Willing to do it now, theyll be willing to do it later. Well have much more on johns interview in a moment. Later that evening president obama actually met with congressional leaders at the white house. But they are still no closer to a solution. The president reiterated one more time tonight that he will not negotiate. Weve got divided government. Democrats control the white house and the senate. Republicans control the house. We sent four different proposals over to our democrat colleagues in the senate. They rejected all of them. Weve asked them in a conference to sit down and try to resolve our differences, they dont want to they will not negotiate. I thought that they were concerned about the longterm Fiscal Affairs of this country, and we said, we are too, lets talk about it. My friend, john boehner, i repeat, cannot take yes or an answer. President obama is expected to speak on the shutdown today at 10 30 a. M. Eastern time and cnbc will be taking those comments live. Harry reid on both the wall street journal and the New York Times talks about hes sort of the front man now and the front man. Kind of the front man dictating some policy. He thinks back the last time we went through this over the holidays he was mad when i guess the president set something up and negotiated he was negotiating directly. He was mad that that happened. Although the president is the head of the Democratic Party and john boehner is the head of the Republican Party. Hes their point man, harry reid, according hes the guy that relishes this and has gotten even more aggressive and like yesterday at the 4 30 meeting said youre going in to negotiate or talk to him. He says this isnt my meeting. I was invited to attend. The market yesterday i think the s p, i think the futures are the fair value is up, because i think, number one, they were waiting for John Harwoods interview to see what he said. See fair value, up, what, 31 so i think down 73 below because the president made it pretty clear that this time is different. It sounded almost like he was trying to rattle at the close in at the close, roo it. It was up and i think they knew they knew there was the meeting coming. And john would talk and the president was talking to a Business Network about the economy, but for those that were critical yesterday that may be some politicians want the market to force the hand of people by like it did during, you know, during the financial crisis, the president said, yeah, you know the market should be going down. You shouldnt be worried. Maybe theres some truth to that. United technology, the dow component may need to trim its workforce if the Government Shutdown drags on. People now think october 17th. I dont think anybody who thought this would be over quickly i think will be deeply disappointed. They want to merge i saw mccome on kudlow last night and now changing saying we tried it with we think obama care is not a just trying to get rid of the law, we think its part of the budget problem and on october 17th when we have to do the debt ceiling and combine the two negotiations and were going to try to get some tax reform and entitlement issues on the table to negotiate about but well put it all together. Boehner brought that up yesterday and according to politico this morning he was basically laughed at by the democrats in the room like, no, were not negotiating on any of this. Not opening any talks until you fully fund the government and raise the debt ceiling so the idea the silver lining, we spoked with Erskine Bowles yesterday and a grand bargain that comes up the president with harwood said im willing to talk about these things but not until you do the other stuff and in then theyve given up their leverage. Right, in the past, many, many times debt ceiling increases have been accompanied by different budget agreements or negotiations, so well see whether they i think the whole idea of obama care and the Affordable Health care ago, they wont make any leverage with that. But changing a little bit. Saying, way, we tried that, we dont like it. Figure out a day they kept saying give people the same opportunity that their boss got when the corporate mandate was put off for a year. We thought it would be a good idea to delay let the normal, you know, rank and file delay it for a year but if thats not something you want to do lets talk about some of the other issues. Although the president did bring up the idea that if they want to finish what they started in terms of revenue increases hed be happy to open those talks. He didnt mention entitlements. Other people say if you can get the lock in the sequester youve got and the budget theyre willing to sign that keeps the sequester, you should take that deal and run. I dont know. You saw that United Technologies might furlough some workers. It would be 2,000 people i think beginning on monday. It could rise to 5,000 workers if it continues for a month. In the meantime, why dont we look at the markets. As joe mentioned futures are under pressure this morning after any hope of some sort of quick settlement or some sort of talks that would start in earnest kind of fell by the wayside. Dow futures down by 7 2 points. S p futures off by 9 1 2 points. Oil prices this morning at least right now are down by another 33 cents but 103. 77 is where wti stands, tenyear note is yielding 2. 647 . Its the shorter term treasury notes where youve seen yields push up, particularly those that are going to expire between now or right around october 17th. Taking a look at the dollar this morning, dollar is under some pressure when its up against the euro, 1. 3606 but stronger against the yen, 97. 71 and gold prices this important at least right now are indicated down by 11. 1, 315 an ounce. Gleeful antagonism is what the journal calls the they cut a deal with biden when Vice President biden came in at the 11th hour with mcconnell and that made him mad and then the people were wondering if lew would play a larger role. He was supposed to be the guy who had relations on congress and would be able to work behind the scenes. Hasnt happened yet and wonder if thats because the president has directed him not to. But its because the times showdown scrappy reid. Scrappy reid but some of the tack continues are kind of interesting. Leaking emails between the staff chief of staffs which is kind of unusual if you ever have hope on working behind the scenes together the idea that you are releasing emails between the chief of staff, thats kind of unprecedented. John harwood. Weve already given you credit. We have more highlights. The futures, when they closed yesterday they trade up and thought you could broker some type of arrangement you know, representing a Business Network or we thought maybe when he met with, you know, we heard about that meeting but its our opens have been dashed is its october 17th now is what were hurtling towards, right . Yes, but i dont think im not as bearish as you and becky are on the basis of where this is going. I think if theyre steering this conversation back to a budget negotiation, that is a positive development. Yeah, but its not being received on the democratic side at this point, is it . Oh, yeah, its being received on the democratic side, absolutely. Politico said the democrats in the room laughed at boehner when he brought that up. No, look, the if we get to a budget talk, then thats where the two sides can Work Together. Now, the president did draw a hard line saying you got to reopen the government and raise the debt limit and have the budget negotiation. But thats something that where i think republicans will get to that point. Remember get to that point where they say, okay, well give you everything you want and then negotiate. Its not everything you want. Democrats arent asking for anything right now. All theyre asking for is to open up the government. The republicans see that as their key leverage point. Yes, i know, but, look, heres the thing to understand. What republicans have been doing up till now is disconnected from the budget, it is also disconnected from any kind of reasonable demand. It is not reasonable to say i mean, the tactic that theyve been using so far is not very far from saying, mr. President , we will open the government and raise the debt limit if you resign immediately. John and then they then a week later previous debt ceilings there have been negotiations. Your characterization is right from the democratic side of things. Sometimes it makes me wonder how you can do that. These guys are just sociopaths or something. There is another side to this where at this moment they are. Thats what i mean. You know, thats not how i see it and, you know but the thing is, joe i get up and do the same things you do. Youre wrong. Youre wrong. And previous debt ceiling in previous debt ceiling increases havent those in the past been used to extract some type of budget agreements . Reporter yes. Thats all theyre saying now. Reporter no, no. Take away obama care because theyve started shifting away from obama care . Us try to maybe bring up entitlements or something. Reporter obama will have that conversation but not till after. Reporter joe, no, no hold on. Heres the thing. Look, you got to think about what is reasonable here. Weve had months in which republicans have not been willing to go to conference on the budget. They demanded the senate pass the budget. They did. Then they said lets go to conference with the house. The house didnt want to do that. Remember, the house kind of why didnt the house want to do it . Reporter if you have a protracted negotiation in the conference and goes on for awhile, there is the possibility that the leadership loses control of the floor. If the Conference Goes on for a certain period of time without resolution, then anything can be offered on the floor. Its not in control of the leadership and theres the Republican Leadership didnt want to be in a situation where budget proposals could be put on the floor where they could not control the outcome. Thats why they didnt want a conference. So republicans lost interest in a budget conference. They went way off over to the side on obama care, okay, and now theyre coming back to the budget. That is a good thing. But the government is already shut down and so it is, yes, have any negotiated over debt limits in the past . Absolutely. But theyve negotiated on things rationally related to the debt limit. Thats first and secondly, they havent in the process of those negotiations said with a real intent as if they mean it that they were going to bust the debt ceiling. Theres an intensity about this demand is that different. In 2006 when barack obama was a senator he voted against raising the debt ceiling. Reporter absolutely, yes, that is true, and that was a political vote and hes been called out for it and it was basically in our recent history, debt limit has been a vote where anybody in who is not in the president s party completely hypocritically for political reasons comes out and says, i think this is so irresponsible, our fiscal policy is messed up. Im going to vote against it. But the difference is, there was never any real doubt over whether it was going to get raised. I think its stupid this vote exists to begin with. I think it should be tied to the budget process and its ridiculous it exists outside of it and not the first time theyve held up this process. Reporter right, but the difference is the real we got to leave. Reporter its the difference between slow walking and dragging your feet and actually saying, no, no, no, im going to pull this trigger many im not going to raise it. John, you know, started watching, you know i stayed up and watched jon stewart because weve been on a few time. Reporter were we on again . No, we werent but we our head shouldnt get too big because the people over at fox news, all of them get to be on every night. Theyre on they are on a lot but did have one segment. It was funny, had a guy and they were listening to people on both sides of the Affordable Care act debate and the guy was talking to the side that they were pointing out as being wrong, the republicans ex obviously, and the interviewer said, you know, normally i sit here and try and nod but with what youre saying, i just let me try again i just cant nod while youre saying that. When the president ill tell you where im going with this. When the president last night said to you, john, i have bent over backwards to work with republicans, you were able to nod. How . I mean, did you have the same feeling as the jon stewart interview that, i mean, hes really expecting me to swallow a load of did you have the same feeling at that point . Do you feel like the president has bent over backwards to work with republicans in the last four or five years . Reporter i think hes tried i dont know about bent over backwards. Whats leaned . Could you see with his posture he was like one degree off 90 degrees . Reporter let me put it this way, he came into office with big democratic majorities. He expected that he was going to have republicans be willing to work with him and he made some gestures on stimulus, on health care, on Financial Regulation toward trying to make that happen. Once they came to the conclusion they werent going to get chuck grassley, olympia snowe, some of those republican, you know, moderates or governing republicans to work with him, they jammed things through on democratic only votes so it felt to republicans as if he wasnt trying, but i think i think in certain ways he was trying, one in the negotiating process and secondly in the structure of his program. Remember, the basic Health Care Program follows the outlines of romney care and of the republican alternative to hillary care in the early 1990s but politics moves and the Republican Party has moved to the right and some of this is try tribal between the two parties anything a republican president proposes or a democratic president proposes the members of congress or the other party will move away from it. But i think he was had his breath taken away a little bit by you put out mitt romneys Health Care Plan and describe it as the worst thing ever but ultimately he came to peace with that and decided to fight them and thats why republicans think like, what are you talking about bent over backwards . Youre trying to knock our blocks off. Yeah. So it seems a lot i dont know. I think if you maybe it is different but a lot of times you figure if you knew the game and through theres all this going on that youd Say Something in public then behind closed doors youd take roll your sleeves up and do something. Reporter taken republican senators out to dinner and trying to get something going. I thought at the correspondents dinner, he said people have suggested i have a drink with mitch mcconnell. Said, really . Really . Why dont you have a drink with mitch mcconnell. I dont think that kind of stuff reporter ive been trying to do that, by the what. With mitch mcconnell. Reporter yes, i have. One final point, joe, on entitlements, republicans have not been pushing entitlement reforms. Thats true, the conversation is completely fallen off what about tax reform . Reporter yes. It hasnt been a serious attempt on either side. Reporter yes, but basically republicans as the deficit has come down and as republicans have decided that these discretionary cuts are too high for them too, thats why they couldnt pass their appropriation bills this summer and pulled them down because republicans didnt want to vote for spending that low, the entitlement issue faded away. You know, yes, they passed the ryan budget but they havent talking about that. The president actually in his budget has put more entitlement reform on the table than republicans have. Thats why i think it is constructive. If they get back to that, Everybody Knows we do need entitlement reform and entitlement savings and if they can engage that conversation, the president , i think, will have a bargain with them and he left the door open, i thought, not in a blatantly obvious way but he was pretty soft in the demand for additional revenue. This is one place you foe, he took tax rates off the table. That is something that republicans can embrace and when i asked him would you accept any deal without additional revenue, period, loopholes, he said i think we need to close some loopholes but he wasnt firm about it. And didnt say which loopholes either. Thats a potential agreement. Excellent job yesterday. Had all of us riveted. We well talk with you in the next hour a little more about it. Right now to andrew. He is in chicago this morning. And he has some big guests coming up. Andrew, why dont you tell us about it. Hey, becky, if you have to think about a crisis and someone who knows how to deal with one potentially who could bring both sides together i think of hank paulson, the former treasury secretary will join us at 7 30. Five years after the approval of t. A. R. P. And happened five years ago today. He got down on one knee at one point to get miss pelosi to help him out so hell be on to talk mr. The debt ceiling, the Government Shutdown and the financial crisis and what it means five years later and 00, warren buffet and somebody behind t. A. R. P. As well who has probably views on whats going on in washington today and maybe he can help influence some of this discussion, as well. Hes going to join us starting at 8 00 avm so a big show here from chicago at the university of chicago. This is not a fake backdrop. This is the real thing so well have all this and bring you that throughout the program. Andrew, is that the Chicago River behind you . That is beautiful. This is the Chicago River right behind us. Its the sun is going to come up. Its a little misty right now but it looks pretty nice around here. We will bring you hank and warren on a crazy day. Just listening to that harwood interview. Are you at Milton Friedmans university or austan goolsbees university of chicago . Do you know which wing youre in . Reporter i think the conversation im in the middle. Im in the middle. But that conversation is going to as late because youll have hank and warren who actually probably come from a little bit of both schools so its going to be an interesting discussion. So as usual, youre going to occupy the center. Reporter thats what i like to