The Last Word   |  December 20, 2012

So what's Plan C for fiscal cliff?

House Speaker John Boehner was forced to pull his Plan B tax bill, but the White House says President Obama is still open to a big deal. MSNBC's Lawrence O'Donnell discusses with The Huffington Post's Ryan Grim.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> this is horrible. i'm angry and sad for the speaker.

>> white house press secretary said earlier today a big deal is still possible.

>> the president is ready right now to negotiate a compromise along the lines of the one he put forward. it is available it is a good deal and it is right here. the president of the united states barack obama has put it forward. it is a good fair deal and a balanced deal and they ought to continue to negotiate to try to continue continue to do something big for the american people .

>> what we saw there is jay carney to try to continue to win the public perception that the public is doing everything he can to solve this problem if necessary and the republicans are not. they are locked in some unmovable spot. saying this is horrible. it seems to me that as of tonight again, the president is still winning the public perception that he is trying harder than the republicans are to solve this problem. he makes it clear that he is eger that reach a deal. it has penetrated the public consciousness to be clear. the numbers are in the 6 0 to 70% range. but it has even penetrated the reason conference. dan burton as you played the last clip he is very clear of what will happen if we don't do something now and it looks clear that they are not going to do something now. they are going to get hammered for taking over the cliff and they are going to get whatever democrats can muster at that point. even democrats, recognize that the public perception is the one that you laid out.

>> now, we mepgsed that he thinks the president has gone too far in what he has offered john boehner . we talked about this last night on the program. the adjustment to the index it would reduce social security payments slightly and actually we did a piece last night that we had to do on our website where i think there was actually something of a scoop in him explaining something that he understood about that offer on the indexing of social security benefits.

>> i think, that when the president suggested it in his offer early this week, my understanding is that he shout and he and speaker boehner were just about done this is part of i can agree to this if the overall package looks like the following. as i understand it the speaker went back and talked to the republican leaders in the house and they pulled the rug out from under him. bob is saying, this is a modest way i believe of him saying the white house has told me that the democrats in you power checked on these kinds of policy, they would run it by him and my sense of what he was saying is, they were very, very, very close to a deal on monday and so the president used the final card to close the deal and that is after that is when john boehner discovered gep that this house was not going to back him on any deal with president.

>> yeah, i think that is right. bob is extremely well republicaned liberal policy thinker in this field and we have been rough on the president for offering this chain cpi. but if it turns out that he is able to offer this he backs away from it, moves to his own plan, falls on his face and then obama is able to then withdraw it again and say look, you had a chance to take this, i look reason arable to them to having offered it. you don't have a party to bring to the payabtable here and it is not going to be the tea party anymore. it is going to be nancy pelosi , you and 30 and 40 republicans and that is a completely different playing field and one that social security cuts don't need to be on the field for.

>> ryan grimm thank you for joining me.

>> thank you for having me.

>> coming up. joe biden got to work today reforming our gun laws and a republican gun opener will make the conservative case for an assault weapons ban . the mirror, they