Another Fire From the McCain Campaign; Obama is Leading the Polls
KIRAN CHETRY, CNN ANCHOR: It's 8:00 here on the East Coast. A look at the top stories this is morning. It looks like the orders to sell are piling on. The Dow future's in negative territory this morning. We're also getting a look at how the global markets are reacting to the Wall Street bailout. Stocks significantly down across Asia, Australia, Russia and Europe. Crude oil prices trading below $90 for the first time since February. In the past three months oil prices have tumbled nearly 40 percent. Analysts say that investors are concerned the global financial crisis will decrease worldwide demand for oil. And police say at least 10 people are dead after a bus flipped over about 60 miles north of Sacramento. Doctors say at least four people are in critical condition. A local TV station is reporting the driver survived the crash and was on medication. Investigators are looking into whether that play played a role in the crash. Back to the most politics now. Just about 37 hours from now, John McCain and Barack Obama will meet for a town hall-style debate. Both candidates are going into tomorrow's primetime showdown in full attack mode. McCain's running mate Sarah Palin spent the weekend slamming Obama's character, accusing him of quote, "palling around with terrorists." It's a reference to the senator's past work with former '60's radical William Ayers. Obama fired back, charging McCain is erratic on the economy. CNN's Jim Acosta is following the campaign crossfire and he's live in Asheville, North Carolina, for us this morning. Hey, Jim.</s>JIM ACOSTA, CNN CORRESPONDENT: Good morning, Kiran. That's right. Barack Obama is hitting back at the McCain campaign over these personal attacks. The Obama campaign is releasing a new video highlighting John McCain's role in the Keating Five scandal from the early 1990's. It's a move that shows Barack Obama is perfectly happy playing for keeps.</s>ACOSTA (voice-over): If he succeeds in turns Republican strong holds like North Carolina blue, Barack Obama will have to withstand new character attacks, this time from Sarah Palin.</s>GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: Our opponent is someone who sees America as imperfect enough to pal around with terrorists who targeted their own country.</s>ACOSTA: Palin recycled on old story about Obama's past sporadic contacts with William Ayers, a former member of a radical group that carried out bombings on government buildings in the 1960's. Obama called it a desperate smear.</s>SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: They'd rather tear our campaign down than lift this country up. That's what you do when you're out of touch, out of ideas and running out of time.</s>ACOSTA: Now a college professor in Chicago, Ayers and Obama served together several years on a non-profit board. And in 1995 Ayers hosted a Coffee for Obama, when the young community organizer was making his first run for the state Senate. (on camera): At this point looking back, should he not have done that, do you think?</s>DAVID AXELROD, OBAMA CAMPAIGN CHIEF STRATEGIST: Well, when he went, he certainly -- he didn't know the history.</s>ACOSTA (voice-over): The Democratic nominee's chief strategist David Axelrod maintains Obama at that time, had no idea about Ayers' violent past.</s>AXELROD: There's no evidence that they are close, there's no evidence that Obama in any way subscribed to any of Ayers' views. And Obama's been very clear about condemning the despicable acts that Bill Ayers committed 40 years ago when Obama was 8 years old.</s>ACOSTA: Obama has unleashed a new ad seizing on the Ayers' attack. Noting a McCain campaign spokesman was quoted as saying the Arizona senator wanted to turn the page away from the economy.</s>ANNOUNCER: No wonder his campaign wants to change the subject. Turn the page on the financial crisis by launching dishonest, dishonorable assaults against Barack Obama.</s>ACOSTA: What else might McCain bring up? When asked of Obama's former pastor Jeremiah Wright is off the table, a McCain spokesman would only say, no comment.</s>ACOSTA: And Barack Obama is prepping here in the foothills of the Smoky Mountains, here in western North Carolina, for the debate with John McCain tomorrow night, in part to expand the battleground map. The idea is to force John McCain to defend states he should already have locked up at this point while at the same time running out the clock -- Kiran.</s>CHETRY: Jim Acosta for us in North Carolina, this morning. Thank you. And as Jim mentioned, the Obama campaign is e-mailing supporters a web video on John McCain's involvement in the quote, "Keating Five," from the days of the savings and loan scandal. Here's a clip.</s>ANNOUNCER: Many of our fellow citizens apparently believe that your services were bought by Charles Keating.</s>SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: The Keating Five involved all the things that are brought to the modern crisis.</s>CHETRY: Well, you can expect to hear a lot more about the Keating Five in the coming days. It's a phrase that was coined in 1990, referring to John McCain and four other U.S. senators linked to Charles Keating. Now, Keating was a big political donor who went to prison in connection with the savings and loan scandal. The trouble for McCain started when he and those other lawmakers ended up meeting with federal regulators on Keating's behalf. The senators were accused of acting improperly. The Ethics Committee ended up cleared John McCain though, saying that he only exercised poor judgment -- John.</s>JOHN ROBERTS, CNN ANCHOR: Meantime, with 29 days to go before the presidential election, the political grout is shifting for both candidates. John McCain is fighting to stay competitive in key battleground states and in some traditionally Republican strongholds as well. CNN's Jason Carroll is following the developments for us. And some radical changes in our electoral college.</s>JASON CARROLL, CNN CORRESPONDENT: Yes. We're definitely seeing a bit of a shake-up in some of the battleground states. The numbers show Senator McCain has work to do in states his Republican predecessors had won.</s>MCCAIN: I need to win the state of Michigan. We need to win the state of Michigan. I need your support.</s>CARROLL (voice-over): That was last month. But now the McCain campaign's pulling up stakes in the Michigan, a state that's voted for the Democrats in the last four presidential elections. But a state the McCain campaign thought they could grab back. It's a move his running mate isn't crazy about.</s>PALIN: Well, as I said the other day, I would sure love to get to</s>CARROLL: The McCain campaign will move resources from there to Ohio and Pennsylvania, states they think they have a better chance of winning. But McCain's down 10 points in the latest CNN Poll of Polls in Pennsylvania. And in Ohio, a new Quinnipiac survey suggests McCain's eight points behind Obama. In Florida, which President Bush won by five points last time around, a new CNN Poll of Polls indicates McCain's down by five points. But it's not just the battleground states. McCain's fighting to hold onto states that used to be reliably Republican in presidential elections like Virginia, North Carolina, Indiana, Nevada and Colorado.</s>OBAMA: We will not just win Colorado, we will win this general election.</s>CARROLL: So, what does the big picture look like? The CNN electoral college map estimates that if the election were held today, Barack Obama would win 250 electoral votes and John McCain would take 189, with 99 electoral votes still up for grabs. 270 electoral votes are needed to win the White House.</s>CARROLL: And in addition to shifting resources, the McCain camp has stepped up its attacks on Senator Obama. But most analysts agree the issue that seems to be hurting McCain the most with voters is definitely the economy.</s>ROBERTS: Which a lot of people say is why the subject is being changed now to Barack Obama's character.</s>CARROLL: Yes.</s>ROBERTS: Jason Carroll for us. Thanks very much. Join the best political team on television right here on CNN for your front row seat to tomorrow night's debate live from Nashville, Tennessee. That's at 9:00 p.m. Eastern.</s>CHETRY: Well, world stocks tanked after the House bill passes. We're going to tell you what trouble the overseas markets mean for the American investor, today. And Ellen DeGeneres has a new role this morning, recruiter. The daytime host using her show to sign up new voters as we enter the homestretch in the election. You're watching the Most News in the Morning.