it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. neil: wait a minutes. halloween is still more than three weeks away. why is everyone screaming now? fox on top of fear mongering over the top. we might as well go ahead cash out, administration says, we're all but in default right now. welcome i am neil cavuto. whether it is trick-or-treat it is a incredible fight we've gone from worrying about bumping up again debt ceiling, potentially defaulting to saying to hell with it we're already defaulting, president's top

economic adviser reich, gene sperling, essentially saying that. it is not like defaulting but you tell me the damage is not already done, when the president said in a press conference, well, gene is right, no wonder china is worried about $1.3 trillion parked here or japan or germany or canada, or u.s. investors now wondering if administration has not lost its mind or if we lost all hope of getting our books in order. like crying fire in a crowded movie theater, but here is the killer, there is no fire, but we've all but guaranteed the panic. that is what is insane, that is what leads to a sell-off like the one today dow down close to 160. but there is a flip. a guy who said we get there is

no need to panic. republican florida congressman ted said by refusing on hike debt saling we would help -- sealindebt ceiling we would hele economy, i know your point of view saying we go through this solar raicharade so often that s lost its confidence in us it handle this. but don't you still think that risking default putses over the edge? >> i agree 100% with you, nobody wants ts to default. but default and hitting debt ceiling are two several entities. that does not trigger say your nation is in default. we have plenty money to pay debt service, we have money to do that, with president saying what he said, i think it does harm to

the nation, it wrong. it is the wrong way to go, that is not the message we need to send out. not just to the american people but our financial markets. >> what message would you send? what do you say this cavalier attitude would prove? >> the message that needs to go out there is, america, the world, we do have a spending problem. we realize that we're going to address that. because to go on the way we are, is not going to resolve the problem. it is unsustainable, if raising debt ceiling is the answer we would not be here we have raised debt salindebt ceiling 14 timese 2001. neil: you have your doubts about whether we would really dress those problem, we would get promises from white house -- look if you just approve a clean cr, and keep government going for few months, trust us we'll address the issues, you don't

trust them. you think this leads to the kind of nonsense we go through? >> yes, i think you are right. rerepresentative nonsense -- repetitive nonsense, the problem we have stemmed from washington not dealing with the problems, we have kicked can down the road for 30 years, now we are these problems. if we said, we don't need to raise the debt ceiling we got revenue, we need too look at spending cuts and growing an economy if we did that, there is no reason to raise debt saling at this point. neil: let's say we don't do, that and that other side is not compromising on the spending issues we bump up against that ceiling beyond where administration says we're not making good on debt payments, republicans have forced our hand, we default. we know there are ways around that, but paying thoses there

are billion t22 billiontom come to uncle sam every month. >> what you said in beginning was if the administration chooses to that the point, administration has the option, if they choose to do that, that is wrong, it is unconstitutional. neil: i are going to blame it on you, well not you but republicans, they forced to us this brink. we're not bailing their hineys out and pay the bills they want, we'll make them pay for this stupidity. neil: that is why programs like yours are so important to get the word out to the american people so they get the truth. we can hit the debt ceiling we will not default because the money is there. we have an opportunity to say, you know what world, we're going to address our problem, and create certainty to the financial markets, and they

would breathe a sigh of relief, and say, you know, thank god that the americans realize they have a problem, they will get turn control. neil: you think that will be the global interpretation. saying finally they are getting serious. you say, well if that is the price to pay to getting ourable acts together so be it. >> back to 2011, we raised our debt ceiling against, and our credit rating went down, we did not address the underlying problem. that is why, that is our spending. we need to address that. we need to address growing an economy by getting government out of the way of business to grow the economy. i just file whole heartly with people i talk to wants and economists they said if you took a stand, i think that america is

waiting for leadership out of washington if we say, less wasn't we have to address this problem. -- listen, we have to tracy this address this problem. we're going to pass that on another generation. it is immoral. go back to what president said in 2 thu 2006, if we have to rae debt sealing it means there was a failure of leadership, i agree 100%. i think that national market and world marketing will breathe a sigh of relief. >> well, a different point of view, a gutsy point of view. that is view of senator barack obama. you know about 7 years ago when we voted against raising the debt ceiling for the very reason you said. >> thank you very much thank yoh appreciate you having me on. >> small businesses actually doing better after the shut

down? coming up bank ceo said his business is booming, since the government just within kaboomy. ask me what it's like

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how did he not see that coming? what's in your wallet? neil: all right, to hear almost everyone say the longer shut down drags down the worse it is for everyone, small businesses losing out on loans from fda because it is shut down, but goal coast bank ceo said. you are getting flipped wrong story. he is not going to flip an expression of his anger but he is telling to us calm down. >> absolutely. you see what happens is, banks my size, community banks practice relationship banking, we look for relationships, we try to help relationships. we have our leadership, our senior managers involved. neil: more so if you didn't have

a shut down? >> absolutely. neil: that lending that stops with fda do you pick up some slack? >> we do, and help facilitate and act at bridge loans, we work with a lot of groups, we work with a 50-member aerospace manufacturing group, we step in like we did when we had sandy, the same thing. we set up special loan applications, we send our people down to give advice to the businesses, you have to realize many of these small businesses, are living like individuals do paycheck to paycheck. neil: are you afraid in picking up the slack, you have to make some money? you lend to those who are risky? >> they are risky at a point in time, what happens, absolutely, i still need to make money for my stockholders, and satisfy the

banking regulators, i can't willy-nilly lend money, the companies have t be creditworthy. neil: you define that as a lender? >> absolutely. neil: you still have high standard. >> we're not just lending -- >> not subprime loans? >> no, these of companying that are really in a temporary gap situation, they historically, they have receivables, they have assets, they have contracts. so -- but for if particular point in time, they are stuck between a rock and a hard place. where do they go? who wants to help them? that is what we -- >> you pick -- you pardon what president said -- you heard what president said about shut down, how long is drags on what a threat it is to the economy. do you think it is? >> i think that longer is goes on it could. what people do not realize, and

i was sitting with this manufacturer, i have 50, they were saying that even if this goes on for a week, you have to realize there is a multiplier effect, from contractor to subcontractor to subcontractor, by the time that the government starts up again, it has been over a month, a month to two months before the pipeline gets fed. with the contracts that are stopped. so, what happens with the companies, poor subcontractor down at the end of the line does not know what he is doing for a month or two. neil: isn't that business delayed. i don't want to be dismissive about the pain, we know furloughed workers, are still getting paid. retro actively. so, it is as damaging on the economy or is it like squeezing

a balloon, whatever you squeeze out here the pop out later, and be equalled out? >> no, you are going to have a problem. they say 80% of government is still operating. what you have is psychologically the prime contractors, see the slowdown, there are slowdowns in their contracts, the government is started to send government inspectors, that will help keep contracts moving, but still slows. so what happens, prime contractor says, i may not have this contract this money coming in. neil: you are trying to help. >> we are by providing bridge loans, we don't just sit and lend you $100 thousand, and walks away. it all about relationship. leadership of the bank. and unfortunately, it is

leadership we're not getting out of washington 9. neil: that an understatement. thank you joseph. >> from fur thro furlough to fr? our federal workers should soon be getting checks, and also unemployment checks? i don't know if that is double checking or double dipping? stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare.

neil: this kind of stuff happens burying a crisis, but concern during this government shut down is there might be double dipping or at least a potential, some federal furloughed workers are applying for unemployment benefits, and overwhelmed

officials cannot keep t it. then there is a separate issue about retro active pay, and whether they then have to give back the benefits, this is a mess. lindsay said we should be monitoring this mess. lindsay, you skeptical on this all going to end nicely or at least cheaply? >> you know, i don't think it is. i don't know what we're more frustrated with. the fact that we have leaders in washington who are not doing a job, and by their own emission we have all these federal workers that are non-essential. they will receive back pay for not going to work, a nice paid vacation are now potential that many of those workers will be able to double dip, receive the unemployment benefits and potential back pay. if this does not exemp exemplifu

on disfunctional washington is, i don't know what does. neil: would you give back whatever unemployment benefits you were getting. >> if i were john boehner yes, if i am someone who was furloughed, these are core of fox viewers in many cases, defense folks out in huntsville, alabama. neil: i know who they are. i'm asking, would you give the unemployment benefits back because you get paid for this time out anyway. >> if you got paid absolutely. you give them back, but i'm not as cynical as lindsay. is this is the government a problem not the bad cynical people who are double dipping that you have a fraud they are try -- >> we don't even know if that is the case, but rapid sa lindsay e the sting out of government shutting down if you know that

at least federal government workers will be all right, then you wonder who the heck is the rush about solving this because we're getting paid nonetheless. >> remember there is two different ways to look at this, from accounting it will be minimal. but the effect, overall impact on the economy, has a tremendous downward pressure on the consumer, as the confidence in the ability for federal government to function is under mined. when consumer is not confident they are not spending, and then we don't see job creation. this is a long-term cyclical effect the more shenanigans in washington. neil: did you see, rich, anything that lends you to believe we're closer to resolving this? i now see this going on well past th 77th, so -- past the >> we could be here thanksgiving having the same conversation.

neil: do you buy that october 17 that is time we run out of our cash. >> not necessarily. i want to take issue with what lindsay said about non-essential workers, many that are furloughed are essential, they are teachers, and cops and law enforcement. just because they are not paid they are non-essential. >> that is not my disi disic na. >> the way she said it the salaries are a waste of our money that is not the case, government dessi designation -- >> now the my point on this, do you have 800,000 plus individuals, called nonessential, by the government, reminding a lot of people thank is a lot of people, and do we need that many people? in other words it could boomerang on the very good

people, that don't deserving to non-essential? >> sure, it goes back to divide between democrats and republicans, republicans sit there is a, we need a smaller government, democrats argue at the top of their voice, for the opposite. so, it is a political distinct insurancdistincttion when is whs driving the argument right now. federal government states they have 800,000 non-essential employees they can put on furlough. neil: they will be in that pickle for a while. it seems to me, thank you very much. all right, now, when is a default a default? we're told it is when someone stops making payments to our bondholders this gentlemen, just came up with a new giv definitin that should street en you. -- tried en you.

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>> it's important to understand that you know prioritization is not about avoiding default, it is about managing our default, this is united states of america not paying its bills on time. neil: think about what white house economic advis advisor gee spears, benzak, salomon & sperling was saying. whole process itself is like a default, former goldman sachs vice chairman, is not buying it. he said, market should not buy it either. and they are not. robert, i heard that i said, rewrack the tape on that, but what do you make of the argument

this process is defaultish? >> well, he may be right. but the point of this is, this shot a financial issue we're dealing with. this is a leader ship crises in washington. the reason it is so devastating it undermines confidence this american people in world have washington to act like owners. they have to do it. this is a leader ship crisis, not a financial crisis,. neil: i agree with you, but i think it is reckless of leadership to hint of or say the word default. i know we all use bi big words n strategies and negotiation. but to equivkate on this is

dangerous. for example. when you default, you default. we don't deserve a top credit rating when we go through this nonsense. but to say that is the equivalent of defaulting that worries me, i think that panics the markets. do you think it does? >> i don't think it does. what is panicking and is making the market nervous, they will get more nervous is not the financial aspects or default/no default. it is the fact that people in washington on both sides, i would argue republicans are going to be blamed more for that for better or for worse, are not acts like the own the country, we're in a fragile recovery, the country knows t. just getting back on our fight,

this is disconcerting that people are not anes lik -- not g like leaders. >> do you think closer we get to october 17 deadline they get more nervous, you know these idiots just might tank this thing? >> the thing that market get nervous about is in my opinion, not the default. but the fact that the leaders in washington would let it get to this point, should shows us, we knew that the government in washington was disfunctional, we did not realize how disfunctional. the markets know, if you can pay your bill, you do not willingly default. for the leaders in washington to let it get to this point that is very damaging. not only to the market, but middle class, to households out there. and they are wondering if the

government condition work, then what is -- went work then what is the future of the country. neil: a, robert. >> thank you. neil: all right, let media shoot the messengers, folks have decided. >> lest time that tea party republicans flirted with the idea of default, two years ago, markets plunged, business and consumer confidence plunged. america's credit rating was downgraded. customer erin swenson ordered shoes from us online

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headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. neil: all right, well president laid down ga gauntlet, no deal unless you drop demands attached to reopening government, rich edson with the latest from the white house.

>> reporter: well, at least up next is looking like more of the same. president obama says he is not budging, john boehner said he is not budging and arguing whether or not too even have a negotiation, speaker boehner said he wants to sit down with the democrats then president obama cams out and talks about how he will talk about anything in federal government, negotiate with republicans but he needs republican to fund the government in full. and he needs an increase of the debt ceiling, bain are said, er said, these -- boehner said these are our only leverage points we're not giving that up, we continue to go round and round. there is a little bit of talk about what it comes to the cr, the measure that the fund the government, maybe there are enough democrats and republicans who become together and vote, president obama called for that today to get it through the

house, to the senate. but there are senior republicans who say there are not the votes to get it sho through the house, while we wait the house continues to fund the government in piecemeal, that hits a dead end in senate that brings us back to square one pretty much at the start of every day. neil: rich, to address some of these republican concerns, how is that received? >> reporter: so, republicans came out and said, why don't we have a supercommittee, president said he does not care how congress deals with it, and administration said, that president would veto such a vehicle. they want the two points, government funded and debt ceiling increase before they even talk, republicans say we're

then back to square one, administration will not engage on the issues like entitlement reform, we is no leverage at that point. neil: amazing, rich, i don't know how you keep up with it, they lost me days ago edson in washington. >> republican senator john mccain just telling me that guys like ted cruz are blocking a deal. >> we republicans have to have a plan rather than fool's errand of repeeling obamacare, we can't, we don't have the votes. neil: you say that ted cruz's filibuster of essentially a fool's errand ? >> of course it was. tea party news -- scotty slightly disagrees. >> i will say this, not surprising, coming from senator, who delivered democratic response to senator at the time cruz's filibuster, what is

ironic on july 23, senator mccain of last senator to address the senate tea party caucus, he said, i do believe that tea party probably saved america. now he says this? either he is confused or proving a point he just panders to the crowd high stand -- he stands in front of. >> i can understand he is reading the math. thin, the supreme court held it up, activit it was held up in an that val dated it, said that focus should be to hitting it in legislative body, a republican majority in senate, republican president, that is the way it go about dismantelling this, not the way tea partiers are doing it. >> i disagree. if we cave to this, if our republicans do cave on this

issue, and they open government without changes to this obamacare law, we'll lose in 2014, and 20131 2016 is becauser base is not going to be excited. neil: he said you risk that now. and republicans do it by looking be olooking. >> senator ted cruz is not worried about his reelect, people in the say the of texas are thrilled in the work he is doing, he is a leader, he is showing leadership, not something that we've seen out of senator mccain. when he was introduced by harry reid, the ones that are scared within the republican party are the moderates, they know if the grassroots are energized they will have a real issue next time on the election ballot. neil: scotty thank you. >> thank you.

neil: imagine you are sitting down for a job interview, they ask your name, interest, where you last worked, have you ever been a felon. thethey can't ask that you laste in illinois. they will never know if you were, so all you felons, illinois is where you want to apply for a job.

neil: let me be brief. illinois governor pat quinn saying employers are no longer be allowed to ask applicants if they committed any felonies.

all right so, you have by far cool of the name of any guest, i ever had. >> thank you, i can't take credit for it. neil: well, you got the name thing down, this thing i have a little bit of a hard time getting down. why is this okay? >> this is a administrative order to state agency they can no longer have box on their form that said have you pled guilty or been convicted of a crime, that is super broad. it is all things as far as and about a quarter of america's population has something in their criminal background, they are automatically stopping individuals from getting into the interview process, may have happened 40 years ago. by allowing the box to be

removed from the initial application, that is not say nation's criminal background check can never be run, it can be run at some point but not in the initial step. >> kelly? >> take them off the table. this is ridiculous, don't send felons to my state, this is a waste of hone and time, if you have a dui in your past, you are not driving it should not exclude you, if you are a murderer i have a right to know if you are sitting next to me, if you are a pedophile, i should know if you are driving my children, too bring them in to interview them, then do a criminal check is pointless. >> you can leave it blank, but you raise more questions than answers what you do. i understand what you say trinity, there is a lot of stuff that counts. >> this is very broad --

neil: but it does exempt for obvious ones like getting caught for speeding, isn't it in an employees interest to know, they look at that, when you explain in an interview what that was, and they say it was no big deal. >> right but right off the bat. neil: they are getting screened out. >> they are amelie screened -- automatically scened out. >> good, you save us money these are state jobs, if you are going to be excluded anyway, why waste everyone's time and money to be in for a interview. >> i disagree. >> obviously you disagree. neil: one at a time. >> if you do background check you wouldn't have to waste money if they have disclosed it. you are wasting time and money,

to screen applicants. neil: but other things that are not so bad, but trinity, under your method, i might not know, if the candidate i am talking to of found guilty of manslaughter, that is how far up it goes, should to protect other workers, and others i might place this individual in the workplace with, i have an obligation to look out after them, don't i? >> sure you do, and at some point in the process you can run a background check, obviously if i are around children or driving a car you want to look at that, but official to think of if someone has been convicted of a crime, they have paid thei debto society. neil: would you draw the line on a pe pedophile, saying, they hae done their time for the crime, wouldn't you say that is why i

draw the line. >> they most likely would not be appropriate for the job. >> based on what? based on what? >?neil: we don't know. >> you don't know that just because they -- >> this is maybe, 30 years ago. >> this is a waste of money, does not make sense, they are wasting the time and money, if you have nothing to hide disclose it, that is all i'm says. >> but they are getting excluded automatically. >> good. neil: i want to thank you both. >> thank you. >> there is hope for down and out tv anchors. there is hope. after the teleprompter goes off, thank you, ron burgundy. >> on my right is new dodge durango she has it all including 25 mpg's highway.

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she took an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles.

[ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? >> on high right is the. >new dodgageo.this thing is lit0 times more powerful than you. look at you, you are worth less. neil: ron burg endy pushing the new anchorman and the dodge durango. going public. to our biz blitzers, david. what do you think? i guess they could do worse than a star like that. >> you love ron, but this is stupid ad, they have a good product, i drove a durango all

summer long, i don't own a car, a leased it all summer long, the durango is a terrific car. they don't say anything about it, at one point they make fun of the mpg, it is funny ad but stupid ad they have a good product. neil: all right, well, it is entertaining. but gary, i was focussing on how much you look like ron burgundy. >> i was going to wear the red jacket. >> uncanny. >> you are right. i never noticed. >> i'm ron bur burgundy. >> i was told i look like george clooney also. it is kind of stupid but memorable, it helping will for wilferrell out, his move is comg

out soon, it does not hurt them. >> they didn't have to pay him, it is a double promotion thing, a cheap commercial to do. they chose a french man to put it together. olivier francois. maybe that is why you like it. neil: now whether apple faces similar ban white house did veto a ruling. it is looking like white house is picking winners and losers. >> not only in terms of president's behavior, silicon valley always looking for trade protects, intel did it in '80s, and '90s, we could get rid to nonsense if we get woo

trade wars we're in doodoo . >> that is where they are going. neil: you know, gary, only thing of memory i could think of they look to take products off market when government went after kodak for the instant print camera that mimicked thked the polaroid camera, i remember this very well. i'm dating myself i had one, still do, bay, call me. my point was, that i thought it was a significant development. it was government encouraging comingcomeingcome physcasion of. >> mo products are coming off the market, it has to do with older products. neil: none of popular ones, 4 or

3 or 5. >> the 5. >> the fbi or whatever it is the mega-the munchy. >> i got my free blackberry. >> they can't try to take that. neil: you edge to think it will you don't think it will be that big a deal. >> it is open a can of worms. then you can open up a war but i don't think so. >> wait do you hear that? ♪ rock a bye baby >> that music puts ni sleep. >> i like the fact polls are swinging in favor of republicans, president has been trying to put it on shoulders of republicans, that not working, it worked in '95 when chin ho

kellclintonclin was responsiblee shut down, but it worked. it does not seem to be working, i will be focussing on what happened. >> you are worried that longer it drags on it hour thees both? >> i think the more it has been hurting president obama. he is refusing to negotiate. americans are saying look other presidents have negotiated on this issue, they dealt with each other whether it was tip o'neill and reagan or clinton with hastert or whoever it was. neil: president made clear he is not budging on this. so, this could drag on a while circumstance this your night -- while, is that your might mayor? it could be a i did fall? >> when it comes to markets, i think that markets are getting louder and clearly, i don't know if the end of the worldcoms as

we move forward, but the think that markets are worried. i agree with david, i think you don't look good if you are not negotiating, you deal with grown men and women, politicians that were elected. at least sit down and try to come up with something. >> you don't buy olive branch thing? that president supposedly has thrown out? >> he says i'm not going to negotiate. not doing any negotiating, you have to do to get the deal done, but people like jon stewart. he had an interview with sebelius he was slamming sebelius. >> i don't know how you sit there and negotiate, when you call people extortionists and

language like that. you have to get on a playing fields where there is a little bit of friendliness. >> we're a long way. >> thank you, buddy. >> good job, thank you very much that is it good night gerri: hello, everybody. i'm gerri willis. tonight on "the willis report", the federal shutdown hitting close to home, very close to home. folks trying to buy a house being put on hold. also, buyer beware, free college scholarships that are anything but free. more fallout from obamacare. people having to buy covers it on the are want, and it is costing them a small fortune. we're watching out for you tonight on "the willis report." gerri: seen