dee dee ricks. >> i felt it was my obligation to give back. >> reporter: one week after a double mastectomy, dee dee travels from her penthouse apartment to harlem a world away to meet with renowned surgeon dr. harold freeman. >> i really was going to come and cut cancer out of harlem. but cancer wouldn't yield to the knife. why? because the people were poor, uninsured and coming in too late for surgery to be the main answer. >> reporter: if you see a breast cancer in a woman early, you can almost always cure it at this point? >> early breast cancer, the earliest stages of breast cancer, are curable almost to 100%. late breast cancer, people die from it at nearly 100%. >> reporter: a shocking reality brought home to dee dee at their first meeting when dr. freeman tells her he is struggling to raise $2.5 million or lose a vital pledge of the same amount. >> i will get you your money. >> oh, my god. i am going to get for it you in the next couple months, dr. freeman. the fact that you have to go out and raise $2.5 million is a disgrace. you will get your $2.5 million. you are going to get a lot more.

dee dee: "yes! that's for sure!" for sisters martha and dee dee... this conversation is certainly that. dee de: "i know. me too. i'm so excited. i don't know what to even say!" martha: "i'm gonna start crying." it started more than fifty years ago. then- named carolyon scott-- was put up for adoption. martha: "all ese years, i always wanted to find my family." when her adoptive mom died in 1995, she set out to find her biological mother. martha: "i hired a private detective and i bought books on how to find people." she found her mother... in the form of an obituary. turned out she died of breast cancer. martha: "i had an empty heart." but... good news soon followed. martha: "i was just like--gave me chills, started to cry. i was so excited." martha: had a sister. martha: "i was like, 'i'm too young to be a grandma!'" 51 years after dee dee was born.. in their first video chat... the two have a lot of catching up to do. dee dee: "it's like, i would talk about about family, and i would say i have a sister out there somewhere, but you never think that you're gonna see that person." turns o

dee! sweet dee, sweet dee, sweet dee, sweet dee! hey! sweet dee, sweet dee, sweet dee, sweet dee! ey! - hey... - what the hell is this? oh, yeah. uh-oh. and so it begins. what are you talking about? i got a cat, so what? congratulations, dee. you've begun your transformation into "crazy cat lady." i didn't begin a transformation. i just got a cat 'cause i wanted something to hang out with. i don't have, you know, a roommate or anything. i don't really have anyone to talk to, so i... if you listen to yourself, you would realize you're only strengthening our argument. okay, what do you want? we need a big bowl for popcorn. - yeah! - mac and dennis movie night! tuesday night's movie night! we're doing predator again. you guys don't have a bowl? uh, we don't have a big one, no.

dee dee: "yes! that's for sre!" for sisters martha and dee dee... this conversation is certainly that. dee dee: "i know. me too. i'm so excited. i don't know what to even say!" martha: "i'm gonna start crying." it started more than fifty years ago. then- named carolyon scott-- was put up for adoption. martha: "all ese years, i always wanted to find my family." when her adoptive mom died in 1995, she set out to find her biological mother. martha: "i hired a private detective and i bought books on how to find people." she found her mother... in the form of an obituary. turned out she died of breast cancer. martha: "i had an empty heart." but... good news soon followed. martha: "i was just like--gave me chills, started to cry. i was so excited." martha: had a sister. martha: "i was like, 'i'm too young to be a grandma!'" 51 years after dee dee was born.. in their first video chat... the two have a lot of catching up to do. dee dee: "it's like, i would talk about about family, and i would say i have a sister out there somewhere, but you never think that you're gonna see that person." turns

thank you to e.j., robert, dee dee and the other robert, not saying which one is which.s all for "now." see you tomorrow. "andrea mitchell reports" is coming up next. >> business travel forecast. i'm meteorologist bill karins. now that it's columbus day we're watching a big storm move into the northern plains. unfortunately looks like severe storms could come with it. watch out central kansas later this afternoon. no problems with business travel on the east coast, a mix of sun and clouds. we will see additional thunderstorms in texas. have a great monday. the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be d

president clinton, dee dee myers. >> she's been through a shutdown. >> but that one meant something. >> it was a great shutdown. those were the days. when a shutdown was a shutdown, deeit was about budget issues. >> i was thinking about that. it was very specific. you know, just stop asking us to keep funding government at this level with deficits going up until you agree to balance the budget in seven years. it was very specific. >> don't forget medicare. >> at the end of the day, yeah, exactly. democrats had to demagogue medicare when it was going bankrupt and we saved it. we ended up not only with a shutdown. we had a fight. but we came together and balanced the budget. >> it was a good shutdown, man. chris matthews is here. >> it was a long one. >> it was long, man. >> let's get news in here. >> i was sweating. >> we'll let these guys go. it was billed as a big meet ing. the first time top congressional leaders met the president since the shutdown began. in the end speak er john boehner characterized the evening meeting at the white house as little more than a polite conversation with no headway. president obama reiterated he won't negotiate over his signature he

dee dee myers was president clinton's press secretary. she's now a contributing editor of "vanity fair." former house speaker newt gingrich is the cohost of cnn's "cross-fire." we want to welcome "wall street journal" columnist and editorial board member kimberley strassel. this is her first "face the nation." we're glad to have you. and rounding out our foursome, someone who has been here many, many times the chief correspondent of the "washington post," dan balz. let me just throw this out there. does anybody think a deal will be cut in the next 48 hours or are woo headed for default? mr. speaker, why don't you start. >> i don't think we're headed to default, but i doubt a deal will be cut in the next 48 hours. it's much too complicated, and i think that the very fact you only had reid and mcconnell meet yesterday for the first time in 17 days tells you how big a mess this is, and how much the personal hostility is a part of this. >> schieffer: i was very struck this morning, john mccain and chuck schumer sitting here across the table, two people who are very different ideologically, but they're both smart people. they're people of good will. and you sit here and wonder how is it that these two people, people like this, cannot be the ones to get this thing done? and yet, somehow or another, there seem to be all these pressures, dee dee, on the leaders on both sides that is keeping this from happening. >> well, you have all these processes that begin, and then they die, and it throws it back to leadership. but it hasn't just been that reid and mcconnell haven't met in the last 17 days. they haven't immediate mt. since july. you have leadership not talking to each other. and you have members that aren't controlled by the leadership, particularly in the republican party and the house. now it's back to reid and mcconnell, being the last gasp between a deal and default. and we'll see whether they can get it there. i agree with speaker gingrich, at the end of the day, there will be a deal because i think cooler heads will prevail. we cannot allow this to happen. but until then, it's high-wire act. >> schieffer: kimberly. >> you strip out all the nonsense going on and the discussion about defunding the president's health care bill, the back and fourth, what you really come down to and what we are at is sort of a repeat

dee dee myers. "wall street journal" columnist kimberley strassel, and dan balz of the "washington post." it's shutdown city in washington, and we'll bring you all sides because this is "face the nation"." captioning sponsored by cbs from cbs news in washington, "face the nation" with bob schieffer. >> schieffer: and good morning again. well, it is day 13 of the shutdown, the debt limit set to expire in just four days. we're going to start this morning with new york democratic senator chuck schumer. we'll hear next from arizona republican john mccain. senator schumer, i want to start with you because yesterday-- i mean, you were in all the meetings. you met with both the president and the senate democratic leadership, the senate and republican leaders. you were there talking to mitch mcconnell on the republican side. where are we? >> well, bob, i'm cautiously hopeful, optimistic that we can come to an agreement and open up the government and avoid default based on the bipartisan meetings that are going on. >> schieffer: well, what's the sticking points? >> the good stuff is senator mcconnell and senator reid both understood the gravity of afault and mao we had to avoid it, and while i don't want to get into details, the frameworks they each had were not that far apart, a lot closer than, say, house republicans and the president. it's also very good that there are bipartisan groups meeting. i really respect what susan collins is doing. and that will-- that will help bring things about. so here's what i'd say-- with the president, with senate democrats, with senate republicans, there's a will. we now have to find a way. we know the house won't find that way. so the whole-- all of it rests on our shoulders. but finding that way is hard, but we're not out of the ballpark in any way. >> schieffer: what about undoing the sequester? i keep hearing that's the most important thing to the democrats. what does that mean? >> that's one of the sticking points. look, neither democrats nor republicans like the sequester. and one of the strongest voices against it has been ?aerlt mccain, correctly, which and what it will do to defense, which he defends so dearly. the dispute has been how to undo the sequester. republicans want to do it with entitlement cuts-- in other words, take entitlement cuts and put that money into undoing a part of the sequester. the democrats want to do it with a mix of some entitle ams and revenues. how do you overcome that dilemma? we're not going to overcome it in the next day or two. but if we were to open up the government fair period of time that concluded before the sequester took place, which is january 15, we could have a whole bunch of discussions, and i am more optimistic than most we could come to an agreement. that was one place where the house republicans and the president were not at total loggerheads and a lot depends on how you define revenues and how you define entitlement cuts. the plan would be open up the government immediately for a period of time before the sequester hits, and then have serious discussion where we might be able to undo the sequester. i'm optimistic that could work. >> schieffer: aren't you going to have to find something that you can give to speaker boehner that he can take to those on the right side of his party and to bring them along? i mean, i'm not sure what that is, but-- >> yeah, well, you hit the nail on the head. no one's sure what will bring those people along. i think there's a feeling among senate republicans, whether it be senator mcconnell, senator mccain, senator collins, that if we can get a broad bipartisan majority to pass something in the next few days, it may help crack the logjam in the house. and, of course, speaker boehner wouldn't get the 40 or so people on the hard right to go along, but could get a lot of his mainstream republicans. i'd say this-- i think these mainstream republicans are getting fed up with the tea party and ted cruz. they see where it's leading them, to very low poll numbers. this idea that unless i get my way i'm going to do huge damage to our credit rating, to millions of people who depend on the government. it isn't working. and i think there probably is a new mode in the house. speaker boehner can't lead, but if the senate leads, i believe he could follow our lead. gloab because i mean the reason i brought that up is, i hear republicans saying to me, "look, you may not like speaker boehner. you may have all kind of differences with speaker boehner. but if he is toppled and some of them are saying to me he could be toppled this weekend if things don't go exactly right, that what you'd get after boehner would be worse to deal with than trying to strike a deal with speaker boehner. >> john and kelly would know, and tim would know this better than me, but my view, is when your party is doing as poorly as it has, mainly because they've let ted cruz and the tea party-type thinking lead them around, you break from that. and you may not have the ability to put together your own plan and move forward but you might have the ability to follow a bipartisan plan, such as we're trying to come up, senator mcconnell, senator reid, senator collins in all of us in the senate. >> schieffer: let me tell you the other side of that, i heard from people-- nobody will say this on camera-- but i was told you were very close to a deal thursday night or maybe early friday morning, and then that "wall street journal"/nbc poll hit, and showed that the public was overwhelmingly blaming republicans, and it gave some on the left, to the far left, more backbone. they said, hey, we've got the republicans down. what we need to do now is put our boot on their throat and break them. is that right? >> no, i don't think we were close to a deal is the problem. the issue you brought up of sequest-- we have one other issue that's very seriously tout there. there's a disagreement, and that is how long the debt seale, should go. we think it should go for as long a period of time as possible so you don't go through this every few months and the plans brought to us have it in january or earlier. that's not good enough. there are real issues but they're overcomable. >> schieffer: senator, thank you so much. i'm going to the other side of the table, and senator mccain. senator mccain, do you see any kind of a path to a deal? >> i'm glad that negotiations are going on. i'm disappointed that twice they were close to a deal, and the democrats moved to go oppose, in light of the polling data. i'm very disappointed that the president of the united states has not played a more active role in this as bill clinton did back in '95. i am very disappointed that the 12 of us led by senator collins, senator ion the, senator mikulski, senator marchion-- we had a plan, and we wanted to present that plan. and the democrat leadership squashed it. we were ready to go to the press gallery, and the democratic leadership said no. and i still wonder why, unless maybe it was too generous. so i'm hopeful that we will get negotiations. i hope the president will become engaged. maybe we need to get joe biden owment of the witness protection program because he has good relationships withw-- >> schieffer: we haven't heard very much from him. let me ask you this, senator, do you think it is possible to get a deal that does not get a majority of the republicans in the house of representatives? >> you know, i don't know, and i hate to tell the house republicans what they should to. they resent it it, and i understand that. i once once in the house and thought we were a bunch of snobs, which is probably true. the fact is they're going to have to understand that we're on a fool's err abando fool's errand when we say we're going to defund obamacare. now that has all changed-- and can i mention one other thing. the director of national intelligence said the schulte down is extremely damaging to our ability to defend this nation. look, al qaeda's not in shutdown. and when i saw, as you did, these death benefits not being given to families, i'll take-- everybody take the blame. but it's not acceptable to the american people. it's not acceptable. and we should be sitting down, and the president should be engaged, and the democrats, they better understand something. what goes around comes around. and if they try to humiliate republicans, things change in american politics, and i know what it's like to be in the majority and in the minority, and it won't be forp gotten. now is the time to be magnanimous and sit down and get this thing done. >> schieffer: let me ask you this, senator, how is it-- i've been in washington a long time, you've been in washington a long time-- that a freshman senator less than a year in office, ted cruz, was able to lead your party into what some in your party are calling a box canyon here. how did this happen? >> i think the very extreme dissatisfaction that many people feel. there was already fertile ground because of those many members of the house who were elected in 2010 on the promise that they would repeal and replace obamacare. by the way, there are many of us who fought it back to 2009. we still at the present time changed. but to say that we were going to defund it just-- after the 2012 elections, every speech i gave all over the country, we'll repeal and replace obamacare. well, we lost. we still can fight provisions of it, and the irony of all this is, the roll-out is a fiasco. that should be on the front page of newspapers. >> schieffer: what about ted cruz and the impact he's had? is that positive for republicans? >> oh, obviously it's very divisive in our party, but ted cruz is entitled to his views, and he's very articulate. he's very intelligent. and what we need to do is to have this debate within the republican party. and it's going to be a serious debate, and, look, i respect senator cruz. he didn't make any bones about what he was going to do when he came to washington. the question is, is should we follow that leadership or should we go in other directions and coalesce the majority of the american people? look, i guess we can get lower in the polls. we're down to blood relatives and paid staffers now. but we've got to turn this around. and the democrats had better help us rather than do what they've done-- turn down two good proposals that they were about to agree to, and then, of course, this proposal that they just scuttled yesterday. >> schieffer: what do you think the sticking point is? >> the majoring point, is of course, sequestration. that's the key element, and i'm very worried about the devastation to our military and our defense. but at the same time, we do have to reign in spending. that's a major sticking point here. senator, thank you so much i want to go to new hampshire, and republican senator kelly ayotte, who is in man chevmenter this morning. she was one of those working with susan collins who came up with the plan. a lot of people thought it was going to be the plan to kind of break this stalemate and then it all fell apart. senator, where do you think this is right now? >> well, unfortunately, bob, i did think we had a framework for a plan. we had six democrats, six republicans. something that would get the government open, address the debt ceiling, also some things we could agree on around obamacare exprirk to agree with what senator mccain said. we were close and then the senate democratic leadership-- and i believe the white house-- pulled back, and where i'm concerned, bob, is where we are now is that the defunding strategy was a zero sum strategy, and now we have a zero sum response. and the american people lose. so it's time-- i'm tired of the politics on both sides. time for us to resolve this. but again, the democrats did pull back from this. and it's unfortunate. i thought we were close to getting an agreement. >> schieffer: do you now believe that the government will go into dwe fault, that you won't be able to come to an agreement? when is it, wednesday or thursday that the deadline runs out? thursday, i guess it is. >> bob, i hope not. we can't do that. it's time to put-- get out of our trenches and resolve this, and we need presidential leadership to resolve this. i can understand the american people are tired of this. and, again, i think the zero sum politics is not good for anyone. it's not good for the american people. so i hope that this bipartisan agreement can be resurrected. we can get this resolved. we can get the government open, and, ocialg also, deal with the debt ceiling issue while talking about our underlying fiscal challenges. we still have $17 trillion in debt. >> schieffer: do you think-- the same question i asked senator mccain-- do you think there could be a deal that could come through the house that does not enjoy the majority of republicans in the house? do you think that such a deal is possible? >> well, i think that's the challenge for the speaker of the house. and, obviously, in terms of his leadership, it's important that he stay leader because who comes next in the house of representatives? we need to govern this nation and solve the problems of this country. so i'm hopeful that the house can get their act together and come up with something that can pass the senate. if not, then the senate's going to have to do it. again, we were close to a bipartisan agreement, and i hope that the president leads on this. that it doesn't just become this political game. >> schieffer: what do you think the fallout is going to be from ted cruz? some people say he has led your party into what amounts to a box canyon here, into a place where there doesn't seem to be anything out. do you-- what's your evaluation of the impact he's had? >> well, i believe that defunding strat joint chiefs of staff a failing strategy from the beginning. it's not something they supported. although, i opposed the health care law, and we've seen the flaws with the law as it's been rolled out. but look where we are. from the beginning, the government is shut down, obamacare exchanges have still opened. so i just disagreed with the strategy. i think it's time for conservative problem solvers to move forward, to govern the nation, to get things done. that's what ronald reagan did. and i think that's what we need to do as a party. >> schieffer: all right. all right, well, senator, i want to thank you very much for being with us this morning. and i wish you the best of luck. we'll be back in one minute to get a tea party analysis of all this. i'm beth... and i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people. so you have time to focus on the things you love. ink from chase. so you can. losing thrusters. i need more power. give me more power! [ mainframe ] located. ge deep-sea fuel technology. a 50,000-pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. our current situation seems rather extreme. why can't we maximize our... ready. ♪ brilliant. let's get out of here. warp speed. ♪ >> schieffer: well, we're back now with one of the house republicans who is still encouraging his republican colleagues to stand firm on postponing obamacare, tim huelskamp is in his district in wichita, kansas, this morning. congressman, you have been a key player in all of this from the very beginning on the house side. what do you think you have now accomplished? >> well, bob, we're still debating, hopefully, the issue of obamacare, which is exceedingly unpopular, and clearly unworkable and remains unfairp. the last offer we sent to the senate was two weeks ago. they have yet to have a recorded vote. and i find it interesting listening to senators talk about what they might do. the house has passed 15 appropriations bills to keep the memorials open, take care of the veterans, take care of our troops, and the senate just sits there. at the end of the day what we have accomplished is not much yet. but we have to focus on obamacare, and we also have to focus on the underlying problem that's been ignored for years, and that's too much spending. >> schieffer: but, congressman, don't you have to focus on keeping the government running? nothing can happen until the government is running. and this idea-- i mean, people do this from time to time, but the idea that you can kind of put a wish list, attached to legislation to keep the government running, why is that a good idea? >> well, bob,un we've sent bill after bill to the senate. and they've rejected it. they chose to shut the government down over two issues. they did not want to extend the same break that the president gave to big business, did not want to extend that to the rest of america. and they also wanted to maintain their gold-plated health care system just for members of congress. i think those are two very unpopular approaches from the senate. but at the end of the day, we've got a spending problem, and we have a debt ceiling and it's approaching. the debt ceiling is note the problem, bob. it's the fact they've been spending about $1 trillion more than they're take next. i think most folks are tired of not only the games in washington, shutting down the world war ii memorial, and more importantly, which is why the tea party took off is they think washington is ignoring the underlying problems of spending too much money. >> schieffer: if i could interject. i think you may have a problem coming that may be worse than all of that. if the government has to default on its debts and the term, "full faith and credit of the united states government" is no longer operative, if that happens we're going to plunge off into the unknown. nobody knows what the impact of that will be on not just our economy but the world economy. would you be willing to let that happen in order to postpone obamacare, which you haven't been able to do. obamacare marches on, not marching very well right now, but obamacare has started. and all of the rest of this is happening. are you willing to let that happen to prove this point? >> bob, i know you are probably surprised to hear me say this, but i agree with joe biden in august of 2011, the last time we had this type of crisis, joe biden admitted in china to our folks over there that there will be no default. it's not going to happen. there are no payments due on october 17 to pay our creditors. there are no payments due until november 15. that's why moody's has indicated it's not going to have a major impact. >> schieffer: congressman, congressman, i don't want to interrupt you here, but that's not what the secretary of the treasury said. that is not what he reported. that just is not-- you tell me. >> well, he said a lot of things a week ago. i i think-- clearly the white house is trying to scare the markets. i think that's unfortunate. but at the end of the day, the reality soctober 17 is a date that will not have a major impact unless the white house is able to create concern about that but the real concern is not raising the debt ceiling, bob. it's as senator obama said in 2006, it's an idea, it's the result of failed leadership. they're spending too much money in washington, and this idea that we're going to continue to maintain a $700 billion deficit. that's the current position of the senate, and the president is to continue these massive deficits. i mean, the frustration i have, and i think most americans have is not only the games but more importantly the ignorance of the major problem-- a $17 trillion debt, trillion dollars worth of deficits every year for the first four years of this administration, that's why during the debt ceiling proposal last week was to say let's talk about entitlements, let's talk about how we can get our spending under control, not in the short term, not this week, this year, but in the next decade, and that's yet house republicans are pushing for a plan to balance the budget in 10 years, and obamaed cace cannot be part of that plan because it blows a huge noel our deficits. >> schieffer: okay, i think you've made your point. you're not backing off. you're not budging a bit. all right, well, thank you very much, conclud congressman. we'll be back with personal thoughts on another is very strange week in washington. it's a growing trend in business: do more with less with less energy. hp is helping ups do just that. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. 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[ male announcer ] let's go places. but let's be ready. ♪ let's do our homework. ♪ let's look out for each other. let's look both ways before crossing. ♪ let's remember what's important. let's be optimistic. but just in case -- let's be ready. toyota. let's go places, safely. long time, but i never thought i'd live to see what i saw around here last week. i come from the generation whose grandmothers aspired for their grandchildren to become president so it was hard to believe last week's poll showing the country has become so disgusted with its politicians, that 6 out of 10 americans would like to see every member of congress-- democrat and republican-- defeated. most people don't like the way the president is handling his job, either. but congress now get the approval of only 11% of the people. i heard several people ask and who do you suppose comprises the 11% who are pleased with them? when new jersey governor chris christie asked what he would do if he were in the senate he said if i were in the senate right now i would kill myself. i never thought i'd see a private citizen doing yard work around the lincoln memorial because congress shut down the government mowers, which is just after it dawned on congress, that they had inadvertently cut off death benefits for soldiers killed in battle. so i guess i shouldn't have been surprised when the 200-year-old clock outside the senate chamber finally stopped ticking because there was no one there to wind it. the first time that has ever happened, i think. but i can't say for sure. the only people who know have been furloughed. back in a minute. i am today by luck. i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. and i had like this four wheninch band of bumpsles it started on my back. that came around to the front of my body. and the pain from it was- it was excruciating. i did not want anyone to brush into me to cause me more pain than i was already enduring. i wanted to just crawl up in a ball and just, just wait till it passed. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. stations are going to leave us now, but for most of you we'll be right back with a lot more "face the nation," including our pam with former clinton press secretary dee. former house speaker newt gingrich. kimberley strassel of the "wall street journal." and dan balz of the "washington post." so stay with us. ,,,,,,,,,, the captioning on this program is provided as an independent service of captionmax, which is solely responsible for the accurate and complete transcription of program content. cbs, its parent and affiliated companies, and their respective agents and divisions, are not responsible for the accuracy, or completeness of any transcription, or for any errors in transcription. closed captioning provided by cbs sports division >> d:

legwork to maker the program more efficient and not just take it away from people that need it. >> dee deeo you approve of restricting what you can spend your food stamp money on, like cutting out cigarettes, chips, soda, whatever. >> of course, the bodega owners are going to take the money for anything, whether it be beef jerky or movies or cigarettes. it shouldn't be so easy. the cards and the way it works, basically rewarding people for going on food stamps and making it easy to stay on. it's almost impossible to get off. >> ebony, there is a suspicion this is buying votes. vote for me and i'll give you food stamps. any comment? >> i do. i hate that rhetoric of this game knee tack -- gimme tack timms for any side of the aisle. and. i agree with the notion of incentive-based programs to help people in need as they transition back to full employment. and we have to get this in the right direction. shouldn't be about recruiting more people on the program. it should be about helping people transition off the program. >> we have some agreement here. thank you very much. >> thank you. >> this

dee dee. to promote turkey as rick would say. he did not say that. i will give you time to recover, dee dee, what do you make of this? would hire anyone to -- computer geeks to fix this before i promote it. >> you don't mess with sports teams ever, don't mess with football. i am a colts fan, i think that ravens are already bad. we took the team away, then they are called ravens and now this? i feel bad for the time, they are going to make fans mad. people hate obamacare, they are going to be mad on sundays, what are they doing put the announcement on the screens when people have hot dogs and beer, they will say oh, no. neil: ravens never more? >> i'm trying to understand your objects. we can quickly get rid of half million dollars, this is a private foundation. foundation. you are not telling them what to do, they are private. private. >> taxpayer dollars to promote it. >> $120,000 for number of impressions they get is great value, what is your problem with this? neil: the law, the turkey and the law, i don't care who is paying it but you are promoting a turkey! use that money to fix the computer! >> be all that you

dee-dee cramer and stacey scott and ann simon and debby kay were with me the whole time. we got together. [speaker not understood] goes out to jeff miller for being so amazing and having such a great vision after all those community meetings. (applause) >> and i remember one meeting someone said they didn't want the playground redone because they knew everyone that was here already and it was so intimate. well, i hope you all get to know all your neighbors because there's a lot more of them that are going to be here now. thank you for everything. (applause) >> thanks, carina, thanks, lynn. >> this is something we all wanted to do. >> wait, i'm going to add to your certificates of honor to lynn and carina. from the entire board of supervisors we have certificates for all of you. so, thank you for all of your hard work. (applause) >> i want to bring up my colleagues, i have two great colleagues from the board of supervisors here today, supervisor scott wiener and supervisor john avalos. if you guys want to come up and say a few words. but before i hand the mic over, just re

the nest morning, daisy was found outside her front door with no socks, shoes or coat dee dee -- despiteng temperatures. her mother gave her a bath and noticed sexual signs. they had found his sister drunk at a party and brought her home and dropped her off. the goal was to keep anybody from finding out they had sex. the football player, from a prominent political family was arrested and charged with sexual assault. his friend was charged with recording the incident on an iphone. but about two months later, all the charges were dropped except for a misdemeanor, endangering the life of a child by leaving daisy out in the cold. the prosecuting attorney was ready to prosecute, but both the victim and her family refused to cooperate. >> the only people's stories that have been inconsistent throughout this whole thing are the colemans, the victims in this case. and i don't know why that is, but it is. >> reporter: those claims don't add up according to melinda coleman. there were threats made against her children. coleman says she was fired from moved away again, away from the small american

former clinton press secretary dee dee myers

. >> while many women gain weight from the predominantly starchy food served in jail, dee dee moore,ho we met at the hillsboro county jail in tampa, florida, proved to be an exception. >> i know when you first came in you were weighing about 210 pounds. >> uh-huh. >> what are you down to now? what? >> oh, i'm down to under 150. >> really? >> when i came in, i weighed 250. when i first -- >> 250? >> yes. i've lost a hundred pounds since i've been here. >> moore, who was awaiting trial in a high-profile murder case to which she had pled not guilty, attributes her weight loss to a distinct dislike of jail food and her in-cell workout routine. >> i run, i run in place, i do it for 30 minutes to an hour. i do leg lifts. i do the six inch. i do scissors. i do the push-ups, the sit-ups, the jumping jacks. this is "the biggest loser" contest and i got the public humiliation to go along with it. but now i'm skinny. >>> coming up, some of the wildest tattoos you have ever seen. >> get that piece on camera, baby? showing off your work, son. -- we chip away. at advancing safety with technology,

c-span2's booktv has shown over 40,000 hours of programming with top nonfiction authors including dee dee meyers. .. marking 15 years of booktv on c-span2. >> some programs to watch this weekend on booktv. throughout the weekend we bring you a few interviews and tours from the tv's recent visit to andy reid, pa.. at 4:45 eastern, a look at the smartest kids in the world with amanda ripley. at 11:00 p.m. dumbing down accords:how politics keep the smartest judges off the bench tomorrow at 5:00 eastern, we bring you a collection of programs about the federal reserve chairman and at 6:45 from the recent southern festival of books linda barnacle gives a history of the civil war battle. visit booktv.org for this weekend's television schedule. dr. james swanson is latest book is a history of the kennedy assassination for young adults is next on booktv. >> i am here to welcome you to this session of the southern festival of books and introduce you to our author for this evening's session. as you know our writer for this session is james swanson who is the edgar award winning author of the new yor

c-span2's booktv has shown over 40,000 hours of programming with top nonfiction authors including dee deeers. >> i thought that, wow, you know, that's the answer, if there were more women in politics, if there were more women across public life, more women in power around the world, things would change. so i called my editor and said i'm going to write a book, and she basically say said, okay. >> all of us in the working class are subjected to punitive taxes, being ignored by the elite media, not getting any kind of special interest help in washington like the fat cats get. we're all in that same boat no matter what color we are, and that's the real problem. >> we're the only national television network devoted exclusively to nonfiction books. throughout the fall we're marking 15 years of booktv on c-span2. ♪ ♪ >> we want to know how the government shutdown is affecting you. please send us your touts. >> make your short video message about the shutdown and upload it from your mobile device at tout.com/c-span. see what others are touting about. >> well, the u.s. senate is about to return t

dee dee myers yesterday gave a fantastic litany about why did the republicans do this? they lost one presidential race, they lost another presidential race. they lost senate races. all the polls are against them. here is -- and by the way. >> hard call. >> let's keep that up for a second. this is not -- i said this from the very beginning as "the wall street journal" and the litany of conservatives i've been talking about that agree with me. we've been saying this for several weeks. this many isn't about ideology. none of us, none of us conservatives like obama care. okay, we're with you. we're with you. i also -- i don't, you know, like cancer. right? but me going up and banging my head against the wall is not going to end cancer. it's irrational. >> forget about all the histrionics, they're playing a losing hand and playing it badly. it's just a neutral fact. they're playing it horribly. >> nothing to do with ideology. >> the impact may be to ensure that rand paul and mitch mcconnell if he gets re-elected remain in the minority in the senate because the house republicans are in their safe seats. they're not in that much danger. a few of them might be, but by and large, they're okay. but you know, the republican party could have taken the senate next year. >> let's now get some other perspective on this. sam stein and then luke chime in. think about the open mic moment you heard, the arguing over the tweets. the bigger picture is the capitol hill police working for no money putting lives on the line and the many others dealing with the shutdown in a very real way. sam, you first. >> yeah, i think it's taking a toll right now. you see republicans going to this piecemeal approach. they recognize the cuts have a human cost. so they're trying to change the politics around this discussion saying we'll willinging to fund nih, reopen the world war ii memorial, do this for the capitol hill police, and the president saying no, we need a full approach. we can't just piecemeal fund the government. i think the republicans recognize there is damage being done here. and that they need to change the topic away from obama care and say we are for opening parts of the government. and the president is not. i think that's actually pretty interesting change in the tone of this debate. i don't know how much effect it's going to having because the president is adamant he's not going to sign a bill unless it funds the full government. i think that moment indicated. >> luke? >> this whole shutdown was over the president's health care law. that's the last thing anyone's talking about now. there's a lot of members who are very apprehensive about that saying we had a gift handed to us with the website crashing but no one was talking about that because the focus was on the shutdown. one member said look, what these guys wanted, these 95 or so was a big pickett's charge before the health care became law so they went back to their districts and said we did everything possible to try and stop it. when you do everything to try and stop it, you amass a lot of human cost. you're starting to see that play out. at the end of the day, what do they get in return for this strategy? john boehner said yesterday to "the new york times" they're going to raise the debt limit. they lost their best negotiating position. it's difficult to see what they get out of all of this. is it a repeal of the medical device tax? i don't think they're going to get chain cpi because democrats are holding firm. we usually expect democrats to cave. this is not 2011. they're not going to give $2 trillion away with no revenue. fascinating see how this all plays out and how boehner emerges from it. >> let's just call it what it is, this is the ted cruz strategy. i'm kind of tired of people in the mainstream media telling me that ted cruz, it may be bad for the party but it's great for ted. no, it's not. no, it's not. this guy is isolated on capitol hill. may i remind americans that think this is great because there's a flash, there's a flash, yeah, oh, look at the flash. look at that shiny flash. let's run to the shiny flash. it must be great and that shiny flash is going to be sustainable. i remind everybody michelle bok mab won the iowa straw poll. i remind everybody here that sarah palin was in first place for a very long time and then was herman cain in first place and then donald trump was in first place for several weeks. you can going down the list. newt gingrich won south carolina. >> what is your point, joe? i mean, donald trump is our new president. he's doing -- >> exactly. my point is that this sort of activity is a great starter. it is a great starter. it is a terrible finisher. mike lee, mike lee is going to have influence in the united states senate i think for a very long time because people respect mike lee and tenth think that this is all about mike lee running for president. but all this stuff about listen, republicans as luke just said, they gave up their best negotiating position with the debt limit because of this terrible strategy that everybody warned republicans against. except for ted cruz, marco rubio, mike lee, and 30 or so people in the house. >> and what you're saying is paying off or not paying off for republicans as you warn because increasingly republican fund raidsers are feeling pressure from most of their loyal donors to really stop because of the politics behind the shutdown. "the daily beast" article quotes major donor who have deep reservations or who have stopped giving all together because of the growing tea party influence and what they see is the group's impact on handling the shutdown. one donor from houston said republicans misread the mood of the country going into the shutdown, adding, we are finding a marvelous way to grab defeat from the jaws of victory. another donor who hosted fund-raisers for paul ryan tom cotton and eric cantor says she is done giving money to the national republican congressional committee saying "when you have a small segment who dictate to the rest of the country, the result is what we've seen in the last two days." >> harold ford, this is about winning. these people are angry for the same reason i've been angry, not because of ideology but because of stupidity. it's about winning. they want to win. this is not helping our chances. >> two conversations. you're having a conversation about national electoral success. this obviously imperils that. watching mcconnell and rand paul talk about local parochial races, rand paul is as important to anyone who ensure mcconnell is able to succeed. that opponent he has, if rand paul suggests he finds that opponent appealing, it hurts mcconnell. you've been spot on now for several months. the question is, when does that seep into the other part of the party for the other conversation? the way these districts are drawn are important. think about that, reflect on that and perhaps offer a national solution. we're not going to get beyond the silly is, petty, small-minded conversation in congress till the republican party is able to embrace the bigger conversation about national electoral success. >> winning the white house back. >> in the strategic sense as you alluded earlier, obama care, you know, i happen to think obama care is great. but a lot of people don't and people can have principled reasons for that. but here was an opportunity for republicans to portray obama care as a total failure. and you know, because the website doesn't work, which is kind of silly. the website doesn't work on the first day. therefore it's a total failure. but that would have been the narrative. first impressions are important. >> they missed that whole opportunity. >> completely missed. because the websites are going to be functioning fine by the time we get this thing solved. meanwhile, people are flooding to the site because guess what, they need health insurance. >> it's going to be cheaper than anything they've had an opportunity to have. okay. luke thank you, by the way, for standing by. thanks for being on this morning. >> thank you. >> thank you, always a pleasure. >> for the first time this hurricane season, the gulf coast is on alert because tropical storm karen is churning in the gulf and could strengthen into a hurricane before making landfall. preps are now under way from louisiana through the florida panhandle. let's go to bill karins tracking the storm. bill? >> good morning, mika. over the warm waters of the gulf, this is a spot where we could get a strong storm. we've had a lot up towards the pensacola, mobile area. ivan is probably one of the stronger ones that hit. but this one is dealing with dry air and wind shear. thankfully overnight it actually weakened. it's still going to be possibly high end tropical storm or a low end category 18 hurricane at landfall. it doesn't look impressive. it's being sheered apart right now. that's great news. not showing any signs of intensification anytime soon. here's the forecast path. does take it up towards the gulf coast saturday night into sunday morning. as far as the winter storm goes, this is a crazy forecast. i got a tropical storm to talk about, a blizzard and tornado possible outbreak later this evening. snow is falling from casper, wyominging to rapid city. possibly one to two feet of snow in the beginning of october. late today, watch out in iowa, especially the northern half. could get isolated tornadoes and back down to kansas city. for mika and joe, you have your interests along the gold coast. . the panama city, pensacola area, this will not be a devastating storm but a lot of heavy rain and gusty winds. >> bill, thank you very much. coming up on "morning joe," david axelrod and chuck todd will be here. and twitter reveals a billion dollar ipo plan. but can it avoid a facebook-like fl flop. the politico playbook is ahead and the baseball playoffs are in full swing now. >> boy, last night, the dodgers. >> the great peter gamons will join us. you're watching "morning joe." we'll be right back. mine was earned in djibouti, africa. 2004. vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] 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 military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. time now to take a look at the morning papers. from our parade of papers, "the washington post", a small ship packed with up to 500 migrants traveling from africa caught fire, capsized and sachk off the coast of italy, killing at least 114 people. rescuers managed to save 150 of the migrants but over 100 are still unaccounted for. >> and the oregonian, portland police released a video of a deadly traffic shoot-out from the august. the stopped driver walked over to the police car and just started firing away. the military veteran then sped away with his three children inside. van allen was later found dead in his car, shot in the chest. the officer was also wounded but has since recovered. >> "usa today" twitter's ipo filing -- ipo filing revealed the company is growing quick but also spending a lot of money. last year the company spent nearly $80 million. twitter is expected to start trading by november and plans on raising $1 billion. my goodness. >> to do that. and the seattle times microsoft ceo steve ballmer only received 79% of his offense for the fiscal year, a sign of the company's falling profits. the company reported weak sales for its windows 8 software and the surface tablet. other top microsoft executives received 100% or more of target bonuses. microsoft right now is searching for its next ceo after ballmerer announced plans to retire. >> instagram will soon begin to feature advertisements. the company announced plans to ease into the roll out. eventually users will see video content from brands they don't follow. users will be able to close the ads and why they did not like it. >> from the sacramento bee, jerry brown signed a law allowed undocumented citizens to get driver's license ten years after former governor arnold schwarzenegger repealed the measure before it took effect. it's expected as many as 1.4 million undocumented immigrants will seek their drivers licenses over the next three years. >> in this weekend's parade, an exclusive excerpt from malala yousufzai he's auto boof grae in which she tells her story of recovery from the day she was shot by the taliban, an incredible story and incredible girl. >> with us now, let's go with the politico playbook. >> editor-in-chief john harris. >> texas state senator wendy davis has finally made it official. she announced she's running for governor in 2014. davis gained instant fame for her nearly 11-hour filibuster against new abortion clinic restrictions in texas but yesterday she focused her campaign on bringing the lone star state together. >> texans do not want to sit back and watch austin turned into washington, d.c. but state leaders that are currently in power are forcing people to opposite corners to prepare for a fight instead of coming together to get things done. i'm asking you to dream of all that we can accomplish together. i'm asking you to believe that the best of texas is yet to come. >> a recent poll shows davis trialing the presumptive republican nominee greg abbott by eight points. what kind of chance does she have, do you think? >> you know, her message was bringing texas together but in order to have viability, i think at least nationally what she's going to do is something like what elizabeth warren did in massachusetts is make herself a symbol for the willingness of liberals to be tough and to stand up and fight for their values. you know, always going to be somebody i think given the general ideological drift of texas that's changing a little bit with the hispanic vote, very conservative state. this is a really tough uphill climb for her not just in terms of polls but also financially. the way she's going to compete is running a national race to get money from around the country in to help her candidacy. a lot of people inspired by her filibuster against abortion restrictions, made her almost overnight a national figure. >> john, she talked about the divisions of washington. right now, there's a lot of bad blood on capitol hill between party leader over the shutdown. talk about how bad it is. >> well, it's terrible. john bresnahan has a great story, if you like bitterness, family bickering, bresnahan's story is catnip. this is not just an ideological fight anymore. not a policy fight. it's not a fiscal fight but his story makes clear up on capitol hill, it's a personal fight. boehner and reid can't stand each other. their staffs cannot stand each other. speaking of the democratic colleagues at a closed-door session yesterday, reid said look, boehner is a coward. he's a coward virtually shouting. the reid's -- boehner's staff in bresnahan's story uses a barnyard epithet. we wrote it in politico. i don't think i can say it on the air in "morning joe" but used choice words to say what they think of reid for leaking private e-mails they say. >> wow. >> wow, that is -- that's tough. >> john harris, have a good weekend. >> he could use a barnyard epithet here. >> perhaps. >> thank you so much. coming up next, peter gammons is here. that means it's time to talk playoff baseball. he's with us next when "morning joe" comes back. got a lot to talk about. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. waiting for your wrinkle cream to work? clinically proven neutrogena® rapid wrinkle repair. it targets fine lines and wrinkles with the fastest retinol formula available. you'll see younger looking skin in just one week. one week? that's just my speed. rapid wrinkle repair. and for dark spots rapid tone repair. from neutrogena®. and for dark spots rapid tone repair. 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. >>> here's the 2-1. and a fly ball hit down the right-field line. close to the foul pole. and this ball is gone! it's a home run! >> in the air to center field. pretty well hit. heyward back to the track, and that ball is gone! >> mike, where was that guy last year? come on. >> well, he never hits home runs when the club is behind or when you meed him to tie the game. a go ahead home run. he is who he is. >> when he's up 14-1, he'll take it to deep center. >> he will take it out. ask peter gammons. >> this guy's like elvis. he's secluded in the gates of -- his own version of graceland. you know, big musician. >> he play, you know. >> i know he plays. you don't have to tell me he plays. >> there he is, look. we got him. he's right him. >> i wonder if it's him or like cy and the wolf blitzer holograms. are you real peter, this morning? >> or like prin sis layia. >> so a lot of people looking forward last night to the braves game. braves and dodgers. but dodgers blew them out. >> well, you start with clayton kershaw. he is the best pitcher in baseball and has been for three years. i mean, you also have to understand, the dodgers are very good even though they've got kemp and ethier out. but the braves haven't won a postseason series since 2001. they've lost seven straight series. and 35 or 40% of their payroll has either been taken off the roster, sitting on the bengie or is injured. it's a hard match-up for them. and the dodgers are as -- our columnist chuck todd will tell us, really good. >> talk about don mattingly. does he win the world series ever as a player for the yankees. in a huge trade last year, took on a quarter billion dollars and then they had a horrible start. how close was this guy from getting fired? >>. >> well, stan caston, the dodger president has maintained it wasn't that close but it was speculated a lot about. it was really disappointing to me because the thing about don matting is he is so trusted by players. managing a baseball team is not, you know, playing computer games. it's about dealing with people. and mattingly is tremendous at it. there were a lot of personalities on that dodger team that, you know, he has to work around at different times. i think that the way the team played in the second half is not only a reflekds of having kershaw and greinke and rule less here, top three pitchers but a reflection of how much the players trust mattingly and knew in the end it would work out, and it has. >> peter, talk about an incredible october organization that because they don't play in the limelight of los angeles, new york, chicago, or boston, the st. louis cardinals. i mean, that organization, the young pitchers they throw out there, the way they've maintained the excellence of their lineup through the years, what an incredible job that guy has done. >> it is tremendous. but this is -- this organization is so steeped in history. it goes all the way back to branch rickey originating the farm systems. they have people that worked and developed there. their scouts have been there for years. it's just -- they keep -- right now, they may have the best bull pen in baseball with three kids, all of whom are making the minimum. three of their five starters in the playoffs are probably guys making the minimum. i mean, it's remarkable what they've done to keep the development going. and it's such a great baseball city. i mean, st. louis has had some downtown problems. we all understand that in the rust belt, but those cardinal fans come from all around the country into st. louis. and they're probably the team that could beat the dodgers in the national league. >> yeah. >> i think that that would be a great playoff series. >> yeah. >> sam stein. >> enough of this nl stuff. let's talk about the al, okay? let's talk about the red sox and the rays. as a red sox fan, i am petrified that we drew the rays. their pitching seems pretty solid. a bigger question for you, the existential question of baseball, do you throw money to build a team or do you build it up from the roots? this seems like one of those case studies of the rays build up through the roots. the red sox have a lot of money. how do you feel that will question is being played out in the post money ball era you could call it? >> i think what you're seeing is that the changing is teams are going to that model of okay, develop an organization, go from the top all the way down to the bottom. i mean, i think the indians have started to do it. that's why they were successful. the rays have done it brilliantly. the red sox in the last couple years have completely gone over to being an organizational development franchise. they have one of the five highest payrolls in baseball. i understand that, but they've gone in that direction, too. but i mean, the red sox have been the best team in the american league during the season. and they're very difficult to play in the postseason because they're so patient. 750 more pitches than any team in baseball during the season. but tampa has been the thorn in their side beginning with beating the red sox in the alcs in 2008, knocking them out in 2011, which sent terry francona to cleveland and theo epstein to chicago. matt morris starts tonight. starts this afternoon. i mean, he shut them out in july and they're 14-2 with him pitching on the road. then you go david price and alex cobb. there is no given when you're playing tampa bay. most people have no idea who more than evan longoria and david price really are on that team. >> it's heilemann here. i'm not going to ask you the question like sam stein. i'm not that deep. i just like to hear your picks on all four series >> i will go boston, detroit, because i think detroit's power pitching will really play out in october. dodgers, cardinals, and i actually think in the end, detroit's pitching gets them to the world series. and i think that in the end, the dodgers' great pitching gets them to the world series. >> mike, what do you think? >> i don't disagree with peter. detroit comes at you with scherzer, verlander and anna bell sanchez who has flown under the radar but he might be the best of the three this year. but my big thing is i have to get 206 people into the ball game this many afternoon with no tickets. >> that's a problem. >> pirates have any chance to beat the cards? >> no. >> they might. >> i'm not one of them. >> i know. >> i got my own ticket. >> pete is always helpful in that regard. >> mlb network's peter gammons, thank you. they will exclusively air game two between the cardinals and pirates today at 1:00 p.m. coming up next, josh green joins us to explain why he says the republican party is no longer the party of business. the must read opinion pages are next. ♪ ♪ hey lady! noooo! no! 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>> i do. you know, the republican party over the last two cycles have seen not only a democratic party that is on the ascend answer in the business community for the reasons that josh laid out in the piece, but really the wounds that republicans have suffered have been self-inflicted as the democrats have been offering a kind of plan and a way for the business community to embrace them. whatever you want to say about obama, his posture and tone has been unarguably tough towards the business community but his policies -- i remember at the beginning of the his term, card check was the biggest concern. that didn't materialize. so i think you have a democratic party that finds itself in greater favor with the business community. >> josh, the business community, they had several ceos came to the white house a couple days ago, met with the president and other administration officials. you get the sense in talking to some ceos that while they view what's going on on capitol hill as deeply troubling as most americans do, there's not the fear about it right now as there was a couple of years ago because i don't know, they think these guys are such clowns that they will not take it over the edge? what's your view? >> i think there is a dangerous complacency among some people, more on wall street than the business community generally. because their view of washington is congress is a bunch of idiots but at the end of the day they'll do the safe thing and figure it out. there is a real danger time though that you have so much pressure from kind of the ted cruz tea party wing of the party that i'm not sure that are we will escape disaster this time around. if you look at some of the market indicators, not just the dow jones average but also the cost of insurance against a default on u.s. bonds, it skyrocketed over the last couple days. even wall street is waking up to the possibility this could be really damaging. >> joe, listen to the "washington post" editorial, essential workers deserve more. secret service personnel, capital police and probably many others rushed toward and not away from danger like hundreds of thousands of other federal employees, these are men and women whose contributions have been demeaned by the federal shutdown who are being asked to work without at least for the moment being paid and who are doing their jobs with considerably more dignity than the house of representatives has mustered. we all owe the capital police a debt of grat you'd for their work every day. no finer examples of professionalism and bravery tweeted house speaker john boehner. that's true. but mr. boehner owes them and the rest of the federal workers more than 1 40b character message of thanks. he owes them a paycheck. he owes them a budget. he owes them an apology. >> i think that's why some of us believe that they should make progress wherever they can make progress even while this bigger fight's going on and probably dag on a couple weeks till we figure out exactly what to do with the debt ceiling but whether it's funding d.c. which has passed the house, whether it's funding the va which passed the house or whether it's funding the national institutes of health which has passed the house, whether it's funding the park services to keep the park services open, that's already passed the house. these things have passed the house. it's not perfect. i know there's still a minority in the republican party that's holding everything else back. but get what you can get done. >> joe, do we know if the members of congress are being paid during this time? >> yes. >> it's interesting. they're getting paid and just to point out almost half of the 535 members of congress, according to "the new york times" are millionaires. >> i don't begrudge them on that. >> they're out of touch. >> but they're being paid during this time and people entrusting them are not. if you want to talk about salaries, we can do that about around the table. >> josh green, let's talk about people suffering right now and in so doing, i'm wondering whying this republican effort to pass these separate bills, it doesn't seem to be taking hold at all. is the white house betting on that, that the republicans are not going to gain traction because they just pass that clean cr. >> i think so. any bill that passed undermines the larger democratic strategy of just saying we are not going to negotiate with a gun to her head. we're going to force this clean cr, clean debt ceiling raise. i write about that this week. there's real damage being done to the republican party, among a pillar of the party that so far hasn't been alienated. we've talked since the election how republicans are putting off immigrants, young people, minorities, suburban women. now you have kind of pillar of the community small business types who look at washington, who see the shutdown, who see the fact that it's causing $300 million a day, killing consumer confidence, and hurting the bottom line. i had one furnituremaker ceo in hair rolled's home state of tennessee. >> in chattanooga. >> chattanooga saying he was done with the republican party. he considered house republicans to be suicide bombers with the american economy. so i think there's a real danger here that's really not getting a lot of attention in kind of the day-to-day coverage of the shutdown so far and something the gop feeds to worry about. >> josh green, thank you very much. >> thank you, josh. >> coming up, the white house says the obama care glitches are nothing to worry about and that the rollout was still a success. a top advisor will join us to explain why. more on "morning joe" when we come back. lyrics: 'take on me...' ♪ ♪ 'take me home...' ♪ 'i'll be gone...' ♪ 'in a day or...' man: twooooooooooooooooo! is that me, was i singing? 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[ under his breath ] that was horrible. pays you cash when you're sick or hurt? [ japanese accent ] aflac. love it. [ under his breath ] hate it. helps you focus on getting back to normal? [ as a southern belle ] aflac. [ as a cowboy ] aflac. [ sassily ] aflac. uh huh. [ under his breath ] i am so fired. you're on in 5, duck. [ male announcer ] when you're sick or hurt, aflac pays you cash. find out more at aflac.com. >> coming up, former senior white house advisor david axelrod joins the conversation. also, nbc political director chuck todd, much more "morning joe" straight ahead. but they didn't fit. customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. 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(whistling) your husband left his cell phone on. and you're not necessarily proud of that. but tonight, he made the pizza. ...with johnsonville italian sausage. the premium cuts of pork and perfect blend of herbs and spices gave every bite even more flavor. and everyone loved it. and you're definitely proud of that. johnsonville. served with pride since 1945. >>> so you're saying the government shutdown should end before obama refuses to shut it down. ? you say he should refuse to end it before it ends. >> no, he shouldn't refuse it. he should just end it before it ends. >> do you think it's right that president obama refuses to end the government shutdown until the government shut down ends. >> hell, i think it's wrong man. >> so you're saying it should end before obama refuses to shut it down. >> it should end it quick. >> do you think it should end before he ends it. >> ends before it ends. >> as long as it ends before he ends it you're good? >> yes. >> welcome back to "morning joe"ing >> day four. >> that was so impressive. >> that's some lucas. >> that's called television coverage. john heilemann, eugene robinson, and harold ford junior are still with us, along with sam stein in washington. and joining us now from south bend, indiana, former senior advisor to president obama and director of the university of chicago's institute of politics, and msnbc contributor david axelrod. good to have you on board this morning, david. >> good to be here. >> david, let's really quickly break it down. where do we stand here? i'm asking you as a political analyst, not as a friend and long-time advisor to barack obama. what are the dangerous of both sides? obviously the dangers republicans face much greater than the dangers democrats face. no false equivalency here. but what would you be warning the white house about if you were on the inside this morning? >> well, here's the dilemma, joe. both sides have in certain ways painted themselves into a corner. i think the president has by necessity. but you know, you've established the principle, no negotiations at the point of a gun. and the shutdown, no threat of a debt ceiling fight. and then let's talk. the republicans need a poll to slide down to get out of this predicament they've put themselves in. you and others said if you make the affordable care act the target, this is only going to end badly. and it's ended badly for them. now they're looking for a way out. so for the president is how do you give them a way out without sacrificing the principle that you've established, which is we're pot going to negotiate at the point of a gun. it's very, very tricky to navigate through that. >> what do you tell the president as an advisor, under no circumstances can you back down because if you negotiate, your presidency in effect is over? would you tell him that? >> i believe strongly that he should hang firm on then principle. i think it's really important. and as i he said, it's not just for him but for the future. if you back down now, the signal it sends is that every time we come to these junctures that it's a legitimate tactic and productive one to hold the president and the country and the economy hostage. i don't think you can allow that to happen. >> you can't let that happen. you just can't. >> let me ask you this, david. you're in the town where notre dame obviously is. you decide this morning to take a walk around the famous football stadium. you trip on some of the fabled steps. you hit your head and you're suddenly a republican. what advice do you give to republicans in the house today? how do they get out of this without completely. >> saving some face. >> saving some face and not looking like it was a completely botched operation? >> i'd say a few things. first of all, they miss add opportunity because they actually won a victory when the democrats in the house and senate agreed to a short-term continuing resolution spending bill at the levels that the republicans demanded. that was a victory. and they breezed right past it, and they never claimed it. i still think that that's a victory for them, but obviously, they believe that they need more than that. i see them suddenly trying to shift the discussion away from the affordable care act to a larger discussion about budget, and of course, if you're going to have a fight over the budget, over the debt ceiling, it should be about the budget, right? not about your extraneous ideological fetishes. so they're trying -- >> they shifted the discussioning >> this doesn't have to get personal, david. >> wow. >> talking about me that way. what's going on. >> it's just weird. let's open it up to the table. fetishes, john heilemann. >> even when david has amnesia, he still comes back to being a democrat. >> he can't do it. >> gentlemen, here's what charles krauthammer writes in the "washington post." who shot down yellowstone? i don't agree with current republican tactics. i thought the defunding demand impossible and therefore, foolish. tactics are one thing. but substance is another. it's the democrat who have mocked the very notion of settled law. it's the democrats who voted down the reopening of substantial parts of the government. it's the democrats who gave live to a spontaneous authentic small government opposition, aka the tea party with their unilateral imposition of a transform nation it will agenda during the brief interval when they held the monopoly of power. that interval is over. the current unrest is the residue of that hubris. >> jean robinson, i'm going to ask you to talk about charles krauthammer. we don't talk about people we work with. let's do that with the post. what do you think about his column? >> charles is a great columnist. and like great columnists, he can -- he chooses what to emphasize. and he chooses what -- >> is he right. >> and a version of history for example he notes, democrats have refused to open. >> does he talk like that? >> you know how he talks. >> you know charles. i know him. i actually like him a lot. he's like a hero of mine. i never heard him talk like that. >> well, i paraphrase. but you know, he talks about, open the government. you know, those bills were brought up in a way that required a two-thirds majority to pass. so that the house democrats couldn't attach a clean resolution which would pass. so they were passing a way to avoid the vote that would have opened the whole government. look, his basic point, i mean, if you trace the derivation of the tea party, the moment of its birth, it was actually born before obama care. obviously it got bigger because of the fight over obama care. >> right. >> this is something democrats, obama care or universal health care, democrats have wanted it for decades. and they got it. >> yeah. okay. so speaking of different point of view and everyone kind of emphasizes what they want to emphasize, here's what you write in the "washington post." sam stein, take it from here. john boehner's turn to give in. republicans in congress are like a dog that chases cars and finally catches one. there's a fleeting sense of accomplishment followed by sheer panic. god bless representative marlon stutzman for at least being honest. we're not going to be disrespected he told the washington examiner. we have to get something out of this. and i don't even know what that is. nobody knows what the house republicans' goal might be at this point. so far they have managed to shut down the government and maintain enough unity in their ranks to prevent an open revolt by moderates and they also succeeded in getting democrats to fund the government at harply refused sequester lesks but for some reason they renounced this victory. >> gene robinson says the dog that -- >> does he talk liking that --? >> that sounded like charles krauthammer. >> they are kind of like. >> elocution school together, by the way. >> you and krauthammer talk a lot alike when other people are talking about you. they are kind of like the dog that catches the car. michele bachmann gleefully said this is exactly what we wanted. this is what they've been talking about, and yet, they were warned over and over and over and over again that would end in disaster. what do they do now? >> that's a really good question. >> what are they telling you on the hill. >> what does michele bachmann tell me on the hill. >> i suspect you talk to more than just michele bachmann. what do republicans on the hill tell you? >> it depends who you talk to. some of the republicans i talked to on monday night were very enthusiastic about having this fight. others were cautious and upset they were put into the situation. and i think david got to the an important point, which is what do you do now? do you give them an outclause? does the president say have this concession and then we can not fund the -- you can refund the government. and my question for david is, who do you engage in the house republican caucus? obviously john boehner and barack obama, president obama are having a difficult time talking. if you were there, would you advise the administration officials and advise the president to reach out to the 20 and 30 moderate members? do you engage the house conservatives holding this up? how do you go about creating the conversation that might facilitate an end to this? >> well, those discussions i'm sure are going on within the congress, the moderate republican members and democratic members. here's the problem. the problem is you have a civil war within the republican party and within the republican caucus. and boehner is trying to navigate his way through that. i don't know that the president -- and that's holding everything up. i don't know that the president can be that useful in terms of resolving that issue. i think boehner has to resolve to work with those members in his caucus who are willing to work with him to bring this to an end. at some point, you have to turn to those 20, 30, 40, 80 tea party members and say listen, we got responsibilities here. this is killing the republican party. i got to believe that their congressional ballot numbers in polling have shifted dramatically in the last couple of weeks. while many of those members don't have to worry about re-election, those moderates you mentioned do. and boehner is conscious of that. at some point, he has to take the quhip to these guys and say we've got to bringing this to an end and this is how. i don't know that the president can do that for him. >> don't you hate it when you get talking on a live mic? it happened. >> yeah. >> yeah, it's bad. it happened with the kentucky senate delegation. take a look. >> do you have a second. >> i'm all wired up here. >> i just didn't see an end. i just go over and over again we're willing to compromise, we're willing to negotiate. i don't think they poll tested we won't negotiate. i think it's all of for them to say that over and over again. >> i do, too. i just came back from a two-hour meeting with him and that was beak the same view privately. >> if we keep saying we wanted to defund it, we fought for that and now we're willing to compromise on this, i think -- i know we don't want to be here but we're going to win this i think. >> that was strategy. they think they're going to win. >> there are still some people on capitol hill who think the republicans are going to win this. there are also children who believe the great pumpkin is going to rise. >> i love the great pumpkin. >> on october 31st. >> hold it, hold it. the great pumpkin, what are you saying about the great pumpkin? >> he wore his great pumpkin pants, see? aren't they nice? they're pumpkin. >> those are his nantucket pants. >> the key line in rand paul said to me was, i know we don't want to be here. you know, they don't want to be in the situation. and so. >> but rand paul thinks they've got a shot of winning this thing and i'll tell you, some republicans still do. but not the ones that have been in washington when one of these things went down. >> not so much. >> i think the thing that's going to be so fascinating to watch over the course of this month and it goes back to something that david was talking about a second ago is the fate of john boehner and what will happen now. because i think there are a lot of republicans who -- republican really good republican journalists and writers watching this and saying boehner's got one with big move left to make. and probably the move that he makes when he has to do the thing that david axelrod was talking about which is say okay, we now have to make this deal whether it's in the context of the government shuttup and the debt limit or one or both together or separately, when he makes that move, it's quite likely to cost him his speakership. the moment where he has to do the responsible thing could end up being his down fall within the caucus and that would be a moment i think of great drama in washington. >> i think he's in trouble no matter what. i would hope that he would want to go out like walter white on his own terms. and he could do some very strong things. chuck todd, let's bring in chuck at the white house right now. i think boehner could do some things that actually showed real strength, might cost him the speakership. but you know what? politics is a funny thing. i actually found out over the course of my career, when you actually do what you think is the right thing to do and go 90 miles an hour, you usually win. my quote to young politicians always was they never stop you when you're going 90 miles an hour. i think boehner showed strength here, some interesting things could happen. >> well, the reason he's kept the moderates from splintering so far is that he's promised them this on the debt ceiling he isn't going to push the envelope, that he isn't going to let the smaller tea party conference dictate the strategy on debt ceilinging and that's how he's gotten them to sort of stick the moderates to stick with them on the shutdown strategy. we'll see. it feels like he's juggling chain saws here, to be honest. i don't -- i don't know how he pulls this off and survives the speakership or saves the republican brand. it's all in his hands. it's all in his lap, what's best for the republican brand is bad for his politics in that conference. and so how do you -- how do you deal with both of them? let's see what happens. they have that meeting today, the conference. you wonder, i do think, joe, that there's a lot of republicans that feel the way rand paul does, which is you know what? they have a shot at winning some of the spin war or at least they think they're winning the spin war now because i think they're just watching and listening to their supporters tell them, hey, you're winning. great job, great argument. i this i they're in a bubble a little bit right now. we'll see. next week is a whole different story. next week is when the next round of paychecks that are skipped, the first big paycheck that is skipped. i think that's when things could change a little bit. >> chuck, i can tell you going back to '95, '969 shutdowns back then, things got really ugly after a couple of weeks. that's when suddenly conservatives started calling your office screaming because you're right. there was a ripple effect that was impacting small business owners in pensacola because some federal employees that work at the bases -- there is a rippling effect. the longer it goes, the more it hurts. i would like to ask though, harold ford, what republican on capitol hill really bleebds when you worry about the thing that i'm worrying about right now and that is winning the white house again, making sure hillary clinton is not president for eight years after barack obama's president for eight years, look at this poll. what republican believes this government shutdown is good for the party? 72% of americans disapprove of this federal shutdown. 25% approve. >> which makes it harder to understand or comprehend what the strategy might be right now, the republicans believing they still have a chance to win this. the question for david, playing devil's advocate for one moment, would you have advised the president yesterday some of the comments that suggested i don't think the president was actually on twitter but they suggested he did a twitter message saying something negative towards john boehner. the question i would have, if boehner moves on to some of the comments that john heilemann just raised to be forced out or whatever, who's next? is it easier to governor with boehner or find a partner with perhaps i think we might both agree that someone may come behind him that would be really bad. >> sounds like we're talking about the middle east here. i don't know. you know, i have to say, again, i don't know that the president can effect that. we're in an instance here where he has to keep the pressure on. but i was interested in what rand paul had to say. he thinks that because the president is saying we don't negotiate at the point of a gun, that somehow they can win that fight. once you put that gun down, the president is willing to talk about a whole range of things. i don't think what the american people are hearing is that the president doesn't want to talk at all. i think they're hearing he doesn't want to talk at the point of a gun, put the down down. as long as he keeps that in balance, i don't think the rand paul scenario will come into play here into david axelrod, thank you very much. chuck todd, thank you, as well. >> chuck the dodgers man. last night they looked great, didn't they? >> kershaw didn't even have his best stuff and he had 12 strikeouts. those brave hitters apparently you only have to swing for the fences. thank god. >> and texas, iowa state, i'm sure you caught the ending. that bad ending. the cyclones got ripped off at the end there. >> i watched both games. >> i like mike brown. i'm happy for him. >> i watched the braves game twice. it was awesome. >> we'll see you at 9:00. >> you could spend the whole day just watching >> come on, mika. >> with a beer on your belly. >> up next, cnbc's michelle caruso-cabrerra joins us with her thoughts on the looming debt ceiling showdown. she's going to tell us how she really feels. she's just getting started. also, the congressman many say was behind the house plan to tie defunding obama care to the short-term spending bill, republican congressman tom graves will join us. you're watching "morning joe." we'll be right back. ♪ ♪ ♪ [ male announcer ] the new twin turbo xts from cadillac. 410 available horses. ♪ room for four. twice the fun. ♪ ♪ [ male announcer ] over time, you've come to realize... 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[ male announcer ] and more of a journey. keep going strong. and as you look for a medicare supplement insurance plan... expect the same kind of commitment you demand of yourself. aarp medicare supplement insurance plans insured by unitedhealthcare insurance company. go long. >>> to some of us, doing the right thing in congress is not about helping a political party. it's about trying to help the people that elected us. it's about trying to do what's right for the whole country. and if your heart doesn't break when you read these stories and when you take the phone calls and if your heart doesn't break. >> time to wake up. it's 25 past the hour. here with us now from capitol hill, everyone's exhausted, republican representative from georgia, congressman tom graves. good to have you on board. here on set, cnbc's michelle caruso-cabrerra who is going to talk about fear mongering in just a moment. first, congressman graves, obviously you led the gop charge against obama care. could you possibly be satisfied with where this fight is now? >> this isn't one person. we are unified as a republican conference. around a lot of things. number one keeping the government open. we've been passing a lot of legislation that keeps the government open but also protecting constituents from the harmful effects of obama care. what we've been doing in the house is taking components here of late even after the shutdown and passing to the senate. what i'm disappointed in right now the is harry reid's reactions as one of the negotiators assigned from the house, he won't let any democrat come meet with us to have a conversation about where there are area of disagreement. in fact, there are many, many areas we do agree. unfortunately, harry reid is just digging in right now. >> are you good with the strategy of ted cruz? >> we've got a strategy in the house. i'm not sure what you mean, but what we're doing is passing components of the federal government and trying to open it back up. we took care of the veterans last night, the national guard, the reserves, national parks but yet again, harry reid stands in the way of taking care of our veterans or even. >> you're talking about harry reid. could i ask you about ted cruz and the strategy that he has imposed upon members of his party, and there even was a meeting the other day where he was asked by other senators, what's the end game and he did not have one. are you comfortable with the strategy that members of your party and the senate have taken since you're not comfortable with harry reid's response? >> the end game for all of us is that the democrats at some point have to recognize an important ingredient in a negotiation is they show you. .for whatever reason, they're very uncomfortable in having a conversation with us about the areas we disagree. this is an issue going on for a long time. it's really about fairness if you want to get to the crux of what this is all about. the president has provided delays for his friends for big business, for members of congress and insurance companies. we just believe it should be applicable to all of america. >> all right. >> congress graves, harold ford. shutting down or stopping the obama care act has been a central part of what you all have said. are you now saying you just harry reid to take up the various single shot pieces of legislation you guys are bringing forth? if you're pursuing this strategy, i would hope you would bring up something to fund the capitol hill police. are you now dropped obama care as the central plank. >> we're talking about opening up the various items of the federal government. >> stopping the defunding obama care, are you all still, that's what her question is all about. is that where house republicans are all about? you can't criticize a democratic senator and not be critical of the republicans. are you still where you were from the outset of this conversation. >> it's interesting to watch the process evolve a little bit is that we put forth mainstream ideas and solutions. we've gone from a full delay. now we're saying can we not provide americans with a delay of the individual mandate. give them one year to work out all the problems we have. i would say that's what we've been discussing here of recent. the president still refuses to remove that mandate, that compulsion of the american people to buy insurance or otherwise be punish pd when in fact he has removed that requirement from businesses or from members of congress and you no he, we hear a lot about well, it's the law and the president won. the court upheld. there are many components of the law the president is refusing to recognize or delay. we're just saying hey, if you're going to do that for big business, let's give all of america a break too. >> congressman tom graves, thank you very much. what am i missing here? >> i can talk to you about treasuries. >> am i missing here? >> in terms of -- >> you want to talk about the strategy, about the shutdown? you know all politics is local. so the reason republicans are doing this because at the local level, they think this is going to, senator cruz is playing a long game. he thinks obama care will not go well. if he problems to be right, he can say hey, i stood up and tried to fight it. the rest of you guys went along with it. if it goes well, he loses. >> right. >> that's well said. >> in the process, what do you make of the shutdown and then bring us to the debt ceiling debate. >> okay. so look, i've got a major thought. one major thought which is we keep hearing talk about default. the u.s. treasury put out a report about us defaulting on our debts, very alarmist. default is a very did i have fintive thing. if we do not pay interest on the u.s. government debt. if you pay things late, that's not a default. the chances of default happening are slim to none. we see that in the bond market because if the market thoughts bonds weren't going to get paid, they would be selling them and they're not. >> here's where the problem is. fear. uncertainty. these are cliches on wall street. >> they impact the economy. >> if investors don't want uncertainty and need an excuse to sell. if they sell or if the cost of bow rowing goes up, people will constrict borrowing. there's a snowball effect. you may be right. >> right. >> but that doesn't mean it could not sti have a drawingic impact on the economy. >> here's where the impact comes. every time the treasury talks about something being so catastrophic, they put it in terms of lehman failure, that bad. chances of that are very, very low. instead they've sold off. >> you don't know. >> you pretty much know. here's why. >> you didn't know what was on the other side of the press piece. and people don't know. >> here's what you do know. in the history of the world, there have been many, many times where governments have lost their ability to borrow. when they lose their ability to borrow and yet have to borrow to fund, they literally have to balance the budget overnight. you get all this tax revenue in every day. you have to make choices where that money is going to go, right? and what has historically always been the case all over the world, you pay. interest on the debt because gosh, you don't want invest ares to think you're not going to pay it because you need them to start giving you money. you pay the military and you pay social security the elderly. treasury so far has refused to say that would be the priorities. they're saying we don't have the ability to do that. >> all or nothing for them. >> they almost suggest it's technical. this is a government that can read every e-mail, follow every phone call, look at every social interaction but it can't pay u.s. debt before everything else? nobody's going to believe it. you see teeny little movements in short-term rates but not even an eighth of a point, 005 on a one-month bill? i mean, it's hardly catastrop c catastrophic. i would like it if the bond market would move because everybody would finally come to the table. >> you don't know what's going to to happen. >> it would bring everyone to the table. >> what i'm surprised about, they've used -- look, we've been through this so many times. the white house always says the consequences are dire. usually what they threaten is social security. this time they've tried to work the bond market and wall street that hasn't been very eb because they don't believe it. if you they're then social security, then everybody starts calling in, right? every member of congress is flooded with phone calls. that's what gets people back to the table. >> so a short. >> i don't think that would be true either. >> i do think perhaps catastrophic is overstated unless it progresses. that's fair, right? for a long period of time. >> but possible -- a sharp recession, yes. catastrophic looking into the abyss, no. >> my lord. we bring all points of view. michelle caruso-cabrerra, thank you. come back. coming up, states from lds to florida are on alert for tropical storm karen as it turns into the gulf coast. we'll go live to pensacola, next. 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? 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(vo) meee-ow, business pro. meee-ow. go national. go like a pro. >>> beautiful. he sa cola. for the first time this hurricane season, the gulf coast, the northern gulf coast on alert because tropical storm karen is churning in the gulf. col strepgen into a hurricane. i'd give it maybe a 30% chance of doing it right before landfall. preps are under way from louisiana south near the mouth of mississippi through the florida panhandle. pensaco pensacola, jim cantore is located right about in here. as far as pensacola goes, you could be on the right side of where it makes landfall. what are your concerns? >> yeah, bill. i mean, you know, right now as long as the storm stays separated, in other words the center is here and about 100 miles east we have thunderstorms. we anticipate a storm that will strengthen further. our big concerns are with the water and sought so much the water you see behind me coming in under the peer but the water from the sky. if we get 6 to 10 inches of rain, that adds onto the foot surplice we've had. that is the biggest concern. now, regardless of what the storm looks like this morning, everybody is taking this serious. especially yesterday when it was forecast to become a minimal hurricane, taking the lifeguard stands off the beaches. they've even moved these back here on the pensacola beach. so you know, this is an area that's been accustomed to storms and they're going to take this very, very seriously regardless if it comes in as a wimpy tropical storm or something that may approach even a minimal hurricane. >> jim, you've been doing this for years. if i was to tell you we would have a storm that develops just off the yucatan heading just off the gulf the first of october, it would be worse than this. amazing it's not going to be another bad storm. >> this is the anniversary of opal, 1995, it destroyed this peer behind me. a concrete peer now and made it through ivan. the waves were over the top of it during ivan. you're right. a storm in october in the gulf is a dangerous thing. right now though, karen is just kind cuff wimping along. >> jim cantore there live in pensacola. we'll stay with the storm in case it does anything over the weekend. stay tuned. more coming up on "morning joe." 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[ male announcer ] 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 military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. >>> consider that just a couple 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 that apple should stop selling is iphones or ipads or threatening to shut down the country if they didn't. that's not how we do thingsings in america. we don't root for failure. we get to work. we make things happen. we make them better. we keep going. >> very easy. >> barnicle -- >> you went back on. >> yes. >> and? >> i had to wait about ten minutes before it bumped me to the enrollment page. once i got on the enrollment page, maybe it was because of the hour of the day, it went very smoothly and i was able to go right through it. >> we're talking about getting on health.gov and signing up for the affordable care act. >> which reports were there were so many glitches, oh, my lord in the roll out. >> mike is saying -- >> joining us from the white house, david sea mus, the deputy senior advisor for communications and strategy. good to have you on the show. >> good an morning. >> we saw the headlines about day one with crashes and glitches and all of that. although barnicle is saying it took him how long? >> the second time i tried it, i had to wait for about ten minutes before it bumped me to the enrollment page. once i got on the page, it went very smoothly even for someone as illiterate as i am on the computer. it was very easy. >> you're not illiterate. >> the david, how is it going? >> here's what we know after 72 hours, we've had over 7 million unique visitors, including mike barnicle come through. it is a volume that no one, no one anticipated. just for perspective is, southwest airlines in an entire month has 6.4 million unique visitors. nbc in an entire month has 12 million. we had 7 million. so the overwhelming volume has really caused us to more servers, more engineers, tackle the problem. identify the issues, fix them so today is going to be better than yesterday was, and you know, here's another piece of this. we've essentially done 1.5% of the enrollment period. we've got another 178 days left to go. so i feel pretty good about where we are. >> gene? >> david, when are you going to have some numbers about how many people have actually enrolled for insurance besides barnicle? >> so, you know, mike barnicle is a good validation point any day. i'd like to rest on that, but here's what we're going to do. we're going to spend the next few weeks accumulating data, probably do monthly reports like we do with other programs, you know, with medicaid, medicare, and others and then use that time also. i think this is an important piece, especially for me. to learn what's working in some places and what isn't in other places. and use the data to really drive our response, not only in terms of the experience for folks, but the on the ground activity so we can learn from this initial stage. >> mike barnicle. >> david, in terms of the server when you're bumped to a spec state that has their own setup, has that caused a snag or any mechanical difficulties there? >> so look, this is, as you saw, mike, this is a three-step process. where the holdup has been has been at the initial sage when people try to create the account. once you create the account, as you saw, you go into the application and the plan compare and it's easy, and it's intuitive and makes a lot of sense. so what we're doing right now, this initial account creation stage, i mean, that's the piece that we're really layering on. and we believe within a couple of days, the wait time is going to be significantly, significantly reduced as we saw from yesterday and the day before. >> david, we'd love to have you back as this progresses to get more numbers on how this is going. hope you can do that. >> i can do that anytime. >> if they need someone to work on tech support, mike's got a lot of time. >> in addition to. >> he's well-known to be a master in java script and c plus plus programming language. >> i also bought a 1956 packard. >> david, thank you very much. >> can you draw a picture? >> david, last word. >> now that barnicle has got his affordable coverage, we can all sit down and enjoy jon lester tonight as red sox nation rises. >> there you go, man! come on. >> like this guy. >> all right. thank you so much, david. >> saved simus from westerly, massachusetts. >> huge red sox guy coming up. >> oh, really? >> there he is. >> star of the new sit-com "welcome to the family." we'll sit down with mike o'malley. >> looks good in that hat. in the nation, we know how you feel about your car. 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 ♪ and you're not very proud of that. but tonight he made pizza... ...with johnsonville italian sausage. and everybody loved it. and you're definitely proud of that. johnsonville. served with pride since 1945. make my mark i wawith pride.ork. create moments of value. build character through quality. and earn the right to be called a classic. the lands' end no iron dress shirt. starting at 49 dollars. i want peacocks. peacocks? 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[ female announcer ] come in to find the right credit options for your needs. because when people talk, great things happen. >> you're pregnant? >> pregnant is a word that currently describes you? >> wow. for your first time sharing, you really nailed it. we are really happy about this. >> as long as jr. is happy. >> have you thought about this? >> what this means? we talked about it today. >> did you talk about how the world's most irresponsible person is going to be a parent. >> a pizza, a half dozen iphone and things i am naming. >> things i drove off and left on the car. >> and now we are having a baby? >> the costar of the new comedy, welcome to the family. >> please watch welcome to the family. i want to talk about when i was living out in california i had a very long commute from venice all the way to studio city. i was doing a show called yet yes, dear." it would take an hour and i had to start making use of my time. i started to get books on tape. it was a great way. i listened to steven ambrose's story about the transcontinental reporter and it was awesome. i felt like i was learning something. i saw an interview by jack welsh. i got his unabridged auto biography as read by mike barnacle. i listened to mike barnacle about 54 hours. >> wow. >> i could not believe -- >> that's a punishment. >> he did an amazing job. i did then, i was asked to do a biography of sydney sheldon. it was his auto biography and he created i dream of jeannie and other things. i thought this is so great. it's horrible. it's the longest most horrible thing to do. >> all right. it's a close second. >> and third is from venice. beverly hills, that's a sin. it's horrible. >> mike is also a hand model. >> the problem is when you are doing a book on tape, you have to all of a sudden do the characters in the story. you have to do some characters in that story. >> the problem is you think you will never do it again because you lose your voice after three days and you are so sick of it. i know you are a success. why didn't you write a short story. >> why didn't he do it? >> it's his life story. >> woe love jack. he e-mails every three minutes. >> i thought he did a great job, mike. >> that was great. >> last night, i liked that. i never watch tv. you're funny. >> thank you very much. it's a show i think a lot of people can relate to. it's a family that becomes a blended family. some families shouldn't be blended. some things mix that shouldn't happen. i play a guy who is 46 who has an 18-year-old daughter who i am happy is going to college. >> just made it. >> i don't want her to leave? get out of the house. i have this renaissance and i top the enjoy time with my wife and my wife is excited to sleep with me because she took a vow. we are hanging out and i'm very excited because we had sex at a rate of twice in two days. >> wow. >> fiction? >> it's all very exciting and then boom. my daughter is home and she's pregnant. i didn't even know she had a boyfriend let alone she was active in that way. she is hanging out with a guy from stanford who didn't know enough about birth control that he got into stanford and i'm going to be a grandfather at 46. i'm excited. >> welcome to the family. i like the title when it comes up on the screen. it's a wttf. it looks like something else. >> it does. >> when you say blended family, what do you mean by blended? >> what we mean is sometimes you should not be mixed up with another family. when your sons and daughters go out there in the world, they fall in love with people who are going to be in-laws with people you shouldn't be with. and don't like. people understand that. the show is for anybody who is in a family who may not like someone in their family. >> that are pretty much covers everybody. all right. >> you are also in glee. >> i am. >> back in the days when we used to watch television, actionors and actresses would be on one show. now it seems like you see the same actors popping up on three or four parts that are on network tv at the same time? >> it is. i wouldn't say it's weird. i think it's wonderful. i am all for doing books on tape. we are trying to do a wonderful, more, trying to expand our business. on glee i'm just a supporting cast member. i play the father of chris's character and i'm really only there once every fee weeks. >> all right. that's amazing. that's work. welcome to the family airs on nbc on thursdays at 8:30, 7:30 central. it's very good. others should try it. and something else. up next -- i don't do that. ambien is not for your use. >> really? >> these things happen. >> you know that. >> tell people you are going t work. >> we are not on yet. >> this was just rehearsal. >> it's like it seems on television. you guys just chilling and hanging out. that's awesome. >> we just don't care. >> john boehner wants his house republican on-a hot mike moment between mitch mcconnell and rand paul reveal how they will handle the shut down. which will the people rally mind? that's next on "morning joe." my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare. 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[ male announcer ] get away fast with unlimited double miles from the capital one venture card. freeze! don't touch the face! can i drive? absolutely not. what's in your wallet? . >>> good morning. it's 8:00 on the east coast. 5:00 on the west coast. if you take a live look at new york city. wake up, everybody. it's going to be a beautiful day. we have john heilman, harold ford, jr. and in washington, sam stein. we will get to the latest on the government shut down in just a moment, but first the dramatic scene on capitol hill yesterday where a woman is suspected of trying to run down a white house barricade was eventually shot and killed yesterday afternoon with reports of shots fired. the capitol went on lockdown. legislators and staff were told to take shelter. when the dust settled, law enforcement said a woman named miriam carrey tried to ram her car through a barricade and took off at 1350espeeds reaching 80 per hour. capitol police surrounded her and she backed off and took off again, hitting an officer. she was later killed in a hail of gunfire, unarmed, despite early reports she may have fired a gun. the police fountain 18-month-old girl believed to be her daughter in the car. thankfully the girl was unharmed. it turned now to why carrey acted the way she did. she was a dental hygienist living in stanford, connecticut. she was recently let go by her employer who said she suffered a fall in january 2012. when she came back, she was pregnant and never the same. she was fired last august after complaints from patients that she seemed too rough with them. police searched her home, even deploying bomb robots, but it's not clear what she was doing in washington. >> nbc's capitol hill correspondent was in his office during the incident and heard shots fired. luke russert? >> a harrowing scene yesterday. 2:20 p.m. i was in my office that overlooks the west front of the capitol. i heard four loud pops. it made me stand up and i looked outside the window. capitol police had their guns drawn, running towards the noise. they had a few dozen of them get down on their stomach and evacuated them to independence avenue. within about 20 minutes, a helicopter landed on the mall, a capitol hill police officer was medivaced away from the scene. perhaps what was most ironic about that is you had a capitol hill police officer who was hurt in the line of duty yesterday who will not be paid due to the government shut down. they will not be paid or collect a check until after this is over. it's something that is important to remember. these guys put themselves in harm's way even when they get no paycheck. guys? >> each passing day, congress is unable to fund the federal government makes it likely that final compromise will include a solution on the debt ceiling. house speaker john boehner will not allow the government to default even if it means relying on democratic votes. meanwhile the president canceled his trip to southeast asia to focus on the shut down. he upped the pressure on boehner during an event in maryland. he said it's in the speaker's hands. >> there enough republicans and democrats in the house of representatives that if the speaker of the house john boehner let the bill get on the floor for an up or down vote, every congressman could vote their conscious, the shut down would end today. the only thing preventing all of that from happening today, in the next five minutes, is that speaker john boehner won't even let the bill get a yes or no vote. because he doesn't want to anger the extremists in his party. >> the president later tweeted tea party extremists caused the boehner shut down and quickly drew the ire of conservatives including a congressman who retweeted saying way to uphold the dignity of the office. here we go. >> interesting timing with john boehner. way to go, john. he said i am not going to let the country default and told all the extremist who is wanted to let it default, no. it's weird that the president decided to target john boehner yesterday after boehner did what i thought was a courageous thing to do. >> keeping pressure on. >> that was odd. i was actually talking to senior administration officials yesterday. it was somewhat different tone in that they said they were standing firm, but leaving john boehner out of this. that's still basically the way. >> that tweet doesn't -- first of all, a president tweeting. secondly talking about extrem t extremists and third, calling it the boehner shut down. i think we all know it's not the boehner shut down. boehner doesn't want the shut down. anyway. >> i think if you keep that all together yesterday, it was not great news for federal employees because it's going to last a while. better news for the full faith and credit of the country because it counts like if you put it all together, you can find a way to get out. >> obviously a lot of the business leaders of the country were relieved that boehner turned to 20, 30 people and said listen, you guys are not going to screw with the full faith and credit of the united states of america. >> it showed courage for the speaker. it was just how i think the president what he was trying to say given the benefit of the doubt and i agree with, but it doesn't help boehner to have the president claim that he is being held hostage, even if it's partial low true. >> right. >> at the same time have the speaker say i'm responsible and mature enough to know there certain things we cannot do. you would hope the bigger, smarter heads can come together. the thing during the speech -- >> you want to hold -- you are dealing with another side that is unstable at times. >> unstable at times. >> when you have a stable element there, i think you want to -- >> listen, i don't want to push you, but do we have to have them go through hostage negotiation training? >> i agree with the concept of try not to poke someone when they are showing signs of intelligence, but at the same time the speaker imitated the president and that was incredibly disrespectful. we could go on and on about that, but we will just move on. one side waits for the other to blink. heilman is here. >> i gave the car people the wrong address for the key. there was a lot of that. don't mind me. >> we thought you meant the other one. >> there was a lot of them. i get confused where to pick me up. >> wow. wow. okay. as one side waits for the other to blink in the shut down, it was caught with live mikes discussing strategy. >> i'm all wired up here. >> i go over and over here we are willing to compromise and willing to negotiate. you won't negotiate and it's awful. i stated that over and over again. >> i did too and i came back after two hours and it was the same view privately. >> we keep saying we wanted to defund it and now we are willing to compromise? i know we don't want to be here. >> what do you think about that? >> it's awesome that he said i'm wiring up here and then talked anyway. he took him off course on that. whenever he wants to talk to anybody, he takes his mike off and puts it in his pocket. once your mike is in the pocket you talk. >> every microphone is always live. if it's near your mouth, it's live. >> we are all wired up here, guys. so we are going to win this. >> the republicans are saying we are going to win this and it doesn't look that way to most people. we haven't heard from you. why? >> because the country is against them. the country is against them and all of the reasons, it's weird that they don't seem to get the calend calendar. when they fought this battle the last time in 2011, they were fighting against a president who was in the position of vulnerability. he had to run for election in 2012 and the threats they were able to bring against him put him in a position where if he pushed them to the limit would hurt him in reelection. the president is not running for reelection in 2016. it's a congressional election in 2014. the public opinions are pretty clear. he is winning the battle right now. >> show the first one about people supporting the shut down am how many support the shut down. deens do this, they lost one presidential race and another race and senate races. all the polls are against them. >> by the way, keep that up for a second. i said this from the very beginning as the "wall street journal" and the litany of conservatives that agree with me. this is not about ideology. we are with ya. also, i don't like cancer. right? me going up and banging my head against the wall is not going to end cancer. it's irrational. >> forget about that. some were appropriate and some were not. they are playing a losing hand and i pplaying it badly. >> for may be to ensure that rand paul and connell get reelected and remain the minority in the senate. the house republicans are in there safe seats. they are not in that much danger. a few might be, but by and large, they are okay. the republican party could have taken the senate next year. >> so let's get other perspective on this. think about the backdrop of this argument, that open mike moment you heard. the arguing over the tweet

c-span2's booktv has shown over 40,000 hours of programming with top nonfiction authors including dee dee meyers. ..

>> it's dee more real lies together the workforce and we've been dee more real liesd the last two years -- dee moral liesd -- dee moral liesd. >> now they've concluded the fires are accidental and the union wants an explanation. >> we were confident before they called into question these fires that our members had nothing to do with them but the state of mechanical problems seem to be more of the norm and it's good to clear the members and it's time for the mayor to apologize that our members sabb tajjed fire department property -- sabotaged. >> today mayor gray said the investigation was justified. >> i think the investigation was a very responsible things to -- thing to do because there were people who would have speculated about how these incidents occurred and now it shows nothing was untoward we can move on. >> it's not the first time firefighters have been accused of sabotaging their own equipment but there's no proof. >> the mayor says the city has added 13 new ambulances and the response times have improved. >> in the fox 5 newsroom, i'm paul wagoner. >> still no word on what caused de

c-span2's booktv has shown over 40,000 hours of programming with top nonfiction authors including dee dee meyers. >> i thought that, wow, you know, that's the answer. if there were more women if politics, if there were more women across public life, things would change. and that's, so i called my editor and said i'm going to write a book called "why women should rule the world," and she basically said, okay. >> all of us in the working class are subjected to paying punitive taxes, being ignored by the elite media, not getting special interest help in washington like the fat cats get no matter what color we are, and that's the real problem. >> we're the only national television network devoted exclusively to nonfiction books. throughout the fall we're marking 15 years of booktv on c-span2. >> the american enterprise institute hosted a discussion about another possible housing bubble in the u.s. and the role the federal reserve plays in the securities marketplace. you'll hear from representatives for the mortgage bankers association and the national mortgage news. their discussion is about

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dee on something as we're parsing through yahoo! numbers. paid clicks up 3%. yahoo! is making inroads. alibaba, which is crucial, yu-dee. they're seeing advancement when it comes to mobile and paid clicks. this seems to be a positive for yahoo! but you tell me? >> absolutely. that was the critical two things. one it is all about mobile ads, right? that is what people were looking at that will probably advance the stock. what is alibaba, they have a what, 28% stake in it. if they come out with ipo $6 billions that would will add a lot of valuation to the yahoo! stock. you're absolutely right. it is all about mobile ads and alibaba. cheryl: the stock is up 5%. congratulations to yu-dee as he called that one. david: alan what is happening with the cme as we're es closing out there. >> it seems kind of quiet. best thing to do is close risk. you don't know what will happen. put in a stop-loss and order execute your trading plans. number one thing i recommend to people make ure you're in strategy you can execute your trading plan just in case a worst-case scenario happens and you can exit. david: very good advice. alan, thank you very much. yu-dee chang, always a pleasure. mark newton, thanks so much for stepping up. more on yahoo! after ceo marisa mayer reveals the internet giant third quarter earnings. we'll dig into all the numbers for you. find out what they have planned besides alibaba. we know they have a big chunk of this company doing well that will go pub, give them more cash but what are they doing at home? we'll find out. cheryl: yahoo! and intel results coming out as well a few moments ago. they did beat. we'll talk to the chipmaker's cfo, stacey smith about

because, dee, that triggers my gag reflex, too, and then i feel like i'm going to throw up. it's fine. i had some bad spaghetti. (both gagging) dee two people in love. and everybody deserves... (both gagging) ...that right. look, i'm thinking that... i got to throw up. - i'm gonna throw up. - no, no, no. not in there. oh, sorry. uh... wait. i know you. bill ponderosa. (gagging) where are you going? hey, maureen ponder... hey. i was just going to go meet up with the guys. but i thought we were going to watch a movie tonight. watch a movie-- yes, we were. yeah, you know what-- but i feel the need to reconnect with the guys. so... but you know what, you can watch a movie without me. - what? - yeah, yeah, yeah. oh, god. dude, we have so many great, great movies here. got a lot of action films which is very, very exciting. got all the lethal weapon movies, which is cool. including the one that i made with the guys-- lethal weapon 5. yes. amazing film, truly, truly. although it gets a little confusing halfway through because mac and i decided to switch parts. he wanted to play murtaugh for some reason. yeah, and i'm not going to lie. h

dee. got another special guest for you. >> thank you very much. let's turn again to japan. corporate japan is getting ready for rising sales taxes in april. >> hi, dee. japanese companies are bracing themselves for the impact of a tax hike. retailer shares plummeted today. retailers are doing their best to bushon the blow. so their customers don't think that the price of products themselves have gone up. the construction and car industry will see a boost from last-minute purchase of homes and cars before the tax hike. many analysts predict the drop in home sales will be milder. there's hope for an economic recovery or higher and interest rates are climbing. back to you guys. >> thank you so much. let's give you a look at what's on the agenda in asia for tomorrow. there will be fewer data rele e releases, but both australia and thailand will post august trade numbers. japan retail sales will be in focus after shinzo abe's announcement. september sales while 7-eleven parent seven and i releases interim earnings. >> and i'm just looking up some more hockey facts. now you have me interesting. >> i'll work with you every day if we can just talk hockey and we can look up facts. >> you know the diameter of a hockey puck, 3 inches long. did you know that? i didn't know that. apparently they freeze them before games to prevent them from bouncing during play. did you know that? >> rules of the trade. i've played a little hockey in my life. >> i've played hockey, but out on the frozen ponds in copen hugen. but it was different. you borrowed your father's ice skates. >> our director, rod, plays hockey, too. i hear he's pretty good. >> yes. >> steve rejoins us. >> do you play hockey? >> do i play what, hockey? >> no, no, ice hockey or normal hockey, i don't do either of those. but i look at these markets and i speak to some of the biggest players out there, as well, including mr. michael milken. thank you very much indeed for joining us. i'm going to go straight in. you and the milken institute believe capital markets have the power to address economic and social issues. given what the capital markets have done to the social fabric of the global economy over the last five years, do you still hold true that capital markets can -- >> they do. and if properly applied, they create jobs, create opportunities. you know, i chose to go into finance. first i wanted to be an astronaut and lead the space program until the riots occurred in los angeles in 1965. and my feeling was that one of the rights is access to capital based on your ability. not who your father is, where you went to school, your religion, your rights, but based on your ability. and i think capital markets particularly in the united states have provided that opportunity. >> so i was listening to some of your comments last night. and i know some of those are off the record. but you were talking about inequalities that exist in the united states and globally, as well. i'm going to address that with the initial points again. do you think the capital markets are failing average americans when we look at median salaries stagnant in many cases, housing, ownership not providing the boom for americans. doing very, very well despite this financial crisis. >> well, there's great inequities that need to be addressed. but if you provide capital people with ability, new businesses are growing, created, household names, whether they be yahoo! or google or facebook didn't exist before and there's been dramatic changes. when people with ability had access to capital. the housing issue is a little more complicated. in asia, the number one expenditure for the middle class is on food. number two is the tutoring of their children. in the united states, the number one expenditure is on a house. number two on transportation. i don't believe you can build a society when you determine a house is more important than the education or health care of your children. and so part of finance is to reallocate. financial assets are those things that are more important to society. whereas we've made financing for housing easy, affordable, low cost. it has also brought a great deal of difficulty to the middle and lower middle class. because of that, the united states has one of the lowest median incomes in the world of any developed country. and i think the key to growth in any developed society is the education of your citizens. and i think we need to find ways to provide more opportunities to educate and also lep the middle class and lower middle class on how they can help their children with education. >> do you think that allocation of capital issue in the united states has been exacerbated by the political wranglings in washington, the fact that they can't come forward with any form of cohesive policy to sort out their own budget, let alone look at forward looking laws that will lessen that dependance on the housing market and have other priorities? >> well, i think it's difficult. this enormous commitment the united states has made in housing. if we go back 30 some odd years and the government was involved in 7% of mortgages versus 90 today, we see over this 33-year period of time ee nornlgus challenges, decrease in the net worth of the middle class, but also the fact that we haven't increased home ownership and the only thing that's really occurred is we've increase today size of the middle class family home. we have to decide is that really our objective? i think we have to work with people to reassure the future of the family lies in the education of their children and opportunities. and so the future for compensation in a developed society is the latest of skill sets. and when we talk about labor, we have a great entrepreneurial society in the united states, maybe the greatest. and those that have gone into that society have benefited financially. and i think we have to find a way to educate our population to the level of other countries today. so that is a challenge. the political issues, there's obviously strong differences on all sides, because solution of some side will be resolved at some point in time. and i think, really, you have to start at the family unit level and the education of our society. for china, india, singapore, taiwan, korea, education is the future. and that's played out and that education is a consumer product, not just a government product. >> the differences between the priorities of the west of the united states and indeed those emerging market of china and india will become less as they industrialize, as well, as they become a larger middle class society in china and india, as well. is it possible that they will go more towards the american priorities rather than america looking at emerging markets and saying, those are the priorities we will need? >> obviously, there's movement in both parts. and if we look at american priorities, america is the heaviest country in the world. and our work on -- and research in this area has shown that it costs the united states almost $1 trillion a year just the change in weight over the past two decades. absenteeism, out of pocket costs. if we could get americans to weigh the same level they did 20 years ago, we would free up maybe $1 trillion and many of these debates in our government would not exist. but we have allocated and so many resources to the fact that people are heavier and an increase of probability of getting cancer, diabetes and other diseases. >> we have to leave it there. thank you very much indeed for coming. i'm sorry it didn't work out being an astronaut, but things have worked out well. michael milken, the chairman of the milken institute. back to you guys in the studio. >> still to come here on the show, u.s. prospects are brightening. could it be derailed by the ongoing battle in washington? stay tuned. we head back out to steve to talk market reaction to everything going on with tom finke, the ceo of babbson capital. at farmers, we make you smarter about insurance. because what you don't know, can hurt you. what if you didn't know that posting your travel plans online may attract burglars? 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[prospector] ahh! what if you didn't know that kitty litter can help you out of a slippery situation? the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪ >>> welcome back. you're still watching "worldwide exchange." for the first time in 17 years, the u.s. government will go into a shutdown. steve handelsman has been watching the latest from washington and he files this report. >> it's not a complete government shutdown. it's a partial shutdown and it's only partially begun. but it's significant, number one, in terms of roughly 800,000 to $1 million u.s. federal employees who won't be paid and won't have work to do. .it's significant in terms of what they won't be able to do in terms of work for the american public. passports and visas and federal mortgages arranged, etcetera, etcetera. and it's intoticily important. both parties know that. that's why john boehner is keeping his lawmakers here tonight. he's still trying to figure out a way to force the senate controlled by democrats to enter into the kind of arrangement they do in ordinary times, on ordinary bills, to put together what they call here in washington a conference committee. but he wants that committee to negotiate a rollback in obama care. senate democrats still say no to that. >> well, a slowdown in emerging markets have prompted unilever to its expectations for third quarter sales growth. now they see underlying sales growth between 3% and 3.5%. the ceo says he expects the figure to improve in the fourth quarter. shares in the company are up just 3% this year. and take a look, down 4% in the session today. ouch. >>> now, earlier in an exclusive interview, steve asked for thoughts on china's growth outlook. have a listen. >> emerging markets are half of the global economy now and two-thirds of global growth. and, you know, there has been a slowdown. things seem to have leveled out a bit. but china still has the triple challenge, right? they have to somehow get out of the credit bubble without creating a credit crunch. and letting the air out of the balloon slowly if and after you've done that, you can count on the fingers with no hands, and, of course, then they have to switch their production towards sectors that have an economic future as opposed to the current excess capacity rules already. and then they have to get their whole body politics to move to the new domestic demand led growth model. >> well, still to come here on the show as president obama's worst fears are realized with the first u.s. government shutdown in 17 years, find out why our next guest thinks that today's news could have serious consequences for the u.s. economy. >>> hi, everybody. welcome back. you're still watching "worldwide exchange." i'm louisa bojesen. >> and i'm deidre wang morris. >> the u.s. government goes into shutdown for the first time in 17 years after congress fails to break a stalemate over a stopgap spending bill. >> so we like to resolve issues, but we will not go to conference with a gun to our head. >> but global markets shrug off the shutdown with european bourses edging higher after modest gains in asia. >> and this, of course with in the middle of uncertainty in rome sylvia berlusconi is facing dissent. >> and shinzo abe is unveiling a sales tax hike in april, but softening the blow with a fresh stimulus package. >>> hi, everybody. welcome back to the second hour of "worldwide exchange." as said, the u.s. government has started a partial shutdown for the first time in 17 years. as congress fails to break a stalemate over a stopgap spending bill. federal agencies, they've been directed to cutback, meaning that 800,000 workers, they face furlough, although critical services will remain open. on monday, the house republicans repeatedly passed measures linking the spending bills to delays in president obama's health care law which senate democrats have rejected. after one final attempt, the house adjourned just after 1:00 a.m. eastern time. >> we were hoping that they will take our offer and go to conference and let us resolve our differences. the house has voted to keep the government open. but we also want basic fairness for all americans under obama care. >> global business leaders have been reacting to the shutdown in the milken institute in london. tom joins us from there now. tom, good to see you. let me get your reaction to the partial government shutdown. how broadly do you think it will be felt? do you think it will be lasting? do you think they'll figure something out in the near term future? >> foifirst of all, thanks for having me on. clearly, you know, there's going to be a lot of speculation the next few weeks. on how this gets resolved. ultimately, you do resolve these things. the u.s. government isn't going to be shut down permanently. i think the difference this time is we're going to see this run up against the debt ceiling issue. i think that is more worrisome for most people at the at the end of the day, whether you predicted this or not is irrelevant. i think the markets were ready for it and you kind of saw that in the muted reaction. my hope is that they work through this ultimately and both sides come to some agreement ahead of the debt ceiling. >> it's interesting, someone from the milken institute earlier this morning was saying before the october the 17th date, there's no real reason why they should try to stop anything. looking further, into the fomc, it might be a buying opportunity to buy into the slight softness these days. >> yeah, i think definitely when you have times like this and you're investing in markets like credit markets and equities, if you see this exterior noise causing the markets to trade off, there's some longer term investors that will use that as an opportunity to enter. and those are investors like ourselves who are looking at the fundamentals of companies, for instance, and saying, you know, ultimately, political noise and political issues get resolved. does this company have value at the current price? so, you know, i think that's why the markets, you know, right now have not moved a lot. if they do trade up more like they did in the u.s., there will be opportunistic buying and in the credit markets, in particular. >> tom, you see the markets taking this in stride or maybe it was priced in. but we haven't seen a huge sell-off in the last few weeks leading up to this government shutdown. how does this bode going forward? what are they going to be able to come to a deal if they -- let's say republicans, they take a look at the markets and they say the markets aren't blaming us for this. there's no big sell-off. how is that going to bode for the battle over the debt ceiling ahead? and just the way politics is going to work and affect the markets going forward? >> well, i don't know that the republicans will necessarily say look at this in the context of the markets. i think the markets were prepared for this event. i think washington was prepared. for a long time now, there's been a line in the sand over obama care. i don't think that they should take that as a vote of confidence. you have to look at the polls, too. this is very unfavorable. the confidence in congress is very low right now. so, you know, while they may take a peek at the market, i think they're going to look at those polling numbers. and where the blame tends to reside the most. and right now, that seems to be, you know, more the issue that i think the republicans will look at in determining how hard to fight for this position. >> tom, you're a global investment management organization. you manage over $182 billion. what's your strategy these days? >> we're investing in global fixed income markets, real estate and fixed assets. a lot of our investors are long-term investors, institutional investors. we tend to look at foundational markets, commercial mortgage markets, real estate equity markets. and, really, buy value for the long-term. that is not to say in a given sell-off in, say, the european high yield bond market or the u.s. high yield bond market we aren't opportunistic. we are. but we're, in the en, buying where we believe there's value in the underlying assets over the long-term. you know, we like the story in the u.s. we like the story in europe in terms of corporates these days. there's a lot of strength to corporate balance sheets. you know, you have to worry about the risks in terms of bonds and things like leveraged loans. you mitigate that risk and we find that the balance sheets and earnings of companies we're investing in today relative to precrisis are attractive. >> tom, many thanks for that. thank you very much. now we're going to get to some flashes because, of course, the japanese prime minister abe is speaking. shinzo abe, he's speaking in japan about hesitate sales tax. there's been a lot of debate over this the last few months whether or not the japanese economy and abe has been strong enough to put the japanese economy on the right footing so consumers are able to expand this hike. he is speaking right now and saying there is no time to waste in seeking funds to rebuild the fiscal state. he says the fiscal -- they can be reached at the same time. they're raising the sales hike for april and cushioning with a $50 billion package in terms of corporate tax cuts and such to sort of ease the month of that sales hike. the dollar/yen, take a look. 98.11. >> and looking at how we're shaping up for a u.s. market open, we're a couple of hours away, but we're looking slightly positive at the moment. we're across the board, called a couple of points higher. the partial shutdowns we've seen in the past, the markets have handled the issues okay. if we see a click solution, it might do anything to unsettle the broader economic trends that otherwise has been on course for a slight stabilization. so we're looking at higher markets across the board being called in the u.s. by a couple of points to the upside. our european markets this morning, it's been a similar story here. we've been hanging on to slight gains, all except the ftse 100. the xet ra dax in germany off by just under $75%. cac 40 is higher by 0.75%. and the ftse mib is up 0.9%. bond markets, we've been seeing some safe haven buying into the u.s. treasury. just a little bit of ae versal on that. we're yielding somewhere in the region of 276%. i want to, again, draw your attention to the ten-year italian bond yielding 4.5%. many cries of, oh, we're heading higher on this yield heading into this week. but keep in mind, we're far away from the 7% plus thefls we were looking at a can you feel open months ago. in the currency markets, briefly, we've seen in general dollar weakness on the back of this partial shutdown. dee thanks very much for that, louisa. let's take a check on markets in asia. li sixuan filed this wrong from singapore. >> disappointing official china september pmi data in washington's political standoff both weighing on sentiment. on the other hand, asian markets were higher after yesterday's steep drop. in japan, the nikkei 225 finished marginally in the green higher by 0.2%. despite abe's sales tax hike to 8% next april. of course, there is going to be a $50 billion stimulus plan to cushion the tax hike's impact. lending support to exporter stocks is the dollar/yen trading above the 98 handle. for the topix ended just a tad lower. south korean shares gained a modest 1.0% even with the country's september exports seeing their biggest annual drop in seven months. consumer unflagz fell to a 14-month low. in south korea, a historic low of 2.5%, but resources weighed on the index, ending down by 0.2%. >>> and now for a look at japanese automakers. september domestic auto sales drove high