Transcripts For KPIX CBS Evening News With Scott Pelley 2013

KPIX CBS Evening News With Scott Pelley October 16, 2013

Captioning sponsored by cbs this is the cbs evening news with scott pelley. This is a special western edition. A warning flare streaked across washington this evening. The Credit Rating agency fitch says that it is reviewing americas stellar a. A. A. Credit rating and may downgrade it. This because of the budget siege in washington which is only deepening tonight. It was just 24 hours ago, Senate Leaders boasted tremendous progress on a deal to reopen the government and allow uncle sam to borrow money to pay his bills. But today in a surprise, House Republicans rushed out a new proposal that included rollbacks in obamacare which is what led to the Government Shutdown in the first place. Then late today the republicans called off even that vote. So here is where we stand the country is in the 15th day of the shutdown and, more important the day after tomorrow the government loses the ability to borrow money and it could start defaulting on its debts sometime after that. We have a team of correspondents covering this fastbreaking story. First well go to nancy cordes on capitol hill. Reporter House Republicans tried to pull a hat trick today but it turned out to be a little trickier than they thought and the plan they introduced in the morning had to be scraped in the evening because they didnt have enough votes from within their own party. What they were trying to do was to upend a compromise that was being worked out in the senate and replace it with something a little more conservative. But it didnt go far enough for their Tea Party Members who wanted bigger changes to the president S Health Care law in exchange for reopening the government than their leaders were willing to give at this stage of the game. So all day long leaders tried to tinker with the plan a little bit to get enough votes from their right flank, but at the end of the day it was not looking good. And then heritage action, a very conservative group, sent out this note to members saying the proposed plan will do absolutely nothing to help americans who are negatively impacted by obamacare. And it looked like they just werent going to have the votes so they ended up throwing in the towel. The plan is now dead and shortly thereafter we got the signal from leaders in the senate that their negotiations are now back on and that they think they can finalize the plan in very short order to reopen the government and raise the debt ceiling. But the question is how quickly that can happen because of the rules of the Senate Passing anything, even if it has big bipartisan support, can take days, scott. Pelley nancy, thank you very much. The house has passed several bills to fund the government, but each of them had amendments to roll back the president S Health Care law which the senate controlled by democrats, wouldnt stand for. The obamacare rollback is the cause of a few dozen conservative members of the house known as the Tea Party Republicans and chip reid spoke to one of them today. Reporter well, scott, if you look at the national polls, most americans want the Government Shutdown to end even if that means accepting the fact that obamacare is the law of the land. But in the districts of Tea Party Republicans, there is nothing more important than ending obamacare. The president has his principles. Hes fully committed to obamacare and a government takeover of our health care system. Im fully committed to making certain that doesnt happen. Reporter republican Tim Huelskamp was elected to the house from a very conservative district in kansas in the Tea Party Wave of 2010. What percentage of your constituents agree that it is worth keeping the Government Shutdown in order to fight obamacare . Our best guess is 21. Reporter monday evening at this capitol hill restaurant, huelskamp and a dozen or mother other Tea Party Republicans dined with republican freshman senator ted cruz whos leading the effort to repeal obamacare. I intend to speak in support of defunding obamacare until i am no longer able to stand. Reporter democrats and even some republicans have accused the house Tea Party Members of taking orders from cruz, but huelskamp says he takes orders only from his own constituents. What is most interesting is hearing from folks who are furloughed right now saying congressman, keep fighting. Reporter so even your constituents who have been furloughed want you to keep the Government Shutdown in order to fight obamacare. They understand theres a higher principle here. Reporter its not unusual for members of the two houses to confer and even have dinner and exchange information, but it is highly unusual for a freshman senator like cruz of texas to be driving the debate over in the house and, scott, he may still try to derail a possible deal here in the senate. Pelley chip reid. Thank you, chip. The president tonight says hes optimistic though it may be hard to see why. Major garrett is at the white house for us tonight. Major . Reporter scott, all day long the white house opposed whatever House Republicans efforts were to put a bill on the floor and theyre hopeful the Senate Compromise deal nancy referred to, might verge. Thats why the president in an interview with one of our affiliates in des moines, iowa, said on that hes still optimistic. Theres a faction there that believes any compromise of any sort is unacceptable, that theyve got to get 100 of what they want or at least a lot of what they want. And they havent been willing to engage with democrats over there. So were stuck in the house but i remain optimistic that this will eventually get resolved. Pelley scott, as for fitch Credit Rating agencys designation that its reviewing the United States Credit Rating the Treasury Department noted it didnt downgrade the Credit Rating, just put it on a negative watch. Treasury said fitch didnt not find fault with the underlying strength of the u. S. Economy but it did find fault with congressional gridlock. Pelley Major Garrett at the white house for us tonight. Major, thank you very much. All of this is costing real money. We asked the Research Firm moodys analytics today and they told us that the Government Shutdown and the risk of default have cost the u. S. Economy 22 billion just these last two weeks because of the threat that uncle sam wont be able to pay its bills, investors today demanded a higher Interest Rate on u. S. Treasury bonds. That higher rate costs the government 22 million just today. And then theres the cost to investors as prospects for a budget deal rise and fall, so do stock prices. Today the dow fell 133 points and closed at 15,168. Corporate c. E. O. S have been telling us on this broadcast all week that a u. S. Government default would be armageddon for the economy. Senior Business Correspondent Anthony Mason talked to an expert on the economy today, former Federal Reserve chairman Alan Greenspan. Anthony . Reporter scott, Alan Greenspan says jeopardizing trust in u. S. Credit and effectively the u. S. Dollar is very dangerous. At his home in washington today, the economist who ran the Federal Reserve for 18 years told me hitting the debt ceiling will force the president and the treasury to decide who to pay and who to delay. You may very well choose to pay interest to the debt and to whom does it go . China. And who dont we pay . Social security. That is a political system which will not hold together. I think they have to resolve it but the shock to the system, i think is not necessarily permanent but really debilitating. Reporter so were playing with fire . Indeed, we are. And then theres the psychological impact. Reporter you dont want to test it . Id just assume not. Reporter nobody really know, do they . I dont think so because i know everyone is discussing it, and everyone is guessing and i know they dont know. Reporter Alan Greenspan believes the shutdown is not having a deep impact on the National Economy yet but he added were a democratic society, shutting down the government should not be on the agenda. The system, he said, is broken. Pelley anthony, thank you. You can see more of anthonys interview with Alan Greenspan this coming weekend on sunday morning. Business leaders have found themselves allied with some traditional foes on finance democrats. Together theyre pressuring republicans to end the budget and debt impasse. Heres Sharyl Attkisson. Reporter heavy hitters on wall street are looking to persuade congress with lobbyists like scott talbot who represents citibank, wells fargo, and visa. Everyday that were up there talking to somebody it is a constant, continuous drum beat to deliver the message. Reporter talbot was at a white house meeting of big business lobbyists friday. Obama Administration Officials urged them to press lawmakers far negotiated solution to the fiscal standoff. The chamber of commerce in the same white house meeting joined the united way and the a. F. L. C. I. O. And sent this letter to every member of congress. It urges they end the shutdown immediately because no one benefits and everyone will be harmed if the government defaults. The challenge comes in talking to members who dont necessarily agree with all or part of what were trying to relay and dont necessarily understand or agree with our position about the need to get it done. Reporter are those mostly republicans . Theyre on both sides. Both sides of the aisle. Reporter members of both Political Parties are inclined to Pay Attention because these groups are Major Campaign contributors. The a. F. L. C. I. O. Spearheaded 22 million in Campaign Contributions in the last election, most of it for democrats. The bankers, insurance, and real estate sector gave a record 665 million with a heavy tilt toward the g. O. P. Defense contractors lockheed martin, boeing and General Dynamics are also busy on the hill trying to end the shutdown. The Defense Industry gave 27 million to candidates in the last election, scott. Pelley Sharyl Attkisson in washington tonight. Thank you, sharyl. The libyan terror suspect who was captured by the u. S. Armys delta force earlier this month pleaded not guilty today in new york. Abu anas allibi appeared in federal court with a thick gray beard. The judge ordered him held without bail. Allibi is accused of planning and conducting surveillance for the 1998 bombings of two u. S. Embassies in africa which killed more than 200 people. The Supreme Court takes up a key affirmative action case. After a classmates suicide, two girls face felony charges for cyber bullying. And was it a fish or a sea serpent off the coast of california . When the cbs evening news continues. My mantra . Always go the extra mile. To treat my low testosterone, i did my research. My doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Medicare open enrollment. Of year again. Time to compare plans and costs. You dont have to make changes. But it never hurts to see if you can find better coverage, save money, or both. And check out the preventive benefits you get after the health care law. Open enrollment ends december 7th. So nows the time. Visit medicare. Gov or call 1800medicare pelley the Supreme Court heard oral arguments today in a case that could decide the future of affirmative action. At issue whether the state of michigan can tell public colleges that they cannot consider race when deciding whom to admit. Heres jan crawford. Reporter Justice Sonia sotomayor fired off the first question within seconds, mounting a defense of affirmative action. When michigan solicitor general john bursch argued there were other ways for colleges to achieve diversity, sotomayor interrupted. Bursch argued there were other ways for colleges to achieve , so d. When bursch offered specifics he said have worked at other institutions such as eliminating policies that give preferential treatment to children of alumni she had a response. Sotomayor is the courts first sotomayor is the courts first hispanic justice. She credits affirmative action for helping her get from a poor neighborhood in the bronx to the nations highest court. Today the outspoken liberal dominated the arguments over michigans proposal, too. The constitutional amendment voters passed in 2006 to outlaw the use of racial preferences in college admissions. Five other states have similar bans. The courts conservative justices appeared to support those laws, suggesting voters simply were taking race off the table. Chief Justice John Roberts said that was the whole point of Something Like the equal protection clause. But a federal Appeals Court struck down the michigan amendment last year ruling it the weighted the political process against minorities. University of michigan professor Rosie Ceballo is challenging the amendment. Prop 2 has taken away the policy that the university has for hearing everybodys voice. So essentially the will of the majority has silenced the minority. Reporter but Michigan Attorney general Bill Schuette disagrees. We think its wrong, fundamentally wrong, to treat people differently based on the race or the color of their skin. Reporter now, in court, the liberal justices suggested of course led by Justice Sotomayor suggested those laws send the wrong message to minorities, that they can be shut out of the political process but, scott, the conservative justices indicated it was a question about treating everyone equally and that voters could decide whether the time for racial preferences has passed. Pelley jan crawford at the foot of the Supreme Court tonight. Jan, thank you. How about this for the catch of the week on californias catalina island. Its a sea creature rarely seen by humans, its an oarfish. Its 18 feet long. It was dead apparently of natural causes. It took more than 15 people to haul it ashore. Well be right back. But not energy or even my mood. Thats when i talked with my doctor. He gave me some blood tests. 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Tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. In a clinical study, over 80 of treated men had their t levels restored to normal. Talk to your doctor about all your symptoms. Get the blood tests. Change your number. Turn it up. Androgel 1. 62 . [ crashing ] [ male announcer ] when your favorite food starts a fight, fight back fast with tums. Heartburn relief that neutralizes acid on contact and goes to work in seconds. Tum, tum tum tum tums pelley a sheriff in florida has arrested two girls ages 12 and 14 on felony charges of aggravated stalking in a case of cyber bullying. A 12yearold classmate jumped to her death a month ago

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