andongressional leaders. hannity is next. stay right here on the fox news channel.

closer to a big frame work of a bigger deal. so, perhaps that's the umbrella on which they're looking at this joint committee. >> now, i watched the president today and he kind of stuck with the talking point that he's used throughout this debt ceiling raising debate and that was quote, fair share, we need to make adjustments, but, yet, i have here from the republicans, they've put out a power point and the power point says no tax hikes. but in fact, we don't really know what's going to happen when these recommendations from this joint committee come in by thanksgiving, right? >> that's exactly right. and that's one of the concerns for republicans is that, if this joint committee did not get consensus or the recommendations that they brought forward did not pass in the up or down vote, that the so-called triggers or the

punishment mechanism would go into effect and that's why the republicans want today see that these triggers were fair and democrats wanted that as well, but the sticking point late this afternoon was on the defense cut portion of that. it was believed that half of the trigger would be just pure defense cuts, possibly more than 540 billion dollars in defense cuts. we heard some testimony earlier this week on capitol hill from general dempsey, the incoming chairman of the joint chiefs of staff who said they're having a hard time finding 400 billion cuts and believe it would be risky to go further. that's where the sticking point came from republicans today. >> bret, i've got to tell you my contacts on capitol hill and conservatives i've spoken to throughout the day are telling me the same thing, if in fact, the number earlier in the day. the defense cuts. in joint committee. that's a deal killer for them

for a lot of reasons. it's a deal killer for tea party conservatives and the other issue is there was concern about the real language of the balanced budget amendment would have to take place between october 1st of this year and the end of the year. so do we have any updates of whether or not the 50 percent mark on defense cuts have in fact been lowered do we know if the budget takes place or will harry reid table that? >> it is part of the deal that speaker boehner has sent out. one would assume he is selling his caucus members on something that is in the current piece of compromised legislation. i think we should take this power point at its word because this is what he is trying to sell his caucus members that this is the deal that they should take. just a few moments ago the speaker wrapped up a conference meeting it was during the president's briefing in the white house briefing room in which he said now listen this isn't the greatest deal in the

world but it shows how much we have changed the terms of debate in this town. it is time to take the deal get on board he said during the gop. >> there is this contradictory statement the power point says no tax hikes yet the president said fair share and seemed to be, you know -- >> he also said i didn't get everything i wanted. >> he did say the fair share we need to make add jewsments everything is on the table. >> he said that in every spee , speech,. >> the power point says no. >> it's not in the plan on the $1 trillion, it's not in the second, unless the joint committee decides and there would be six republicans on that committee decide selectively they are going to bring to the floor for an up dand down vote revenue increases. if it's the case you would have an up or down vote in both

chambers of congress. >> the host special report our good friend bret baier. >> south carolina senator lindsay gram and david vitter. welcome back to the program. thank you for being with us. >> thanks john very much. >> we are dealing with issue number won the defense cut issue is of major concern in all of this. both of you shaking your head here at the same time. lindsay graham we will start with you. do we know what the final adjustment on that was today? >> no, we don't. here's the way you build a defense department. you look at the threat the nation faces. you don't pick a number out of thin air and start implementing cuts. you look at the capability threat and reform. i don't like the idea that we are going to pick a number out of thin air and start reducing the defense department. i can tell you in terms of the trigger the medicare part all about doctors and hospitals since 1997 we have been very reluctant to reduce payments to doctors and hospitals.

we can't find a medicare doctor now almost but the idea that that 50 percent is going to become reality in the new congress is nonexistent. i am very worried about 540 million being cut from our defense budget. >> is that a deal killer for you? >> sean, bret baier is right. the power put up by the republican shows 50 percent of the automatic cuts if the trigger comes from defense. it come -- it will be a big obvious point of discussion. >> we have two words going on. you know when the young marine asks am i going to get paid? the answer is yes you are going to get paid but we are going to give you the equipment to fight and win the war. we are going to give you the capability. we are not going to do your children and your generation to come to greece but we are going to get this nation out of debt. the number one obligation of this federal government was to defend the nation from threats

foreign and domestic you need a robust defense department to do that. >> senator vitter what it says in the power point is total reductions would be equally split between defense and nondefense programs. i don't see that as 60 percent. but 50. >> i said 50 percent. >> i am sorry. i didn't hear you correctly. >> that's way, way more than what defense represents as a percentage of the budget. it's not even close. way, way more. >> it does hold out the possibility for tax increases as well. as the president was saying everything is on the table. based on your early indications, and i know you are not in the nancy pelosi category we have to pass a bill to find out what's in it. i suppose you will read the bill ahead of time. do these overall descriptions of the bill make you more inclined to support it, not support it? senator vitter we will start with you. >> i have had concerns every step of the way based on the fundamentals even doing this which is moving in the right

direction means we are increasing our debt 7 trillion over the next 10 years. we are moving in the wrong direction. that core concern still remains. obviously i am going to look at all of these details. i am concerned this issen accomplishment only in washington only politically. it's not much of an accomplishment fiscally or in the wrorld. >> senator graham more inclined or because of the defense cuts are you disinclined to support this? >> i don't have a lot of faith that this joint committee will do with other committees in the past has. it will be deadlocked over tax increases. they are going to want tax increases they are going to say no triggers take effect. we are not going to cut 50 percent from medicare to get to the number by reducing spending to doctors and hospitals. congress always forgives that when it comes to the time to make it real. i really do fear that we are going to jeopardize our ability to end this nation if we are

looking for the defense department to pay the major burden of this deal. i know this is tough politics. i know they are working with leaders who don't want to change the size and scope of the government. >> you were bringing up a key point a lot of people in the country don't understand. we are passing this bill, debt limit is going up, but in this ten-year period of time where we are quote saving $2 trillion, because of baseline budget -- because of baseline budgeting and we increase people don't seem to understand this. the 2012 budget is going to be 8 percent higher than the 2011 budget. the 2013 budget will be 8 percent higher than 2012. >> we are cutting only because we are cutting from a baseline which is going like this. that's the only reason we are quote-unquote cutting. >> we are not freezing spending. >> this is only cutting in washington. this doesn't pass n for any cut

in the realed world. i am afraid it is only a big accomplishment politically in washington. i am afraid it won't be much of any accomplishment fiscally and in the real world. everybody is running around concerned about the credit rating agencies tuesday what they have also been focused on a long-term getting ahold of unsustainable spending debt. they have thrown out pretty consistently this magic minimum $4 trillion figure. this is 2 and a half trillion way below that. i am afraid maybe we are avoiding default which of course i want to do. maybe we are in short downgrade in our credit rating. >> moody said on friday the limited magnitude of both the boehner and reed pl reid plans forward will not put the aaa credit rating back on solid footing. quote reductions of the magnitude now being proposed if adopted would likely lead

moodies to give a negative outlook on the aaa rating. >> that's exactly what i am saying. i want to avoid default. but i don't want to ensure downgrade of our credit rating which means interest rates go up and americans are really hurting. >> bottom line moodies is saying if you don't hit the $4 trillion figure which doesn't come near the default seems inevitable. >> it wouldn't be default. >> my fault. the downgrade of the -- >> it would really hurt americans -- >> i think this is fair to say that the people who got elected in 2010 are fighting like hell to change the way washington works. we are having a conversation we never had before around the debt ceiling. that is paying a dollar per dollar increase we are trying to push the nfl envelope of one h of the congress. in the 30,000 foot view of things even if everything worked perfectly you are adding 6 to

$7 trillion in debt it is not fund am tal change. in terms of the subject matter it is change and at the end of the day we are slowing the growth of the government we are still adding a massive amount of debt instead of running toward bankruptcy we are walking toward bankruptcy. you fight hard and you get more numbers. passion and numbers have to go together. i hope the american people are watching today because you can clearly see who wants to grow the government and who wants to reduce it and who wants to have a strong defense and who is willing to fill this department out. >> one of the things is 75 percent of the american people want a balanced budget amendment. what i would like to know is whether or not harry reid would have a power to table this october 1st to december 31st deadline. that's a question we need answered as well. it's good to see you. thank you for being with us. >> congressman congressman jason shav vits is here to explain how it will go over with rank and

file members in capitol hill. when all is said and done who is going to come on top. we examine the winners losers on the debt debate and more of the details straight ahead. [ male announcer ] at e-trade, investing means taking action with professional-grade research. and some of the most powerful, yet easy to use trading tools on the planet. it's investing with intelligence and cold hard conviction. e-trade. investing unleashed.

it's the cleanest, clearest water.

we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster. the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or sn crab and crab butter shrimp. [ jon i wouldn'tut it my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea fd differently. the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu.

>> this is a fox news alert. moments ago in washington the president announced lawmakers reached a deal on raising the debt limit. now that the leaders are in agreement will it have enough votes to get in the house and

senate to get the president's signature. joining us now our utah congressman jason chavous is with us. congressman scott garrett. i understand the republican caucus had a meeting i guess it was a phone conference with speaker boehner. he said that the republicans in the house changed the debate in the country. apparently nobody on the ca cal the bill. it is not ideal and i apologize to that. there is no agreement until i spoke with you. right now what we have is a framework. is that accurate? >> that's right. >> give us more of the details of what went on? >> we basically laid out what the framework is as far as laying out with regard to the time frame and some of the moneys up front. later on you have to set up the commission. the commission has two alternatives.

vote for a debt limit increase or pass the agency or vote to cut more spending in the future. if one of those don't happen we have to go forward. a move in the right direction. >> the speaker also said there's nothing in this framework that violates our principles it's all spending cuts. the white house bid to raise taxes has been shut down. what about the select committee if they recommended you still would have in the house an opportunity to stop it, congressman? >> i have two concerns. i think the speaker has taken it a long way. we have changed the way we are talking about the debt. it was february 2010 when the democrats were controlling the house and the senate they passed a $1.9 trillion debt limit increase. it barely made page 10 of the newspaper. we have chased the dow namic here. i am concerned about the position. the way it is structured we have three homes of the house republican and democrat we have

majority in the house. we have things in the structure that concern me. i am concerned boo by the cut number. it's small. i think the speaker has taken this a long way. >> i will take that as a yes vote for you or leaning yes vote? >> no. >> is that a leaning yes for you? >> i voted no on the boehner deal. we spent $4 billion a day. the first year cut number is 4 billion for the year. that is the heart of my concern here. >> can either of you answer this question? balanced budget amendment is very close to me. i want these democrats on record we know for a fact i know in the power point they say the balanced budget vote will take place between october 1st and the end of the year. do we know whether or not harry reid would have the right ones to table that and take away at least the spirit of the deal? >> we don't know whether he

would be able to i don't think so under this agreement. he controls what the floor is he controls what the nature of that bill is, too. you know there's a broad breadth of what the balanced budget amendment would be. we could put forward a balanced budget amendment some of us work in the house knowing that it would die when we give it to the house. may even die in the senate. >> congressman give you the last word. >> the balance the budget amendment is pitifpitiful. you even have democrats support. we cannot let go of that balanced budget amendment is key to our future. grease is the word. we don't want to be greased we want to be an economic super power. >> both of you, leaning yes or leaning no? where are you? >> probable no. >> i was no in some of the other ones balanced budget cool but the leader went a good direction. we will read the bill but we

really need to do more. >> guys, we have to pass the bill to know what's in it. no i am kidding. coming up we have all of the latest as the breaking story continues to develop. we have the cover straight ahead. [ male announcer ] get ready for the left lane. the volkswagen autobahn for all event is back. right now, get a great deal on new volkswagen models,

including the jetta, awarded a top safety pick by the iihs. that's the power of german engineering. hurry in and lease the jetta s for just $179 a month. ♪ visit vwdealer.com today.

>> this is a fox news alert. president obama and congressional leaders in the house and senate agreed to a deal to raise america's borrowing limit. here is more of the president's announcement from just a short time ago at the white house. >> i said from the beginning that the ultimate solution to our deficit problem must be balance. despite what some republicans argue we have to ask the healthyest americans of biggest corporations pay their fair share by giving up tax breaks and special deductions despite what some say i believe we need to make modest an justments to programs like medicare to make sure they are still around for future generations. >> joining me reaction to the last compromise the host of barney and company at the fox business network. republican congressional committee karen han ert. i am being told the conference call is still going on at this minute with the leadership in the house and representatives is

that the bush tax cuts are allowed to expire. the president made that statement about what he just said their fair share and yet the republican power point says no tax hikes. they were the ones arguing if the bush tax cuts expired that's a tax hike. >> this president won't leave it alone. he keeps saying the rich have to pay their fair share and big corporations have to pay their fair share. are we going to raise taxes on anybody when we are going to go probably into a recession? let's get out of the wes. are we supposed to celebrate we are going to add only 7 doctoral dollars to the debt as opposed to 10 trillion? you stand back and look at our picture in america objectively we are going to be downgraded. we are on the verge of a recession. we have got a president still talking about tax increases and we have only just escaped the so-called dilemma of default. we are still on the road to

greece. >> even reject the 0.4 percent that is frighteningly low and that means unemployment will go up. when the moodies downgrade comes, correct me if i'm wrong, interest rates will go up consumer spending will go down and that will spiral the economy even further down. >> if and when we are downgraded i think we will be the worst impact will be on hundreds of towns man cities across the country which could be forced into bankruptcy with untold continues whenss. >> i am seeing it the same way you are. moody said on friday in fact leather plan the reed plan the boehner plan met the limit and reductions of the magnitude being proposed would lead the moodys to adopt the negative outlook on aaa rating. translation that means the aaa receipting --ating will be downgraded. we are not dealing with the proper baseline here but the spending increases go up about 8 percent a year. stewart is right.

instead of $10 trillion in new debt it will onlye 7 in ten years. i don't know if the american people undstand that. >> i get this. this is less than ideal. owe bambina doesn't think it is ideal. you and i and the reiths of the rep -- rest of the republicans don't think it's ideal either. let's not lose sight of the victory. the unemployment number is worse today than it was in december of last year when obama came and he agreed not to increase taxes on the upper middle class. >> you are calling this a victory tonight. >> sean, you are going to -- harry reid didn't want his twenty-some odd vulnerables voting on it. >> we have two big victories today. i understand it's not ideal. i understand pragmatism doesn't make for great tv but let not

lose sight of the fact there are no tax increases in this deal. he doesn't get tax increas on jet owners. this is not this quote-unquote balanced approach that b obama held 6 press increases he wouldn't sign anything short term. he is going to sign it. it's not going to increase taxes. i know it's not ideal. but you know what? the chances of this -- the chances of this commission with three republicans on it proposing tax increases at the end of the year when i guarantee you this economy will be worse in december than it is today. they are gt to go to if obama would have raised taxes last december why would he raise them this december? >> there may be a short term tact kel political victory if you want to call it that here. i am looking at the big picture here. we are not improving our debt situation. we are still on the road to

greece. >> we better win in 2012. the big picture is we have to win in 2012. you get the debt ceiling deals you have with the president which is what broke bill crystal today. we control one side of the house we don't have the presidency. this is about as good as it's going to get today. >> house members did not have their legs cut out by the senate. they held firm on cut and ballots. it would have been a far better scenario in this environment they would have won. >> they wouldn't have. >> president obama's shoulder it is his fault he spent us into that downgrade. it is his fault his policies failed and resulted in the recession which is just around the corner very probably. it is on his shoelters. that's where we can agree. >> we are going to have to stop it here. >> we can agree in 2012 we need to make sure obama is not

reelected. that's the big picture. >> coming up as the great new storr reunfolds we have brand new details on when the house and senate will vote on this so-called compromise. juan williams our great american panel. we have the latest in the breaking developments straight ahead. phillips' caplet use gnesium, an ingredient that works more naturally wityour colon than stimulant xatives, for fective reli of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna... our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time.

>> this is a fox news alert. to avoid a default the house and the senate in washington have in fact announced they have a deal and this announcement came from the president a short time ago.

at this hour congressional leaders are reportedly gathering with members in an attempt to win over their support for the compromise. there is also word votes on the measure could go down as early as tomorrow. here with developments the author of a brand new book "muzzled an assault on an on nest doe ba honest debate" juan williams is back. the liberals are furious over this deal. are you one of them? >> it is not a good deal in terms of the direction i think the country should be going. i am with president obama when he said look we have the lowest spding level for government since president eisenhower. what we have in terms of taxes is also one of the lowest in the last 60 years and yet we have no sense of sheered burden by imposing some tax on tax burden on the rich in our society. corporations have high profits

wall street is booming. the defense department are seniors. part of the deal potentially is serious cuts. you are not going to raise taxes. >> we shouldn't make decisions regarding the funding in defense based on arbitrary cuts they want to make. we have to make it on threat assess am i don't think that's a common sense way to do it. i have to argue since obama has been president 84 percent increase in discretionary spending. we have nooerl 5 trillion in debt owes accumulating he spends us in oblivion. having to spend throughout this process and the president never has the moral courage to leave. now the president is out of it. president is pretty much you can go out and make the big

announcements. he never laid out his plans to the american people. the senate never voted on a plan. for all of the criticism with republicans in the conservative ranks they cut cap and balance they at least passed another bill. >> you said the president spent us into oblivion they get -- the previous president president bush half the prescription benefit through ward. they want to put it on the book to say we have to pay for those wars. >> the 7th year in the bush presidency the budget deficit is 153 milli 1$53 billion the last was $450 million. and for every year now it's 1.5 this year 1.65 trillion.

four times the one bad year president bush had. you can't make a comparison bush had in 4 years. >> you are beating up on president obama. you don't pay to the idea that the country was facing the potential de -- recession. he pulled us off the brink. this is what we are going through now. you are having a tantrtantrum. your man d -- you are mad at otr republicans. why are other republicans staying in the tea party. you have gone over the line. you are encouraging other behavior. >> all of a sudden compromise juan i know it's a good term in washington. all of these compromised cumulatively have got us to the point where we are headed towards $22 trillion in debt this country that our kids are going to have to pay back. that's compromise.

let me finish this point. >> what about dealing with the recession this president avoided us having economic landing. >> it is .4 percent in another recession. >> you hate the stimulus spending. usually that contributed under the spineless obama. what i am saying to you is 40 percent of the stimulus spending was on tax breaks for people. >> that was obama's bill passed without a single republican vote. unemployment is still 9.2 percent he promised it would prevent a calamity and catastrophe. this summer is worse than last summer. >> in other words you have great ideas. in other words president obama tried to spend some money cut taxes with everybody in the country. 40 percent of the stimulus

spending all you can do is say well it didn't exactly work as i predicted as opposed to saying what republicans are doing all along. >> here's what i am saying to you juan. this is important. this is why i admire the tea party conservatives. instead of 10 trillion in new debt in ten years it will only be 7 trillion in new debt. every year they spend more money. like the tea party conservatives are saying free spending right now at this year's level let's cut one percent a year. one percent a year every year for six years, we won't burden our kids with another 8 trillion in debt ore 10 years. this is compromised and when does standing on principal and ballotsed budgets become such a crime you have to be called a hobbit and a draconian cutter that is throwing grandma over

the cliff. >> you know what's interesting about this to me? i am sensing sean is not even arguing with me he's arguing with himself. you are accustomed to representing conservative points of view, here you have such a fracture among conservatives those saying they are a hobbit in the tea party hurting the party's chances in 2012, putting him in a position to say the republicans damaged the economy. it is hurting you and you don't want to deal with it. >> his budget with democratic support in both houses these are his deficit it was his debt it was his failed stimulus. it's his reckless obama care. >> george bush did nothing. after george bush wrecked the car how about that. >> is jimmy carter on steroids and he's destroying this american economy. >> criticize democrats because you don't want to deal with the reality of the split and the craziness inside the republican

ranks. >> because i am such a good guy i will give you the last word. >> you are a gentlemen. >> the american panel next. kim and james are what you might call overly protective. especially behind the wheel. nothing wrong with that. in fact, allstate gives them a bonus -- twice a year -- for being safe drivers. dollar for dollar, nobody protects you like allstate. the frontline plus killing force is there annihilating fleas and ticks. ♪ visit completekiller.com and get a coupon for frontline plus. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster.

the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or sn crab and crab butter shrimp. [ jon i wouldn'tut it my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea fd differently. isn't some optional pursuit. a privilege for the ultra-wealthy. it's a necessity. i find investments with e-trade's top 5 lists. quickly. easily. i use pre-defined screeners and insightful trading ideas to dig deeper. work smarter. not harder. i depend on myself the one person i do trust to take charge of my financial future. [ bell dinging ] it's a cloud of depression. and although you've been on an antidepressant for at least six weeks, you're frustrated that your depressive symptoms are still with you. seroquel xr, when added to an antidepressant,

is approved for the treatment of major depressive disorder. for many, taking seroquel xr with an antidepressant was proven more effective for treating unresolved symptoms of depression than an antidepressant alone. call your doctor if you have unusual changes in mood, behavior, or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. elderly dementia patients taking seroquel xr have an increased risk of death. call your doctor if you have fever, stiff muscles, and confusion, as these may be signs of a life-threatening reaction or if you have uncontrollable muscle movements, as these could become permanent. high blood sugar has been reported with seroquel xr and medicines like it and in extreme cases can lead to coma or death. your doctor should check for cataracts. other risks include increased cholesterol and weight gain as well as seizures, dizziness on standing, drowsiness, impaired judgment and trouble swallowing and decreases in white blood cells, which can be fatal.

use caution before driving or operating machinery. for more help putting distance between you and your depression, ask your doctor about adding seroquel xr today. learn more at seroquelxr.com. if you can't afford your medication, astrazeneca may be able to help. >> developments related to the debt limit deal.

editor of national review syndicated columnist rich lour is here. doug shown is with us she is an anchor of the fox business network. nicole pedaliki. i give you a lot of credit for bravery hanging out with the guys on the floor. let's take republican and democrat out of that. you didn't call me a rob b hobh. you didn't call anybody a hobbit. taking that out this is a reality we have to deal with you. we are not dealing with group problem but every year we are increasing spending 8 perts a year over this ten-year period of time we are saving a trillion, 2 trillion, $3 whatever the number is we are still accumulating 7, 8 trillion more in new debt. that is not a rescue. >> 7 trillion instead of 10

trillion. the obama administration spending much more than the bush administration spent in 8 years in his four years alone. i feel like they are spending spending spending. i feel like i am a nonbeliever now i am getting this for now. we continue to hear the rhetoric about the corporate fat tax. you have the topper taj of people paying the entire federal income tax. now obviously our triple a rating here is gone. this just happened now. so now the polls are dropping and now the republicans really need to look elsewhere. >> i agree. i do give them credit. they did repeal obama care. they didn't have support in the senate. the white house. they didn't vote for the ryan plan they vote for cut cap and balance. they did a lot of things here. in the end i think they should have passed cut cap and ballots with both of their hands. but what about the 7 trillion, we are still going to increase the debt in ten years.

>> this is a short term political victory for capri miedz. it is a victory for republican principals because obama's # 7-0 the budget is gone. this is no taxes and cuts. but longer term you are right. this is no solution to our long-term problems. it doesn't do anywhere near what the simpson plan does and bottom line, we have the same problems today we had yesterday. only thing we have is a framework for an agreement and a mechanism that i don't understand and don't think works. >> now we get downgraded. moody's pretty much said it on friday. we are going to be downgraded. we still have 5 trillion in obama debt which is going up higher in spite of this deal. the american people lose but the panic is over now. they get to play golf. the president gets to play golf go to party the and get on a normal schedule. >> part of the nightmare

scenario deadline is the downgraded. they were saying that over and over and over. we are getting downgraded because they have made this problem worse over time. came into office made the sort term deficit worse. he made the long-term debt problem worse by causing unsustainable on top of the other ones. >> let me make a prediction. we will get back to the shape matter and form they are going to lose a lot of conservatives. going to get sent back to the house. get a lot of conservatives in the house as well. i assume nance pelosi will have to whip the democrats. >> they are not going to get this through without democratic votes. my sense in listening to garrett is they will fold and come before it. that is not certain to me. the longer it takes to get to the vote the more problematic the whole thing is. >> i don't necessarily have any faith in any of this. i feel it's a little band dade

it doesn't feel good it doesn't feel good to have our aaa ratings gone. mohammedal ry the big bond guy he -- all of these wall street guys were expecting something would happen. it's a little thick. last week don't forget it is more than we have seen in a year. >> futures are higher. last week weless over 4 percent. the worst week we have seen in over a year. >> we are going to more news on the late limit deal as it continues to break in washington. more with our great, great american panel straight ahead. i couldn't concei this as a heart attack.

the doctor leaned over and said to me, "you just beat the widow-maker." i was put on an aspirin, and it's part of my regimen now. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go see your doctor now.

>> what's the fallout? >> one thing i have noticed and can't let go knowing the obama administration president obama himself has really been di vieding the country. he's supposed to bring a leader and unity. there's never been a bigger divide. you are supposed to divide the big guys and he is happy to pay more taxes. don't just give it away for his stimulus et cetera, et. i don't like the divide. it doesn't feel american.

>> we are downgraded we are all downgraded. >> we get downgraded interest rates go up. >> yes. >> people have less money consumer spending goes down. that further you know the chance of growth. >> it is terrible the whole thing is terrible. gdp numbers came out. we are facing a recession. there is no growth and no consumer spending. we go down to double a then you see higher rates for everything from credit cards, gasoline, 30 year auto loans student loans and also you are going to be paying more when you are selling your stocks and bonds. there are so many things woven into that and we are paying more in our taxes to obama care in the years ahead. >> obama advisors all over tv trying to blame republicans on economic conditions for the debt fight when the slide and slow down started months ago.

on capitol hill we made themselves irrelevant by playing the negotiation. he sat down initially and cut the deal with harry reid and harry reid would wind up swallowing the basic framework he said no, no, no. democratic senator wrote a letter saying we are going to reject it. >> i think it was a minor victory for republicans but to beat democrats who initially wanted a clean debt deal. look at the out raej from the left. >> the president basically slithered off the hook because if there was a default it would have been cataclysmic for him. >> every time you are on the program you talk about the country being together. i know you personally and you are sincere. how about having connie mac and rand paul on to talk about the mac penny.

this is simple. anybody at home. will free spending in 2011 presit where we are now what we spent this year and in every year for six years we were to cut 1 percent a year and then the last two years so six years we do that the last three years 18 percent of gdp in terms of spending we balance the budget in 8 yee years. if any one at home has financial difficulty you have one percent this year i think that's doable. >> my position is we have framework to move in that direction. that is too draconian. >> one percent decrease it from this year to next is too draconi draconian? >> i think it is people are hurting. the larger point is we are all in this together. we haven't had real discussions about cutting and spending. >> i don't like the spending. >> 4 percent a year for six years. >> a process to do that as part

of an overall agreement i would support it and have the project. >> i feel like they are continuing to spend their way to putting out the stimulus the whole economic team promised them so much and all they did was spend, spends, spends. high unemployment over 9 percent. you still have houses next to nothing. we have interest rates going up by the way we are losing our aaa rating. >> will this bill get passed to conservatives or against it in the house? >> conservatives i talked to in the senate aren't going to vote for it. >> what i would be focused on changing is sequestered by 50 percent. >> it would be huge in showing to your question it could jeopardize americans. the longer it takes to get to a house vote you could lose conservative the on the right progressives on the left and listening tonight to what i heard i am not at all certain this is a done deal. >> that is the word uncertainty.