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And some straight up porn, including bestiality porn including his own appreciative comments about what he liked about it. this was the republican party's candidate for governor in new york state. in 2010. not like back in your great grandpa's day something this crazy happen. but last year the republican party ran this guy as their nominee for governor of a large state. and he lost very badly. you would think the republican party would want to make the memory go away. but no. today in the special election in upstate new york to fill christopher lee's house seat, there was carl paladino brought...

Look, he has the problem that he's very well-known in the business sense. in the media sense. and it's going to be hard to get people off of that perception of him. and then on top of that, as a candidate, as a policy guy, he has real weaknesses. because he hasn't held office before, hasn't campaigned before, that could be a strength in some people's eyes. but at the same time, once you get vetted by the public, personal media over the last couple of years. and to their benefit.

>> frankly people have spent a whole lifetime planning to operate under a certain system and they ought to have that opportunity. >> so is there somebody today that's 55 years old that's looking forward to medicare? i bet there's a lot of people -- >> at 55 they'll be fine. >> 54 1/2. they're looking forward to medicare. they're going to get a check that says go out and try to find an insurance company when you're 75 years old. >> what's not going to work is what we'd have now. >> fair enough. t i'd like to see the democrats propose something. >> here's senior adviser david plouffe, who's a po...

Derivatives, and that is for these massive, literally hundreds of trillions of dollars of dark pools of derivatives, they've got to be brought out into the open. they've got to be put under sensible regulatory oversight that prevents them from threatening to blow up the entire financial system the way they did with aig. so, you know, we can work through the details to achieve whatever balance senator dodd is describing, but we're not going to compromise. if the republicans are trying to get loopholes written back into the law that say we don't need to bring these derivatives out into the open,...

Era and he's famous for that. is this a real turn for him in terms of the way that his economic mind works? >> that's a very good question. i'm not quite sure how to answer it. except to say, that he is the senior financial adviser to the president, he perceives the need to narrow that decifit gap, the budget decifit. martha: right. >> therefore, you want to bring in revenue. he's the expert at how you do that. he's a nuts and bolts guy. not a policy guy, not a political guy. he's saying you want to bring in revenue, here's how do you it. martha: a fast way that is, you know -- sprinkeled all ...