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October 6th, 2008
09:36 PM ET

Evening Buzz: Bailout, Not So Fast

Maureen Miller
AC360° Writer
 
Ouch! The Dow Jones Industrial Average fell as much as 800 points in trading today, but ended down 369 at the closing bell. The new reality: the Dow is below the 10-thousand mark for the first time since 2004.

Bailout to the rescue? Ahh, not so quick.

Investors are nervous about $700 billion "rescue" plan approved by Congress last week.

"Everybody thought that the bailout was a panacea. But it's not. It's a tourniquet that stops the bleeding so the patient doesn't die right away," said Dan Genter, president and CEO at RNC Genter Capital Management.

Tonight on 360, we're looking at what all this means for you and your family. CNN's Senior Business Correspondent Ali Velshi will explain what's going on and what we can expect in the days and weeks ahead.

We're also on the trail with just 29 days until the election.

A new national CNN/Opinion research corporation poll shows the country's financial crisis (and other factors) have given Barack Obama a bigger lead over John McCain in the race for the White House.

53 percent of likely voters questioned in the poll say they are backing Obama for president, with 45 percent supporting Senator McCain. That eight-point lead is double the four-point lead Obama held in the last CNN/Opinion Research Corporation poll, taken in mid-September.

With poll numbers down, the McCain-Palin ticket is now playing the association game. It's raising questions about Obama's ties to Bill Ayers, a founding member of the radical Weather Underground. Alaska Gov. Sarah Palin accused Obama of "palling around with terrorists who target their own country."

Tonight, we'll look at Obama's links to Mr. Ayers. Is the accusation justified? Let us know what you think

Though all of this, Obama is staying on message with the issue voters care most about: the econmy.

"I have got news for the mccain campaign... the American people are losing right now. they are losing their jobs. They are losing their health care. They are losing their homes and their savings. T cannot imagine anything more important to talk about than the economic crisis and the notion that we would want to brush that aside and engage in the usual political shenanigans and smear tactics that have come to characterize too many campaigns", Obama said this morning.

Don't miss the raw politics tonight on 360, 10pm ET.


Filed under: Maureen Miller • The Buzz
soundoff (48 Responses)
  1. Jolene, St. Joseph, MI

    I'm not sure why the candidates have to resort to the mudslinging. If you are at one of their rallies when they speak this way, they are just pandering to the crowd of their supporters who cheer them on for doing it.

    It's interesting that McCain has backed out of campaigning here in Michigan but he hasn't stopped any ads on the TV. They are playing more now than they ever had.

    I will be disappointed if during tomorrow's debate, the candidates continue with these lines of attack on each other. Much rather hear them attack each other's stance on addressing the key issues. As usual, looking forward to CNN and AC360's coverage.

    October 6, 2008 at 11:25 pm |
  2. Allan

    I dont know explain it to me but are we in a recession or not and thats why everything is falling apart and we are not creating new jobs. The job market and small business like mines are really getting hit. I dont want no goverment help I just want the Goverment to do their job and restore confidence so people can again get back in track. Another thing I hear Palin talking about terrorist and pastor but isnt her husband involve in some radical group in Alaska and she is involve with some radical church in alaska I think they should all focus on us the people. We should never elect a Bush again they destroyed us and our good American name around the world. Copper get this guy to talk about us and our economy. I love your show Anderson good journalism you see if our leaders were like you hard worker we would not have this inmense problem. Is a pitty all the education and nothing.

    October 6, 2008 at 11:24 pm |
  3. Bernie

    I've been out of work for eight months, have had five surgeries and have a wife that is disabled. I've been scraping every cent of my short term disability insurance (which I have paid highly for) to pay my mortgages (yes – mortgages plural). The temperature outside my house last night was 45, the temperature inside was 54 and when my wife and i recently applied for heating assistance we were denied

    What do i have to do now - shoot myself in the foot to get the bank to lower my mortgages so my wife and i don't end out on the street? should i just say the heck with it and not pay anyone anything and maybe someone will bail me out to. seems like dishonesty pays - bail outs, banks lowering mortgage interest rates for you or heck maybe the judge or bank will just forgive the mortgage balance and let us stay in our home if we do something drastic.

    October 6, 2008 at 11:23 pm |
  4. Marcus

    Why is the media so one sided? We don't here anything about Sara and her husband? Nothing about her affair and witchcraft? We don't here anything about Mccain and his ties with his pastor. I think the media need to stop being so one sided and tell the facts. If you let Sara and Mccain talk about a U.S Senator that represents Americans and call him a Terriost then what do you think about the American government????

    October 6, 2008 at 11:23 pm |
  5. Steven

    For once, I am releived that I have no money to worry about.

    October 6, 2008 at 11:23 pm |
  6. Bruce H

    Anderson, i watched the whole Congressional hearings today and your program took it way out of context IMO, please show the question and answer when reporting, you are not supposed to make news and waves but report. I do Not in any way condone the actions by the Lehman CEO (Richard Fuld) but, I am curious why Paulson allowed Lehman to fail when they had 42 Biilion dollars in capital. I watched these hearings for two reasons a witchhunt is always quite interesting and to find out how this mess can be prevented in the future.
    By the way Fuld was Not suppeaned to appear in front of this sub-committee but rather appeared to try to help out with this mess and congress is also trying to find a way to prevent this in the future.
    Only a hand full of delegates have taken personal blame for this "crisis" although all are at fault in one way or another, also IMO, as well as some lenders, mortgage brokers, borrowers and obviously the Investment banks that are now holding the "toxic mess".
    Let the buyer beware and never invest more than tou are willing to lose!!
    Thanks for listening.

    October 6, 2008 at 11:22 pm |
  7. Veronica M Reimann

    Most definately the democrates in the house and senate are to blame they have been in control for the last 4 years and have done Zero to protect our economy

    Polosi said in the first 100 days they prommised the moon, but ZERO and they cannot blame the republicans as they were not in control and you cant blame the President as no President is in control when the opposing party is in control and a fine mess Barney Franks, Dodds, Polosi and Reid have got us into
    MOST DEFINATELY THE DEMOCRATES

    October 6, 2008 at 11:22 pm |
  8. Jon Doe

    It's obvious that the financial crisis we're facing was largely the result of greed, corruption, mismanagement, and incompetence. The more I hear of this mess, the more I'm convinced that the so-called experts who are spearheading the economic recovery efforts are clueless. I believe that a huge step in the right direction would be to implement the "fair tax" plan as soon as possible. Implementing the fair tax plan would put significantly more money in the pockets of working Americans, and would generate spending. This constant emphasis on minimal tax rebates is nothing more than political fluff. Unfortunately, the same greed, and corruption that led to this financial mess we're in, will keep the fair tax plan from ever becoming a reality (because of the desire for tax loopholes).

    October 6, 2008 at 11:20 pm |
  9. Dorothy Sherman

    It all goes back to companies using robots instead of human workers; robots don't purchase anything; and then outsourcing. There should be a heavy tarrif on any item outsourced when it returns to this country in any shape or form. I found halloween candy bags pronouncing the contents to be America's #1 candy and on the back of the bag, Made in Mexico. Unemployed persons do no have buying power and there has been so many jobs lost to overseas workers.

    October 6, 2008 at 11:20 pm |
  10. Angela

    Regarding the financial crisis: What do some of these people MEAN by "let's not point fingers" ? That is an unbelievably ridiculous statement. Of course this should be investigated; crimes, names and salaries listed in the press.

    October 6, 2008 at 11:20 pm |
  11. Cindy - Philly

    I am from Alaska, and even though this is a bit off subject, for the record, people in Alaska do NOT talk the way Sarah Palin does. Yes, Alaska is more "down to earth" in many ways, but no one I know talks like her. She sounds like she's been living in one of Alaska's many villages from her dialect. Even though I am from Alaska, I would not want Sarah Palin as VP. She is a good Governor for Alaska, but she doesn't know anything about the rest of the world except what's been shoved down her throat in the last few weeks. I am ashamed that she is representing Alaska, making all of us look like ignorant idiots.

    October 6, 2008 at 11:19 pm |
  12. Aaron Koch

    In my opion the problem started with Ragen and deregulation. Letting companies do what ever they want with out oversite is what got this country in such a mess and has left the middlecass out in the cold!

    October 6, 2008 at 11:16 pm |
  13. Lora Morgan

    I believe it is the Republican Party's fault. Just like the problems here in AZ 20 years ago, with deregulation of the S&L's (that by the way cost us over 3 billion dollars), John McCain got away with it here, then took this loose "Maverick" style there to Washington.

    October 6, 2008 at 11:16 pm |
  14. Doug DeMarco

    ONe thing our Founding Father never said, was that we could now just sit back and relax. Our government is no longer looking after the people it is design to look out for. The rich control the government. IT is full of rich people, both women and men in Congress. It looks out for their needs first and then, maybe they will get around to looking out for the small man. Hey, where are the bus drivers, plummers, and well diggers in Congress? Only Business men and lawyers. Time for a real change, one the neither Obama or McCain can deliever, in fact or afraid to deliever, bbut one our Founding father told US WE CAN TAKE, if the government fails to look after OUR needs. We need a continental congress to revamp our government representation.
    Thanks for listening

    October 6, 2008 at 11:16 pm |
  15. Heidi

    Can someone please explain Barney Frank's relationship with a Frannie Mae exec. I think this is rather pertinent to the discussion with the credit meltdown.

    October 6, 2008 at 11:12 pm |
  16. Greg

    Hello Anderson I am in the army here in Afghanistan, Here we are doing great things for our country and definately not bailing out the criminals, so why bail out the US Financial District. This will only hurt our country more if we continue to give criminals freedom. Have a great day

    October 6, 2008 at 11:09 pm |
  17. Marika

    Looks like Sarah Palin is playing with fire! I can't wait until she burns her hands with it. While Palin hurls out false accusations on Obama with the intention to strike fear into voters. A traditional Republican tactic. It's time to feed her some Karma! It's time we question her association to the Alaska Independence Party! It's a little to close for comfort, especially with her husband being involved with this unpatriotic party as well.

    Toronto, Ontario, Canada

    October 6, 2008 at 10:52 pm |
  18. Rex Eller

    Anderson this is very important. Obama was chosen to distribute money to these so called education causes. It was not given out to promote math, science ,or English. Ayers used Obama and these funds to promote his views of the U.S. and the world. Things like a school of peace and teaching the young to rebel against authority are not teaching our young people to compete in today's workforce. You have always been fair in your reporting. Please read some of this stuff that was released recently by the University of Illinois. You will sit back and say WHOA.

    Sincerely,
    Rex Eller

    October 6, 2008 at 10:52 pm |
  19. She

    Palin/Mccain, I would like to ask you both a question, do you think we the American people are stupid. Your behavour these last few days clearly proves that you both are not for us the American people. You both will LIE and CHEAT just to get to the White House. And for mr Mccain, is this job your death wish to become the Presdent of the United State before you die. Do you Mr Mccain believe the American owes you for the war you had fought. Get over it, what about the solders who cameback home dead, don't you think we owe them for their lives.????

    October 6, 2008 at 10:46 pm |
  20. Lauri

    sorry - just getting home from a long day at work and trying to get caught up on the days' events. I get that the bailout is not really related (supposedly) to the stock market, up or down - its been swinging wildly for months now. What I don't understand is, if the purpose of the bailout was to instill confidence in the market, why are the world markets dropping so wildly and why didn't we at least get a day of breathing room in the market? will the bailout actually free up credit or have the american people/taxpayers just been sold down the river? I'm-a-guessing I'm now working until 75 instead of 65 (brain-willing!) and I own enough of my home that I don't expect to lose it (my job is pretty secure... maybe no raises for awhile, but the job is secure). I also don't understand why I'm being penalized by not borrowing more than I can afford, wisely choosing a fixed rate mortgage (duh!), but now have to pay out for the greedy lender who oversold mortgages and the borrowers who greedily borrowed more than they truly knew they could afford if they'd just stopped for a moment to think about it. If the congress and the senate wants me to feel like I'm a willing owner of the bailout, they really need to get one the ball and explain it all to me a whole lot better than they have - what was the rush?

    October 6, 2008 at 10:45 pm |
  21. cindy r

    who is the real mccain? his negative ads are disgusting

    October 6, 2008 at 10:45 pm |
  22. Terry

    Subject: Economics
    Mudslinging is just fine. I frankly am sick about hearing about the market. I will vote for character and for someone who can use victory in the same sentence in Iran and Afghanistan. Let the mudslinging begin. We are adult voters we will sift it out. We don't need reporters and CNN contributors analyzing what we have just heard come out of the candidates mouths. Everyone keeps talking about what the candidates need to do to win. Who are you people. You are experts in finance, campaign strategies...everything....I think not. CNN only recently began reporting objectively on the campaign and one of Obama's radical connections.

    October 6, 2008 at 10:44 pm |
  23. donovan

    i am a jamaican, and i love america. i think what is causinng this crisis is clare but some persons dont want to admit ,the wars is the main cause and bad policies by the republicans ,if mMcCain is elected this will send us in the dark age.

    October 6, 2008 at 10:44 pm |
  24. mike - moreland, ga

    i wonder if Hayley would consider the democratic party to be one of those "radical" organizations.

    October 6, 2008 at 10:44 pm |
  25. Hayley

    Oh yeah- and his(Obama) thesis from College- why can't we get a look at that? It's not for public eyes- wyh not??

    Him being open and honest- that's change we could believe in.

    October 6, 2008 at 10:43 pm |
  26. giorgio

    I thought that they put criminals in JAIL????????????????? do they ????????

    October 6, 2008 at 10:38 pm |
  27. Hayley

    I am really shocked by some of these comments. By people that don't know the facts. Obama isn't just connected to Ayers- he is connected to a long list of radical people and organizations. Please look into the facts- it's time the American public hear them from the news anchors, Anderson, and it's time they open their eyes to a potentially frightening period of time in American history if Obama is elected. Why doesn't Obama answer any of the questions about his past relationships with these folks, and why isn't his past history regarding his education and those who 'brought him along' made readily available to the public?? What is he hiding and why won't he tell us??!!

    October 6, 2008 at 10:36 pm |
  28. jerry kennedy

    opps! After watching both Mccain and Obama vote in favor of this bailout farce,once we voters will have to vote for the one least distastfull. Neither deserves our vote and niether on deserves to be pressident. WE need honesty in washington.We,the american people, deserves at least 1 honest party even 10 new parties and dump all the current employees of the people and dump both non honest political parties.
    jerry kennedy

    October 6, 2008 at 10:35 pm |
  29. Fred

    Only Washington can call an $840 billion dollar gift to Wall Street a $700 billion dollar bailout. Even in the darkest hour of the economy, our elected officials just can't seem to stop being the generous gift-givers they are. While the country is on the brink, they somehow just can't pass a bill unless they add some pork to it.

    They couldn't stomach $700 billion, but add $140 billion and it's all the more palatable. Who's at fault? I don't have enough fingers to point with, but maybe if I invite 100 friends.

    The Commercial Banks for selling the 1% adjustable loans to anyone. The consumers who used those loans to buy homes they couldn't afford or really qualify for. The Investment Banks for packaging those subprime loans as securities and sold them to investors.

    Then make sure you have an administration that's asleep at the wheel on domestic issues because they're so distracted by this war in Iraq that supposedly, thanks to the SURGE, we're told we're winning.

    Add to that the most divided, clueless, powerless, disjointed Congress in the history of these United States and you have a recipe for the biggest government bailout in history.

    No need to heat. Congress may be able to choke down this pork, but the average american taxpayer will probably want this dish cold.

    October 6, 2008 at 10:33 pm |
  30. wljames

    The Republican "association" game is nothing new and is used on a consistent basis when a candidate cannot win on the issues. I am surprised that these attacks did not start earlier!

    October 6, 2008 at 10:32 pm |
  31. Conrad

    The terrorist accusation is nothing more than sad attempt at exploiting racist feelings that unfortunately still underlie our society. Racism is so latently emotional for many that it doesn’t really matter what the facts are; the only thing needed is to fan suspicions that Senator Obama is only pretending to be one of us.

    October 6, 2008 at 10:29 pm |
  32. Elaine

    I don't understand why we are not looking at the inflated real estate prices that started after the capital gains taxes were changed allowing individuals $250,000 and couples $500,000 profit "tax free". People wouldn't have needed the sub-prime mortgages had real estate prices not doubled and tripled in five or six years. Why are we looking at realtors, appaisers and mortgage brokers?

    October 6, 2008 at 10:22 pm |
  33. nickelson

    I think, Sara Palin is playing with the media and as a result we the American people will pay for that. What the media should do is, whenever the mccain campaign says something meaningful or something that's issue related we should know about it, else ignore all sara Palin Brabbling. Then I will really see the media is doing a good job. Please don't report trash. If you do, then it's your fault that you're instigating the wrong stuffs. Remember they're using you to talk to "US"

    October 6, 2008 at 10:20 pm |
  34. Henry (Canada)

    On your piece about todays hearing with the former CEO of Lehman's:
    Its amazing that the very politicians, those of whom are as much to blame for the fallout of the financial system, a system that they themselves allowed for limited regulation over, which is now resulting in a complete financial meltdown the world over, posture on live television as they did today. The only thing missing are the credits at the end of the dramady. It will be interesting to see how the continued unravelling of the credit default swap maliase will bear down on the world wide financial system in an even more egrigious manner over the coming months as the facts become more clear about how deeply indebted the world has become to a financial instrument that has virtually no regulatory oversight in place. To say that Wall Street, the central banks and Capital Hill are entirely complicit with one another in the carefuly orchestrated "financial crisis" would be an extremely large understatement.

    October 6, 2008 at 10:20 pm |
  35. June P., Staten Island, NY

    If the American Citizens have to contribute to the bail out
    of $840 billion, we should be entitled to benefits in return.
    We should all demand a slash in the excessive interest rate
    percentages in all aspects. Additionally, it sickens me that the
    majority of foreclosures are by Caucasians in America and it is critical
    that we find a quick solution to this debacle, yet, when we speak of the
    Katrina victims, 90% minorities–let em go live with their relatives if
    need be. God finally spoke relative to Wall Street and this despicable presidency. Enough is enough!!

    October 6, 2008 at 10:19 pm |
  36. Abraham Eisenstark

    The most important lesson from my four years of US army.

    "You can delegate your duties, but not your responsibilities."

    Bush, as COMMANDER-IN-CHIEF, must accept responsiility for all of our current problems, include trapping into an expensive war.

    October 6, 2008 at 10:19 pm |
  37. Patricia Patteson

    I'd like to hear more about the Todd Palin story about his involvement in a group that advocated that the state of Alaska secede from the union. Isn't that a bit radical?

    October 6, 2008 at 10:18 pm |
  38. george

    Lehmans CEO heaings....keep on televising those house hearing..let Americans see what is going on in Washington/Wall Street...expose the real reasons why the country is in such a mess...it's about time!!!

    October 6, 2008 at 10:18 pm |
  39. Keith

    How does a candidate who cheated on his wife and left her during her time of emotinal needs is considered to have higher character than a candidate who has been in a long term marriage?

    October 6, 2008 at 10:18 pm |
  40. Buck Wicker

    One Thing I just don't hear enough on this issue is how gas prices and as a result food/commodity prices have to do with the housing crunch. these people wanted and worked for these homes and then gas went up then food and rent and everything else. Why is it not mentioned ...why must they be "bad loans" and "predatory lenders"? when they once were able to stay afloat and now we are all struggling to feed ourselves. I blame the people makin the most of our hard earned dollars and that is Energy companies...period.
    thanks for listening please mention this.

    October 6, 2008 at 10:16 pm |
  41. Gary Bank

    My suggestion is for all trading, Yes, All Trading – be done fully capitalized, No Margin, No escrow etc. Some would say that the money markets would grind to a hault. Well, there wouldn't be any question of trusting another trading house or bank. Excessibe Credit Defualt Swaps – these would end, etc.
    Further, there wouldn't be so many Wall St. outfits in trouble for lack of cash.

    Thanks, Gary

    October 6, 2008 at 10:14 pm |
  42. June Tuff

    Can't people sue for slander? Palin and McCain are stooping to a new low with slander. Sowing fear and hatred... God help our country if that really works this time.

    October 6, 2008 at 10:14 pm |
  43. Terry

    Subject: Ayers and Obama
    Did Obama distribute monies from a grant Ayers received and was it 60 million a year for at least four years. Did Ayers stand on the American flag and pose for a picture? Did Obama attend a supporter meeting at Ayers house? Did Obama represent ACORN legally as a lawyer? Did he train ACORN employees? Did Obama funnel monies to ACORN? Was Ayers on the run for 10 years? Oh and how old was Obama when he had this association with Ayers…I am sure he wasn’t 8 yrs. old.

    October 6, 2008 at 10:13 pm |
  44. She

    I would like to know, will the FAT CATS of wall streets will they be given back any of the bonus they had received. ??

    October 6, 2008 at 10:13 pm |
  45. Kevin

    I was undecided for a while there, but just hearing the way Mccain and Palin are avoiding the real issues that are affecting us and are begining to send a message that seems to only devide Americans, Obama has my support.

    October 6, 2008 at 10:09 pm |
  46. JJ

    Why would Palin speak about Obama and Ayers, from 40 years ago. But yet to discuss what is the Future of America. We the American People are sick and tired of hearing about the Past. Our concern is about our future. Finger pointing will not help . I was a republican, not after these lies and racism. I am voting for Obama/ Biden. The ticket for All People. At a Time such as this, We need to come together. Not speading discord and division.

    October 6, 2008 at 10:01 pm |
  47. EJ (USA)

    McCain & Palin need to be careful with what they say. From what I saw today, they are appealing to the people who would start race riots.

    "Who is Barack Obama?" McCain says.

    "A terrorist!" a guy in the crowd shouts back.

    Huh? This is the kind of campaign they want to run? At a Palin rally someone even shouted "kill him!"

    Is this troubling? You betcha!

    October 6, 2008 at 9:54 pm |
  48. mike - moreland, ga

    if Bill Ayers is really a "terrorist" as Palin said, why hasn't the "tough on terrorists" Bush administration put him in jail? The answer: because he's not a terrorist.

    October 6, 2008 at 9:42 pm |