handle bars, however we got to get it there, I have to take care of my family.

STARR: Finally, a small victory against the hurricane. Barbara Starr, CNN, Dickinson, Texas. (END OF VIDEOTAPE)

NGUYEN: If you would like to get involved with relief efforts for the victims of hurricane Ike, all you have to do is go to our website. There you will find links to organizations working in Texas along the gulf coast and in the Midwest. That's at cnn.com/impact.

(WEATHER REPORT)

LUI: Now, we take you to Florida for the first time there in years. Both of NASA's space shuttle pads, they are full. You can see one on the left and one on the right in this picture "Atlantis" and "Endeavor" parked side by side. Now Atlantis set to take off next month with its crew to make one final repair on the Hubbell space telescope. The crew faces a bigger chance there than usual that a piece of space junk could damage the ship because Hubbell has a lot of debris around it. "Endeavor" is on deck in case there's a problem on "Atlantis" ready to go help them out and to rescue the crew if necessary, because it will not have enough air that it can go past 25 days.

NGUYEN: They won't be hooked up to the international space station where they do have what they need to survive until someone can come pick them up. So this is necessary, hopefully, they won't need it, though.

In the meantime, though, John McCain accuses Barack Obama of profiting from the failures of mortgage giants, Freddie Mac and Fannie Mae. CNN's truth squad fact checks that claim coming up.

(COMMERCIAL BREAK)

NGUYEN: This week, John McCain accused Barack Obama of profiting from two giant mortgage failures.

LUI: Fact or fiction is the question? Our own Josh Levs is here to sort that all out for us. Hey, Josh.

JOSH LEVS: Hey there. This is an interesting one to break down because it's kind of like we're going to take this attack and put it behind an x-ray machine. So you can see the anatomy of how one of these attacks works. As you know, Fannie Mae, Freddie Mac, these symbols to a lot of people of the nation's economic mess. A lot of people -- the idea of this presidential race is if one of them can link the other to Fannie or Freddie, it will obviously look bad. Because some people think they're symbols of corruption. This is what John McCain is now saying about Obama.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: While Fannie and Freddie were working to keep Congress away from their house of cards, Senator Obama was taking their money. He got more, in fact, than any other member of Congress, except for the democratic chairman of the committee that oversees them.

(END OF VIDEO CLIP)

LEVS: All right, is that true and where is he getting it from. Let's go straight to a graphic. This is what he's talking about. There is this website called opensecrets.org, that's from the Center for Responsive Politics. They have compiled all the contributions from Fannie and Freddie employees to all lawmakers. So this would include Obama's Senate race and his presidential race. He got 126,000 dollars and he is indeed second after Senator Christopher Dodd, who is in fact chairman of the Senate banking committee. There are two things I want to show you now on the screen behind me. To put that $126,000 figure in context. First of all, the same website says Obama has raised $390 million in this presidential race alone. So if you have $126,000 counting as profiting, it's kind of a question. McCain himself over here has gotten about $21,000 himself as well. Now, here is the whole other figure I want to show you on the second graphic, let's go there. Because this is going to suddenly seem like, what? This here is from "The New York Times." They say, when you look at contributions from directors and officers and lobbyists associated with Fannie Mae, McCain has actually gotten $169,000 from them and Obama has gotten $16,000 from them. So there are two totally different ways of looking at it. So you know our verdict on this, when we looked into this at the truth squad was that McCain's attack is technically partially true but it's also misleading. Speaking of all that, coming up later this hour, we're going to look at an attack from Obama who is trying to link McCain to lobbyists and see if that is true as well.

So there you go Richard and Betty, you can see the idea there, you can see what they are basing these claims on and the ways that they can kind of get away with it even if it isn't a totally accurate representation of the truth.

NGUYEN: So you cleared it up, it's kind of true but not really, basically right?

LEVS: He has something to back it up but it's definitely not the whole true picture I can tell you that.

NGUYEN: Got you.

LUI: X-ray man, Josh Levs.

NGUYEN: Thank you Josh.

Something else that you don't want to miss right here on CNN tonight at 9:00 p.m. eastern, "The Next President, A World of Challenges." Five former secretaries of state have advice for the next president. Christiane Amanpour and Frank Sesno get the answers for you, that's tonight, 9:00 p.m. eastern only on CNN.

LUI: Now a question that a lot of you are asking, should you pull your retirement money out of the stock market? That's just one of the questions being asked because of America's money crisis.

(COMMERCIAL BREAK) LUI: A lot is happening right now. Here and around the world, lawmakers, first off, are going over the largest financial bailout plan since the great depression. The Bush administration is asking Congress to let the government buy up to $700 billion in bad mortgages. President Bush saying this morning the risk of doing nothing far outweighs the risk of the package. Also for you, a deadly blast outside a Marriott hotel in the Pakistani capitol. At least 20 people are dead, more than two dozen wounded after a car bomb exploded there. The hotel in the center of Islamabad is on fire. There was no immediate claim of responsibility. With more on all of that joining us now from Islamabad is Reza Sayah. Reza, as you learned more about what has happened there, any indication as to who might be behind this?

REZA SAYAH, CNN CORRESPONDENT: Well, it's much too early, Richard. As is often the case, there is always going to be speculation that it is the Pakistani Taliban and links with al Qaeda. A horrible scene in Islamabad on this Saturday night. A massive explosion right in front of one of the most popular destinations for foreigners and western journalists, the Marriott hotel. This will go down as one of the worst and deadliest attacks ever in Islamabad, just a horrible scene. The death toll right now stands at 20 people killed, 20 injured. Police officers say expect that death toll to go up. This incident happened about 8:15 p.m. local time on this Saturday night. Let's give you an idea how massive this explosion was. The CNN bureau is located about two or three miles away from the Marriott hotel. I was sitting behind my desk, behind my computer. The entire bureau all of a sudden roared and rumbled, seconds later, some of the windows shattered. The explosion was so loud and so large, we thought it was right outside of the bureau. But we turned on the television sets, we learned that it was at the Marriott hotel. We hopped in the car. We went there. We just saw an awful, awful scene. The hotel has five floors. Initially when we got there, two of the rooms were on fire. Police officers were saying the bomb sparked a gas leak and a fire ensued. 30 minutes later, the entire left half of the hotel was an inferno. There were cars mangled, trees sheered off. Lots of bloody victims being dragged out by rescue crews. This incident comes just hours after Pakistani president addressed the parliament for the first time ever as the Pakistani president. In that address he said one of his missions was to root out terrorism. This is clearly an indication that these militants are here. They're going to have to be dealt with. Again, this will go down as one of the deadliest attacks in Islamabad. Richard?

LUI: All right Reza Sayah with the very latest from Islamabad. This is happening this morning. Thank you for the latest there.

NGUYEN: Back here in the U.S., the financial meltdown that we saw this week has many asking, who is to blame for all of this. As Lisa Sylvester reports, many are not happy with Congress and lawmakers are about to break for the election having agreed on very little to deal with issue number one.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Congress is scheduled to adjourn by the end of the month with a very long to-do list. Lawmakers have a monumental, financial crisis on their hands. But they also must pass legislation to keep the government running. Only one of 12 appropriations bills have been passed by the house, none passed by the Senate.

Then there is the stalled energy bill, still no action to address high gas prices and looming deadlines on taxes. Unless Congress acts on the alternative minimum tax, more than 22 million middle class families will face higher tax bills.

BRIAN DARLING, THE HERITAGE FOUNDATION: I would say the American people are not getting their money's worth in Congress. They have both republicans and democrats that aren't getting the job done. Americans are very dissatisfied with Washington, D.C. President Bush's approval ratings are low. Congressional approval ratings are at record lows.

SYLVESTER: This was supposed to be the new and improved Congress. Democrats promised this time they would not be a do-nothing Congress. Why the gridlock?

DAVID WASSERMAN, COOK POLITICAL REPORT: We have a divided government. The president and Congress can't seem to agree on drilling, they can't seem to agree on a stimulus package right now. That's why Congress is probably going to go extra innings.

SYLVESTER: As the clock winds down, lawmakers will likely pass what's called a continuing resolution to keep the government funded past the fiscal year start of October 1st. Other issues are likely to be shoved to the back burner as Congress tries to figure out a way to shore up the shaky financial markets. Lisa Sylvester, CNN.

(END OF VIDEOTAPE)

NGUYEN: So where do you stand in all of this? Well Brett Arends writes a personal finance column for "The Wall Street Journal."

LUI: He joins us live right now from Boston. Good morning to you my friend, Brett.

BRETT AARONS, "WALL STREET JOURNAL": Good morning, how are you?

LUI: Good, you're about to make us better aren't you? You have a top 10 list. There is so much happening, Brett. We were looking at your top 10 list about how we crisis proof our investment portfolio. One of the issues is about insurance, right? How we look for investments that are insured.

ARENDS: That's right. I wrote that at the beginning of this week, quite an extraordinary week. It's been overtaken by events. I got swamped with e-mails from people who were scared to death about their insurance policies. This is how deep this crisis of confidence went. People were scared about their money market funds, their insurance policies, their bank accounts. In terms of insurance, one of the things that people need to understand is that there are a number of buffers between the AIG crisis on Wall Street that you're hearing about and your AIG policy with a local or state-regulated AIG subsidiary. There are a number of buffers. There is every reason why even if AIG stock went to zero on Wall Street, your insurance policy would still be safe. You do not need to panic. There is no need at the moment to panic.

NGUYEN: What about these other accounts though, Brett, what about your money market accounts, your savings accounts. You want to make sure that those are in FDIC insured banks, correct?

ARENDS: That's exactly right. With your bank accounts, you want to take advantage of FDIC insurance. There are some wrinkles but generally speaking it's about $100 thousand per depositor. You can move, you can have accounts at different banks and gets you $100,000 worth of insurance. You can also retitle accounts in certain ways. There are wrinkles there. Also with your investment accounts, there's SICP insurance, it works a very similar way. Obviously it doesn't guarantee the value of your mutual funds but it does insure that you'll get your mutual funds back if in an extreme situation, your broker were to fail. Again, it's worth up to about half a million dollars per account, including 100 thousand in cash. There are some wrinkles. You want to look at the details. There is SIPC insurance as well on your mutual funds.

NGUYEN: You say a couple of things in here in your top 10 to-do list. One I found very interesting, you said go ahead and refinance your mortgage. Is this really the time to do that?

ARENDS: If you can. Now listen, mortgage rates have been bouncing around the last couple of weeks. They have, on occasion, dropped very low. What happens is the mortgage rates, long-term mortgage rates are priced off long-term government bond interest rates in normal circumstances. Those long-term government bond interest rates have collapsed. If this intervention that was announced Thursday, Friday, if that helps calm the markets, we should see mortgage rates come down some. Just watch them. If they come down, take advantage.

NGUYEN: We are also seeing, set up a home equity line of credit while you can. You don't think that these are going to be available because of the financial crisis?

ARENDS: Again, this is a question of, if you can. As I said, this was written before the situation verged on the brink of collapse.

NGUYEN: So do you need to amend some of this?

ARENDS: Hey, listen, the situation evolved. I will say this, I wrote a column on Monday. I wrote it late Sunday night entitled, this is a triple oh my god, situation. That was overwhelmed by Wednesday, Thursday. I don't think enough people, particularly some of the talking heads in the media, realized we were on the verge of systemic failure, worse than 1932. We had a run on the bank. It's like the movie, "It's a Wonderful Life."

NGUYEN: Exactly, when everyone goes to the bank. ARENDS: Hank Paulson had to jump on the table and say, I am holding enough cash to meet everyone's needs. Everyone can stop panicking. This had to happen. Without this, we were -- there was essentially a limitless bottom. This had to happen. Thank heavens it happened. I'm surprised it didn't happen a lot earlier.

NGUYEN: Something is being done about it. That's a good thing. But just very quickly, you say, take an ax to your family budget. Look for ways to save cash. Set up that home equity line of credit and refinance your mortgage. All right, lots of good tips for us. Thank you so much, Brett. We do appreciate it.

ARENDS: My pleasure.

NGUYEN: The next president will have a whole lot of cleaning up to do in the wake of America's financial crisis. How do the candidates plan to get all of that done? Do either of them support a federal bank bailout. Our deputy political director Paul Steinhauser joins us now from Cincinnati. He is on board the election express. Paul, what are the candidates saying about this huge financial mess that we're in. It seems like they're pointing fingers at each other?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yeah they are pointing fingers at each other definitely Betty. But they're also talking about what they would do, both John McCain and Barack Obama this morning in radio addresses, kind of reaching out and telling voters some of what they would do. John McCain talking about a prevention program if he was elected president to try to prevent this from happening again. Barack Obama saying you know what, we have to bailout not only Wall Street but Main Street as well. Betty we're here in Ohio, that's Cincinnati right behind me. The race here is so close, the race for the White House. Take a look at our latest CNN poll of polls. Just one point Barack Obama ahead of John McCain, 46 to 45 percent. Our poll of polls averages the latest polls in this state. Take a look at our CNN electoral map Betty, we just updated it yesterday. We moved Wisconsin from lean Obama to battleground. We also moved Missouri from battleground to lean McCain. Because of that, we now estimate that if the election were held today Betty, 223 electoral votes for Barack Obama, 200 for John McCain. 115 still up for grabs. Remember, 270 electoral votes needed to win the White House. This race is tight and it's getting tighter, Betty.

NGUYEN: No doubt. We are watching it day by day. I know this new poll of polls is out within the last 24 hours. What are you seeing with that?

STEINHAUSER: You know, it is funny because in the national polls, you're seeing a slight uptick for Barack Obama. He's rising slightly and John McCain is dropping slightly. But in the states, remember it's all about the states and their electoral votes, it is tight. We're here in Cincinnati. We're heading to Mississippi because remember on Friday night, the CNN election express will be there next Friday night, the first presidential debate. I think that could have a big impact on what voters think about these two candidates. Betty? NGUYEN: Absolutely. A lot of people want to see them go head to head and see how it all shakes out after that. Because that maybe a defining factor in this election. All right Paul, thank you for that.

LUI: While they are polling people, there is more politics to talk about. Barack Obama, attempting to tie John McCain's campaign to Washington lobbyists. But just how much of that assertion is true in the end? We call on our Josh Levs, who is here with a CNN truth squad reality check. Mr. Truth.

JOSH LEVS: Ok, I like that one, from Mr. Reality to Mr. Truth. I can deal with that. This is good. You know something, speaking of that. So we have been doing all of these reality checks on this race for like a year now and I can't believe how often we talk about lobbyists. A lot of this guilt by association stuff. It was true in the primaries too You know the candidates going, you are linked to lobbyists. No, you are. Help, it's a lobbyist. Run the other way. So this is just the latest incarnation of that. Let's take a look at what's just been said.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: This is somebody who has been in Congress for 26 years, who put seven of the most powerful Washington lobbyists in charge of his campaign. Now, he tells us that he is the one who is going to take on the old boys network.

(END OF VIDEO CLIP)

LEVS: Seven lobbyists in charge of his campaign. You know what, we have looked at that here at CNN, in a way, you can say that. Let's zoom in on the board. Our own Ed Henry reported this. It's true, seven top McCain officials were lobbyists though the campaign stresses none is currently registered to lobby Congress. Let's go to this picture that we have of Rick Davis, he's the campaign manager, has done a bunch of lobbying, including telecommunications companies. I am also going to point out that Obama does have people linked to lobbying in his campaign. Let's go back on the board one more time. We point this out here, Obama's campaign isn't without its own members with its history of lobbyists, one Daniel Shapiro is registered to lobby for the American Petroleum Institute. He's an adviser on that campaign. So there are these links. But we really get caught up in this immediate stuff and don't look at the bigger picture. What Obama is saying there is you can't trust him to be the one to stake on special interests. There is a group out there that offers a different perspectives, it's called public citizen and let's got to this graphic here.

They are a group that pretty much tries to tackle people in Congress who are giving in too much to lobbyist. The president says, "Regardless of how many lobbyists are working on his campaign or raising money for him, John McCain fought for 14 long, hard years for reforms that seriously limit lobbyists' power. He has fought for campaign finance reform, limits on gifts and travel from lobbyists, and extensive public disclosure of lobbyists activities." That's a non partisan group there. So there is this broader thing to keep in mind, when you hear these attacks. What do we actually know about how they might govern, instead of who they are linked to? In the meantime but we are going to keep hearing a lot of this Richard. A lot about the lobbyists, the lobbyists and I'm telling you we'll be hearing it everyday through that big vote day on November 5th, coming up fast.

LUI: So Josh, you are expecting to do a lot of fact checks and truth squad work I guess going into the next 40 plus days.

LEVS: Oh, are you kidding? Yeah, we are going to be doing lots of these back to back. And fortunately it's a great joy to do it, you're going to be seeing me throughout the week, all the time. Keep checking them out and obviously if you ever want to see them later on, just go to cnn.com you can see even more detail there, government records, everything that we use to show you the reality.

LUI: All right, we are going to let you go back to your truthing. Josh Levs, thank you so much.

LEVS: That's a new verb, I love it.

LUI: We're making up words left and right here. All right thanks Josh.

Tonight, Don Lemon is keeping the candidates honest. See more of our CNN truth squad, that's at 10:00 p.m. eastern. For the best political team on television, check out cnnpolitics.com as Josh was eluding to there, your source for all things political.

There could be a few surprises too for you, at tomorrow's Emmy awards. HBO is getting a serious run for its money.

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NGUYEN: Yes, that time of year again, picking TV's best. I'm sure you have your favorite. Well tomorrow night, Emmys will be awarded to the best shows and performances of the year.

LUI: What's different this year is that many of the best shows on TV are not on the old mainstream networks or the premium channels. As Brooke Anderson tells us, the television academy is taking notice.

(BEGIN VIDEOTAPE)

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Mad Man's got a groove on and for breaking bad, it's all good. At the Emmy nominations, their network made news.

UNIDENTIFIED FEMALE: What everybody is talking about this year is that AMC has 20 nominations.

ANDERSON: And with that, basic cable has become the belle of the ball.

LISA DEMORAES, TV COLUMNIST, "WASHINGTON POST": For the first time basic cable series being nominated for best drama series. There are two of them, "Mad Men" and "Damages."

ANDERSON: FX's legal thriller "Damages" and AMC's 60's era "Mad Men" are up against "Boston Legal," "Lost," "House," and "Dexter" for best drama. All from broadcast networks and premium cable.

DEMORAES: In the past, the cable programs that were nominated in the series competitions were all on pay cable. More specifically, they were HBO.

ANDERSON: Three basic cable women, Glenn Close, Holly Hunter and Kyra Sedgewick and two basic cable guys, Brian Kranston and John Hamm compete in the drama, lead acting category.

JOHN HAMM, EMMY NOMINEE, "MAD MEN": Cable television has sort of come into its own as the place to watch original, scripted programming.

CHARLIE COLLIER, GENERAL MANAGER, AMC: I think there was a belief that premium cable, cable that you paid extra for was the place where you could get quality TV. You could find it in a number of places now.

ANDERSON: FX was the first stop for "Damages."

DANIEL ZELMAN, CO-CREATOR, "DAMAGES": The basic cable channels are just allowing creators like ourselves to take bigger risks in their programming for whatever reason.

COLLIER: We're taking more risks, we're doing some of the things that HBO and Showtime were known for. Now, people are finding that lower down on the dial.

ANDERSON: With all of cable at the table, this year's prime time Emmy show is anything but basic. Brooke Anderson, CNN, Hollywood.

(END OF VIDEOTAPE)

NGUYEN: There is hope for America's war veterans from one who has actually been there.

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NGUYEN: The NEWSROOM continues at the top of the hour with Fredricka Whitfield.

LUI: That's right. Fred what do you have for us?

FREDRICKA WHITFIELD, CNN ANCHOR: Good to see both of you and good to see you especially Betty, because it's been forever. Like all summer long we've missed each other.

NGUYEN: Traveling all over the place.

WHITFIELD: I know. All right well we've got a lot straight ahead, of course we're going to continue on the Pakistan bombing, we're going to follow that and the developments. Here in this country, South Carolina, plane crash involving some popular names in Hollywood. And then our legal eagles will be back again this weekend. We're going to talk about some interesting cases taking place including O.J. Simpson, the new trial. Tapes and the characters. Our guys can't wait to delve into that. Then the longest serving republican in the Senate now being scrutinized for some alleged royalties. He's on trial as well. We're going to delve into all of these cases and much more straight ahead in the noon hour.

NGUYEN: That's good, a full plate for you.

LUI: That will be good.

WHITFIELD: Yeah.

NGUYEN: All right, thank you Fred.

WHITFIELD: Always going to be good, right?

LUI: Of course!

NGUYEN: The NEWSROOM with Fredricka Whitfield, would you expect anything less?

WHITFIELD: We're just taking momentum that you all carry over each hour.

NGUYEN: All right.

Absolutely. Hey, we have this story for you before we go, though. Leaving home to go to war.

LUI: Coming back after witnessing the horrors of combat, they are some of the most emotional moments of a soldier's life.

NGUYEN: This week's CNN "Hero" is a nearly blind Vietnam vet who understands he's there rain or shine to give our troops the honor and support that they need and deserve. Meet Walt Peters.

(BEGIN VIDEOTAPE)

All right. Here we go. Godspeed. Come home safe. We love you all.

If it wasn't for our soldiers, and our veterans, we would not have this beautiful country. They are our freedom. It's important that they know how proud this country is of them for their service. My name is Walt Peters, and I'm often the last person a soldier sees when he boards the plane.

Be safe. We love you, take care.

And I'm often the first person they see when they return.

Welcome home, young man. We're proud of you.

A friend got me involved with greeting flights through the Red Cross. Now I'm one of the leaders, and I train my volunteers.

Three miles out. Let's go. Four wheels down.

When the soldiers come through I walk around and talk with the soldiers.

Guys, it's so good to have y'all back home.

I'm a combat veteran. I served a lot of time in Vietnam. They know I can relate to them.

If you stay scared, you stay alive. You know what I'm saying?

Yes, sir.

Sometimes it breaks your heart, because you ask yourself, which one of these beautiful people are not coming home? I see the roots of our country and our future in every one of these soldiers.

Get involved. Cnn.com/heroes.

(END OF VIDEOTAPE)

LUI: To see how Peters takes care of soldiers while on duty overseas or to get involved with any of our "Heroes" causes all you have to do is go to cnn.com/heroes, the most outstanding CNN heroes will be honored at an all-star tribute thanksgiving night on CNN.

NGUYEN: Well it is the house that Ruth built but now it is headed for its final inning. The story of Yankee Stadium.

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NGUYEN: It is the passing of a landmark. Tomorrow the New York Yankees close out Yankee Stadium. Say it isn't so!

LUI: I know, it's really hard to believe. They're moving to very luxurious new digs across the street next season. But as CNN's Larry Smith reports for us, nothing can match the original heir.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN CORRESPONDENT (voice-over): When you first walk in, it's not so much the sights, the smells or the sounds of the stadium that get you. It's just that there is so much of it.

UNIDENTIFIED MALE: Without question. I think it can be a little bit intimidating. First time I came, everything just seemed larger than life.

UNIDENTIFIED MALE: When it was built, it was the Taj Mahal, it was the last word in the ballpark. It was the largest. You start with that. The size.

SMITH: Yankee Stadium opened on April 18th, 1923 and it took just three innings and one swing of the bat by the game's greatest player for it to be renamed.

PHIL PEPE, FMR. N.Y. DAILY NEWS SPORTSWRITER: Isn't it wonderful that they came up with the name, the House that Ruth built. I mean to this day, what, 80, 90 years later it's still the house that Ruth built. Everybody knows Babe Ruth. Everybody knows Yankee Stadium.

SMITH: Ruth's blast was just the first word in a volume of the game's greatest history. Lou Gehrig's farewell speech in 1939. Don Larson's perfect world series game in '56 and Roger Mariusz' 61st home run in 61.

How about that? Are the.

SMITH: Even after a complete renovation in 1975 there was Reggie Jackson's three straight World Series homers in 77. And finally Erin Boots shot to again crush the Red Sox in '03. And of course, all of those World Series wins.

UNIDENTIFIED MALE: It starts when you're leaving the clubhouse you're going down into the dugout and you get the Joe DiMaggio sign to touch every day. And then you get out here on the field and the electricity, the noise.

RUDY GIULIANI, FORMER NEW YORK MAYOR: The team made the stadium. It stadium would be just another stadium if weren't for all the world championships, all the pennants, all the great moments.

SMITH: But while the Yankees made the stadium great, all the greats have made the stadium legendary.

TONY MORANTE, YANKEES STADIUM TOUR GUIDE: The first papal mass in the United States, 30 professional championship fights. College and professional football. Soccer, boxing, circuses, rodeos, Negro baseball, Billy Graham crusade, Jehovah witnesses, Reverend Moon.

SMITH: Even those events were often extraordinary. Both the Notre Dame, win one for the Gipper game and the Colts/Giants NFL championship called the greatest game ever played or held in the Bronx, and Joe Lewis, Rocky Marciano and Mohammad Ali all fought on the same field that three popes and a newly freed Nelson Mandela prayed on.

GUILIANI: Says something historically about New York. It's become a very important part of what New York City is all about and it's the place you would think of, of where to hold an event that would signify New York City.

(END OF VIDEOTAPE)

NGUYEN: It's going to be hard to see it go. Tomorrow, though, you want to stay tuned, because I had an interview with Bill Moose from the New York Yankees former first baseman. He's got a lot of history to tell us about Yankee Stadium, and it's going to be sad to see it go, but he is excited about the new one. We'll be looking at the past but obviously toward the future. That's tomorrow, 9:00 a.m.

LUI: Maybe get one of those big letters that they were moving out today, too.

NGUYEN: Yeah, it will probably be on eBay at some time.

The NEWSROOM continues now with Fredricka Whitfield. Hi Fred.

WHITFIELD: Hi. One cool thing about the name, now you say you know I've got tickets to the house.

NGUYEN: That's true.

WHITFIELD: Everyone knows what you mean. You won't have to say Yankees' game, or going to the stadium. It's just, we're going to the house.

LUI: Making it easier.

WHITFIELD: All right.

NGUYEN: We're going to the house.

WHITFIELD: Yeah. You're going to that house.

NGUYEN: Literally.

WHITFIELD: All right, fine. Have a great day.

NGUYEN: You too.

LUI: See you Fred.

WHITFIELD: We're going to talk about finances involving your house and everything else. The bailout Congress has a plan in hand.