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Obama, McCain and President Bush to Meet Today; The Crisis on Wall Street Continues; Obama Addresses Key Issues at CGI
Aired September 25, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Rescue in the works. We are watching the action on Wall Street as Congress closes in on a major bailout bill. It's not done yet but already getting big push back on Main Street.
Also today, rare financial summit at the White House. The two presidential candidates agreed to attend, but disagree about their next big event, the one you are waiting for. It's Thursday, September 25th, I'm Heidi Collins. You are in the CNN NEWSROOM.
The financial crisis. Dire warnings and disturbing numbers this morning. Your money is at stake, both in the bailout plan and in the markets where nervous investors are waiting for some answers. Want to give you a live look now at the big board. Dow Jones Industrial average is up by triple digits, 160 points now, about 30 minutes into the trading day. We'll keep an eye on those numbers.
From Wall Street to Pennsylvania Avenue, there's an awful lot to cover. CNN crews are in place to break it all down. Christine Romans crunches the numbers at the White House; Elaine Quijano and Dana Bash, Suzanne Malveaux, following the presidential campaigns.
Let's start with Senator John McCain taking a political gamble. He's actually off the campaign trail this morning, 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 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 advisors.
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 them to convene this by partisan 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 tail spin and polls showing voters looking more towards Obama to the issue, what he can bring to the table right now is leadership. And that's 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: And right now we are waiting to hear from Senator Barack Obama. He's expected to talk at the Clinton Global Initiative this hour in New York. He'll be coming in via satellite. We did just hear a few moments ago from Senator John McCain, at that event, as well. Obama also plans to show up for tomorrow night's debate at the University of Mississippi.
Our Suzanne Malveaux is on campus where once again, we're still kind of in limbo here, are we not, Suzanne? This going to happen or not?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: We're very much in limbo here. And I have to tell you, they're a lot of people in this campus who are very angry and very frustrated at the notion that this could be delayed. But they are behaving as if everything is going to go according to plan. They've issued their credentials. I was in the Ford Center. That is where they've got two podiums there set up side by side, expecting both of these candidates to arrive tomorrow, even Gloria Kellum. She's the vice chancellor for university relations, she spoke to CNN this morning. She is quite frustrated, as well.
This university has spent more than $5 million in debate preparation here. So, they are expecting both of these candidates to show up tomorrow. Now, I've spoken with an Obama spokesman who says that Obama has every intention of doing so. We don't know if John McCain does. And all of this comes, Heidi, as you know, after a day of high, high drama.
Barack Obama saying he reached out to McCain in the morning to talk about issuing a joint statement regarding this economic -- this bailout blueprint here, if you will, that McCain got back to him a little bit later in the day saying that he wanted to go even further, suspending the campaign, delaying the debate. Barack Obama saying that, well, let's issue the joint statement first and let our staffs work that out. Perhaps that will be part of this.
But the Obama camp says they were surprised, they were shocked to find John McCain on the airwaves just minutes after that conversation issuing that direct challenge to Barack Obama.
Here's 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: And Heidi, so obviously it's a political gamble for both of these candidates. But, people on this university campus, city officials as well as students here, they want this to happen. They want it to happen tomorrow, they say. And there's a big price tag that goes along with it -- Heidi.
COLLINS: All right. CNN's Suzanne Malveaux. We will just have to wait and see what happens with all that. Live from Oxford, Mississippi, today.
Thanks, Suzanne.
Both campaign trails will be converging at the White House this afternoon. This we do know. There are chilling words still echoing from the president's address to the nation.
Here now, CNN's White House correspondent, Elaine Quijano.
(BEGIN VIDEOTAPE)
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (voice-over): Warning of a financial doomsday unless government intervenes.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America could slip into a financial panic and a distressing scenario would unfold.
QUIJANO: President Bush sounded the economic alarm, laying out his case for a $700 billion bailout plan personalizing it for Americans.
BUSH: More banks could fail including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet.
QUIJANO: The president framed the proposal as a national rescue plan for all Americans.
BUSH: Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And ultimately our country could experience a long and painful recession.
QUIJANO: And he defended the plan as a necessary step in extraordinary times.
BUSH: My natural instinct is to oppose government intervention. But these are not normal circumstances. The market is not functioning properly. QUIJANO: Also unprecedented, the meeting the president called of both presidential candidates. And Congressional leaders of both parties.
BUSH: There is a spirit of cooperation between Democrats and Republicans and between Congress and this administration. In that spirit I've invited Senators McCain and Obama to join congressional leaders of both parties at the White House tomorrow, to help speed our discussions toward a bipartisan bill.
(END VIDEOTAPE)
COLLINS: CNN White House correspondent Elaine Quijano joining me to talk a little bit more about this.
So Elaine, the last time we saw the two and candidates together, they were actually remembering the tragedy of September 11. Now they will be together again, discussing this latest crisis with the president. What can happen, what can be accomplished in this meeting?
QUIJANO: Well, from the White House's perspective, the feeling here among aides is that, look, if they can get the two presidential candidates, right now this is such a heated moment on the financial markets. That if they can get them behind this plan that, in fact, when it comes up for a vote, if and when it comes up for a vote, this week or perhaps early next, that, in the fact, that will pass.
Now, whether or not a lot of the deal making is already going to be done by the time this meeting happens, 4:00 Eastern time, we just don't know. It will be interesting any way you can slice it. Reporters, we should tell you, Heidi, are going to be allowed in at the top of that meeting when it takes place -- Heidi.
COLLINS: OK. Well, we'll be watching for that and your report there. Thanks so much. CNN White House correspondent Elaine Quijano.
The proposed bailout and its $700 billion price tag has a lot of taxpayers angry and taking action. In fact, protests are scheduled in about 130 U.S. cities and towns today. Many of the events are clustered in California and Florida.
Now, paying for the bailout. How would you foot the bill? CNN's Christine Romans has answers for us today.
How will most people feel this, Christine, when they look at either their paychecks or their taxes or their mortgages? Where will they see it first?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, that's the good question, Heidi. Because bottom line is, when we talk about these huge deficits that the United States runs, we're kind of numb to them as consumers and taxpayers because we don't get a check in the mail that says your share of this is X hundreds of dollars.
If you take $700 billion and divide it by the number of people in this country, it comes out to roughly $2,300 per person. Per every man, woman and child in this country. You're not going to get a bill in the mail for it. But what happens is, we keep building up all of these debts that we have to pay. And now we owe $9.7 trillion. That is how much we've already spent that we didn't earn, that we didn't bring in. That is our big debt.
So, how are we going to pay for another $700 billion? Well, we're going to get the money the way we always do. We're going to borrow it. And this is the way we often do these kinds of things. We had to borrow money also for the stimulus check earlier this year.
Now The Treasury secretary has asked Congress to raise the debt ceiling. That's the amount of money that we can be running beyond our means. We've already raised it once this year. They want to raise it again to $11.315 trillion. It's almost impossible to imagine how much money that is. But, when you look at the size of the national debt to the size of our economy, we're approaching levels that we haven't seen since 1954. And that's, Heidi, when we were trying to dig out from World War II. So our mile markers here and World War II and the Great Depression. So, you can see how just incredibly important all of this is.
But, bottom line that we're hearing from the Treasury secretary and from Ben Bernanke, the Fed chairman, yesterday in all that testimony, is the cost of doing nothing is much, much more. When you take a look at living standards, possibly being eroded by a sharp, deep recession, that $700 investment now, pails in comparison to what the draw back could be.
Also, you pointed out very well the last time we talked that Ben Bernanke said, we keep talking about the $700 billion price tag for this thing. He hopes it won't be -- that's how much the Treasury secretary has asked for to buy back some of this toxic debt. But, they're hoping that ultimately it won't cost that much in the end.
COLLINS: Yes. And it's possible that that could happen. I mean, I do think it's a good point. Because when we talk about $2,300 for each American, that is based on the fact that it would be $700 billion. And I just don't think anybody knows that yet.
CNN's Christine Romans. Thank you, Christine.
1-2 punch form the Atlantic coast. The Carolinas getting smacked around right now. But, rough stuff ahead from the northeast, as well. We're watching from the weather center.
(COMMERCIAL BREAK)
COLLINS: Sunny skies, where are you? Be glad if you're seeing some of them. It's anything but along the Atlantic coast. The surf's really kicking up as the storm bears down on the Carolinas. Flood watches and warnings are up for much of the eastern seaboard now. Streets already under water in places as you see there like Norfolk, Virginia. And Hatteras Island, North Carolina, the stormy weather has also forced some schools there to close. You may know it as the Outer Banks.
Rob Marciano's been watching all of it for us. Hey Rob, what's the latest now? This thing is getting stronger, moving faster?
ROB MARCIANO, AMS METEOROLOGIST: It's festering and drifting. How does that sound?
COLLINS: Not good.
MARCIANO: Neither one actually sounds too good, right? It's still pounding the Carolina coastline. And the fact that it's taking so long to come ashore is just -- you know, it's the relentless pounding of the waves and the wind that does the most amount of damage. Because it just eats away at the beach, eats away at the shoreline and then eats away at any structure that might be along the shoreline.
So, here it is. It's kind of a hybrid plain old storm that you see during the fall. And taking on some tropical characteristics. So, National Hurricane Center you know, is worried about that. Worried about it intensifying. But it's already had winds of 50, 55 miles an hour come on shore yesterday. And that will become more prevalent today.
(WEATHER REPORT)
COLLINS: Quickly want to get some information out to you here. Coming to us from the Associated Press. You're looking at some video here of Delta, because apparently Northwest Airlines shareholders have proposed -- excuse me -- approved -- this is the language they're giving us -- a proposed combination with Delta Airlines.
The shareholders for Delta are scheduled to take a vote on this combination. It's going to be happening a little later on today apparently right here in Atlanta. The combination, again, called a combination, still has to get antitrust approval by the Department of Justice. Both Atlanta-based Delta Airlines and again Eagan, Minnesota, based Northwest, expect the deal to be complete by the end of the year.
So once again, they're calling it a proposed combination between Northwest Airlines and Delta Airlines. So, that vote happening later today. We will watch that story for you here.
Dire warnings now from Washington. The nation's financial markets on the brink. And a president race possibly thrown off course. Here to talk about all of it with us today, Democratic strategist Keith Boykin and Matt Lewis, a conservative blogger at townhall.com.
Thanks guys, for being here today.
There is an awful lot to talk about it. Obviously there's a political side of things and then there's the much larger picture of the fiscal situation that we are in. A lot of people would argue you can't talk about one without the other.
How much of this is political wrangling? Keith, I'll start with you. KEITH BOYKIN, DEMOCRATIC STRATEGIST: I think this is all political. I mean, John McCain's ploy yesterday to try to suspend the debate and suspend his campaign and postpone the debate. I have never seen anything like this before, Heidi. And I think it shows that John McCain is becoming increasingly desperate in his campaign. Polls are showing he's going down. He's afraid to debate Barack Obama. I don't understand why because John McCain Is a good debater. But, it's an indication that John McCain shoots from the hip. Or more likely shoots from the lip, every time he speaks. And he's not the guy with the judgment to make decisions.
COLLINS: Matt, is John McCain afraid to debate Barack Obama?
MATT LEWIS, TOWNHALL.COM: Well, I think that's laughable. I mean, John McCain clearly in a debate format -- Barack Obama is very good at giving speeches when he has a teleprompter. But everybody knows that John McCain is very, very good at actually taking tough questions.
I think what we've seen here today and yesterday though, is an example of a statesman. John McCain is essentially doing the same thing he did at the Republican convention. You remember the first day of the convention was postponed and suspended because of the hurricane. I think that right now we have an economic hurricane that's hitting. And it's entirely appropriate, especially for a sitting U.S. senator who, by the way, has a record, unlike Barack Obama, of bipartisan of compromise and getting things done in Washington --
COLLINS: Well, that's what I want to ask of the both of you. I mean, how much of this really, honestly could, in fact, be bipartisan? Because I know you are both aware that later on today a meeting between the two of them and the president is going to take place.
Is there any possibility at all they could genuinely be bipartisan? Keith?
BOYKIN: I don't know. And I think it's possible. But the problem is that John McCain has politicized this whole thing by introducing presidential politics into a financial crisis which is exactly what you don't need to happen.
And you know, John McCain said once before, he doesn't know a lot about the economy. Clearly it's shown in the past week or two. When this whole economic collapse started, what happened? John McCain went out and he said the fundamentals of the economy are strong. What was he thinking when he said that? Then he says he was against the AIG bailout and then turns around and says he's in favor of it.
John McCain said he's against the bailout for the $700 billion, and then he turns around a couple days later and said he hasn't read the proposal. What is John McCain's thinking about? Is this the kind of leadership we can expect for the next four years from a --
COLLINS: So your answer is no, absolutely not. It couldn't be bipartisan? Matt? LEWIS: Well, first of all I think it's ludicrous to say by wanting to put politics aside, John McCain is somehow injecting politics into the debate.
He's actually the person who wants to put politics aside for a couple days and actually focus on the work of the American people. Personally, I think this bailout is bad news. I mean, we're essentially asking to turnover a lot of authority that isn't constitutionally guaranteed to Paulson. I want John McCain and Barack Obama in that room helping decide, and hopefully John McCain can work out some sort of compromise that would keep this thing from being a disaster that it looks like it might be.
COLLINS: All right. Sorry guys, unfortunately trying to give equal time to both of you, one answer from each. And we're out of time.
We have so much to talk about today. I'm sure you understand.
Democratic strategist, Keith Boykin, and Matt Lewis, conservative blogger at townhall.com.
Thanks for being here guys.
LEWIS: Thank you.
COLLINS: Well you saved for retirement, but a tough economy has you wondering now if you should tap into those savings you have.
Gerri Willis has some words of warning in a moment.
(COMMERCIAL BREAK)
COLLINS: A crumbling economy may be tempting you to tap into your 401(k) retirement savings if you have no other options. Personal finance editor, Gerri Willis, is here with what you need to know.
Because, Gerri, there are rules on this.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: There are rules. But before we get to them, I just want to say, this is your last-ditch option. Look -- this is the last thing you want to do. If you have to, there are rules. You can access your retirement money through a hardship withdrawal if you need emergency funds. But your circumstances have to meet certain criteria.
First, you can only use the money if you need to pay down medical expenses, avoid foreclosure on your primary home, pay college tuition -- you see the list here -- lose your job, become disabled. Now, you'll probably have to pay a 10 percent penalty if you are 59-and-a- half years old or less. On top of that 10 percent, you'll also be paying income taxes. Bottomline here, you're going to be paying about 40 percent in taxes. It's going right back to Uncle Sam.
Keep in mind that employers are not required to offer you hardship withdrawal options on your plan in the first place. So it may not even be possible. But it's a very expensive option.
COLLINS: Yes, it is. And so you call it hardship withdrawals.
Any alternative to those?
WILLIS: Well, you can borrow money from your 401(k). If you take a loan out of your 401(k), you're just basically borrowing money from your nest egg. You pay it back to yourself without having to pay a penalty or taxes. Generally you've got about five years to pay it back. And in some circumstances, like buying you're first home, you can take up to 15 years to pay yourself back.
But you should know there are limits. Usually you can only take up to 50 percent of the value of your 401(k) up to 50,000 bucks. And these days taking out a loan is especially risky because if you're fired or if you quit, you'll have to pay back the entire amount that you borrowed within two or three months. Now if that's just not possible, you owe taxes and a 10 percent penalty on what you took out.
So are you getting the picture here? This can be expensive, too.
Another reason 401(k) loans are not ideal -- you're basically taxed twice on your money since the money you repay the loan with is after-tax dollars. And you're hit again when you withdraw the money.
COLLINS: Yes, wow. It is very scary, that option, indeed.
But -- when we talk about age, I know this has a lot to do with it. Why is tapping into your 401(k) absolutely the last resort?
WILLIS: Well look, Heidi, any way you look at it, if you take money out of your retirement fund before you're 59-and-a-half years old , you're running risk of running out of money when you retire. On top of all the penalties, the taxes, your employer can also charge you fees for taking out a loan or a hardship withdrawal. It's simply not cheap and there can be annual service fees, too, of 3 bucks to 75 bucks.
Your employer can change the rules of the game at any time. Make sure that any 401(k) loan you take out or hardship withdrawal is absolutely, as we said before, the last resort.
And of course, if you have any questions for us, send them to us at toptips@CNN.com. We love to hear from you.
COLLINS: And I know you've been busy working on "Open House" because of all this news that has come in over the last couple of weeks.
What will we see on Saturday?
WILLIS: Well first of all, we're going to be giving you great advice on what to do in this scenario, in the situation we're in right now. What are your top moves right now? Plus, we're also going to winterize your home, your No.1 investment. We're going to help you cut that heating bill this winter. COLLINS: All right. CNN's personal finance editor, Gerri Willis. You can watch her for "Open House" this weekend, too.
Thank you, Gerri.
WILLIS: My pleasure.
COLLINS: Delay the debate? John McCain wants the financial crisis to take focus. Well what do you think? We've got your iReports.
(COMMERCIAL BREAK)
COLLINS: We very quickly want to get directly to our Pentagon correspondent, Barbara Starr, with more information, Barbara, on some incident that happened on the border of Pakistan and Afghanistan?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Heidi, U.S. military officials are confirming earlier today two coalition helicopters -- actually Army Kiowa helicopters -- came under small arms fire when they were traveling along the Afghan side of the border. They were fired upon, the U.S. says, from Pakistan. A Pakistani military check point near the border firing on these helicopters. The helicopters got away. The U.S. pilots report everything is fine.
But the U.S. feel this was deliberate targeting by the Pakistanis. According to one U.S. military official that check point thought the helicopters were on the Pakistani side of the border. Another official is saying it's an unfortunate misunderstanding. But this is now, according to U.S. officials, very familiar with the incident, the first verified incident, of Pakistan firing on U.S. military helicopters. Misunderstanding or not, it just simply raises tensions in that area -- Heidi.
COLLINS: Quickly, the mission they were on, likely some type of border patrol?
STARR: Exactly. These helicopters were monitoring a patrol on the ground providing some air cover. It comes as tensions are rising. Pakistan -- the U.S. State Department today putting some restrictions and warnings for U.S. travelers to Pakistan. Another official, very familiar with the situation, tells us this is all because -- these warnings -- because there is new chatter from a warlord out there, a man named Surage Hikani (ph) threatening more attacks against Western interests in Pakistan. All of this simply raising tensions in this area, of course, after that deadly bombing at the Marriott Hotel in Islamabad -- Heidi.
COLLINS: Yes, exactly. All right. CNN's Pentagon correspondent, Barbara Starr, working the story for us on the Pakistan-Afghanistan border, the incident there.
Barbara, thank you for that.
Well as you know by now, just looking at your clock, it has been about an hour since the opening bell on Wall Street. And the action looks like that, up to the positive, triple digits -- about 215 points now -- the Dow Jones Industrial Averages.
President Bush driving home the urgency of the financial crisis. In fact, he delivered the bleak prospects to your living room last night. His primetime address calling for swift passage of a bailout plan.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The market is not functioning properly. There has been a widespread loss of confidence and major sectors of America's financial system are at risk of shutting down. The government's top economic experts warn that without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.
More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically. And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors and millions of Americans could lose their jobs. Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And, ultimately, our country could experience a long and painful recession.
(END VIDEO CLIP)
COLLINS: John McCain and Barack Obama head to the White House this afternoon for a meeting on the financial rescue plan. This morning, McCain told members of the Clinton Global Initiative the crisis has global implications.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: 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 --
(END VIDEO CLIP)
COLLINS: Right now, in fact, we are waiting to hear from Senator Barack Obama. Looks like they have just brought him up via satellite from Clearwater, Florida. Again, addressing the Clinton Global Initiative. I believe we're going to go ahead and listen in for a moment.
(JOINED IN PROGRESS)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Thank you. Thank you very much.
It is absolutely great to speak to you this morning, and I'm so sorry that I can't be there. But as President Clinton mentioned, I enjoy tremendously the opportunity to sit with him --
(AUDIO GAP)
COLLINS: As you can tell here, we are trying to bring this to you from New York at the Clinton Global Initiative conference, if you will. This is Senator Barack Obama who is trying to address that crowd by satellite. He's actually in Florida. I believe, from what I can tell and what you can tell at home, they are having some audio difficulties there. So we're going to continue to monitor that and try and get back to it just as soon as possible.
Meanwhile, the next president should be able to deal with more than one thing at once. Those words from Barack Obama who says he will show up to tomorrow's debate with or without John McCain.
In fact, I want to get you back to Senator Barack Obama now, because I think they have fixed the audio problem.
(JOINED IN PROGRESS)
OBAMA: ... as serious as any that we've faced since the Great Depression. And action must be taken to restore confidence in our economy. Let me be clear -- it's outrageous that we find ourselves in a position where taxpayers must bear the burden, and the risk, for greed and irresponsibility on Wall Street and in Washington. But we also know that a failure to act would have grave consequences for jobs, for savings and retirement for the American people.
Over the last few days, I've been in close contact with Secretary Paulson and leaders in Congress. I've had an opportunity to speak directly to the American people about what we need to do moving forward. I've laid out several clear principles that I believe must be a part of our response to this crisis.
First, we need to set up an independent board selected by Democrats and Republicans to provide oversight and accountability for how and where this money is going to be spent every step of the way.
Second, if American taxpayers finance this solution, they have to be treated as investors. And that means Wall Street and Washington should give every penny of taxpayers' money back once this economy recovers.
Third, we cannot and will not simply bail out Wall Street without helping the millions of innocent homeowners who are struggling to stay in their homes. They deserve a plan, too.
And finally -- this is important -- the American people should not be spending one dime to reward the same Wall Street CEOs whose irresponsibility got us into this mess in the first place.
Congressional leaders have made great progress in their negotiations. They appear close to a deal that would include these principles. President Bush addressed some of these issues last night. And I'm pleased that Senator McCain has decided to embrace them as well. And I was pleased that we were able to put out a joint statement indicating the degree to which this goes beyond traditional election-time politics.
Now is the time to come together, Democrats and Republicans, in a spirit of cooperation on behalf of the American people. Later today I'll be traveling to Washington to offer my help in getting this deal done. And then I'll travel to Oxford, Mississippi, on Friday for the first of our presidential debates.
Our election is in 40 days. Our election is in 40 days. Our economy is in crisis. Our nation is fighting two wars abroad. The American people, I believe, deserve to hear directly from myself and Senator McCain about how we intend to lead our country. The times are too serious to put our campaigns on hold or to ignore the full range of issues that the next president will face.
(APPLAUSE)
Now since CGI is about deeds and not just words, let me tell you about four specific commitments that I will make on four issues that CGI has focused on -- climate change, poverty, education and health -- if I have the opportunity to serve as president of the United States. Here is how I will approach these issues.
We live in a time when our destinies are shared. The world is more intertwined than at any time in human history. Walls that divided old enemies have come down. Markets have opened up. The spread of information and technology has reduced barriers to opportunity and prosperity and opened doors to new competition and risk. We have heard this time and again since the end of the Cold War. And over the last few weeks, this truth has been reinforced anew.
In America, we have seen that there's no dividing line between the ability of people to live their dreams on Main Street and the bottom line of investment banks on Wall Street. There's a lesson that cuts across this economic crisis -- prosperity cannot be sustained if it shuts people out. Growth cannot just come from the top down, it must come from the bottom up with new jobs that pay good wages and new innovation that creates opportunity across the globe. And in the 21st century, we must also recognize that it's not just prosperity that comes from the bottom up, our security is shared as well.
The carbon emissions in Boston or Beijing don't just pollute the immediate atmosphere, they imperil our planet. Pockets of extreme poverty in Somalia can breed conflict that spills across borders. The child who goes to a radical madrasa outside of Kurachi can end up endangering the security of my daughters in Chicago. And the deadly flu that begins in Indonesia can find its way to Indiana within days.
Climate change, poverty, extremism, disease -- these are issues that offend our common humanity. They also threaten our common security. And you know this. The question is, what do we do about it? We're not going to face these threats of the future by grasping at the ideas of the past. In many cases we know what we have to do. We talk about the solutions year after year. This must be the time when we choose not to wait any longer. We must martial the will. We must see that none of these problems can be dealt with in isolation, nor can we deny one and effectively tackle another. And that's why you've come to CGI. Because that's what this moment calls us to do.
Now no single issue sits at the crossroads of as many currents as energy. And you already heard from Vice President Gore who I think explained very well exactly what's going on. Our dependence on oil and gas funds terror and tyranny. It's forced families to pay their wages at the pump, and it puts the future of our planet in peril. This is a security threat, an economic albatross, and a moral challenge of our time. The time to debate whether climate change is man-made has passed. It's time finally for America to lead.
The first commitment -- the first commitment that I'll make today is setting a goal of an 80 percent reduction in greenhouse gases -- greenhouse gas emissions by 2050. To do our part, we will implement a cap and trade program so that there's a price for pollution, and resources to transform our energy economy. I proposed an investment of $15 billion a year, $150 billion, all told, over 10 years in alternative energy which will create millions of jobs and break the cycle of our addiction to oil. We need to do more than drill. We have 3 percent of the world's oil reserves. We use 25 percent of the world's oil. We have to change our energy mix and we have to change how we use energy. Now is the time for some leadership from the White House.
Now is the time to develop -- now is the time to develop every form of alternative -- energy, solar, wind and biofuels, as well technologies that can make coal clean and nuclear power safe. We need to raise fuel economy standards, put plug-in hybrids on the road and find new ways to be energy efficient.
Abroad, the United States must get off the sidelines. When I'm president, we will reach out to the leaders of the biggest carbon emitting nations and ask them to join a new global energy forum to lay the foundation for the next generation of climate protocols. We'll build an alliance of oil importing nations and work together to reduce our demand. And as we develop clean energy, we should share technology and innovations with the nations of the world. This effort to confront climate change will be part of our strategy to alleviate poverty. Because we know that it's the world's poor who will feel, and who may already be feeling, the effect of a warming planet.
If we fail to act, famine could displace hundreds of millions, fueling competition and conflict over basic sources like food and water. We all have a stake in reducing poverty. There's suffering across the globe that doesn't need to be tolerated in the 21st century. It leads to pockets of instability that provide fertile breeding grounds for threats like terror and the smuggling of deadly weapons that cannot be contained by the drawing of a border or the distance of an ocean. And these aren't simply disconnected corners of an interconnected world.
And that is why the second commitment that I'll make is embracing the millennium development goals which aim to cut extreme poverty in half by 2015. This is going to take more resources -- this will take more resources from the United States. And as president, I will increase foreign assistance to provide them. But the resources must be focused on the right priorities. No one wants to put good money after bad, or ignore the underlying causes at the root of these problems. We shouldn't just settle for the status quo anywhere where you can't start a business without paying a bribe. Corruption wastes our tax dollars and it also ruins lives. It's a human rights issue, and we need to treat it as such. We should help those in need without helping them help themselves. And that's why I'll partner with the private sector in creating a new found for small and medium enterprise so we're investing in ideas that can create growth and jobs in the developing world.
Above all, we must do our part to see that all children have the basic right to learn. There is nothing more disappointing than a child denied the hope that comes with going to school. And there's nothing more dangerous than a child who is taught to distrust and then to destroy.
And that's why the third commitment I'll make is working to erase the global primary education gap by 2015. Every child, every boy and every girl, should have the ability to go to school. To ensure that our nation does its part to meet this goal, we need to establish a $2 billion global education fund. And I look forward to signing the bipartisan Education for All Act that was first introduced by Hillary Clinton, a true champion for children, not just here in the United States but all around the world.
Finally, we must continue the progress that's been made to advance the cause of global health. I've been proud to support the PEPFAR program. I think President Bush and many of you there have shown real leadership in the fight against HIV/AIDS, tuberculosis and malaria. And this is a fight that I intend to continue and step up as president.
Disease stands in the way of progress on so many fronts. It can condemn populations to poverty, prevent a child from getting an education. And yet far too many people still die of preventable illnesses. Today I'd like to focus on just one, malaria.
We have eliminated malaria in the United States. But nearly one million people around the world still die from a mosquito bite every year. 85 percent of the victims are African children under the age of five. In the Africa, a child dies from a mosquito bite every 30 seconds. And by the way, this is something I've seen personally. If you go to the village where my father grew up, where my grandmother still lives, the toll of malaria remains throughout the region. And beyond the devastating human toll, malaria weighs down public health systems, setting back global capacity to fight other disease.
So today I want to join with the global malaria community that is meeting here in New York to make a new commitment. When I am president, we will set the goal of ending all deaths from malaria by 2015. It's time to rid the world of a disease that doesn't have to take lives. The United States must lead. And when I'm president we will step up our focus on prevention and treatment around the world to get this done. The first project of my small -- the first project of my small and medium enterprise fund will be investing in the developing world's capacity to meet the demands for 730 million bed nets. We'll also increase access to doctors and nurses through a new program, Health Infrastructure 2020, that trains medical professionals in countries around the world and gives them incentives to stay there. And we'll invest in research and development into new vaccines and ensure that low-cost anti malaria drugs are available everywhere. This effort must bring together governments from around the world. It must be a public-private partnership that draws on the resources and ideas and resilience of businesses and non-profits and faith groups. It has to be a cause for countless individuals and a common goal that unites us all.
In short, the effort to eradicate malaria must draw on the spirit that drives not simply the commitments at CGI, but the commitment that is visible everywhere that people go to work to make their communities, their countries, and our world a better place. The scale of our challenges may be great. The pace of change may be swift. But we know that it need not be feared. The landscapes of the 21st century are still ours to shape.
We see the potential for progress every time someone starts a job creating new energy, or an idea carries a community out of poverty. We see it every time a girl walks through the doors of a new school or a boy lives to see another day because he had a simple net around his bed. These are dreams that we must make our own.
We live in a time when our destinies are shared. But our destinies will be written by us, not for us. That's something that President Clinton has understood. He understood it during his presidency, he's understood it in helping to shape CGI. Now, it falls to all of us to get busy, get to work, and to create the kind of world that we want our children and our grandchildren to grow up in.
Thank you so much, everybody. God bless you. Thank you.
(APPLAUSE)
WILLIAM JEFFERSON CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Great, thank you.
COLLINS: Senator Barack Obama speaking there via satellite from Clearwater, Florida, to the Clinton Global Initiative, the crowd that's gathered there. And you may have wondered why he kept pausing, well you were not able to hear some of the applause that he was getting as you were able to hear earlier. It was a different type of feed audio wise when we heard from Senator John McCain who also spoke a few moments ago.
So he talked mostly -- Barack Obama -- about the different areas that he would concentrate on if he were to become president of the United States.
I want to get back to this now today. You will be paying for it. Are you mad about that bailout plan? We talked to some people who are. Time to vent, right here in the NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: Two airlines seem to be one step closer to becoming one. CNN has now confirmed shareholders for Northwest Airlines give thumbs up to a deal combining it with Delta Airlines. Delta shareholders will meet later this afternoon.
A merger like this, of course, still has to get antitrust approval by the Department of Justice. We'll be watching that story for you.
Meanwhile, also watching the numbers. Stocks are rallying, despite a batch of disappointing economic reports and some worrisome guidance from one of Wall Street's most respected companies. Susan Lisovicz on the floor of the New York Stock Exchange now with more.
Up triple digits, yes?
SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, we're at session highs. Investors cheering reports, Heidi, of progress on the bailout plan. It's giving a big boost to financial stocks in particular. And so far investors are looking past a trio of weak economic reports.
Quickly, new home sales tumbled 11.5 percent in August, far worse than the street expected. That's the slowest pace in 17 years. Big drop in home prices, too.
Initial unemployment claims, meanwhile, rose much more than expected. Last week filing for jobless benefits jumped to nearly 500,000. Economists get worried when they get close to 400,000. It's the highest number of weekly claims since September of '01. Some of it due to Hurricanes Gustav and Ike.
And finally durable goods orders fell 4.5 percent as demand for autos and airlines fell sharply. Durable goods are items meant to last three years or more, everything from toasters and beyond.
Finally, that big stock -- company that you we were talking about when you tossed to me, Heidi -- General Electric, lowered its earnings guidance for the quarter end year (ph). GE shares are down 1 percent. It says there's unprecedented weakness and volatility in financial markets has weighed on its financial unit.
But the numbers -- well -- they show optimism overall. The Dow is up nearly 200 points right now. The Nasdaq and S&P all up about 2 percent. So a good, nice bounce back. The Dow has given up 560 points in the three previous sessions -- Heidi.
COLLINS: OK. Susan Lisovicz on the floor of the New York Stock Exchange.
Thank you, Susan.
LISOVICZ: You're welcome. COLLINS: We have reported an awful lot on reaction to the bailout plan from Wall Street to Main Street. And now Montana -- you may remember, key battleground state now in this election.
CNN chief national correspondent, John King, is there to the gauge the taxpayer anger that has gone from a simmer to a boil.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Montana is a long way from Wall Street and Washington, geographically and culturally. The talk of a big bailout there is the source of outrage here.
GOV. BRIAN SCHWEITZER (D), MONTANA: They say, my God, this looks like a condition where the powerful are going to give money to the rich. What's new?
KING: Democratic governor Brian Schweitzer calls it a classic case of Washington disconnect from the real world.
SCHWEITZER: People say, now wait a minute, my stock portfolio has gone down. I lost 15, 20 percent. My value is down to zero and they're going to bailout the big banks. What gives here?
KING: Out here what gives is a sudden and dramatic shift in public opinion. The more people hear about the $700 billion plan, the more they're trying to block it.
SUZANNE STUDER, CONGRESSIONAL STAFFER: Calling to protest? Well you know, I heard a lot of those. Let me just get this written down.
KING: At the Helena office of Republican congressman Denny Rehberg --
STUDER: Against the bailout.
KING: -- Susanne Studer says she's never seen anything like it, a flood of call and amply evidence of why consensus in Congress is so hard to come by.
STUDER: What are you saying? Basically hit the bottom and start again?
KING: Dozens in the past few days, and not one in favor of the bailout.
STUDER: I've gotten one think about it.
KING: Montana's senators give similar accounts of overwhelming opposition and concern Congress is in too much of a rush.
(on camera): You're governor, you understand sometimes you've got to make decisions that drive you crazy, but you've got to do it. Is this something you think they have to do, despite that feeling on the street? Or is this something where they need to say, whoa, time out, let's think a little more about this? SCHWEITZER: Ask a few questions. If we're going to bail these coyotes out, well then how about if we have an equity position? Why wouldn't the taxpayer make a little money if they do turn around, instead of just shovelling that money out the door and have them pay themselves now big golden parachutes again.
KING (voice-over): All this in the closing weeks of a fiercely contested presidential campaign. A pointed reminder -- most members of Congress face the voters, too. And at a time of profound economic anxiety, it's apparent here that the politicians promising to fix things are held in considerably less than high esteem.
John King, CNN, Helena, Montana.
(END VIDEOTAPE)
COLLINS: I'm Heidi Collins. Join me again tomorrow morning starting at 9:00 a.m. Eastern.
For now, CNN NEWSROOM continues with Tony Harris.
