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Investors on Edge Amid Global Economic Turmoil; Biden Meets with Two Top Obama Advisers; Jeb Bush Bungles 'Anchor Babies' Explanation; Suspect in Trooper Death Linked to Second Killing. Aired 6-6:30a ET

Aired August 25, 2015 - 06:00>   ET

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

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Fear and panic have taken hold.

[05:58:51] UNIDENTIFIED FEMALE: All eyes are on the stock market this morning.

UNIDENTIFIED FEMALE: We haven't seen the end of it yet. There's still more to follow.

UNIDENTIFIED MALE: Will Joe Biden run for the White House?

UNIDENTIFIED FEMALE: He really does want to be president.

JOE JOHNS, CNN CORRESPONDENT: President Obama weighing in, giving Joe Biden the green light.

UNIDENTIFIED MALE: This would be a panic move from the Democrats, if Hillary's numbers are really bad.

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Excuse me. I'll use the word "anchor baby."

JEB BUSH (R), PRESIDENTIAL CANDIDATE: It's more related to Asian people, taking advantage of birthright citizenship.

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: The other candidates are just Trump without the pizzazz or the hair.

UNIDENTIFIED FEMALE: Hearts are very heavy in Louisiana. The chilling words of an alleged killer, caught on the squad car's dash cam.

COL. MIKE EDMONSON, LOUISIANA STATE POLICE: You hear him breathing in there, going, "Boy, you're lucky."

(END VIDEOTAPE)

ANNOUNCER: This is NEW DAY with Chris Cuomo, Alisyn Camerota, and Michaela Pereira.

CHRIS CUOMO, CNN ANCHOR: Good morning. Welcome to your NEW DAY. It's Tuesday, August 25, 6 a.m. in the East. And we know what's happening in the markets. Do we? Why is it happening?

U.S. markets echoing the distress of Asian markets and others, now talking about a bounce back? We have answers to who is to blame and what comes next after these thousand points got stripped off the Dow at one point Monday.

ALISYN CAMEROTA, CNN ANCHOR: And if overseas trading is any indication, fasten your seat belts. Today could be another bumpy ride. Shanghai with its second straight day of heavy losses, it is down almost eight percent.

So what can we expect now? Let's begin our team coverage with chief business correspondent Christine Romans. What are you seeing, Christine?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: I see stability in the U.S. market, at least this morning. I want to show you, Alisyn, where we have futures right now.

You've got futures higher here, S&P 500 futures up 60 points. That would have a Dow bounce here. If we saw a three percent gain in the Dow, you would definitely see a bounce there. So it looks as though that selling, that huge vicious selling from yesterday is over in the U.S.

Let's talk about yesterday, because I have never seen anything like it. A thousand points lower in ten minutes. Simply unheard of. A frenzy of selling, and then it bounced off the lows.

You guys, at one point it had bounced 800 points off the lows, and you saw stocks actually turning positive. It was insane, and then by the end of the day, down 588 points, a very bad day. The worst performance for stocks since 2008. What about world markets.

This then fell into Asia again. Asia markets, Shanghai down eight percent. But look at Europe. I want to point to you European markets. They're all bouncing back here. So that -- that negative feedback loop has been broken. You don't have overnight activity feeding into the U.S. Right now it looks like a bounce at the opening bell. We will know for sure, of course, in a few hours.

MICHAELA PEREIRA, CNN ANCHOR: OK. We'll be watching that Christine. Well, we know the volatility in the markets is largely being fueled by China. The ripple effect is showing its full effect these last few days. The question is what can China do to stop the bleeding?

CNN's Will Ripley is live in Beijing with more for us this morning -- Will.

WILL RIPLEY, CNN CORRESPONDENT: Michaela, right now investors are in panic mode, pulling their money out of stocks. Since the peak in June 12, stocks here, the Shanghai deposit has dropped 42 percent, erasing all of the gains so far this year.

The state media was encouraging people to invest in the first six months of this year, and a lot of people did. Seventy percent of investors here in China are individuals who, in many cases, put their life's savings into the market and have now, in just a matter of days, watched much of that money evaporate.

So what will China's next move be to try to kick start the economy and restore the market faith in the markets?

Well, the central bank could step in and lower interest rates. The government could also invest in infrastructure development: roads, highways, and a high-speed rail line they're building for the 2022 Winter Olympics in Beijing. There could also be fiscal stimulus, perhaps in the form of a tax cut, to encourage consumer spending and investment. And political fireworks as the government continues to fight wasteful spending and corruption.

And Chris and Alisyn, as you know this is having an effect in markets across Asia, most notably in Tokyo, which was also down significantly yet again today.

CUOMO: All right, Will. Thank you very much.

As you were talking, I got my buddies on Wall Street buzzing up my phone, telling me to calm down. Let's bring in CNN chief business correspondent Christine Romans; CNN global economic analyst and "TIME" assistant managing editor Rana Foroohar; and Aldan -- Allen Valdes, director of the floor trading for DME Securities.

Why is my phone blowing up, Romans? I have all these buddies on the street, men and women, who are saying this is what we call a buying opportunity. We know what's going on with China. It gave us an opportunity. We're going back and forth with it. Everything will be fine. Do they want me to lose my money?

ROMANS: No, the professional traders out there are having a field day, because they're making money on the way up, and they're making money on the way down. Right? So this volatility is something that the trading professionals really love.

But I will say for the individual investor, remember the U.S. economy is growing. The job market is getting better. The housing market is getting a little bit better. And until a few days ago, the Fed was even so confident about the U.S. economy it was ready to raise interest rates.

CUOMO: I saw you wringing out a towel yesterday...

ROMANS: I was.

CUOMO: ... filled with sweat as the market was going towards the fifth circle of hell.

ROMANS: It was -- it was exhausting. It was exhausting yesterday. But today, there's a little bit of this feeling that what's happening in China is happening in China. It will affect the U.S. and the rest of the world, but let's get some perspective. That's why you're seeing this stop (ph) this morning. CAMEROTA: Rana, you are a global economic analyst. You can give

us perspective on this. Explain why things are good in the U.S. My 401(k) is so tethered to turbulence in China?

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Well, you know, we're living in a global economy. But what you're seeing right now is, in some ways, the echoes of 2008. So when we all stopped buying stuff, right, after the financial crisis companies quit creating jobs, our economy tanked, that affected China. They then had to start a major stimulus program.

They went very much into debt. They now have a debt-to-GDP ratio of 300 percent. That's over 300 times what it is in the U.S. That's now blowing up, and so you're feeling these ripple effects.

And it's coming at a time when governments are out of the ammunition all over the world. They've spent a lot of money, trying to buoy the global economy. So there's a sense that there's nowhere else to look now if global growth falls apart.

CUOMO: So we have what and we have why. Let's put up a chart for the people at home about where this fits in in other corrections. And "correction" is a term of art. Let's take a look.

This is the S&P related. All right? So end of a six-year bull market. That's a question Romans asks, like, every day on this show, waiting for the bubble to go. And we see where these different ups or downs are.

Now this correction, the net to net on it was, what, 600 points?

ROMANS: Yes.

[06:05:08] CUOMO: So where is that in terms of one-day correction? We're saying it's the biggest one-day ever.

ROMANS: This is the biggest correction in four years. We had four years without a pull-back, Allen. We went four years with stocks going straight up. That's why people are wringing out a towel.

CUOMO: The question becomes this for the folks at home. Is -- is this something that matters to me as just a regular investor? Is this just an opportunity for guys like you to play the game of the casino called Wall Street?

ALLEN VALDES, DIRECTOR OF FLOOR TRADING, DME SECURITIES: Well, you know, any time markets lost $3 trillion in a couple of days, you want to take notice of that. I think at home, like Christina said, you don't want to panic; you don't want to sell anything right now.

I wouldn't get back in right away. I think we have a lot of uncertainty going forward. We have the feds in early September coming out. Are they going to raise? Are they going to stay put? You have to wait for that. The oil slide. It's not all about China. The oil slide... CUOMO: What is the oil slide? Is the oil slide just supply and

demand, or as Rana and I and Christine have talked before about this, that just like with sub-prime, that oil contracts were used to collateralize, securitize a lot of big fancy financial instruments; and there's, like, $26 trillion of that money out there, what Rana calls hot money. And that those contracts are winding down. That's forcing the price down, and that oil may stay low for a very long time. You buy any of that?

VALDES: Yes, I definitely buy into that.

CUOMO: So explain it to me.

VALDES: Because those contracts are out there. People have hedged themselves against it. And it's just going to stay lower and lower. I think you could see oil go down about $33.

CUOMO: So oil was used as some type of a toy in another derivative game, like sub-prime mortgages were?

FOROOHAR: All that money that the Federal Reserve and other central banks dumped into the economy following the financial crisis, a lot of that went into trading, and a lot of it went into commodities and emerging markets. So that's why those areas are being hit the hardest right now, and you're seeing the plummet in oil and in emerging markets.

ROMANS: But you have valid fundamentals for oil defining, too. I mean, remember, 1998, we had oil prices at $12. When you were at $12 a barrel, you had the Asian production equation (ph) and that crisis. And you've got so much oil. We're awash in oil. I think we're pumping -- we're pumping 2 million more barrels a day than we're using.

FOROOHAR: Right, and the Saudis, and it's a geopolitical story, too, because the Saudis usually stop pumping oil when it's low. But they want to keep pressure on Iran, their local rival in the Middle East, so they're continuing to keep the spigots opening. So there's just -- there's too much oil in the world right now.

ROMANS: There's a lot of moving parts.

CAMEROTA: I can see that. It is all so complicated.

CUOMO: You see? You see what happens when you push and pass the 600 points, 1,000 points? All of this stuff starts to come.

ROMANS: But it's -- everything is moving. That's why it's not just a correction in the stock market. It's a correction in the stock market with a lot of other things around it that are concerning and bear watching for investors.

CAMEROTA: Isn't there some...

VALDES: And that's why traders really are very confused, because there's so much uncertainty out there, and it's not just China, like Christina says. It's all over. You pick a spot in the world, and it's total confusion out there.

ROMANS: Yes, nobody's stable.

CAMEROTA: Al, you were on the floor yesterday when all heck was breaking loose. That couldn't have been pretty.

ROMAN: You can say hell, because it was Hell Monday.

CAMEROTA: It was not that.

(CROSSTALK)

CAMEROTA: That's one of the rings of Hell.

CUOMO: Say Hades. That's the middle spot.

CAMEROTA: OK.

VALDES: You know, there was no panic on the floor, but they were in awe. I mean, any time a market went down a thousand points, no one's ever seen that before. When Lehman broke, we were worried. We thought that things were going to get really bad. But yesterday, there wasn't that feeling. It was we knew this was coming, like you mentioned. Usually, you get a correction every 18 months. This has been six -- four years for any kind of correction. So it was...

CUOMO: Why so much buying in after hours, which is obviously pushing the futures this morning, if they were so confused?

VALDES: A lot of it was short covering. A lot of guys were short, and they started covering. So there was a lot of technical reasons why they're buying.

ROMANS: Some of these we haven't seen like this in a long time. Apple, for example. Yesterday, Apple was crazy. It went down big. Then it was higher. Then it was lower again. And you have a lot of people saying, "I haven't been able to buy Apple on a pullback in a long time."

CUOMO: So what do you think happens today, though? For all of this disruption going on and the things that you're trying to make me sweat over, how much of a chance is there that today that Apple pops, because everybody buys back into it?

ROMANS: There's a good chance Apple pops today. There's a chance that all of these stocks pop today. And then what happens the next day? I'm not sure. Maybe, you know...

FOROOHAR: This isn't just about a slump; this is about more volatility. Basically, fasten your seat belt, because the next year two of the markets are going to be up and down. They just are.

CUOMO: So how do you -- how do we compete? How does an Alisyn Camerota, who's worried about sending her kids to college, compete with fancy guys like Allen Valdes, with his nice espadrilles on, who comes in here and he can get in and out of the markets in nanoseconds? CAMEROTA: Yes. Where do I get hot money?

FOROOHAR: Stay in U.S. blue chips. The American story is still pretty strong. And I think that that's why you're seeing a little bit of a bounce back. Is that this is still a pretty, you know, safe house on an ugly lot (ph).

CAMEROTA: Well, you say stay blue chips, because those are the solid performers?

FOROOHAR: Those are the solid performers. And also, U.S. blue chips are a great way to hedge the global markets. You know, don't go buy emerging market debt. Buy Apple. They're in China. That's a way to get into the market.

(CROSSTALK)

CUOMO: But doesn't it feel like the game has changed and this quick ability to trade is cutting out the Mom and Pop investors? That we can't compete. We can't get in and out as fast.

ROMANS: Not if you're a buy-and-hold investor. If you're a buy- and-hold investor, I mean, there's all this happening: high-frequency trading and all of this happening and, you know, dark pools. But you're still buying the American market and holding it for a long term.

I think the most important thing for people here is if you're 18 months away retirement, you should not have all your money in the stock market. That is a personal finance rule of thumb. If you're 40 years old, you should have almost all of your money in the stock market, because you've got a longer time horizon. You need to look at how long it's going to be until you retire. We're talking about retirement.

If you want to talk about playing around in an E-trade account, that's a whole different story. Yes, it's harder to get in and out now than it was for an individual investor. But if you are a mom and pop saving for retirement, saving or college, you should not be worried about moves like this right now.

VALDES: Correctamundo. Yes, you don't have to worry about it. I mean, if you're in it for your children's education, you're right: stay in the market right now. And you take advantage of things like Apple dropping 20 percent yesterday. You may be taking a little more of that stock. But day-to-day trading, no, you don't want to do that.

CAMEROTA: OK. We will have more tips later in the hour. Rana, Allen, Christine, thanks so much for the great conversation.

VALDES: Thank you.

CAMEROTA: Michaela.

PEREIRA: You brought my blood pressure down, because I am the epitome of nervous investor. So that conversation was... CUOMO: You're welcome.

PEREIRA: So thank you very much.

Let's turn to politics now and the 2016 race.

The drama building around a possible Joe Biden run for president. President Obama is said to have given the vice president his blessing. So will Biden decide to challenge Hillary Clinton for the Democratic nomination? All eyes are wondering. Well, I guess don't wonder.

Michelle Kosinski live at the White House. We do want to know, Michelle.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: OK, Michaela. Right, it certainly seems that way. Right? And even though the vice president aides will still tell us that he has not made that decision yet. And that may, indeed, be true. There are now enough signals out there that sources close to him are telling CNN that it's now more likely than not that he does make this launch for the White House in 2016.

He had lunch with President Obama yesterday, during which the president allegedly gave him a sort of blessing to run and said that he would, you know, be there for him, and he would back what he's doing. Not necessarily an endorsement.

But Biden also met with some top former Obama officials. He's going to be expanding his meetings over the next couple of weeks to also include fundraisers and strategists.

And listen to this, what the press secretary said about Vice President Biden yesterday.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The president has indicated his view, that the decision that he made, I guess seven years ago now, to add Joe Biden to the ticket as his running mate was the smartest decision that he'd ever made in politics.

(END VIDEO CLIP)

KOSINSKI: He also said that Biden is quite possibly the one person in America who knows the most about what it takes launch a bid to the White House.

The press secretarial assistant to the president would not rule out making an endorsement for this race once everybody gets into it, that he also wouldn't rule out the fact that the president and Biden may have been having these discussions about a possible run for some time. And that the president wouldn't be in a sort of strange position, that he'd be torn, say, between former Secretary Clinton and Vice President Biden if Biden does jump in.

So we still have to couch it that way, "if Biden does jump in." There's no official decision, but we expect there to be a decision at least within the next couple of weeks.

Back to you guys.

CAMEROTA: All right. We are watching it, as you are, Michelle. We'll have our political pundits on this, as well.

Meanwhile, a defiant Jeb Bush going head to head with GOP frontrunner flDonald Trump over immigration. The Republican hopeful trying to defend his use of the term "anchor babies" during a border visit, but he somehow bungled his explanation. CNN's Polo Sandoval is live in McAllen, Texas.

Polo, what happened?

POLO SANDOVAL, CNN CORRESPONDENT: Alisyn, good morning.

Well, there seems to be this growing call now from the Republican Party that the border needs to be secured, that this infrastructure, similar to what you see behind me, this segment of a border wall, just north of the Mexican city of Renosa (ph), is not enough to keep drugs and people from illegally being crossed north.

Jeb Bush was addressing that yesterday, but then he also offered some clarity regarding his use of that controversial term "anchor baby," saying that he was actually referring to another issue, not necessarily the people who cross this border illegally.

(BEGIN VIDEO CLIP)

JEB BUSH (R), PRESIDENTIAL CANDIDATE: What I was talking about was the specific case of fraud being committed, where there's organized efforts -- and frankly it's more related to Asian people -- coming into our country, having children in that organized efforts, taking advantage of a noble concept with this birthright citizenship. I support the 14th Amendment.

(END VIDEO CLIP)

SANDOVAL: Yes, the former Florida governor there referring to Chinese birth tourism, which California officials have recognized as a serious issue, but really, it's a relatively new one. They don't know, truly, the extent of the impact quite yet.

This morning, there is some concern there from the Republican Party that Bush's comments from yesterday could be seen as offensive to the Asian community, Chris.

Meanwhile the war of words is on. In fact, the Bush campaign now releasing a brand-new video, releasing -- rather, really bashing one of their main opponents, which is Donald Trump. Again, Chris, that war of words is far from over; in fact, only expected to intensify as we get closer to next year.

[06:10:03] CUOMO: Well put. It is a war of words, and that's why all of these dark theories are bubbling up now into the mainstream, and it's interesting to see if politicians get caught up in it.

Thank you for the reporting.

Let's go to Louisiana now. There may be more to why that state trooper was killed. The man accused of that homicide may have another death on his hands. CNN's Rosa Flores is live in Chicago with the latest -- Rosa.

ROSA FLORES, CNN CORRESPONDENT: Chris, good morning.

Hearts are very heavy this morning in Louisiana for a state trooper who dedicated 12 years of life to law enforcement, ten of those in Lake Charles Police Department and two of those with the Louisiana State Police.

But like you mentioned, the plot thickens this morning as investigators say that this man, who was charged with the killing of this trooper, is now also linked to the possible killing of his own roommate.

(BEGIN VIDEOTAPE)

FLORES (voice-over): An emotional state police colonel describes the chilling words of the alleged killer of Trooper Steven Vincent, captured on his squad car's dash cam.

EDMONSON: You can hear him breathing in there and telling him, "Boy, you're lucky. You're lucky. You're going to die soon."

FLORES: Authorities believe 54-year-old Kevin Daigle killed his roommate before encountering the Louisiana state trooper.

SHERIFF TONY MANCUSO, CALCASIEU PARISH: I'm sure you're going to ask the question that Mr. Daigle is involved in this, and yes, we're going presume that.

FLORES: According to investigators, the pick-up Daigle was driving was stuck in a ditch Sunday. Trooper Vincent realized the vehicle matched the description of a reported reckless driver, and started asking him about it. The suspect pulled out a shotgun, shooting Trooper Vincent in the head, according to authorities.

EDMONSON: I watched that gunshot blast in that tape. I saw my trooper go backwards and then go back towards his unit, where he was going to try to get some help out there.

FLORES: Good Samaritans like this man beat authorities to the scene.

EDMONSON: This is a hero right there.

FLORES: Wrestling with Daigle, investigators say, and subduing him with the wounded officer's handcuffs.

UNIDENTIFIED MALE: Me and Sam handcuffed him, and then we tended to the officer. UNIDENTIFIED MALE: He was an older guy. It took three men to

hold him down.

FLORES: On average, a law enforcement officer is killed in the line of duty every two and a half days in this country.

JONATHAN GILLIAM, LAW ENFORCEMENT EXPERT: The potential of death is just there in everything that you do, because you don't know what is on the other side of that door or what's going to be behind the wheel of that car as you approach it.

(END VIDEOTAPE)

FLORES: Now Daigle is charged with first-degree murder charges in the killing of this state trooper. Now, authorities tell us that those charges could grow as they continue to investigate the killing of his roommate.

As for the state trooper's family, he leaves behind a wife and a 9-year-old son.

PEREIRA: That family is going to struggle for some time. Hopefully, the community can surround them with love.

All right, Rosa. Thank you so much.

Breaking overnight, authorities in Spain and Morocco say they have busted a terror ring. More than a dozen people were detained in two countries, accused of recruiting fighters for ISIS in Syria and Iraq. More arrests, we're told, could be coming.

In the meantime the train terror suspect is a Moroccan national whose family moved to Spain. European authorities say he might be linked to an ISIS cell.

CAMEROTA: North Korea and South Korea have hammered out a deal averting the threat of imminent war. Officials in Seoul have agreed to switch off those loudspeakers that pump propaganda broadcasts over the heavily-fortified border. The action comes after Pyongyang expressed regret over a landmine blast injuring two South Korean soldiers.

CUOMO: Indy driver Justin Wilson is being remembered this morning as not only a good river but a good man on and off the track. Wilson died Monday from a head injury he suffered at Pocono Raceway Sunday, as I said. He was struck by flying debris from another car when it crashed into a track wall.

Now Justin Wilson was just 37 years old. He was a big safety advocate in the sport. And his death renews questions about open- cockpit racing.

PEREIRA: Not just a racer; a father, husband. You know, you often remember -- we think of them as these athletes, but at home, they were the guy that was -- you know?

CUOMO: And they are the last drivers who, when I say open cockpit, there's no windshield.

PEREIRA: They're exposed.

CUOMO: They're in there. It's just their helmet.

PEREIRA: Yes. Their heads are very vulnerable.

CUOMO: And look, that's a very storied part of racing. It's a very old part of racing. It's the original aspect of racing. But is it something that has to change?

CAMEROTA: And it's so crazy, because we see other crashes where people walk away unscathed.

PEREIRA: I know.

CAMEROTA: And that is amazing when you see that and then this happens and he dies. It's just terrible.

Meanwhile, President Obama may have blesses a Biden candidacy, but if he decides to run, the White House could find itself between a rock and a hard place. I think I could have done better with that pun, don't you think? Our panel weighs in on the primary endorsement next.

CUOMO: You delivered it right.

(COMMERCIAL BREAK)

[06:23:56] CAMEROTA: A top Democratic source tells our own Jeff Zeleny that Vice President Joe Biden now has President Obama's blessing to jump into the 2016 race. So how likely is it that he will throw his hat in the ring?

Joining us this morning is Maggie Haberman, CNN political analyst and presidential campaign correspondent for "The New York Times"; as well as Jim Rutenberg, chief political correspondent for "The New York Times Magazine."

OK, Maggie, what does it mean, by the way, to get President Obama's blessing? He didn't have it before now?

MAGGIE HABERMAN, CNN POLITICAL ANALYST: Well, I think it means, perhaps, different things. I think he has his blessing sounds like the president could be encouraging him. I do not think that's what's happening, based on my conversations with people. I think that President Obama wants to give Joe Biden, whom he loves -- and President Obama was very clearly impacted by Beau Biden's death, was really, really broken up about it, really feels what Joe Biden is going through. I think he wants to give him space to make up his mind.

But a lot of people around President Obama believe that where he will ultimately end up is not running. And I think that he is not saying, "Yes, you should absolutely get into a race against Hillary Clinton." I think he's saying, "You should follow your heart on what you're going to do, and then we'll see where that goes."

CUOMO: Heart and politics, Jim. Not two things usually put together. Yes, I'm a cynic.

Here's my question: Why is this tough for the president? Why would he back Hillary Clinton over Joe Biden?

[06:25:09] JIM RUTENBERG, CHIEF POLITICAL CORRESPONDENT, "NEW YORK TIMES MAGAZINE": Well, Hillary Clinton is, in the end, pretty loyal, a very loyal soldier in his administration; and they forged a partnership. And he kind of did that kind of tepid, if we all remember, sort of support.

CUOMO: Tepid. Tepid's a good word, Jim. That's saying it -- right on the connotation.

RUTENBERG: I would say tentative, you know.

So he kind of seemed to sort of start throwing his weight behind Hillary, so it's a little bit of an awkward dance now. We saw it yesterday in the White House briefing room.

CUOMO: He's on his way out, Alisyn. Right? I mean, he might as well go out with clear conscience. It's supposedly no secret that the Obama team is not a big fan of the Hillary team. I mean, you know, is that the reality, or is it not the reality?

HABERMAN: You know, I think that, actually, a lot of the Obama campaign infrastructure is now around Hillary Clinton. I think what you're seeing, complications, is this e-mail issue.

The e-mail issue is being handled very much the way Hillary Clinton historically handles controversy.

CAMEROTA: Nothing to see here?

HABERMAN: Or hunker down and fight back, and you know, it's a partisan fight against her.

CUOMO: Blame Maggie.

HABERMAN: This reminds me -- who? This reminds of, you know, it's not dissimilar to Whitewater, I think certainly. And in her mind, it's the same kind of thing. It starts as one investigation, and then it becomes something different.

I think that what you're seeing is some criticisms of how she's handled it. But for a very long time, a lot of Obama former campaign staffers believed, privately anyway, that she was going to be the only game in town. And honestly, I'm not sure that that's changed.

The other thing in terms of Joe Biden is I'm not really sure what his path is. He and Hillary Clinton would draw a lot of the same voters. It's not like he's going to draw from Bernie Sanders heavily. So... CAMEROTA: And Maggie, let's stay with you for one second,

because what do your sources say what's going on inside the Hillary campaign about Joe Biden? What do they say? Do they think he's going to get in? Are they planning for that?

HABERMAN: For the most part, they generally think that he ultimately will not. They believe that he's going through a terrible thing.

Nobody can describe what kind of a loss this is for him. Right? I mean, think about what Joe Biden has suffered in his life: losing his wife, losing his daughter many years ago. He's now lost his son, with whom he was incredibly close. He's obviously going through something I think most of us couldn't imagine going through and wouldn't wish on anyone.

I think the Clinton people are very mindful of that, but I think at the end of the day, they still think, as we were just talking about, that there's not a great path for him.

The one thing we haven't talked about -- we've talked about politics; we've talked about heart. We have not talked about money. I don't know where he comes up with the money, either in super PAC fundraising or in low-dollar fundraising where he can be truly competitive at this late stage. It is pretty late.

CUOMO: I wonder why we're ignoring it. Maybe we're ignoring it because it puts too much cold water on this idea of Joe Biden running. But isn't the reality, Jim, when you look at Donald Trump, what's his biggest check to a pathway to the candidacy: that he's not building an organization. And that once you get on the ground in a lot of these states, really, the organization wins. It's like a business. It's not just about charisma any more, what the media likes.

How could Joe Biden tap into enough talent and enough pockets to make himself competitive against the massive Clinton machine?

RUTENBERG: Well, it would be hard, but there is one thing to remember. That there are a lot of Democrats who aren't part of the Hillary organization, won't be part of the Hillary organization. So you guys reported last night -- I believe it was Jeff Zeleny -- that he was hunkered down with Anita Dunn, you know, a real major Democratic strategist.

HABERMAN: Yes, a huge figure within the party.

CAMEROTA: Let's talk about Jeb Bush. He is trying to clarify what he meant about the term "anchor babies," which many in the Hispanic community consider a pejorative term. So he pivoted away from Hispanics. Here is how he explained the term.

(BEGIN VIDEO CLIP)

BUSH: What I was talking about was the specific case of fraud being committed, where there's organized efforts -- and frankly it's more related to Asian people -- coming into our country, having children in that organized efforts, taking advantage of a noble concept with this birthright citizenship. I support the 14th Amendment. Nothing about what I've said is -- should be viewed as derogatory towards immigrants at all.

(END VIDEO CLIP)

CAMEROTA: Maggie, what's wrong with that response?

HABERMAN: Well, it pivoted away from one thing that insulted some people and moved toward another thing that insulted some people. It's not quite the same thing. The Asian people remark was incredibly awkward, and he's referring to a news account, a very specific news account about -- about organized efforts in this regard.

"Anchor baby" is a derogatory term. It is also something of a political unicorn, because it's based on this premise that there is expedited process for the parents of these children. That's actually not true. And it's been disproven over and over again.

What is striking to me about the use of the term, I understand what he's saying, but Jeb Bush's whole candidacy is premised on, A, being the responsible adult and, B, that this is an issue that he really understands. He wrote a whole book about this issue that came out in 2013. So I think that's why it surprises people.

CUOMO: He's trying to say to an angry person, "Calm down; you shouldn't be angry." That never works. It doesn't work in a marriage. It doesn't work with your kids; doesn't work in politics.

HABERMAN: Right.

CUOMO: And so where does he pivot off of this?

RUTENBERG: Well, first of all, he was the candidate who could have best threaded this needle from the outset of this campaign. But what we've seen and what Donald Trump has shown is that anger you talk about. It is so palpable, so super tricky. His brother had this problem. His brother's popularity within his own base really fell because of immigration.

So he -- Jeb is in a super tricky position. He's not the most seasoned national candidate, which we've seen. So...