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Daniels says it's too early for what he calls "last rites" over the Perry campaign, and he notes that Perry hasn't been in the race for very long.
Daniels says people ought to cut Perry some slack and give him a little time.
Daniels also says he's worried that the party's nominee will end up playing it safe in light of President Barack Obama's political weakness, and merely campaign as a default option to Obama's re-election.
Daniels tells CNN's "State of the Union" that this strategy would miss the opportunity to have an in-depth discussion about government spending.
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