October 10th, 2008
08:05 AM ET

Morning Buzz: Free Falling

Penny Manis
AC360 Senior Producer

And no I’m not talking about the Tom Petty song- (although it’s a good one).

Good morning folks. Another day we wake up to global markets tanking, European markets nose-dived at the open Friday, joining the US and Asia in downward slide this week, and Dow Futures is down. An analyst of ours in London said that we are getting mighty close to the final bottom of all this, and he has no doubt in the next 48 to 72 hours we will find our low. I’m thinking that is good news? Because once you hit rock bottom, you can only go up from there right? Hmmm.

I finally had the guts to look at my 401k this morning, right before I signed onto this blog, and it was not a pretty scene. I think I’ll stick to my plan of avoiding looking for awhile. But I digress.

President Bush is going to make a statement on the economy at 10:25am approx, this as Congressional leaders urge him to meet with the G8 to address the crisis. Secretary Paulson will make a statement 645pet approx. Ali Velshi has his work cut out for himself today big time. We can surely count on him to help us make sense of this tonight. And we will feature a great consumer guest who can try to answer q's on what to do with your money during this time.

Today John McCain campaigns in Wisconsin and Minnesota. Sarah Palin attends fundraisers in Ohio and Pennsylvania. Barack Obama is in Ohio, and Joe Biden campaigns in Missouri. Yday, Obama ripped into McCain’s plan to help homeowners with mortgages, and said the country doesn’t need ‘erratic leadership’ from McCain during uncertain times. Meanwhile, McCain pointing to Obama’s background and past associations to send the message that an Obama candidacy is ‘risky’ for the country.

Notably, the crowds in the McPalin rallies are becoming rowdier, as the idea of an Obama candidacy is not going down well at all and conservative voters are unleashing frustration that this Obama momentum is not being stopped. Candy Crowley and Dana Bash will follow this tonight.

Randi Kaye follows the report detailing the circumstances behind Sarah Palin’s firing of Public Safety Commissioner Walt Monegan. Alaska’s Supreme Court has dismissed efforts to block investigation of this Trooper probe and today we will see the findings of this inquiry released.

Last but not least, Joe Johns will report on 10 Most Wanted: Culprits of the Collapse, we are ‘naming names’ of those responsible for this financial crisis. Tonight’s choice may surprise you!

See you 10pET.

Filed under: The Buzz
soundoff (38 Responses)
  1. Camina T. in Arroyo Grande CA

    If Acorn pays people to register voters that so easily explains the silly piles of fakes so seriously reported on360. How about some reports on caging and what the Dept of Justice is going to do about caging? Rolling Stone is putting out the stealbackyourvote.org cartoon because they are concerned about caging. The Ayers 360 story was also lame. Ayers is having a big affect on this election and what do we know about him? Nothing thanks to CNN. Why exactly didn't the guy go to prison? What exactly were the charges against him? Does he now embrace non-violence? Was he an illegal drug user in the 1960's? How big was his violent following then? Who were his friends? Who are his friends? Who does he work for now? Does he have a recent criminal record? Were Obama and the neighbors aware of Ayers' past? How do you launch a political career in a neighbors living room? Ayers is stirring up some serious hatred for Obama. What does Ayers have to say about this? Was Ayers going free a serious failure of the justice system? Is there evidence for a citizen's arrest of Ayers if Ayer's is such a threat? Even McCain says he doesn't care about Ayers but we are still opening back up cases against anti-black terrorists from the old deep south. Give me the FACTS!

    October 10, 2008 at 4:05 pm |
  2. David Hancock

    Think that Clinton gave us Nafta (North American Free Trade Agreement.. Most of our factories and Manufactures have bailed ship and went to other countries for cheaper labor. We've closed military bases here in our own country and watched them bomb our Embassies all over the world. Why are we in Korea , North Vietnam, Iran and Iraq, little owns Afganistan.Who gives a crap come home and enjoy life just let them stay in the stone age. They don't need us nor do we need them..

    October 10, 2008 at 3:05 pm |
  3. Duncan B. MacLaren

    I want to compliment CNN and Anderson Cooper for superior post-debate analysis and commentary last week. We felt well served by a diverse group of seasoned professionals from across the political spectrum. No "gotcha" moments....no ridiculous spin, just the kind of calm, reasoned reporting that led us to say, "that added to our understanding of the debate and of the issues facing all of us."
    Duncan MacLaren

    October 10, 2008 at 2:44 pm |
  4. Mick Gast

    If you combine all five of Senator Barack Obama controversial associations it does leave doubts about his character and judgment to lead as president during very tough times for America. Mick, San Francisco, CA.

    October 10, 2008 at 2:00 pm |
  5. Ethel

    Why don't you try and show the American people what has happened, it not Fannie and Freddie but AIG and show how deregulation has helped this make a world market. And why, now the world blames the USA.

    October 10, 2008 at 1:26 pm |
  6. Bruce

    What is the mystery of the financial crisis? We are allowing "In God We Trust" to be removed from our currency, which is an outward show of our hearts... and we wonder why all this is happening? We need to put God first and repent for greed.

    October 10, 2008 at 12:59 pm |
  7. penny

    "About the economy, they ask where is bottom. The answer is answered with a question "Do you know where the TITANIC IS?. If John Mccain is elected that is where all the money will go. He is too polarizing for our economy no sound pRocedures, policies, etc. He will confuse our global economy. It will lead to more fear and pulling away from America" EVEN SCARIER"!!!!!!

    October 10, 2008 at 12:03 pm |
  8. Rob

    In this election cycle, it is inconceivable that the end result would be FOUR MORE YEARS of failed policies packaged under a different label. It boggles the imagination. My parents, now senior citizens, are staunch Republicans, who are barely scraping by, their fixed incomes devasted by rising gas and food prices. Ideaology pales in comparison to the economic crisis at hand. I laugh when I see what the McCain-Palin ticket is ranting about lately. I can't help myself. They are so disconnected from the majority of the American people that even their own party is saying—this is not the Republican party I used to know and love. The Republican party has been taken over by enormously wasteful spenders, rampant cronyism, and a woefully un-Christian agenda of condemnation and intolerance for those who are diferent, less fortunate or less able. Is it NOT obvious? We cannot continue on the same path. During these times, ideology is replaced by basic human needs.

    October 10, 2008 at 11:57 am |
  9. Roy Wheeler

    Grrr..... Am I off the mark here or what? All the $$ infusion is directed at banks and financial institutions. What about the taxpayer in such a consumption-oriented economy as the USA? Give a real "stimulus" check straight taxpayers.

    For example, take $85 billion (from AIG) divide by all tax filers and give a real stimulus check to the American taxpayer directly (minus taxes of course). Easy to administer and the taxpayer becomes a saver and a consumer again thereby stimulating the economy and increasing confidence. Inflation; maybe. Confidence; definitely. Pick your poison.

    October 10, 2008 at 11:52 am |
  10. Rahni, Connecticut

    McCain and Palin at their rallies, they are spewing out hate talk to the weak minds. One of the spectator screamed out “Kill Him” and a few of spectators attacked an African-American camera man. I’m a democrat as long as I’ve been voting, I never saw the Republican Party to stoop this low. At least in the past, they had (Republican Party) respect and they acted like professional candidates although they ran negative ads but this time, they are going too far with the hate talk.

    Most of my Republican friends are voting for “That One” for President this year due to the hate talk. Wake up Republicans, McCain and especially Palin is killing the Republican Party.

    October 10, 2008 at 11:51 am |
  11. Jolene, St. Joseph, MI

    Ok, I broke down and just looked at my 401k online. Now, I’m in a bad mood. However, since it’s Friday and Erica asked on one of her webcasts for song suggestions for Floor Crew Friday, “Free Falling” by Tom Petty just might be a good choice for tonight. After looking at my 401k, perhaps “All Shook Up” by Elvis Presley or Queen’s “Another One Bites the Dust” would be more appropriate. Ha!

    I just got an email forwarded to me from Fight for Michigan, a grassroots Republican campaign asking for people to sign a petition to bring McCain’s campaign back to Michigan. Guess they are trying to get 100,000 signatures in the next few days to convince the McCain campaign not to give up on Michigan. It will be interesting to see how this develops. People are angered and disappointed about McCain’s decision and want Palin to come to Michigan.

    I see the market has started today in a good light so I'm keeping my fingers crossed.

    October 10, 2008 at 11:49 am |
  12. Michelle

    You will not believe the number of people who I talk with who
    can not wait to put an end to the silliness of the type of campaigns
    like John McCain is running that have ruin this country greatly.
    I will be voting to for Obama on Nov 4th. This country can not
    continue on this downward spiral. The market could break the
    777 record that can not be good.

    October 10, 2008 at 11:32 am |
  13. gm

    It seems to me that this mania is driven by considerable short-selling with no connection to the actions that the Fed or Treasury have taken. I think the SEC needs to send a clear signal that market manipulation will be vigorously prosecuted.

    October 10, 2008 at 11:31 am |
  14. William of Iowa

    Re: your 401K – were the losses you observed money gained over the preceding "fat" years or actual out of pocket capital invested? Remember, the taxpayor has been called upon to make your investments and gains whole again. Velshi's reporting on the Fed's attempts to free the credit market are a critical sign as to whether or not rock bottom has been found. I believe the solution to this crisis lies in the credit issue. After all, it was the frozen credit market between 1928 and 1932 that provided the foundation for the Great Depression.

    October 10, 2008 at 11:29 am |
  15. jesse tatro

    As an American I am getting very resentful of Obama exploiting this problem for political gain. I thought he was a different politician. He has not once criticized the Democratic Congress, who actually do have oversight of Fannie Mae and Freddie Mac. Has he called for the resignation of Barney Frank . Why is it no one ask about why these agencies were donating more to the Obama campaign than any other politician........in less time ! Why are they engaging in politics at all ?

    jesse tatro
    massena NY

    October 10, 2008 at 11:22 am |
  16. David W., Florida

    Senator McCain takes the average american for a idiot. At the last debate, he assumed that no one who works a real job knows who Fannie Mae and Feddie Mac are. He also tries to act like sub-prime loans were not a good idea but leaves out the fact that his de-regulation is what allowed managable sub-prime lending to get out of control.

    He and his mate have turned out to be the idiots.

    October 10, 2008 at 11:10 am |
  17. jesse tatro

    As an American I am getting a little sick of Obama doing nothing but exploiting this issue for political gain. The culprit is the sub prime mess and he recieved more money than any politician and in less time. Another question I don't hear being asked is what is an agency like Fannie Mae or Freddie Mac doing engaging in politics it seems outside of their purvue. Why isnt Obama demanding that Barney Frank resign. why isnt he criticizing the Democratic Congress for the past 2 years.........I mean they actually do have oversight of such matters ! Oh that's right............he's a different kind of politician........spare me !!!

    October 10, 2008 at 10:54 am |
  18. Najee Basheer

    We are Heading toward a one world government. What would happen to peoples dollars, if the government switched to the Amero?

    You Have a Responsibility to either tell the people the truth or to help enslave them!

    Which will it be?

    October 10, 2008 at 10:46 am |
  19. Richard

    Maybe this is just too simplistic, but I stay amazed at the number of people who are surprised by the current economic situation. Any casual student of human behavior could have seen all of this coming. If you allow people to operate without oversight, they will generally act in their own selfish interest, to some degree. If you have large, powerful institutions who REALLY enjoy making money (investment banks, real estate firms, etc.), then they will acquire all they can, the rest of us be damned. Add a political system that allows the bigs to own the players, and you have the perfect money mill. Will Rogers said it best several decades ago- we have the best Congress money can buy

    October 10, 2008 at 10:45 am |
  20. Tim

    Enough is Enough. Isn't it time that the 'people' take control. The 'people' have been shamefuly manipulated by fear. Fear is not real, it is a perception. This crisis is controlled by the Gov't's, the Banks, Oil, the 'News' business, and mostly the power-rich people of the world. The upper percentile are not worried, this is just another way of them making money off of the masses. Stay strong, don't panic, be the hero. It is the everyday person that is worried about his retirement that has stayed in the market that are the real hero's. They don't have any more money to inject, or more to lose, but you have to stay the course. Stop allowing the rich to get richer off your backs. Everytime the market dips, the rich grab more stocks, then add more fear to do it all over again. This is a great opportunity for the rich to dip in and out and make huge money within the panic, and on the backs of the people that make the clogs turn. 911 was the absolute illustration of the control, selling War/Fear look at Cheney, Halburton; look at the Bush family with oil/Industrial riches, look at who actually owns the major news networks. Stop being puppets. All of this based on 'us' buying into the fear. The United States is the biggest market in the World, and the underlying economies are strong, the asset of people and character assets remain unchanged. Other then personal fear. Why do I get the picture of Cheney, Bush, Gates, Turner, even Buffet(err G.E.), etc., etc. and etc., sitting around the a World game board called Fear and trading off the people for their own personal gains. Total manipulation! Bush is out of Gov't, this is his last chance at the pot. It is so obvious it is blinding. Stop buying into Fear, have faith. if we call look out for eachother, then we win. 700Billion? What about world hunger? Boggling Blogging.

    October 10, 2008 at 10:37 am |
  21. Annie Kate

    I am really hoping that the bottom of the market is not too far away. Back around 1990 the market was about 6000 and went up to 7000 and kept climbing. I'm still not looking at my 401K – I want to stay in blissful ignorance for as long as possible on that one.

    Annie Kate
    Birmingham AL

    October 10, 2008 at 10:36 am |
  22. Ro Leaphart

    I have a couple of questions:

    1 – who is selling, who sold the largest number of shares over the past two weeks. Example: Fishers at the Gap sold off large shares in early September. But is there a place where all institutional and insider sales can be seen in one place. I'd like to know "who" is selling off so many shares. Is it the little guy with 401k or are these big trade sales.

    2 – where is the money going. where is the money being held by those who sold.

    3 – are there huge international investors selling and pulling funds to foreign banks... or are the funds being held in US institutions.

    Appreciate if you would address these fundamental questions.
    Thank you,

    October 10, 2008 at 10:31 am |
  23. penny

    "On the stock market, the global community are afraid of America. We are in scary times. The ones during Mccain visit who called Obama, Pelosi "hooligans". They need a mirror to look in. Also they need to check out Gw Bush. Also Mccain isn't the one to fix the problems. HE IS TOO OLD. Also, He want to talk about the 60's why won't he tell us why we lost the war in Vietnam. !"

    October 10, 2008 at 10:31 am |
  24. Heather,ca

    Bush needs to stop putting our money into it. No one trusts anybody world wide. Arrest these wall street criminals,outlaw subprime mortgage,outlaw cdo's and derivatives and we the people will start to buy stock and banks will trust each other. Thank you for covering this!

    October 10, 2008 at 10:28 am |
  25. ralph woodfin

    Anderson, dollars worth 8 cents. If it goes down as much as last years interest indexing of 4% which was fed chairs prediction then hold on when the dollar value declines 50%.

    October 10, 2008 at 10:21 am |
  26. Sam, Chiclana, Spain

    You have so many financial correspondents talking about the collapse of the world markets and although this is the worst for years only those who have their capital already in are suffering.
    There is great opportunities for those not invested if they are young enough to buy time. As a retired financial advisor, those who are in a position to put money in the market should do so through mutual funds on a "monthly basis" but I never hear any of your so called financial experts talking about this. I witnessed the down markets in the 70's and in 87 was living in Florida during the Shedded chards debacle, as well as the Dot Com bubble.Sure "Cash is King" and not Larry and money will still be made for retirement in the future in the markets especially if investors use "Pound Cost Averaging"

    October 10, 2008 at 10:18 am |
  27. Larry

    No rowdy crowds at the O'Biden rallies are expected.

    October 10, 2008 at 10:09 am |
  28. Rita

    I think this was a non issue until the press got involved. The trooper should have been fired and his the one who was fired was fired for differnt reasons, which is Palins right to do at any time. The only one hiding things is the press and Obama.

    October 10, 2008 at 9:59 am |
  29. Rita

    After the rape(bailout) of our government and the rape of all news channels(instead of facts this election year we get the side they want us to hear only communism?) it should be no surprise about wall street. I wonder how much involvment the democratic senate has to do with all of this. Isnt Pelosi husband on wall street? HOw sad the American people, THIS YEAR, are not allowed to inform ourselves of these candidates character,experience or lack of it(has Obama ever operated a business,made payroll,settled conflict of employees?)and are called bigots, unpatriotic ect. if we try to inform ourselves, so who is hiding, lying, and erratic? Seems to me it is the press and Obama!

    October 10, 2008 at 9:55 am |
  30. GarySugarLandTX

    This is horrible, and I am angry. We had our retirement programs taken away; we were told to save for retirement in 401Ks; we did; it's bleeding away so fast there will be no retirement. Congress waited to long to approve the rescue plan; I'll never vote for the GOP again; deregulation baloney. Short Selling should be eliminated forever; Derivatives need full transparency and then should be eliminated forever, and the Hedge Fund leaders prosecuted with their assets taken away.

    October 10, 2008 at 9:44 am |
  31. lisa

    HISTORY WILL TELL US OUR FUTURE–Sadly during crisis, people vote for change, even if they normally would not. 50 years ago the Cubans heard the same rhetoric of Obama and Castro "changed" their country, and Germany heard the same from Hitler. Unless we are willing to change to a very socialistic country, we should not vote for Obama. Obama is very evasive for a reason–he is hiding his true viewpoint and the Democratic party is so desperate, they are willing to push the truth under the rug!!!

    Don't be desperate-look at the past–it is always there talking and guiding us!

    October 10, 2008 at 9:32 am |
  32. Hernan in Virginia


    As someone who can see his 401K down over 33% since Jan. 1, the only question I would like to ask someone, anyone on Wall Street this morning is "Do any of you know what you are doing?". My feeling is that anyone with the knowledge, temperament in staying calm, not fueling the fire by short-selling has simply not been in the market since the dot.com bubble burst back in 2000. How low can we go before this dreaded "Depression" becomes a reality?

    October 10, 2008 at 9:19 am |
  33. Sherry Clifford

    Emotionalism, Markets and the Media
    The news media needs to start reporting the patient is getting better. Susy Orman stated on Larry King/CNN we are in the ICU. You don't keep telling the family members that the patient lost his foot, his leg and he is on his death bed.

    Now is the time for the media to start reporting that there are some good things that are happening. There are some signs that are turning around and stop focusing on the doomsday. Don't misunderstand that I am saying lie or conjur truth. But you can report that the glass is half full or half empty. This emotional market needs a break and so do we the general public. People are turning on their TVs to watch for some hope not because they want to keep hearing that we are crashing.

    Media take some responsibility in this extremely emotional rollercoaster.

    October 10, 2008 at 9:11 am |
  34. Larry Gryder

    Why have the banks not raised the interest they PAY depositors for buying CD's, Passbook savings deposits, money market accounts, etc????

    It would seem that with all the stock sell offs going on that there would be an abundance of cash just looking for a place to go. If the banks need to attract cash so they can then loan the money back out to people needing to make a loan – it seems a no brainer that the higher interest paid out would tend to attract at least some of this cash!?!?!?

    Seemed like that process has worked in the past??? or am I just old and stupid????

    October 10, 2008 at 9:07 am |
  35. Matthew Granlund

    Where is George Bailey when you need him?

    Remember the scene from It's a Wonderful Life? People, stop the panic selling. Cooler heads will prevail.

    October 10, 2008 at 9:03 am |
  36. Judith Nachshin

    Since there is a financial crisis and ultimately a credit crunch through only partially the fault of the American people, how about a FICA Score reset. Give all Americans a chance to re-group their credit score. Re-set all American’s FICA score to the top. Like a “Second chance”. The same “Second chance” we are giving to the Financial Institutions. This way, it’s not only the Financial Service Industry getting a “Bail Out” but the American People too. It provides immediate relief, it’s great public relations and great politics. A Win- Win. Could this actually work?

    October 10, 2008 at 8:32 am |
  37. scott phillips

    Why are self-respecting Conservatives allowing John McCain and Sarah Palin to spit in the faces of the hard-working, dedicated men and women of The United States Intelligence Service? Does anyone really believe that Senator Obama could even get close to being in the same room with George W. Bush if he had the slightest connection to real terrorists? If Bill Ayers was really a credible threat he would be locked-up, instead of employed at the University of Illinois. The True Patriots working in the CIA, FBI, and Homeland Security are in the business of keeping Americans safe 24 hours a day. The New York Times and Cable News are in the business of selling newspapers and advertisements. McCain/Palin are denigrating the service of all members of the Intelligence Community when they try to mislead their base with the "pals around with terrorists" statements. It's Anti-American, and just plain wrong, to lie about National Security. We've seen this kind of misleading scare-tactic before with the weapons of mass destruction statements that got us into Iraq. This should again remind us that Political scare-tactics hurt National Security. Bush used fear to get us into Iraq and McCain is using fear to get votes. The Bush/McCain policies of fear and poor judgment are one in the same and they do not put Country First.

    The failure of the Media and members of Congress to denounce McCain/Palin for trying to mislead the American People on a matter of National Security is the same as their failure to question The Bush Administration's misleading statements about WMD and the non-existent Iraq-9/11 connection. Americans know what all this chatter really means, even when McCain/Palin try to wrap it inside a phony discussion about honesty, judgment, or character. They want scare up votes. Americans know better and will not be misled again.

    October 10, 2008 at 8:31 am |
  38. Jenna

    CNN kept showing a clip last night of a McCain rally where this gentleman stood up and vented his frustration about the campaign and asked McCain how Obama got to where he is today. He was also ranting about socialism. My dear sir, this big financial crisis is responsible for any socialism going on and you can thank your Republican President for having an administration that wasn't overseeing anything except their own greed. He's also spent billions on a war that has really changed NOTHING except some families are now missing cherished loved ones.

    October 10, 2008 at 8:27 am |