updated 11/21/2011 2:03:19 PM ET 2011-11-21T19:03:19

Guests: Mary Kay Henry, Jesse LaGreca, Lena Taylor, Joan Walsh, Clint Van Zandt, Mike Papantonio, Lizz Winstead

ED SCHULTZ, HOST: Good evening, Americans. And welcome to THE ED
SHOW from New York.

Tonight, there is a new plan by the 99 percent movement to occupy
Congress. We`ll tell you all about it.

And breaking news out of Washington: Republicans say that they have a
new plan to fix income inequality in America. They want to make the rich
richer. And they wonder why the 99 percent movement is just getting
stronger?

This is THE ED SHOW -- let`s get to work.

(BEGIN VIDEOTAPE)

REP. PAUL RYAN (R), WISCONSIN: We deserve leaders who can tackle this
problem to give America a debt-free nation and prosperous economy.

SCHULTZ (voice-over): The brand new Republican plan to fix income
equality helps the rich and does nothing to help the poor. And lawmakers
are demeaning the 99 percent movement.

REP. PETER KING (R), NEW YORK: I don`t see why the media or anyone
took them seriously.

SCHULTZ: Tonight, SEIU President Mary Kay Henry gives us her first
interview since she was arrested protesting in New York.

And "Daily Kos" blogger Jesse LaGreca is here.

The marches continue tomorrow in Madison -- 30,000 or more are
expected at a Walker recall rally. We`re going live to the Badger State.

And Newt Gingrich has refused to appear on my show, but he`s still
teeing off on MSNBC.

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: I understand there are
places like MSNBC that are essentially the Obama re-election team.

SCHULTZ: Tonight, I`m swinging back.

(END VIDEOTAPE)

SCHULTZ: Good to have you with us tonight, folks. Thanks for joining
us.

In huge of support and strength by the 99 percent movement, Republican
have answered the cry of Americans fed up with income inequality. The GOP
solution? More tax cuts for the rich. That`s right.

House Budget Committee Chairman Paul Ryan revealed a 17-page report
called a "Deeper Look at Inequality". Ryan was responding to an
independent study by the Congressional Budget Office which supports the
central message of the 99 percenters.

The CBO report showed income of the top 1 percent grew by 275 percent
between the years 1979 and 2007. Now, you`ll see on that graph the much
flatter lines on the bottom of the chart show income growth for everyone
else.

So, it`s Ryan to the rescue, coming up with classics like this one.
The quote, "The share of the federal tax burden borne by the top 1 percent
increased dramatically." Ryan`s solution is so-called tax reform, "The
nation is long overdue for the kind of pro-growth tax reform that broadens
the base while lowering tax rates"? Give me a break.

Ryan wants to return to Reaganesque, Reagan era tax rates for the
wealthy at 28 percent or even better.

Make no mistake, about the meaning of broadening the base. Ryan is
talking about basically the 47 percent of Americans whose income is
currently too low to pay federal taxes the way the system is right now.
Ryan and the Republicans, you know what they want? They want those folks
to pay more.

Republicans aren`t just nervous about the message of the 99 percent
movement. They`re nervous about its continued strength, as demonstrated by
yesterday`s nationwide protests.

Republican Congressman Peter King trashed the movement again last
night.

(BEGIN VIDEO CLIP)

KING: To me, any group that wants to be taken seriously should not be
conducting itself that way. To me, there was absolutely nothing about them
that would resonate with the American people, there was no real message
coming from them, and to me, they were people living in their own filth. I
don`t see why the media or anyone took them seriously. To me, there was
nothing there that was resonant with Middle America, if you will.

(END VIDEO CLIP)

SCHULTZ: Well, obviously, King wasn`t playing close attention to
yesterday`s protest. He was regurgitating his own talking point.

Here`s what he said earlier in the week.

(BEGIN VIDEO CLIP)

KING: First of all, you try to listen to them and they make almost no
sense. These are people who are living in dirt, these are people who were
involved with drugs, there was violence, there was rape. You`re talking
about a small number of people.

(END VIDEO CLIP)

SCHULTZ: Oh, absolutely. They`re all scumbags, aren`t they, Peter?

We heard a similar talking point from Republican presidential
candidate Newt Gingrich last night.

(BEGIN VIDEO CLIP)

GINGRICH: And the question is, how many innocent people will be hurt,
how much innocent property will be destroyed, how much damage will they do
to the society at large?

(END VIDEO CLIP)

SCHULTZ: Oh, hell, there`s riots all over the place, you wouldn`t
believe it.

Even has-beens like Sarah Palin are getting in on the act, denigrating
the 99 percent movement and connecting the movement to President Obama.

(BEGIN VIDEO CLIP)

SARAH PALIN (R), FORMER ALASKA GOVERNOR: This is really getting out
of control, this Occupy Wall Street, these shenanigans. And yet, Barack
Obama has not taken the time to rein these folks in.

(END VIDEO CLIP)

SCHULTZ: But the movement is preparing for its next big step. A
coalition of labor and progressive groups is planning, here it is, occupy
Congress. Unions like the Service Employees International Union and the
Communication Workers of America will bus thousands of protesters to
Congress to congregate on the Capitol, December 5th through December 9th.

So, do you think the movement`s growing? Or is it dead like Bill
O`Reilly said in recent days? Which is a good thing in his opinion.

No. This is the tip of the iceberg, my friends.

Get your cell phones out. I want to know what you think.

Tonight`s question: Do Republicans mock the 99 percent movement at
their own peril? Text "A" for yes, text "B" for no to 622639. Our blog is
there for you waiting for a comment at Ed.MSNBC.com. We`ll have the
results later on in the show.

I`m joined tonight by Mary Kay Henry, international president of the
Service Employees International Union.

Great to have you with us. Well, this is --

MARY KAY HENRY, SEIU INTL. PRESIDENT: Good to be here.

SCHULTZ: You bet. This is big news. We`re going into a new phase.

Tell us about going to Washington. What`s the plan?

HENRY: Well, you know that last night was an expansion, Ed, and today
we are pushing signs out in every corner of the country that says "we are
the 99 percent," good jobs now, make Wall Street pay. So people are
putting it in their houses, their churches, their workplaces. And then,
tomorrow we`re doing community canvassing in neighborhoods and we`re
building to bringing people to Washington.

All across this country, people are saying we have the capacity as a
nation to get 15 million people back to work in good jobs in January.
People in Congress just need to make the tough decisions. The Republicans
need to decide to stop protecting the 1 percent, and get us back to work.

SCHULTZ: And, Mary Kay, how big is this effort going to be in
Washington? I mean, 30,000, 40,000, 50,000, and it`s from the 5th until
the 9th. I mean, is this going to be for a week?

HENRY: Yes. I don`t know how many people yet, Ed, but yesterday, 256
people took arrests at 300 different community actions that occurred. So,
it is beyond being able to count, because people have had enough.

And they are going to come, I believe, in droves, and we want to
symbolically say there are too many unemployed in this country. There`s
too much injustice. People have lost their homes. We need to take action
now. We cannot wait until November of 2012.

SCHULTZ: Why did you think it was important to get arrested last
night?

HENRY: Because I thought it was really important to join with faith
leaders, community leaders, other members of our union who have never been
arrested before and say that we think it`s time to disobey the law and to
draw a light on we`ve tried everything else, and we want to make it crystal
clear, enough is enough. There`s a state of emergency for working people.
And we`re going to do whatever it takes to draw attention and get action
from our government, from the wealthiest in our nation and from corporate
CEOs.

SCHULTZ: Not that this movement has been co-opted by any particular
party, but do you think that the Republicans are nervous about what`s going
on?

HENRY: Absolutely. I do. That is the party that is scapegoating
immigrants, that`s attacking public workers, and is protecting the richest
Americans in our country, and many of whom I believe want to contribute to
our prosperity.

We are a great nation. We are an American family. People want to
care for each other. We want to love each other.

People are hurting and there`s no reason we can`t respond to the
suffering and crisis in this country by creating 15 million jobs tomorrow.

SCHULTZ: What if you go to Washington with this -- for lack of a
better term -- a march, or sit-in, or whatever it`s going to be, I mean,
I`m all about it. I think it`s great.

What if you`re ignored by Congress? What if they do nothing? What if
they pay no attention to you?

HENRY: Well, we are not going to rest until we get back to work and
restore justice in this country. And so, we`re going to go to
congressional hearings, we`ll go to K Street lobbyists. We will deal with
the chamber of Congress.

We`re going to stay in the streets and keep expanding our movement
reaching out to all across this country because I think yesterday marked a
feeling by a lot of communities who said, maybe I have to just suffer. And
now, we have hope that we can make change.

SCHULTZ: And one more question, your response to Bill O`Reilly and
the FOX -- pretty much everybody over at FOX, but O`Reilly especially
saying this movement is dead.

HENRY: Crazy. He`s ridiculous. Bill O`Reilly is totally out of
touch with the American people who are ready to stand up and speak out and
get what we deserve.

SCHULTZ: Mary Kay Henry, president of the Service International
Employees Union -- great to have you with us tonight. I appreciate it.

HENRY: Good to be with you.

SCHULTZ: Now, let`s turn to Jesse LaGreca, he`s an Occupy Wall Street
protester and activist.

Jesse, I`ve wanted to meet you for a long time. You`re doing some
great work. You`ve been on point since day one.

How big was yesterday? What does it mean?

JESSE LAGRECA, OCCUPY WALL STREET PROTESTER: Yesterday was
tremendous. We literally had people in all 50 states across the country
stand up and say, enough is enough.

And when you look at the solutions that the Republican Party offered,
it`s the same nonsense they`ve been showing on us for 30 years. Tax cuts
for the rich. We just give the rich all the money they want, then they`ll
finally feel secure and create jobs for us.

On the other hand, they`re busting unions, making it hard for us to
put food on our family`s table, denying us health care, what is it, 40,000
people in America die every single year because of lack of health care,
preventable diseases. It makes me laugh that the guys who literally fought
to give corporations the right to freedom of speech want to deny Americans
the right to protest in a public place.

You know, I think Sarah Palin needs a full time day job. She
apparently has nothing else to talk about.

It`s not startling to me. These guys are paid to say what they say.
They take large campaign donations. I`m not surprised they do the bank`s
dirty work.

SCHULTZ: What do you think of Peter King, you know, in his depiction
of the 99 percenters that are out protesting? I mean, he said pretty
degrading and vile stuff. Your response.

LAGRECA: He`s done degrading stuff. The man lied us into the war in
Iraq and he`s been yet to be held accountable for that. That created
tremendous deficits which are now being used to as an excuse to destroy
every program the Republican Party has voted against for the last 80 years.

SCHULTZ: And what do you make of the unions now saying that they`re
going to organize, they`re going to go occupy Washington. You in on that?

LAGRECA: My father was a union carpenter. I absolutely stand with
unions.

SCHULTZ: So, there really is no one group that`s really taken over
this group, because there`s a lot of conversation early on about what are
the 99 percenters. They don`t have a real focus. I want you to respond to
that.

LAGRECA: To me, I think our message is so obvious that you really
have to be willfully ignorant to ignore it. The majority of working class
people are hurting right now, are out of touch bribed politicians are
selling this agenda that only benefits the wealthiest 1 percent. How can
we cut their taxes? How can we deregulate in their favor?

Oh, but you need something Mr. Working Class Guy? Oh, I`m sorry,
you`re going to have to face cuts.

The Republicans only operate on one playbook, and that`s whatever Bank
of America, or BP, or David Koch or whoever else is financing their
campaigns wants them to talk about.

SCHULTZ: You know, a lot of the demands that are surfacing and I said
this on the air the other night, parallel that with the Democratic National
Convention in 2008. Now, whether that`s you intended or not, I don`t know.
But -- I mean, we`re talking about the wealthy paying more, fair taxation,
universal health care, supporting public education.

How do you see all this?

LAGRECA: Well, I mean, when I wrote that last night, I was really
expressing my own opinions. At the same time, I`m happy that so many
people share those values, because to me that`s the values that we`re
talking about -- protecting our families, rebuilding our communities,
investing in America.

At the same time, it`s frustrating that I find I`m kind of more
Democratic than some Democrats are, that, you know, if we`re going to go to
Congress and pressure Congress, we should not just ignore the Democrats
there. Ben Nelson, Senator Ben Nelson, Senator Max Baucus, a bunch of
worthless Blue Dogs who really don`t represent anybody else but the special
interests. We should occupy their offices, too, because they`re not
helping right now.

SCHULTZ: O`Reilly says it`s dead, he says it`s a good thing. Your
response.

LAGRECA: So is Dr. George Tiller unfortunately. I think Bill
O`Reilly hurt enough people with his words. And I think that it shows how
out of touch he is to think that this populist uprising all across America
-- well, if the Republicans can`t own it, I guess they have to destroy it.
That`s their modus operandi.

SCHULTZ: I`ve been to Portland, I`ve been to Minneapolis, been to
Madison, been to Toledo. I`ve been to Columbus. And I`ve been to Newton,
Iowa, in the middle of the country. All within the last 60 days, all of
the places I`ve been.

And I have asked people in every single city, does this movement, what
they`re doing on Wall Street, do you relate to them? Emphatically, the
people say, yes.

What`s that mean, what`s that mean to you?

LAGRECA: It means Occupy Wall Street represents a broad cross section
of America from all walks of life. Students seeking higher education,
people who are professional, who are still paying off their student loans,
right down the line.

SCHULTZ: Do you think you had anything to do with the Senate Bill 5
going down in Ohio?

LAGRECA: Oh, certainly. I would say so. We`ve activated so many
people for the first time who never engaged in politics or anything of that
manner. It`s very viral.

SCHULTZ: What do you say to the people who say you`re a bunch of
anarchists out there?

LAGRECA: I would suggest that they stop watching propaganda
distributed by Rupert Murdoch`s international crimes syndicate.

SCHULTZ: Well, that`s a pretty good answer. Right to it.

And, of course, the recall of Governor Walker, which we`re going to
talk more about in just a few moments, you think this movement is going to
also have an effect on his recall?

LAGRECA: It absolutely should. You know, I got to visit Madison,
myself, a week or two ago. I have friends out there. In my opinion, I
think we should be putting pressure on all of the politicians who benefit
only the wealthiest 1 percent to the detriment of everybody else in
America.

So, Governor Scott Walker, Governor Rick Snyder -- I`m sorry, Rick
Scott. Right down the line. Not just Republicans either. Some Democrats
needs to be put on the unemployment line as well.

SCHULTZ: Well, you can throw Snyder`s name in there as well from
Michigan. He`s pretty radical as well.

LAGRECA: What they`re doing is they`re repealing the 20th century. I
keep telling people, I`m not against capitalism. I`m against crime. For
these guys to talk about we`re the party of personal responsibility. And
yet, when you ask them what they`ve done wrong in the last 10 years, they
have nothing to ask for -- very hypocritical and I think they`re doing a
disservice to their countrymen.

SCHULTZ: Jesse LaGreca, thanks for joining us tonight. Let`s do it
again.

LAGRECA: Absolutely.

SCHULTZ: Remember to answer tonight`s question there at the bottom of
the screen and share your thoughts on Twitter @EdShow. I want to know what
you think.

Coming up, the Scott Walker recall efforts are going strong in
Wisconsin with big events planned this weekend.

State Senator Lena Taylor gives us the latest.

This week`s GOP front-runner Newt Gingrich calls this network the
Obama re-election team. I missed that staff meeting. If I had known it
was there, I would have attended.

And the Senate is having secret Santa this year. But one party
doesn`t seem to like Christmas too much. Mike Papantonio and Lizz Winstead
join me tonight.

Stay with us. We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: Coming up on THE ED SHOW:

Tomorrow -- well, they`re back in the streets in Wisconsin. We`ll
preview a huge rally that is aimed at getting rid of the governor.

Thirty years after her death, Natalie Wood, that case has been re-
opened by law enforcement. Why now?

Michele Bachmann says she`s been gaffe-free on campaign trail? We`ll
show you how she`s really stuck her foot in her mouth.

This is THE ED SHOW on MSNBC. Stay with us.

(COMMERCIAL BREAK)\

SCHULTZ: Thousands of fed up Americans will be in the streets of
Madison, Wisconsin, tomorrow. They`re keeping the pressure on Governor
Scott Walker for his assault on workers` rights.

The campaign to recall Walker kicked off earlier this week. More than
50,000 signatures were reported within the first 48 hours; 540,000-plus
valid signatures are needed to force a recall election. Tomorrow, the
grassroots coalition, United Wisconsin, along with labor groups and state
Democrats, will hold a rally for signatures outside the state capitol.
Organizers expect the crowd to rival the size of Madison`s protest from
earlier in the year.

Since those days last winter, we`ve seen the rise of the 99 percent
movement and the fall of John Kasich`s union-busting law in Ohio. Scott
Walker is already playing defense with television ads, no to a recall.

Wisconsinites are motivated and not just in big cities. Towns like
Spooner, Wisconsin, in a Republican-leaning Washburn County, are seeing
enthusiastic petition drives. Make no mistake: Wisconsin started this
middle class movement in 2011.

What you`re seeing on the streets across the country is what`s been
going on all year in Scott Walker`s backyard. I love it.

Joining me tonight, Wisconsin State Senator Lena Taylor.

Senator, good to have you with us tonight.

It`s -- we`re almost back to the good old days here with the rallies.
How many people are going to be showing up tomorrow?

ST. SEN. LENA TAYLOR (D), WISCONSIN: You know, it`s going to be a lot
of people that will be at the rally, but to be very candid with you, there
will be more people out knocking on doors and out with petitions getting
signatures. Because the rally is a good thing, but collecting those
signatures so we can recall or governor is more important.

SCHULTZ: We heard about the first 48 hours. Is the recall campaign
keeping pace to get the signatures? You got 60 days. I think you get over
9,000 signatures a day. How`s the pace going?

TAYLOR: Oh my goodness. We`re already four, five days ahead. I have
to tell you, in the first day that we were able to collect signatures,
literally I spent about 30 minutes, less than an hour, I got 200
signatures. I`ve had at least, you know, 20 circulators who have come and,
you know, said, I want to get a petition so I can do it. Many others have
downloaded, at least 20,000 have downloaded so they can circulate.

We have 50,000, as you stated, signatures in the first two days, 48
hours. I`m just here to tell you that we`re going to get the numbers that
we need. This isn`t just in Milwaukee. This is all over the state.

SCHULTZ: I want your response to this. Governor Walker was on FOX
News complaining about the money going into the recall campaign. Here it
is.

(BEGIN VIDEO CLIP)

SEAN HANNITY, FOX NEWS: How much is it going to cost the taxpayers,
you have an estimate how much it will cost them for this recall effort?

GOV. SCOTT WALKER (R), WISCONSIN: Well, they`re saying in some cases
up to $10 million just in taxpayers` money. Not to mention the tens of
millions like they spent in the recalls earlier this year against state
senators that you`re going to see in all sorts of negative ads.

(END VIDEO CLIP)

SCHULTZ: How can Walker complain about funding when he can get
unlimited political donations to save his hide? What do you make of that?

TAYLOR: Especially since one of his Republican donors started his
process a little early for him. Ten million dollars is ridiculous
statement when you consider the fact that the governor also said it was
going to be millions of dollars to clean the capital from when the protest
happened before. And that turned out to be a line.

Well, I`m here to tell you that his statement, it`s going to be $10
million for taxpayer expenses, really not true. But more importantly, he
believed in recalls when he got elected as Milwaukee County executive. Why
is it he doesn`t agree with them now?

SCHULTZ: How is the recall campaign, Senator, being primarily funded
in your state?

TAYLOR: You know, this is really a grassroots movement. United
Wisconsin is really a bunch of individuals who`ve come together and to work
on the effort.

But don`t get me wrong, there are, you know, retired individuals,
there are union individuals. There are just stay-at-home moms. There are
unemployed individuals. There are students. There are people from all
walks of life, farmers, you name it, that are a part of this process.

So, this is, you know, really going to be an effort where the average
Joe and the average Jill are going to help to fund this. We`re making
calls through the Democratic Party and other methods to try to get
individuals to donate. And people are.

SCHULTZ: All right. I want to look at the big picture here. Of the
14 senators that left the state, none of them got recalled. There were
nine recalls --

TAYLOR: That`s correct.

SCHULTZ: OK. So all of the senators that shut it down, shut the
process down, when the radical movement was on to go after workers` rights,
you`re still in office, all 14 of you. There were nine recall elections --

TAYLOR: All 14 senators.

SCHULTZ: OK. And --

TAYLOR: All 14 senators that participated in the filibuster are still
senators and we gained two seats, if you recall.

SCHULTZ: Well, there were nine recall elections and the Democrats won
five of them. So -- and then, of course, what happened in Ohio.

What`s happening here, Lena? What`s happening here? Is this real
change taking place?

TAYLOR: This is people that are fed up. And I think Ohio is a
perfect example. I feel like when we left and did the walking filibuster,
we passed the baton to Ohio and senators like Senator Nina Turner in Ohio
and others who have worked diligently. Those individuals came and had a
million more signatures than they needed. And then they delivered when it
came time at election, at election time.

We`re in that mode right now, getting the signatures. I believe that
we`ll get more than 500,000. I`m hoping for 750,000 or more signatures.
And then we`re going to deliver at the election time.

And I think this is really about people saying, we deserve to be able
to have access to the American Dream.

SCHULTZ: And is the Occupy Wall Street movement connected to this
recall? Are these the same folks?

TAYLOR: Well, you know, I think that there are definitely
similarities, because Scott Walker has shown, and his cronies and his
rubber stamp legislators, that they choose corporations over the people --
whether it`s education cuts, you know, health care cuts, and I believe that
the people who are participating in the 99 percenters, so to say. Those
individuals are also saying they`re fed up and the people should be chosen
over corporations. It`s completely unfair the gap is as big as it is.

SCHULTZ: Yes. I tweeted tonight that Walker is Wisconsin`s Wall
Street.

Senator --

TAYLOR: Yes, he is.

SCHULTZ: Senator Taylor, good to have you with us to.

TAYLOR: We`re going to make sure -- it`s good to be with you, Ed.
And we`re going to make sure he gets to do what his name says he is. He
says he`s a Walker. And we`re going to send him walking.

SCHULTZ: Good to have you with us. Thanks so much.

TAYLOR: Thanks, Ed.

SCHULTZ: Michele Bachmann says she`s the only gaffe-free candidate in
the race. We`ll remind her of her tremendous psycho talking in the past,
next.

And 30 years after her death, homicide detectives are taking another
look at the Natalie Wood case. Clint van Zandt explains the investigation.
Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in Psycho Talk tonight, Michele Bachmann is in complete
denial about her pathetic poll numbers. She`s still trying to convince
America that she should be the next leader of the free world.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: As people are
looking at the candidate that is the most conservative and the most
consistent candidate, I`ve been that candidate. I haven`t had a gaffe or
something that I`ve done that has caused me to fall in the polls.

(END VIDEO CLIP)

SCHULTZ: Oh, first of all, something has caused Michele Bachmann to
plummet in the polls. In July, she was in second place nationally in an
NBC News/"Wall Street Journal" poll at 16 percent. This month, she`s down
to four percent. And that would be in sixth place.

It`s been an even steeper drop for Bachmann in her home state of Iowa.
In August, she won the Iowa straw poll with 29 percent of the vote. Now
she`s at five percent in Iowa, good enough for sixth place there as well.

Also Bachmann can pretend she`s been gaffe-free, but she`s not fooling
anyone. Let`s go to the videotape.

(BEGIN VIDEO CLIP)

BACHMANN: I want to thank the Tea Party Express and Tea Party HD for
inviting me to speak this evening.

What I love about New Hampshire, you`re the state where the shot was
heard around the world at Lexington and Concord.

Planned Parenthood is a billion dollar a year entity. They want to
become the Lens Crafter of big abortion.

Just like John Wayne was from Waterloo, Iowa. That`s the kind of
spirit that I have, too.

The woman who came up crying to me tonight after the debate, her
daughter suffered mental retardation as a result of that vaccine.

Now with the president, he put us in Libya. He is now putting us in
Africa.

(END VIDEO CLIP)

SCHULTZ: There`s more, but we got other stories we have to do
tonight. We have to move along. For Michele Bachmann to say she hasn`t
had a gaffe is laughable Psycho Talk.

Newt Gingrich denies he was a lobbyist for Freddie Mac. He was just a
strategic adviser. Now Gingrich has some explaining to do about 840,000
dollars that he got from the Chamber of Commerce. Joan Walsh is next on
that issue.

Is the war on Christmas officially over? Bill O`Reilly isn`t
declaring victory just yet? Mike Papantonio and Lizz Winstead, they weigh
in. Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: I understand that there
are places like MSNBC that are essentially the Obama re-election team.
But, you know -- but that`s fine. This is a free society. You can also
say, frankly, that Fox tends to be nicer to -- than it is to Obama.

(END VIDEO CLIP)

SCHULTZ: Former Fox News employee Newt Gingrich thinks MSNBC is the
Obama re-election team, which is news to me. President Obama has never
appeared on MSNBC since he took the oath of office, but he`s done two
interviews with Fox.

Meanwhile, we`ve invited just about all the Republican candidates to
come on this show multiple times, including you, Newt. Come on, let`s do a
debate.

Herman Cain has been on with me. Yeah, so has Rick Santorum. Newt,
you haven`t said yes yet. And if you want to talk about a network`s
functioning as an election team, check this out.

(BEGIN VIDEO CLIP)

GRETA VAN SUSTEREN, FOX NEWS ANCHOR: There`s a new front-runner and
he is here. Former Speaker of the House Newt Gingrich joins us. Good
evening, Mr. Speaker.

NEIL CAVUTO, FOX NEWS ACHNOR: With me now, Republican presidential
candidate, former Massachusetts Governor Mitt Romney.

BILL O`REILLY, FOX NEWS ANCHOR: Joining us now from Columbia, South
Carolina, is Governor Perry.

SEAN HANNITY, FOX NEWS ANCHOR: Here to comment on her presidential
aspirations, much more, Minnesota Congresswoman Michele Bachmann.

UNIDENTIFIED MALE: Let`s bring him in. He`s the third guy running
for president -- person, I should say, that we`ve had on our program today.
Herman Cain, good morning to you.

HANNITY: Joining me now is the former Pennsylvania senator, Fox News
contribute Rick Santorum.

UNIDENTIFIED FEMALE: We`re joined now by the Texas congressman and
the 2012 presidential candidate Ron Paul.

CAVUTO: Governor Huntsman with me now. Governor, good to see you
again.

JON HUNTSMAN (R), PRESIDENTIAL CANDIDATE: Thank you, Neil. Live free
or die.

HANNITY: Governor Romney, good to see you. Thanks so much for doing
this.

ROMNEY: Thanks, Sean. Good to be with you again.

VAN SUSTEREN: We got lucky because Congresswoman Michele Bachmann has
graciously decided to standby.

O`REILLY: Joining us from Washington with reaction, Fox News analyst
Newt Gingrich.

(END VIDEO CLIP)

SCHULTZ: They sure interview a lot of righties, don`t they? Fox News
is the training ground for Republican presidential candidates, especially
for Newt Gingrich, who was on Roger Ailes` payroll. Today, Newt`s surge in
the poll puts him at or near the top of the pack. A new poll shows that
he`s only two points behind Mitt Romney in New Hampshire, within the margin
of error.

Let`s turn to Joan Walsh, editor at large, Salon.com. Well, let`s
talk about Newt, because the "Wall Street Journal" is reporting the Chamber
of Commerce paid Gingrich 840,000 dollars from 2001 to 2007. We already
know he was paid at least 1.6 million by Freddie Mac.

He denied that he was a lobbyist, again, last night on Fox. Here it
is.

(BEGIN VIDEO CLIP)

GINGRICH: I was approached to offer strategic advice. I do no
lobbying of any kind. I never have. It`s a very important point I want to
it make. I have never done lobbying of any kind.

VAN SUSTEREN: How often did you talk to them? Did they come to your
office? Did you go to them?

GINGRICH: I think less than -- maybe once a month, they would drop
by. We`d spend an hour. It would always start with me listening. I`d
always say, what are you trying to solve? What are your concerns? What
are you trying to get done? I`ve done this with many, many clients.

(END VIDEO CLIP)

SCHULTZ: Joan Walsh, can he get past this and keep surging in the
polls?

JOAN WALSH, SALON.COM: I really don`t think so, Ed. It will be
interesting to see the next set of polls. Because this is something --
whether you disagree or agree with the Tea Party, they are hostile to pay
to play arrangements. They`re hostile to the Chamber of Commerce, for
instance, because it partly supported the stimulus bill.

So this is exactly what both the Tea Party and Occupy Wall Street
actually do have in common, a real fear that money has corrupted politics
and that politicians are doing the bidding of corporations and not
Americans.

That`s been so clear to Newt. You know, my favorite answer, a Think
Progress reporter asked him whether he was lobbying or not. He said, he
didn`t consider it lobbying because he was doing it for the benefit of the
public at large.

So, you know, that`s Newt. It`s like he said that he cheated on his
wives because he loved the country so much and he was working too hard.
Everything he does he does for us, Ed. You know, I think we have to look
at it that way.

SCHULTZ: Another potential problem for Gingrich is the health care
think tank he founded. The "Washington Post" reports today "a think tank
founded by GOP presidential candidate newt Gingrich collected at least 37
million dollars over the past eight years from major health care companies
and industry groups, offering special access to the former House Speaker
and other perks.

The group claims that they`re not lobbyists. But the bigger the
problem for Newt is that the group supports individual mandates. Is that
going to get him in trouble?

WALSH: Yes, it is. People do know he at one time did support the
individual mandate and he flip-flopped. "The New York Times" had a smaller
story, but an interesting story about the same Center for Health
Transformation. And Newt actually wrote an op-ed for the "Washington Post"
where he extolled the benefits of one of his clients that did a lot of end
of life planning.

And he advocated this sort of thing as a way to bring down costs and
help people make decisions before they get really sick. Well, then, of
course, when Sarah Palin came out and called the same thing in the Obama
legislation death panels, he started calling it euthanasia. He`s flipped
and flopped based on who`s paying him and based on what he thinks the mood
of the Republican electorate is.

I really think this is going to catch up with him. I think we`ve he
had a fun week talking about the Newt surge. But I think we`re probably
going to be talking about somebody else within a week or two. I don`t know
who it`s going to be. But Newt is not going to sit well with the Tea
Party.

SCHULTZ: He`s a master of doing us versus them. No question about
that. I think that his accusation that MSNBC is the Obama re-election team
I find laughable. But it is pretty much a classic Newt diversion. When
he`s under the spot light, he likes to attack the media. That`s pretty
much his M.O.

Joan Walsh, great to have you with us tonight. Thanks so much.
Salon.com.

Coming up, new information in the death of actress Natalie Wood. Was
it murder? That`s next. This is THE ED SHOW.

(COMMERCIAL BREAK)

SCHULTZ: Developments are not slowing down in the Penn State child
sexual abuse case. Today, the son of fired Penn State football Coach Joe
Paterno said his father has a treatable form of lung cancer. An hour
earlier in the day, the NCAA announced that it will investigate the school
for its handling of the scandal.

Also today, "the New York Times" reported the Second Mile Charity, the
charity that was set up by accused child molester Jerry Sandusky, will shut
down. Some members of Congress had called for that.

Coming up, the case of the drowning death of Natalie Wood is being re-
opened by law enforcement after nearly 30 years. We will show you why when
former FBI profiler Clint Van Zandt joins me next.

(COMMERCIAL BREAK)

SCHULTZ: Was it murder? Thirty years after actress Natalie Wood
drowned off the coast of California, the Los Angeles Sheriffs Department
announces it is re-opening the investigation into her death.

(BEGIN VIDEO CLIP)

LT. JOHN CORINA, LA COUNTY SHERIFF DEPT.: Recently, we have received
information which we felt was substantial enough to make us take another
look at this case.

(END VIDEO CLIP)

SCHULTZ: Wood had been boating with her husband, actor Robert Wagner
and the co-star of her last film, Christopher Walken. With rumors of a
possible love triangle swirling, Wagner and Walken reportedly got into an
alcohol-fueled argument that night.

NBC`s George Lewis explains what happened next.

(BEGIN VIDEO CLIP)

GEORGE LEWIS, NBC NEWS CORRESPONDENT (voice-over): The coroner
theorized that to escape the argument, the actress might have tried to
board a rubber dingy. But critics say that didn`t add up because of a
phobia Natalie Wood had.

NATALIA WOOD, DECEASED ACTRESS: I`ve always been terrified, still am,
of water, dark water, sea water.

(END VIDEO CLIP)

SCHULTZ: After a seven-hour search, Wood`s body was found floating a
mile from Wagner`s yacht, The Splendor. Her death was ruled an accidental
drowning. At the time, the coroner said Wood had been drinking and may
have lost her balance.

The captain of the boat, Dennis Davern, was on "The Today Show" this
morning.

(BEGIN VIDEO CLIP)

DAVID GREGORY, "MEET THE PRESS": Was the fight between Natalie Wood
and her husband, Robert Wagner, what ultimately led to her death?

DENNIS DAVERN, CAPTAIN OF THE SPLENDOUR: Yes.

GREGORY: Was he responsible for her death?

DAVERN: Yes, I would say so, yes.

(END VIDEO CLIP)

SCHULTZ: MSNBC analyst and former FBI profiler Clint Van Zandt with
us tonight. Clint, thanks for your time. What`s it take to re-open a
case? Is there criteria that has to be met?

CLINT VAN ZANDT, FORMER FBI PROFILER: Yeah, there is. It has to be
new information, Ed. It`s got to be something the authorities never heard
before. In this case, perhaps, we`ve got this ship captain of dubious
background, who has written a book and has come forward and said, you know
what, I lied. I mean, this is someone who`s saying, I perjured myself 30
years ago on this case.

And now, as he just told "The Today Show," he`s suggesting that Ms.
Wood`s husband is responsible for this. His story seems to have changed
about every decade. And this is the latest version that we`re hearing, Ed.

SCHULTZ: Well, with his story changing on numerous occasions, there
must be other information other than this man`s admission, and recanting
his story. What do you make of it?

VAN ZANDT: Yeah, and there`s going to have to be. The sheriffs
investigators have indicated that other people -- that it sounds like
multiple people have come forward. The question is -- you know, law
enforcement is good at cold cases. They still crack them every day.

But here we have three decades later, Ed, that -- number one, we have
to deal with a man who has -- who is an admitted perjurer, and then someone
else -- now, is this somebody else who is trying to cleanse their soul at
this late date?

Ed, you and I know when somebody dies, homicide, suicide, accident,
natural causes -- well, 43, she didn`t die of natural causes. The coroner
ruled it an accident. But, you know, just as you said on your piece
leading in here, this was a woman who was scared to death of water. That
she would of her own volition, in the middle of the night, wearing a
bathrobe, be up, number one, wandering around deck, number two, trying to
get into a little dingy and roll her way ashore, because of a fight she had
with her husband -- I think law enforcement, at that time, maybe should
have taken a little more time to look at this, and make absolutely sure it
was an accident and maybe not something that looked like an accident.

SCHULTZ: How do you recreate the case so many years past?

VAN ZANDT: Well, one of the things they can do -- now, this boat is
now supposedly in Hawaii. You can either get that boat back or get a boat
of the same size and dimension, put that in the same location and try to
act this whole thing out. Try to see if the stories that the various
people have told -- now, again, Ed, this should have been done at the time,
and hopefully it was.

Now, they may want to recreate this. And Ed, they`re going to have to
look at all the evidence, all the interviews. And as I heard one person
suggest today, it may even go to exhuming the body of the victim, perhaps
looking for DNA that at that time we wouldn`t have known even existed, that
maybe, just maybe today may exist.

Now, that`s going to take a lot before we go and dig somebody up and,
you know, violate that grave after 30 years. But Robert Wagner, the
husband, number one, says he wants to cooperate. I think he says he wants
to know what`s going on. But I think he, like a lot of people, question
whether this individual coming forward now, this former captain who has
this book that came out not too long ago about the death, maybe he has
something to gain.

Remember, Ed, it wasn`t earlier this year that somebody wrote a book
about D.B. Cooper, the hijacker who bailed out over the Pacific Northwest
years ago. They suggested that they knew who that person was. And of
course, that`s because a brand new book had just come out.

SCHULTZ: Yeah. Clint Van Zandt, thanks for your time tonight.
Appreciate it.

VAN ZANDT: Thank you.

SCHULTZ: Is pizza a vegetable? Ask a House Republican and the answer
is yes. Mike Papantonio and Lizz Winstead will weigh in and fill us in on
the week`s political happenings.

(COMMERCIAL BREAK)

SCHULTZ: Survey tonight on THE ED SHOW, I asked do Republicans mock
the 99 percent movement at their own peril? Ninety eight percent of you
said yes; two percent of you said no.

Coming up, the Senate is holding a Secret Santa on the Hill. What
would you get David Vitter for Christmas? I`ll ask Mike Papantonio and
Lizz Winstead next.

(COMMERCIAL BREAK)

SCHULTZ: Finally tonight, the jobs bill dead on arrival, the super
committee stalled. After all the partisan gridlock, it`s good to know that
this week something got done in the United States Senator. Senator Ben
Nelson shared the big news with the "Washington Post." "We choose Secret
Santas."

It`s the Senate`s first ever gift exchange. By the way, there`s a 10
dollar limit. Gifts will be swapped over eggnog next month. It`s a
bipartisan effort. By the numbers, pretty lopsided, though. Of the 58
participating, 37 are Democrats, 21 are Republicans. See, they never want
to get along.

Does this mean the war on Christmas is over? Last night, Bill
O`Reilly took a victory lap.

(BEGIN VIDEO CLIP)

BILL O`REILLY, FOX NEWS ANCHOR: Let me just put forth that if we
weren`t here -- because there wasn`t anybody else fighting this war on
Christmas.

(CROSS TALK)

UNIDENTIFIED FEMALE: Santa would be gone forever if it weren`t for
Bill O`Reilly.

O`REILLY: No other media people fought the war. In fact, most of the
liberal media attacked me, your humble correspondent.

UNIDENTIFIED FEMALE: And me. We both have been attacked.

O`REILLY: Oh yeah. OK.

UNIDENTIFIED FEMALE: This brought you together.

O`REILLY: Somewhat.

(END VIDEO CLIP)

SCHULTZ: Let`s turn to Mike Papantonio, host of the "Ring of Fire"
radio show, and also Lizz Winstead, co-creator of "The Daily Show." OK,
mike, who`s the better defender of Christmas, Bill O`Reilly or Gretchen
Carlson?

MIKE PAPANTONIO, RADIO TALK SHOW HOST: This is a time of year where
their eyes roll back. They froth at the mouth. Their head spins around.
They keep their all of their viewers glued to the TV with this image that
liberals and ACLU are going to destroy Christmas, maybe hunt Santa down,
that we hate Christians. This is the height of their year.

This is when the paranoia runs as deep as possible and they work into
the frenzy that we`re used to seeing this time of year, every year. We can
set our clocks by it.

SCHULTZ: Lizz, is the war on Christmas finally over?

LIZZ WINSTEAD, COMEDIAN: Do these people live in a cave? Christmas
starts the day after Labor Day. There`s already music playing. It`s all
over the place. There`s no war. In fact, you know what, they won`t even
let gays fight in the war on Christmas. This is how much they`re misguided
with the war on Christmas.

SCHULTZ: Mike, Senator Al Franken says the purpose of the Secret
Santa is to encourage collegiality. Do you think it`s going to -- do you
think this is going to work?

PAPANTONIO: He has the idea of buying gifts. My gift idea -- you
asked for David Vitter -- I guess would be designer diapers, so the next
time he visits his D.C. madams, he can at least be dressed better. You
know the story about him showing up in diapers. Let`s get him some
designer diapers.

Marco Rubio comes to my mind, Ed. This is a guy that somebody ought
to pay for his subscription to Ancestry.com, so when he makes up these
fantasy stories about where he comes from and how he has these Cuban anti-
Castro roots, he can maybe go to the Ancestry.com and get real names and
real people.

I got to say one more thing. Ben Nelson, I`d get him testosterone
shots for about a year. And I`d certainly get him a backbone that actually
works. Great ideas for Christmas.

WINSTEAD: Mike, I would just want to add that I think the diapers
should say "Merry XXX-Mas on it." But I actually searched a little bit on
the Internet to find a lovely under 10 dollar gift. I think I found the
perfect one on Amazon.com.

I found a door mat that actually was 20 dollars, marked down to 7.98.
I think you guys have the graphic. Yes, there it is. It`s actually a
welcome mat. There`s only one left. I think that would go from Harry Reid
to Mitch McConnell.

SCHULTZ: Other important news of the week -- the Congress did this
week, Republicans declared pizza a vegetable. Is this the death for
nutrition or a victory for pizza? Mike, what do you think?

PAPANTONIO: Remember, this is the same Republican group who wasted
two weeks trying to reaffirm "in God we trust" as our national model.
They`re the same Republicans who today are ignoring the fact 50 million
people are living in poverty, 14 million people totally unemployed, and
Wall Street raping us blind every day.

Listen, what they want to do is pay back their corporate friends.
They want to give our children this chemical concoction they call a pizza
vegetable that`s covered with zinc oxide, phosphates, magnesium oxide,
sulfates, sugar, flour, enough to gag a cow. They want to stuff our
children with this chemical trash while they stuff their pockets with
corporate cash. That`s the sad part of this story.

WINSTEAD: It`s also, like, it`s a vegetable? It`s not even a pizza.
What is that? It`s horrible. Those people would put corn syrup on Mt.
Rushmore if they could.

SCHULTZ: Mike Papantonio, Lizz Winstead, great to have you with us on
this Friday edition of THE ED SHOW. That`s THE ED SHOW. I`m Ed Schultz.
Rachel Maddow, the show starts now here on MSNBC. Rachel, good evening.

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

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