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Finance Ministers, Investors Eye Asian Markets; Solving the Economic Crisis; California Again in Flames
Aired October 12, 2008 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR, CNN NEWSROOM: On the eve on the next trading day, global leaders descend on our nation's capital and European leaders are meeting in Paris. It is a scramble to save the world from the financial brink. Yet we haven't seen anything in it for you yet.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: She flat out said to me, "I can't vote for that black boy."
(END VIDEO CLIP)
LEMON: Racism in the race to the White House. It could change the outcome of an historic election.
(BEGIN VIDEO CLIP)
Hey, Sambo, maybe Master McCain will let you shine his shoes since you did such a good job licking his boots boy.
(END VIDEO CLIP)
LEMON: All right, those are harsh words. And we want to tell you the hate here, goes both ways. It cuts both ways. One black man supporting John McCain is getting an earful from his own people and he is not alone. We'll talk to him.
We're also talking to you about race in this race. We want you to logon and talk to us. The news starts right now.
All that, and the news, starts right now.
We've got a lot of ground to cover for you tonight, 6 p.m. Eastern, here in the CNN NEWSROOM.
But first, a quick update on the U.S. government total debt. This is the reason we're in this. We're living on borrowed time and borrowed money. According to the national debt clock, in Manhattan, the figure has now surpassed $10 trillion, $10 trillion, $150 billion It grows on average about $3 billion a day. So for each American household, each of you watching in a single house, your portion is about $86,000.
With that said, that shows us why we're in this trouble. We want to tell you there is something to think about, as the global financial markets are just about to crank up, in just a little bit.
In a few hours, we'll get a clue about what we'll wake up to in the morning, as the Asian markets open. We're keeping a close eye on it for you. Maggie Lake is at the global leaders summit in Washington. She has been following it for us since it began. Kathleen Koch is watching developments there, at the White House. And Eunice Yoon is following the markets in Asia. And there, you see our Stephanie Elam, she is in New York, where the focus will turn, first thing, in the morning, to Wall Street.
Maggie Lake, we'll start with you. I want to ask you about those world financial ministers at the IMF. Have they been able to come up with a concrete plan to calm international markets? And thus, what's really important, help the every day consumer here?
MAGGIE LAKE, CNN CORRESPONDENT: The short answer is, no, Don. And that is right, the thing we all want to see is they come up with something that is going to make stock markets stop falling, and our retirement savings go out the window?
And they didn't. We have had a lot of statements, a lot of press briefing saying that they vowed to work together, a lot of vague reassurances. But they simply did not come up with a concrete plan of action. And, in fact, a lot of European ministers left town early this morning and convened their own emergency summit in Europe, where they did come to some sort of agreement. They said they would inject capital directly into their banks and that they would guarantee the loans banks make each other.
The problem is that investors really wanted to see everyone get on board with that kind of agreement, including our Treasury Department. While they said on Friday that they are going to take some direct ownership in banks, they stopped short of guaranteeing that bank-to-bank lending.
So, there's a little bit of confusion. I talked to some analysts and they say it is a good thing the European did it. It is a step in the right direction, but frankly there's a lot of disappointment that everyone wasn't able to come to that agreement while they were all here in town. And they don't know if it's going to be enough, at this point, to calm markets, Don.
LEMON: Maggie Lake, we appreciate you following the story for us, from the very beginning. Thank you very much.
Meantime, Asian and Pacific markets will be put to the test in just a couple of hours, now. Are Eunice Yoon is in Hong Kong.
And Eunice, why should people here pay attention to what's going on where you are?
EUNICE YOON, CNN INT'L. CORRESPONDENT: Well, Don, the Asian markets open 12 hours ahead of the New York market so in that way, Asia's markets could act as a leading indicator to the U.S. open.
Now, here, today, Japan's markets are closed for a holiday. But most people are focusing on developments over the weekend, in D.C., as well as among the European leaders.
Most people are saying the most powerful concept that has come out of those talks is the idea that governments could guarantee bank loans and really directly target interbank lending, which has been the real root of the problem in the financial sector.
For the most part, what we're hearing here is what Maggie's been saying, as well. Most of this is just talk. Investors are really concerned that they are not seeing the real mechanics and the details of these plans. One other thing that investors here are talking about now is the about fate of Morgan Stanley. And this is after the stock price dropped on Friday, in the U.S., by 22 percent. And then, later in the day, Paulson, the Treasury secretary in the U.S, had made some comments saying that the government could possibly take stakes in financial institutions. So because of that, people are wondering if Morgan Stanley's going to be nationalized, and if so, how that is going to affect its relationships with clients, in Asia. And could that add to selling pressure in the market open today.
LEMON: It just shows you, Eunice, how everything touches here. There can be a very serious domino effect if one person and one company goes down. Thank you very much. We are going to be relying upon you throughout the evening, here on CNN, because those Asian markets will open first and be an indicator for us.
It is 100 days left in office and you know who we're talking about. This economic turmoil of the past month is not the legacy President Bush would like to leave. Our Kathleen Koch, for the president, though, you know - she joins us now from the White House.
It's not really about the president, it is in some way, but really it is about the American people right now.
KATHLEEN KOCH, CNN CORRESPONDENT: Certainly, Don, and that is one of the many reasons President Bush, this weekend, went to extraordinary lengths. He met twice with world financial ministers, doing what he could to bolster confidence, because as we have seen our economies are just to interconnected. But the clock is ticking when it comes to just how much George Bush can do.
(BEGIN VIDEOTAPE)
KOCH (voice over): As the countdown began on President Bush's last 100 days in office, he broke with recent practice and made no remarks on the economy, but it's clear the issue will dominate his final months. Calls now for both speed and caution in implementing the Treasury Department's plan to buy stock in trouble banks in hopes of thawing the credit market.
SEN. CHARLES SCHUMER, (D) NEW YORK: This cannot be two, three, four weeks. The markets are waiting, the country is waiting and we are beginning a downward spiral not just in finance, which as I said is frozen, but in the whole economy. We need quick action.
SEN. CHUCK GRASSLEY, (R) IOWA: That has to be very, very carefully done so that we do not nationalize our banking system. We are a capitalistic system, and we don't want to move away from that.
KOCH: Some lawmakers are also signing on to the idea of coming back in session in November to pass another stimulus package to boost the economy.
REP. BARNEY FRANK, (D) MASSACHUSSETTS: I think a stimulus package is to give the middle class and the average citizen the same kind of relief that we tried to give for the financial sector.
REP. ROY BLUNT, (R) MINORITY WHIP: Let's not use the stimulus package as an excuse to do what Democrats have wanted to do from day one of this Congress, which is a huge public works plan.
KOCH: Economic experts say despite Mr. Bush's efforts to restore confidence and calm in U.S. financial system, it's unlikely he'll see a major turn around before he leaves office.
DR. C. FRED BERGSTEN, DIR. PETERSON INST. FOR INTL. ECONOMICS: The economic spill out will take place over the next several quarters, probably the next year or two. That's going to be the overwhelming responsibility for the new president.
(END VIDEOTAPE)
KOCH: President Bush has often said when it comes to his presidency he plans to sprint to the finish. Well, with the country now mired in economic turmoil, Don, it's looking like a lot more like a slog than a sprint right now.
LEMON: OK, Kathleen, I have to ask you this, the president mentioned nothing about the economy today. He spoke about it yesterday. But nothing today, does he have something planned for tomorrow?
KOCH: Indeed, he does. A senior administration official tells me that the global economic crisis is expected to be issue number one tomorrow when the president will be welcoming one of the U.S.'s primary G7 partners; Italian Prime Minister Silvio Berlusconi to the White House for a state visit, appropriately on Columbus Day. The two men will be making joint statements in the Rose Garden around 11 a.m., so I'm told we'll likely be hearing something about the economy then, Don.
LEMON: All right, Kathleen, thank you very much for your report.
KOCH: You bet.
LEMON: All right, how often have we heard this? Don't panic. That's good advice if you're many years from retirement, but as it gets close, well those words don't really pay off for us. As CNN's Kate Bolduan found out, these are scary times, especially for seniors.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT: Millions of Americans near or in retirement are watching the current financial crisis threatening to tarnish their golden years.
UNIDENTIFIED MALE: With the economy and the high cost gasoline, and food, and rent and things, it's a disaster for senior citizens.
BOLDUAN: That's why this center in suburban Washington is now offering financial classes alongside aerobics classes.
NICK MARTINEZ, FINANCIAL ADVISER: If you are a retiree, you know, you're playing in a different game. You want to make sure to probably have close to a year's worth of emergency funds.
UNIDENTIFIED MALE: Some people are living on fixed incomes, you know, and they have to ride this out. They don't have the money to ride it out. A lot of people that way, live paycheck to paycheck.
UNIDENTIFIED FEMALE: I worry about the money that I have saved and invested, and concerned for the future.
BOLDUAN: The non-partisan Congressional Budget Office estimates between mid-2007 and the middle of this year, pension funds and retirement savings accounts lost about $1 trillion, 10 percent of their assets. With another significant drop in the past few months. Lauren Young, a personal finance editor for "BusinessWeek" says seniors on fixed incomes need to be especially careful.
LAUREN YOUNG, BUSINESSWEEK: Nest eggs are bruised, they're damaged and they're ugly. You cannot really be drawing down on a depleted nest egg right now, it's the worst thing you can do.
BOLDUAN: So what should retirees do? Experts say avoid risky investing and trying to pad their cash cushion.
YOUNG: You really need to buckle down and think about spending. Going out to dinner every night, buying lunches with your friend, that extra round of golf. These are things that can add up over time.
BOLDUAN: And time is the major concern for retirees at this senior center. Asking when we the economy rebound and will their savings last until then?
(On camera): Now, experts don't know the answer to that question. And because of this uncertainty, more and more people are considering working longer. A new study by AARP found more than a third of workers, age 45 and older, are now thinking about delaying retirement. Kate Bolduan, CNN, Washington.
(END VIDEOTAPE)
LEMON: The real question, now, about the economy, will these meetings -- with the economic leaders in the U.S. and around the world, make a difference on Wall Street tomorrow? We'll try to answer that for you, as a matter of fact. We are watching all the markets everywhere.
Take a look at this. Wildfires send families looking for shelter. Many are still out of their homes. There is a red flag warning out now.
(COMMERCIAL BREAK)
LEMON: Well, the pictures here are really just amazing. Take a look at this. Right now, firefighters - there it is. Man, they are on the front lines, north of Los Angeles. They are making progress against a raging wildfire that's forced hundreds of people to flee their homes, but the worst could be yet to come. We want to turn now to our Ted Rowlands, he is on the scene in Tujunga Canyon.
Ted, people are out of their homes? I'm hearing hundreds. They are not being allowed back yet, are they?
TED ROWLANDS, CNN CORRESPONDENT: No, Don, 450 homes were evacuated starting at 2:00 a.m. this morning. We just got word that they are going to keep those people out at least until tomorrow morning. It is about 1,200 people, we're talking about. People that literally were woken up overnight and said grab some stuff and get out because there is a fire in the area.
And you mentioned it, the big problem is not the fire that is burning now, it's what is coming. And that is heavy, heavy winds. They're forecasted to be coming into Southern California, this evening about 7 o'clock, or later this evening. And they are expecting winds gusts of up to 50 miles per hour
This fire here is about 20 percent contained. Normally in a fire like this, it would be great. You know, 20 percent contained, they can relax and start to get full containment. But they are really up against it here and this is a race against the clock. Normally, where we would see a sort of petering out of the effort, now we're seeing an increase in their aerial attack. Helicopters are dropping, planes are dropping, they're trying to get this thing fully contained or as near fully contained as possible, before these winds come in. Firefighters, clearly, are worried about what's ahead.
(BEGIN VIDEO CLIP)
CAPT. MARK SAVAGE, LOS ANGELES COUNTY FIRE DEPT.: We're in the early part of a Santa Ana event, it could last two to three days. So, this could be a bad time to have any starts at all, because the weather will only get worse, rather than get better. So, we're hitting it with everything we have. Luckily, this is the only fire in Southern California, so we're able to draw a lot of resources.
(END VIDEO CLIP)
ROWLANDS: There's one of the planes that just made a drop, moving on. It's been helicopter, plane, helicopter pretty much non- stop all day long here. And, again, the goal is to try to get this thing contained, or near contained by this evening, before these winds kick in. Because, Don, when you're talking about 50-mile-an hour winds, you are talking about if there are any embers they could be blown for miles into different neighborhoods. And there could be real chaos here, if there is an active fire and those winds are brought into the mix. Nine hundred firefighters are on this fire. There are more firefighters staged in Southern California. Everybody crossing their fingers that the winds won't be as expected, or this thing can be contained before they arrive.
LEMON: You better believe it. And, you know, no one likes to be out of their homes, so of course, our hearts go out to those people there. Ted, we appreciate your reporting. Thank you very much. >
I want to turn now to our meteorologist Karen Maginnis. She joins us now from our CNN severe weather center.
The winds, are they going to kick up there? They are keeping their fingers crossed that it doesn't spread, but the winds will definitely play a role in this.
KAREN MAGINNIS, CNN METEOROLOGIST: This is going to be a several day event. From the computer models it looks like at least until Tuesday, maybe going into Wednesday, with these moderate Santa Ana winds.
What do we mean by the Santa Anas? There is going to be a ridge of high pressure building across the great basin. There is an area of low pressure exiting. So we have this very strong pressure gradient. Thos winds coming over the mountains, they speed, they warm up, and they move very quickly. As a result, the strong Santa Ana winds will continue at least through Tuesday, perhaps weakening a little bit going into Wednesday. Now, you can see all the way from San Diego County, Imperial County, these two were just at it in the last couple of hours.
Also, extending into Orange County, Los Angeles County, Ventura County, we do have those red flag warnings and watches.
This illustrates where that Tujunga fire has been located. As you heard Ted say, that has been contained at just about 20 percent now, over 700 hundred acres. The St. Helena fire, that has been contained, it burned about 300 acres, just about in that Napa Valley region, just to the north of Napa.
Now, yesterday, I told you about the huge storm system, the winter storm that plowed across the Rockies. We have a gorgeous picture of a tower cam, just outside of Denver. Now that looks beautiful, but Denver's is actually overcast right now, and looking at a chance of snow showers.
And, Don, in Boise, yesterday, they saw the heaviest measurable snowfall they have ever seen since records have been kept since the late 1800s. And it looks like could see a could more inches before it is all said and done. They saw inches of snow fall yesterday in Boise, Don.
LEMON: Heaviest snowfall this early the year, is that correct?
MAGINNIS: Exactly. Exactly.
LEMON: Wow. OK. All right, thank you, Karen.
It might as well be winter, Karen, look at these pictures in south central Idaho. This is from our I-Reporter Robert Weaver. And you know we love our I-Reporters, right? Well, he sent us these images from the town of Hayburn (ph) and he says he's gotten two and a half feet of snow since Friday evening. Can you imagine? And he thinks ski season could start a month earlier than usual this year.
All right, let's go now to New Mexico. They got pelted by a hailstorm this weekend. Check out these images from I-Reporter Michael Woodruff, taken Saturday afternoon near Albuquerque . He says there was no lightening or wind, just a shower of pea sized hail. Not good for the car and other things outside. It can cause some damage. Hope everyone's OK, there.
There you are.
NAAMUA DELANEY, CNN ANCHOR, CNN NEWSROOM: Hello there, Don.
LEMON: It's so good to see you here. To just pop up on the screen.
DELANEY: Thought we'd bring you a little company on the set.
LEMON: Naamua and I are friends. We kind of hang out a little bit. It's good to see you.
But we're talking about these bad economic times.
DELANEY: Yes.
LEMON: And it can't be all work and no play and we can't just keep hitting people over the head with bad news. So, you went out and talked to some folks, did you?
DELANEY: Yes, we did. I mean, you have to budget for a little bit of fun in there, I guess.
LEMON: Of course.
DELANEY: Although, we do hear, of course, about people cutting back to deal with this new economic reality. And usually what they say is that they are going to cut back on entertainment. So we wanted to find out what about football games? So we went to a tailgating party today and we found people -
LEMON: You didn't invite me!
DELANEY: I didn't, I'm sorry. But you know it was work.
LEMON: OK.
DELANEY: So people are still eating and drinking and partying. And they're doing it on a pretty strict budget.
LEMON: Oh, wow. (BEGIN VIDEOTAPE)
(AUDIO GAP)
LEMON: Oh, OK. We'll bring you more of that tonight at 6 o'clock, right?
DELANEY: I'll be right back.
LEMON: We are going to hear from those guys at 6:30, yeah.
I thought we were going hear there.
OK, we know there will be quite a few of you watching the McCain/Obama parties. You're going to be watching, right? We have to watch for work.
DELANEY: We've got to be, yes.
LEMON: So, we're going to talk about the final showdown between Barack Obama and John McCain . It's going to be on Wednesday. How about a gathering with an expected 8,000 people? Yes, 8,000 people at a watch party. Bishop Eddie Long (ph) joins me live in just a bit here. You don't want to miss this conversation. He's standing right in the wings here.
Also, he is an African-American radio host and a John McCain supporter. Here's a sample of e-mails he's getting from other African- Americans. Pay attention.
(COMMERCIAL BREAK)
LEMON: He is an African-American radio host and John McCain supporter, and he is getting an earful by e-mail from other African- Americans.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hey, Sambo, maybe Master McCain will let you shine his shoes since you did such a good job licking his boots boy.
(END VIDEO CLIP)
LEMON: Whew. What do you say to that? John Harris joins us live.
(COMMERCIAL BREAK)
LEMON: All right, pay close attention to this one because we are going to be really honest and frank here. There are two down, one to go, the presidential hopefuls are getting ready to square off in their third and final debate this week. Barack Obama and John McCain are both off the campaign trail today, prepping for Wednesday night's showdown.
John McCain went to his Arlington, Virginia headquarters where he practiced for the debate and spoke to campaign volunteers. Meantime, Barack Obama chose the swing state of Ohio for his debate preps. He took some time away from his studies to shake a few hands today, in the Toledo area, going door to door in search of votes.
Ohio is a popular place for the candidates. John McCain's running mate, Sarah Palin there today making stops this hour in rural areas of the state. Places like St. Clarksville, in eastern Ohio. Palin was in Ohio on Friday as well with stops near Cincinnati and Cleveland.
Meantime the Democrats are bringing out their big names to campaign with Obama's running mate, Joe Biden. Bill and Hillary Clinton hit the trail with Biden this afternoon in Biden's childhood hometown of Scranton, Pennsylvania. Biden is fond of talking up his Scranton roots. We have heard him talk about it in the debate, part of his effort to connect with those coveted blue collar voters.
OK, when I said pay close attention, I was talking about this story. Wednesday is it. One of the last major shots for Senator John McCain and Senator Barack Obama to secure your vote. Many of you will be watching to decide who you want to lead this country. If you haven't already. It is getting close.
Bishop Eddie Long is a pastor of Newbirth Missionary Baptist Church, here in suburban Atlanta. And we thank you for joining us here today.
OK, you're going to be having a really interesting event coming up, for this debate party. I don't know if I've ever heard of a debate watch party this big, ever.
BISHOP EDDIE LONG, NEWBIRTH MISSIONARY BAPTIST: Well, it is new things for new times. So, in all of that, we have a responsibility to keep the community informed and with this historic election, in such a time as this, I think it is definitely owed to the voters and the community to be informed and get their questions answered so they can make an intelligent decision.
LEMON: It's good that you want people to be informed. And most people would applaud what you are doing. At least, informing. I have to be honest with you. What about this country, we talk about this whole thing of separation between church and state. But you say this is a non-partisan event?
LONG: This is a nonpartisan event. We'll have a panel of both Democrat and Republican that will answer questions before and after the debate. They will make statements, etc cetera. And then, the audience will have chance to ask questions. So, when they're doing in, they can write questions down, and have specific questions answered. And this is one of the times you are going to see a very large audience that actually gets some input and you can really poll to see what's going on. What's really on their minds?
LEMON: You're going to be doing this online. And you also have your services online as well.
LONG: That's right.
LEMON: So it should really be more than 8,000 people.
LONG: There will definitely be more than that.
LEMON: All right. Why have people, in your estimation, because you are talking to your congregants all the time. Why are people so connected and so passionate about this election? And would show up for a debate watching party in the middle of the week, at church?
LONG: Well, number one, as you know it is a very historic time. You have an African-American, who is the Democratic nominee. You have a woman who is running, could be the first female vice president. We have a real severe economic time that's going on. People are looking for direction, and all of that.
So with all those things turning at one time, and this is just historic. Because if American sneezes, the world catches a cold. So with all of that going on, the people are really concerned. They are really concerned. They really want to be informed.
LEMON: And with this global economy it seems like, whatever, if someone else sneezes around the country -
LONG: Exactly.
LEMON: Or any of the other super powers and we catch a cold as well. And we're seeing that play out in our economy.
Let's talk about other things that are playing out, out there. We're hearing a lot about race, the tone of the campaign, people calling for off with Barack Obama head, calling him a terrorist, and what have you, out on the campaign trail.
What do you say to these things? When you hear words like that, John Lewis, said that the comments were racist. And that in some way that the campaigns may be fueling this.
LONG: Well, certainly, I believe America doesn't want the mudslinging. I think that the tone --
LEMON: People telling you that in church?
LONG: Basically, yes, because what people want right now is answers. They want direction. They want someone is going to get up and that's what they're looking for on Wednesday night. Somebody is going to get up with a plan, explain it, give us direction. Not who's this, who's that, throwing back and forth and those kind of things.
Right now, we want to see beyond this dark period. We want to see us going somewhere. So really, Wednesday night, it is great that they'll have this opportunity to give more direction and more vision.
LEMON: OK, real quickly. So, again, 8,000 people at your church. You have one of the largest churches in the country and definitely if not the largest here in the state of Georgia. Are you seeing this play out in other churches around the country that people are doing similar things and they're getting onboard to do what you're doing?
LONG: Well, we have many pastors and many churches who have called and said they're bringing their congregants here. So the whole metro Atlanta is getting excited about because this is something that has not been done.
Most of the time, you see a smaller group that is interviewed after a debate, but this time you have 8,000 people that have the opportunity to give input, have an opportunity to hear from people on both sides and really rub elbows with one another and get information, which is really, really important.
LEMON: It is so nice to meet you.
LONG: Don, thank you.
LEMON: That suit and tie I might have to come get it because I want to wear it.
(CROSSTALK)
I want to wear it. All right.
Thank you, Bishop Long.
LONG: Thank you very much.
LEMON: And thank you for coming in today.
And as we have been talking about here, Wednesday night is McCain and Obama's final presidential face off. Don't miss the minute of the action Wednesday night live here on CNN. Of course, we are your home for politics and don't forget the economy as well.
We know it's football season. That means a lot of you are tailgating, tailgating parties. Look at those wings. Man, they look good. But this year, it's on a very tight budget.
Plus, we'll have this for you as well.
(BEGIN VIDEO CLIP)
JAMES T. HARRIS, NEWSRADIO 620 WTMJ HOST: Most of the stuff that I got and e-mail, how can a black man stand up and say, well, you know what, you know, I happen to be an American of African descent, but I am a conservative.
(END VIDEO CLIP)
LEMON: Hate mail for a black man who supports John McCain. You'll hear for him.
(END VIDEO CLIP)
LEMON: We're continuing to update you on the economic situation because the markets is going to open a little while in Asia and then, of course, here tomorrow morning. If last week on Wall Street is any indication of what is to come, it is going to be a manic Monday. We know it's a cliche but it is going to be.
Stephanie Elam is in New York. And Stephanie, how long before the economy starts feeling the effects of this weekend's developments. Do we even know that yet?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: And that's exactly the thing, Don, we don't. Obviously, as we heard earlier in the program with Maggie Lake, everyone was looking for more concrete issues to come out of what happened this weekend. We had the leaders, the monetary leaders from around the world coming together. Some not able to pull it all together at that point but then in Paris we saw more information coming together working on a plan.
What every investor wants to see is that there are concrete measures on the table to make things happen. What we'll wait to see is on Monday when the markets open, you know, there's a lot of time between when the Asian markets and when the U.S. markets open up. Something else could pop on the table that could change things but obviously, a lot of cues are going to come from the overseas markets.
LEMON: Can we -- is it going to be as wild as last week? Or should we expect -- I don't know, is it over, that last week, or more volatile?
ELAM: I wouldn't expect the volatility to be done just yet. Obviously, there's a lot of question marks still out there. There's a lot of decisions that have to made.
Henry Paulson, the treasury secretary, proposing this idea of using part of that $700 billion bailout plan to help support the banks. So we'll be looking for more information on that. The man who's been tapped to head up and watch what's happening with the $700 billion plan, he will speak before the markets open on Monday, so we'll be looking to see what he says.
But look at what happened last week, Don. The Dow getting slammed, losing more than 18 percent of its value. Nasdaq off 15 percent. The S&P losing more than 18 percent as well last week.
Obviously, after eight days of losses for the Dow and seven days of losses for Nasdaq, it would be nice to see something changed, but I don't think at this point we can expect the volatility to completely come to an end.
LEMON: Oh, Stephanie, real quick, I just want to say we're going to be reading some of these in a second that I'm looking at my twitter account here. And Scott Davis, Vegas, says, "People want action, not answers. Just do it already." Stephanie, he says, "Let the failing fall and the cream rise to the top and save itself, not the government."
So you can see people are really getting frustrated.
ELAM: And people are paying attention to this one. LEMON: Yes.
ELAM: So it's a big deal. So that's why they need to have some sort of action as we get into next week.
LEMON: Stephanie, thank you very much for that.
ELAM: Sure.
LEMON: All right. So all this talk about the financial crisis on Wall Street, we started wondering how is it affecting everyday people like sports fans looking to enjoy themselves for a few hours on football Sunday. And that's why Naamua Delaney is here. She went out.
You went tailgating this morning. You didn't invite me.
NAAMUA DELANEY, CNN CORRESPONDENT: I know. I think you were sleeping.
LEMON: And I thought we're doing a whole segment last time, I got confused. I thought you were doing your whole segment last night.
DELANEY: No.
LEMON: But now you're back joining me hanging out.
DELANEY: Exactly.
LEMON: What did you find out today when people were talking to you?
DELANEY: Well, it was pretty interesting because obviously, you know, goods or decent tickets...
LEMON: Right.
DELANEY: ... for an NFL game here in Atlanta cost what, close to 100 bucks.
LEMON: Right.
DELANEY: And that's before you even consider gas to get to the game, and food and drinks once you arrive. So you might be wondering how are people still even managing to afford to go to the games in these tough economic times. It seems tailgaters have some budgeting tips that we could all live by.
(BEGIN VIDEOTAPE)
DELANEY (voice-over): It's all fun and games before the Atlanta Falcons-Chicago Bears face off.
Until we realize football is not a little bit on fans' minds.
UNIDENTIFIED FEMALE: Gas costs coming on here and the changing with the prices of parking and the price of the tickets.
UNIDENTIFIED MALE: Everybody is turning an eye to the economy, what's going on with the Dow Jones and watching the markets.
UNIDENTIFIED FEMALE: I'm a teacher and so we've been talking about it at work the last couple of weeks just as far as teacher retirements and you know, where's our money going.
DELANEY: Gas at the trunk (ph), ribs at the grill -- drinks to celebrate the occasion all add up. Never mind the ticket. So fans are trying to figure out how to party down without going belly up.
UNIDENTIFIED FEMALE: Some people with money may buy steaks, we have Slim Jims.
UNIDENTIFIED MALE: This whole trip, being everybody carpooling, you know, five people, that kind of cuts the cost down a lot. You know, we split everything five ways so we're trying to keep everything down.
UNIDENTIFIED FEMALE: So you go out you have fun, but you spend wisely. Bargain shopping for the tickets, staying with my family cut down the expense of a hotel.
DELANEY: Jackie flew down from New York. Leo flew from Chicago.
UNIDENTIFIED MALE: I got a round trip AirTran down here with the taxes (ph) and the seat for $130.
DELANEY: And these guys drove from the Windy City.
UNIDENTIFIED MALE: Just put it on credit and hope it doesn't break our banks. So --
DELANEY (on camera): The Wood (ph) family and their friends have been coming and tailgating for 25 years, and they are not going to let the tough economic times get in the way of their food, their drinks, their friends, and they're enjoyment of a good game.
(voice-over): At least for today, feeding between the hot dogs and hash browns, the message seems to be, spend less but don't stop living.
(on camera): I love the fact that you're still out here.
UNIDENTIFIED FEMALE: Yes. Even though -- and in fact they're much money but we still can come.
UNIDENTIFIED FEMALE: You know, we cut back where we need to to be able to afford the cost of games because we really love the Falcons.
UNIDENTIFIED FEMALE: Yes.
DELANEY: Go Falcons.
(END VIDEOTAPE)
DELANEY: Well, some of the other ways the tailgaters are saying for the financially healthy, looking for two for one deals at restaurants, making sure their 401(k) portfolio's remain diversified and shopping online, where you can more easily compare price. And at the game, they say, the tailgating can actually be economical because you avoid the high priced food inside the stadium. Who would have thought that you would get economic tips from the tailgating party?
LEMON: I got my hand out. I'm asking for --
DELANEY: No, for a high five.
LEMON: Did you bring a hot dog? Anything? Come on, Naamua.
DELANEY: I failed (INAUDIBLE) it would be definitely cold by now.
LEMON: And Naamua, by the way, is a tailgating newbie. She has never tailgated before. She's originally from London.
Bring your mom by. Your mom is very cute. Bring her by and we'll go tailgating here.
By the way, I'm upset, Naamua. They beat Chicago. You know, I moved here from Chicago. All right.
DELANEY: I'm sorry. Devastating, Don.
LEMON: Thank you. Nice job.
All right. A John McCain supporter gets some passionate hate mail. Why? Well, because he's black.
(BEGIN VIDEO CLIP)
JAMES T. HARRIS, NEWSRADIO 620 WTMJ HOST: It's absolutely vital that you take it to Obama, that you hit him where it hits. I am begging you, sir. I'm begging you. Take it to him.
(END VIDEO CLIP)
LEMON: Talk show host James T. Harris talks to us live in the NEWSROOM.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JAMES T. HARRIS, NEWSRADIO 620 WTMJ HOST: I doubt if anyone in this room that's taken the -- pardon me to ask -- what I have taken for supporting you.
(END VIDEO CLIP)
LEMON: Oh, OK, you heard him earlier. He's been called everything from an Uncle Tom. That's probably one of the nicest things people have called him.
I'm talking about James T. Harris. He's a radio host, a McCain supporter, and he is black. And the latter two descriptions have him really in the line of fire. Here's Shelley Walcott from our affiliate in Milwaukee, WTMJ.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Hey, Sambo, maybe Master McCain will let you shine his shoes since you did such a good job licking his boots, boy.
SHELLEY WALCOTT, AFFILIATE REPORTER, WTMJ (voice-over): The hate mail started pouring in almost immediately after WTMJ radio host James T. Harris addressed Senator John McCain at this Republican rally in Waukesha.
JAMES T. HARRIS, NEWSRADIO 620 WTMJ HOST: In the next coming debate, it is absolutely vital that you take it to Obama, that you hit him where it hits. I am begging you, sir. I am begging you. Take it to him.
WALCOTT: The national media pounced.
HARRIS: I knew something was up when "The New York Times" and the "Washington Post" started asking the questions, and then CNN and then FOX. I'm like, oh, Lord.
WALCOTT: The clip made heavy rotation on national talk shows. And Harris says he's heard from African-Americans across the country calling him an Uncle Tom, a sellout.
HARRIS: Most of the stuff that I got and e-mail, how can a black man stand up and say, well, you know what, you know, I happen to be an American of African descent, but I am a conservative.
WALCOTT: And he says he has no regrets.
HARRIS: I realize that I'm speaking for millions of people. It just so happens in this racially, emotionally-charged election that the people who look like me happen to be on the other side of the aisle.
(END VIDEOTAPE)
LEMON: OK. Well, James T. Harris from Newsradio 620 WTMJ joins me live.
OK, James, right to the point. I got to ask you this before we get to the controversy. Why are you supporting John McCain?
VOICE OF JAMES T. HARRIS, NEWSRADIO 620 WTMJ HOST: I started supporting John McCain because as a conservative I have better chance of bringing them over to my viewpoint than if I'm a liberal. It comes down to that. John McCain is not a conservative and never really has been, but he is in the family, in the Republican family. And so, when it comes to issues that conservatives believe in, I have a better chance of bringing him over to my way than I would Barack Obama.
LEMON: OK.
HARRIS: Clear and simple.
LEMON: All right. Let's see, what's the best way of putting this? OK.
Are you voting on -- or are you a conservative? Is it economic issues? Is it issues of value? What's important to you?
HARRIS: It's all of that. I mean, as a pro-life conservative, there's no way in the world that I could support abortion, let alone a candidate who actually voted for it and (INAUDIBLE). I had a bill up for it. I mean, that would be one.
I am for smaller taxes. I love America. It's not that I'm a liberal dog, but it seems that if you show that you do, or patriotic in certain ways that you're castigated for it.
LEMON: OK. And the reason I ask you that is because it's the same reason I ask friends who are gay and support Republicans and they don't believe in gay marriage. It seems the Republican Party at least in recent history, does not seem to reach out to African-Americans...
HARRIS: I see that.
LEMON: ... and support this thing. And that is -- that's what people think. So that's why I asked you that question why you support -- why you support John McCain. So --
HARRIS: But Mr. Lemon --
LEMON: Go ahead.
HARRIS: That comment you just made is something that I think needs to be addressed. Why is it that that seems to be a legitimate hit against you? Well, what have Republicans done for black people? You know what, what have Democrats done for black people?
Since we've been giving them 99 percent of our vote for the last 40 years, how have things improved? How are the black families better? How is -- you know, how are the schools that Democrats run? How have they helped our children?
LEMON: OK.
HARRIS: And tired (INAUDIBLE) that used to be knocked out.
LEMON: Your point is well taken, but that's not for me to answer that. It would have to be someone who is a political analyst or a political strategist.
(CROSSTALK)
HARRIS: I'm just pointing it out. LEMON: OK. Point well taken. And maybe we'll try to -- we'll try to get someone to answer that.
Let's get back to this controversy now. People calling you Sambo and Uncle Tom. And from black people, we've been hearing a lot about the tone out on the campaign trail. And I've got to be -- I've got to be honest with you, when you look at that crowd, and if we can show that video of you in the crowd at the Republican at this meeting, and then also at this rally and then also at the RNC, not a lot of black faces.
HARRIS: True. They were like maybe four of five of us there.
LEMON: So can you understand some of the comments, not the vitriol, but can you understand some of it?
HARRIS: No, I can't understand. I can't understand any of them. Look, man, I got a radio talk show here in Milwaukee called the national conversation. I am a conservative radio talk show host.
The thing is many of those people, many people in the audience knew because they listen to my show. We were waiting in line. People walked up...
LEMON: Right.
HARRIS: ... James T., I love your show. So, you know, in reality, strip away race, these people were my people because they're my fans...
LEMON: OK.
HARRIS: ... and they probably -- we probably have the same ideology, but people want to look at that and say, look at all those redneck white people. And then say, what is that "N" word -- I'll be polite even though people are being blight to me on the blog -- what is that "N" word doing in the midst of all of that? And how could he stand up and say what he said? It just hurts all black people. That mentality is old and tired.
LEMON: James T. Harris from Newsradio 620. And, James, you know, I'm just sort of goosing you a little bit.
HARRIS: I'm wound up, man.
LEMON: Black people are not a monolithic group, and I just wanted to get those answers. You have the right to be whatever you want, conservative, liberal, whatever it is.
So, thank you. And be careful, because I understand you told me that you've gotten death threats. And we certainly don't want anything to happen to you.
HARRIS: I've got death threats. Pray for me. Pray for my family and all of that. That's what we need.
LEMON: Best of luck to you.
All right. If you still have any questions or any doubts as to whether race makes a difference in this election, we want you to listen to this.
(BEGIN VIDEO CLIP)
ANDY ZANAGLIO, UNION MEMBER: She flat out said to me, "I can't vote for that black boy."
(END VIDEO CLIP)
LEMON: All right. We're going to have more on race and racism on the path to the White House, and we're also going to read some of your feedback from MySpace, Facebook, twitter, all of it, coming up.
(COMMERCIAL BREAK)
LEMON: Back now to our central theme we've been exploring tonight, really all weekend on weekend prime at night on CNN, the issue of race in the presidential race.
A labor movement has been the backbone of the Democratic Party for generations with every few exceptions -- with very few exceptions, I should say. But labor leaders in some battleground states are finding some of their members balking at Barack Obama.
CNN's Carol Costello explains the reason is as simple as black and white.
(BEGIN VIDEOTAPE)
CAROL COSTELLO, CNN CORRESPONDENT (voice-over): It remains an ugly truth, race still matters. The question is, how much?
Barack Obama leads in the latest national polls, yet his foot soldiers on the ground still worry.
JIM ENGLISH, SECY. TREAS., UNITED STEELWORKERS: When he finally got to where she finally just sort of lowered her voice and said, well, it's because he's black.
COSTELLO: In the small town of Pennsylvania, Jim English, with the United Steelworkers Union, is sending out teams of union workers like Andy, Laura, and Doug to knock on doors. Their job is to make sure their fellow steelworkers vote Obama.
UNIDENTIFIED MALE: I'm just worried about foreign policy with Obama.
COSTELLO: That's an argument they feel they can win, but sometimes it's more complicated.
DOUGLAS WARD, UNION MEMBER: One lady I went to told me that the reason why she had the issue was because of how she was raised. She said her father is still alive and he's 85, and he couldn't see himself voting for a black man.
COSTELLO: So they have to convince some of their union brethren the race isn't about race.
ANDY ZANAGLIO, UNION MEMBER: And she flat out said to me, "I can't vote for that black boy."
WARD: And they talked about him being a Muslim. He said countless times that he's a Christian.
COSTELLO: Obama is and always has been a Christian. The union feels the Muslim tag is really code for he's black.
ENGLISH: What they're saying is really probably a cover for being uncomfortable with him because of his race.
COSTELLO: In other words, he says, sadly, in some circles, it's socially acceptable to call Obama Muslim rather than something else. And it's not just here in Pennsylvania. Subtle references on the campaign trail to Obama's middle name just reinforce those Muslim beliefs.
UNIDENTIFIED MALE: On November 4th, let's leave Barack Hussein Obama wondering what happened.
COSTELLO: And just last week in Ohio.
UNIDENTIFIED MALE: He was a Muslim, but he won't say it.
COSTELLO: Andy, Doug and Laura are used to that by now. Andy says about a quarter of the people he talks to raise the race issue, but he has a ready response.
ZANAGLIO: What I do when they bring that up, I just say, look, you know, we've got to get past that. We live in America. We're the best nation on earth. We've got to get to the real issues of what's going on in this campaign.
(END VIDEOTAPE)
LEMON: That was CNN's Carol Costello. And here's what some analysts say, it could cost Barack Obama six points and the election. But others point to Iowa caucuses where white voters overwhelmingly supported Barack Obama. So we'll see how this plays out.
Now it's time for some of your feedback. First up, this one is from Facebook and it is from Elizabeth Davis. She says, "There is no question that hateful speech precedes hateful acts. Race is an issue in this election." And then she goes on to talk about as long as an American governor can tolerate screaming, racist epitaphs, as she accuses a senator of terrorism.
OK, now, my MySpace, I believe that the occasional racist would have surfaced in the crowds of Republican rallies, but not because Republicans are racists.
Also from twitter, here's awake. Awake says McCain has created a negative environment which allows hateful speech to thrive.
Thank you very much for all of your responses tonight.
All right. Go there to those platforms and we will read them on air.
I'm Don Lemon. I'll see you back here tonight at 10:00 p.m. Eastern. We will check the world markets for you. The first indication of the week ahead, we'll see you then.
(COMMERCIAL BREAK)
