tv CBS Evening News With Scott Pelley CBS June 14, 2012 6:30pm-7:00pm EDT
>> pelley: tonight, europe on the brink. as the economic crisis worsens there, fear is growing that it could spread here. reports from anthony mason and clarissa ward. a showdown over how to fix the economy. >> and if you want to see the results of his economic policies. >> if you want to give the policies of the last decade another try... >> pelley: norah adonnell and jan crawford with campaign 2012 reports. seth doane on how the recession wiped out two decades of accumulated wealth. >> i really thought i would be a lot better off at this point than i am now. >> pelley: and bill meant with woodward and bernstein, 40 years after watergate. >> white house became a kind of criminal enterprise. captioning sponsored by cbs
this is the "cbs evening news" with scott pelley. >> pelley: good evening. this is one of those days when the economic picture seems so ominous that the stock market rallied on the bad news. investors seemed to think that if things are this precase, surely the federal reserve will come to the rescue and european leaders will come to their senses. here at home, new claims for unemployment benefits were unexpectedly up today. spain and greece teetered on theem of bankruptcy. and with that, the dow jumped more than 155 points to close a little over 12,651. it appeared to defy gravity, specifically, the gravity of the worsening situation in europe. investors were so doubtful today about spain that its cost borrowing nearly hit 7%, which the country cannot suffer for long. we have four reports on all of this tonight, and we will start with anthony mason with the
looming crisis in europe. >> reporter: seven is not a lucky number for spain, whose borrowing costs have entered the danger zone. after groos, portugal, and ireland saw their borrowing costs soar to 7%, all three countries had to call for financial rescue. and with spain on the edge, italy, europe's third biggest economy, could be next. economists fear a contagion that could see these countries default on their debt. >> that would mean that the entire european banking system would collapse. >> reporter: michael darda of m.k.m. partners, says that could ignite another global financial crisis, 2008 all over again. >> we're talking about a multitrillion-euro shock, and that could be very, very ugly. >> reporter: and europe accounts for about a quarter of u.s. exportes, so recession there means a loss of business and jobs here. markets in the u.s. rallied today on reports that european
central banks are prepared to intervene following this weekend's elections in greece. >> the sooner they get going, the better. and every day they wait, the probability is higher of a potential catastrophe over there. so they really don't have a lot of time. >> reporter: britain, which is not in the euro zone, said today it will pump more money into into its banks to prop up its struggling economy. german chancellor angela merkel called the crisis an historic challenge. if the euro fails, she said, europe fails. >> pelley: thank you, anthony. the next shoe to drop is greece. the country is broke, and the government agreed to big spending cuts in return for a bailout by other european countries. but that deal is so hated by greeks, the government fell. they will vote for a new parliament on sunday. the quo is will a new government abandon that bailout deal, undermining the euro currency and the european union. why would the greeks risk that?
clarissa ward told us just have a look at what austerity did to their health care. >> reporter: doctor chris rokkas other a u.s.-trained surgeon rarely sets foot in an operated room these days, bad news for georgia scambi's failing heart. >> she is at risk of developing a fatal heart attack at this point. >> reporter: if you inspector a hospital in america how soon would you have operated? >> the same day, within 24 hours. but, of course, we can't do that here. >> reporter: one week later, you're still waiting for the right-- >> one week later, yes. >> reporter: greece's health care system has always been inefficient. but now health care spending is down by 25%. drugs are in short supply. paychecks have been cut by a third. and the hospital can no longer purchase the equipment it needs, all part of an austerity deal that greeks have come to hate. >> the crisis has actually made a tough situation tougher. it never really was at the point
of where we worked well. but now we have serious shortages of essential materials. >> reporter: the emergency room was overflowing with patients who can no longer afford private doctors. but these are the lucky ones who still have their government-sponsored health insurance. in greece, if you're unemployed for over a year, or if you owe the government money in taxes, even in unpaid parking ticket, you can lose your health care coverage. hundreds of thousands of greeks are now forced to come to free clinics like this one for basic medical treatment. the free clinics are often run by charities that usually deal with refugee emergencies. now, they're taking in patients like anna sidiropoulou, who lost her insurance when her business went bust. "i believe that people would die in the streets," she said, "if it weren't for clinics like this one." has it yet become a life-or-death situation? >> i'm certain that it has. i can't pinpoint one or two
patients in this hospital who were actually harmed by this situation, but -- >> reporter: bubelieve that patients may have died as a result-- >> yes, maybe not in this hospital but somewhere in the country i'm sure pairs may have died as a result of this crisis. >> pelley: clarissa is in athens tonight. clarissa with the election on sunday, at one level it's a contest between those who would throw austerity overboard, and those who would keep ti wonder if you can tell which way the wind is blowing. >> reporter: well, scott, there is no polling allowed in the two weeks before the election, but from the people that we have spoken to on the ground, it really seems like it could go either way. certainly many people here strongly supporting the lowest wing coalition headed by the person who until two months ago was virtually unknown. they want an end to austerity. they want an end to corruption in the government. but many people feel the reverse-- the think the risk of
asking to leave the euro zone is too much of a risk. >> pelley: we'll know by monday. thanks very much. president obama and his republican challenger, mitt romney, were in the battleground state of ohio today with what amounted to a long-distance debate over how to fix the economy. first, we'll go to chief white house correspondent norah o'donnell. norah. >> reporter: scott, it has been a tough month of bad economic news for president obama. so today he tried to make the case that he needs more time. he also acknowledged that he and mitt romney agree on one thing-- that this election will be about america's economic future, but beyond that, he said they are offering two fundamentally different visions. >> of course the economy isn't where it needs to be. of course we have a lot more work to do. everybody knows that. the debate in this election is about how we grow faster. and how we create more jobs.
and how we pay down our debt. that is the question facing the american voters. >> reporter: the president's principal argument today was that a romney presidency would be a return to the economic policies of george w. bush. >> we were told that it was okay to put two wars on the nation's credit card. that tax cuts would create enough growth to pay for themselves. that's what we were told. so how did this economic theory work out? >> reporter: with echoes of 2008, mr. obama said he needed a second term to enact change, investments in education, infrastructure, and energy, and higher taxes on the rich to pay down the deficit. all things he has failed to achieve in his first term. >> yes, paying down our debt will require tough choices and shared sacrifice, but it can be done. and we'll be stronger for it. and what is lacking is not the capacity to meet our challenges.
what is lacking is our politics. >> reporter: and with that, the president challenged voterss to break the stalemate between these two competing visions, between his own and that the mitt romney and the republicans in congress. the question remains if that stalemate can be broken by simply elected mr. obama, scott, to a second term. >> pelley: norathanks. governor romney has a very different view and jan crawford was with him in cincinnati today. jan. >> reporter: well, scott, romney says the president has just run out of time and his ideas to fick the economy not only aren't working but in fact are making things worse. >> he's been president for three and a half years. and talk is cheap. action speaks very loud. if you want to see the results of his economic policies, look around ohio, look around the country, and you'll see that a lot of people are hurting, a lot of people have had some real tough times. >> reporter: romney has a fundamentally different approach for creating jobs, relying less on government spending and more
on encouraging growth in the private sector. romney would open up energy production to cut costs for manufacturers and create energy jobs. eliminate the president's health care reform law, which romney says hurts small businesses. and cut spending to reduce the dose. >> this is our time. we can either continue on a path to become more and more like europe with bigger and bigger government, taking more and more from the american people, directing our lives and telling us how to run our enterprises. if we take that path, we know where it leads. it leads to chronic high unemployment, like europe has. low wage growth, like europe has. and potential fiscal calamity, like we're seeing at the doorstep of europe today. >> reporter: now, romney has staked his campaign on the economy, on the principle of free enterprise and competition, and he says those aren't tired old ideas but they're ideas that made america great, a leader, as he says, in job corrosion and innovation and entrepreneurship
and, scott, he says they'll do so again. >> pelley: jan, thanks very much. be sure to tune in sunday. mitt romney will be bob schieffer's guest on "face the nation"." egypt's presidential election is set for this weekend but it was thrown into chaos today with two rulings by judges who were appointed by the ousted president hosni mubarak. their decision keep the military in power. alan pizzey is in cairo. >> reporter: the supreme court ruled that egypt's first democratically elected parliament should be dissolved. at the same time, the court delivered good news to this man, former prime minister ahmed shafiq. it struck down a law which would have bard him from office because he was part of the ousted mubarak regime. the ruling clertz way for a showdown between shaeffect, a remnant of the old order, and mohammed morsi, a member of the once-banned muslim brotherhood in a runoff vote this weekend. dissolving parliament hands the
military the authority to write the new constitution, and that will decide how much power the president has. that translates as only one thing in the view of professor khalid fahmy,. >> this is legal not because it's legitimate, but legal in the sense that the army has used the courts. >> reporter: a coup without tanks. >> they have given the right to arrest anyone resisting authority, halting traffic, damaging buildings, or harming government security, which in effect allows for a total clamp-down on protests. >> they have made it very clear what it is that they want. they want to turn back with a vengeance to the previous regime, and this is something that is just untenable. we cannot do this. >> reporter: the protesters who thought they'd won the fight for a free and fair system of government now find their revolution mired in a political
environment that is as muddy and polluted as the nile river. and the political maneuvering is far from over. the muslim brotherhood warned tonight its supporters would take to the streets again if it was necessary to prevent what it called a return to the old, corrupt ways. >> pelley: alan, thank you very much. american families see their wealth withering away. lance armstrong responds to doping charges. and the perfect catch that saved a perfect game when the cbs evening news continues. only your doctor can determine if your persistent heartburn is actually something more serious... like acid reflux disease. over time, stomach acid can damage the lining of your esophagus. for many, prescription nexium not only provides 24-hour heartburn relief, but can also help heal acid related erosions in the lining of your esophagus. talk to your doctor about the risk for osteoporosis-related
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with a foot mapping center. >> pelley: the great recession lasted 18 months but it wiped out two decadees of financial gains. this week, the federal reserve said the median net worth of american families fell to where it was back in 1992. seth doane found one of the families behind those numbers. >> you said your scheduled my change for work. >> reporter: rick snyder has proudly watched his sons, nat and adam, grow, while he's watched his own future, his nest egg, shrink. >> gained, i lose, and i thought i would be a lot better off by this point than where i'm at now. >> reporter: the divorced 54-year-old sells holiday decorations and makes $80,000 a year, which puts him above average for lehigh county, pennsylvania, where he lives. his 401(k) dropped 40% during the crisis.
it's up a bit to a total of $150,000. but his investments aren't keeping up with inflation. you're planning to retire. >> i'm planning and hoping, but financially, will i be able to? i don't know. >> reporter: he worries retirement might not come until he's 67. and maybe later. >> i'm not getting ahead. i'm not getting ahead at all. absolutely, that's what it feels like. i like to use the term i "flatlined." >> reporter: how long has it felt like you're flatlining? >> probably almost a decade now. from a decade ago, i'm really no better off from where i was then. >> reporter: a family's net worth is everything they own, minus their debts. the average family net worth today is $77,000, about the same as 20 years ago. the biggest reason is the collapse in home values. rick snyder's home is worth less than he paid. >> it attleboro taken as bad of a hit as some other areas but it's still down 15% to 20% from
what it was at its high point. >> reporter: near the high point in 2007, the average homeowner had $95,300 of equity in their home. that's the part they own free and clear. but in 2010, average equity dropped to $55,000. who is getting squeezed? the middle class. >> reporter: tim watters is a certified financial planner. >> there is a lot of disillusioniment and a feeling it will not get better. it brings people to tears sometimes. >> reporter: you have people in tears at a financial planning session? >> you do sometimes yes. we always think of america as being the place where the next generation does better. do you think that? do you still think that? >> i question that now. >> there you go. >> reporter: it's a question that many in his generation are asking these days as they revise expectations for their own futures and that of their children. seth doane, cbs news, pennsylvania. >> pelley: human rights
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gearing up for a fight against the u.s. anti-doping agency which accused him this week of using banned performance-enhancing drugs and conspiring to cover it up. he could lose all seven of his tour de france titles. today, armstrong's lawyers demanded access to the evidence, and armstrong questioned what he called the behavior and tactics of the anti-doping agency. more jeep s.u.v.s were added today to a federal investigation of gas tank fires. 15 deaths have been linked to the fires, caused by rear-impact crashes. the investigation now includes grand cher keys, cherokees, and the jeep liberty. baseball fans in san francisco last night witnessed perfection. giant pitcher matt cane struck out 14 on his way to a perfect game. a diving catch in the seventh inning saved cane's perfect game. there it is. it is the first perfect game in
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political scandal in u.s. history. watergate. now, the two reporters who led the paper's investigation, bob woodward and carl bernstein, say there was a lot more to it than we knew then. they talked to our senior white house correspondent bill plante. >> reporter: it didn't start with the 1972 break-in of the democratic headquarters in the watergate building. according to bob woodward and carl bernstein, it was part of a pervasive pattern of lawbreaking all through the nixon administration. >> illegal plans, illegal burglaries, really, the white house became a kind of criminal enterprise by the end of his presidency, to a remarkable extent that i think we didn't understand at the time. >> reporter: woodward and bernstein tracked down and pieced together their narrative of cover-ups, payoffs, and coconvert operations, much of it later confirmed in the president's own words, caught on his white house taping system. on the tapes they found nixon as early as 1971 talking about stealing evidence to blackmail
former president lyndon johnson. nixon believed that there were documents in the safe of a washington think tank proving that johnson halting the bombing of hanoi for political reasons. >> it was strategic on nixon's part, that anyone who was an opponent, anyone who was a perceived enemy, anyone who was d&after them. >> reporter: given the state of politics today, the standoff between the two partyes, the inability to compromise, why should anybody conclude that the idea that i have to win and you have to lose is any different? >> the partisan hostility, the gridlock that we experience today is, indeed, the acrimony runs very deep, but i have not seen any evidence that somebody's hired a burglary team or gone out to wiretap.
>> reporter: were there lessons learned? >> i think there's an increasing concentration of power in the presidency, so it needs to be watched really carefully. that's the ultimate lesson-- watch concentrations of power. how are we doing in the media? okay, but probably not good enough. best thing i ever heard was from richard nixon attorney general who later went to jail, he said, "watch what we do and not what we say." that pretty much tells us what we need to do. it's not that complicated. >> reporter: richard nixon spent the last 20 years of his life trying to minimize the circumstances which led to his resignation. wood bard and bernstein believe in the end the biggest tragedy was nixon his own worst enemy. bill plante, cbs news, washington. >> pelley: and that's the cbs evening news for tonight. for all of us at cbs news all around the world, good night.
the 40-year-old was found dead in his apartment just after midnight on saturday. he had recently opened up a dunkin' donuts just a few blocks from the reston home. police now say he was murdered by a family friend, the 20-year- old ali, a young man who helped him open up the dunkin' donuts. he is being held in prince george's county. no word on the motive yet. it appears robbery was the motive for a murder of a store owner in northeast d.c. she owned and operated the grace deli at 7th and 8th street. kristin fisher has our report.