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Tennessee, texas, pennsylvania, virginia and d.c. >> why those states? what's the problem? >> that's where they are based. texas, amr. pennsylvania is for u.s. airways. these are the places where they have heavy concentration. there's a conference call under way at the moment with the doj. basically, they're saying in their view if this deal goes ahead it will be anticompetitive in those key markets. >> one line, not going to happen by the end of the month. >> not necessarily. t this is so far down the road that the negotiation strategy is intense. >> if anyone knows intense, it's you. >> comi...

Which means, going and squeezing the entitlements of social security and medicare much, much harder than anybody is comfortable with. jenna: so this is a lesser of two evils essentially, is that the way you think about it? only have a minute, austan? >> simpson-bowles gave you targeted amount, said two it two or three to one cuts to revenues. and that is similar to the ratios the president is proposing here. it is similar to some of the ratios you've seen from some republicans but if this attitude prevails tha can't be any revenue and we're not going to count past spending cuts as part of the ...

They were surprised that they acted so quickly without consultation. the u.s. really is dependent on the algerians right now in terms of what the negotiation strategy will be. >> gregg: our longstanding policy we don't negotiate with terrorists u don't envision handing over the blind sheik behind the 1993 world trade center bombing, do you? >> absolutely not. nor do i think the algerians, they have a quick harsh response that killed many of the terrorists and many of the hostages as well, i think is an indication they don't plan to negotiate in any way either. >> gregg: all of surrogates opera...

Their special interests and i think it is important to note social security doesn't just benefit retired people. it benefits many children who would be living in poverty. 3.1 million children who received direct benefits from the social security system. so i don't see this as a generational warfare standpoint but more about negotiation strategy. in the same way that the tea party staked out a position, no compromise, and back in june, the aarp actually was accused of selling out seniors because they said, okay, let's talk. let's compromise. they're just saying from a negotiation standing point...

Incredibly cynical about the democrats' negotiation strategy, i still can't believe how much they gave away. so i think you hit it on the head. but here's the trick, right, and here's the problem for president obama, to be fair to him. he's got to look reasonable. most of the country wants compromise, so he's2going for compromise. on the other hand, if you do too much compromise, as rove pointed out, you look weak. so how does he thread that needle? what's the right answer? >> i think the right answer was to catch on to what the republicans were doing early on. when they did those early exten...