Skip to main content
CNN.com /TRANSCRIPTS

CNN TV
EDITIONS





CNN LOU DOBBS MONEYLINE

Dow Jumps 117 to 8,425; Nasdaq Gains 28, Ends at 1,292

Aired September 4, 2002 - 18:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


LOU DOBBS, HOST: Tonight, President Bush began to set forth the case to overthrow Saddam Hussein. President Bush says the Iraqi leader must not be allowed to threaten the world by developing weapons of mass destruction.
Tonight we begin our coverage with Kelly Wallace at the White House.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Lou, the president today said he would seek congressional approval before taking any action against Iraq and he promised an open dialogue with the American people.

KATE SNOW, CNN CONGRESSIONAL CORRESPONDENT: Some key members of Congress say the president made a compelling case for Iraq's -- regime change in Iraq. But other members saying they need to hear more.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: A late-day rally lifted the Dow to a triple-gadget gain, but that recovered just a third of yesterday's sell-off.

GREG CLARKIN, CNN FINANCIAL NEWS CORRESPONDENT: And wireless stocks helped lift the Nasdaq as it recovers half of yesterday's loss.

DOBBS: Also tonight: Radical Islamists murdered almost 3,000 innocent Americans in the attacks of September 11, and the most powerful education group in this country suggests children not be told who was responsible.

Tonight, John Leo, a columnist with "U.S. News And World Report" is my guest.

ANNOUNCER: This is LOU DOBBS MONEYLINE for Wednesday, September 4.

Here now: Lou Dobbs.

DOBBS: Good evening. Today President Bush began to make the case to overthrow the government of Saddam Hussein. President Bush met with congressional leaders at the White House. The president also sent a letter to both houses of Congress, stating his reasons to remove Saddam Hussein from power.

Next week the president will make his case at the United Nation's General Assembly. White House correspondent Kelly Wallace has the story.

WALLACE: President Bush was facing a growing chorus of criticism from U.S. lawmakers and U.S. allies, so today he began a full-scale offensive.

First, he invited Republican and Democratic congressional leaders to the White House. He told them he would be seeking a congressional resolution backing the possible use of military force against Iraq.

The president wants a vote in both houses before lawmakers leave for the November elections. Now, aides stressed the president has not decided that military action is necessary.

But the president made clear today, doing nothing is not an option when it comes to Saddam Hussein.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein is a serious threat. He is a significant problem. And it is something that this country must deal with.

(END VIDEO CLIP)

WALLACE: As part of the administration's PR offensive, administration officials will be testifying before congressional committees over the next several weeks. The president also consulting with U.S. allies. In fact, he meets on Saturday with British Prime Minister Tony Blair.

And also, the president expected to deliver what U.S. officials are calling a major address before the United Nations on September 12.

In that speech, the president says he'll tell the international community that Saddam Hussein is, quote, "stiffing the world, and not abiding by U.N. agreements not to develop weapon weapons of mass destruction."

Now, on top of all this, aides say that the president has not ruled out diplomatic options such as seeking a U.N. inspections regime backed by military force.

But, Lou, the sense of some of the president's top advisers is that down the road Saddam Hussein either will not let inspectors back in, or won't let them see what he has got -- Lou.

DOBBS: Kelly Wallace at the White House, thank you.

After today's meeting some congressional leaders, such as Senator John McCain, said they now believe the president made the case for a regime change in Iraq. Other lawmakers said they still need more.

Kate Snow is on Capitol Hill and has the story -- Kate.

SNOW: Lou, as one member said to me after the meeting, the more people you ask who were in that meeting, the more interpretations you are going to get. All seem to agree this was not a nitty-gritty detailed kind of session. The president was not laying out the details of his case, but rather broad brush strokes, beginning what is going to be weeks-long consultations with this Congress. House minority -- majority, rather, Whip Tom DeLay saying that, afterwards, that the president does not necessarily need to come to Congress for authorization in Mr. DeLay's view.

He does not need a resolution in order to take action against Iraq. But he said he thinks he will get overwhelming support once a resolution lands here on Capitol Hill. DeLay says the administration has a strong case, and no other option but to force Iraqi change in the Iraqi regime.

(BEGIN VIDEO CLIP)

REP. TOM DELAY (R-TX), MAJORITY WHIP: I think military action is inevitable, faced with Saddam Hussein. Eleven years of history of his thumbing his nose at the world and at U.N. resolutions and agreements that he has made, plus his participation in terrorism around the world. Going back and begging him to be nice again just is not going to work.

(END VIDEO CLIP)

SNOW: The Senate Majority Leader Tom Daschle said he was encouraged that the White House and the president are now consulting with Congress and the beginning of this process, sending up administration officials for further debate and hearings here on Capitol Hill.

But he did say that he feels they need to do more in terms of providing evidence of why Iraq is such a threat.

(BEGIN VIDEO CLIP)

SEN. TOM DASCHLE (D-SD), MAJORITY LEADER: There has to be a better case made. The president began making that case today. He acknowledged that this is just the beginning of a dialogue. But certainly we have to better understand the threat. We have to better understand the change in circumstances. We have to better understand what this will entail, and what the ramifications are for the United States and, frankly, for the international community.

(END VIDEO CLIP)

SNOW: And there was some frustration this afternoon. Secretary of Defense Donald Rumsfeld came here for more than two hours to brief senators behind closed doors in a private session. It was expected that perhaps he would offer some of that sort of proof that members of Congress are looking for in terms of why the administration thinks Saddam Hussein has weapons of mass destruction.

Mr. Rumsfeld afterwards said, though, this was a meeting that was planned for many weeks, and he simply was not here to do that sort of offering of proof. One White House official, Lou, says this was not the setting for that, there were too many people in the room, and that will happen, though, as we move forward with congressional hearings.

This White House official saying, expect to see more officials come up here, both in classified and nonclassified briefings, to offer more of the administration's case -- Lou.

DOBBS: Kate, thank you very much. Kate Snow from Capitol Hill.

Opinion polls now suggest a majority of Americans supports U.S. military action to overthrow the government of Saddam Hussein. But those surveys also show support declining dramatically. Should the United States act alone, without allies.

We asked CNN political analyst Bill Schneider to join us and to give us more thought-provoking analysis on these polls.

Bill, what do they suggest to you?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: They suggest war anxiety has been growing, and it has been growing for the past month, as there is been more debate and discussion about the United States going into Iraq. As you say, a majority still supports sending ground troops to overthrow Saddam Hussein, but opposition is now creeping up over 40 percent.

When Congress went on recess in August, they went back to their constituents and contributors, of course, and got an earful, which is why they came back to Washington this week. And they were saying publicly, just as Tom Daschle said on that bit of tape we heard, we want the president to make the case.

The American people have not heard him make the case. What is interesting is the president today at the White House said, we start today, as if the debate for the past month has been irrelevant. He is saying today, we are going to start making this case, and hopes he will turn those polls around.

DOBBS: Those polls, one, of course, does not know how much influence they have with the White House, but it is interesting to note the Secretary of State Colin Powell basically said that there is disagreement amongst members of the administration, confirming that publicly, but saying all along the president simply has not made a decision. This suggests the president has now made a decision.

What do you expect to see from the difference of view represented in the administration?

SCHNEIDER: I think the president will have to come up with a policy. There is a deadline in fact: next Thursday. He said several times today, next Thursday, the day after September 11, he is going to give a very important speech to the United Nations General Assembly. Now, that is important because the United Nations has a crucial role in legitimizing whatever action the United States takes.

This president, unlike his father, has not said he would ask for a United Nations resolution. Of course, when Saddam Hussein invaded Kuwait in 1990, his father went directly to the U.N. There was a clear provocation. And the U.N. acted long before Congress said anything.

This president has not said he is going to ask for U.N. support or permission. But that is crucial, because the polls also show that Americans and Europeans alike, both say that they would support action against Iraq if, and only if, the U.N. authorizes it.

So when the president speaks to the U.N. next week, I think he is going to lay his cards on the table.

DOBBS: In 1990, as you will recall -- in 1991, in the Persian Gulf war, in point of fact, the president, then-President Bush secured United Nations' approval for action, if you will, with far greater ease than he secured approval for the U.S. Congress.

Do you expect the pattern to be the same this time should that be the result?

SCHNEIDER: Yes, in this case I think he will have more trouble with the United Nations because there are several countries that are very skeptical. About the only country in the world that seems even remotely supportive or enthusiastic is Britain. And Tony Blair is coming this weekend, and even he is having trouble in his own party, and within his own Cabinet. Other countries being very skeptical.

So the United Nations is going to be tough. Congress should be easier.

Look, we are going into an election year. Democrats know what happened to them after 1991, when there was a very close race to authorize -- vote, rather, to authorize the Persian Gulf War, and a lot of Democrats were embarrassed by their opposition. Now I think Congress, going before the voters in November, are going to be very reluctant to oppose President Bush on a vote like this.

DOBBS: Bill Schneider, thank you.

SCHNEIDER: Sure.

DOBBS: Police in Washington today arrested a man who possessed 10 rifles and six handguns. They were in his car. The man was stopped after a report that a man with explosives was heading to the White House from Pennsylvania. The driver of the car is being held on firearms charges. A woman in the car has been detained as well. One report suggests the man had made comments about wanting to get things straightened out in Washington.

There is a new twist in the West Nile virus outbreak tonight. Federal health officials now say at least three of the four people who received transplants from a car crash victim in Georgia were infected with West Nile virus. One of those recipients later died. Now, officials at the Centers for Disease Control are trying to determine how the victim was infected. Efforts are underway to trace 60 people who donated blood that was used in transfusions as doctors try to save the life of the crash victim.

These are the first known cases in which humans contracted the disease through something other than a mosquito bite. Thirty-two people have now died of West Nile virus this year. Almost 700 people have been infected.

Turning to Wall Street, a late-day rally lifted the Dow, a triple-digit gain. Stocks moved higher in the final hour of trading, following yesterday's brutal sell-off. The Dow Jones Industrials today up 117 points, recovering about a third of yesterday's losses. The Nasdaq gained 28, and the S&P 500 up 15 points. We will have complete coverage of the market later here.

Secretary of State Colin Powell faced jeers and boos from protesters in South Africa today at the Earth Summit. It happened as he talked to the United Nations conference on sustainable development. Powell and the Japanese foreign minister announced a series of initiatives to encourage private investment and to help development programs. The secretary of state was interrupted by protests against the Bush administration's policies on trade and environment and poverty. At least 12 people were removed from the room by security guards.

Israel expelled the relatives of two suspected Palestinian terrorists today. The brother and sister of a suspected terrorist were blindfolded and then driven to a settlement in Gaza. Yesterday, Israel's supreme court approved the expulsion of the attacker's relatives, providing they pose a threat to Israel's security. Today they were expelled.

President Bush today stepped up the political and diplomatic campaign for tough action against Iraq. There are also more signs the United States is quietly building up its military forces in the gulf. Shipping sources say the U.S. Navy has booked another large ship to transport tanks and heavy armor the region. The Pentagon is, however, downplaying those reports. But the "Wall Street Journal" says the United States Army has already moved enough equipment from Qatar and Europe to equip a 25,000-soldier force in Kuwait.

About 8,000 troops are currently in Kuwait, near the boarder with Iraq. Additional soldiers could be flown in from the United States and Europe at short notice.

Joining me now, our regular commentator on military affairs, General David Grange.

General, first of all, how much credence do you give to these reports? The Pentagon initially pushing them away, but now not seemingly denying them.

BRIG. GEN. DAVID GRANGE (RET.), U.S. ARMY: Well, two ways to look at it, Lou.

Exercises are conducted periodically throughout the Middle East; Jordan, Kuwait, other Middle East countries. It is a matter of engagement, a matter of preparedness in that type of environment. But there is also pre-positioned stuff always moved around the world and potential conflict areas. So it will speed up a war, if that is the decision made. So I would imagine there is a lot there. DOBBS: You have long experienced -- give us your best assessment: Based on what you are seeing now, does this look to you to be the onset of significant preparations for a possible military action against Iraq?

GRANGE: There is a good chance. The military always has to be prepared to move in. And I would say that these are early preparations for war in Iraq.

DOBBS: In your judgment, which units would you expect to be forward-deployed in preparation for such an action?

GRANGE: For maximum flexibility, the military doctrine right now calls for heavy, light and special operations mixed for the different type of objectives they would take down, in, let us say, a country like Iraq.

So you talk about heavy armored units, you are talking about special operation forces to work with indigenous personnel. You are talking about light forces to work in urban areas. I would say there is a mix.

DOBBS: For example, units such as the 24th Mechanized Infantry, the First Infantry Division, the Big Red One. Those divisions, would you expect, to be brought up initially?

GRANGE: Lou, you are dating yourself. The 24th division. So you -- you experienced in the first war, now called the Third infantry division. But yes --

DOBBS: Thank you for updating me. That is why you are here, General.

GRANGE: Right. There is only -- you only speak from our experiences. But there are only 10 division in the Army right now. It is not a big army. There are three Marine divisions.

So I would say you are going to have units like the Third Infantry Division (UNINTELLIGIBLE). You will have the First Infantry Division, the First armored. You are going to have some units that have punch and muscle to disarm some bad adversaries.

DOBBS: General, we appreciate it very much and, as always, I appreciate you educating me and keeping me up to date. Sometimes that is a full-time task. General David Grange.

GRANGE: It is all teamwork.

DOBBS: Thank you.

GRANGE: Thank you.

DOBBS: Coming up next here, America's most powerful education group says teacher should avoid blaming any group for the September 11 terrorist attacks. "U.S. News And World Report's" John Leo will be here to tell us why the NEA is deserving of some severe criticism. And two wildfires near Los Angeles burn down dozens of homes, threaten power supplies. We will have the latest for you on that spreading fire And a great deal more.

We will be back in just about a minute.

(COMMERCIAL BREAK)

DOBBS: Juries are setting punitive damage awards that are wildly out of proportion to actual damages. Yesterday, we reported to you about a car crash involving less than $1,000 in damages, but which led to $145 million damages award against State Farm Insurance. Tonight, we can tell you about an even more astonishing case. Tim O'Brien has the details -- Tim.

TIM O'BRIEN, CNN CORRESPONDENT: Lou, this case is extraordinary for at least two reasons. One, it involves the largest punitive damage award ever affirmed by an American court in a personal injury case, $290 million. And two, it was affirmed on appeal, even though the trial court found that the jury deliberations were "infested with passion and prejudice."

The case involved the controversial 1978 Ford Bronco. Three people were killed in a rollover accident in California in 1993. The Bronco's roof, made mostly of fiberglass, collapsed. In a sworn statement, however, Sandra Bishop, the jury forewoman, says there was gross misconduct in the jury room. Bishop said one juror described incorrectly how Leo Iacocca, Ford's former president, had claimed in a TV show it was cheaper for Ford to settle cases than to fix safety problems. The statement, however, had been made by a plaintiff's lawyer, not by Iacocca.

Another juror told the jury about her recurring nightmares in which her children died in a Bronco rollover while Ford lawyers, holding guns, stood by and chanted, "Where's the proof? Where's the proof?" According to four jurors, she considered the dream an omen and urged other jurors not to follow a law because "saving babies was more important."

Now the attorney representing Ford Motors says this case shows that while jurors must decide who's right in a civil case, it should be left to others, perhaps judges or regulatory agencies, to assess punitive damages.

(BEGIN VIDEO CLIP)

THEODORE BOUTROUS, ATTORNEY, FORD MOTOR: It would be a step in the right direction if judges, who generally see more cases, understand the range of punishments that might be appropriate, were the ones to impose the punishment based on the facts that they see in the particular case, particularly if the legislatures establish some range of punishments in advance.

(END VIDEO CLIP)

O'BRIEN: Boutrous is one of the country's leading opponents of punitive damages. He's going to ask the California Supreme Court to review this case.

DOBBS: What do you judge the odds to be?

O'BRIEN: I think pretty good. It is quite an extraordinary case. And if nothing else, it's going to fuel the debate over punitive damages. There are -- you know, a lot of good comes out of it, but in many cases, the wheels seem to be coming off the wagon. Questions arise, why should the plaintiffs get all the money? Perhaps it should go into a fund. Some states have...

DOBBS: Or plaintiffs' attorneys, more often than not.

O'BRIEN: It can be a windfall for plaintiffs' lawyers.

DOBBS: Tim, thank you very much. Tim O'Brien, good to have you here.

O'BRIEN: Thank you.

DOBBS: Well, the September 11 attacks were carried out by Osama bin Laden's al Qaeda terrorist network. You might think that's pretty obvious, but wait just a minute. The National Education Association, this country's most powerful education group, has a somewhat different perspective. And "U.S. News & World Report" columnist John Leo says the NEA wants teachers not to suggest that any group is responsible for those attacks. In fact, the NEA says its material has been taken out of context. It says, using this national tragedy to attempt to score political points is what it terms a new low.

I am delighted to say that "U.S. News & World Report" columnist John Leo is here with us. He is one of the handful of columnists in this country I think is a mandatory read with each column.

JOHN LEO, "U.S. NEWS & WORLD REPORT": Thank you.

DOBBS: Good to have you here.

LEO: Thanks for having me.

DOBBS: A stunning column that the NEA does not want to have teachers in their lesson plans for September 11 say who is responsible.

LEO: It's a very peculiar decision. Tens of thousands of words and they never got around to saying who committed this act. It's very much the language games that some people played after the attack, talking about the tragedy and the events, rather than the terrorist attack. It's a kind of diffidence in attempt to not judge, to not hurt anyone's feelings. So they shrink back from saying the obvious.

DOBBS: The NEA says that it -- points out that the reference is not exactly to its side, it's simply referencing helpful material to the lesson plans. What's your reaction?

LEO: Well, that's technically right. It isn't directly on their site, but it's under their tips for teachers and principals page. So it's something that they are presenting under their auspices. They're playing a little game now.

DOBBS: Well, John, I was so inspired by your column, that I went through the NEA lesson plans for September 11. And I have to tell you, I was dismayed. First, the material is so turgid that I think one should have a PH.D. or an extraordinary attention span, certainly...

LEO: It's all over the place. It's sprawling and incoherent. I pointed out a couple of Marxist rainy day camp games that they played, where you pretend that you are more powerful and in a different class. And then, everyone gets together and discusses whether it's better to be rich or poor. This is not what school should be doing about September 11.

DOBBS: What should they be doing in your judgment?

LEO: I think you have to talk about how our freedom's developed, the history of America, why we are such a free people, why we are successful people, and why people hate us so much. You have to be -- you have to underline that there are moral absolutes, that we are not to blame. That's always hanging in the background that somehow America invited this somehow, as if you got punched by a stranger on the street. It's somehow it's your fault for making more money or being more successful. And I think that's the aura of the NEA's philosophy.

DOBBS: And your straightforward and your criticism of the NEA for not wanting to name who is responsible. And that is, as you know, in this broadcast, we do not refer to the war on terror. We refer to the war against radical Islamists...

LEO: Right.

DOBBS: ...because that is the group of people against whom the United States is fighting around the world and other civilized nations. What do you think of that viewpoint?

LEO: Well, I think NEA revealed that it was willing to name the Islamists the next day on TV as part of its damage control, but it's the philosophy you have to worry about. Not all teachers in a schools buy this, but the NEA and the schools of education are very, very reluctant to talk about what's good about America. They don't believe in authority teaching. They think that education is something that bubbles up out of student's activities. So they're reluctant to pose any view and they're reluctant to root for the United States.

So this -- all these qualms come together in this site. And it makes it very inferior lesson plan for September 11. These kids will never know how America developed and what we're fighting for.

DOBBS: And of course, one of the best things about this country is public education. One of the best things about this country...

LEO: Yes. DOBBS: ...are the teachers, who work so hard to educate our young people. Why is there this reluctance, seemingly, on the part of the NEA to say -- not -- here is the Constitution, here is the bill of rights, but to impart real information, real knowledge about, as you suggest, our values here?

LEO: Well, I think there's a culture within the education world. Not all schools and all teachers are part of it, but the schools of education have a very firm philosophy that feelings are more important than achievement, that equality must be stressed over excellence. And all of these attitudes sort of leak out when there's a crisis. And one of them that leaked out here is that feelings and mandatory niceness are more important than telling the truth.

DOBBS: John Leo, great to have you here. Thank you.

LEO: Thank you.

DOBBS: Coming up next, two former WorldCom officials have entered pleas to charges they helped hide billions of dollars of expenses at the telecom firm. We'll have a report for you.

Stock prices rose today. And former Treasury Secretary Nicholas Brady will be here to tell us his views about the recent sell-off and how it compares with the '87 stock market, what you and I should be thinking about in this troubled economy. All of that, a great deal more, still ahead. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Well, two former WorldCom executives today pleaded not guilty in federal court in New York City. Former Chief Financial Officer Scott Sullivan and his former colleague, Buford Yates, pleaded not guilty to charges they helped inflate WorldCom's earnings by $4 billion. Both men named in the seven-count indictment last week. Prosecutors say to expect additional charges in this case.

Scott Sullivan, Buford Yates have already been added to our Enron corporate America criminal scoreboard. The former WorldCom executives are two of the now 19 executives who have been hit with criminal charges. The number at Enron remains at one tonight, the one change, number of days since Enron's collapse now, 276.

A late session rally lifted the Dow Jones Industrials higher for the first time in six sessions. $175 billion of market value created today. Trading action today again, relatively light volume. The Dow up 117 points. The Nasdaq up 28 points. The S&P 500 rose 15 points.

Christine Romans at the Big Board. Greg Clarkin at the Nasdaq.

Christine?

ROMANS: Lou, an afternoon rally erased a third of yesterday's Dow loss, thanks to financial and computer chip stocks. Strong auto sales and home builder earnings helping as well. Citigroup recovered slightly today. Texas Instruments was active, up 4 percent. But Cigna fell 3 percent on news it will take a larger than expected charge to exit a business line. Philip Morris was one of the five Dow stocks to close lower. Philip Morris says its premium cigarettes are facing stiff competition. And Hershey tumbled, a judge blocking the sale of Hershey. The trust that controls Hershey, though, says it will appeal that injunction.

Big Board volume, 1.3 billion shares. Now to the Nasdaq and Greg.

CLARKIN: And Christine, the number one topic of talk continues to be Intel. Now the company will update Wall Street as to its business conditions tomorrow after the close. Today, it found itself again the subject of a number of negative research notes. Now with the broader rally, was actually able to gain about 1.5 percent after yesterday's sharp sell-off.

Now other chip-related stocks were not as lucky. Chip equipment company, Applied Materials, was down 29 cents on the day. But software stocks were among the biggest winners. Take a look at shares of Oracle and Microsoft, both gaining nicely. Northwest Airlines gained 3 percent on word of job cuts and a reduced flight schedule. Once again, the Nasdaq composite gains, but still shy of the 1300 mark.

Lou, back to you.

DOBBS: Greg, thank you.

Nicholas Brady, head of the commission that examined the stock market crash of '87, in only four trading days the Dow Jones Industrials tumbled more than 30 percent. Brady concluded that the result of a structural system problem. Brady says the current downturn, very different from that disaster 15 years ago. This one, he says, caused by vastly overblown valuations. Former Treasury Secretary Nicholas Brady joins me now. Good to have you here.

NICHOLAS BRADY, FMR. TREASURY SECRETARY: Evening, Lou.

DOBBS: This has been a disaster from the fall off of March of 2001. Give us your judgment as to the difference between now and the crash of '87?

BRADY: Well, pretty much what you said, Lou. The crash of '87 was mechanical, structural. So you could come up with mechanical and structural things to correct the crash. We did that, put in circuit breakers, so the volume could flow through the system. This is completely different now, as you said. The present crash is due to vastly overblown valuations and created excesses which are going to take time to work off.

DOBBS: Your experience, your judgment, over the years, what does it tell you about where we're headed from here? Investors shell- shocked through this as you point out. The circuit breakers on all of the structural reforms that followed the crash of '87, seemingly just made this a more slow, slower and more painful process, and a deeper chasm from which to climb out of. When does -- when do we get out of it? How do we get out of it?

BRADY: Well, this present crisis, Lou, is -- you know, there are excesses created in the '90s in debt, capacity and consumption. We have to work through those excesses. There's no textbook about backing out of a bubble. That's the problem. In '87, we had mechanical things that could be done. It was over with pretty quickly. This is going to take time. The excesses were big. They were huge. And they're going to take time until we work through them.

DOBBS: What's your best counsel to investors here?

BRADY: Well, I think you have to be careful at this particular point in time. You always make money betting against the end of the world. Anybody who bet against the United States in the last 50 years is a loser. So in the long run, you have to be in this market. But right now, we have excesses which simply have to be worked through. And until we get through them, it's going to take some time. Well, I'd be a little careful.

DOBBS: I'm not going to let you out of here, out of this studio without asking you how soon before you see a market that improves to the point you could call it a bull market?

BRADY: Well, Lou, I can't -- you know, I think the ratios that people rely on, and it's easy, I think, now to say we were in a bubble, price earnings ratios were too high, et cetera, et cetera. They've come down, but I think they've got a little further to go. I'm a little bearish still. I hate to say it, but you can't be too long out of the U.S. market. It's the place to be in the long run.

DOBBS: Nick Brady, as always, good to have you here.

BRADY: Thanks, Lou.

DOBBS: Thank you.

Coming up next, in what has been a very busy wildfire season throughout the country and in California, two new fires there are burning out of control tonight. We'll have the latest for you on that. A great deal more, still ahead. Stay with us.

(COMMERCIAL BREAK)

DOBBS: California firefighters are fighting a fire that is out of control tonight. Actually, two of them. Two forest fires are burning north of Los Angeles in the Angeles National Forest. One of those fires has now burned more than 4,000 acres. It has also destroyed at least five homes, several other buildings. More than 150 people that had to be evacuated.

Volunteers have been called in to rescue dozens of animals and livestock. Less than 40 miles away, a nearly 16,000 acre fire in the San Gabriel Mountains has destroyed more than 70 buildings, most of them campground structures. That fire has also shut down a main power line. The state's power grid managers are closely watching another tonight. Both fires remain out of control. A suspicious fire has destroyed a historic landmark. The covered bridge made famous in the movie "The Bridges of Madison County" gutted by a fire during the night. Iowa investigators say the fire may have been deliberately set. The cedar bridge dates back to 1883. It was the only one of the country's remaining six covered bridges still open to traffic.

Storm warnings are in effect tonight along 200 miles of the Florida and Georgia coast. Tropical storm Edouard is sitting just off that coast, packing heavy rain and strong winds. Residents all along the coast are preparing for Edoard's arrival. It's expected tomorrow morning. Rain has begun to fall now in parts of Florida. Winds there have strengthened. Weather officials no longer expect Edoard to weaken before it comes ashore.

In Spain, they throw tomatoes at one another at times. In El Salvador, they throw fire. Take a look at this video. These men are throwing live fireballs at one another. It is an annual event, believe it or not. This town's residents, split into two groups. Then they play dodgeball with fire. The firefight is part of two local traditions, one of which is to honor a local patron saint, Geronimo, who is said to have been provoked by satanic fire. And believe it or not, in all the years they've been doing this, no one has been seriously injured in the firefight. Believe it or not.

Well, still ahead here, we'll hear your thoughts on sin taxes, sinful jury awards, and the sinful behavior of some corporate executives. All of that and more when we continue. Stay with us.

(COMMERCIAL BREAK)

(AUDIO/VIDEO GAP)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





 
 
 
 


 Search   

Back to the top