tv Special Report With Bret Baier FOX News November 2, 2011 1:00am-2:00am PDT
cameras. i am going to find you. we found him. it is jack. >> goodbye, everybody. closed captioning services, inc >> bret: political and economic turmoil in europe sends markets reeling in the u.s. some of the presidentm candidate zero in on fertile field of iowa. one of the front runners herman cain joins us live for our center seat segment. live from the studio in washington. this is "special report." good evening. i'm bret baier. stock markets around the world are in turmoil following dissension in the greek government that could jeopardize the european plan reached last week to address that country's crippling debt. not a good day on wall street today. dow lost 297 points. the s&p 500 closed down 35. the nasdaq dropped 77. peter barnes looks at what is
at stake in europe and at home. >> reporter: investors want to know, deal or no deal? with greece. late monday, the greek prime minister shocked financial markets by announcing greeks will vote in a referendum by january. to approve or reject the latest big bail-out from the european union. $180 billion. the announcement came less than a week after greece and the e.u. announced a new plan to keep greece from going bankrupt. it did not include a referendum. the vote tees up a possible rejection of the bail-out. increasing the risk of a messy disorderly default of greek debt. financial contagion that could slam the rest of europe and the u.s. >> i think a disorderly default could be dangerous for the global markets. it's a major shock last night. i think a great lesson we have seen, the european debt crisis it's not over until the fat lady sings. >> the fears hammered the stock markets around the
world. they dropped more than 5% in france and germany on tuesday. in the u.s., the dow jones/industrials are down 500 points in two days. the prime minister declaration came as greeks have again taken to the streets. because last week's agreement calls for even stronger us a centerty measures. even tougher budget cuts and bigger tax increases. the announcement set off a scramble of meetings and tough statements among e.u. officials. emergency meeting of the greek cabinet. the obama administration which is counting on stronger economic growth to help the president's re-election prospect talked, too. >> the europeans rather need to implement decisions they made last week. it remains the case that the europeans have the capacity to deal with the crisis. they need to implement important decisions they made last week to provide a
conclusive resolution to it. >> the greek prime minister faces a confidence vote. the crisis is expected to be the top agenda item of the summit of the g-20 countries that the president will attend in san francisco later this week. bret? >> bret: tense moments. tonight there are questions about two other energy firms that receive federal dollars from the obama administration. what can you tell us about that? >> politico.com is reporting that advanced battery manufacturer that was awarded $18 million in stimulus money, is now in trouble. they pulled the firm for failing to file the recent financial report. next era energy, profitable
energy firm led by member of the president's jobs council has a stake in project with $1 billion loan guarantees. that's raising conflict of interest concerns as the council is pushing for more government backed investment in renewable energy. the energy department says they play no role in evaluating loan applicant. >> bret: day two of herman cain's public defense of private sexual harassn't allegation from 15 years ago. kept him in washington today. he will join us in the center seat segment shortly. that means he was not at a big event in iowa. rick perry was but had to answer questions about his behavior. carl cameron. >> reporter: the general election a year from now and iowa lead-off caucus two months from today, issue was jobs at candidate forum hosted by the national association of manufacturers in iowa. >> washington corporate
lobbyists are going to hate me as the president of the united states. i'm going to take a wrecking ball to that corporate tax code. frankly, the personal tax code as well. >> reporter: texas governor rick perry is trying to make his move in iowa. he started the tv ad blitz this week and has two positive ads up as record of agenda and extented the current swing for friday. a clear sign he thinks he can catch mitt romney and herman cain in a dead heat at the top of the latest iowa polls and both skipped the jobs forum. cain stayed in washington for another round of tv interviews aimed at ending the fire storm over what he says were false sexual harassment allegations against him in the '90s. cain aides call the story liberal smear causing outpouring of support. the cain campaign raked in record of $290,000 of online donation yesterday. cain's chief of staff called the controversy a deliberate left wing attempt to distract the candidates. >> if we have to spend every hour, every day responding to
the ridiculous accusations, it will take us off our message. >> reporter: perry cautiously shrugged off questions about the cain controversy. >> a good rule of thumb until things go past, allegations to fact. i just try to leave them alone. >> reporter: perry faces questions of his own about a new hampshire speech friday where he was animated and joked and gestureed and some say he slurred. >> we're in to the slogans man. live free or die, victory or death. bring it. that plan i just shared with you doesn't force the granite state to expand the tax footprint. if you know what i mean. >> perry critics speculated wildly that the governor was buzzed on drink or painkillers prescribed after recent back surgery. perry today said it was a good crowd that night and gave himself high marks. i felt good, i felt great. i think the message got across very well. it was a good speech. >> reporter: the new hampshire and the national journalists in the room gave
perry's speech strong reviews as well. aides say questions about whether perry was sober didn't start coming in until sunday and monday from people who weren't there in the first place. the campaign says it will not dignify such questions with an answer. though some wonder if he was not under the influence. why not just say so. bret? >> bret: carl, there is a all right out a few minute ago by the "washington post" that one of the women who accused herman cain of sexual harassment would like the national restaurant association and cain to lift her gag order. what do we know about this? >> reporter: cain is aware of the request but not which woman making it. and the request specifically to waive the confidentiality agreement. it's not up to the georgia businessman. the restaurant association itself made the agreement. the restaurant association could lift agreement but it may not want to for its own reasons. if the woman comes forward the story is definitely going to continue. >> bret: thank you. at the bottom of the hour,
herman cain will be in the center seat in studio and take questions from the all-star panel. we'll ask him your questions. log on to foxnews.com/sronline early to submit your ideas in ongoing chat room. now back to the rick perry appearance. first, more clips of the speech in new hampshire. >> pay the lawyers or the cattants, all that money is gone. or that deduction for charitable. yep. you keep that in there. why do we allow ourselves to be held hostage by countries that hate us? we've got to grow our economy. and we can unleash american ingenuity again. [ applause ] >> bret: some of the reaction in the media words like loopy and loose and giddy. perry's press secretary called it being passionate. let's get perspective and analyst from senior political analyst. brit hume.
good evening. >> hey, bret. video of rick perry's speech in new hampshire on friday has as they say gone viral on the internet and become the subject of much ridicule in some quarters of the national media. one eight-minute excerpt had more than 600,000 hits on youtube as of this evening. the comedian jon stewart played part of it last night with much mugging and gaping suggesting that perry flipped his lid. one msnbc host said the speech could mean the end of perry's campaign. but the episode may tell us less about perry than the gulf between the media outlets and people in places like new hampshire and texas. to be sure, the rick perry of friday speech is a far cry from the uncomfortable and wooden figure of his early debate. as the veteran political reporter dan bolt of the "washington post" put it perry on friday was, "loose and extremely animated even playful." also, apparently saw nothing in perry's performance to suggest some have that the governor was suffering from an overdose of back medication or some worse affliction. for my own part i watched
videotape of the speech and found the performance antic and goofy at times but nothing more. perhaps the best judges of this were people in the room who gave him a standing ovation. >> bret: people watched the clip. not many people watch the whole speech. >> 600,000 hits on youtube for eight-minute excerpt where you stream them together can make it look strange, or at least a bit strange. i checked on youtube to watch how many people watched the whole 25 people. 289. that may tell you something about this. >> bret: thank you. the fast and furious investigation yields an apology. up next, do executives of embattled lender fannie and freddie deserve million dollar bonuses
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competitive marketplace. executive from bailed out lenders fannie and freaks are received 7-figure bonuses for achieving performance goals described as modest. that news did not blend in well today as president obama held public relations offensive with out of town media personalities. ed henry has the story. >> the white house rolled out interviews with everyone from the president to slew of cabinet secretaries and access to bo the family dog. a they tried to get ten local tv anchors eating out of their hands from the push from everything from jobs to housing reform. >> we will help families refinance their homes. that could save thousands of dollars for homeowners. >> it's business as usual on fannie mae and freddie mac. ten executives with $13 million in bonuses last year. even after receiving a taxpayer bail-out of
$170 billion. >> i am calling on the president of the united states to cancel the bonuses and explain to the american people that taxpayers who bailed out freddie and fannie wyoming he continues to reward failure. >> the president launched executive action to help the underwater borrowers with the fannie and freddie-backed mortgages visitingness. the home state of democratic leader senator harry reid who was speechless. >> a gag reflex in front of all of you would be improper. >> took a lead cleaning up excessive computation on wall street with the dodd-frank bill. those provisions don't apply to fannie and freddie. >> it's important that leaders, regulators, folks in the private sector and public sector are responsible for the frustration. >> the president introduced a plan in february to reform fannie and freddie. independent entities that doled out bonus option their
own. >> the white house is not involved. >> in the 2008 campaign, obama had a slightly more aggressive view. i always said that any action with respect to fannie and freddie need to put taxpayers first. can't bail out the shareholders or the senior management of the company. >> officials here point out that there is nothing that the president can do to stop bonuses paid out in 2010. earlier next year, they will disclose bonuses for 2011 rand get a look at whether they enact any reforms. >> bret: ed henry live on the north lawn. thank you. the lawmaker panel trying to come up with a plan to take a chunk out of the federal deficit is running out of something more precious than money. time. chief congressional correspondent mike emanuel tells us how they're doing. >> approaching a critical deadline to act, members of the super committee heard from bipartisan leaders of the priest deficit reduction group.
tone was tough. >> i have great respect for each of you individually. but collectively, i worry you will fail. fail the country. >> simpson-bowels sought $4 trillion of saving in ten-year period through blend of spending cut and revenue increases. the message to the super committee was this is difficult. >> they may fight you and vilify you, but they will admire you. i've been the toast of the town one town and toast the next. cover of "time" one month and six months later you're doing it. >> they are tasked to find $1.2 trillion in saving by thanksgiving. pressure is added because the congressional budget office needs several weeks to assess if any agreement will deliver what it promises. today members of the bipartisan panel were encouraged to go much bigger. >> the committee will have to go well beyond the minimum charge of $1.2 trillion in savings in the next ten years. even savings of this magnitude
would leave the debt rising faster than the economy can grow. >> democrats remain focused on increasing tax revenue and are pushing the republicans on that. >> it's not enough for either side to say they want to reduce the deficit. now is the time when everyone needs to be put real skin in the game. offering serious compromises. >> bret: republicans would still like to tackle entitlements. >> unless we offer fund machine tall structural reform to the nation entitlement program. especially healthcare. we will not only end up failing in our duty. we may fail our nation as well. >> reporter: the members sound closer to the start than the finish line. sources on both sides are very pessimistic. failure leads to automatic cut in defense and domestic spen spending. bowl says effort to circumvent that would be disastrous. >> bret: mike emanuel live on the hill. herman cain joins us in the
>> bret: the investigation in the government gun tracking program known as operation fast and furious has revealed details of another similar operation. apology from high-ranking official. william la jeunesse is following the story from los angeles. >> i regret in april of 2010 i didn't draw the connection between wide receiver and fast and purous. moreover, i regret even earlier in year i didn't draw the connection. >> assistant attorney general became the first high-ranking official to admit that u.s. allowed gun walking,
controversial practice watching smugglers take guns to mexico. >> did ainform the deputy attorney general about it and if so, when? if not, why not? >> i can't be more clear. if i known then what i know now i would have told deputy and attorney general. >> wide receiver was operation in bush administration. similar to fast and furious under the obama administration. where illegally purchased weapons enter mexico instead of being stopped by the atf. documents show brewer and others knew about it last year. been thinking more about wide receiver, wrote the deputy attorney genuinestein in april of 2010. atf headquarters should or will be embarrassed they let this many guns walk. i'm stunned. as the investigation enters the tenth month. the blame game grows more intense. >> to the best of my investigation we didn't let the guns walk. >> the former atf director said he never read memos.
>> they want holder's resignation, others want honesty. >> lanny brewer statement said he told the attorney general in january or february so that doesn't jive. so we just got a massive con that diction here. >> the attorney general there were no chargeable offenses. the bottom line is atf and doj wanted a big case. a lot of gups and many feel they waited too long. back to you. >> we will continue to dig. no grapevine to make room for herman cain in the center seat segment. fox all-stars ask questions and i'll relay yours when we come back. in the break, log on to
>> pleasure to be here. >> bret: you've been dealing with the allegation and you talked a lot about them in various interviews. one of the accusers wants to tell her story but is barred by confidentiality agreement. will you call for the national restaurant association to waive details to speak freely? >> i can't answer that because there are legal implications. i just found out about this today. there are legal implications that i'm not familiar with it. we have to talk to others. itch can't answer it. too soon. >> bret: are you certain in
the past couple of days in the way you answer questions about that, that you haven't violated the terms of the confidentiality agreement for the women? >> absolutely. innever used the name. one of them i didn't know the name. the one i'm familiar with i didn't mention their name whatsoever. >> bret: on the question of process, charles. >> yesterday early in the day you said you were not aware of a settlement. later in the day on the greta show you said you were aware and went in detail. how do you explain that contradiction? >> when i first heard the word settlement, i thought legal settlement. my recollection early -- my recollection later is that there was an agreement. i made assumption about the word settlement that was
legal. this happened 12 years ago. all day in the midof my regular schedule i'm trying to piece the pieces together. as i indicated earlier today the best recollection of what happened is represented on greta. didn't mean to contradict myself it's just been difficult to recollect pieces that happened 12 years ago. >> both in the morning and on greta show you used the word "settlement." many people will say the candidacy is so attractive you aren't a politician and you aren't a guy who dances around, you shoot it straight. when you make a distinction between settlement and agreement, it sounds like you are explaining well, it depends what the word "is" is. how does herman cain end up parsing the words in a clintonian legalistic way? >> it wasn't intended to be clintonian. it was simply using the word agreement, which in business
organization i have run, when there has been an employee leaving, whether voluntarily or involuntarily we generally call it an agreement. that is when i got around it recalling it 12 years ago. >> mr. cain, this story was not an ambush. you have had two weeks to formulate your response. you find yourself in this public relations disaster. i'm interested in what you blame it on. poor memory, lack of political experience, lack of staff. what is your answer for why you're answering all the questions about all the conflicting responses when you had time to prepare one? >> go back to why ten days ago we made a conscious decision. we're not going to change anonymous accusations. we didn't know what would be in the report. we were given a heads up they were thinking about releasing
a story. you don't defend something you don't know what you are defending. thirdly, we could have been better prepared. we probably will be in the future. mea culpa on not being prepared. >> you were not informed there were two allegations of harassment against you when you were originally contacted about the story? >> we were informed there were two. but we made a conscious decision. i, as the candidate and the ceo of the herman cain campaign, i made the final decision. we are not going to go chasing anonymous accusations. >> let me ask you if you are happy with the way that the national restaurant association handleed this. you had allegations and you say they are baseless, they are not true on the substance of it. yet there was a settlement. are you happy with how it was handled by the association? >> yes, i am. having been the past chairman of the association. and being the ceo of the
association at the time. the one allegation i know of, remember i also said i wasn't even aware of a second allegation. yes, it was handled in the course of the normal employee relations when employee leaves. that's why it was not considered a big deal. because i didn't have legal staff or anything like that. >> bret: charles? >> mr. cain, when clarence thomas was near to achieving position of high authority, he was hit with a sexual harassment charge. you contending for presidency nomination, gets hit with sexual harassment charge. do you think race, being a strong black conservative has anything to do with the fact you've been so charged? if so, do you have any
evidence to support that? >> i believe the answer is yes. by we don't have any evidence to support this. but because i am unconventional candidate running an unconventional campaign and achieving some unexpected unconventional results in terms of my, the poll. we believe that yes, there are some people who are democrats, liberals who do not want to see me win the nomination. there could be some people on the right who don't want to see me pause i'm not the, quote/unquote, establishment candidate. no evidence. >> but race have any part of that establishment, mav ring, yes. what about race? >> relative to the left i believe race is a bigger driving factor. i don't think it's a driving factor on the right. this is just basically from speculation. >> bret: last thing on this topic then we are going to move on to domestic issues, foreign policy.
you were asked specifically, one of the few details in the original political piece whether you asked one of the women to a hotel room. that was one of the allegations that was in the piece. you said to pbs last night, "i absolutely do not recall, i have no recollection of that." if you knew these were the only two allegations. do you have, are you sure you hadn't done that? >> i am sure i hadn't done that. absolutely sure. >> bret: we have many more questions about domestic policy and thousands of people typing in about 9-9-9. foreign policy. >> good. >> bret: will in indiana brote in the chat room and he wants to get something on some other topics right away. thank you, will. the panel returns after a short break. you go next if you had a hoveround power chair? the statue of liberty? the grand canyon? it's all possible with a hoveround. tom: hi i'm tom kruse, inventor and founder of hoveround. when we say you're free to see the world, we mean it.
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guest herman cain. a lot of talk about 9-9-9. in the last debate in las vegas you were pressed on this, the national sales tax portion. you said comparing the state sales tax and the national sales tax is like apples and oranges. it developed that people were asking is the national sales tax on top of the individual state sales tax as it stands? wouldn't that increase the overall number? >> the current tax code on top of the sales tax. we're replacing the taxes raised with the current tax code with the 9% national sales tax. so yes, it is on top. so is the current tax code. so it's amals and oranges. state sales tax has nothing to do with 9-9-#. just like it has nothing to do with the current tax code. >> bret: the current tax code is progressive. the sales tax in a state is not.
a national federal sales tax would not be. it would add together. so people for example on a fixed income are concerned about the two of them together. and a sales tax. >> they should be concerned until they learn more about it. secondly, i invite them to do the math for that situation. people are assuming it's one size fits all. if you do numbers it's different. it is not correct to discuss the sales tax in the same breath we talk about 9-9-e-9. like it's not correct to talk about the sales tax to talk about the 82,000 tax code. we're replacing that. taking out invisible tax code. >> bret: charles? >> say you are a senior, live on fixed income, you live on social security. you are going to pay minimal income tax.
low level of revenue. corporate tax don't affect you. but live in a state with 7% sales tax. along comes president cain. you buy loaf of bread and you have 7% sales state tax and 9 cents on the dollar cain tax and you will pay 15 cents. >> several things. first of all, in our 9-9-9 model seniors don't pay tax on the social security benefits. secondly, if they receive income from the capital gains, no tax on capital gains. we're replacing those. the hardest for people to get their head around, and i realize it's a tough sale but i believe in the 9-9-9 plan. the hidden taxes in the loaf
of bread will be taken out over time. and replaced with that 9%. most economists understand how embedded taxes will come out. i understand how people wrestle with that. in essence they're not going to pay 9 cents. >> you're saying that the cain plan we have a deflation? >> we're saying that the price of goods are going to go down. >> deflation. >> yes. >> the price of goods will go down. they pay 9% sales tax. >> we heard your clarify your position on abortion stating you are pro-life from moment of conception. >> yes. >> though you previously stated that abortion is a decision best left to a woman and her family. should women be legally prohibited from having an abortion? >> let's correct what i said. that statement where people said that it should be left to a woman was taken out of context. i believe that abortion should be illegal. i've always felt that way. i believe life begins at
conception. life beginning at conception. i do not believe in abortion. the point i was trying to make legally i don't believe abortion should be allowed. but the point i was trying to make if a situation exists where they may consider some other alternative, then how will the law prevent that? that was the point i was trying to make. >> you said it was best left to the woman and the family. what are you describing? a situation they would. >> an extreme situation, very extreme situation. first, extreme situations we can never say never relative to extreme situations. >> do you have any exceptions for rape or incest? >> i do not have exceptions. no i do not.
i atch pro-life from conception. the statement i made has been taken out of context to confuse people is the way i stand. >> bret: last question. >> one thing republican primary voters are looking for is boldness. ron paul offered a plan to eliminate five government agencies, department of housing and urban developer, interior, commerce and agriculture. if there is a president cain would you keep agencies he proposed eliminating and why? >> h.u.d., interior, education, commerce and agriculture. >> the difference is how i'd go about making that determination. to say he would eliminate those on the surface i would saint that. i'd use approach to go in wimp to determine which chunks to eliminate. in some instances there may not be anything left. you go in and make tough calls. there may be some pieces left.
>> bret: back with mr. herman cain in the center seat segment. we've asked you to submit questions. thousands coming in. tom would like to know would you stop sending taxpayer money for foreign aid? because we're suffering enough here at home. >> first, let's start with what my philosophy is. which is peace through strength and clarity, extension of the reaganfy lostfy.
clarify who our friends are, clarify who our enemies are and yes, stop giving money to the enemies. we lack clarity relative to foreign policy. >> bret: charles? >> a few weeks ago on greta you were asked about the iranian attempt at terrorist attack on the u.s., what you would do about it. you said i would have acted pre-emptively ahead of time by placing cruisers near iran. how does that affect iran's determination to use terrorism against the united states? >> it won't deter their intent to use terrorism, but what it would do is it would let them know we are serious if they fire a ballistic missile toward us. although right now they're not supposed to be able to fire that far. or fire toward our friends like israel. let them know we have the capability. we're the only country in
world capable of ballistic missile defense at sea. i'd also double out a fleet. we could double it and not only put them strategically in that part of the world and protect our shores to defer them from feeling like they really want to fire a ballistic missile. >> the easiest is a defensive weapon, that intercepts a missile in flight. iran doesn't have any they could hit the united states now. moreover, a defensive weapon in no way deters an aggressive action. it could deter a launch of a missile. but it is not going to deter a terrorist campaign. >> it's not. it wasn't intended to mean it would deter terrorist campaign in the least. the point i was trying to make was that i'm concerned about their march toward having a nuclear weapon. march toward having more ballistic weapon capability. >> i don't see how eges effects that at all. >> they do have the capability with missiles to be able to detect and destroy them as
they detect it early enough. two things -- here is what needs to happen. the land base system already have more advanced capability than the sea based system. they need to be upgraded with the minimal amount of technology upgrade. this is what we have to do first to make it much more capable. >> bret: steve? >> iran has been actively harboring senior al-qaeda leaders for a decade. supporting financing, training and equipping terrorists killing american soldiers in iraq and afghanistan. are those acts of war? >> i believe they are acts of war. >> how would a president cain respond to the acts of war? >> first of all, i don't agree with president obama's approach in iraq and afghanistan. first, i would talk to the commanders on the ground. i've got the sense based on reports his plan to reduce the troop level in afghanistan commanderrers acting surprised. the same thing in iraq. it will leave a huge power vacuum. i would have listened to the commanderrers on the ground first. secondly, i would haven't
announced it to the enemy when we were going to leave. the other thing i would have done differently is make sure that it was clear what our mission was. it was clear for the definition of victory is. i would approach those decisions a lot differently than the current administration. >> if iran is already trying to fill the power vacuum you suggest and they're doing it in ways that you are saying, acts of war, does it require military response? >> not necessarily alone. we're working on energy independence plan. it will put pressure on the price of oil. iran doesn't want the price of oil to go up. this is how we begin to get iran in check. economically as well as letting them know what the military might is. >> bret: a.b.?
>> this is actually centering around the same theme. do you have specific criticism of the president's foreign policy except now that you talk about iraq and afghanistan? that you can share with us. and possibly on the war in libya. what mistakes you think he made and situation you would have handled differently. >> take libya. it wasn't clear why we got involved. now a billion dollars later it's a mess. secondly, the people now running the country are our enemies. i don't believe it was clear why we went in to libya. take iraq. back to this power vacuum. that is a specific example where i would not have agreed. we need according to some of the commanders on the ground. we need to leave troops there for a period of time. >> you would not have been involved in the intervention in libya. >> no, i didn't say i wouldn't have been involved. i might have been involved in
a defendant way. once we identified who side we were on and trying to help then you determine whether or not you provide aid or provide weapons or whatever the case may be. it wasn't clear what side we were on. >> a group effort to dispose gaddafi which they succeeded. getting to be a bigger mess if we had not gone in. do you agree with that? >> i agree with that. but the fundamental philosophy, peace through strength and clarity. every situation lacked clarity. >> bret: from lisa brown, if you could have lunch with anybody dead or alive who would it be? >> martin luther king junior because he was a great leader of our time and history. >> bret: we appreciate your time. thank you for coming to center seat. >> glad i survived this. [ laughter ] inquisition. >> bret: one more treat for you. one more treat, a special kicker coming up after this break.
wrote brett finally tonight, we know that congresswoman michele bachmann is a fan of her video. what will bad lipping subject think. >> how would i have found tom hanks, mcdonald's special, give me a large plate. then i sing, sing, sing about it. did you hear me? i'm frustrated. watch out for these spiders. big potato, man. ha choo. ricky? cowboys and anthrax. oh yeah, i he got snag. because everybody needs two can. >> is that the new slogan is that the new slogan everybody needs 2 can. >> that's funny. >> bret: mr. cain thanks for joining us. that's it for "special report."
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