agreed with newt gingrich. >> that's the most embarrassing thing you said ever. >> it was a good show tonight. let not your heart be troubled. the news continues. greta's next. we'll see you tomorrow. i'm bret baier in washington. ohioance have made their minds up on two big ballot initiatives tonight. first, voters have rejected a new law restricting collective bargaining rights for unionized public workers. the associated press has already called this one, and it's a defeat for republican governor john kasich. he talked about it just minutes ago, saying essentially he has to take a deep breath now and reflect on what all this means to him. we'll have much more of that sound from the governor's press conference a little bit later here on fox. the other initiative in ohio concerns the health insurance

mandate in president obama's health care law. voters have decided they do not want that. they have approved a largely symbolic constitutional amendment banning that part of the law which is the lynchpin of obama care. judging by the returns, while unions did manage to get big numbers out to the polls on issue 2, the collective bargaining issue, those same voters aapparently voting overwhelmingly against the president's health care man day. odes iohio is a swing state ton. virginia voters at last word, we just checked, republicans were ahead in one of those races. this is for the state senate. several of those raises are close tonight. in mississippi the ballot initiative defining the beginning of life as the moment of fertileization is losing currently. this would be a defeat for opponents of legalizeized abort. we'll have a complete wrapup of

all the election results at 11 p.m. eastern time. we'll hear from the heads of the republican and democratic governors associations about what tonight's results mean for the 2012 race, and an all-star panel. it's time for on the record with greta. >> greta: tonight mr. herman cain a adamantly denies inappropriate sexual behavior and he's placing blame. >> the fact is these anonymous allegations are false and the democratic machine has brought forth a troubled woman to make false accusations, statements, many of which exceed common sense. they certainly exceed the standards of decency in america. >> greta: we'll have much more of mr. herman cain in a minute, but first, it is election night, and just moments ago voters in ohio voted down a law that would have severely limited collective bargaining for thousands of public workers. voters also just voted for a measure to allow ohio to opt out

of a federal insurance health mandate. they're sending big signals to the rest of the country. tonight's decisions could be the warmup for the 2012 race. so what do the results hint about 2012? republican national committee chairman joyc joins us. >> thanks for having me. >> greta: big news out of ohio. let's talk about issue 2. collective bargaining shut down. governor kasich no doubt disappointed. >> it's a state issue. i'm from wisconsin, obviously a much different outcome. the bigger issue nationally out of ohio is issue 3 which really puts obama on the ballot. his keystone piece of legislation, obama care, goes down in a major way, and i think that's what's really personalized nationally, and what you can glean from ohio if you want to take anything out of that state tonight. >> greta: so the republicans won issue 3, the one about the health care but lot of on the collective bargaining. i actually think it has national appeal because the thrust is

smaller government and cur tailing the rights. i don't think it's something that's such a localized issue. >> i guess i beg to differ. i mean, i think when you talk about collective bargaining, when you talk about those issues that are unique to local units of government and how a state's financing work and how they're shared revenue works in a particular state, what that means to local government units and police and fire and teachers, i think it's preal local -- pretty localized. i don't think there's a national collective bargaining issue on the ballot that will play in 2012, but i think the issues of spending obama care, the president. you know what i take out of this election? it's that all of these, whether democrats have victories or republicans have victories tonight, there's one comdenominator in all of this, and this is that democrats, whether the governor in kentucky or state senators in virginia who are democratic, they number

one didn't want to be seen with the president. they ran against the president actively through their advertising. they came up with the flu and travel conflicts when the president rolled into town, and i just happen to think that's really the issue that comes out of tonight which is this sort of standoffish approach that democrats are having towards this president. i think it's pretty obvious. >> greta: in the collective bargaining issue that didn't sufficiensurvive in ohio, the ds were able to amass tremendous amounts of money. that showed a tremendous enthusiasm, union money, which may be an indicator of what you'll face in 2012. there's still that moment tum and enthusiasm, at least in ohio and at least for this issue. nonetheless, you must have your radar up on that one. >> sure. the same thing happened in wisconsin. you had $30 million in democratic and some union money coming into play. that's the difference between soft money races and hard money races. without getting in the weeds on

campaign finance laws with you, the difference in a presidential election is that hard money, candidate money, committee money, rnc, dnc, hard money becomes king in a presidential election. they have a tendency at the end of the campaign, hard money can squeeze out soft money in a presidential cycle. that's why raising money both on the candidate level and the committee level is so important. i'm pretty confident if you look at the direction of this country, if you look at what americans are looking for, and if you look at the polling, the most important poll out there, greta, is this poll. do you believe america's on the right track or the wrong track, and over 70% of all americans say the wrong track. >> greta: which must really rattle the president, that, of course, and the fact in ohio they certainly don't like the health care mandate. it's a largely symbolic victory for those who oppose national health care. nonetheless, there are loot of sort -- a lot of symbolic gestures toward the president that people don't like. they're afraid of the health care law. >> the president was on the ballot in the sense that his marquis legislation was on the

ballot and the voters in ohio rejected it. in poll after poll they've also rejected the prison. he's upside down in ohio. what does it mean for collective bargaining going forward? what it means is it's state by state issue. it's a legislative issue by legislative body issue. voters look at it differently in different states. think for the most part, americans want government to get its act together when it comes to spending and debts and deficits. >> greta: one issue not on the ballot in ohio is the unemployment rate of 9.1% in september, still a very stunning number regardless of the two ballot issues, that certainly must send some, i don't know, some ripple effect at the white house. >> well, it does. americans know it. americans need to get back to work, and we have a president who came to our -- our country as far as a candidate campaigning on the fact that he's going to be the great uniter, and now he's going out across america as the great divider, pitting everyone

against each other, republican versus democrat, rich versus poor. let's get everyone working against each other but throw everything out at the fan that we can and see what happens. that's the president's strategy. >> all right. and as i always do, as congressman ryan, packers? >> well, 9-0 this weekend. >> greta: that was amazing. thanks for joining us. >> thank you, greta. >> greta: do you think president obama is watching the election results tonight, and should he be? in tonight's results, a hint of what to expect. brit huma hune joins us. what do you think about the results? >> i would say this establishes not that labor can raise money but they can get people out to the polls. this was an issue that went to the heart of what labor cares most about. the law was drawn in such a way that it affected not just teachers and other public employees but also police and firemen and women which made it more vulnerable to attack from

labor. and so labor wins big on that, and it shows that labor still has muscle in many places. remember, greta, the point made earlier by the chairman about the vote on the obama care mandate. while it may not take effect because federal law is supreme, this is the same group of voters that backed the union law repeal, right? and the result is that you get the same people essentially voting against obama care that came tou out to support labor. the white house would have to be concerned tonight that you turn all these people out to the polls and they may vote to support labor's cause but they're also voting against obama care. >> greta: wouldn't you have thought that either there's sort of a split here in the sense that you would have been in favor of the collective bargaining law. >> you would think that. >> greta: what's your explanation for the split? the republican party, i guess, lost on the collective bargaining but won on the health

care? >> what i would say, this is something that gives republicans a reason to take heart. back in the '80s they worked hard to get people to the polls in consecutive elections. a lot of blue collar voters brought to the polls voted for ronald reagan. the democrats don't want to see that happen again. that's a possible take away from this result, although this is an important win for labor, make no mistake about it. >> greta: is the president watching it? >> of course. i don't know if he's sitting up, but obviously he -- look, we've been looking at polls. these are votes. that matters more. >> greta: i'm curious about your thought on mr. herman cain's press conference. >> he did about the best he could with the hand he's been dealt. he's not only confronted by three women whose names are beginning to surface, at least one of whom's name surfaced today, we know of two who filed sexual harassment complaints but by the woman who came out

yesterday and described in painful and graphic detail about what happened to her. this is a tough thing for a campaign to bear. he's finally got a lawyer on par with gloria allred. he was smart to give a blanket absolute denial that any of this happened. once you get drawn into the details, it's a bog that's hard to get out of. look. i'm not saying he's telling the truth. i'm not saying that the accusers are telling the truth. i think he did about as well as he could. a very unfortunate circumstance. >> greta: so we wait for the next couple days. that's how we sort of measure? >> well, the problem with the polls is that they always seem to be a couple of days behind the events in this case, and you know, now you know that the second name has come out who was actually i guess the first woman who made the sexual harassment allegation while he was at the restaurant association. she came out. her name surfaced today. she's prepared and wants to hold a joint news conference with the

other alleged victims here. if that goes forward, then presumably mr. cain will have to respond to that, and of course, every news cycle that goes by in which he's forced to talk about this instead of the cientdz he wants -- kinds of things he wants to talk about is harmful to his campaign. that's the treadmill he's on, and it's not helpful for his campaign. >> greta: speaker gingrich gaining some momentum these days? >> there's a know maddic element that has pitched its tent. it was with bachmann for a while, migrated to perry and now it's with cain. as a result, it might my great toward -- migrate to speaker spr gingrich. he's emerged as sort of an avuncular fellow with ensilo

encyclopedc knowledge. straight ahead. former governor ted strickland is calling the collective bargaining law in ohio an attack on working class americans. apparently some voters agree. what's next? governor strickland is here to go on the record. mr. herman cain is fighting back. he is denying the accusations against him, but you will hear directly from mr. herman cain next. plus senator john mccain is blistering mad. so mad he was pounding the podium on the senate floor. we went to see him to find out more. senator john mccain coming up. three years from now, a 2011 ford fusion is projected to be

worth more than a 2011 toyota camry. any thoughts on this news? are you sure? i'm absolutely positive. fusion is projected to hold its resale value better than camry.

congratulations. congralations. today, the city of charlotte can use verizon technology to inspire binesses to conserve energy and monitor costs. making communities greener... congratulations. ... and buildings as valuable to the bottom line... whoa ! ... as the people inside them. congratulations. because when you add verizon to your company, you don't just add, you multiply. ♪ discover something new... verizon.

♪ feel the power my young friend. mmm! [ male announcer ] for unsurpassed fru and veggie nutrition... v8 v-fusion. could've had a v8.

>> greta: the fiery ballot over collective bargaining in ohio, voters reject the new law tonight but the aflcio president said tonight is just the beginning of the fight. griff jenkins joins us live from columbus, ohio. griff? >> reporter: greta, i've just left minutes ago a press conference with governor kasich who appeared humbled, con great congratulating the folks who won. he said clearly the people have spoken, and that he needs to take a deep breath and really think about things and what this

all means for ohio and his focus still being on jobs. as you mentioned, some of the other important voices on this i spoke with earlier today. take a listen. >> we sent these guys to office to create jobs, not to try to fight with workers or destroy our voice. this will say to people let's go create jobs. let's go that together. let's put america back to work. >> could you envision afl-cio or something similar wha to what happened here taking place in wisconsin? >> we'll see it in other states. tonight isn't the end of the fight. it's the beginning of the fight. they'll continue to do some of these things rather than working with us to create jobs. we'll continue to fight them. we'll continue to get stronger. the more we fight them. the american public is fed up with it. they're tired of it. they don't like an economy that works for the top one percent and leaves the other ninet 99% s behind. this will have a washover effect. >> what we have upon us is we

have state governments and local governments across the nation ready to burst. we have to give our government, our local governments especially every chance that they can get to restore fiscal accountability. one piece of the puzzle is collective bargaining. we need to give them the tools to be able to manage their government as they as elected officials should be managing it. we have to give them the tools to restore fiscal accountability. they need to be able to properly staff their police departments, properly staff their fire departments, and their schools and to be able to avoid massive layoffs and massive tax increases which would happen if issue 2 didn't pass. >> reporter: greta, i asked governor kasich in that press conference moments ago what the the implications this result might mean in the 2012 elections. he said, quote, i don't think about those things. he's focusing on the 41,000 jobs he claims he had hand in creating or saving here in the state. lastly, on that other issue

getting some attention, issue number 3 which is a referendum on president obama's health care law, that passed overwhelmingly. i spoke with the attorney general here and said what are the legal implications on this state of ohio or ohioans being compelled to have to purchase insurance? he said it had implications state wide but ultimately it will be decided by the supreme court. greta? >> griff, thank you. >> greta: a leader of the crusade against the law, governor ted strickland. good evening, sir. on the one hand you got a victory on the collective bargaining on issue number 2. on issue number 3 you got the slip side of the coin. tell me, first of all. i'm curious on the collective bargaining. what is the governor now to do to sort of manage the budget of the state of ohio? he can't do it via the curbing of the collective bargaining rights. >> well, greta, this senate bill 5 had very little to do with ohio's fiscal circumstances.

it had everything to do with the attempt to consolidate political power. i think that's why republicans as well as democrats and independents have cast the citizens veto because they recognize this was an unfair piece of legislation, and people came out across ohio in large numbers today. i'm very proud of ohioans and the people have spoken, and i, you know, the governor has to decide what his response is, but i am very proud of ohioans tonight. >> greta: are you very proud of the ohioans that they sent a message that they don't like this health care business? are you proud of them on that as well? >> well, quite frankly, as was recently said on this program, what happens with the health care legislation will be determined by the federal courts, and so this vote in ohio was -- was fairly meaningless in

terms of its effect upon what actually happens ultimately in terms of the affordable care act. consequently there was not a lot of effort put into this effort in ohio. it was largely an issue that was not fought hard on either side. >> greta: well, you say it's meaningless, but i think to the many voters who voted for it ratherather overwhelmingly it wt particularly meaningless and it sends a signal that must be rattling people that like national health care. i don't think it's meaningless to the voters, certainly doesn't look like that by the numbers. >> well, greta, the fact is that there was very little campaigning done on this issue. i think people voted for, you know, reasons that were perhaps not fully understood. >> greta: are they dumb? are you saying they're uninformed? >> the reason there was not --

the reason there was not a real campaign on this issue is because everyone, republicans and democrats alike, understood that ultimately the federal courts will decide whether or not a federal mandate regarding health care is constitutional, and so it was a symbolic victory for those opposed to the affordable care act, but it really has no force of law in terms of what will actually happen in ohio and across america as far as the mandate is concerned. >> greta: i don't know, governor, if that's really fair to sort of divide it that way. i mean, i understand sort of a split victory, but to say, you know, that you're proud of ohioans on the one hand and say well, you know, it wasn't campaigned on much, they voted for it, but it's largely symbolic. i think those people were sending a strong message about how they felt. >> greta, please. don't misunderstand me. i'm not -- i'm not saying that i'm not proud of ohioans for

everything they did tonight. they came out in large numbers. they cast their votes, but everyone knows -- people across the country know that the real ballot in ohio with senate bill 5 was issue 2. both sides joined in that debate over several months, and an 234 overwhelming numbers the people of ohio said this was an unfair piece of legislation. it unfairly scapegoated public employees for an economic circumstance that they did not cause. we know what caused this recession that we're dealing with. it was human greed and much of that emanated from wall street, and the people of ohio said we're not going to stand by and let our nurses and teachers and firefighters and police officers be scapegoat scapegoated becaust of circumstances that they did not cause. that's what's happened here in ohio tonight, and that's why you know, i think i just -- i'm very

proud of ohioans. you know, the fact that they voted as they did on the third issue, that was the people speaking, obviously, and i respect what they intended to say regarding that issue. but greta, this is a good night in ohio. democracy in action. it's been a beautiful day, and so we're just celebrating. >> greta: all right, governor. thank you very much. we'll be watching ohio. it's a big player in 2012, and it's always nice to talk to you, sir. hope you come back. >> hey, greta. thanks for having me. i really appreciate it very much. >> greta: thank you, sir. coming up, mr. herman cain says he doesn't even recognize his latest accuser, so what does he say is really behind the sexual harassment allegations? you're going to hear what mr. cain thinks. that's next. also, it's a ticking time bomb. there's a new and dangerous threat from china. it could put the lives of u.s. troops at risk.

senator john mccain is here to tell you all about it. [ coughs ] what is thishorty? uh, tissues si i'm sick. you don't cough, you d't show defeat. give me your war face! raaah! [ male announcer ] halls. a pep talk in every drop. ♪ ♪ mama said there'd be days like this ♪ ♪ "there'll be days like this," mama said ♪ [ male announcer ] the toughest job on the planet just got a little easier. with one touch technoly and even an air scrubber.

the nissan quest. innovation for family. innovation for all. get up to $050 total savings on the 2011 nissan quest. ♪

♪ imagine me and you, i do ♪ i think about you day and night ♪ ♪ it's only right ♪ to think about the girl you love ♪ ♪ and hold her tight ♪ so happy together [ male announcer ] when life changes, so can your insurances needs. use travelers free guide to better coverage to stay prepared. is your auto and home insurance keeping up with you? contact your local travelers agent, or call 800-my-coverage. ♪ a refrigerator has never been hacked. an online virus has never attacked a corkboard. ♪ give your customers the added feeling of security a printed statement or receipt provides...

...with mail. it's good for your business. ♪ and even better for your customers. ♪ for safe and secure ways to stay connected, visit usps.com/mail i'm bret baier in washington. this is an update from america's election headquarters. republican phil bryant has won the mississippi governor's race succeeding term limited governor haley barbour. the attempt to make it law that life begins at fertilization is

trailing in the hour. another ballot initiative would severely restrict how the government could use eminent domain to take private property. opponents say it could cost jobs. that argument not carrying much weight. republicans in ohio are celebrating one vote and mourning another. a new law limiting collective bargaining rights of public workers have been rejected. governor john kasich said the decision will cost taxpayers money. >> as far as local governments go, you know, we'll work with them to help them overcome their challenges. but let me be clear. there's no bailout coming. there is no bailout because frankly, there's no money. we are not in a position after digging our way out of a huge hole and fortunately being able to get a credit upgrade for our state, an improvement from negative watch to stable, we have to be very careful with our money because these are tough economic times, but what i will say is it's going to be very

important for local communities to figure out ways to deal with their cost challenges. >> the other big question in ohio, whether to reject the insurance mandate in president obama's new health care overhaul, ohioans did in big number. the ballot for control of virginia's senate will come down to a close vote. they're leading in one at this hour. pleadplease join us at the top e hour, 11 p.m. eastern, for a complete wrapup of tonight's tos election result. we head back to on the record and rejoin greta. >> greta: an adamant mr. herman cain vigorously denies the latest sexual harassment accusations against him. >> the charges and the accusations araccusations i abs. they simply didn't happen.

they simpl simply did not happe. well, i happen to think where it's coming from is that some people don't want to see herman cain get the republican nomination and some people don't want herman cain to become president of the united states of america. >> mr. cain also insists the accusation will not stop him from running for president, but will they have an impact on the voters. rick klein joins us. good evening. nice to talk to you from new york. i guess we really won't know that answer until the first election, but certainly a lot of talk about whether this will have an impact on voters. so your thoughts? >> i think he has a real credibility problem to square with voters. if you believe herman cain, then you have to reject not just what one or two but five people are saying on or off the record. their testimony is out there. he has to say all of this is part of the democratic machine out to get him. first he hot it was rick perry. now the democrats are behind it.

i think he raised more questions than he answered even in today's performance to go out there with a lawyer and try to reject wholesale all of these things. i think he'll have some credibility issues that have to get squared with voters. otherwise this will have a drip, drip effect on voters in the next round of polling. >> greta: here's the problem. you say five people because it's convenient for all of us to sort of get sucked into this a little bit. actually, there are only two. we only know two. >> two have gone on the record, right. >> greta: the one thing that's curious. gloria allred did something curious. she held up two papers that she said were affidavits and she would not provide us the names. those two people supposedly received the information about some sexual harassment claim back about the time it allegedly happened burks she won't provide us that information so that we can find out from those people what really was told to you and when was it told. she sort of dangled that out there. we're unable to get the facts

there. then we've got another one who we don't even know the specifics of but who signed an agreement in which it says that both people say, i forget the agreement. neither one of them admitted anything was done wrong. it's awfully squishy to me, you know. i'm from the courtroom, and i'll tell you. i'm not, you know -- we need more. i'd like to see those two who signed the affidavits step forward and let's talk to them and find out. >> of course, greta, but it's hardening up by the day. that's why we saw mr. cain having to go out again to reject these charges and say over the weekend he's not going to talk about it any more. to have to go out again, i think today he raised some other issues for himself as well. he flat out rejected even having met the woman who made the charges yesterday. he said he have no recollection of that. he got into a lot of lawyerly explanations. that's problematic. what he has going for him is he is a straight shooter, a no nonsense guy. if he gets into these kind of

questioning of this, i do not recall, i'm trying to remember this or remember that, that's the kind of thing i think voters are likely to say wait a second. let's think deep and hard before we support herman cain. >> greta: no question sexual harassment is a very bad thing and it exists, but i think at least so far, if i'm sort of taking the pulse of the people i've talked to, hardly scientific, it seems that those who liked him before still like him. those who didn't like him before still don't like him, and i'm not so sure where we've gotten. >> no. we haven't seen it reflected in polls yet. in fact, the rounds of polls out there seems to suggest he's still a frontrunner. i thought something interesting has happened. abc went out and talked to all the presidential candidates today and several of them, including mitt romney, including newt gingrich, folks who previously haven't weighed in on this were pretty critical of mr. cain saying he's got to go out and explain it. i think they sense a vulnerability among his

supporters, they're casting about looking for a candidate. once they start to smell the blood, it's becoming a harder political situation to weather. >> greta: he didn't have their seven votes to begin with, but i'm curious to see what the response is in polls in the next week or two, and also to see what else develops because there's, you know, i'm sure that this is the kind of story that everyone'everyone's digging at. >> you've got debates and polls. herman cain is the man in the spotlight for the foreseeable future. >> greta: rick, thank you. who approved personal bonuses for fannie an fannie mad freddie mac. senator john mccain said the guys should be fired and billions are headed to the company in the form of another[ bailout. senator john mccain goes on the record.n that's next. ion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult.

prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. and celebrex is not a narcotic. when it comes to relieving your arthritis pain, you and your doctor need to balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if y have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may use death. patients also taking aspirin and the elderly a at increased risk for stomach bleeding and ulcers. o not take celrex if you've had an asthma attack, hives,

or other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of e face or throat, or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. autonsurance is often handed down from generation to generation,

because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. ben your lega. get an auto insurance quote. u.s.a.a. we know what it means to serve. i heard they found energy here. it's good. we need the jobs. [customer:] we need to protect the environment. [worker:] we could do both. is that possible? [announcer:] at conocophillips, we're helping power america's economy with cleaner, affordable natural gas. more jobs. less emissions. a good answer for everyone. well, if it's cleaner and affordable. as long as we keep these safe. there you go. thanks. [announcer:] conocophillips.

for a hot dog cart. my mother said, "well, maybe we ought to buy this hot dog cart and set it up someplace." so my parents went to bank of america. they met with the branch manager and they said, "look, we've got this little hot dog cart, and it's on a really good corner. let's see if we can buy the property." and the branch manager said, "all right, i will take a chance with the two of you." and we've been loyal to bank of america for the last 71 years. >> greta: . okay. first you paid in $170 billion in bailout for fannie mae and

freddie mac. last week freddy mack asked you -- freddie mac asked for $6 billion. senator john mccain is so angry he took to the senate floor to fight back. we spoke with senator mccain earlier tonight. >> i watched the video of you on the senate floor quite passionate about this 12.9 million dollar bonus to the executives at freddie mac and fannie mae. why can't you all just stop this? >> i think we're going to have to. we're just trying to find a vehicle. i'm glad to see that many are in agreement. it's outrageous. greta, the excuse that they're using is that somehow that fannie mae has done such a great job, we have other people who serve in government who do great jobs as well, and fanni fannie d freddie mac are owned by the

taxpayers today. we paid $190 billion already, it's cost the taxpayers, and there's about 50 billion or more to come, so to somehow assume that people can't do their job correctly without millions of dollars in bonuses when every day we have men and women who are serving, some who are putting their lives on the lines, they're not getting millions of dollars worth of bonuses. somehow, the overseer, a man named demarco, somehow said this is a good idea. he should be fired. >> greta: one of them gets $900,000 a year. >> which is more than any civil servant or anyone else. >> greta: no question about it. it's a significant sum of money, but what was so stunning is demarco said if they don't give bonuses that we're not going to attract so-called good people to the job to replace them which is bizarre to me at $900,000, but secondly, you say they're doing

a good job or someone does. they've asked for more money in the bailout, i think 5 or 6 billion dollars. i have a hard time understanding how if you need more of a bailout, we can say that you're doing such a fabulous job that you should get a bonus. >> they had the exquisite sense of timing to ask for $6 billion at the same time they were announcing these bonuses. by the way, if they're doing such a great job, i wonder why nearly half the homes in my home state of arizona are still underwater. in other words, worth less than the value of their mortgage. if they've been doing such a great job that deserves millions of dollars in bonuses. this is what makes americans cynical about their government, and i'm sure that congress gives them plenty of reasons to feel cynical, but this is just beyond that. >> greta: who is demarco? this man, mr. demarco, is appointed by the president. he has had many government jobs in republican administrations as

well. it's sort of appalling that he has his fingers on the purse strings of enormous sums to gra gratuitously grant bonuses. is there no one that can block it or do you have to go through a procedure? >> well, i've been told that treasury the department also had to sign off on it and has signed off as well. >> greta: so secretary of treasury geithner has in theory signed off on this? >> that's what i was told. the treasurer. i don't know if it got to his level or not. he's a busy man. it's just symptomatic of the reckless behavior. michael lewis book, the big short, they talk about this misbehavior of fannie and freddie, especially fannie all during the 90s and into 2000 and this guy johnson made huge millions and millions of dollars in bonuses while they were

scamming the american public and the regulators. i mean, it also is indictment on members of congress. they were part of this whole deal, and it was just a ponzi scheme that could not last. in scottsdale, arizona people were buying two and three houses, leaving them empty and flimflipping them a year or two later because it was so easy to get money to make money. >> greta: what i don't understand. i mean, everyone is appalled at these bonuses. 12.9 million dollars being divvied up among executives, everyone is upset. what i understand is if it had to go through layers, demarco, why wasn't he scandalized? did we mag to find the -- manage to find the few people in the united states who had the authority to do this? why didn't they think it was horrible? >> it's the mindset and the culture. this is the same outfits that gave hundreds of millions of dollars in bonuses that put us

in a hole, at least $150 billion that we've paid of taxpayers money to try to get us out of the hole that they dug. $6 billion more as we mentioned. now there's estimates of another $50 billion. the numbers are staggering. if you're talking about that amount of money, what's 10 or 12 million or so for bonuses because they're doing such great job? i mean, it's -- >> greta: there's just no means to go to this guy, nobody has the authority to say absolutely not? you're not going to do that? can the president do that? is there anyone who can just say no or does demarco have the authority? >> i think the president could say no, but i am very confident that congress will act. i really am. >> greta: doing what? >> just saying no. >> greta: how do you act? what do you do? >> no funds shall be expended to pay these bonuses. >> greta: the letter went out friday. i would have done it thursday or at least monday or tuesday. what's the delay? >> i think the next vehicle

that's up on the floor of the senate hopefully we can get it agreed to. that would require senator reid to agree. i'm not sure he would disagree, by the way. i think he would more likely than not agree. >> greta: straight ahead, more with senator mccain and a new threat he says the united states is facing from china. that's coming up. my sinus symptoms come with a cough

that stays even after i treat... [ male announcer ] truth is, most sinus formulas don't treat a cough. really? [ male announcer ] alka-seltzer plus sinus liquid gels fights sinus symptoms plus cough. you're good. [ male announcer ] thanks. that's the cold truth! ♪[ male announcer ] thanks. you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance.

the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪

>> greta: a warning ton about a dangerous problem with china. here's more with senator john mccain. i read that you are, i don't know if the word is upset but you're concerned about the fact that the united states defense equipment is being made in china and it's sort of scrap metal and it is counterfeit and false serial numbers. what's the story on that? >> it's mainly computers and chips. there's a place in china where it really is an industry where they just tear down these computers and they take the chips and they wash them in the river and they put phony dates on them if necessary, and through different shell companies, they get to our defense department who purchases them and then they're put into our missiles and airplanes and other pieces of the inventory,

parts of the inventory. of course, they're going to fail earlier if they don't -- even if they're no good to start with, they'll fail earlier. they're unreliable. and it's a really serious problem. i mean, there are hundreds of thousands of these chips and other computer parts that are -- that find their way into our defense equipment, into our inventory, and it's really -- it really can be harmful and could prevent us in an extreme case for our equipment to be able to work in combat. >> greta: it seems to me something so important as national security, can't we get parts from people who are on the team? i mean, do we have to go some place else so that we can do quality assurance? i mean, we really can't build these ourselves so that we know what we're getting and so we make sure that it's good material, that it's not junk?

i don't know if you can phony up or sabotage it, but we'll get it from our own team? >> part of the problem is some of these parts are no longer manufactured by the original manufacturer. the second problem is that we have a program to help, try to help, and it's a good program to try to help small business people. >> 2k3w0eu >> greta: in china? no. they have these companies and they buy these chips and then they resell them, and as senator levin pointed out, it goes through as many as four or five different companies before it ends up in the company or corporation that actually installs them. >> greta: can we ensure quality assurance. i know we want to help small business, i got it. maybe we can do this instead of going to china to get the parts. there seems to be a better way to do it for something so important as our defense computers. >> there's far better ways of doing it. the first thing is to tell the chinese to stop.

of course they deny it. then, of course, we have -- >> greta: that's not going to work. if they did, are you going to believe any foreign national, no matter who it is, is going to say they told us not to do it, so we're not going to? >> our missile defense agency is installing more severe checks and requiring higher standards and testing, so i think we can fix it, but god knows how many thousands and thousands and thousands of these are in our aircraft, our computers, our missile defense systems. there's a lot of them washing around, and the sustainability of the weapons system is very, very expensive. sometimes it's as much as 60 or 70% of the overall cost of the system itself. if parts fail, then, of course, they're not operationally ready, but also then it requires additional spending to get them back up into operational readiness.

>> greta: senator, thanks very much, sir. >> good to see you again. >> greta: nice to see you, sir. coming up, a tv host tosses mr. herman cain a surprising question and you may be surprised by mr. cain's answer. stay tuned.

you wouldn't want your doctor doing your job. so why are you doing his? only your doctor can determine if your persistent heartburn is actually something more serious... like acid reflux disease. over time, stomach acid can damage the lining of your esophagus. for many, prescription nexium not only provides 24-hour heartburn relief, but can also help heal acid related erosions in the lining of your esophagus. talk to your doctor about the risk for osteoporosis-related bone fractures and low magnesium levels with long-term use of nexium. possible side effects include headache, diarrhea and abdominal pain. other serious stomach conditions may still exist. let your doctor do his job, and you do yours. ask if nexium is right for you. if you can't afford your medication, astrazeneca may be able to help. that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's

largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪ ♪ [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie. could've had a v8. should i bundle all my policies with nationwide insurance ? watch this. on one hand, you have your home insurance with one company. and on another hand, you have your auto with another. and on another hand, you have your life with another.

but when you bundle them l together with nationwide insurance, they all work together perfectly and you could save 25%. wow... it's all in the wrists. ♪ nationwide is on your side ♪ if something is simply the color of gold, is it really worth more? we don't think so. chase sapphire preferred is a card of a different color. that's because you always get two times the points on travel, from taxis to trains, airfare to hotels, and all kinds of dining... from fast food to fine dining. and that's not all you get. there are expert advisors who answer immediately, whenever you call. and absolutely no foreign transaction fees. does your card do all that? apply today and earn 50,000 ultimate rewards bonus points when you spend $3,000 in the first 3 months. that's $625 toward your next trip when you redeem

through ultimate rewards. so, why settle for gold when you can have so much more? chase sapphire preferred. a card of a different color. call the number on your screen or visit our website to apply. >> greta: 11:00 is almost here, flash studio lights, it's time for last call. and mr. herman cain taking to late night tv. and jimmy kimmel asking unexpected questions. >> do you consider hiring gloria allred? it's your turn. you almost made me say something that i -- should not say. i can't think of anything i would hire her to do. i can't think of a thing. >> greta: that is your last call. lights are blinking and we're closing down shop. we'll see you again tomorrow nit.