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CNN Sunday Morning
Breakthrough in Bailout Negotiations; Gasoline Scarce in the Southeast
Aired September 28, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Hello, everybody. From the CNN Center in Atlanta, this is CNN SUNDAY MORNING. The last Sunday in September.
Can you believe it already?
T.J. HOLMES, CNN ANCHOR: October and then you have November. Something is happening out there.
NGUYEN: There's a lot going on. This has been a busy month.
HOLMES: Yes.
NGUYEN: We'll get to in a in just a second.
Good morning. I'm Betty Nguyen.
HOLMES: And I'm T.J. Holmes. It's 7:00 a.m. here in the east, 4:00 a.m. out in the west coast. Glad you could be here with us. We may have some good news to report, depending on which side of this bailout you're on, actually. There's a breakthrough we've been told. We got that word in the overnight hours.
You see negotiators there, many of them. Well, they are putting things on paper. Told that they essentially do have what appears to be an agreement. Just need to make it official and put it on paper. We'll be talking about the latest developments all morning long -- a big story.
NGUYEN: And speaking of the economy, if you have gasoline in your car, you are a lucky person because these folks -- have waited in line for hours. In fact, in the southeast, gas is in short supply. It's really hard to find a station that is not on empty. We'll have the latest on what is sparking that.
HOLMES: Yes, a lot of that has been going right here in Atlanta. We've been struggling finding gas.
Also, who wears the pants in the family?
NGUYEN: Or the pantsuit?
HOLMES: The pantsuits (INAUDIBLE). We got some new numbers here to see who is really calling the shots at home. Does it men?
NGUYEN: Think pantsuit. HOLMES: Or is the women? We'll tell you about that breakdown and how it breaks down. So, you want to tune in for that.
NGUYEN: All right. The big news today, the announcement of a possible breakthrough that, obviously, has come overnight as T.J. was just telling you about.
HOLMES: Yes. And we're told that the frame work is there and that we essentially do have or they have a deal. They just neat to dot all the i's and cross the t's right now. So, again, they may just have to put this thing on paper to make it officially. We're going to try to sort all this out for you on this major story.
Kate Bolduan for us in Washington, keeping an eye on things on the Hill; Ed Henry at the White House, which certainly the president has been involved in all of this; and our business correspondent with us this weekend, Susan Lisovicz in New York.
We do want to start with you, Kate Bolduan. Again, we're told not official yet but it seems like we do have a deal. We just need to, you know, put it on the right paper with the right letterhead.
KATE BOLDUAN, CNN CORRESPONDENT: With the right letterhead. It feels like we've been repeating ourselves all week and especially since yesterday, T.J. But everyone -- it seems that we may be able to take a little bit of a breath here because they do say that they have -- there was breakthrough overnight in the agreement, to come out and say they are moving on this historic $700 billion bailout.
The negotiations were described to me as heated at times but after hours upon hours at the negotiating table, the party leaders as well as the key principle negotiators here emerged to announce that they had reached an agreement on frame work.
Listen here.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI, (D) HOUSE SPEAKER: We've made great progress. We have to get it committed to papers so that we can formally agree, but I want to congratulate all of the negotiators for the great work that they have done.
SEN. JUDO GREGG, (R) NEW HAMPSHIRE: What we have here is dramatic progress towards accomplishing something that's critical to the American people. We can't underestimate what we face as a threat relative to a fiscal meltdown and the impact it would have on Main Street.
(END VIDEO CLIP)
BOLDUAN: Clearly a lot that kind of go (ph) that is in this deal but some of the framework that includes so we can give you a little bit of detail is that there will be $700 billion available but it's going to be available in installments starting with $250 billion to be available to the Treasury first. Another aspect of the framework includes an insurance element, and that would -- an essential element with premiums being paid by the financial industry. And that was the key sticking point for House Republicans who said this aspect of an insurance element would help to reduce risk that the taxpayers would be taking on.
So, what's next? Well, now, these key negotiators, they are taking this framework back. They're going to present it to their caucuses, probably early this afternoon, and hopefully get their colleagues to sign on. So they say they hope to have an agreement, a final agreement to announce before the worldwide financial markets open.
HOLMES: All right. And, Kate, just real quickly here.
BOLDUAN: Yes.
HOLMES: We know there were several Republicans who -- in the House -- who were just adamantly against this plan no matter how it was going to be structured. Is there enough opposition that it could hold it up?
BOLDUAN: We're definitely going to have to see about that. But their negotiator, Congressman Roy Blunt, he said they do have challenges that might be tough, but he says that the agreement, he hopes, they can get it through. So, it's all going to depend on what the caucuses say today.
HOLMES: All right. Kate Bolduan for us in Washington. Kate, thank you so much.
NGUYEN: Let's take to our Ed Henry now for the view from 1600 Pennsylvania Avenue.
So, Ed, what does the White House say about this? What's its position on the new development?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, Betty, first thing this morning, the White House is feeling cautiously optimistic about the potential for this framework actually becoming a deal that's signed, sealed, and delivered.
I can tell you that the White House feels, right up to the president, believes that the stakes are enormous for the country, and that this is a big deal because some of these negotiators on the Hill during these late-night talks, I can tell you, were reaching out to various experts around the country to get their advice on various provisions -- one of them, the legendary investor, Warren Buffett.
And I'm told by one of the senators who spoke to Buffett that he said to these lawmakers last night that if they didn't take action, they would face, quote, "the biggest meltdown in American history." That was a quote from Warren Buffett in private, "the biggest meltdown in American history."
There are others, though, on Capitol Hill, specifically some of those House Republicans Kate was talking about, who feel that no action may be better than bad action. They're not sure this is the best prescription. That's why the White House has had so much trouble sort of bringing them along, twisting their arms, but late last night when this framework was announced, Treasury Secretary Henry Paulson, who has been the president's lead negotiator, suggested that he's satisfied.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: We've been working very hard on this. And we've made great progress toward a deal which will work and will be effective in the marketplace and, you know, effective for all Americans.
(END VIDEO CLIP)
HENRY: The key word there is progress. It still has to actually, as Kate said, get on to paper. All of the key parties have to look at it. But then it still has to face some tough votes in the House and in the Senate. Whenever they decide they finally get this through, whether it's as early as today or tomorrow. And the bottom line is, those votes could be nail-biters because the conservatives in the House are still not on board. They got to see this on paper, Betty.
NGUYEN: And, you know, if enacted, it's the most dramatic intervention by the government since the Great Depression. This is huge and there's a lot at stake here, especially for the president. Talk to us about that.
HENRY: Well, absolutely. I mean, I mentioned the stakes for the country, and that's first and foremost in terms of dealing with this financial crisis. That affects everyone who's watching this program right now.
But then, we take a step back and look at the president. His legacy is obviously on the line and he has been saying and warning for the last few days that if nothing is done, the nation could be facing a long and painful recession, that various financial systems and institutions are going to fail. That obviously has enormous ramifications not just for the country, potentially, world markets as well, and the president's legacy moving forward, Betty.
NGUYEN: All right. Ed Henry, thank you for that. Obviously, we will be watching very closely as movement takes place there in Washington.
And coming up at the half hour, we're going to get the view from the business sector. Business correspondent Susan Lisovicz will join us live from New York
HOLMES: All right. We turn back to the campaign trail now.
And Barack Obama -- he said you have to be able to walk and chew gum if you're going to be president, and that's what he's doing now on the trail, if you will. He is stumping in Virginia, however, still keeping an eye on what's happening in Washington with the negotiations. He's doing all of this by phone, keeping up with those bailout talks.
In Washington, John McCain placed calls to President Bush and Republican congressional leaders as well.
Well, CNN deputy political director, Paul Steinhauser is aboard the CNN Election Express.
I was just kicked off that bus yesterday but he is now in Memphis, I believe, is where you are now on your way to St. Louis, of course, for Thursday which is a big day. But tell us here -- John McCain said it was important to be back in Washington. He was going to possibly skip the debate. This was so critical.
So, what's his plan now? Is he going to stay up there and inject himself into these negotiations and now it's OK to do it by phone?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, T.J., he is in Washington this morning. Yesterday, he spent the day in D.C. as well. But he didn't go up to Capitol Hill. There's been a lot of criticisms directed at John McCain by the Democrats that he was interjecting presidential politics into these negotiations which was, they were saying a bad thing.
So, McCain will be in D.C. today, hasn't put out a statement yet this morning about the negotiations, but he was cautiously optimistic yesterday.
Barack Obama, as you mentioned, yesterday hanging out with Joe Biden on the campaign trail in Virginia and North Carolina, but making calls and keeping in touch with the negotiations as McCain was. He hasn't put out a statement yet either, but was cautiously optimistic last night.
Both candidates speaking out last night, making speeches -- Obama to the Congressional Black Caucus, McCain to the U.S. Sportsmen's Alliance. Both were talking about the tough economic times but also had some tough talk at their rivals. Take a listen.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA, (D-IL) PRESIDENTIAL CANDIDATE: The truth is, through 90 minutes of debate, John McCain had a lot to say about me, but he had nothing to say about you. He had nothing to say about the struggles Americans are facing today. He didn't even mention the word middle class.
SEN. JOHN MCCAIN, (R-AZ) PRESIDENTIAL CANDIDATE: It was clear that Senator Obama still sees the financial crisis in America as a national problem to be exploited first and solved later. What he doesn't seem to get is that if we don't deal with it right now by working together for the common good, then this crisis could turn into a far-reaching disaster for workers, businesses, retirees, and the American middle-class.
(END VIDEO CLIP)
HENRY: John McCain in D.C. today, as we said. Tomorrow, he teams up with Sarah Palin, again. They're going to be in Ohio. Barack Obama today in Detroit, a battle ground state. Very important, Michigan there. He's with Joe Biden and heads out west, T.J., Colorado and Nevada, two other important states.
HOLMES: All right. But what's important in a few days is what's going happen in St. Louis, which is where you're on your way to.
Tell us how much is on the line for Sarah Palin in this debate? She's going up against a 30-year Senate veteran, a guy who everybody knows, knows his stuff when it comes to foreign policy and a lot of issues. He's been around a long time.
Tell us what's on the line here and do we know how intensely she's being prepped?
STEINHAUSER: Yes, a lot on the line, as you just said right there for that reason alone. Everyone thinks Joe Biden is a pro. And she's a relative novice. She's been, in Philadelphia, kind of cramming and then getting ready for the debate and she's going to be -- except for that tomorrow on the trail with McCain, basically, nonstop preparation for the debate.
But take a look at these numbers, CNN/Opinion Research Corporation Poll, when we asked Americans: who do you think will do a better job in the debate? And it's pretty even, 48 to 46. You'd think Biden would -- Americans would think Biden would do a better job. Maybe that is a reflection of the fact that Americans really don't know either candidate that well.
Anyhow, as you mentioned, we got the bus behind me. We're on the road to St. Louis. A lot of people will be watching Thursday night for the big debate.
HOLMES: We, absolutely, will. Paul, we appreciate you. Appreciate all your help there in Oxford yesterday as well, for that debate. But, yes, the big one is coming up in a few days another big one.
And if you didn't know what Memphis and St. Louis where, we just want to give you that neat little map there.
NGUYEN: Little map for your viewing pleasure.
HOLMES: Paul, thanks again, buddy.
And coming up in our 9:00 hour, we're going to look at the latest ads from McCain and Obama. Well, the election as we've been telling you, as we've been keeping count, 37 days away. You can hear about the candidates' plans, you can hear directly from them. The best political team on television, today, 4:00 p.m. Eastern bringing you "BALLOT BOWL."
NGUYEN: Well, new this morning, though, we have a medical evacuation helicopter that we learned has crashed while carrying two critically-injured patients to a hospital overnight. It went down in Ritchie, Maryland. Now, four people, including the pilot, are dead. The lone survivor is one of the patients, a teenage girl.
And just before the crash, the pilot radioed that he needed to land to avoid bad weather. We're also just getting some video in of that crash. And as soon as we get it turned around, we'll bring it straight to you.
HOLMES: All right. Well, a lot of drivers in the southeast, well, drivers anywhere, you're trying to -- I mean, lots of stuff going on on the roads, trying to avoid other drivers, pedestrians sometimes, whatever. But in the southeast, drivers are trying to avoid something else.
NGUYEN: And that is running out of gas.
(BEGIN VIDEO CLIP, WSB)
UNIDENTIFIED MALE: There's a crisis going on. I mean, I'm standing in line for an hour to get some gas and I ran out of gas right here at the gas station.
(END VIDEO CLIP)
HOLMES: Ran out of gas at the gas station.
NGUYEN: I know that (ph), had to push right there. You know, I had to go get gas at 3:00 a.m. in the morning because the lines were so long, otherwise, that I was afraid I was going to run out of gas waiting in line.
HOLMES: What are you doing out at 3:00 a.m. in the morning, Betty?
NGUYEN: Getting ready to go to work.
HOLMES: Wow. On a Wednesday, Betty...
(LAUGHTER)
NGUYEN: Hey, we're here early. I am kidding you (ph).
HOLMES: All right. We'll have answers for you about why this is happening and why it's happening at a particular part of the country. We're going to be talking to a guy from the "Wall Street Journal" who really knows this stuff and also has a full tank of gas. And you want to hear from him.
NGUYEN: But what we need him to know is where can we get some gasoline.
HOLMES: Yes.
NGUYEN: So, we'll ask him that, too. Stay with us.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I just came from Virginia. Gas is $3.65 a gallon. You know, plentiful. I don't understand why it's so scarce here. You know, a major city in the United States. I don't understand it. It doesn't make any sense.
(END VIDEO CLIP)
HOLMES: It doesn't make any sense that 2/3 of the refineries knocked out by Hurricane Ike are back online. So, why are we still seeing a gas shortage and why is it confined really to the southeast?
Well, "Wall Street Journal" reporter Jeffrey Ball joins us from Dallas. A place that is not in the southeast and that's why he has a full tank of gas this morning as he explained to me during the break.
Sir, thank you for being here. Explain -- we'll start with why it's the southeast right now that's having such a tough time. Atlanta, friends around here, co-workers, everybody is just going through it trying to find gas. Why in the southeast?
JEFFREY BALL, WALL STREET JOURNAL: Well, the big issue is that the southeast depends on refineries in the gulf coast region more than other parts of the country do. So that when you have a storm walloped the gulf coast like what happened over the past few weeks, the southeast really takes the hit.
In other parts of the country, there are more options if supply from the gulf coast goes down. So, for instance, in the northeast, it has an easier time getting supplies of gasoline from abroad, sent in by ship. Midwest has more refineries from within the Midwest to refine gasoline. And the southeast depends largely on the gulf coast and one or two pipelines that go from the gulf coast to the southeast.
The problem really hasn't been those pipelines. The problem, as you say, has been the refineries that have been shut down.
HOLMES: And those refineries, they are back online, we understand, now, but is it just going to take a little time to go back through this cycle, to start, I guess, getting all that gas flowing like it was before?
BALL: Well, it's a little unclear whether they're all back online. They are coming back online, but, you know, one -- the problem has been not so much that the refineries were hit by the weather but that they shut down in anticipation of the storms and getting them back up to full capacity takes time. And then once they're back at full capacity, the gasoline has to start moving over a long distance through that pipeline which takes some time. I think people are talking about a couple of weeks before things are fully restored.
HOLMES: How much has, I guess, the process has been slowed by the fact that many people might not realize the southeast -- we're using a different kind of gas here, a different mandated gas, if you will?
BALL: Yes, that's right. There's a lot of talk about something called "boutique fuels" which is to say that the Environmental Protection Agency, the EPA, requires different blends of gasoline for different parts of the country based largely on air pollution.
And for instance, you're in Atlanta, a place with pretty bad air pollution, and so Atlanta is required to have a different sort of gasoline than other parts of the country, which means that when a storm hits and refinery goes down, Atlanta can't just borrow gasoline from somewhere else. Now, there was an attempt in Atlanta to get a waiver from the EPA which happened, but that multiplicity of gasoline types is tough.
HOLMES: OK. Last thing here, and explain this to people, it's hard to get this through their heads, but it didn't help when we started doing these stories, the media puts this stuff out there, there's a shortage and what did everybody do? They have 2/3 tank gas, they still went to go and get that last quarter. Everyone just rushed out and got more gas.
BALL: Yes, it's human nature, isn't it? Panic sets in and people buy. And it doesn't help the situation. In fact, you guys have a football game in Georgia today which is causing some consternation because there's concern that people are going to rush out and fill their tanks and burn a lot of gas going to the football game which isn't going to help the supply.
HOLMES: My goodness gracious. I forgot all about the game.
All right. Jeffrey Ball, again, has a full tank of gas there in Dallas. We appreciate your explaining some of this to us. And really, people just need to calm down sometimes. But, like you said, it's human nature.
Jeffrey, we appreciate you. Good to see you this morning.
BALL: Good luck in Atlanta. Thanks.
NGUYEN: Yes. We're going to need a little more than luck. It is nerve-racking, though. I mean, you're driving, you have half a tank a little less than that and you're thinking, do I get the gas now or do I hope that by the time I really need it, all the supplies will be back online?
HOLMES: And you are more inside this perimeter, as they say here in Atlanta proper. I'm a little outside where I live. Not really a problem finding gas. And I shouldn't tell people that.
NGUYEN: I'm going to go and visit you more often then.
HOLMES: I should tell people that. But, really, everybody right here in Atlanta can't find gas. Every gas station I pass in my neighborhood, gas, no problem.
NGUYEN: Has those bags on the gas tank. You know, showing that you can't even -- don't even think about it, don't even get out of the car and stop because there's no gas here.
All right. We're going to move on this because Maine is bracing for a possible hurricane for the first time -- get this -- in nearly two decades. Our Reynolds Wolf is in the CNN hurricane center.
HOLMES: Hey, there. Good morning to you, Reynolds.
REYNOLDS WOLF, CNN METEOROLOGIST: That's right. Yes, we're talking Hurricane Bob back in 1991, that's the last time that Maine was affected by a hurricane.
This time, we're talking about Hurricane Kyle. Kyle is still stemming (ph) to the north, (INAUDIBLE) winds around 75 miles an hour. We're going to let you know exactly where this storm is headed and how it may affect us here in the U.S., coming up in just a few moments.
You're watching CNN SUNDAY MORNING. Good times.
(COMMERCIAL BREAK)
NGUYEN: A little history here. For the first time in 17 years, parts of Maine under a hurricane watch. The concern is Hurricane Kyle, a category one storm that's just swishing in the Atlantic towards very tip of Maine. The last check just a few hours ago, Kyle was about 200 miles off the coast of Massachusetts. Its wind is measuring almost 75 miles per hour.
HOLMES: All right. Reynolds Wolf joining us now. It seems like there's been a hurricane to talk about every week for the past month or so. But this one is targeting an area we're not used to talking about.
NGUYEN: Yes.
HOLMES: Like you said, 17 years.
WOLF: Yes. I mean, it's a weird thing to see, but sure enough here it is right there on the map. You see it all moving to the north. It's not really a well-defined storm like some of the ones we've seen in the Gulf of Mexico. It's just of pretty bad shape, it's still a powerhouse, winds at 75, minimal hurricane gusts to 90, moving north around 24 miles per hour. It's expected to continue its march to the north as it does. So, it's going to bring more rainfall to places like New York and back into places like, say for example, Pennsylvania.
But when you get closer to Boston from areas like say, from Boston Commons southward to Barnstable, you're going to be getting the heavy rainfall. It's kind of sporadic at times, a little bit of the heavy downpour and then a break and you're going to have more of this feeder bands that will move through, like this one near Bangor and you're going to have the heavy rain that's going to be coming and going.
With that, there's going to be a chance of some coastal flooding. Some enhanced surf I would say from, well, Martha's Vineyard northward to Kennebunkport in fact, to the Maine border, you're going to be seeing the enhanced wave action.
And the storm should make landfall as we get into 2:00 a.m. on Monday with winds of 65 miles an hour and then passing to the north, you know, St. Lawrence Seaway. Look for very heavy wave action into the Bay of Pointe (ph) and again, the storm increasing a little bit, I'd possibly over the next hour or so and then decreasing farther north it goes.
You know, we've been watching this storm but we've also watching what's been happening in other parts of the country namely Austin, Texas. Look at the great shot that we have for you of the UT Tower. It happens to be lit up, the top part, orange. And that is what they do in Texas for a victory. When Betty Nguyen is in town, it is kind of like a beautiful plaid pattern. In fact, it's been known to explode when she's there.
NGUYEN: And what a victory it was.
WOLF: Yes, you know, it's great. I got to ask T.J. That T.J., when Arkansas fans go to see a game, is their favorite mode of transportation mainly, is it like a John Deere tractor that usually go to Kubota (INAUDIBLE)?
NGUYEN: Oh, Reynolds.
HOLMES: Yes, that is. That's the state vehicle of Arkansas. It's a John Deere tractor.
Why are you offending my entire state?
WOLF: Dude, I feel love for you.
HOLMES: Come after me, it's fine.
(CROSSTALK)
NGUYEN: Look, you just a little salty, they lost 62 to 10. I mean, he still trying to get over this. It's all right, though. There's always next year.
HOLMES: No, it's fine. It was a home game for him (ph).
NGUYEN: Thank you, Reynolds.
WOLF: You bet, any time, guys.
HOLMES: All right.
NGUYEN: All right. On to more important news, shall we?
HOLMES: Yes, we shall. The financial crisis. You know, a lot of people worried about a lot of things including their savings these days. As you get closer to your retirement age, the choices you make about investing become more critical than ever.
And CNN's Christine Romans now has advice that is "Right on Your Money."
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): The instability in the economy likely has folks within 10 to 20 years of retirement worried, especially if they haven't started saving. It is never too late to start saving for retirement.
HILARY KRAMER, AOL MONEY COACH: So, if you're in your 50s you need to think about the fact that retirement is close. It's in the near future. So, you don't want to be as aggressive and you want to look and see where you're invested in terms of asset classes -- cash, stocks, bonds, and illiquid assets.
ROMANS: If you haven't been contributing regularly to an IRA or a 401(k), consider making catch-up contributions.
KRAMER: When it comes to your IRA contribution, make sure that you put the maximum amount in that you can. Take advantage of that opportunity. Even if you're 52 and in 7 1/2 years from now, you're going to be able to start taking withdrawals from that IRA, go ahead and do the maximum. Don't pay the taxes today.
ROMANS: But even if you have been saving for 20 or more years, remember, consistency is key.
KRAMER: Stay consistent always with your contributions, where you want to make changes, if you've been aggressive, but say, have been very concentrated in the stock market and equities, go for more diversification. Start to bring it down a notch so that here in the final inning, you don't lose any money.
ROMANS: And that's this week's "Right on Your Money."
(END VIDEOTAPE)
NGUYEN: There is optimism, though, on Capitol Hill this morning.
HOLMES: Yes, there's also some optimism on Wall Street. Washington is trying to save the country's financial markets. Josh Levs is somewhere around here floating around.
JOSH LEVS, CNN CORRESPONDENT: And good morning, guys.
HOLMES: There he is. Good morning to you, Josh.
LEVS: Yes, I'm floating over here. Hundreds of billions of dollars in debt, you know, keep going to Iraq war. Well, would withdrawal be dangerous? The truth squad is going to look at this squabble between McCain and Obama.
(COMMERCIAL BREAK)
HOLMES: Hello, again. Welcome back on the CNN SUNDAY MORNING. I'm T.J. Holmes.
NGUYEN: Yes. Good morning, everybody. I'm Betty Nguyen.
In Washington right now, congressional staffers are polishing the details on that massive $700 billion financial bailout. House Speaker Nancy Pelosi said overnight that negotiators, I'm pointing here, made great progress toward reaching a deal. House, Senate and White House negotiators worked until 12:30 Eastern on the measure and the bailout rescue plan would be overseen by a board.
According to Senate Budget Committee chairman, Kent Conrad, the $700 billion would be dispersed in stages. So will this plan spark Wall Street? Will it protect your money? Business correspondent Susan Lisovicz is in New York. Susan, what about it? All of these questions. We need some answers as this thing gets closer to becoming a law.
SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Well, and that's the uncertainty playing out in the stock market and has been for some time, Betty. You know, there was no coincidence that the president went on the air very shortly after the market opened on Friday because a deal had not been done. There was a lot of expectation that something would happen and investors around the world are very nervous. What you're seeing with these selloffs is the concern that the credit market is tightening up. You may just be simply looking at a stock selloff which can be frightening in and of itself. What investors are seeing is a more esoteric indexes that show credit is not only tightening but it is getting more expensive. And credit is one of the ways that this economy, the world's greatest is going to get back on track.
NGUYEN: All right. Talk to us about how time sensitive this is. Because we've heard all last week, especially this weekend that they really need something hammered out and agreed upon by this evening, Sunday evening, so that the Asian markets will wake up and see that a deal has been done. Why is that so important?
LISOVICZ: Well, timing is very important because the fact is, I mean, cynics will say you know Washington is fiddling while you know the U.S. economy burns. Understand, it is a huge problem. It's a complex problem. Congress shouldn't be expected to be able to get this done in a day. On the other hand, we're seeing clear and unequivocal signs that the credit market is freezing and Asia opens in 12 1/2 hours. And still nothing - we don't have any details of what's happening.
And so, you know, what's going to happen in the meantime? You're going to see more pressure on financial companies and more stresses on businesses that need access to capital and the housing market of course continues to erode. So this is problematic. And I think that there's no question that lawmakers would like to have something in place within 12 1/2 hours as Asia starts to open and then in turn Europe.
NGUYEN: So we don't continue to see the domino effect. Very quickly though, you know, we're hearing that this could be the worst financial crisis since the Great Depression. That is alarming. At the same time people are saying why aren't I seeing more of an impact? I don't see lines around the block? Unemployment is up but not historically high.
LISOVICZ: That's a very good point. And you know, we have to keep this in context. We're talking about a financial crisis that has yet to spread to the greater economy. Historically speaking, the unemployment rate at 6.1 percent is low. The prime rate 5 percent is low. Inflation is low. But the problem is if people cannot get loans to buy houses for instance and we're talking about people with good credit. It is not going to help the housing market and that is really, probably the epicenter of getting the U.S. economy on track.
NGUYEN: It slows the flow of money. Yes.
LISOVICZ: If businesses can't upgrade, expand or even meet payroll, that's a problem. And that certainly would affect the greater economy. That's why there is such urgency.
NGUYEN: Yes, send it to a grinding halt if we can't keep that money flowing. All right. Susan Lisovicz breaking it down early on a Sunday morning but an important day, nonetheless. Thank you, Susan. We do appreciate it.
LISOVICZ: You're welcome.
NGUYEN: You know, the payoff amounts for some CEOs absolutely stunning. Just imagine on the job three weeks and you are let go with $18 million. We're going to hear about that one in the 9:00 a.m. Eastern hour.
T.J. HOLMES, CNN, ANCHOR: Well, today at church many churches as always will be talking about Jesus, others are going to be talking about John McCain. More than 30 pastors in 22 states expected to openly endorse presidential candidate John McCain. They will be going it do even though federal tax laws prohibit churches from participating in political campaigns. It could really take away their tax exempt status if they go ahead and endorse. But the proponents of today's movement say political endorsements also have potential to alienate the church members.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: A pastor's job is to bring his congregation together and not to divide them along partisan lines or to say that you voted for candidate x so you're a better Christian than the fellow next to you who voted for candidate y.
PASTOR JOY HICE, BETHLEHEM FIRST BAPTIST CHURCH: It's not a matter of whether or not a pastor endorses a candidate. The issue really comes down to who is going to regulate what a pastor can say.
(END VIDEO CLIP)
HOLMES: Well, the IRS says it is aware of the possible endorsements and will take appropriate actions.
Well, to the next U.S. President engaged in face to face talks with Iran. Former Secretary of State Henry Kissinger weighing in now. In a recent statement, Kissinger says he completely agrees with comments made by Senator John McCain at Friday's presidential debate on how he would structure Iranian talks. Listen to the candidates on this issue.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: What Senator Obama doesn't seem to understand is that without precondition you sit down across the table from someone who has called Israel a stinking corpse and wants to destroy that country and wipe it off the map. You legitimatize those comments. This is dangerous. It isn't just naive. It's dangerous.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Senator McCain keeps on using this example that suddenly the President would just meet with somebody without doing any preparation or without having low level talks. Nobody has been talking about that. Senator McCain knows it.
(END VIDEO CLIP)
HOLMES: Well, Kissinger says he does agree with Obama that you know a president should be engaged in talks. He also said there should be some preconditions. You remember at the debate we saw on Friday they really went back and forth about whether or not Kissinger would endorse, whether or not he does believe. In fact that talks should happen without preconditions and now he's come out and said McCain was the one who was actually right at the debate.
Well, troop withdrawal. That phrase has been thrown around a lot this election year and a lot of people no doubt listening when they do hear it.
NGUYEN: Very closely. And we are definitely listening when that came up during the presidential debate on Friday. Our own Josh Levs, a member of the CNN truth squad, is here to sort out what's fact or what's fiction or campaign rhetoric. Whatever you want to call it. So when it comes to that Josh, who is telling the truth?
JOSH LEVS, CNN CORRESPONDENT: And sometimes the rhetoric is fiction, right? I mean that's what we got. So here's the deal, you know how sometimes during the debate, you have a moment in which one person says something and the other one says you're wrong and they just kind of go at it and then you keep going. And if you watch the debate, you don't know who was right. That's what happened in this case. It was about this idea of whether Obama's plan is dangerous. It was specifically looking at this idea of withdrawing from Iraq and whether Admiral Mike Mullen, who is the chairman of the Joint Chief of Staff, thinks that Obama's plan would be dangerous to the country. Here's what happened in the debate.
(BEGIN VIDEO CLIP)
MCCAIN: Admiral Mullen suggests that Senator Obama's plan is dangerous.
OBAMA: That's not the case. What he said was a precipitous withdrawal would be dangerous -
MCCAIN: That's what Mullen said was --
(END VIDEO CLIP)
LEVS: We could let it keep going but you'll just hear it going over and over, the same thing back and forth. So what are the facts? Well they each have something that they're pointing to in that exchange and they both really care what the chairman of Joint Chief of Staff thinks. So let's go to this first graphic now and has a quote from him that you can't see. So I'll just tell you what it says. It came out funny.
He did say that "he thinks the consequences could be very dangerous if there were to be a two-year process of withdrawing from Iraq. But he says he's convinced making reductions based on conditions on the ground is what's ultimately very important." We have one more quote also from him. I don't know if you can see that one. It is also very light. I'll just tell you.
This is also him saying something similar but he says "a precipitous withdrawal is what in his view would ultimately be a problem for America." So all you need to get out of that, what it pretty much boils down to is this. They each have a quote that they can point to kind of back up what their position is and what Admiral Mike Mullen is saying but neither is necessarily a summary of what he's talking about. What I do want to do here is take a moment to talk about the facts and what Barack Obama is actually calling for in terms of this withdrawal.
This is the last graphic that we have. We should be able to see this. This talked about what he wants. Basically, he wants what he's calling a phased removal of combat troops over a 16-month period. So basically it is a withdrawal over that time. But a lot of people didn't realize he also says he wants to keep a residual force there. So it's not all troops. He says they would be fighting counter terror missions and would also work to protect Americans.
So in the end what this boils down to is the case in which they each have a quote that they can point to but Betty and T.J., in the end he did not actually come forward and endorse either of their plans. He's not specifically said that a withdrawal would be dangerous for America so we certainly cannot say that claim in the debate is true. There you go.
NGUYEN: All right. Thanks for sorting it out. Thank you, Josh. Appreciate it.
LEVS: You got it.
NGUYEN: Let's talk about this. Ramadan, the Islamic holy month, is a time of fasting, prayer and sometimes a chance to clear up misunderstandings in America. We'll show you the meaning behind the ritual.
(COMMERCIAL BREAK) NGUYEN: Muslims are celebrating Ramadan this month. And in a special "Faces of Faith" report, we take a look at how that is being observed in America.
(BEGIN VIDEOTAPE)
NGUYEN (voice-over): During Ramadan, Adam Azaibai and his family wake up and fast every day from dawn to dusk. Fasting is one of the tenets or pillars of Islam and once a year millions of Muslims give up food, water, smoking and sex during the daylight hours. Abstinence is both physical and much more.
ADAM AZAIBAI, MUSLIM COLLEGE STUDENT: Islam is like a religion where it's not just about like our rituals but also an inner dimension and that's true of fasting to be able to control your behavior and like to actually just change yourself from the inside and build your character.
NGUYEN: In addition to fasting, Muslims also pray five times a day. The Azaibai's invited us to observe their morning prayers.
Mr. Azaibai defines Ramadan as both the special family time and a time of learning.
AZAIBAI: Ramadan is like a training ground so because the modus operandi of love is not justice, it's much higher. It's sacrifice.
NGUYEN: Adam and his friends are students at Georgia Tech in Atlanta and for them Ramadan represents an outward physical expression of an inward and often misunderstood faith. Saima Sana Mehmood displays her faith by covering her hair and while this doesn't change during Ramadan, it often gives her an opportunity to dispel myths about Islam.
SAIMA SANA MEHMOOD, MUSLIM COLLEGE STUDENT: It's about bringing modesty and the way you dress and the way that you present yourself, you want people to appreciate you not for what you look like but for your beliefs and how you think about the world and your perspectives.
NGUYEN: For these students Ramadan represents an opportunity to gain some perspective of their own.
MEHMOOD: It's not just abstaining from food or drink for 30 days. It's like a mindset. It's implementing everything that you preach in your daily life.
NGUYEN: Fardius Farid is a member of a sorority at Georgia Tech and unlike Adam and his family, she celebrates Ramadan alone. She must adapt to practicing the customary rituals without her family but she takes it in stride.
FARDIUS FARIS, MUSLIM COLLEGE STUDENT: I always have to practice my faith.
NGUYEN: And while Amira is the only Muslim in her sorority. She is not alone. Her roommate Christina, a practicing Catholic and Ria, an observant Hindu provides support and understanding.
UNIDENTIFIED FEMALE: Coming to college is not just learning what you're going to do in your major or to study engineering or to study economics, it's learning about the people that you'll be dealing with. We love each other.
(END VIDEOTAPE)
NGUYEN: And by the way, fasting is meant to teach patience, sacrifice and humility. Ramadan ends with a celebration and a feast. We're also remembering today Paul Newman. T.J.
HOLMES: Well, we had that sad news yesterday of course about the passing of this film legend. There he is there. We'll have more on his own words really as he reflected on his life and his famous roles.
(COMMERCIAL BREAK)
HOLMES: All right. Coming up, you want to stick around for this one. You and I we're going to this civil. But we're going to be talking about this new pew study that shows or who I guess who runs the house.
NGUYEN: Yes. Think pantsuit is all I'm saying.
HOLMES: We'll be right back.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: You know what I feel like. I feel like a cat on a hot tin roof.
UNIDENTIFIED MALE: Then jump off the roof, Maggie. Jump off the roof. The cats jumped of the roof and they land uninjured. Do it. Jump.
UNIDENTIFIED MALE: Jump where into what?
UNIDENTIFIED MALE: Take a lover.
(END VIDEO CLIP)
NGUYEN: I tell you. That's a classic. We are looking back on the career of Paul Newman. In fact, Newman got his first Academy Award nomination for his work in the 1958 film that you were watching right there "Cat on a Hot Tin Roof." That was the same year that he married Joanne Woodward.
HOLMES: Yes. Well, fans of this Hollywood giant are paying their respects this weekend. Many of them are gathering around Newman's star on the Hollywood walk of fame leaving behind bouquets of roses. The actor died in his Connecticut home on Friday after a long battle with cancer. Recently Newman critiqued some of his more famous roles. (BEGIN VIDEO CLIP)
PAUL NEWMAN, ACTOR: I've done my best work, I guess, in the last ten years. I wish I knew as much about acting then as I knew now.
I think I would have made some changes in the "Hustler." I would have made some changes in "Cool Hand Luke."
A lot of guys laying down a lot of rules and regulations.
I would have just done things differently.
What happened to the old bank? It was beautiful.
People kept robbing it.
A small price to pay for beauty.
No one should ever do a remake of "Butch Cassidy and the Sundance Kid."
The only character in the movie that's worth reexamining again was Fast Eddie.
No one can make that shot, you know it, not even a lucky lush.
It was a re-examination of a character 20 years later because at the end of "The Hustler," he had won but he was deprived of any further work as a pool hustler. So it was worthwhile to go back and find out how Fast Eddie kept being Fast Eddie and what he was Fast Eddie at.
Pool excellence is not about excellent pool. It's not becoming something.
UNIDENTIFIED MALE: Yeah?
NEWMAN: Yeah.
UNIDENTIFIED MALE: Like what?
NEWMAN: A student. You got to be a student of the human moves. See all the great -
UNIDENTIFIED MALE: Student of human moves?
NEWMAN: Yeah. That's my area of excellence.
As I say, I wish I had known as much as I know now. I wouldn't have worked as hard.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
NGUYEN: OK. So I'm thinking a woman decided to commission a study on who makes the most decisions at home because, you know, we're always making decisions, it seems.
HOLMES: Yes, you decided to do this study to make it sound like you all make all those decisions. It makes perfect sense.
NGUYEN: A good point.
HOLMES: Great. So, Josh, this shouldn't take long.
LEVS: Oh, yes. You guys are totally unsurprised by this study, right?
NGUYEN: Completely.
LEVS: My wife is totally - everyone. One of our producers, Keisha, she said, of course, everybody knows what answer to give. Right, Keisha. See, here's the thing. Pew research did this study on who makes the decisions at home, and when you average all the answers 43 percent of the time, they say the women make the decisions. And just about half the time 26 percent said men make the decisions. But what's really interesting is the breakdown of the scores. This graphics, I want you guys to see the specific topic. So who decides on weekend activities?
NGUYEN: Well 46 percent together. That's not bad.
LEVS: But when it's one of them, it's way more often just the woman. OK. Let's go to the next one because you're going to see in each category. Look at this, on major purchases, way more often women than the guys. Then let's go through a couple more. We got one more here. All right. So who manages the finances? This one is where they got different answers. It they asked men or women, when they asked women, 45 percent said they do, but when they asked men, only 30 percent in those cases said that women do. So men and women disagree.
NGUYEN: So the math is wrong here.
LEVS: Well, basically they disagree. Like if you ask a woman, almost haft the time, the woman says I make the decisions but if you ask the guy they say no actually I make the decisions quite more often.
NGUYEN: And since the women do all the finances. That's why they spend more on the purchases.
LEVS: Well, this is theory and it's one last one. Who controls the remote?
NGUYEN: Women.
LEVS: Let's look at that. Who controls -
NGUYEN: Pretty tight though.
LEVS: See, this is where it all broke out evenly.
HOLMES: That's ridiculous.
LEVS: I get to control the remote at my house, so I guess I'm like -
NGUYEN: But everything else, off-limits, buddy, right?
LEVS: Well, yes, it's true especially like weekend activities, all these thing. Yeah, I almost have no say. I'm here.
HOLMES: That right there. That last one lets me know that it's not a legitimate study. There is no way -
(LAUGHTER)
HOLMES: No. The guy takes care of the remote. I'm serious.
LEVS: You know -
NGUYEN: Do you think? You have to change it to the channel I want to watch. I mean that's completely fine.
LEVS: He can it.
HOLMES: Where was the study done? At Spellman women's college?
LEVS: All right. Pew research perspective, but I will tell you that yes, some people are questioning it. But they kept getting the same answers all over the country.
NGUYEN: When most of them says 46 percent say they agree together to make a decision.
LEVS: Right. Most of the time, it so happens they make the decisions together but when it's one of them, it's so much more often the woman in almost every one of those cases.
NGUYEN: All right. I'm going to decide this is over. Thanks, Josh. Appreciate it.
HOLMES: We should make those decisions together, Betty.
NGUYEN: Well, I think you concur, right?
HOLMES: All right. Well, we'll turn back to another major financial decision that a lot more people do need to be agreeing on. It could be a historic day. A deal to bailout the financial markets being worked out right now.
NGUYEN: And we are following this event for you in a while. So don't go away.
(COMMERCIAL BREAK)
HOLMES: From the CNN Center, this is CNN SUNDAY MORNING on this September 28th. It's 8 a.m. here at CNN Headquarters in Atlanta. It's 7:00 a.m. in Memphis, Tennessee. Good morning to you all. I'm T.J. Holmes.
NGUYEN: Yes, good morning, everybody. I'm Betty Nguyen. We want to thank you for being with us. Boy, it is a big morning because there has been a breakthrough on the financial bailout. Framework is in place. They just need to get it on paper and agreed to. Talking about $700 billion. Taxpayer dollars so listen up. We're going to have the latest on that.
HOLMES: Also here, the first pictures we have now to show you of this story that we've been telling you about. This helicopter crash, it was actually a medivac, a medical helicopter that was taking patients to a hospital. It crashed and this was kind of the scene we're seeing. New video here. At least four people dead. Somebody did survive and it was actually one of the patients on board.
We'll get into this a little more in a short time from now. And just a horrible story there we have to tell you this morning.
The other story like Betty was just mentioning, the big story, really could be a historic day. Right now, House and Senate, and the White House, all their aides are putting the finishing touches on that $700 billion financial bailout. A deal could come today. We understand that for the most part, a deal is in place, you just have to put it on the right kind of paper and make it official, get the right signatures right now.
Well, the House speaker, Nancy Pelosi, has said that overnight, the negotiators, and we're quoting, "made great progress toward reaching a deal." Well, the House and Senate, and White House negotiators worked until 12:30 in the morning on this measure. It looks like any bailout rescue plan would be overseen by a board. This is one of the concessions being made.
Also, according to Senate Budget Committee Chairman Kent Conrad, the $700 billion would be disbursed not all at one time, but actually in installments as we're being told -- $250 billion first, another $100 billion, and then possibly, another $350 billion later.
Well, our correspondents are keeping an eye on this for us and closely watching these developments overnight and into the morning now. Kate Bolduan on Capitol Hill for us, she's keeping an eye on things there. And also, our Ed Henry is watching things for us at the White House.
All right, we are going to turn to -- there she is, we're going to turn to Kate first this morning.
Well, it could be a big day. Again, I guess, it's very encouraging to hear that, yes, it sounds like we have a deal and all we need to do is dot the i's and cross the t's.
BOLDUAN: Yes, T.J., it could a big day, but we're all -- as I said earlier, everyone has to be just cautiously optimistic because -- in some way, they have been here before. They continue to say they're making great progress, but they're not there yet. They came out last night to say they have reached an agreement on principle, an agreement on framework, after several hours behind closed doors, really hammering out these details.
The meeting is described as heated at times to me, but after all of that, these key principal negotiators and party leaders along with Henry Paulson emerged to say they are a long way there. Listen here.
(BEGIN VIDEO CLIP)
SEN. JUDD GREGG, (R) NEW HAMPSHIRE: What we have here is dramatic progress toward accomplishing something that's critical to the American people. We can't underestimate what we face as a threat relative to a fiscal meltdown and the impact it would have on Main Street.
SEN. CHRIS DODD, (D) BANKING CHAIRMAN: This has been a long nine days. I'm glad we are where we are. It's been unpleasant to have to go through all of this. But because of the leadership of Nancy Pelosi and Harry Reid as well as, of course, the Republican leadership, we're at a point where I think we can say something positive to the American people and to others who are waiting to hear that we can come out of this crisis.
(END VIDEO CLIP)
BOLDUAN: So, coming out of this crisis, here are some of the details that are emerging that are part of this framework. It looks like there will be as part of the deal some limits to executive compensation for these financial institutions that take part in the bailout. There is also seems to be a compromise on the financing of the bailout. The Treasury will have the power to buy up mortgage assets, but the money, the billions, will come out in installments starting with $250 billion.
But there is also in terms of financing, an insurance plan element, that this was really pushed by House Republicans who said they didn't want taxpayers on the hook for so much. This element of the insurance plan, the premiums would be paid by the financial industry and House Republicans seem to think that that will help minimize risk for the taxpayers.
But all in all, really, the deal is not quite there yet. They now have to -- the staff has been drafting it overnight, as you said T.J., and the lawmakers are going to take it to their caucuses to get them to agree on it. And the leaders say they do still hope to have something by the time the financial markets open around the world.
HOLMES: All right. A lot of people have their fingers crossed that the deal could possibly be reached.
BOLDUAN: Yes.
HOLMES: Kate Bolduan for us. We will be checking back in with you as soon as any news happens. Thank you so much.
NGUYEN: All right. We do want to check now, T.J., in with our Ed Henry who is at the White House. Ed, the administration has been watching this very closely. I want to know if they're onboard with this and can we expect a deal by tonight?
HENRY: Well, they're onboard with this framework of an agreement, and Kate is right to be cautious, because there are still a lot of hurdles that have to be cleared before this is signed and sealed on the president's desk. They hope that it gets to the president's desk in the new next days.
But I can tell you from sources here at the White House and on Capitol Hill, I've been told that a key moment in all of this came about 8:20 Eastern Time last night when the president spoke directly by telephone with Speaker Nancy Pelosi and they started hashing out some of the final hurdles. One of the biggest one, we're told, is trying to find a mechanism to make sure that taxpayers would not be on the hook for the entire $700 billion tag. That there'd be some mechanism to make sure taxpayers would be paid either partially or totally back over a number of years so that taxpayers are not shelling out the whole price tag.
At the early morning hours now, I can tell you that White House officials say that in the early stages, they seem pleased with what they're hearing but they do want to see it on paper. And the president's lead negotiator, Treasury Secretary Henry Paulson, last night said, it's looking good.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: We've been working very hard on this. And we've made great progress toward a deal which will work and will be effective in the marketplace, and, you know, effective for all Americans.
(END VIDEO CLIP)
HENRY: Now, this caps off a frantic week of negotiations here at the White House, we had that historic meeting just a couple of days ago here in the cabinet room where the president brought John McCain and Barack Obama in to try to jumpstart it, but what was amazing over the last few days is how that meeting and all other kinds of speeches, primetime address by the president even on Wednesday night, really was not moving those House Republicans.
And we have to remember that even if there is something on paper later today, this still has to go through votes in the House and Senate. And it's not clear yet whether House Republicans are onboard. Some of them are worried that this has sort of been a rush; it's been thrown together too quickly they're going to be going through it with a fine-toothed comb, Betty.
NGUYEN: And the president's also been watching, as we've been talking about, very closely those daily conversations. And a lot is at stake here, isn't it, Ed?
HENRY: Absolutely. I mean, for the president himself politically, and looking forward in the final few months here towards his legacy, if he is correct that the nation could be headed for a long and painful recession if something dramatic is not done, that has enormous ramifications for him, but obviously more important than any political legacy, is the ramifications for the nation.
I can tell you, one of the experts the lawmakers were talking to in the wee hours last night to get his advice was Warren Buffett, the legendary investor. And one of the lawmakers involved in the talks told me that Warren Buffett was telling senators point blank, if you do not act, the nation is going to face its biggest financial meltdown ever.
Now, again, there are other people who are against this bailout saying that's a lot of rhetoric and there's a lot of scare tactics being used to get people to vote and sign off on this quickly, but Warren Buffett is someone who when he talks, the markets listen. And I can tell you from sources inside the room, he was telling people late last night that if they did not act, there was going to be a massive financial meltdown, Betty.
NGUYEN: Yes, it's being touted as the largest government intervention since the depression, but at the same time, like you said, there are people out there, especially those taxpayers saying, why should we have to pay for the mistakes of big business.
HENRY: Absolutely.
NGUYEN: So, we'll see how it shakes out. Ed Henry from the White House this morning. Thank you.
HOLMES: Well, the presidential candidates, Barack Obama and John McCain, are starting their day in Washington. After a network interview, Obama will head to Detroit for a voter registration event with his running mate, Joe Biden. McCain also doing a network interview this morning while campaigning. Both have been getting updates on the bailout talks.
With the first presidential debate behind them now, John McCain and Barack Obama, have released already dueling campaign ads. Take a look.
(BEGIN VIDEO CLIP, MCCAIN CAMPAIGN AD)
NARRATOR: Barack Obama's answers at the first presidential debate.
JIM LEHRER, DEBATE MODERATOR: Do you have something directly to say, Senator Obama, to Senator McCain about what he just said?
SEN. BARACK OBAMA, (D-IL) PRESIDENTIAL CANDIDATE: Well, I think Senator McCain's absolutely right that we need more responsibility. Senator McCain is absolutely right that the earmarks process has been abused. John mentioned the fact that business taxes on paper are high in this country, and he's absolutely right.
NARRATOR: Is Barack Obama ready to lead? No. (END VIDEO CLIP)
(BEGIN VIDEO CLIP, OBAMA CAMPAIGN AD)
NARRATOR: Number of minutes in debate -- 90. Number of times John McCain mentioned the middle class -- zero. McCain doesn't get it. Barack Obama does.
OBAMA: The fundamentals of the economy have to be measured by whether or not the middle class is getting a fair shake. And when you look at your tax policies, you are neglecting people who are really struggling right now. I think that is a continuation of the last eight years and we can't afford another four.
I'm Barack Obama and I approve this message.
(END VIDEO CLIP)
NGUYEN: There you go, the latest ads. You know the presidential election is just 37 days away as you see there, at the bottom of our screen. Well, it was there. Learn about the candidates' plans from the contenders themselves. Dana Bash hosts "BALLOT BOWL" this afternoon 4:00 Eastern, 1:00 Pacific, only on CNN.
HOLMES: We'll turn to some weather now. The weather in Maine is what we used talk about around winter time, nor'easters. This time, we're talking about hurricanes. The last time a hurricane watch was issued in Maine -- 17 years ago. But Hurricane Kyle is coming up the way right now. A category one storm is expected to make landfall between Maine and Canada sometime overnight.
NGUYEN: Let's get the latest on the weather out there, Reynolds has been watching this very closely.
Reynolds, we've been talking about, you know, usually it's like a nor'easter or some other kind of event, but a hurricane? The first time in 17 years.
WOLF: It has been a while. It has been a while. What they're going to be dealing with at first is going to be enhanced surf. I mean, you got some heavy waves, but they're also going to have some enhancement in terms of the rainfall.
Right now, rain is going to be a tremendous issue for parts, I would say, along 95, anyone happens to be, say, in Boston northward into Portland or Bangor, you're definitely going to be dealing with that. It's going to be a windshield wiper action through a good part of the morning.
The rain is at all at this time mainly limited to the coast at this point, but we're going to see more rainfall as the storm drives northward and that's exactly what we anticipate. Currently, winds of 80 miles an hour, has strengthened a little bit moving north and northeastern at 24 miles an hour, should remain off much of the eastern seaboard, possibly making landfall right near the far eastern Maine border. And as we get into Monday and then into Wednesday, fast forwarding all the way into Wednesday, it is going to be downgraded to a tropical depression, at least that's the latest from the National Hurricane Center.
We got a lot on your forecast around the nation. We're going to be talking about that coming up throughout the morning. Until then, sit tight. Let's send it back to you guys at the news desk.
NGUYEN: OK. Thank you, Reynolds.
WOLF: You bet.
HOLMES: And we'll turn to New York now, where seven people stabbed at a night club. A fight happened there overnight. At least two of those that have been stabbed are critically injured.
Police say this happened actually just about four hours ago at a flashy night club in the Queens neighborhood of Astoria. We don't have word yet on what triggered the fight. We'll keep an eye on that story.
NGUYEN: What we do have is this, new video to show you this hour. A medical evacuation helicopter crashed while carrying two critically-injured patients to a hospital overnight. It went down in Ritchie, Maryland. Four people, including the pilot, are dead. Now, the lone survivor is one of the patients, a teenaged girl. Just before that crash, the pilot radioed that he needed to land to avoid bad weather.
In other news, Senator Hillary Clinton called him an American icon. Actor George Clooney says Paul Newman set the bar too high. Well, Newman's death yesterday from cancer is touching colleagues and fans all across the country. Robert Redford says he lost a real friend.
Newman was nominated for 10 Academy Awards. His five daughters say his most unforgettable role centered on charity and his love of family. Newman died at home in Connecticut. He was 83.
HOLMES: And we will turn back now to the economy and one thing hitting a lot of folks is the high gas prices. Now, we have a new problem, the high gas, if you can find it to even pay for it.
NGUYEN: Yes. Some people are willing to pay for it if they could just find it. Long lines, empty tanks, panic setting in. When is it all going to end?
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: When you pass by as many as I pass by that did not have any gas, you turn around and get in line. But, you know, even if you're not that low.
(END VIDEO CLIP)
NGUYEN: Man, it's frustrating. In the southeast, drivers are just fed up with trying to fill up empty tanks, stalled cars. And they're asking this question: Where is the gas?
We're going to take you live now to Summer Jackson in Marietta, Georgia. She's with our affiliate, WSB in Atlanta.
All right. So, Summer, have you found where they're actually selling gas?
SUMMER JACKSON, WSB CORRESPONDENT: Well, yes, this gas station here, Q.T. station does have gas. As you can see, lots of happy customers behind me, sort of. But I'm saying happy, sort of, because there is a long line that's leading all the way out on to the street. This station just got a delivery about an hour ago, and folks were already waiting in this parking lot for the pumps to begin working.
Again, this is an up and down situation. So, even though all these folks are waiting in line out here and that gas delivery was just made, the traffic flow is so heavy, it's hard to determine how long these pumps will continue running. But as you can imagine, happy drivers, but still frustrated ones out here, as well, as you don't know what this situation will turn out to be.
Now, over the weekend, our station talked to some experts and they said it could be weeks or even a month before this situation returns to normal.
Reporting live in Marietta, Georgia, Summer Jackson, back to you.
NGUYEN: All right, Summer. Yes, it's really frustrating, especially, when you get to the gas station, you finally find it, you're on empty, and by the time you get to the pump, they're out of gas.
JACKSON: Yes.
NGUYEN: T.J., it's just a problem that we are seeing here in the southeast.
HOLMES: We are seeing a lot of it. Sorry, I told you, Betty, just a second ago go, I live a little outside the city, not having a problem in my neighborhood finding that gas at all. So...
NGUYEN: Well, great, we'll put your address up on screen and everyone will head to where you live.
HOLMES: That wasn't what I was suggesting, Betty, but OK.
NGUYEN: I don't think so.
HOLMES: Whoever is making our graphic back there, do not put my address up.
NGUYEN: Please don't. HOLMES: All right. But earlier, we're able to talk with a "Wall Street Journal" reporter who was looking into this gas shortage for us, he has some good information. Take a listen to him now.
(BEGIN VIDEO CLIP)
BALL: There's a lot of talk about something called "boutique fuels" which is to say that the Environmental Protection Agency, the EPA, requires different blends of gasoline for different parts of the country based largely on air pollution.
And for instance, you're in Atlanta, a place with pretty bad air pollution, and so Atlanta is required to have a different sort of gasoline than other parts of the country, which means that when a storm hits and refinery goes down, Atlanta can't just borrow gasoline from somewhere else. Now, there was an attempt in Atlanta to get a waiver from the EPA which happened, but that multiplicity of gasoline types is tough.
(END VIDEO CLIP)
HOLMES: All right. That's just one reason there. And another major reason, folks, is everybody kind of just, you know, freaks out a little bit. Everybody gets worried and starts going to get gas when they really don't need it. That leads to a strain on supply, as well and that's why we don't have gas.
Now, the shortage has forced some businesses to cut short workdays. It's also led to some community colleges to cancel their classes.
NGUYEN: My goodness. A lot of people, you know, they have what -- half a tank of gas and they think, well, I don't how long that's going to last, better go ahead and fill that up thus making the lines.
HOLMES: (INAUDIBLE).
NGUYEN: OK. So, clean air can be habit-forming. Beijing officials say they'll take nearly 1/3 of government vehicles off the street. And they'll limit the use of other cars. Seems residents got used to cleaner air during the Olympics when similar restrictions were in place.
Big news today, that $700 billion bailout, oh, the things we could do with that much money.
HOLMES: What could do you? A lot of things. You could fix road, fix bridge...
NGUYEN: Right.
HOLMES: Fix education, make -- yes.
NGUYEN: The list is long, isn't it?
HOLMES: The list is long. You could probably fix just about everything. And we will show you that list. Stay here.
(COMMERCIAL BREAK)
HOLMES: All right. We're keeping an eye on Capitol Hill, keeping an eye on the White House. A lot of stuff happening. This could be a huge day, maybe the biggest financial bailout in American history. We could see that deal on paper today.
NGUYEN: Yes.
HOLMES: They're working it out, been working overnight. Right now, we're told, pretty much the deal has been reached in principle. Again, just need to officially get it on the right paper with the right letterhead and make it all official.
NGUYEN: Dot those i's and cross the t's. $700 billion at stake here, folks. That's what lawmakers say is needed for this big bailout plan.
HOLMES: But maybe many of you wonder what else could do you with all that money? Now, you know what could you do in your personal life with $700 billion.
NGUYEN: Right.
HOLMES: But what could this government do with all that money? Christine Romans is taking a look.
(BEGIN VIDEOTAPE)
ROMANS (voice-over): It's a little like dreaming about winning the lottery. How do better spend $700 billion?
It would build a lot of roads and bridges, aging infrastructure, something that can't wait. $700 billion is almost half the money the American Society of Civil Engineers says is needed over the next five years to get our infrastructure in good working condition. It would put almost 9 million college students through state university and build roughly 35,000 new schools.
ANDREW JAKABOVICS, CENTER FOR AMERICAN PROGRESS: It would fund 10 years of universal healthcare under Obama's healthcare plan. It would more than be 10 years worth of the current funding levels with the Department of Education. I mean, if you want to be frivolous about it, you could buy every NFL team 20 times over.
ROMANS: But there is nothing frivolous about the bailout backlash.
UNIDENTIFIED FEMALE: The lending institutions are getting bailout, but there's no bailout for homeowners.
ROMANS: Divide $700 billion by the median price of a home in this country, and the government could buy almost 3.5 million homes outright.
JAKABOVICS: To put that number in perspective, that's more homes than are currently in default.
ROMANS: Perhaps, the most dramatic comparison, the Wall Street bailout will cost almost as much as the U.S.-led war on terror since September 11th.
(on camera): Of course, it's an academic argument. The administration says, the cost of not bailing out Wall Street would be devastating to the economy, and the government is borrowing this money anyway, it's not like there'd be money to spend if this bailout never happened.
Christine Romans, CNN, New York.
(END VIDEOTAPE)
NGUYEN: So, we've been asking, what do you think about this? A lot of people not really happy with this whole bailout plan because they're saying why should be on the line, we being taxpayers...
HOLMES: Yes.
NGUYEN: ... for bad business by big corporations. So we've been asking our iReporters what they think about it and, boy, are we getting a response.
HOLMES: Yes. And we got Josh to listen to these for us. But, really, we talk about, yes, maybe they will make an agreement, maybe they will put this deal in place on Capitol Hill, but, still, a lot of Americans are not onboard with this plan.
LEVS: Very much not. In fact, I was just pacing (ph) to all these iReports for you and I didn't find any positive ones at all about the bailout, which is why you can see behind me on the screen -- bailout outrage. It's a good summary at iReport.com right now.
We're getting a lot of interesting videos from some of our iReporters. We're going to start off with Chris Schroeder who says, look, there are all these people out there who are struggling to pay their mortgages, he has an idea of what should happen with all those hundreds of billions of bailout dollars.
(BEGIN VIDEO CLIP)
CHRISTOPHER SCHROEDER, IREPORTER: How about if we take that money and pay off their mortgages. Will that not help the economy? I know it sure as heck would help me. Not only would all the shifty loans be paid off and the banks would still receive their money, but the average person like myself, who is struggling to make ends meet, would not only be elated, but we most likely would pump more money into our economy, which is consumer-driven.
(END VIDEO CLIP)
LEVS: Here's another perspective now from Peter Cabrera, who's a doctoral student at Washington University, St. Louis.
(BEGIN VIDEO CLIP)
PETER CABRERA, IREPORTER: It never ceases to amaze me how although, you know, we're told by our politicians that we can't afford universal healthcare, that we are somehow able to come up with money to essentially provide, you know, socialism for the wealthy.
(END VIDEO CLIP)
LEVS: Strong perspective there, socialism for the wealthy, from him.
Now, there is one more thing that really struck me when I was looking at the iReports just now. A bailout blues maybe, a country song inspired by watching Wolf Blitzer. Adam Anderson sent us this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (singing): Saving $700 billion bailout for the companies that bleed us dry. $700 billion bailout makes a bunch of people wonder why. These companies with...
(END VIDEO CLIP)
LEVS: And you can watch the whole thing there at iReport.com. If you want to weigh in with your perspective, all you got to do is go to iReport.com. You can send a video if you want, you can send a song, whatever it is -- photos, videos, stories. As you can see, guys, we're getting so many, even people drawing pictures here.
HOLMES: Josh, where is that iReporter from?
LEVS: Oh, why? Do you think he's from Arkansas?
HOLMES: Well, why is it...
(LAUGHTER)
NGUYEN: All I was going to say it was a southern twang. I wasn't going to say, that's (INAUDIBLE)
LEVS: Actually, Betty, he's from Austin.
NGUYEN: All right.
LEVS: I was trying to set that up.
NGUYEN: A southern flare there.
LEVS: I really like it. It's very catchy.
HOLMES: Inspired by Wolf Blitzer, huh?
LEVS: Yes, he said he was watching Wolf Blitzer when the country boy in him suddenly decided he had to make a song about the bailout plan.
HOLMES: Blitzer wants to break in song often times as well.
All right, Josh, thank you.
LEVS: Wolf will like it.
NGUYEN: All right. We do have some -- those were interesting from iReporters and then we want to you stick around for our next hour when we'll be talking to three guests about what they think of the two presidential candidates after the big debate.
HOLMES: All right. We have a top dog to tell you about in Wisconsin. Mathematicians say they've met a canine that can actually solve calculus.
NGUYEN: Get out of here. Is it possible?
HOLMES: No (ph).
(COMMERCIAL BREAK)
NGUYEN: All right. We may have some proof that your dog can be smarter than you think. A math professor in Wisconsin says this dog, Elvis, instinctively knows calculus.
HOLMES: OK. He doesn't pick up a calculator and do the equation. This is what they say there. The professors through a series of math equations figured out that when Elvis plays fetch, he almost always takes the most direct path to the ball land (ph).
NGUYEN: Don't dogs do that?
HOLMES: Anyway, yes.
NGUYEN: Isn't that what they're wired to do?
HOLMES: OK. Students say they have been inspired by the dog and not their professor.
NGUYEN: They at that time most direct path to class? What? I don't know.
HOLMES: The dog now holds an honorary degree from Hope College. I couldn't even get one of those.
NGUYEN: Oh, goodness.
All right. "HOUSE CALL" with Dr. Sanjay Gupta starts right now.
