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Glenn Beck

Treasury Using Strong-Arm Tactics on Banks; Campaigns Using Children in Ads

Aired October 15, 2008 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(BEGIN VIDEOTAPE)
GLENN BECK, HOST (voice-over): Henry Paulson is the new godfather.

MARLON BRANDO, ACTOR: I`m going to make him an offer he can`t refuse.

BECK: I`ll tell you how the treasury secretary is taking a page right out of Don Corleone`s playbook to force big banks to hand over the goods.

Then, both candidates say they want to put their stamp on the bailout. That`s great, I guess. When will we find a real leader who cares more about our country than their own power?

And best-selling author and mega-church pastor Joel Osteen. We`ll talk about the loss of faith in America and how it`s gone from "in God we trust" to no trust at all.

All this and more, tonight.

(END VIDEOTAPE)

BECK: Hello, America. You know, I thought I had seen everything in this country. I thought I could see what was coming. But boy, I tell you, I was shocked when I picked up the "Wall Street Journal" today. I saw that Treasury Secretary Henry Paulson did a scene right out of "The Godfather." He`ll be sleeping with the fishes. He spoke to the nation`s top bank executives. He said the government was going to buy $125 billion worth of stakes in their banks, impose new salary restrictions, new dividend policies, and there wasn`t any negotiation. Welcome to the new America.

Here`s "The Point" tonight. It`s not just Don Corleone that says by the end of this meeting, either your signature or your brains will be on the contract. It`s now America. And here`s how I got there.

Tonight I have to ask you an honest question. I`ve never seen this before. Since when is it the government`s role to strong-arm private business into selling them a piece of the action? That`s not the America I have grown up in. I don`t recognize this America. It`s not the free market.

Bush said today, "Hey, we`re trying to save the free market by nationalizing." What? That`s not capitalism. That doesn`t even make any sense. Forcible government ownership of private industry is at best corporatism, and at worst fascism.

According to the "Journal`s" report, the executive from Wells Fargo fought the good fight. He actually said, "Is it just me? Excuse me? Why is this necessary?" Why -- why does the government just coming in and buying a stake in his bank when he doesn`t want it?

Reportedly he was told by Treasury Secretary Paulson that it was for their own good and the good of the country. Oh, my gosh. Where are people on this?

It said that Paulson did say, of course, "You know, hey, you could go it on your own. You want to? Go ahead." A room full of Luka Brazzis sleeping with the fishes doesn`t really seem like a good idea. If that doesn`t send a red streak of terror up your spine, America, I don`t know what will.

Tonight here`s what you need to know. America is about freedom. Freedom. Freedom to succeed, and yes, freedom to fail. Freedom to chart my own course. If Wells Fargo or anybody else wants to go it alone and live with the consequences of their decision, that, damn it, is their right. This is America.

This country is going through an incredibly tough time right now, and there are really, really amazingly tough times ahead of us. The last thing we need is for the federal government to start using mafia tactics in the name of the greater good. I don`t care if it`s a bunch of Republicans or a bunch of Democrats. It`s wrong. Remember, a choice made with a gun to your head isn`t really a choice.

Jonah Goldberg is the author of "Liberal Fascism" and editor for the "National Review" online.

Jonah, holy cow. Have you ever seen anything like this before?

JONAH GOLDBERG, AUTHOR, "LIBERAL FASCISM": I don`t think any of us have. I mean, even the New Deal stuff wasn`t really -- it was similar, but it wasn`t the same.

BECK: Well, they took people -- I mean, FDR was taking people all the way to court. He was taking the rich fat cats and saying, "They`re un- American. They`re not paying their taxes."

And even the Supreme Court said -- I`m looking at it -- "They`re paying everything, every dime you`re telling them to." And then they just smeared them in the press.

This is -- is doing something I`ve never seen since -- since when? Where is the outrage, Jonah? Where is anybody standing up and saying this isn`t America anymore?

GOLDBERG: Well, I mean, look, they`re -- there`s a real split in America. There`s a real dichotomy -- social scientists have noticed this for a long time -- where Americans are very etiological in theory, but they`re very pragmatic in practice.

And I think most Americans right now, their view is, if this works, then it was worth doing. And my basic view is, that`s probably right. But, and there`s a huge "but" here, Milton Friedman said that there`s nothing so permanent as a temporary government program.

BECK: Yes.

GOLDBERG: We`ve seen, you know, rent control in our major cities. It was a product of -- it was a temporary program during World War II. Employer provided health care. Temporary program during World War II. They`re still with us. And last I checked, World War II was over.

BECK: Jonah -- Jonah, let me ask you this. I think I asked John McCain this the other day, and I don`t remember what the answer was. But it is -- it is just this. Who needs your principles when life is easy? When life is easy, life is easy. You don`t have any tough choices. Your principles only mean something when your back is against the wall. You`re only tested when your back is against the wall.

We either believe in freedom and small government -- we either believe that the government can`t come in and tell a business what to do, or we don`t. And the only time it counts is when your back is against the wall. Not this crazy idea that, oh, well, you know, hey, you`ve got to do something. No, you don`t.

Here`s what you do. You stick to your principles, because those are the things that built this country, and they`re the only tools that will get us out.

GOLDBERG: I certainly agree with you on an individual level. In terms of my reading of the Paulson thing, Wells Fargo and hats off to Wells Fargo for trying to stick up -- stand up to Paulson and all this, and hats off to Wells Fargo for actually running its company in a sound and wise manner, so it`s not in the mess that these other companies are in.

But the revolver, you know, the Don Corleone revolver that Paulson held up to head of Wells Fargo was simply that if you say no now, don`t ever come to us for help ever, ever again. And Wells Fargo blinked on that. And that, you know, that is a tougher...

BECK: You know what? You know what, Jonah? Because I -- you know what? I learned a lot of stuff about progressivism and how non-progressive it is, and fascism from your book. You`re the guy who literally wrote the book on it, OK? So I learned a lot of this from you.

And all you have to do, if you want to see the government in action, is go back as far as Freddie Mae [SIC] and Fannie -- Fannie Mac [SIC] and Freddie -- whatever they are -- Freddie and Fannie. You go back and look at what happened there.

Here`s what happened. "Hey, don`t worry about it. Bank, you don`t want -- you don`t want to give those risky loans? That`s OK. Of course, I don`t think I can stop ACORN from picketing in front of you and saying that you`re racist. And I don`t think if I can have you expand or merge."

Go it alone doesn`t mean go it alone. It means the government is against you.

GOLDBERG: I think you`re right. And essentially what we`re seeing right now is temporarily, and that`s, you know, only -- the only defense people can offer, is that it`s temporary -- is that they`re basically turning the major financial banking system in the United States into de facto Fannie Mae and Freddie Macs.

And if this is temporary, you know, I don`t like the moral hazard of it, I don`t like the precedence it sets and all the rest. My real fear is that it`s not temporary, that basically...

BECK: You know that, Jonah. You know it.

GOLDBERG: But we...

BECK: I mean, please, people, please, stop pussyfooting around. All these experts on TV are saying the same thing, "Well, it`s only" -- it`s bull crap. And everybody knows it. Let`s call a spade a spade. This is nationalizing the banks. This is the first step into corporatism and fascism.

GOLDBERG: But I believe -- I certainly believe that it is a -- that it is currently a step into corporatism. The duty, the responsibility is for people like you and me and the people watching this show to get promises, serious promises from the government that it will be temporary.

BECK: Oh! Oh!

GOLDBERG: The Chrysler bailout was temporary, right? And the question is...

BECK: It is promises for the people. I don`t trust them; neither do you. Neither does anybody else.

GOLDBERG: What alternative do we have? What alternative do we have other than to get these guys and hold their feet to the fire and make sure that...

BECK: I`m for that. I`ll call General Petraeus. Let`s meet at the Capitol. Let`s have him do some questioning? Oh, no, would that be wrong?

Hang on just a second, Jonah. Don`t go anywhere. We`ve got to take a break.

This is so frustrating. You know, I see people on television, and God bless Jonah. I love him, but there`s not a lot of people that will tell you what is really coming, what they really believe. Everybody pussyfoots around. Jonah is one of the bravest on television.

I have -- I`ve been asked by my own family. What`s coming, Glenn? What do we do? And I wrote a series of letters to my family. And I decided to share them with you. Some of the most risky stuff that I think I`ve ever done, because it is right straight from the heart.

The third in the series is available tomorrow in our free e-mail newsletter. I`m going to explain to you what you can do to face the storm that is coming. And it`s not stock tips. You may not agree with me, but it is the unvarnished truth as I see it. And it will be in my free e-mail newsletter. You`ll get that tomorrow. Go to GlennBeck.com and sign up for it right now.

Coming up, now that America`s banks are essentially nationalized, how will the next president use this found -- newfound economic power? This is fantastic.

An Obama victory would give Democrats a monopoly in Washington. That`s not just scary; it`s un-American. And it`s probably around the corner.

And what really ails America today is a growing lack of faith in our leaders and ourselves. How do we right the ship? How do we get ourselves back onto the right track? How can we trust again in anything? We`ll sit down with mega church pastor Joel Osteen and get some answers coming up.

(COMMERCIAL BREAK)

BECK: Coming up, every single dollar bill in your wallet has four words printed on it. It says "In God we trust." I thought about those words this weekend. I thought, boy, you know, what is it we really believe in anymore when it comes to our country? Those are the words that our great country was founded on. Those words found their way onto our money after the Civil War.

Unfortunately, the way America looks today, I think we`ve lost that trust. And not lost necessarily the trust in God, but the trust in everything else.

Pastor Joel Osteen joins me in just a little -- a little later on in the program. We`ll discuss how we -- how we get back to where we should be.

But first, let`s continue our discussion on the financial and political deal-making surrounding the economy and crisis.

Joining me once again is author and "National Review" editor online. It is Jonah Goldberg. And please to welcome back commentator and co-author of "How to Ruin the United States of America," Ben Stein.

Ben, are the people in Washington reading your book and just following it step by step?

BEN STEIN, CO-AUTHOR, "HOW TO RUIN THE UNITED STATES OF AMERICA": I think they have been doing that for some time.

I was terrified when I read this morning the "Wall Street journal" story about the banks buy-in by the federal government, in which the federal government is taking a big ownership stake in the biggest banks in America, whether the banks want that buy-in or not.

I could understand if the banks wanted it and needed it to stay alive. But some of the banks didn`t want it. As Secretary Paulson said, "You`ve got to have it. Otherwise we`ll let you fail."

BECK: Why does this terrify you, Ben?

STEIN: Because control over the banking system by a government that already has control over the police and over the judiciary is too much. It`s just too much control. In a free society there should be some parts of the government that are -- sorry, of the society that are privately run. If all power is concentrated in the hands of the government, even a very good-natured person is going to find the temptation irresistible.

BECK: OK. Can I ask -- can I ask both of you, because Ben, you haven`t been on this -- this freak train that I`ve been on for the last two years. I mean, you and I have disagreed. You said that I`m a -- you know, I`m a guy freaking out a little bit too much. And this is -- this is the kind of stuff that I have seen coming, man. We`re in deep trouble. And there`s much, much more coming around the corner.

Where do you think we go from here?

STEIN: Well, I think whoever wins, whether it`s Mr. Obama or Mr. McCain, that person`s going to be very, very tempted to just say, "Look, I`m the boss. I`m the boss of everything. I decide who gets loans. I decide what the interest rate is. I decide everything." And at that point the free enterprise society pretty much comes to a stop.

I don`t know why they couldn`t have just guaranteed the inter-bank loans and not bought a big stakes in the bank.

BECK: There`s a lot of things they could have done that made sense. Jonah, you actually believe in Prime Minister Pelosi. What do you mean by that?

GOLDBERG: Well, we don`t -- we don`t technically have a parliamentary system in this country, but if Obama wins, I think we`ll have essentially a de facto parliamentary system.

In parliamentary systems, the president is usually a figurehead who sells the state`s policies, and the prime minister makes the rules. And people forget, who cares about Obama`s plans? Congress makes the laws.

And Nancy Pelosi has had a very ambitious agenda. She`s going to have a huge -- potentially huge majority in the house, ditto in the Senate. And we could see Barack Obama being the face and the salesman for a Nancy Pelosi primeministership, which -- which I think would actually turn what is already looking like a very scary situation with these banks into a permanent situation where they would start using the banks as government by proxy.

BECK: Jonah...

GOLDBERG: As giant Fannie Maes and Freddie Macs.

BECK: Again, again, no way you -- any way you slice it, you are looking, if you -- especially if you don`t have enough Republicans in the House or the Senate, you are looking at a filibuster-proof seed of a dictatorship, of fascism. These people don`t necessarily see the country in the same way that the average American does.

And you`re not going to -- Ben, do you believe you could hold this country together with Pelosi`s policies being implemented, whether you like it or not, where there`s nobody to stop it, just rubber stamp and go, go, go, these kinds of policies? Do you think you could hold this country together without some sort of outcry that scares the living daylights out of me?

STEIN: There have been situations many times where the Democrats have controlled both the Congress and the White House. But what`s different this time is that they now control the finance system, as well. And that is a very scary thing.

They`re going to be having dictatorship, saying certain groups have to get loans, whether or not it`s economical; certain groups have to get loans, whether or not they have credit. Just what led to the last crisis, the one we`re going through now, there`s not going to be much restraint on this government at all.

BECK: Well, there`s not going to be -- I mean, look what`s happening -- look what`s happening with the labor unions. Right now, I mean, the labor unions -- I mean, people -- news is happening so fast. I look at the newspaper now, I`m overwhelmed every day.

I have four hours of national broadcast time between my radio and television. I still walk out with stuff that I`m like, "Oh, jeez, and that was so important I had to get to that." And I couldn`t get to it.

Jonah, fill me -- fill America in on what`s happening with the unions.

GOLDBERG: Well, that`s right. Basically, if the Democrats get in, one of the first priorities -- maybe their first priority -- will be this card check thing, which will basically getting rid of the secret ballot in unions.

When you want to talk about Don Corleone tactic then, basically you`ll have a bunch of thugs and a guy with a clipboard going around to individual guys, saying, "You want to be a member of the union, right?" And they`ll all sign up. And then we`re going to see the reborn labor movement, a lot of government unions, too, saying, "Hey, wait a second. We control these banks."

BECK: Right.

GOLDBERG: Why can`t these banks do things that we like?

BECK: And I tell you, ACORN is going to help set the agenda. Barack Obama said that at their own convention about a year ago, that he would bring them in and talk to them. And also, you know, we`ve got U.N. globalists now in -- in Congress.

Guys, thank you very much. We`ll talk again.

America, wake up.

Yes, we can; yes, we can. These kids are singing in a video. We know election tactics can get slimy, but dragging children into the political arena is a new low. And you know what`s great? It`s not just one of the candidates. It`s both. Our angry independent weighs in, next.

(NEWSBREAK)

(COMMERCIAL BREAK)

BECK: Having a child is a truly miraculous thing. Watching their first smile, their first step. Their first exploitation as a defenseless shill in a political campaign. Who could forget that one? Here with more is our -- is our own father of two, and angry independent, humorist and author Brian Sack.

Hello, Brian.

BRIAN SACK, HUMORIST: Hi, Glenn.

Glenn, like lots of folks, especially the independent ones with no particular party affiliation...

BECK: Yes.

SACK: I`m not really thrilled with the choice we`re being offered this election.

BECK: Really?

SACK: Right, yes. Now, the glass is neither half empty nor half full. It is, in fact, not a glass. It`s a mug. It`s a mug full of stink. But one thing is for certain, Glenn. Even if I was a wide-eyed Obama cheerleader or a lip-biting McCain supporter, the last thing I would do is force my mediocre choice on others by dressing up my child as a political billboard.

BECK: I see this.

SACK: I have two kids, OK?

BECK: Yes.

SACK: One`s in diapers and only says, "ba-ba." The other one sleeps with a stuffed duck. All right? I`m fairly certain that at this juncture neither of them have political opinions, and I`m definitely not about to force mine on them.

BECK: Very good.

SACK: In fact, Glenn, if they were to vote right now, one would vote for "baba," and the other I`m guessing would maybe vote for "duck." OK?

BECK: Good, good.

SACK: Maybe it`s the libertarian in me, Glenn, but until my kid begs for a Ron Paul tank top or something, I`m not going to force him to wear one.

BECK: Very good.

SACK: Why? Because regardless of party affiliation, using your kids to proselytize politics is in really poor taste. And if you don`t believe me, Glenn, here is a perfectly good example. Yes, classy. Photo-op (ph).

BECK: Are they saying the people that dress their kids up as...

SACK: It`s not good.

BECK: McCain or Obama supporter? I mean...

SACK: Glenn, how -- how appalled would you be if someone dug up a picture of you in a Jimmy Carter onesie? Right?

BECK: Very.

SACK: Exactly. It`s time we stopped using our kids to market our ridiculous political candidates. And I`m not just talking clothing, Glenn. Check out this appalling, awful, dreadful video that was posted on YouTube. It should make any thinking person`s skin crawl.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

BECK: Oh, I`ve seen this.

SACK: Yes.

BECK: This is so -- I mean, it`s so...

SACK: Creepy.

BECK: Yes. I don`t care who it`s for. It`s just so Hitler Youth- ish. Isn`t it?

SACK: It`s bizarre. And you know what, Glenn? The odds are really, really good that one day one of those kids is going to see this video and say, "Mom, Dad, you humiliated me and I hate you."

BECK: Well, they say that anyway.

SACK: Leave our kids alone. And that goes for you McCain folks, too, OK?

BECK: OK. All right.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I like McCain because he does not want to -- he does not want to raise taxes.

UNIDENTIFIED MALE: McCain, do you have any grandchildren? And do they like football?

UNIDENTIFIED FEMALE: He`s nice. And he`s smart. And he`s -- yes. That`s right.

UNIDENTIFIED MALE: I want to vote for John McCain because he`s a Republican, too.

(END VIDEO CLIP)

SACK: Oh, come on.

BECK: This is -- this is awful.

SACK: It`s terrible. So parents, idol worship all you want. Put the stickers on your car or wear the pins, but please, leave the kids out of it.

BECK: Oh, my gosh.

SACK: All -- we all know that they`ll do anything to prove -- that we tell them to, right?

BECK: Right.

SACK: OK. Here, I want to prove my point. Here`s a video I commissioned.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (singing): Communist, communist. On November for the communists. If you`re red, that`s OK. Just remember to vote OK.

UNIDENTIFIED MALE (singing): Communist, communist. On November for the communists. If you`re red, that`s OK. Just remember to vote OK.

UNIDENTIFIED FEMALE (singing): Communist, communist. On November for the communists. If you`re red, that`s OK. Just remember to vote OK.

UNIDENTIFIED MALE: Take it away, Mr. Pickles.

(END VIDEO CLIP)

SACK: Take it away, Mr. Pickles. All right?

BECK: What the hell was -- what was that?

So what age is appropriate to let your kids join campaigns?

SACK: Here`s a rule of thumb. If you can`t distinguish between Roe versus Wade and "Row, Row, Row Your Boat," keep them out of it.

BECK: Good safety tip. Thanks a lot, Brian.

Coming up, how can America rediscover its faith? Joel Osteen is coming up next.

(COMMERCIAL BREAK)

BECK: The word credit is defined as a belief for confidence in the truth of something or another. Lately it seems to me that confidence has been shaken to the core in this country. We`re questioning the truth that we`ve always taken for granted. Like the person that you lent money that, you know, I believe they`re going to pay me back. Or the government is going to stand behind their promises.

If you take a look at the front of a $1 bill, there`s a line right there in fine print that says, this note is legal tender for all debts, public and private. Have you ever really actually stopped and thought about what does that even mean?

It`s the government`s way of instilling confidence in giving you something to believe in. I mean, I don`t know about you, but if I go into Wal-Mart and I just scribble on a piece of scrap paper, and you know hey, I`m good for this, I don`t think Wal-Mart is going to really accept it. Why? Because of trust. They don`t know that I`m good for the money.

Right now as we struggle through a crisis in confidence, in trust, we realize that our lack of trust has now spread to the banks, to the corporations, to the government, to the politicians, everywhere. Who do we really trust anymore? Who do you trust? Do you trust our President? Trust the Congress? Our Treasury Secretary? Our Fed Chairman? Who do you listen to, and they go, oh, ok, I feel better now.

Do you trust that there`s enough gold in Fort Knox to back all the money that we`ve printed? I don`t. So again, I ask you, who are you putting your trust in to guide America safely through the storm? The answer to me, I came to this weekend, is really pretty simple. And you find it right in front of you. It`s in your pocket or your purse.

In 1861 the director of the Philadelphia Mint sent a letter to Pennsylvania Minister who was concerned about how future generations will look back at America if it were to collapse during the Civil War.

And he wrote, "Dear Sir. No nation can be strong except in the strength of God, or safe except in his defense. The trust of our people in God should be declared on our national coins."

And so it was. Now 147 years later, if you flip that $1 bill over, you`re going to see our official national motto of the United States of America. It`s printed there for all to see. "In God We Trust." Unfortunately I`m not sure that it`s true anymore. Is it?

I`m joined now by Joel Osteen, pastor of one of the largest and fastest growing congregations in the country at Lakewood Church in Houston, also the author of "Daily Readings for Becoming a Better You." And his wife Victoria Osteen, author of a brand-new book that just came out yesterday, "Love Your Life."

Thanks, guys.

We were talking before we went on the air that I thought about it this weekend. I was sitting in church and I live in a place where it`s all brokers, all people in the financial market. And that their world has been rocked.

And I thought, these people will hang on because their rock is God. It`s in their faith. It`s in something tangible. We have built our house, the house of this country, on sand. We have forgotten what`s true. Do you think?

JOEL OSTEEN, PASTOR, LAKEWOOD CHURCH, HOUSTON: Well it`s interesting. I never thought of it like that. But I do agree when you were talking just earlier just about the fact that, you know, if your faith is not in the right thing, you know, material things can come and go. But we have to come back to belief that God is still in control, and that that`s where our trust has to come from.

BECK: Right. But we`ve put -- I think so many people have made false Gods, and it is money. It`s our homes. It`s these gigantic mansions or the right car or the right job, or this. And they put their faith there. Or they`ve put their faith like so many of us have in a certain politician or a certain party and we feel betrayed by them and so we`ve lost that connection where we should.

And that boy, I tell you, your book has come out, Victoria, just at the right time about shoring your family back up. It`s kind of what we learned or we`re supposed to learn after September 11th.

VICTORIA OSTEEN, AUTHOR, "LOVE YOUR LIFE": Right.

BECK: Build your family. In today`s world when it`s under attack from every place, how do you do that?

V. OSTEEN: Well, I think it`s really important to bring it to your home first. Because it`s interesting that Joel and I can tell our children a lot of things, but unless they see it lived out in front of them, it`s kind of more is caught than taught.

And I think you`re right, you know a lot of times we put everything in our homes, our cars. But we need to really to put it in faith, our faith in God. And when we do that, we answer to him with our integrity, with our answers, with the way we conduct and live our lives.

So I think we may have kind of moved away from that. And we need to get back to that, even more.

BECK: Do you believe that -- and we`re talking not politics, but principles. I believe in the principle, because I failed most of my life, I`ve only been a success a few times in my life. I believe failure teaches you something. And it`s overcoming that failure that allows you to say, oh, I get it. And now I know who I am. And you can really blossom. You can grow.

J. OSTEEN: Yes. I agree 100 percent. You look back in the scripture, and many of the people that were some of the greatest, you know, that failed at times with their lives. I think through that failure God teaches us something, and we`d learn -- we can learn from every mistake.

BECK: But our politicians on both sides are telling us that we have to run in and save people from pain. God didn`t even save his own son from the pain. He suffered. And then he died. Suffering plays a role, an important role, doesn`t it?

J. OSTEEN: I think it does. I think it`s when your character is developed. I mean we`re on the mountain time and we don`t -- I don`t think that`s a time that we necessarily grow and learn as much as when we`re going through the difficult times. So I think, I mean -- I definitely think that`s true.

BECK: Victoria, do you think people have said for so long, you know, they look at politicians, and they`ll say, oh, private life doesn`t matter. I mean, geez, over and over and over again, and we just seem to be going down this path over and over and over again.

Why does private life matter? Why does your family life matter? What does your personal -- what happens in your private life? Or does it?

V. OSTEEN: Well, I definitely think so. I think that how you conduct yourself at home is how you`re going to naturally conduct yourself outside of your home. I mean, I don`t think you can be two different people. I think that sends a real confusion in your home, in your family.

And it really sends confusion into the people you`re trying to lead, or your example. So I think one of the greatest things we can do is lead by example. You can`t change anything unless you`re willing to lead that way and live that way.

BECK: Do you think there`s a shortage of -- I mean people fly from all over the world to maybe go to talk to you and try to become a leader. Do you think there`s a shortage of leaders right now? Why haven`t we seen somebody just pop through that is -- that breaks the mold of everything? I think both of these guys have tried to do that, but in the end we see, well, you`re both kind of like that. Why are we -- why do we have a shortage of that?

J. OSTEEN: I don`t know if I know the answer to that, Glenn. I do see new leaders, new young people rising up that do have integrity, that do have the right qualities.

But I don`t know, sometimes it seems like it`s magnified, especially with the economic crisis that we`re seeing a lot of people that seem like they didn`t have integrity. But I do think that they`re out there.

BECK: I think, you know, I think most of America is like that. I think most of America has -- they know what they believe and they have profound integrity, and they care about something.

J. OSTEEN: Sure.

BECK: And they know who they serve.

But in Washington, I saw myself, or thought myself as watching Sarah Palin, and they were making fun that she was wearing red shoes and they`re like, well, it`s like the ruby slippers. And I`m like, you`re darn right, she`s clicking those things and saying, I want to go home.

I mean, it`s almost like you feel like you could lose your soul there. I mean, you`ve got so much -- well, if you don`t mind me saying -- how many pastors that have been in your position, that are as famous and as powerful, if you will, as wealthy as you are, hold it together, don`t lose it in self-destruction? You know what I mean?

You guys, Billy Graham, there`s a couple of others. But that`s pretty much it; power and money really corrupt. How do you stop that from being such a corrosive force?

J. OSTEEN: I think it starts in your private life. I think you have to, you know, to me, I have to get up every morning and search my own heart and say, am I on the right course. Am I making decisions for the right motives? Am I just wanting to serve myself and do I really feel like I`m really doing what the Lord wants me to do.

So I think it starts in your private life. Because it`s easy to get caught up with all the people coming up to you, or the opportunity and things like that, and I think you have to come back to ground zero and say, you know what, I`ve got to stay focused and have integrity in my heart.

BECK: Have you ever had that problem, Victoria? I mean, is it a struggle for you guys?

V. OSTEEN: I don`t think so. And you know what we -- our true mission is to help people. And it doesn`t really matter about the money, or if we were speaking to four people or 40,000 people. The truth is, I think that -- I think we get it right when we realize, what is our purpose and what`s our real aim and goal here.

And I think there`s a lot of great public servants out there. And I just think that that`s what you`ve got to do. You`ve got to say, I`m here to just make this world a better place. And I think when you do that, somehow things begin to take hold for you. You begin to find your purpose and you`re being and love what you`re doing.

J. OSTEEN: You know what if I could say one thing, Glenn. I feel like I had an advantage, Victoria did too in one sense. Because I saw it modeled with my parents. And again, getting back to starting in the home; I think that`s so important. Because I saw my dad had integrity all those years.

I mean he might not have been as well known as I am, I saw him people offering him business deals. And he said, you know what, that`s not my calling. He`s going to stand his one.

And he was very focused and he was very -- integrity meant everything to him. There`s something about when you`re raised like that, I believe it can get on the inside. I believe it does, it gets in your DNA. And I think that`s why it`s so important. Because the copout is to say, well, I didn`t have that. Nobody modeled it.

But you`ve got to start it for your own family now. And I believe you can do that if you have the desire. I believe God will help you.

BECK: Great ok. We`re going to spend an hour with you guys. It will be next Friday. You don`t want to miss that. Also, by the way, this coming Friday is an hour you don`t want to miss with Peggy Noonan. Don`t miss it. It`s a powerful, powerful hour on hope in America.

Coming up, growing up discontent through America, does lead to action by fringe radical groups. Scary details. Thank goodness somebody`s watching this, next.

RICHELLE CAREY, HEADLINE NEWS CORRESPONDENT: Richelle Carey here and this is your "Headline Prime News Break."

The final presidential debate is less than 90 minutes away; it`s being held in New York`s Hofstra University. Some analysts say tonight is crucial for John McCain, because Barack Obama is pulling ahead of him in the polls. This time the candidates will be seated at a table with moderator Bob Schieffer. The economy will likely dominate the discussion.

Nancy Reagan is in the hospital with a broken pelvis. The former First Lady fell last week at her home. Doctors want to keep her at the hospital for a few days, but say she won`t need surgery. Earlier this year the 87-year-old was hospitalized for two days after another fall.

And for the first time in four days the San Fernando Valley in California is largely smoke-free. Evacuation orders for two big fire areas have been lifted. But firefighters are still battling the Porter Ranch Fire which has already burned more than 13,000 acres.

Keep it here. And thanks for watching.

I`m Richelle Carey.

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BECK: I know we have an awful lot of problems going with our financial market, but that is just one piece of what I`ve been telling you about for the last couple of years called the Perfect Storm. And one other piece of that Perfect Storm that has come across our shores is "disenfranchisement." And according to a new ABC/"Washington Post" poll, Americans` satisfaction with the direction of our country is at a 35-year low.

A full 90 percent of us think our country is moving in the wrong direction. I don`t care if that`s left or right. I agree. But most of those people that agree with that statement seem downright giddy compared to the members of cranky domestic militias.

I have been monitoring these, I have people on my staff that monitor the websites and the activities of these groups. And other government officials also do it. And they say they`re dangerous groups. And the chatter on their blogs is on the rise. As fringe and isolated as these home-grown terrorists may seem, people like Timothy McVeigh have taught us that their potential threat can`t be ignored.

David Cid is deputy director of the Memorial Institute for the Prevention of Terror and Former FBI counterterrorism specialist, David, the disenfranchised, I mean, many of us feel like we are -- we`re moving in the wrong direction. That`s 90 percent. What would you say, five percent of that 90, three percent of that 90 is actually somebody that might be somebody to really keep your eye on?

DAVID CID, MEMORIAL INSTITUTE FOR THE PREVENTION OF TERROR: It`s difficult to put a percentage on it, Glenn. But it`s a fringe. It`s a very small element but a dangerous one nonetheless.

BECK: Ok, when you say it`s a small element, I do believe that it is a small element. But I believe that we`re headed towards times where just like people in Muslim countries will say, you know what, I don`t agree with the terrorists. I don`t agree. But I understand them. I think we`re coming to a time where people are so disenfranchised they see that their government is moving in a way that they are completely and radically against.

You add real hunger and unemployment to this mix, it`s a cocktail that is extraordinarily dangerous, isn`t it?

CID: It is and that kind of atmosphere encourages the radical elements of a group to take leadership positions, to capture the agenda. And what you see is more of a tendency toward violence. So it is quite dangerous.

BECK: Ok so now you have a tendency -- because it really only takes one person. This is the worst scene in my book at least.

You have a Timothy McVeigh. And then you have a government who says, holy cow, in these circumstances we`ve got to crack down. They tried to do this. Bill Clinton tried to shut down talk radio for the Timothy McVeigh thing. In this atmosphere, they could try to take away guns, et cetera, et cetera. Free speech, imposed martial law. And then what happens?

CID: Well, I think we`re a long way from that unfortunate eventuality. But the tendency and the trend would certainly move in that direction.

BECK: But do you think -- I mean you say that we`re a long way away from that. But you have -- remember, I think it only takes one person. Chavez has been calling for a revolution here in our own country.

CID: He has. But what they don`t have in Venezuela that we have is a strong tradition of democracy and free speech. And I think the resiliency of the American people and their adherence to the principles of our constitution, no matter how much we may disagree on the fringes, will be our defense against that.

BECK: What are you seeing on the actual blogs? What are people saying?

CID: Well, they`re talking about using violence to further their political agenda. They`re talking about who the true patriots are. And that`s, of course, them. They`re talking about expecting the government to take away their guns and their rights.

And this kind of atmosphere, as you point out, is conducive to encouraging that fringe to commit violent acts.

BECK: I tell you, America, please, I`m begging of you, we are in such dangerous, dangerous times. Please, everybody, keep your wits about you. But the problem here that I see, David, is, you know, we have the government monitoring, and they`re watching people.

But you know what? A lot of people, it`s like the bailout, a lot of people, they say, oh, well, we need to have oversight. Well, I don`t trust the people who are doing oversight when it comes to the finances. Who are the people here that are doing the oversight on, you know, fringe element groups?

CID: Well, the primary organization, of course, within our borders is the FBI. And they spend a great deal of time and energy and mine and your tax dollars --

BECK: Do you believe they could be influenced by political agendas? Do you believe the evil Republicans or the evil Democrats could ever influence them enough to be able to move in a certain direction because of a -- of a group`s stance?

CID: Glenn, I worked in the FBI for 21 years. And I never met anyone who didn`t have their first loyalty to the American people and to the Constitution. Could it happen? Of course, is it likely? No.

BECK: God bless you. David, thank you very much. We hope to see you again. And please bring us any news that you see developing.

CID: Thank you, Glenn.

BECK: We`ll be back in just a minute.

(COMMERCIAL BREAK)

BECK: You know, if you watch this show, you are very well aware we live in difficult and challenging times. And I know I can`t shut up about it because I feel compelled to tell you about it. And it seems like most people have an overwhelming feeling of uncertainty right now, whether it`s about the economy or one of the other five dozen things that are possible catastrophes that we`re facing at the moment.

But this is the time that we as Americans show what we`re really made of. It might not seem like it, but actually, I`m an optimist. You know in the long-term at least right now, I believe in this country, I believe in our founding principles, I believe in you, I believe in the people of America. We are able to walk through any storm.

We just have to remember what kind of people we truly are.

I was -- I`ve been called insane for many times, rightfully so on this one, but some very smart people who run some of the businesses around here, when I decided to go ahead with my Christmas tour this year. It is by far the most expensive and most complicated thing I have ever done in my entire life.

Why would I be planning something like that in the middle of the economic problems that I knew were coming over a year ago? Hmmm, good people ask me that question. And as bizarre as it sounds, it actually made me want to do it even more because the message now is more important than ever.

It is called "The Christmas Sweater," and it is a story of hope and redemption and atonement. It is the story of everything that is real; everything that we need to base our life on.

And besides being the riskiest thing I`ve ever done, it is also the most honest thing I`ve ever done. And we have -- we`ve dumped money into this thing, and honestly, I`m fine with losing every single dollar of it, if that`s what it comes to.

I believe in this message, and I believe there`s one person out there that needs to hear it. And I wasn`t going to do it any other way than the right way.

That`s why we have a full orchestra, a brand-new music for it. And we have on animator, of gospel singer. This animator has done work for Disney and he animated the background of this. The whole thing is like a living movie. You`ve never seen anything like it. It`s message is the message that helped me put my life into perspective and I think it`s something of value for you and your family and your spirit.

It`s called "The Christmas Sweater," it`s a live stage tour and starts in Pittsburgh on November 29th, right after the Thanksgiving, then St. Louis, Tampa, Salt Lake City, Boise, and for the first time ever in Seattle, Tulsa, Cleveland, Philadelphia and we wrap it up in Charleston, South Carolina on December 17th. It is unlike anything you`ve seen on this television show or heard on my radio program.

Quite honestly, I believe it`s the most important thing I`ve ever done in my life. Go find all the details now at glennbeck.com. I`d like you to join me for it.

From New York. Good night, America.

END