LETTERMAN: What do you think? Would you vote for Mitt Romney, sir?
O'REILLY: Yeah, I think I might. It depends.... on what he's going to run on, but he is the front-runner right now.
LETTERMAN: He's the front-runner?
O'REILLY: I believe so.
LETTERMAN: Now here we have a string of folks who could be considered candidates -- all work for your company, Fox News. Part-time governor Sarah Palin?
O'REILLY: Viable. She can raise the money.
LETTERMAN: Yes, but she's not going to. You and I both know she's not going to.
O'REILLY: She's not going to raise the money?
LETTERMAN: No, she can raise money. That's what she's good at, but she's not going to run.
O'REILLY: Why do you say that?
LETTERMAN: Because she knows, she went through a pretty ugly experience with John McCain. She knows that the second a person puts her hand on the Bible and takes the oath of office, the stock starts to drop. There's just nothing you can do about it.
O'REILLY: I disagree.
LETTERMAN: And her brand would be damaged.
O'REILLY: I disagree. I think Sarah Palin knows she can win some early primaries, she can raise the money...
LETTERMAN: ... no, not going to do it.
O'REILLY: And if she doesn't see some competition standing in the way, she might give it a go.
LETTERMAN: Believe me, I wish she would.
O'REILLY: Why do you wish she would?
LETTERMAN: Because I think it would be entertaining.
O'REILLY: Sure, absolutely true. Big ratings for you and me.
The exchange starts at the 2:00 minute mark: