crash to describe what is gog now. they like to look at it as a correction that has to wook itself out. what they don'tknow and readily worry about how far down the correction has to go, how long it will take and exactly how manyore people will be hurtn the process when the market decides, if it decides to turn around. that was then. back to my hair now, what do you think? you think it can't happen now. you obviousl forgotten bus in the between. the crashetten 1989 triggered by a fai leveraged yout. 9/11 that stopped trading for a wk and brought an avalalanche of sales and big sale orders when it did. nancial meltdown four years ago this very month and spurred compur driven trading snafus peppered in tween this year. the issuesn't can we have another crash, th issue is

how big when it comes. the dow sold off nearly a quarter of its value, wiped out in a single day. that would be the equivalent of the do umbling more than000 points today. still back in 1987 every major blip and bump sie we always heard the same stock songnd dance, didn't we. can't happen aga. won't happen again. too many protections now. the circuit breakers at were supposed to arrest panic but did not. the curbs that were meant to ease us into a freefall and ease us out of a freefall that could not. try aswe might new gremlins keep testing our might. that is one thing we learn from market history, the smartest programs, the fancy evident algorithms and uncanny leverage or daring derivative or i don't know, savvy swap can't prevent slop. beware those whoay history can't repeat itself. history proves it always, always does. to former bb&t john allison who was president of that

bank 25 years ago today on th very real warning signs it c can hppen again today. john, a pleasuretoave you. you don't look a older my friend but what do you make of then andow and everyone says, well, y know that is ancient history. what do you say? >> good afternoon, neil. great to be with u. let me try to giveontext i was president ofbb&t during that correction. it i important to understand exactly what happened bause the coection didn't happen on a short-term thing. it happened on a long-term phenomenon.% started with johnson bacin the '60s when he wanted a war on poverty and vietnam war anand didn't want toax peopleo do that, so the feds started printing money. at continued in 1970s that resulted in massive inflation. the fed had to correct the mess it made. raised the prime rate to 81%. that created severe economic correction and fall in the market. in a way it was short and eaand government didn't do anything. we staed on real solid and

real growth. alan greenspan who was the new head of t fed really arbitrary decided real growth was a bad thing e misconstrued andhoht it was inflation. he started arbitrarily raising interest rates. neil: just to explain you're an enencycloped for people who hadn't be older as we are. ronald reagan was president and point often misd in history ronald reagan's response to the cris was essentially, don't go overboard with bigixes and expensivfixes. the famous queryhen asked about the falloff, i think he said something to the efct markets go up, markets go down. in other words, don't make a mountain out of what could be a comparatively a molehill and overdo setting up for the next crash. they kept it besidesircuit eakers and curbs, they sort of limited it tothat. cynics and critics of ronald reagan said that set up scandals and everything se. but i really do think it

kept the government out of rewing up something that they would only make wor. what do you think? >> absolutely becse the market needed to correct. resources needed to be allocated. we were misallocating resources because of inflation and they needed to be reallocated. that's when decided to have real growth. when the market prevents governments fr clearing we don't have real growth and struggling like we do today. this is reality today. bernanke is printing money like crazy for fou yes. stock maet is reincoming somehow interest rates will be low. pes are vulnerable particularly itech stocks or high p-e stocks. if we do get growth and fed is forced toaise interest rates the market i vulnerable. the vulnerilities long-term bond market where the fed is arbitrarily buying down the long end. neil: that is the next bubble. every single market selloff etr single day event or dramatic turn down of months

or years is triggered by a bubble that bursts or at least pricked and air is colling out. you could argue with real estate in '87. you could argue the mani of leveraged buyouts in '89. meltdown of real estate again. some sayit is bond market and art first qrterly low interest rat this time around as you were up toing on. ii this the modernay bubble. >> i have been in the baing business 40 years. i tnk every bubble has been funundamentally created by the federal reserve. if w had st monetary system based on gold standarde would have much less volatility. th fed always overreacts. neil: you're right. >> they try to fix things and make a mess. i don't think markets are anywhere near as volatile as the fed is. i ink t fed crees a lot of this market volatility by misleading people, trying to do economicalcation -- economical class. neil: that is interesting. fed is more volatile than the markets.

always wordsf wisdom. thank you my friend. good to see you agn. >>hank y, neil. neil: maybe wall street isn't pulling something fancy washington doing nothing at all, notng. edward jos managing director says congress and cliff almost begs theal markets fall off that cliff. he puts his money where his mouth is. he is one of 60 bankers that sent off a lett to washington demanding action. he is a partinarber. we're not blaming eithe of you guys, do something and do somethinsoon. have you gotten any response? >> the response that we've gotten, neil has been primarily internal at our firm. they're glad to sees speaking up, lending our voice to the nd for bipartisan action aswell as presidt and congress come together so the u.s. doesn't go off a fiscal cliff. neil: getting a pat on the back from saying something bold is a far cry from

actually following up on your recommendation and doing something bold. >> well, no, that's very edward jones helps serious long term individual veststors to reach their financial goals. we work with very conservative individualwho arefrustrat, w who are fearful right now, who are very concerned th lack of action, gridlock in washington will cause --. neil: what do you say to them, to you, to other bankers that signed the letter? they're on the front line looking at torpedoes. talk about a medown there could be the same for you, right? >> it is n reasonable to believe that there's anything good will come out of going over the fiscal cliff. it will adversely affect the markets. neil: what about delaying it? talk iseyingt? what about delaying it six months? >> by delayi it what you will do neil is buy some time. you will buy some time regardless how the election turns out hopefully we can get the president and congress to have an open-minded, bipartisan discussion with some longer term perspectiv that will

address both spending as well as the revenue side of the budget. iljames, you're an excellent read of the markets. one of t reasons why i respect the he out of you. i wonder how the maets respond to a dlay with the hope that that delay produces an agreement on a simpler tax system, a bget reform, you know, hope always springs eternal but you and i areprably old enough to remember it doesn't always pan out that way. so you get y your delay. the marks don't share our collective hope and confidence that you strike a deal. they might sell off, right? oh, and agencies might say, oh, you're punting again, you shington. d there will be hell to pay, a big market selloff. wh do you think? >>eil, i thinsome of the activity you're seeinggin the market right now today and more recently this week may be anticipating the fiscal cliff and the lack of willingness or, movement toward addressing it. e, again, i will repeat myself.

there is nothing good that will come out for allowing us to go oer the cliff. neil: you're exactly right james, thanks for taking time. >> my pleasure. neil: what is the 25th anniversary, i it gold, i have no id. it is not a hay one. always good having you, james. thank you very much. >> thank you very much, neil. neilby the way i will be live in boca raton, that's monday for the final presidential debate. wetart things off at 8:00 p.m. going through midnight. don't you know the fcal cliff will come out and romney forces are saying it is foreign policy debate they will work likerazy how this economic abyss -pthreatens our national security. wah creative ways they bring all of this into that. by the way, mitt romn i breaking out his swing state secret weapon and his name is paul, rand paul. the senator hitting the road for romney but before he does he stops by here first. don't laugh,romney's entire campaign could get a jolt because of this. >> people seem to be very

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neil: yet another sign of an healthy economy, this could make you sick, vry sick. re people are collecting full government health benefits than areactually working full time, first time in this country's history that happene the government is growing, jobs are not and that's got reason's magazine worried. peter, that is incredible. i didn't know that was atiscally possible but i guess it is. what dyou make of it?

>> the way medicaid works, as economy gets weaker more people end up enlled in medicaid. medicaid is the big one. we see rise in medicare enrollment because the baby boom generation is turning 65 and hit retirement age and enroll in medicare. wi medicaid, the way the program works, if youall below on poverty scale, you will be enrd in medicaid athat poi. when w see 10 million people, additionally enrolled in medicaid as we have since 2008, at that point there were about 42 million people on the program. now there is 52 million people, that is bad sign for the economy, it means the economy is not producing the kind of ealth, thend of jobs that we need, people need to have their own health insance. neil: you know what i worry about, peter in this debate, you and i chatted about it bere, what got to be the distraction in the romney 47 thin a lot of people got upset, noses properly out of joint, at included soldiers and retirees many who paid into

theystem for a lot of years and th were rightly upset but when you step bac, the question missed accuracy of the percentage. how did we get to 47% paying income taxes and that many relying on government ben of some sort or other? not that many deserve it but essentially doubled since i got out of college. as we know that was just a few years ago. all right, i'm lying about that. but my point how do we get that uer ctrol? the mh doesn't favor our continuing to do so? >> you know, that is a good question. i think the really worrying thing here is the poor results that we see from medicaid. not just that the program is expanding. this is a program that has surprisingly bad health outcomes. if you look and compare peoplen micaid versus people who are uninsured entirely cncer survival rates for medicaid patients are basically, almost no better. they did a study a couple years back looking at people who had major surgery under

medicaid and wh no insurance at all, people th medicaid had morortality rates twice as high, more expensive, loerhospital sts. what we're trying to do with the oba administration wants to do is expand this program. obamace expand medicaid by somewhere tween 10 and 15 million people over the next decade or so. at's reall worrying. rather than trying to pare back these programs,ocus them on the poor, needy, folks who really needtt, what we're doing is expanding them, turning them into middle class entitlements. neil: it doesn't address someing that goes on behind the scenes. doctors who cringe dealing with those almost going to pay the bll entirely on the government dime and that, it is not to put them in sort evil terms but, that, that expands the pool of availae treated out there andhere's only so many doctors and there is only s many mri machines and so manyvailable treatments. so byjust sheer math alone we're going to spread

ourselves pretty thin, ght? >> micd beneficiaries have some of the hardest time finding providers to see them. neil: sure. >> big part of that because reimbursement rates are so low. rather again, rather than scale the program back focus it on the people who real need it what we're trying to do is exxand it and we're going to be the spreading doctors thin. what we will en up doing ying doctors even less whilat the same time expaing number of people who are insured through this program we then expect them to treat. it will not add up. it will not work. ne: someing is very wrong when you started medicare itself, before medicaid, started out as $66 million unde president johnson in 195 or 6, my memory escapes me and it last grown to this half trillion dollar behemoth today. it started out wi fosed tempt for people wh really, really needed it as it did with foodtamps those genuinely poor and people who really need it.

we get to the ballooning figures, some more and more getting in andsome don't need it at all and could quite fend for themselves but setss up dependency that is scary. >> medicaidhen it started in the mid 1960s inflation adjued ctas about $9 billion. last year the federal gornment spent about $275 billion. neil: oh, my gsh. >> states aut another $100 billion. whathebama ministtion wants to do is double the federal spending on this the next decade. by 202 the pan is spend roughly $600 billion on a program. this is not the way to reform a program. they're expanding a program that j just doesn't work. rely abad sign for the onomy. it is a bad sign for people's health. it is a bad sign for taxpayers. neil: peter, thk you very much. as itell on people on the sh. not a left or right or green or blue. the green is not there to keep doing the kind of stuff

peter was elaborating on. it is not there. it is one-stop place we tell you. it is not a democratic bashing, this is not aa3 republican bashing, the numbers ar't there to support it. we bettercome up with betttter math because this ain't cutting it. you remember this doozy fromitt romney a couple months ago. >> i can't tell you athing about the vp process, neil, you ow that. if i did, i would have to, you know, ve to come after you with my men in black flashlight and erase your memory. neil: that was kind of funny. but i think he got hself a comedy coach and came up with something even fnier, because last night, this guy, had themn stcs. i'm gointo tell you, the divinds are already showing up. >> the campaign can require a lot of wardrobe changes. we, blue jeans in the morning perhaps. suits r a lunch

fund-raiser. spt coat for dinner but it is nice to finally relax and where what ann and i wear around the house. [lghter]

>> of course the econo is on everybody's mind. the unemployment rate is at the lowest level since i took office. i don't have a joke here. i thought it would be useful to remind everybody that the unemployment is the lowest it's been since took office. [applause] >> he knows howto seize the moment this president. and already has a compelling new campaign slogan. you're better off now than you were four wee ago. [laughter] neil: well, both candidates tring zinges at last

nit's al smith dinner. we're used to see the president drop a few fun neceary. but mitt romney hit the stag like richard pryor than richard nixon. with rent gains in likeability polls, don't diiss this. because it has aserious impact. for a few laughs maybe the gorn pushed himself over the top. might be premature but who better on all things political details than a guy who is walking encyclopedia on them, fox news digital editor, chris stirewalt. i had the opportunity to be there last night. i got to tell you it was in as much in his demeanor and delivery than the stuff he said tt blew folksaway in thatoom. and, does this stuff resonate? does it have an impact? at do you think? >> well, here's the deal, comedy isbout timing, comedy is also about expectations. just like politics, it is about expectations. and mitt romney knew that

since he had this reputation as being a stiff, and being is rich guy and beingll of that stuff, a tea totaller who doesn't drk he had th expectation. he went in and able to use thaa to flip it a bit. and cast himself as somebody who could poke f at himself and poke fun at the president d laugh. he was very funny. he clearly had good jokes but also delivered them the rit way. look therere is no comedy routine that will p everybody over the top, but what you saw in romney was the same thing you saw in ronald reagan, that you saw in bill clinton, and that you saw in george w. bush, which was the ability to get room on your side and make them lgh and for mitt romney, who has long struggled with a likeability gap with barack obama, it's important for him to show that he doesn't take himself too seriously. neil: looked likeeorge bush, when he became president they're all laughing at me so i mit as well laugh at myself.

here is why it could have a impact that those reagan-carter, the only reaganarter debate, i'm sorry, there was picture and portrayal of ronald reagan all but lucifer in pinstripes. lo and bd hh is not that bad. he is funny, amiable and warm. although much in diffent time and era to a degree like mitt romney. he was portrayed i ads callous 47%, evil rich guy and private capital guy and people saw him and say, he is not so bad jokes replay on all the news channels as they do from the al smithinner and a whole differt impression. es that warm him up to people who might be sitting on the fence, all right, maybe this guy's okay? >> su and it helped him throughout, the expectations that were set about mittomney by barack obama in six mont of attacked as, and were said about mitt romne by the establhment press, mitt romney has had a fun time and pretty ea time it

turns out foiling that because it was so much of a caricature. so comedy helps that. you remember, neil, barack obama said of hillary clinton you're likable enough during their debates? neil: yes, yes. >> there is such a thing as likable enough. it is not probable that mitt romney will be considered more likable than barack obama who is the youngish, first african-american, oer of two, who goes on "sportscenter" and that stuf he is lot hipper than mitt romney who is sort of hip to be uare. so maybe he is never going to be as likable as him but what we have seen is that mitt romney's favorability number, which means that people are okay with you, has gonep. thosehings are correlated. if romney can demonstrate he is an okay guy, hean laugh -pat himself, tell jok and he can do that, that helps people find himacceable in this se you may be talking about somebody who isikable enough. neil: i love your comment about hip to be square, one

of his said i came here tonight because they wanted me to be theesignated driver. justlew the house away and deadpan delivy. i think he was reinforcing and quite happ his, you know, maybe nerdy skin and just showing the world that d relishing it. we'll see. that is tough to say the esident wasn't fny. we expect him to be funny. is very funny and very glib but i don't think people expected that mitt romney. we'll see if it pans out. chris, you areas kbl and funny as you are brilliant my friend. thank you for joining us tonight. >> nerds une. neil: nerdsnite. thanks, ris stirewalt. here's what happens when you throw hillary clinton under the bus. she drives you off the cliff. what the seetary of state said in a women's magazine has the white house feari it just lost women period.

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neil: did hill just knock baraor a loop no not on the benghazi thing but this man thing? in the west wing someone wants to get a hold of hillary clinton and just rottle. it started innocently enough in a marie clre interview when the secretaryf state was asked about the challenges women face with work and family. cutting to the chase, hilly essentially told them to shut up. i can't stand whining. i apld her frank respon. i don't likehining. for example, when fat people blame the condition on thyroid. by the way the camera does add 50 pounds. it's true. back to i will had. for women it could put this democratic tiet in hell. not th best timing since team romney-ryan have been getting "fa and furious" with females. after being thrown under the bus on libya as somee it,

is hillary clinton getting away as fas as she can from at bus as some w increasingly see it? we are on it. state department saying that clinton's comments were taken out of context. i actually have the full interview here. i will delve into it more. i don't think they were tan out of context. tea party activist is here and saying this is damage to the president and it is done. i don't think she said anything offensive. i think she was just saying we all have to suck up and deal with it. we'll get into the particulaas. if you hear the clips and reaction, you'll think that she was demeaning or ripng women for complaining and that will do enoughamage, rit? >> oh, absolutely neil. yo know, ging ev longoria and the rest of the whining pathetic women out there on this war on women brigade, you know, hillary clinton justmade the case for ery woman in americ

to vote for mitt romney because guess what? this is america. and your life is all a circumstance based upon your choices. hillary clion simply she has completelyebunked this mth somehow there is warn women when people are out there wanting free choice and wanting women to make their own choices. this is a big win for women d i think it - neil: she was framii it in a way that made it kind of odd. she was asked about, a lot of women who jgle career and kids and all of that. she went on t say if you're not happy do something about it. li in time you have endless choices. mon money certainly helps. you don'tav to money to go for it but you have to work on yourself. do something what i so novel about at? is essentially the essence of people who want to succeed in life anyway? male or female. she is saying if you want to

go to something in life, that is your choice, quit whining about it and g for the gus sw. >> neil, the key word, there is a key word there, women who e organized and have a support system in place who have kids and do quite well. but let's take it even further than that if you wa to separate working womennd wowomen not working. how we find out to g into thos binders that governor romney was loking at because there are a lot women out there who would loveethe opportunity to work for such a strong, moral courageous leader like mitt romney. neil: that binder comment, you would think he was like, going through penthouse here because the president was izing on th today in virginia. want you to react to this al quick. >> sure. >> when the next president and congressould tip the balance of the highest court in the land in a way that turns back the clock for wome and families for decades to come, you don't want someone who nds to ask for binders of women. you want a president who is

alread appointed 2 unbelievable women to the supreme court of the united ptates neil: what do you mke of that? >> well, i think it is just pretty pathetic the democra party and this pathetic women whining brigade are out there actually trying to convinceomen we're so helpless and so needy and so pathetii we nee a man ii e white house making decisionfor us. theris o such thing as going backwards. women are the largest minority in this country, so, i think that is why you see women shifting towards mitt romney because they're just not buying all the bs coming out of this party. neil: well, you speak your mind, katra. iill say that. good seeing you again. thank you very very much. >> thank y,neil. neil: like father, not like son. why rand is going to bat for mitt despite dad

neil: his dad might have doubts about mitt, does not mean rand paul does. prove tea party kentucky republican senator storm new hampshire. state is polar and big governme is not. senator, always a pleasure to have you with us. thanks for joining . >> glad to be with you, neil. if i were mitt romney naturally i want you there. father certainly popular there. libertarian view conservative view of limited government extremely popular ther is tha a sign that mitt romney is woied there? >>ell, you know, i don't think so necessarily. i think that they have just asked me to go to different place, ohio, new hampshire, neva, some of these places have appeal to libertaria libertarian-minded republicans and i think i can help toet the enthusiasm going and get our basenergized. >> because the reason why i asked, if your father, still en kind of, you kno, not

so achy keen on mitt romney. certainly not peachy keen on barack oma. i wouldn't know who hevotes for. has he told you? if he is not aggressively supporting mitt romney, what is he doing? >>'m not authorized to speak on his behalf. i have to talk toimt thanksgiving see what i'm allowed to say. right now he hsn't told me one way or anher. ne: he doesn't mind, you, he doesn't mind you going on th stump for mitt romney and to the degree you have shown your support? >> no. and he realizes that we're different people. there are many things that i will support, many caus that iill champion that he has championed for years. but we won'talways be the same. and i consider the politics of the election to be the strategy for trying to get the best person, the next person between governor romney and obama is stark. i dd worry about 23 miion people out of work. i worrybout businesses are terrified of this president. i think we haveo have a

change i direcon forthe country. while ron paul was my first pick, i'm very happ to be suppting governor romney and i think will make a difference. neil: you think he is the beforehot at getting serious tax budget reform? the argume for, getting an extension,enator, in all the tax rates that expire, spending cuts,is, that, it could be cobbled together with a de to seriously reform the tax code, the whole budget process, mitt rney is the guy to d it? conversely they say punting onthis isn't the answer. it wld hurt a president-elect romney that were to come to pass. at do you think? >> i'm of thepion rather than trying to get overall tax refo in one big huge packag that will take a year after romney's elected. my advicto him, break it up into pieces and immediately start passing something to show the american people we will help them. coorate nng tax, many democrats agreee we should lower it. why don't we low the corporate income tax and not

make it part of some 2,000 page bill. let's just lower the corporate inme tax andif people say, that will add to the ficit, let's all offset it withspending cuts. neil: what about the mney posion, when it comes to, with lowering taxes for across board particularly for the rich? that it will be revenue neutral? i take enough credits deductions allowances away. it is a wash. theich will remain paying 60% of the taxes as they do now? but his big emphasis seems to be in these debates, senator, it is revenue neutral. that struck many as a surprise, and they were expecting a big tax cut and now they ar looking at big tax cut. might not be a simpler tax system t but won't be a big tax cut. whwhat do you feel about that. >> revue neutral tax cut n't excite me. i want to stimulate the private sector by leaving mo money in the private sector. when i campaign around kentucky, ohionew hampshire i want more money

left in the pockets of people who earned it. neil: he is not doing that. he i not doing that. >> well, i will have my voice. that will be my voice because e my voice will be we balance it. i don't want to add to the deficit either, bu we balance it with spending cuts. i'm for getting rid of deductions. neil: senator, i'm sorry, he doesn't talk as much about that. i'm not saying vaguely, you n't know what specifically he wilt. pbs is one of them. go ahead. >> the reason i make the point is, that everybody's hassling governor romney will you deductions addup to enough to balance the tax reforms so it is revenue neral? my point would be first, we want more money lt in the private seor so it doesn't haveo be neutral. if you want it to balance so doesn't add tohe deficit let's cut government spending. that should be the messag whenever we grown the onomy we lowed rat for ebb. we got rid of deductions, when we lowered the rate, under reagan we cut the

unployment rate in hal and several years of growth five or 6%. to get 12 million jobs you can't be revenue neutral. i say lower taxes for everybody and cut government spending. neil: there is a concept. getting growth of ve or 6%. there was time we did that during the reagan years and boom years coming out of recession,exactly what we did quarter in, quarter out. by comparison that is five times faster than the economy is growing right now. you think that was then and can't ppen now? when we come back with rand paul, how specifically it can happen now. stick around.

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>> if they succeed and are elected in january and mediaty repeal what we've done in regard to medicare and health care, your premiums will go up on

avage $312 a year immediately, for those on medicare rht now. that's what will happen. medicare trust fund will become insolvent in 2016. neil: i never know where they get theseuers but anyway, rand paul heard that. what do you think of that, ra? >> i think medicare everybybody agrees medicare is about $35 trillion in the hole as is and has to be reformed. i told the president, face-to-face, a year and a half ago, ththat if he would cometogether with us and reform, weouldave medicare and save social security, tt he would be elected in a landslide. several republicans told hi this and he chose not to work wit us. and i think that is really the failure of leadership is. he hasn't reached out to us at all. he doesn't invite republicans to do anything. neilsenator, i think you have had, counted a failure among republicans and you exrienced is you come up with a very bold proposal.

let's get being namby-pamby about this. look for a big cut first year. be substantial a quit pussyfooting. they lef you at the altar. not everyon i remember that phenomenon. i deeply admired your guts but theydidn't wan togo out with you on the 30 rail there. >> well, you know, i think entitlements, if we don't fix them, and paul ryan has been pretty bold talking about how to fix entitlements. neil: he was the house version of y. they did the sam to him. you think he would have, you know, did he use his deodorant at day. everyone avoided him. >> well, you know, i'm of the opinion that all of the old days are gone. the day whe y coul scare people and say, oh, republicans will take away your medicare. neil: you're right, you're right. absolutely right hereeo again. i want, if republans really mean what they say and i think they do, and democrats mean what they say about eventually getting

entitlements under control and i actually want to say i believe they do, is it just e election we've got to get past, to each side, things calm down and that's whene get something done or what? >> i fear maybe things will have to get worse in o country and we'll have to approach a debt crisis before people will be serious about it because people do worrybout the politics of this. they're afraid to say that the ageor social security or the age for medica needs to gradually re in order to save these programs. people are still afraid to say that. but i think if you're honest, i think right now the election and the population has changed where i think they actually will reward people who are honest and wh admit we have problems and say, yes, republicans andemocrats just nee to throw out the pitics and let's o ahead and fix these problems neil: well y know, i'm not blowing you smoke, senator but the reason why i alway enjoyed chatting with you call them as you s them and get risk of getting rapped on both sides. i mention the republican

ing. you criticized roomney approach on dfense spendin not giving an inch and something has to give there. there is certainly room for cutting in defense. that brought out everybody and uncle in the conservative moment, no, no. defense is sacrosanct. you were sing it isn't. it should be the part of what shoul be looked at in every budget overhaul. >> ultimate compromise. only way you ever balance the budget, conservatives like myself believe national defense is very important, compromise not every dollar is spt on the military is sacred and well-spen liberals is not every dollar on welfare is well spent. we compromise and bng both down. we do compromise in washington. we raise military spending and raise domestic sending every year. that's why wre a tllion dollars in t hole. neil: we can find a middle ground. not that i could broker a deal, sometimes, senor falls on me to save the countr maybe wh we can do is what

you're saying. democrats should be opento reformg entitlements andd3 at least owing their growth. okay, republicans should not be so dogmatic about defense, can't be touched. at alone would get us moving toward an endgame here. but we don't. it is, the election magically going to present that opportunity? >> well, ihink what's happening is circumstances willake people address this. ciumstances are getting worse. entitlements are growing so rapidly they will consume all of the money in the budget within a few years. so i think circumstances will tell all of u we ha to do it. to me it is inevitability. i don'ta whether you're republican o democrat, it is inevitability you will haveo fix entitlements because there's not enough young ople and there is lot of old people. there is demogrhic shift and we're living longer. these are facts d they're inescapable. the question is, will we do it withhis election or are we gng to wait until things get worsend we

begin printing up so much money, that prices begin to rise dramaticallynd everybody is worried about a chaotic situation or whetr rational way, gradually, but get started now. that's the real question, whether we wai for chaos or we dot now. neil: senator, thank you, very, very much. good sing y again >> thank you, neil. neil: senat rand paul. he touched on a couple of things i empsize before we cu away, very, very quickl itit is easy to blame crats. it isasy for the democrats to blame republicann. i'm not here to blame anyone. i want to stress here, guys we've got aig ol' pile of probms that have come up over deca of sort of blind side he hadly spending money we didt have a nver telling the people the truth. the direction we're in to the senator's point is a diction can not be sustained not with money we sustained not with money we have, andpromisee 4g lte is the fastest.

so, which supeast 4g lte service wod yochoose, based onhis cht ? don't rush into , i'not looking for the fastest answer. obviously verizon. okay, i have a fferent chart. going that way, does that ke a difference ? look at verizon. it's so much more than the other one so what if we ju changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage an all other networks combined.

neil: in theouh time is the charm. the final debate. the third one between between obama and romney now called the rubber match. this is for all the marbles. whether the meteris moved comi keep in mind that romn forces have told us economic policy, a growing debt and spending problems

have a lovely evening.rity thanks for joining us. melissa: i'm melissa frais and her's what's "money" tonight. the cyberttacks on banks keep coming. now they're king a menacing turn, striking at random and without warning. we're going to show you how they set them up and how dangerous they could becom plus can you feel it? pain at the pump easesor t 11th straight day. we have details whether the gas price relief will last. would you give someone $50,000 to end those annoying robocalls? the ftc would. it is offering