peggy noonan, david plouffe, dan senor, and paul krugman. welcome to all of you. peggy, let me begin with you, senator graham didn't sugar-coat it all, they're ruining both institutions. yet, there doesn't seem to be a way out? >> yeah, it's fascinating that nobody seems to know where this thing goes and how it ends. i mean, it is a crisis, normally people have a sense of it. i think lindsey graham was very correct when he said we all be better off and the republicans will be better off when this particular shutdown ends. i think, look, people don't like these things. they like it when government works. both parties suffer when stuff like this happens. but the essential point that nobody knows where this goes is the great mystery of this battle. >> and we're getting so close, paul krugman. and republicans do seem to be trying to negotiate, led by mitch mcconnell. >> first of all, i think it's important, it's not exactly october 17th. if we wake up thursday morning and they haven't defaulted yet, that was a false alarm. >> it could hurt before october 17th. >> yeah

years, smart people like bill daley and rahm immanuel and valerie jarrett and david axelrod and david plouffe red these speeches none of them said to the president mr. president your credibility is on the line. >> something is really weird here, karl. i noe i work at fox. some think it's a big fox conspiracy to get the president. we all sort of same situation about the ridiculous thing about the video benghazi that that assume how sparked the activity at the consulate. patently absurd and latest september 25th u.n. at some point don't people at the white house know we have videotape? i mean, like whatever they say we catch. and at some point do they think that we're not going to see this? >> yeah, look, i take away from it that they simply have contempt for the white house press corps and contempt for the intelligence of the american people. their view is if we simply say it enough, if the president goes out there and assess if you like what you got, you can keep it, that that's going to be enough. if they can go out and say it was that phony video of benghazi and say what does it all matter?

>> what happens is you're transferring power to these individuals, like a mike bloomberg or a david plouffee who sets up one of these groups. you're transferring power from the candidate you vote for to somebody you don't know who will have a say. >> but often someone who knows exactly what the candidate wants to do. increasingly the idea of working without coordination is kind of a fiction. >> but then it also decentralized the political parties which also has caused why we're here today. while john boehner has no real influence. >> which is the argument the rnc is making right now. we don't have enough influence. we need no caps. >> shameless plugs. >> i think it is shameless that a private organization has to cover the costs to take the families to dover air force to see the caskets of the five folks that were killed. >> that gets fixed today. >> i'm glad that private organization is stepping in to do it. >> we have a delightful story about what happens when your spouse grows a furlough beard and you just want them out of the house. the spouses of federal workers who are dying for these

as david plouffe told "the wall street journal" looking back we did too much accommodating to them.ay this is going to be resolved, both the shut dound and the debt ceiling is republicans relenting. talk to republicans and they are sure it is the white house that will relent. asked last week whether he believed president obama's steadfast vows not to negotiate over the debt ceiling paul ryan responded, "nobody believes that. nobody believes that. i see this time as no different and i believe he does, too. i think most people believe he's just posturing for now." joining me now the center for american progress and white house chief of staff to president clinton john podesta. john, thanks as always for being with us. >> nice to be with you. >> what do you make of president obama doesn't believe in the resolve and in the end he'll come to the negotiating table? >> i think the republicans have miscalculated all the way through. speaker boehner didn't want to have a government shutdown in the beginning, then he shut the government down over obama care. on friday he said he didn't want to

let's go to david plouffe. he says he thinks they gave way too much in 2011 and the only way this would be resolved is when the republicans relent. that is pretty much the strategy that we're seeing. is >> that's true. >> dana, earlier in the week,r bob woodward, said exactly that. the longer this goes on, it will fall directly on the president'a shoulders and i do think the first couple days they were winning the debate. but this is slowly backfiring. the more information that comes out shows republicans havehows passed bills to fund all of these programs that bob claims aren't being funded. so there is a credibility issue as well. >> i don't think that president obama's too worried yet that the republicans are going to overtake him and all of a suddee they're going to come out smelling like rose at the end of this. i do think this open mic momentn that they tend to have -- i >> can't help it. >> i keep trying to talk to him. he can't hear me.m. >> what i'm going to say is theo always get caught saying what th

though, that ted cruz in a "times" interview, that he said he gave to christmas to his staff, the david plouffee he was so inspired by what freshman senator obama did in terms of becoming president. it'll be fun to watch these two fight it out. coming up next, the role of race in the shutdown and why this moment has been a long time coming. >>> plus, twerk alert. the queen of bounce, big freida is here. more nerdland at the top of the hour. mine was earned orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. i get out a lot... except when it's too cold. like the last three weekends. asthma doesn't affect my job... you missed the meeting again last week! it doesn't affect my family. your coughing woke me up again. i wish

yet for years smart people like bill daily and rahm emanuel and david plouffe read these speeches, knewthem said to the president, mr. president, your credibility is on the line. >> of course he was talking about the president saying over and over again if you like your plan you're going to be able to keep your plan, from 2008 to the present day. that was another example of they seem to be off message. >> not knowing because they have blinders on heading towards a single-payer system? >> that the ultimate goal? >> that doesn't matter, any of this. let me get there. you guys take the fall for me if you know. i don't. i'm going to proceed ahead so we can get to that single-payer system. >> if they're being truthful, dana mill bank writes in "the washington post" about the president says he doesn't know all this stuff. on another level it would be more disconcerting. he says is it better he didn't know about his administration's missteps or that he knew about them and didn't stop them? >> what do you think? let us know on facebook. to know or not to know, what's worse? that is the question