Guest:Leon Panetta
The Factor went right to the extended interview with Former Secretary of Defense Leon Panetta, whose new book details his experiences in the Obama administration. The conversation began with the president's decision to pull out all U.S. troops from Iraq.

O'REILLY: By not leaving U.S. troops in Iraq, President Obama committed a colossal blunder, did he not?
PANETTA: There's no question that maintaining a troop presence in Iraq so that we could continue the momentum towards trying to secure that country and try to hope that it could govern itself in the right way was, I think, a mistake.
O'REILLY: This was a colossal blunder that led to the deaths of tens of thousands of people. Did you pound the table, or were you diplomatic?
PANETTA: I think we made a very strong case that we had to maintain at least ten-thousand troops.
O'REILLY: Have you ever heard Barack Obama say, I was wrong, I made a mistake?
PANETTA: I've heard him admit to mistakes. The real question is whether or not you learn from those lessons and then do the right thing ... He certainly has learned the importance of now taking on ISIS ... and he now has made it very clear that we ought to maintain ten-thousand troops in Afghanistan.
O'REILLY: The big picture is that the Obama administration doesn't know what the deuce is going on.
PANETTA: The big picture is that this is a president who wants to do the right thing for the country. The real question is whether or not he's willing to fight to get that done.
O'REILLY: Do our enemies throughout the world fear us?
PANETTA: I think they're getting a mixed message as to whether or not the United States will stand by its word.
O'REILLY: I'm seeing a president who is either incapable or doesn't understand the dangers the United States faces. That's the message I'm getting from you.

Guest:Leon Panetta
In the second segment, the conversation turned to the terror attack on the U.S. facility in Benghazi.

O'REILLY: On the night of the attack you told President Obama you believed it was a terrorist attack. Is that correct?
PANETTA: I told the president that there was an attack going on in Benghazi ... I used the word "attack," that there was an attack by terrorists.
O'REILLY: Seven days after that, Susan Rice went out and said it was spontaneous. When you heard that, what went through your mind?
PANETTA: The only thing I could think of is that she was working from the talking points that the CIA had provided ... I thought those talking points were not on point.

Guest:Leon Panetta
In their final segment, The Factor and Leon Panetta talked about the state of America.

O'REILLY: Who is the better leader, Bill Clinton or Barack Obama?
PANETTA: They're both bright, they're both able, they both want to do what's right for their country. The difference is that Bill Clinton likes the engagement in politics, while Barack Obama does not like that process ... I think that hurts him in terms of getting things done ... (The Obama administration) has basically given up on things. They've given up on a budget deal, on immigration reform, on trade, on energy. That's what concerns me because this country can not stand another two years of stalemate.
O'REILLY: What is your primary concern about this country?
PANETTA: I am worried about whether our children are going to have the chance at a better life. You've got this tremendous dysfunction in Washington, there are a number of threats we are confronting abroad. We can either be a great country, an America in renaissance, or we can be an America in decline.
O'REILLY: We're in decline now. Is that a fair statement?
PANETTA: We govern either by leadership or crisis, and today we are governing largely by crisis.
O'REILLY: It's very possible that Barack Obama is just up to the job.
PANETTA: I want this president to be successful and I want this country to be successful, and I think deep down he knows what needs to be done. He has to develop the will to fight and get into the ring to make it happen.

Guest:Charles Krauthammer
The Factor invited Charles Krauthammer to evaluate the interview with Leon Panetta. "You did great and Panetta did great," Dr. K began, "but I'm afraid Barack Obama did not do very well. Panetta is a straight shooter, and the content of what he said was utterly devastating. He was basically saying this president can not lead, he is indecisive and weak. It's not just indecisiveness, but it's also how political he is. He knew we had to leave troops in Iraq, and that was one of the worst decisions made by this president. It came about because the political types in the White House wanted to go into 2012 saying there were no troops in Iraq. He put political and partisan concerns above the national security."

Guest:Dr. Bob Lahita
Dr. Bob Lahita, an expert on infectious disease, addressed the claim that an NBC cameraman contracted the disease in Liberia by washing a car in which an Ebola patient had died. "Hopefully he was masked," Lahita began, "and wore goggles and gloves and Tyvek suit. He probably didn't do that and we don't know what was in the car - vomit, diarrhea, maybe blood." Lahita also examined the case of a nurse in Spain who has been infected. "She had 15 years of experience and was presumably wearing the right clothing, but she got the disease nevertheless. It makes one wonder." The Factor again urged a ban on travel from countries where Ebola is rampant, saying, "I don't know why we have to admit anyone with a passport or visa from West Africa."

Guests:Kimberly Guilfoyle & Lis Wiehl
Legal analysts Lis Wiehl and Kimberly Guilfoyle scrutinized the chaotic situation involving thousands of illegal immigrants who are routinely failing to show up for hearings. "You're supposed to come back and report within fifteen days," Wiehl reported, "but 70% of them do not do that! Nothing happens, you just get another notice. There's no penalty." Guilfoyle turned to Virginia, where the state attorney general is refusing to enforce statutory rape laws for some underage girls. "He's saying that they don't need to make a report of 'carnal knowledge' for girls between 13 and 15 years old," Guilfoyle said. "This is not law, it's an opinion he is giving. There's no obligation on the part of nurses and caretakers when they see that in the state of Virginia." The Factor concluded, "Attorney General Mark Herring is a disgrace, it is now open season on young girls in Virginia."

Robert Hedenberg, Sebring, FL: "Bill, you are extremely naive or very stupid when talking about Muslims. There is no such thing as a moderate Muslim."

Martin Fabry, Craig, AK: "Bill, you were spot on with your analysis of the jihad, fanatical Muslims and non-violent working class Muslims. You may need to do a book on it."

Anne Marie Miller, Colorado Springs, CO: "Bill, not all of us here are potheads. I like Watters but it's insulting for him to just interview idiots."

Fox News, celebrating its 18th birthday this week, continues to rack up record ratings. The day's tip is actually a thank you to all the loyal viewers who have made FNC #1.