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Hampshire and also out of new york. don't go anywhere tuesday night. we will have it for you. the pentagon facing steep budget cuts. at this hour president obama and defense secretary leon panetta holding a news conference announcing big changes. they are expected to affect how america takes on enemies overseas but have an impact on service members here at home. this will be a big story and an important one. jennifer given at the pentagon, who is the new strategy all about, jennifer. >> reporter: the pentagon had what was known as a win-win strategy. essentially they planned as if they had to ...

The pentagon facing steep budget cuts. at this hour president obama and defense secretary leon panetta holding a news conference announcing big changes. they are expected to affect how america takes on enemies overseas but have an impact on service members here at home. this will be a big story and an important one. jennifer given at the pentagon, who is the new strategy all about, jennifer. >> reporter: the pentagon had what was known as a win-win strategy. essentially they planned as if they had to fight two ground wars at once. during the reagan era it was two and a half ground wars all at ...

President obama's words. the dnc's latest hit takes the fight to the heart of romney country, new hampshire. let's watch. >> in a new ad, mitt romney uses barack obama's own words against him. >> if we keep talking about the economy, we're going to lose. >> reporter: but those 11 words spoken in londonderry in campaign 2008 have now created a firestorm of controversy. here's why. >> senator mccain's campaign actually said, and i quote, if we keep talking about the economy, we're going to lose. >> bad taste in my mouth, you know. >> i feel like it's commercial fraud. >> it's a very poor practic...

>> first word that comes to mind is fraud. >> wow, this smells a lot like a win-win strategy for obama, knock romney out of the race right now and get a weaker opponent or soften him up for the general election. in other words, beat him now or beat him later? how can they lose? joe williams is a white house correspondent for politico and ron reagan is an author and political commentator. joe, it seems to me that they've maybe lucked out here. they're going to have a tough campaign ahead, but here they are, going after mitt romney with the idea, maybe we can help weaken him so newt can overtake...

Is cain still able? yes, this might be the end for herman cain. national review online broke the store that cain told a campaign conference call that he again denies unequivocally the claim by a woman that they carried on a long-term affair, but cain also said that he was re-assessing his campaign. when candidates say they're re-assessing, it usually translates to, i'm out. and that's our top story tonight. if cain does drop out, and it looks good he will, who stands to pick up his support? it could be the current gop poster boy, newt gingrich. but with so many republicans saying anyone but mi...