Lets say, first of all, failed state maybe yes, but look at northern iraq. The kurdish areas are prosperous. This is not only about iraq. It is not primarily about iraq. It is about al qaeda and this al qaeda in the islamic levant in iraq. And thats our real enemy. So what should we do . Yes, there is a sectarian dimension to it. But when you say sectarian, people sensibly say lets stay out of it. When you say al qaeda, they wake up and say, yes, there is a problem. The second thing i would say is we need to look for friends everywhere. We still have a few left. An awful lot of people do not believe in us, our friends and enemies. But we should be looking for them. And i would say start in syria. Sunnis in syria are the most actively fighting this isis organization. So on those insurgents in syria, that is what you would do. At least arm them. We may have reached a point where we need to do more. Would you send American Forces . I hope we do not have to. But you would not take that off the table. You can never take anything off the table. I remember saying in 1992 when we had an arms embargo in bosnia, if we keep these bosnians defenseless, we will have to send americans in to protect them. That is what happened. If we allow isis to triumph in syria and iraq and there is nobody left fighting, it is possible that we would confront them. We cannot count on the iraqi military. We built it and 11 years later they crumbled. They threw away their weapons and retreated. Yes. But first of all, lets recognize they have fought through this war. Weve lost 5000 people. Theyve lost 16,000. These are not cowards. Lets not portray it that way. One of the biggest problems is that maliki has demoralized the army, removed the best generals because they were not loyal to him and maybe were not shia. We bear responsibility. If we had stuck around, those decisions would have gone you say, and i think most people agree that the greatest threat is al qaeda or isis. One democrat agrees with you. He says we ought to make any kind of alliance we could to stop this threat, and that includes assad, iran and russia, a temporary alliance to stop al qaeda and isis. I think there is huge danger in that. The idea that we would support assad has been feeding these people and selling their oil. The only people in syria who are fighting them are the sunni moderates. You cannot support assad and the moderates. The idea that iran is going to advance iran has played hot and cold with al qaeda. They have harbored senior al qaeda people. I would be awfully careful about working with a country that is so vocally for trade us as the enemy and supports terrorism. Lets go back to maliki. Everyone agrees he is a disaster. The iraqis are struggling for a replacement. One name is mentioned. Critics say that he played a role in going to war in 2003. What would be your view of him as the new Prime Minister . Im somebody who wanted to install them as first of all, i would be labeled as someone who would want us to install a Prime Minister. I never thought it was our place to install Prime Minister. Unfortunately, we have done a lot to damage our relationship with him. We went after him in 2004. I think some of it may have been fair and some unfair. No one in that system is an angel. Chalabi is not an angel. You have to be careful who you work with but you need to work with everybody. The problem is now that we put them in a situation where he has become much too close to iran. I would worry about that. You would not be pleased with him as Prime Minister . Look, i think what we need is a government there that will be a Unifying Force that will bring sunnis back into the fold, that will do for the socalled sons of iraq what we promised. Any government that does that, whether it is chalabi you are sounding like you do not think chalabi is up to that. The man is a survivor. That is impressive. I think he wants to succeed. He is smart. Maybe he will figure out a way to do it. Our test should be what is government policy, do those policies have a chance of working, and do they keep us out of the coming the proxy for iran . Did he lie to us in 2002. The intelligence we were wrong about it not come from chalabi. We are to blame for taking this curveball from the germans. We have never been able to me directly. He boasted a bit that if we were wrong, we were wrong in a virtuous cause. The only thing i know about intelligence he provided is what i heard from military operating in baghdad which is after the war began, which is that he didnt know who the enemy us and we were getting good block to block intelligence. Does joe bidens federalism proposal look better now . It never looks completely bad, except for the fact that the country does not let up split up neatly into three parts. Baghdad in particular was and remains a mixed city. I was quite intrigued by what hes an islamic leader not alhashim, but his brother said what we need is not regional federalism, which would but geographic federalism based on provinces. Each province would have a great deal of autonomy. I do not know if they can get to that anymore. It sounded like a good idea. You said it is healthy for government street knowledge that they make mistakes. Is it apparent that as atrocious as saddam was, as wellintentioned as america was, that the American Public is right . That with the loss of 4500 soldiers, many more injured, cost the treasury of 2 trillion, the war was a mistake . It is possible. It was costly and more costly than it needed to be if we had gotten the strategy right early on. They couldve ended sooner. Think about this. The organization we are fighting called isis was basically in a different name created by zarqawi. Then he was not operating against saddam hussein. He was operating with plots in europe and georgia. I think secretary powell said 116 operatives you still think for all the cost, on balance it was worth it . We needed to do something. Whether exactly what we did is open to debate. But the idea we couldve lived with another 10 years with saddam hussein, i cannot agree with. They do so much for being with us and a happy fourth of july. When we return, gms settlement attorney ken feinberg on the companys latest recall. Here i am getting paid because people out there, how independent can he be if he is being paid by General Motors . Welcome back. We are joined by the General Motors settlement czar ken feinberg. 9 11, bp, this is another big case. What are you seeing so far . We are starting to see the claims. The claims cannot officially be submitted until august 1. You have from august until december 31 to officially submit a claim. But we are starting to get letters from individuals, and the letters go all the way from simple in eligibility. You are not even involved in a designated vehicle subject of protocol. All the way to the other extreme. Hot, wrenching stories about victims who survived or families who lost a loved one and suffered horribly as a result of the tragedy. Four hours after your announcement, General Motors said it was recalling another 8. 4 million vehicles for similar ignition problems. Could that be extended to your purview . Could be extended . That is up to gm . Right now all of those recall vehicles are ineligible. The only vehicles that are eligible for this plan are the original 2. 6 million recalled, the cobalts and pontiacs. For those others, the only recourse they have, unless they change and put it under your jurisdiction, is to sue. That is what g. M. Wants to avoid. Thats right. Although maybe g. M. Or contact your g. M. Lawyers or your dealers. I am not sure a lawsuit would be necessary. If there is an ignition switch problem. But you are right, they cannot come into this program. Unless g. M. Decides they could. G. M. Would extend the scope of my protocol. So far they made clear to me that these are the only vehicles that really engineeringwise suffered this type of defect with the context of g. M. Failing to disclose it and notify regulators. I know you talk to the center for auto safety. And they said, there are some consumers who do not have records or accident reports, but they do have a record of stalling. The perception should be their claim is valid. Do you agree . I want to see that claim. Stalling. Did the air bag fail . If it is not the right vehicle, ineligible. If you have got an airbag that did not deploy and you have documentary evidence of stalling, lets see what it looks like. I do not want to say right now eligible or ineligible. Senator Richard Blumenthal who has been active, he was talking about g. M. , not you, but he said it is wrong to put an arbitrary deadline for filing things because the Justice Department investigation may not be complete by then. Would you consider extending the december 31 deadline . Right now i would not. I understand senator blumenthals view but i take a different view based on my experience with 9 11, which you will recall and bp. If you extend the deadline for processing the claim, you are not helping the claimant. You are not. The claimant, as a rule i find human nature being what it is, claimants will procrastinate. They will wait. If you extend the deadline six months, they will wait six months. Many will. It is better to have a deadline and force people to gather together documentation and get the claim in. I will say this. Highly unlikely that if somebody waits until the end of december to file a claim. So were going to process it into 2015. I cannot resolve all the claims. By the time they get the claimant and we process it, i think any investigations being conducted by anybody will be long over. You think they will finish that this year . I would think. I do not think the problem will surface. You have a very high success rate in 9 11 and bp, over 90 . Do you expect Something Like that this time . I do. That is the only test. All of these words on both sides, people complaining or agreeing or whatever, at the end of the day, al, and you know this from 9 11 and from bp, at the end of the day, the only thing that matters, did you get the money out fast . And if people sign up . You think most people will find up sign up. I think when they know that they are eligible and know what they are going to get, they know the hurdles, if you go the litigation route. Not only the uncertainty. Under this protocol, under this program, contributory negligence, of the driver intoxication, speeding, texting irrelevant. I am not interested. This did not occur under mary barras watch, but she has been in charge of this. What is your impression about how she is handling the Compensation Program . All i can say from my perspective, very cooperative. She means what she says. G. M. Is setting up this program. It wants to do the right thing. In the design of the protocol, they engaged me on certain items, pushed back. I told them why. They agreed at the end of the day. They have also agreed, as you know, under this program once i make a final determination on eligibility or the amount of compensation total independence. They cannot challenge or appeal it. How much are they paying you . You ask gm. So it is up to g. M. It is up to g. M. I will say that the fact is unlike 9 11 and boston and newtown, connecticut, where i worked pro bono. Here i am getting paid, and that is a challenge because people out there, how independent can he be if he is paid by General Motors . I think the answer to that can only be and how fast we get the money out. How generous the program is. Ken feinberg. Happy fourth of july. When we return, the Supreme Court talks about obamacare and the end to Immigration Reform . Welcome back. I will go to Margaret Carlson and Megan Mcardle in the moment. First, major decisions by the Supreme Court impacting the Affordable Health care act. Our Supreme Court reporter is with us. Greg, that decision that overturned part of the Affordable Care act, the conservative majority in the court said that a familyowned business does not have to provide contraception coverage if it conflicts with religious beliefs. A farreaching decision . Relatively narrow, especially when you compare it to what happened two years ago. There are 50 lawsuits filed by companies who want this exception. The administration will have to figure out how we can do something to provide the coverage. Some democrats are yelling that this will deny women coverage for contraception. Is that is an exaggeration . It probably is. So far, 50 lawsuits have been filed. By definition, they will not be the biggest companies. Hobby lobby is 15,000 employees. That is the Biggest Company that has said it does not want to provide this coverage. Much more often it is going to the very small companies. That coverage still may be provided either for other forms of contraception or by the government. Hobby lobby only objected to four forms of contraception. Another decision to assess dues to Home Health Care workers in illinois. Is that something that is going to affect Public Employee unions . There are a dozen states that have similar rules involving workers that are on the cusp of being a public or private sector worker. The court said we have to think of them as private sector, not public. But the court laid down a marker. There is a big precedent from 40 years ago where the court said the government can for all Public Sector employees designate a Union Representative and require workers to pay fees to that representative. The court casts some doubt on that. How about next session . Any blockbusters coming up . Not yet. But the biggest one is gay marriage. We have a federal Appeals Court ruling come out for the first time in the last couple years saying there is a constitutional right to gay marriage. A good chance the court could take up that case or another one next term. Let me turn to megan and margaret. Margaret, big controversy in congress over whether to continue the export import bank. Is that a vital contribution to the American Economy or crony capitalism . It did not mean anything to people until republicans made it so because they needed to please the base. It is corporate welfare to them. The problem with that is that it helps Small Businesses as much as big business. It is loans for Foreign Countries to buy our products. Other countries have a similar program, which means that we will unilaterally disarm them and airbus will kill boeing. True. Other companies subsidize their firms, but that does not mean that it is a good idea. Both economist will tell us that these trade distortions, they cost a lot of money as well as gaining money. On that it is not clear what they gain. Meanwhile, they make it hard for our domestic aircraft carriers to compete abroad because their Foreign Investors get discounts and they do not. Overall, it is a small effect but it is a statement of principle that its a subsidy to corporations. And this is something that reformed conservatives have been complaining about for a long time. Tim carney has been pushing this. Those people have got a victory and not an important victory but symbolically to say, republicans are really against corporate welfare. This it is not just business against people. Let me switch subjects to immigration. The reform bill has officially died in congress in the house. There are currently thousands of kids coming across the borders unaccompanied and for the most part from honduras and el salvador and guatemala. Who is to blame . The drug war and gang problems have caused homicide to spike in a lot of Central American countries. You also have the fact that it does seem clear that many of the people who are at the border or the people whose relatives are trying to join the United States are under the impression that the Obama Administration is preparing to ease up on enforcement. It is a pushpull situation. Margaret . The Obama Administration has been fierce on border control, putting in 1000 more agents. The bill that stalled would upset even more and allow for allowthat even more and for much faster adjudication. The murder rate is a huge incentive. If i was in guatemala and i had a child, i would probably listen to the smugglers who were exaggerating what a small change to the dream act which is a republican idea would do for their kids. It is a human tragedy. Thank you all for being with us. We will see you again next week. Political capital is a production of bloomberg television. Hes been called the startup whisperer. Reid hoffman is the executive chairman of linkedin and an investor in some of the most Successful Companies of all time, including facebook. He was on track to be an entrepreneur. A student of philosophy, hoffman at one point pursued a career in academia. But he took his first job out of school at apple, and then joined the paypal mafia. Now a partner at greylock, hoffman sits on seven boards. He is the author of the start up of you, and now a new book, the alliance