Transcript: Sens. Jim Webb, D-Va., and Jon Kyl, R-Ariz.

VANDEN HEUVEL: But my last point is, I do think there is energy in the Republican Party in an interesting area, which is libertarianism. George Will, smile or not, but I do think Ron Paul is not the right messenger.

But it was surprising that before Obama took off that a lot of young people found in Ron Paul's message, again, not the right messenger. But that's where you may see the strength.

On the other hand, the demographic shifts in this country speak to what Steve Schmidt spoke to when he spoke in defense of gay marriage and the need for a party to accommodate and be a big tent and not self-marginalize, which it has done.

(CROSSTALK)

CHENEY: ... give me time to respond to this.

CHENEY: Look, at the end of the day, what the vice president is doing is not about politics. And it's fascinating and interesting for all of us who care about politics to make these analyses.

At the end of the day, what he's doing is standing up because he believes that this country is less safe if we dismantle these policies, and because he believes it's wrong for an administration to come in and prosecute...

(CROSSTALK)

STEPHANOPOULOS: ... helping the Republican Party?

CHENEY: Absolutely. No question.

CARVILLE: (inaudible) losing the next generation. And the generation coming up, the Republicans have all 32 percent of the young generation. The big problem that the party faces, and that's one of the reasons I think that people want to, 66-32 voted Obama over McCain in this election. That was -- even John Kerry carried younger voters.

As these younger voters come to the system, the Republican Party is going to have to think of a way -- I think that they will -- to address these voters and these concerns. Right now, they're not doing it. And, therefore, as a Democrat, I -- I wouldn't -- and it wouldn't be any good -- but I don't think anything that this vice president is going to say, maybe he doesn't think is political, but if you're a former vice president and you attack an incumbent president, it is by its nature political.

WILL: The secret of the Republican revival are the seeds sown by Democratic policies -- inflation and all the rest -- and I suggest that one day, "40 More Years" will be a title as memorable as the book titled "Dow 36,000."

(LAUGHTER)

CARVILLE: George, you and I won't be here for this.

(CROSSTALK)

STEPHANOPOULOS: Couple of minutes left, and I want to -- as George is selling your book for you, I want to talk about the president today. He's going to be going to Notre Dame, facing a lot of protests on campus, George, from those who say he shouldn't be honored in this way by a Catholic institution. WILL: Well, the wrong principle is to say that whenever a speaker speaks at a university, the university is necessarily endorsing what he says or what he stands for. No one wants that.

On the other hand, the question is not what Mr. Obama will say today, but what Notre Dame says by inviting him. It goes against the guidance issued in 2004 by the bishops, reaffirmed this week by the protests from Cardinal George of Chicago and Cardinal Dolan of New York, saying that on a matter this important, on abortion, it is wrong for a Catholic university to muddy its message, because inviting the president suggests that the issue is not all that important.

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