Bailout Bill: Round Two
CBS
Transcript
facing increasing pressure from shaky markets and persistent warnings that wall Street's woes could soon cost Main Street jobs Senate leaders pledge to pick up the pieces of the $700 billion bailout the security and well-being of the American people are at risk and we have to work together to solve this crisis bipartisan supporters rallied around a Unity theme a stark contrast to the political bickering that marked Monday's shocking house defeat we believe that we have crafted a way to go forward and to get us back on track presidential candidates McCain and Obama and vice presidential candidate Biden all voiced support and returned to the capital to vote for a package that seems sure to pass if we fail to act the gears of our economy will grind to a halt step up to the plate let's do what's right for the country at this time because the time to act is now new to the Senate version an increase in FDIC Insurance limits for for individual bank accounts from $ 100,000 to $250,000 and a renewal of tax cuts including the so-called AMT patch that keeps 25 million middle- inome taxpayers from paying higher rates aimed at the wealthy all of that is added to the core elements of the original plan mortgage relief for homeowners and executive salary caps for companies that sell Bad Assets to the government the Senate vote puts pressure on house members to round up enough votes of their own for passage the hope is the tax breaks May find support among the 228 house members who voted against the bailout but those same tax breaks could frighten away some earlier yes votes house leaders are making no predictions meanwhile the president who's been forced to make daily pleas again stressed an urgent need it's very important for us to pass this piece of legislation so as to stabilize the situation if the Senate passes the bill as expected tonight the house will likely take it up on Friday but only they say if they have enough votes in so far that's still not certain Katie all right Bob or thank you Bob
Candidates' Bailout Battle
CBS
Transcript
presidential candidates John McCain and Barack Obama urging quick action on that rescue plan early show National correspondent Jeff lores at the Truman Library in independent Missouri right outside Kansas City with more good morning Jeff hey Russ good morning to you John McCain will be campaigning here today in this key bellweather state but both he and Barack Obama will be returning to Washington tonight for that Senate vote both have been spending a lot of time discussing this plan for one day at least it was hard to tell one from the other this may be and is the greatest financial crisis of Our Lives we are now in a very dangerous situation so dangerous that Barack Obama and John McCain both agreed the federal Insurance limit on bank accounts should be raised to $250,000 that the rescue plan Congress rejected needs to be resuscitated blame in the future there will be time to punish those who set this fire but now is the moment for us to come together and put the fire out I'm committed to doing whatever is necessary in a bipartisan fashion and it'll be plenty of time to point the finger of blame and both release new ads both targeting economic issues but that is where the similarities end John McCain fought to reign in Fanny and Freddy McCain's ad charges Democrats with blocking reforms that would have prevented the current crisis my plan offers three times as much tax relief to the middle class as Senator McCain's Obama accuses his rival of spending too much time worrying about the rich with less than 5 weeks until election day and a financial Miracle unlikely figuring out the overwhelming issue in this campaign does not take a financial wizard even though plenty are available right now we mentioned what John McCain is doing today in the campaign Trail we should also mention that Bill Clinton will be campaigning today for Barack Obama in Florida all right Jeff gloren Independence Missouri thank you very much
Credit Crunch Blues
CBS
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for Generations places like Grand Rapids have paid for projects such as Road repairs and new buildings with bonds they sell to investors and even though their credit is First Rate they're still getting hit hard by the credit crunch the variable rate has jumped in the course of a week and a half from roughly 3% to 10% for them that 7% more equates to an additional $330,000 in interest a week that's a deputy that's a nurse that's um cutting services it's even worse in Birmingham Alabama where the county has to come up with at least $83 million in interest payments this week on a sewer loan or else suffer the nation's largest government bankruptcy it's like falling off of a 30 story building and you're on you know you've been able to watch 29 28 27 and now we're down at the bottom so we're about to hit the failure of Leman brothers and the $85 billion bailout of AIG are a big part of the problem that took huge buyers of municipal bonds out of the equation which is why Denver officials say refinancing a $220 million airport loan could cost an additional $25 million Connecticut is projecting a $1.3 billion budget shortfall for fiscal year 2012 due to borrowing cost even tiny Vermont has had to set aside an extra 200 Grand this year for higher interest rates and putting off public projects such is building roads and bridges may not be an option because America's infrastructure is in such desperate need of repair you can't reduce costs and shorten services and think that that will be a long-term solution which is why communities all across the country are hoping this financial mess doesn't lead them in an even bigger hole Cynthia Bowers CBS news Grand Rapids Michigan
Economic Domino Effect
CBS
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what happens on Wall Street affects all of us on Main Street it's the classic domino effect joining us is financial journalist and early show contributor ver Gibbons ver good morning good morning Julie can Wall Street fix itself without a bailout no I mean we need a bailout package this is the worst financial crisis we've seen in decades it's affecting the markets it's affecting the economy something needs to be done it looks like by all accounts something will be done soon it seems like there's no confidence there is no confidence I mean confidence has taken a huge hit these Banks made a lot of bad bets on real estate to the tune of hundreds of billions of lost a lot of money in the process and in the meantime too lost a lot of trust lost a lot of confidence and that affects Main Street now there's a credit crunch a credit freeze people are going out there trying to get a mortgage can't get a loan can't get a student loan can't get an auto loan none of that stuff so there is a broader impact on the consumer here without what's happened to the housing market since there because of this credit crunch right well housing value is continuing to go down because desperate sellers can't sell their homes to prospective Buy because buyers can't get the financing that's pushing prices down even more and in order for the housing market to stabilize you really need to wipe out some of that inventory we have over 11 month supply a lot of homes on the market right now sitting there for stuff to stabilize we have to get rid of some of that and that'll be a while okay why is credit a problem for businesses right the businesses are having the same problem that the banks just aren't lending them so they're not lending to them they're not letting to Consumers they're not Ling to businesses so we've seen more people lose their jobs we've had over over 600,000 layoffs so far the unemployment rate is up to 6.1% a 5-year High could go up to 77 half% sometime in 2009 small businesses in particular really having a difficult time they can't get the financing they need to expand their operations to buy new equipment to hire new employees and some of them can't even fund their existing payrolls so more layoffs inevitable so with more layoffs people are not spending well that's the issue they don't have jobs or they're losing their jobs they're losing their homes they've had a lot of stockk Market declines wages are virtually stagnant home costs are going up the cost of living everything from gas to groceries is up home heating bills are ridiculously high so there's no money out there to spend which has called caused a panic which is the last step people are in look what happened on Monday over a trillion dollars in stock market value gone now thankfully we regained a lot of those losses just yesterday but people's retirement accounts their college funds been totally wiped out so there's a wide sense of panic out there and no one knows how long how deep this recession is actually going to be which causes loss and C ends in panic and it is it is it's a domino effect all works together voila that's depressing it's depressing but things will get better first step is actually get this bill passed and then move on you're Gibbons thanks thanks Julie you're welcome [Music]
Auto sales collapse; GE sells $3B stake to Buffett
CBS
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Wall Street avoided any major swings today as investors waited to see how the latest 700 billion dollar bailout plan fared in Congress in the end the Dow was down a modest 20 points the NASDAQ Composite lost 22. more proof the economic crisis is getting deeper U.S manufacturing activity dropped more than expected orders for everything from furniture to Transportation equipment fell dramatically in September also down car sales at Ford Sales dropped about 35 percent in September its worst sales month this year GM was down 16 percent foreign car makers didn't fare any better Toyota sales were down 32 percent Honda 24 dealerships say tight credit is making it harder for people to get a car loan and in an attempt to raise Cash General Electric is selling three billion dollars of preferred stock to famed investor Warren Buffett the company is also going to offer 12 billion in common stock to the public that's your money watch click on cbsnews.com for more business headlines at the New York Stock Exchange I'm Alexis christopherus
Senate Jumps To Action
CBS
Transcript
will the Senate vote will come sometime tonight as Congress desperately tries to get this stalled bailout Bill back on track and already Senate leaders from both parties have sent a strong signal that they are ready to get the job done the blame game needs to end and we will pass it on a broad bipartisan uh basis with that renewed optimism Wall Street rebounded from Monday's record decline climbing nearly 500 points on hopes that Washington will deliver a rescue plan the Senate plan would raise the FDIC Insurance protection limits on bank accounts from $1 100,000 to $250,000 it would also extend some corporate and individual tax breaks all of that is added to the original plan calling for mortgage relief and compensation caps in exchange for the government taking Bad Assets off the books of financial companies it's not clear that will fly in the house where members of Congress are pouring through emails and letters please hear your leadership and work with your fellow representatives to pass and talking with voters taking their temperature on the sweeping Financial rescue we can solve it that's the good news now Senate leaders are confident that they do have the votes in this chamber to pass the bill and they know they're under incredible pressure both from voters and shaky financial markets but the addition of tax cuts to the mix could run into trouble in the house while it's true that the tax cuts could pick up support from conservatives who voted against the original bill it's also true they could lose the support of some of the Democrats so this is still not a done deal Julie CBS is Bob or Washington thanks [Music] Bob
The Other America
CBS
Transcript
seone continues his series the other America in the shadows of the high-rise casinos one community in Reno Nevada lives with almost nothing in tent after tent a human Mosaic of suffering did you ever imagine you'd wind up living in a place like this oh no no I imagined myself being in a tent for a vacation Nevada's unemployment rate is at a 23-year high in Reno the number of Jo jumped nearly 60% in the last year now for 170 people this is home I know God's going to take care of me but some days it's very scary whether it's the blaring train or the blazing sun life is not easy here for the mix of chronically homeless and those newly so like Michael Moore and his partner Maran Shan I mean we worked our life we shouldn't be at our age having to with sleep in the dirt just last Christmas the couple lived in a rented house in Portland until Michael lost the job he'd had for three years at a gas station they moved to Reno in search of jobs this resume says you have your GED you are a veteran you've worked in Warehouse operations before with fork Cliffs yes sir but there are just not jobs or no jobs for you it sounds not right now today Michael hopes a scrap yard may offer work I don't have any openings right now those words echo through Tent City This Is Not Just Happening Here 10 cities have popped up or expanded in recent years in places like Seattle and Portland Fresno California Columbus Ohio and Chattanooga Tennessee the problem got so bad here in Reno that City officials decided to organize the Tent City and run it the city provided fencing security and fresh running water until can move these people into housing or shelters but the more difficult fix for Michael and Marian will be finding work they know they'll have to do that themselves Seth Don CBS News Reno
Hellooooo Kitty
CBS News
Transcript
[Music] k i t y k i t y everybody say Hello Kitty hey there guys so to brighten your mood as you're kissing all your Banks goodbye at least you can say Hello Kitty check out what we found this year Bank of America which just bought out Marl Lynch has been offering the cute pink Japanese Kitty on its ATM and credit cards more than 140,000 boa customers already have it like these guys bye by the way thanks Facebook for more on these stories check out cbsnews.com on your cell phone right now I'm Ray asensio New York going to go get my Hello Kitty card right now meow