October 1st, 2008
08:17 AM ET

Morning Buzz: Showdown after Sundown

Penny Manis
AC360 Senior Producer

We opened the show last night with breaking news from Washington, D.C. after we got word that the Senate is ready to act on the financial crisis. A slightly modified version of the bailout bill will be voted on tonight after sundown (the sunset Wednesday brings an end to the Jewish New Year). Our guidance is that this vote could occur between 730pm-9pm ET, so we will have the latest by the time Anderson hits the set.

Wall St had already closed when word from the Senate got out last night, but still stocks had already rallied. The bailout plan has some new provisions in it which the Senate will vote on, including a hike to the FDIC insurance cap from $100,000 to $250,000, and additional tax breaks. We’ll be watching how this vote goes tonight.

John McCain, Barack Obama and Joe Biden all confirmed they would be present in DC for this vote. Yesterday we saw the candidates try to sound like problem-solvers and stray slightly from partisan politics. It seems they figured the nation didn’t really want to see further finger pointing and name-calling following the House rejection of the bailout bill. More Americans are becoming nervous about this financial crisis and the candidates’ struck a different tone accordingly yesterday.

Candy Crowley, Jessica Yellin and Ed Henry will be watching all of the above for us.

Our Chief National Correspondent John King will be NY in front of what we like to call our ‘Magic Board’ on the Election Set, which illustrates the electoral map. New polls release at 4pm ET showing candidates’ standings in Florida, Minnesota, Nevada, Virginia and Missouri. John will guide us through these polls and show us how the results affect the existing map.

We are one day away from the Veep debate. Sarah Palin continues her preparations at McCain’s Sedona ranch, and Joe Biden prepares at his home near Wilmington (before he goes to DC to vote on the bailout bill later tonight). Our correspondents will have more tonight on what is at stake for both Veeps as they get ready to face-off. In a race that is so close between McCain and Obama, the Veeps could make a real impact on the overall results come Election Day.

See you tonight folks!

Filed under: The Buzz
soundoff (33 Responses)
  1. James

    It is truely a sad day for us all. Once again "we the people" have spoken out against an issue ( bailout ) and once again "our" leaders say to themselves, we need not listen to the people we are the brains of this country and we have the power to do as we see fit. We (the people) say correctly that greed played a major role in this problem but lest we (the people) forget, it was "our" leaders whom started it with laws deemed to correct something they saw as unfair in the banking world. "They won't give loans to poor folks, who can't pay back the money they borrow, thats injust." And now brothers and sisters we (the people) are being feed a new plan to "borrow" $700 billion to fix this. Whoops, the government is not "borrowing" anything, robots, we (the people) are deemed to be the slaves whom will payback this money in our hard work and what is left of our paychecks. So enjoy the wonderful meal that is about to be served to us (the people) once again by those who we (the people) have chosen as our leaders.

    October 2, 2008 at 10:38 am |
  2. Madeline

    Sara, Biden has made many questionable comments in the past few weeks (ie, "Obama will not take away my guns."). However, if I'm not mistaken, these comments have been completely ignored on this show. I only learned about them from watching Lou Dobbs.

    October 1, 2008 at 4:04 pm |
  3. larry

    Illil should recuse herself as moderator for te veep debate:

    It seems as PBS' Gwen Ifill preps to moderate the only veep debate of the season, she's also readying to debut another project entirely - a book titled "Breakthrough: Politics and Race in the Age of Obama."

    Now, Ifill is well-respected, beloved even, in Washington journo circles. But, readers, in light of the book project, which at least in its promo appears to marvel at the historic nature of Barack Obama's candidacy, should the Commission on Presidential Debates have selected her to moderate the vice presidential debate? Did commission officials know about the book? And if they did, do they need to explain their pick of Ifill to referee one of the most critical events of the general election season? Will the John McCain/Sarah Palin team have a valid beef with the decision?

    No matter how down-the-middle Ifill plays it tomorrow night in St. Louis, will some say she's compromised her journalistic integrity by embarking concurently on an exploration of "the impact of Barack Obama's stunning presidential campaign" on the political landscape?

    October 1, 2008 at 3:31 pm |
  4. J from DC

    Thanks CNN for fighting hard last week with real news stories. I am sick of the Fox stations and all their selective reporting. Please continue to hit Fox hard, with real new reports, like you did last week. People here did notice and did talk about it. I heard more talk about CNN last Friday, then I had in months. We need CNN to win the News competition in the workplace.

    October 1, 2008 at 3:25 pm |
  5. larry

    So the veep debate will be moderated by none other than an obama supporter PBS' Gwen Ifill. What the heck is going on? Are there no unbiased moderators?

    October 1, 2008 at 3:10 pm |
  6. Sue, Billerica, MA

    I wonder if this bailout is just a case of throwing money at something as a solution because those in Washington don't understand the dynamics and can't fix the system so throwing money at it is the only thing they can come up with.. I don't know, I may not know much on this topic, but something just isn't right about this as the solution. If you play poker you know what makes a successful poker play is the hardest thing for us humans to do and that is to stop throwing more good money after bad, hoping to recoup the bad, when if the hand is a loser, you will just wind up losing it all... and this wreaks of that to me, and imagine the crash our economy and stock market wiil have if this doesn't "Fix" this problem, and we Americans deserve to have the problem better explained especially why a couple weeks ago McCain was proclaiming the economy is fundamentally strong and one of his advisers was saying all is great and Americans are just a bunch of whiners and now suddenly the economy is in the grips of Armageddon and the greedy rich fat cats who caused this problem are having their WHINES met with more money to mismanage!

    October 1, 2008 at 2:46 pm |
  7. Sara

    I hope you guys are not going to spend another night on the Palin/Couric interviews. I get it....Sarah Palin made huge blunders in the two interviews. However, four nights of non-stop coverage is too much. How about giving Biden so airtime? He said he was shot at in Iraq and this is not exactly true. You guys spent days on the Clinton/Bosnia story. It's only fair that you examine Biden's claim as well.

    October 1, 2008 at 2:45 pm |
  8. J from DC

    Everyone here in DC is still confused about this bill. We all think it needs to be done, but have no idea if we are being duke into it. That is the real problem. No one has faith that the Bush Administration will tell us the truth. And since we can’t see the books, we don't know the true state of these financial institutions, except for what we are told. One thing is clear. However, Obama seems to have more creditability then McCain on being able to work with congress to get this country back on the right track. The more Democrats we elect to congress, the better chances for work getting done in 2008 alongside a president Obama. It is the only way to ensure that we suffer no more congressional Gridlocks. It will also give us a government we can have faith in. All we can do now is vote Democratic for change in this election.

    October 1, 2008 at 2:34 pm |
  9. Hector Erazo

    Hypothetical Scenario:

    Why are you not suggesting to my neighbor that has paid his mortgage on time and has not gone over his head with easy credit that I need help because it will ultimately affect his home value if my home goes into foreclosure and lose my home? Surrounding property values are all adversely affected by neighboring foreclosures, causing a domino effect that will ultimately be felt by the city we live in as tax receipts drop precipitously. When this occurs, cities and towns will begin to cut back on basic services and finally let public employees go. To be fair to those less fortunate and under threat of foreclosure and losing their homes, during the good times, the “frugal” and reluctant neighbor, not having any troubles with mortgage payments today, may certainly have benefited from the boom in housing values and very likely cashed in much of their equity. It was certainly because of the availability of easy credit that many stable home owners saw the values of their homes increase over the very same years that regulators let mortgages lending and securitization of these assets go unchecked.

    San Francisco

    October 1, 2008 at 12:06 pm |
  10. Michelle

    I think it has finally hit Americans that we are all in
    this together. Wall Street and main street are in the
    same boat.

    October 1, 2008 at 11:17 am |
  11. pamela

    Do you really think a hike in the FDIC insurance cap from $100,000 to $250,000 will really make a difference? It only works if you have that much in the bank! Let's be real... how many working class Americans have that kind of money in the bank in the first place! Come on, isn't there a better solution? Our elected government officials and the President should really consider some of the suggestions from the American people. At least those suggestions actually help out the people who are going to get stuck footing the bill at the end of the day!

    October 1, 2008 at 11:08 am |
  12. Lorie Ann, Buellton, California

    I look forward to the VP debate. I hope they both do well. I'm burnt out with all the fighting from both sides. All the candidates have something to offer to the American people and we are lucky to have the right to vote.

    Lorie Ann, Buellton, Calif.

    October 1, 2008 at 11:07 am |
  13. Ken

    Soooooo... The President came on the tube again to say how important this bailout is, right! Okay, so as soon as the congress gets back from their holiday they can vote again. Well let me tell you something. IF this were as important as everyone claims, congress should have had their overpaid,overcompensated, out of touch keisters back in session and voting. I cannot tell you how many Thanksgivings, Christmas's and Easter holidays I have worked. Not eight,not ten, but twelve hours a day. I did this so that the financial crisis in MY OWN HOME could be pushed back until another came along. Do you really expect the average tax payer that has been struggling for years now to make ends meat to care about our bailout program when you need to take a holiday!!! That's how important this bailout is? If someone were lending me 700 BILLION, you can bet your life I would NOT be on HOLIDAY! They are soooo out of touch it is incredible. I still say no matter what the outcome.Vote congress out. They have NO clue about the every day struggles of you and I bacause they are NOT you or I. They feel they are above us.

    October 1, 2008 at 10:40 am |
  14. Mohammed Ali

    following, Isn't also a problem to see the number of small businesses that came into the market espically post the 2001
    real econemy stubbern so will there be any break between those big corrps and small businesses that can meet the new standards.


    October 1, 2008 at 10:40 am |
  15. Mohammed Ali

    Hi Dear AC360,

    Today is noticed that finally people are concerned about small businesses in the market so that a good or bad sign "not sure"
    but surely my question for today will be if the Senate does push for the new proposal and also rasie the FDIC incsurance funds, one is it going to be a future change or will be required for the present morgagers and also the new ones, two is this going to bring new oppurtunities as far for small business loans, thu we facing a hard
    challanges getting loans, and paying employees,.

    October 1, 2008 at 10:33 am |
  16. Marj Stellar

    I just finished adding up all the money paid out to CEO's from Lehman Bros,Morgan Stanley, Goldman Sach(the Sect of Tres Henry Paulsons place of employment up to 2007), Bear Sterns, Merrill Lynch; WaMu, AIG, and the twins Fannie and Freddie from 2004 thru 2007. The Grand Total of thie salaries and Bonuses is $949,670,669.00!!! How about Paulson coming on like a dictator saying we have to give chech to bail them out for 700,000,000. Doesn't anybody up in Washington have an adding machine?

    October 1, 2008 at 10:33 am |
  17. Diane from Mo.

    In regards to Sarah Palin, I firmly believe that she is putting on act. on being such an air head . Come on folds it is another Mccain tactic
    Make her look like an air head and when it is time to deliver she will look brilliant. The media needs toget tough and strt asking thie tough questions and dont' let up till you get them He has made a a fool out of Katie Couric and its one of his ways to get back at the media.
    Naturually you are portraying her as a airhed who is clueless. All though she can't be too smart to let a man take advantage of her that way and portray her as dumb. She must be be so dependent. on chauvnistic men.
    So wake up its all an act and the media is playing right into their hands. just like they want So seh will look very businiess like on the night of the debate.

    October 1, 2008 at 10:19 am |
  18. bob padgett

    Instead of paying out 750B to the Treasury to buy mortage paper, why does the Government not pay 2M to each tax payer on record, I think that is about 450M tax payers, and let us pay off our own debts and mortages with the money. This would stimulate the banks, economy and make the tax payers at least know if they are paying back a debt then it is their own. Such a straight forward plan would be much accepted by this tax payer instead of paying off failed and greedy businesses. Stimulating the credit system would be instant as all the tax payers would deposit the funds into their banks, and pay off their mortgages and everyone would be happy.

    October 1, 2008 at 10:17 am |
  19. Kevin

    Hi Anderson,
    Please vote against the bail-out proposal as proposed. Much of this debt can and needs to be rescheduled. There are plenty of credit-worhty main-street investors that will buy these non-performing assets at a discount. That will get money flowing again. Charge back the short fall to the institutions that originated the "toxic asset".
    Please hold these unethical bankers, brokers, and politicians involved in the various components of this conduit of fraud accountable for their illegal actions. They knew what they were doing! I know there's an incriminating paper trail to all of this. Create a trust or holding corporation to convey this debt into. Then let loose the examiners to trace the origin of these non-performing assets. Investigate! Prosecute! Freeze Assets! Fine! and Imprison these white collar criminals. It is insane and incomprehensible to give these crooks 700 billion dollars.
    Please use a critical path of discovery to arrive at a solution orientated outcome.
    Thank you. K.K.

    October 1, 2008 at 9:55 am |
  20. Shawn

    Normally, I trust Anderson Cooper to think and react like a journalist, not a reporter. On this bailout issue, he only seems to be taking what he hears from the fear mongers and repeating it. What ever happened to the media asking the question "why?"?

    Why do we need this bailout?
    Why is this better than doing nothing?
    Why the rush to pass a bill without doing some research?

    October 1, 2008 at 9:52 am |
  21. Steve

    On the bail out–what are we buying and are we giving 20 cents on the dollar for bad products. You want me to pay , I would like to see the invoice. I still say we are coving up ceo's and others ,thanks but no thanks to a bridge to no where. If we are tring to put out a fire ,why not use a fire truck, and firemen? Does anybody think because We have lost our jobs, we can't pay our loans, not do to falling house prices. Americans need jobs not richer CEO's.

    October 1, 2008 at 9:51 am |
  22. John G. in West Chester, PA

    I guess I don't entirely understand the legislative process....
    How can a Bill, which the House has defeated, suddenly re-emerge, and be made law by passing in the Senate??
    Does this have something to do with the type of Bill that it is?
    i.e.: a finance package (vs something procedural)

    Also, aren't there other committees involved in the process – causing further potential delays??

    October 1, 2008 at 9:49 am |
  23. deborah, OH

    I haven't been blogging, had my nerves burned, but have been watching!
    The same people who have created this financial fiasco now want us to trust them with $700 billion!? I know something needs to be done, but does it have to be sooo much at one time?
    Will be interesting to see how the vote goes tonight–have informed my reps & senators that the whole package needs to be scaled back money-wise, & the CEO'S don't need anything.

    Can't wait to see the latest polls & John King mapping them.

    Anderson, thank you for keeping us advised & answering so many of our questions–you & all your staff have done a good job of 'keeping them honest'.

    And, last but not least, the Thurs. debate will be interesting! Can't wait!

    October 1, 2008 at 9:44 am |
  24. Ed Wall

    Take that money or some money and purchase the failing mortgages and hold those instead of the mortgage backed securities. The Govt plan is that they can hold these almost worthless securities longer because they are the govt and when the market turns they will sell them back into the system. This is a gamble and leaves the housing issue, which is the root issue, to solve itself. Why not hold the actual failed mortgages, help these people who shouln’t have been sold a mortgage in the first place (and shouldn’t hav e bought in the first place)get out of their home whithout having to shoulder the added debt from the 20% decline in the value of when they first bought it. If the govt could cut their payments in half, and stabilize all these forclosures, the housing market would stabilize and then the value would go back to its natural incline. Then in 5 years, the govt could craft a ‘safe zone’ exit plan that would at least forgive the debt caused by the housing decline or a few missed payments and sell the house at maybe 80% it’s value in a more stable market and we the taxpayers only lose 20% on the deal instead of buying paper at 40% its value and standing the chance of never being able to turn that around.

    October 1, 2008 at 9:35 am |
  25. earle,provincetown

    Good Morning Penny, The V.P. debate is a hyped-up folly predicated on how valuable the #2 person in charge is, supercharged by the brainwashing media? Let's face it, there no more than high priced currier's, that sit in their back offices thinking of what they could have been. Now, Cheney ,he was special in more(different) ways than one, but the public will never know for at least 100 years! Personally, I like Palin,but she's out of her league,when it comes to debating Biden. Finally, this Bail-Out package is going to get jammed down the public's throat, without," first lowering the Fed rate 50 bases points",or even 75 bases points, then making sure that the commercial(Real Estate) corporate paper be shuttled back to Wall Street, and not to, "Main Street"! It has taken eight (8) years to get where we are, and now rushing to make a decision in a fortnite makes no sense! NO BAIL-OUT

    October 1, 2008 at 9:34 am |
  26. EH

    I don't think anyone knows yet what the effects of the bailout will do. It won't hurt to pull back and study this longer before we throw the taxpayers into more uncertainty.

    If credit is a little harder to get it may help the country – we're in this mess because so many businesses and individuals are paying fast and loose with borrowed money. And the country is way too far in debt to foreign companies who could sieze it all.

    To describe the bailout, someone used an analogy of blowing up the dam to save a few boats that are sinking on the lake!

    If you really care about the common man, don't sidle us with more taxes and a debt we can't afford!!!!

    October 1, 2008 at 9:08 am |
  27. Michael, NC

    Sounds like an information packed show. I am on the fence about the proposed bill, as are millions of other citizens. It is such a difficult time right now, I am just glad some serious action is finally taking place. Looking forward to John and the magic board, as well as Candy and the others with the latest stories. Hope everyone has a blessed day!

    October 1, 2008 at 9:03 am |
  28. Cindy

    I don't see how the senate voting on the bailout bill first is going to change anything in the house unless they do some major arm twisting. I just don't think that they could have changed the bill that much in one day to get the others to change their minds. Plus a lot of Americans still don't want it to happen and the ones who are afraid of losing their jobs may not vote for it again.

    And John McCain and Obama coming in together today to vote on the bill may not help them anyway. I mean it didn't help last time when they tried and failed to get enough votes from either side.


    October 1, 2008 at 8:41 am |

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