updated 7/12/2010 9:45:58 AM ET 2010-07-12T13:45:58

THE ED SHOW

July 8, 2010

THIS IS A RUSH TRANSCRIPT.

THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

 

Guests: Phoebe Sweet, Heidi Harris, John Harwood, Chris Kofinis, Joe

Madison, Scott Hennen, Jon Weinbach, Lizz Winstead

ED SCHULTZ, HOST: Good evening, Americans, and welcome to THE ED SHOW tonight from Minneapolis.

These stories are hitting "My Hot Buttons" tonight and on the table. A couple of dandies, too.

Sharron Angle, she plays the gender card. She seems to think Harry Reid's campaign is picking on her because she's a woman.

My commentary on her latest crazy interview in just a moment.

Plus, Glenn Beck University is open for business, but I'm giving the dean himself an F for spelling. We're dusting off the chalkboard in "Club Ed" tonight.

And Tom Tancredo.

You know, I hope you're watching, Tom. You told me that you wanted to in "Psycho Talk." Well, you're going to get your wish tonight, buddy.

His latest comments about President Obama sends the former congressional member right into the "Zone."

But this is the story that has me fired up first tonight.

Harry Reid's political career is hanging in the balance by, I guess you could say, by a thread. And really, there's really one person who can help Harry Reid and save them, and that's "Psycho Talker" Sharron Angle. And believe me, she has been serving up some real material lately.

But now the Republican Tea Party favorite is playing the gender card. This is how Sharron Angle put it on Heidi Harris' radio show --

(BEGIN AUDIO CLIP)

SHARRON ANGLE ®, NEVADA SENATE CANDIDATE: You know, isolate that Sharron Angle, marginalize her, and then demonize her. And he has been doing that to me.

And what we need to do is say, you know, Harry, it's not going to do you any good to hit the girl. Start talking about the issues.

(END AUDIO CLIP)

SCHULTZ: "Hit the girl." You know, Republicans, they just are fabulous on a play on words, and they love to play the victim. And Angle is doing her best to make it look like Harry Reid is an abuser.

She's all hot under the collar because the senator from Nevada has been posting her alleged former positions online. Angle, of course is, trying to hide her Tea Party past. Now President Obama is even in the mix.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: On a lot of these issues, she favors an approach that's even more extreme than the Republicans we've got in Washington. That's saying something.

(APPLAUSE)

OBAMA: That is saying something. I mean, she wants to phase out and privatize Social Security and Medicare. Phase out and privatize it.

(END VIDEO CLIP)

SCHULTZ: I'm glad to see the president is taking it to Angle, but, of course, Harry Reid needs to fight his own fights. The Senate majority leader, it just seems to me like he is constantly playing defense.

Sharron Angle is a living, breathing example of what is wrong with the Republican Party. Reid needs told grab the bully pulpit, use his position, and just stop her right in her tracks. I mean, I've got to give Reid some credit for his new commercial.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Sharron Angle says it's not a senator's job to fight for jobs, that we're on our own.

ANGLE: People ask me what, are you going to do to develop jobs in your state? Well, that's not my job as a U.S. senator.

UNIDENTIFIED MALE: Not her job?

ANGLE: I am not in the business of creating jobs.

UNIDENTIFIED MALE: To me it seems like the only job Sharron Angle wants to fight for is hers.

(END VIDEO CLIP)

SCHULTZ: The job Harry Reid ought to be worried about is holding her accountable for all the "Psycho Talk" she's throwing out there.

Sharron Angle is a walking, talking gift, ,and I mean a gift to the Reid campaign and the Democrats. Just in the last couple of weeks, she's called BP's $20 billion escrow account a slush fund? She said that rape victims should make lemons into lemonade? And let's not forget this dandy about the unemployed --

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How would you have voted on that bill to extend unemployment benefits?

ANGLE: I would have voted no, because the truth about it is, is that they keep extending these unemployment benefits to the point where people are afraid to go out and get a job because the job doesn't pay as much as the unemployment benefit does.

(END VIDEO CLIP)

SCHULTZ: Now, does that sound like a candidate that has a grip on what's going on out there in America right now?

Come on, Harry. I mean, she is handing you this thing. And your silence is absolutely deafening.

Harry Reid should be screaming from the mountaintops about how radical Sharron Angle is and just how she doesn't know what the heck she's talking about, but he just keeps playing defense. There's no way in hell Sharron Angle should be anywhere near Harry Reid in the polls, and if he doesn't grab this moment and really run with it, you know, he's going down the path of Tom Daschle.

Could the Democrats lose another Democratic leader in the Senate by just being too coy and not aggressive enough? Who cares what she says, right? She has no credibility.

But Harry, you can get any microphone in this country on a national level and tell those folks-and there's 14 percent of the population in your state that is unemployed-tell them what the plan is. Instill some confidence in what's happening out there. And I just don't sense it. And that really is the big thing.

How are the Democrats going to motivate those people in this country who are unemployed, that have seen their benefits dry up, and now they're just going to fall prey to a bunch of lies because the Dems just aren't doing anything for them? And you can't run around saying well, it's the Republicans' fault. No.

There are ways that they can handle this, and this is going to be the big challenge, and the big challenge is going to be for Harry Reid to do that, and then, of course, to, go out and make the folks in his state believe that this health care bill is a great start to reform.

Get your cell phones out, folks. I want to know what you think about this.

Tonight's text survey question is: Are you satisfied with the leadership of Senator Harry Reid? Text "A" for yes, text "B" for no to 622639. We'll bring you the results later on in the show.

Joining me now is someone who is directly responsible for making the people of Nevada understand how psycho Sharron Angle is.

Phoebe Sweet is the communications director for the Nevada Democratic State Party.

Phoebe, good to have you with us tonight.

PHOEBE SWEET, COMMUNICATIONS DIRECTOR, NEVADA DEMOCRATIC STATE PARTY:

Thanks for having me.

SCHULTZ: Is Harry Reid-you bet. Is Harry Reid being aggressive enough in this campaign? What's the plan?

SWEET: Well, I think he is. What's going to be important in this campaign is to really draw a stark contrast between Senator Reid and Sharron Angle. And that's what we're working on doing.

I mean, on the one hand, you have Senator Reid, who every day is out there fighting for the jobs of Nevadans, fighting to create jobs and get our economy on track after eight years of disastrous Bus/Cheney economic policies. We know it's not going to happen overnight.

But the reality is, on the other hand, you have Sharron Angle who says it's not her job to create jobs, who calls the unemployed "spoiled," who says that extending unemployment benefits would be a terrible thing. Clearly, we have a contrast there, and on many, many other issues. She wants to kill Social Security and Medicare, and the list goes on.

SCHULTZ: But I've got to ask you, is Harry Reid being aggressive enough? I mean, you're reeling off all of the things that Sharron Angle says, but doesn't he have to be much more aggressive?

I mean, he seems nationally to be hanging really low and not spreading the

Democratic word nationally. I mean, he is really just focused on getting

re-elected. And it looks to me like the Democrats don't even have any

national leadership. That national leadership move that he could pull right now would help him in Nevada, I think.

Is he being aggressive enough?

SWEET: Well, Ed, I think it's hard to say that Harry Reid is not being aggressive enough when he's passed a health insurance reform bill that's benefiting millions and millions of Americans and will continue to benefit more every day, when he's passing Wall Street reform that will hold big banks accountable and end too big to fail.

You know, he's passing the policies that are helping to make this country better, to get our economy back on track, to create jobs. Yes, he's also fighting hard here at home, but he is working hard, in tandem with President Obama, to pass the Democratic policies that will turn this country around. And he's also talking to Nevada voters about why it is that they should re-elect him in November, and about the extreme and dangerous positions of his opponent.

SCHULTZ: Well, all right.

Now, the unemployment numbers in your state are not good. They're at 14 percent.

If half of these folks-if my math is right, if half of these folks turn on Harry Reid, or sit out, your candidate's in big trouble. Is that a fair statement?

SWEET: I think the reality is that as we've seen in several rallies over the last few weeks, unemployed Nevadans are rallying behind Senator Reid, and they will turn out in November to vote for him, because, frankly, they're offended by Sharron Angle's positions. They're offended that she thinks they're spoiled. And to say that they can do better on unemployment than they can going out to get an honest job, it's just not reality.

She's clearly out of touch with what it's like to be unemployed Nevadan. And Nevadans understand that Harry Reid is fighting to create jobs for them every day.

SCHULTZ: All right. Phoebe, great to have you with us tonight. I appreciate your time here on THE ED SHOW.

SWEET: Thanks for having me.

SCHULTZ: You bet.

For more, let's bring in Heidi Harris, radio talk show host, AM 720, KDWN in Las Vegas. Sharron Angle, of course, has dropped a couple of dandies in her interview with Heidi.

Heidi, let's talk about Harry Reid first. How is he playing in Nevada? I mean, the polls are very close right now. He might be behind by just a little bit. But, I mean, is there a real angst to oust of Harry Reid in the state of Nevada?

HEIDI HARRIS, RADIO TALK SHOW HOST: Oh, yeas, tons of people don't like him. And something that's interesting is that even in the primary election, 22 percent of the Democrats didn't vote for him. That's a big deal when you add the Republican who's don't like him, the Independents who could go either way and 22 percent of his own party voted either none of the above or for somebody else.

So, he is in real danger.

SCHULTZ: OK.

HARRIS: It's interesting, though. I was listening to you, your monologue before, and you were talking about how Harry is on the defense. It's interesting, because a lot of people think Sharron's on the defense and Harry's got her back on her heels. And you see it totally different.

I think that's interesting.

SCHULTZ: Well, I haven't seen Harry Reid do an interview nationally in I don't know how long.

HARRIS: Right.

SCHULTZ: It's like he's ashamed to be the Senate majority leader.

HARRIS: Well, that's right.

SCHULTZ: I just don't understand the strategy.

Now, you have to admit that Sharron Angle says some pretty off-the-wall stuff, and she has said some offensive stuff about those who are unemployed and looking for work in your state.

How is this playing in Nevada?

HARRIS: Well, I don't think people see her as bad as you do. I mean, Harry Reid said some off-the-wall things, calling the former president a loser and talking about the war being lost and all kinds of things. Harry Reid doesn't say a lot of good things either, which is one of the reasons to go back to your point about --

SCHULTZ: Well, wait a minute. Now, those two things are kind of true, aren't they?

We did lose billions of dollars in Iraq. We're no safer today than we were when we invaded the place. And I think that there's a lot of lefties out there that would agree with Harry Reid that the former president is a loser.

HARRIS: No, I think that may be true.

SCHULTZ: So, look at the economy. I mean, is Sharron Angle-I mean, is it the dislike for Harry Reid, or is it the fact that, gosh, she's just a fresh face and a fresh candidate that everybody is just so willing to support?

Which is it?

HARRIS: Well, he is very unpopular. That's the biggest issue. And there are a lot of people-and there are signs all over the state, especially in the rural areas, that say "Anybody but Reid." People driving around all over town with bumper stickers that say "Anybody but Reid."

So, there is a huge group of people who will do anything to get rid of Harry Reid. And then there are people who are hugely rabid fans of Sharron Angle.

So, you've got a lot of that to consider. And one of the reasons that he's not as available as you mentioned in some of these national interviews, or even local interviews, is because is he knows he's got no charisma. Nobody wants to hear from him. And the only thing he can do is run ads bashing Sharron because he knows people don't like him.

Last I checked, he had $17 million in the bank, and people still don't like him. I mean, you can't buy love, apparently. You can't buy popularity. So he knows he just needs to stay in the shadows and go after Sharron.

It's his only chance.

SCHULTZ: Well, some people do like him. Not everybody dislikes him. I mean, Harry has done some good things.

I just take issue with his strategy. Quiet candidates normally don't win. And I see a real parallel between what Tom Daschle did, who tried to turn it around late in the campaign, and what Harry Reid is doing right now.

Heidi, great to have you with us tonight. I appreciate your time.

HARRIS: Thank you.

SCHULTZ: It obviously is the race to watch in these midterms.

Coming up, President Obama was all business, no pleasure in Sin City today. He slammed the corporate sues who are ripping off the middle class. More on that in just a moment.

And Michael Steele is digging in his heels, but a top Republican says Steele, no longer his leader.

I'll get "Rapid Fire Response" on that one tonight.

And a former congressman says that President Obama is the greatest threat to our country and the greatest threat our country faces.

And "Daily Show" co-creator Lizz Winstead scolds-I mean rips-into "The Beckster" when she headlines "Club Ed" tonight.

You're watching THE ED SHOW on MSNBC. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW, and thanks for watching tonight.

The latest attack on President Obama is, well, he's just bad for business. Billionaire mogul Mort Zuckerman, who considered running for a Senate seat as a Republican this year, criticized the president's anti-Wall Street rhetoric on "MORNING JOE" this morning.

(BEGIN VIDEO CLIP)

MORT ZUCKERMAN, "U.S. NEWS & WORLD REPORT": We are not supporting those people, those unscrupulous, dishonest businessmen who are trying to rip off the middle class. No, no, no. We're going to help the other business people.

What is he talking about?

UNIDENTIFIED MALE: But that's rhetoric.

UNIDENTIFIED FEMALE: Wait a minute.

UNIDENTIFIED MALE: That's rhetoric.

ZUCKERMAN: You let me tell you, rhetoric is damn important when you want to make a long-term investment. You want to have a sense of confidence. This has been the most anti-business administration, and the whole business community feels it.

(END VIDEO CLIP)

SCHULTZ: Maybe Wall Street guys are just getting their feelings hurt by the president's rhetoric, but, folks, let me tell you, the numbers just don't lie.

The Dow is over 10,000. And first quarter profits were up 34 percent from last year. Is that a good thing?

Business is bouncing back from a recession that has definitely hurt some folks, but all signs are headed in the right direction. And it's going to take time. This is the worst recession we've had since the Great Depression.

For more, let me bring in John Harwood, CNBC chief Washington correspondent and a political writer for "The New York Times."

John, great to have you with us tonight.

This narrative that is developing against the Obama administration that they are "bad for business," what's the game plan for the White House to fight back on this?

JOHN HARWOOD, CHIEF WASHINGTON CORRESPONDENT, CNBC: Well, look, part of the White House argument is that these businessmen are really upset because of what's going to happen with their personal income tax rates when the Bush tax cuts expire at the end of 2010. I was talking to a senior administration official today who said a lot of this whining is cover for that will very personal effect.

I've got to tell you, you mentioned what's happened to the Dow. Nobody doubts that the financial system is more stable and better functioning now than it was when President Obama took office. I find it a little beyond belief, the whining that you hear from some of these people who ought to man up and recognize that Barack Obama was elected.

He is a liberal. He's not anti-business, but is he a liberal. He wants to change business regulation. He wants to change tax rates.

Live with it. That's who the American people voted for.

And they're complaining, they're withholding some of their donations. But it's a little bit surprising, the depth of feeling that some like Mort Zuckerman seem to be expressing.

SCHULTZ: Well, he's hot under the collar, and a lot of rich people are. But the fact is, those of us in the small business community who have got to meet payroll know doggoned well that this administration has been very good for small business. They do have an agenda.

They are focusing now on more international trade. They're trying to put an emphasis on that. Exports are up from a year ago.

They've also rejected calls to nationalize the banks, which, of course, Wall Street was all about that. And the Recovery Act business benefits, I mean, come on, the tax credits, the incentives, the health care bill, no matter how you slice it, has been good for small business.

But the bottom line is, John, I mean, the White House is just going to have to go out and pound this case to the middle class. Or am I wrong on that?

HARWOOD: Well, they're doing both. You know, the president did talk about his trade agenda this week. That's something that business executives agree with him on.

The administration hasn't done very much on trade, so there's a legitimate question as to whether it's just rhetoric. But they are offering the idea that they're going to finish the South Korea trade deal by the end of the year when the president goes there.

But the president's got that mixed message. He's out on the campaign trail, and saying yes, we're changing financial regulation; yes, we are calling out some of the financial practices that got us into the mess. And to be fair, a lot of people got us into the mess, including average American homeowners. But they're making the point that new rules of the road, a sounder financial system, a sounder auto industry are all things that can be seen as pro-business, and we are in a recovery right now.

SCHULTZ: Yes.

And finally, it's kind of catch 22. You run around the country saying that the recovery is doing well, but you've got 15 million people who are out of work. They really are going to be a big factor in the midterm, and the president and his administration is going to have to make the plea to them that thing will come around.

What do you think?

HARWOOD: There's no question about that, Ed. And it's also the case that some of the ins we've seen recently that the recovery may be faltering a little bit are strengthening the argument for doing more.

It will be interesting to see whether it strengthens the argument for stimulus on the fiscal side, but also whether it encourages those who want to resist the phase-out of those Bush tax cuts that the wealthy are concerned about. There is some economic argument.

Mark Zandy, who's been a consultant not just to the John McCain in the 2008 campaign, but to some of the House Democratic leadership, said last week they ought to phase in the increase in tax rates for the top end. That is a dynamic element of this debate as we go forward.

SCHULTZ: John Harwood, always a pleasure.

And we should point out that our friends to the north, they are recovering. The Canadians, in the month of June, added 93,000 jobs. Their economy seems to be turning around. So, it is happening, maybe not as fast as we want it, but it is happening.

Coming up, former congressional member Tom Tancredo thinks he knows what America's greatest threat is. Not terrorism, not al Qaeda. He says it's President Obama.

Wow. Well, of course that is definitely going to raise the "Psycho Talk" level to red. He's in the "Zone" next.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in "Psycho Talk" tonight, our old friend Tom Tancredo, former Colorado congressman, well, he made the cut. He gets his wish.

A few months ago, he came on this show and told me that he was just dying to get into "Psycho Talk."

(BEGIN VIDEO CLIP)

TOM TANCREDO ®, FMR. CONGRESSMAN: I am a little bit disappointed, Ed, I have to tell you, because I think Rush beats me out all the time on your "Psycho Talk" thing. I mean, what more can I say --

SCHULTZ: Well, I have to tell you, Tom --

TANCREDO: -- to get on there?

(END VIDEO CLIP)

SCHULTZ: Well, Tom, tonight is your night.

We have some serious "Psycho Talk" on deck from the former congressman.

Yesterday, Tancredo joined South Carolina Senator Jim DeMint at a campaign rally for a Colorado Senate candidate. Now, it takes, I think, a lot of work to out-crazy "Senator Waterloo," but Tancredo up to the job and the task.

(BEGIN VIDEO CLIP)

TANCREDO: I firmly believe this. It's not just, you know, sort of a dramatic statement that a person would make to get press or something, or ink. I believe this with all my heart, that the greatest threat to the United States today, the greatest threat to our liberty, the greatest threat to the Constitution of the United States, the greatest threat to our way of life, everything we believe in, the greatest threat to the country that was put together by the founding fathers, is the guy that is in the White House today.

(END VIDEO CLIP)

SCHULTZ: President Obama is the greatest threat we face? Even the guy that Tancredo was out stumping for, he doesn't support that. He backed away from it.

He told reporters he actually respected President Obama and said Tancredo "tends to exaggerate sometimes."

You think? That may be the understatement of the year.

Saying that President Obama is the greatest threat to America? Come on, Tom. But it does get you a ticket into the "Zone" with delusional "Psycho Talk."

Coming up, the Obama administration has a new motto. They're taking it from "Yes, we can" to "Yes, we did." I can't wait for righty reaction on that one.

And if you enrolled in Beck University, you not only need to get a hobby, but you really also deserve a refund. And I'll show you why.

All that, plus LeBron James' old boss just rips him a new one, tears him to shreds.

And "Daily Show" co-creator Lizz Winstead takes her shot at packing heat in church in "Club Ed."

You're watching THE ED SHOW on MSNBC. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT OF THE UNITED STATES: When he first told me he was a boxer, he said, Barack, I wasn't the fastest. I wasn't the hardest hitting. But I knew how to take a punch. He knew how to take a punch. And I think that tells you something about the kind of person he is, the kind of senator he is, the kind of senate majority leader he is. He is a fighter. And you should never bet against him.

(END VIDEO CLIP)

ED SCHULTZ, "THE ED SCHULTZ SHOW" HOST: Battleground story tonight. I guess it's fight night in Las Vegas. Harry Reid is on the ropes in Nevada in that senate race. President Obama stumped for him for a second day in a row making a campaign stop at UNLV this afternoon. President says, that Senator Reid is a fighter but you know what, I want to see him start throwing some real political punches and get more of national presses to coincide with the president's visit. The RNC is running this new ad for one day only across the state.

(BEGIN VIDEO CLIP)

ANNOUNCER: It took thousands of men to erect Hoover Dam and build modern Nevada but it only took two men to help tear down its economy. Barack Obama and Harry Reid. They've got bailouts, handouts and take over, giving us a $1.5 trillion deficit. A $13 trillion national debt, 14 percent unemployment for Nevada. When it comes to Nevada's economy, Obama and Reid are a bust.

(END VIDEO CLIP)

SCHULTZ: Joining me now is democratic strategist Chris Kofinis, former senior aide to John Edwards. Chris, great to have you on tonight.

CHRIS KOFINIS, DEMOCRATIC STRATEGIST: Thanks, Ed.

SCHULTZ: Pretty effective ad. I mean, I don't agree with it, but pretty effective ad. What's the counterpunch here? What do you think?

KOFINIS: Well, I mean, I think with Sharron Angle, I mean, there are so many places you can attack. I mean, there's a great narrative that you have to build against her, that she's extreme, she's out of touch with the mainstream and that she's dangerous to put into the U.S. senate because of the decisions she would make that would affect Nevadans. And so, I think you've got to do a couple of things in that state to kind of hit her back, if you will, and kind of minimize her impact. One, I think, you've got to frame her as an extreme candidate. The second thing is, I think, this is more kind of a false strategy, you got to get her out there to speak and defend her positions. She's going to go radio silent. The more she talks, the more she gets in trouble. The Reid campaign needs to, you know, be looking for multiple locations whether that's debates or forums to make her defend those radical views. They do that, she loses support.

SCHULTZ: Yes, the president, I believe this is his second trip out there to support Harry Reid and this trip is a two-dayer for him. Here's the president last night talking about the republicans and what they've been up against.

(BEGIN VIDEO CLIP)

OBAMA: For the last two years, Harry's been dealing with the do nothing republican leadership in the senate.

(APPLAUSE)

Just like Harry Truman. But despite all their tactics, despite all their political maneuvering, he's just been steady and we keep on making progress. He does not give up, he does not give in. He keeps on fighting and he outlasts them. And he's changed the landscape of America as a consequence.

(APPLAUSE)

(END VIDEO CLIP)

SCHULTZ: The do nothing republicans. That looks like it's going to be the line for the democrats across the country and play on the obstructionist tactics that they have thrown in front of the country time and time again. Chris, is that going to work? Are they forced to do that? What do you think?

KOFINIS: I mean, I think we're forced to do that to a point. I'm not sure it's enough. You can't just simply make this a question about the republicans, you know, as basically do nothing because people realize they're not in power. I think, we need to go out there and make a very strong case as to why we had to make the decisions on the economy, on health care that we did. Why in basically the economic as well as the fiscal picture that republicans like to rail about, they're the ones that caused it. And so, I think part of this is, not just labeling the republicans as obstructionists but labeling them as the party that caused the very problems and can you only imagine had we done what republicans wanted, how much worse things would be.

SCHULTZ: You know who, has been the speaker in the real torch carrier for the progressive agenda the last couple of months? I mean, I really think the democrats have gone in a shell. And that they really haven't been out there selling their case to the American people. And I think that's Harry's job, whether he's in a tough fight or not in Nevada, the fact is he is the senate majority leader. He carries a big stick, but he is as coy as can be around the national media when it comes to one-on-one interviews or pleading the case. What do you make that or am to harsh?

KOFINIS: I think you're a little harsh. I mean, it's not just Senator Reid's responsibility to be frank about it. I think, it's every democrats' responsibility. You're not going to change the national dynamics, let alone the dynamics you face in your particular race. You know, simply by one person whether that's Senator Reid or even President Obama doing it alone. I think we need to have a much tighter stronger message going into the fall about what we did and what we are going to do and why that is best for the country and hard-working families. And the converse to that is make a very strong case and frame the republicans not simply as just do nothing but as dangerous to the future of this country. And because here is I think the real challenge, Ed. You know, the American people are really frustrated, really angry at both parties. But they haven't left us yet.

SCHULTZ: Well, they are also unemployed.

KOFINIS: Well, yes, but I'll tell you, but there's still an opportunity there for to us make the case.

SCHULTZ: All right. Chris, great to have you on. I appreciate it so much.

KOFINIS: Thanks, Ed.

SCHULTZ: Now, let's get some rapid fire responsibilities from our panel on these stories tonight. A top GOP congressman says, Michael Steele is not his leader. That comes right after Steele told republican activists at the ideas conference that, quote, "I am not going anywhere."

A legal fund to defend Arizona's harsh anti-immigration law from the Justice Department lawsuit. I'll tell you what, they are raking in the dollars. People have donated more than a half a million dollars to defend the law and most of the money is coming from out of state.

And as we head into the midterms, the Obama White House is changing its slogan from yes we can to yes we did. They got it done on the recovery act, health care reform and financial regulation. If you love all those things.

With us tonight, Joe Madison, radio talk show host on XM satellite

radio and Scott Hennen, conservative talk show host, out of the middle of

the country. Good old Fargo, North Dakota. All right, fellows. Let's go

to this one first. Mr. Steele, he's not giving up, Joe. What do you make

is he capable at this point to mount the charge for the republicans and lead the pack into the midterms? What do you think, or has he been tarnished?

JOE MADISON, SIRIUS XM RADIO HOST: Oh, he's obviously been tarnished. The reality is he has six months to go. He was elected. It took two rounds to get him elected. He may not be their leader but he is their duly elected legal chair. The bottom line is that the Republican Party in my opinion, that's their problem. They are leaderless. No, let me correct that. They do have leaders. They're demagogues. Rush Limbaugh, Glenn Beck. These are their leaders. They are a party on the verge of being hijacked by either Tea Party people, demagogue type talk show hosts. They have conflicts between Cantor and Boehner. There are conflicts between Graham and the Tea Party. So, these folks are leaderless. You know what? Jesus Christ couldn't lead the Republican Party right now.

SCHULTZ: All right. Well, Congressman Issa, he had this to say about, I mean, I feel very strongly that he is not my leader. He does not make policy for me. Scott Hennen, how do you read this from the middle of the country? Who is the leader of the Republican Party right now and what do you make Steele's position saying, he is not go anywhere?

SCOTT HENNEN, RADIO SHOW HOST: Well, I don't think he is. Unfortunately, I think he should and there's actually some republican leaders would like him just to shut it right now. There's plenty to criticize President Obama's commander in chief about but to suggest that the war in Afghanistan can't be won when Harry Reid said the war in Iraq we criticize that had. We should criticize Michael Steele when he speaks, you know, the way did he about Afghanistan on that effort because it was psycho talk, Ed, to use one of your terms. But the bottom line is this, there are plenty of things to criticize Barack Obama on Afghanistan about. Not the least of which is this ridiculous deadline of July of next year to have the troops out and retreat. So, I wish Michael Steele would focus on that rather than things that he's off base on.

SCHULTZ: But Scott, who is the leader of the Republican Party? I mean, who does the Republican Party turn to now for leadership.

HENNEN: The people, the people. I mean, the people. The grassroots of America, this renaissance where people are saying, we want our country back, we want the constitution followed. Joe talks about demagogues, the demagogues in chief right now is Barack Obama. Gone is the soaring rhetoric of the '08 campaign and hope and change. He's talking about snake oil on this stump. He's talking about, you know, kind of back room basketball ballroom tactics. I mean, he's the demagoguer in chief.

SCHULTZ: All right. Joe, got to have you respond to that.

MADISON: There's no need to fall for that kind of bait. The reality is, his slogan is right. They got things done and the party that is blocking the way, on extension of unemployment, you're looking at a man when he first took office, he gave women equal pay rights. I mean, look, the record is there. And the people can judge in the midterm election. So, I'm not going to fall for the name calling. It's not necessary. The republicans have serious problems with not one of them is capable, for example, of even standing up to Rush Limbaugh. Not one.

SCHULTZ: Joe, what do you make of the money that's flowing in to Arizona to fight the feds on this lawsuit? What do you think of that?

MADISON: Oh, I think that states certainly that hope that the state of Arizona wins on this one and it's their right. It's a free country and they're going to support the state of Arizona in the end though, I think quite honestly, the constitution is probably going to win out.

SCHULTZ: OK. So Scott, you think that this is all posturing by the democrats, I believe that's what you've been quoted as saying, that it's just a political move. But what is Eric Holder going to do, sue every state? I mean, obviously, this is, you know, the poll numbers show that America wants this law. And the money is starting to flow in. How do you think it shakes down?

HENNEN: Well, I'm glad the money is flowing in, and by the way, this people taking their harder money in the middle of tough economic times, something President Obama has not fixed, it's been a miserable failure on the economy and jobs and yet they're parting with their harder and money. Unlike the Obama administration was big on shakedown. This is people freely parting of their own funds, supporting the constitution of the United States to say hey, this state has the right to do that. And if the federal government can't defend the borders, then they want to see Arizona do that. And they're supporting that with their harder money. I think, it's fantastic. Meanwhile, their tax money is being extracted, so Eric Holder can go in there and take on the constitution. That's crazy.

SCHULTZ: All right. Joe Madison, Scott Hennen, great to have you guys with us tonight. Have a great weekend. Thanks so much.

MADISON: Thank you.

SCHULTZ: Coming up, LeBron James dropped a South Beach Bomb on Cleveland last night. What are the fans doing? Well, they're burning his jersey and his old boss called him a selfish coward? So much for the free market. I'll show you some outrageous reactions in my Playbook.

And this viral video is not just some kid goofing off. It's actually a commercial for the United States congressional candidate. We're going to have a field day with this one, folks. Stay with us. It's coming up on THE ED SHOW.

(COMMERCIAL BREAK)

SCHULTZ: And it's not too late to let us know what you think. Tonight's tech survey question is, are you satisfied with the leadership of Senator Harry Reid? Text A for yes, text B for no to 622639. Results coming up. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in my Playbook tonight, I guess you could call it the most over hyped decision ever made in sports. I mean, he played this to a T. LeBron James, OK, is going to South Beach, going to play for the Miami Heat, and the folks in Cleveland, the king has fallen off his thrown. Angry Cavalier fans burned LeBron James' jersey in the streets and the team's owner Dan Gilbert is really upset. He had some harsh words for the guy in an open letter to the fans. He called James a former hero and said, his decision was a cowardly betrayal? Gilbert also made the fans a very bold promise when he wrote, "I personally guarantee that the Cleveland Cavaliers will win an NBA championship before the self-titled former king wins one. This heartless and callus action can only serve as an anecdote to the so-called curse on Cleveland, Ohio?"

Now, I want to know how all of this rage is going to affect LeBron James' image. The kind of money he's making, he shouldn't be worried about it. But I guess the bottom line is here, loyalty in sports is out the window.

Joining me now is Jon Weinbach, he is the sports business reporter for AOL FanHouse. John, what do you make of this? This has got to a big coup for Miami. Heck, they got three big players, you go to Vegas right now, this is the team to beat the NBA. Big party down there I assume. What do you think?

JON WEINBACH, AOL FANHOUSE: That's pretty remarkable. You talk about Vegas, I spoke to one of the odds makers at Las Vegas sports consultants last night and they provide all the information for the casinos. The heats are a four to five favorite. I mean, they're a prohibitive favorite. You put 100 bucks down on the heat to win the title next year, you get 80 back in addition to your money. So, obviously, the smart money likes their chances. You know, this is just the continuation of you know, you could call it a tabloidization of sports. But, you know, this isn't really a surprise that LeBron made a huge deal out of it. I think, what is surprising is the level of vitriol that's being thrown at him in response to this change.

SCHULTZ: What do you make of the reaction of the owner whose franchise is worth $450 million? He doesn't have to worry about his next meal. You know, I mean, I just think that Dan Gilbert, isn't he just kind of overboard? I've never seen a sports owner be so aggressive and so upset after a move by a player.

WEINBACH: Yes, it is really-it's not a great show by him either. You know, the only thing that comes to mind that's even close to this for me was, you know, back in the '90s when Raiders owner Al Davis, when they were still in Los Angeles sort of went on a public attack against his star running back Marcus Allen. And Marcus hit back on Monday night football. And you had owner dispute with staff before, I mean, Mark Cuban and his head coach Don Nelson, you know, went to court and had a bitterly fought legal case about moneys that were owed to Nelson. But nothing this personal and frankly, this image sure, I mean, it's really unbecoming of a professional sports owner to kind of lay out like this, I mean, the news today, another company that Gilbert owns, fathead which does those posters, he prized the LeBron fathead at 1741 which is the year that Benedict Arnold was born. I mean, really kind of six point stuff here.

SCHULTZ: Well, I have to say, that is kind of innovative. Carrying it to a business level. Great to have you with us Jon. I appreciate your time tonight. A big coup for the Miami Heat, no doubt.

A couple of final pages in the Playbook tonight, Paul, the psychic octopus have picked Spain to win the World Cup. Paul, who lives in an aquarium in Germany has correctly predicted every game involving Germany including their semifinal lost to Spain. Spaniards watch the octopus make his final prediction to the World Cup on live television, he makes a pick by choosing the container to eat from. Two jars are set up with the flags in them. Whatever one he goes to is the one he picks.

This has to be one of the strangest stories I think I have ever done. But it's kind of interesting. Republican Florida State Representative Mike Weinstein is running for re-election and he might just have the campaign commercial of the year. It's hard to tell the difference between this thing and the early '90s music video. I'm just going to warn you, you know, how songs can stick in your head, it might happen here, so just wait a minute. Here it is.

(BEGIN VIDEO CLIP)

(MUSIC PLAYING)

Committed to a better education, looking out for the next generation, defending the institution, that is our great state's constitution, Mike, Mike, Mike Weinstein working hard for you and me.

(END VIDEO CLIP)

SCHULTZ: OK, that was Mike's son Scott singing and dancing in the video, he wrote and produced and directed the whole thing. Got to give my name for innovation. And finally, the spy swap is complete. Ten Russian spies arrested almost two weeks ago on espionage charges arrived back in the motherland early this morning. And moments ago, a plane carrying four spies released by the Russians landed at Dulles airport in Virginia. The United States and Russia worked out the deal in an attempt to put the spy scandal behind them.

Coming up, the Beckster has the audacity to launch his own university? Well, I don't think this guy even owns a dictionary. Spelling bee queen and daily show co-creator Lizz Winstead will do the grading in Club Ed in just a moment.

(COMMERCIAL BREAK)

SCHULTZ: It's Friday, that means it's time for Club Ed with Lizz Winstead, co-creator of the daily show. Liz, great to have you on board again tonight.

LIZZ WINSTEAD, COMEDIAN: Thank you, Ed.

SCHULTZ: You know, every time I see Sharron Angle, I think of you because I just wonder what Liz would say about this psycho talker. You have to have some response to this one.

WINSTEAD: Well, here's the deal, Ed. Finally, I just have to thank you for finally having Tom Tancredo in psycho talk rather than a guest. But as I was watching and I thought, can you imagine of Sharron Angle and Tom Tancredo had a baby, we would literally all have to move to Canada. But I don't understand Sharron Angle, sometimes.

SCHULTZ: What did you say? Those two together and that would be like almost like a new human race.

WINSTEAD: It would like Godzilla versus their baby. You know, it would be the next wave in that. But I think Sharon Angle, I think has some kind of hate threats, she can't stop herself from saying things that are just inexplicably awful. I mean, this latest thing, basically, if life gives you a dad that rapes you, make lemonade, really Sharron Angle, and Harry Reid, it's not a run away for him? It's so frightening that she exists and you got to remember, she was the same one that took over from the chicken lady.

SCHULTZ: Yes.

WINSTEAD: That's where we're at.

SCHULTZ: Yes, that's where we're at. All right. Glenn Beck now has a university. Should we attend?

(LAUGHTER)

WINSTEAD: Ed, it is-Glenn Beck is the least patriotic human being ever, because to display on a nightly basis, that much willful ignorance. It's crazy to have Glenn Beck University, and then, in your first, I guess it's class, you have misspelled words, he misspelled heroes, and he misspelled oligarchy. Does he think a black board has spell check? Is he that stupid? Because at some point I've really have no idea. I mean, what is on the curriculum at Glenn Beck University? Sharpies 101, Muslim, Fascism, Socialism, Intro II? I don't know. But here's what I do know, is that I wish I could get a t-shirt that just said, you know, Beck University. Putting the dick in valedictorian. This is what I want.

(LAUGHTER)

SCHULTZ: All right. Lizz Winstead, always a pleasure. I knew I could count on you for a good one tonight on that one.

WINSTEAD: Thanks, Ed.

SCHULTZ: Tonight in our tech survey, I asked you, are you satisfied with democratic leadership of Senator Harry Reid? Forty nine percent of you said yes, 51 percent of you said no. That's THE ED SHOW. I'm Ed Schultz. Be sure to check out CSPAN 2's book TV this Sunday at 3.m., I'll be talking about this book, "Killer Politics," it's a dandy. Have a great weekend. We'll see you Monday. "HARDBALL" with Chris Matthews starts right now here on the place for politics, MSNBC.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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