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Bush Economic Team Pushes Big Bailout; FBI Investigate Possible Mortgage Fraud; Small Town in Finland Mourns After Shooting
Aired September 24, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. I'm Heidi Collins.
Your money, our business this hour. Lots of financial news to catch you up on. The captains of the Bush economic team back on Capitol Hill pushing for that big bailout.
Likely to get pushed back from some lawmakers and some companies that already got government help now under investigation. FBI looking into possible mortgage fraud.
Democrats give in. They'll let an offshore oil drilling ban expire.
And pumping the economic engine. Global banks putting more money in the market. We'll watch to see how Wall Street reacts to all this news.
It's Wednesday, September 24th. You are in the CNN NEWSROOM.
Your money, issue #1, the bailout plan, our top story yet again. Mind-boggling numbers, scarce details and some scary warnings. And now new developments.
Ali Velshi and Christine Romans are part of CNN's money team, here again to talk about all of this for us.
All right, guys, tell us what the big news about this hour.
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes, you have to decide which big news. Every few minutes...
COLLINS: Exactly.
VELSHI: ... there's new ones. But one of the pieces of news that we are following that's pretty new is that the FBI -- we've learned from sources that the FBI has added four of these major companies that we've been talking about for the last couple of weeks to a list of companies that are being investigated.
So we're talking about AIG, Fannie Mae and Freddie Mac and Lehman Brothers as a part of a sweeping investigation that now involves 26 companies, including Countrywide Financial.
And they're looking into, essentially, starting with mortgage fraud so whether there was any kind of deception in the way people got mortgages but when it comes to public companies it starts to expand into the idea that were -- were investors or was the public deceived about the financial condition of these companies.
We've not been able to get confirmation from the FBI that they are looking at something specific and targeting these companies but they did say that are looking at the companies and their executives.
CHRISTINE ROMANS, CNN CORRESPONDENT: That's absolutely right. And we know that the mortgage fraud investigation from the FBI and from the Justice Department has been for some time.
They've been taking a look at what's been going in the subprime, but also looking at the executives and what the executives knew and whether they were saying one thing to investors and to the people within the company and another thing -- and still going out there and pushing some of these loans.
VELSHI: And to be clear to people who are outraged about that sort of thing, again, this is -- there are no allegations of wrongdoing right now, but it is illegal if that were taking place and it is, by the way, fairly easy to track that down.
ROMANS: I think it would be a surprise if the federal government wasn't investigating...
VELSHI: Right.
ROMANS: ... what's been happening here considering the taxpayers are going to be on the hook for so much and that it is such a monumental -- you know, failure.
COLLINS: Yes, but I think a lot of people also wondering while we have the $700 billion bailout that's being, obviously, discussed and was discussed for a very long time yesterday on Capitol Hill...
VELSHI: Yes.
COLLINS: ... where's the time for the investigation? When -- where does all of that end?
VELSHI: Well, that'll be -- that's a really good question. That's going to happen with the FBI and the Justice Department on the side. They'll be a parallel track. That shouldn't interfere...
ROMANS: Right.
VELSHI: ... with what's happening on this bailout. But, boy, the e-mails and phone calls we've been getting, partially from people who are confused about their money and what to do with it, but so much outrage. And so many people saying...
ROMANS: You know...
VELSHI: ... we shouldn't do this.
ROMANS: ... why are we doing this? How much is it going to cost me? I mean I know -- and a lot of people saying I realize that it's funny money, it's $700 billion, but, listen, this is our money. This is taxpayer money.
And a lot of people asked me what would happen if we didn't do it?
COLLINS: Yes.
ROMANS: And why do we have seven days to do it? And why can't we do it a smaller one...
VELSHI: Or do it in parts.
ROMANS: Now Paulson has said -- he testified, he said, listen, this is a big problem and we've got to throw a lot of money at it. If we do it piecemeal, it's not going to work. And we've seen Bear Stearns -- the bailout of Bear Stearns and Fannie and Freddie.
COLLINS: Yes.
ROMANS: All of that capital injection into the financial system over the summer and we still have these problems. So they don't -- doesn't seem like they want to do it piecemeal.
COLLINS: Yes.
ROMANS: They want to do a big deal.
COLLINS: Well, I had a chance to go around and talk to some folks. I just wanted to find out what everybody felt about the bailout...
ROMANS: Right.
COLLINS: ... and if they understood it, so we're going to air some of these sound bites throughout the show here.
Guys, thanks so much. We'll talk about Warren Buffett and his $5 billion in all of this the next time around.
VELSHI: OK.
COLLINS: Christine Romans, Ali Velshi, thanks, guys.
The bailout plan back on Capitol Hill along with the money men who designed it and for the second day they are about to face a grilling from lawmakers in both parties.
CNN's Brianna Keilar is setting the stage to us.
Good morning to you, Brianna.
BRIANNA KEILAR, CNN CORRESPONDENT: Good morning, Heidi. Today's hearing which is going to be this afternoon will be before a House committee and Republicans in the House generally have not been buying into the Bush administration's proposal. They were not swayed yesterday by urging from the Bush administration, particularly Secretary Paulson, that this bailout plan needs to be pushed through as quickly as possible and without many add-ons.
In fact, some intense lobbying efforts by the White House yesterday. We saw Vice President Dick Cheney as well as Josh Bolten, the White House chief of staff, and the president's top economic adviser, as well, here on Capitol Hill, meeting with Republicans and by many Republican accounts, that meeting didn't go all that well, didn't really come to any conclusions.
So today this hearing is round two and we're expecting some tough questions and concerns to be lobbed at Treasury Secretary Paulson and Fed chairman, Ben Bernanke, just as they were yesterday before the Senate.
(BEGIN VIDEO CLIP)
SEN. CHRISTOPHER DODD (D), BANKING COMMITTEE CHAIRMAN: The secretary and the administration need to know what they have sent to us is not acceptable. This is not going to work. And they're going to have to come back and work with us.
SEN. RICHARD SHELBY (R), BANKING COMMITTEE RANKING MEMBER: I think we've got to look at some alternatives. I think the secretary now realizes that what he sent up is not going to just rubber stamped.
(END VIDEO CLIP)
KEILAR: So you see there Democrats and Republicans, definitely not on board here on Capitol Hill.
This hearing today before the House is going to take place at 2:30 p.m. Eastern. Yesterday, Secretary Paulson and the White House urging that this needs to get passed by the end of the week. But no guarantees at this point, Heidi, from Democrats when there will be a vote.
They say they want major changes as do, obviously, Republicans and also Democrats want to see the White House getting more Republicans on board with this, Heidi.
COLLINS: It seems like there's this whole, you know, sort of financial crisis and then a political crisis at the same time. And meanwhile, you've got the two main guys, if you will, Ben Bernanke and Henry Paulson, saying we just need to do it right now.
That is not the general consensus, obviously.
KEILAR: Well, it's just such a big price tag and you're hearing that concern from Democrats and Republicans. We heard from banking committee chairman in the Senate, Christopher Dodd, yesterday and, you know, a lot of worries about what if we don't do this right.
We may not have a second chance and that's something that we're hearing from both sides of the aisle.
COLLINS: All right, CNN's Brianna Keilar for us this morning.
Brianna, thanks.
It was a push that prompted loud protests in Congress, but it will end in -- with a little more than a whimper. In fact, Democrats let a 25-year ban on offshore drilling expire. A provision that would bar the drilling has been left off a spending bill.
The House is expected to approve today, so House Democrats had previously pushed back against President Bush's call for the ban that he lifted. But with the likely veto looming over the broader spending bill, the Democrats ended up conceding.
The issue will probably be revisited in the next session. We'll be watching that for you.
Help for the gas crunch. Georgia gets a temporary EPA waiver to sell a higher sulfur fuel in the Atlanta area. Several other southern states also dealing with gas shortages and long lines at pumps.
The shortages are expected to continue until the Gulf Coast refinery shut down from Hurricane Ike are back up fully operating.
Meanwhile, gas prices have dropped for a seventh straight day now across the country. They averaged for a gallon of regular unleaded around $3.71.
Look at this. Traffic stacked up for miles even before the sun was up, in fact. They are on the road to Galveston. Today is the first time many people are being allowed back onto the island since Hurricane Ike slammed into it 11 days ago.
City leaders are warning people what they find will not be pretty.
(BEGIN VIDEO CLIP)
DANNY WEBER, GALVESTON MAYOR PRO-TEM: This is our island. We're going to rebuild it. We're going to rebuild it bigger and better than it was.
But when you come back, it's not going to be the same Galveston Island you left. It's been damaged, it's been broken. But it's being repaired and it's being fixed as we speak.
(END VIDEO CLIP)
COLLINS: Damage estimates in Galveston run as high as $2 billion. The city's mayor has been in Washington appealing for emergency aid.
And meanwhile utility crews for Centerpoint Energy say they've been able to restore power to 73 percent of their customers now. That's across southeast Texas. 89 percent of Energy Texas customers are back online.
Sending it over to Rob Marciano now watching all of this.
Boy, it's amazing. It was 11 days ago, it seems like -- you know, we've obviously been talking about Galveston and Houston for that long and more storms ahead by the looks of those fast-moving arrows there?
ROB MARCIANO, CNN METEOROLOGIST: Yes, well, this is just highlighting some wind.
COLLINS: Kind of scary.
MARCIANO: Well, that's what we do. High pressure to the north, low pressure to the south, the difference there gives you squeezing air, basically, and moves it quickly. So we've got some wind heading into the Carolinas. We've got some waves. There's going to be rip currents. There's going to be some minor coastal flooding.
Well, the more importantly, I think, for folks in the Carolinas and the northeast is this low now looks a little bit more interesting than it once did. Not just squeezing the air and making for that wind. But it's over the Gulf Stream. And now it looks like it's turning more into something tropical and trapping some of that energy from the warm waters of the Gulf Stream.
So the National Hurricane Center has put out the orange flag for this, saying a moderate chance of this becoming a subtropical or tropical system. Regardless of how it's classified, it's already bringing gusty winds to the outer banks of North Carolina.
And as this moves towards the Carolinas, it's going to bring some stormy weather. Not only with wind but also with rain here in the next couple of days and will probably head up towards the northeast as well.
And then we have this system which is down across parts of the Dominican Republic, not doing much now, but National Hurricane Center thinks this has the potential to develop into something and potentially hit the northeast as well. So watching those two systems and they'll be time framing the next couple of days.
Some storms across the midsection and the Pacific Northwest.
Quick shot of Boston for you. It is a beautiful day across New England. WCVB, there you go. Temps in the mid-50s. You get up into the mid-60s for highs today. Enjoy it. It may get stormy this weekend. We'll watch those two storms as they develop.
COLLINS: Very good, thank you, Rob.
MARCIANO: OK, see you.
COLLINS: North Korea back in the nuke business. What we've learned about the secretive government's plan. We'll tell you all about that. Meanwhile, I had a chance yesterday to go out and talk with people in the area. I wanted to get their understanding of this federal bailout, what the $700 billion could be used for and whether people were concerned about it.
I want to show you some of these now. This is what Jim from right here in Georgia had to say.
(BEGIN VIDEO CLIP)
JIM, GEORGIA RESIDENT: I think that we need to make some fundamental changes. I think this election that we're having today is going to have a lot to do with it. Both the Republican and Democratic Parties are both guilty as of the excesses and the way they spend our taxpayers' money.
It's almost like the -- I mean, the Democrats and the Republicans, they don't care as much about the American taxpayers as they do about winning elections, so we'll see how this comes out.
I think sometimes you get into some excesses, you have to deal with it. Look, nobody is going to like the taxpayer footing the bill for making corporate loans to those who've made poor investments.
The same can be said for those who have bought more houses than they can really afford. We -- as a nation, we've got to learn both in our government and in our personal lives to live within our means and to learn how to save money and not spend it.
And all those young kids out here today who are carrying a load of credit -- I agree with that -- who carry a load of credit card debt, they're actually delving into their future and spending money they don't have.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COLLINS: More fallout from China's tainted milk scandal. Hong Kong says two more children have been diagnosed with kidney stones after drinking contaminated milk products.
There have been no known problems in the U.S., but the FDA says it is expanding testing of Chinese milk products.
Four babies have died in China. Nearly 53,000 children have gotten sick there from infant formulas or other products contaminated with the chemical melamine. Melamine is an industrial chemical that's used in coatings or laminates.
Health experts say ingesting it can lead to kidney stones, urinary tract ulcers and eye and skin irritation. In fact, it's the same contaminate from China that poisoned and killed thousands of U.S. cats and dogs last year.
Coming up a little bit later this hour with major brands of infant formula yanked from store shelves in China, how will parents feed their babies now? One new mom has a solution.
To North Korea and how it is flexing its muscle. Once again, there are new signs it's making good on threats to restart its nuclear program. The U.N. nuclear watchdog group says at North Korea's request it has removed surveillance equipment and seals from a key nuclear facility.
We want to go live now to Christiane Amanpour, our chief international correspondent from New York today.
Good morning to you, Christiane.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Good morning, Heidi. This is a bad development because the seals are highly symbolic and the reprocessing plant at Yongbyon at any nuclear plant is very, very important. That's where they actually make what they need for any kind of nuclear weapon or nuclear device.
So what seems to be going on, according to the IAEA, is that this -- this sort of flexing of muscles by North Korea over the last several weeks starting in August when it started to say that it was not being removed from the U.S. list of states that sponsor terrorism as being promised by President George Bush in the summer, then that it would start to reintroduce equipment into the Yongbyon.
This is what the IAEA spokesman has said this morning.
(BEGIN VIDEO CLIP)
MELISSA FLEMING, IAEA SPOKESWOMAN: As the director general reported to the board on Monday, the DPRK asked the IAEA to remove seals and surveillance from the reprocessing plant in Yongbyon.
This work was completed today. There are no more seals and surveillance equipment in place at the reprocessing facility. The DPRK has also informed the IAEA inspectors that they plan to introduce nuclear materials to the reprocessing plant in one week's time.
They further stated that from here on the IAEA inspectors will have no further access to the reprocessing facility.
(END VIDEO CLIP)
AMANPOUR: Using the initial DPRK for North Korea. This, again, is a -- very bad development. And it reminds you of 2003, when the North Koreans broke the seal, kicked out the IAEA and started the crisis, which was then sort of resolved, if you like, when the U.S. decided to start negotiating North Korea's nuclear disarmament.
We saw in February when we were there Yongbyon being disabled. This started back about 14 months ago when the North Koreans shut down Yongbyon in return for promises by the United States and regional allies for, for instance, huge amounts of fuel aid in that energy-poor country, and also eventual promises by the United States to remove some sanctions and to remove North Korea from the list of states that sponsored terrorism. This has not yet happened. And what it seems to be the problem is that, first, there's the health of the North Korean leader Kim Jong-Il, which has been bad. He suffered a stroke. He was briefly incapacitated. He seems to be recovering, but the North Koreans have gone into a harder-line stance, according to U.S. officials, since then.
In addition, North Korea is objecting to some very, very tough measures the U.S. wants to impose on verification. Very, very tough house-to-house measures. Now, the IAEA source says whatever kind of verification in order to be successful has to have the cooperation of the host country -- Heidi?
COLLINS: All right, appreciate it, CNN's Christiane Amanpour coming to us from New York today.
Thanks, Christiane.
To Iran now and the president there giving a blistering speech at the United Nations yesterday. He blamed what he calls a few bullying powers for creating the world's problems and said those powers are trying to prevent his country from having a peaceful nuclear program.
Last night, Mahmoud Ahmadinejad appeared here on CNN's "LARRY KING LIVE."
(BEGIN VIDEO CLIP)
LARRY KING, HOST, "LARRY KING LIVE": Mr. President, do you fear at all Israel or the United States attacking you?
PRES. MAHMOUD AHMADINEJAD, IRAN (through translator): Do you think that they would do that?
KING: I'm asking you.
AHMADINEJAD (through translator): I have no concerns in that regard because they are unable to do that because the worst thing the U.S. government can do would be an attack.
I think that in the United States there are enough reasonable people, smart people, who would not allow the U.S. government to make such a big mistake.
KING: How about in Israel?
AHMADINEJAD (through translator): The same, too. It's much smaller than that for an attack. It's way too small. It's not -- doesn't even factor in in the equation of Iran's foreign policy.
(END VIDEO CLIP)
COLLINS: Tonight, former President Clinton will be a guest on "LARRY KING LIVE." Just days before the first presidential debate the political stakes couldn't be higher.
Tune in at 9:00 Eastern.
A small nation's big grief. Finland suffers a second school shooting in less than a year. We're at the scene of the latest tragedy.
(COMMERCIAL BREAK)
COLLINS: In mourning, a small town in southwestern Finland is consumed by grief after a deadly school shooting. Police say eight women and two men were killed. One of them was a teacher, the others were students.
The 22-year-old shooter died after police say he turned the gun on himself.
This was the second school shooting in less than a year in Finland.
CNN's Phil Black is at the school for us now this morning.
So police say they actually questioned this young man the day before his rampage. What happened? Why did they let them go? Lack of evidence?
PHIL BLACK, CNN CORRESPONDENT: Yes, Heidi, that's right.
Police questioned Matti Saari, the 22-year-old student at this school, on Monday. They questioned him because they found video -- videos posted on the YouTube Web site showing him firing his own .22- caliber semiautomatic weapon.
Now this is a concern because, you mentioned, this was the second school shooting Finland has experienced in the last year. The last was in November. Eight people were killed there, and in that instance the shooter there also posted videos of himself and his weapon on YouTube.
In this case, however, the police say there was no evidence of a specific threat. They let him go. And they let him keep his weapon. The very next day, Saari is believed to walk in to the school behind me, shot dead 10 people.
Now it has had a powerful impact on this remote northwestern town in Finland. Let's hear now, though, from some of the students in their own words about how this tragedy is affecting them.
(BEGIN VIDEO CLIP)
UNIDENTIFIED STUDENT: It's right now I feel unsafe. I don't want to go to school to -- no.
UNIDENTIFIED STUDENT: You know, this (INAUDIBLE) or that person, you know, shooting people, why? How did this could have happen in Finland?
(END VIDEO CLIP) BLACK: Finland has very high gun ownership rates, among the highest in the world. But comparatively very low gun crime. The people here are now wondering just what drove this young man to commit such a violent act.
But they also want to know why the police came so close to stopping him but not close enough -- Heidi?
COLLINS: Hmm, it is definitely a tragedy. CNN's Phil Black for us -- thanks so much, Phil.
COLLINS: This is the talk of the campaign trail. What candidates are saying about the bank bailout plan?
(COMMERCIAL BREAK)
COLLINS: Hi there, everybody. Once again, we are waiting for the opening bell about to ring on Wall Street.
Investors are, obviously, hoping for a recovery from yesterday's triple-digit tumble.
Susan Lisovicz is at the New York Stock Exchange -- there it is -- for us.
Susan, wondering about today. Futures are up today, right?
SUSAN LISOVICZ CNN CORRESPONDENT: That's right, Heidi. We're going to call it the Buffett bounce.
COLLINS: Yes.
LISOVICZ: Goldman Sachs is getting a $5 billion infusion from Warren Buffett. Berkshire Hathaway, the company that the legendary investor controls, will purchase shares in Goldman. The first big move into financials by Buffett since the credit crisis erupted a year ago. He says that Goldman Sachs is an exceptional institution and it can be exceptional all you want. What he wants is a good price for an exceptional institution.
Goldman shares are cheap. They've lost half their value over the past year and that vote of confidence -- let's check out, yes -- is helping send Goldman shares up nearly 3 percent right now. And we're seeing a little bit of a bounce in the first few seconds of trading.
It's helping the overall market, too. That includes, by the way, we're looking at some higher prices for Fannie Mae, Freddie Mac, Lehman Brothers and AIG despite word that they're under investigation by the FBI, the agency calls -- tells CNN that the probe is part of a broader investigation of possible mortgage fraud.
The FBI says it has more than two dozen corporate investigations involving subprime lenders.
Meanwhile, act two in Washington.
COLLINS: Yes.
LISOVICZ: Both Fed Chairman Ben Bernanke and Treasury Secretary Paulson will be grilled this afternoon by the House Financial Services Committee. Bernanke will talk before the Joint Economic Committee in about half an hour or so.
And let's check the big board, if you will. The Dow is up 32 points. Another triple-digit move yesterday. The -- let's see -- the seventh triple-digit move in seven sessions. But these are volatile times, Heidi. You know that.
The NASDAQ is up as well. And we're going to get some housing numbers at the top of the hour. We're expecting another decline on existing home sales. Just a whole lot of data, a whole lot of information.
COLLINS: Yes.
LISOVICZ: These days, Heidi.
COLLINS: Yes, and I remember when you and I were talking last Christmas about 15,000. Remember that?
LISOVICZ: Yes.
COLLINS: A long time ago.
LISOVICZ: Yes, you know, you don't have to feel bad. There was a guy I went to dinner last night and he wrote a book that said -- the title was something like "Dow 36,000" or "Dow 35,000."
COLLINS: Yes. Yes.
LISOVICZ: So, you know, 15,000 seems, you know, modest.
COLLINS: Yes. Yes, it does at this point. I don't know what it seems.
All right, Susan, sure do appreciate that.
LISOVICZ: Well, we're hoping for 11,000, OK?
COLLINS: Yes, that would be good right about now. Absolutely. Thank you, Susan.
LISOVICZ: OK, Heidi.
COLLINS: The economy is issue #1 for you and it's becoming a driving force, of course, in the presidential campaign trail.
So where do John McCain and Barack Obama stand on the bailout plan? It's time to hear what they are saying.
Let's begin with the Obama campaign. The Democratic nominee is in South Florida for a rally today. CNN's Suzanne -- Malveaux, pardon me, is in our Miami bureau. Good morning you to, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, good morning, Heidi.
Well, obviously, both of these candidates are pushing for stipulations and conditions they believe that a successful bailout plan must have. It's interesting that both the candidates, while they're doing that, at the same time they don't want to be perceived as pushing too hard or being the candidate, essentially, who would block a particular bailout plan either.
It really is a very delicate balancing act with both of them as they're reaching out trying to prove that they are taking leadership on this issue. But at the same time still a lot of unanswered questions about what is the right solution.
Take a listen to how these candidates are framing the issue.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: There's been some talk that some CEOs may refuse to cooperate with this plan, if they have to forego multimillion dollar salaries.
I cannot imagine a position that's more selfish and more greedy at a time of national crisis.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: The senior leaders of any firm that's bailed out should not be making more than the highest-paid government official.
(END VIDEO CLIP)
MALVEAUX: And, Heidi, what we are hearing from the candidates, there are some similarities in terms of the conditions that they're putting on this bailout plan.
Some of them including that taxpayers have to get some money back from the bailout success, if it is successful, that there's a bipartisan board that would oversee this plan, that Wall Street executives would have a limit when it comes to compensation packages, and that an economic stimulus package would be put on hold, that it would not be tied to this particular legislation.
We also hear from Obama who talks about the need for homeowners who are struggling with their mortgages to get some sort of relief, some sort of aid. But what is fascinating about this is that while both the candidates pushing for it on these conditions, they are also being somewhat cautious here.
Barack Obama not saying what condition would be a deal-breaker, that he would not agree with this legislation, still, looking for negotiations, saying let's go back to the drawing board.
If the Bush administration doesn't agree, neither one of these candidates necessarily saying that ultimately they are going to vote on this legislation, go back to the Hill, because that could mean valuable time on the campaign trail that is lost.
So, we're going to have to see how all of this plays out. But, obviously, they don't want to appear as if they are blocking progress.
COLLINS: Right.
MALVEAUX: But they do want to appear as if they are fighting for the voters -- Heidi?
COLLINS: Yes. It's a very precarious situation for both of them, certainly.
Suzanne Malveaux, sure do appreciate that.
Republican rival John McCain is also calling for changes to the rescue plan. You heard some of what he just said. In the swing state of Ohio he underscores blue-collar values amid mind-numbing numbers.
CNN's Dana Bash explains.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice over): At his first press conference in six weeks, John McCain tried to connect with voters by showing he understands the burden that the $700 bailout.
MCCAIN: In essence, what this plan requires is a $10,000 contribution per household in America. $700 billion, for example, could rebuild the crumbling infrastructure in every town, county and state in this country.
BASH: That populist rhetoric capped a day of images designed to appeal to blue-collar workers he needs to win in Ohio and Michigan - a visit to a construction site, a tour of two factories with the same promise along the way.
MCCAIN: The economy on main street, not Wall Street, not Washington, D.C., but main street, is the focus of our attention and our efforts.
BASH: McCain repeated principles he laid out a day earlier, an oversight board, not the treasury secretary, in charge of the bailout, and a cap on CEO compensation.
MCCAIN: It's wrong to ask teachers, farmers, small business owners, to fill the gas tanks of the helicopters of Wall Street tycoons.
BASH: He urged swift action in Congress yet refused to answer if he would vote for a bailout package that does not include his demands.
MCCAIN: I can't say that, at this time, because I think the emphasis should be on the adoption of these principles.
BASH: That non-answer is giving Democratic leaders in Washington heartburn.
SEN. HARRY REID (D), MAJORITY LEADER: We need the Republican nominee for president to let us know where he stands on what we should do.
BASH: Democrats say they worry opposition from McCain could give skittish Republicans political cover to vote no, too, and leave Democrats scrambling to pass the bailout.
(On camera): The only hint John McCain gave as to which way he's leaning is a declaration that, quote, "inaction is not an option." But the reality is neither McCain nor Barack Obama is coming off the campaign trail and going back to the Senate to dig in and negotiate. They're both just hoping the final product is something voters can stomach.
Dana Bash, CNN, Middleburgh Heights, Ohio.
(END VIDEOTAPE)
COLLINS: Are the candidates' reactions to the bailout plan making a difference in the tossup states? We'll find out at 4:00 p.m. Eastern in "THE SITUATION ROOM."
President Bush trying to calm international concerns over America's money crisis. He appeared before the United Nations general assembly yesterday.
The president told world leaders and diplomats Congress will act quickly to approve the bailout plan. He also said Washington has taken bold steps to stabilize markets and shore up the nation's credit industry.
Rob Marciano standing by now, want to talk a little bit more about the weather. I'm not going to put you on the spot there and talk about the financials. But we do want to know about this other storm that may be developing a little bit here.
Hey, Rob.
MARCIANO: You know, gas is pretty cheap in South Carolina. Typically when there is gas. And we've got a little bit of weather moving more so into North Carolina. That's a pretty lame transition, I know. But that's what you gave me to work with there.
We've got a little bit of circulation happening in this low which has become a little bit more looking like the tropical system of late. So the National Hurricane Center's thinking this may tap some warm waters off the gulf stream there and it's looking a little bit more tropical.
So what that means is that it could become a tropical storm. Or a -- what we call a subtropical storm kind of hybrid. Either way, what it's doing is producing some high winds already across the Carolinas. So -- and you can see the cloud tops beginning to puddle up here as the sun comes up. So North Carolina already seeing gusty winds and that's going to be the case here for the next couple of days and the radar view picking up the rain bands that are already trying to stretch into the North Carolina area.
(WEATHER REPORT)
MARCIANO: Check this out. All right, we're breaking this down, first couple days of fall here. The fall foliage report. Yes, look, we did. Early October. Mid-October out west. And then, of course, the northeast, the leap peepers will be across New England.
And you'll see a peek there in upstate New York in September and then working down the spine of the Appalachians.
What do you think of that, Heidi?
COLLINS: That's beautiful.
MARCIANO: Sean Morris(ph) there on the graphics, working the falling leaves...
COLLINS: He's a rock star.
MARCIANO: ... for your -- autumnal delight.
COLLINS: Autumnal. Hmm, new word, too.
MARCIANO: I don't think it is a word but...
COLLINS: Sounds good.
All righty, Rob, thank you. We'll check back later on.
How about this story? Ice cream made from mother's milk? Cow's allies track the popular brand. We've got the scoop on that.
Meanwhile, I want to give you an idea. I had a chance to go out and talk with some people here in the Atlanta area about the federal bailout plan -- the $700 billion. What it means to them and how much they understand about it.
Listen now to Linda and Carter.
(BEGIN VIDEO CLIP)
LINDA, GEORGIA RESIDENT: I think we don't have any other choice from what I under. So am I thrilled about the taxes? No. Am I thrilled about the consequences of the unknown? No. But in the meantime I do believe that something needs to be done very expeditiously.
CARTER, GEORGIA RESIDENT: I've heard about it, but I don't know any details enough to say anything about it.
COLLINS: It's -- when I say $700 billion, though, can you even fathom what that chunk of money is about?
CARTER: No. My whole thing is, like, what would they do with it?
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COLLINS: News about your health now. A new discovery that could help in the early detection and treatment of ovarian cancer.
Scientists say they found a gene marker that may indicate who will get ovarian cancer and who won't. They found the marker by testing tissue and blood samples from women who have ovarian cancer and others who are cancer free.
All the women with cancer had the specific gene.
Ovarian cancer kills 15,000 women a year and it's very difficult to detect. Symptoms include bloating, pelvic or stomach pain, difficulty eating or always feeling full.
Lance Armstrong -- he's a seven-time Tour de France champion. He beat testicular cancer and there is word this morning Armstrong will return to competitive cycling with the Kazakhstan-based team.
Armstrong talked about his training last hour on CNN's "AMERICAN MORNING."
(BEGIN VIDEO CLIP)
LANCE ARMSTRONG, 7-TIME TOUR DE FRANCE WINNER: I am spending half my time in the gym and half my time on the bike. Come January all of the gym work will go away and really, for the rest of the season, you just -- all you do is train on the bike and, obviously, focus on other things.
Focus on stretching, focus on the technology of cycling, focus on diet, focus on the team and strategy and all the other elements.
(END VIDEO CLIP)
COLLINS: Unofficial announcement on Armstrong's team assignment is expected later today. And that will happen in New York.
The tainted milk crisis in China has new moms scrambling now to find ways to feed their babies. Some are turning to so-called milk nannies.
CNN's Kyung Lah has more.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN CORRESPONDENT (voice over): China's milk crisis now stretching well into its second week. Major formula brands still off the shelves. Parents angry and frustrated. Amid all this, Zhan Liying has found an opportunity.
"I heard this company is looking for a milk nanny and I can produce milk," she Zhan. Last month she gave birth to a baby girl. Her second child, under China's one-child-per-family policy, she gave her daughter away.
Now Zhan would give her breast milk and get paid for it.
"I want to breast feed my child, but I've already given her away so that can't happen. So, I'll help others. But I'm also doing this for the money."
And the money is good. Eight times what she'd make in a factory.
Lin Zhimin runs a domestic services company. As the milk scandal broken wide into tens of thousands of sick babies, this entrepreneur sensed a moneymaker. He put an ad online and the calls started coming.
"People can't trust formula anymore," says Lin, "and they're looking for something healthy for them to eat. So their interest in milk nanny's increase."
(On camera): At the Beijing Children's Hospital, parents are continuing to line up, bringing their children in and out, making sure that they're checked and asking what can they feed their children?
Well, international medical experts say breastfeeding nannies can be a safe alternative.
HANS TROEDSSON, WORLD HEALTH ORGANIZATION: If the breastfeeding nannies are healthy, and in a good nutritional status it's, of course, not a problem.
LAH (voice over): The WHO says breastfeeding your own child is safest and new mothers should try to re-lactate, but for those who can't and don't have the money, Lin promises his breastfeeding nannies will be blood tested and ready to serve.
Zhan is looking forward to going to a family soon. And while she wonders what the daughter she gave away is feeding on tonight, she believes she will soon give at least one family some comfort.
Kyung Lah, CNN, Beijing.
(END VIDEOTAPE)
COLLINS: The students were just going for a laugh, but they wind up going to jail instead. The story of the gorilla and the banana.
(COMMERCIAL BREAK)
COLLINS: Vice presidential candidate Joe Biden -- some critics say his off-the-cuff remarks make him a gaff machine officially. Democrats shrug that off. But with just over 40 days to the presidential election, any mistake by a candidate looms large.
CNN's Brian Todd explains.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice over): Joe Biden on message, broad-siding his opponents on the economy, health care and for good measure.
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: We will end this war.
TODD: Just the response the campaign hopes for, because this can be Joe Biden unscripted.
BIDEN: I thought that was terrible.
TODD: Criticizing an ad from his own campaign about John McCain's computer illiteracy in an interview with CBS News.
Biden then issued a statement saying, "I was asked about an ad I'd never seen, reacting merely to press reports."
Earlier Biden said the government shouldn't bail out financial giant AIG. Later on NBC's "The Today Show" his running mate implied Biden had spoken too soon.
OBAMA: I think that in that situation, I think Joe should have waited as well.
TODD: Campaign aides say Biden later got on the same page with Obama, saying he wants more facts before taking a position on AIG.
But these episodes show that the folksy, plain-spoken Joe Biden, seen as refreshing on the stop, has a flip side, the propensity to blurt out comments that get him in the trouble and have prompted the Republicans to create a Biden gaff club.
Will the campaign make the esteemed senator stick to script?
Biden didn't speak to us at this event. But aides say he's done more than 80 interviews since being selected as Obama's running mate, and they're not about to repackage Joe Biden.
STEPHANIE CUTTER, OBAMA CAMPAIGN SENIOR ADVISER: This is a guy who stands by who he is and will say what's on his mind. He is authentic and he's real and he's honest.
TODD (on camera): This is the kind of audience the campaign wants to put Joe Biden in front of -- blue-collar workers who did support Hillary Clinton. The campaign thinks he's breaking through with them.
(Voice over): But given his gaffs and the rock star perception of Sarah Palin, is Joe Biden bringing down the Democratic ticket? WALTER SHAPIRO, SALON.COM: I don't think he's becoming a drag. To a large extent, vice presidential candidates only matter at the margins. Even Sarah Palin, when the dust settles, will probably be most important about bringing home the Republican base to John McCain, not changing the allegiance of persuadable voters in the Senate.
TODD: Look for a new role for Biden in the weeks ahead. A campaign aide tells CNN they'll have Biden attack John McCain's record in the Senate since he served with McCain for decades.
The aide says Biden, who's often called McCain a friend, will now become his real-life fact checker on the trail.
Brian Todd, CNN, Woodridge, Virginia.
(END VIDEOTAPE)
COLLINS: Senators sound off on the bank bailout plan. We are listening on Capitol Hill. Live picture for you there. Second day of all of this.
And are the candidates' reactions to the bailout plan making a difference in those tossup states? Find out at 4:00 p.m. Eastern, that discussion happening in "THE SITUATION ROOM."
So I was curious to know what do you think. We've heard an awful lot coming from Washington. We've heard an awful lot coming from the presidential candidates about this bailout plan.
But what do you think?
I had a chance to talk with Marcy right here in Georgia. Listen in to what she says.
(BEGIN VIDEOTAPE)
MARCY, GEORGIA RESIDENT: Well, basically, people are overextended credit-wise. And I think it's mostly through -- because of the mortgages. And I think it was just a free-for-all in lending the last several years and they were -- I don't know I think it's a twofold thing.
It's the industry pushing people into loans that they couldn't afford and then also, you know, consumers like us being just free with money that we don't have. And so I think it's a twofold thing.
And it's, like, I know we pay our credit cards every month and try to stay on a budget. But I think a lot of Americans, you know, they get kids in college that haven't maybe had any training in how not to spend money...
COLLINS: Yes.
MARCY: ... and how to save. And so it gets into this vicious cycle, and then they go for their first home. They might be pushed into a home that's too expensive for, really, what they can afford. (END VIDEOTAPE)
(COMMERCIAL BREAK)
COLLINS: Coming up later in the CNN NEWSROOM, an exclusive announcement from Google. The global search engine is about to launch a new project, all about making the world a better place and it's going to involve Google users in 43 countries.
Two of Google's creative minds Andy Bern and Bethany Pool, they'll be joined by my colleague Tony Harris in about an hour to tell us all about it.
Ben and Jerry's, famous for ice cream flavors that are both tasty and imaginative. Now imagine this? Ice cream made with breast milk. Animal rights activists are calling for that ingredient to replace cow's milk.
People for the Ethical Treatment of Animals, PETA, says it would lessen the suffering of dairy cows and be a healthier ingredient for humans. So far the idea is leaving ice cream lovers cold.
(BEGIN VIDEO CLIP)
SAGE BLAKOSH, ICE CREAM LOVER: You know, I'm a vegetarian. I've been a vegetarian for probably 14 years now. I have no desire to eat human breast milk at any rate, shape or form.
(END VIDEO CLIP)
COLLINS: Ben and Jerry's issued a polite response saying it applauds PETA's creative way of drawing attention but will stick with cow's milk.
They said they just wanted to pump up the crowd at their high school football game in Flower Mound, Texas. But they're no ordinary cheerleaders. And, as you can see, they didn't stay on the sidelines.
The guy in the gorilla suit and the banana who is chasing him made it past the goal line but then found themselves in handcuffs and in jail overnight.
(BEGIN VIDEO CLIP)
SEAN KIGHT, FLOWER MOUND HIGH SCHOOL STUDENT: Kids or anything. We just want to have fun, you know, kind of live the thrill.
(END VIDEO CLIP)
COLLINS: There it is again, a little closer up, the gorilla and the banana. School officials have since dropped the criminal trespass chargers against the boys. Both were athletes at the school. One of them is the captain of the cross-country team.
That, by the way, is the assistant principal climbing over the fence right there. The other is a soccer player. No wonder they can run so fast.
Back on Capitol Hill, Bush economic team working to speed through a bank bailout plan, but some congressional critics want to slam on the breaks.
And more money for the markets. Global banks up the ante. Will that move buck up investors? Your money on our minds this morning, Wednesday, September 24th.
I'm Heidi Collins. You are in the CNN NEWSROOM.
