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Lou Dobbs Tonight
Obama's New Team; Obama and Transition; GOP in Disarray; Obama's Challenge; Another big Bailout; DHS Raises Border Alert Level
Aired November 06, 2008 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Thank you, Wolf.
Tonight, President-Elect Barack Obama making his first top-level appointment, preparing for a critical meeting tomorrow on our worsening economy. We'll have complete coverage and three of the country's top economic thinkers joining us.
Tonight the automobile industry demanding tens of billions of dollars in additional help from the federal government. Is this the beginning of sweeping, new bailouts of our manufacturing sector?
And tonight also, the Bush administration giving President-Elect Obama a blunt warning about our illegal immigration and border security crisis. We'll have that report, all of that, all the day's news, and much more, here tonight from an independent perspective, straight ahead.
ANNOUNCER: This is LOU DOBBS TONIGHT; news, debate and opinion for Thursday, November 6th. Live from New York, Lou Dobbs.
DOBBS: Good evening, everybody. President-Elect Obama today started filling top positions in his new administration. The president-Elect announced that Congressman Rahm Emanuel has agreed to become his White House chief of staff. Obama also planning other key appointments, including the critically important position of secretary of the Department of Treasury.
Obama's deliberations coming as the stock market plunged for a second straight day. The Dow Jones industrials falling more than 400 points today amid new concerns about a weakening economy. We have extensive coverage tonight of the President-Elect's preparations to take over the White House, and we begin with Jessica Yellin in Chicago.
(BEGIN VIDEOTAPE)
JESSICA YELLIN, CNN CORRESPONDENT (voice-over): President-Elect Obama keeping a low profile here after his first top-secret intelligence briefing, here heading into private meetings. We do know his first move.
UNIDENTIFIED MALE: But I'm going to go have lunch with my wife.
YELLIN: That's his new chief of staff, Congressman Rahm Emanuel, who openly grappled with taking the job because he yearned to some day become Speaker of the House. REP. RAHM EMANUEL (D), ILLINOIS: My parents are alive to see their middle son have a choice in his career to be a Congressman (INAUDIBLE) opportunity down the road of maybe rising in the leadership and being the chief of staff to a historic presidency at a historic time. I'm very fortunate that my parents are alive to see that.
YELLIN: Emanuel was a key strategist in both terms of the Clinton White House, an investment banker, and then a Chicago Congressman. He helped Democrats retake the House of Representatives in 2006. Democratic legislators owe him.
Some Republicans are wary. Republican House Minority Leader John Boehner calls Emanuel an ironic choice for a President-Elect who has promised to change Washington, make politics more civil and govern from the center, but former Clinton colleagues applaud the pick.
JOE LOCKHART, FORMER CLINTON PRESS SECRETARY.: I think people misunderstand Rahm sometimes and look at him as you know highly partisan or ideological. Rahm is actually not ideological at all. He's about getting things done. He has a lot of friends across the aisle.
YELLIN: Now Obama is onto his next move. Tomorrow, Obama meets with top economic advisers, then holds a press conference. Among the names under consideration for Treasury secretary, former Clinton Treasury Secretary Larry summers (ph), considered a brilliant economist but prone to making controversial remarks and Tim Geithner, head of the New York Fed, also well respected in academic circles and on Wall Street, also a relative Washington outsider.
(END VIDEOTAPE)
YELLIN: And Lou, at that press conference tomorrow, Obama is expected to get questions about who will fill other key positions in his senior staff, expected to go to Washington with him is David Axelrod, the senior adviser we've seen by his side throughout this campaign, one of Obama's key strategists and closest advisers.
Lou, also news today, Barack Obama has taken phone calls with nine top world leaders, including the leaders of Israel, Japan, France, Germany, and the UK. He is wasting no time getting down to business -- Lou?
DOBBS: And Jessica, any indication as to whether or not the President-Elect will name any top members of his economic team?
YELLIN: We are expecting the economic team and the national security team to be the first two that he announces, but we are not getting any leaks whether that will happen tomorrow or perhaps early next week. We do know those top names I mentioned are in -- considered the leaders in contention, Lou.
DOBBS: All right. Thank you very much, Jessica, appreciate it. Jessica Yellin. The President-Elect and his wife will be visiting the White House Monday at the invitation of President Bush and the first lady. The President-Elect will meet with President Bush in the Oval Office.
President Bush today said what amounts to an early good-bye to his White House staff on the White House lawn. President Bush telling staff that it's important for the transition of power to be as smooth as possible. He said it's the first wartime transition in four decades. President Bush also said the economic challenges facing this country will not pause.
Joining me now for more on the challenges of the transfer in power in Washington and the President-Elect's possible cabinet appointments, I'm joined now by White House correspondent Ed Henry. Ed, what are you hearing about the likely appointments in this new administration?
ED HENRY, CNN CORRESPONDENT: Well, it's interesting, one name we keep hearing among Democrats for Secretary of State is John Kerry. He's calling allies in the Senate saying, look, I really want to do this, as sort of a cap to his career. Obviously, a former presidential nominee himself.
And the key is that he backed Barack Obama early in this process over Hillary Clinton. He's got strong foreign policy credentials. The fear among some Democrats, though, is that Kerry has a propensity to be a little aquacios (ph), maybe a little like Joe Biden. The vice presidential-elect has put his foot in his mouth a few times.
And they're worried that maybe he would have his own portfolio and would not be reined in quite as much. And other names you hear then are Bill Richardson, the New Mexico governor, as a possible of Secretary of State or the possibility as well that President-Elect Obama could reach across the aisle and pick someone like a Chuck Hagel, the retiring Republican senator of Nebraska or even Dick Lugar. He has mentioned him throughout the presidential debates, and that would give him some (INAUDIBLE) and some seriousness of purpose that he's going to reach across the aisle.
DOBBS: And to what degree does it seem on the part of the folks in the President-Elect's staff that it's important to do that? It seems a first priority would be, I would think, the most, well, effective person possible, irrespective. Is there really that much of a demand for so-called bipartisanship?
HENRY: Well, I think, obviously, they want to get the best possible one. Obviously, that's the first quality, you're absolutely right. But I think also, as a candidate, Barack Obama talked a lot about reaching across the aisle, he talked a lot about this sort of new politics, and he has a very small window within the first 100 days to back that up and show that it's for real and that it was not just rhetoric in the campaign.
One way to do that would be to reach across the aisle with your cabinet. Another way is to also potentially show that he's not going to veer too far left with his cabinet appointments. A lot of the gains that remain on Capitol Hill in some of these House and Senate seats for Democrats were not necessarily all liberals. They were from people from conservative districts --
DOBBS: Mostly they were not.
HENRY: Right, and so they need to also show that they are going to have a team that reflects that and is not just sort of reflectively left that is going to please liberal interest groups, but will also show that there is a seriousness of purpose and that they're going to get the best qualified people, as you mentioned.
DOBBS: And like millions of other Americans, I heard the President-Elect say he was going to be the president of all Americans.
HENRY: That's right, and so, that gives him an opportunity to reach across the aisle.
DOBBS: Good, all right. Ed Henry, thank you very much.
HENRY: Thank you.
DOBBS: President-Elect Obama tonight looks to be on course to win the state of North Carolina. Officials have not yet certified the results in North Carolina, but it does look like it's impossible for Senator McCain to close the deficit with Obama with the remaining uncounted votes. Senator Obama's projected victory in North Carolina would give him 364 electoral votes compared with 163 for Senator McCain. Missouri remains the only state still too close to call.
In the Senate race, another victory today for the Democrats. Republican Senator Gordon Smith in Oregon conceding defeat to Democratic challenger Jeff Merkley. With 92 percent of the ballots now counted, Merkley received 49 percent of the vote, Smith 46 percent. The outcome of three other closely contested Senate races in Alaska, Georgia, and Minnesota remain unclear.
Democrats have now 57 Senate seats, Republicans 40. Democrats, of course, need 60 seats to be absolutely filibuster-proof in the Senate. The Republican Party's big election losses have sparked turmoil within the Republican Party. Today, more evidence of disarray at the top of the Republican leadership and the House of Representatives. Brian Todd has our report from Washington.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): The election-day defeat for Republicans claims another top leader, the GOP's number two in the House will step aside. Roy Blunt joins their number three, Adam Putnam (ph), in giving up a leadership post after the Republicans defeat in the polls.
Two conservative Republicans have the support of Minority Leader John Boehner to take over. How will the new GOP minority deal with the new Democratic president? Conservatives say Republicans need to stand firm -- less spending, less government, and lower taxes. But one former Congressional aide offers them this advice. JOHN FEEHERY, FORMER GOP CONGRESSIONAL AIDE: Think of what Barack Obama is saying and find ways that you can find agreement with him and then find ways that you can, with your principles, you can principally oppose him, but don't just knee-jerk oppose him right off the top.
TODD: And top Republicans say the burden is on President-Elect Obama to keep his agenda moderate if he wants any GOP help.
MIKE DUNCAN, RNC CHAIRMAN: To turn "change we can believe in" into change we can actually see, he'll need Republicans' help fighting back the ridged, liberal, orthodoxy of his Congressional leadership.
TODD: And if the Democrats overreach when they take the reins in January?
SUSAN MOLINARI, FMR. GOP CONGRESSWOMAN: It's not just good enough to take advantage of Democrats in state, you have to make sure that the Republicans show that they have the right sorts of solutions.
(END VIDEOTAPE)
TODD: Now, in the meantime, Republican insiders tell us there are at least two advantages to being in the minority. At least, when things go badly, they're not going to be to blame, and the Democrats will be providing them with what they call a target-rich environment here in Washington -- Lou?
DOBBS: I love the idea that the Republicans will be able to provide a buffer against that ridged, liberal orthodoxy. I guess the full suggestion there is that you need a ridged conservative orthodoxy to fight off that rigid liberal orthodoxy, is that it?
TODD: Well, it could be that, but the Republicans are now kind of struggling with the agenda that they're going to put forward. They're kind of having that debate right now. Do they move more to the right to galvanize their grassroots? Do they move more toward the center? This is all about how they're going to try to regain power. They're basically starting from scratch.
DOBBS: All right. Thank you very much. Brian Todd reporting.
Up next, stocks plummeting for a second straight day. The major stocks indexes losing 10 percent since Obama was elected president. In fact, it's the worst two-day performance since the market crash of 1987. Three top economic thinkers join me here to assess these challenges and the policy choices facing the President-Elect.
The automobile industry looking for more federal money. Is this the beginning of a new wave of government bailouts? We'll have that report and a great deal more. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Over the past two days, on Wall Street, investors have lost a stunning $1.2 trillion in value. The Dow Jones industrial average has lost more than nine percent since President Obama was elected. It is the worst two-day performance on Wall Street since the market crash of 1987, and a stark reminder of the enormous challenges facing this President-Elect, and his yet-to-be-named economic team. Louise Schiavone has our report.
(BEGIN VIDEOTAPE)
(BELL RINGING)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): For two days in a row, Wall Street has lost ground. The buoyant national spirit that followed the historic election of Barack Obama has given way to renewed worries about the economy.
DAVID SMICK, AUTHOR, "THE WORLD IS CURVED": You can't blame Barack Obama for the economy. I mean, he's been President-Elect for two days. But I think markets crave certainty, and they become very nervous at uncertainty.
SCHIAVONE: Some of the uncertainty comes from not knowing where this liberal Democrat will lead the economy, but this global financial strategist says the Obama team might give some serious thought to announcing its choice of Treasury secretary. Among the rumored candidates, Wall Street insider Timothy Geithner, former Clinton Treasury Secretary Lawrence Summers (ph), and former Federal Reserve Chairman Paul Volcker (ph).
UNIDENTIFIED MALE: He needs to say, OK, here are the mistakes that were made that got us into the worst credit crisis since the 1930s, all right? Here's how I'm going to correct the mistakes, but also, here's how we're going to distribute capital in the future.
SCHIAVONE: The most recent job cuts are reported across a variety of industries, from Fidelity Investments to Whirlpool to Mattel Toys.
LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INST.: After we pull the focus off of the bailout package passing, then we're back to an economy that is in recession. So, even toy sales are down, you know, I mean, unbelievably, going into the Christmas season, and that bodes very ominously for retailers and their profits.
SCHIAVONE: Cisco Systems is reporting slumping demands for its computer ware, and retailers everywhere say sales are extremely weak.
(END VIDEOTAPE)
SCHIAVONE: Lou, all of these factors leaves Wall Street feeling unsteady and banks seemingly waiting for the next shoe to drop -- Lou?
DOBBS: Or the -- or more of the bailout to arrive. Louise, thank you very much. Louise Schiavone from Washington.
The automobile industry tonight pushing for a bailout, an additional bailout. The CEOs of the nation's big three carmakers and the president of the United Autoworkers Union today meeting with House Speaker Nancy Pelosi. Their closed-door meeting comes after the worst month for auto sales in a quarter century. Bill Tucker reports.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Detroit following in the example of Wall Street has gone to Washington seeking help. The heads of Ford, Chrysler, General Motors, and the United Autoworkers met with the Speaker of the House, Nancy Pelosi to make their case for loans. There is no question, the hard sell is on. Michigan's governor says too much is at stake.
GOV. JENNIFER GRANHOLM (D), MICHIGAN: But the bottom line is, a domestic auto industry is critical for our national security. It is a critical national need. To allow this industry to fail is not acceptable.
TUCKER: But there are a lot of critics who see no need for any more taxpayer dollars supporting industries they see as the victims of bad leadership.
DAN IKENSON, CATO INSTITUTE: Where is it written in scripture and in stone that we need to have the big three and that we -- and that if one of them is to go down, then the whole industry is threatened? If one of them goes down, the industry will be doing much better.
TUCKER: Bankruptcy, they argue, can have a cleansing effect.
JAMES GATTUSO, HERITAGE FOUNDATION: In bankruptcy the management most likely would be completely replaced by a new team.
TUCKER: Some supporters of the loans being sought by the industry say they understand the desire, even the need to punish bad management, but...
AARON BRAGMAN, IHS GLOBAL INSIGHT: These automakers have actually taken a number of steps over the last three, four years, to bring themselves into the new, modern age, and to respond to the changing market. It's just that with the market changing so dramatically and so quickly and the economy tanking faster than anybody could have possibly foreseen, they've been thrown off track and they need help.
TUCKER: It's not just the automakers' fates that are at risk.
(END VIDEOTAPE)
TUCKER: The auto industry spends $12 billion a year on research and development, and for the last several years, the industry spent about $10 billion a year here at home in the United States in retooling, factory upgrades, new factories, employer salaries, health care, and the like, Lou. So, a lot of money from the industry coming into our economy.
DOBBS: Well, a lot of money from the industry, but we're talking now $50 billion, presumably, in additional bailout money, 25 in addition to the original 25. How soon will there be a decision, will there be a clear, political pathway for this money?
TUCKER: Well, Obama, when he was campaigning, indicated that he wanted to help Detroit. Senate leaders at the moment and leaders in the House seem hesitant to do anything right away, most likely not until after the inauguration. But they were down there getting in line first today, no doubt about it.
DOBBS: All right, thank you, Bill Tucker.
Well, still ahead here, President-Elect Obama's new team beginning to look a lot like the old White House team. Three of the best political analysts in the country join me next to tell us what's in store.
And new concerns about how the next president will handle our illegal immigration and border security crises. Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: New warnings tonight about increasing security threats along our border with Mexico. Border security advocates concerned that recent progress along the border could be jeopardized by President-Elect Obama's policies on border security and his support for amnesty for illegal aliens. Casey Wian has our report.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): The nation's borders are now in a quote "period of heightened alert," according to the Department of Homeland Security. There are concerns that the presidential transition could cause officials to ignore the growing threat of violence from drug and illegal alien smugglers and even terrorists.
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: Any time there's a transition, there's a danger or a risk that vulnerability will increase, because people become distracted.
WIAN: LOU DOBBS TONIGHT reported last week that Mexican drug cartels operating in Texas are under orders to engage U.S. law enforcement personnel. Now we've obtained a border patrol officer's safety bulletin describing a recent incident near Abram, Texas, where agents spotted a vehicle loaded with marijuana.
A group of suspects confronted the agents. One opened fire with an automatic weapon, missing the agents, before the smugglers escaped to Mexico. Although the Bush administration has made progress toward border security, huge gaps remain, as this video shows. It's a new Web site operated by border security advocates, using hidden cameras to show illegal crossings. Unlike his former opponent, President- Elect Barack Obama has not committed to securing the nation's borders before legalizing illegal aliens.
SEN. BARACK OBAMA (D-IL), PRESIDENT-ELECT OF THE UNITED STATES: We can't deport 12 million people. Instead, we'll require them to pay a fine and learn English, and they need to go to the back of the line for citizenship behind those who came here legally. That's just fair. But at the same time, we're going to secure our borders and crack down on the kinds of employers we saw in Iowa, hiring 13-year-olds to work in meat-packing plants.
WIAN: That effort is complicated by this week's announced resignation of Julie Myers (ph), head of Immigration and Customs Enforcement. During her tenure, ICE has sharply increased the number of raids of businesses employing illegal aliens, as well as apprehensions and deportations of immigration fugitives, gang members, and other criminals.
(END VIDEOTAPE)
WIAN: Pressure on the soon-to-be Obama administration to end those enforcement actions is already growing. Street demonstrations are planned for here in Los Angeles next month, and just yesterday, House Speaker Nancy Pelosi called for an end to ICE raids, Lou.
DOBBS: All right, Casey, thank you very much. Casey Wian.
Well, more evidence tonight that this country is, as I've been saying for literally years now, the most welcoming country in all of the world. More than one million people took the oath of allegiance and became naturalized citizens over this past year. It is the largest number of naturalized citizens in our nation's history.
And imprisoned former border patrol agents Ramos and Compean will be resentenced on the 12th of November and 13th respectively by the same El Paso federal judge who delivered their original sentences. This follows an appellate court ruling that overturned some of their convictions. We are following this story closely. We'll have a full report for you as developments warrant over the next week.
Many of you have been writing in about the possibility of a pardon from President Bush in these final hours for Compean and Ramos. Jimmy in Virginia wrote in to say "Please remind your viewers to e- mail, to write, or to call the White House to ask President Bush to do the right thing and pardon these wrongly imprisoned border patrol agents, Ramos and Compean, before he leaves office. That they were imprisoned at all is truly an injustice."
And Glenn in Wisconsin, "Lou, do you think President Bush will now finally do the right thing and pardon the two border patrol agents who should have never been charged in the first place?"
And Robert in Texas, "Lou, do you think that President Bush will grant full pardons to the two Texas border patrol agents? If not, maybe we can get the new president to do this. Haven't they spent enough time in prison? Can we do something about this?"
Well, I would suggest you write, you call the White House and make your views known. We certainly need to reverse what is one of the worst injustices in Texas prosecutorial history.
We'll have more of your thoughts here later in the broadcast, and each of your e-mail receives -- is read here receives a copy of my new book "Independents Day: Awakening the American Spirit" now available in paperback.
Up next, startling new information on voter turnout on Election Day. We'll have that story.
And President-Elect Obama appointing a top political operative as White House chief of staff. We'll be assessing that appointment and likely appointments with three of the country's best political analysts here next.
(COMMERCIAL BREAK)
ANNOUNCER: This is LOU DOBBS TONIGHT; news, debate and opinion. Here again Mr. Independent, Lou Dobbs.
DOBBS: Welcome back. Voter turnout on Election Day falling well below most predictions, despite all of the hype that this election would be the biggest in decades. The actual number's about the same as 2004. It turns out that between 126 and 128 million people cast votes. That according to American University Center for the Study of the American Electorate. Many pundits had expected voter turnout to be more in the neighborhood of 130 million to 136 million. The study finding that the number of Democratic voters did increase, but there was significant downturn in Republican voters.
Turnout was up in only 22 states and the District of Columbia. The study attributing the Republican losses to three key factors, cultural conservatives rejecting McCain, moderate Republicans saying the Palin nomination is reckless, the growing perceptions on Election Day of a Democratic landslide, and the lack of enthusiasm for President Bush carrying over to Senator McCain.
Well joining me, three of the best political analysts. CNN contributor's from Nashville, Tennessee tonight Professor Carol Swain of Vanderbilt University Law School in New York, Michael Goodwin Pulitzer Prize winning columnist "New York Daily News," Democratic strategist and Democratic National Committeeman Robert Zimmerman. Are you surprised at those turnout figures, Michael?
MICHAEL GOODWIN, "NEW YORK DAILY NEWS:" Well, look, we talked about it the other night, Lou, that clearly, there was something going on that was falling below, because I think what happened in the end, of course, is John McCain got about five million or six million votes fewer than George Bush did four years ago. That's the margin of this race. It really wasn't so much that Obama increased the overall turnout. He did increase the Democratic turnout, as you reported, but it really was McCain's falling off that was the real margin here.
DOBBS: What do you think, Robert?
ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: You know, it actually is -- it is rather surprising, considering all the hype and the expectations that were out there. I think what's significant to note, though, which is encouraging, are the number of new people, the 11 to 14 percent projected new voters who voted for the first time, participated. I think that's significant to observe.
DOBBS: Well, it's encouraging for the Democratic Party. It can't be too woopy-do time for the Republican Party --
ZIMMERMAN: It's for democracy. But you know something Lou it's a common practice that you see, when a party's discouraged about their chances, the voter turnout drops, like Republicans day on this time, that was the case for years past for the Democrats.
DOBBS: In the media there was so much talk about this, and the overwhelming potential of this -- of the Obama victory, I wonder if it did deter some Republican voters from going to the polls.
PROF. CAROL SWAIN, VANDERBILT UNIVERSITY: I think it discouraged many Republican voters from going to the polls because, you know, for the last couple of weeks, we were told that Senator Obama, President- Elect Obama now, would win in a landslide, and Republicans that I know, they were not enthusiastic. They were enthusiastic about Palin, but not about McCain, and I think many of them did decide to stay home.
DOBBS: The evangelicals were just -- I haven't seen the final numbers by any stretch of the imagination, but so quiet in the run-up to this election, weren't they, Carol?
SWAIN: I agree. I agree. And they were very, very discouraged. And many people felt that the Republicans deserved to lose this election.
GOODWIN: You know, Lou, one other factor, too, of course, some of the polls. I mean, some of the polls had Obama winning by 13, 14 points the day before the election. That also -- and they were clearly wrong. The margin was closer to six points --
DOBBS: We're talking about major polling.
GOODWIN: Absolutely, "The New York Times," CBS News.
ZIMMERMAN: I actually think the CNN Poll of Polls proved to be fairly accurate.
DOBBS: We were at seven percent the final margin, six percent, and that may even move up. It may be closer to six percent. We still have millions of absentee ballots --
ZIMMERMAN: You make an important point in terms of looking at the Evangelical voters. For the past election cycles, Democrats regarded them as the adversaries, and the truth is, they can be listened to and they want to be heard on issues not just the cultural issue, but also issues around health care, the environment, economic justice. So, there is a dialogue Democrats can have with them.
DOBBS: Do you think they have that dialogue, or --
ZIMMERMAN: Well, I think Democratic numbers -- remember, Al Gore got roughly 40 percent of the Evangelical vote -- SWAIN: They will never get the Evangelical vote that cares about life, and the gay marriage issue -- there are some conservative Christians that they're not willing to compromise on those issues.
ZIMMERMAN: Well, that's true, but those are one-issue voters --
SWAIN: They're not one-issue voters, that's --
ZIMMERMAN: Excuse me, Carol. I think the Evangelicals care about a range of issues, and they should be respected for that.
SWAIN: Of course, they care about a range of issues, but there are some values that they don't compromise on.
DOBBS: And I think, Carol, it's also important to look at the Catholic voters who went for Barack Obama in contravention of what you're --
SWAIN: I think they are misguided.
DOBBS: Well --
GOODWIN: I felt that way about the Republicans, too, Carol.
DOBBS: They may be misguided, but the fact is that they are right-to-life voters and chose to go with a pro-abortion candidate, right?
SWAIN: It's to issue the decline of our society.
DOBBS: Maybe that's another discussion for another time. Well, President-Elect Obama tomorrow, Michael, will be talking about economics, his first press conference, and his first news conference. Do you expect him to actually name any part of his team, the economic team, tomorrow?
GOODWIN: It's probably too soon to expect that, but I do think there are some things he can do tomorrow. In particular, I think the stock market is going crazy, as you reported earlier. I think the market is down 9.5, 10 percent in the last two days alone, so clearly, there's a lot of concern. Now, it's not all about Obama.
DOBBS: No --
GOODWON: It's clearly the economy --
DOBBS: I'm a man who's covered some economics over the course of my -- for people to put this on Barack Obama is absolutely insane. This -- we have put $1 trillion into the Federal Reserve System. We have put $1 trillion, almost, or will $1 trillion into bailouts into this economy. It is not working because this economic team did not know what it was doing, this Congress did not know what it's doing, and this administration hasn't known what it's doing. And what we need now is for -- I would hope, if I may say -- for this President-Elect to take his time and very carefully bring that team together and not to be urged on by fools who think that the appearance of urgency here will in any way be an appropriate substitute for thoughtful, careful, reasoned judgment on the direction of this economy.
SWAIN: Amen!
DOBBS: We have had enough nonsense out of these idiots in Congress and this White House.
GOODWIN: I do think, however, Lou, having -- I mean, I agree, there's no need for him to rush with his team, but, I think tomorrow he does need to, I think, create some sense of reassurance. Because right now, the whole thing is flapping in the wind, and --
DOBBS: I'm going to say this, as we break here. We're going to be back with our panel here in just a moment. I hope that this new president, I hope he brings a certain adult approach to this. You know, we've got a bunch of people sitting on a corner sucking their thumbs because where you're facing challenges, maybe he can lead us with just his intellect, his vision, and take us beyond where we've been. We'll be right back with our panel.
Stock prices plunging, as Michael Goodwin just said, for a second straight day, the worst two-day fall since the market crash of 1987. We'll also be joined by three of the best economic thinkers as well to tell us what this president should be doing. Governor Palin responding to reports of -- well, not reports, I mean, outright silly, pathetic, political infighting pettiness in the McCain campaign, and she has a few words for the national media as well. We'll be right back.
(COMMERCIAL BREAK)
DOBBS: Governor Palin today firing back at the media reports of her record retentions between her and some of the senior members of the senior McCain staff. Palin telling CNN's Gary Tuchman she has nothing but admiration for Senator McCain, but not necessarily the news media.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN, (R) ALASKA: I've come away, unfortunately, with a little bit of disappointment in the world of the media, and don't anybody take it personally, please. You guys have thick skin, too. Please, build your skin thick.
UNIDENTIFIED MALE: We don't.
PALIN: Yes, well, sorry. Because, you know, so many things that were reported that could have easily been corrected in terms of what my record is and what we do up here in Alaska and how our government works. Too many of media folks decided not to correct something on the record when they could have easily done it. That left me with a little bit of disappointment in the whole vocation here.
(END VIDEO CLIP)
DOBBS: Well, as you can see, Governor Palin welcomed by crowds of her supporters in Alaska, many wearing "Palin 2012" t-shirts. The governor wouldn't comment on her future political plans. We're back with Carol Swain, Michael Goodwin, Robert Zimmerman.
Carol Swain, do you think that this McCain campaign should probably stop it now, because they're really attacking her in these days after the election?
SWAIN: They have done her a terrible mis-service, because they thrust her into the media spotlight, and the media, they were like wolves when it came to her. But I mean, the abuse that was heaped up on her, and before she was placed on the ticket, Hillary Clinton. And I think the journalists, when we study the treatment of this presidential election, there will be a lot to mull over.
DOBBS: Yes -- Michael.
GOODWIN: Look, I think Sarah Palin is former journalist, so she knows something of which she speaks about, that vocation, as she called. It look -- she was treated very badly. The liberal press wouldn't give her a break. But Lou, can I just return to the previous point about Barack Obama?
ZIMMERMAN: Absolutely.
DOBBS: Yesterday, Nancy Pelosi spoke and the stock market reacted negatively. Today, Chris Dodd went out and went on and on about the banking committee. One of the tasks ahead of Barack Obama is to get the Democrats in Congress to shut up so that it can be one voice. Because otherwise, for the markets to be reacting as though every member of congress, you know has now the final say, is going to doom Obama before he even gets into office.
GOODWIN: You get the last word, Robert.
ZIMMERMAN: This is the first and most important test of any new president. Jimmy Carter couldn't control the agenda, the Congress took over. Reagan came in with an agenda, demand fact, and was able to guide the Congress. Barack Obama's well positioned to, in fact, because of the mandate he received, in fact, dictate an agenda, dictate priorities and bring Congress with Congress with him.
Rahm Emanuel critical in that factor because he knows both ends of Pennsylvania Avenue, both Capitol Hill and having worked in the White House as a senior aide.
DOBBS: And I love the description everywhere now of Paul Begala, the Democratic strategist talking about the style of Rahm Emanuel, somewhere between a hemorrhoid and a toothache. So, that tells you what some folks on Capitol Hill are in for. Thank you very much Robert. Carol Swain and Michael thanks.
Please, a reminder now to join me on the radio Monday through Friday for "The Lou Dobbs Show." Among my guests tomorrow, former West Virginia Governor Bob Weiss, we will be talking about education, public education. Go to Loudobbsradio.com to get your local listings for "The Lou Dobbs Show" on the radio.
Up next: Wall Street plunging again. How will the Obama administration deal with this economic crises? Three top economic minds join me.
And welcome news from some of our troops in Iraq and their families. We'll have that story, coming right up. Stay with us.
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DOBBS: This just into CNN. We have reported extensively on this broadcast on the Food and Drug Administration's utter failure to protect American consumers from the contaminated blood-thinner Heparin. Tonight, federal authorities in Ohio have finally seized supplies of contaminated Heparin, contaminated with material from communist China.
The Food and Drug Administration were requesting that that tainted Heparin be removed from laboratories in Cincinnati. The Heparin contains a substance made from animal cartilage that is linked to serious medical problems. Again, tonight, federal authorities have finally seized in Ohio supplies of contaminated Heparin, contaminated with material from communist China.
Well, pharmaceutical-maker Pfizer is reportedly training foreign technology workers at facilities in Connecticut. They're using U.S. workers to do the training, workers that the H1B visa workers are replacing. The Connecticut newspaper "The New London Day" reporting the foreign workers will replace American workers receiving less pay.
"The Day" also reporting that Pfizer is looking to move much of its I.T. operations overseas, saying Pfizer wouldn't comment on that story. Contrary to Pfizer's policy, helping manufacturing jobs in this country is key to regaining control of our economy in the minds of many.
Joining me now, three of the best economic thinkers in the country: David Walker, the president and CEO of the Peter G. Peterson Foundation and the former comptroller general of the United States. William Isaac, chairman of the Secura Group and former chairman of the FDIC. And with us, Eugene Flood, CEO of smith, Reid & associates. Good to have you here.
David, this economy, we have two days. We have now matched the performance of a market crash in 1987. What is going on?
DAVID WALKER, PETER G. PETERSON FOUNDATION: Well, clearly, there's a lack of confidence right now. And what the president's going to have to do is he's going to have to end up taking a number of steps to turn the economy around, effectively implement these new authorities that Washington has passed. But what he's also going to have to do is he's going to have to go to the American people and let them understand that we've got a bigger sub prime crises that could hit us if we don't star getting our own financial house in order.
DOBBS: A bigger subprime crisis.
WALKER: That's right. This federal government's own problem, it has a huge problem itself. We have 2 days, for now I've matched the compartments of the Repwarm, I mean; it's got a huge problem itself. But first things first, let's get the economy turned around, implement these new authorities, but let's also try to diffuse the ticking time bomb that is associated with the government's finances.
DOBBS: The idea that we put $1 trillion into the federal reserve system, approaching $1 trillion in what will be spent to stimulate this economy and to bail out institutions through equity investments on the part of the federal government. I mean, when are we going to start to see some sort of result from this program?
EUGENE FLOOD, CEO, SMITH BREEDEN ASSOCIATES: I think it's still going to take some time. We are already seeing some results. So there is some improvement in some parts of the capital markets. But this is many faceted problems and it's going to take time to work through them. There's three different parts to deal with. The first part deals with the confidence issue that David was talking about the lack of confidence and how that has lead to the freezing of lending in the capital markets. The second is the housing sector and that still needs to be stabilized. And then the third thing is to stabilize consumption. That is the real economy through some job creation. So each part of these things is going to take more time.
DOBBS: Do we have that kind of time?
WILLIAM ISAAC, CHAIRMAN, SECURA GROUP: I don't think we have a lot of time. I think the President-Elect is going to have to start acting very decisively. And one of the things I hope they do very soon is name his chief financial people.
DOBBS: You think that he should make -- one of the things that I'm very concerned about, and I'd like to hear your thinking on this, to see more -- we were told this is a crisis and then Congress had to rush through $700 billion. This treasury secretary had no idea in the world what he was going to do with that money and the results has been the inverse of what he described to Congress. Would it be better for the President-Elect to be careful to take that time here to do a very thorough, careful job at selecting a team? Because we've seen the silly political days in Washington of acting urgent and jumping through hoops and it looked like a pr charade rather than substantive government. I feel differently than you, obviously, Bill.
ISAAC: I'm not sure we feel any differently about it. I would say that I believe a fundamental problem that we have is people have lost faith in their government and that's why I think that we are blessed that we just had an election and to have a new team come in. I mean, people -- I really think that's the problem. I think a lot of people have lost faith in the way of our government.
DOBBS: With this government and the way it's handled.
ISAAC: I'm one of the most optimistic people in the world and I've lost faith.
DOBBS: This administration has brought trust to the American people. It's just that straightforward to me -- David.
FLOOD: There are a number of things that I think they can start off with. So, for example, getting right to work on something that's as simple as verifying the status of the GSE's that has implications that lead to the mortgage-backed securities.
DOBBS: Are you talking about Fannie Mae and Freddie Mac?
FLOOD: Right. That has implications for the biggest fixed-income markets in the country.
WALKER: I think the key is, you need to be sure that you have the right people with the right capability. They have to have credibility. It's not just who they are but where they are coming from and that is as important as well.
DOBBS: My opinion is absolutely not. Gentlemen, thank you for being here. Gene we appreciate it. Thank you.
Coming up at the top of the hour, Campbell Brown, "NO BIAS, NO BULL."
CAMPBELL BROWN, CNN ANCHOR: Tonight we're taking a "No Bias, No Bull" look at the blame game that is aimed right now at Governor Sarah Palin. Getting a lot louder too. Palin has now put out the statement calling some of the accusations about the last days of the McCain campaign, in her words, "sickening."
Also, President-Elect Obama pick as White House chief of staff. He's a well-known Washington tough guy. We are going to talk about whether it's a good choice.
Plus, a look at what is in store for the Obama children as they prepare to move into the White House.
DOBBS: Thank you very much, Campbell.
Still ahead here, thousands of our troops coming home early from Iraq. We will be talking with one of this countries most respected former military commanders David Grange next. We will be right back.
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DOBBS: The Pentagon now says it will with draw an army brigade from Iraq earlier then scheduled because of the sharp reduction in violence. A brigade from the 101ST Airborne Division will be leaving Iraq later this month, two months earlier than planned, which means that the number of combat brigades in Iraq will decline to 14 from 15. A brigade has more than 3,000 troops.
Joining me now one of the countries most distinguished former military commanders General David Grange. Thank you for being with us. You've got to be pleased, as are we all, we will see our troops come home earlier than expected.
BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Absolutely. It's a perfect example of condition-based decisions where you plan for the worst and if you can cut troops loose early and it's great for them and their families. DOBBS: Fourteen brigades, talk of 2011 for a complete withdrawal. Our President-Elect says that he will bring our troops home in 16 months. Give us your best assessment as to whether that's practical and doable, and whether it will happen.
GRANGE: Well, if I was president Obama, I planned on the three years and if you get them home in 16 months, that's great. That would be even better. If you have to plan for the worst case and conditions will in fact change as we draw down.
DOBBS: Afghanistan the president elect has said that he will send more troops in to Afghanistan your thoughts.
GRANGE: Totally agree. It needs a troop surge as well as surge and other elements of power, like diplomatic and economic working with the people involved.
DOBBS: Now we have documented on our broadcast the difficult ties facing the Pentagon, our military, we have an army that many of the cords have been broken, we have men and woman in uniform who have been on three and four tours in Iraq. What is going to be required to return our military in particular the army to help and readiness?
GRANGE: Well, rebuilding a lot of equipment is worn out and needs to be replaced and also building the size of the ground forces of the military and that is not so much in just saying we authorize it and here is the money for it but it is also to get the papensity (ph) to serve up so you can actually build those ranks. The last increase in military size has taken about four years just to get 30,000 in the army. So it is a daunting task as well.
DOBBS: David thank you very much. David Grange thank you for being with us tonight. And please join us here tomorrow. For all of us, thank you for watching. Good night from New York.
Campbell Brown "NO BIAS, NO BULL," starts right now.
