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$50 Billion Bailout for Struggling Homeowners; Overseas Markets: Stocks Rally Across Asia; School Kids' Thoughts on the Election

Aired October 30, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: Well, it is all about the money. The banks and the lenders are getting theirs. Now a senior administration official says the government is planning a $50 billion bailout for struggling homeowners. Some three million risk foreclosure. Home values are down, equity drying up.
(BEGIN VIDEO CLIP)

MIA FLECK, RENO HOMEOWNER: And we have, you know, no means if we needed it to help ourselves out by pulling money off of our house anymore. We can't do anything. We're pretty much stuck here, waiting it out.

(END VIDEO CLIP)

HARRIS: So can this woman get some help here?

Our Personal Finance Editor Gerri Willis joins us now.

And Gerri, what are you learning about this proposed mortgage bailout plan?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, let's talk first, Tony. about what's on the table right now. You know, you say $50 billion would be spent here. What would it do? It would guarantee up to $500 billion in homeowner loans.

And you remember these loans. These are the toxic loans that we talk so much about...

HARRIS: That's right.

WILLIS: ... that have been such a problem, big adjustable rate resets, all kinds of terms, big fees. This could help up to three million struggling homeowners. That's the idea and what is on the table, but it is far from a done deal.

If we were to get this, here is how it would fit in with the programs that have already been on the table, that are already out there, already functioning. Hope Now, you may remember, had an 800 phone line you can call, have a workout plan, get together with your lender, try to fix your loan. FHA Secure was really an extension and expansion of existing government programs. They've already done 400,000 loan modifications. They started in 2007.

And in the summer we had something passed called Hope for Homeowners.

HARRIS: Yes. Yes.

WILLIS: Now, this program really hasn't gotten far enough along to grade yet, but they had some $300 billion in money to help people write down the value of their loan, that's what the banks would do, and then get a new loan that they could actually afford.

Now, the problem with all these plans is that it really relied on the good will of lenders. Lenders had to voluntarily get involved. And they were reluctant to do that in many cases, many instances, because they're having problems themselves, A, and B, they don't really know the value of real estate out there. It's a big question mark.

So, some lenders have been really reluctant to participate. Now, I don't want to get a bunch of e-mails. Some have, yes. But I know there are big critics of these plans who say that more needs to be done.

You know, Tony, we've got some 7.3 million Americans who are expected to go into default this year. And into 2010, 4.3 million of them could lose their homes. So it's important that something gets done. But I also want to tell you about the administration response to the reporting that we and other news outlets have been doing this morning.

They are saying this is not a done deal. I want to tell you that this program has really been -- well, let me read this for you.

"We've been reviewing a number of housing proposals," says the White House, "for some time and no decisions have been made on any of them. Any inference we're nearing a final decision on one of them is simply wrong. The administration, including HUD, will continue to work and analysis on the various proposals."

That from a White House spokesman.

As I was saying, though, there is some expectation there could be another program coming on line now. You know how the administration has been criticized for bailing out institutions, Wall Street and not Main Street.

HARRIS: Absolutely.

WILLIS: And there is big pressure to do just the opposite now. As a matter of fact, one very well-known economist today testifying in front of Congress said if you don't have some kind of economic stimulus plan that targets individuals, some kind of thing that goes to the homeowner, you're really at risk of having wasted all the dollars that we've already put into the economy. Now the $700 billion bailout...

HARRIS: Yes.

WILLIS: ... $300 billion from -- all of that could be meaningless if we don't help the homeowner.

HARRIS: "Where is my bailout?" How often have you heard that in e-mails? "Where is my bailout?"

WILLIS: I know. And, you know, let me tell you, I've read those e-mails.

HARRIS: Yes, you have.

WILLIS: People do not want to see this. They're very critical of this. They don't want to see their taxpayer dollars wasted here.

HARRIS: That's right.

WILLIS: And you can feel their pain. I have to tell you, you know, some of this bank money is actually going to bail out shareholders. That's going to be another, you know, political debate.

HARRIS: And some of the bank money is being used to consolidate banking interest in this environment as well.

So there's so -- Gerri, terrific. Thank you.

WILLIS: My pleasure.

HARRIS: And keep us posted on how these plans work themselves out here.

WILLIS: We'll follow up.

HARRIS: OK. Thanks, Gerri.

WILLIS: Thank you.

HARRIS: The mortgage bailout can't come fast enough. Today we got a new report showing economic activity shrank in the last quarter.

(BUSINESS REPORT)

HARRIS: And overseas markets finishing on a high note. Asian stocks posting substantial gains.

Our Andrew Stevens is in Hong Kong watching the markets.

(BEGIN VIDEOTAPE)

ANDREW STEVENS, CNN CORRESPONDENT: Well, Tony, these are extraordinary times. And it was another extraordinary day for investors here in Asia. And for a change, it was for all the right reasons.

After a miserable Monday, stocks across the key markets bounced. Japan wiping out the losses of the previous day with a more than 6 percent rise, led by, amazingly, the auto sector. After weeks of being pummeled by investors and the soaring Japanese currency, companies like Honda and Toyota were the flavor of the day as investors decided that they'd been oversold.

Hong Kong, though, was the standout. On Monday, it was nearly 13 percent down. Today it was more than 14 percent up.

Incredible volatility, even in a market which is not unfamiliar with wild swings. The reason? Like Japan, maybe, just maybe, the market has been oversold.

But before anyone gets too excited about this, it's going to take a long time for investors to regain their confidence in the stock markets. We've been here before, after all. A power rally only to be replaced in the days or weeks ahead by another round of selling.

We still don't know just how big an impact the credit crunch is going to have on the global economy. So no one is looking for the start of a trend or a rally here. But at least it's a step in the right direction.

Tony, back to you.

(END VIDEOTAPE)

HARRIS: Andrew, appreciate it. Thank you.

You got any ExxonMobil stock? The company -- listen to this -- set a quarterly profit record for an American company. Its third quarter net profit, drum roll please, $14.8 billion.

That beats street estimates of $12.2 billion. Exxon's previous record profit was $11.6 billion in this year's second quarter.

What a year for ExxonMobil.

As the most serious credit crisis in decades rocks your finances, CNNMoney.com has some advice and answers. Check out our special report, "America's Money Crisis." That's at CNNMoney.com.

Ten issues, 10 days. Countdown to the presidential election.

So far this week we've looked at the candidates' stands on the economy, taxes, energy, health care and education. Today we turn to housing. Here are some of the contrasting plans.

Barack Obama proposes a $10 billion foreclosure prevention fund. John McCain wants to spend $300 billion to buy bad mortgage loans from banks and homeowners.

Under the Obama plan, troubled homeowners could refinance with loans insured by the Federal Housing Administration. McCain's home plan converts bad mortgage loans into low interest loans insured by the Federal Housing Administration.

Different states use different ballots. That could mean a lot of different glitches. Make sure your vote is counted.

(COMMERCIAL BREAK) HARRIS: You know, you can't vote if you're not 18 yet, but that doesn't mean you can't have your say.

Our Veronica De La Cruz spent the day with some New York middle- schoolers with camera in hand, and boy did she get an earful.

Veronica joins us now with some of that discussion.

And Veronica, take that doggone camera with you everywhere. We'll brand it VDLC TV. We'll try that. How did it go with the kids? Did you like it?

VERONICA DE LA CRUZ, CNN CORRESPONDENT: I like that. "VDLC TV," can we trademark that?

HARRIS: 24/7. Sure we can.

DE LA CRUZ: Can we brand that?

HARRIS: Sure we can.

DE LA CRUZ: VDLC TV, I like that.

HARRIS: Yes.

DE LA CRUZ: Well, are you ready for some VDLC TV?

HARRIS: Let's hear it. How did it go with the kids?

DE LA CRUZ: It was wonderful. I was really impressed with them.

You know, I showed up at the school. The kids only wanted to talk about politics because, Tony, apparently they're going to be holding a mock election all day long today. So, of course they're interested in keeping the political discourse going.

(BEGIN VIDEOTAPE)

DE LA CRUZ: What issues matter to you guys in this election? What do you think is the most important issue?

UNIDENTIFIED FEMALE: I think education and the cost of education. Like, I don't think it should cost, like, thousands of dollars to go to college.

UNIDENTIFIED MALE: What about when we're older and some kids can't pay for college, and scholarships we need but we can't get them anymore?

DE LA CRUZ: How important do you guys think race is in this election?

UNIDENTIFIED MALE: When people come around to the polls and they say, "Oh, well, I'm voting for Obama," I think they're just saying that to avoid racial criticism. But when they're in the voting booth, there's no one else with them, they can, like, do whatever they want. DE LA CRUZ: The Bradley effect.

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: I don't think Obama is the right person.

DE LA CRUZ: Why do you think that?

UNIDENTIFIED MALE: Well, like, Chicago is still really full of crime. And if he can't handle that, how is he supposed to handle all of America's crime?

UNIDENTIFIED MALE: I feel like if John McCain wins and the Iraq war comes on -- goes on, who do you think is going to get drafted?

(END VIDEOTAPE)

DE LA CRUZ: So, as you can see, Tony, the kids definitely had a lot on their minds.

HARRIS: Yes.

DE LA CRUZ: Lots of different issues.

I was really impressed with them. They were talking about race. They wanted to talk about the war. They wanted to talk about education.

And speaking of education, I was actually able to talk to their teacher for a while about his thoughts on education. Tony, really, unfortunately, he said that his school had lost funding numerous times in this past year alone. And so he wanted to talk about the issues, a couple issues that he really feels need to be addressed.

He feels the economical and social issues of why parents aren't more accountable need to be addressed. He said it does start with the parents. He said that he'd like to see traditional curriculum in inner city public education go away, that he's tired of it.

Instead, Tony, he said he'd really like to build programs, programs that would incorporate social and emotional components in the core curriculum. And he said that he just wants to do away with standardized testing.

Most importantly, you know, one of the reasons I went to visit the school was to go talk about what it was like for me growing up Asian-American.

HARRIS: Yes.

DE LA CRUZ: And he said he really feels the students need more role models. He wants to make sure there's more of an investment in inner city schools across America.

So, Tony, you know, we've been taking this to the Web, we've been taking this to our Facebook group. HARRIS: All right now.

DE LA CRUZ: The emphasis is on "our".

HARRIS: The emphasis is on Veronica.

DE LA CRUZ: Well, no, no, no. There's a picture there in the corner. And you can't see me, but you can see Tony. It's the two of us there.

And here is what people are talking about on the group right now. They're talking about education.

Braden Murray from the University of New Brunswick has this to say: He says, "To base the majority of school funding on local property taxes curses the children of the poor to a lousy education."

And, Tony, "By extension, fewer opportunities to be successful in their work life. Your opportunity in life should be based on your smarts and work ethic, not on how much money your parents make."

HARRIS: Nice. Yes, nice.

DE LA CRUZ: And then this one from Nick Carroll in Tampa, Florida. He had this to add. He said, "Teachers don't make nearly enough."

HARRIS: There you go.

DE LA CRUZ: "It is almost as if they're doing charity. No Child Left Behind has left America's children learning to take a test and not really learning. Why does government not realize that drastic changes need to be made to offer our country a tomorrow?"

HARRIS: Well, I won't get into the policy aspects of that, but that's a heck of a sentiment that the teachers should be earning more money.

DE LA CRUZ: It is.

HARRIS: I don't think anyone would disagree with that.

DE LA CRUZ: And so we're going to continue the discussion on education. We're also talking about the housing crisis.

Please log on to Facebook, search for Veronica De La Cruz and Tony Harris in the CNN NEWSROOM.

HARRIS: Nice.

DE LA CRUZ: And add your comments. We're going to be talking about them in the noon Eastern hour -- Tony.

HARRIS: Good stuff, Veronica. Appreciate it. Thank you.

Now to a pretty personal story here. A 16-year-old from Brooklyn forced to make some tough choices when it comes to her college education after her mom lost her job with Citigroup. I asked Mia Sarah Abedullah how she was adjusting to the idea of not attending the school of her dreams.

(BEGIN VIDEOTAPE)

MIA SARAH ABEDULLAH, HIGH SCHOOL JUNIOR: At first I was really upset about it. You know, it was my dream since I was about 11. But I'm starting to realize, hey, it might be just a name. Is NYU truly better than a normal state school, like SUNY? I don't think there's much of a difference besides the name, the colors. I'm kind of...

HARRIS: Mia Sarah, you're rationalizing, aren't you, right now, because this is your dream school for a reason? And NYU is not like any other school.

ABEDULLAH: I know.

HARRIS: And you really are rationalizing a little bit here, just trying to put the best face on a difficult situation. Isn't that the truth?

ABEDULLAH: Yes. I really am trying.

HARRIS: Well, Mia Sarah, the reality is you're going to have to do what generations before you have done, is, in all likelihood, you are going to have to work your way through college. And we shouldn't pull out the fiddles and the violins for you. You're ready to do this. And you're not asking for anyone to feel sorry for you at this point, correct?

ABEDULLAH: Definitely not. I'm a very strong girl. I've been through way tougher things than this.

I can definitely work my way through college. I wasn't saying that I couldn't do that. I was just trying to let the public know that, hey, you know, when you are exploring colleges, make sure you look at tuition costs.

HARRIS: Well, let me ask you this. I have to ask you about your mom. And I know she's close by, but that she didn't want to be on camera. But she lost her job after, what is it, 21 years at Citigroup?

ABEDULLAH: Twenty-one years, yes.

HARRIS: I'm curious as to how she's dealing with it and if, at all, she feels as though -- in any way she's let you and your sisters down?

ABEDULLAH: I don't think she sees it as letting us down. She's a very positive person. And if anything, she sees this more as a step forward.

She wants to enroll in community college and take a new direction of her life. She's very excited about it. (END VIDEOTAPE)

HARRIS: That probably a discussion going on right now in a lot of households around the country.

As for Mia Sarah, she plans to study, yes, you probably guessed it, journalism.

You've heard the phrase, maybe used it yourself, "media bias." See what a new study shows. That's coming up next for you in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Democratic presidential candidate Barack Obama is spending a second day in the battleground state of Florida. At this hour, he is speaking to supporters in Sarasota.

Let's have a listen.

(JOINED IN PROGRESS)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: ... that put greed and responsibility of Wall Street before the hard work and sacrifice of folks on Main Street.

In five days you can choose policies that invest in our middle class and create new jobs and grow this economy so that everybody has a chance to succeed, not just the CEO, but the secretary and the janitor. Not just the owner of the factory, but the men and women on the factory floor.

In five days you can put an end to the politics that would divide a nation just to win an election, that tries to pit region against region and city against town and Republican against Democrat, that asks us to fear at a time when what we really need is hope.

In five days, at this defining moment in history, you can give this country the change we need.

You can do it, Sarasota. You can do it, Florida. We can decide it right here in five days's time.

AUDIENCE: Yes, we can! Yes, we can! Yes, we can! Yes, we can!

OBAMA: We began this journey in the depths of winter. You wouldn't know much about it, but it was really cold nearly two years ago on the steps of the old state capitol in Springfield, Illinois. And back then we didn't have much money and we didn't have many endorsements. The polls and the pundits didn't give us much of a chance.

We knew how steep the climb would be. But I also knew this, I knew that the size of our challenges had outgrown the smallness of our politics. I believed that Democrats and Republicans and Americans of every political stripe were hungry for new ideas and new leadership, a new kind of politics, one that favors common sense over ideology. One that focuses on those values and ideals we hold in common as Americans.

And most of all, I knew the American people were decent and generous and hard working, willing to sacrifice for future generations. And I was convinced that when we come together, when we come together like we're together here today, our voices are more powerful than the most entrenched lobbyists, the most vicious political attacks, the full force of the status quo in Washington that want to keep things just the way they are.

(APPLAUSE)

Those were my convictions, Sarasota, and 21 months later, my faith in the American people has been vindicated. That's how we've come so far, how we've come so close, because of you. That's how we'll change this country, with your help.

(APPLAUSE)

And Sarasota, that's why we can't afford to slow down or sit back or let up for one day, for one minute, for one second in this last week. Not now. Not now.

We've got to keep going. We've got to work hard these last five days.

We're in the middle of the worst economic crisis since the Great Depression -- 760,000 workers have lost their jobs just since the beginning of this year.

UNIDENTIFIED MALE: What are we going to do?

OBAMA: I'm going to tell you what we're going to do.

(APPLAUSE)

Businesses and family can't get credit. Home values are plummeting here in Florida. You know what's happening in terms of foreclosures. Pensions are disappearing. It's gotten harder and harder to make the mortgage or fill up your gas tank, or even keep electricity on at the end of the month.

Just today we learned that the gross domestic product, a key indicator economists use to measure the health of our economy, has actually fallen for the first time this year. That means we're producing less, we're selling less. Our economy is actually shrinking.

Florida is in its first recession in 16 years. Across the country we saw the largest decline in consumer spending in 28 years, as wages fail to keep up with the rising cost of living and folks have to watch every penny, tighten their belts. Now, all this didn't happen by accident. Our failing GDP is a direct result of a failed economic theory of eight years of trickle- down, Wall-Street-first, Main-Street-last policies that have driven our economy into a ditch.

(APPLAUSE)

And the central question in this election is, what will our next president do differently? How will the next president take us in a different direction?

Now, Florida, if you want to know where John McCain will drive this economy -- you don't need to "Boo," you just need to vote.

(APPLAUSE)

If you want to know where John McCain will drive this economy, just look in the rearview mirror, because when it comes to our economic policies, John McCain has been right next to George Bush. He's been sitting there in the passenger seat ready to take over every step of the way.

Voting for the Bush tax cuts for the wealthy that he once said he opposed, voting for the Bush budgets that sent us reeling into huge deficits and huge debt. Calling for less and less regulation. Twenty-one times just this year John McCain has said we need to deregulate the financial industry, right at a time when we know that it's because of deregulation that Wall Street was able to engage in the kind of irresponsible actions that have caused this financial crisis. In fact, after 21 month and three debates, John McCain has still not been able to tell the American people a single major thing that he would do differently from George Bush when it comes to the economy.

Think about it. Think about it. You know his attacks on me, but you have no idea how he would do anything differently from George Bush, because he doesn't have any ideas that are different from George Bush when it comes to the economy.

(APPLAUSE)

So you've got to ask yourself, after nine straight months of job losses, the largest drop in home values on record, wages lower than they've been in a decade, why would we keep driving down this dead-end street? Folks who can't pay their medical bills or send their kids to college or save for retirement, they can't afford to take a back seat to the CEOs and Wall Street banks for another four more years.

At a moment like this, the last thing we can afford is four more years of the tired, old economic theories that says we should give more and more to billionaires and corporations and hope that prosperity trickles down on everybody else. The last thing we can afford is four more years where no one in Washington is paying attention to what's going on on Wall Street and lobbyists kill common- sense regulations. Those are the theories that got us into this mess. They haven't worked. It is time to change drivers. It is time to have somebody else at the wheel. That's why I'm running for president of the United States of America.

(APPLAUSE)

CROWD: Obama! Obama! Obama!

OBAMA: Look, the biggest gamble that we can take is embracing the same old Bush/McCain policies that have failed us. It's not change when John McCain wants to give a $700,000 tax cut to the average Fortune 500 CEO. That's not change.

It's not change when he wants to give $200 billion to the biggest corporations, or $4 billion to oil companies or $300 billion to the same Wall Street banks that got us into this mess. It's not change when he comes up with a tax plan that doesn't give a penny of tax relief to more than 100 million middle class Americans. Or when he says that we can't give help to young people to go to college because we don't have the money to give to interest groups. That's what his campaign called young people needing to go to college -- interest groups. I don't think they're an interest group. I think they're our future.

(APPLAUSE)

The average working family is $2,000 poorer now than when George Bush took office. Now, when Bill Clinton was president -- Bill was with us last night.

(APPLAUSE)

Bill and I were in Orlando, last night. When Bill Clinton was president, the average wage and income went up $7,500. So I've got an economic plan that's similar to Bill Clinton's. John McCain's got an economic plan that's similar to George Bush's. So, all you have to do is just look and see what works and what doesn't. This is not complicated. We've done the experiment. You've got eight years of Bush economics, eight years of Clinton economics. It's pretty straight forward.

We've tried it John McCain's way. We've tried it George Bush's way. It hasn't worked. And deep down John McCain knows that, which is why his campaign said that if we keep on talking about the economy, we're going to lose. And that's why Joe Biden and I, we're talking about the economy a lot.

(APPLAUSE)

Because you deserve to hear what we plan to do. That's not what John McCain wants to talk about. See, he's spending these last -- he's spent these last weeks talking about me. Calling me every name in the book. You know, but that's how they play the game in Washington. If you don't have a record to run on, then you paint your opponent as somebody people should be afraid of. You make big elections about small things.

Well Florida, we are here to say not this time, not this year, not with so much at stake. John McCain might be worried about losing an election. I'm worried about you losing your job and losing your house and losing your health care, losing your pension.

(APPLAUSE)

I can take one more week of John McCain's attacks, but this country can't take four more years of the same failed policies.

(APPLAUSE)

See, we need something new. We need something new. The question in this election is not are you better off than you were four years ago. We know the answer to that. The real question is, will this country be better off four years from now? I know these are difficult times for America. But, I also know that we've faced difficult times before.

The American story's never been about things coming easy. It's been about rising to the moment when the moment was hard. It's about rejecting fear and division for unity of purpose. That's how we overcame war and depression, how we won the great struggles for civil rights and women's rights and workers' rights. That's how we'll emerge from this crisis stronger and more prosperous than we were before as one nation and one people. We just need a new direction. We need a new politics and we need a new president.

(APPLAUSE)

CROWD: Obama! Obama! Obama!

OBAMA: Sarasota, if we want to get through this crisis, we've got to get beyond the old ideological debates. We don't need a bigger government or a smaller government. We need a better government, a smarter government, a more confident government, a government that upholds the values we hold in common, as Americans.

We don't have to choose between letting our financial system run wild and stifling growth and innovation. As president I'll ensure that the financial rescue plan that Congress passed helps stop foreclosures here in Florida. That we protect taxpayer money instead of enriching CEOs. I want to put common sense regulation back in place, regulations I've been calling for throughout this campaign, so that Wall Street can never cause a crisis like this again. That's the kind of change we'll need.

(APPLAUSE)

The choice in this election isn't between tax cuts and no tax cuts. It's about whether you believe we should only reward wealth or whether we should also reward work and the workers who create wealth. Now, there's been a lot of misinformation about my tax policy. So, let's just -- let's spell it out.

I will give a tax break to 95 percent of Americans who work every day and get taxes taken out of their paycheck every week.

(APPLAUSE) I'll eliminate -- I will eliminate income taxes on Social Security for seniors making under $50,000. We're going to give homeowners and working parents additional tax breaks. And I'll help pay for this by asking folks who are making more than a quarter million dollars a year to go back to the tax rate they were paying in the 1990s, before the Bush tax cuts. Now, let me point out -- let me point out that rich folks were doing fine in the '90s. They were still rich. Let me see a show of hands. How many people make less than a quarter million dollars a year? Raise your hands. All right. That would appear to be the majority of you.

Now, no matter what Senator McCain may claim, here are the facts. If you make under $250,000, you will not see your taxes increase by a single dime. Not your income tax, not your payroll tax, not your capital gains tax, no tax. The last thing we should do in this economy is raise taxes on the middle class. But that's the last thing we should do. So, don't be confused by these ads. 98 percent of small businesses make less than a quarter million dollars a year. And 99.9 percent of plumbers make less than a quarter million dollars a year.

(APPLAUSE)

And by the way, the reason that we want to do this -- change our tax code -- is not because I have anything against the rich. I love rich people. I want all of you to be rich. Go forth. That's the American Dream. That's the American way. That's terrific.

The point is, though, that -- and it's not just charity. It's not just that I want to help the middle class and working people who are trying to get into the middle class. It's that when we actually make sure that everybody's got a shot. When young people can all go to college, when everybody's got decent health care, when everybody's got a little more money at the end of the month, then guess what? Everybody starts spending that money. They decide maybe I can afford a new car, maybe I can afford a computer for my child. They can buy the products and services that businesses are selling and everybody is better off. All votes rise. That's what happened in the 1990s. That's what we need to restore. And that's what I'm going to do as president of the United States of America.

(APPLAUSE)

HARRIS: Barack Obama in Sarasota, Florida. Boy, on the heels of a half-hour infomercial in primetime last night for his campaign. And the huge Florida event last night with former President Bill Clinton, Barack Obama, with another huge event today at the Ed Smith Stadium in Sarasota.

We are going to take a quick break. But, if you'd like to keep watching this campaign speech, just go to CNN.com/live.

(COMMERCIAL BREAK)

HARRIS: Countdown to the election is just five days to go. Can you believe it? New poll numbers out this morning. They show John McCain leading on his home turf, but trailing in some other key states. Senior political analyst Bill Schneider, live from New York with the numbers.

And Bill, good to see you. What are the latest numbers telling us about the state of this race?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, they're telling us that Barack Obama is making progress here. Let me put it this way. Right now he is doing well in all the states that John Kerry carried in 2004. And to win he needs another 18 electoral votes.

Now, we polled five states with polls just out today. Four of those states went to Bush last time. Here's Nevada. That was a Bush state. It only has five electoral votes. But, as you can see, Obama is leading by seven. So, that would put him -- give him five of the 18 more that he needs if he carries Nevada. And we have moved Nevada into the leaning Obama column. So, that's a state that could go for Obama and push him a third of the way to what he needs to win.

North Carolina -- this he would dearly love to win. He's ahead there by six points. His lead there, too, has been growing. That's 15 electorate votes. Between that and Nevada, he's the new president of the United States if he carries both of them.

One of the hardest-fought states is Ohio. Now, that has 20 electoral votes. All Obama would need to do is carry Ohio, keep the Kerry states. He is elected. Obama is just four points ahead in Ohio. We haven't seen a lot of movement there. It remains one of the most tightly and hard fought contests in the country.

Pennsylvania is a different story. That was a Kerry state, it's a blue state. McCain is hoping he can take it out of that column carry it for the Republicans. But, right now his prospects, as you can see, don't look too good. He's fallen behind now by 12 points. But, he is plugging away. He and Sarah Palin are not giving up on Pennsylvania.

And finally, one surprise. Could Arizona be lost to its own state senator?

HARRIS: Are you kidding me?

SCHNEIDER: Well, no. And as you can see, look at that. McCain is ahead by seven. He is winning his home state. But, there have been some polls -- not this one -- but some polls in Arizona, that show the race getting very close. And the McCain campaign is now running some of their robocalls in the home state of Arizona. Which means somebody is worried about Arizona, which has an awful lot of Latino voters who have been not particularly loyal to John McCain.

HARRIS: And we are quick to remind everyone, there are still five days left in this cycle.

Bill, good to see you, as always. Thank you, sir.

SCHNEIDER: Sure.

HARRIS: And check out our political ticker for all the latest campaign news. Just log-on to CNNpolitics.com, your source for all things political.

You know, a lot of love in the City of Brotherly Love today. Why don't we just take a quick trip to CNN.com's iReport desk. Why don't we check in with one of the guys who really is running things down there. I shouldn't say that out loud. That is Tyson Wheately; Tyson's Corner.

And if we're talking about the City of Brotherly Love, we have to at least on this day, Tyson, be talking about those Phillies.

TYSON WHEATLEY, PRODUCER, CNN.COM: Yes, we've got to, right, Tony?

HARRIS: Yes, yes.

WHEATLEY: I mean, it's been all politics it seems, all week long. But, you know, something else we want to show off. IReports for all sorts of news, especially when it happens right outside your door. In this case, right outside someone's work.

Let's go ahead and take a look of these photos that we got. Of course, last night, Philadelphia Phillies beat the Tampa Bay Rays.

HARRIS: Yes. You were about to say Tampa Bay Devil Rays, weren't you? No, Tampa Bay Rays. It takes a while, doesn't it?

WHEATLEY: These photos come from Rachel Cerrotti. And you know, it's interesting, she's a Temple University student. She wasn't at the game, but was working late. And she works at a restaurant next to City Hall. Her shift ends and the streets flood with Phillies fans. Obviously excited, very crowded. She says, you couldn't drive. Says, the party went on right up until bedtime. Honking horns, people screaming. She says, people were lighting off fireworks.

Now Tony, I think Rachel deserves an A plus because --

HARRIS: Absolutely.

WHEATLEY: We understand that she actually made it to class today where about half her classmates didn't make it. So, nice job, Rachel.

HARRIS: Wow. That is a good job.

How about the Phillies? I guess it's the first time in, boy, since 1980, that the Phillies -- I hope I'm correct on that.

WHEATLEY: Yes, I think you're right.

HARRIS: Great. And I know you've got a pretty obsessed guy with the election cycle. Show us this iReport, Tyson.

WHEATLEY: OK. Yes. So, this is a different kind of fan, someone who's obsessed -- I should say, for the last couple days, we've been asking our iReporters to tell us -- people who are obsessed with the election, we've been asking people to make videos and tell us about it.

This is one of our favorites. This comes from Ralph Nester. He's a small business owner from Roanoke, Virginia. Let's go ahead and listen to what he has to say about his election obsession.

(BEGIN VIDEO CLIP)

RALPH NESTER, IREPORTER: Am I obsessed with this election? Yes. Pretty much. All I do is work all day and while I'm working I think about nothing but getting home and getting to my and logging in and blogging, telling everybody my opinion.

And that's something I've never done before. I basically shucked every chore I've got here around the house. A tree fell on the house back during the summer time and kind of got half the gutter back there. And I still haven't fixed that. My wife's on me about that. She came in tonight asking me stuff about the alarm company, did I call these people and those people. I just shake my head, yes. And she says, you're not even paying attention to me.

(END VIDEO CLIP)

WHEATLEY: OK. So, there you go, Tony. Great example of someone who's obsessed with the election, sharing their thoughts on iReport.com. We love Ralph because after work he gets on his laptop and he goes to iReport.com and shares his opinion.

HARRIS: Could you imagine his honey do list at this point? I don't want to think about it.

All right, Tyson. Good to see you. Thank you, sir.

WHEATLEY: Take care, Tony.

HARRIS: All right. Change. We're not talking coins, but campaign slogans. Some local Republicans hooking on to national Democrats. We're back in a moment.

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(WEATHER REPORT)

HARRIS: Fall back, and enjoy an extra hour of sleep Saturday morning, and don't forget to turn the clock back. Daylight saving time -- not savings -- saving time, ends at 2:00 a.m. in most places on Sunday. Congress changed the date for this year to change, coming a week later than years past.

Barack Obama and John McCain could have a big impact on the many other candidates listed beneath them on the ballot. In Washington state, Chris Lawrence found two candidates for governor, both battling to identify with Obama's message of change.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): A sign flashes on Interstate 5 outside Seattle, urging Barack Obama voters to support a local candidate. It wouldn't be a big deal, until you realize, Dino Rossi is -- Republican.

DINO ROSSI (D), GUBERNATORIAL CANDIDATE: I'm running against the defenders of the status quo.

LAWRENCE: And how about this? From the former head of Washington's Republican Party.

CHRIS VANCE, REPUBLICAN STRATEGIST: This state is ready for change.

LAWRENCE: Sound like a certain senator from Illinois? Washington hasn't had a Republican governor since Reagan was president. Now, that sign was put up by separate group. But Rossi's own campaign is full of references to veterans, police groups, even Dinocrats. Everything but John McCain.

GOV. CHRIS GREGOIRE (D), WASHINGTON: Well, this is a guy who's refused to identify he's a Republican. He's tried to hide from the Republican Party and George Bush all the way along.

LAWRENCE: Democratic governor Chris Gregoire, says Rossi uses the abbreviation GOP instead of Republican. Contrast that to her headquarters where not a square foot fail to say highlight the goodwill and party ties between these fellow Democrats.

GREGOIRE: There is nothing we can't achieve working together.

LAWRENCE: The Republican Rossi is banking on voter' frustration.

JESSICA BURNHAM, VOTING OBAMA & ROSSI: I don't like the way things are now.

LAWRENCE: Jessica Burnham says she's voting Obama/Rossi. She's a first-time voter who's really not loyal to any party.

BURNHAM: You're voting for who you think's going to make a difference. And those are the people that are. Period.

LAWRENCE: Polls show Obama ahead in Washington. Republican strategists say Rossi can win if McCain only loses the state by, say, seven points. If it's a landslide, Rossi's got no chance.

VANCE: It is hard to run against the top of your ticket. It is hard to get tens of thousands, hundreds of thousands of people to go Democrat, Democrat, Republican.

LAWRENCE (on camera): And there's no telling whether or not voters looking for change in one Washington, will be as excited about change here in the other.

Chris Lawrence, CNN, Seattle. (END VIDEOTAPE)

HARRIS: Just another quick reminder here. We want to hear from you if you're running into problems at the polls. Call the CNN Voter Hotline. There's the number's at the bottom of the screen there and help us track the problems. And we are report the trouble in real time here. 1-877-462-6608, is the number. We're keeping them honest all the way through the election and beyond. More of CNN NEWSROOM just ahead.

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