CLINTON: In other words, create a national market for insurance.

O'REILLY: Yes.

CLINTON: While you are saying we should create a state-by-state choice.

O'REILLY: No let the states regulate... you let them regulate what happens there but let everybody compete. And again your party doesn't want that.

CLINTON: Well, I did... I... that's one place where I agree with the Republicans.

O'REILLY: Yes I think you are going to have to defect here, Mr. Clinton. That's what I'm hearing here.

CLINTON: No, no.

O'REILLY: I think you might have to defect. And I'm an independent.

CLINTON: I'm for the individual mandate. That's the conservative position. The individual mandate but I do believe that insurance companies should be able to compete.

O'REILLY: Yes the business as you know they are going crazy. They don't want this, nobody wants it in the business community.

CLINTON: But nobody wants what they have been told about it and they... we have taken long enough to get through it but I think...

O'REILLY: It's not going to happen.

CLINTON: ...there is no reason we couldn't have... the idea that we have to spend 50 percent more than any other country on health care is nuts.

O'REILLY: I'm agreeing with you. Let it go into the free marketplace, you will drive it down.

Now I've got to give you a hard time on the border. Are you ready for a hard time on the border?

You took office '93 about four and a half million people coming across the border. You left office, seven million people a year coming across the border. Why couldn't you secure it?

CLINTON: Because the economy got better. It's a long border. We had a fence, you know in San Diego.

O'REILLY: And it worked?

CLINTON: It worked pretty well.

O'REILLY: Well, why didn't you put it in Brownsville all the way through?

CLINTON: Because, for one thing, back then even the Texas Republicans didn't want it...

O'REILLY: But you could have done it by executive order. Who cares what they want?

CLINTON: I don't know if I could ever not but nobody was upset about then. People are moving back and forth across the Rio Grande.

O'REILLY: I was upset.

CLINTON: I know you are but I think it's a mistake. If you really think we ought to build a whole fence it's the only way to secure it.

O'REILLY: And I do... I do think the federal government has let us down since 1984 in the sense they have not secured the southern border and they could have and they didn't.

Ok, Guantanamo Bay, do you close it?

CLINTON: I'm not sure that I know enough to know that.

O'REILLY: Come on you have been there.

CLINTON: But I... I would... I don't believe I would have ever opened it in the first place but I would like to see it closed.

O'REILLY: Really you wouldn't have opened it in the first place? Where are you going to put all these captured terrorists overseas? Where would have you put them?

CLINTON: Well, I think there are places they could be kept in America.

O'REILLY: But then as soon as they go on American soil they have the rights of the American people under the Constitution. And these are...

O'REILLY: That's not necessarily true. I have a big difference of opinion about what the law should be. I might have tried to change the law on that.

O'REILLY: Ok.

Today Vice President Biden said, actually it was printed today but he told "Newsweek" magazine the Taliban is not an enemy of the United States. And since you had to deal with the Taliban, training Al Qaeda before 9/11. You certainly know what the Taliban is all about. And I believe that the Vice President is wrong. Am I wrong?

CLINTON: Well I think... I don't know that they trained them but they certainly gave them safe haven.

O'REILLY: No doubt.

CLINTON: And they would give them safe haven again if they were free to operate in Afghanistan.

O'REILLY: Absolutely.