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Remembering Paul Newman; Working Toward an Economic Bailout; Debate Analysis
Aired September 27, 2008 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: From an amazing career on the silver screen to his skills on the racetrack, we'll take a look at the life of legendary Paul Newman.
One presidential debate down, two to go. What happened when both candidates went head to head on foreign policy.
And within the last hour, House Republicans announced there are still issues on the table, but work continues on a plan to help the nation's financial crisis.
Hello, everyone. I'm Fredricka Whitfield and you're in the CNN NEWSROOM. From Butch Cassidy to Fast Eddie, cool hand Luke to Judge Roy Bean, he was Hollywood's iconic rebel. Actor Paul Newman has died of cancer at the age of 83. Newman's blue-eyed good looks and anti- establishment persona helps make him a major movie star for nearly a half century. He won a best actor Oscar for "The Color of Money" along with two honorary Oscars for his overall career and charitable work.
Newman's off screen interests included race car driving, political activism and a multi-million dollar food business, "Newman's Own." Well survivors include Newman's wife of 50 years, actress Joanne Woodward. Well, Jacqueline Bisset appeared with Paul Newman in "The Life and Times of Judge Roy Bean" and "When time ran out," and she joins us now on the phone from Los Angeles.
And so Jacqueline, did you know that his lung cancer was this far along? That perhaps this would be one to take his life at this point?
All right. Well, it sounds like we lost that connection, given the tone that you just heard. We'll try to re-establish that and then perhaps have her on.
All right. In the meantime, others have reacted to the death of Paul Newman. This, from actor Robert Redford, Newman's co-star in "Butch Cassidy and the Sundance Kid" and "The Sting." Quoting now, "there is a point where feelings go beyond words. I have lost a real friend. My life - and this country is better for his being in it."
Reaction coming from all sorts, not just Hollywood but even the life of politics. Senator Edward Kennedy apparently is back home today after a brief trip back to the hospital. The 76-year-old Massachusetts democrat has been battling brain cancer. His office says he suffered a mild seizure yesterday, apparently a reaction to a change in medication. He was taken to the hospital in an ambulance but he was released less than three hours later.
All right. Congress was supposed to adjourn this weekend, instead negotiators are hard at work trying to reach agreement on a $700 billion emergency bailout for Wall Street. One of the negotiators, representative Barney Frank, says there's a pretty good chance for a deal by Sunday. He said, they've already agreed in principle that any bailout plan has to include significant oversight. curbs on executive compensation, and government equity stakes in companies that get help. But House minority leader John Boehner says there is still a long way to go.
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER, HOUSE MINORITY LEADER: Well, there are a lot of issues still on the table. And while I think there's good will between both chambers and both parties in terms of trying to come to an agreement, there's a lot of conversation that has to occur.
(END VIDEO CLIP)
WHITFIELD: All right. For the latest on where things stand exactly, let's go to CNN's Brianna Keilar on Capitol Hill. Some have said there is slow, measured progress. What's the latest consensus?
BRIANNA KEILAR, CNN CORRESPONDENT: There's a meeting going on right now, Fredricka, between the four principals, that's what we're calling them. The House Democrats, the House Republicans, the Senate Democrats and the Senate Republicans, who had been designated to negotiate on behalf of their units in Congress. They're meeting right now and they're meeting with Treasury Secretary Henry Paulson. This is important to pay attention to, because what we heard from the republican Senate negotiator was that when these members, these principals go into this meeting, he said the plan is to stay in that room until they come to an agreement.
I should also add there are some other Democrats in that meeting from committees such as Senate Finance, Senate Budget Committee, committees that have jurisdiction when it comes to the bailout package. But the - what we're hearing in terms of a timeline is a lot of talk about a possible agreement by tonight. We've heard that from Republicans. We've heard that from House Speaker Nancy Pelosi. She has even said that perhaps there could be a vote as early as tomorrow, maybe Monday.
Still, these people you're looking at right now, the House Republicans, they have been perceived as the holdouts in all of these negotiations. You just heard John Boehner that man right there say before that there is a - basically a spirit of good will at the negotiating table, but at the same time that press conference they had right there was really about managing expectations, downplaying expectations of any swift agreement this evening. Take a listen to Congressman Roy Blunt. He is the designated negotiator for House Republicans.
(BEGIN VIDEO CLIP)
REP. ROY BLUNT (R), MINORITY WHIP: We're not moving on any kind of artificial timeline. We're moving toward the very best solution in the shortest period of time we can get to the very best solution.
(END VIDEO CLIP)
KEILAR: And that is really not too much different from what we heard House Republicans saying a couple days ago after negotiations broke down on Thursday night. I should add exactly the sticking point for House Republicans, it's a fundamental one. They object to the fact that taxpayer dollars would be injected into Wall Street. Not just taxpayer dollars, of course, $700 billion taxpayer dollars. What they would like to see is private investment being infused into Wall street and using that money instead of taxpayer dollars to buoy the financial markets. Fredricka.
WHITFIELD: All right. Brianna Keilar, thanks so much. We know we'll be checking back with you just as soon as any other developments come out of Capitol Hill. Appreciate it.
All right. In his weekly radio address today, President Bush urged Congress to complete work on that bailout bill. White House correspondent Ed Henry standing by live with the very latest. Ed.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Fred, this is heavy stuff. The president again declaring today that America's financial institutions are on the verge of collapse. The President on this Saturday getting urgent updates from his chief of staff Josh Bolton. Nevertheless, Mr. Bush is having a hard time getting his fellow republicans on board.
(BEGIN VIDEOTAPE)
HENRY (voice-over): As the President continued to warn the entire U.S. economy could get buried, he and his family planted trees at the White House. Mr. Bush ignored a question about whether he's worried about further legislative delays on the hill.
UNIDENTIFIED FEMALE: There may not be a vote until Thursday or Friday on the rescue plan, sir?
HENRY: After two trees were safely planted - the President changed into some aqua workout clothes and went on a two-hour bike ride while the nation heard a dire weekly radio address.
VOICE OF PRES. GEORGE W. BUSH, UNITED STATES OF AMERICA: If it were possible to let every irresponsible firm on Wall Street fail without affecting you and your family, I would do it. But that is not possible. The failure of the financial system would mean financial hardship for many of you.
HENRY: For the past week, though, the President has had trouble proving he still has enough juice to win over his republican colleagues.
BUSH: We will rise to the occasion. Republicans and democrats will come together and pass a substantial rescue plan.
HENRY: But all around him, signs the White House is on bended knee. Literally. Two democratic sources say in a closed-door meeting Thursday night, Treasury Secretary Henry Paulson got down on one knee to half jokingly beg Speaker Pelosi not to use the TV cameras on the White House driveway to flash the stalled talks. Paulson said he was worried it would further rattle the markets. But Democrats say the real problem is House Republicans balking at the President's $700 billion bailout.
SEN. CHARLES CHUMER (D), NEW YORK: This is a plea to President Bush for the sake of America. Please get your party in line.
HENRY: Last Friday, the President began his case.
BUSH: This is a pivotal moment for America's economy.
HENRY: Last Saturday, more promises.
BUSH: And we'll work to get something done as quickly and as big as possible.
HENRY: Monday, a written statement warning, a failure to act would have broad consequences. Tuesday, Vice President Cheney is dispatched to the Hill to twist arms. Wednesday, a prime time address.
BUSH: ...warn that without immediate action by Congress, America could slip into a financial panic.
HENRY: Thursday, the President's attempt to jump-start talks by inviting Barack Obama and John McCain to the White House ended badly, sparking Paulson's plea to Pelosi. A week of lobbying still has not won over Republicans. So White House aides have fallen back on a familiar refrain. The President is willing to take on bold fights, even if it's not always popular with fellow Republicans.
DANA PERINO, WHITE HOUSE PRESS SECRETARY: He has led on important issues like social security, immigration and now this one where we try to help drive to a conclusion.
(END VIDEOTAPE)
HENRY: Now, on those other tough fights like immigration and social security reform, the President actually lost those battles, though they're still hopeful here at the White House that he can win over fellow Republicans on the bailout bill. That's why Treasury Secretary Henry Paulson just in the last hour or so rushed up to the Capitol, they're hoping to get this thing done as quickly as possible. Fred.
WHITFIELD: All right. Ed, thanks so much. From the White House there.
All right. Well, a lot of political leaders are having a lot to say, not just about the bailout proposal, but also about this news. The passing of actor Paul Newman. Dead at the age of 83. He died in Connecticut. There have been all kinds of printed statements coming from people that know him, including Senator Hillary Clinton and President Clinton saying, "Paul was an American icon, philanthropist and champion for children. We will miss our dear friend."
And someone else who had the honor of working in a couple of films with Paul Newman, Jacqueline Bisset. We tried to get her earlier a moment ago. We've got her back on the phone right now. She's with us, and so, Jacqueline, did you know that his lung cancer was this far along, that perhaps it might be claiming his life this way?
VOICE OF JACQUELINE BISSET, ACTRESS: I didn't. I heard he was ill, but I hadn't spoken to him in some years.
WHITFIELD: You worked with him - go ahead.
BISSET: I've worked with him twice, it was 1970 and 1979, I think.
WHITFIELD: So when time ran out in the "Life and Times of Judge Roy Bean," I also understand that you know, particularly the movie "When Time Ran Out" you were encouraged and enticed to be part of this film because you wanted to work with Paul Newman, so tell me, as an actor, you know, what was it like working with him?
BISSET: Well, he was very - I think he's first of all a very decent man and serious actor. A serious actor. He tried really hard to make things real. He worked at things, he didn't just sort of slough through. He had a good sense of humor, a child-like sense of humor, and he loved to be sort of on that level. There was something almost shy about him at times.
WHITFIELD: Really?
BISSET: I felt he was - it was like he knew he was good-looking but he never played it up. On some level he pushed it aside. And he was very dear, in a way. My memory of he and Joanne was that of a really wonderful couple. I mean think they - you felt this strong bond between them. And it was unusual. It was certainly unusual in Hollywood.
WHITFIELD: Married some 50 years.
BISSET: 50 years. Yes.
WHITFIELD: And not only you know surviving, enduring the entertainment world but then turning his celebrity, their celebrity into philanthropy. Did you see that coming?
BISSET: I didn't see that coming but I saw the salad dressing coming.
WHITFIELD: You did?
BISSET: Because during that - one of the shooting, during the party - I mean, during the shoot, we made a party, and he said, come to the market with me and let's get this - all these burgers and this salad dressing made. And we went shopping to a simple, you know, store, and, of course, everybody was surprised to see him and he was saying, no not that meat, that's not fatty enough. It's got to be this. And we need this oil and we need this dressing, because he hadn't started making it yet. WHITFIELD: Wow. So did that surprise you? Did that kind of take you back?
BISSET: It did.
WHITFIELD: What's this guy know about all this cook something?
BISSET: Yes and we went back to these various kitchens around this hotel where we were all staying, and he did the, you know, cooking and served the group of people. It was really fun. He was just very dear. And there was just a enthusiasm and kindness. But of course I couldn't imagine that he was going to be so successful in all these other ventures.
WHITFIELD: Wow. Well, you've got such beautiful memories of Paul Newman, and we appreciate you, Jacqueline Bisset, for sharing your memories with us. Appreciate it.
BISSET: Thank you very much. Bye.
WHITFIELD: All right. Also in addition to the passing of Paul Newman, also on the minds of many Americans from coast to coast are the economic woes that this country is facing right now. We've been keeping our finger on the pulse, how people are feeling about it, what kind of solutions they are hoping to hear from Congress. And Kara Finnstrom is actually at a county fair in Pomona, California, where people are very quick to talk about their concerns. And you also have an economist with you. But what in general are people telling you about what they're most, I guess, fearful of, concerned about or hopeful about?
KARA FINNSTROM, CNN CORRESPONDENT: A lot of frustration actually that we're hearing, Fredricka, but this is the L.A. County fair that you see behind me here. People come out here to hear the music, to eat a corndog. It's a great place to get a sample of Americana. So we came out here to hear what people are thinking.
Joining us live now, we do have Wally who joins us. He came out here all the way from Alabama with his wife. And we actually have someone here who can answer his question as well as everyone else we hear from today. Wally and his wife are retired and you say you have some concerns. What's your question for us today?
WALLY FERNESWORTH, CONCERNED ABOUT ECONOMY: Well, I think my question is when is it going to get better? Or is it going to get better?
FINNSTROM: And the man with the answers joining us today is Mick Schwartz. He is with U.S.C.. He is a finance expert. When is it going to better or is it?
MICK SCHWARTZ, ECONOMIST: Well, I think today people are worried about the banks, the financial institutions and the bailout plan over the next few weeks I think is going to put a lot of those concerns to bed and people feel easier about it. But you have to remember this problem started in the mortgage market. So it may be another year, a year and a half before these problems resolve themselves and we, in terms of the entire economy getting better, it might be a while.
FINNSTROM: A little bit longer I think that most folks want to here. We do have another question, so stand by, we're going to roll this one for you. It's one we got earlier today from a woman who had her savings with Washington Mutual.
(BEGIN VIDEO CLIP)
AMIEE FRENCH, CONCERNED ABOUT ECONOMY: My question is, is with the economy the way it is and WaMu getting taken over now, what should we do with our money that's in the bank with WaMu?
(END VIDEO CLIP)
FINNSTROM: Not only her, but people who have been with other banks that have closed that have this same question. What's your advice?
SCHWARTZ: Well, the FDIC stepped in with WaMu and that transition seems to be going very well. But in general, if you have less than $100,000 in these banks, you don't have to worry about anything. The FDIC insurance is going to cover you. If you have more than $100,000 but less than $250,000 in IRA at these institutions, that will still be protected. If you have more than that, then you want to put it into different banks and different insured accounts.
FINNSTROM: All right. Well, thanks for joining us and we'll be back with more questions and answers from the county fair later this hour. Fredricka.
WHITFIELD: All right. More answers to all those concerns. Much more straight ahead in the NEWSROOM. Kara, thanks so much.
All right. It's a problem across several southern states, the struggle to fill up. The length some drivers are going to get gas, and John McCain and Barack Obama making their case, going one-on-one for the first time over foreign policy.
(COMMERCIAL BREAK)
WHITFIELD: All right. Well, from the debate stage to the campaign trail, senator Barack Obama is stumping in two battle ground states fresh off last night's debate with rival John McCain. This afternoon he and running mate Joe Biden held a rally in North Carolina hoping to gain ground in this traditionally red state. Well, in about an hour, the pair will be kicking off an event in Virginia where Obama and McCain are running neck and neck.
All right. Senator McCain went straight from the debate back to Washington where lawmakers are still trying to nail down a bailout bill. McCain has no public events scheduled for today, neither does his running mate Sarah Palin. But both are scheduled to hold a joint rally in Ohio on Monday. However, it's unclear if bailout negotiations which prompted McCain to suspend his campaign will actually impact that event.
All right. The talks did not stop the first presidential debate. Talking about the bailout talks. Even though it was unclear for days whether if Senator McCain was going to show up. Well, in the end, he did, saying lawmakers were making enough progress on the bailout deal for him to go. That $700 billion plan dominated the first portion of the debate, but moderator Jim Lehrer zeroed in on the night's official focus which is foreign policy and national security. Watch this exchange over Iraq.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: John, you like to pretend that the war started in 2007. You talk about the surge. The war started in 2003. And - and at the time when the war started you said it was going to be quick and easy. You said we knew where the weapons of mass destruction were. You were wrong. You said that we were going to be greeted as liberators. You were wrong. You said that there was no history of violence between Shia and Sunni and you were wrong.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Senator Obama refuses to acknowledge that we are winning in Iraq. They just passed an electoral -
OBAMA: That's not true.
MCCAIN: An election law just in the last few days. There is social, economic progress. And a strategy, a strategy of going into an area, clearing and holding and the people of the country then become allied with you, they inform on the bad guys, and peace comes to the country, and prosperity. That's what's happening in Iraq, and it be wasn't a tactic.
(END VIDEO CLIP)
WHITFIELD: All right. All those examining what happened last night, among them our own Jim Acosta. He joins us now from New York. Jim.
JIM ACOSTA, CNN CORRESPONDENT: All right. Fredricka, both campaigns are coming out of this debate still swinging hard. McCain on Iraq, Obama on the economy. But as CNN found, both candidates have some work to do with undecided voters.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): The first debate is over, but the fight is nowhere near finished.
ANNOUNCER: Senator Obama voted to cut off funding for our troops.
ACOSTA: Take this new ad from John McCain, picking up on the debate's heated exchange over Iraq. It makes one of the most explosive charges of the campaign. Accusing Barack Obama of endangering American soldiers by voting to cut off funds for the war.
ANNOUNCER: Playing politics, risking lives.
OBAMA: He didn't believe in a timetable. ACOSTA: Obama who says he opposed that bill because it lacked a timeline for troop withdrawal gets tough in his own new spot that zeroes in on the economy.
ANNOUNCER: Number of minutes in a debate, 90. Number of times John McCain mentioned the middle class, zero.
ACOSTA: A stat Obama raised again in North Carolina.
OBAMA: John McCain had a lot to say about me. But he had nothing to say about you. Didn't even say the word "middle class."
ACOSTA: It says as if he was listening to these undecided voters speaking to CNN after the debate. Voters who are thinking with their wallets.
UNIDENTIFIED FEMALE: I don't ever hear McCain talk about our middle class, and that's where I live.
UNIDENTIFIED MALE: I heard from McCain, free spending. We do that at home, you know, if you have higher debt, you just don't keep spending.
ACOSTA: At parties for both candidates, CNN found Obama supporters seizing on McCain's body language.
UNIDENTIFIED MALE: He was uncomfortable. I mean he was huffing and puffing.
ACOSTA: And McCain supporters measuring the candidate's experience.
UNIDENTIFIED MALE: I think he was better prepared.
ACOSTA: Wearing a Philadelphia Phillies jacket, Sarah Palin attended a viewing party of her own. She knows, it's batter up.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: John McCain and I will never forget who we are working for. It's you guys. So, we love you guys, city of brotherly love. Thank you.
(END VIDEOTAPE)
ACOSTA: And while Joe Biden was on national television talking up Barack Obama's performance in Mississippi, Sarah Palin was absent from the post debate analysis. But voters will get their fill of both running mates when they square off in less than one week. Fredricka.
WHITFIELD: And Jim, you have to wonder whether she'll remain kind of absent until those debates.
ACOSTA: We shall see.
WHITFIELD: Yes, we will. We'll all be watching. All right. Thank you so much, Jim Acosta. Appreciate it. Of course, you can get lots more up to the minute information at cnnpolitics.com.
All right. Let's talk some weather coming up. Trouble brewing in the Atlantic Ocean. Tropical storm Kyle is strengthening, and it could hit parts of New England as a category 1 hurricane tomorrow night. Wow. That happened quickly, didn't it? Jacqui?
JACQUI JERAS, CNN METEOROLOGIST: Kind of yes, kind of not too fast.
WHITFIELD: Yes, hurricane talk?
JERAS: We've been talking Kyle, well, preconception, I guess, so to speak for quite a while, but all of a sudden, hey, Kyle develops and it's close enough to the U.S. mainland that you start getting a little bit worried about it. We've actually been dealing with an upper low for the last couple of days and bringing heavy rainfall into the northeast. Now we're starting to get the impact from Kyle, already beginning to move in here.
Yes, Kyle is probably going to get a little stronger. Right now it looks like best estimates should keep it off the coast. But you're going to be getting some good wind gusts. This will likely move into play into the afternoon hours for tomorrow for you, say out on to the cape.
In the meantime, the biggest issue that we'll be dealing with will be flooding rains. In fact, about 1 to 4 inches has already fallen in the flood watch area. You can expect to see maybe another 1 to 3 on top of what you already have. Travel a big problem today and this because of the low clouds. The winds really haven't arrived just yet.
JFK, you're looking at delays nearly an hour and a half now, about 45 minutes, and Las Vegas not related there, and Newark looking at delays around 40 minutes. OK. Where is Kyle going? Well, it's heading northerly right now, expected to curve on up towards the north into the east. And the sooner it does that, the less likely it will be that Maine will get a direct hit from the storm. So we're hoping we'll start to see that churn real soon. In the meantime, we still go winds at 70 miles an hour. So we're close to that hurricane status already.
And there you can see that cone of uncertainty moving it up towards Nova Scotia or possibly into parts of Maine. Here's Bar Harbor, on north ward, you guys are under a hurricane watch for that potential and that would happen late tomorrow night. But you would be feeling the winds and the rain throughout the day tomorrow and easily you could see even if you don't get that direct hit, wind gusts 60-plus miles per hour. So it's going to cause damage, Fredricka and certainly cause a lot of power outages.
WHITFIELD: Wow. All right. Well, folks will have to brace for all that. Good morning, I guess. All right. Thanks a lot, Jacqui. Appreciate it.
All right. And perhaps on the issue of the economy, we know have you lots of questions, hopefully we have answers. Particularly when it comes down to car loans, home loans, all that. Next.
(COMMERCIAL BREAK) WHITFIELD: All right. So how bad is it? Well, earlier today Senator Judd Gray said without some bailout from Congress, "America will be under dire stress." Well a lot of folks seem to believe that already we're in dire stress as a nation. We've invited Rajeev Dhawan with the Georgia State University, an economist, a professor to join us and talk about some things that impact a lot of people right now.
Say, for instance, you have a home. You're not facing foreclosure. But you know you can't sell your home right now because the market is just too soft. You want to perhaps build on your home so you turn to equity in your home. Can you even get an equity loan now?
PROF. RAJEEV DHAWAN, GEORGIA STATE UNIVERSITY: If can you not sell your home, that means home values are falling, no bank is going to give you a loan for a home equity. So, it's very tough.
WHITFIELD: Even if your credit is good, you got money in the bank but you need a few extra thousand dollars say for instance to build on your home.
DHAWAN: Right. Because the asset that you're going to be spending the money on is depreciating much faster, so they don't think you'll be able to pay it back or they might be in trouble in the sense that the bank may be unwilling to make you the loan, even if everything else is fine. Because they're conserving their for cash for the rainy day.
WHITFIELD: We don't know when that rainy day is coming because this really still may be the tip of the iceberg, right?
DHAWAN: Right, that's exactly the problem.
WHITFIELD: So, say there's a line of credit. People have equity lines of credit. Can you dip from that?
DHAWAN: You can, but sometimes people are finding that when they go back to dip into it, they've been frozen or they've been canceled.
WHITFIELD: Interesting. Let's talk about the car market now. Because what we're seeing, if you've got large banks that are folding, the ripple effect is, you know, homes and now even cars. I drove, you know, down a street last night and saw many car dealers who had incredible sales and late model vehicles from Volvos, Mercedes and SUVs, $7,000, $10,000, $14,000 prices and I'm thinking, oh my goodness, this is a buyer's market, great deals. But you say --
DHAWAN: You will have to have cash in your hand to buy those things because the banks may not make you the loan because they're too busy firefighting the other problems. They're attention is over there, they're not in the mood to make the loan. Or the financing of the leasing companies are not doing this business anymore. These things are not holding their value. So if you have cash with you, just like the old days, can you get that great deal.
WHITFIELD: Do you wonder how we got to this point? Because when you have the SEC Chairman Christopher Cox who is quoted in "The New York Times" this morning saying you know what the oversight program has problems and it has had problems from the very beginning. So in part he's blaming, you know what, we should have seen some of this stuff coming and for whatever reason our oversight program didn't. Have there been problems from the beginning with this oversight program?
DHAWAN: There were probably were, but the thing is that, we the consumer were demanding that we need to be given all this credit so we can go out and splurge. That's our way of living, don't stand in the way, I want it now. So we did over consumption of credit and these guys probably did some cursory warnings and lip service, not like when you go to the doctor, he should tell you to lose the weight, especially to me, but they say it to you nicely. You listen in one ear and out the other.
WHITFIELD: Do you worry about what's next?
DHAWAN: Yes, I do worry.
WHITFIELD: You think it could get worse than this?
DHAWAN: It can really get worse than this. Because when the banks are fighting for their life, they are not in the mood to make any loans. So the normal economic activity will stop. So we need to start that process with the banks, unwilling to make the loan, it becomes willing.
WHITFIELD: So you see it if we don't save these banks, then there really is very little hope for anything else in this economic machine.
DHAWAN: Yeah.
WHITFIELD: To work fluidly.
DHAWAN: I put this matter, people don't like banks because they're places that give you an umbrella when you don't need one and doesn't give you one when it rains. But we have to swallow that disgust and put the money out because if we cannot even get the normal home loan or a car loan, we are a credit society. This is not 1940s.
WHITFIELD: I wonder when the credit cards will be freezing. Not to say it's going to happen, but --
DHAWAN: It's already happened.
WHITFIELD: Yeah, it's frightening. Rajeev Dhawan of Georgia State University, thanks so much. Appreciate it.
DHAWAN: Thanks for having me.
WHITFIELD: All right. Let's talk some more weather, coming up in the wake of hurricane Ike, yes, it's been about two weeks. Many southeastern filling stations are out of gas. Is it because of that? Is it the economy? What's at the root of this problem? Rusty Dornin reports now from Atlanta. (BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Running on empty. It's a tune southeast drivers can't seem to get out of their heads.
UNIDENTIFIED MALE: We're almost out of gas. We're lucky we got this far.
UNIDENTIFIED MALE: There's no gas up there, no gas on the way down here. This is the only place I could find gas.
DORNIN: From Nashville to Columbia, South Carolina, and every major city in between, it looks like this. Kentucky stations have gas, and some Tennessee drivers went across the state line to find it.
UNIDENTIFIED MALE: I drove -- my house is 21 miles from the Kentucky line to Roberts County.
UNIDENTIFIED FEMALE: About 8 to 10.
UNIDENTIFIED MALE: About 80 or 90 miles.
DORNIN: Refineries in the gulf are still not up and running 100 percent after hurricanes Gustav and Ike. That means less fuel coming up the main pipeline. Fuel distributor Tex Pitfield says Atlanta receives supplies on a five-day schedule. But because so many people are in panic mode, it's depleting supplies even more.
TEX PITFIELD, PRES., SARAQUAY PETROLEUM CORP.: A normal delivery for these stores is coming in over the weekend. So the terminals will have fuel to get to this store. Here's the catch. The demand is such that there's not enough of the normal supply coming in to get to not only this guy, but the other 400 guys around town.
DORNIN: As more refineries get up to speed, the supplies will continue to increase. But it will still be a game of catch up that could last another week or two.
(On camera): The few stations that are open are jammed and they often run out of gas within three or four hours. One suggestion is to restrict the amount that customers can buy. So more people can buy gas and the station will stay open longer.
(Voice-over): The other word for that is rationing. A word no one since the fuel crisis of the 1970s wants to hear. Pitfield even urged the University of Georgia to cancel the weekend football game to stop tens of thousands of game goers of putting additional pressure on the system.
PITFIELD: It's a quarter million gallons or more of fuel that's going to be utilized for a football game. Maybe cancel is a horrible word but postpone it.
DORNIN: Blasphemy in Georgia. Even the governor stepped in to claim it wasn't necessary. There have been reports of some gouging but some frustrated drivers here would be happy to find gas at any price. Rusty Dornin, CNN, Atlanta.
(END OF VIDEOTAPE)
WHITFIELD: We all know that stress certainly can take a toll, particularly on pregnant women. Well, now how extreme stress during pregnancy can lead to mental health issues for the baby.
(COMMERCIAL BREAK)
WHITFIELD: All right. In health for her, the toxic effect of stress on pregnant women and their babies. Here now is CNN's medical correspondent Judy Fortin.
(BEGIN VIDEOTAPE)
JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice-over): A recent study on pregnant women found that extreme stress could cause some serious medical complications to their children later in life.
DR. AMOS GRUNEBAUM, NEW YORK PRESBYTERIAN HOSPITAL: They looked at pregnant women who are pregnant at the time of the six-day war in Israel, about 40 years ago. And then they followed up their children and found there was an increased risk of mental disorders and schizophrenia.
FORTIN: Those most at risk were women in their second month of pregnancy and were pregnant with girls. From the results of that study, doctors now believe women living through other types of extreme stress could also be at risk of complications. And those high- pressured situations could apply not just to wars, but natural disasters like hurricanes, earthquakes or even closer to home, hard economic times.
GRUNEBAUM: All over the world. A lot of people are under a lot of stress because of financial markets. It's not just hurricanes, but also things related to our own personal needs and lives. Not being able to pay for your mortgage, losing your job, does definitely increase your stress level a lot.
FORTIN: And when it comes to stress, it doesn't have to come in large doses.
GRUNEBAUM: The interesting part about stress, is it doesn't have to necessarily go over a long time period. Even an extremely short time period of stress that you're not coping with well enough can lead to complications that can be long-term.
FORTIN: To prevent against any of those stress complications, experts suggest pregnant women pay close attention to how they're feeling. When they find themselves overly stressed, the first step is to make sure they're getting enough of the right nutrients and exercise, and second, don't try to go through this alone. GRUNEBAUM: Talk to your doctor about this. If you feel that you're under a lot of stress, make sure your doctor knows, and your doctor usually is your first resource to provide you with information on how to decrease your stress levels.
FORTIN: After all, in the long-run, you may not be the only one feeling the strain. Judy Fortin, CNN, Atlanta.
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WHITFIELD: All right. The food safety scandal in China is having an impact in the U.S. The FDA said a Taiwanese company has recalled several instant coffee and tea products sold under the Mr. Brown brand name. They contain a nondairy creamer that recently tested positive for melamine, a dangerous chemical that has been found in baby milk and airy products in China. The tainted products have sickened more than 50,000 Chinese children, and killed four babies.
All right. China is making new strides, however, in space. What the astronauts did this weekend that was the first of its kind for that country.
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WHITFIELD: All right. It's state fair time outside of Los Angeles in Pomona, California, and there, yes, the focus is corn dogs, cotton candy and the economy. Yes, they're talking about the proposed bailout plan for the nation, 3,000 miles away on Capitol Hill. Our Kara Finnstrom is right in the middle of this county fair taking place there in Pomona, California. While it seems oh so far away, right that the lawmakers are talking about the bailout plan, it is a topic A concern for folks there at the state fair.
KARA FINNSTROM, CNN CORRESPONDENT: It is. People are even talking about it here today. About 100,000 people Fredricka expected to come to the county fair today, so we thought this would be a good place to come out and hear their concerns, hear their questions and get them some answers. We've actually been speaking today with Matt Stowe, he came out here today with his young daughter, Ava, and his wife. They have a cleaning company and some of their clients who were a little quicker in paying in the past have taken a little longer and that's caused a little bit of stress for him. But you have another question today for our financial expert and tell us what that is.
MATTHEW STOWE, CONCERNED ABOUT ECONOMY: If I have a credit card or more through banks that may be in trouble and they get purchased by another bank, am I going to be subject to the same credit card requirements of that particular company, whatever one bought out.
FINNSTROM: Great question because a lot of that has been going on. Mick Schwartz is our financial expert out from USC, what about that?
MICK SCHWARTZ, ECONOMIST: It's a very good question. The credit card companies and the banks in general, when times get tough, they tighten up and they want to collect also. So it would be very common for them to decrease credit card limits, to increase interest rates, so I think that it's a great time to pay off your credit cards.
FINNSTROM: We have one more question for Mick. We want to roll something that we heard a little bit earlier from a gentleman. He's getting closer to retirement, and he's wondering about his best investment options.
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ALEX HERNANDEZ, CONCERNEDABOUT ECONOMY: My question is, with the economy being like it is and the government bailing out some of these big banks and stuff, I'm wondering now if now is the opportunity to buy some stock and what stock that would be.
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SCHWARTZ: The three good ideas, I think one of them is when times get a little bit tough, the companies that produce products everybody still needs, like pharmaceutical companies, food companies, groceries, things of this nature, those are more stable investments. Another thing to look at, and this has been true for the last year or so, those companies that actually have more cash on their balance sheets actually have outperformed other companies. So those are good stock investments. One other possibility, if the uncertainty with the financial crisis continues, then the dollar will stay weaker. If the dollar stays weaker, then a lot of company that produce commodities like oil, gold, all the things that we extract from the ground, those companies will do better because those things are priced in dollars, they're cheaper across the world and their stock prices might do better as well.
FINNSTROM: We've already seen some of that. Thanks, Mick. We'll have more questions and answers coming up Fredricka in the next hour.
WHITFIELD: Ok, Kara, we look forward to that. These are some great questions that people are asking. Don Lemon is here with me now listening to a lot of these questions, because you're going to hear more in the NEWSROOM coming up in the ext hour as well.
DON LEMON, CNN ANCHOR: We've been hearing a lot of questions and of course I've been going over, checking the wires at every second now because there have been new developments. Lawmakers are now --
WHITFIELD: Changing by the minute.
LEMON: They're in the thick of it, really, right now. They're trying to hammer out some sort of deal, Fredricka, some sort of agreement. Because hopefully they want to save the country from financial ruin. If you don't realize it, we're teetering on the brink here. Some lawmakers are saying it is a standstill. Others say they're close to an agreement. We want to know what the truth is on this progress. We have correspondents and reporters camped out all over Washington. And we will bring you the information there.
Also the death of one of the most influential Americans ever. Can you believe it? Paul Newman. Paul Newman, not only an actor but an uber-star, the humanitarian and also a philanthropist from Scorsese, to Redford, to Clooney, they're all weighing in. Reaction worldwide coming in every minute to the CNN NEWSROOM. So if you can be here in a couple of minutes, you don't want to miss it. We don't know who's going to call in or show up on our air because they have been getting in touch with CNN to say stuff about this man.
WHITFIELD: He's a remarkable character. I think people knew that on the surface but they're learning a little bit more about him and the extent of his philanthropy which was tremendous. $240 million apparently.
LEMON: From all of those products, every bit of profit went to charity.
WHITFIELD: I know you have something in your cupboard, I know I have Newman's Own something.
LEMON: Popcorn, you got it. So it's going to be interesting to see who exactly weighs in on our air once we do come up at 5:00. Because again, we've been getting live from our reporters in Hollywood and also New York and L.A., so it's been coming in. But also keeping a close eye on the financial markets. Because we don't know exactly what's going to happen. They say they could be close to a deal at any moment, so we're waiting.
WHITFIELD: That will be good. We definitely want to hear that.
LEMON: We hope so.
WHITFIELD: All right Don, appreciate, thanks so much. We'll be tuning in.
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WHITFIELD: Well, you could call this one giant leap for China. Today's space walk by a Chinese astronaut was the first for that nation, China's first space walker clutched that small flag as you see right there. The Chinese flag as he drifted miles over the planet. You can hear the applause back on soil. China's President Hu Jintao among those watching it from Beijing's mission control. The spacewalk is seen as a crucial step in China's plan to build a space station some day.
The damage caused by hurricane Ike, it's left Galveston residents wondering whether their city's economy will ever recover. Some business owners are trying to determine if they have a future at all. CNN's Ed Lavandera reports.
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UNIDENTIFIED FEMALE: You can see how high the water came in here.
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Jeru Mansfield is what people in Galveston call a BOI, that's someone born on the island. Two years ago she opened Footsies, a ladies boutique shoe store in Galveston's tourist district known as the strand. Footsies is mired in mud and muck.
UNIDENTIFIED FEMALE: Everybody that came in the store, the minute they walked in the store would say, this is a great store, and hopefully it will be again.
LAVANDERA: Mansfield's store is closed now and she's not sure when and if it will ever reopen. She's trying to salvage as many shoes as she can to keep up with business loan payments.
Are you confident you'll be able to reopen?
UNIDENTIFIED FEMALE At this point we're just really not sure. We would certainly like to reopen. We're hoping that our bank will be understanding and lenient, as far as our -- our line of credit goes, and work with us on that end.
LAVANDERA: The strand was one of the hardest-hit areas in Galveston. The area drowned in eight feet of water. The strip is full of small business that catered to the Island's tourists. But all the stores are closed. And these owners will depend on FEMA loans and insurance money to recover. But right now, they're just cleaning up the mess and only starting the process of finding help.
UNIDENTIFIED MALE: This was really a beautiful shop. I mean, it's a great little store.
LAVANDERA: The aftermath left Garry Depingre's surf shop wiped out and his laid back surfer attitude is gone too.
GARRY DEPINGRE, GALVESTON, TEXAS BUSINESS OWNER: We're going to need some help. We have to have help, man. I can't do this on my own.
LAVANDERA: Depingre opened "Surf Styles" 24 years ago. He doesn't have flood insurance and he's also not sure if he'll reopen. For now he'll have to live off savings.
How long do you think you can go?
DEPINGRE: Without any income coming in? I don't know.
LAVANDERA: And that's life right now on this battered island. Great anxiety about what the future will bring. Ed Lavandera, CNN, Galveston, Texas.
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WHITFIELD: Wow. Even a couple weeks now, almost three weeks since that storm just devastating impact. All right. Well, Jacqui Jeras is tracking another tropical storm, not in the gulf, but this time along the east coast, and perhaps you want to find out more about how you can help people. Just go to cnn.com/impact, and you'll find out about more organizations that can help out folks right here at home during these very tough times.
All right. Speaking of tough times, a bailout deal, well, could it happen this weekend? Don Lemon will have the latest from Capitol Hill, and legendary actor Paul Newman dies. More on the life of a man who some say changed Hollywood in a big way.
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