that does it. now it is time for "the last word." have a great night. day one of government shut down and when it comes to republicans piecemeal plans we are already a third of the way through the alphabet. >> break down. meltdown. shutdown. >> dismay and disgust. >> hard to say a good morning here. >> it isn't a very good one. >> at midnight last night -- >> before midnight eastern time. >> republicans in congress chose how to shut down the federal government. >> this is not about me. >> stop governing by crisis. >> not about republicans in congress. >> house republicans compromised. >> we had a good day. >> compromised. >> stop governing by crisis. >> hurt the government. the congress. >> a foolish battle.

>> the republican party. >> what's the republican end game. >> there is no end game. >> i didn't come here to shut down the government. >> we have a good day for the anarchists. >> sponsored by the word why. >> i talked to the president earlier tonight. >> we will not go to conference with a gun to our heads. >> also brought to you by how? >> breakdown. meltdown. shutdown. >> republicans chose to shut down the federal government. >> federal workers are paying the price. >> all because they didn't like one law. >> this is 1995 all over again. ♪ ♪ john boehner may be scrambling for a lifesaver, president obama and harry reid are not throwing it to him. the president went to his bully pulpit to explain to the nation

that republicans made this mess and it is on republicans to clean it up. >> at midnight last night for the first time in 17 years, the republicans in congress chose to shut down the federal government. let me be more specific. one faction of one party in one house of congress in one branch of government shut down major parts of the government. all because they didn't like one law. >> and then the president hit the most important republican failure here. there are enough votes to fund the government, but john boehner is a frayed to let democracy resolve this crisis. >> many representatives, including an increasing number of republicans have made it clear that had they been allowed by speaker boehner to take an up or down vote on keeping government open with no partisan strings attached. enough votes from both parties would have kept the american people's government open and operating.

>> here is why that is true. there is a floor off but 200 democrat votes to fund the government. it would take 18 more to pass the funding bill. several republicans say there are dozens of their members who want to do that. boehner refuses to allow that bipartisan up or down vote. and that might be how this all end. house republicans aren't there yet. here is boehner on the floor today. >> our country has big problems. to day our government has big problems. the only way these problems are going to be resolved if we silt down, amicably and -- keep the american people in mind and come to an agreement. >> house republicans d on this funding impasse was a nonanswer no one took seriously. they wanted a ninth inning conference meeting to go back over demands to you guessed it to undermine obama care. the senate rejected that. this morning as expected. we had this debate continue. boehner went then to his plan e,

a piecemeal approach to funding a few parts of the government he likes. support for veterans. national parks. and this one is important to beltway residents, funding for operations of the district of columbia. that failed as well. now there are some signs of cracking. a virginia republican took to twitter with a novel idea today." "we fought the good fight he wrote. time for a clean cr." look, politics love the bumper sticker simplicity of tweet negotiations. he did one better and took the case to rachel maddow on her show and want to fox news. >> the question is does a shutdown advance our goals? i hold the view it doesn't. i have said so. >> he is not alone. republican colleague from virginia frank wolf also backs what they're calling a clean cr. and he denounced this shutdown today, on the house floor. >> mr. speaker i'm skaulg for the government to reopen. calling for leadership on both sides to resolve the issues.

the fbi is being impacted. the cia is being impact the. the national terrorism center which is looking at lead that are coming in to keep this nation safe is being impacted. and nih, cancer research, alzheimers research are being impacted. people and families are being impact the. this is bad for america. it's bad for america. enough its enough. it's time to be leaders. it's time to govern. open up the government. >> republican congressman, peter king no longer alone in whipping house republicans against their fellow tea partiers. >> there is no reason for the government to be shut down. a fool's error, started by ted cruz. we can't just blame him. we have to also blame those in the republican conference, 30, 40 who stood with him who were willing to undo what john boehner wanted to do which was, to pass the cr, move this along.

>> we have 180 to 200 members of the house republican conference who have a serious sense of governance. and do believe we have an affirmative obligation. >> one more breakthrough you need new know about. republican house members aren't just speak out against the shutdown itself or some of their extremist colleagues they are starting to openly admit how the monster was created. >> we are in a terrible situation here. in congress we have these gerrymandered districts. congress doesn't look like america. and so we are at loggerhead. really no surprise on the type of districts that, you know that we have created in all of the state legislatures. >> joining me now, e.j. deion, columnist for "the washington post" senior fellow at brookings. and joy reid, an msnbc contributor. you heard it right there. a member of congress we know that they don't usually say. this congress doesn't look like america. it's become a place where the

members are picking the voters. and the voters don't have much of a say in picking the members. >> yeah, like a revelation. sure on fox news. did you see where the other guy, before, that congressman was from virginia. if you are in virginia, one of the dwindling number of sort of blue and purple state republicans. you are panicking right now. your district looks more like america than let's say districts in alabama, georgia, or texas or ted cruz's state. the problem in virginia is you have a governor's race coming up. that sequester was hurting you. a lot of people mill terry. government contractors. and this shutdown is hurting you where you live. so that dwindling number of purple district republicans. there aren't many of them left. they actually could feel very real electoral effects from this. they're not from the right. so they, yeah, are raising the alarm. >> hitting the point, different today than yesterday. which is, this thing has gone main line. this its not a political story anymore. it is an american story. e.j., take a listen to what,

tenny -- steny hoyer said, discussing how we got here and how balanced the offer was on the table. what compromise are we talking about? we are taking your number. your number. and you will not take yes for an answer. how sad. what a shameful day this its in the history of the house of representatives. >> e.j., what he is talking about there -- the fact that the proposal on the table, the clean cr, funding the government still would continue those republican desired sequester cuts. >> well, no that's exactly right. i mean all this talk of let's have negotiations and compromise. democrats have given up, depend ing how you count it. $70 billion worth of programs. they would like to fund. a lot of liberals are not happy with how much they have agreed to lop off. that was given to the republicans. the republicans could have come

out of this claiming a big victory in saying we are keeping government spending at the sequester levels which really are too low. the fact is from now on there is nothing left to compromise on. because, it is not a concession for a member of congress to agree to open the government. that's what politicians are supposed to do. it's not a concession to say, oh, i guess we'll vote for the government to pay its bills. and that's why you are seeing no action. and i think, it would be a terrible mistake to make any concessions now on the basis of a shutdown or threat on the debt ceiling. i think this is the time to say no more hostage taking politics. that's why -- you are hearing virtual silence from democrats. >> the numbers back that up. $70 billion difference if we were looking at the actual budgetary proposals of the president. he already walked away. he said fine i will be responsible. try to meet you more than halfway.

so, that its why it doesn't make a lot of sense to talk about whether there is phone calls. right. what's there to talk about. >> there its nothing left to give. the budget as the cr would have it is almost down off to the paul ryan levels of funding. so right, democrats have already given republican is a lot when it comes to the actual number. republicans are now asking for things that are extraneous to the budget. they're still insisting we want to defund or delay the affordable care act. we are now talking smaller and smaller length of time between the hostage negotiations. we are not talking a one-year budget. not talking about a continuing resolution. six months. eight months. two months. does that mean every two months. every six weeks. how short is this going to become. republicans tried a strategy to go micro. do one program at a time. we will give you just the national parks in exchange for a hostage. okay, now sending hostages out. out of 14 story windows. that's their version of negotiation. >> amazing.

we could do one week. sort of look the cash till pay day loan program for the federal government. probably not a good idea. want to play for both of you what congressman tom cotton said, he is from arkansas, very different view of this as a republican who feels they need how to get more. let's take a listen. >> the house republicans have acted reasonably and responsibly to act on two separate principles. the government should be funded. and the american people should get relief from obama care. we have made reasonable, responsible compromises. we couldn't repeal obama care. so we offered to defund it. we offered to delay it for merely one year. >> e.j., he may believe that is the reasonable offer. can he get a lot of other people around the country to believe that. he can get a lot of republicans to belief that. that is it. not even all republicans if you look at the polls. what really struck me.

the tea party folks talk all the time about their love of the constitution. they don't believe in the constitutional process. they believe in using power and force. because what the constitution tells us its if you are going to repeal a bill, you need a vote. you need to win an election. on the issue in question. then you get the votesen congress and you pass whatever you want to pass including the repeal of obama care. they cannot pass that through the senate. they cannot get it by president obama. it is not normal to stay well we can get what we want, so we are just going to shut down the whole thing. that's what the problem is here. you know, just ironic that all of this is happening on the first day -- when, a whole lot of americans seem to be eager to sign up for obama care. and i think to get past this first day -- without -- any, any harm being done to obama care is a big deal.

>> e.j., an important point. you are hitting on the structural tension. the tea party things it has the a veto over what the president does. the constitution wasn't written that way. so far looks like the public its frustrated with that approach. joy and e.j., thank you for joining me tonight. coming up. good to be here. obama care, day one. despite republicans's any best efforts. turns out millions are flocking to the state exchange sites as the affordable care act makes its debut. the last word puts an apb out on the man who started congress on this road to a shutdown. where is ted cruz hiding? we'll tell you. later, the government doesn't have to be this dysfunctional. lawrence o'donnell. chris matthews will explain why. all coming up. reams for her wedding. i want peacocks. peacocks? walking the grounds. in tuscany. [ man ] her parents didn't expect her dreams to be so ambitious. italy? oh, that's not good. [ man ] by exploring their options, they learned that instead of going to italy, they could use a home equity loan to renovate their yard and have a beautiful wedding right here

while possibly increasing the value of their home. you and roger could get married in our backyard. it's robert, dad. [ female announcer ] come in to find the right credit options for your needs. because when people talk, great things happen. because when people talk, at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer.

>> "the new york daily news" had this, the take on house of cards starring kevin spacey. not the first time they called out the irresponsible side of a shutdown fight. this was the cover when newt

gingrich forced another government shutdown. didn't work out very well for newt in the long run. today republican who drove his party over the cliff is keeping a lower profile especially given his hobbies of talking and well, talking. where exactly did ted cruz go? that's up next. [ tires screech ] ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all...

into the future. ♪ [ male announcer ] may your lights always be green. [ tires screech ] ♪ [ beeping ] ♪ may you never be stuck behind a stinky truck. [ beeping ] ♪ may things always go your way. but it's good to be prepared... just in case they don't. toyota. let's go places, safely. >> with a 21 hour nonfilibuster and apeer anss on every news

show that would take him, seemed like senator ted cruz was everywhere, the one ready with the match and gas lain to burn down the house. well now the fire is rising, the government its closed. people are mad at the republicans and congress and ted cruz has gone mia when it comes to governing. we last saw him on cnbc yesterday at 7:00 p.m. then poof, during all of the floor speeches in the final hours last night in the senate and in the news conferences in interviews as the shutdown was beginning and even to day as the senate traded barbs there was no ted cruz. in fact the closest we came to seeing him was, you could say, bff, utah senator mike lee on fox last night. lee pound up for a floor speech this morning as well. meanwhile cruz, or one of his potentially furloughed staff members have been tweeting from his account. and cruz did find time to hang with laura ingraham where he blasted harry reid again. >> it is abundantly clear that harry reid wants the shutdown.

and now he has gotten the shutdown he wants. the fact when the house voted at 12:30 in the morning sunday. reid didn't bother to call the senate back. he left everyone on vacation. all day sunday. let's come back monday afternoon. >> see he doesn't like how they're not at work. in the senate. and it was all day, no cruz, but then, suddenly, cruz was back. on o'reilly. >> the top story, reaction from washington. ted cruz, republican from texas. >> well, when the senate calls it is no cruz. when o'reilly calls, cruz answers. joining me now. the washington editor for national review, cnbc contributor. you have been all over these stories. you are well sourced with the tea party. i don't know if that makes time for you in washington fun and exciting. or just repetitive. but explain to us what this new ted cruz strategy is. >> des moines iowa, in august, the idea of defunding the government over obama care

really was just a kernel in the conservative imagination. it has gone beyond senator cruz's wildest dreams and led to a government shutdown. he has gotten, achieved so much from this fight. so i think what we are seeing now is him receding from the limelight. trying to let boehner, harry reid, fight it out over the defunding of the shutdown. he is going to take a lower profile over the next few weeks. >> let's look at the claims he is making. discussed on msnbc. the dishonesty in a lot of his campaigning. take a listen to his discussion of what he views as compromises offered by republicans on o'reilly. >> lot me point out, bill. four times already, the house of representatives offered compro is my. over and over and over. sent to the senate. and four times harry reid has said, no compromise, no negotiation, absolutely nothing. in fact it is reported hashy

reid urged the president don't even talk to congressional leaders. he talked to iran do not talk to leaders. >> robert that's stale. do you think that gets him where he need to be at this point? >> it gets him where he need to be within the republican base. when senator cruz has done in less than a year in office. raise expectations within divided government on the right that make defunding or negotiating out a compromise with harry reid seem like a realistic goal. when you talk to leadership sources. senator cruz is raising expectations making it hard for any real deal to emerge. >> yeah, hit it on the head. if the final strategy is to the get the president to sign -- the cancellation of obama care, right? i don't think there is a strategist around who believes that. we have been playing footage of everyone saying so. i would disagree a little bit. he has the impact.

not sure the strategy exists. take a listen to what he tried to explain was the end game to chris wallace a week or so ago. >> here is the question everyone on both sides in washington is asking, what is your end game. let's say that you block consideration of any bill in the senate. let's say you lose, and -- the bill goes into the senate. they take on obama care. they send it become to the house. what's your end game. because the the government is going to shut down. a week from monday. >> well, i don't want the government to shut down. the american people don't want the government off to shut down. i don't think harry reid and president obama should shut down the government. >> so, linguistic jujitsu there. people know congress shut it down. even false equivalency narrative refers to congress not the president shutting it down. what do you make of this? >> what i make of this. senator cruz started the defunding effort. i don't think he ever expected the house leadership especially, to take the up as their

strategy. to follow senator cruz's advice in essence. make it house policy. i don't think senator cruz had a true end game here from a legislative perspective. he wanted to mount a fight against the republican establishment. that was always his goal. and now when he seize it unfolding. something that is happening. he is not there as a legislative player to make it work and sochl -- solve the solution. >> thank you for joining us president obama vows to stop republicans and their ideological crusade. when everyone in washington could be friend after 5:00 p.m., congress used to work together. lawrence o'donnell and chris matthews will explain what republicans should have learned from the old days of ronald reagan. this morning dare to turn up the volume

and make it last all night. [ female announcer ] pantene volume, with collagen-inspired plumping effect. thick. full. 24-hour volume. get volume from the world's number one haircare brand, pantene. [ male announcer ] maybe you've already heard what they're saying about the nissan altima. ♪ and we have to admit, that it's all true. but don't just take their word for it, check it out for yourself. the award-winning nissan altima. nissan. innovation that excites. now get a $179 per month lease on a 2013 nissan altima.

♪

i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more sinus symptoms than any other behind the counter liquid gel. oh what a relief it is.

in the spotlight tonight, the centerpiece of affordable care act launched to day. despite the gop efforts to sabotage it. here is how president obama described public embrace of new insurance marketplaces today. >> republicans have made a whole bunch of predictions about the law that haven't come true. there are no death panels. costs haven't skyrocketed like every law and product, there will be glitches in the seenup

-- signup process. there have been times this morning that the site has been running more slowly. the reason is because more than one million people visited health care.gov before 7:00. >> the president rebutted critics that say any glitches on day one meant the program was doomed to fail. >> consider that just a couple of weeks ago, apple rolled out a new mobile operating system. and within days they found a glitch. so, they fixed it. i don't remember anybody suggesting apple should stop selling iphones or ipads or threatening to shut down the company. >> joining me "washington post" wonk blog author, and wendall potter, former executive who testified before congress on reforming the health care system. welcome to you both. wendall, how do we know if this is working? >> we know it is working we have

so much interest in the exchanges so far. doesn't surprise me. i traveled and talked to many, many people who were uninsured waiting for this day. so i would have been surprised if we didn't have this volume of interest in the exchanges. >> ezra, build on that. were you surprised to see the over a million people on the federal site. over two million in new york. many other states, seeing a tremendous interest as we are hearing so much about government being broken? >> this completely overwhelmed the expectations of people on the online marketplaces. the head of the california exchange. joking a bit. he said two people would seen up on the first day. person after person, who is running these things said, look, don't get october 1st stuck in your head. ate not going to be that big of a deal. that its the beginning of a process to get people to the website. not the end of it. not the day we judge it on. the absolute flood and rush of traffic. shocked them.

frankly shocked the servers. we'll see if the glitches are just as the the president said, too many people, coming and the service buckling. deeper architecture problem. one thing i would say important that we in the media don't dupe -- do this. day one. how is it doing. of a law judged for a period of time. year one, year two, year three. year one expected to cover 14 million people. you don't get up to 25 million until a couple years from now. i do think there is going to be the washington political effort to rush to judgment on it. should be resisted a bit. a long record of perfection. >> that its a useful note of caution. we try to interpret it. one theory. all the controversy, while damaging may have been promotion for something that -- that, you know, no bad press is, bad press if you get the name out there. we have heard a lot about wendall. how obama care is not as popular

as -- as the products themselves. which is fine. if the sum result is people going and looking around and getting educated. what do you think this means in places where you have high uninsured and less participation. 48 million uninsured in the country. you have states in the south and west. red states especially where there is less, local buy in at this point in time. >> even in those states. you will see a lot of interest. a lot of insurance companies in the states that are, red states are going to be really heavily promoting this. they want new business. many uninsured people in the states too. there are a lot of health care advocacy, advocates working for a long time. to make sure people are aware. you will see people signing up in every state. the uninsured. 48 million of us who are uninsured. and, and ezra is right. we have six months that an open

enrollment period before the window closes for 2014. before you will be assessed a penalty for not having coverage. there is quite a bit. quite a bit of time for people to kick the tires before they soon up for coverage. >> yeah, i really think it is the ultimate antidote to everything that is happening with the shut down. it is a place where people can go, interact with and experience, government options and private sector options. so different than negativity we are hearing. take a listen to turn to negativity. ezra take a listen to something that senator mccain was saying. >> it is unnecessary. i am afraid the american people as they have in the past will blame congress. republicans. and what's particularly disappointing is obama care is going to have a lot of problems in its rollout.

the story is to the american people that -- republicans are fighting republicans. that's not helpful. >> john mccain doesn't like that narrative. part of the story. the other story is republicans are fighting obama care as it rolls out, ezra. >> fascinating thing. republicans will get on the floor of the senate or house. and how obama care is polling in the low 40s. they're at 17%. much more unpopular than obama care. if we are going to, if anything that doesn't poll gets repealed. they're in trouble to. day was a breathtaking juxtaposition. you had washington shutting down. republicans don't like obama care. you had obama care shutting down because so many people want to look and see if they can get insurance through obama care. and, and, and that contrast between how badly washington is working and how much republicans are doing to keep this bill or anything like it. this law or anything like it from working. and then the evident, clear need, people have, to come and actually get insurance. they an afford that won't reject them for pre-existing conditions.

won't cross them off the list. price them out too high. they had a sickness once or they're older. it's really something. it would be one thing if republicans said we have a better way to do this. they're not. they will rip this out and do basically nothing. let's do piecemeal work. not deal with systemic reform. not deal with the programs a lot of people are apparently looking into today. we have been reporting. ezra klein, and wendall potter, thank you for joining us. now, coming up, congress still gets paid. she doesn't. we are talking to a public servant sent home today about the impact of the shutdown on real americans. and congress doesn't have to be so broken. lawrence o'donnell and chris matthews will explain why. copd makes it hard to breathe...

but with advair, i'm breathing better. so now i can help make this a great block party. ♪ [ male announcer ] advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair won't replace fast-acting inhalers for sudden symptoms and should not be used more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. ask your doctor if including advair could help improve your lung function. [ male announcer ] advair diskus fluticasone propionate and salmeterol inhalation powder.

get your first prescription free and save on refills at advaircopd.com. [ ship horn blows ] no, no, no! stop! humans. one day we're coming up with the theory of relativity, the next... not so much. but that's okay -- you're covered with great ideas like optional better car replacement from liberty mutual insurance. total your car and we give you the money to buy one a model year newer. learn about it at libertymutual.com. liberty mutual insurance. responsibility. what's your policy?

up next, lawrence o'donnell and chris matthews. so i can't afford to have germy surfaces. but after one day's use, dishcloths can redeposit millions of germs.

so ditch your dishcloth and switch to a fresh sheet of bounty duratowel. look! a fresh sheet of bounty duratowel leaves this surface cleaner than a germy dishcloth, as this black light reveals. it's durable, cloth-like and it's 3 times cleaner. so ditch your dishcloth and switch to bounty duratowel. the durable, cloth-like picker-upper. so ditch your dishcloth and switch to bounty duratowel. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

more is better. that's why we designed the all-new nissan versa note, with more technology, to get you into, and out of, tight spots.

and more space so that you always have your favorite stuff. and, just for good measure, an incredibly efficient 40 mpg highway. so that when you're doing more, you're spending less. the all-new nissan versa note. your door to more. now get a $139 per month lease on a 2014 nissan versa note. ♪ now get a $139 per month lease on a 2014 nissan versa note. could save you fifteen percent or more on car insurance. yep, everybody knows that. well, did you know the ancient pyramids were actually a mistake? uh-oh. geico. fifteen minutes could save you...well, you know.

>> back in august of 1982, president ronald reagan needed to counter the deficit and raise taxes. president reagan had an edge that might seem unthinkable today. a reasonable opposition party in congress. then the house democrats were led by thomas p. tip o'neill, a massachusetts democrat who want to the floor to whip republicans and question their loyalty to their own president. >> are you going to follow the leader that brought you here? are you going to run, i ask you, to just think of that. president is right. we need this tax bill. i ask for your vote. >> o'neal often said he disagreed with president reagan but they compromised on big economic plans for the country. that was back when compromise wasn't a dirty word. to the republican party. msnbc's chris matthews writes about the historic relationship in his book "tip and the gipper."

and lawrence sat down with lawrence last week to talk about the pivotal period. >> chris, let's get my review out of the way, right aw. i love this book okay, tip and the gipper when politics worked. that's what everyone is craving a world in which politics could work. that's why we are eager to read the book. i love this book. because i love these characters in here. who i have the sad feeling we're not going to see again. >> you know when i first got that feeling watching bill clinton speak. in the press, the u.s. house, and the new president, modern, well educated cabinet. and i'm missing the old days. i loved when it was a big irish guy believed in liberalism, big conservative guy, fought like hell yet they could be civilized with each other. really cared. a philosophical debate. fortunate to be there the whole six years. it was a dream. to be in that room.

>> you captured beautifully here, i love -- the first meeting. between -- reagan and speaker and the, the president goes up to the speaker's office on capitol hill. a lot of fun things happened in that meeting. there is a moment you have here where -- where ronald reagan is proudly telling tip o'neill how well he worked with the democrats and the california legislature. and tip says, tip says that was the minor leagues. you're in the big leagues now. >> this is, reagan later told his biographer, this is when i love it they blow it. when they think i am not that bright. pat brown thought that. reagan took it as an insult. >> didn't like it. he knew it worked for him. reagan always looked being under estimated. he is sort slow. an actor. pat brown thought he would beat him. didn't like the fact that tip was governor. for eight years.

had taken on a truculent crowd. >> thought there was a boston irish thing. we cannot resist the little dig. then next thing. does ronald reagan go back up to the white house angry at this guy, tip o'neill, angry, builter, no. next thing. here comes an invitation. first social invitation to tip o'neill and his wife. >> and dinner at the white house. tip said how am i going to dislike this guy. so they get upstairs. they have dinner the whole night. they drink. stiff drink to start with. ayou were suggesting, testing each other. keep telling each other the best irish story they ever heard. reagan during his down days, got a job working in vegas before he got the ge theater, telling irish jokes on stage in vegas. knew a bunch. tip told jokes. grew up with them.

and he was a hollywood irishman. they had that in common. definitely. >> reagan gets in there. he does the big tax cut. tip thinks this is crazy. you cannot increase defense spending and cut taxes and balance the budget. can't be done. in fact tip is proven right. within a year, 1982, next year. reagan get involved with bob dole in trying to pass a tax increase. they overdid it. >> tip had a choice. let this guy sink in his stew. what i like. they didn't play mickey mouse. they weren't cheap. cheap shot artists. when the guy was in trouble. they would go to the guy. tip went to the republican party. he gave a great speech. >> this guy brought you here. >> the democratic speaker of the house on the house floor giving

a speech to republican members. you have it word for word. he says to them, you got here because of the freshmen. you got here because of him. show loyalty to him. trying to teach them boston irish lesson. about politics. when social security needed fixing they got together. when taxes needed to be fixed. got together. northern ireland. had troubles. you and i know about that. they got together. when it came time for the speaker, the speaker to see gorbachev, new soviet leader laid the way for reagan. got a letter for the president. talk about how times changed. i have a letter. by the way a sincere guy. he will negotiate with you. unites our country. we are behind him. that kind of unity is chilling today. >> tip thought as you tell the story in the book. tip thought, ronald reagan didn't win the presidency. jimmy carter. a rejection of jimmy carter.

over the reagan presidency his attitude certainly, but that didn't mean he thought the reagan presidency was illegitimate. worked with it from the start. >> he carried massachusetts. that was a message. liberal massachusetts. not as liberal as everybody says. liberal. when that went with the 44 states. i almost think the people that i grew up with. working class, middle class irish. italian. reagan democrats we called them. people that tip knew really well. when they came up and said i love this guy, reagan. be nice to him. really got to tip. really did. >> the lesson for today, when we see this congress struggling the way it is. this is the structure that -- that reagan was elected into. which is, house of representatives, of an opposing party. we saw it work back when you were working there for tip o'neill. >> without getting too enumerating it's in the book. first, tip respected the fact that reagan won big. he said, look you won all the states. we are going to respect you. you are going to get a honeymoon.

when is the last time a politician got a honeymoon. your chief counselor said give him his schedule. up or down, fair square. no games. reagan got the program through the first year. fair vote. no games were played. secondly respect each other's titles. tip said the president of the united states. reagan had the best congressional relations team ever. he respected congress. tip said so. third, look for compromise when you have to like the tax thing. in '82. social security deal. make deals when you have to. and look for common ground. because, the trouble with today is these politicians don't want to be seen with each other. common ground. chris christie in new jersey. you have a common interest in fixing the dangers. what happened in the storm. common ground. work on it. i think that was something, tip and reagan did a lot. >> you tell the story. i often wondered what was it look to work with chris matthews? in the congress? we who have been staff. i have an idea in here. when you tell the story about the night you met ronald reagan. about to give the first state of

the union address. you did something. i dent know any other staffer would have done. that's why we need a chris matthews right here. >> when the president comes to give the state of the union in the 80s. the holding room. green room in television, was by the ceremonial office. i had this desk in front of the office. like a mandarin. inside the room was the president of the united states. from the opposing party. i wanted to greet him. i went in and said. >> i have to tell america, i can't stress to you, america, enough, how there is no other staffer on capitol hill who would thing the president is waiting in the next room, to give the state of the union address. i think it's time to meet me. >> i walked in, i said, welcome mr. president to the room where we plot against you. and reagan said, oh, no, not after 6:00, the speaker says we're all friend after 6:00. first i heard about it from the president. >> you report it early, tip said to the president, we are all

friends after 6:00 p.m. he meant it. turned out true with those two. >> wonderful story that has the, i remember, i love thursday nights in the house. that's when they had the big volt. after one of the nights when two guys red-faced yelling at each other. the republican guy after the vote. the house was emptying out. all going to catch their plane. he walked across the aisle. walk up to the guy he had been fighting with. and said -- what are you going to do this weekend? what are you going to do this week ♪ say hello to your wife for me. when you walk by. if james madison saw that. jefferson saw that. that's what we wanted. civility here. >> everyone working there used to see that. i read that passage today. >> you were on bob dole's staff you. were friends. >> that's what we used to see all the time all. chris matthews, tip and the gipper when politics worked. i love this. everybody out there should be reading it. the way it used to be. the way we can hope it can work again. chris, thank you. can you stay more and we will do more online.

>> talking to an expert. >> you know what i want to talk about, chris matthew the character in this book. chris matthews, thank you very much. >> thank you. >> and you can head over to our facebook page at facebook.com/thelastword, for the rest of that interview. still to come here tonight, the real face of the government shutdown. we talk to a federal worker who john boehner sent home about what is really at stake. ike zer. and you can't beat zero. [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morning. 24 hours. zero heartburn. frequent heartburn medicine for 8 straight years. at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event?

your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer.

so when coverage really counts, count on nationwide insurance. because what's precious to you is precious to us. ♪ love, love is strange just another way we put members first. because we don't have shareholders. join the nation. ♪ baby...

♪ nationwide is on your side ♪ i want peacocks. peacocks? walking the grounds. in tuscany. [ man ] her parents didn't expect her dreams to be so ambitious. italy? oh, that's not good. [ man ] by exploring their options, they learned that instead of going to italy, they could use a home equity loan to renovate their yard and have a beautiful wedding right here while possibly increasing the value of their home. you and roger could get married in our backyard. it's robert, dad. [ female announcer ] come in to find the right credit options for your needs. because when people talk, great things happen.

>> up next the real consequences in the real world for the government shutdown. workers were ordered to stay home with no promise they will receive back pay for the forced days off. sometimes their voices are lost in all of political gamesmanship. today president obama wrote a letter explaning why he doesn't think these public workers are nonessential. he writes, you do all this in a political climate that too often in recent years treat you'd look a punching bag. you endured three years of federal pay freezes, harmful sequester cuts, and now, a shutdown of our government. and yet, you persevere continuing to serve american people with passion, professionalism and skill.

joining us now, one of the 800,000 furloughed federal workers, karen federov, attorney for housing an urban development, how is this shutdown today affecting you and the people your agency serves? >> well this shutdown, you know, of until this past week, we have been scrambling in preparation for a shutdown. we were, getting last minute projects out the door. trying to make sure as much work as possible was accomplished so that we could minimize the impact on the american public. however as the week carries on, as the weeks carry on. there will be more and more of an impact on the people that we serve. >> well, like what for example. we are the only provider of mortgage insurance for nursing homes and apartment complexes. there is no private market for mortgage insurance of this sort. if we cannot write commitments

for mortgage insurance then that is -- many prompts that -- that construction won't begin. things will not be refinanced. businesses will be adversely affected by our inability to carry on our market work. >> i know you are a member of a union. is there a role for organized labor, for the shutdown as policy and whether people forced to go home, and whether they will get paid at this time. >> yes, i am an officer with the fed ration of government employees. we are playing a role in this. we are very concerned about the impact of sequester. on continual budget battles, on our programs, on ability to deliver the best services possible. it also impacts our -- our members of course. our members are va nursz, border patrol agents.

bureau of prison guard. they're continuing to work. right now. without any promise that they'll be paid. certainly that they went be paid on time. and then, of course, we have employees who are not working and the chances are very good with this congress, being as -- mean spirited as, as it is. that we won't see any pay at all. >> and, carolyn, how does this fit into, you mention mean spirited congress. there is a republican effort in the congress and around the country to really go after -- workers -- in government. state, local, federal. in fact, since the recession. we have seen over half a million people in that line of work basically put out of work. which is a huge effect on the labor markets in general. also problematic for all the public services, do you see the shutdown of a piece with the larger political attack from the gop? >> yes. i firmly believe that --

they want to break government. they want to make service as poor as possible. so that people don't believe in the value that we can provide to our communities on a daily basis. it is very disheartening for those of us who have been engaged in public service as long as high have, 27 years. to leave to that generation that's coming in behind us, a system that just feels small and mean and incapable of accepting the creativity and energy that they have to give to the job. >> yeah. that's important point you just hit. because the it goes beyond a policy dispute. and into whether there is an effort to actually absabotage government service. i have been in for lawrence o'donnell you. can catch me and my colleagues on the cycle. week days you. can findly on twitter. chris hayes is up next