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Lou Dobbs Tonight
Bush Backs Spy Czar Recommendation; New York, New Jersey Step Up Security
Aired August 02, 2004 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN ANCHOR: Tonight, President Bush backs a new spy czar to oversee America's intelligence agencies.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're a nation in danger. We're doing everything we can in our power to confront the danger.
(END VIDEO CLIP)
PILGRIM: America on Alert: Police step up security in New York, Washington and New Jersey. Senators Susan Collins and Joe Lieberman will join me. I will also talk with terrorism expert Bruce Hoffman.
In Middle Class Squeeze, layoffs soared in the past three years. Overseas outsourcing is one reason.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: These underlying problems of instability and insecurity seem to be growing worse.
(END VIDEO CLIP)
PILGRIM: And Congress pushes forward with an astonishing new tax giveaway without any hearings or debate. It's for owners of professional sports franchises.
ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, August 2. Here now for an hour of news, debate and opinion, sitting in for Lou Dobbs who is on vacation, Kitty Pilgrim.
PILGRIM: Good evening. President today endorsed two of the most critical recommendations of the September 11 commission. The president said he supports the appointment of a national intelligence director and the creation of a new counterterrorism center.
The president's announcement comes one day after the government ordered new security measures to protect Washington, New York and New Jersey.
Elaine Quijano has our report from the White House -- Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Kitty, President Bush says some reforms have already been put into place under his administration. He cites the creation of the Homeland Security Department and also moves towards better information-sharing between the FBI and the CIA.
But he also says that he agrees with two of the key recommendation by the September 11 panel, and, today, he moved forward, asking Congress to create a new national intelligence director and also called for establishing a national counterterrorism center, as the panel recommended.
Now senior administration officials say the new director would coordinate 15 intelligence agencies, now a job handled by the head of the CIA, but in a departure from the commission's recommendation, Mr. Bush said the new position should remain outside the White House, in part to ensure autonomy.
BUSH: I don't think the person ought to be a member of my Cabinet. I will hire the person, and I can fire the person. It's just -- any president would -- that's how you have accountability in government.
But I don't think that the office ought to be in the White House, however. I think it ought to be a stand-alone group to better coordinate particularly between foreign intelligence and domestic intelligence matters.
QUIJANO: Now all of this happening against the backdrop of the November elections, of course, just a few months away, but White House Chief of Staff Andy Card, when asked about the role politics played, said the president's moves had nothing to do with politics.
ANDREW CARD, WHITE HOUSE CHIEF OF STAFF: This has nothing to do with politics. This has to do with better protecting the homeland and making sure that the resources of our intelligence community are well- coordinated so that the president can have the best information available to defeat terrorism.
QUIJANO: Now, as for whether or not this new intelligence czar would have budgetary authority, White House officials say that this person would have significant input, but they also point out that it would require Congress to change a law in order that this person have a full budgetary authority.
Also, they point out that currently that authority is now mainly in the hands of the Pentagon, also, though, shared by the CIA as well as the Department of Homeland Security -- Kitty.
PILGRIM: Thanks very much.
Elaine Quijano.
The president's intelligence reforms will require a major overhaul of the 1947 National Security Act, but Congress is in recess for the summer, and lawmakers will be unable to consider any reforms until September. Meanwhile, members of the 9/11 commission are pressing for quick action.
Congressional Correspondent Ed Henry reports.
(BEGIN VIDEOTAPE)
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): 9/11 commissioners believe President Bush took a strong first step, but they urged Congress to act quickly, especially in the wake of the latest warnings of terrorist attacks.
TIMOTHY ROEMER (D), 9/11 COMMISSIONER MEMBER: I can't think of a higher priority than implementing some of these reforms quickly and smartly and efficiently. Al Qaeda is not on a vacation schedule.
HENRY: Even before the threat level was raised, 9/11 commission chairman Thomas Kean spoke of the imminent danger. He testified Friday at the first of a slew of rare summer hearings on Capitol Hill.
THOMAS KEAN (R), 9/11 COMMISSION CHAIRMAN: It is an emergency. There's an enemy out there who is planning, as we meet here, to attack us.
HENRY: Commissioners will start hitting the road nationwide Tuesday to whip up support for their proposals. Since it's an election year, they want to keep the heat on lawmakers.
ROEMER: Well, I would strongly encourage the Congress to work in a bipartisan way to try to get a number of these recommendations, many of which are not new, implemented and protect this country so that when they run for reelection in November, they can run with a good conscience, fulfilling their job description and job responsibilities to defend and protect this great condition.
HENRY: Democratic nominee John Kerry wants Congress called back for a special session to follow up hearings with legislative action this month. The president disagrees.
BUSH: Congress has been thinking about some of these ideas. They can think about them over August and come back and act on them in September.
HENRY: The president prodded Congress to improve its own handling of intelligence rather than simply shaking up the executive branch.
BUSH: There are too many committees with overlapping jurisdiction, which wastes time and makes it difficult for meaningful oversight and reform.
(END VIDEOTAPE)
HENRY: House Democratic Leader Nancy Pelosi slammed the president saying it should not have taken him three years to create a national director of intelligence, and she once again called on Congress to get back into session in August.
But Republican leaders much prefer to just have hearings for now. The last time a special session was called in the summer was in 1994 to deal with the Clinton health-care reform. 9/11 commissioners, obviously, say they hope the reform effort this time around is much more successful than it was in the health-care bill, which, of course, fell apart -- Kitty.
PILGRIM: Thanks very much.
Ed Henry.
Police in Washington and New York areas today sharply increased security against possible truck bombs at the financial institutions identified as possible targets. Workers said that they are determined to carry on their normal routines.
Bill Tucker has the report.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): New Yorkers have lived under a level orange alert every day since 9/11. Monday was different, with specific threats to buildings in New York. The mayor rang the opening bell on the New York Stock Exchange, held a noon news conference with his police chief and the state's governor...
MAYOR MICHAEL BLOOMBERG (R), NEW YORK: New York City is not going to be cowed by the terrorists. Make no mistake about that. We're not going to spare any expense in protecting us, but, also, the people of New York City know that giving in to terrorism is exactly the wrong thing to do.
TUCKER: Wall Street got the message. Traders got down to business inside, while outside dancers performed. In midtown New York at Citibank headquarters, employees took the increased security in stride.
UNIDENTIFIED MALE: There's just some delays and, you know, lines waiting to get into the building, but, other than that, it's going OK.
TUCKER: To make their point clear, New York State Governor George Pataki and First Lady Laura Bush stopped by Citi's headquarters with Mayor Bloomberg.
In the nation's capital, home to two more of the targeted buildings, the mayor there delivered a similar message.
MAYOR ANTHONY WILLIAMS (D), WASHINGTON, D.C.: It's important that we let our citizens know that, look, we may be in this for the long haul, remain vigilant, remain alert, practice your family routines or your office routines, but, by all means, knowing that we're prepared, continue to go on about your daily business.
TUCKER: While urging citizens to keep their sense of normalcy, officials in Newark, New Jersey, emphasized the increased security measures.
GOV. JIM MCGREEVEY (D), NEW JERSEY: We have our canine, we have our bomb units out. Also, our state police are on ferries, on trains. And we also automatically implement every time we go to level orange certain safety protocols that have been adopted by the financial services industry.
TUCKER: And from the public, a straightforward message of defiance.
UNIDENTIFIED MALE: I'm not going to let somebody I don't know where they are and what they're doing stop me from doing my job.
(END VIDEOTAPE)
TUCKER: Now today is only the first day of this latest threat, and, as Secretary Ridge of the Homeland Security Department put it, "Well, we know where, but we don't know when."
Kitty, back to you.
PILGRIM: Thanks very much.
Bill Tucker.
Officials say recently arrested al Qaeda members in Pakistan have provided critical intelligence about the threat to this country. The government says the intelligence is detailed and very specific.
Justice Correspondent Kelli Arena reports -- Kelli.
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Kitty, senior sources tell CNN that that new stream of intelligence actually revealed more than the five targets that we've heard about, but the Department of Homeland Security has not yet decided to make them public.
Officials also tell CNN that there were 500 images on the computer seized from a suspected al Qaeda operative in Pakistan, including photographs, drawings, and layouts of various targets.
Now the officials say that some of those images date back a couple years, but some are from just a few months ago. Officials say that the FBI is involved in several investigations as a result of that new intelligence, but they say there's nothing indicating a timeframe for an attack.
(BEGIN VIDEO CLIP)
TOM RIDGE, SECRETARY OF HOMELAND SECURITY: It certainly indicates that they've taken a long, hard look at several sites. That, taken in conjunction with the continuous reference to trying to undermine our democratic process, there was no mention of when an attack could occur, but we are -- we don't have the luxury of guessing.
(END VIDEO CLIP)
ARENA: Investigators are also trying to find out who carried out the surveillance by scanning employee and visitors records from the various sites and to determine whether those individuals are still in the United States. Officials expect the even tighter security to last at least until the November elections.
(BEGIN VIDEO CLIP)
CHIEF CHARLES RAMSEY, D.C. METROPOLITAN POLICE: We haven't been given any length of time, but I suspect at least until the election, I would imagine, although I don't have any real concrete information around how long this is going to last.
(END VIDEO CLIP)
ARENA: The level of detail in the surveillance records, while impressive, didn't come as a surprise to counterterrorism officials. Operatives noted the location of security desks and cameras, even the number of people who walked outside buildings on a given day.
And al Qaeda has been just as thorough in planning in the past and, as terror experts point out, Kitty, extremely flexible in adapting to new security measures. They say you harden one target, and al Qaeda will plan to attack another.
Back to you.
PILGRIM: All right. Thanks very much.
Kelli Arena.
Up next, terrorism analyst Bruce Hoffman will give us his assessment of the threat of another al Qaeda attack.
Also, the president backs a new spy czar. Senators Susan Collins and Joe Lieberman will join me.
Plus, where's the convention bounce? Senator Kerry is still in a tight race with President Bush.
And Middle Class Squeeze: shocking new figures on the numbers of layoffs in the past three years.
(COMMERCIAL BREAK)
PILGRIM: My guest says the latest terror warning enables law- enforcement agencies to concentrate their resources. He says intelligence officers must now determine when al Qaeda plans to attack.
Bruce Hoffman is a senior terrorism analyst at the Rand Corporation. He's also a senior fellow in the Combating Terrorism Center at the U.S. Military Academy, and he joins us tonight from Los Angeles.
And thanks very much for joining us.
BRUCE HOFFMAN, RAND CORPORATION: Thank you.
PILGRIM: You know, it's very hard to predict when. How do you do that? Is there a way to do it? HOFFMAN: It's very difficult in this instance. What we know from past al Qaeda behavior is there is often a very long lead time. In other words, the reconnaissance and surveillance could have taken years, as well as the planning and plotting.
So the challenge now -- we've put one piece of this puzzle we've sort of solved or identified, which is that they were planning and they were plotting these attacks. The question is where in their operational continuum was the attack. Was it imminent? Was it some time off?
And that, I think, are the bits of the puzzle that our law- enforcement authorities and intelligence analysts will be searching to find now.
PILGRIM: One of the things that strikes me is that they are connecting quite a few dots in this particular warning. Does that strike you as different from previous?
HOFFMAN: It does, and I think that's the good news, in that we've at least lengthened the lag time that al Qaeda needs to carry out operations and been able to use that lengthening to interject, to identify exactly when they are planning operations.
But I think, as good as that is, what's worrisome is that three years into the war on terrorism, the tremendous damage we've inflicted on al Qaeda, the thousands of members that have been apprehended and imprisoned or killed worldwide, nonetheless, this is still a very formidable, a very determined and a very resilient adversary.
PILGRIM: Now some of this information came from the cooperation with Pakistan. Isn't that a plus, and isn't that a victory of sorts?
HOFFMAN: Absolutely. Certainly, this is a vast improvement over the past when we were more complacent about our security, when we weren't watching this -- the terrorists engaged in reconnaissance and surveillance, but, at the same time, as important as this step forward is, we have to remember the terrorists are constantly learning from our advances and they're constantly attempting to identify new gaps in our security and exploit them.
So this is a never-ending process, and, as good as we are today, we have to ensure that we're just as good tomorrow and in the future.
PILGRIM: They also presumably learn from our news broadcasts. What should we do about tipping them off?
HOFFMAN: Well, here I think the news broadcasts serve two purposes. One could see it is tipping off, but, also, if we went about business as usual, as we did before September 11, when we were complacent about these threats and didn't take them as seriously, we send a message to terrorists inviting attack.
I think the fact that we're now not just vigilant, but demonstrating, in part through the reporting, how vigilant and how improved our resources and our assets are, I think that has an incalculable deterrent effect on the terrorists. They see that it's harder to attack and to plan and plot these attacks in the United States.
PILGRIM: The fact that we're broadcasting, the fact that we know that they've been doing surveillance -- do you think that helps, that they will be -- they will have to go deeper undercover and move back from what they've been doing.
HOFFMAN: Well, that certainly is the goal, to throw them off balance, to deter and interdict their plans, but what we have to be careful of is -- even though right now the focus has been proven yet again to be on New York and Washington, we can't wrap ourselves in a false blanket of security and say we may have thwarted their plots in those cities now, therefore the threat to the whole country recedes. We have to be, I think, just vigilant all the time. That's really the lesson of this latest intelligence coup.
PILGRIM: Bruce, what do you think of the position of the national intelligence director announced by President Bush today?
HOFFMAN: Well, specifically -- and this isn't evading your question -- I think it's a very complex issue, but what's very clear, with the information that's being uncovered and with the recommendations of the commission, is that we can't do business as usual; in other words, that we're facing a very different threat.
It's almost unprecedented that we have this kind of intelligence of terrorists actively plotting major attacks in the United States, and what that means is that the old national security architecture isn't as relevant as it once was to these new threats.
So, certainly, issues like a new national intelligence coordinator, a new threat integration center are very important as we move forward.
PILGRIM: Thanks very much.
Bruce Hoffman.
HOFFMAN: You're welcome.
PILGRIM: Thanks, Bruce.
That brings us to the subject of tonight's poll: Do you think a national intelligence czar would improve the nation's security? That's a yes or no vote. Cast your vote at cnn.com/lou. We'll bring you the results later in the broadcast.
Now let's look at tonight's thought, and tonight's thought is on liberty. "Liberty is the air that we Americans breathe. Our government is based on that belief that a people can be both strong and free, that civilized men need no restraint but that imposed by themselves against the abuse of freedom." And those are the words of President Franklin D. Roosevelt.
Now we bring you something light. Police increase the level of security at specific locations in New York and New Jersey today. Officials prepare to reopen one of the city's most famous landmarks, however, and, for the first time since September 11, the Statue of Liberty will be open to the public beginning tomorrow.
Visitors will be allowed to go as high as the pedestal, that's just below Lady Liberty's feet, and the stairs to the crown and the torch will remain closed. More than $7 million has been invested in new security measures, including better lighting and a new video system.
When we return, we'll talk to the chair and ranking member of the Senate Government Affairs Committee about the president's endorsement of a new spy czar. Senators Susan Collins and Joseph Lieberman are our guests next.
Plus, deadly coordinated church bombings in Iraq. Iraq's new government today blamed one of that country's most wanted radical Islamist terrorists.
And then, a new poll on the presidential election could indicate whether the Democratic Convention gave Senator Kerry a bounce in the polls, and we'll have a special report on that.
And then, why a multibillion-dollar corporate tax giveaway could make the wealthy owners of professional sports teams even richer.
Those stories and much more still ahead here tonight.
(COMMERCIAL BREAK)
ANNOUNCER: LOU DOBBS TONIGHT continues. Sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Returning now to our top story, President Bush today endorsed the 9/11 commission's proposal for a new national intelligence director and counterterrorism center.
Now, earlier today, I talked with the Ranking Democrat on the Governmental Affairs Committee, Senator Joseph Lieberman. I asked him whether he was satisfied with President Bush's proposals.
(BEGIN VIDEOTAPE)
SEN. JOE LIEBERMAN (D-CT), GOVERNMENTAL AFFAIRS COMMITTEE RANKING DEMOCRAT: I'm encouraged by the actions that the president announced today. Essentially, he's embraced the two major proposals of the 9/11 commission, national intelligence director and national counterterrorism center.
There still remain questions to be asked about what the president's proposing. How much authority will the national intelligence director have? The commission and I feel strongly that the director should have budgetary authority over all the agencies under him. Why? Because you can't be commander of the American intelligence forces and have them each reporting to somebody else and have their own source of funding. On the national counterterrorism center, the president seems not to want legislation to make it permanent. The commission -- and I agree -- believes that there should be legislation. But it's a good beginning, and we look forward to working with the White House and our colleagues here in Congress to get this done quickly, hopefully sometime in September.
PILGRIM: You were actually advocating that the post be created inside the White House. Is this an acceptable situation for you now?
LIEBERMAN: That's a question on which I've remained agnostic or open-minded. The commission recommends that the national intelligence director be in the White House.
I originally thought that the post should be a separate Cabinet- level office, so they would have equal status with some of the other Cabinet members, like Defense and State, that that person had to deal with. The commission felt strongly that the position should be in the White House.
The president seems to want to create it freestanding. We're holding a hearing tomorrow on our Governmental Affairs Committee with some of the people involved in this work every day, and that's one of the questions I want to ask them.
But the important point to me is to make sure that the national intelligence director is not just a title without power, but that he or she has the authority to bring the intelligence community together, to connect the dots, to overcome the refusal to share that was part of what made us vulnerable prior to September 11.
You know, last...
PILGRIM: The structural adjustment.
Let me just ask you -- you canceled your vacation this year to work with the Governmental Affairs Committee and to handle these very pressing issues. What do you hope to get done in the next week or two, during August, to ameliorate the situation that we're facing in this country now?
LIEBERMAN: Right. Senator Collins, the chair of the committee, I as the senior Democrat, put off our recess plans because -- recesses are great, political campaigns are important, but nothing's more important than responding to the 9/11 commission, closing the vulnerabilities that it has documented, particularly in the midst of the increased security alert based on very, very clear intelligence.
So we're going to hold some more hearings. I'm very glad that maybe our decision to start hearings early has set off a kind of rush of other congressional hearings. That's very important to get that over with in August, to get back in September, have the relevant committees report the legislation out.
And, you know, I have the goal to get this adopted before we break for the campaign. It's much more important than anything else that we could do for our country.
PILGRIM: Are you satisfied with the legislative pace that's being set now, as well as the fact that there may be a need for executive -- special executive orders to implement some of these decisions?
LIEBERMAN: Yes, this is moving a lot more rapidly than anybody would have guessed, and it's moving a lot more rapidly than Washington normally does, but these are not normal times, and, therefore, we cannot act normally. So I think we're moving rapidly.
My committee, our staff is going to be working over August, and we're going be ready to present a bill to our committee early in September and then hope that we can get it out to the full Senate a couple weeks after that. This is -- this is a time for extraordinary action, and I think everybody gets it.
You know, I speak to my constituents at home. They say, "It's nice to have you at home, Joe, but you ought to be in Washington."
PILGRIM: We personally are very happy you're there and that you took the time to speak to us.
Senator Joe Lieberman.
Thank you very much.
LIEBERMAN: A pleasure. Thank you.
(END VIDEOTAPE)
PILGRIM: And my next guest last week called a rare Senate hearing during the summer recess to address the 9/11 commission's findings. Senator Susan Collins of Maine is the chair of the Governmental Affairs Committee, and she joins me now from Washington.
Senator Collins, thanks so much for joining us.
SEN. SUSAN COLLINS (R-ME), GOVERNMENTAL AFFAIRS COMMITTEE CHAIR: My pleasure.
PILGRIM: The president proposed the creation of a national intelligence director, also a counterterrorism center. How do you feel about these measures today?
COLLINS: I'm delighted that the president has taken such swift and decisive action in response to the commission's recommendations. I believe that the president has taken the right steps in endorsing the national intelligence director and in creating the national counterterrorism center. Both are key recommendations of the commission and build upon reforms that the administration has already implemented.
PILGRIM: Let me ask you a question I asked Senator Lieberman. Do -- are you satisfied now at the pace at which we are moving? You were very forthright in saying we had to move very quickly. Are you convinced we're doing -- we're on track at this point?
COLLINS: We are on track. Senator Lieberman and I held the first congressional hearing to receive testimony from the chairman and the vice chairman of the commission last Friday. We have another hearing scheduled for tomorrow. We have two more hearings scheduled for later this month.
And that's appropriate because the threat is an urgent one, and we need to act without undue delay. We have to be careful that we get this right. We have to move, however, with speed, but not with haste.
PILGRIM: Some of the Senate committee members -- most of them -- voice support for the 9/11 panel recommendations, but there were some sticking points. What are the problem areas, and where will you have trouble? What areas will you have trouble getting done?
COLLINS: Well, I think this task in many ways is a challenging one. Massive reorganizations are always met with resistance among those who are being reorganized, but the stakes are really too high to let power struggles or turf battles doom these needed reforms.
There are, however, a lot of thorny issues. For example, should the new intelligence director be located in the White House, in the executive Office of the President as recommended by the commission, or should there be some distance there to ensure independence as the president has proposed?
That's one of the very difficult philosophical and practical issues that the committee will be dealing with.
PILGRIM: One of the things touched on in today's discussion over this was how much should an executive order play into this? How much power do you think the President should have independent of any congressional forum?
COLLINS: I'm pleased that the President is proceeding with implementing as many of the recommendations as he can through executive orders and other administrative actions.
However, I agree with my colleague, Joe Lieberman, that it is important to enshrine in law many of the major reforms, and indeed the President specifically asked Congress to pass legislation creating the national intelligence director. I think we need to do that with the national counterterrorism center as well.
PILGRIM: All right. Thank you very much for joining us tonight. Senator Susan Collins, and good luck with your work, Senator.
COLLINS: Thank you.
PILGRIM: A reminder now to vote in tonight's poll: do you think a national intelligence czar would improve the nation's security? That's a yes or no vote. Cast your vote at cnn.com/Lou. We'll bring you the results later in the broadcast.
Now, in Iraq today, the United States-led multinational force, denied reports that it launched an operation against radical Shiite cleric, Muqtada al-Sadr. Al-Sadr's spokesmen claim the U.S. and Iraqi forces opened fired on the cleric's home in Najaf, launching a gun battle that lasted for hours.
Also today Iraq's new government blamed a series of church bombings on radical Islamist Abu Musab al-Zarqawi. The bombings yesterday in Baghdad and Mosul killed at least seven people and wounded more than 60.
Senator John Kerry said today the White House is not moving fast enough to protect Americans against terrorism. Senator Kerry campaigned in Michigan and called on President Bush to take action. Dana Bash has the report.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CORRESPONDENT (voice-over): Senator Kerry is making his way through Michigan now at a rally in Grand Rapids. And he talked about the news of the day which, of course, is the President's ideas for reforming the intelligence agencies. He called those ideas too little too late, and he pointed to the new terror alert which both he and his running mate have been briefed on as the latest example of how urgent the need for reform is.
And the Senator, whose own absence in the Senate, both in votes and debate, have been noted this year, said it's the President's job to call Congress back from summer recess for a special session to get this done now.
KERRY: If we're at war and it's so urgent, we shouldn't be waiting. We ought to get Congress back and get the job done right now and make America safer.
BASH: Kerry said he would be there if needed for the important debates and votes if this happened. Now, the Kerry campaign says they understand that even their internal polling shows that he's down about 10 points against the President in stewardship against terrorism, however, they say they are determined not to feed the national security issue to Mr. Bush.
And the Senator kept up, even stepped up to the rhetoric against the President on terrorism. He talked about missteps by the President in the war on terrorism over the last three and a half years saying the White House policies are encouraging terrorism.
KERRY: I believe that I can be more effective on the war on terror than George Bush is. I know I can fight a more effective war.
Lee Hamilton, the co-chairman of the 9/11 Commission has said this administration is not moving with the urgency necessary to respond to our needs. I believe this administration and its policies is actually encouraging the recruitment of terrorists.
BASH: The Kerry line which he's pushing, not just here at this rally, but earlier today with firefighters is that America is safer, but not safe enough, and that he is the guy, not the President, to do the job to make America safer. The Bush campaign points out that many of the policies that the senator is pushing have already been enacted.
Privately, Kerry campaign aides acknowledge the fact that despite his tough rhetoric, they have to be careful with the politics of terrorism. That's why you saw the Senator step away from any comment by Governor Howard Dean, for example, that this terror alert was political motivated.
Dana Bash, CNN, Grand Rapids, Michigan.
(END VIDEOTAPE)
PILGRIM: Vice President Cheney said today the White House is doing everything in its power to protect Americans from terrorism. The Vice President spoke to hundreds of troops at Peterson Air Force Base near Colorado Springs.
But tonight, Cheney is making a campaign stop in Lubbock, Texas. He is expected to campaign in four more states over the next few days.
A new CNN/USA Today gallop poll on the presidential election finds that it is closer than ever. And that is despite some expectations for a post-Convention bounce for Senator Kerry. Bill Schneider has the report.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): What happened to the convention bounce? Before the convention, John Kerry had a four-point lead over President Bush among registered voters. Now, the race is tied: Kerry down one point, Bush up three.
This is the first Democratic Convention since 1972 that did not give the nominee any boost in the polls. That was the year when everything went wrong for George McGovern. Democrats say they're not surprised.
GOV. JENNIFER GRANHOLM (D), MICHIGAN: Everybody knew that going into the convention, that because the electorate is so polarized, because there's only about 6 percent or so that are undecided, that there would not be a significant bounce after this convention.
SCHNEIDER: She has a point. This year, Democratic primary voters shut down the nominating process earlier than ever, and rallied behind Kerry. They gave him record amounts of money. The challenger was already running neck and neck with the incumbent president. Interest in the election is extraordinarily high, and the number of undecided voters is unusually small. People were certainly watching.
Four years ago, 55 percent of voters said they watched some or all of the convention that nominated Al Gore. This year, more than 60 percent said they watched the convention. The effect was to rally partisans on both sides. The number of Democrats who said they were more enthusiastic than usual about voting this year jumped six points, from 70 percent before the convention to 76 percent afterwards.
But Republicans were even more energized by what they saw in Boston: 11 points up. Favorable opinions of Kerry went up slightly, but so did favorable opinions of Bush. That could be the price Democrats paid for their decision to tone down the personal attacks on Bush at the convention. The President suffered no political damage. Despite their low expectations, Democrats have to be frustrated.
KERRY: All of these polls, I think, are so wacky, because frankly they don't know what the political dynamic is this year.
(END VIDEOTAPE)
SCHNEIDER: All those speeches, all the hoopla, all those balloons, and what happened? According to the poll, not much. Among voters interviewed on Friday, the day after Kerry's acceptance speech, the poll shows Kerry did have a five-point lead, but it quickly disappeared on Saturday and Sunday. The shortest convention bounce on record; more like a convention twitch -- Kitty.
PILGRIM: Bill, do you think there's too much emphasis on this bounce?
SCHNEIDER: Yes. I think there's a lot too much emphasis on the bounce, but it does raise an interesting issue. What are the conventions for? I mean, they're promoting a candidate. They're selling a product and these polls indicate: well, they didn't sell very well.
And cities that invite conventions have also made a discovery: that it's not particularly good for business. Boston discovered that; Los Angeles. They don't really bring in a lot of money, and the networks, the broadcast networks don't want to cover them. So sooner or later somebody is going to ask a question: what are we doing this for?
PILGRIM: But not this year, right, Bill?
SCHNEIDER: Not this year.
PILGRIM: All right. Thanks very much. Bill Schneider.
Now, a look at some of your thoughts. Many of you wrote in about the recent terror warnings.
John of New Jersey writes: "Beefing up security after the latest terror alert while leaving our borders unguarded is like closing the door after the thief has entered. Does this make sense or am I missing something?"
And Louis from Pennsylvania: "I am perplexed why the Bush administration has authorized a heightened terror alert. If the government has compelling intelligence that an attack on the United States is imminent, what are Americans going to do with that information?"
Leslie of Ohio: "There is a way to control terrorists and illegal aliens in the United States. We need to go with a national ID card system. That's the only way to keep track of everyone. The card could be scanned to make sure of the person's identify and to see if there are any outstanding warrants."
And we absolutely love hearing from you. Send us your thoughts at LouDobbs@cnn.com.
Still to come tonight: the Middle Class Squeeze. Millions of American workers are forced to settle for low-paying, low quality jobs just to get by. We'll have a special report.
And then a massive tax giveaway for some of the country's wealthiest business owners. We'll have that story.
And the first tropical storm of the season is barreling up the Atlantic Coast tonight and gaining strength. And we'll tell you where and when it's likely to hit.
(COMMERCIAL BREAK)
PILGRIM: Authorities in Paraguay tonight are investigating the cause of a supermarket fire that killed more than 300 people over the weekend in the capital city of Asuncion. Officials say more than one hundred people were also injured, and authorities say exploding gas canisters may have sparked the fire. Witnesses claim some of the exits of the building were locked, trapping hundreds of people inside, but building owners deny those charges.
In Bangladesh, the worst floods in 15 years have killed more than 1,000 people. Ten million people are also left homeless. Health officials say that disease is beginning to spread because of a shortage of water-purifying tablets. Authorities are stepping up the distribution of food and drinking water. UNICEF is working to raise about $13 million in aid.
In the United States, the National Weather Service has issued a hurricane warning for parts of the Carolinas as tropical storm Alex heads for the coast. Now, the storm is expected to become a hurricane in the next 24 hours. Forecasters say the center of Alex should pass close to North Carolina's Outer Banks. That's tomorrow.
We've reported extensively on a controversial bill before Congress that would grant corporate America billions of dollars in tax breaks. Democrats call the bill a Christmas tree, full of presents for big business, but even those Democrats missed a key sentence that could mean a multimillion dollar windfall for the owners of professional sports teams. Peter Viles reports.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): With lost jobs a campaign issue, it's no surprise Congress has a response, what the House calls the American Jobs Creation Act of 2004. But the bill is truly a hodgepodge of special tax breaks and buyouts, nearly $10 billion for tobacco farmers, and one change that even critics of the bill missed. As the "New York Times" reports today, the bill would effectively increase the value of pro sports franchises.
JIM MCDERMOTT, WASHINGTON DEMOCRATIC REPRESENTATIVE: They rammed that bill through it. It was pretty clear it was Christmas for a whole lot of companies in the middle of June. Most of us voted no against it because we didn't know what was in it. This is a provision I had absolutely no understanding at all. I picked up the "Times" today and I said, "My God, I missed another one."
VILES: What McDermott missed was a single sentence that would change depreciation rules for sports teams. New owners could write off the full value of their teams over 15 years. Analysts say that would make teams more valuable if they're sold, benefiting any current owner who decides to sell, whether it's George Steinbrenner, owner of the Yankees, Jerry Jones, owner of the Cowboys, or Internet billionaire, Mark Cuban, owner of the Dallas Mavericks.
In an e-mail response to CNN, Cuban said the difference in depreciation won't matter to most owners. He added, "It only matters if you sell, and I have no intention of selling." So why bother with the change?
Well, supporters say it's pro-business and it brings in new revenue. Owners want to end years of bickering with the IRS about depreciation rules, and the government thinks it will get new revenue, $382 million, over 10 years.
(END VIDEOTAPE)
VILES: Both the House and the Senate agree on this change. The larger question is whether this 900-page monster of a tax bill will ever become law. The key issue there? The House and the Senate do not agree on how to structure that $10 billion tobacco buyout -- Kitty.
PILGRIM: Thanks very much. Pete Viles.
Coming up, putting the squeeze on the middle class: new information tonight that the recovery in the job market is not as strong as it may seem. And we'll have that report.
And saying so long to a horse who became a household name and won the hearts of millions. We'll have that story coming up.
(COMMERCIAL BREAK)
PILGRIM: The Labor Department released a disturbing new report on the state of the job market in this country. That report found that more than 11 million Americans lost their jobs between 2001 and 2003. Well, many of those workers have since found work. The new jobs are often lower paying and lower quality.
Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Andre Owens is looking up job leads at the District of Columbia's Employment Services. He was laid off from his nonprofit job 10 months ago. ANDRE OWENS, UNEMPLOYED WORKER: I've actually found the market to be quite frustrating. I've interviewed for a number of positions, but hadn't received a job offer yet.
SYLVESTER: A new study by the Bureau of Labor Statistics found layoffs in the last three years soared: nearly 11.5 million workers lost their jobs since President Bush took office. That's almost 9 percent of all adult job holders, the second highest level since the Great Depression.
PHILIP MATTERA. GOOD JOBS FIRST: And we're at a period now in which the economy was supposedly getting stronger as we recovered from the recession, but these underlying problems of instability and insecurity seem to be growing worse.
SYLVESTER: Manufacturing workers on the job for three years or longer were hit hardest, making up one-third of the displaced workers. But other industries felt the job squeeze: retail, professional business services and managerial positions. Labor groups claim greed and globalization as corporations have moved work overseas to lower wage countries.
JIM SCHOLLAERT, AMTAC: The trend seems to be driven by the new business model that so many of our corporations have embraced enthusiastically to move their production to china.
SYLVESTER: The survey found that while two-thirds of the unemployed workers were able to find work relatively quickly, 57 percent of those rehired took pay cuts in their new jobs.
JARED BERNSTEIN: Really what you're talking about now is not only a larger likelihood of job displacement, but a considerably larger likelihood of being rehired at a lower rate of pay.
(END VIDEOTAPE)
SYLVESTER: Economists say the survey provides evidence to back a troubling trend: the jobless recovery. In prior recessions, job growth improved considerably as the economy grew, but this time around, Kitty, the new jobs are only trickling in.
PILGRIM: Lisa, what do economists say it's going to take to turn the situation around?
SYLVESTER: Well, there has to be incentives for corporations to remain here to keep jobs in the United States. You'd have to take a look at the tax policy, for instance, and also rethinking some of the trade agreements. But many economists say unless there really is a reason for the corporations to stay put, they will take advantage of the lower wages in other countries -- Kitty.
PILGRIM: All right. Thanks very much. Lisa Sylvester.
Well, the most celebrated race horse in decades has run his last race. The owners of Smarty Jones today retired the winner of the Kentucky Derby and the Preakness Stakes. They say Smarty Jones has been suffering for months with chronic bruises on his hoofs.
In June, Smarty Jones came within a length of becoming the first horse to win the Triple Crown in 26 years and he has not run a race since his loss at the Belmont Stakes. Now, Smarty Jones will become a stud on a farm in Kentucky.
Let's take a look at some of your thoughts. And many of you wrote in about the Kerry-Edwards ticket.
Adam from Illinois writes: "I am sick of Republicans saying that Kerry is a flip-flopper. If anyone would like to see any additional flip-floppers, simply examine the voting records of every Senate and House member and also many presidents. There is no such thing as a politician that maintains the same position on the same issue for 20 years."
Bobbie of Illinois writes: "I don't understand how Kerry and Edwards can promise things they haven't produced while in Congress. After all, the president does not have a lot of power without Congress behind him."
Don of Texas, "I think it's time we drop the electoral vote for president in favor of the popular vote. It would put all people in all 50 states into play."
Do send us your thoughts, LouDobbs@cnn.com.
And still to come: terrorists threaten to strike the center of the American economy, but Wall Street is unfazed. Christine Romans will have a full report on the markets, next.
(COMMERCIAL BREAK)
PILGRIM: Warnings of a terrorist threat to financial institutions did not hurt the stock market today. The Dow rose almost 40 points, the NASDAQ and S&P gained almost 5, and Christine Romans is here with the markets.
CHRISTINE ROMANS, CNN CORRESPONDENT: Kitty, there were even calls for 100 point sell-off in the Dow, but how did investors respond to the breathless reporting of the terror warnings? They bought stocks. The Dow put together the fifth higher close in a row, its longest winning streak this year.
Even at its worse today, the Dow was only down 20 some points. The big banks and the Big Board aren't exactly surprising targets, traders say. And the Stock Exchange has been heavily protected now for three years.
And, the specificity of the warnings may actually have calmed investors' fears. Traders say it shows Homeland Security is working. In fact, traders at the NYSE were more concerned about what was happening inside the Stock Exchange because their livelihoods are at stake.
The NYSE announced today it will allow more electronic order processing, and that will take more trades out of the hands of the middlemen on the trading floor. It will save the big institutional investors millions of dollars a year and it is, by far, the biggest change in the 212-year history of the New York Stock Exchange.
PILGRIM: That's a big one. There was a great show of elected officials out in force today talking about how everything was being dealt with. Do you think that really helped the markets?
ROMANS: A lot of people say it did help the markets. And tomorrow you're going to have Tom Ridge at Citigroup Center here in Manhattan again with Mayor Bloomberg today greeting traders. They were walking in, John saying to Mayor Bloomberg, and a lot of folks said it was definitely a show of force. And the Dow closing higher on a day when a lot of people thought it would be a tough day. It wasn't at all.
PILGRIM: So, that's the good news. Thanks Christine.
Still ahead: the results of tonight's poll. First, a reminder to look at our Web site for the complete list of companies we've confirmed to be exporting America, at cnn.com/Lou.
(COMMERCIAL BREAK)
PILGRIM: Here are the results of tonight's poll. Do you think a national intelligence czar would improve the nation's security: 40 percent of you said yes, 60 percent said no.
Well, that is our show for tonight. Thanks for being with us.
Tomorrow we'll be joined by Steven Cole who's Managing Editor of "The Washington Post." And author of, "Ghost Wars: The Secret History of the CIA, Afghanistan and Bin Laden." We hope you'll join us for that.
For all of us here, good night from New York.
"ANDERSON COOPER 360" is next.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired August 2, 2004 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN ANCHOR: Tonight, President Bush backs a new spy czar to oversee America's intelligence agencies.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're a nation in danger. We're doing everything we can in our power to confront the danger.
(END VIDEO CLIP)
PILGRIM: America on Alert: Police step up security in New York, Washington and New Jersey. Senators Susan Collins and Joe Lieberman will join me. I will also talk with terrorism expert Bruce Hoffman.
In Middle Class Squeeze, layoffs soared in the past three years. Overseas outsourcing is one reason.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: These underlying problems of instability and insecurity seem to be growing worse.
(END VIDEO CLIP)
PILGRIM: And Congress pushes forward with an astonishing new tax giveaway without any hearings or debate. It's for owners of professional sports franchises.
ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, August 2. Here now for an hour of news, debate and opinion, sitting in for Lou Dobbs who is on vacation, Kitty Pilgrim.
PILGRIM: Good evening. President today endorsed two of the most critical recommendations of the September 11 commission. The president said he supports the appointment of a national intelligence director and the creation of a new counterterrorism center.
The president's announcement comes one day after the government ordered new security measures to protect Washington, New York and New Jersey.
Elaine Quijano has our report from the White House -- Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Kitty, President Bush says some reforms have already been put into place under his administration. He cites the creation of the Homeland Security Department and also moves towards better information-sharing between the FBI and the CIA.
But he also says that he agrees with two of the key recommendation by the September 11 panel, and, today, he moved forward, asking Congress to create a new national intelligence director and also called for establishing a national counterterrorism center, as the panel recommended.
Now senior administration officials say the new director would coordinate 15 intelligence agencies, now a job handled by the head of the CIA, but in a departure from the commission's recommendation, Mr. Bush said the new position should remain outside the White House, in part to ensure autonomy.
BUSH: I don't think the person ought to be a member of my Cabinet. I will hire the person, and I can fire the person. It's just -- any president would -- that's how you have accountability in government.
But I don't think that the office ought to be in the White House, however. I think it ought to be a stand-alone group to better coordinate particularly between foreign intelligence and domestic intelligence matters.
QUIJANO: Now all of this happening against the backdrop of the November elections, of course, just a few months away, but White House Chief of Staff Andy Card, when asked about the role politics played, said the president's moves had nothing to do with politics.
ANDREW CARD, WHITE HOUSE CHIEF OF STAFF: This has nothing to do with politics. This has to do with better protecting the homeland and making sure that the resources of our intelligence community are well- coordinated so that the president can have the best information available to defeat terrorism.
QUIJANO: Now, as for whether or not this new intelligence czar would have budgetary authority, White House officials say that this person would have significant input, but they also point out that it would require Congress to change a law in order that this person have a full budgetary authority.
Also, they point out that currently that authority is now mainly in the hands of the Pentagon, also, though, shared by the CIA as well as the Department of Homeland Security -- Kitty.
PILGRIM: Thanks very much.
Elaine Quijano.
The president's intelligence reforms will require a major overhaul of the 1947 National Security Act, but Congress is in recess for the summer, and lawmakers will be unable to consider any reforms until September. Meanwhile, members of the 9/11 commission are pressing for quick action.
Congressional Correspondent Ed Henry reports.
(BEGIN VIDEOTAPE)
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): 9/11 commissioners believe President Bush took a strong first step, but they urged Congress to act quickly, especially in the wake of the latest warnings of terrorist attacks.
TIMOTHY ROEMER (D), 9/11 COMMISSIONER MEMBER: I can't think of a higher priority than implementing some of these reforms quickly and smartly and efficiently. Al Qaeda is not on a vacation schedule.
HENRY: Even before the threat level was raised, 9/11 commission chairman Thomas Kean spoke of the imminent danger. He testified Friday at the first of a slew of rare summer hearings on Capitol Hill.
THOMAS KEAN (R), 9/11 COMMISSION CHAIRMAN: It is an emergency. There's an enemy out there who is planning, as we meet here, to attack us.
HENRY: Commissioners will start hitting the road nationwide Tuesday to whip up support for their proposals. Since it's an election year, they want to keep the heat on lawmakers.
ROEMER: Well, I would strongly encourage the Congress to work in a bipartisan way to try to get a number of these recommendations, many of which are not new, implemented and protect this country so that when they run for reelection in November, they can run with a good conscience, fulfilling their job description and job responsibilities to defend and protect this great condition.
HENRY: Democratic nominee John Kerry wants Congress called back for a special session to follow up hearings with legislative action this month. The president disagrees.
BUSH: Congress has been thinking about some of these ideas. They can think about them over August and come back and act on them in September.
HENRY: The president prodded Congress to improve its own handling of intelligence rather than simply shaking up the executive branch.
BUSH: There are too many committees with overlapping jurisdiction, which wastes time and makes it difficult for meaningful oversight and reform.
(END VIDEOTAPE)
HENRY: House Democratic Leader Nancy Pelosi slammed the president saying it should not have taken him three years to create a national director of intelligence, and she once again called on Congress to get back into session in August.
But Republican leaders much prefer to just have hearings for now. The last time a special session was called in the summer was in 1994 to deal with the Clinton health-care reform. 9/11 commissioners, obviously, say they hope the reform effort this time around is much more successful than it was in the health-care bill, which, of course, fell apart -- Kitty.
PILGRIM: Thanks very much.
Ed Henry.
Police in Washington and New York areas today sharply increased security against possible truck bombs at the financial institutions identified as possible targets. Workers said that they are determined to carry on their normal routines.
Bill Tucker has the report.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): New Yorkers have lived under a level orange alert every day since 9/11. Monday was different, with specific threats to buildings in New York. The mayor rang the opening bell on the New York Stock Exchange, held a noon news conference with his police chief and the state's governor...
MAYOR MICHAEL BLOOMBERG (R), NEW YORK: New York City is not going to be cowed by the terrorists. Make no mistake about that. We're not going to spare any expense in protecting us, but, also, the people of New York City know that giving in to terrorism is exactly the wrong thing to do.
TUCKER: Wall Street got the message. Traders got down to business inside, while outside dancers performed. In midtown New York at Citibank headquarters, employees took the increased security in stride.
UNIDENTIFIED MALE: There's just some delays and, you know, lines waiting to get into the building, but, other than that, it's going OK.
TUCKER: To make their point clear, New York State Governor George Pataki and First Lady Laura Bush stopped by Citi's headquarters with Mayor Bloomberg.
In the nation's capital, home to two more of the targeted buildings, the mayor there delivered a similar message.
MAYOR ANTHONY WILLIAMS (D), WASHINGTON, D.C.: It's important that we let our citizens know that, look, we may be in this for the long haul, remain vigilant, remain alert, practice your family routines or your office routines, but, by all means, knowing that we're prepared, continue to go on about your daily business.
TUCKER: While urging citizens to keep their sense of normalcy, officials in Newark, New Jersey, emphasized the increased security measures.
GOV. JIM MCGREEVEY (D), NEW JERSEY: We have our canine, we have our bomb units out. Also, our state police are on ferries, on trains. And we also automatically implement every time we go to level orange certain safety protocols that have been adopted by the financial services industry.
TUCKER: And from the public, a straightforward message of defiance.
UNIDENTIFIED MALE: I'm not going to let somebody I don't know where they are and what they're doing stop me from doing my job.
(END VIDEOTAPE)
TUCKER: Now today is only the first day of this latest threat, and, as Secretary Ridge of the Homeland Security Department put it, "Well, we know where, but we don't know when."
Kitty, back to you.
PILGRIM: Thanks very much.
Bill Tucker.
Officials say recently arrested al Qaeda members in Pakistan have provided critical intelligence about the threat to this country. The government says the intelligence is detailed and very specific.
Justice Correspondent Kelli Arena reports -- Kelli.
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Kitty, senior sources tell CNN that that new stream of intelligence actually revealed more than the five targets that we've heard about, but the Department of Homeland Security has not yet decided to make them public.
Officials also tell CNN that there were 500 images on the computer seized from a suspected al Qaeda operative in Pakistan, including photographs, drawings, and layouts of various targets.
Now the officials say that some of those images date back a couple years, but some are from just a few months ago. Officials say that the FBI is involved in several investigations as a result of that new intelligence, but they say there's nothing indicating a timeframe for an attack.
(BEGIN VIDEO CLIP)
TOM RIDGE, SECRETARY OF HOMELAND SECURITY: It certainly indicates that they've taken a long, hard look at several sites. That, taken in conjunction with the continuous reference to trying to undermine our democratic process, there was no mention of when an attack could occur, but we are -- we don't have the luxury of guessing.
(END VIDEO CLIP)
ARENA: Investigators are also trying to find out who carried out the surveillance by scanning employee and visitors records from the various sites and to determine whether those individuals are still in the United States. Officials expect the even tighter security to last at least until the November elections.
(BEGIN VIDEO CLIP)
CHIEF CHARLES RAMSEY, D.C. METROPOLITAN POLICE: We haven't been given any length of time, but I suspect at least until the election, I would imagine, although I don't have any real concrete information around how long this is going to last.
(END VIDEO CLIP)
ARENA: The level of detail in the surveillance records, while impressive, didn't come as a surprise to counterterrorism officials. Operatives noted the location of security desks and cameras, even the number of people who walked outside buildings on a given day.
And al Qaeda has been just as thorough in planning in the past and, as terror experts point out, Kitty, extremely flexible in adapting to new security measures. They say you harden one target, and al Qaeda will plan to attack another.
Back to you.
PILGRIM: All right. Thanks very much.
Kelli Arena.
Up next, terrorism analyst Bruce Hoffman will give us his assessment of the threat of another al Qaeda attack.
Also, the president backs a new spy czar. Senators Susan Collins and Joe Lieberman will join me.
Plus, where's the convention bounce? Senator Kerry is still in a tight race with President Bush.
And Middle Class Squeeze: shocking new figures on the numbers of layoffs in the past three years.
(COMMERCIAL BREAK)
PILGRIM: My guest says the latest terror warning enables law- enforcement agencies to concentrate their resources. He says intelligence officers must now determine when al Qaeda plans to attack.
Bruce Hoffman is a senior terrorism analyst at the Rand Corporation. He's also a senior fellow in the Combating Terrorism Center at the U.S. Military Academy, and he joins us tonight from Los Angeles.
And thanks very much for joining us.
BRUCE HOFFMAN, RAND CORPORATION: Thank you.
PILGRIM: You know, it's very hard to predict when. How do you do that? Is there a way to do it? HOFFMAN: It's very difficult in this instance. What we know from past al Qaeda behavior is there is often a very long lead time. In other words, the reconnaissance and surveillance could have taken years, as well as the planning and plotting.
So the challenge now -- we've put one piece of this puzzle we've sort of solved or identified, which is that they were planning and they were plotting these attacks. The question is where in their operational continuum was the attack. Was it imminent? Was it some time off?
And that, I think, are the bits of the puzzle that our law- enforcement authorities and intelligence analysts will be searching to find now.
PILGRIM: One of the things that strikes me is that they are connecting quite a few dots in this particular warning. Does that strike you as different from previous?
HOFFMAN: It does, and I think that's the good news, in that we've at least lengthened the lag time that al Qaeda needs to carry out operations and been able to use that lengthening to interject, to identify exactly when they are planning operations.
But I think, as good as that is, what's worrisome is that three years into the war on terrorism, the tremendous damage we've inflicted on al Qaeda, the thousands of members that have been apprehended and imprisoned or killed worldwide, nonetheless, this is still a very formidable, a very determined and a very resilient adversary.
PILGRIM: Now some of this information came from the cooperation with Pakistan. Isn't that a plus, and isn't that a victory of sorts?
HOFFMAN: Absolutely. Certainly, this is a vast improvement over the past when we were more complacent about our security, when we weren't watching this -- the terrorists engaged in reconnaissance and surveillance, but, at the same time, as important as this step forward is, we have to remember the terrorists are constantly learning from our advances and they're constantly attempting to identify new gaps in our security and exploit them.
So this is a never-ending process, and, as good as we are today, we have to ensure that we're just as good tomorrow and in the future.
PILGRIM: They also presumably learn from our news broadcasts. What should we do about tipping them off?
HOFFMAN: Well, here I think the news broadcasts serve two purposes. One could see it is tipping off, but, also, if we went about business as usual, as we did before September 11, when we were complacent about these threats and didn't take them as seriously, we send a message to terrorists inviting attack.
I think the fact that we're now not just vigilant, but demonstrating, in part through the reporting, how vigilant and how improved our resources and our assets are, I think that has an incalculable deterrent effect on the terrorists. They see that it's harder to attack and to plan and plot these attacks in the United States.
PILGRIM: The fact that we're broadcasting, the fact that we know that they've been doing surveillance -- do you think that helps, that they will be -- they will have to go deeper undercover and move back from what they've been doing.
HOFFMAN: Well, that certainly is the goal, to throw them off balance, to deter and interdict their plans, but what we have to be careful of is -- even though right now the focus has been proven yet again to be on New York and Washington, we can't wrap ourselves in a false blanket of security and say we may have thwarted their plots in those cities now, therefore the threat to the whole country recedes. We have to be, I think, just vigilant all the time. That's really the lesson of this latest intelligence coup.
PILGRIM: Bruce, what do you think of the position of the national intelligence director announced by President Bush today?
HOFFMAN: Well, specifically -- and this isn't evading your question -- I think it's a very complex issue, but what's very clear, with the information that's being uncovered and with the recommendations of the commission, is that we can't do business as usual; in other words, that we're facing a very different threat.
It's almost unprecedented that we have this kind of intelligence of terrorists actively plotting major attacks in the United States, and what that means is that the old national security architecture isn't as relevant as it once was to these new threats.
So, certainly, issues like a new national intelligence coordinator, a new threat integration center are very important as we move forward.
PILGRIM: Thanks very much.
Bruce Hoffman.
HOFFMAN: You're welcome.
PILGRIM: Thanks, Bruce.
That brings us to the subject of tonight's poll: Do you think a national intelligence czar would improve the nation's security? That's a yes or no vote. Cast your vote at cnn.com/lou. We'll bring you the results later in the broadcast.
Now let's look at tonight's thought, and tonight's thought is on liberty. "Liberty is the air that we Americans breathe. Our government is based on that belief that a people can be both strong and free, that civilized men need no restraint but that imposed by themselves against the abuse of freedom." And those are the words of President Franklin D. Roosevelt.
Now we bring you something light. Police increase the level of security at specific locations in New York and New Jersey today. Officials prepare to reopen one of the city's most famous landmarks, however, and, for the first time since September 11, the Statue of Liberty will be open to the public beginning tomorrow.
Visitors will be allowed to go as high as the pedestal, that's just below Lady Liberty's feet, and the stairs to the crown and the torch will remain closed. More than $7 million has been invested in new security measures, including better lighting and a new video system.
When we return, we'll talk to the chair and ranking member of the Senate Government Affairs Committee about the president's endorsement of a new spy czar. Senators Susan Collins and Joseph Lieberman are our guests next.
Plus, deadly coordinated church bombings in Iraq. Iraq's new government today blamed one of that country's most wanted radical Islamist terrorists.
And then, a new poll on the presidential election could indicate whether the Democratic Convention gave Senator Kerry a bounce in the polls, and we'll have a special report on that.
And then, why a multibillion-dollar corporate tax giveaway could make the wealthy owners of professional sports teams even richer.
Those stories and much more still ahead here tonight.
(COMMERCIAL BREAK)
ANNOUNCER: LOU DOBBS TONIGHT continues. Sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Returning now to our top story, President Bush today endorsed the 9/11 commission's proposal for a new national intelligence director and counterterrorism center.
Now, earlier today, I talked with the Ranking Democrat on the Governmental Affairs Committee, Senator Joseph Lieberman. I asked him whether he was satisfied with President Bush's proposals.
(BEGIN VIDEOTAPE)
SEN. JOE LIEBERMAN (D-CT), GOVERNMENTAL AFFAIRS COMMITTEE RANKING DEMOCRAT: I'm encouraged by the actions that the president announced today. Essentially, he's embraced the two major proposals of the 9/11 commission, national intelligence director and national counterterrorism center.
There still remain questions to be asked about what the president's proposing. How much authority will the national intelligence director have? The commission and I feel strongly that the director should have budgetary authority over all the agencies under him. Why? Because you can't be commander of the American intelligence forces and have them each reporting to somebody else and have their own source of funding. On the national counterterrorism center, the president seems not to want legislation to make it permanent. The commission -- and I agree -- believes that there should be legislation. But it's a good beginning, and we look forward to working with the White House and our colleagues here in Congress to get this done quickly, hopefully sometime in September.
PILGRIM: You were actually advocating that the post be created inside the White House. Is this an acceptable situation for you now?
LIEBERMAN: That's a question on which I've remained agnostic or open-minded. The commission recommends that the national intelligence director be in the White House.
I originally thought that the post should be a separate Cabinet- level office, so they would have equal status with some of the other Cabinet members, like Defense and State, that that person had to deal with. The commission felt strongly that the position should be in the White House.
The president seems to want to create it freestanding. We're holding a hearing tomorrow on our Governmental Affairs Committee with some of the people involved in this work every day, and that's one of the questions I want to ask them.
But the important point to me is to make sure that the national intelligence director is not just a title without power, but that he or she has the authority to bring the intelligence community together, to connect the dots, to overcome the refusal to share that was part of what made us vulnerable prior to September 11.
You know, last...
PILGRIM: The structural adjustment.
Let me just ask you -- you canceled your vacation this year to work with the Governmental Affairs Committee and to handle these very pressing issues. What do you hope to get done in the next week or two, during August, to ameliorate the situation that we're facing in this country now?
LIEBERMAN: Right. Senator Collins, the chair of the committee, I as the senior Democrat, put off our recess plans because -- recesses are great, political campaigns are important, but nothing's more important than responding to the 9/11 commission, closing the vulnerabilities that it has documented, particularly in the midst of the increased security alert based on very, very clear intelligence.
So we're going to hold some more hearings. I'm very glad that maybe our decision to start hearings early has set off a kind of rush of other congressional hearings. That's very important to get that over with in August, to get back in September, have the relevant committees report the legislation out.
And, you know, I have the goal to get this adopted before we break for the campaign. It's much more important than anything else that we could do for our country.
PILGRIM: Are you satisfied with the legislative pace that's being set now, as well as the fact that there may be a need for executive -- special executive orders to implement some of these decisions?
LIEBERMAN: Yes, this is moving a lot more rapidly than anybody would have guessed, and it's moving a lot more rapidly than Washington normally does, but these are not normal times, and, therefore, we cannot act normally. So I think we're moving rapidly.
My committee, our staff is going to be working over August, and we're going be ready to present a bill to our committee early in September and then hope that we can get it out to the full Senate a couple weeks after that. This is -- this is a time for extraordinary action, and I think everybody gets it.
You know, I speak to my constituents at home. They say, "It's nice to have you at home, Joe, but you ought to be in Washington."
PILGRIM: We personally are very happy you're there and that you took the time to speak to us.
Senator Joe Lieberman.
Thank you very much.
LIEBERMAN: A pleasure. Thank you.
(END VIDEOTAPE)
PILGRIM: And my next guest last week called a rare Senate hearing during the summer recess to address the 9/11 commission's findings. Senator Susan Collins of Maine is the chair of the Governmental Affairs Committee, and she joins me now from Washington.
Senator Collins, thanks so much for joining us.
SEN. SUSAN COLLINS (R-ME), GOVERNMENTAL AFFAIRS COMMITTEE CHAIR: My pleasure.
PILGRIM: The president proposed the creation of a national intelligence director, also a counterterrorism center. How do you feel about these measures today?
COLLINS: I'm delighted that the president has taken such swift and decisive action in response to the commission's recommendations. I believe that the president has taken the right steps in endorsing the national intelligence director and in creating the national counterterrorism center. Both are key recommendations of the commission and build upon reforms that the administration has already implemented.
PILGRIM: Let me ask you a question I asked Senator Lieberman. Do -- are you satisfied now at the pace at which we are moving? You were very forthright in saying we had to move very quickly. Are you convinced we're doing -- we're on track at this point?
COLLINS: We are on track. Senator Lieberman and I held the first congressional hearing to receive testimony from the chairman and the vice chairman of the commission last Friday. We have another hearing scheduled for tomorrow. We have two more hearings scheduled for later this month.
And that's appropriate because the threat is an urgent one, and we need to act without undue delay. We have to be careful that we get this right. We have to move, however, with speed, but not with haste.
PILGRIM: Some of the Senate committee members -- most of them -- voice support for the 9/11 panel recommendations, but there were some sticking points. What are the problem areas, and where will you have trouble? What areas will you have trouble getting done?
COLLINS: Well, I think this task in many ways is a challenging one. Massive reorganizations are always met with resistance among those who are being reorganized, but the stakes are really too high to let power struggles or turf battles doom these needed reforms.
There are, however, a lot of thorny issues. For example, should the new intelligence director be located in the White House, in the executive Office of the President as recommended by the commission, or should there be some distance there to ensure independence as the president has proposed?
That's one of the very difficult philosophical and practical issues that the committee will be dealing with.
PILGRIM: One of the things touched on in today's discussion over this was how much should an executive order play into this? How much power do you think the President should have independent of any congressional forum?
COLLINS: I'm pleased that the President is proceeding with implementing as many of the recommendations as he can through executive orders and other administrative actions.
However, I agree with my colleague, Joe Lieberman, that it is important to enshrine in law many of the major reforms, and indeed the President specifically asked Congress to pass legislation creating the national intelligence director. I think we need to do that with the national counterterrorism center as well.
PILGRIM: All right. Thank you very much for joining us tonight. Senator Susan Collins, and good luck with your work, Senator.
COLLINS: Thank you.
PILGRIM: A reminder now to vote in tonight's poll: do you think a national intelligence czar would improve the nation's security? That's a yes or no vote. Cast your vote at cnn.com/Lou. We'll bring you the results later in the broadcast.
Now, in Iraq today, the United States-led multinational force, denied reports that it launched an operation against radical Shiite cleric, Muqtada al-Sadr. Al-Sadr's spokesmen claim the U.S. and Iraqi forces opened fired on the cleric's home in Najaf, launching a gun battle that lasted for hours.
Also today Iraq's new government blamed a series of church bombings on radical Islamist Abu Musab al-Zarqawi. The bombings yesterday in Baghdad and Mosul killed at least seven people and wounded more than 60.
Senator John Kerry said today the White House is not moving fast enough to protect Americans against terrorism. Senator Kerry campaigned in Michigan and called on President Bush to take action. Dana Bash has the report.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CORRESPONDENT (voice-over): Senator Kerry is making his way through Michigan now at a rally in Grand Rapids. And he talked about the news of the day which, of course, is the President's ideas for reforming the intelligence agencies. He called those ideas too little too late, and he pointed to the new terror alert which both he and his running mate have been briefed on as the latest example of how urgent the need for reform is.
And the Senator, whose own absence in the Senate, both in votes and debate, have been noted this year, said it's the President's job to call Congress back from summer recess for a special session to get this done now.
KERRY: If we're at war and it's so urgent, we shouldn't be waiting. We ought to get Congress back and get the job done right now and make America safer.
BASH: Kerry said he would be there if needed for the important debates and votes if this happened. Now, the Kerry campaign says they understand that even their internal polling shows that he's down about 10 points against the President in stewardship against terrorism, however, they say they are determined not to feed the national security issue to Mr. Bush.
And the Senator kept up, even stepped up to the rhetoric against the President on terrorism. He talked about missteps by the President in the war on terrorism over the last three and a half years saying the White House policies are encouraging terrorism.
KERRY: I believe that I can be more effective on the war on terror than George Bush is. I know I can fight a more effective war.
Lee Hamilton, the co-chairman of the 9/11 Commission has said this administration is not moving with the urgency necessary to respond to our needs. I believe this administration and its policies is actually encouraging the recruitment of terrorists.
BASH: The Kerry line which he's pushing, not just here at this rally, but earlier today with firefighters is that America is safer, but not safe enough, and that he is the guy, not the President, to do the job to make America safer. The Bush campaign points out that many of the policies that the senator is pushing have already been enacted.
Privately, Kerry campaign aides acknowledge the fact that despite his tough rhetoric, they have to be careful with the politics of terrorism. That's why you saw the Senator step away from any comment by Governor Howard Dean, for example, that this terror alert was political motivated.
Dana Bash, CNN, Grand Rapids, Michigan.
(END VIDEOTAPE)
PILGRIM: Vice President Cheney said today the White House is doing everything in its power to protect Americans from terrorism. The Vice President spoke to hundreds of troops at Peterson Air Force Base near Colorado Springs.
But tonight, Cheney is making a campaign stop in Lubbock, Texas. He is expected to campaign in four more states over the next few days.
A new CNN/USA Today gallop poll on the presidential election finds that it is closer than ever. And that is despite some expectations for a post-Convention bounce for Senator Kerry. Bill Schneider has the report.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): What happened to the convention bounce? Before the convention, John Kerry had a four-point lead over President Bush among registered voters. Now, the race is tied: Kerry down one point, Bush up three.
This is the first Democratic Convention since 1972 that did not give the nominee any boost in the polls. That was the year when everything went wrong for George McGovern. Democrats say they're not surprised.
GOV. JENNIFER GRANHOLM (D), MICHIGAN: Everybody knew that going into the convention, that because the electorate is so polarized, because there's only about 6 percent or so that are undecided, that there would not be a significant bounce after this convention.
SCHNEIDER: She has a point. This year, Democratic primary voters shut down the nominating process earlier than ever, and rallied behind Kerry. They gave him record amounts of money. The challenger was already running neck and neck with the incumbent president. Interest in the election is extraordinarily high, and the number of undecided voters is unusually small. People were certainly watching.
Four years ago, 55 percent of voters said they watched some or all of the convention that nominated Al Gore. This year, more than 60 percent said they watched the convention. The effect was to rally partisans on both sides. The number of Democrats who said they were more enthusiastic than usual about voting this year jumped six points, from 70 percent before the convention to 76 percent afterwards.
But Republicans were even more energized by what they saw in Boston: 11 points up. Favorable opinions of Kerry went up slightly, but so did favorable opinions of Bush. That could be the price Democrats paid for their decision to tone down the personal attacks on Bush at the convention. The President suffered no political damage. Despite their low expectations, Democrats have to be frustrated.
KERRY: All of these polls, I think, are so wacky, because frankly they don't know what the political dynamic is this year.
(END VIDEOTAPE)
SCHNEIDER: All those speeches, all the hoopla, all those balloons, and what happened? According to the poll, not much. Among voters interviewed on Friday, the day after Kerry's acceptance speech, the poll shows Kerry did have a five-point lead, but it quickly disappeared on Saturday and Sunday. The shortest convention bounce on record; more like a convention twitch -- Kitty.
PILGRIM: Bill, do you think there's too much emphasis on this bounce?
SCHNEIDER: Yes. I think there's a lot too much emphasis on the bounce, but it does raise an interesting issue. What are the conventions for? I mean, they're promoting a candidate. They're selling a product and these polls indicate: well, they didn't sell very well.
And cities that invite conventions have also made a discovery: that it's not particularly good for business. Boston discovered that; Los Angeles. They don't really bring in a lot of money, and the networks, the broadcast networks don't want to cover them. So sooner or later somebody is going to ask a question: what are we doing this for?
PILGRIM: But not this year, right, Bill?
SCHNEIDER: Not this year.
PILGRIM: All right. Thanks very much. Bill Schneider.
Now, a look at some of your thoughts. Many of you wrote in about the recent terror warnings.
John of New Jersey writes: "Beefing up security after the latest terror alert while leaving our borders unguarded is like closing the door after the thief has entered. Does this make sense or am I missing something?"
And Louis from Pennsylvania: "I am perplexed why the Bush administration has authorized a heightened terror alert. If the government has compelling intelligence that an attack on the United States is imminent, what are Americans going to do with that information?"
Leslie of Ohio: "There is a way to control terrorists and illegal aliens in the United States. We need to go with a national ID card system. That's the only way to keep track of everyone. The card could be scanned to make sure of the person's identify and to see if there are any outstanding warrants."
And we absolutely love hearing from you. Send us your thoughts at LouDobbs@cnn.com.
Still to come tonight: the Middle Class Squeeze. Millions of American workers are forced to settle for low-paying, low quality jobs just to get by. We'll have a special report.
And then a massive tax giveaway for some of the country's wealthiest business owners. We'll have that story.
And the first tropical storm of the season is barreling up the Atlantic Coast tonight and gaining strength. And we'll tell you where and when it's likely to hit.
(COMMERCIAL BREAK)
PILGRIM: Authorities in Paraguay tonight are investigating the cause of a supermarket fire that killed more than 300 people over the weekend in the capital city of Asuncion. Officials say more than one hundred people were also injured, and authorities say exploding gas canisters may have sparked the fire. Witnesses claim some of the exits of the building were locked, trapping hundreds of people inside, but building owners deny those charges.
In Bangladesh, the worst floods in 15 years have killed more than 1,000 people. Ten million people are also left homeless. Health officials say that disease is beginning to spread because of a shortage of water-purifying tablets. Authorities are stepping up the distribution of food and drinking water. UNICEF is working to raise about $13 million in aid.
In the United States, the National Weather Service has issued a hurricane warning for parts of the Carolinas as tropical storm Alex heads for the coast. Now, the storm is expected to become a hurricane in the next 24 hours. Forecasters say the center of Alex should pass close to North Carolina's Outer Banks. That's tomorrow.
We've reported extensively on a controversial bill before Congress that would grant corporate America billions of dollars in tax breaks. Democrats call the bill a Christmas tree, full of presents for big business, but even those Democrats missed a key sentence that could mean a multimillion dollar windfall for the owners of professional sports teams. Peter Viles reports.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): With lost jobs a campaign issue, it's no surprise Congress has a response, what the House calls the American Jobs Creation Act of 2004. But the bill is truly a hodgepodge of special tax breaks and buyouts, nearly $10 billion for tobacco farmers, and one change that even critics of the bill missed. As the "New York Times" reports today, the bill would effectively increase the value of pro sports franchises.
JIM MCDERMOTT, WASHINGTON DEMOCRATIC REPRESENTATIVE: They rammed that bill through it. It was pretty clear it was Christmas for a whole lot of companies in the middle of June. Most of us voted no against it because we didn't know what was in it. This is a provision I had absolutely no understanding at all. I picked up the "Times" today and I said, "My God, I missed another one."
VILES: What McDermott missed was a single sentence that would change depreciation rules for sports teams. New owners could write off the full value of their teams over 15 years. Analysts say that would make teams more valuable if they're sold, benefiting any current owner who decides to sell, whether it's George Steinbrenner, owner of the Yankees, Jerry Jones, owner of the Cowboys, or Internet billionaire, Mark Cuban, owner of the Dallas Mavericks.
In an e-mail response to CNN, Cuban said the difference in depreciation won't matter to most owners. He added, "It only matters if you sell, and I have no intention of selling." So why bother with the change?
Well, supporters say it's pro-business and it brings in new revenue. Owners want to end years of bickering with the IRS about depreciation rules, and the government thinks it will get new revenue, $382 million, over 10 years.
(END VIDEOTAPE)
VILES: Both the House and the Senate agree on this change. The larger question is whether this 900-page monster of a tax bill will ever become law. The key issue there? The House and the Senate do not agree on how to structure that $10 billion tobacco buyout -- Kitty.
PILGRIM: Thanks very much. Pete Viles.
Coming up, putting the squeeze on the middle class: new information tonight that the recovery in the job market is not as strong as it may seem. And we'll have that report.
And saying so long to a horse who became a household name and won the hearts of millions. We'll have that story coming up.
(COMMERCIAL BREAK)
PILGRIM: The Labor Department released a disturbing new report on the state of the job market in this country. That report found that more than 11 million Americans lost their jobs between 2001 and 2003. Well, many of those workers have since found work. The new jobs are often lower paying and lower quality.
Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Andre Owens is looking up job leads at the District of Columbia's Employment Services. He was laid off from his nonprofit job 10 months ago. ANDRE OWENS, UNEMPLOYED WORKER: I've actually found the market to be quite frustrating. I've interviewed for a number of positions, but hadn't received a job offer yet.
SYLVESTER: A new study by the Bureau of Labor Statistics found layoffs in the last three years soared: nearly 11.5 million workers lost their jobs since President Bush took office. That's almost 9 percent of all adult job holders, the second highest level since the Great Depression.
PHILIP MATTERA. GOOD JOBS FIRST: And we're at a period now in which the economy was supposedly getting stronger as we recovered from the recession, but these underlying problems of instability and insecurity seem to be growing worse.
SYLVESTER: Manufacturing workers on the job for three years or longer were hit hardest, making up one-third of the displaced workers. But other industries felt the job squeeze: retail, professional business services and managerial positions. Labor groups claim greed and globalization as corporations have moved work overseas to lower wage countries.
JIM SCHOLLAERT, AMTAC: The trend seems to be driven by the new business model that so many of our corporations have embraced enthusiastically to move their production to china.
SYLVESTER: The survey found that while two-thirds of the unemployed workers were able to find work relatively quickly, 57 percent of those rehired took pay cuts in their new jobs.
JARED BERNSTEIN: Really what you're talking about now is not only a larger likelihood of job displacement, but a considerably larger likelihood of being rehired at a lower rate of pay.
(END VIDEOTAPE)
SYLVESTER: Economists say the survey provides evidence to back a troubling trend: the jobless recovery. In prior recessions, job growth improved considerably as the economy grew, but this time around, Kitty, the new jobs are only trickling in.
PILGRIM: Lisa, what do economists say it's going to take to turn the situation around?
SYLVESTER: Well, there has to be incentives for corporations to remain here to keep jobs in the United States. You'd have to take a look at the tax policy, for instance, and also rethinking some of the trade agreements. But many economists say unless there really is a reason for the corporations to stay put, they will take advantage of the lower wages in other countries -- Kitty.
PILGRIM: All right. Thanks very much. Lisa Sylvester.
Well, the most celebrated race horse in decades has run his last race. The owners of Smarty Jones today retired the winner of the Kentucky Derby and the Preakness Stakes. They say Smarty Jones has been suffering for months with chronic bruises on his hoofs.
In June, Smarty Jones came within a length of becoming the first horse to win the Triple Crown in 26 years and he has not run a race since his loss at the Belmont Stakes. Now, Smarty Jones will become a stud on a farm in Kentucky.
Let's take a look at some of your thoughts. And many of you wrote in about the Kerry-Edwards ticket.
Adam from Illinois writes: "I am sick of Republicans saying that Kerry is a flip-flopper. If anyone would like to see any additional flip-floppers, simply examine the voting records of every Senate and House member and also many presidents. There is no such thing as a politician that maintains the same position on the same issue for 20 years."
Bobbie of Illinois writes: "I don't understand how Kerry and Edwards can promise things they haven't produced while in Congress. After all, the president does not have a lot of power without Congress behind him."
Don of Texas, "I think it's time we drop the electoral vote for president in favor of the popular vote. It would put all people in all 50 states into play."
Do send us your thoughts, LouDobbs@cnn.com.
And still to come: terrorists threaten to strike the center of the American economy, but Wall Street is unfazed. Christine Romans will have a full report on the markets, next.
(COMMERCIAL BREAK)
PILGRIM: Warnings of a terrorist threat to financial institutions did not hurt the stock market today. The Dow rose almost 40 points, the NASDAQ and S&P gained almost 5, and Christine Romans is here with the markets.
CHRISTINE ROMANS, CNN CORRESPONDENT: Kitty, there were even calls for 100 point sell-off in the Dow, but how did investors respond to the breathless reporting of the terror warnings? They bought stocks. The Dow put together the fifth higher close in a row, its longest winning streak this year.
Even at its worse today, the Dow was only down 20 some points. The big banks and the Big Board aren't exactly surprising targets, traders say. And the Stock Exchange has been heavily protected now for three years.
And, the specificity of the warnings may actually have calmed investors' fears. Traders say it shows Homeland Security is working. In fact, traders at the NYSE were more concerned about what was happening inside the Stock Exchange because their livelihoods are at stake.
The NYSE announced today it will allow more electronic order processing, and that will take more trades out of the hands of the middlemen on the trading floor. It will save the big institutional investors millions of dollars a year and it is, by far, the biggest change in the 212-year history of the New York Stock Exchange.
PILGRIM: That's a big one. There was a great show of elected officials out in force today talking about how everything was being dealt with. Do you think that really helped the markets?
ROMANS: A lot of people say it did help the markets. And tomorrow you're going to have Tom Ridge at Citigroup Center here in Manhattan again with Mayor Bloomberg today greeting traders. They were walking in, John saying to Mayor Bloomberg, and a lot of folks said it was definitely a show of force. And the Dow closing higher on a day when a lot of people thought it would be a tough day. It wasn't at all.
PILGRIM: So, that's the good news. Thanks Christine.
Still ahead: the results of tonight's poll. First, a reminder to look at our Web site for the complete list of companies we've confirmed to be exporting America, at cnn.com/Lou.
(COMMERCIAL BREAK)
PILGRIM: Here are the results of tonight's poll. Do you think a national intelligence czar would improve the nation's security: 40 percent of you said yes, 60 percent said no.
Well, that is our show for tonight. Thanks for being with us.
Tomorrow we'll be joined by Steven Cole who's Managing Editor of "The Washington Post." And author of, "Ghost Wars: The Secret History of the CIA, Afghanistan and Bin Laden." We hope you'll join us for that.
For all of us here, good night from New York.
"ANDERSON COOPER 360" is next.
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