This is a RUSH transcript from "The O'Reilly Factor," August 28, 2012. This copy may not be in its final form and may be updated.
Watch "The O'Reilly Factor" weeknights at 8 p.m. and 11 p.m. ET!
BILL O'REILLY: All right. We are back here in New York City with Crowley and Colmes. Colmes has got a brand new book, "Thank The Liberals for Saving America". I think, that was a little opposite of what John Kasich has said.
COLMES: All right, it's not exactly my message, no.
O'REILLY: But what struck me, Monica, was that the President's gaffe, and it was, I mean it's just absolutely -- "that you didn't build that," is now the slogan of the Romney campaign. Now, that's what it is.
CROWLEY: Yes and it actually has become the defining statement of this entire campaign now for both sides because it really was definitive of Obama's philosophy, his ideology and, in fact, the way he has governed over the last three and a half years. And, in fact, what he is going to govern on, going into this election.
O'REILLY: Do you see that as a political mistake.
COLMES: No. It's a complete misrepresentation because he's taken out of context --
O'REILLY: I know, in your opinion, it's a misrepresentation. But subtleties are not what the vote is about.
COLMES: I understand.
O'REILLY: The Republican Party has seized on this theme. So, in hindsight, would you cede that the way the President put it, was a mistake. It's going to hurt him.
COLMES: It would have been better if he had never said the words, "You didn't build that." But what they are not doing is showing what preceded it.
O'REILLY: Why would they.
COLMES: We just saw a clip that was taken totally out of context that the Republicans heavily edited to totally ignore what he said that put in context what he's actually saying.
O'REILLY: Look. They want to win. They're not going to put anything in context and neither are the democrats.
COLMES: Well, of course not. All right, but we just saw a misrepresentation of Obama's statement.
O'REILLY: Not really. Because the President has made it quite clear, I believe, that he favors a top down management from Washington. So, when you do that, what he says kind of makes consistent sense. Twenty seconds and I'll get to Colmes back.
CROWLEY: What he said when he blurted it out, which was unscripted -- by the way, it was off-prompter, is what he really believes. And this is how he's governed wealth redistribution, class warfare and really big government.
COLMES: If he didn't build that, Mitt Romney would have not been successful at Bain Capital without tax breaks, government help. Paul Ryan's family got government help. They all did it with help from the government.
And that's the point that Obama was trying to make, that government has helped these people become multimillionaires. Something they are totally ignoring.
O'REILLY: All right. Now, we're going to take a break. Crowley and Colmes will stick around. And we have plenty more ahead of us as we move along.
Content and Programming Copyright 2012 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2012 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.