'This Week' Transcript: House Democratic Leader Nancy Pelosi, Rep. Peter King and Sen. Carl Levin

RADDATZ: Senator Levin, shouldn't there be some line? David Petraeus -- I know we're all talking about him as a great general -- he was the CIA director. Shouldn't there be some line where someone should resign and we say that's not acceptable?

LEVIN: The behavior is not acceptable. It's personally unacceptable behavior. But in terms of the public nature of it, there's no indication that there was a violation of our intelligence rules, that he divulged classified information to anybody. There's none of that. It's a very personal decision. I'm sorry that it came to that point, because I think we've lost somebody who really made a contribution and...

(CROSSTALK)

RADDATZ: I should point out this is not over. The CIA is also looking into this. But thanks to you both. And Chairman King will be answering the questions you submitted on Twitter later in the program. And when we come back in just two minutes, our exclusive interview with the powerful House Democratic leader, Nancy Pelosi, as talks begin to avoid the fiscal cliff. The word of the week is "constructive," but will we get a deal before it's too late? We'll be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

LENO: Well, we are getting closer and closer to this fiscal cliff everybody keeps talking about. Is there going to be huge military cutbacks? In fact, the Pentagon might have to lay off as many as 6,000 mistresses. That's what they're saying.

(UNKNOWN): We need to talk about the fiscal cliff, but I'm dying to ask you about this scandal, because it's all anyone's talking about.

COLBERT: Yeah! This sex scandal is all anyone in Washington can talk about. I wonder why the country's in financial ruin?

(END VIDEO CLIP)

RADDATZ: The late-night comedians had some fun with it, but that looming fiscal cliff is serious business. With taxes set to rise on all Americans starting January 1st, along with massive budget cuts, all of which could push the economy back into a recession.

On Friday, President Obama and congressional leaders sat down to start negotiations about how to avoid that cliff and came out sounding optimistic.

(BEGIN VIDEO CLIP)

BOEHNER: And I believe that we can do this and avert the fiscal cliff that's right in front of us today.

(END VIDEO CLIP)

RADDATZ: So on Friday, I went to the Capitol to ask House Democratic Leader Nancy Pelosi how realistic it is that we'll get a deal done.

(BEGIN VIDEOTAPE)

RADDATZ: Leader Pelosi, you all came out of the meeting with the president sounding pretty optimistic, pretty confident. But you've been there before. You said, in July of 2011, called your talks with the GOP about a grand bargain "constructive," saying you were optimistic that we could find a place where we can come together.

Obviously, those talks failed. So what's changed? And why do you believe this optimism after this meeting?

PELOSI: That was then. This is now. The urgency is so much greater. So I'm optimistic because I think it's very clear the American people expect and deserve and want to see us get this job done.

RADDATZ: Did anything that Speaker Boehner said make you optimistic? Was it just that urgency that you're talking about?

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