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Battleground Blitz in Final Lap of Presidential Race; International View of U.S. Election; War Deaths: Fewer U.S. Troops Killed in Iraq; Obama Speaks in Des Moines
Aired October 31, 2008 - 11:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Hello again, everyone. I'm Tony Harris. And here are the headlines from CNN for Friday, October 31st.
Halloween, the final four days of the long race for the White House. The candidates, the issues, what they're saying today to get your vote, we've got it all laid out for you.
Baghdad, once one of the most dangerous places on earth for American troops. Still dangerous, but military leaders are talking about what hasn't happened there this month. We are taking you live to Baghdad.
And the billionaire and one of Obama's advisers. Everyone wants to know what financier Warren Buffett would do to fix the economy. His biographer joining us this hour.
You're in the CNN NEWSROOM.
Doing the battleground blitz in the final lap of the presidential race. John McCain rallying in the must-win state of Ohio. He is on a roll, taking a two-day bus tour across that state.
Meanwhile, Barack Obama is back in the place that gave him his first win, Iowa. He is live this hour at a rally in Des Moines.
Kicking off this last weekend of the campaign trail, our Dana Bash with the McCain camp in Hanoverton, Ohio. Jessica Yellin standing by in Chicago. CNN's John Zarrella live in Florida. Plus, our Beck Anderson live in London, and our Suzanne Malveaux in Des Moines, Iowa.
Let's begin now with Suzanne, covering the Obama camp.
And Suzanne, how is the Obama campaign feeling going into this last weekend of the campaign?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Tony, they're feeling pretty strong, pretty confident, actually.
We're here in Iowa, as you mentioned. And this was a little known senator, where people were still mispronouncing his name. Barack Obama was here in Iowa, he was campaigning, getting to know people a year before the first contest, the Iowa caucuses.
And I've asked essentially why did they put their support in Barack Obama? Why behind this guy? And they say it's because they felt like they really got to know him. (BEGIN VIDEOTAPE)
MALVEAUX (voice-over): For Halloween in camp Obama, no Sarah Palin or "Joe the Plumber" costumes. Just a few pumpkins picked up at a patch in Florida.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I think you're going to have to wait for Charlie Brown to buy that pumpkin.
MALVEAUX: A jet set day for Barack Obama that began in Sarasota, Florida, where Republicans outnumber Democrats by 12 percent, but where more Democrats are going early to the polls. A chance for Obama to take this critical state that awarded George Bush the White House for eight years.
Obama continued to link Bush and McCain, blaming them for the economic crisis.
OBAMA: 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's seat ready to take over every step of the way.
MALVEAUX: A new TV ad is aimed at driving the point home.
NARRATOR: We can't afford more of the same.
MALVEAUX: Next stop, Virginia, where Obama believes he could become the first Democratic candidate in more than four decades to capture the state.
OBAMA: Virginia, that's what hope is. That thing inside us that, despite all evidence, insists there are better days ahead.
MALVEAUX: Then a late-night stop in Columbia, Missouri, another traditionally red state that he's forcing John McCain to spend money in and compete.
OBAMA: Hello Missouri!
MALVEAUX: Just over a week ago at a St. Louis, Missouri, rally, Obama drew a record 100,000-strong crowd. Today he starts off where it all began, Iowa, the state that launched his presidential bid and gave skeptical voters some hope that his candidacy was possible.
(END VIDEOTAPE)
MALVEAUX: And Tony, when we returned here in May, when Barack Obama clinched the Democratic nomination, I asked people, were their impressions different, did they change? They had some controversies over whether or not he was wearing a flag pin, some of the inflammatory remarks from his pastor. And not a scientific poll, but, Tony, many people just said no, they're impression have not changed at all. They thought that Obama had been a character in some eyes, but they feel like they really have gotten to know him, they've very comfortable with the support of him. Barack Obama essentially thanking them today -- Tony.
HARRIS: All right. Suzanne Malveaux from Des Moines, Iowa, for us.
Suzanne, appreciate it. Thank you.
Switching over now to John McCain's campaign. He is on a roll through the must-win state of Ohio for the second straight day. CNN's latest Poll of Polls shows McCain trailing Obama 44-49 percent, with 7 percent of likely voters in Ohio saying they're still unsure.
Our Dana Bash following the McCain campaign in Hanoverton, Ohio.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: As John McCain rolls through Ohio, particularly rural areas like Hanoverton, Ohio, you can hear him behind me. He is rallying the crowds by using the word "fight."
He is insisting this fight is not over, and he wants his supporters to get out and fight for him. That is crucial, according to McCain aides, to keep any sense of momentum, because that really is the name of the game right now. It's to convince people it is not over, particularly in states like Ohio, where it really does seem to be neck and neck.
Now, the other key thing for John McCain, according to his aides, is to convince undecided voters -- and there still are a lot of undecided voters, they say -- that Barack Obama is too risky, that he doesn't share the philosophy of voters, particularly in places like this, where there are rural voters. They may be Democrats, but they're conservative Democrats.
So you heard John McCain here say that Barack Obama is liberal, a word we haven't heard him use very much, but he used it a couple of times here. He even used the "S" word, "socialism," to describe Barack Obama. That is becoming more apparent that that is absolutely essential for John McCain, to show that there is a major philosophical divide between Obama and the voters here.
And people might be ready for change, they might want change. But he's trying to say, look, Barack Obama isn't the change you want.
Dana Bash, CNN, Hanoverton, Ohio.
(END VIDEOTAPE)
HARRIS: OK. We are coming into the homestretch, and our correspondents have the presidential race covered from the battleground states to the candidates' home turf.
Jessica Yellin live now from Chicago with a look at how the race is shaping up in Illinois.
And Jessica, the enthusiasm may be spilling over into a neighboring battleground state, I understand.
JESSICA YELLIN, CNN CORRESPONDENT: That is right. As you know, Illinois borders the state of Indiana, a longtime red state. It was thought after the primaries that Barack Obama would not be able to do well there because Senator Hillary Clinton won in the primary, and it is a conservative place. But Barack Obama -- well, it shares a media market with parts of it due with Chicago, and many of Barack Obama's campaign aides and some of his supporters here in Illinois are taking their case across the border and registering -- they have been registering folks in Indiana and now getting them out to vote early.
So Barack Obama is going from that rally you saw Suzanne at in Des Moines earlier today, and heading to Gary, Indiana, of all places. In the closing days, the Obama campaign feeling that they have a shot at Indiana.
Some other signs that the Barack Obama campaign is bullish, Tony, they are going up on the air with ads in Georgia, in North Dakota, and even in John McCain's home state of Arizona. These are all places you would never expect to see a Democrat advertising in the final days, but it's a sign of just how much money Barack Obama has and just how confident they're feeling at this date. And enormous enthusiasm, of course, in his home state of Illinois -- Tony.
HARRIS: All right, Jessica. Good to see you. Thank you.
You know, one of the biggest battleground states is Florida. CNN's new Poll of Polls from Florida shows Barack Obama leading John McCain by three points, 48-45 percent.
CNN's John Zarrella live now from Pompano Beach with the latest on the fight for Florida.
And John, boy, a couple of thoughts come to mind. Al Gore back in Florida?
JOHN ZARRELLA, CNN CORRESPONDENT: Yes, Tony, that's exactly right. And you're right, three to four points up.
Barack Obama feeling real good, feeling like they can actually win the state of Florida. So they're pouring all the heavyweights in. Al Gore one of them.
He will be here at Broward Community College for a rally in about two, two and a half hours from now. Right now he's in West Palm Beach, Tony, which, of course, we know the Democrats would call the scene of the crime in 2000, where, in fact, the butterfly ballot was, and the vice president, of course, losing by 537 votes here in Florida when all was said and done.
But again, going back to the fact they're bringing out all the heavyweights, Hillary Clinton will be in Miami tomorrow. Jimmy Buffett will be over in Tampa. I'd like to go to that one. And on Monday, Senator Obama will be back here in Florida in Jacksonville.
Of course, these here, Broward and Palm Beach County, heavily Democratic counties. So certainly they want to get out as many votes as they can here in the southeast corner of Florida -- Tony.
HARRIS: And John, the other thought that comes to my mind is early voting, and you've done a couple pieces on this. Early voting is really the story there in Florida, isn't it?
ZARRELLA: Yes. You know, a couple of things with early voting.
Huge, huge numbers -- 1.6 million early voting and absentee ballots as of yesterday morning. The number's certainly up today. Just outside, around the corner here, Tony, at the school campus here, a huge line of people waiting to vote.
Part of the problem is in Broward County, there's only about 17 places that you can early vote. In Miami-Dade, there's only 20 or 21 places you can early vote. So that's why we're having these enormously long lines.
Not enough polling places. Some problems with machines periodically. But overall, it's just a mass of people.
Election Day, we're going to have a lot more precincts open. So hopefully the lines won't be as long. But they have been just incredible -- two, three, four-hour waits -- Tony.
HARRIS: All right. John Zarrella for us, Pompano Beach, Florida.
John, good to see you. Thanks.
You know, the presidential race also getting a lot of international attention. So how is the race playing overseas? We get an opportunity now to visit with Becky Anderson, live from London.
Becky, good to see you.
What is the view of this presidential race in London and beyond?
BECKY ANDERSON, CNN INTERNATIONAL CORRESPONDENT: Well, it hasn't changed, Tony, since February, I've got to say. This is Obamaland outside of the U.S., not just here in London, but pretty much around the world.
If those who don't live in the states, those who aren't American, were able to vote in this presidential election, Obama would win by a landslide. And when I say a landslide, I'm talking a landslide in Canada, France, Britain, Poland, Japan, Mexico, the U.K., and in Belgium.
Newspapers from all of those countries ask people how they would vote. And as I say, by a landslide, most people who were voting in that poll said they would vote for Obama.
They also asked how the opinion of America has changed since the Bush administration, since the start of it. In France, 75 percent said that their view of the U.S. has gotten worse or much worse since President Bush came in. And in Canada, 77. In Switzerland some 86 percent. And in Japan, some 62 percent.
And even in China, let me tell you, Tony, even in China, where some 10 months ago Obama was absolutely vilified for his attacks on the hazards of Chinese toys -- he threatened at that point to ban the import of Chinese toys, he was denounced as irrational by many people in China -- well, 64 percent of people in China in a poll taken just two days ago said they would now vote for Obama and they like the idea he's a minority, and they talked about his triumph for the American dream.
So, like I say, we're not voting. Nobody here in London, nor, indeed, around the world are voting in these elections, but it's interesting to see how people might vote if indeed they were given the chance -- Tony.
HARRIS: Yes. Hey, Becky, you mentioned something interesting. You know stateside, we've seen some rather odd displays of support for the candidates this campaign season. How are people showing their support for the elections around the world?
ANDERSON: Well, we're quite reserved in the U.K., as you know. But let me show you what happened in Peru just 24 hours ago.
A group of tribal holy men in Peru, they can't vote in the U.S. election...
HARRIS: Oh man.
ANDERSON: ... but they've come down squarely on the side of Barack Obama. Just take a look at this.
HARRIS: Oh, man.
ANDERSON: Eleven shamans got together in Lima on Wednesday to yell and to scream and to shake, rattle. And they represent the country's witch doctors. And they say that they conjured up a vision of what will happen on Tuesday next week, and they saw Obama in their circle 9-2.
So, McCain gets two votes from those shamans in Peru, nine votes to Obama. So even right down there in Lima, it's Obamaland, I'm afraid.
HARRIS: I'm not sure the Obama campaign would be happy to see those pictures.
All right, Becky. It's great to see you. It is what it is.
And, of course, CNN has all the bases covered for your election night viewing. Boy, from the first vote to the last, we are bringing you results from all across the country. Stay with us throughout the election night for all of the results.
Hey, if you're looking for some encouraging news about the month of October, how about this? The death toll in Iraq is apparently way down.
(COMMERCIAL BREAK)
HARRIS: Police in Stockton Springs, Maine, are questioning a man accused of taking 11 students hostage at an elementary school this morning. Police say he held the students in a classroom for about a half an hour before letting them go. He was tackled in a hallway by a police officer. None of the children were hurt.
A less violent month for U.S. troops in Iraq. The Pentagon lists 13 combat and non-combat deaths for all of Iraq in October. That is the second lowest total since the war started.
Eleven died in July of this year. Fifteen U.S. troops were killed if combat in Afghanistan this month. A total of 4,189 U.S. troops have died in the Iraq war.
So, U.S. troop deaths in Iraq are down, way down this month. Is it a continuing trend or an aberration?
CNN's Phil Black is in the Iraqi capital.
Phil, good to see you.
What is working in Iraq right now, particularly in Baghdad, to reduce the violence?
PHIL BLACK, CNN INTERNATIONAL CORRESPONDENT: Well, Tony, first, let's break down these figures and put it in some context, first of all.
Thirteen, as you mentioned, U.S. soldiers killed here for the month of October. Six of those were combat deaths. Last month it was 25, with 8 combat deaths. A year ago, October 2007, 40 deaths. So you can see there is that continuing downward trend among those numbers.
The reasons? Well, it starts with the surge. And since then, various other things have fallen into place as well.
A cease-fire with the largest Shia militia here, the Mehdi Army, that is still holding. There is the Sons of Iraq program. These are former Sunni insurgents that have essentially switched sides. They've now teamed up with the Americans. They're actually on American or Iraqi payroll, and they're driving groups like al Qaeda out of their neighborhoods, in fairly aggressive neighborhood watchdog groups.
On top of that, there is the Iraqi army itself. Its capability is improving, it is taking on more responsibility all the time. Just in October itself, two more Iraqi provinces have been handed over to Iraqi security control. That is now 13 out of the 18 Iraqi provinces that are being policed by the Iraqis themselves -- Tony.
HARRIS: All right. Phil, since Baghdad is the focus of attention these days, I'd really like to know if overall violence is down in Baghdad.
BLACK: We do know there's some good news. Civilian deaths across the country are down, 278. That's the lowest number since the sectarian violence really kicked off here back in 2006. It's down from 359 last month.
How does that comparing in Baghdad? Well, we're not sure.
What the U.S. forces here tell us is that on average, there are four bombings in Baghdad a day. Still very much a daily occurrence. Roughly three of those target Iraqi citizens, police, or army. The fourth one targeting U.S. forces.
What we are seeing though, still regular attacks, but they're smaller bombs. So therefore, the casualties, the fatalities are lower. There are still many wounded, however.
Having said that, things do fell stable here. People are out and about living in the city. The streets are clogged with traffic again, and that sort of thing. Things have improved, but whenever the American forces here talk about the improvements, in Baghdad in particular, they stress that and they describe it as fragile, and they make the point that it is certainly reversible -- Tony.
HARRIS: OK. Phil Black in Baghdad for us.
Phil, good to see you. Thank you.
The death toll from a series of bomb blasts in India has climbed to 74. At least nine bombs were set off yesterday in the state of Assam. Police say nearly 370 people were wounded. The region's police superintendent said local insurgents and separatist organizations are being investigated.
Four days to go. We are counting them down and laying out the candidates' presidential plans. Ten issues in 10 days.
So far this week we've looked at their stands on the economy, taxes, energy, health care, education, housing. Today is homeland security. Here's where they stand on intelligence.
Barack Obama vowing to revise the Patriot Act, which John McCain voted for. The legislation gave law enforcement sweeping new surveillance and investigative powers after the 9/11 attacks.
McCain voted for the Foreign Intelligence Surveillance Act of 1978 known at FISA, but he did not attend a vote last July to update it. Barack Obama voted in favor of the FISA amendments. The law includes a controversial provision giving immunity toy telecom companies that help the government in its warrantless wiretapping program.
Both men agree the Guantanamo Bay prison needs to be closed.
Words of warning from the nation's top intelligence official. He says a new president's first year in office is the most vulnerable time for the country. Director of National Intelligence Mike McConnell points to the 1993 World Trade Center attack soon after Bill Clinton took office and the 9/11 attacks eight months after President Bush was sworn in. (BEGIN VIDEO CLIP)
MIKE MCCONNELL, DIRECTOR OF NATIONAL INTELLIGENCE: Next Tuesday, after the new president-elect's excitement subsides after winning the election, it's going to be dampened somewhat when he begins to focus on the realities of the myriad of changes and challenges we're going to face in the future. Like it was a mistake to predict the end of history at the close of the Cold War, the future world is full of tensions that could spawn conflict.
(END VIDEO CLIP)
HARRIS: McConnell says the president-elect will immediately start getting comprehensive intelligence briefings.
Let's take you now -- a live picture here, West Palm Beach, Florida. Al Gore, former Vice President Al Gore, and Tipper Gore here, back campaigning in Florida for the first time since Al Gore lost in Florida in a disputed recount of 2000. You know he'll be urging Obama supporters to vote early.
We will take you there. Perhaps we'll take you there for comments in just a couple of minutes here in the NEWSROOM.
He is an economic adviser to presidential candidate Barack Obama, but just who is the billionaire Warren Buffett? We will ask his biographer.
(COMMERCIAL BREAK)
HARRIS: How about this? Live pictures right now of this huge, massive -- boy, is it the Thanksgiving Day Parade in Philadelphia? Is it some -- oh, oh, I get it. There's a little thing called the World Series, and the Phillips won in five games over the Tampa Bay Rays.
And this is what you get when you get a World Series win. You get a parade right down Independence Boulevard in Philadelphia.
And our thanks to our friends at Comcast SportsNet for providing the pictures for us.
A massive parade. Boy, this is looking good here. The Phillies winning in five games over the Rays, and looking strong throughout.
So there you go, live pictures from the parade right now in Philadelphia. Nice.
Warren Buffett, legendary investor, chairman of Berkshire Hathaway, the richest man in the world -- it goes on and on, right? Where does he weigh in during these tough economic times?
Buffett biographer Alice Schroeder joins us now from Houston.
Alice, it is great to see you. Thanks for your time. Glad we could put this together.
ALICE SCHROEDER, WARREN BUFFETT BIOGRAPHER: Thanks, Tony.
HARRIS: Hey, talk to us about Warren Buffett's elevated status right now. I mean, look, huge, powerful, well-run companies are going to him right now.
Why is this the case? Why are we talking so much about Warren Buffett these days?
SCHROEDER: Well, a couple of things. He's really in his element financially because he waits for a time like this. He has a saying that cash, combined with courage, in a time of crisis is priceless. And he is getting his price.
HARRIS: Yes, yes. That makes some sense here.
You remember this quote from earlier this month in "The New York Times," I'm sure. Here it is: "Be fearful when others are greedy. Be greedy when others are fearful."
You know, that's great advice if you have cash and you have the kind of cash that Warren Buffett does. Not everyone can follow that advice.
What is the best investment advice now for working people struggling with debt and job losses right now?
SCHROEDER: Well, for those who have the spare money, Warren has recently suggested that you get into an index fund, a low-cost index fund of the stock market, because the biggest concern people should have right now is inflation, that over the next few years we're likely to have inflation. And that's how you protect against it.
HARRIS: You know, some folks looked at his investment in Goldman Sachs and said, you know what? This is Warren Buffett offering up a little patriotic investment here.
Did he view it that way, or did Warren Buffett see a real opportunity in Goldman Sachs as an investor?
SCHROEDER: Warren Buffett does not invest altruistically.
HARRIS: OK.
SCHROEDER: He invests to benefit the shareholders of Berkshire Hathaway, including himself. And he got an incredible deal on that.
HARRIS: Got to ask you something. He is one of Barack Obama's top economic advisers. Tell us what he sees in Barack Obama, if he shared his thoughts. And what role do you think he'll have in a Barack Obama presidency, if that should happen?
SCHROEDER: Well, Barack Obama has come to Warren long before his candidacy to get educated on the economy. And I think that politicians who want to understand finance and the economy are great.
I mean, so many of them don't, and that's really a plus. But Warren would have supported either Hillary or Barack, because what he's in favor of is more equality. And, of course, he believes in the last eight years we've had a lot of money flowing upward from the middle class into the pockets of the very rich.
In either case though, no matter who wins, he would be very happy to be giving advice, if asked, on an informal basis. I don't see him taking a formal role in the administration.
HARRIS: Got you.
Finally, did you learn anything about the man that surprised you?
SCHROEDER: Yes. You know, he has this grandfatherly sort of all- knowing image in public, but in private, he's got a lot of vulnerabilities. And he relies on the people around him for protection, to some extent.
HARRIS: Oh. That is interesting.
Alice, we appreciate your time.
There's the book cover. Alice Schroeder, Warren Buffett's biographer, taking some time out to be with us today.
Alice, we appreciate it. Thanks for your time.
SCHROEDER: Thanks, Tony.
HARRIS: Ghouls and ghosts and goblins. I'm not just talking Halloween here. We're talking about money issues, October's bewitching month.
(COMMERCIAL BREAK)
TONY HARRIS, CNN ANCHOR: Very quickly let's take you to Des Moines, Iowa. Barack Obama at a rally there in Des Moines. Let's listen in.
SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: And I love these two guys. Attorney General Tom Miller and State Treasurer Michael Fitzgerald. I see Michael. Where's Tom at? He must be around here somewhere. There he is. Hey, Tom. Love that guy.
One of the great secretaries of state who's going to make sure that every vote is counted in Iowa, Michael Mauro. An outstanding member of Congress, a great friend, Leonard Boswell. Our host for today, one of the most innovative mayors in the country. Give it up for Frank Cownie.
I want to thank the Lincoln High School marching band. Thank you! Those are some spiffy uniforms, by the way. You guys look good.
And finally, we've got a soon-to-be member of Congress from Iowa's fourth district. Please send Becky Greenwald to Congress!
Iowa, I have just two words for you. Four days. Four days. After decades of broken politics in Washington, eight years of failed policies from George W. Bush, 21 months of a campaign that's taken us from the rocky coast of Maine, to the sunshine of California, we are four days away from bringing change to America. Four days.
In four days, you can turn the page on politics that have put greed and irresponsible on Wall Street before the hard work and sacrifice of folks on main street. In four days, you can choose policies that invest in our middle class, create new jobs and grow this economy so that everybody has a chance to succeed. From the CEO, to the secretary. From the factory owner, to the men and women on the factory floor.
In four 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, Republican against Democrat. That asks us to fear at a time when we need to hope. In four days, at this defining moment in history, you can give this country the kind of change we need, Iowa.
Now -- yes, we can.
CROWD: Yes, we can. Yes, we can. Yes, we can.
OBAMA: Now, think about the journey that we've made. We began in the depths of winter, nearly two years ago, on the steps of the old state capital in Springfield, Illinois. And our first stop was Cedar Rapids. Then we came to Des Moines. Then we went to Waterloo. It was cold at any every stop. It was seven, eight degrees that day.
So we started the campaign right here. As I said back then, we didn't have much money and we didn't have many endorsements. We weren't given much of a chance by the polls or the pundits. We knew how steep our climb would be. But I knew this. I knew that the size of our challenges had outgrown the smallness of our politics. I was convinced that Democrats, Republicans, Americans of every political stripe, they were hungry for new ideas and new leadership and a new kind of politics that favored common sense over ideology (INAUDIBLE). That focused on the values and ideals that we have in common.
And most of all, I had confidence in you, the American people. I had confidence in the people of Iowa because I knew that the American people are a decent people and a generous people, willing to work hard and sacrifice for future generations. And I was convinced that when we come together, our voices are more powerful than the most entrenched lobbyists or the most vicious political attacks, or the full force of a status quo in Washington that wants to keep things just the way they are. Nowhere was that truer than here in Iowa.
On the day of the Iowa caucus, my faith in the American people was vindicated. And what you started here in Iowa has swept the nation. We're seeing the same turnout, we're seeing the same people going and getting in line, volunteers, people participating. A whole new way of doing democracy, started right here in Iowa. And it's all across the country now.
That's how we've come so far. How we've come so close, because of you. That's how we're going to change this country, with your help. And that's why, with four days left, we can't afford to slow down or sit back or let up one day, one minute, one second in this last week. Not now, not when there's so much at stake. We've got to go ahead and bring it home. We've got to go ahead and win this election. We're going to do it right here in Iowa, here in Des Moines.
CROWD: Yes, we can. Yes, we can. Yes, we can.
OBAMA: Now, when we started, we knew times were getting tough on people on main street. Family farmers were having a tough time. We knew that wages were stagnant. People were struggling with health care. But it's hard to imagine two years later how bad things have gotten. And we're in the middle of the worst economic crisis since the Great Depression.
Seven hundred and sixty thousand workers have lost their job since the beginning of this year. Business and families can't get credit. Home values are falling. Pensions are disappearing. It's harder and harder to make the mortgage or fill up the gas tank or even keep electricity on at the end of the month.
OK, well, I can't work with it right now. We're going to -- I've got to get elected first. So let me finish my speech. All right? OK.
At a moment like this, the last thing we can afford is four more years of the same tired, worn out, stale theories that say we should give more and more money to billionaires in big corporations and hope that prosperity somehow trickles down on everybody else. Now, you don't need to boo. You just need to vote.
The last thing we can afford is four more years where no one in Washington is watching what's going on on Wall Street because lobbyists have killed common sense regulations. That theory that you just let the market do whatever it wants and you give more and more to those at the top, that's the theory that got us into this mess. It hasn't worked. It's time for a change. That's why I'm running for president of the United States of America.
Now, John McCain has served this country honorably. He can point to a few moments over the past eight years where he's broken from George Bush. Just this morning, the McCain campaign put out an interesting ad. They put out an ad that showed me praising John McCain and Senator Lieberman for their work on global warming. As if there's something wrong with acknowledging when an opponent's said or done something that makes sense. I mean, I don't know exactly what they were thinking, but I do that all the time. I'm happy to -- you know, I'm torture. I think John McCain has done the right thing. I think we need more of that attitude in Washington. We need more civility in Washington.
All right. I don't disagree with John McCain on everything. I respect his occasional displays of independence. But when it comes to the economy, when it comes to the central issue of this election, the plain truth is that John McCain has stood with President Bush every step of the way. I mean, he hasn't been a maverick. He's been a sidekick. When it comes to the economy, he's voted for Bush tax cuts for the wealthy. Didn't need them, weren't even asking for and that his himself once said didn't make sense. He's voted for the Bush budget that have taken us from surplus to half a trillion dollar deficit and loaded up about $4 trillion or $5 trillion in extra debt for the next generation. He's called for less regulation 21 times just this year. Those are the facts.
And now, after 21 months and three debates, John McCain has still not been able to tell the American people a single, major thing he'd do differently from George Bush when it comes to the economy. Not once. I challenge you. You've seen some of the ads. If you can -- if anybody here can name a single thing that John McCain says that he'd do differently from George Bush when it comes to the economy, I'd be interested. He spends all his time talking about me in not very flattering terms.
John McCain says we can't spend the next four years waiting for our luck to change. And he's right about that. But all of you understand that the biggest gamble we can take is embracing the same old Bush/McCain policies that have not work and expect a different result. We've got to do something different.
When John McCain wants to give a $700,000 tax cut to the average Fortune 500 CEO, that's not change. That's not change when he wants to give $200 billion to the biggest corporation. $4 billion to the oil companies.
Exxon Mobil announced that it had made $14 billion in profits just last quarter. Broke its own record from the previous quarter when it made $12 billion. He wants to give more tax breaks. $300 billion to the same Wall Street banks that got us into this mess. That's not change. That's not change when he comes up with a tax plan that doesn't give a penny of relief to more than 100 million middle class Americans. We've tried it John McCain's way. We've tried it George Bush's way. Deep down, John McCain knows that, which is why his campaign said, if we keep on talking about the economy, we're going to lose. Well, that's why I keep on talking about the economy.
So he doesn't want to talk about the thing that is most important to the American people. And so he has spent the last few weeks of the campaign calling me every name in the book. Every name. Everything but a child of God. That's what -- because that's how you play the game in Washington. When you can't win on your own ideas, then you try to make up ideas about the other person. You make a big election about small things.
So I expect we're going to see a lot more of that over the next four days. More of the slash and burn, say anything, do anything politics. Throw everything up against the refrigerator. See if anything sticks. A message that's designed to divide and distract, to tear us apart instead of bringing us together.
You know, a couple of elections ago, there was a presidential candidate who decried these kind of politics and condemn these kind of tactics. And I admired him for it. He said, I will not take the low road to the highest office in the land. Those words were spoken eight years ago by my opponent, John McCain. But the high road didn't lead him to the White House then. So this time he decided to take a different route.
I know campaigns are tough. Because we've got real differences about big issues. We care passionately about this country's future. Make no response, we will respond swiftly and forcefully with the truth to whatever falsehoods they throw our way in these last four days. The stakes are too high to do anything less.
But, Iowa, at this moment, in this election, we have the chance to do more than just beat back this kind of politics short term. We have a chance to end it once and for all. We have the chance to prove that one thing more powerful than the politics of anything goes, the one thing that cynics don't count on is the will of the American people. We have the chance to prove that we are more than a collection of red states and blue states. We are the United States of America. The voters are in a serious mood. They want to talk about the things that are going to make a difference in people's lives. That's the kind of campaign we're going to run. That's how we're going to win on November 4th.
That's how we'll steer ourselves out of this crisis with the new politics for a new time. That's how we'll build the future we know is possible, as one people, as one nation. That's why I'm running for president of the United States.
Now, Iowa, I know these are difficult times, but I also know we've faced difficult times before. There are people here who lived through the Great Depression, who lived through world wars. The American story has never been easy. It's never been about things coming easy. It's been about rising when the moment was hard. It's about rejecting fear and division for unity of purpose. That's how we overcame war and depression. That's how we won the great struggles for civil rights and women's rights and workers' rights. That's how we'll write the next great chapter in the American story. We just need a new direction. We need new leadership. We need a new president of the United States.
Now, you know what else we need, Iowa? And I think the people of Iowa understand this probably better than anybody. We need to get beyond the old ideological debates that divide us between left and right. Listen, we don't need bigger government or smaller government. We need a better government. We need a smarter government. We need a more competent government. We need a government that reflects our values. We don't have to choose between letting the market run wild and stifling growth and innovation. We can do both.
I'm going to make sure, for example that our financial rescue package helps stop foreclosures and protects your money, instead of enriching CEOs. And I'm going to put in place the common sense regulation that I've been calling for throughout this campaign so that Wall Street can never cause a crisis like this again. That's the change we need.
The choice in this election isn't between tax cuts and no tax cuts. John McCain and I both want to give tax cuts. It's about who you want to give the tax cuts to. I believe that we shouldn't just reward wealth. We should also reward the workers and the work that creates wealth. And that's why I'm going to give a tax break to 95 percent of Americans who work every day, get taxes taken out of their paychecks every week.
I want to eliminate income taxes on Social Security for seniors making under $50,000. I want to give homeowners and working parents more of a break. And I'll help pay for this by asking the folks who are making more than $250,000 a year to go back to the tax rates they were paying in the 1990s.
Now let me just see a show of hands. How many people make less than a quarter million dollar as year? Raise your hand. All right.
Now I want you to be very clear here. Here are the facts. There was another report in "The New York Times" this morning that laid out the facts that I give much more relief to middle income people and also that I will not raise taxes for anybody making under $250,000 a year. Not your capital gains tax. Not your payroll tax. Not your income tax. No taxes. The middle class doesn't need a tax hike. I want to give you a tax cut. So don't be confused by what John McCain says. My tax rates will be lower than they were under Ronald Reagan.
It's a basic principle of fairness. John McCain calls this socialism. Now, I call it opportunity. I call it fairness. And, by the way, 98 percent of small businesses make less than a quarter million dollar as year. And, you know what, so do 99.9 percent of plumbers.
HARRIS: Obama in Des Moines, Iowa. The state that gave him his first win during the Democratic primary. And next hour, John McCain continues his campaign bus tour through Ohio with a rally in New Philadelphia. When that rally begins, 1:30 Eastern Time, we will take you there.
October's bewitching month. Is it tricks or treats for the economy?
(COMMERCIAL BREAK)
HARRIS: You know, October is proving to be a bewitching month for your wallet. And gas prices offered some relief, but the stock market only anxiety. CNN's Christine Romans stuck around for us. She's in New York.
And, Christine, if you would, help us make some sense of October and the roller coaster ride -- scary at times -- we've been on.
CHRISTINE ROMANS, CNN CORRESPONDENT: Oh, the good, the bad, the ugly.
HARRIS: Yes. Yes.
ROMANS: Tony, please, let's start with the good. Can we please start with the good?
HARRIS: Please. Please. Yes, I'm with you.
ROMANS: Let's start with the good. Let's take a look at gas prices. You know, folks, this is going to be money in your pocket right now. I mean you got so stung by those high oil and gas prices for much of the year, but gas prices have come down sharply over the past month. The month of October was good news for gas prices for consumers. Down more than $1 a gallon. Today about $2.50 a gallon. That's not bad.
You know what, this was also a good month for the price of the dollar versus the euro. The dollar got a little bit stronger. Now cynics would say, well, the dollar, you know, was pretty darn weak. It was. But it did rally about 18 cents.
Now here's the ugly.
HARRIS: Yes.
ROMANS: Foreclosures are up. Job loss, just this week, some 20,000 pink slips that I can count. And stocks. Wow. Stocks had a pretty rotten month.
But here's the silver lining in this list of rotten numbers for the cruel October for stocks. With the Dow down 15 percent, the S&P down 18 percent, the Nasdaq down 19 percent, hey, that's a lot better than it was at the beginning of the week.
HARRIS: Ain't that the truth.
ROMANS: Because at the beginning of the week, you had 27 percent down for the S&P. I mean, it's really been rough. But just keep in mind about those gas price, Tony. Those are going to be instant relief for people.
HARRIS: It is. It really is.
ROMANS: It's not like, you know, Congress picking up another stimulus plan or this or that. This is something people are feeling right now. So it's a little something.
HARRIS: Yes. It would be nice to finish off the day, Halloween, in positive territory. I guess we're up 90 points or so.
Christine, have a great weekend, lady. Good to see you.
ROMANS: You too.
HARRIS: Thank you.
ROMANS: Bye-bye.
HARRIS: And for more on the financial crisis, just go to cnnmoney.com.
You know, American's maybe spooked by the economy, but the retail picture of Halloween is not so scary. In fact, spending is expected to rise this year. Stephanie Elam has the story from New York.
STEPHANIE ELAM, CNN CORRESPONDENT: Tony, this Halloween it seems Americans are dressing up as escape artists. That's because with the economy being so weak, job losses so high, many people just want to escape everyday reality and have some fun.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: No, I already spent a lot of money last year. So I'm not going to spend a lot this year.
UNIDENTIFIED FEMALE: Less than usual, more definitely more than I'd hoped.
UNIDENTIFIED MALE: I was going to get this, but it's just too much for me.
UNIDENTIFIED MALE: Less than normal. I usually spend . . .
ELAM: Why?
UNIDENTIFIED MALE: Recession. I use that as an excuse because everybody does.
ELAM, (voice over): Despite what people may say, Americans are expected to spend more for Halloween this year.
ELLEN DAVIS, NATIONAL RETAIL FEDERATION: The biggest majority of a person's Halloween budget this year will go to costumes at about $25 a person. But we're also expecting people to spend about $20 on candy and $18 on decorations.
ELAM: The National Retail Federation survey found nearly 65 percent of consumers will celebrate All Hallows Eve and spend an estimated $5.77 billion this year. Visa also sees growth.
JASON ALDERMAN, DIR. OF FINANCIAL EDUCATION, VISA: We found an 18 percent jump from $40 last year per family to $47 per family this year. And it had us scratching our heads for a while and then we realized, you know, in times of stress, celebrating a holiday like Halloween can really be a stress reliever.
ELAM: Why do you think people are still spending even though the economy has not been as strong?
TONY DETZI, VP SPIRIT HALLOWEEN: Halloween is everywhere. It's at work. Everybody dresses up for work. It's at play. It's at school. It's at parades. It's everywhere.
ELAM: No doubt Halloween may be a small treat for retailers in what is shaping up to be a frightful holiday shopping season. But maybe some Americans just look like they have the spirit.
JAY LENO, "THE TONIGHT SHOW WITH JAY LENO": The good news I guess, with the economy so bad, people don't have to work so hard to make their houses look scary. I mean, the lights are out, the windows are boarded up, the lawn's not cut. Ooh! Ooh! Every day is Halloween in America now.
ELAM: Stephanie Elam, CNN, New York.
(END VIDEOTAPE)
HARRIS: I got some parties. You going to go to some parties tonight. I mean, come on, it's Halloween and it has been a long week, right.
KYRA PHILLIPS, CNN ANCHOR: I'm the Grinch that turn off all the lights and hides.
HARRIS: Really? That's me, too. Although I've decided, in the course of the two hours, I've decided I'm going to change my attitude. I'm going at Warren Buffett.
PHILLIPS: Oh, yes. Don't need the money, baby.
HARRIS: Good imagination, right? There you go.
PHILLIPS: Hey, look at this. Finally a website that describes me. Multitaskingwoman.com. You've got to love that. They're coming out with everything now.
HARRIS: Absolutely.
PHILLIPS: Multitasking women, never too busy to vote. I love it.
HARRIS: I love it. I love it. You're not going to stand in the long lines, are you?
PHILLIPS: I already did.
HARRIS: You already did?
PHILLIPS: Three hours and five minutes yesterday. But it felt great.
HARRIS: OK. I'm off to do it. I'm off to do it right now.
PHILLIPS: Good luck.
HARRIS: The next hour . . .
PHILLIPS: Who are you voting for?
HARRIS: CNN NEWSROOM begins right now.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Stand in the middle of the woods videotaping myself, hiding myself from my wife so she don't know I'm doing this. Yes, I'm pretty upset.
(END VIDEO CLIP)
PHILLIPS: It starts with a poll or a blogs. Then more polls, more blogs. You memorize the electoral map and Tivo the rallies. Election obsession claims another victim. Sound familiar?
Talk about change. Voters in San Francisco aren't just choosing a president. They may just legalize prostitution. We'll get both sides of a touchy issue.
And, sex sells. But in the final days of a close election, religion is the ultimate weapon. We'll go to North Carolina for an un-holy fight for a U.S. Senate seat.
