Were going to continue to work with our members on both sides of the aisle to try to make sure theres no issue of default and get our government reopened. His deputy eric cantor stressed the importance of fairness in any deal. We also, though, as the House Republican conference think is very, very important for us to stress in whatever proposal we move forward will reflect our position on fairness. To the House Republicans fairness looks Something Like this. Their bill will reportedly include twoyear delay of medical device tax and prohibit members of congress and members of the president s cabinet from receiving subsidies for the Nations Health care law. It will eliminate Health Insurance protections for labor unions which are outlined in the senate bill. And it would prevent the treasury from using extraordinary measures to extend the debt limit. You know, just in case we get into this mess again. The House Republican meeting reportedly began with all members joining together to sing Amazing Grace though apparently without any acknowledgement that the very same group of people who pushed the country into crisis were praying for divine intervention. The man with the best source inside the conference tweeted, boehners plans has its critics but only from hardliners not the group of 150 sometimes swayed by the hard line block of 50. House leadership says they are not whipping votes and they expect the house plan to pass. In response to that vice chair of the caucus offered his analysis. Im going to make a prediction. The bill the republicans will put on the floor, if it is drafted in the way we believe its going to be drafted may not even pass the house. Even if it passes the house, i predict it will never pass the senate. Indeed the battle is far from over. Hours ago the white house released this statement. The president has said repeatedly that members of congress dont get to demand ransom for fulfilling their basic responsibilities to pass a budget and pay the nations bills. Unfortunately the latest proposal from House Republicans does just that. In a partisan attempt to appease a small group of Tea Party Republicans who forced the Government Shutdown in the first place. The president will circle the wagons with Senate Democrats at 3 15 today and the house is expected to vote on its own bill tonight. Joining me today from bud feed john stanton, James Bennett and senior White House Reporter for politico and joining us from capitol hill luke russert. Luke, i have to say, words came out of my mouth. Already the time for that wisdom has pushed. I got a push update on my phone from the New York Times saying the house deal has collapsed. What is the latest on the hill . Well, alex, its an amazing country we live in where we can have an entire cable tv show talking about deals in the house that have not been formally introduced nor has anyone seen concrete language. From what i understand from my sources in the room is that when this house bill that you just put up on the graphic was introduced, some of the ultraconservatives were upset about the fact that the subsidies for Health Care Benefits that they would eliminate for president , Vice President , cabinet members and members of congress, they were okay with that but they wanted that to extend to staffers as well. They wanted that to extend to the person answering the phones omega 29,000 a year, which if you were to extend that to staffers, folks on both sides told me you would see a brain drain on capitol hill of outrageous proportions, so much so that the entry level jobs on k street, their jobs would drop because there would be a flood on the market leaving government. One could argue those hard core conservative offices have already seen quite a bit of a brain drain already. Let me ask you, youre on the hill. Yeah. The vitter amendment, which is what were talking about here, how do hard core conservative congressional candidates say to their staff, this is what im going to push for, this is what is meaningful to me, and it will hurt you. How does that play out in the halls of capitol hill . I cant find a single staffer, maybe they exist, i talked to many of them that are supportive of amendment or see the logic behind it or Something Else that it makes a political play. I spoke to older staffers who have been around for a while. They came to me appalled this is whats holding up this bill right now. As one said to me, i dont understand im paraphrasing here. I dont understand what they get out of screwing over their staffers so much. Its an odd angle. Why . When you think about this, the Government Shutdown, all right, were about to default on thursday. The hangup about john boehner being able to try to get leverage with his conference is whether or not someone answering the phones making 29,000 a year can get their Health Benefits paid by their employer. This is what were dealing with on capitol hill right now, alex. Its a very odd worry. What happens now. They pull the bill back. They are going to have to figure out what they are bog to do. Do they put the full vitter in there to try to get to 218. If anything this does give the house a vehicle to send it to the senate, maybe have something by thursday. This deadline now, it looks iffy at best. Nbc capitol hill correspondent luke russert trying to explain the inexplicable. I wonder how he got here so fast. He must be in the batmobile. We havent let him talk yet. I want to bring independent senator from maine. Senator, a busy day on the hill. I have to ask you about the house proposal, harry reid said its an attempt to torpedo the bill arranged in the senate and the house one being pushed by extremists. In your view is this house bill doa . Of course. Let me say at the outset, this whole thing about Congressional Health care is a gigantic fraud and hoax on the american people. My Health Care Plan is exactly the same as a park ranger in yellowstone park. For 60 years the federal government has been contributing to Health Care Just like 90 of Major American Companies do. Theres nothing different, nothing special, not gold plated. The idea these folks want to throw their own staff under this ideological bus is beyond me. My comment this morning was what planet are these people from. The planet mean is what i think it is. It makes no sense and it is a big fake. It is a total political stunt that caters to peoples suspicions about congress that we have a special deal. Theres a contribution. By the way, we all have to go on the exchanges, because that was an amendment to the Affordable Care act. But to say were somehow exempt is just nonsense. Most americans get their Health Insurance through their employer. Their employer pays a part of the cost and its the same thing here. So this is just absolutely ridiculous that these people are putting the whole country at risk to try to score some cheap political points. Have i been clear about how i feel about this . Yes. Yes. Look, im in complete agreement. It looks like a fraud, sounds like a fraud and therefore is a fraud. I do want to ask you about the house retaliated this morning. Certain senators were saying they felt blindsided by this. Were you surprised the house came back with the outlines of their own plan . They can have their own plan, i understand that. Thats how the process works. But to throw Something Like this in at this hour is ridiculous. They have tried it before and didnt get the votes. You know, lets move on and solve this problem. Were beyond this kind of nonsense now. Were within 48, 72 hours of a serious deadline. These guys are playing russian roulette with the u. S. Economy with five out of six bullets in the chamber. Its beyond ridiculous. I dont really know how to characterize it. I worked for two weeks with Susan Collins and joe manchin and john mccain and a group and we came up with a pretty good plan. The leader harry reid and Mitch Mcconnell worked and they came up with a pretty good plan. We ought to do this. I think at this point, this socalled hastert rule in the house has to go by the boards. You cant allow 50, 60, 80 people to keep the whole government hostage. Thats just ridiculous. This whole thing could be solved in 15 minutes with an open vote on the house floor and just move on. The independent senator from maine angus king, that you so much for your thoughts. Thank you. John stanton, welcome to washington. I want to ask you first you have a piece about the dynamic between mcconnell and boehner. Mcconnell isnt going to agree to anything he doesnt think can pass the house, a senate gop leadership aide said. Adding mcconnell has absolutely been providing boehner with updates. A difficult primary and general election ahead of him, mcconnell isnt looking to be held a bag conservatives oppose again. How does this morning change that . Here it seems like conservatives are opposing the bag mcconnell was trying to check at the house of representatives. If you look, hes canceled his meeting with his members of the senate side to brief them on this deal. This could have a big impact on whats going on over there. If boehner is unable to move his own piece of legislation, even beyond this idea of putting staff in. Once conservatives figure out the sum total of three years of Tea Party Obama care, you give a subsidy to medical device manufacturers, i dont think the bill can get enough votes on the republican side even if you dont add in this language e if he cant do it over there, i think it hurts mcconnells ability to move any deal hes working on. The two deals were very, very similar. As weve been talking about all week fundamentally, glen, shows the breakdown of the Republican Party. The Senate Republicans basically crafted a deal and the house has rejected it. Where do we go from here . I will go back even further. Ill go back two years. Imagine if john boehner had been able to sell these guys on the grand bargain two years ago when the president was at this point of extreme vulnerability on the deficit, making all the right noises, pivoting in their direction and they completely sabotaged that deal. So can you imagine, we have gone from having what could have been this enormous multidecade attempt to sort of rein in the deficit, which was their stated goal, right . Right. To talking about, as luke said, the full vitter, which i thought it meant Something Else. Full vitter. I dont want to get into that. Also a little paradoxical in the end, the end game is to force as many people as possible into the exchanges and raise the deficit. When you step back, i guess like Everything Else in this insane standoff, it makes some sort of sense in context. When you step back this morning, glen, i would go back to you given your experience and time at the white house, there was a lot of i wouldnt say premature dplee but this idea that the democrats had won and boehner was going to give up because inevitably he had to because were going to default on our credit in 48 hours. Im unclear as to where we stand on all that now. The president is meeting with Senate Democrats. What does he say to them . Im with chuck todd on this. I think this was a pretty lukewarm counter by boehner that was intended to be the vehicle for some sort of larger deal. I know as john rightly pointed out, this may have consequence for mcconnell. But i think ultimately the intention of this was kind of a fig leaf. Five out of those six bullet points apart from medical device tax are incredibly small. My question, i think its a good one, are democrats in the zone where they are slightly overplaying their hand. Would it been nice to give a little hat tip that boehner for the very first time accepted basic rules they applied longer Term Extension and end of the Government Shutdown. That happened to do and that seems to be sub sumed by rhetoric. That could hurt boehners ability to push through the fig leaf. I think they are running the risk of snatching the victory from the jaws of defeat here. Thats the thing. We talked about the political kabuki theater. Im going to have to say that for the rest of my career in broadcasting, which may be long or may be very, very short. The notion, though, that the president has to help the president save face at the end of all this, he doesnt seem to be operating from that playbook. The statement he put out so far has been you guys get nothing. I think he said this as much, there is a historical precedent the president believes this represents. If he goes back to the bargaining table, no matter how small it sets the stage for the fiscal cliff any time. The republicans didnt believe it based on prior history of negotiating with this white house. Certainly harry reid acted from the beginning as if he has the hold cards. Let me ask in terms of lets assume for a minute the deal does come to pass, glenn, in some fashion. Is it a win or loss of the conventional wisdom from the outside is the democrats have won. If you look at the timetable were going to be relitigating this in an election year, well before november, looking at republican spending levels. Ultimately somehow theres going to be some concession whether its medical device tax repeal or whatever it is, the half vitter that the democrats are going to need to accept. The half vitter is cheaper. The point on spending levels is absolutely right. Democrats are playing essentially on republicans home turf on this to begin w i do think the dynamic this has been such a debacle. Polls are really, really stark. What did peter harkey say, this is nothing hes seen before. Democrats are greatly advantaged here. You know what they say in pollic particulars, never go full vitter. The jury out who stands to lose the most politically plenty of americans playing for Capitol Hills game of chicken. We will discuss just how much fiscal brinksmanship is costing us when a man javers joins us next on now. [ male announcer ] staying warm and dry has never been our priority. Our priority is, was and always will be serving you, the american people. So we improved Priority Mail flat rate to give you a more reliable way to ship. Now with tracking up to eleven scans, specified delivery dates, and free insurance up to 50 all for the same low rate. [ woman ] we are the United States postal service. [ man ] we are the United States postal service. [ male announcer ] and our priority is you. Go to usps. Com® and try it today. In this case, time is money. Time is money. Its going to be very costly to our economy. With bills moving through both the house and senate, the nations first Government Shutdown in 17 years just may be coming to a close. But in the 15 days of shuttered services weve already inflicted pain on millions of americans who either work for or depend on the government and millions more in the private economy. According to Market Research firm ihs shutting down the u. S. Government costs the economy 160 million every workday. We passed the 2 billion mark on october 9th. On friday Goldman Sachs chief economist predicted the shutdown would cut Economic Growth by a fifth this quarter alone. A shutdown also increases the deficit. The government estimates the twin shutdowns of 1995 and 1996 cost the government 1. 4 billion. According it Macroeconomic Advisers an estimated 900,000 jobs lost through budgetary crisis through the dawn of republican led fiscal brinksmanship in 2010 for a party that continually celebrates its concern for job creation and fiscal prudence, the reckless behavior in congress would be a public and painful lesson in hypocrisy. Joining us from capitol hill is cnbcs a man javers. From that introduce y electroyow i feel. How republicans are behaving, no closer to a deal 48 hours out. Is there going to be some kind of panic . Absolutely. Wall street wants to see this thing resolved. As of morning markets are fairly copacetic bearing this wrinkle we had today to some extent. Were already seeing Interest Rates on treasury move, shortterm debt, that window whatever it is they say were going to have a renegotiation of this. You can see impacts already. Some talking about not accepting shortterm treasuries as collateral. Already some of the things that the economy does are being slowed down as a result of this gamesmanship and brinksmanship in washington. I just came from Nancy Pelosis press conference and it doesnt seem theres any progress to report at all in washington. Youre asking the right question is when do markets absolutely lose their minds. As of right now it seems they kind of feel this is typical washington boilerplate and were going to get a deal. They are very confident a deal is coming here. If they are disappointed to the downside, it could be really ugly, alex. I want to bring james in. We were talking in the break about various forms of brinksmanship here. You were alluding to the brinksmanship between market and congress. Theres this whole other game of chicken going on between washington and wall street. Its as though capitol hill wants to be rescued, wants the excuse to move by the markets crashing. The markets having been there,