Government Buying Bank Stocks; Where Do the Presidential Candidates Stand?
LOU DOBBS, HOST: Wolf, thank you. Tonight, the worst week ever for the stock market, Treasury Secretary Paulson has just announced a plan to buy shares in ailing financial institutions, recapitalizing those institutions. I'll be joined by three of the country's smartest economic thinkers here tonight. And President Bush telling the American people again to be patient as the crisis worsens. We'll be reporting on that and the lack of leadership in Washington throughout this crisis. Also tonight, the McCain campaign hammer Senator Obama for his links with a left wing activist organization called ACORN, accused of election fraud all across the country. We'll have the very latest. And three top political analysts join us to discuss that and a great deal more, all the day's news and much more from an independent perspective tonight, straight ahead.</s>ANNOUNCER: This is</s>LOU DOBBS TONIGHT: news, debate, and opinion for Friday, October 10th. Live from New York, Lou Dobbs.</s>DOBBS: Good evening, everybody. Over the past few minutes, Treasury Secretary Hank Paulson announced the United States government will buy shares in financial institutions, his announcement following the worst week ever for the Dow Jones industrials, a 1,000-point swing today in the Dow. It was below 8,000 in early trading after plummeting nearly 700 points, but the Dow then rebounded, reaching a high of more than 320 points to the good. It ended the day 128 points lower. The Dow has now plunged more than 40 percent from its record close one year ago. The Dow has fallen 35 percent from its high set earlier this year on May 2nd and this week the Dow plummeted 18 percent, the Nasdaq dropped 15 percent, the S&P; 500 lost 18 percent. Stocks this week have lost almost $2.5 trillion. President Bush appealed this morning for patience, saying the so- called rescue plan is aggressive enough and big enough to work. This weekend, President Bush will be meeting with finance ministers from the Group of Seven, the world's largest, richest industrial nations. Tonight, Treasury Secretary Hank Paulson confirmed that the U.S. government will be purchasing mortgage assets and investing in banks, recapitalizing them, a plan that we first reported here as being under active consideration Monday.</s>HENRY PAULSON, TREASURY SECRETARY: We are developing strategies to use the authority to purchase and insure mortgage assets and to purchase equity in financial institutions as deemed necessary to promote financial market stability.</s>DOBBS: That, of course, Secretary of the Treasury Paulson, talking just moments ago. Earlier today, the president again, as I said, attempting to calm investors. That failed, however, to inspire at least any immediate confidence among investors. The stock market fell sharply even as the president made his statements, reflecting continued fear and skepticism. Many investors and voters now believe there's a complete vacuum of political and economic leadership in this country. Lisa Sylvester has our report from Washington.</s>LISA SYLVESTER, CNN CORRESPONDENT (voice-over): President Bush tried to calm fears as he assured the public that the federal government is taking steps to stabilize the economy and unfreeze the credit system.</s>GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Here's what the American people need to know. That the United States government is acting. We will continue to act to resolve this crisis and restore stability to our markets.</s>SYLVESTER: But despite the message, confidence is lacking. The Dow Jones average lost 100 points during what was supposed to be a reassuring speech by President Bush.</s>DEAN BAKER, CTR. FOR ECON. AND POLICY RESEARCH: At this point, I don't think he has much stature to really reassure the country. I mean, compare him to Franklin Roosevelt figure, who could stand up in the middle of the great depression and say you know "we have nothing to fear but fear itself." You couldn't envision you know President Bush playing that role at this point.</s>SYLVESTER: So how to regain confidence? Economic analysts say in the short term, people are waiting to hear specifics of what Treasury Secretary Henry Paulson is going to do with the $700 billion approved by Congress. Long term, the U.S. business and Industry Council says the country's leaders need to shift focus away from what he calls reshuffled wealth to creating real wealth.</s>ALAN TONELSON, BUSINESS AND INDUSTRY COUNCIL: What our leadership has failed to do is send the message that they understand that the real problem we face today is not in the finance sector. That's only a symptom or in the housing sector. That's only a symptom. The real problem we face is in the real economy. It's in the wealth creating sector.</s>SYLVESTER: Alan Tonelson says to jump-start the economy, the United States needs to go back to making things, production of goods and services.</s>SYLVESTER: And we did get a few more details. Treasury Secretary Henry Paulson just moments ago announced that the administration will buy stock in financial institutions. That money will come from -- will be part of the $700 billion that was approved by Congress. And he also said that the program will be open to a number of different companies. Lou?</s>DOBBS: All right. Thank you very much, Lisa. Lisa Sylvester from Washington. On the presidential campaign trail today, Senator McCain launched a new wave of attacks against Senator Obama, but some of McCain's supporters are demanding McCain take a much tougher line in this campaign. Dana Bash reports now from Lakeville, Minnesota, where Senator McCain has just finished up a campaign rally -- Dana.</s>DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Lou, that sense that we're getting and we have been getting for this entire week from McCain supporters at these events are really a bit of a climax here in this town hall that just wrapped up. More than half of the questions he got weren't on the economy and weren't on health care...</s>BASH: His supporters saying, please push you know yourself to hit Obama more and hit him harder. Also some questions regarding the thing that they have right up on the air right now, the whole idea that Barack Obama has a relationship with the radical from the 1960s, William Ayers. But the first question he got was from a veteran who again pushed him to be tough on Obama, particularly at next week's debate. But for the first time in a couple of weeks we heard Senator McCain try to tamp down on what we've seen and that is basically rage from some of his supporters.</s>SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: And we want to fight. And I will fight, but we will be respectful. I admire Senator Obama and his accomplishments. I will respect him. And I want...</s>MCCAIN: No, no. I want everyone to be respectful. And let's make sure we are. Because that's the way politics should be conducted in America. So, let's make sure.</s>UNIDENTIFIED MALE: We're scared. We're scared of an Obama presidency.</s>MCCAIN: I have to tell you, he is a decent person and a person that you do not have to be scared as president of the United States.</s>MCCAIN: Now, I just -- and I just -- now, look, I -- if I didn't think I wouldn't be one heck of a lot better president, I wouldn't be running, OK and that's the point. That's the point.</s>UNIDENTIFIED FEMALE: I can't trust Obama. I have read about him and he's not -- he's not -- he's an Arab. He is not?</s>MCCAIN: No, ma'am.</s>UNIDENTIFIED FEMALE: No?</s>MCCAIN: No. No, ma'am. No ma'am. He's a decent family man, citizen that I just happen to have disagreements with on fundamental issues and that's what this campaign is all about. He's not. Thank you.</s>BASH: Now, Lou, as you probably know, there has been some concern, particularly voiced by Democrats about this sentiment that we have heard. You heard just a snippet of it here tonight from McCain and also Sarah Palin has rallied throughout the week. As you say there, Senator McCain is trying to again tamp down on some of the rage he is hearing. But at the same time, he is airing right now a brand new ad on television nationwide, which does point out from his perspective that there are some things that Barack Obama is not telling Americans about his relationship with William Ayers and you heard some of that come out here tonight. Lou?</s>DOBBS: When you talk about anger, I listened to really some ignorance from at least two people in that crowd and I thought, frankly, Dana, didn't you, that Senator McCain handled that with considerable grace and civility.</s>BASH: Well, he certainly tried. And it really is frankly different. The way he reacted today in here is different from what we have seen throughout the week, where people have maybe not expressed, using your word, ignorance, about Barack Obama the way they did here tonight. But certainly they had urged him to fight Barack Obama harder, because they felt...</s>DOBBS: No, no, no, I understand that, Dana...</s>DOBBS: ... but what I'm asking you, the rage that we have seen reported by you, by Ed Henry yesterday, the anger has been directed at McCain for having no fire in his belly, if you will, and not carrying out an aggressive, energized campaign. That seems to be the anger.</s>BASH: That has been part of it. Another part of it has been some calls from the crowd when Sarah Palin or John McCain had been talking about Barack Obama, calling him a terrorist and things like that. It hasn't been direct because there hasn't been the kind of forum that we had here, a town hall like this, but it has been a rally and it has been noticed and it has been picked up in our reports and others. And it was very clear and talking to McCain and some of his aides right afterwards that that is something that he is trying to tamp down on.</s>DOBBS: OK. Thank you very much, Dana. Dana Bash reporting.</s>BASH: Thank you.</s>DOBBS: Well Senator Obama today lashed out at Senator McCain, accusing him of trying to divide the country. Obama said the American people won't be, as he put it, hoodwinked. Obama today also presenting new economic proposals designed to help small business. Candy Crowley has our report. Candy, Senator Obama suddenly announcing, along with Senator McCain, new economic proposals?</s>CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: It's a pretty different mode at this point than most campaigns that I have seen. We are about three weeks away and generally this is when candidates are out trying to rally the faithful, trying to reach into those swing voters, going to independent areas and it's all about rally, rally, rally and usually, nothing new because when you put something new up there, somebody is going to take a shot at it, and particularly if you're the front-runner, as Barack Obama is at this point. You really don't want to rock the boat with too much. You have a steady as you go campaign. But what this shows you, that both McCain and Obama made proposals today, dealing with certain groups being hurt by this economy with Obama, it was about small businesses, which he said needed to be given long-term, steady rate loans that are lower than normal, so that they can stay in business and keep the economy running and do it through the small business administration. It's just a portion of what's going on in the economy. But it's very targeted and they are releasing it, because you just can't fight this economy as the headline. And I think it has really changed the dynamic of the campaign. We've never seen a campaign that has really been -- has undergone something like this, and that this atmosphere has, at least in any campaign I have ever seen, has not been present. So, they really can't afford to stay out of the conversation. And I think that's why you are seeing, from time to time, some new proposals from both these men.</s>DOBBS: I think it's important that we remember that they're all just that, whether from McCain or from Obama, conversation. Because neither has the capacity to advance these so-called proposals for -- I mean, that's what's unique about this. The second part of it, we were talking the other day, you were pointing out that Obama is being very constrained by the, if you will, by the direction. Speaking before crowds today, was he still using a teleprompter or was he more -- well more looser?</s>CROWLEY: Yeah. No, very definitely this has been -- this is teleprompter time for Obama. It keeps down the possibility of a mistake. There are limited conversations with reporters. I think it's been two, two and a half weeks since there was a press conference. So really, this is the time that a campaign that's in the lead tries to kind of draw together and really control things so that they can stay in the lead.</s>DOBBS: Well it's pretty clear that the campaign that's behind is controlling things very well. Candy, thank you very much. Candy Crowley.</s>CROWLEY: Sure.</s>DOBBS: Well time now for the poll. Do you believe the stock market would have gone down a lot more without that federal bailout? Yes or no. We would love to hear from you. Cast your vote at loudobbs.com. We'll have the results later in the broadcast. Still ahead, much more on the presidential campaign and the government's new plan to buy, to recapitalize banks. The McCain campaign going on the offensive, but so are some of his supporters. We'll also be reporting to you on Senator Obama's links with a left-wing radical activist group accused of election fraud all across the country. And troubling new concerns about the integrity of our voting system. That story, a great deal more, straight ahead.