LETTERMAN: Let me ask you a question. In your guts, in your stomach – you're a smart, tough, savvy guy –

MCCAIN: Thank you. That'll be a commercial, coming to you soon.

LETTERMAN: If I were to run upstairs, wake you up in the midLETTERMANe of the night, and say, "John, is Sarah Palin really the woman to lead us through the next four, eight years? Through the next 9/11 attack?"

MCCAIN: Absolutely. She has inspired Americans. That's the thing we need. We need inspiration now. We need courage. We need to know that we're the greatest nation in the world. And we can come through this. I agree with your assessment of the way the world and this country is. And they need somebody they say – this, this is a person who is an inspiration to us. This is a person who has done so many things that are very unusual. So all I can tell you is that if you are looking for somebody, someone who is in the old boy network of Washington, many of whom have gotten us into this ditch to start with, then that's fine. But I think America is crying out for change. And she represents the kind of change that we need. Have we pretty well exhausted this topic?

LETTERMAN: No, no. I'm just getting started! Now she's also, she's the one, I think who says that Barack Obama pals around with terrorists. Has she in fact said that at rallies?

MCCAIN: I don't...yes. And he did. And refused to acknowledge the fact.

LETTERMAN: Who did he pal around with?

MCCAIN: William Ayers who said on 9/11 that he wished that he'd bombed more. OK? His wife was on the Top 10 of FBI's Most Wanted.

LETTERMAN: But this all took place…when he was active, Barack Obama was eight years old.

MCCAIN: Eight years old. And Mr. Ayers in 2001, September 11, 2001, said, "I wished I had bombed more." It's an unrep—

LETTERMAN: But what is that relationship?

MCCAIN: It's all we need to know. Senator Clinton said, "We need to know about the relationship." First he said he was just a guy in the neighborhood. And so it's a matter of trusting the word of someone.

LETTERMAN: I know. I know.

MCCAIN: That's all.

LETTERMAN: But you will also admit that we cannot really control who we interact with in our lives 100%.

MCCAIN: How long we interact with them and how we interact with them…But the point in this campaign is the economy, the economy and the economy.

LETTERMAN: But did you not have a relationship with Gordon Liddy?

MCCAIN: I met him, you know, I mean...

LETTERMAN: Didn't you attend a fund raiser at his house?

MCCAIN: Gordon Liddy's?

LETTERMAN: How about that Tina Fey?

MCCAIN: I know Gordon Liddy. He paid his debt. He went to prison, he paid his debt, as people do. I'm not in any way embarrassed to know Gordon Liddy. And his son, who is also a good friend and supporter of mine.

LETTERMAN: But you understand that the same case could be made of your relationship with him as being made with William Ayers.

MCCAIN: Everything about any relationship that I've had I will make completely open and give a complete accounting of. Senator Obama said that he was a guy who lived in the neighborhood. OK, it was more than that.

LETTERMAN: They served on a committee at one point.

MCCAIN: Yes, that gave $230,000 to ACORN which is now involved in what may be one of the great voter frauds in history. It could be. We need to know.

LETTERMAN: Are they double dating? Are they going to dinner? What are they doing? Are they driving cross country?

MCCAIN: Maybe going to Denny's. Who knows? The Grand Slam...

LETTERMAN: Now she said "pals around with terrorists." OK, so alright. Let's say we give her William Ayers. He was eight and William Ayers was 29. But they palled around.

MCCAIN: There's millions of word said in the campaign. Come on!

LETTERMAN: But that's where we live. In politics, isn't it?

MCCAIN: Millions of words. Yes indeed. Look, let's...

LETTERMAN: Let's talk about Tina Fey. Tremendous talent.

MCCAIN: Tremendous talent.

LETTERMAN: Now when that started, what was the reaction of the campaign? Ohhhh man? Or, Oh, this is great for us?

MCCAIN: Look, it's just part of the political scene. Tina Fey does a great job. Sarah Palin enjoys it. She understands it's part of what politics is all about. I notice that our friend Lorne Michaels is milking it for everything – you're gonna go on twice in a week. That's great.

LETTERMAN: Is she Sarah Palin going to be on the Saturday Night Live?

MCCAIN: I think she is, yes.

LETTERMAN: That's great. That's huge. That'll be enormous.

MCCAIN: That will probably get more of an audience than our debate did.

LETTERMAN: Now Sarah Palin, she helped the ticket immediately, didn't she? There was that huge boost after the convention.

MCCAIN: She still does. Look, we went to…where was it...Norfolk, Virginia. Virginia Beach, Virginia. 17,000 people show up. I mean, they're very enthusiastic. I mean, this person is a role model to lots of people. And I understand cynicism about it but I'm so proud of her.

LETTERMAN: Have people talked to you about taking her off the ticket? Did that ever happen?

MCCAIN: No. No.

LETTERMAN: Did people in the party ever mention that? Did you ever hear any discussion?

MCCAIN: No. Only those who were rejected.

LETTERMAN: Well, Senator, the campaign rolls on. You've got 19 more days, is that what it is?

MCCAIN: 19. Who's counting? Who's counting?

LETTERMAN: Thank you very much for showing up. Thanks for coming back.

MCCAIN: I thank you for having me back.

LETTERMAN: Good luck, Senator. John McCain, Ladies and Gentlemen.

See Also:
Video of McCain on Letterman
Letterman Rips McCain for Bailing on 'Late Show'