PBS NewsHour - 2008-10-03

Channel: malgent

Transcript

Language: English (original, YouTube automatic captions)

[0:08] [music]

[0:10] Good evening. I'm Jim Lara. On the

[0:12] NewsHour Tonight, the news this Friday,

[0:14] then coverage of the financial rescue

[0:16] plan approved by Congress in three

[0:19] parts. excerpts from the House debate, a

[0:21] look at the impact on the broader

[0:23] economy, and a where are we now

[0:26] conversation with our economics

[0:28] correspondent Paul Salman, followed by a

[0:31] post vice presidential debate report on

[0:33] the presidential campaign, the analysis

[0:36] of Mark Shields and David Brooks, and

[0:39] the poetry by Lawson Inada, the poet

[0:42] laurate of Oregon.

[0:45] Major funding for the NewsHour with Jim

[0:47] Ler is provided by

[0:51] The World is changing and how we use

[0:54] energy today cannot be how we'll use it

[0:57] tomorrow. There is no one solution. It's

[1:01] not simply more oil, more renewables or

[1:04] being more efficient.

[1:06] It's all of it. Our way of life depends

[1:09] on developing all forms of energy and to

[1:12] use less of it. It's time to put our

[1:15] differences aside. Will you be part of

[1:17] the solution? [music] Chevron, human

[1:19] energy,

[1:22] Pacific life, [music]

[1:31] the [music] Atlantic Philanthropies,

[1:35] and with the ongoing support of these

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[1:43] And this program was made possible by

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[1:49] and by contributions to your PBS station

[1:52] from viewers like you. Thank you.

[1:59] The financial rescue plan won final

[2:01] approval today in Congress. The US House

[2:04] reversed itself from earlier this week

[2:06] and adopted a revised version. The $700

[2:10] billion measure passed easily 263 to

[2:14] 171. President Bush quickly signed the

[2:17] bill. He said lawmakers acted boldly in

[2:20] the face of public doubts. I know some

[2:23] Americans have concerns about this

[2:25] legislation,

[2:27] especially about the government's role

[2:28] in the bill's cost.

[2:30] As a strong supporter of free

[2:32] enterprise, I believe government

[2:34] intervention should occur only when

[2:36] necessary.

[2:38] In this situation,

[2:40] action is clearly necessary.

[2:43] >> Today's vote marked a dramatic change

[2:45] from Monday when an earlier version

[2:47] failed in the House. The chairman of the

[2:49] committee that oversees banks, Democrat

[2:51] Barney Frank, said events this week

[2:54] turned things around.

[2:55] >> I do believe that the major impact that

[2:59] changed votes was economic reality. Not

[3:01] not, as we've said, it wasn't really the

[3:02] stock market, but it was the credit

[3:03] market. There was people being told that

[3:05] states like Massachusetts and California

[3:07] couldn't roll over notes, that

[3:08] construction sites were being shut down,

[3:10] that automobile loans were being stuck.

[3:12] Uh I think it was reality that that had

[3:15] the major impact in in changing the

[3:17] votes.

[3:18] >> And in all, 33 Democrats and 25

[3:21] Republicans switched their votes today

[3:23] from no to yes. Later, Treasury

[3:26] Secretary Pollson promised to get moving

[3:28] on buying bad debts from banks. He would

[3:31] not say how soon that will happen. We'll

[3:34] have more on the story right after the

[3:35] news summary. The House vote came hours

[3:38] after word that job losses last month

[3:41] were worse than expected. The Labor

[3:43] Department announced employers cut

[3:45] 159,000 positions in September, the most

[3:49] in 5 years. The economy has lost jobs

[3:52] nine months in a row for a total of

[3:54] 760,000

[3:56] so far this year. At a congressional

[3:58] hearing today, the head of the Bureau of

[4:00] Labor Statistics, Keith Hall, said the

[4:02] reductions are being felt across the

[4:04] labor market.

[4:06] >> We've seen uh job loss in construction

[4:09] with uh concentrated loss in

[4:11] construction of buildings. Um, we've

[4:14] seen job loss in in credit

[4:16] intermediation,

[4:18] in real estate, in uh uh automobile

[4:22] production and sales, uh, and and and

[4:25] some financial activities as well. The

[4:27] unemployment rate held at just over 6%

[4:31] last month, but that was because more

[4:33] people stopped looking for work. Hours

[4:35] after the report, the House voted to

[4:37] extend federal unemployment benefits by

[4:40] another seven weeks. So far, the bill

[4:42] has been blocked in the Senate. Wall

[4:45] Street lost ground today despite passage

[4:47] of the rescue plan. Concerns over the

[4:50] unemployment data wiped out a rally. And

[4:52] the Dow Jones Industrial Average lost

[4:55] 157 points to close at 10,325.

[4:59] The Nasdaq fell 29 points to close at

[5:02] 1947. For the week, the Dow lost more

[5:05] than 7%. The Nasdaq fell nearly 11%.

[5:09] The presidential candidates weighed in

[5:11] on the House vote today. Republican John

[5:13] McCain commended lawmakers for taking

[5:15] action, but he said it's an outrage

[5:18] that's even necessary. Democrat Barack

[5:20] Obama also supported the plan, but he

[5:23] said it's critical that homeowners

[5:25] benefit in the end. We'll have more on

[5:27] the campaign later in the program

[5:29] tonight. A fight erupted today over the

[5:32] sale of Wacovia. The banking giant

[5:34] announced it agreed to sell all its

[5:36] operations to Wells Fargo for $15

[5:39] billion. There would be no government

[5:42] involvement. That trumped Croup's bid of

[5:44] more than 2 billion for Wacobia's

[5:47] banking operations only. The Federal

[5:50] Deposit Insurance Corporation underwrote

[5:52] that deal. Today, Cityroup insisted it

[5:55] had an exclusive agreement. The FDIC

[5:58] said it stands behind that agreement,

[6:00] but plans to review the Wells Fargo

[6:03] deal. In Iraq today, the presidential

[6:05] council ratified a law to organize

[6:07] provincial elections by January. They'll

[6:10] be the first in four years. The law was

[6:13] delayed for months by disputes among

[6:15] Sunni, Shiites, and Kurds. Also today,

[6:18] an American soldier was killed in a

[6:19] roadside bombing. 25 Americans died in

[6:22] Iraq during the month of September. And

[6:25] that's it for the news summary tonight.

[6:27] Now, Congress passes the rescue plan,

[6:30] the economic impact, some Paul Salmon

[6:32] thoughts, the presidential campaign,

[6:35] Shields and Brooks, and an Oregon poet.

[6:47] Now, the first of our three takes on the

[6:49] economic crisis tonight. NewsHour

[6:51] congressional correspondentWami Homeman

[6:52] reports on today's final approval of the

[6:55] financial recovery plan. For the second

[6:58] time this week, this body will consider

[7:01] a plan to unclog our banking system and

[7:05] unfreeze our credit markets. The sense

[7:07] of deja vu on the House floor today was

[7:10] infused with caution. Supporters of the

[7:13] economic bailout bill knew that

[7:14] overconfidence contributed to the bill's

[7:17] shocking failure on Monday.

[7:19] Now buttressed by a three-4 majority

[7:22] vote for the bill in the Senate on

[7:24] Wednesday, members prepared to revote

[7:26] the bill that has as its centerpiece the

[7:28] unprecedented authorization for the US

[7:30] Treasury to buy up to $700 billion worth

[7:34] of tainted mortgagebacked securities.

[7:37] Most of the no votes on Monday came from

[7:39] Republicans. Today, their leader, John

[7:42] Boehner of Ohio, said even passing the

[7:44] bill this time would not be a cure all

[7:46] for a worsening economy. We're in the

[7:48] midst of a recession. It's going to be a

[7:50] rough ride, but it'll be a whole lot

[7:53] rougher ride if we don't pass this bill.

[7:56] But I will say to all of you,

[7:59] when this bill passes today, remember

[8:01] those words, in God we trust because

[8:05] we're going to need his help. On the

[8:06] heels of the House's surprising

[8:08] rejection of the financial rescue plan

[8:10] Monday, US markets deflated, credit

[8:13] markets squeezed tighter, and the stock

[8:15] market temporarily lost 1.2 2 trillion

[8:18] in value. Over the next four days, those

[8:21] realities were not lost on members

[8:23] constituents back home, nor on members

[8:26] themselves. Democrat Gerald Nadler's

[8:28] district includes Wall Street.

[8:30] >> Now we face a very real crisis. The

[8:34] credit markets are shutting down. People

[8:36] will not be able to get car loans, loans

[8:39] for store inventories. There will be

[8:41] thousands of bank failures, millions of

[8:43] job losses. This is the only bill that

[8:45] can be agreed upon now.

[8:48] We're not sure this bill will solve the

[8:50] crisis, but it might. More than 220

[8:53] Republicans and Democrats voted no on

[8:56] Monday to leave the bailout 12 votes

[8:58] short of passage.

[9:00] >> By today, many of them had changed their

[9:02] minds, having noted a different economic

[9:05] and political landscape, said majority

[9:07] leader Senny Hoyer.

[9:09] >> Some were convinced when a vote in this

[9:11] in this chamber led to the evaporation

[9:12] of $1.2 trillion dollars of wealth. in

[9:16] about 120 seconds.

[9:19] Some were convinced when they heard that

[9:21] America lost another 159,000

[9:25] jobs last month.

[9:27] >> Monday I cast a bluecollar vote for the

[9:29] American people. Shook the foundations

[9:31] of Wall Street demanding more

[9:33] accountability. But today I'm going to

[9:36] cast a red, white, and blue collar vote.

[9:38] Republican Zach Wamp said at home in

[9:40] Tennessee, he was inundated with stories

[9:43] of businesses and families who couldn't

[9:45] get access to credit.

[9:47] >> This is an awful place to be. This is a

[9:49] bad vote either way. Uh it's real

[9:52] unpopular, but we don't have any choice.

[9:54] Uh next week could be really, really

[9:56] bad. I'm not willing to take that

[9:58] chance.

[9:58] >> Was anything lost by waiting these four

[10:00] days, Carson?

[10:01] >> No. As a matter of fact, uh you know, if

[10:03] we had another month, we could even do

[10:05] it better. But I don't think we have

[10:06] another month. I really don't. I'm

[10:08] really worried sick about payrolls being

[10:10] met, unemployment reaching double

[10:12] digits, and I'm talking about in the

[10:13] next 30 days because money is not

[10:15] moving.

[10:16] >> Chicago Democrat Jesse Jackson Jr. voted

[10:18] no on Monday along with a dozen other

[10:21] members of the Congressional Black

[10:22] Caucus. He said talking to his party

[10:25] standardbearer and fellow Chicagoan

[10:27] helped change his mind. I talked with U.

[10:30] Senator Barack Obama who made it very

[10:32] clear to me uh that the cost and the

[10:35] price of inaction was too great to the

[10:37] nation and he assured me of my chief's

[10:40] concerns uh regarding basic individuals

[10:43] who more often than not during the

[10:45] course of his debate have been nameless

[10:47] and faceless.

[10:48] >> But Jackson said the House needed the

[10:50] four days since Monday to work its will.

[10:53] You heard the language begin to emerge.

[10:55] Wall Street versus Main Street. And then

[10:57] a fundamental change in the language

[10:59] after Monday's vote. This is clearly

[11:01] about all of the streets of America, not

[11:04] just Wall Street, not just Main Street,

[11:06] but every single corner in America is

[11:08] profoundly affected by the inability to

[11:10] get credit, to buy a car, uh to pay your

[11:12] mortgage. And so I think members of

[11:15] Congress um got it. And I think they

[11:16] made a move in that direction. The A's

[11:18] are 200.

[11:18] >> This afternoon, the rescue plan was

[11:20] approved with more than 40 votes to

[11:22] spare. Afterward, House Speaker Nancy

[11:25] Pelosi said the agenda of the next

[11:27] Congress likely will be full of efforts

[11:29] to help move a sagging economy.

[11:32] >> It will be about

[11:34] accountability.

[11:36] It'll be about regulation, regulatory

[11:39] reform, which is essential. And it'll be

[11:42] about building an economy with a focus

[11:45] on the middle class. Well, many more

[11:48] Americans will participate in the

[11:50] economic security of Americans.

[11:53] >> For now, however, there was celebration.

[11:55] Democratic leader Hoyer and Republican

[11:57] whip Roy Blunt appeared together this

[11:59] afternoon.

[12:00] >> I was trying to decide if I got a sing

[12:02] if I had a single day this week that my

[12:04] first telephone call wasn't either to or

[12:06] from uh the majority leader. Uh and so

[12:09] that's how I started my day every day

[12:10] this week. And as good a friends as we

[12:12] are, I'm I'm hoping that next week next

[12:14] week that's not going to be the case.

[12:16] Republican Blunt said his members both

[12:18] liked the tax incentives and new banking

[12:20] measures added to the bill and

[12:22] recognized the urgent need to pass the

[12:24] bailout.

[12:25] >> I think that members don't necessarily

[12:27] have to pay a political price for

[12:29] changing their vote because the the

[12:31] package did change and the circumstances

[12:33] did change.

[12:33] >> In a highly unusual step, Speaker Pelosi

[12:36] immediately signed the financial rescue

[12:38] legislation. Less than an hour later,

[12:40] President Bush signed it into law. and

[12:44] to Jeffrey Brown. Even as the

[12:46] controversial bailout package became law

[12:48] today, there were more signs of economic

[12:50] weakening. Nationally, as we heard in

[12:52] the new summary, the loss of nearly

[12:54] 160,000 jobs last month. And from

[12:57] California, impact from the credit

[12:59] squeeze as Governor Schwarzenegger

[13:01] warned the US Treasury that his state

[13:03] may need to borrow 7 billion just to pay

[13:06] for day-to-day operations. More on all

[13:08] this now from Chris Haney, director of

[13:11] policy and research at the National

[13:12] League of Cities, an advocacy group for

[13:14] municipal governments across the

[13:16] country, and Mark Xandy, chief economist

[13:18] at economy.com, an economic consulting

[13:21] firm who joins us from Philadelphia.

[13:23] Well, Mark Xandy, break down the jobs

[13:25] report for us. How broad was the damage?

[13:28] It was broad. It was bad. We lost

[13:30] 160,000 jobs. We've lost 760,000 jobs

[13:34] since the beginning of the year. In

[13:36] September, the job losses were very

[13:38] widespread. Uh construction,

[13:40] manufacturing,

[13:42] transportation, retailing, financial

[13:44] services, information services,

[13:45] professional services. Really, it's

[13:47] easier to list industries that added to

[13:48] payrolls, and that would include

[13:49] healthcare, uh educational services, and

[13:52] government. Other than that, uh there

[13:53] was there was just job losses.

[13:55] >> The actual unemployment uh percentage

[13:58] stayed the same. Explain that one again

[14:00] for us. Well, it did jump very

[14:02] significantly uh in August. Uh and uh I

[14:06] think it was just a bit of of temporary

[14:08] resppite. I think we will see the

[14:10] unemployment rate rise quite

[14:12] significantly uh in in the not too

[14:14] distant future in the months ahead.

[14:16] >> Chris Haney, uh I cited California's

[14:19] action today. What's the what's what's

[14:20] California's problem and how are other

[14:23] states and and cities feeling it? Well,

[14:25] Governor Schwarzenegger's warning

[14:26] actually illustrates three major

[14:28] concerns for state and local governments

[14:30] that are related to what's happening

[14:31] with the financial crisis right now. Uh

[14:33] the first is just short-term access to

[14:35] cash. Much like a corporation or a small

[14:37] business needs access to money to pay

[14:40] payroll or to cover projects or to

[14:42] handle day-to-day operations, states and

[14:44] local governments need that same kind of

[14:46] money. And that's dried up currently and

[14:47] that's a major concern. A second more

[14:49] medium-term concern is that what's

[14:52] happening in the market is curtailing

[14:53] cities and states ability to borrow

[14:56] money for ready to go projects. So for

[14:57] infrastructure, roads, bridges, the

[15:00] types of things that they put major

[15:01] amounts of money into and it uh

[15:03] investments that relate to jobs and

[15:04] income. Uh those are also at risk

[15:06] currently. Uh speaking much more broadly

[15:09] uh the governor's statement and what's

[15:10] happening for state and local

[15:11] governments uh and what's happened today

[15:14] in the with the passage of the bill in

[15:15] the in Congress is about just getting

[15:18] the economy moving again. Most of what

[15:20] states and local governments need to

[15:21] happen here is for income, property

[15:24] sales, the sources of the local tax

[15:26] revenues. The the the functions of

[15:28] government need to start moving again

[15:30] and those are related to what happens in

[15:31] the economy. Are there are there

[15:32] specific examples of projects that are

[15:35] already being curtailed or cut back or

[15:37] can't get off the ground?

[15:38] >> Sure. There's examples all over the

[15:39] country. I just to site a few. In Kansas

[15:41] City, Missouri, uh they put on hold $200

[15:44] million worth of water financing bonds

[15:47] because they couldn't get access uh to

[15:49] the credit in the markets. Uh counties

[15:51] in North Carolina, Wake and Durham

[15:53] County had trouble getting access to

[15:55] funds and have put projects on hold.

[15:57] uh uh infrastructure improvements to

[15:59] airports in Chicago and Miami, in

[16:02] infrastructure improvements to roads in

[16:04] Washington DC. All of that's put on hold

[16:06] currently and it mostly has to do with

[16:08] access to credit. Marks Andy, where

[16:10] where else do you see the credit squeeze

[16:12] hitting in terms of uh businesses, for

[16:15] example? What kinds of businesses? What

[16:17] kinds of loans? uh all kinds of

[16:19] businesses, big businesses, uh the

[16:21] biggest in the nation are having trouble

[16:22] uh issuing uh short-term uh commercial

[16:25] paper, which is what they use to finance

[16:26] a lot of their activities. Uh small

[16:28] businesses uh mid-size businesses are

[16:30] getting credit lines pulled by their

[16:32] very nervous bankers. Uh and uh this is

[16:35] having an immediate impact and many

[16:36] businesses are now uh thinking about uh

[16:39] layoffs uh certainly cutting back on uh

[16:42] investment projects. uh uh anything and

[16:45] everything that they do is now in

[16:46] jeopardy because of a lack of credit.

[16:48] >> And what what about individuals? In what

[16:50] ways are individuals being hit? And of

[16:52] course, individuals are getting hit hard

[16:54] as well. Uh if you don't have a pristine

[16:56] credit score, then it's very difficult

[16:58] if not impossible to get any kind of

[16:59] loan, certainly a mortgage loan, uh

[17:01] vehicle loan, uh even student loans. Uh

[17:05] a lot of other uh folks have have home

[17:07] equity lines of credit uh that might

[17:09] have been 10 $15,000 and the banks are

[17:12] pulling those credit lines. Uh they no

[17:14] longer have them. Uh and um everyone is

[17:17] being affected from top to bottom.

[17:18] >> Are there just staying with you Mark are

[17:20] there different regions being hit in

[17:21] different ways?

[17:23] >> Well, the the hardest hit areas are the

[17:25] areas where the housing market is uh the

[17:28] worst. Uh that would include uh places

[17:31] like California, Arizona, uh Nevada, uh

[17:35] Florida, parts of the Northeast like

[17:37] Providence around Washington DC, and of

[17:40] course the industrial Midwest where uh

[17:42] the auto industry is getting hammered

[17:43] and people are under a lot of pressure.

[17:45] So Michigan, Ohio, the these are the

[17:47] areas where where the economic problems

[17:50] are their deepest and the credit is uh

[17:52] been most restricted.

[17:53] >> Is that what you're seeing in terms of

[17:55] uh the effects on cities? Yeah, almost

[17:57] the exact same thing. Uh we do a major

[17:59] study of city finances every year that

[18:01] we've just come out with in the last two

[18:02] weeks and our results show that cities

[18:04] in the West, Southern California, uh

[18:07] Nevada, Arizona, places like Florida, uh

[18:11] the industrial Midwest, they're all

[18:12] struggling and it's mostly related to

[18:13] what's happened in the housing market.

[18:15] The housing market drives property tax

[18:17] revenues. Property taxes are the major

[18:19] source of local government revenue in

[18:20] this country. Uh and so what what we've

[18:22] been seeing for the last year, year and

[18:24] a half with housing values and now

[18:25] starting to starting to take hold in

[18:27] cities. Now the the jobs numbers that we

[18:29] started this discussion with that goes

[18:31] to your your number three I think the

[18:32] broader economic impact on on cities and

[18:35] states. How do the job numbers play into

[18:37] the the budgets and revenues of of

[18:39] cities? Well, in a couple of different

[18:41] ways. Uh most directly there are a

[18:42] number of cities around the country

[18:44] particularly larger cities uh in this

[18:46] country that have access to a local

[18:47] income tax. And so what happens with

[18:49] people's jobs, their wages, their

[18:51] income, their sense of wealth affects

[18:53] those tax revenues. So for those cities

[18:54] in particular, there's going to be a

[18:56] direct effect. But there's also a

[18:58] broader effect on the economy in terms

[18:59] of people's sense of wealth and what

[19:01] happens to uh the choices that they make

[19:03] in the economy. So do they feel like

[19:05] they can sell their home? Do they make

[19:06] major purchases? Uh and do they feel

[19:09] like their incomes at a level where they

[19:10] can where they can make those decisions?

[19:12] And when they don't, economic activity

[19:14] stops. And the sources of revenue, sales

[19:16] taxes, property taxes, income taxes, all

[19:18] go down at the same time.

[19:20] >> And Mark Xandy, that sense of confidence

[19:22] of well-being no doubt goes to

[19:24] retailers. And as we look forward to uh,

[19:27] you know, look ahead to the end of the

[19:28] year, Christmas season and all.

[19:30] >> Yeah. You know, the other major fallout

[19:32] from this financial panic is it's a

[19:34] bodyb blow to confidence. Uh, you know,

[19:36] business people had been quite resilient

[19:38] up to this point. uh they'd come into

[19:40] this in pretty good financial shape and

[19:42] you know they were laying off some

[19:44] workers but nothing like we've seen in

[19:45] past recessions but you know I think

[19:47] with what they've are suffering through

[19:49] now I I think they're going to pull back

[19:51] and we're going to see very significant

[19:53] layoffs and cuts in investments and for

[19:55] households uh you know I think uh this

[19:57] crystallizes in their minds that they

[19:59] are worth a lot less than they were a

[20:01] year ago and they will be worth a lot

[20:02] less for a long time to come and and

[20:04] when you when you believe that uh you

[20:06] you change your behavior you stop doing

[20:08] lots of the things that you were doing

[20:09] before and of course that that's a big

[20:11] hit to the economy. So this uh this hit

[20:13] to confidence I think is very serious

[20:15] and in why we're going to have

[20:16] significant economic problems well into

[20:18] next year

[20:18] >> and you're expecting Christeni that

[20:20] other cities like and states like

[20:22] California will be coming to the federal

[20:23] government for potential help.

[20:26] >> Yeah, I think as we talk about going

[20:27] into next year we talked about the

[20:29] potential for stimulus packages coming

[20:30] out of the federal government. Aid to

[20:32] states, aid to local governments will

[20:34] have to be a part of that equation. Uh I

[20:36] think we also have to recognize that

[20:37] what's happening in the economy now is

[20:39] likely to play out over the next two to

[20:41] three years in cities. There's always a

[20:42] bit of a lag for states and local

[20:44] governments in terms of what happens in

[20:46] the economy and when it takes effect in

[20:47] their revenues. Uh what we're seeing

[20:49] today is

[20:49] >> why is that exactly?

[20:51] >> Well, for cities in particular, it's

[20:52] about property taxes and so the

[20:54] assessments that you pay on on the value

[20:56] of your property, those are typically

[20:58] one to two years behind what's actually

[21:00] happening in the market. So uh the

[21:02] property tax collections that we're

[21:03] seeing today were based on what we were

[21:05] seeing what was actually happening with

[21:06] markets in the summer of 2007 for

[21:08] instance. So if you think about what's

[21:10] happening with financial conditions

[21:12] nationally today that's going to be

[21:14] playing out in 2009 2010 and the extent

[21:17] that the economy continues to struggle

[21:18] maybe even longer. So uh it's it's going

[21:21] to be some tough sweating for cities and

[21:22] states for the next couple of years.

[21:24] >> Chris Haney and Mark Xandy thank you

[21:26] both very much.

[21:26] >> Thank you. And now to an end of another

[21:29] wild week. Where are we now?

[21:31] Conversation with our economics

[21:33] correspondent Paul Salman. Paul, you

[21:36] recently on the program did a piece on

[21:39] the breakdown of trust. You were talking

[21:41] about credit, what credit means.

[21:43] >> Is that what we're seeing now?

[21:44] >> Yeah. You know, I've been saying that on

[21:46] this program every time we've had a

[21:48] crisis back into the savings and loan.

[21:50] You're a credit from the Latin credere

[21:53] to repeat myself yet again. Credibility.

[21:57] That's what confidence is. That's what

[22:00] an economy is based on. I trust you to

[22:04] pay me back if I lend you money. Same

[22:06] for you to me. Same for every bank to

[22:09] every other bank.

[22:09] >> The individuals, the banks, the cities

[22:11] we just heard about all look all asking

[22:14] for a loan.

[22:15] >> Well, just think if it's a an economy

[22:16] that runs purely on cash. I mean, you

[22:19] have to trust the other person. And

[22:21] that's what's that's what's vanishing

[22:24] here. you. We've heard a lot about

[22:26] liebore, the London interbank rate.

[22:29] That's how much banks charge each other

[22:32] in Europe for overnight loans.

[22:36] That number has skyrocketed. How could a

[22:39] bank exactly like the bank you're going

[22:40] to lend money to not be the bank you're

[22:43] going to lend money to is exactly like

[22:45] yourself. Sorry. How could that not how

[22:47] could it go bankrupt overnight? But

[22:49] that's what people are worried about.

[22:51] And that you we heard earlier in the

[22:52] week about the Ted spread. That's the

[22:54] Treasury to Euro dollar spread CED.

[22:57] That's liebore, the blended interbank

[23:00] rate diverging from the risk-free

[23:04] treasury rate because it's very risky in

[23:07] banks view to lend money to each other.

[23:10] How how much less trust could you have?

[23:11] >> So, we're we're we are in the midst of

[23:13] this. But can we say how this happened?

[23:17] Why this happened? I mean, markets are

[23:19] supposed to work. Markets are supposed

[23:20] to clear. Yes.

[23:22] >> Why is this happening? Well, you know,

[23:23] market market skeptics have always said

[23:25] market failure. You know, that's a

[23:28] common phrase. Free market

[23:29] fundamentalism does not work. Uh I

[23:32] talked to Bob Glowber who ran the

[23:34] resolution trust this morning. Um and

[23:38] he's a finance professor, a regulator.

[23:40] Uh he characterized himself as deeply

[23:43] depressed. Deeply depressed. Why?

[23:45] because what he believes in

[23:49] markets clearing, markets working,

[23:52] markets managing by themselves doesn't

[23:55] seem to work. And it's sort of a

[23:56] repudiation, I use that word with him,

[23:58] repudiation of what a guy like him and

[24:02] thousands of others like him have been

[24:03] teaching all these years. So in the

[24:05] midst of is is a way of looking at

[24:07] what's happening in Washington and Wall

[24:09] Street this week. It's in the midst of

[24:11] this kind of a breakdown that we're

[24:13] rethinking how markets work and I guess

[24:15] how government's role in the markets

[24:19] work.

[24:19] >> Yeah. I mean we're rethinking it every

[24:21] every minute, every moment. They're

[24:23] rethinking it after the bailout pass

[24:25] today. Uh Lehman Brothers, don't bail

[24:28] out Lehman Brothers. Let the market

[24:30] punish the malfactors. the guy the guys

[24:32] who took too much risk. And then after

[24:34] Lehman Brothers went down, suddenly

[24:36] markets seized up even more, credit

[24:38] markets in particular. And then people

[24:40] began to wonder, gee, maybe we should

[24:42] have bailed out Lehman Brothers right

[24:44] afterwards. We bailed out the biggest

[24:46] insurer, AIG. I mean, we nationalized an

[24:50] insurance company in this country. So,

[24:51] yes, we're making it up as we go along.

[24:53] We're rethinking it as we go along every

[24:56] minute. And, you know, I hope it's over.

[25:00] I wish it were over. So do we all, but

[25:02] there's no indication that it is.

[25:04] >> You know, the the most extraordinary

[25:06] thing, I guess, as I was watching the

[25:08] bailout uh package as it went through

[25:10] the last couple weeks, and we saw it

[25:11] again just now in Cwley's piece.

[25:13] >> Yeah.

[25:13] >> The people who back it, I mean, the

[25:16] supporters,

[25:17] >> they don't like it. They don't like any

[25:19] part of it. They're they're bad mouthing

[25:21] it as they go to vote for it.

[25:23] >> Well, yeah. I mean, you saw Nadler even

[25:25] saying, "This is a bad package. It's the

[25:26] best we got." Well, look, you're you're

[25:28] nationalizing banks. You're

[25:30] nationalizing insurance companies.

[25:32] You're bailing out lenders instead of

[25:34] borrowers. You're going down a socialist

[25:37] path. I mean, what is socialism if it

[25:40] isn't more government involvement in the

[25:42] economy? What's to like from the point

[25:45] of view of somebody who believes in

[25:46] markets? And so, of course, everybody

[25:49] sort of backs off and constituents are

[25:52] angry and so they don't want to, you

[25:54] know, go in whole hog. But as the member

[25:58] after member said, "What else do you do

[25:59] at this point?" Paul Krugman, a liberal

[26:01] columnist in the Times today said, "It's

[26:03] a stinker." He said, characterizing this

[26:05] dial, but we better do it. So, in terms

[26:10] of what comes next, I guess maybe the

[26:12] question is what questions are still out

[26:13] there. What what what what as we look

[26:16] forward, what do we watch for next?

[26:20] Well, how how much do we become a

[26:24] uh socialized econom I mean I mean how

[26:26] say the United States is maybe 30% of

[26:29] our economy is government

[26:31] uh more or less Denmark 60%.

[26:36] Uh are we Scandinavianizing the American

[26:39] economy and to what extent and how fast

[26:42] and then of course the scarier question

[26:45] yet which is will it work? I mean, can

[26:47] you can you do that in an economy like

[26:49] this? Can you do that in a world

[26:51] economy? In the 1990s, Sweden

[26:53] nationalized its banks. Not for a very

[26:55] long time, reprivatized them, made money

[26:58] on the deal. Uh, but here we're talking

[27:00] about insurance companies, hedge funds.

[27:03] Uh,

[27:03] >> yeah, they have to go in and figure out,

[27:05] look at all those bad loans and see.

[27:07] >> It's the bad loans, but it's also

[27:09] suppose people aren't holding the bad

[27:12] loans, but they're bankrupt or they're

[27:13] going to be bankrupt. Ford, General

[27:15] Motors. I mean, I don't mean to scare

[27:16] people. I have no idea what's going to

[27:18] happen. Unfortunately, nobody else does

[27:20] either. But it it it's if the go the

[27:23] government is known as the lender of

[27:25] last resort or the Fed is last resort. I

[27:28] mean, and that's what we're doing now.

[27:30] Government can do that. Government has

[27:32] the infinite ability to do that. And our

[27:35] government is doing it and it's a very

[27:36] good thing that our government can

[27:37] mobilize and do it as opposed to be

[27:40] paralyzed like Japan was say in the 90s.

[27:45] But the um it's a huge huge change.

[27:50] Yeah. And you can understand why it

[27:52] would be controversial. All right. Paul

[27:54] Sman, thanks again.

[28:05] Next tonight, the presidential campaign

[28:07] where it's back to the top of the ticket

[28:09] after last night's vice presidential

[28:11] debate. Judy Woodruff reports.

[28:14] Barack Obama and John McCain resumed

[28:17] their places at the center of the

[28:18] presidential campaign today, hours after

[28:21] their running mate met for their first

[28:23] and only debate in St. Louis.

[28:26] >> I was so proud of Joe.

[28:28] >> Obama was in Abington, Pennsylvania this

[28:30] morning near Philadelphia, where he

[28:32] sought to tie today's bad unemployment

[28:35] numbers to McCain and Sarah Palin, who

[28:38] last night said that taxes kill jobs. I

[28:42] wonder if she turned on the news this

[28:44] morning

[28:46] because it was just reported that

[28:49] America has experienced its ninth

[28:52] straight month of job loss. Nine

[28:55] straight months.

[29:01] Just since January, we've lost more than

[29:04] 750,000

[29:07] jobs across America.

[29:09] 7,000 in Pennsylvania alone.

[29:13] This is the economy that John McCain

[29:15] said just two weeks ago was

[29:18] fundamentally strong.

[29:22] This is the economy that my opponent

[29:25] said made great progress under the

[29:28] policies of George W. Bush.

[29:33] And those are the economic policies that

[29:36] he proposes to continue another four

[29:38] years.

[29:41] >> So

[29:42] when Senator McCain and his running mate

[29:45] talk about job killing, that's something

[29:48] they know a thing or two about

[29:51] because the policies they supported and

[29:54] are supporting are killing jobs in

[29:57] America every single day. and Abington.

[30:00] I am here to tell you that we can't

[30:02] afford four more years of this. Enough

[30:05] is enough.

[30:08] >> McCain, meanwhile, campaigned in

[30:10] Colorado, one of a shrinking number of

[30:13] battleground states, given the news

[30:15] yesterday that the McCain campaign was

[30:17] pulling most of its resources out of

[30:20] Michigan. He too addressed the

[30:22] unemployment news at a town hall in

[30:25] Pueblo. And one of the ways that we're

[30:27] going to get our economy going because

[30:29] it's all about jobs, our economic

[30:31] future. It's all about jobs. There was a

[30:33] jobs report that came out today. That's

[30:35] terrible news for America. I have to

[30:37] give you straight talk, my friends. I

[30:39] can't give you rosy scenarios. We're in

[30:41] a tough fight to get our economy back.

[30:44] But I can also tell you that energy, it

[30:47] will be a creator of millions of jobs

[30:50] here in Colorado and around America. And

[30:53] we have to stop

[30:57] and we have to eliminate our dependence

[30:59] on foreign oil. We're sending 700

[31:02] billion dollars of your money overseas

[31:05] to countries that don't like us very

[31:06] much. And some of that money ends up in

[31:09] the hands of terrorist organizations. We

[31:11] will eliminate our dependence on foreign

[31:14] oil. And one of them is

[31:17] and and one of those solutions is my

[31:19] friend is clean coal technology. Coal is

[31:23] going to be a primary means of of

[31:26] eliminating our dependence.

[31:28] We are sitting on the world's largest

[31:31] reserves of of coal. Clean coal

[31:34] technology can be done. We have to

[31:36] invest in it. Here in Colorado, some 80%

[31:40] of your energy is generated by coal.

[31:42] There's nine coal mines in the state of

[31:44] Colorado. There are nine coal mines here

[31:47] and it provides jobs. Now we can develop

[31:49] the clean coal technology.

[31:51] >> Also like Obama, McCain talked up the

[31:54] debate performance of his running mate.

[31:56] >> How about Sarah Palin last night? Huh?

[32:01] How about her?

[32:03] How about the job she did?

[32:05] >> Biden and Palin were meeting for the

[32:07] first time when they stepped on stage

[32:09] last night.

[32:17] Nice to meet you. Hey, can I call you

[32:19] Joe?

[32:21] >> Palin relied on a casual, even folksy

[32:24] approach for much of the face off, as

[32:27] evidenced by this comment during one of

[32:29] Biden's repeated attempts to link McCain

[32:32] to President Bush.

[32:34] >> See, it ain't. So, Joe, there you'll go

[32:36] again, pointing backwards again, though.

[32:38] You preface your whole comment with the

[32:40] Bush administration. Now, dog on it.

[32:42] Let's look ahead and tell Americans what

[32:44] we have to plan to do for them in the

[32:46] future.

[32:47] >> Biden didn't relent though, even as

[32:50] Palin kept trying to distance McCain

[32:52] from President Bush and the Republican

[32:55] party.

[32:55] >> People aren't looking for more of the

[32:57] same. They are looking for change. And

[32:58] John McCain has been the consmate

[33:01] maverick in the Senate over all these

[33:03] years. He's taken shots left and right

[33:05] from the other party and from within his

[33:07] own party because he's had to take on

[33:09] his own party when the time was right.

[33:11] when he recognized it was time to put

[33:13] partisanship aside and just do what was

[33:15] right for the American people.

[33:17] >> Can I respond to that? Look, the

[33:18] maverick. Let's talk about the maverick

[33:19] John McCain is. And again, I love him.

[33:21] He's been a maverick on some issues, but

[33:22] he has been no maverick on the things

[33:24] that matter to people's lives. He's

[33:25] voted four out of five times for George

[33:27] Bush's budget, which put us a half a

[33:30] trillion dollars in debt this year and

[33:31] over $3 trillion in debt since he's got

[33:33] there. He has not been a maverick in

[33:35] providing health care for people. He has

[33:37] voted against He voted against including

[33:39] another 3.6 6 million children in

[33:41] coverage that of the existing health

[33:44] care plan when he voted in the United

[33:45] States Senate. He's not been a maverick

[33:47] when it comes to education. He has not

[33:49] supported tax cuts and significant

[33:51] changes for people being able to send

[33:53] their kids to college. He's not been a

[33:54] maverick on the war. He's not been a

[33:56] maverick on virtually anything that

[33:58] generally affects the things that people

[34:01] really talk about around their kitchen

[34:02] table. Moderator Gwen Eiffel also asked

[34:05] each candidate for their Achilles heel,

[34:08] a question Palin deflected. She chose

[34:11] instead to talk about the reasons she

[34:13] believed McCain selected her to be his

[34:16] running mate. It was my connection to

[34:18] the heartland of America. Being a mom,

[34:20] being one who is very concerned about a

[34:23] son in the war, about a special needs

[34:25] child, about kids heading off to

[34:27] college, how are we going to pay those

[34:29] tuition bills? about times in Todd and

[34:32] and our marriage in our past where we

[34:34] didn't have health insurance and we know

[34:35] what other Americans are going through

[34:37] as they sit around the kitchen table and

[34:39] try to figure out how are they going to

[34:41] pay out of pocket for healthcare. We've

[34:44] been there also. So that connection was

[34:45] important. Biden follows relating the

[34:48] experience of losing his first wife and

[34:51] daughter in a car accident but also

[34:53] injured their two sons to the

[34:56] difficulties many people face in their

[34:58] own lives. ly. Look, I understand what

[35:00] it's like to be a single parent. When my

[35:02] wife and daughter died and my two sons

[35:04] were gravely injured, I understand what

[35:06] it's like as a parent to wonder what

[35:07] it's like if your kid's going to make

[35:08] it. The notion that somehow because I'm

[35:11] a man, I don't know what it's like to

[35:12] raise two kids alone. I don't know what

[35:14] it's like to have a child you're not

[35:16] sure is going to is going to make it.

[35:20] I understand. I understand as well as

[35:23] with all due respect to governor or

[35:25] anybody else what it's like for those

[35:26] people sitting around that kitchen table

[35:28] and guess what they're looking for help

[35:31] they're looking for help they're not

[35:32] looking for more of the same.

[35:34] >> The debate was also marked by times when

[35:36] both candidates stretched the truth

[35:39] Palin on taxes

[35:40] >> and Barack Obama even supported

[35:42] increasing taxes as late as last year

[35:45] for those families making only $42,000 a

[35:48] year. That's that's a lot of middle

[35:50] inome uh average American family to

[35:53] increase taxes on them. In fact, the

[35:56] basis for Palin's statement was a

[35:58] nonbinding budget resolution that did

[36:01] not represent a vote to raise taxes. For

[36:04] his part, Biden criticized McCain for

[36:07] opposing a nuclear arms treaty. With

[36:09] regard to arms control and weapons,

[36:12] nuclear weapons require a nuclear arms

[36:16] control regime. John McCain voted

[36:18] against a comprehensive nuclear testban

[36:21] treaty that every Republican has

[36:23] supported.

[36:24] >> In truth, President Clinton never sent

[36:26] the test ban treaty to Congress for

[36:29] formal ratification because of

[36:31] overwhelming Republican opposition in

[36:34] the GOP controlled Senate. Obama and

[36:37] McCain will meet for their second debate

[36:40] next Tuesday at Belmont University in

[36:43] Nashville.

[36:51] And to the analysis of Shields and

[36:53] Brooks, syndicated columnist Mark

[36:55] Shields, New York Times columnist David

[36:57] Brooks to conventional wisdom today is

[36:59] that Sarah Palin survived and the race

[37:01] goes on. You have any dispute with that

[37:03] 24 hours later?

[37:04] >> No. I mean, if you look at the

[37:06] strategies that each set out to achieve,

[37:07] I thought they both achieved their

[37:09] strategies. Biden and Obama are ahead,

[37:11] so he was sober and serious. Didn't take

[37:13] any risk, but was very good. She was

[37:15] behind. She's got to prove she's

[37:16] different than Bush, different than

[37:17] Washington. She achieved that strategy.

[37:20] They both did fine. Didn't change the

[37:22] race.

[37:22] >> Didn't change the race, Mark. No, didn't

[37:24] change the race, Jim. Um, she uh I I

[37:28] think she saved her her career in this

[37:31] sense that there'll be no more

[37:32] conversation or speculation about

[37:34] whether the ticket ought to be changed

[37:36] or anything of the sort. Uh I do think

[37:38] with the decision announced that she

[37:40] will not do any other interviews that uh

[37:42] it really means that she's

[37:44] >> that's been modifi modified slightly

[37:46] late today. You say that she may do a

[37:49] lot more interviews uh but yeah.

[37:52] >> Well, I mean it just it limits it limits

[37:54] her utility and value. I mean you you

[37:56] want your presidential and vice

[37:58] presidential candidates to be able to go

[37:59] on free media interviews to to get their

[38:01] message out. Um I I think uh based upon

[38:04] her performance last night, which I I

[38:06] think uh certainly believe an awful lot

[38:09] of Republicans that uh her concentration

[38:11] will be in red states,

[38:13] >> right?

[38:14] >> And well, so let's talk about the race.

[38:16] Where where does it stand now? Uh the

[38:18] Palin the the Palin Biden debate is

[38:22] over. So where are we?

[38:23] >> Uh well, it's for sure uh where people

[38:26] know who the two main candidates are.

[38:28] Obama, I say, has a seven-point lead,

[38:30] which is a significant lead. It's very

[38:32] hard to see how that's going to change,

[38:33] frankly. Uh it could change in the last

[38:35] couple weeks. Something could happen,

[38:37] but the fundamentals were all always

[38:39] powerfully in favor of the Democrats. Uh

[38:41] we have an economic crisis, which makes

[38:43] that even more powerful. Uh I've always

[38:46] thought people would move in the last

[38:47] two weeks. My model for this election

[38:48] has always been 1980 where people want

[38:50] to vote for change. They need something

[38:52] to say it's okay, it's okay. And in the

[38:54] last two weeks, they would make that

[38:55] call. They seem to have made it earlier.

[38:57] And so Obama's opened up a wide lead. As

[38:59] Judy reported, McCain's out of Michigan.

[39:01] He's not going to campaign heavily

[39:03] there. If you look at a lot of the other

[39:04] battle grain states, he's not doing much

[39:06] better in Pennsylvania, even Ohio,

[39:08] >> uh, tightening up in Florida. So,

[39:10] there's a whole tide, and it's a tide

[39:12] against McCain. He's thrown a lot of

[39:13] long hail Mary passes. Some of them have

[39:16] paid off, some haven't. Uh, it's hard to

[39:18] see what else he done.

[39:20] >> Mark, what is your reading on on

[39:21] Michigan? Michigan was that's that was

[39:23] considered in the last 24 hours amidst

[39:25] everything else a big deal when the

[39:27] decision was made to pull out all the

[39:29] campa the McCain campaign essentially

[39:31] out of of Michigan. Explain why that's

[39:33] so big. Republicans thought that

[39:35] Michigan was their best chance to take a

[39:37] state away that John Kerry had carried

[39:39] and Al Gore carried for reasons. They

[39:42] have Democratic governor of Michigan

[39:44] Jennifer Grandholm uh who has great

[39:46] national appeal. She's quite unpopular

[39:48] in the state itself. The state has had

[39:49] great economic problems. They had a

[39:51] spectacular

[39:52] >> That's the highest unemployment rate

[39:53] >> 8.9% that's right before today. Uh it

[39:57] also had a spectacularly uh egregiously

[40:00] outrageous mayor African-American mayor

[40:03] of Detroitwami Kilpatrick who refused to

[40:06] leave office and it it was the home of

[40:09] Reagan Democrats in Mcome County. So

[40:11] they really thought there was a shot

[40:13] there. Plus, it's got some small town

[40:15] values that

[40:18] hunters that they thought would have an

[40:20] appeal of McCain and Palm have an appeal

[40:22] to uh rather than Biden and and Obama.

[40:26] And uh that David's right that change uh

[40:30] is is significant in the sense that it

[40:32] narrows the playing field for John

[40:34] McCain. I just went through the states,

[40:35] Jim. If you if you take Colorado,

[40:38] Virginia, North Carolina, Ohio, Florida,

[40:40] Nevada, Iowa, New Mexico, Montana, all

[40:43] states where Obama is seriously

[40:45] challenging in many he's leading at this

[40:47] point in polls. Every one of them is a

[40:49] red state. It's a red that George W.

[40:52] Bush carried in. And the only states

[40:54] where he is competing or challenging

[40:56] right now uh throw in Montana as well to

[40:59] that list is Pennsylvania, uh New

[41:02] Hampshire, which is four electoral

[41:03] votes. Uh Wisconsin, Minnesota, uh they

[41:07] say now they're going to go into Maine,

[41:09] but I mean, you know, it's it's a narrow

[41:11] playing field by there's several

[41:12] scenarios by which Obama can get to 270

[41:15] at this point. There's only one probably

[41:17] that McCain has to is drawing to an

[41:19] inside straight. And the only other

[41:21] thing I' I'd add to it

[41:22] >> that's a that's a poker exchange.

[41:24] >> It is a poker exchange for those of you

[41:26] who don't play poker, but it's he's

[41:27] sitting there he's sitting there with

[41:29] four cards that don't add up. He needs

[41:31] one to make a a straight and they aren't

[41:34] of the same suit. So that's his only

[41:36] hope is to get one of the three nines in

[41:38] the disc or one four nights in the in

[41:40] the deck. I I just I just add that uh

[41:43] one thing. I this race is far from over.

[41:46] I mean five weeks ago. Okay, just take

[41:48] what you five weeks ago. Basically, no

[41:50] one had heard of Sarah Palin. All right,

[41:52] she's now a major national figure. Five

[41:54] weeks ago, Layman Brothers was a

[41:55] respected American institution. Wakovia

[41:58] is my bank. Uh, it doesn't exist

[42:00] anymore. Uh, you know, we've had we've

[42:03] had I thought Paul loan right now.

[42:07] >> Yeah. AIG, the world's biggest insurance

[42:10] company. I mean, we've had changes

[42:12] upheavalss. We have the Congress that

[42:14] doesn't want to vote on anything in the

[42:16] last 6 months before an election going

[42:18] this week and voting, you know, $700

[42:21] billion dollars uh for a bailout of of

[42:25] Wall Street. So, I mean, to say that

[42:27] there aren't twists and turns remaining

[42:28] in this election, I think we're kidding

[42:30] ourselves.

[42:31] >> Well, I agree with that. One would

[42:33] especially this year, one would not say

[42:35] that we're going to have a straight

[42:36] line. This has been nonlinearity

[42:38] uh to the max. Uh, nonetheless, I do

[42:40] think there are fundamentals. It's very

[42:42] hard to win the party three to win the

[42:44] presidency three terms in a row for any

[42:45] party, no matter what the terms. The

[42:47] economy is what it is. Uh, these are

[42:49] pretty strong. And then one thing Mark

[42:50] mentioned small town values when talking

[42:52] about Michigan. You know, I think Sarah

[42:54] Palin did very fine last night by her

[42:56] own standards, but this has become the

[42:59] Republican party has become a small town

[43:01] party running against as Sarah Palin did

[43:05] last night against big cities, against

[43:07] the East Coast, to some extent against

[43:09] newspaper readers. This I understand why

[43:11] they're doing it. Running against

[43:13] Washington. This is the way Republicans

[43:14] do populism. But in the long run, it's

[43:16] poisonous. It's self-destructive. You

[43:18] cannot be a majority party in this

[43:19] country if the coasts don't like you. if

[43:22] people who read newspapers don't like

[43:24] you and they have narrowed themselves

[43:26] and I thought McCain was going to be a

[43:28] chance to reach out beyond the

[43:29] traditional red rural America and uh

[43:33] he's not taking that up and when Sarah

[43:34] Palin short-term gain last night but

[43:37] long-term turning people off.

[43:39] >> Let me ask you this. You you are plugged

[43:41] in uh as a reporter uh to the McCain

[43:44] campaign. All the things that you just

[43:46] said and Mark just said, are they saying

[43:48] that internally? And if so, what Hail

[43:51] Marys, if if any, are they thinking

[43:54] about even open to?

[43:56] >> Yeah, I haven't. They who haven't told

[43:57] me about the Hail Mary to come. I do

[44:00] know they're realistic. I mean, they're

[44:01] professionals. They know what they're

[44:02] doing. And I do know they have a sense

[44:04] this has been thrust upon them, that the

[44:07] kind of campaign they wanted to run,

[44:08] they were not allowed to run. And they

[44:10] would blame the media uh with some

[44:12] justice, but not total justice. And that

[44:15] they feel that they've been thrust to

[44:16] run a campaign they didn't want to run.

[44:19] Their model of the campaign was the

[44:20] poverty tour McCain took early in the

[44:22] race where he went through the South

[44:25] East mostly in Appalachia and other

[44:26] places and ran as a new kind of

[44:29] Republican and as they would say is we

[44:31] got zero stories on the network news out

[44:33] of that. We learned early on if we don't

[44:35] attack Obama we do not get on the news

[44:37] and therefore we had to attack Obama. We

[44:39] had to run this kind of campaign. That's

[44:41] that would essentially be their

[44:42] argument.

[44:42] >> And you think there'll be more of that

[44:44] if that's if that's all they have left.

[44:46] That's what will continue. Well, the

[44:48] question is whether McCain will do that.

[44:49] I mean, I thought McCain did a bra very

[44:52] brave thing for a desperate candidate in

[44:53] not opposing the bailout because that

[44:56] would have been in the short term

[44:57] politically a popular thing to do. But

[44:59] then the question is, do you go back to

[45:01] Jeremiah Wright? Do you go back to a lot

[45:03] of that stuff? I'm not sure what they're

[45:05] going to do about that.

[45:06] >> What do you think?

[45:07] >> Well, I I think Jim that

[45:08] >> you also have sources of

[45:10] >> I do. I do. and the Republicans uh I've

[45:12] talked to this week feel uh and that

[45:15] David's rational rationalization which

[45:17] they've advanced about we weren't

[45:18] getting covered um put it differently

[45:21] and said John McCain of 2000 was the

[45:24] only chance of 2008 that is a John

[45:28] McCain who opposed tax cuts to John

[45:30] McCain who really did roll the dice and

[45:33] stand out differently and had to

[45:34] distance himself from George W. Bush,

[45:36] which he didn't do. His uh one thing on

[45:38] the debate I think we should mention, uh

[45:40] Joe Biden uh probably made a better case

[45:43] for Barack Obama on the economy and on

[45:46] on the Democrat's position on the

[45:48] economy than Barack Obama did at the

[45:50] University of Mississippi last week. I I

[45:51] don't think there's any question about

[45:52] it. And he did. I think that people

[45:55] wanted to know about these things, the

[45:56] tactics when we saw in Judy's piece when

[45:59] Sarah Palin came on the stage and said,

[46:01] "Uh, great to meet you. Um, can I call

[46:04] you Joe? Um, and you can call me Sarah.

[46:07] And he resisted that date because if he

[46:10] had called her Sarah, he would

[46:12] immediately accused of being dismissive

[46:14] and disparaging her. By her saying, can

[46:16] I call you Joe? She led the predicate to

[46:18] say the line we heard later, say it

[46:20] ain't so, Joe. So, I mean, Joe Joe Biden

[46:23] showed some discipline, more discipline,

[46:24] I think a lot of given credit. John

[46:27] McCain's best chance at this point is

[46:28] the is the format uh at Nashville in the

[46:32] in the town. Uh he he

[46:36] went route to victory in 2000 in New

[46:38] Hampshire. He salvaged he redeemed his

[46:40] campaign in 2008 with no money. Uh he

[46:44] does them well. Uh and the question is

[46:46] whether in fact he he he can shine in

[46:49] that. I mean I I think that's I think

[46:51] that's the best format he's got coming

[46:53] up.

[46:53] >> Yeah. In some ways though he couldn't

[46:54] have run that campaign. And as much as

[46:56] we all love that campaign, he could

[46:58] relax and say whatever he wanted in the

[47:00] 2000

[47:00] >> the 2000 campaign. Now because of

[47:02] technology technology is supposed to

[47:04] create transparency. It does the exact

[47:06] opposite. There's cameras everywhere.

[47:08] There's phone cameras everywhere. There

[47:10] is no off thereord moment. Every bad

[47:13] thing he might say is right on YouTube

[47:16] immediately or blogged about. It just

[47:18] it's a poisonous atmosphere for that

[47:20] kind of candid campaign. You cannot run

[47:22] that campaign anymore. I think mostly

[47:24] because of technology and so he was

[47:26] hemmed in uh he's been less happy and

[47:28] then fundamentally there's one issue I

[47:30] don't think he settled in his own mind

[47:32] he loves Barry Goldwater very

[47:34] libertarian style of conservatism he

[47:36] loves Teddy Roosevelt's more progressive

[47:38] style he's never reconciled these two

[47:40] worldviews so when it comes to the

[47:42] financial crisis he doesn't know whether

[47:44] government's the enemy or government's

[47:45] the friend and so he's in between

[47:48] >> and that's the financial crisis do

[47:50] either one of them get any points for

[47:52] this So there you get most of the points

[47:55] to coming back. I mean uh you heard

[47:58] inwami's piece Jesse Jackson Jr.

[48:01] Congressional Black Caucus had had voted

[48:03] against it overwhelmingly last Monday.

[48:05] Uh they turned around uh and a number of

[48:08] them Barbara Lee Jesse Jackson Jr. John

[48:11] Lewis Elijah Cumins Don Edwards um they

[48:14] they they said that they were doing so

[48:16] because Obama had asked them to do so.

[48:18] John McCain stood up uh and tried hard

[48:21] with the Republican House Caucus. Um he

[48:24] didn't make a lot of headway, but he

[48:26] didn't take the easy way out, which was

[48:27] the no vote.

[48:28] >> Okay. Thank you all very much.

[48:39] And finally tonight, another of our

[48:41] profiles of American poets, Oregon's

[48:43] poet laurate Lawson Aada in Aada. He's a

[48:47] third generation Japanese American who

[48:49] was interned during World War II. He

[48:51] spoke to us at Portland's Japanese

[48:53] Garden.

[48:54] >> I was just a regular kid before I was

[48:56] put into camp. I went into the camps

[48:59] when I just turned four. I came from

[49:02] just a regular little uh neighborhood

[49:04] and next thing I know I'm living in the

[49:06] fairgrounds imprisoned without anything.

[49:09] I gradually took on that refugee look,

[49:12] deteriorated look. And my uncle was in

[49:15] the US military and so he came on furlow

[49:19] to visit us. He took some photos of us.

[49:21] I think the photograph says a lot. I

[49:25] love the way that just by accident

[49:28] he was in the picture of me with his uh

[49:31] uniform on. You could see it in the

[49:32] shadow. It was very very strange, very

[49:35] ironic that we would be imprisoned

[49:37] whereas my uncle was free. He brought me

[49:40] a cowboy belt. In essence, he told me,

[49:43] "You're not a prisoner or an intern

[49:45] attorney. You're a cowboy." I wore that

[49:48] belt every day for about 3 or 4 years.

[49:52] The Japanese American Historical Plaza

[49:55] here in Portland, the city just wanted

[49:57] to have this commemorate the former

[50:00] community. You have these short poems

[50:02] engraved on these stones and uh and and

[50:05] the stones speak for themselves. It's

[50:07] like little voices, talking stones. I

[50:10] like the fact that all right, I have

[50:12] words here, but I'm not reading to

[50:14] people. It just fits in. You know what I

[50:17] mean? People just go by here. Woman came

[50:20] by with a stroller and she changed the

[50:22] baby on my on my poem. She changed the

[50:25] baby's diaper on my poem. I thought that

[50:27] was Now that's what you call useful

[50:29] poetry.

[50:31] This is a poem by an elder woman. Her

[50:34] name was Mrs. Shisu Iwatsuki.

[50:38] Rounded up in the sweltering yard,

[50:40] unable to endure any longer, standing in

[50:43] line, some collapse.

[50:47] The camps happened just like that. And

[50:48] so people from here were shipped out to

[50:50] Idaho.

[50:53] Black smoke rolls across the blue sky.

[50:56] Winter chills our bones. This is Mini

[51:00] DOA.

[51:02] And Mini DOA was the internment camp uh

[51:05] in Idaho.

[51:07] You see, it was like a prison is what it

[51:10] was. So the soldiers would be up there

[51:12] with the rifle.

[51:14] There was no official welcome back. So

[51:17] people were just released from camp and

[51:19] came back. And there was a lot of

[51:21] animosity.

[51:23] Going home feeling cheated, gripping my

[51:26] daughter's hand. I tell her, "We're

[51:29] leaving without emotion."

[51:33] Just trying to readjust to coming back

[51:36] home to Oregon. And it wasn't easy cuz

[51:39] everybody had to start

[51:41] >> art materials and so much more. The

[51:43] Portland State Bookstore truly has

[51:45] something for everyone. And if you're

[51:46] looking for books, the Portland State

[51:48] Bookstore has one of the area's best

[51:49] selections. Need something high-tech?

[51:51] They've got you covered there, too.

[51:53] Conveniently located on Southwest Fifth

[51:55] Avenue next to PSU or on the web at

[51:57] psubrookstore.com.

[51:59] Think, learn, create, be the Portland

[52:02] State Bookstore. The bookstore with

[52:04] more.

[52:04] >> I mean, I I did lose some weight. I just

[52:07] I get really hungry in the afternoon.

[52:09] >> And that is when I crave strawberry

[52:10] shortcake.

[52:12] >> I want some right now.

[52:13] >> No, no, no. Key lime pie.

[52:14] >> Boston cream pie.

[52:16] >> Boston cream pie. Ladies, please, please

[52:19] don't. Richard,

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[53:04] >> Let us strive to live peaceibly with men

[53:07] and women everywhere.

[53:09] >> Matthew Shepard, [music] 21, brutally

[53:12] murdered because he was gay. Ted

[53:14] Kennedy, [music]

[53:15] Gordon Smith, two senators, one

[53:18] Democrat, one Republican, fighting

[53:21] together for the Matthew Shepard bill.

[53:23] Tough sentences for those who commit

[53:25] crimes of hate in honor of one young

[53:27] man. In honor of one strong belief, I'm

[53:31] Gordon Smith and I approve this ad.

[53:35] High School Blitz brought to you by

[53:37] Laith Auto Collision Center, Pacific

[53:40] Office Automation, and Busters Texas

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[53:48] Welcome back to High School Blitz. South

[53:50] Salem High School, one happy bunch

[53:52] tonight after beating McMary 21 to9 to

[53:56] stay undefeated. And you know what? They

[53:58] should definitely be climbing up in the

[54:00] rankings because some of the teams above

[54:02] them in the top 10 did fall tonight.

[54:04] Let's take a look at the rains tonight

[54:06] and who went down. Second ranked

[54:08] Southridge falling tonight to Beaverton.

[54:11] That is going to cause a ripple effect.

[54:13] Also, Grants Pass, the fifth ranked team

[54:16] falling tonight, going down. And as we

[54:19] get into the bottom half of the top 10,

[54:21] West View falling tonight, of course,

[54:23] too. And so, uh, West View falling to

[54:26] Jesuit. So, there will be some changes.

[54:28] South Salem, our guest of the night,

[54:29] should be moving up in the 5A. We also

[54:32] had a couple losses. Four teams losing

[54:34] tonight. We had Mountain View, Wamut

[54:36] losing, and also Wilsonville and

[54:39] Springfield losing. So, we'll have some

[54:41] changes in those rankings, too. You can

[54:43] check all of the highlights by going to

[54:45] our website at katu.com and also check

[54:48] Craig Burnback's preview story on South

[54:50] Salem tonight. Thanks for joining us.

[54:52] We'll see you next Thursday night.

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