"American Dream Crisis: Clinton's Housing Plan; Richardson's Warning to Dems: "Stop the Bloodletting"
WOLF BLITZER, CNN ANCHOR: To our viewers, you're in THE SITUATION ROOM. Happening now, the housing crisis this is the very heart of the American dream. So Hillary Clinton is putting it at the center of her new economic plan, announced today. But is it really her plan? He's already lost to Hillary Clinton in several of the biggest states. Can Barack Obama beat John McCain in the general election? I'll speak with a key Obama supporter the former U.S. senator, Gary Hart. Detroit's mayor and his former chief of staff charged with felony counts tied to the alleged cover-up of a sex scandal. All that happening today. I'm Wolf Blitzer. You're in THE SITUATION ROOM. Hillary Clinton focusing in on the number one issue facing voters today -- the U.S. economy. As she plots strategy today in the crucial big state battleground of Pennsylvania, Clinton is taking direct aim at the mortgage mess. But can she take the credit for her clean-up plan? Let's go live to CNN's Dan Lothian. He's following this story for us in Philadelphia. What's this all about -- Dan?</s>DAN LOTHIAN, CNN CORRESPONDENT: Well, first of all, Wolf, you know that Philadelphia is a very -- Pennsylvania, rather -- a very important state for the Democrats -- 158 delegates up for grabs in the primary, which comes up on April 22nd. So that is why there is so much talk about the economy here. And today, Senator Clinton was talking about the economy and pointing out to voters here and, for that matter, voters across the country, that when it comes to fixing the economy, she's the one to get the job done. She laid out what she calls sort of a four-step plan to repairing not only the economy, but also the mortgage crisis. One of the issues on that list she pointed out was this emergency working group, which she wanted to get President Bush to get together some of the top financial experts, like Alan Greenspan, to sit down, review all of the possible options in order to repair the financial crisis. She also brought up something that she laid out there on the campaign trail last weekend. That is laying out $30 billion to help states and local communities to keep a lot of those folks who are in the midst of foreclosure from losing their homes. What Senator Clinton also pointed out is that a lot of Americans -- a lot of voters have lost confidence in the economy.</s>SEN. HILLARY RODHAM CLINTON (D), PRESIDENTIAL CANDIDATE: Our housing crisis is, at heart, an American dream crisis. Your home isn't just your greatest asset, your greatest source of wealth, it's your greatest source of security. It's what anchors you to your neighborhood and your community. It's the center of your family. For the past seven years, we've had a president who stands up for the special interests, for the insurance companies and the mortgage companies and Wall Street. Now it's time for a president who stands up for American families.</s>LOTHIAN: Now the Obaman -- Obama campaign, rather, points out that a lot of what Senator Clinton laid out today has been said before. In fact, they say that they have said a lot of this before. And they point out, as for like this working group that she's talking about, well, they say a year ago they asked the Federal Reserve to look into something quite similar. So, essentially, they're saying nothing new here today -- Wolf.</s>BLITZER: All right, Dan. Thank you. He's a friend of the Clintons turned Obama supporter and he's warning both sides to cut it out. New Mexico Governor Bill Richardson says part of the reason he decided to endorse Barack Obama was to try to do something about the rising bitterness in the Democratic campaign. He told CNN how he broke the news to Hillary Clinton.</s>GOV. BILL RICHARDSON (D), NEW MEXICO: It was heated. She was very gracious. She said she was disappointed. She asked me my reasons. I mentioned the race speech. I mentioned that Obama is somebody that's very good at bring people together and this is what the country needs, that it was a very tough decision. My worry now is this enormous fight between both of them, the divisiveness, the heated rhetoric is going to hurt us. And we need to stop this bloodletting before we get to the Democratic convention. And, unfortunately, I see no end in sight.</s>BLITZER: Senator Clinton certainly is fighting on. But there are some who say it's destined to be a losing battle for her. Let's turn to CNN's Carol Costello. She's here in THE SITUATION ROOM watching this story for us. So why do some people feel that she simply can't win the Democratic nomination?</s>CAROL COSTELLO, CNN CORRESPONDENT: Well, to put it simply, Wolf, the math. I mean there are those who say it would be a stunning turnaround if Hillary Clinton takes the lead in the popular vote and in pledged delegates and gets the nomination. Just don't tell that to the Clintons.</s>COSTELLO (voice-over): Hillary Clinton keeps on fighting. She's in Pennsylvania, her husband in Indiana. It's an exciting scrappy fight, but for what? More than one political observer is saying hello, Hillary -- barring a miracle, it's over.</s>JOHN HARRIS, POLITICO.COM: We're in the seventh or eighth inning of a baseball game. And if you were listening to the radio, you might think this game is 5-4. But I think, actually, the reality is it's probably more like 10 to two.</s>COSTELLO: Before you dismiss this Clinton fans, let's look at something that doesn't lie -- the numbers. Right now, Clinton is losing to Obama in the popular vote, 47 percent to Obama's 49 percent. Eight states, Guam and Puerto Rico have yet to hold primaries and caucuses. For Clinton to bridge the gap, she must win 56 percent of the popular vote in every state. Clinton is also losing in delegates, including super-delegates. She's behind by 137. In those places yet to vote, 566 delegates are up for grabs. If -- and this would be unusual -- if Clinton manages to win 60 percent of the vote in every state left, she would have a net gain of 114 delegates. Good, but not great, since even after that amazing feat, Obama would still lead by 23 delegates. But keep in mind, Obama still would not have enough delegates to lock up the nomination before the convention. On to just the super-delegates, who can vote either way, no matter how people vote. Of the super-delegates who've made their choice known, Clinton leads by 34. The big question is if despite lagging in the popular vote and in pledged delegates, can Clinton convince super-delegates to put her over the top?</s>COSTELLO: I know your head is spinning, isn't it? Now the Clinton camp says if Senator Clinton can prove she can continue to win the big states, like she did Ohio and Texas, and win Pennsylvania and Indiana, and convince the super-delegates she is more electable than is Barack Obama, then the super-delegates could put her over the top and she'd win the nomination.</s>BLITZER: Here's the bottom line. We have to wait and see what happens, because neither of these candidates is throwing in the towel -- not yet. There's a lot more to go on. Carol, thanks very much for that.</s>COSTELLO: Sure.</s>BLITZER: And that's certainly the argument that was made here only a little while ago by a key Clinton supporter, the Democratic strategist James Carville.</s>JAMES CARVILLE, CLINTON SUPPORTER: Let's run this thing out in Pennsylvania, North Carolina, Indiana, I think Oregon, West Virginia, Kentucky and Puerto Rico. And let's let these Democrats -- you know, it's not up to Politico.com to determine who the Democratic nominee is. It's up to Democratic voters. And, at the end of this process, if it's clear that Senator Obama has got the nomination -- again, this is one corporal who will sew his Chevrons back on, salute and fall in line. But I'm not going to substitute my judgment for these Democrats. And I think it is a terrible mistake for this party to play a game only 36 and 30 -- 36 minutes and 30 seconds of a 40 minute game here.</s>BLITZER: For the latest political news any time, you can check out our Political Ticker, by the way, at CNNPolitics.com. The Ticker is now the number one political news blog on the Web. And if you go to The Ticker, you can read my latest blog post, as well. CNNPolitics.com. Let's check back with Jack Cafferty. He's got The Cafferty File -- Jack.</s>CAFFERTY: You know, in Texas, they have that two step system -- the primaries and the caucuses. And when it was all said and done, she didn't win Texas. He did.</s>BLITZER: Well, she won the primary, he won the caucuses.</s>CAFFERTY: He came out of that Texas experience with more delegates in the Lone Star State than she did. I don't know how you say, you know, who the winner is, but he got more delegates than she did. The race between Hillary Clinton and Barack Obama getting nastier the farther behind Senator Clinton falls. Bill Richard, the New Mexico governor, who endorsed Obama on Friday, being compared to the traitor Judas. Clinton supporter CNN political analyst James Carville said Richardson's backing of Obama "came right around the anniversary of the day when Judas sold out for 30 pieces of silver." Richardson served in President Bill Clinton's administration. He's now endorsing his wife's rival. Richardson says he's still the Clintons' friend, refuses to "get in the gutter," like some Clinton people are doing. Richardson says that many in Clinton's camp think they have a sense of entitlement to the presidency. Meanwhile, Pennsylvania Governor Ed Rendell says Obama is trying to have it both ways -- accusing his campaign of complaining about negativity while frequently going after Hillary Clinton unfairly. Rendell, who is a Clinton supporter, points to remarks by an Obama surrogate, General Tony McPeak, who compared Bill Clinton to Joe McCarthy -- the famous communist witch hunter of the 1950s. McPeak was reacting to remarks by former President Clinton questioning Obama's patriotism. On Friday, Clinton said: "I think it would be a great thing if we had an election year where you had two people who loved this country," suggesting that would be a match-up between his wife Hillary and John McCain. With more than four weeks to go until the Pennsylvania primary, the Democratic Party continues along the path of self-destruction -- giving John McCain extra time to read up on the economy and learn the difference between Sunnis and Shia. Here's the question -- which of the two Democratic campaigns, Clinton's or Obama's, occupies the moral high ground? Go to CNN.com/caffertyfile and you can post a comment on my blog -- Wolf.</s>BLITZER: Jack, thank you. See you in a few moments. A key Clinton supporter touching off a political inferno by likening the latest endorsement of Barack Obama to a Judas-like sellout of Hillary Clinton. Has the bickering reached a new low? I'll ask a key Obama supporter, the former senator, Gary Hart. He's standing by live. It's looking more and more as if their votes won't count when all is said and done. Many Florida Democrats are furious at their punishment for holding an early primary. Will it come to haunt the party in November? And Detroit's mayor, Kwame Kilpatrick, now facing felony charges for allegedly lying in a court about a romantic affair. We'll hear his response and a lot more, right here in THE SITUATION ROOM.