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Stocks Nosedive at Opening Bell; New Attacks by Syrian Forces; Filling Seats on 'Super Committee'; Protecting Your Retirement Account; The Many Faces of the Jobless

Aired August 10, 2011 - 11:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: Live from Studio 7, I'm Suzanne Malveaux.

I want to get you up to speed for this Wednesday, August 10th.

This week is turning into a real whiplash ride on Wall Street. Dow Jones stocks fell off a cliff at the open today, tumbling more than 400 points. Right now the blue chips are down at 390 -- well, now 400 points or so. Remember, stocks racked up a 429-point gain yesterday. Well, the day before, they fell more than 600.

Republicans already sniping about a Democratic choice for the congressional super committee. Democrats have named Senators Patty Murray, Max Baucus, and John Kerry to the debt panel. And Republicans are complaining that Murray shouldn't get a seat because she's too political. She's in charge of fund-raising for Democratic Senate candidates.

And 12 lawmakers are supposed to be named to the committee by Tuesday. They're there to pinpoint $1.5 trillion in spending cuts by late November.

Ten thousand extra police officers kept a lid on the violence in London last night, but rioting and looting spread to Birmingham, Manchester, and Liverpool. British Prime Minister David Cameron says that police will have all tools available to stop what he says are the thugs, as he put it.

A CNN iReporter describes the scene in Birmingham.

(BEGIN VIDEO CLIP)

SALAAL HASAN, CNN IREPORTER: While I'm walking in the street, I can hear helicopters above me, all around. I can hear at least 10 of them. It sounds like I'm in Beirut or some -- I don't know, some Middle Eastern conflict.

I don't know. And I have never witnessed this in the U.K. I could have never imagined this. It looks like the Gaza Strip over here right now, grenades going off left, right, and center.

(END VIDEO CLIP)

MALVEAUX: Syria's brutal crackdown is expected to draw a tough new response from the United States this week. Government sources tell CNN that the Obama administration is ready to demand that Syrian President Bashar al-Assad step down. Activists say more than 2,400 people have been killed in the five-month uprising against the Syrian regime.

NATO says it took out the Taliban terrorists who shot down a U.S. helicopter in Afghanistan's Wardak Province last weekend. That crash killed 30 Americans and eight Afghans. Now, NATO says the Taliban leader and the man who fired the rocket-propelled grenade were killed by an air strike.

The United Nations says that relief efforts have not stopped the tide of famine refugees pouring into camps in Kenya. The U.N. now warning it still needs more than $1 billion in donations to feed 12 million people. Supermodel Iman, who was born in Somalia, told CNN's Anderson Cooper that a million children will die in the coming days if the world does not step up.

(BEGIN VIDEO CLIP)

IMAN, AMBASSADOR FOR SAVE THE CHILDREN: This famine will be remembered as a famine that has destroyed generations of children. And we have -- I think we are in a place now that we can actually turn it around. And nobody knows this more than you, Anderson, because you are right there on the ground, is that there is a generation of children that will be wiped out.

(END VIDEO CLIP)

MALVEAUX: Police in Aruba are questioning a man about the disappearance of this American woman. Robin Gardner (ph) of Maryland was last seen August 2nd. Police say the suspect told them he and Gardner (ph) were snorkeling when he signaled her go back to the beach. She never showed up. Gardner (ph) disappeared from the same Arabian town as Natalee Holloway, the Alabama teenager who vanished back in 2005.

Well, the nationwide manhunt for a brother-sister crime team is focusing now on Colorado. Colorado Springs police say tipsters spotted a trio that could be the Dougherty siblings. The fugitives are accused of taking shots at a Florida police officer and robbing a bank in Georgia.

(BEGIN VIDEO CLIP)

SGT. STEVE NOBLITT, COLORADO SPRINGS POLICE: Certainly the most important thing here is that if they spot these folks, call 911. Don't approach them, don't get anywhere near them.

These very dangerous people could be right here in our back yard. So keep your eyes open and make sure that you report anything suspicious. And take a good look at the photos, take a good look at the car that may be driving.

(END VIDEO CLIP)

MALVEAUX: All right. Get ready, hold on tight. A roller- coaster ride on Wall Street is taking another plunge.

Stocks nosedived at the opening bell today, following yesterday's rally. So what's behind the big sell-off?

Alison Kosik, she's at the New York Stock Exchange.

Alison, a lot of us are fearful, confused about what is taking place. It goes up, it goes down. Tell us what's taking place. What's going on here?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You've got a lot weighing on the market today, Suzanne.

As you can see, the Dow down 447 points. For one, those European debt issues are back on the forefront.

You think we've got debt issues, so does the Eurozone. Now the worry is that the European banking sector, that its problems could spill over to U.S. banks. That's one thing that's weighing on the markets.

Then you've got the Fed coming out in its statement yesterday warning us to get ready for more slow growth in the coming months. That, of course, is creating this emotional trade, this fear-driven trade that we're seeing that's not necessarily rational, because usually the market trades on fundamentals. It trades on earnings reports, it trades on economic reports.

We're not seeing that today. You're seeing that negative momentum trade sort of upon each other, creating this vicious cycle.

And then you've got traders saying what you're also seeing is investors pricing in a possible recession, that stocks are getting ready for a possible recession around the corner. And that's why we see such a huge sell-off today -- Suzanne.

MALVEAUX: And Alison, this kind of extreme volatility, is that now the new norm? Is that what we can expect in the days and perhaps weeks to come?

KOSIK: You know what? I think at least in the short term, I think that you can expect to see this kind of volatility.

Volatility is spiking again today. And until we get some good news showing that the U.S. economy is improving, what you're really going to see is this downward trend. And that's exactly what we're kind of caught up in right now -- Suzanne.

MALVEAUX: All right, Alison. Thank you.

When the market starts moving, it's easy for all of us to get lost in the numbers. So we want to hear from you. Your stocks, your credit cards, your mortgage, student loans could all be impacted by the instability on Wall Street. So we'd like to help.

Send me your money questions, your money questions, at Facebook.com/SuzanneCNN, or Twitter, @SuzanneMalveaux. We're going to go to the experts to get some answers.

Here's your chance "Talk Back" on one of the big stories of the day. Rioters in Britain hit the streets for the fourth night of violence, despite a huge police presence on the streets. So, today's question: Could what's happening in Britain actually happen here?

Carol Costello, she's joining us from New York.

Now, I know, Carol, a lot of people are confused by what they're watching in London. They don't understand even why this is taking place.

Can you help put this into perspective?

CAROL COSTELLO, CNN CORRESPONDENT: I'm going to try.

You're right, Suzanne, it is the great mystery of the day. Why are people rioting in London and beyond?

Is it over the shooting of a black man after he was pulled over by police? Is it opportunism? Is it because so many young British people don't have jobs? Or is it entitlement?

Listen to Britain's prime minister.

(BEGIN VIDEO CLIP)

DAVID CAMERON, BRITISH PRIME MINISTER: It is a complete lack of responsibility in parts of our society, people allowed to feel that the world owes them something, that their rights outweigh their responsibilities, and that their actions do not have consequences.

(END VIDEO CLIP)

COSTELLO: British blogger Laurie Penny degrees. She writes on Jezebel.com, "The people running Britain had absolutely no clue of how desperate things have become. They thought that after 30 years of soaring inequality, in the middle of a recession, they could take away the last little things that give people hope, the benefits, the jobs, the support structures."

Wow. If that's true, it sure sounds a lot like us.

The American middle class and the poor also thinks their government has no clue, and they worry it's about to take away Social Security, Medicare, and Medicaid at a time so many depend on them to survive. For many Americans, what's happening in Britain is like looking in a mirror. They're so much like us.

But riots in the street? "Talk Back" question today: Could what's happening in Britain happen here?

Facebook.com/CarolCNN. I'll read your comments later this hour.

MALVEAUX: All right. Thank you, Carol.

Here's a rundown on some of the stories that we are covering first.

First, what good will it do if the U.S. demands Syria president to step down? I'm going to ask a CIA adviser.

And Americans sound off in a new poll about what to cut as this bipartisan debt commission takes shape.

Then, Senator John McCain's lukewarm apology after calling Tea Party members hobbits.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: I am sorry if it was misunderstood. I am not sorry for what I said.

(END VIDEO CLIP)

MALVEAUX: Also, how a tractor-trailer got in this precarious position.

And later, how do you get from L.A. to New York in 12 minutes? The military tests this out-of-this-world supersonic tool.

(COMMERCIAL BREAK)

MALVEAUX: We are watching the markets very closely. The markets all over the place, up and down. We are taking a look at the very latest number.

The Dow Jones now down by 421 points or so, as the market volatility increases. And we'll be keeping a close eye on all of this, the uncertainty around the markets, today.

New reports of heavy gunfire, explosions, tanks targeting protesters in Syria. Activist groups say that security forces are on the attack today in several cities. U.S. government sources telling CNN that Washington might call for Syrian President Bashar al-Assad to step down. The move is expected in the next couple of days.

Our CNN national security contributor Fran Townsend, she joins us via Skype from New York. She is a member of both the CIA and Department of Homeland Security external advisory committees.

And Fran, you know, I've got to tell you, when you see what is taking place in Syria, it is just so upsetting, and it's frightening. And the international community is looking to see what needs to be done to stop the violence. What do you think is going to happen if the U.S. issues this explicit call for President Assad to step down?

FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: Well, look, this has been coming, right? We've heard increasingly strong language that Assad doesn't have the legitimacy to govern, that Assad needs to go, that there needs to be reforms.

The administration and working in the U.N. have put additional sanctions in place. There are rumors there are going to be additional sanctions. But this is -- we need more than statements.

You need to make this really painful for the Syrian government and its leadership to continue to behave in the unacceptable, outrageous way that they've behaved. I think King Abdullah of Saudi Arabia's statement several days ago was helpful. You've begun to see the Arab world move against Assad.

And so increasing sanctions, increasing those sort of pressure moves will be useful. But, I mean, look, we can't sit by as the international community and continue to let China and Russia defeat the U.N. Security Council in increasing international pressure.

MALVEAUX: So, Fran, what's next? What do you do?

I mean, activists are saying that Syria's death toll has now reached 2,417 or so. The United Nations Security Council is going to be meeting today to discuss this crisis that's taking place. And you do have the Arab League, the Gulf Cooperation Council, many other countries stepping in and making some rather bold statements.

But is any of that going to make a difference for Assad?

TOWNSEND: Well, what you now need the Arab countries to do -- and my understanding is the United States is working with the Arab League and the Gulf countries -- you need them to directly pressure Russia and China to stop the stall tactics in the U.N. Security Council. Look, any more discussions are not useful unless they have outcomes in the Security Council as the death toll rises.

And Saudi Arabia and other countries in the Gulf have tremendous leverage on Russia and China through these trade relationships. And so they need now to not just make public statements, the Arab countries, but they need to put pressure on Russia and China to permit this to have stronger, more teeth to the U.N. Security Council.

MALVEAUX: And Fran, why should Assad cooperate? When he sees what happened to Egypt's former president, Hosni, Mubarak hauled into court in a cage, humiliated, charged with killing protesters, shouldn't he just fight it out? Is there any reward for Assad to even step down quietly?

TOWNSEND: Well, right now -- look, unlike Gadhafi, who has been indicted by the International Criminal Court, that hasn't happened to Assad yet. And from his perspective, he may be able to forestall that.

I don't even know that I think that's a good idea for the international community. But until he's indicted, he at least has that that he can try to leverage to avoid.

You know, it's a problem when you see things -- when he sees something like Mubarak, a former U.S. ally, I would not put Assad in that category, treated in this way. Sure, he's going to be worried, but until he's indicted, he has some hope that he can walk himself back from. It may have gone too far.

MALVEAUX: All right. Fran Townsend, thank you very much for your perspective, as always. Thanks, Fran.

Well, three down, nine to go, but one member of the debt super committee is already coming under fire. Details in a live report from Washington.

And a real head-turner on a Texas freeway. Check this out. A truck driver loses his trailer, ends up in a really bizarre position.

(COMMERCIAL BREAK)

MALVEAUX: Time to reveal today's "Choose the News" choices. Text "22360" for the vote, the story you'd like to see.

First, shining shoes may be a dying business, but one New Yorker is trying a unique way to keep the industry alive. See his unique hard sell that is turning heads and feet his way.

Second, it is called the 787 Dreamliner. It's supposed to revolutionize air travel. The plane was recently unveiled, and we'll show you why it's drawing so much attention.

Or third, 13,000 miles, 14 countries, an ultra marathoner attempts to run from the North Pole to the South Pole.

So you can vote by texting "22630." Text "1" for Shoe Shine Worker; "2" two for Dreamliner Unveiled; or "3" for Ultra Marathoner.

The winning story is going to air in the next hour.

Well, it is a tough job. Three of the people that are going to take it on, they have already been chosen.

We are talking about the congressional super committee that has to slash the deficit by $1.5 trillion. It's going to consist of six Democrats and six Republicans. Senate Majority Leader Harry Reid, House Minority Leader Nancy Pelosi, Senate Minority Leader Mitch McConnell and House Speaker John Boehner each appoint three members.

Well, Reid announced his choices yesterday: Senators Pat Murray, Max Baucus, and John Kerry. The others have until next Tuesday to name their picks.

I want to bring in our CNN correspondent Joe Johns.

Joe, first of all, tell us, what do we expect from the three that we do know who we're going to bring to the table? Do you have any news?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, actually, Suzanne -- yes, I do have some news, actually.

Just a moment ago I got a statement from House Speaker John Boehner announcing his selections to this committee. And those selections are as follows: House Republican Conference Chairman Jeb Hensarling; House Ways and Means Committee Chairman Dave Camp; and House Energy and Commerce Committee Chairman Fred Upton. These are the three people House Speaker John Boehner says he is naming to this committee.

So we now have a total of six people who have been named to this committee. They have a deadline of next Tuesday before they actually have to have this process completed. And then these people can get down to the business of figuring out the spending cuts or other measures that they're going to take to try to close some of the spending deficit -- Suzanne.

MALVEAUX: And Joe, we already know there are some complaints from the Republican senator, Patty Murray, who was selected on the Democratic side, for being a partisan. Those new names that you have, the Republicans, do any of them stand out in any way or strike you in any way as might be objectionable to some of the Democrats?

JOHNS: Well, quite frankly, everybody I'm looking at here I think can be described as a loyalist to the Speaker of the House. There are -- for example, Jeb Hensarling certainly is one of those people I believe who you can safely say has the ear of conservatives in the House of Representatives, as do the others.

So I'd like to think about it a little bit more before I give you some broad picture, but I can also tell you, for example, the chairman of the House Ways and Means Committee, Dave Camp, this would be the chief tax writer in the House of Representatives. So this is a guy who will be able to sort of face off with the chairman of the Senate Finance Committee, who is a Democrat, who has also been nominated. So it looks like they're pretty well placed and evenly matched as it goes right now -- Suzanne.

MALVEAUX: A fair fight, I suppose. We expect there might be a little bit of fighting going on, but they're going to try to come up with some sort of bipartisan solution.

Joe, thank you for presenting the news to us. And we're going to get back to you with some more details as that develops.

Thank you, Joe.

Well, there are some lawmakers who are spending their summer vacation getting an earful from their constituents. At a town hall meeting, Arizona Senator John McCain, he was taken to task for a comment that referred to Tea Party members as hobbits. He was also told that Congress needs to work together to deal with this mess.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I want to see you guys working together. (INAUDIBLE) I want to see you working together. That means Democrats, Republicans. That means Tea Party, hobbits, as you may call them, and all these other people.

MCCAIN: Does that mean that you think we should agree to raise taxes?

UNIDENTIFIED FEMALE: Yes, sir.

MCCAIN: So you want --

(CROSSTALK)

UNIDENTIFIED FEMALE: (INAUDIBLE), and I'm just asking you for a simple apology, because many people were offended. So will you apologize to us?

MCCAIN: I said that if anyone misunderstood what was reported by the media, I'm very sorry about that.

UNIDENTIFIED FEMALE: Is that your apology?

MCCAIN: But I am sorry if it was misunderstood.

UNIDENTIFIED FEMALE: Thank you.

MCCAIN: I am not sorry for what I said.

(END VIDEO CLIP)

MALVEAUX: McCain was quoting from a "Wall Street Journal" editorial when he made the hobbit remark during the debt ceiling debate.

(NEWSBREAK)

(COMMERCIAL BREAK)

MALVEAUX: We've got some breaking news. I want to go back to Joe Johns, who is reporting on some more announcements, those appointed to this special super committee, congressional committee to deal with the budget deficit.

Joe, what do you have for us?

JOHNS: Well, Senator McConnell, the Republican Leader in the Senate, now has released his picks for this new super committee. And they are as follows -- I'll just sort of cut right to the news -- Senator Jon Kyl of Arizona; Senator Pat Toomey, the freshman from Pennsylvania; and Senator Rob Portman of Ohio. These are all very interesting picks.

The first one I would sort of highlight for you is Senator Pat Toomey, who ran the Club for Growth, which is a conservative organization. And in all likelihood, would be very much opposed to tax cuts, which is some -- or tax increases, I should say, which is something Democrats would likely be pushing for in one form or another, even though they call it revenue enhancers.

Senator Rob Portman, former guy who ran the Office of Management and Budget. So he knows the numbers very well.

And that leaves just three more members of Congress who need to be named. Those three members would have to be named by the Minority Leader in the House of Representatives, who is Nancy Pelosi, the former Speaker. So we're still waiting for her. We have eight of the 12 members selected. And sounds interesting to sit in that room to figure out how they get organized and go forward to make these $1.5 trillion in recommendations for budget cuts that have to be voted on right before Christmas.

MALVEAUX: Joe, it certainly sounds like from the group that's being named and listed so far that you've got various opinions, a wide range of opinions and people who are going to be that group. I'm only wondering how they're going to come up with some sort of consensus. But clearly these are the people that they're going to put in that room and try to hash something out.

Do we expect Nancy Pelosi to actually make an announcement today or fairly soon on the rest of the committee members?

JOHNS: Well, I've been checking in and haven't heard anything from them as yet. And, you know, that -- those are the last three people to go.

It's funny, Suzanne, you talk about this issue of how they're going to reach consensus. So many times when people are for formulating committees and boards, even in law school they recommend don't have an even number because what do you do if there's a deadlock?

Well, this is an even number. It's 12, it's six Democrats and six Republicans. And, you know, I'm already asking the question. If they do get tied up, where's the tie-breaker?

It could be a tough job for them.

MALVEAUX: Yes, indeed, a tough job. I'm going to be speaking with Alan Simpson later. He was one of the members -- one of the co- chairs, you may recall, of the president's congressional committee to deal with the deficit and they had recommendations, bipartisan group. The president did not endorse their recommendations, really didn't go anywhere.

We'll ask him what he thinks those members should be doing when they sit in that room and try to hash all this out.

Joe, thanks again. We'll come back to you if you get those other names of the Democrats, as well. Thanks, Joe.

JOHNS: Will do.

MALVEAUX: Here's a rundown of some of the stories we're working on next: how to cope with this roller coaster ride in the stock market. Our financial guru has some calming advice.

Then, what to do about your 401(k) if you're close to retiring or far from it.

And later, your answers to the day's talk-back question. Could the rioting in London happen here in the United States?

(COMMERCIAL BREAK)

MALVEAUX: It's been a volatile couple of weeks on Wall Street, to say the least. And today is proving to be no better. Just after a little comeback yesterday, the Dow Jones down again this time by, we're looking at 424 points or so.

So, what is all the back-and-forth mean in the markets for you, your money? All morning long we've been taking your personal finance questions.

And I'm joined by Clyde Anderson, financial expert and author, to get some real answers here.

Clyde, thank you for returning.

CLYDE ANDERSON, CNN CONTRIBUTOR: My pleasure to be here.

MALVEAUX: You know, the e-mails have been blowing up here. Facebook, Twitter, people are asking a lot of questions.

ANDERSON: Yes.

MALVEAUX: I want to read the first one to you here from my Facebook page.

Gina says, "I went through bankruptcy in 2006. Just got a credit card again this year. To build back my credit, is it better to pay the card off each month in full or to carry some balance, pay more than the minimum each month?"

ANDERSON: I tell people it's good to always pay more than the minimum because it'll take you forever to pay the credit card of if you're just paying the minimum.

But one of the things to remember, credit is a game. And so, you need to keep about a third of that balance on there. They want to see something on there. So, you're going to pay a little bit of interest on it, but pay it down continuously, but don't always pay it off. Then you may not get the same effect. What she's needing is to boost that credit score up after the bankruptcy.

MALVEAUX: So, don't pay it all off?

ANDERSON: Don't pay it all off. Just keep a little bit of balance on there. I say about a third. But then go ahead and use it and pay it down again.

MALVEAUX: All right. Here's another person who weighed in on this. Ellie says, "I have about $9,000 in liquidity savings, which is the entirety of my savings. I have no debt except for my car loan which has zero interest. I'd like to put some in an investment which earns more than my 1.1 percent savings account, but I'm unsure what investment to go with and how much I should put in."

What do you think? ANDERSON: I think the first thing -- all this buzz with stock market and investing. Some people just need to step back for a minute and make sure they have a solid plan. She's got $9,000. And she wrote there, that's all she had. So, she really needs to have three months of savings at least saved up before she really thinks about investing.

But then, if she wants to get into investing, mutual funds are a good, safe route for her to start in and earn a little bit more than the 1.1 percent. But again, she needs to have that solid plan and make sure she's got that reserve because cash is still king.

MALVEAUX: OK. Cash is still king. I got to remember that line.

ANDERSON: Yes.

MALVEAUX: This one comes from Summer. "Should I continue to contribute the maximum to my 401(k)? Or should I pay down our home equity line of credit?"

ANDERSON: What you have to look at here is how much is she paying on that home equity line of credit? I mean, that's the first thing. If her company is matching her dollar for dollar, she wants to make sure she's getting the full match.

So, I say go ahead and max that out on the 401(k).

Now, usually, home equity lines of credit have little or low interest rates, especially what we're going through right now with these rates dropping it's probably not high interest rate. So, I would say go ahead and take that time to weigh that out, but make sure you're maximizing your dollars on the 401(k) first and then kind of attack that or have some sort of strategy to make sure you're putting something toward that equity line, as well.

MALVEAUX: OK. And the last one, Facebook question coming from Johanna. "As a current college student with numerous loans, what advice can you give me about protecting myself when I graduate? Should I attempt to pay off interest while I'm in school?"

ANDERSON: Student loan debt still has a pretty low interest rate. And so, I would say, don't rush to it, but communicate with them. They give you several options. Usually, they don't require you to start paying until six month after you graduate. Then they have all kinds of options as far as deferments and forbearances available.

So you want to make sure you know what's available to you and then again start paying that interest or paying those loans off at that time. I wouldn't say rush to go ahead and start paying that, establish yourself as you're getting yourself out of college and make sure you got some sort of foundation built first.

MALVEAUX: All right. Clyde, you're going to stick around for us, right?

ANDERSON: I'll hang around. I'm here. MALVEAUX: We need you.

ANDERSON: All right.

MALVEAUX: We need you.

Thank you very much for your advice. Appreciate it.

ANDERSON: My pleasure.

MALVEAUX: Well, a reminder to vote today's "Choose the News" winner. Text "22360" to vote for the story that you'd like to see.

Text "1" for shoe shine worker. A man trying to save a dying industry with a unique hard sell is turning heads and feet his way.

Text "2" for Dreamliner unveiled -- a look at the new plane that's supposed to revolutionize air travel.

Text "3" for ultra-marathoner. A man who tries to run 13,000 miles from the North Pole to the South Pole. That's pretty incredible.

Winning story's going to air in the next hour.

Well, the anticipation now is building for Texas Governor Rick Perry. Will he be President Obama's next Republican challenger? We've got the inside details on the CNN Political Ticker, up next.

(COMMERCIAL BREAK)

MALVEAUX: After months of bitter political warfare, Wisconsin Republicans have held on control of the state's Senate. Democrats had hoped to turn popular anger against Governor Scott Walker's budget cutbacks into political sea change. Well, that didn't happen. The Democrats needed to win three seats to shift power, but could not pull it off in these recall elections.

Paul Steinhauser, part of "The Best Political Team on Television," is live from the political desk in Washington.

So, Paul, tell us what happened here. What does this indicate? The fact that the Republicans were able to come out on the winning side of this.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, Republicans, Suzanne, will tell you that this is validation that these Republican governors, these freshmen that were elected last year in the November midterms with a lot of support from Tea Party activists, they will say this is elevation with the budget cuts is popular with voters. That's what they will tell you that. Democrats will say just the opposite.

But they did hang on. And because of this, they will still control the state Senate in Wisconsin, and it is a victory for them at the polls. Listen, this was a national story, Suzanne, not just a Wisconsin story because it has implications and reverberations around the country what happened here and Republicans are rejoicing today.

Remember, there was a lot of money spent on this. These were local elections in Wisconsin, but a lot of money was spent not only by labor unions and progressive groups, but also by Tea Party groups. You know, the Tea Party Express and some other groups had a bus tour in Wisconsin in the last of couple of days to try to get Republican voters out there, and I guess it worked to a degree.

MALVEAUX: And one Republican a lot of folks are watching is Texas Governor Rick Perry -- a lot of buzz around whether or not he's going to run. What do we know?

STEINHAUSER: Yes. I guess you could say that Rick Perry is going to be a frequent flier this weekend, that he's going to have a political hat trick, because here's what we know. Earlier this week, we learned that Rick Perry will be in South Carolina, Saturday.

While all eyes will be in Iowa for that major straw poll, he's going to give a speech in South Carolina at a conservative conference, and he's going to pretty much say he's running for president without saying those words. He's basically going to hint that he's going to make his intentions known, that he's going to be running for the Republican nomination.

But, Suzanne, then what does he do? Later that day, he goes to New Hampshire, and then, now, we've learned he's going to be in Iowa on Sunday. So, he's going to hit all three of those crucial early- voting states -- a hat trick, I guess you could say, for Rick Perry this weekend -- Suzanne.

MALVEAUX: All right. Thanks, Paul. Appreciate it.

The latest political news, you know where to go, CNNPolitics.com.

Well, the fluctuating stock market is making a lot of people anxious about their 401(k)s, we're all feeling it. Today is another good example. Right now, the Dow Jones is down by 394 points.

A lot of you want to know what to do to protect your retirement.

Alison Kosik, she's here with some tips.

Alison, give us a sense of what we should be doing here, because we have a lot of questions about this. What we do with our investments, particularly those who are thinking they're close to retirement?

KOSIK: Yes, and you know what? It's no surprise, Suzanne, people are worried. According to a new CNN/ORC poll, 55 percent of Americans say the drop in the stock market affected their financial position, whether you're a young investor or a few years away from retirement. So there are some important steps you can take to limit the damage. Matt McCall, he's the president of Penn Financial Group, says, first, don't panic. Making emotional decisions are typically the wrong ones. Long-term investment choices that influence your retirement should not be based on short-term market volatility that we're seeing right now.

So changing your entire portfolio strategy is not a good choice. If anything, look at the widespread weakness as an opportunity to buy into solid companies at a discounted price. It's similar to walking into, let's say, a Saks Fifth Avenue with a 25 percent sales sign in the window, Suzanne.

MALVEAUX: You know, I guess it's good for long-term investors, you know, folks who have time to essentially wait this thing out. But what about people who are really just about to retire? What are their options?

KOSIK: OK. So for soon to be retirees, it's a totally different story. If your portfolio is diversified, you're most likely weathering this storm just fine. But those who are overly aggressive may be taking a hit.

So McCall says, it may be a wake-up call to change your strategy. He recommends reducing your exposure to stocks and to play it safe, invest in high-yielding investments that can offer downside protection if the market should fall again.

Also McCall says keep a portion of your portfolio in cash to lower the risks of those market fluctuations that we're seeing -- Suzanne.

MALVEAUX: All right, Alison, don't go anywhere. We're asking what are the things you can do with your retirement accounts to prepare for the kinds of drops that we're seeing in the market. Alison's going to answer that next.

(COMMERCIAL BREAK)

MALVEAUX: We're back with Alison Kosik, taking a closer look at retirement accounts. And, Alison is here to help us sort this out.

Alison, how can we be ready, financially? When you look at these drops in the market, is there any way to actually protect your nest egg?

KOSIK: I'll tell you what. Tough times call for a little preparation, Suzanne. And you know, there are several ways to help cushion your financial nest egg.

Walter Updegrade, he's a senior editor at "Money" magazine, he says, it may seem obvious, but try to save more and spend less. The more you saved for the better off -- it's better off that you've saved more so you can have them when emergencies happen.

Also, consider having liquid assets at hand. You know, money, cash is really king. Updegrade says having a decent amount of money in an FDIC account or a money market fund yields a better return.

And it's important to get a handle on debt. The more debt you acquire, the less flexibility you have. So if you are close to retirement and worried, of course, talk to a financial adviser before making any huge moves -- Suzanne.

MALVEAUX: All right, Alison, thanks. Good advice, as always. Thank you, Alison.

Well, there was a fourth night of violence in Britain despite a strong police presence. That brings us to today's "Talk Back" question and our, Carol Costello, she's back with your responses.

Hey, Carol.

COSTELLO: Hey, Suzanne.

The "Talk Back" question today: Could what is happening in Britain happen here?

This from Ben, "Had to say , since we don't have all the government programs they do. But what is scarier is our access to weapons, which is a major concern."

This from Joshua, "It's kind of how this country was founded. U.S. History 101. The media makes it out to be hooligans, sure...but politically-motivated hooligans."

This from Peter, "It has happened here. Remember the Civil Rights riots in the '60s, and the L.A. riots in the '90s?"

This from Rusty, "I doubt it, but if it did, my anger would be towards those opportunists and thieves who use seemingly innocent events like protests for their own greed and gratification."

And this from Tony, "No. We riot about important things like when our sports teams win championships."

Sadly, that is so true. Keep the conversation going, Facebook.com/CarolCNN.

And actually, you've got a sports story, so I'm sticking around.

MALVEAUX: I've got a sports story for you, Carol. How did you know?

I know you are a football fan, and this is really cool. You got to love the way this happens here.

This is a New England Patriots' player, his name is Chad Ochocinco. He is getting acquainted with his new home town. How is he doing it? Well, he is planning to stay with one of the team's fans, right, for the first couple weeks of the season. He's says it's going to be a good way to learn his way around Boston. He got lost over the weekend. Could not figure out how to get where he needed to go. But he says there is one catch with his new roomie, he says he can't live without the Internet or Xbox. So whoever he lives with, they have to be well stocked. You know, they got to be hooked up and connected.

Could you imagine, Carol? Could you do that? Could you just live with a stranger?

COSTELLO: Live with Chad Ochocinco? No.

MALVEAUX: Could you live with him?

COSTELLO: No. But I don't think any have fans stepped up and said I would love to be his roomie, but I am sure he will have some takers. 'Cause I am sure in Foxborough, there may not be that many exciting things to do. Although, I don't know, don't hate me. But I think that's kind of cool of him. Why not?

MALVEAUX: You know, I wonder if it's going to be a man or a women. That'll be interesting, don't you think?

COSTELLO: Depends on what the woman looks like, according to Chad Ochocinco. I don't know, I'm just kidding.

MALVEAUX: We're going to follow-up on this story, Carol, and find out who is his new roomie, huh?

COSTELLO: I will be interested to know.

MALVEAUX: We know it's not going to be you because your husband would not approve, and that would not be a good thing.

COSTELLO: No, I don't think he would like that, no.

MALVEAUX: OK. All right, Carol, we will talk to you in a bit. Thanks.

Hundreds of people showed up at a job fair in Los Angeles, many telling us that they have to reinvent themselves and their careers. We are going to hear about what they are doing to stay afloat.

(COMMERCIAL BREAK)

MALVEAUX: A reminder to vote for the "Choose the News" winner. Text "22360" to vote for the story you'd like to see.

Text "1" for Shoe Shine Worker, a man trying to save a dying industry with a unique hard sell that's turning heads and feet his way.

Text "2" for Dreamliner unveiled, a look at a new plane that is supposed to revolutionize air travel.

And text "3," for ultra marathoner, this is man tries to run 13,000 miles from the North Pole to the South Pole.

Winning story will air in the next hour.

CNN's "In Depth," American's jobless. Almost half of Americans who are out of work have been out of work have been out of work for six months. Whether they're in their 20s or their 60s, Americans are trying to come up with ways to reinvent themselves and their careers.

Sandra Endo hears their stories at a career fair in Los Angeles.

(BEGIN VIDEOTAPE)

SANDRA ENDO, CNN CORRESPONDENT (voice-over): A national career fair in Los Angeles, hundreds show up to find work. These are their stories.

MICHAEL LEWIS, UNEMPLOYED DRIVER: Been out of work for five months and I need a job.

DENISE JONES, UNEMPLOYED MEDICAL CLERK: I have sent out so many resumes online, and no responses. No responses.

JEFF TOBIAS, UNEMPLOYED MORTGAGE BANKER: My company laid off everybody, and then, shortly thereafter, my wife was also laid off. She was in commercial lending for over 20 years.

JAMES ENCLEAN, UNEMPLOYED GRADUATE: I'm kind of just looking for any kind of part time job, anything that can kind of keep me afloat.

PAUL SPITERI, UNEMPLOYED CIVIL ENGINEER: I a new husband with a pregnant wife looking for work in a horrible economy. That's stressful.

ENDO: And so the hunt begins.

SPITERI: Are you looking primarily for sales positions or managers?

ENDO (on camera): How has the process been?

SPITERI: There are job postings out there, but there must be a flood of people applying for them, because it's so difficult to get a callback.

Thanks a lot.

It's really been like a hustlers market, you really have to try and hustle and see what you can grab.

ENDO (voice-over): And in the meantime, figure out ways to improve beyond.

JEANNE NAGLES, UNEMPLOYED H.R. ASSISTANT: I've had to reinvent myself by going back to school. I am also networking everywhere I can, I'm going out and meeting new people all the time and letting them know I'm out of work.

JENNIFER JENG, UNEMPLOYED GRADUATE: I speaks Mandarin, English, Taiwanese. I really do think that people who are working hard and they have special kids, it should not the be a problem.

ENDO: A person's outlook may make all the difference. With competition in today's job market this fierce.

Sandra Endo, CNN, Los Angeles.

(END VIDEOTAPE)