tom coburn and jeep hensarling. >>> we'll get the decisions with our roundtable. then, our powerhouse roundtable weighs in on that and all of the week's politics. tea party stalwart abandons. >> conservatives on the hill are counting on us. >>> and the supreme court court takes on gay marriage. we'll break it all down with george will, james carville and mary matalin. paul krugman of the "new york times" and abc's own matthew dowd . >>> hello, again, just over three weeks away from that fiscal cliff, we just come off a week of press conferences, symbolic votes in senate, but less than an hour of serious negotiating. what will it take to break the stalemate? we'll get into that this morning, with two big roundtables of elected officials and experts. let's begin with the lawmakers. senator tom coburn for the republicans and debbie stabenow for the democrats. and congressman hensarlingg. the president said that for there to be a big deal, tax rates on the wealthy are going to have to go up. if that's his bottom line, can there be a deal? >> again, as the speaker has

we're going to have jed hensarling here. over here with barney frank used to sit as a top democrat, instead we're going to have maxine waters. they expect to see maxine waters and jeb hensarling trying to find om some area of agreement that they can work on a project together to get the relationship started off right. >> eamon javers is here now. maxine waters and jed hensarling working together. we'll bring in manu raju. manu, we spoke to you the other day. you think we're going over the cliff if i recall correctly. eamon, what do you think? are we going over? >> it's increasingly likely that we're going over. senate majority leader harry reid thinks we are. there's two problems, one is is that procedurally and process wise we're running out of time practically to do something here depending on what comes out of this 3:00 meeting. it's the problem we've been facing for two years in washington, they don't agree on how to fix this thing. >> on very core principles. >> you're right. nobody wants to give up their long-held beli

otherwise, that goes to christmas yet to come is greece. >> chairman hensarling, thank you very much. jim, a reasonable proposal for the fiscal cliff? modest proposal. i've read things like that before. >> i'm talking about the -- look, did i mention once the tax increase? >> no. >> i'm going for quick spending cuts. because we just -- we agreed to give the rich people that deal two years ago, we added a trillion and then another trillion. i don't know why a republican ever agreed to that. i'm trying to figure out -- >> it wasn't -- >> who the heck -- >> wasn't because of the 2%. >> because it kept -- >> it kept the deal from happening. >> by given the -- added 2 trillion to the deficit. i hated that. try to find out how to cut that deficit now. not the future. >> we've got a lot more 20 come this morning. >> thanks, guys. crazy conversation. we'll see where it goes. comments, questions about anything you see on "squawk," tweet us @squawkcnbc. coming up, holiday central. the ceo of phillips v-van heuse. >> who? phillips-van heusen joining us on the set. he's dressed head to toe in cal

what about hensarling? >> it is the job of the president above all on this -- . >> the president has not lead on this, put the tax bills began in the house -- >> ryan offered a plan, the president offered nothing. >> she will be one of the top members of my national security team. >> john kerry says he will have no comment on the secretary of state process. he wants to be the next secretary of state. >> he probably will be the next secretary of state, and a fairly decent one. but this makes me kind of sad. >> this is a nice thing? riceon't know -- the susan thing? >> i don't know if she would have made a great secretary of state. some people say her elbows are too sharp. but i know her a little bit the benghazi thing she was hung out to dry on was the only thing the republicans had after the election to wave the red flag. i don't think it amounted to a hill of beans take it was no different from condoleezza rice, who had been involved in all kinds of things after 9/11 -- >> she could have survived benghazi

another thing that he's going to put on the table, congressman hensarli hensarling. he's not going to negotiate over the debt limit. two big bottom lines for the president. i have been around capitol hill for a long time. it's hard to see with those two big absolutes out there that you can get this done by december 31st, is there a fallback position right now for the republicans? >> i didn't know that the president can surprise me once again. in other words, we no longer need a speed bump on the highway to bankruptcy, i mean, let's look at greece, greece has been very adept at increasing their debt ceiling. now they have 25% unemployment. there are people who can't even finds jobs in cities are having to move out according to press reports to rural areas. that could be our future. as tom said, if you gave the president every job forming tax increase that he's asked for, it's about 3% of the spending. and the president himself has said that the drivers of our debt are medicare, medicaid and health care. nothing else comes close. >> congresswoman stabenow pointed out -

you hear from jeb hensarling. fannie and freddie and the fha have to be drawn back in some way. how do you do that? this provides at least some of the basic high points of where is it that the private capital is going to come from. if you have a pension fund, you put that money into the u.s. housing stock market. do you lend that to borrower? do you want to loan money to people at 4% to buy a house? the government may be doing that. the private markets say they will put the money somewhere else. kind of japanese product. the liquidity it moves pretty quickly. you'll start seeing the private capital come back in. that creates more risk for the money you put back into the market. that's a quick overshot. think about the 2006 volume. how do you bring some of that back? do we want $200 billion? $300 billion? >> i want to build on some of the things that others have said already. i am ellen seidman. a couple of additional points about why we should not settle should 10% less than 2001 level mortgage market. we do run the risk of facing future policy on a very strange last eight years

instead we're going to have jeb hensarling of texas in his place as chairman here on the podium. over here where barney frank used to sit, instead now we're going to have maxine waters. lobbyists i've talked to who follow this committee very carefully say they expect to see maxine waters and jeb hensarling try to find some area of agreement very early on in the new year. some project they can work on together to get the relationship started off right. >> so maybe i'm a little bit overly optimistic about the new year but i do think people will learn to let along a little bit in washington next year. maybe once all the dust is settled from this fiscal cliff apocalypse that we're dealing with right now. >> that requires a lot of things to happen. means we've got to get past it, though. >> right. if we ever do. we could do the bungee jump thing where we go into january and then we're dealing with debt ceiling fight that goes longer than that potentially. this thing could stretch on for a long time. >> eamon, if jeb hensarling and maxine waters can get together on something, we can ge

it is interesting, i talked to jeb hensarling who now oversees the fed at financial services committee at the house he was somewhat outraged by this look we have the fed now engaged not just in monetary policy and fiscal policy and that is not in their charter. melissa: right. nariman, i will start do you think there is bill to pay down the road? do you think we'll come back here later, here is what it is couldsing us, was it worth it? what will the bill be? >> that is a good point and it all boys down to the exit strategy about and the worry is, now, talked about exit sttegy when was it the summer of 2011 but then the its balance sheet was much smaller than it will end up being. melissa: right. >> the question now is, what is the exit strategy with this much bigger balance sheet? that very well could be the bill to pay. how quickly will they unwind it? how much damage could that do to the economy? that is open to question. i think that is source of some concern. melissa: if they say there pegging exit on unemployment rate it implies they're having an impact on the jobs market i'm not

hensarling: i thank the gentlelady for yielding to me. mr. speaker, an hour ago, i had no idea that i would be on the house floor to witness the farewell speeches of two giants who have served in this institution. and in many ways, mr. speaker, i approach my comments tonight with trepidation because my voice is most inadequate and unprepared for this moment. the term happy warrior was used -- the gentleman from arizona, mr. flake, i have never known that gentleman not to have a smile on his face. mr. speaker, if there was one individual who summed up the phrase that one man in the right makes the majority, it's the gentleman from arizona, jeff flake. and mr. speaker, i have no doubt whatsoever that the other body will never be the same. when the gentleman from arizona steps in to that other chamber. and because of his leadership, many come here and serve, they speak with eloquence, they represent their values, they represent their constituents, but, mr. speaker, not all that many leave this institution and can look themselves in the mirror an

hensarling was the co-chair of the super committee. blame yourself and don't listen it to those folks and don't make a deal. >> a lot are saying let's go over the fiscal cliff, as we a win-win situation, both win, republicans and democrats. >> that's an interesting definition of win. these are the voices that said don't make a deal with bowl bowles-simps bowles-simpson, with the grand bargain, with the super committee. they got us into this mess in the first place. >> the cliff was denied to be so horrible we would never ever, ever risk going over it. and now some of those people, it's a slope. it's not a slope. john, cnn contributor, thanks. nice to see you. >> nice to have you here. >> a hollywood film so close to reality it's raising eyebrows in washington. "zero dark thirty" is about the capture of osama bin laden and some on capitol hill are wondering how much access the filmmakers had to classified information. >>> welcome back to "early start." the film "zero dark thirty" about the hunt for osama bin laden will be a major oscar

you've endorsed three different candidates, i believe, for speaker, jim jordan, jeb hensarling, and tom price. mr. price says in a statement he's not running, but can you tell our audience why are you so sick and tired of speaker boehner? >> well, there's really two big reasons and they happened in the last two weeks that really have been the nail in the coffin. one is the tax hikes. he's proposed basically to raise taxes on charities and job creators and he thinks that that's where his starting point is with president obama. >> hold on a second. let's be factual. i think what he said was that he was open to $800 billion in revenues but he did not specify the deductions. >> the only way you could get $800 billion in deductions is to go after the charitable deduction and the mortgage deduction. you're going to go after charities. salvation army said yesterday that they have had the biggest crowds coming in that they've ever seen. we're going to go after charities right now? i don't think that's the best place to be. i think what we need to start at is a place where we believe, we think t

the chair like to the house financial services committee, jeb hensarling and congressional progress of caucus co-chair. at 2:00 p.m. is fox news sunday with chris wallace and chuck schumer. and republican senator bob corker. also on the program is the israeli a bastard to the united states. cnn's state of the union follows and welcomes the managing director of the international monetary fund, christine lagarde. at 4:00 p.m., here "face the nation"where they talked with alan simpson and erskine bowles. also on the program, an interview with cory booker. the sunday network tv shows are repairing here on c-span at noon -- here on cspan radio. listen to them all on cspan radio on 90.1 fm in the washington, d.c. area and nationwide on siriusxm radio. [video clip] >> the staff had to make the plan for the invasion of japan without considering the atomic bomb. it was estimated that to cocker the land would cost 700,000 man and 500,000 of them would be maimed for life. >> i choose to honor both the sacrifice of american servicemen fighting their way through the pacific and a little girl like s

hensarling of having said something that wasn't accurate. i have had a conversation with him and i believe i have said it unfairly to him. i'm critical of what happened and i don't want to get into it. but i inaccurately impugned the actions to the gentleman, mr. hensarling and i apologize to him of accusing him of something that he did not do. the speaker pro tempore: jabbed -- the gentleman yields back the balance of his time. for what purpose does the gentleman from florida rise? without objection. the gentleman is recognized for one minute. >> like all of us in congress, i believe in the greatness of the american people and our principals and rights that have made america a beacon of hope and freedom. many yearn for basic human liberties. the people of western sa harrah have been trapped in oppressive conditions under the puppet regime. the front has instituted masked kidnappings of people from their homes into western algeria. they have been in prison in camps for 35 years. the front colbrates with the likes of cuba who ration food in t

. >> hensarling was taking about a role for jpmorgan in the economy as well as small, medium, community banks. that as the house takes on new leadership starting with the next congress in january. back to you. melissa: rich edson, thanks so much. urban outfitters is drumming up negative publicity with its profanity-laced stocking-stuffers. including $18 let something reminisce. lori: you can figure it out. what is that on the far side of the screen though? is that mistletoe? melissa: it was all something awesome photo album. you can figure it out. despite the criticism the stock is soaring today on upbeat fourth quarter sales outlook. so we want to know how important is morality when it comes to investing? >> say they weren't promoting fracking okay? lori: that was good, charles. >> it is interesting, urban outfitters, two major headlines. one on wall street, sales are ahead of schedule and blow out this quarter. one on main street is reflected in e-mail i got from an investor. for many years i purchased urban outfitter gift cards as presents for my teens. due to the crass nature of you

howard kurtz the host of "cnn's reliable sources" lauren ashburn, republican from texas, congressman jeb hensarling with us, randy weingarten, president of the american federation of teachers. all guests this morning. wednesday, december 5th, and "starting point" begins right now. >>> our "starting point" this morning, president obama putting his foot down. he says no tax hikes for the wealthy, no deal. america hits that fiscal cliff in 27 days and that means tax hikes and deep spending cuts if the democrats and the republicans can't come together in some kind of a deal and with just ten days remaining until congress is scheduled to go home for the holidays, the clock ticking. here's what he told bloomberg news. listen. >> we're going to have to see the rates on the top 2% go up and we're not going to be able it to get a deal without it. >> we start this morning with white house correspondent dan lothian, he's in washington, d.c. okay. so who's got the ball in their court at this point then, dan? >> well, you know, i think the house gop, they have presented their counteroffer which white house spok

let's ask texas congressman jeb hensarling who joins me live this morning. good morning to you. >> good morning. how are you? >> gretchen: doing just fine, thank you so much. it's interesting because it appears from john boehner that the president isn't budging on the spending cuts. yet i want to point you in the direction of a new fox news poll that came out this morning that said that if there are tax increases, should the president also budge on spending cuts? you want to know how many people said yes? 89%. your thoughts. >> well, i'm gratified by that because the truth is america is facing a debt crisis. under president obama, we've accumulated more debt in four years than in the previous 200. we're borrowing roughly 40 cents on the dollar, much of it from the chinese. sending the bill to our children and grandchildren. the president is out there saying, if all we will do is tax, quote, unquote, rich people a little more, we'll solve the problem. well, here are the two problems with his logic. number one, half of this income that he wants to tax is small

. >> thank you, chairman garrett, ranking member waters, chairman bachus, incoming chair hensarling, for your time and the members of the subcommittee. i, too, want to thank all the members that this may be my last time testifying before you, unless you come back to this body, which often happens. and to robert cook, because i think we've all worked so well together on an enormous challenge that was created out of the 2008 crisis. how do we best bring commonsense rules to the road to the best protect the public. two and half years after congress and the president came together, to ensure that swaps markets reform works for the american public, we are here before you, and i just want to address the chairman to say that we have deep respect for this committee and congress. we will ensure and work best to give testimony, and early where we can, which is always are trying to get it full and address all the questions that we think might come up from kevin. some maybe balancing that a little bit to that issue. the crisis as we all know that 8 million people out of work, partly due to the u

chairman of the ways and means committee and paul ryan, chairman of the budget committee, and jeff hensarling are still debating. there was not a and of support within the caucus. the amount of revenue is far in excess as to what can -- compared to what the speaker is offering. bowels-simpson was not acceptable than and it will not be acceptable now guest: it got 60% of the votes. it did not get the supermajority but it got a lot of republican and democratic support. the political construct was successful. it is not tax increases that are the key. it is in exchange for what. if you take that on, you have a different location -- equations. guest: how can you miss alan simpson? [video clip] ♪ >> stop getting on youtube and watching gangnam style and go sign people up on this baby. take part or get taken apart. or these folks will take apart the treasury before you get there. ♪ ♪ host: that has gone virus. -- viral. he refers to the old coots will spend the money. those are his words. guest: i really cannot stand that video. he just raised the stakes enormously. he is right, though. one of

you hear from jeb hensarling. fannie and freddie and the fha have to be drawn back in some way. how do you do that? this provides at least some of the basic high points of where is it that the private capital is going to come from. if you have a pension fund, you put that money into the u.s. housing stock market. do you lend that to borrower? do you want to loan money to uy a house?% to by hous the government may be doing that. the private markets say they will put the money somewhere else. kind of japanese product. the liquidity it moves pretty quickly. you'll start seeing the private capital come back ain. that creates more risk for the money you put back into the market. that's a quick overshot. volume.out the 2006 how do you bring some of that back? do we want $200 billion? $300 billion? >> i want to build on some of the things that others have said already. i am ellen seidman. a couple of additional points about why we should not settle should 10% less than 2001 level mortgage market. we do run the risk of facing future policy on a very strange last eight years and we shoul

jeb hensarling has a bill that would prevent a government shutdown in any event of a budget standoff. we will stay focused on what the american people want, and what they want is less spending. "national journal," do you anticipate a resolution of the bush tax cut issue or a lengthy congressional resolution in the lame duck session or are you girarding your members to deal with both issues as soon as the 111th congress convenes? minority leader boehner, quote, hell, i don't think we need to wait until after the election. let's come back right now and stop this tax hike and cut spending. that's what we put in the pledge. that what we want to do right now, unquote. "national journal," reauthorization of the highway bill is due in the next congress. will you as the g.o.p. leadership support any increase in the federal gasoline tax to finance additional road, bridge or highway construction? minority leader boehner, i've never supported a tax increase of any kind. "national journal," will you extend into the 111th congress, the current house moratorium on earmarks, related to that, if you