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Economic Relief Plan; Debate Results

Aired September 27, 2008 - 11:00   ET

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

T.J. HOLMES, CNN ANCHOR: You are in the CNN NEWSROOM on this Saturday morning. A lot of news unfolding live on the 27th day of September. I am T.J. Holmes in Oxford, Mississippi, this is the site of the first presidential debate last night that we didn't know if it was going to happen for sure, but it did happen. Hey there Betty.
BETTY NGUYEN, CNN ANCHOR: Yes, it did happen and we will have analysis of that of course with you there in Mississippi and I'm here at the CNN Center in Atlanta. We're talking about this, the economic rescue. Is it going to be on the way? Well, Congress is working hard and so are we, we're going to have the latest developments on that.

HOLMES: Also, we have highlights and lowlights from the debate that was here in Mississippi. We are on the election express.

NGUYEN: And the sad news today that we do want to report, actor, philanthropist, race car driver, Paul Newman, he is dead at the age of 83. So much more on his life and legacy right here in the CNN NEWSROOM. One of the biggest stars who ever did grace the big screen has died as we mentioned, Paul Newman, the man with those still blue eyes, who first became a star in the 1950s and just a real advocate for worthy causes later in life. Well he did lose his battle with cancer overnight. Paul Newman died at the age of 83 at his home in Connecticut. CNN's Allan Chernoff looks at the legendary life of this Hollywood icon.

(BEGIN VIDEOTAPE)

PAUL NEWMAN: Money won is twice as sweet as money earned.

ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): Paul Newman was the first person to say he was exploiting his fame, shameless exploitation is how he described it, in pursuit of the common good, which is the slogan of Newman's Own.

URVASHI RANGAN, CONSUMERS UNION: Did his celebrity status help the success of the line? It probably did. It was a quality product that allowed that line to sustain over time. And so his contribution to the consumer marketplace is actually quite significant.

CHERNOFF: It all started with salad dressing. Newman mixed his own and in old wine bottles gave it away for Christmas gifts. One year after pouring bottle after bottle, Newman and his buddy author E. Hotchner(sp) decided to try selling the stuff. Newman put up $40,000. They taste-tested the dressing made from all natural ingredients against commercial brands in the kitchen of Martha Stewart's catering business. Grocery store Leonard suggested putting Newman's face on the bottle. It was the first retailer to sell Newman's product.

RANGAN: He was almost a businessman ahead of his time frankly in the early 80s when he began this endeavor. There were not a whole lot of companies like his. He went into it with a particular mission, with a particular vision, to not compromise the quality of his ingredients, to not skim.

CHERNOFF: Today Paul Newman leaves behind a business empire. More than 100 products from popcorn to pasta sauce, salsa to steak sauce. And most recently Wine, Chardonnay and (INAUDIBLE). Annual sales are about 120 million dollars. And best of all, Paul Newman has donated all his after-tax profits to charitable projects. Hundreds and hundreds of non profit groups have received more than $250 million. Most notably, the hole in the wall camps for children with life-threatening illnesses which Paul Newman helped start. Even more than his spectacular movie career, it was Paul Newman's charitable work made possible by his business empire that is perhaps Newman's greatest legacy. Allan Chernoff, CNN, New York.

(END OF VIDEOTAPE)

NGUYEN: He will be sorely missed. We will have much more throughout the day.

In the meantime, though, issue number one, of course the economy is more important than ever before. After working late into the night, lawmakers on Capitol Hill will be back at it this morning trying to strike a deal on the $700 billion bailout plan for Wall Street. Key lawmakers say they are making progress and have narrowed down the list of unresolved issues. Congressional leaders are pushing for a vote this weekend before Asian markets open on Monday. So we're waiting to see if that's going to happen. Let's get you more on the bailout talks right now. We'll go live to CNN's Kate Bolduan on Capitol Hill. There were some sticking points. How are they starting to really iron out those details?

KATE BOLDUAN, CNN CORRESPONDENT: Well they are ironing out the details Betty, what we're told this hour is Democratic and Republican aids are sitting back down after their late-night work, they're going to sit back down this hour to continue negotiations and try drafting some parts of this deal at least. While there are sticking points that the major players will be taking up when they meet later this afternoon, we have also heard just announced that one of those key players, Republican senator Judd Gregg, this hour is going to be briefing his Republican colleagues on the state of negotiations. I just spoke with the senator minutes ago and he talked to me about the negotiations saying while they may not all be on the same page, they are at least in the same book. He calls that progress. He talked about why this plan is so important from the trickle down from Wall Street to Main Street. Listen here.

(BEGIN VIDEO CLIP)

SEN. JUDD GREGG, (R) NEW HAMPSHIRE: The issue we're dealing with is having the capital markets open on Monday with the credit markets having freed up because they have confidence they are going to have the resources to free them. And do it in a way that protects the taxpayer and makes it clear that people aren't going to get windfalls and all walk away from this with money that they don't deserve.

(END OF VIDEO CLIP)

BOLDUAN: There is no question that Senator Gregg really was honest about it. He said there are challenges before them in this negotiation they do have to get their caucuses and their conference on board. Both Senator Gregg and we just heard from senate majority leader, Harry Reid that he announced that they are hopeful and they are going to try and get an agreement before 6:00 Sunday, before the Asian markets open. They are hopeful, they are optimistic and they're clearly working at this point.

NGUYEN: All right, thank you Kate, appreciate that. This bailout is of course designed to prevent a complete economic meltdown that trickles all the way down from Wall Street to your street. The question is, is it going to work? CNN's Allan Chernoff has some answers for us.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): Can $700 billion buy good health for the economy? Unlikely, say some economists. They warn we are headed for trouble even with a bailout.

DONALD STRASZHEIM, VICE CHAIRMAN, ROTH CAPITAL PARTNERS: This is going to be a difficult, ugly time. The difference is whether it's going to be a difficult, ugly time with this rescue package or whether it becomes dramatically worse without a package like this.

CHERNOFF: The point of bailing out banks is to restore confidence. The trust bankers and investors need to lend money. They lost it last week. Lending activity froze, virtually stopping the wheels of capitalism.

STRASZHEIM: The risk is that you and I go to the ATM machine at our local bank and instead of getting our $100 out of the bank, it gives us a notice that says, temporarily unavailable.

CHERNOFF: Even if congress were to approve a bailout today, it would take time to get the program going and rebuild confidence. Banks that sell their bad mortgage investments to the treasury will have to take losses, which could make them even more cautious to lend new money. And the bailout doesn't directly address what treasury secretary Henry Paulson says, is the root cause of our crisis, the housing market collapse.

NARIMAN BEHRAVESH, CHIEF ECONOMIST, GLOBAL INSIGHT: The housing recession is the worst since the great depression. There is no debate about that part of it. It's a horrible housing recession.

HENRY PAULSON, TREASURY SECRETARY: We must address this underlying problem and restore confidence in our financial markets and financial institutions so that they can perform their mission of supporting future prosperity and growth. CHERNOFF: The best case scenario Secretary Paulson says is that housing bottoms out in a matter of months. But he needs bank lending to recover much more quickly.

(END OF VIDEOTAPE)

NGUYEN: CNN's Allan Chernoff joins us now live from New York. Allan, when we talk about this plan and the $700 billion, which a lot of us can't even imagine that much money, what are we getting for that money, since the taxpayers are on the line?

CHERNOFF: Very good question, Betty. What we're getting is pretty much just protection against an economic collapse. As you see, there are still going to be plenty of problems, even if we were to get the package this very hour. The package is all designed to restore confidence to the lending market to prevent the economy from freezing up. That's pretty much it.

NGUYEN: That's frustrating for a lot of people, especially with this mortgage meltdown, people losing their homes and their jobs and all these other things. For this plan to say, ok, even though you are hurting, we are still charging you, the taxpayer, to help out corporate America. It seems like it is a necessary evil.

CHERNOFF: Yes. Obviously, congress is working to try to get some help in addition to some of those homeowners. Corporations are now definitely feeling the squeeze. Money is tighter, tougher for them to borrow. They are paying higher interest rates. If that were to continue, if it were to actually accelerate, we would really feel a major economic downturn. It may not feel like it just yet but this is what Secretary Paulson, the treasury secretary, and the head of the Federal Reserve, Ben Bernanke are worried about and what they have basically seen in the abyss that they looked into about a week and a half ago.

NGUYEN: Because if these banks and these corporations don't have the money to operate, things just really come to a standstill. Therein lies the major, catastrophic situation that they are talking about and why this plan is so essential.

CHERNOFF: Yes, jobs go, companies go bankrupt and the economy just becomes a snowball down a steep slope.

NGUYEN: All right Allan, thanks so much for breaking it down for us. We do appreciate it. Today on a special live edition of "Your Money," we are going to take a look at this bailout breakdown and what lawmakers need to do to save it. "Your Money," 1:00 p.m. eastern. You can also follow the crisis on Wall Street, the buyouts, the bailouts, the political negotiations, all of it at cnnmoney.com. All you have to do is logon now.

HOLMES: Hello again, everybody. I'm T.J. Holmes, live from the campus of Ole Miss here in Oxford, Mississippi, this of course the big site for the big debate last night. A debate that many weren't sure was going to happen. John McCain and Barack Obama in fact did step on stage together, went at it for about 90 minutes here last night. The first time the country has got a chance to see these two head to head in a confrontation if you will. The contrast stark when you put the two on the same stage together and had them answer the same questions, it was clear about their differences. This thing was supposed to be focused on foreign policy, this entire debate. That's what this first one was supposed to be about. However, with everything we're seeing right now, with the financial crisis in this country, there was no doubt that it had to be talked about and it dominated the first part of the discussion. Listen in.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: I have put forward a series of proposals that makes sure we protect taxpayers as we engage in this important rescue effort. Number one, we have to make sure that we have oversight over this whole process $700 billion potentially is a lot of money. Number two, we have to make sure that taxpayers, when they are putting their money at risk, have the possibility of getting that money back and gains, if the market and when the market returns. Number three, we have to make sure that none of that money is going to pad CEO bank accounts or to promote golden parachutes. And number four, we have to make sure that we are helping homeowners, because the root problem here has to do with the foreclosures taking place all across the country. We also have to recognize that this is a final verdict on eight years of failed economic policies promoted by George Bush, supported by Senator McCain. A theory that basically says we can shred regulations and consumer protections and give more and more to the most and somehow prosperity will trickle down.

SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: This package has transparency in it. It has to have accountability and oversight. It has to have options for loans to failing businesses rather than the government taking over those loans. It has to have a package with a number of other essential elements to it. Yes, I went back to Washington. I met with my Republicans in the House of Representatives and they weren't part of the negotiations and I understand that. It was the House Republicans that decided that they would be part of the solution to this problem. But I want to emphasize one point to all Americans tonight. This isn't the beginning of the end of this crisis. This is the end of the beginning if we come out with a package that will keep these institutions stable. We have a lot of work to do. We have to create jobs in one of the areas. Of course, is to eliminate our dependence on foreign oil.

(END OF VIDEO CLIP)

NGUYEN: There you have it. They talked a lot last night about the economy. As you mentioned, though, it was supposed to be a foreign policy debate. You can't really escape it in this day and time when lawmakers are trying to figure out some way to fix the financial crisis, T.J. When you sat with students last night, is that what they really wanted to hear or did they want to hear about the economy and how these candidates were going to fix the problems?

HOLMES: These students are about to graduate, many of them are just around the corner from graduation. So the economy, jobs, a big deal to them. Will they be able to find one? That's exactly so much of what they were talking about. Also, so much was talked about and you and I, Betty, were talking about this as well, the style. So many of the students just talked about, why isn't he looking at Obama? McCain just kind of looks a little -- he doesn't look as confident. They talked about appearance, impressions putting the two next to each other. This campus, itself, we're taking some pictures of it, gorgeous campus, they were excited, yes, the students were, to have the debates here, to be a part of history. This school took it upon themselves to showcase this state and this school in a different way. You heard the vice chancellor talk to me earlier about this being the old south. We want to show this isn't the old south. There is kind of an ugly history certainly in Mississippi, you go back to Medgar Evers and Emmett Till and other things like that. They took this as an opportunity, their responsibility to try to showcase this entire state in a different way to this country. Even the chancellor has been quoted as saying, you know what, any time there is a list that comes out that nobody wants to be on, Mississippi is at the top, whether that's literacy rates, whether that's poverty, obesity, Mississippi oftentimes has that bad rap and it's on the top of those lists. They took this as an opportunity to really showcase this school and this state in a different way and they certainly believe they accomplished it. So it wasn't just about this history being on campus, they took this as a much bigger role for them.

NGUYEN: Very quickly. Did you find a consensus? Did they see any particular candidate become the winner in this or did they just kind of feel like it was even?

HOLMES: If you talk to a McCain supporter, McCain won. If you talk to an Obama supporter, Obama won. That's pretty much it. This campus, certainly split. A lot of McCain supporters here who were upset that he might not come. But still said they would forgive him and still vote for him. But you have plenty Obama supporters here as well, so it just depends on who you talk to. No consensus at all.

NGUYEN: That's true. All right. If you missed any part of that presidential debate, T.J. I know you didn't and I didn't but in case you did, or if you just want to watch it again, tonight at 8:00. The best part, the best analysis, watch it all again with John King and the best political team on television. "The Next President, Round One", tonight, 9:00 p.m., only on CNN. Your home for politics.

Let's talk about the stormy weather right now because it continues to threaten the east coast. We've seen so much of it and there is more to come. We will have the latest.

(COMMERCIAL BREAK)

NGUYEN: It is a stormy weekend along the Atlantic seaboard. Check that out. A system that just never quite gained tropical strength, has smacked the Carolinas, is now moving into the New England area. Residents they are being warned to prepare for some strong winds and heavy rain. One of our i-Reporters shot the video that you're looking at right there, of flooding on the North Carolina coast. This is only the beginning because there is another storm brewing, Reynolds. This one actually does have a name. Folks are calling it Kyle.

(WEATHER REPORT)

NGUYEN: In Indiana, police are trying to piece together details of a horrific bus crash that killed four elementary school kids. Look at what's left of that bus. It happened yesterday afternoon at Logansport. Police say a dump truck was trying to get out of the way of a moped and it clipped the back end of the oncoming bus. That bus flipped onto its side and was hit by a second vehicle.

HOLMES: We're also keeping our eyes on the candidates this morning with the truth squad. We will have a report on what they had to say at last night's debate and were they telling the whole truth and nothing but the truth. Stay here.

(COMMERCIAL BREAK)

NGUYEN: You are looking there at actor, legendary actor, Paul Newman, who we learned today has died at the age of 83. He died last night at his home. He died of cancer. This is a man that's going to be known for more than his work on the silver screen. In fact he has done a lot to help charities, donating some $250 million. A lot of that went to the hole in the wall gang camp. What that is, is a camp for gravely ill children. I have with us on the phone Michael Raderstorf who is the entertainment director there at the hole in the wall gang camp. He joins us by phone. This has got to be really a sad day for you. Boy, Paul Newman has really left his mark on that camp and helped so many young people.

VOICE OF MICHAEL RADERSTORF, HOLE IN THE WALL GANG CAMP: He has, indeed. He has been an amazing inspiration for not only the children you serve but the staff, the volunteers, everybody really involved with the camp.

NGUYEN: I can hear it in your voice. It's obviously a sad day for not only you but so many. At the same time, talk to us about that camp and what it does and why it was so important to Paul Newman?

RADERSTORF: Well, the camp specifically serves chronically ill and terminally ill children. It basically just provides them an opportunity to experience a camp environment that they normally wouldn't be able to experience. They are able to do things that they never thought that were possible for them. They are surrounded by children and people who can identify with them, identify with their feelings and identify with their illness and their issues. It really enables them to do things that they never really thought were possible.

NGUYEN: Michael, I understand that Paul Newman was a regular at visiting the camp. In fact, doesn't he have a House that's right there on the property?

RADERSTORF: He was a regular. He has a House on the property, a log cabin that is totally secluded. So the kids don't even know that it's there. He could come and visit the camp. He always liked to stay sort of in the background, so that none of the focus was taken off the kids. You would just see him riding around on his bike. Then, he would stop in and have lunch with the kids or sit down at the dinner table with them and just sort of talk to them about their day and their lives. Most of them really had no idea who he really was, besides some of the older kids would recognize him from his picture. He was just incredibly loving to them. They all were obviously very taken by him. He was a very, very special and I would say, sacred place for these kids.

NGUYEN: How are you going to remember him best?

RADERSTORF: Well, definitely the legacy he's left in this camp. It certainly has changed my life, being able to -- I was an actor living in New York. I kind of found the camp by accident, performing at a benefit that he, Mr. Newman, was presenting, to raise money for the camp. I fell in love with it immediately. It made me realize that there are more important things in life than myself. I started volunteering at the camp and just fell in love with it. I'll remember the kids, specifically the look in their eyes when they are at the camp and how -- I mean, I saw it change their lives. Kids would literally stay alive long enough just to make it to camp for the summer. So his legacy, I think, is definitely left.

NGUYEN: It's affected so many people, not only those who loved his work on the screen but loved him for the man he was off the screen. Michael Raderstorf, entertainment director of the hole in the wall gang camp, thanks for sharing some of your memories and some of the information about the great works of Paul Newman. We do appreciate your time. We also want to read something actually Paul Newman's daughters regarding this sad loss. They released a statement today saying that Paul Newman played many unforgettable roles but the one for which he was proudest never had top billing on the marquee, devoted husband, loving father, adoring grandfather and dedicated philanthropist. Paul Newman, dead today at the age of 83.

(COMMERCIAL BREAK)

BETTY NGUYEN, CNN ANCHOR: Happening right now, we do have some sad news to report, legendary actor and philanthropist, Paul Newman has died. A spokesperson says the 83-year-old Hollywood icon passed away yesterday at his home in Connecticut. Newman had been battling cancer. Of course we're going to have much more on the life and times of this Hollywood icon throughout the day.

Let's get you to those presidential election notes as of last night, post debate spin game. It is in high gear. The day after Senators John McCain and Barack Obama faced off for the first debate. Last night's showdown in Mississippi had McCain challenging Obama's experience and Obama questioning McCain's judgment on Iraq and the economy.

Those crucial talks on Capitol Hill this weekend. It is all about your money. Lawmakers they are trying once again to reach an agreement on that $700 billion plan to bail out Wall Street, banks and other financials institutions strapped with bad loans that threaten to derail the entire economy. Congressional leaders say they are making progress. They hope to eke a deal by this weekend. We are watching it very closely. Now in the meantime, a lot of you may be asking just how bad is the financial crisis. Well, banks, strapped with bad loans are going under, left and right. But, why is this extraordinary government intervention needed? We are going to get more on that from CNN's Mary Snow. Take a look.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): It is a stunning turn. Washington Mutual is now the biggest bank to fail in U.S. history. JP Morgan Chase acquired it, took over its deposits and will write off $31 billion in bad loans. More bank casualties are likely to follow say economists, even with a bailout. Without one, economists paint a grim picture. A possible immediate scenario, banks freeze up and businesses have difficulty accessing cash.

JOSH BIVENS, ECONOMIC POLICY INSTITUTE: That means people don't get paid. Supplies don't get delivered so businesses can't continue business as usual.

SNOW: As serious as that is, several economists we spoke with say some of the starkest predictions of no bailout, such as a repeat of the great depression within days are overblown. It led one "Fortune" editor to declare, this isn't Armageddon. Saying panic right now will only make things worse.

GEOFF COLVIN, SENIOR EDITOR-AT-LARGE, FORTUNE: Any time there is a crisis of confidence, it becomes a kind of self-fueling cycle, a genuine vicious circle.

SNOW: One key difference between now and the Great Depression, economists say, when the stock market crashed in 1929, the Federal Reserve tightened credit instead of loosening it. Other policies were put in place to prevent history from being repeated. Economist Maria Fiorini Ramirez says the situation today may be different but it is serious enough to require prompt government action.

MARIA FIORINI RAMIREZ, GLOBAL ECONOMIC CONSULTANT: If we don't have something like this package or maybe something even bigger that we might need down the road, then I think the whole economy comes to a screeching halt.

SNOW: Some economists say the risk of doing nothing could be the worst economic experience since World War II. That means unemployment rising, people earning less money, some having to take two or three jobs to make ends meet. With the bailout, the best case scenario means losses will be stemmed. This package is just making a dent.

RAMIREZ: It's one step getting us closer to a resolve. It took us a long time to get here. It's going to take us maybe a couple of years to come out of it.

SNOW (on camera): As one economist put it, think of this financial crisis as a hurricane. With the goal of this bailout package to prevent it from going to a category 3 to a category 5. Mary Snow, CNN, New York.

(END OF VIDEOTAPE)

NGUYEN: There is a big difference between the two. That really does put it in perspective. Today, on a special live edition of "Your Money," a look at the bailout breakdown and what lawmakers need to do to save it. "Your Money," 1:00 p.m. eastern.

HOLMES: Well, the U.S. economy, issue number one in last night's debate, a debate that was supposed to be about foreign policy but we got around to that. Certainly the big topic on everyone's mind, the economy. So how exactly did John McCain and Barack Obama do? Our Susan Candiotti is keeping score for us.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): They walked out appearing relaxed and got down to business. As expected, both candidates were first asked about the hornet's nest on Capitol Hill over a financial bailout.

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: This is a final verdict on eight years of failed economic policies promoted by George Bush, supported by Senator McCain.

SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: We are not talking about failure of institutions on Wall Street, we are talking about failures on Main Street and people who will lose their jobs and their credits and their homes.

CANDIOTTI: Time and again, they were pressed on what they would have to give up because of the financial crisis.

MCCAIN: How about a spending freeze on everything but defense, veteran affairs and entitlement programs.

OBAMA: Another place where I would like to look for some savings, we are currently spending $10 billion a month in Iraq, when they have a $79 billion surplus.

CANDIOTTI: The rest of the debate focused on foreign policy where McCain tried to showcase his experience.

MCCAIN: Senator Obama twice said in debates that he would sit down with Ahmadinejad, Chavez and Raul Castro without preconditions.

OBAMA: This is a major difference that I have with Senator McCain. This notion that by not talking to people, we are punishing them has not worked. It has not worked in Iran. It has not worked in North Korea.

CANDIOTTI (on camera): There was no apparent single defining moment for either candidate. Next up, the one and only vice presidential debate scheduled for next week. At the University of Mississippi, Susan Candiotti reporting.

(END OF VIDEOTAPE) HOLMES: Who exactly did the best job? That of course depends on who you ask. So we did ask some folks. We will take a look at our poll of people who watched the debate last night. Take a look here. According to our CNN Opinion Research poll, 51 percent say Obama did the best job last night. 38 percent gave the nod to McCain. According to the research, last night's audience appears to be more Democratic than the U.S. population as a whole. So the results may favor Obama, simply because more Democrats watched the debate. With more now on the debate, we turn now to our senior political analyst Bill Schneider, who is joining me out here who has been out here on this campus. We were just talking here. When you finally got a chance, so many of us hear these sayings all the time. We are familiar with their positions, we're familiar with what they are going to say. A lot of American people seeing these two, when you juxtapose them on a stage like this and you hear how stark these contrasts are. Was this a good debate for people to hear?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: I think it was a very good debate because they saw them side by side on equal footing. They got a clear sense of what the differences were between the two candidates on the economy and on foreign policy.

OBAMA: Did McCain do what he needs to do? I mean yes, it was supposed to be about foreign policy, which many think is his strong suit, in which would favor him. But we had to talk economy first. But when we got around to foreign policy, it looks like he got a little more pep in his step, got a little more ump to him a little bit there. Did he make those points? Did he win that portion?

SCHNEIDER: The debate on foreign policy, I thought McCain highlighted his experience, his knowledge, his background but Barack Obama matched him, which is all he needed to do. Because what people had to be reassured of was that Barack Obama is up to the job, that he can handle the job. In that poll, people thought that the two candidates were equally able to handle the job. The tie goes to Obama because so many voters want change. The main question they were looking to resolve was, is Obama up to the job? Can we trust him? Is he safe? I think there answer after seeing that debate was yes.

HOLMES: What can we expect as a bump, if you will. Because the only thing we saw, like you say, even a tie goes to Obama. But, what can we expect now in these polls? Are we going to see, does he have momentum, if you will, post debate momentum on his side?

SCHNEIDER: He had pre-debate momentum, starting with the financial crisis. People were very angry, very upset, anxious about what was happening in the country. They want change. There was a slow movement in favor of Obama. My guess is that movement is going to be a little bit faster. Obama, in the debate, reassured voters that they could vote for him and he would be a safe and reliable alternative.

HOLMES: Ok we have to wrap it here. I can't help but ask though, next week, vice presidential debate, what's on the line?

SCHNEIDER: Very big audience. A lot of people curious about who Sarah Palin is. Is she up to the job. That's going to get a big audience too.

HOLMES: All right, Bill Schneider, senior political analyst. It's good to have you out here with us this morning. Good to be here with you. This weekend at 8:00 after the first presidential debates, Roland Martin is going to be looking at what the candidates did not say during the debate, about issues most important to voters. Again, that is coming up tonight, 8:00 eastern. Then, at 9:00, if you missed any part of the first presidential debate, you get to see it again. The best parts, the best analysis, watch it all again with John King and the best political team on television. "The Next President, Round One," tonight, 9 o'clock eastern only on CNN, which is of course, your home for politics.

Our truth squad is necessary. We have them working. They are checking out what John McCain and Barack Obama had to say at last night's debate and again, if they were telling the truth, the whole truth, and nothing but the truth. We will test them out on that. Stay here.

(COMMERCIAL BREAK)

HOLMES: Welcome back to the campus of the University of Mississippi, better known as Ole Miss. Better known last night as the site of the first presidential debate of this campaign season. Barack Obama, John McCain squaring off last night here on campus. They squared off. Had a lot to say. A lot of people were listening. A lot of Americans certainly wanted to hear what these two had to say, and to see what they had to say once you put them side by side on the same stage, equal footing, same setting. Well Josh Levs has been checking into exactly what these candidates have been saying and did say last night. Josh, everybody wants to know if they actually gave it to the American people straight.

JOSH LEVS: You know you and I talked a little earlier. You were happy because you pointed to a couple of the attack lines last night that were accurate, that were ruled true by the truth squad here. The stuff we're about to show you now, not so much. Let's start off with this from McCain.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: Senator Obama has shifted on a number of occasions, he has voted in the United States senate to increase taxes on people who make as low as $42000 a year.

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDAT: That's not true John. That's not true.

MCCAIN: That's just a fact. Again, you can look it up.

(END OF VIDEO CLIP)

LEVS: Well, we did look it up. Let's go to this graphic. I want to show you what he is basing this on. Here is the ideal, ok Obama did vote for this budget resolution that assumes the Bush tax cuts will expire. Those tax cuts did involve people who make $42000 a year. Therefore, there is kind of this way to argue that he voted for ending those tax cuts, which means people who made $42,000 could potentially pay higher taxes. But, he left out the fact that Democrats are also offering their own tax cuts in the resolution. So really the truth squad tackled it last night and determined that that attack was misleading. But, Barack Obama did not go unscathed either. Let's take a look at something that he said about taxes.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: Here is what I can tell the American people. 95 percent of you will get a tax cut.

(END OF VIDEO CLIP)

LEVS: Not exactly. I want to go to one more graphic here. Let's show you what we have found at the truth squad about his tax plan. Now his tax plan, this according to the tax policy center, which has done the best analysis there is, it would increase taxes on the wealthiest 20 percent of Households and would offer tax cuts to the other 80 percent of Households. So why is he saying 95 percent of Americans? That's because there is another statistic which says that families that have kids, about 95 percent of families with kids would get a tax cut. To be fair to Obama, he did in other times during the night, say 95 percent of working families would get a tax cut. There you go, T.J. both sides not exactly straight on in their statements. But given some of the attacks we have seen this year, actually, certainly not some of the worst that we have seen throughout the year. T.J.?

HOLMES: You know, yeah, nobody is exactly lying but stretching the truth and misleading a lot of times. That's why we have the truth squad. Certainly, some of the ads we've been seeing got a lot of criticism as well as really stretching the truth and just really borderline. This will continue. We are used to seeing this, unfortunately. That's why we have you guys, the truth squad, Josh Levs, thank you so much.

Well stay here, coming up we'll introduce you to a CNN hero who is helping a 10-year-old girl gain her freedom.

(COMMERCIAL BREAK)

NGUYEN: NEWSROOM continues at the top of the hour with Fredricka Whitfield. I know what you're going to be talking about, the economy, money, the bailout plan, all of it.

FREDRICKA WHITFIELD, CNN ANCHOR: Well it was obviously front and center during the presidential debate last night and of course congress is working throughout the weekend to try and figure out how to stop the bleeding. And we're taking the pulse across the country about what people are doing to try and make ends meet. How concerned should you be especially if you're one who is facing foreclosure. Everyone is worried as well about money in the bank. So we're going to be talking face-to-face with a professor and economist about exactly how worried he is and he knows a lot more about the situation than the ordinary citizen like you and I. Kara Finnstrom is also in California. She's taking the pulse of Californians at a state fair about exactly how -- without fear. About, you know, what they're hoping to hear from leaders in Washington.

NGUYEN: Absolutely. Because they're working hard this weekend, hoping to get that plan done by tomorrow so we'll see. We're on watch. Thank you, Fred, looking forward to that.

Earlier this year the shocking story of a 10-year-old girl divorcing her 30-year-old husband made international headlines. One woman was responsible for that little girl's freedom and her name is Shada Nasser and she is today's CNN hero.

(BEGIN VIDEOTAPE)

This is CNN heroes.

NUJOOD ALLI, AGE 10: When I got married I was scared. I didn't want to leave my House. I didn't want to leave my family and siblings.

He was asking me to sleep with him, but I refused. He beat me.

Was she forced to have sexual relations with him?

ALLI: Yes.

SHADA NASSER: We have a big problem here about the age upon marriage. I hope to change this.

ALLI: I didn't want to get married and I wanted to get divorced. I went to the courts.

NASSER: They say some girl should come here to ask about divorce. When I spoke with him I saw her like she is my daughter. I put her in my arm, ok? And I hug her, and I said don't be afraid. I will help you and you will take the divorce.

ALLI: I was afraid. She helped me.

NASSER: We opened this big window for all other girls and now we heard about different cases. I will accept any case free to help these girls.

(END OF VIDEOTAPE)

NGUYEN: And for additional details on Shada Nasser's work to help child brides in Yemen or to get involved with any of our heroes causes go to cnn.com/heroes. The most outstanding CNN heroes will be honored at an all-star tribute thanksgiving night on CNN.

(COMMERCIAL BREAK)

SEN. JUDD GREGG, (R) NEW HAMPSHIRE: Once again set the issue as we confront it, the credit markets are on the verge, if they haven't already, frozen up. We are looking at a situation where if we don't take action to relieve that pressure, action which the markets will have confidence in along the lines of what the treasury secretary has proposed on Monday or Tuesday Main Street America will be under dire stress potentially and most likely. We are seeing already that certain industries are having trouble financing their -- getting commercial paper and commercial paper, of course, finances the day-to- day operation of America because it usually covers payroll and things like that. So the way it was described by Senator Domenici I thought was pretty accurate. It's as if there was a massive car wreck in the middle of an eight-lane highway and all of the cars that backed up behind it in trucks and on those cars and trucks were the loans for students, were the payroll for people working on their job and the ability to buy a House through borrowing money, where the credit card account lending levels so people can go into a store and buy things with the ability to basically go to the ATM. All of those things are on those cars behind that accident. What the federal government is going to do is come in, we're going to buy that accident, pick it up, move it out of the way and then we're going to resell the cars we bought that were in the crash hopefully for more than we paid for them and we're going to allow the commerce to begin again. That's our goal stated in a very simple, but I think, stark way.

The progress we're making is good and I can say with some confidence that we've basically moved this thing down the road a long way toward reaching an agreement. We're not there, but we have moved a long way toward reaching an agreement and the staff has done an extraordinary job in that area and we will have a meeting of the principles later this afternoon. Senator Dodd and I talked about this a lot and the basic understanding is that when we get in that room as principals we're going to stay there until we reach an agreement or if we can't reach an agreement, which hopefully it won't happen and I don't expect that to happen, so be it, but we will stay until we've done something to address this issue in a very comprehensive and effective way hopefully.

UNIDENTIFIED FEMALE: To clarify, you expect when you come out of these meetings this evening that you will either have an agreement?

GREGG: We expect to have an agreement as principals?

UNIDENTIFIED FEMALE: And that's an agreement as principals?

GREGG: Obviously we're going to have to write it, but yes. We expect to have an agreement. When we sit down and I don't know how long it will take, but we agreed that we're going to stay there until we get this done.

UNIDENTIFIED FEMALE: This is with an eye toward voting on Monday?

GREGG: That would sure be my -- I would lead that.

UNIDENTIFIED MALE: The goal would be to announce an agreement tomorrow and have a vote on Monday?

(INAUDIBLE QUESTION)

UNIDENTIFIED MALE: (INAUDIBLE) using the language that it would have to be insurance on the buyout. Is that off the table now?

GREGG: No. We're going to try to accommodate the reasonable thoughts which we're getting from the House Republican leadership and the House Republican members, at least I am. I think Roy Blunt's assertion into the process has been very, very constructive. He carries a very strong portfolio from the House Republicans and hopefully he'll be comfortable with what we agreed to. He's making reasonable ands hopefully we can work on it.

QUESTION: ...your insurance program will work?

GREGG: You know, that's really not something I'm going to comment on because I don't think that's necessary for me, I'm not an insurance specialist.

QUESTION: Is there a way to accommodate what the House Republicans want in the package that the Treasury Department and for that matter, President Bush (INAUDIBLE).

GREGG: I certainly hope so and that's going to be our goal.

QUESTION: (INAUDIBLE)

GREGG: You should ask them. I think -- we're here to try to solve this problem. I think Congressman Blunt has come to the table with the intention of trying to reach an understanding that will relieve the pressure on the credit markets because we all understand if we don't do that the consequences are so catastrophic that you don't even want to contemplate it occurring. I mean, I think most House members appreciate that, too, whether they're Democrats or Republicans.

UNIDENTIFIED MALE: OK. Thanks.

WHITFIELD: All right, live pictures right there on Capitol Hill. I'm Fredericka Whitfield in Atlanta. You are hearing from Senator Judd Gregg, there, of New Hampshire, give both a sobering and optimistic view of the work that's being done on Capitol Hill to try to hammer out some sort of plan to help rescusitate the nation's economy. You heard words from him talking about Monday or Tuesday America will be under dire stress potentially if they don't come to some agreement. However, on the optimistic front he says the progress that they are making is good.