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tv   Studio B With Shepard Smith  FOX News  January 7, 2013 12:00pm-1:00pm PST

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brennan. senator lindsey graham accused hagel of weak support for israel and not being naive in calls for negotiation with iran and hezbollah and some liberals criticized hagels' comment 14 years ago about a u.s. di diplt be openly gay. he has since apologized for that comment. president obama says he would be a perfect fit at the pentagon. >> he understands that america stands strongest when we stand as allies and as friends. as a successful businessman he know os even as we make tough fiscal choices we have to do so wisely. >> hagel would be the first enlisted soldier from the vietnam war to serve as secretary of defense. he earned two purple hearts and saved his wounded brother. some republicans are concerned hagel won't be enough of a defender of pentagon spending. >> the fact of the matter is i fear he is going to try to use senator hagel as a foil to
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pursue this hollowing out of the military that secretary panetta has raised concerns about by the draconian cuts and the is a questions teresa payton. >> hagel would be -- and the sequester. >> not as difficult ahead for john brennan. >> unlike tolikelikely to drawe criticism. if confirmed it would be a home coming. he was considered for the cia post in 2008 but wealth drew his name to avoid contentious questioning over the agency use of water boarding and so called enhanced in tare gation techniques which eight time he said he opposed. he public aapologized for missing intelligence over the so called underwear bomber and there will be questions over the use of drones to target
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al-qaeda leaders. he was the first administration official to publicly acknowledge that and that has drawn criticism from some of the president's critics. >> shepard: bring in michael ohanley now. hello. >> headquarters, shepherd. >> shepard: let's speak about chuck hagel. what is really at the bottom of this? >> well, you know, think you summed it up well in the earlier spot. it is not just that people have specific disagreements with him on iran or on israel. but i think many republicans see him as a man who sort of strayed from the flock. sometimes you take the criticism most strongly from your own people if they feel like you haven't been true to the cause so to speak. senator hagel his defenders and his fans and i think i'm one of them would say he displayed admirable thought.
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kit there has been some issues i will take the iraq surge for example where he was against it at the beginning. a lot of us were dubious about it at the beginning but one isn't quite sure if he revised his views once it clearly succeeded in its own military logic. itle be interesting to see what he will say in the confirmation hearings. that will reflect to which he is empirical and open minded and open to new evidence. those are some of the questions he will have to confront. >> shepard: some are making the argument this is a man who will bring into the public discourse the failures in iraq and afghanistan as they might relate to anything going forward with iran. that he is not going to forget what happened there and suggest maybe that it be brushed under the rug but instead use that as our guidance for things to come and that it has been suggested
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makes neocons nervous. >> i do think that senator hagel would appear to be more skeptical of the use of force against iran not coming months than some people. no one wants to do it but a lot of people feel it is getting to be latino in the game if we want to -- late in the game if we want to prevent iran from getting a nuclear bomb. i think it would be a healthy kind of conversation because ultimately president obama decides what the administration is going to do on the issue. president obama is pretty clearly committed to prevent iran from getting the bomb and ultimately accountable. i'm not so sure that we should worry that much those who may support president obama that hagel s somehow going to slow down the whole debate or prevent a credible threat of force. obama gets to make that call. i think it is healthy that senator hagel would introduce new perspectives and genuine concern about where this war could go if we choose to start it. not that we have any good options in iran. he could be a useful voice at a time when a lot of washington seems to be developing a
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conventional wisdom we may have to strike iran pretty soon. >> shepard: we will see how brutal the confirmation hearing is and if he is weakened afterwards. thank you. >> thank you. >> shepard: the law make ares have two months now you to reach a deal on raising the debt limit or the government could start defaulting on its loans. that could put the entire world economy into a tail spin analysts tell us. republicans and democrats say they want to avoid reaching the debt ceiling deal at the last minute like we saw with the fiscal cliff fiasco and seems like everything in recent memory. republicans are saying they want spending cuts attached to some deal and democrats say spending cuts should be a different issue. >> if you raise the debt ceiling by a dollar, cut spending by a dollar. that is the way to go forward and we need a budget. our democratic friends haven't passed a budget in three years. >> the debt ceiling is about spending that has already occurred. you are going to say i'm not going to pay my bills unless
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you stop being stuff? well, then stop buying stuff so you don't have future bills but right now we have to pay the bills that have been incurred. >> shepard: the president said on saturday that he will not compromise over raising the debt ceiling. won't even put that on the table. shannon bream with the news live in washington this afternoon. how you is this strategy work out for republicans, shannon? >> shannon: the president says if they refuse everyone from business owners to average americans will suffer but republicans are calling his bluff saying the debt ceiling gives them leverage that will force democrats to get serious about spending cuts and entitlement reform. here is house republican jim jordan. >> let's do it for a change instead of saying oh, give us more revenue and we promise we will cut spending later. give us more borrowing authority and let us run up the credit card more. we promise we will cut -- this is lucy and charlie brown on the football and the american people are saying we are not going to try to kick it this time. >> shannon: whether or not the president wants a debate the republicans say he will get
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one. >> shepard: what about the possibility of more tax increases. pelosi was suggesting that is on the table? >> shannon: republicans say they have given the white house hundreds of billions in new revenue and time to handle the other hey! did you know that honey nut cheerios
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sarah palin. >> shepard: the banks are finally going to have to pay. ten major banks have agreed to settle claims that they foreclosed on homeowners who they should not have foreclosed. wells fargo, citibank and chase and bank of america. they will pay the feds $8.5 billion. it covers a big range of abuses including bad paperwork and botched loan modifications that led to families losing their homes. some of that cash will go to the homeowners that the banks
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unfairly booted. the rest will go to help people currently in danger of losing out to foreclosure. it is worth pointing out here the $8.5 billion settlement is a drop in the bucket for the big banks. last year they had assets totaling more than $9.5 trillion. this is just billions. the fox businessetwork geri willis is with us. >> 365,000 people filed for this in the first rity ration. $5.2 billion as loan modifications and another $3.3 billion in direct payments to homeowners. >> and i don't know why the numbers don't correspond but they don't, i'm sorry. >> apologies. >> shepard: why did the regulators agree to this amount? >> they say people will get their money more directly and faster. the earlier settlement, 356,000 people filed for it.
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a small amount of people eligible. they are hoping to get more money out to people by doing it this way. getting rid of the mortgage by mortgage review and they are just i think -- they haven't said how they will do it but sounds like they will just write checks. >> shepard: fannie mae is another matter and bank of america agreed to a settlement with fannie mae. >> that's correct. bank of america paying out $11.6 billion. all about country wide financial accused of the same kind of dealings you described. this ends ten years worth of bickering, yelling, filing of lawsuits, it as big move for bank of america. >> shepard: from reading around the fox business website today it sounds like for them it is a good deal. >> i'm sure they are eager to get out of it. they were forced to buy countrywide financial and found out just how bad the mortgages were. exactly. >> shepard: thank you, happy new year.
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the u.s. supreme court set to hear a pair of cases that could change the fate of same-sex marriage laws in the united states. the high court scheduled arguments for late in the month of march. first over the california disputed constitutional ban on gay marriage called proposition 8 and the second case the challenge of the so called defense of marriage act a federal law that defines marriage between a man and a woman only. this could be a major test of same-sex marriage laws coming just months after three more states legalized gay marriage bringing to nine the total of u.s. states as well as the district of columbia which allow same-sex marriage. secretary of state hillary clinton back on the job today and she has a sense of humor about her recent problems. hamid karzai set to meet with president obama about the future of his country. he already said who he blames for the corruption and militant violence in afghanistan. he blames us.
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>> shepard: secretary of state hillary clinton is back to work today after a series of serious health problems that handed her in the hospital. according to the state department, secretary clinton first took time off after a stomach virus and dehydration sparked a fall that waive her a concussion. seems a bad one. some republican critics were is suggesting she was playing up illness to avoid testifying on the deadly attacks in benghazi, libya. doctors later discovered a blood clot in her head, not in her brain but in her head. the state department reports the secretary is committed to testifying on capitol hill. day one, how has it been going
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for secretary clenton? >> good afternoon. according to aides, secretary clinton s fully recovered and fully engaged in the department's business. the 9:00 hour this morning brought a meeting with some 75 aides. assistant secretaries. undersecretaries. special envoys and other aides. they greeted secretary clinton with a standing ovation. they then announced washington is a contact sport and presented his concussion prone boss with a large gift box. >> and inside was a football helmet with the state department seal. lots of good padding. and also a football jersey that said clinton on the back and on the front it says number 112 which symbolizes the number of countries that she has visited as secretary of state. and she loved it. she thought it was cool. but then being hillary clinton she wanted to get right to business. >> and that meant dealing with her aides to prepare for the
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upcoming visit by the afghan president hamid karzai later this week. >> shepard: i'm sure they talked about a lot of things but i know benghazi, libya was another discussion. >> she used the occasion to renew orders to aides they should get cracking on implementing all of the recommendations for enhanced security presented by the state department accountability review board which investigated benghazi and wants them all to be in the process of being implemented by the time she steps down later this month. here spokesman indicated she remains committed to testifying about benghazi before the congress while she is still america's top diplomat. >> she is prepared to do it in open committee if that is what they would like. we are still talking to them. >> all indications are are, however, that hillary clinton, america's most traveled secretary of state in the nation's history is fen initialed with overseas travel
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in that capacity. >> shepard: james rosen, thank you. the afghan president hamid karzai is set to is sit down with president obama in washington this week. according to the analysts the biggest topic of discussion will likely be the u.s. force that remains inside afghanistan after the military starts its drawdown next year. the afghan president has insistd that all remaining american soldiers should follow afghan law while president obama has called that a deal breaker and for are any potential security agreement. robert young peloton is with us. he has just come back from afghanistan. he is an author and filmmaker. he was spending weeks with u.s. special forces hunting taliban militants. good afternoon. >> hi, how are you doing? >> shepard: he blames us for everything. why in the world would the president talk to him? >> you have to watch his game. he is looking forward to releasing all of the 3,000 or so prisoners while u.s. forces
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are busy putting them in jail. he knows he will not get the north so he decided to bring the taliban back into the government. these things won't be discussed too openly as he begs president obama to keep troops there and i think he will have to relent on the u.s. troops being is subject to afghan law because we will just pull out of there. >> shepard: the goal has been the most recent goal in a series of goals in afghanistan has been to put afghan security forces back in charge of things. you have are been over there for five weeks looking at it. how is that going? >> very badly. the army and the police are one of the main problems they have because they are causing problems in the more remote regions. when i was there we had a group of u.s. trained afghan police battling u.s. trained afghan military. so the first steps of the civil war are beginning and happening with those type of troops. >> shepard: pakistan, china and iran will play major roles over there you said. his goal now is just to get as
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much money as he can? >> well, you know, i was talking to the general who runs an area in the north there and he said why are the americans letting the communists in. hamid karzai is signing deals to protect afghanistan. he wants us to protect them and let other people grab all the wealth that is still to be tapped. >> shepard: there has never been any real indication the afghan forces were able to do much of anything. fewer than 5% of people with read or write. >> i was told that the afghan forces trained by the russians were better are trained on the afghan forces they have now. they are very good but they don't have air support and we have to provide all of the major intel and observation and air lift and logistics that they need to fight the taliban.
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>> shepard: to what end? >> i really don't know. hamid karzai is doubling down on the taliban and that means the south will love it but the north will not be very happy. >> shepard: robert young peloton in san diego with the broken record story of afghanistan. thank you. the first witnesses took the stand today in the case of the colorado movie theater shooting. prosecutors warned the victims and families that the dramatic testimony might be too much for them to bear. in fact, two police officers broke down in tears today as they described what they encountered at the theater. details next. recent shooting rampages have high profile lawmakers demanding a crackdown on who can own guns once and for all. that is coming up as we approach the bottom of the hour and the top of the news. [ lisa ] my name's lisa, and chantix helped me quit.
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>> shepard: i'm shepard smith. getting the first dramatic testimony in the colorado movie theater massacre in a hearing that could mean the difference between life and death for the suspect in the crime, james holmes. theprosecutors will decide aftr this goes on whether to decide to go for the death penalty after the week's proceedings. prosecutors are for the first time giving a detailed indication of exactly what happened during the chilling crime. how they say the suspect ambushed a sold out screening of the new batman movie back in july, tossing gas canisters
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filled with choking smoke and shooting panicked movie goers as they tried make an escape. in all, killed 12 2 12 people d wounded dozens more. alisa with the news. they got off to a graphic start today, didn't they? >> they did, shep. and two veteran police officers broke down in tears on the stand as they described the scene they came upon once the shooting stopped. a police officer testified as he went into theater nine he found people screaming help us, help us. he found cell phones ringing and an alarm. he choked up when it came to the moment another officer carried 7-year-old veronica
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moser sullivan to him. he tried to compose himself describing handing her off to be taken outside. they decided to start taking victims to hospitals via their are own patrol cars because ambulances were not on scene yet. once the testimony was complete there were family members and victims in the courtroom and they were hugging the officers and crying and thanking them. holmes sat in the courtroom today with no expression. >> shepard: what do they say about the suspect holmes? >> the officers described coming upon a scene in which they a thought they saw a enforcement officer in a helmet and gas mask but as that person who was standing in front of a car stood there doing nothing amidst the chaos they realized it was something different completely and moved in to arrest james holmes. he testified that he asked holmes who is helping you and he said holmes looked at me and smiled. the prosecutor asks what kind
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of smile? >> the officer answers leak a smirk. they described holmes during the moments as being relaxed and calm and staring off into the distance and not reacting normally. >> shepard: alicia acuna, thank you. what is the hearing really all about? this isn't the trial. this is a hearing. >> this is a preliminary hearing. normally the state doesn't want to hold a hearing like this because they basically have to show their cards and put on the stand their witnesses and present their evidence and the defense can cross examine it to prove to the judge that they have a case, that they have enough evidence to require the court to summon a jury and to force the defendant to go through a trial. they don't have to prove the case. they have to demonstrate that they have reliable credible evidence lawfully obtained which if believed by a jury could convict him. why would the state do this you might ask? because the state may not want to try this case.
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the state may want to persuade the defendant and his lawyers that he would be best off pleading guilty and going away for the rest of his life rather than exposing him isself to this horrific horrendous gut wrenching testimony. >> shepard: this is not a matter of anything else but do you you you spend the rest of your life in prison or get the death penalty. for the jury what they have to decide is what his mental state, not now but at the moment he was committing the crimes. >> there is no jury in the room. we don't know who the jurors will be or if there will be jurors. there is just the judge there. a couple of forces at play here. the defense wants to see how strong the state's case is. the state is happy to let the defendant see how strong it is. they hope they will see he it is so strong the defendant doesn't want to go through this. the defendants may want their
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own plaintiff to plead guilty because they don't want to go through this. the other thing to look at s this guy is obviously seriously, seriously, seriously disturbed. can a jury even determine whether or not he was of sound mind at the moment he committed the horrific crime. >> shepard: seems almost criminal to put the families after all they have been through to hear details that we have not even known. >> we have not heard details. what alicia report is among the most graphic i have heard. this s yet another factor at play here. do you really want to force everybody to go through all of this again or might it be better for all involved if the person who obviously planned and plotted and pulled the trigger agreed to go away for the rest of his life. i think this s the beginning of a long painful journey for everybody involved in this
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case. >> shepard: they have already are gone through so much. >> yes. >> shepard: the gun control debate has gained momentum in light of that shooting and the shooting that killed 20 first graders and 6 adults in newtown, connecticut. that prompted the white house to form a task force aimed at curbing gun violence to do something to stop this clear pattern of gun violence. and vice president bide season set to present his recommendations later this month. over the weekend chuck schumer and kirsten gillibrand your honored the vicrestructuringede president to include a crackdown on trafficking and tighter background states. they want states to make it more difficult for felons and drug abusers and mentally ill to obtain firearms. who could be against that? of course, one democrat is warning against extreme measures and some republicans are saying more restrictions won't stop the mass shootings.
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mike emanuel is in washington. what are are the arguments from those who want more gun control, mike? specifically, those who want new action? jay carney at the white house a few minutes ago said the president will move forward in a timely fashion after the vice president's group makes recommendations. carney says many americans would disagree with putting off action following the newtown, connecticut tragedy and allies of the white house say the time to get this done is now. >> the federal government has an obligation to act and prevent tomorrow's senseless deaths by ensuring that guns stay out o of the hands of criminals and those who are are dangerously ill. we should be able to find reasonable common sense reforms that can preserve our rights and protect our families at the same time. >> we expect the vice president's proposals by the end of the month but jay carney would not be more precise with the timing. >> shepard: what about concerns from the other side on the issue, mike? >> there are republicans and
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rural democrats prosecond amendment worried about washington going too far. >> i think you need to put everything on the table. what i hear from the administration and if the washington post is to be believed that is way in extreme of what i think is necessary or even should be talked about. and it is not going to pass. >> i don't think the federal government has any business having a list of law abiding citizens who choose to exercise their right to keep and bear arms. >> senator mitch he mcconnell says the biggest problem the country has at the moment a spending and debt and those fiscal issues will dominate through march. they are warning no other issue will have the kind of priority that spending and debt will have in the next few you months schembechlemonths. >> shepard: thank you. while his troops killed hundreds of thousands of people syria's president had not made
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a public address in half a year. until yesterday. details ahead. [ female announcer ] today, jason is here
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>> shepard: there is breaking news now on fox news channel and first on fox news this afternoon live pictures coming in from san francisco. there has been a tanker -- an oil tanker the one you see here it is my understanding has struck the bay bridge. the san francisco oakland bay bridge. an oil tanker, more specifically according to ktvu fox 2 for the bay area it struck is support for the bay bridge just about 12:20 this afternoon. about 15 minutes ago california time. this brings back awful memories for the people of san francisco in the bay area in general from a collision that happened in 2007 when a 900-foot container ship struck that same bridge and more than 53-gallons of fuel oil poured into the bay, killed by local determinations more than 6800 birds and harmed
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a herring spawn that winter. closed the beaches to swimmers for weeks. this one, though, there are no signs of any oil leaking at all. the coast guard is responding. the tanker appears to be intact. whether there s anything more to this, we don't have any way to know yet until the inspectors get throughout. at first glance at least there does not appear to be an oil spill. the headline anneal tanker struck a support for the san francisco oakland bay bridge. any new information from the coast guard we will ring to you you reit away. the syrian president took a moment away from killing his own people to give a rare public address. his first speech since june and is assad promised to keep fighting the rebels whom he described as terrorists and religious extremists and
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murderous criminals and activities say the speech did not do anything to stop the fighting. the united nations reports the syrian civil war has led to the deaths of more than 60,000 people since march of 2011. jonathan hunt is with us. u.s. officials very critical of bashir al-assad's speech. >> a broken record is exactly what he resembles right now. in his speech that the u.s. officials and others believe is meaningless dialogue and criticizing the rebels as criminals and terrorists. despite the fact that the u.n. now reports 60,000 syrians have died in the ongoing civil war are there' peers to be no change in -- there appears to be no change in u.s. policy. >> i don't want to get into a numbers game. it is a horrible brutal tragedy what is going on in syria but
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it is the assad regime that bears fundamental responsibility which speaks to the callous attitude he showed in th speech. he could silence his own guns and change the situation. >> the hope that he could silence his own guns when shows absolutely no inclination to do so. >> shepard: similar reaction from the united nations and in addition the israelis in the middle of a political season but benjamin netanyahu says they are going to put a fence up. >> they are concerned about a potential flood of refugees and flash points on their border saying they are are going to build a fence. the u.n. secretary general said he was disappointed with the speech by president assad and went on to say it is critically urgent that the international community comes together to assist the syrian people build
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as early as possible in 2013 a new and democratic syria where the rights of all groups and minorities are properly protected. urgent that the international community acts together. that a message that russia has to get on board and condemn assad once and for all. talking about broken records back where we were one year ago. one of the world's top internet companies says he wants to look at social media in a country where millions of people have nothing to eat. the google executive chairman eric schmidt arrived in north korea. u.s. officials don't do this but they went anyway. representatives say he wants a first hand look at the communist nation economy and social media. he is the highest profile u.s. executive to visit north korea
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since kim jong uhm took power a year ago. the state department says the visit is bad timing and, of course, unhelpful. officials also say they are holding an american citizen behind bars, something ambassador richardson says he will bring up during his trip. trace gallagher has the details. ambassador richardson, does he think he can bring this american home? >> he has been to north korea six times over the past 20 years and has freed americans before. this is a man named kenne bay of north korean descent. he takes visitors and tourists into north korea and now is being accused of committing hostile acts against the state that could hand him in a labor camp for up to ten years. governor richardson doesn't know if he can free the man this trip but he can certainly get the process rolling. listen. >> i have been to north korea is several times negotiated with them in the past with is
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success. and my hope is that we get an assessment of north korea under the new leadership there. >> he admits he does not control the trip. the itinerary is controlled solely by the north koreans. >> an interesting trip on behalf of the google executive. after all that would be a market i suppose for google? >> he many times said he would like to bring internet access to the entire world and you look at the map and google does have offices in russia and china and south korea. those are the three countries surrounding north korea. as it stands right now, north korea does not allow access to the worldwide web only to an in country that some call a propagandaist internet. this could be as you say a profitable market and schmidt
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reportedly will also give a donation to the north korean government. unlike that i that months of used for food.ll be >> thanks a lot. tonight, i don't know about your house but at my house it is the fighting irish and crimson tide in college football's biggest stage. one team could make history. the other look for a return to glory and a nation wishing the sec would go away. it won't. we'll get into that next on studio b.
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>> shepard: back to the striking now of the bay bridge in san francisco. some video here of the area that was struck i'm told by an oil tanker. only a 95 footer but an oil tanker nonetheless. i reported it happened about 15 minutes ago. turns out it was about an hour and fifteen minutes ago. 11:35 or so local time in the
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bay area. no signs of any oil spill. the coast guard on the way. struck the westernmost tower of the western span of the bridge according to authorities. no change in car traffic on the bridge itself. and it looks like in the early going now that is where it hit and it looks like there s no major damage. a little bit of damage on the starboard side of the oil tanker. any updates on this we will bring it to you right away. a huge prize up for grabs tonight in the the bcs national championship game. number one notre dame and number two alabama going to go head to head in one of the most anticipated bowl games really in many years. two of the most popular storied programs in the country. there has been a lot of hype. after all, e is spn is involved. can it live up you to it? jim grey is with us this afternoon. great to see you. >> great to be with you. >> shepard: i don't know if notre dame can keep up with them or not.
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nice to see a good game. do you think we will get one? >> everything would indicate not. alabama is much better team. notre dame give up 10.3 points per game and alabama 10.7 but alabama hass competition has been so much better. has been the luck of the irish when you you look at how they got in here. the field goal kicker messed up in triple overtime and they beat pittsburgh and got lucky in a game beating stanford. purdue took them to the limit but alabama had a lucky route as well. oregon and kansas state both lost so here we are. >> john: football from teak a&m is the only one that seemed to get anything done. 'ole miss played pittsburgh. although they didn't have star running back blew them out of the stadium. wonder how a team could that
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could play so close with that team could end up where they are? >> that is how this is. when you look at college football it is so topsy-turvy and upside down. hopefully they get this rectified when the new plan comes into play but this is one big long exhibition season basically determined by a computer and nobody can really figure out because how can you say that one team's loss is more important, oregon's loss was worse than the loss that alabama had and they are in this now and the competition and the whole thing s just a mess. as we get on with this it will become more like the ncaa college basketball tournament. we won't have 64 teams but we will have four teams and about it will be much better and much defections rent and they can preserve the bowls. as far as now the teams got to where they are, i know it is killing you with 'ole miss. >> shepard: well -- >> any time that alabama is in there it is probably eating away at you but the rest are of the country will sit here and see if nick saban can join nick
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haley and unmckay and john brie want to win four national championships. >> shepard: the only time i said go tide is around the bowl and down the hole. not on this night. on this night conference allegiances are there and i don't know how anybody from the sec could be for notre dame. i don't know how you could. >> notre dame had a storied history against alabama. paul bryant is 0-4. never beat notre dame. captioned by closed captioning services, inc. ♪ you know my heart burns for you... ♪
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i'm up next, but now i'm sging the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! >> shepard: the dow about to finish. down about 53 on the session. not pad. i will see you tonight for "the fox report" at 7:00 eastern and 6:00 in oxford. now, here comes cavuto. >> neil: thank you. here is all you really need to know about why washington still has serious spending problem. no less than the president of the united states refuses to think it does. welcome, everybody.
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i'll neil cavuto and now we know, no big deal. the whole spending mess no mess period. to hear house speaker john boehner replayed the whole thing to the "wall street journal" steve moore. the president says the country does not have a spending problem. told boehner to his face at the white house that it is all fiction. spending isn't the problem. healthcare is. get that under control the president reportedly says pretty much everything else is under control. we will talk to steve moore in a is second about what boehner said after this. it might explain this. nancy pelosi pushing for still more revenues this week and republicans demanding dollar for dollar tax hikes to spending cuts. what makes you think we will make any progress wielding this out of control when we are not. steve, why less won't be more.
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steve this is fascinating. tell me exactly what went down. >> i did the interview with speaker boehner on friday over in the capitol and one of the first things that he told me in the meeting. i said what was the most interesting thing and shocking thing about the five weeks of negotiations in the oval office with president obama? and he said at one point the president turned to him and said you know, john, we don't have a spending problem in this country. and the speaker told me he said his jaw sort of dropped when the president said that. my jaw dropped when the speaker told me that story. and, you know, it gets to the whole issue of why there was so little progress in the negotiations. the first stage of recovery if you are an addict s to admit you have got a problem. if the president doesn't even acknowledge there is a spending problem you have real issues in terms of moving forward. when says that the healthcare spending is the problem, what the speaker said to him s of course, mr. president, we have a healthcare spending problem but he said you just made it a


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