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McCain Addresses the Clinton Global Initiative; Congress Puts Finishing Touches on Bailout Bill; Street Battles Rage in Somalia; Texting while Driving to be Banned in California; Severe Storm Heads for North Carolina
Aired September 25, 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: Getting down to the nitty-gritty. Republicans, Democrats in Congress close to a deal on the financial bailout bill. But can it pass?
And off the trail for the bailout. A time-out, if you will. Candidates agree to today's White House summit, but disagree about their debate date.
It's Thursday, September 25th, I'm Heidi Collins. You are in the CNN NEWSROOM.
Road to the White House detoured by the threat of disaster. A financial crisis grows deeper and more alarming. And it awaits the next president of the United States.
The economy is in danger. Stark words, dire warnings. The White House summons lawmakers, including John McCain and Barack Obama.
Will politics further delay a rescue plan, though?
Investors across the world on the edge of their seats. How will the U.S. deal with its worst financial disaster since the Great Depression?
From Wall Street to Pennsylvania Avenue, there is a whole lot to cover this morning and CNN crews are in place to break it all down for you.
Ali Velshi has the big picture, Elaine Quijano is at the White House, and Suzanne Malveaux, following the presidential campaign.
We begin with Senator John McCain off the campaign trail this morning and taking political heat for turning his attention to the financial crisis.
Our Dana Bash is covering the McCain campaign.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (on camera): John McCain's advisers say he decided to head back to Washington today after talking to economic experts here in New York and around the country who made clear to him that there is a potential for an economic calamity, the likes of which hasn't been seen since the Great Depression.
That's according to one of McCain's advisers. And -- so he actually talked to some of his Republican colleagues in Washington, and it was clear to him that the bailout just wasn't going to get passed because the votes weren't there from his own party.
So what he did is he called the president, asked him to convene this bipartisan meeting that's actually happening later today. But, politically, McCain is certainly suspending his campaign. He's pulling TV ads down, but the reality is, going back to Washington is very much part of the McCain campaign.
His aides believe that with the economy in a tailspin and polls showing voters looking more towards Obama on that issue, what he can bring to the table right now is leadership. And that's why a big reason why they decided to make this move and suspend this campaign.
But the other political reality here is that McCain advisers know that as reluctant as McCain is to go anywhere near the unpopular president right now, he couldn't afford to let the bailout fail or even meet stiff resistance from Republicans and potentially get blamed for not helping find a solution.
Dana Bash, CNN, New York.
(END VIDEOTAPE)
COLLINS: Also want to let you know that we are waiting for this event to begin. Senator John McCain will actually be there. Happening in New York, the Clinton Global Initiative. He will be addressing that crowd that has gathered.
We'll bring that to you when it happens.
Meanwhile, Barack Obama says he can focus on both the financial crisis and his campaign. He plans to show up for tomorrow night's debate at the University of Mississippi.
Our Suzanne Malveaux is on campus now where the debate will or will not happen, Suzanne.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Heidi, all indications, at least that's the way they're behaving here, is that the debate is going to happen tomorrow. They're giving out the credentials.
Obviously, it just went into the Ford Center. They've got two podiums that are set up on the stage. I spoke with the senior adviser to the debate commission who says that there are at this point no contingency plans. That they are not working on that.
They are operating as if thing is going to happen tomorrow night. They say they've been working on it for more than a year now. So that is what they are counting on.
I also spoke with a Barack Obama spokesperson this morning who says that he is going to be showing up here tomorrow as well with or without John McCain. Obviously, all of this came after really kind of a high day of drama.
Barack Obama reaching out to Senator McCain earlier in the day, talking about releasing a joint statement. McCain getting back to him late in the day, saying that he wanted to go beyond that, to suspend the campaign, to put off the debates.
Barack Obama was caught off guard by this. He says that what had happened was that -- he said, we'll get back to you on that. Let's just put out these joint statements. In the meantime, then they managed to turn on the TV sets a few minutes later to see McCain issuing that challenge publicly to Barack Obama.
Take a listen to how he responded.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: This is exactly the time when the American people need to hear from the person who in approximately 40 days will be responsible for dealing with this mess.
(END VIDEO CLIP)
MALVEAUX: Heidi, obviously, it is a political risk that John McCain is taking. He says that he is exhibiting leadership here. There are a lot of people here who are a little frustrated, a little worried about what's going to happen.
More than $5 million from the university has been poured into making this debate happen.
I want to show you here the local paper. One of the commentators essentially saying that, look, she says, this is not southern manners, that he's misplaced his southern manners, and here manners means a lot, that being John McCain.
So there's some people who say, hey, look, it's going to cost a lot of money, a lot of time, a lot of effort. They want to see these two candidates debate here tomorrow -- Heidi?
COLLINS: All right. CNN's Suzanne Malveaux from Oxford, Mississippi where we believe all the action will be tomorrow night.
Suzanne, thanks for that.
Both campaign trails converge at the White House, though, this afternoon. We do know that. And taking part in that search for a rescue plan, the man who will inherit the crisis on inauguration day.
CNN White House correspondent Elaine Quijano is there with this part of the story.
Good morning to you, Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good morning to you, Heidi.
That's right, just to set the scene for you a little bit here. This afternoon, senators McCain and Obama will be joining President Bush and congressional leaders, of course, in the Cabinet room here at the White House.
Of course, all eyes are going to be on that meeting. Reporters, we should tell you, and cameras are going to be allowed in at the very top of it. We won't get to talk to them afterwards. We'll wait to see, of course, what comes out of that.
But while the stated purpose of this, of course, is to tackle the financial crisis at hand. Certainly there is a lot of political maneuvering that is taking place, as we've just heard as well, but also some key talks that are happening on Capitol Hill at the same time.
And on that point, President Bush last night in his primetime address really signaled an openness to negotiate.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Ultimately, our country could experience a long and painful recession. Fellow citizens, we must not let this happen. I appreciate the work of leaders of -- from both parties and both Houses of Congress to address this problem and to make improvements to the proposal my administration sent to them.
(END VIDEO CLIP)
QUIJANO: Now, I just want to highlight the president using the word improvements there to describe essentially tweaks to his proposal. That in and of itself is very telling. Why, because in the past, as you know, Heidi, that tweaking, so to speak, really can result in some harsh pushback from the administration, a veto threat sometimes is what we hear about.
Not so in this case. President Bush essentially saying, look, I am open to making some concessions and last night he even spelled some of them out, talking about the idea of limits on executive pay...
COLLINS: Right.
QUIJANO: ... and also greater oversight -- Heidi?
COLLINS: Yes. All right, CNN's Elaine Quijano outside the White House for us.
Elaine, thank you. We'll keep our eyes on that meeting a little bit later on today.
Your money at stake, of course, in this bailout plan. And while we talk about that, a quick look at the big board there. Obviously, the trading day has not yet begun. I don't know, maybe we'll just leave it like that, a big zero. It could be good. It is all hanging in the balance as the markets wait for answers. So we'll be watching to see what the reaction is today.
Let's turn now to senior business correspondent, Ali Velshi.
Ali, what do you think is going to be happening with the markets today?
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Well...
COLLINS: Not much yesterday, by the close of business.
VELSHI: Yes. And that's a good question. I want people to think back to the last time we had various crises. And while we skip over, you know, 2000, 2001, those corporate scandals had a similar effect on confidence on the market to a much smaller degree.
But the market is not a good indicator of the credit freeze that we're in, because stocks can make money in any environment. Even if you're in a depression, there are stocks that will go up.
What -- there's no daily reflection of what is happening, that credit squeeze. I'll get back to that in a second. That's part of -- that's connected to the bailout. But we do have two pieces of information out this morning that are very important.
As you and I talk about all time, Heidi. The effect on most people is going to be jobs, the effect of this recession. While it is mortgages and things like that, everybody has to go to their job.
Weekly jobless benefit claims are up this week by 32,000 to 493,000. Now this is our weekly finger on the pulse of the country's employment. This is the lowest level in seven years.
I mean, that is substantial and when companies have trouble raising money, the first thing they do is try and cut their expenses...
COLLINS: Yes.
VELSHI: ... and that could mean workers.
The other piece of news we have is that durable goods, which is a measure of the purchase of things that last more than three years, fell by more than 4.5 percent for the month of August.
We were expecting it to fall by a little more than 1 percent. And a lot of that is airplanes and automobiles, but even if you take that out, there was a big drop in things and that's fridges and washing machines and things like that that people are, obviously, not buying because they're worried about the economy.
COLLINS: Absolutely.
VELSHI: So I think that the line I'd like to draw is that while you can -- there are really good objections to the plan that's out there, but there are some objections from people who say, it's best to do nothing and let things shake out.
There -- this is not about bailing out people on Wall Street. This is bailing out the financial firms...
COLLINS: Well, and that's the main -- it seems like -- sorry to interrupt, but that seems to be the main confusion here.
VELSHI: Yes. Yes.
COLLINS: Because I've heard it many, many times myself. I heard you talking about it earlier with some of the e-mails that came in to you.
VELSHI: Yes.
COLLINS: It's two separate things. Can you tell us again...
VELSHI: Correct. Right. I mean what a lot of people would like is a bailout of, you know, your mortgage or the small business owners in America who are really, really suffering. And I think that's a very good discussion to have.
But this bailout is the financial system which provides money to your bank to make you a loan for mortgage or a car or a student loan.
COLLINS: For anything.
VELSHI: It also provides businesses...
COLLINS: For everything.
VELSHI: Right. Everything. Businesses need to borrow money in order to operate, because their -- their money that comes in may be delayed because people are late in paying their bills, but they still have to pay their rent and their salaries.
We have seen problems with some major companies now trying to raise money. So, again, this is not to say you need to support this deal, but understand that the term Wall Street bailout is a misnomer.
COLLINS: All right, understood. And I could talk to you forever.
VELSHI: Yes.
COLLINS: Just trying to get a better...
VELSHI: Yes, we'll be talking a lot.
COLLINS: Yes, a better sense of how well people understand what we're talking about here. So we're going to continue to work on that.
Ali Velshi, thanks so much.
No hurricane hit, but a storm stirring things up now. Southeastern coast getting some rough treatment. Our weather center watching it for you.
(COMMERCIAL BREAK)
COLLINS: Huge, pounding surf from the Carolinas north. Watches and warnings go all the way up to New York as two storms now take aim at the eastern seaboard.
Coastal areas are bracing for heavy rain, gusty winds and possible beach erosion. As you can see, streets -- yes, that was a street under there -- already flooding in places like north of Virginia.
Rob Marciano standing by in the weather center. He's going to talk a little bit more about this one-two punch, as we're calling it, huh?
ROB MARCIANO, CNN METEOROLOGIST: Yes, we've got the one thing that's hitting the Carolinas already. They've seen winds gusting over 50 miles an hour on the outer banks. We saw that flooding video. I think we're going to see more of that.
The center of it's right here. The National Hurricane Center is concerned because it's kind of right over the Gulf Stream. So it's taking on some tropical characteristics. Either way, it's already blowing pretty good. So we've got wind and rain with this and certainly some coastal flooding.
It will team up with what's going on down here just north of Puerto Rico. So this thing is showing more signs of development as well. And that could become, you know, a full-blown tropical storm if not a hurricane.
So these two things are close to each other and there's something called the old Fujiwara Effect, a gentleman figured this out back in the '20s. These things -- says when two of these systems get close together, one will actually kind of draw the smaller one into the larger one or at least the two will interact, and we think that's what's going to happen in, you know, one way, shape or form with these two systems as they interact over the next couple of days.
So two systems, several computer models. And these lines just represent what the computer models think is going to happen. The one in the south kind of heads this way, the one to the north kind of head into the Carolinas and then bends back. Either way, spells a bit of a mess for the New York City area.
All the way -- already a mess for Raleigh. They've got cloudy skies, some rain expected today, temps in the 50s, now will be in the 60s later on and will be breezy, especially along the coastline and the Carolinas will see nasty weather day there.
Daytime highs will be in the 60s, 70s, and 80s across parts of the midsection of the country.
Talk more about that, plus they're trying to fly jet packs over in England or France. COLLINS: That's a story for later.
MARCIANO: OK, well, I'm teasing it.
COLLINS: I know. You are. I like that. Very good. We will bring that story to you a little bit later on. The jetpack guy, fusion man, as they call him.
Thank you, Rob.
MARCIANO: OK.
COLLINS: We'll check back a little later.
MARCIANO: Sounds good.
COLLINS: For now, though, this, wrecked homes, rats and mosquitoes, no sewer service, no power. Just some of what Hurricane Ike evacuees are facing as they make their way back home to Galveston.
KHOU reporter Brad Woodward with some of their stories.
(BEGIN VIDEOTAPE)
BRAD WOODWARD, KHOU REPORTER: What's left in the wake of Hurricane Ike that has been at the forefront of everyone's thoughts since they evacuated nearly two weeks ago. What's left and what's not.
UNIDENTIFIED MALE: Our bed was over here at one time.
WOODWARD: George and Donna Estrada have lived...
(END VIDEOTAPE)
COLLINS: An important story that we hope to give you the rest of a little bit later on in the program.
In the meantime, want to get back to New York now because Senator John McCain has taken the stage alongside former President Bill Clinton at the Clinton Global Initiative, where world leaders get together to discuss world problems.
Let's go ahead and listen in now.
(JOINED IN PROGRESS)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: ... I almost gave one of the most extemporaneous speeches of my political career.
I thank you, Mr. President, and it's always good to see you. I appreciate your hospitality to me and Cindy and Governor Palin.
Let me also congratulate you, sir, on the great work of the Clinton Global Initiative. It says a lot -- it says a lot about a man after 12 years as a governor and another eight years as the resolute desk in the oval office. He's still working hard in service to others.
Bill Clinton is a man who has achieved enough in public service by any measure except his own. This man's drive and determination and compassion for those in need are still a force for good in the world, and very frankly, I'm very proud to call him a friend.
Your kind invitation brought me here to discuss some of the great concerns of the Clinton Global Initiative, especially climate change, extreme poverty, and epidemic diseases. But I know and hope you'll understand if I begin by addressing a crisis of our own right here in America -- a crisis that began not far from here in the financial district of this city.
We know this is a crisis, with serious implications and consequences for our nation and for the world. History must not record that when our nation faced such a moment, its leadership was unable to put aside politics and to focus in a unified way to solve this problem.
It's time for everyone to recall that the political process is not an end in itself, nor is it intended to serve those of us who are in the middle of it.
In the Senate of the United States, our duty is to serve the people of this country and we can serve them best now by putting politics aside and dealing in a focused, straightforward, bipartisan way with the problem that's at hand.
For the Congress, this is one of those moments in history when poor decisions made in haste could turn crisis into a far-reaching disaster. If we do not act, credit will dry up, with grave consequences for workers and businesses across American economy and beyond.
People will no longer be able to buy homes. Their life savings will be at stake. Businesses will not have enough money to pay their employees. And as ever, the greatest burden is borne by the American people.
$700 billion is a staggering and unprecedented figure and there should be no misunderstanding about the dimensions of this proposal. $700 billion, for example, could rebuild the crumbling infrastructure in every town, county, and state in this country.
A great deal is being asked of the American people and great care must be taken to ensure their protection.
As most of you know, I'm an old Navy pilot and I know when a crisis calls for all hands on deck. That's the situation in Washington at this very hour when the whole future of the American economy is in danger.
I cannot carry on a campaign as though this dangerous situation had not occurred or as though a solution were at hand, which it clearly is not. As of this morning, I suspended my political campaign, as you know, with so much on the line for America and the world.
The debate that matters most right now is taking place in the United States Capitol. And I intend to join it. Senator Obama is doing the same. America should be proud of the bipartisanship that we're seeing.
It's become clear that no consensus has developed to support the administration's proposal to meet this crisis. I do not believe that the plan on the table will pass as it currently stands, and obviously we are running out of time.
So I'm returning to Washington to seek five fundamental improvements to this critical legislation. I've laid out these principles over the past week. First, there must be greater accountability included in this legislation.
I've suggested a bipartisan board to provide oversight for the rescue. We won't solve a problem caused by poor oversight with a plan that has no oversight. Never before in the history of our nation has so much power and money been concentrated in the hands of one person and there must be protections and oversight in place.
Second, as a part of that oversight, there must be a path for taxpayers to recover the money that's put into this fund. When we're talking about 700 billion taxpayers' dollars, that money can't simply go back into a black hole of bad debt with no means of recovering any of the funds.
Third, there must be complete transparency in the review of this legislation and in the implementation of any legislation. This can't be thrown together behind closed doors. The American people have the right to know which businesses will be helped, what that selection will be based on, and how much that help will cost. All the details should be made available online and elsewhere for open public scrutiny.
Fourth, it's completely unacceptable for any kind of earmarks to be included in this bill. It would be outrageous for legislators and lobbyists to pack this rescue plan with even more taxpayer money for favored companies.
And frankly, members of Congress who would attempt such a thing are scarcely better than the most reckless operators on Wall Street.
Fifth and finally, no Wall Street executive should profit from taxpayers' dollars. Let me put it this way. I would rather build a bridge to nowhere and put it square in the middle of Sedona, Arizona than take money from teachers and farmers and small business owners to line the pockets of the Wall Street crowd that got us here in the first place.
And I can assure you if I have anything to say about the matter, it's not going to happen. It's difficult to act both quickly and wisely, but that's what's required right now. Time is short and doing nothing is not an option. I'm confident before the markets open on Monday that we can achieve consensus on legislation that will stabilize our financial markets, protect taxpayers and homeowners, and earn the confidence of the American people.
I've seen Republicans and Democrats achieve great things together, when the stakes were high and it mattered most. I've seen them work together in common purpose as we did in the weeks after September 11th.
This kind of cooperation as made all the difference in the world at crucial times in our history. It's given us hope in difficult times. It's moved America forward through all adversity.
And now in this crisis, we must work together again and put our country first. On all of this comes, on top of other hardships that Americans have been dealing with, especially the rising cost of energy and these two, as you well understand, that the Clinton Global Initiative are problems that require us to call upon the best ideas of both parties.
For the future of our economy, nothing is more essential than a secure and affordable supply of energy. As you well know, people are hurting. They're hurting because the cost of gasoline is out of control.
Small farmers, truckers, and taxi drivers in this city and elsewhere are unable to cover their costs. Small business owners are struggling to meet payroll. For American workers, the cost of living is rising and the value of paychecks is falling.
All of this, in large part, because the price of oil is too high and the supply of oil too uncertain. These citizens believe their government has a duty to finally assure the energy security of this country and they are right.
Every form of economic activity requires the use of energy and that's why we need to draw on the best ideas of both parties on energy policy and work together for the common good.
Among our challenges is one that we hardly even understood back when America first learned to associate the word "energy" with "crisis." We now know that fossil fuel emissions by retaining heat within the atmosphere threaten disastrous changes in climate.
No challenge of energy is to be taken lightly and least of all the need to avoid the consequences of global warming. Over time we must shift our entire energy economy towards a sustainable mix of new and cleaner power sources.
This will include some we use already, such as wind, solar, biofuels, and other sources yet to be invented. It will include and must include a variety of new automotive and fuel technologies, clean- burning coal, nuclear energy, a new system of incentives under a cap and trade policy to put the power of the market on the side of environmental protection. To make the great turn away from carbon-emitting fuels, we will need all the inventive genius of which America is capable. We will need as well an economy strong enough to support our nation's great shift towards clean energy.
Global warming presents a test of foresight, of political courage, and of the unselfish concern that one generation owes to the next. We need to think straight about the dangers ahead and meet the problem with all the resources of human ingenuity at our disposal.
You know we, Americans, like to say that there's no problem that we can't solve however complicated and no obstacle we can't overcome if we meet it together. I believe this about our country. And now it's time for us to show those qualities once again.
As we deal with this challenge, we must also address the others that imperil our global security. Today too many around the world are excluded from the benefits of globalization, disconnected from the prosperity that has lifted millions out of poverty, too many societies are plagued by violence, disease, and security.
It need not be this way. And in places where scarcity can breed resentment, despair, and extremism, where problems cannot be contained by borders, it must not be this way. We can never guarantee our security through military means alone. True security requires a far broader approach using nonmilitary means to reduce threats before they gather strength.
And this is especially true of our strategic interest in fighting disease and extreme poverty across the globe. Promoting development, creating opportunities, and eliminating disease don't only serve our national interests, they also accord with our deepest American values.
We are a great and generous e country and we believe that all men and women everywhere are created equal and endowed by God with certain rights. In fighting disease and sparing unnumbered lives across the world, we serve not only strategic interests, we serve our moral interests and we show the good heart of America.
As you know, malaria alone kills more than a million people a year, mostly in Africa. Nearly 3,000 children are lost every day just to this one affliction. A disease well within our ability to eradicate.
To its lasting credit, the federal government in recent years has led the way in this fight. But, of course, America is more than its government. Some of the great advances have been the work of the Gates Foundation and other private, charitable groups. And you have my pledge that, should I be elected, I will build on these and other initiatives to ensure that malaria kills no more.
(APPLAUSE)
I will also make it a priority to improve maternal and child health. Millions around the world today, and especially pregnant women and children, suffer from easily preventable nutritional deficiencies. As a result, a million children under age five die every year, millions more are born mentally impaired, and entire economies are left to stagnate. An international effort is needed to prevent disease and developmental disabilities among children by providing nutrients and food security. And if I am elected president, America will lead that effort.
As we have done with the scourge of HIV and AIDS, we should embark on a more concerted effort to fight tuberculosis, which accounts for nearly two million deaths every year. We should work to dramatically raise agricultural productivity in Africa. America helped to spark the Green Revolution in Asia, and they should be at the forefront of an African Green Revolution. We should reform our aid programs, to make sure they are serving the interests of people in need, and not just serving special interests in Washington.
Aid is not the whole answer. We need to promote economic growth and opportunities, especially for women, where they do not currently exist. Too often, trade restrictions combined with costly agricultural subsidies for the special interests choke off the opportunities for poor farmers and workers abroad to help themselves. That has to change. And by promoting free trade, and ending unfair subsides, I intend to be the agent of change.
You know something about great change at the Clinton Global Initiative, because you are striving every day to bring it about. I thank each one of you for the good work you have done to relieve suffering across the earth, and to spread hope. I thank you for the even greater works that you seek to accomplish in the years to come, under the leadership of the man from Hope.
And I thank you all for your kind attention here today. Thank you very much.
(APPLAUSE)
COLLINS: Senator John McCain at the Clinton Global Initiative there in New York speaking before the crowd, to include his wife, you see there, and the Governor of Alaska, Sarah Palin. Talking an awful lot about the economy right off the top there. In fact, offering his five improvements as he calls them to the current bailout plan. So we will continue to watch all of that for you, obviously, today, and then tell if that plan is passed -- the bill I should say.
Later on, also, I want to let you know, in the interest of fair coverage, we will also be hearing from Senator Barack Obama. He will also address the Clinton Global Initiative through satellite. He's in Clearwater, Florida. That will be happening around, we believe, 10:00 or so. So we will keep our eye on that for you.
Meanwhile, Congress puts the finishing touches on that bailout bill. Will that make investors bolder? Wall Street now open for business.
(COMMERCIAL BREAK)
COLLINS: Your money, it's issue number one. And right now, there is no greater threat to your wallet than the nation's financial crisis. We have an awful lot to cover.
Christine Romans is crunching the numbers. Because most people really just want to know, how will we pay for the bailout?
Brianna Keilar on the search for a rescue plan. We want to begin in fact with Brianna on Capitol Hill right now.
The very latest, Brianna, is --
BRIANNA KEILAR, CNN CORRESPONDENT: Well, Heidi --
COLLINS: There's a meeting a little later today, right?
KEILAR: That's right. And actually, in just a few minutes -- well, actually, there's another meeting, a lot of meetings going on, Heidi, this one going to happen at about 10:00 a.m. Eastern here on Capitol Hill between Republicans and Democrats in the House and the Senate.
And they are expected at this meeting to put their heads together and draft a final bipartisan bill, which they will eventually pass and have signed into law. Exactly when that's going to happen, we don't have the details. However, I did speak with a senior Republican aide who said that if Republicans can get some of the demands that they're asking, he is very optimistic about the broad Republican support for an agreement that they can come to today.
As you'll recall, Heidi, it seemed like there was a bit of an impasse yesterday morning. So a whole lot of movement between yesterday morning and through last night and into this morning. Listen last night as things were moving along. What Senator Christopher Dodd, chairman of the Senate Banking Committee, who is heading up Democratic negotiations in the Senate on this, listen to what he said last night.
(BEGIN VIDEO CLIP)
SEN. CHRISTOPHER DODD (D), SENATE BANKING COMMITTEE CHAIRMAN: We're not there yet. I'll tell you that. But we're getting there. And there's a good possibility we will get there over the next day or so. I realize speed is important. But I think my colleagues are also far more concerned about getting this right. And that's our intention and our goal.
(END VIDEO CLIP)
KEILAR: So we understand there are some solid agreements between Republicans and Democrats and the Bush administration on some of the things that different sides wanted to add on or keep off of this proposal. For instance, limits on CEO pay on those golden parachutes and those hefty salaries for corporations that get bailed out using government money, as well as oversight.
This is something that Republicans and Democrats want to see and we're expecting to be in this final legislation. And also we heard from Congressman Barney Frank who is the Democrat heading up negotiations on the House side. He said that they are, they are working towards mortgage relief for individual homeowners. He said, this isn't going to pass without that.
Now, there are still some sticking points, however, Heidi. One of the biggest ones being, as we have reported before, bankruptcy judges rewriting mortgage terms. Democrats want that, Republicans don't. But again, we are expecting to see Congress progressing towards some sort of legislation as the day goes on.
COLLINS: You know, Brianna, I just wonder, for the people at home watching all of this unfold, are they staying late, coming in early? I mean, are they spending all the time that's necessary on this that they possibly could be? Because I know there's a recess coming up. We talked about that already. Just curious what that looks like from where you are.
KEILAR: Well, they are moving around the clock, Heidi. I mean, I can just tell you, I get in pretty early and I leave pretty late. And I would say that they are here about the time I get in and they are still by the time that I leave. So this is something that is going almost around the clock. I have to tell you, a lot of people are not sleeping very much here on Congress.
COLLINS: Yes, including the people at home watching us right now. Brianna Keilar, sure do appreciate that, on Capitol Hill this morning.
And now paying for the bailout. How would you foot the bill? CNN's Christine Romans had some answers to that.
Because, Christine, when it all comes down to it, at the end of the day, that is what people want to know. How am I going to feel it within my family and my pocketbook?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And Heidi, certainly, the next president has a huge economic challenge and with it comes a very, very big bill to pay.
(BEGIN VIDEOTAPE)
ROMANS (voice-over): Just where is $700 billion going to come from? Where it always does.
REP. JIM SAXTON (R), NEW JERSEY: The treasury doesn't have $700 billion in the big old safe. We have to go borrow it.
ROMANS: The piggy bank is already empty and the government is borrowing to the limit. To pay for this bailout, Treasury Secretary Henry Paulson wants Congress to raise the debt ceiling to a staggering $11.3 trillion. Talk about living beyond your means. Filmmaker and author of "I.O.U.S.A.," Addison Wiggin.
ADDISON WIGGIN, FILMMAKER AND AUTHOR: That money just gets tacked on to the bill that we're passing on to future generations.
ROMANS: The government is spending so much more than it takes in, that Wiggin calculates the national debt grows $1,093 every minute. The bill for everything the government has promised but hasn't yet paid for, like Social Security and Medicare, nears $53 trillion. And by the year 2010, your share will reach $38,000.
WIGGIN: The government is running -- is spending beyond its means to a level that, you know, private citizens could never even imagine and even Wall Street banks wouldn't dream of.
ROMANS: And that's before the proposed $700 billion Wall Street rescue. That's got Congress wringing its hands over the enormous taxpayer-funded bailout and the candidates fine tuning their messages. Many economists say big tax cuts and new health care programs get less likely by the minute. Ballooning deficits are more likely. It's still unclear how much this would really cost.
BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: I recognize that this is always due to the $700 billion program but, again, the fiscal cost of it is going to be much, much less than that.
ROMANS: Because the government hopes to someday sell the toxic securities it buys from the banks.
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ROMANS: And it's the cost of not doing something that has so many people spooked. The Fed Chairman says that cost could be much higher. Meantime, the deficits grow. Heidi, think of it. The deficit grows about $1,000 a minute. The national debt, $1.3 million a minute.
COLLINS: OK. Well, I was going to ask you a little bit more about what Ben Bernanke just said in your piece.
ROMANS: Right.
COLLINS: Because we don't really know if it's going to be more or if it's going to be less. The possibility of it being less at the end of the day, once again, is there, yes?
ROMANS: That's right. And certainly a lot of people are hoping for that. The Congressional Budget Office testified this week that it simply doesn't have enough information about what the program would like to be able to say what the net impact would be on America's checkbook. We just don't know quite yet.
And there is the hope that if the United States government can buy these securities cheaply, hold on to them for some unknown amount of time and then sell them for a gain, that in fact $700 billion won't be what we're on the hook for. It will be something much, much less than that. And there are even a few people who say they hope that there could, if it's done properly, taxpayers could make some money on it.
COLLINS: Yes, absolutely. I mean, that would be the greatest of all gain. No question about it.
ROMANS: And then we still have big deficits beyond the $700 billion to worry about.
COLLINS: Yes. They don't go away.
ROMANS: Right.
COLLINS: All right. CNN's Christine Romans, thank you.
ROMANS: Sure.
COLLINS: Also on Capitol Hill, the man at the helm of failed mortgage giants Fannie Mae and Freddie Mac. The CEOs are going to face tough questions about the pattern of bad loans that led to the collapse. The government has since stepped in to bail out those companies, but their failures helped trigger the nation's financial crisis.
Peacekeepers forced to fight in self-defense and civilians running for their lives. The latest on street battles in Somalia.
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COLLINS: Using donkey carts and buses, people trying to get out of harm's way in Mogadishu. The evacuations in the Somalia capital go on amid intense fighting between Islamic militants and African Union Peacekeepers. Dozens of civilians killed this week alone. The Islamic militia trying to seize control of the government has shut down the capital's airport. The spokesman for the peacekeeper said the Islamic fighters are trying to draw his group into a war.
Not exactly beach weather. Look at those waves along the Atlantic Coast today. Don't expect it to clear up anytime soon, either. A big storm heading straight for the Carolinas. If you live there, brace yourself for a lot of rain and gusty winds.
Rob Marciano is watching all of it for us.
We're talking about the outer banks here, Rob?
MARCIANO: No, we're talking about the outer banks, we're talking about inside the outer banks, a good chunk of the Hampton Roads area, really even up through D.C. We'll probably see a little bit of wind and some rain from this.
Actually, let's get this into the equation. A quick shot of the capital, where they're at busiest little bees for sure. There's old glory blowing in the wind, and that will become a little bit more stiff as the day progresses. You can even see it there, gusting pretty good. So, overcast skies, winds, yes, and then rain eventually.
Here's what we're talking about, two systems. One, this is what's causing the winds across the Carolinas. Already have seen winds gusting over 50 in the outer banks. I think that threat will spread inland somewhat, and it's going to kind of combine with what's going on down just north of Puerto Rico. And that will, basically, spread general nastiness across the northeast over the next couple of days. I don't think we'll see damaging widespread winds, but we'll see a lot of coastal flooding, see a lot of rain, a lot of wind and that will cause some problems. Here it is, getting a little bit more organized. It could bring heavy rains at Puerto Rico over the past couple of days. We can hope that it scoots out to sea.
Let's go over what the computers are saying for that storm into the Carolinas, for this storm up towards eastern New England. And they kind of combine over the weekend. So, that's why, even though we're not seeing a direct line over the metropolitan areas of New York City, Philly, D.C., or Boston, these two are close enough to where we'll probably see some ugly weather in general.
And I think all the beaches from New England down across Jersey through the Delmarva and through the outer banks, we will see coastal flooding as these winds, which will be strong at times, anywhere from 50 to 60 miles an hour will push up that water and cause some localized flooding. We've already seen that.
It will also cause some delays at the airports today. More so for D.C. and, say, Charlotte. And then tomorrow, I think all of the major airports from D.C. all the way up to Boston are going to be influenced by this.
Heavy rain will stretch into the D.C. area and through Richmond and through The Appalachians, and eventually up towards New York City as well. This doesn't get entirely to where it needs to go. We're still in a drought situation from Alabama and through parts of South Carolina. They'll get some rain, but not as much as they would hope. And, of course, the Georgia area still in the midst of the drought. And, generally, quite weather across the Midwest at least for now. So the East Coast only began the next day and a half until two days -- Heidi.
COLLINS: OK, Rob. We will be watching it very closely. Let us know if we need to come back because I know that thing is developing pretty quickly. Thank you.
MARCIANO: You got it.
COLLINS: Riding shotgun in the HOV lane. You'll meet one man's Plexiglas passenger.
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COLLINS: Keep your hands on the wheel and your eyes on the road. There's an idea. Drivers in California will be banned from texting while driving under a bill signed into law yesterday. Beginning January 1st, drivers caught texting or reading text messages while driving now face a $20 fine for the first offense, a $50 fine for repeat offenses. The new regulation expands on the law in place since July that banned using hand-held cell phones while driving.
Beating rush hour traffic. We all want to do it. I know you've thought of this. Not many of us, though, would probably go to this extent. Check it out. A New York man used a Plexiglas cutout as a passenger so that he could get away with driving in the HOV lane. It worked for more than a year. But one cop spotted something funny and pulled the guy over.
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DEPUTY SHERIFF ROBERT HOWARD, SUFFOLK COUNTY SHERIFF'S DEPT.: I started noticing the operator talking with his hands and looking over at the subject next to him which I noticed the gentleman wearing a hat. So it appeared there's two people in the car. I said it still looked strange because the person next to him wasn't moving.
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COLLINS: Plastic doesn't move a whole lot, does it? We're told the driver got a $90 ticket and could get hit with three points on his license.
Outrage inside Washington, outside Washington. Voters venting about the government bailout plan, elected officials really hearing it in one western state.
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COLLINS: Ovarian cancer. We told you yesterday about a new gene marker that may help predict which women will get the disease. Judy Fortin has more now.
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JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice-over): Two years ago, 49-year-old Ethie Radanovich wasn't feeling well, run down, bloated with pains in her lower back and abdomen. She went to her doctor. Within days she was diagnosed with ovarian cancer.
ETHIE RADANOVICH, OVARIAN CANCER SURVIVOR: Did I think I had ovarian cancer? No way. I mean, it just didn't even occur to me.
FORTIN: Once known as the silent killer, ovarian cancer is no longer quiet. Women are surviving the illness much longer because they're taking steps to prevent it and recognizing the symptoms sooner.
DR. JONATHAN COSIN, WASHINGTON HOSPITAL CENTER: Most women in their 30s and 40s are really looking at, you know, trying to prevent the disease later on because most women who are diagnosed with it are diagnosed with it in their 50s.
FORTIN: In your 30s and 40s, the best way to fight ovarian cancer is to know your family health history. If your grandmother, mother, even aunt was diagnosed with it, you're at risk and could develop the disease at an earlier age. So tell your doctor and keep up on your yearly exams. And don't rely on a Pap Smear to detect ovarian cancer. Pap Smears only look for abnormal cells related to cervical cancer. An incorrect assumption Ethie made when it came to her checkups. RADANOVICH: That was a big surprise to me, too. I didn't realize. I thought, you know, with the Pap Smear, it's, you know, your get out of jail free. That it covers you for all sorts of illness.
FORTIN: Preventing ovarian cancer is tough. But doctors say ovulation is key. Women who ovulates less frequently seem less likely to develop the illness.
COSIN: Anything that will reduce your number of ovulations will reduce your risk. So being pregnant, because you don't ovulate when you're pregnant, you don't ovulate when you're taking birth control pills and most women don't ovulate when they're breast-feeding.
FORTIN: In your 40s and 50s, know the symptoms. Ovarian cancer can cause severe bloating, change in bowels, pains in the abdomen and back, fatigue and lack of appetite, although you continue to gain weight. If these symptoms continue for more than a couple of weeks, see your doctor.
COSIN: Everyone probably listening has probably had one or more of those symptoms. What we, you know, advise women to think about when they're experiencing these symptoms is are the symptoms persistent and are they progressive.
FORTIN: And if you're at high risk and have symptoms, you may want to ask your doctor for a blood test that can detect a possible presence of ovarian cancer.
For Ethie Radanovich, early diagnosis was crucial to her treatment and recovery. She hopes by getting the word out about the ovarian cancer symptoms she'll be able to help other women beat the disease.
Judy Fortin, CNN, Atlanta.
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