Return to Transcripts main page
CNN Newsroom
Veteran Courts in Ohio; NFL Goes to London; Breathtaking Drops in Global Financial Markets; Stumping in Swing States
Aired October 24, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Let's look again, shall we? Dow Jones Industrial Averages down about 325 points, 30 minutes into the trading day. We are watching very closely today with our CNN Money Team.
Fearful Friday. In fact, Wall street feeling the weight of the world's recession worries. Our money team also has some tips on what you should do.
And campaign at a crossroads. 11 days for voters to make up their minds. We're following the candidates.
It is October 24th, I'm Heidi Collins. You're in the CNN NEWSROOM.
Your money, your nest egg, your paycheck. They are taking a beating this morning. Markets around the world are reeling from massive sell offs. Right now on Capitol Hill lawmakers are focusing on the next step, economic recovery. The key there, jobs, and how to reign in the nation's growing unemployment. In fact, breathtaking losses in markets around the world. While you were sleeping, a sense of panic first registered overseas in Asia. Growing fears of a global recession pushed down Japan's Nikkei more than 9.5 percent. Markets are also way down in Europe. Markets in England and Germany down more than eight percent.
Nightmare on Wall Street, some would say, brutal numbers before the bell, and they soon got even worse. CNN's money team is in place to bring it all to you, some perspective, if you will. In New York we have Christine Romans. We begin this morning with Carrie Lee, right there on the floor of the stock exchange.
Hi, Carrie.
CARRIE LEE, CNN CORRESPONDENT: Hi, Heidi.
Let's get right to it. The industrials right now coming back off of the lows of the sessions down 304 points right now, quite a market when you consider that a 304 point drop, 3.5 percent doesn't really seem that bad, right? It's all relative. Well, as we were discussing earlier this morning we saw limit down levels, basically pre market trading halted because we hit the lowest level that Dow futures can go. In fact, Nasdaq, S&P halted as well.
Now, during the session the Dow did hit a low point of 504 points. But now we've come back quite a bit from that level. So 317 points to the downside. We are seeing some technology stocks hit even more, though. Microsoft came out with a profit report, and this is really telling of investor psychology this week. It's all about corporate profits, the outlook. People want to know how long is this downturn? How long is this recession going to last?
Microsoft just the latest company to give a weak outlook. It doesn't matter if companies are beating sales or profit numbers for the recent quarter. It's all about more than ever what's happening going forward. And so for that reason Microsoft's weak outlook, the stock down about 2.6 percent -- Heidi.
COLLINS: All right. Appreciate that. Carrie Lee, we know you're watching those numbers very closely there.
Also, we want to widen our focus for just a little bit. Christine Romans is in New York this morning.
All right. So we hear some of these terms, a lot of people really haven't heard before. Limit down we just heard about from Carrie Lee. We also hear this bigger word, global recession, global liquidation.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's right. I mean, people are talking about how this thing has spread from fears about the credit market in the U.S. to worries about banks overseas to now worries about corporate earnings around the world. All kinds of different companies in all kinds of different countries are starting to report their earnings. And in those earnings we can see that there is pain for these companies, that the economic environment that they're operating in is deteriorating. And that's what's spreading this fear.
Also over in the U.K., you know, had the first shrinking of its economy since the recession of 1991. So that's sparking more fear. It just kind of all starts to steamroll. But I'm going to tell you that a lot of people that I've been talking to on the phone and e- mailing this morning, they're kind of relieved that they're not seeing something worse that indeed that early limit down 550 points in the Dow is not translated into a 500 point or worst loss in the Dow Jones industrial averages so far this morning.
COLLINS: Yes. In fact, Christine, let me ask you about that. Because when they put that into play it's sort of an automatic stop.
ROMANS: Yes.
COLLINS: What does that do? I mean, does it really save the numbers from going down even worse once the bell does open?
ROMANS: Well, what it's meant to do, it's meant to be just kind of a stop for a second so that if it's panic or irrational selling that is you know feeding the decline, that it forces things to just stop for a minute and for the fundamentals to come back into play. And maybe that's exactly what happened, that when you had to stop the selling, you know, in the futures market, that that kind of you know, stopped the selling in futures that didn't translate then into big selling at the open. I mean, don't get me wrong. 306 points is big selling. We've become sort of numb to -
COLLINS: We have.
ROMANS: -- these numbers on the big board. 8,300 in the Dow is a far cry from where we were, you know, last year. And you look at the S&P 500, that's 500 stocks, so it's a better representation of the overall economy. That's down 41 percent, Heidi, over the past 52 weeks, over the past year. You can see that chart. It has been a bruising ride on the way down. The question is now, is there more selling. Is this going to be a worse-than-average bear market? Or because we're right in there. We are already slightly worse than the average bear market since 1929.
So we've already seen a lot of damage. The other thing is how many people stepped in here and said, you know, maybe they wanted to buy stocks. Maybe they've been looking for their big moment to buy stocks.
COLLINS: Yes. Sure.
ROMANS: That could be what's happening, too. But I mean, it's hard to talk about buying stocks when you still have the Dow Jones 331 points. But indeed the futures were pointing to something worse earlier on. But it is this uncertainty around the globe, that something that is different. I mean we've been talking about a lot of different macro economic factors and then financial infrastructure problems that we've had. But this is now something that is spreading around the globe and you're seeing it in different countries reporting what's happening to their economies.
And then also you're seeing it indeed in different companies in all kinds of different industries. So we know that this thing has sort of taken root and spread. And so now it will be - the pain in the markets will be about trying to figure out how deep it's going to be, what it's going to look like and how long it will last.
COLLINS: Yes. Definitely. It's something that we haven't talked about and we want to get next time on his credit. Because some of that reporting is actually getting a little bit more optimistic. We've been talking about the downside of that as well.
So, Christine Romans, appreciate it. We'll check back a little bit later on.
Now to politics. And the presidential candidates focusing on key battleground states with just 11 days to go. Guess where they are today? John McCain starting his day in Denver. He has several other stops in Colorado. Then he's off to New Mexico to get ready for Saturday's campaign events there. Governor Sarah Palin started the day in Pittsburgh, Pennsylvania. You saw some of that here, some of her event on special needs children last hour. She'll be talking to voters in Missouri though a little bit later on this afternoon.
Joe Biden beginning his day in blue collar Charleston, West Virginia. That's a state where the race is getting much closer now. Then it's on to Virginia, one of those all-important battleground states. Barack Obama noticeably missing from the map. He is off the trail today. Instead he's in Hawaii with his grandmother who as we've been reporting here is ill. CNN's Suzanne Malveaux is joining us live from Honolulu this morning.
Good morning to you there, Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Heidi.
It really is kind of a bitter sweet home coming for Barack Obama. He arrived here in Honolulu about nine hours ago. It's 4:00 in the morning here. He arrived about shortly after 7:00 or so in the evening. He went directly to his grandmother's house to visit, had a chance to talk to Barack Obama as well as his sister Maya about his relationship in a documentary that we did about him. They are very, very close. It's very significant relationship.
As you know Barack Obama was abandoned by his father. He was separated from his mother for long stretches at a time when she was studying in Indonesia. So it was really his grandparents who played a pivotal role in the raising him as a teenager here in Honolulu. I want to show you what he said the night that he got the Democratic nomination about his grandmother and also a bit about my conversation with his sister, Maya. Take a listen.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Thank you to my grandmother who helped raise me and is sitting in Hawaii somewhere right now because she can't travel. But who poured everything she had into me. And who helped to make me the man I am today. Tonight is for her.
MAYA SOETERO-NG, BARACK OBAMA'S SISTER: Our grandmother lives in the same apartment that she's been renting for nearly 40 years, 950 square feet. That is our family estate. When he becomes president, I hope they put a little, you know, historical plaque up there.
(END VIDEO CLIP)
MALVEAUX: And Heidi, Maya goes on to say that it's really a constant for Barack Obama that house as well as his grandmother there. She says they still have '60s furniture inside the house. That is still where the grandmother lives. And that is where he is visiting. And we got a chance to get a sense of what she's been doing. And she has not been able to follow him on the campaign trail. But she does watch very closely on cable television. She is turning 86 on Sunday. Obviously a very important time for Obama as well as the family.
A lot of people believing that this is very important to spend time with her now. Barack Obama saying just yesterday he believes that voters will understand taking this time off but he is going to be back on the campaign trail hitting some western states that all went to Bush back in 2004. Obviously this will be important to get back on the campaign trail at this really critical moment, special moment for the family -- Heidi. COLLINS: Understood. All right. CNN's Suzanne Malveaux for us this morning from Honolulu, Hawaii.
And as we said, John McCain is in one of those western states, Colorado, courting voters in that key battleground state. CNN's Dana Bash is joining us now live from Denver this morning.
So Dana, Senator McCain trailing Senator Obama in that red state, what does it say about the challenges that lie ahead for him?
DANA BASH, CNN CORRESPONDENT: It is absolutely telling, Heidi.
This has been a red state. It hasn't gone for a Democrat in 16 years. But you know, obviously the Democrats had their convention here. That is because the demographics have been changing. And you know, John McCain, according to our average of polls is down by six points.
Obviously the fact that he is here means that there is at least some in his campaign who think that it is still doable to win this state. Let me show you some of the contradiction I think. This is the "Denver Post." Actually it was yesterday's post. 'Election Cash leaves Colorado." What is this talking about? Specifically about the fact, Heidi, that the McCain campaign in the last week, they've slashed their advertising here pretty much in half.
So you know, he's here. He's going to campaign. The crowds are gathering here for his rally that's going to start in a couple of hours but this is one of those red states and those states in this area, in this southwest where John McCain and his campaign actually are looking at it and saying it doesn't necessarily look that good, but he's having at least one last go of it before the election in just 11 days, Heidi.
COLLINS: Have aides mentioned to you, Dana, what they think his message will be there today?
BASH: Yes. We are going to hear John McCain continue to relentlessly pound on the issue of taxes using, of course, Joe the plumber as kind of his vehicle to do that, to show a contrast, really a good old-fashioned philosophical debate between a Republican and a Democrat. I think it's actually giving him a little bit of traction. Traction he obviously needs. But also one thing we heard last night, Heidi, that they're starting to do and I think we're going to hear more in the closing days is warn voters what it would be like in Washington with total Democratic control. Listen to what John McCain said last night. We'll probably hear it today.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We've already seen a preview of their plans. And it's pretty simple. Tax and spend. Now, the chairman of a powerful committee in the House of Representatives said this week that they, "are going to focus on an immediate increase in spending," and then he went on to say that, they're "a lot of very rich people out there whom we can tax." Really? Is there really? Is there really?
(END VIDEO CLIP)
BASH: John McCain maybe doing his "Saturday Night Live" imitation there saying really. We've heard that a couple times lately on the campaign trail. But one more thing I think we're going to hear, they're also hoping to turn a little bit of the conversation back to national security. They have a new ad out today with Joe Biden's own words warning that there could be basically an attack on the United States for America's enemies who want to test Barack Obama. It's a pretty stark ad that is running allegedly in some of these battleground states. Heidi.
COLLINS: All right. CNN's Dana Bash for us from Denver this morning. Thank you, Dana.
Ten issues in 10 days. We're counting down to Election Day. Breaking down the issues that you care about most. And what the presidential candidates want to do about them, the problems and the plans from education to health care and homeland security. We take things off tomorrow with "issue number one," the economy of course. Ten issues in ten days only on CNN.
What does this morning's market slide mean in the long term? One expert has a prediction on how long these tough times could last.
(COMMERCIAL BREAK)
COLLINS: America's financial crisis has spread around the world and is likely on your doorstep. Your investments are shriveling, your anxiety, no doubt, soaring. So what now? Joining us an expert in deciphering the clues, Gus Faucher, the director of Macro economics at moodyseconomy.com. He's joining us from West Chester, Pennsylvania.
OK. So right off the top, Gus, what do you make of the day, what you've seen so far? Dow Jones industrial averages are down about 382 points. We saw limit down happening with the futures, basically they froze the trading, if you will. So they wouldn't go any lower. What do you make of it?
GUS FAUCHER, DIRECTOR, MACROECONOMIC, MOODY'S ECONOMY.COM: Well, I think obviously investors are very concerned that there's a global recession coming, that the problems in U.S. financial markets are spreading worldwide. We got bad news today from the United Kingdom. Their economy contracted in the third quarter, bad earnings reports from Japan and Europe. Bad purchasing in major index reports from Europe. So it appears that just everything is falling apart in terms of the global economy. And its the global economy that's going to be in recession for some time.
COLLINS: Well, how do we - when we talk about you being able to decipher the clues, I mean, clearly that is one of the very big questions out there today. How long is this going to last? What will economists be looking at to try and figure that out?
FAUCHER: Well, it's going to be a number of things. I guess the key point is what's going to happen to credit flows. Right now the problems are tied to what's going on in credit markets right now. Banks aren't lending. It's very difficult for companies to get money. And until that clears up, the global economy is going to be in serious trouble.
COLLINS: And yes I want to report this to you, according to the "Associated Press." We just got a report in that says that in September's existing U.S. home sales rise by 5.5 percent. Now that is apparently the largest amount in more than five years. How does that strike you? We're talking about credit. I mean people need credit to get a mortgage to buy a home.
FAUCHER: Right. And I think a lot of those home sales were actually probably initiated before the worst of the credit problems hit.
COLLINS: OK.
FAUCHER: We had mortgage rates come down in August. We have falling house prices. So I think those were positives for home sales. I think they're going to get worse over the next few months as mortgage flows remain very tight. So I think this will probably be the last good news in terms f home sales that we're going to get for at least a few more months.
COLLINS: All right. So what do you see happening and what should people be doing? Let's talk about just through the end of the year as we try to make it through 2008? What's your best advice for people for riding out the storm?
FAUCHER: Well, you know, I mean, I guess the best advice I would have is, if you're a short-term investor, then you should probably not be in stocks given what's going on. If you're a long-term investor then just hold steady. I mean prices are down, but I think that they will come back over the longer run. And in fact, if you're holding on for the long term, I think since stock prices have come down, this actually might not be a bad time to buy.
COLLINS: Aha, say that again, might not be a bad time to buy.
FAUCHER: That's correct.
COLLINS: Who's doing that?
FAUCHER: If you can hold for a long time.
COLLINS: OK. If you can hang onto them for a long time, that's what you should be considering.
FAUCHER: Right.
COLLINS: All right. Very good. We appreciate your help today. Gus Faucher, the director of macro economics at moodyseconomy.com. Thanks again, Gus.
FAUCHER: Thank you. COLLINS: Doctors being dishonest. A new survey says patients are not always getting what they think they are.
(COMMERCIAL BREAK)
COLLINS: Quickly, I want to get into a check of the market for you right now. Dow Jones industrial averages down about 364 points. We've been talking about this all morning long. We will continue to watch those numbers for you. Our CNN money team is all over the story across the world in fact today.
Call it doctor's orders. According to a new survey about half of U.S. doctors regularly prescribe placebos in place of drugs or treatments targeted to the patient. And they usually don't tell their patients. CNN's medical correspondent Elizabeth Cohen is here now with more details on this.
Really -- what's this all about?
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: This could have happened to you and you wouldn't even necessarily know it or to me or anybody else. This is basically according to the authors of the study, this is what they say goes on. That someone comes in with aches and pains, my back hurts, my toe hurts, my stomach hurts, whatever. And they do all these tests and treatments, nothing works. And so the doctor is like vitamin C, that will help. They're just sort of throwing something at them in order to get them to work. And so we have a list of all the things that doctors prescribe as placebos, things like vitamins, anti-inflammatory drugs like ibuprofen, antibiotics, saline sometimes as an IV and sugar pills, like pills that literally do nothing. And the feeling that some doctors have is patients want them to try something.
COLLINS: Right.
COHEN: You know, they want them to try something. They've tried everything else. And so they're just like oh, take this.
COLLINS: Well, I mean, is it legal? I'm sure it is.
COHEN: It is legal. Doctors can prescribe anything they want for whatever they want. It's perfectly legal. The American Medical Association says it's not ethical, especially since the doctors for the most part aren't telling the patients that they're really just giving them a placebo. And then you have to wonder about the cost.
COLLINS: I mean, what am I paying for a sugar pill?
COHEN: Right. Or your insurance company? Right, exactly.
COLLINS: Or some saline -
COHEN: Exactly, so you may be paying for something that isn't necessarily going to work. So what you can do is you can say to your doctor, if you get the feeling he's just kind of throwing something at you, you can say really, doctor, vitamin C for a stomach ache? Is there some science behind this?
And you doctor might surprise you and they might say, you know what I have found in my practice that this works. Or I have, you know, you have a lot of aches and pains, I think you're anxious, I want to prescribe you a sedative. Your doctor might have good reasoning but it doesn't hurt to ask.
COLLINS: Yes, I know. I think that's a very good idea.
COHEN: Always ask questions.
COLLINS: It's a little scary. Just quickly. Any idea how widespread this is, I mean, and how big the study was and this actually -
COHEN: Yes. According to this survey, it was a big survey. It was done by folks at the National Institutes of Health. Half of all doctors do this. and you would really have, without asking those questions, you would have no way of knowing if your doctor is doing that.
COLLINS: Exactly. All right. Half of all doctors. All right. We're watching this story very closely. Thanks so much, Elizabeth Cohen. Appreciate that.
HIV testing at a suburban St. Louis High School, it happened this week. The tests made available after county health officials learned that as many as 50 students may have been exposed to the virus that causes AIDS. The St. Louis County Health Department would not say whether the infected person was a student or even connected with the school. School officials say students are being tested in private and on a voluntary basis.
Drive-flew flu shots, they are available outside a hospital in Norwood, Massachusetts. The drive-thru flu shot clinic opened yesterday. Motorists 18 and older paid $20 each for the shot. The hospital will offer the service again next week.
Keeping a close eye on the markets for you today. Dow Jones actually up a little from the morning low now. We are heading back for an update from the floor very shortly here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: Wall Street trading has been underway now for about an hour, and the markets are continuing to show a steep decline. We are also watching Capitol Hill. They're holding a hearing on jobs and economic recovery. We're going to keep watching all of it for you and keep you updated.
The race for '08 now entering its last lap with Election Day just 11 days away. The candidates and their running mates are crisscrossing several key toss-up states. Today John McCain making several stops in Colorado. Sarah Palin is spending the morning in Pennsylvania before heading to Missouri. Barack Obama is in Hawaii today as you know visiting his sick grandmother. But he is expected to return to the trail tomorrow with scheduled stops in Nevada. Joe Biden is stumping today in West Virginia and Virginia.
Taxi drivers never known to hold back on their opinions are weighing in on the razor close election. CNN's Zain Verjee hears them out as she hitches a ride with some cabbies in the nation's capital.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Taxi!
VERJEE (voice-over): D.C. cabbies, the United Nations of political pundits is speeding toward the finish line of campaign 2008.
UNIDENTIFIED MALE: I'm from Washington, D.C.
UNIDENTIFIED MALE: I'm from Sierra Leone. I'm now a U.S. citizen.
UNIDENTIFIED MALE: I was born and raised on Capitol Hill.
UNIDENTIFIED MALE: I'm from Somalia.
UNIDENTIFIED MALE: I'm from the city of Washington, D.C.
VERJEE: As the incumbent prepares an exit, the cabbies are ready for the next act. With all the stops and goes and left and right turns, it's now just a short sprint to the White House.
UNIDENTIFIED MALE: Well most of the people they say Obama - Obama is the one.
UNIDENTIFIED MALE: He has his ups and downs. But, he has more ups than downs.
VERJEE: The tuned in the cabbies talk up McCain.
(on camera): Do you think that McCain has the kind of experience that a lot of people say that they want?
UNIDENTIFIED MALE: Yes. Yes. Yes. Yes, I believe it. And I believe it's a lot of hidden votes.
VERJEE: Do you think the temperaments of the candidates matter here?
UNIDENTIFIED MALE: Oh, yes, of course. Of course it does. Like McCain, he is short-tempered. Sometimes he just you know, goes off.
VERJEE: Are you worried about any last-minute surprises?
UNIDENTIFIED MALE: I'm concerned.
UNIDENTIFIED MALE: The Republicans are behind right now. But I believe that they might have a bombshell.
VERJEE (voice-over): And the cabbies are watching the meter and the gas gauge.
VERJEE (on camera): Shouldn't they be talking about Joe the taxi driver?
UNIDENTIFIED MALE: Of course they should be talking about Joe the taxi driver. But, time will (INAUDIBLE).
(LAUGHTER)
VERJEE: Well, what would Joe the taxi driver tell the candidates?
UNIDENTIFIED MALE: Well, what we'll tell the candidates is first of -- are gas prices clearly not right now. That is our biggest concern.
VERJEE: Do you think McCain will be more sensitive to the issues of seniors?
UNIDENTIFIED MALE: Yes, I do.
VERJEE: Why?
UNIDENTIFIED MALE: Because he's a senior.
UNIDENTIFIED MALE: Last thing I always tell my passengers regardless of who they're for, let's make sure we vote.
VERJEE: How do you tell John McCain or Barack Obama how to get to the White House?
UNIDENTIFIED MALE; Well, by now both of them should know how to get to the White House.
VERJEE (voice-over): Zain Verjee, CNN, Washington.
(END VIDEOTAPE)
COLLINS: 10 issues in 10 days. We're counting down to election day, breaking down the issues that you care about most and what the presidential candidates want to do about them. The problems and the plans from education to health care and homeland security. We kick things off tomorrow with issue number one, the economy. 10 issues in 10 days, only right here on CNN.
(BUSINESS HEADLINES)
COLLINS: Want to get straight to some of our other market experts now, today. Christine Romans is part of the CNN Money Team and so is Ali Velshi. The two joining me now from New York.
And there's so much to talk about, guys. And one of the things I want to point out is about the jobs hearing that's taking place in Washington, D.C., this morning. A lot of people very, very worried about their situation with their employment. ROMANS: Yes, that's absolutely right. I mean, I can tell you that we've seen a lot of jobs lost already. We've seen Merck lose jobs. We've seen -- who else, this week? GM, Chrysler --
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Yahoo, Goldman Sachs.
ROMANS: Xerox.
VELSHI: Chrysler closing a plant in North Toledo, Ohio, and hastening the closing of another plant. This is exactly the pattern you see if we are in the recession that we think we're in. You know, the market sort of confuses the issue a little bit, doesn't it? Because we pay so much attention to the scoreboard. But the bigger story out there might be the jobs.
ROMANS: That's right. And Greenspan said yesterday, Alan Greenspan said, we're see more job losses. I mean, this is just the beginning of that whole process. And so, that's something that's going to be debated as well. And you know, the candidates both say they want to help create jobs. Well, it's a question of whether we're going to be creating jobs or we're going to be voting for the candidate who can help lose the least number of jobs.
VELSHI: We've lost 750,000 jobs until September. January through September. Then the layoffs that we were just talking to you about have happened in October. So, we're expecting to see more.
In fact, we had a number that came out the other day that said we have had the greatest number of mass layoffs in September of this year, as compared to September of 9/11. Mass layoffs means more than 50 people being laid off from the same company. So we are fully expecting the next jobs report to show us something very serious. But, Heidi, that comes out on November 7th, after the election.
ROMANS: That's absolutely right.
COLLINS: Yes. Well, there's so much else to talk about here when we look at the markets and we experience this thing, if you will, called limit down, where the futures were basically halted.
Well, a lot of people, you know, they just haven't ever heard of that before. And don't understand why today is different because we have seen this massive volatility all over the place with stocks.
ROMANS: Well, let's talk about limit down first. Limit down happened before the opening bell here on Wall Street, right? So, limit down was when futures weren't halted, but they didn't allow them to go any lower.
VELSHI: Futures are the bet that people can actually bet money on where the market it going to go. So that they're actually trading where the S&P or the Dow are going to go.
ROMANS: And they're trading right now, too. Futures are trading again. But now, we -- the focus has shifted to the actual Dow and the S&P and where they're trading right now.
So, there is a great sense of, shall I say, mystery, among many of the people that we talked to this morning. Because it felt as though there was some really serious selling that was going to spill in from overseas and (INAUDIBLE) the opening bell. And some of the brightest people in the room have been saying they were looking for -- you know, I'm going to trying not to use a lot of jargon here. But, a big delivering. You know, they were looking for big selling because there were investors who are forced to sell. That they had to get out of the market.
VELSHI: And get the money to use --
ROMANS: To get the money to use it for other things. And then --
VELSHI: It didn't happen that way.
ROMANS: The Dow is down 388 points. Which I was telling Heidi before. It's like we're numb to --
COLLINS: Yes. Big whoop.
VELSHI: Right. At the end of the day when we would have thought -- we would have been covering that and only that. And now it's like, why is it only down 400?
ROMANS: We're getting used to 400 point moves I'm afraid in this market. But, it is holding well above the lows that we set just in the last week or two. The market it. So, we're just trying to make sense of it. I mean, trying to figure out what a market is going to do is just so impossible in the first place.
VELSHI: But, you know, Heidi, if we had a big board like this that every day told you every job that was being lost in America, it would be a more relevant part of this discussion.
But, unfortunately the scoreboard with which we are presented happens to be this one. And it is always -- it's important because it's your 401(k). It is important to know what's going on in the market. It's probably not important if you're not employed in the industry to stress too much about it. You know, it's part of the larger economic picture. It's not the only indicator.
ROMANS: And let's give some perspective really quick. OK. So, the S&P 500 is down 41 percent over the past year, right?
COLLINS: Yes.
ROMANS: Let's put that into perspective with all these other bear markets. This is I think, the 15th bear market since 1929. It might be the 16th, I'm sure sure. But there have been more than a dozen bear markets since 1929.
This one fits right in there a little worse than average. When you look at of all those bears, I think we have a screen of them that's pretty interesting, too. A garden variety bear market is about 29 percent losses from top to bottom.
A mega meltdown is about 57 percent. We're nowhere near that in terms of how much this market has come down. And all bear markets on average are down about 38 percent. We're right there. I mean, we're already -- the S&P has already done more damage than sort of the average of all the bear markets since 1929. So, we've already come a long way.
COLLINS: No. But that's really good perspective. And also, when you talk about the jobs, Ali, they're telling me in my ear you in fact, are going to be creating that board with all the jobs so we can watch that.
VELSHI: Not a bad idea.
COLLINS: Yes, so we can watch that.
VELSHI: Not a bad idea.
COLLINS: I don't think it's a bad idea, at all. All right, you guys. We sure do appreciate it.
Christine Romans and Ali Velshi, part of CNN's Money Team.
Thanks, you guys.
And you can follow your fortunes at CNN money.com. We do have all of the days market news and numbers, expert analysis and much more. So, make sure you check it out, especially on a day like today.
Crisis averted in Los Angeles. Firefighters have contained a wildfire that got dangerously close to the famous Getty Center. The museum houses thousands of pieces of valuable artwork. Multi-million dollar estates also in the fire's path. It did take hundreds of firefighters about eight hours to put out the fire.
Meanwhile, another blaze 40 miles outside of Los Angeles, is still out of control. So far, it's burned through 200 acres at the base of Mt. Baldy and is nowhere near contained. Luckily, though, it is moving away from homes in the area.
(WEATHER REPORT)
COLLINS: Oil prices at their lowest level in almost a year and a half. Now, OPEC cutting production. So, what does that mean for your fill up?
(COMMERCIAL BREAK)
COLLINS: Quickly want to get another check of the big board for you. Dow Jones Industrial average is now down about 385 points, which is obviously, not a pretty picture. But we should tell you that all the major (INAUDIBLE) are now off of the lows which in the first few minutes of trading were like down as much as 504 points, the futures I should say. So, not so great. But apparently looked like it was going to be a whole lot worse than it is right now. So, we're watching those numbers very closely for you.
The silver lining in this global economy slowdown has been the slide in energy prices. But overnight OPEC slashed oil production. So does that mean higher prices are on the horizon? CNNMoney.com's Poppy Harlow has our Energy Fix now from New York.
This is certainly something that everyone's talking about, Poppy.
POPPY HARLOW, CNNMONEY.COM: Everyone'S talking about it, but it's really the reverse reaction that we've seen here. You know, OPEC's decision is always a big factor in oil prices, Heidi, because the cartel controls 40 percent of the oil in the world.
This time, they decided to cut oil production by 1.5 million barrels a day starting next month. That is more than expected. Their hope in doing that was to keep the oil price ins the $70 to $90 range. But, they say the recent collapse in prices has been quote, "unprecedented in speed and in magnitude."
It took four years to get to where are, where we were this summer at $147 a barrel. That position has been unwound, it has fallen back in just a matter of months. And it's really unbelievable how it's happened. I talked to a man who helps run an energy trading company. He said, and I quote here, "It's an apocalyptic psychology currently pervading the markets." Currently the oil markets, the stock market, everything. This is not based on fundamentals. And I think what we're seeing this reaction to OPEC really is telling us just how nuts things have gotten.
COLLINS: Yes, really. I mean, if OPEC cut production, then why are prices down?
HARLOW: Yes, that's a big question. Some economists were looking at an even bigger cut. More importantly, today we're down $3.50. What it shows you is that the global economic slowdown, not just here in the U.S., that is the overriding concern right now Not supply.
Even OPEC says demand will continue to fall even though we're getting close to winter. Some analysts say that means prices could go as low as $50 a barrel. Another trader this morning said this, Heidi, I'm almost scared to throw it out there, but $37 a barrel.
COLLINS: Wow. That sounds like a great thing. But we talked about this before, Poppy. Cheaper energy doesn't always help us.
HARLOW: It doesn't. And most Americans like what they see at the gas pumps. They see it as a ray of sunshine in all in doom and gloom. But, when you talk to the experts, they say it is a symptom of a slowdown around the world, rather than a sign of hope.
It could also be a sign of deflation when prices on a number of goods start to fall. The worry there, if those prices could fall below the amount it takes to produce the product, that means shrinking profits, more layoffs, it's a vicious cycle, a complex one. And you know, if we see oil below $40, they're not making as much money as it costs to make it.
So, a lot of people unnerved today. More right there on CNN money.com -- Heidi.
COLLINS: That's right. All right. Poppy Harlow, CNNMoney.com Sure do appreciate that.
Thanks, Poppy.
HARLOW: You're welcome.
COLLINS: CNN and MTV working together for America's young veterans. We'll tell you about some special programs this weekend. Plus, one project helping vets in the legal system.
(COMMERCIAL BREAK)
COLLINS: Another check on the market for you now. 10 minutes before the 11:00 hour, Eastern time. You can see Dow Jones Industrial average is down about 365 points. We are watching all of those numbers for you very closely, right here on CNN.
This weekend CNN's Anderson Cooper teams up with MTV, to bring you "Back From the Battle." A one-hour special featuring compelling stories from young veterans. MTV correspondents Sway talks to a former Marine in Oklahoma, who's helping to set up a court for veterans struggling with serious stress disorders.
Take a look.
(BEGIN VIDEOTAPE)
SWAY CALLOWAY, MTV CORRESPONDENT (voice-over): : Recently John Bennett started noticing more young veterans at his job. And that's not a good thing.
JOHN BENNETT, U.S. MARINE CORPS VETERAN: I work for the Sequoia County Sheriff's Department. Working here, I run into a few veterans that were in here. They were -- come across and they were using drugs or alcohol. Nine times out of 10, it leads to some sort of criminal activity. And that criminal activity would land them here in the jail.
CALLOWAY: As a former Marine who served in Iraq and Afghanistan, John recognized that some of these young vets were suffering from post-traumatic stress disorder.
BENNETT: A lot of them are doing what I call self-medicating. They come back from a combat zone and they're not sure how to handle their feelings or what they're going through. A lot will get into drugs because they need something to numb the feelings. They get into drugs or they get into drinking alcohol really heavily.
CALLOWAY: And locking them up just didn't feel right.
BENNETT: In the Marine Corps as a gunnery sergeant I took care of my men at all costs and tried whatever I could to bring them all home alive. So, when I got back here and saw what I went through and then what all these young men and women were going through, you know, I felt I had to do something.
CALLOWAY (on camera): One in three Iraq vets will deal with the serious psychological injury like PTSD. If untreated, those problems can keep piling up with more issues like substance abuse and a trip here.
John decided to use his knowledge of the justice system to help out his fellow vets. He's working with the county of Tulsa to set up a court specifically for veterans.
MATT STINER, VETS LIAISON, CITY OF TULSA: It makes absolutely no sense then to send them to jail when they're suffering from issues that happened in combat. Instead of going to jail, they're going to not receive help, but now they have a record, take them to further sentence and get them help through the VA.
CALLOWAY (voice-over): Everyone who goes through the court will get hooked up with another vet as a mentor.
STINER: Someone like myself, a former Marine, did a tour in Iraq. I'm much more likely to talk to somebody who served in Iraq as well. And that person, that mentor, will serve as somebody. Like a sponsor in essence to make sure they're making their appointments. But also to be kind of there as a crutch.
CALLOWAY: The process will operate like a regular drug court. But veterans sentenced to treatment for both their substance abuse problems and their mental health condition.
(on camera): Well, isn't that preferential treatment.
BENNETT: These men and women have volunteered to go to war, pick up a weapon and actually in some cases kill another human being for their country. We should at least provide them the opportunity in this veteran's court to fix themselves and give them more chances than you would someone that has never really contributed to society in the first place.
CALLOWAY (voice-over): Vet court will meet for the first time in mid-November. But that doesn't mean the work is done for these two.
STINER: Hopefully every city in this nation will have one. It's a moral obligation that we take care of those who go fight for us.
(END VIDEOTAPE)
COLLINS: The MTV "Concert For the Brave: A Night for the Vets," airs tonight at 8:00 Eastern, and features music from Ludacris, 50 Cent and many others. You can see "Back From the Battle," the "AC360" special Saturday and Sunday also at 8:00 p.m.
The NFL's game plan. Cross the pond, bridge the gap, build a new fan base. (COMMERCIAL BREAK)
COLLINS: Last check of the Dow Jones Industrial averages right now down 324 points. We are watching those numbers really, really closely for you today.
Also watching this story. The National Football League and its international game plan. Now, on Sunday, the San Diego Chargers and New Orleans Saints take the field in the heart of London.
CNN's Pedro Pinto is on the sideline.
(BEGIN VIDEOTAPE)
PEDRO PINTO, CNN CORRESPONDENT (voice-over): Surrey and Hertfordshire. Two counties on the outskirts of London, normally known for peace and quiet. Not this week. The NFL is in town.
The New Orleans Saints and San Diego Chargers are in England for a regular season game at Wembley on Sunday. And each team has brought over around 130 people. That's players, coaches and other staff. Overall, the NFL said it had booked over 400 rooms at the Grove in Hertfordshire, and the Pennyhill Park Hotel in Surrey. Special arrangements have been made.
JOE LEVIN, THE GROVE HOTEL SPOKESMAN: We had to make some pretty significant changes to the building for the requirements of the NFL. So, what you see going on behind us is the gymnasium. This is where the guys will be coming to do some of their weight preparation. They'll be taped up and looked after. Other things we've changed, our main ballroom, which is more used to seeing weddings and conferences, has become their locker room. So again, a pretty big transformation.
PINTO: Both hotels also have to cater for the players' dietary needs.
DAVID COUTTS, GROVE HOTEL SOUS CHEF: I've got about 500 or 600 kilos of beef rib coming in. We've got 400 kilos of whole chicken birds coming through. Burgers, I reckon we're going to get through about 600 a day possibly, potentially. We've ordered that. So, we've got enough no matter what.
PINTO (on camera): The English countryside hasn't seen many days like this. Helmets, pads, and of course the pig skin aren't very common around these parts. However, the NFL has pulled out all the stops to make sure these players feel right at home.
DREW BREES, NEW ORLEANS QUARTERBACK: I think this setup is great. You know, our rooms, the accommodations are great. I mean, we've only had one meal but the food seems fine. Just the way we have everything set up. Weight room and everything else. I think the thing that we need to do the fastest is just get back in a routine. You know, just like we would at home.
SEAN PAYTON, NEW ORLEANS COACH: I think our people had done a great job in putting this trip together. So I think we're all excited. I know the players are excited. All of us certainly are honored to represent the league and come over here and play and we look forward to it.
NORV TURNER, SAN DIEGO COACH: I think the experience these guys are having this week and I think the game and everything. The guys will look back and feel glad they did it.
PINTO (voice-over): Jet lag was quoted as the main problem for most players and coaches making this trip. But they're still happy to be here. Especially when they get a chance to visit some historic locations for the first time in their lives.
SEDRIC ELLIS, NEW ORLEANS LINEMAN: This is my first time overseas, you know, out of the states. So, it's been a great experience. You know, went downtown and checked out some of the stuff. We're going to go check out some castles and stuff like that, that we don't have in the states. You know, stuff like that. So, it's very cultured and it's good to look at some of the stuff and you know, see where everything originated and where we came from and stuff like that. So, it's really cool.
PINTO: But, of course, this is a business trip. And they're all focused to make an impact at Wembley, where 84,000 people will watch them on Sunday.
Pedro Pinto, CNN, London.
(END VIDEOTAPE)
COLLINS: Sounds like fun.
I'm Heidi Collins. Join me again tomorrow, actually Monday morning, 9:00 a.m. Eastern. Have a great weekend, everybody.
CNN NEWSROOM continues with Tony Harris.
