from washington, "the mclaughlin group," the american original. for over two decades, the sharpest issue one, secretly serviced! >> if it turns out that some of the allegations that have been made in the press are confirmed, then of course i'll be angry. but we're here on behalf of our people, and that means that we conduct ourselves with the

utmost dignity and -- i think i'll wait until i pass final judgment. >> no rush to judgment. that's the position president obama has taken on the controversy involving the secret service and prostitutes during the summit of the americas with three heeds of state convened last weekend. 11 u.s. secret service members and 10 military service personnel are under investigation for what happened here at the hotel in cartagena, columbia. prior to the arrival of president obama, some of the u.s. secret service agents entertained brought toots prostitutes at the hotel. an argument attracted police, who informed the u.s. state department. prostitution is legal in cartagena, but agents are regularly briefed on the

potential for bribery by prostitutes and for being spied on by them. so prostitution for the secret service is verboten. the chairman of the u.s. house of representatives peter king put the dangers this way. >> i know foreign diplomats overseas who have been private citizens and had laptops taken, in this case alone just being around the secret service inside the zone of security picking up information about the president's travel schedule, what his agenda dcñ?ñ just names of secret service agents, when they'll be leaving, where they're going, all of that. >> notwithstanding the uproar, the director of the secret service, a 29-year veteran of the service, continues to have the support of the white house. >> the president has confidence in director sullivan, director acted swiftly in response to this incident and is overseeing

needs to be conducted. >> as of friday, three members of the secret service are out in the wake of this incendiary scandal. question, how big an embarrassment is this for the secret service, pat? >> it's enormous. they've stepped all over the president's mission, which we discussed to latin america, trying to put a message out. secondly it's just an enormous disaster for the secret service. we've got 11 agents and some supervisors in there engaged with all these prostitutes and as soon as they almost get into columbia, and it suggests this is not single within-off thing, that this may be sort of habitual practice going on here. and the tragedy is the secret service has enormous respect among the american people. i've about with nixon and reagan, i've flown a lot of these guys, they're outstanding guys. >> were you in columbia with nixon? when -- was stolen.

>> no that was when he was vice president. i've had secret service protection myself. you realize these guys sitting outside 84 hotel room will take a bullet for you. so the whole country respects, aid myers these guys, and that reputation has been tarnished. it suggests that this may be not a one-off thing. >> i think for any president or presidential candidate, the secret service is personal because they are there to take a bullet. they witness people's private lives. they see things that nobody else does, and they're supposed to keep secret. they haven't always behaved well. i remember during the clinton administration, there was some leaking about the first lady hurled a lamp at the president, and that came from the secret service. and so i think there are some questions here of trust between agents and the people they protect. but this is a huge year coming up, with presidential candidates. we have a lot of visiting

dignitaries. this is a big comparesment. but i don't know that this is stemmatic for the whole secret service. >> i hope not. >> when they're on the president's dime, they're avoiding in this way and prostitution is legal where they were, and why didn't they just pay the woman who called herself an escort? >> $800. >> pay her the money she asked for and he agreed to. >> 220? >> yes. and it took that long for america's finest to figure out they had a problem, once the police came. police were on the side of the prostitutes, because it's a legal profession there. so i mean, how dumb can anybody get if they paid the money, we wouldn't be talking about this right now! >> money talks! >> right. >> this is not my field. >> what do you mean it's not your field? you're a billionaire! >> i know, but there's -- i'll explain my -- right with you. >> again, this is tonight in the first scandal and probably end be the last.

but probably the last for a while. i think this will blow over. they've had a spherulin reputation for decades, protecting the president under the most difficult of circumstances but there's additional information that one of secret service agents involved was saying that when he was protecting sarah palin nominee, he was checking her out apparently. >> on facebook. it's not like he just -- >> exactly some this will trickle in now and then to make -- >> what do you mean checking her out? >> he meant is in physically checking her out -- an object -- >> photograph of him check her out, and she's not happy about it. >> she's not? >> she had a very tough statement. >> she said obama needs to take control of the situation here. he's the commander in chief, and he is in charge of secret service. and he needs to maybe make some changes. >> true story? >> i don't know if it's a true story. i suspect there's some truth to it. i don't know if it's quite in the way it was presented, but as for this story, you can't

make this up. >> flirtation? is had what it was? >> on the part of one of them. >> okay. mitt romney's take the president has confidence in the head of the secret service, as do i. and i believe that the right corrective action will be taken there, and obviously everyone is very, very disappointed in these stories, very uncharacteristic of the service. and it will be i think it will be dealt with in -- as aggressive a way as is possible, given the requirements of law. >> why did mitt romney take the high road on this? he didn't criticize obama or the administration, didn't criticize the vieques. >> i think the head of the secret service mark sullivan has been there a very long time. i think he was elevated by president bush. i don't think this is a left- right republican-democrat incident, and so far nobody has stood up and said this is systemic and the culture needs

to be changed. >> the fact that impacted this politically is that everything else had happened at cartagena has been drowned out. >> exactly. >> what happened that that has been drowned out? >> not much. >> not much! >> are you sure that? >> well, they -- suit about cuba -- >> free trade agreement? >> that's all what? >> it's already been passed. everybody knows about it. >> what do mean it's passed. >> it's enacted. >> why did obama -- if it's a done deal? >> it's been a done deal -- >> something was needed -- >> it's a victory lamb here's what romney say that. it's the very reason we're all talking here. the secret service is liked and respected, and admired, and everybody knows how hard their job is and they will take a bullet for somebody guarding romney now. so nobody want to see the secret service beat up. >> is the columbia free trade agreement agreeable to u.s.

labor union? >> no, i don't think they like to. >> so the less the better? >> why are you going to columbia? >> how far do you want to go in trying to cover something? >> it's agreeable to the hope community in the united states, part of a part of the administration to that part of the world because it does have repercussions here at home and the shows how he is committed to the hispanic community. >> you see how the headlines have been dominated by the incident. >> of course. pat said it's destroyed whatever the president hoped to accomplish with it. it's become in a sense a story about the scandal, not a story about anything else. >> exit question, on a political probability scale, what is the probability that a special prosecutor will be appointed to examine the extent of this misconduct? >> right now -- it's about -- it's zero. the reason is there's no -- no cover-up going on! you get a special prosecutor, if the government is not

looking into it. they're looking into this thing, john. my fear frankly is they're going to find a lot of conduct going back and go back in these guys, drag -- >> expect a prosecutor. >> don't need a special prosecutor! >> we need a star. whose star? >> you know -- >> the independent council? >> no. >> no, we don't need that. >> will it be driven to the point where a special prosecutor will be appointed? >> it's a -- catnip for the media and congress. >> this is set out for media -- >> it's sex, money, drugs, whatever. >> legitimate story? >> no. >> it doesn't need a special prosecutor. >> zero chance. they'll let the secret service handle it. >> one ken starr was enough in my lifetime, thank you very much. >> you give it zero probability? >> zero. >> i give it 80% probability, yes! when we come back, leaving las vegas. two, leaving las

vegas. >> what is it about the structure of the gsa that leads us back to these scandals, after -- in other words, the expression is fool me once, okay. but again and again? barbara box over, the chairwoman of the senate environment and public works committee, voiced her disgusts and disbelief to workers of the general services administration, the gsa, on the hill this week regarding lavish spending and possible kickbacks at the agency. get this, in 2010 at a cost of $823,000, gsa flew 300 federal

employees to the billion dollar resort spa and casino in las vegas for a conference. the trip includes costs like breakfast, $44 each. sushi, $7,000. a bicycle building exercise program, $75,000. all funded by taxpayers! also, the agency threw a party in palm springs,california, for its interns. the gsa bill, $150,000. the gsa's 2010 las vegas massive billing, right in the face of the advice president obama gave corporate executives in his first year in office. the executives were from companies that took federal bailouts in 2009. "you can't take a trip to vegas or go down to the supepepepepepe the taxpayers' dime." mr. obama repeated this

admonition in february 10 in a forum. "when times are tough, you tighten your belt. you don't go buying a boat when you can barely you're trying to save for college." so, vegas gambling is seen by president obama as an expensive indulgence. but nevada is also an important swing state in this year's presidential contest. so first lady michelle obama gone there several times so far this year, most recently to inspect the copper mountain facility. tell us about the gsa this week. >> well, we've got a career -- worker at gsa who elevated himself to a position where he was his own supervisor, and allowed him to plan elaborate trips. one of which you described there, the $823,000 conference

called the western region conference for 300 employees. it had all kinds of things like the 7,000 dollar sushi, 2300 square foot hotel suites footed by the taxpayers. they hired a mind reader. they rented clown suits and tuxedos for people. they handed out commemorative coins and velvet boxes. i mean, it was just over the top. >> we saw little bit of barbara boxer at the top of the issue. did she mention anything about why we really need a gsa? >> well, you have two sides on this issue. some republicans question -- they want to shrink the size of government, now we look at the gsa, wasting taxpayers' money. >> this is a harry truman creation. >> it's been around 60 years, and its goal is to streamline the -- and by controlling its properties and helping make sure we're not -- >> is it superfluous? don't we have within agencies and the vast fracture of

federal government those agencies that can track whether they're legitimate this keep them lean? but as soon as you have -- what is behind this? >> look, you say purchasing all the typewriters, other things, why not get one agency to do the job and purchase -- >> what do you think of that idea? >> i think it's a good idea. >> why can't those agencies regulate themselves. >> then you get duplication. >> no one pays attention [overlapping speakers] government. so vast they can't -- >> if you had 11 and 12 departments going out buying the same things, it's if and inefficiency. >> what about at the white house level? >> i don't think they control that. did he take the fifth amendment? >> of course the white house can control the size of the federal government! the regulatory agency! >> took the fifth amendment. what happens in vegas stays in vegas. >> the gsa is the government's -- and contract for the fleets of cars and various inventories, the typewriters and all that. it does make sense to have

them. but apparently, this hasn't been any oversight. who pays attention at the gsa? and what they were doing was mimicking corporate life. corporations throw these kind of over the top events all the time. but you don't do it with the taxpayers' money! you don't do it with taxpayer money. and not -- >> i wonder -- embarrassment to the president and it's a gift -- it's a gift to the republicans because it fits into their narrative of this big bloated federal government that needs reining in. >> don't you want to defend corporations? they go to vegas and watch the bottom line very carefully, do they not? >> the central administrative functions in most corporations have a real objective and a real way of supervising the cost because they are concerned about the profitability of the company and the cost. government doesn't work on that base. you don't have the same kind of oversight by definition. it doesn't mean it's appropriate. you want to centralize a lot of purchasing and the ownership -- >> exit question. >> no incentives to save money. >> there's no incentives --

isn't that a shocking admission on anybody's part? >> that's the corporations -- >> isn't that a -- [overlapping speakers] >> no sense -- >> more jobs. >> mort's money. he's going to save, they'll watch it, everybody has a good time. >> what -- >> we don't have this lavish nonsense and you've got that with no control, no incentives. >> better off with a different kind of government? are we attacking the corps of democracy? >> it's an end hirrient flaw of government. >> what kind of government? >> all government. >> a corporation -- [overlapping speakers] >> it's not their money. >> you think -- >> us always say the russians can keep their size down [overlapping speakers] >> it's even worse than russia, believe me. >> does this go far beyond what we any are cognitive limits as we see it in this issue? >> no, i think this illustrates exactly the problem you have in a government which basically doesn't have an incentives and what you have in the private -- >> remarkable -- [overlapping

speakers] >> two words! two words! corporate greed. corporations have not always behaved admirably. let's not forget that. >> issue three -- [overlapping speakers] >> excuse me, me! issue three! even steven? >> president barack obama and candidate mitt romney are tied, 46 to 46, according to a new cbs-new york times election poll of registered voters. the poll also shows this -- the president has a higher favorability rating than governor romney, 42% to rom romney's 29%. but he also has a higher unfavorability rating, 45% to 34%. the big issue on the minds of voters is the economy, of course. and how do the candidates rate here? overall, obama and romney share about the same amount of confidence with voters when it comes to making the right

decisions about the economy, with the edge to romney, 55% romney, 51% obama. as to the question on whether the policies of the candidates would improve a voter's own financial situation, 28% say mitt romney would improve my own financial situation, marginally, as compared to 26% obama. question, what are these numbers telling you? i ask you, patted and be succinct? >> we've got ourselves a real horse race. if romney and obama and it's a toss-up almost in my judgment. almost. >> what if sells it you is the economy is the central issue which we've been saying for some time and if 2012 economy slows down the way the 2011 economy slows down, obama is in real trouble. if the economy trickles upward and continues to improve, we'll keep having a horse race it will be very, very close election. >> since i don't believe the economy will trickle up, i think obama has a real problem

going into this election year because i think the economy is weak and it will stay weak and as much weaker that is the superficial numbers indicate. >> the review of the republicans and runup so for, for romney to skier as high as he did reflects the general opinion as i see it on this panel that this will be a real horse race and that obama really has got to put out more favor bailey than he has been. >> absolutely. >> in recent months. exit question. we'll be right back with predictions.

prediction, pat? >> the george skim man trayvon martin episode, i don't think george zimmerman will be convicted of second-degree murder at all. and i have my doubts they'll

convict him of manslaughter. found all that blood on his head in the latest picture. >> interesting. eleanor? >> french president will make it into the runoff this weekend but will not survive face-off with the moderate socialist candidate. he will lose. >> i predicted about 10 weeks ago. >> okay. susan? >> talk about newt gingrich. he's been lurking in the background for as a candidate who is not going anywhere but i predict he'll stick around for a few more weeks and try to still get something out of this race. +p2k candidate. >> mort? >> each of imports 50% of its food. they have enough money for two to three months in their foreign exchange camp and that point they'll be forced with starvation, requiring a massive foreign aid program to help them out. >> i predict the current outbreak of scanned alzheimer's will continue to dominate headlines, hurting president obama's ratings more than mitt romney's,