>> i'm phil mattingly. mark: and i mark halperin, and "with all due respect" to the others nominated for an emmy -- come on. it's jon hamm's time. tonight, hillary, bernie, and a filling in the someone at arst, donald trump event last night called president a muslim and trump did not correct them. i like thishis man, guy. >> man, ok, we have a problem in

this country called muslims. we know our current resident is one. we know he is not even american. -- we know our current president is one. anyway, we have training camps. winky we get rid of them? that's my question. will be looking at a lot of different things. a lot of people are saying bad things are happening out there and plenty of other things. that mysterious question and he also said other offensive things in his question to trump that mr. trump did not address directly. then there is the story that he was not accurate at the debate on wednesday when he denied jeb bush's claim he tried to get casino gambling in florida. taking a lot of heat from other candidates. phil, as we head into the weekend, can either of these two things bring about what the establishment desperately wants, the beginning of the end of

donald j. trump? end ofredicting the trump has been a great way to look like a fool. but if they can make clear what they have been saying behind the scenes for a while, these people that donald trump is attracting to the campaign, we don't want him there. allor bush, that has been day long. he has gotten a clean shot to go on offense. i think that there are two key moments. but i do think that this is the moment people will turn to. thing, think the florida trump has some wiggle room on. by not correcting the guy saying that the president is a muslim -- not that there's anything wrong with that, but it's an accurate and for some people it

would be a negative. he is in a box now. this will come up again. not so much the issue about not correcting the guy. will he admit that he was wrong in being the leader of the birther movement or not? that puts them in a tough position. phil: were you surprised by the campaign's initial response? feel they usually do not the things head on. so, no, i wasn't. hillary clinton did her first live interview, wolf blitzer doing the duties there. in both instances, the candidate executed what we call evasive maneuvers. >> what would you say was your number one accomplishment as secretary of state? mrs. clinton: there is a long list about what i have done. you can read my book "hard aoices," how i negotiated cease-fire between israel and

hamas, and how i put together an international coalition to it you can read about what i did as first lady to get the children's health insurance program or as a senator, getting better health care for veterans. this is just to be silly season. tom looking forward eventually debating on that stage whoever they finally nominate, once they get around to doing that. >> one of my favorite issues -- let me just tell you this. for theeen waiting administration to make a decision. i thought i owed them that. i worked in the administration. i started the process that is supposed to lead to a decision. i can't wait to much longer, and then putting the white house on notice. i'm going to tell you what i think soon, because i can't wait. i thought they would have it decided way, you know, way by now, and they haven't. new strategy is to have her do more town halls and

more interviews. based on those clips, is the strategy working? phil: you've got to give her time. give her time to work through things. i think what has worked this week for them, you flood the zone, whether it comes to doing marioxtra" interview with lopez, cnn, you flood the zone against donald trump. it is a contrast or campaign loves. republicans. they like that. in that sense, it has been effective, at least in changing the subject the last couple weeks. agree. those moments that we showed were not great, but everything else, fallon, all of that stuff. interview --tzer the wolf blitzer interview got almost no play whatsoever because hillary clinton interviews are not what they were when they were shorter supply. phil: when josh earnest was

on notice, being put he said, cool, ok. and knows your position. administration is not exactly fearful. mark: in south carolina, an evening of it with heritage action for america. also, five white house speakican hopefuls well -- will speak in michigan. bernie sanders will be on "the late show with stephen colbert." republicans will be in iowa for a freedom dinner. and donald trump will be in urbandale for a high school homecoming. then sunday, hillary clinton's first sunday show appearance. she will be on "face the nation," the first time since 2011 she has done a sunday show. what you make of that? season is over.

read politics.com. there is a great piece about why michigan matters a week after sec primary. and on sunday, hillary clinton notably does not like sunday shows, does not agree to a lot of live interviews. both are happening sunday. i think you got to watch that. what do you think? mark: i agree. hillary clinton needs a face with bernie sanders where she what sam --she whoops him. let's see what she does and that state that is vital for both of them. coming up, bernie sanders is blank and hillary clinton is blank. my day with bernie sanders and about a thousand of his supporters. then later in the show, my interview with senator sanders on his appearance on the new issue of "time."

♪ a rareernie sanders held fundraiser here in manhattan at

times square theater. we will show you our interview with the knitter centers in a minute, but first, here is how the event went down, starting with the passions of his supporters. we asked them to tell the difference between bernie sanders and hillary clinton. ♪ finish this sentence. bernie is a, hillary is the. -- hillary is b. >> i think bernie is a champion for the people. hillary is a affectional politician. -- a professional politician. >> bernie is going to be president. hillary is not. >> bernie is a compassionate man. -- she's ok. >> bernie is real and hillary has turned out to be a big phony , and i don't respect her any longer. the cash bar open right

now? >> yes, it is. mark: how is business? >> pretty good. mark: fill in the blank. bernie is a, hillary is b. >> bernie is refreshing. hillary -- she has not done anything for me for the last year or so. the type of elected official we need to run this country because he connects absolutely with working people. quite frankly, hillary clinton is a corporate democrat. is not funded by corporations. hillary is. >> bernie is more honest. is of the people. hillary is -- she is more typical. >> bernie is more genuine. cautious andre measured. i say that as someone who was cautious and measured. sincere, honest,

classy, a gentleman, educated, has manners. being ie type of human want to represent me and my country to the world. >> how are we doing? [crowd cheers] now we are going to find a man who carries that change, has been carrying that change for decades. ladies and gentlemen, bernie sanders! thank you, bernie. ♪ streetming down the red, white, and blue people sleeping in their shoes

there's a warning sign -- ♪ senator sanders: thank you. when we talk about the economy, me andtalk about inco wealth inequality. let's put it on the table, and let's ask this country -- let's ask the people of this country whether they think it is moral, whether they think it is right that the top 1/10 of 1% on almost as much wealth as the bottom 90%. [crowd jeers] [crowd chanting "bernie!" and by the way: -- when we talk about wall street -- >> boo! senator sanders: ah. very well.lated it

welcome to the revolution. thank you all very much. ♪ >> bernie is honest. bernie works for the people. that speaks about issues are affecting a majority of the american people right now. before he declared, right, i .hought fabulous but then the more i listened to hillary, i was going, oh, i'm not going to vote gender. i want to vote character. and then when bernie announced, i was like, yes! rockin' in the free world ♪ mark: those are bernie sanders supporters. hillary clinton has her own supporters. we will be back after this word from our sponsors. ♪

mark: after his fundraiser in

midtown manhattan, we sat down bernie sanders to talk about a topic right up his alley -- the economy. i asked what role wall street will play in the sanders administration. you mentioned wall street today and wall street got booed. role should wall street play in our society? differentnders: very one. we need banks making loans to small and medium size businesses, where they are part of the productive economy helping us create jobs. what wall street essentially is is a world unto itself, which has its own goals, coming up with incredibly competent and financial tools and their job is to make a handful of people much wealthier. i think when you have so much concentration of wealth and power in the hands of a few, i honestly believe we should do what teddy would have done, break them up. with the dow go up in a sanders administration? senator sanders: it matters to me.

when you have a productive economy where people are working, yeah, the dow will do just fine. mark: i want to ask you about the macroeconomic things. you have a kid talking about 4% growth. under the sanders administration what would you aspire 44 gdp? growth.sanders: 4% you can pick a number. i believe if we invest in rebuilding our crumbling infrastructure -- we have a $1 that will create jobs. affordable fors small and medium-sized businesses we can substantially reduce unemployment. we also have to focus on youth unemployment which is off the charts. so, my job, as president, is to create as many jobs as we can. mark: if you did that. if you are elected and passed

the infrastructure, education, all of the things you're talking about, what would gdp be like? what's reasonable for america? senator sanders: what is reasonable for america is substantial lower unemployment in america. that is where my focus is. mark: you want to spend a lot. you want to raise taxes. i'm interested in what you want to cut. is,tor sanders: the truth as my conservative friends point out, there is a lot of waste in government. we can run a more efficient government. i find it interesting that the only major federal agency that has not been able to edit it self or have an independent audit is the department of defense. and what i can tell you is every major defense contractor has either reached settlements with the united states government because of allegations of fraud, or in fact have been convicted of fraud. you have massive cost overruns.

one area we need to take a hard look at is the defense budget to make it a much more efficient operation -- mark: other specific current weapons programs you would like to eliminate or scale back? senator sanders: there are. mark: can you name one today? anator sanders: there are variety of weapons systems designed to fight the cold war. we spent too much on nuclear weapons for example. i do not think we need all of the aircraft carrier some are suggesting. mark: what about the bases in europe? troops in europe? senator sanders: that's a good point. at a time when we have countries europe,he world, and in that in many ways have a stronger middle class and we do, i think it is important to review the degree to which we have to defend countries whose middle class is stronger than ours. mark: other bases overseas or in the u.s. you would like to see close? senator sanders: that's a good question. i can give you a specific answer at this point. mark: beyond the pentagon,

either domestic program's of significant size you would like to cut? inator sanders: we need to subsidizing of corporate agriculture. mark: other specific sectors? we, dairy, sugar? dairy, sugar? are in sanders: if you large corporate agriculture, you do not need subsidies. im a supporter of family farms, like in my home state of vermont, that i would like to see a strengthened family farm in america where people can retain family farms. mark: under eight years of the sanders administration, what would happen to the national debt? would you aspire to lower it? senator sanders: sure. and you are looking, as you probably know, at one of the major deficit hawks in the united states congress. the wars in iraq and afghanistan will end up causing a summer

between $4 trillion and $6 trillion. i voted against those. i voted against the medicare part d prescription program written by the pharmaceutical industry. i would also vote against many of the tax breaks bush and obama have allowed the wealthy to enjoy. at all of those together, i am a deficit hawk. -- add all of those together, i'm a deficit of october yes, the national debt is a serious problem. the question is, you do not do as the republicans want to do and move toward a host budget on the backs of the elderly, the sick, the children, and the poor. withoutot go to war paying for it. mark: the notion of being a deficit hawk, i understand what you're saying. you want to raise additional revenue. you also want to spend a lot more. there's no doubt you will increase spending on a lot of areas, increase revenue in some

areas. would you submit a balanced budget? senator sanders: no. we could not do that. mark: let me say a few things, and "the wall street journal" was deadlocked on a number of points they were making. they suggested i am spending $18 trillion over 10 years. what they forgot to say is when we move toward a national healthcare program, the kind of program that exists in every other major country on earth, the cost per capita on health care would go significantly down. you taxes would go up, but would not have to pay private health insurance as an individual or a business. mark: you say you are a deficit hawk some of the thing you said, of course you would not submit a balanced budget. senator sanders: compared to my republican friends to talk a lot about the deficit and go to war and don't pay for it, or give billionaires,s to don't pay for it or offset it,

yes -- mark: say you were president for eight years. would you aspire year-by-year to bring down the deficit? senator sanders: it depends on the economic situation. i think the deficit is an important issue. i will tell you what is more important. creating jobs, rebuilding our infrastructure, making public colleges and universities, tuition free. making sure we do not continue to have the highest rate of majorood poverty of any country on earth. the deficit is important. mark: ok, you talked about cutting defense and cutting corporate welfare -- senator sanders: there's a lot of waste in the agricultural department. mark: anything specific you can point to there? senator sanders: we are subsidizing large corporate farming in general, and i don't think large corporate -- corporations need our support. mark: i want to finish asking you about funner stuff.

that's enough policy. magazine.time" is this exciting to you? as a kid?ad "time" senator sanders: yeah, it was around. mark: so that's pretty good. what else is exciting? senator sanders: what has -- weed is that we have have had some great meetings in south carolina, in iowa, other locations around the country. just the sort of meetings we had today. i think what we are seeing is a great deal of enthusiasm and energy for a campaign designed to to transform the way we do economics and politics in america. mark: when you started, you had a bunch of people working for you. i bet you have people working on the campaign you never met. senator sanders: absolutely. mark: what does that feel like? senator sanders: it is.

-- that is what it's like. of support multiplies. as we have hundreds of thousands of volunteers out there, we need a political infrastructure, and organizational capability that can mobilize those folks in an effective way and that means hiring a lot of people. people in iowa, a lot of people in new hampshire, hiring people in south carolina. we will be hiring people in the super tuesday states as well. mark: what are your odds of being the democratic nominee? senator sanders: getting better every day. mark: i talked to supporters. --aid, complete the sentence bernie is blank, hillary is blank. how would you complete that? senator sanders: bernie has throughout his political career stood up and fat for working families and has been prepared to take on the wealthiest people in this country and the most

powerful special interests. i'll let hillary clinton fill in the blank for herself. what yourshould watch supporters said. i think you might have briefed them all before they came in. they were all right on it. senator, thank you. good luck. senator sanders: thank you. mark: he said that he'd misspoke after the interview. he did vote for the war in afghanistan. thank you to senator sanders. we'll be right back. ♪

mark: the most important thing this weekend, the ohio state game. 30, illinois.

a powerhouse match. mark: and our guest monday will be donald trump's campaign manager. he will be in studio. until then for phil mattingly and for me, thanks for watching. sayonara. ♪

alix: we are moments away from the closing bell. i am alix steel. joe: and i am joe weisenthal. alix: u.s. stocks closing down across the indices, treasuries rallied. joe: the question is what'd you miss? the day after stocks fall as markets react to the fed decision. the watch begins for a possible october rate hike. alix: dark forecasts. that stocks and bonds with both fall this year, something that