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At Least 146 Killed In South Korea Halloween Incident; Paul Pelosi Remains Hospitalized After Hammer Attack; Obama Campaigns At Wisconsin Democrats' Early Voting Rally; Schumer On Hot Mic: Georgia Senate Race Is "Going Downhill"; Warnock & Walker In Tight Race Just Days From Election; Mortgage Rates Top Seven Percent For First Time In 20 Years; Hurricane Ian Aid Slow And Confusing. Aired 5-6p ET
Aired October 29, 2022 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[17:00:35]
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Oh, my God.
WILL RIPLEY, CNN CORRESPONDENT: This is the nightclub district in Seoul. There was a Halloween party. It's been described in local media as a stampede. I just want to show people how narrow the street is. This is the street where it happened.
UNIDENTIFIED MALE: The husband of House Speaker Nancy Pelosi violently attacked with a hammer early Friday morning. He confronted Mr. Pelosi, shouting, "Where's Nancy?"
REP. KAREN BASS, (D) CALIFORNIA: It reminds me of January 6.
UNIDENTIFIED MALE: Mr. Pelosi was able to call 911, speaking in code.
UNIDENTIFIED MALE: That was the difference between a probably life and death in this case.
REP. ADAM KINZINGER, (R) ILLINOIS: This is what happens when you convince a third of the country that the election was stolen and that the other side is an enemy.
UNIDENTIFIED MALE: Just 10 days to go before Election Day, candidates are bringing out some big-name surrogates.
BARACK OBAMA, (D) FORMER U.S. PRESIDENT: Every Republican politician seems obsessed with two things, owning the lips and getting Donald Trump's approval.
UNIDENTIFIED FEMALE: We've seen something of a momentum shift toward Dr. Oz. Trump is still very popular in Pennsylvania.
(END VIDEO CLIP)
PAMELA BROWN, CNN HOST: I'm Pamela Brown in Washington and you are live in the CNN Newsroom on this Saturday.
A heartbreaking scene has been unfolding all night in the South Korean Capitol at least 146 people died in a very popular nightclub district while out celebrating Halloween. And many others are injured tonight. And we have to warn you here, some of the video we're giving in, it is graphic. It appears that people got trapped in a crowd and then panicked because they couldn't breathe. But this is all still under investigation and the causes of death have not been confirmed. These images as you see, they give you an idea of just how packed the neighborhood was at the time.
Let's get right to CNN's Will Ripley who is live in Seoul where it is now 6 a.m. just horrible people out celebrating Halloween, Will, what happened here?
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: You know, it was horrible, Pamela, to see them wheeling out the bodies and they were covered in sheets. But you can see their Halloween costumes. And some of them were very distinctive. And we have to be really careful what video we show people because a lot of the families have not been notified yet. And that is part of this massive effort that's underway here.
We have 1700 police, firefighters and investigators out on the scene here in Itaewon. At six o'clock in the morning, local time, as you mentioned, just an, you know, an extraordinarily large, nationally coordinated effort now to investigate why this happened? Why did these people, you know -- why did this presume stampede happened but also a rapidly try to identify the people who were killed.
People from South Korea and likely people from other countries as well, because it was people in their late teens and early 20s, young people who were out here in costume celebrating and something happened, something triggered this. And they ended up with a, as you mentioned, a pile of people packed into these narrow streets. I will just show you really quickly, Pamela, because the police have this area blocked off. But this is actually -- this is the street where it happened.
And you can just see as -- we as Charlie gets us up through here, just how narrow this is. And you're talking about thousands, if not tens of thousands of people so tightly packed in here, Pamela. They actually could not breathe as they were basically stuck in here. And so now, the investigation is shifting to just try to figure out what triggered this.
BROWN: I mean that is just absolutely horrifying. Will, what more can you tell us about this neighborhood and why so many people chose to celebrate Halloween there?
RIPLEY: So, Itaewon is an iconic nightclub district here in Seoul, and all the hotels in the surrounding area are fully booked. It was -- you know, people fly in from across Asia to come and celebrate Halloween here. And every year the crowds are big, but this year with the first in three years with no COVID restrictions in South Korea, so people didn't have to wear masks. There's no limits on crowd size. And so, I have pictures from a young
man who a 22-year-old who was out celebrating and he showed me exactly what the street looked like about an hour or two before the deadly, presumed stampede where we now know at least 146 people have died, 150 people with really bad injuries and some of them in very bad shape. They're really desperately trying to save their lives at this hour. And he described just what it felt like. You know, people were so excited to come out for Halloween that they kept coming and coming and packing into that area and he said there were some moments where really, he was scared.
[17:05:10]
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SONG SEHYUN, WITNESS: And I saw the people like going to the left side and I actually saw the person actually getting to the -- at the opposite side. So, actually, the person in the middle, they got jammed, and they have like no, no way to communicate and they're like, no, they cannot breathe.
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RIPLEY: So, after that happened, he decided to go home. But see he left some of his friends still out here celebrating including, he says, some Americans who he says are service members because there are more than 30,000 U.S. troops stationed here in South Korea. Many of them likely on leave celebrating Halloween, and he still has not heard from his friends. They are missing, as are so many others. And so many people, Pamela, wondering if their friends, if their loved ones, if their children are alive, or if they're in a hospital somewhere or if their cell phone battery just died. Can you imagine what those people are going through right now.
BROWN: Just absolutely agonizing, our hearts, our thoughts, our prayers are with them. Will Ripley on the scene right there, you saw in Seoul, thank you so much.
Well, now to what police consider the attempted homicide of House Speaker Nancy Pelosi's husband. We're getting a new look at the suspect, David DePape. This right here is his driver's license photo. And a short time ago, the President became the latest Democrat to suggest that heated rhetoric in this country is only fueling violence like this.
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JOE BIDEN, (D) U.S. PRESIDENT: Talk has to stop. That's the problem. That's the problem. We can't just say, I feel badly about the violence. We condemn it, condemn what produces the violence.
(END VIDEO CLIP)
BROWN: And so, the investigation itself now CNN Security Correspondent, Josh Campbell, has been right outside the Pelosi home in San Francisco all day. So, bring us up to speed, Josh? JOSH CAMPBELL, CNN SECURITY CORRESPONDENT: Hi, Pam. Well, Paul Pelosi, the husband of Speaker Nancy Pelosi remains in the hospital at this hour, recovering from serious injuries. Sources tell CNN that includes a fractured skull. The Speaker's office says that he is expected to make a full recovery. But this comes after this extremely violent incident in the early morning hours here at the Pelosi residence in San Francisco where the suspect allegedly entered the home, engaged in a temporary assault of Mr. Pelosi. And our colleague, Jamie Gangel, is reporting that it appears as though the House Speaker was the intended target. The suspect was apparently yelling. Where's Nancy? Where's Nancy?
Here's what we know about him right now. He is expected to be formally charged and arraigned early next week. Authorities say that he wasn't known to the U.S. Capitol Police, which is responsible for protecting the House Speaker. But the police chief here in San Francisco saying this was an intentional act. This was a targeted act. And of course, Pamela, this comes as we've seen this wave of violent rhetoric directed towards lawmakers.
We know from this suspect social media profile he followed a series of conspiracy theories from election denying to COVID vaccines, the January 6 insurrections. And we've heard a lot of condemnation from lawmakers about how this rhetoric is leading to violence. I actually spoke yesterday, Pam, with Congresswoman Karen Bass, she was here in San Francisco and she said in her view, she can draw a direct line between the conspiracy theories about the election that the former president has been proffering. And the violence that took place here Friday. Watch.
REP. KAREN BASS, (D) CALIFORNIA: The idea that he was violently attacked with a hammer, it's just frightening the level of political discourse that our country is in right now. And it reminds me of January 6, because when the insurrection has broken the Capitol, one of the first places they went was to the Speaker's office. They think that we all thought on election day, when Trump was defeated, that the Trump era was over. Clearly it is not over and I put all of this at his doorstep, because he is the one that sent our country in this direction.
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CAMPBELL: And finally, Pamela, officials here in San Francisco say that they expect to prosecute the suspect to the fullest extent of the law. Some of the litany of charges he's facing include attempted homicide, assault, threatening a family member of a public official, and elder abuse, Pam.
BROWN: All right, thanks so much, Josh Campbell, live for us in San Francisco.
And joining us now to discuss all of this CNN Law Enforcement Analyst and former secret service agent Jonathan Wackrow.
Hi, Jonathan. So, the details behind this attack, they are just terrifying. A law enforcement source says the suspect broke into the home and confronted Paul Pelosi with the hammer, yelling, "Where is Nancy?" As we just heard Josh laying out there. What do you think about this? Are you surprised the suspect was able to get into the Speaker's home?
JONATHAN WACKROW, CNN LAW ENFORCEMENT ANALYST: Well, yeah. I mean, there's a lot to unpack here with this situation. And again, we don't have all of the facts, but we have enough to really be concerned. Why? Because as Josh just had said, this is being described as an intentional act, right ? This was not a crime of opportunity. This was a violent act, targeted towards Nancy Pelosi. And the consequence of her not being home was that her husband was assaulted.
[17:10:20]
But, you know, this really shouldn't come as a surprise that we're seeing now, this violent rhetoric transcends into physical act. Why? Because for years, we have been, you know, seeing this significant rise of, you know, violent political rhetoric online, we've seen direct action continuously. We've seen warnings by law enforcement, DHS, the FBI, they put out continuous notices that politicians, local, federal and state officials are being targeted, you know, because of certain ideology. So, none of this should, you know, come as a shock that we actually had that. It's just tragic that we actually got to this point.
BROWN: Yeah, I mean, this was the concern that they were all morning about, of course, after January 6, as well. I have to say, I was surprised to learn that the families of some of our top leaders in this nation, they are not given any kind of security detail. And I heard you say it may be time to change that. But it seems unlikely taxpayers can provide security to all 535 members of Congress and our families. What is the solution here?
WACKROW: Well, the solution is to take a threat-based approach, right? So, one, we have to all accept that there is this threat that is out there, that's facing our political leaders. And then we have to comprehensively assess the threat environment that they are facing and their families are facing, right? I do think that we need for the rank-and-file members of Congress, we do need a better pathway for security for them and their families. So, they can govern appropriately.
But for the political leadership of Congress, especially those and those who are in line for presidential succession, we need to have a different litmus test for them. We have to elevate the bar in terms of protection. And, you know, what we saw, with the residents, with Nancy Pelosi's residence in San Francisco, that should never have happened, right?
That threat should never have gotten inside the home. So, we have to do a better job at actually protecting our political leaders at all levels. And the way that we're going to do that, again, is being smart about how we apply these control measures. And you're really, it's not just protecting an individual or a specific leader, this is about protecting our democratic process, our democracy as a whole. BROWN: Absolutely is. So, I want to put the numbers on the screen for you right now. According to Capitol Police, there were nearly 10,000 concerning statements or threats directed towards members of Congress this past year, that's up from about 4,000 in 2017. So, I know you talked about some of the political rhetoric. But let's talk a little bit more about what is behind this increase in threats. And this these statements, these threats that are being directed toward members of Congress?
WACKROW: Yeah, well, listen, you know, let me start with, how they actually address these threats, right? So, Capitol police, FBI, law enforcement at large, they're going to follow a model that was actually put forth by the Secret Service when it comes to protective intelligence and threat analysis. And that's really looking at the means, the opportunity and the intent for the individual that making those threats to cause harm towards, you know, towards the target.
Now, what's complicated these days is, one, the volume, right? We saw that rise from 4000 to 9000, concerning statements or direct threats made to members of Congress that's difficult to manage. Two, the way that those messages are being disseminated, digital media, social media, they're creating this instant pathway for threats to be made. So, there's a challenge for law enforcement to actually really address that.
BROWN: Yeah, I've heard that time and time again, from law enforcement officials. And of course, you have the First Amendment protecting free speech. So, it is a tricky balance. Jonathan Wackrow, thank you so much.
WACKROW: Thanks, Pam.
BROWN: Coming up on the Saturday night, what has been the Republican reaction to this attack and how do we lower the rhetoric? I'll asl Kentucky Republican Congressman James Comer, coming up later in the show.
Plus, former President Barack Obama makes a push for Dems in the Midwest and he is not the only big name on the campaign trail. And then later for you tonight, control the Senate could once again come down to Georgia, that race is getting tighter by the day and we are digging into it when newsroom continues. Stay with us.
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BROWN: We are 10 days out from midterm election day and so far, election officials say more than 19 million early ballots have already been cast. President Biden cast his ballot last hour in Wilmington, Delaware and he brought along his granddaughter, Natalie, here. You see them. They are they're getting their stickers.
Well, the Democrats are rolling out their heavy hitters nationwide. Former President Barack Obama speaking now in Wisconsin. And earlier today he rallied in Detroit and spent yesterday campaigning with Senator Raphael Warnock down in Georgia.
Vice President Kamala Harris joined Maryland's nominee for governor, Wes Moore, in Baltimore. And the First Lady, Dr. Jill Biden, is spending her Saturday in New Hampshire campaigning for Senator Maggie Hassan. New Hampshire seat is critical to the Democrats chances of holding control of the Senate.
Our team of reporters are located around the country following the latest donkey racism. I want to go first Omar Jimenez in Wisconsin. All right, Omar, the President, President Obama hit the campaign trail in the Midwest today. What he focused on in his message?
[17:20:00]
OMAR JIMENEZ, CNN CORRESPONDENT: Well, Pamela, first of all here in Wisconsin, the program is underway, we're going to hear from the Democratic Governor Tony Evers, Senate hopeful, Lieutenant Governor Mandela Barnes. And then of course, President Obama, who will be here fresh off of his trip to Michigan, where he campaigned on behalf of Democratic Governor Gretchen Whitmer, who, of course, he emphasized topics like abortion rights, the economy and more but he also touched on the high temperature of politics right now.
And on the attack of Paul Pelosi, Nancy Pelosi's husband who, police say, was attacked in his own home by someone who was trying to find Speaker Pelosi. Take a listen to some of the former President's comments.
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BARACK OBAMA, (D) FORMER U.S. PRESIDENT: If our rhetoric about each other, gets that me. When we don't just disagree with people, but we start demonizing them, making wild crazy allegations about them. That creates a dangerous climate. And if elected officials don't do more to explicitly reject that kind of rhetoric, if they tacitly supported or encourage their supporters to stand up, side voting places, armed with guns and dressed in tactical gear. More people can get hurt.
(END VIDEO CLIP)
JIMENEZ: And the former President has really jumped into these midterm races, strongly over the past week and a half, not just with the planned in-person appearances. But he's also recorded nearly two dozen commercials for candidates and campaign committees for the Senate race here in Wisconsin, in particular between Barnes and Republican Ron Johnson. It's been basically no clear leader, that's how close it is. But both of them have been campaigning on the country being on the line in this election, in part, because it'll help determine who controls the U.S. Senate.
And, of course, Democratic Governor Tony Evers is locked in his own, too close to call, no clear leader race against a Republican Tim Michels. So, people here feel there is a lot on the line. Many people here, of course, anticipation of the President hoping that he can help keep fundraising momentum going that we've seen on the Democratic side based on numbers that came in over the course of October, Pamela. But if anything, I've heard from Wisconsin tonight, they know it's going to be close.
BROWN: All right. Omar Jimenez, thanks so much, live for us in Milwaukee.
Well, President Joe Biden casting his early vote in his home state of Delaware as First Lady Jill Biden canvasses New Hampshire for local Democrats. Let's bring in CNN's Kevin Liptak, joining us now from Wilmington, Delaware. Kevin, what are we hearing from the Biden's as the midterms draw closer?
KEVIN LIPTAK, CNN WHITE HOUSE REPORTER: Well, they both seem to be sharpening their message here in the final stretch. Of course, President Biden has spent this past several months trying to highlight his accomplishments as president, but to the great frustration of his aides that doesn't seem to be breaking through. And so, as Democrats become more anxious about November, you really do hear this a closing argument that focuses on this warning about what might happen if Republicans take control of Congress.
And so up in New Hampshire today, you did hear the First Lady say that if Republicans take control Social Security, and Medicare will be on the chopping block. We heard the Vice President Kamala Harris, she was in Maryland today, she chose to focus on the potential for a nationwide ban on abortion. Now, not on the campaign trail today. It's the President himself. He is here in Wilmington he did choose to cast an early ballot. Listen to a little bit of how he characterized his final week of this midterm campaign.
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JOE BIDEN, (D) U.S. PRESIDENT: I'm feeling good. I'm going to be going to the remainder of the week, I'm going to be engaged, I'm going to be back in Pennsylvania, I'm going to be in Maryland, I'm going to be, I believe in Mexico, California. I'm going to be all around the country. My wife, Jill, was up in New Hampshire right now. So, I'm going to be spending the rest of this time making the case that this is not a referendum. It's a choice, the fundamental choice, choice between two very different visions for the country. And that's the (inaudible) 00:04:21.
(END VIDEO CLIP)
LIPTAK: So, the President saying it's a choice, not a referendum and we expect him to continue that. We'll next see him on the campaign trail on Tuesday in Florida. But the President you saw there becoming one of the 19 million Americans who have cast their early ballot in this election. He was joined by his granddaughter, Natalie. She just turned 18 this year and the White House says this was her very first time casting a ballot. Pamela.
BROWN: All right, Kevin, thanks so much.
Well, the New York governor's race is heating up with incoming Kathy Hochul, trying to hold off Republican challenger Lee Zeldin and what's become a surprisingly competitive contest. Tonight, Congressman Zeldin is getting some big name help from Florida, from Florida Governor Ron DeSantis. He's going to join Zeldin for a rally on Long Island in just a couple of hours from now.
[17:25:11]
CNN's Gloria Pazmino is at the site of that rally. Gloria, Republicans must think this race is winnable of a name like Ron DeSantis is there for this late push. What are we expecting to hear tonight?
GLORIA PAZMINO, CNN CORRESPONDENT: Well, I think we are going to hear part of what we've been hearing both Lee Zeldin and Ron DeSantis say on the campaign trail, both of them had debates just a couple of days ago, and they both focused on public safety. And that is the one issue that Lee Zeldin has been really concentrated on during this campaign, surprisingly close in the last couple of days, according to some polls.
And the reason that's surprising is because here in New York, consider a Democratic stronghold. Democrats haven't had to worry about a Republican taking over the governorship and more than 20 years. So, these are very, very tight polls in the last couple of weeks are certainly creating a headache for the incumbent and Democrats. Governor Kathy Hochul has been out there trying to campaign in the last couple of days. But there is enthusiasm for Lee Zeldin in places like where I am right now. Suffolk County, he represents part of this district in Congress.
And the campaign has told us they are expecting more than 6000 people to be present here at this rally later this evening to see Governor Ron DeSantis speak and stump on behalf of Zeldin. We spoke with voters earlier today. It's the first day of early voting here in New York. And just listened to a little bit of what voters in New York had to say.
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DAVID WESTFALL, EARLY VOTER: As far as being very close, New York being so democratic, it's good for me because my candidate has a very good chance of winning.
PAZMINO: What do you like about Zeldin?
MARY BETH WESTFALL, EARLY VOTER: What do I like about him? I feel , on crime, he's going to bring back what we had. New York City streets are not safe. I'm afraid to go into New York City. And it's working its way out to Long Island.
(END VIDEO CLIP)
PAZMINO: So, you can hear that issue of crime and public safety really penetrating and really just ringing true for some voters. Governor Kathy Hochul has tried to speak to those concerns about public safety. She held a couple of events related to that in the last several weeks, but it's certainly an issue that continues to be a central focus of the Zeldin campaign. Pam.
BROWN: Gloria Pazmino, thanks so much. And in Georgia Republican Senate candidate Herschel Walker takes a hit from former President Obama.
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HERSCHEL WALKER, (R) GEORGIA U.S. SENATE CANDIDATE: It seems to me he's a celebrity who wants to be a politician. And we've seen how that goes.
(END VIDEO CLIP)
BROWN: And despite getting mocked and rocked by an abortion scandal, are Democrats worried Walker could win? We're going to discuss the hot mic moment that may be a clue, up next.
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BROWN: Well, Senate Majority Leader Chuck Schumer was caught on a hot mic giving a candid assessment of some of the tightest races around the country.
Here's what he had to say about the Georgia Senate contest between Democrat Raphael Warnock and Republican Herschel Walker.
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SEN. CHUCK SCHUMER (D-NY): The state where we've going downhill is Georgia. It's hard to believe that they will go for Hershel Walker.
(END VIDEO CLIP)
BROWN: Shannon McCaffrey joins us now. She's a politics reporter for the "Atlanta Journal-Constitution."
So, Shannon, how has the Walker and Warnock campaigns reacted to these hot mic comments?
SHANNON MCCAFFREY, POLITICS REPORTER, "ATLANTA JOURNAL-CONSTITUTION": Well, I was at Herschel Walker's campaign yesterday. And when he was on the stomp, he was sort of mocking Raphael Warnock, saying, look, they are talking behind your back and they don't think you can win. Really kind of trash talking him a bit.
The Warnock campaign responded with an appearance from President Obama last night. They had that already on the schedule. That is really designed to boost turn out in a big way for both Raphael Warnock and Stacey Warnock -- Stacey Abrams, excuse me, and the other Democrats on the ticket.
It's all about turnout now. We'll see where that ends up.
BROWN: Yes, it is all about turn out. There's high turnout for early voting so far in Georgia.
What is the panic level for Democrats right now? Is this race in danger of slipping away from them? MCCAFFREY: Well, if you talk to them on the record, I think they will
say they are moving along and everything is on track. I do think there's worry behind the scenes.
One thing we have seen from Raphael Warnock in just recent days is I think his message has gotten sharper. He's been attacking his opponent more directly.
When this second abortion allegation came out this past week, he put out a statement and was very critical of Herschel Walker not telling the truth.
In the past, he really tried to steer away from being critical. This is a pastor and he tends to run on a more positive message.
But you tell there's some concern on the campaign just from the way they are reacting. A lot more aggressive in responding to Herschel Walker and what he's saying and what he's doing.
BROWN: He's been unable -- Herschel Walker has been unable to escape the accusation he paid for woman's abortion. And another woman stepped forward and said he pressured her into getting one in 1993.
[17:34:59]
And I'm curious, I know you've been talking to voters in state, in rural areas, more urban areas. How are voters responding to is this?
MCCAFFREY: It's interesting because, as you mentioned, I was just recently in a few different rural locations with her Herschel Walker, down in south Georgia and also up in north Georgia.
When you talk to voters there, these are Republican strongholds, they have no faith that these allegations are remotely true in most cases.
There's also a type of voter that you talk to who believes, even if they are true, this is someone who have very religious and he's been redeemed and they talk about it in religious terms.
However, there are still some people in the middle who just the cumulative effect of this story after story after story, when is the other shoe going to drop.
But I think, by and large, Republican voters are sticking with Herschel Walker.
BROWN: All right, Jennifer McCaffrey, thanks so much.
Across the country, election worker, school board members, county supervisors are being targeted and threatened.
CNN senior national correspondent, Kyung Lah, traveled across the United States in a 10-month investigation to speak with these terrified officials and their constituents.
(BEGIN VIDEO CLIP) (MUSIC)
UNIDENTIFIED FEMALE: You're willfully choosing to ignore the data.
UNIDENTIFIED MALE: Raise the freaking bar.
UNIDENTIFIED FEMALE: I'm going to come after each one of you personally.
UNIDENTIFIED FEMALE: You will get the justice that's coming to you.
UNIDENTIFIED MALE: You need to be arrested!
UNIDENTIFIED MALE (voice-over): Get out while you can.
(CHANTING)
KYUNG LAH, CNN SENIOR NATIONAL CORRESPONDENT (voice-over): Threats and anger.
UNIDENTIFIED MALE: You're working for the people!
LAH: Coast-to-coast.
UNIDENTIFIED MALE: People got executed for violating the Nuremberg Code and you guys are violating the Nuremberg Code, too.
UNIDENTIFIED FEMALE: You no longer have our consent.
LAH: Spreading in local communities.
UNIDENTIFIED MALE: We know who your family is. We know your dog's name.
LAH: Targeting county supervisors.
UNIDENTIFIED MALE: Time to dust off the old guillotine.
LAH: Even educators.
UNIDENTIFIED MALE: You're about to get a real education mother (EXPLETIVE DELETED).
UNIDENTIFIED MALE (voice-over): You know your home address is on the Internet, don't you? That could be a little scary.
LAH: Frightened election officials wearing body armor.
UNIDENTIFIED MALE: Have it on, on a daily basis now.
LAH: And arming themselves.
UNIDENTIFIED MALE: This is a .22 automatic.
LAH: Not knowing what the danger the upcoming elections might bring.
(END VIDEO CLIP)
BROWN: CNN's special report, "PERILOUS POLITICS, AMERICA'S DANGEROUS DIVIDE," begins tomorrow at 8:00 p.m.
If you have tried to buy a home recently, you've seen it. A mortgage hasn't been this costly in two decades. The rates keep going up. Danielle Hale, chief economist with realtor.com, is here with her experts tips to navigate the housing market, up next.
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[17:41:50]
BROWN: It's been 20 years since buying a home was this expensive. Mortgage rates are highest they have been since 2002, with the average rate topping 7 percent. That's creating big drag on home sales.
New construction purchases are down 11 percent since September and about 17.5 percent compared to this time last year.
Danielle Hale joins us now. She's the chief economist for realtor.com.
Daniel, thanks for coming on.
This time of year, qualified buyers -- this time a year ago, I should say, qualified buys could get a mortgage for around 3 percent. That's more than doubled now.
How many perspective buyers have been priced out by this spike in interest rates?
DANIELLE HALE, CHIEF ECONOMIST, REALTOR.COM: I think the sales data show us that quite a few buyers have been priced out.
If you look at the monthly payments with home prices the way they were a year ago, roughly 14 percent below where they are now and mortgage rates 3 percent, the cost of buying a home with a mortgage was $1,000 than what today's home shoppers are facing.
To put that in comparison, that's more than 70 percent increase. And we're all getting very familiar with percentage increases now because of inflation. Inflation is up about 8 percent to 9 percent.
The cost of a mortgage is moving up much faster than the pace of overall inflation. That's been really challenging for a lot of home shoppers.
BROWN: You think about the home buyers who maybe bought when the price were lower, the rates were lower, refinanced when the rates were lower, they will not want to sell and look for a new house and pay a higher rate. That all factors into this.
Are most potential home buyers just deciding to rent or are they looking in neighborhoods farther out that are more affordable? What trends are you seeing? HALE: A combination of all of this above. We are seeing more
households continue to rent. That's keeping the rental market relatively competitive. There's not a lot of vacancy. It's hard to find a rental.
At the same time, some home shoppers are looking into further out in the suburbs. And in some cases, looking in different markets entirely.
This is really benefitting affordable markets that we see in the northeast, the Midwest and some parts of the south.
We recently released an index with the "Wall Street Journal," our Emerging Housing Index. And the number-one market was Johnson City, Tennessee.
It's an affordable market. It's attracting a lot of buyers from a lot of places because the real estate dollars stretch further and where those prices are much more affordable.
BROWN: As more people go to the places that are considered affordable now, will they potentially become less affordable because there's so much demand for the places?
HALE: Yes. Prices are rising in those markets, which i's making it harder for locals there to afford the price of homes.
For those coming in, it's such a big difference. The medium prices well under $400,000. Whereas, nationwide, the prices are up over $400,000.
So a lot of people moving from more expensive markets can see their real estate dollars stretch further. But it is raising costs and making it pricier for everyone who is trying to buy in the markets.
[17:45:03]
BROWN: And there's a ripple effect from all of this. What's been the spillover effect for people who work in the real estate industry. Are most agents and loan officers able the ride this out or are you starting to see a of people leave the industry?
HALE: It is going to be challenging for the industry. It's not just challenging for the real estate industry but it's really challenging for consumers across the board.
We're seeing savings rate dip below 4 percent, which is something we haven't seen since 2008. Because consumers are really trying to make their dollar stretch further against this higher inflation, against higher housing costs. And it's getting harder and harder to do.
I think we will be in for an interesting couple of months. We're heading into holiday season and where we see consumers make lots of holiday expenditures. It will be interesting to see whether they can keep up the pace.
The savings data doesn't give me a lot of confidence for this holiday season.
BROWN: All right, Danielle Hale, thank you so much for offering your insight into all of this. We appreciate it.
You're in the CNN NEWSROOM on this Saturday. More than a month now after Hurricane Ian hit Florida, why some residents say getting help has been slow and also confusing.
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JUDY JONES, HOME DESTROYED BY HURRICANE IAN: Because you're starting over with everything in your life. Ninety-five percent of my stuff is gone. You have nowhere to turn as far as a guide to what you're supposed to do.
(END VIDEO CLIP)
BROWN: And a new morning show is coming to CNN starting Tuesday. My friends Don, Poppy and Kaitlan, join them for refreshing conversations every weekday on "CNN THIS MORNING" from 6:00 until 9:00 a.m.
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[17:51:97]
BROWN: The world's largest active volcano is getting disturbingly restless on the big island of Hawaii. Officials have just issued a volcano advisory for Mauna Loa.
The mountain soars more than 13,000 feet and covers half the island. While they say they don't see signs of eruption as imminent, experts recorded 36 small earthquakes there between Thursday and Friday.
Of course, Mauna Loa's rumblings are nothing new. Back during an actual eruption in the 1930s, the Air Force bombed its lava to keep it from reaching a nearby city.
It is exactly one month now since Hurricane Ian tore into southwest Florida. And for many residents, the storm's impact remains very real. Some areas still have no electricity or running water and schools are still closed.
As Carlos Juarez shows us, many people are either still waiting for relief or confused about what they're receiving.
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CARLOS SUAREZ, CNN CORRESPONDENT (voice-over): It's been four weeks since Hurricane Ian hit Florida. And the pile of garbage and debris around Kimberly Payano's neighborhood and outside her north Ft. Myers house grows by the day.
Most of what she owned is ruined. And most of the home she lived in for 17 years is gone.
We first met her last month just days after the storm. KIMBERLY PAYANO, HOME DESTROYED BY HURRICANE IAN: This is my home.
SUAREZ: These days, she's living in a rented RV that's parked in her front yard.
PAYANO: All these areas that hug up to the river, you go back in there and there's -- nothing's been cleaned up.
SUAREZ: Across town, Kiana Tobler (ph) and her two kids are among the 512 people living at this shelter. It's their second shelter after Ian left them without a place to call home.
She says she turned down FEMA money to pay for a hotel over fears the financial help will not be there forever. Instead, she's hoping the Red Cross can find her a permanent place to stay.
SUAREZ (on camera): What happens if home isn't here in Ft. Myers?
KIANA TOBLER (ph), HOME DESTROYED BY HURRICANE IAN: I'm willing to relocate. I don't have to be here. Wherever I can go for me and my kids to be in a stable, safe situation and environment of our own, I'm all for that.
SUAREZ (voice-over): A month into the recovery efforts and parts of Lee County, including Ft. Myers Beach, still don't have power and running water.
Access across the Sanibel Causeway remains limited and not all schools have reopened.
According to FEMA, more than $1.2 billion in federal grants, disaster loans and flood insurance payments have been made to the state of Florida and households.
Now, whether the aid is enough or is being distributed fairly depends on who you ask.
MARK WEEKLY, HOME DESTROYED BY HURRICANE IAN: We've gotten some assistance from FEMA. I don't know what that assistance was, but they sent us a check for about $40,000, which included two months of lodging.
JONES: This is home. Do you want to start over when you're 63-years- old?
SUAREZ: Judy Jones said she dropped her homeowner's insurance eight years ago when she could no longer afford it but kept her flood policy.
JONES: But yet, the people next door, who don't have insurance, FEMA came and cut them a large check already in three days. So it's like, if you don't have insurance, you seem to get more than if you do have insurance.
SUAREZ: She's relying on volunteers to help clear up the house she moved into 30 years ago. JONES: Because you're starting over with everything in your life.
Ninety-five percent of my stuff is gone. You have nowhere to turn as far as a guide to what you're supposed to do.
SUAREZ (on camera): So when folks say it's been too slow, what's your answer to that?
ASHLEY DUCKETT, HOMEOWNERS INSURANCE AGENT: Things take time. I feel confident that our carriers are going to do what they came here to do, and that's ensure and make people whole again and, you know, make it as less painful as possible.
(END VIDEOTAPE)
BROWN: Carlos Suarez reporting.
[17:54:50]
And still ahead tonight on this Saturday, tragedy strikes a packed Halloween celebration in North Korea. More than 140 people have been killed. CNN is live in Seoul on the search for answers into what happened, next.
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BROWN: One lucky winner tonight could take home -- get this -- over $825 million. This comes after Wednesday's Powerball drawing had no winner.
[17:59:57]
But that means tonight's big prize will be the second-largest in Powerball history. The cash value of tonight's prize is over $383 million. And the odds of winning are just one in 292 million.