updated 2/27/2013 12:45:35 PM ET 2013-02-27T17:45:35

THE ED SHOW with ED SCHULTZ
February 26, 2013
Guest: Chris Van Hollen, Eliot Spitzer, E.J. Dionne, Liz Mair, Joan Walsh,
Jasmine Rand


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

Three days from austerity. John Boehner is scolding the Senate, while
the president is out working with the folks.

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

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: These cuts are wrong.
They`re not smart. They`re not fair.

SCHULTZ (voice-over): The president lays out a plan to save thousands
of jobs.

OBAMA: I am more than willing to negotiate. I want to compromise.

SCHULTZ: While Boehner plays the blame game.

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: We should not have to
move a third bill before the Senate gets off their ass and begins to do
something.

SCHULTZ: Congressman Chris Van Hollen and Gene Robinson weigh in
tonight.

A new lawsuit blows the lid on JPMorgan`s toxic mortgage cover-up.
Eliot Spitzer has the forecast for the implosion.

The GOP tries to resurrect Jim Crow laws in an attack on the Voting
Rights Act.

Chris Christie gets left out of CPAC in favor of the Republican gag
reel.

Our panel takes on the party`s backwards reinvention.

Bachmann breaks her post-election silence.

REP. MICHELE BACHMANN (D), MINNESOTA: I didn`t get anything wrong.

SCHULTZ: And it was worth the wait.

Thousands have gathered tonight in remembering the killing of Trayvon
Martin. We`ll take you inside the unanswered questions behind the shocking
murder case.

(END VIDEOTAPE)

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

Well, Republicans have shifted into the final phase of their
sequestration strategy: talk tough and empty threats.

(BEGIN VIDEO CLIP)

BOEHNER: We have moved the bill in the house twice. We should not
have to move a third bill before the Senate gets off their ass and begins
to do something.

(END VIDEO CLIP)

SCHULTZ: Ooh, strong language from a guy who`s on the heels of a 10-
day vacation, don`t you think? I mean, Boehner`s got a lot of nerve to
stand up there in front of the American people with a brand-new golf tan
and tell the Senate to get to work. Maybe Boehner forgot the number of
days off he called for the House this year.

Maybe Democratic leader Nancy Pelosi was quick to remind him today.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), DEMOCRATIC LEADER: We`ve been gone for 10
days. We come back. We`ll be gone by Thursday at 3:00 when we have a
deadline facing us. We`re practically becoming a drive-by Congress.

(END VIDEO CLIP)

SCHULTZ: Do you get off at 3:00 on Thursday? Heck of a job if you
can get it.

You know, it`s amazing the lengths that the House Republicans will go
to deceive the public. Boehner is once again lying about the bills that
the House Republicans have passed.

Again, let`s have Nancy Pelosi explain the truth.

(BEGIN VIDEO CLIP)

PELOSI: The Republican leadership says we passed bills last year. I
remind them that was a different Congress. That doesn`t count in this
Congress.

The Republican leadership says let the Senate begin. I remind them
that the Constitution says that appropriations and revenue bills must begin
in the House.

(END VIDEO CLIP)

SCHULTZ: What was that about the Constitution? Let`s go over this
slowly so even John Boehner will understand it all.

This bill behind me was passed by House Republicans in May of 2012.
It was designed by Wisconsin Congressman Paul Ryan. Remember him?

And, of course, it had cuts to programs like food stamps and Medicaid,
instead of military spending. The bill`s dead. It died when the 112th
Congress came to an end.

Here`s another dandy that they say they passed. This was passed as
part of John Boehner`s failed plan B fiscal cliff package. This one is
also dead.

And so, let`s recap. The Republicans have exactly zero bills in this
session, the 113th Congress to avoid what we`re facing on Friday,
sequestration. The House needs to introduce a bill before it can go to the
Senate.

But John Boehner is too busy saying tough guy words and blaming
Democrats. I think the secretary of homeland security summed it up best
yesterday during a question-and-answer session.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: What impact would sequestration, were it to
happen, have on the department?

(LAUGHTER)

JANET NAPOLITANO, HOMELAND SECURITY SECRETARY: You know, I`ve been in
government and public service a long time, 20 years almost. I have never
seen anything like this.

(END VIDEO CLIP)

SCHULTZ: No one has ever seen anything like this, because it makes
absolutely no sense. This is the party that runs around talking about
cuts, yet they won`t take them. This is obstruction for the sake of
obstruction, no question about it. The only hard work John Boehner is
doing is pounding on his chest.

(BEGIN VIDEO CLIP)

BOEHNER: The president has been traveling all over the country and
today going down to Newport News in order to use our military men and women
as a prop in yet another campaign rally to support his tax hikes.

(END VIDEO CLIP)

SCHULTZ: So the people who are going to lose their job, they`re just
a prop.

There is a good reason why the president of the United States is
taking his case to the American people, because Republicans, they just keep
lying about everything in Washington. The president is not looking for
across-the-board tax increases.

(BEGIN VIDEO CLIP)

OBAMA: All we`re asking is that they close loopholes for the well-off
and the well-connected, for hedge fund managers, or oil companies or
corporate jet owners who are all doing very well and don`t need these tax
loopholes so we can avoid laying off workers or kicking kids off Head Start
or reducing financial aid for college students.

I don`t think that`s too much to ask. I do not think that is
partisan. The majority of the American people agree with me. The majority
of Newport News agrees with me. We need to get this done.

(END VIDEO CLIP)

SCHULTZ: Well, Republicans can blame the president all they want.
Nothing can happen without action in Congress.

(BEGIN VIDEO CLIP)

OBAMA: But the choice is up to Congress. Only Congress has the power
to pass a law that stops these damaging cuts and replaces them with smart
savings and tax reform. And the second I get that bill on my desk, I will
sign it into law. But I`ve got to get Congress to pass it.

(BEGIN VIDEO CLIP)

SCHULTZ: So are all the Republicans just totally screwed up?

Well, you know what? Actually, some Republicans do get it.
Congressman Scott Rigell joined President Obama in Virginia today. He`s a
Republican, former businessman, car dealer guy, but he is worried about the
cuts in his state.

(BEGIN VIDEO CLIP)

OBAMA: I`ve got to give Scott Rigell credit. He is one of your
Republican congressmen who is with us here today. And that`s not always
healthy for a Republican, being with me. But the reason he is doing it is
because he knows it`s important to you. And he`s asked his colleagues in
the House to consider closing tax loopholes instead of letting these
automatic cuts go through.

(BEGIN VIDEO CLIP)

SCHULTZ: The state of Virginia will be hit hard by excessive
sequester cuts. Ninety thousand civilian military employees would be
furloughed. It would be a loss of nearly $650 million in salary for
Virginians. This is why the president took his message to a Virginia
facility where submarines are built.

Now, at this particular shipyard, projects like an overhaul to the USS
Theodore Roosevelt is going to be delayed. How is that going to help the
military?

President Obama wants to avoid this, and so do most Americans, if you
believe the polls. The latest polling from NBC News, "The Wall Street
Journal" shows nearly half of Americans believe President Obama is trying
to unify the country. Only 22 percent believe the same thing about the
Republicans. So John Boehner can use all the swear words he wants. He can
be a tough talker all he wants.

But the numbers show that he is a failed leader, and he is the king of
obstruction right now. In the 112th, it was all the filibusters in the
Senate. It`s very clear in the 113th, it`s up to Boehner. To not even
introduce anything that would avert the job losses that are going to be
taking place after Friday.

I guarantee you, Boehner`s got a tee time 9:00 a.m. on Friday morning.
Some of you people in media in Washington, why don`t you go ask him what
he`s doing on Friday? They`re out there on Thursday afternoon, 3:00.
You`re going to tell me a guy with a tan like that that loves to shake down
donors at a golf course isn`t going to be on the links this weekend?

He`s not working for you. He is ripping you off. You should the be
calling your congressman tonight, telling them to get to work, to do a
deal, to protect these families, these middle class families that are going
to get butchered by this.

These are real people`s lives. Well, OK, it`s tee times at 9:05.

Get your cell phones out. I want to know what you think. Tonight`s
question: what is more offensive, John Boehner`s language or John Boehner`s
job performance? Text A for language, text B for performance to 67622.
You can always go to our blog at Ed.MSNBC.com. We`ll bring you the results
later on in the show.

(BEGIN VIDEOTAPE)

SCHULTZ: Joining me tonight, Congressman Chris Van Hollen of
Maryland. He is a ranking member on the House Budget Committee.

Congressman, good to have you with us tonight.

REP. CHRIS VAN HOLLEN (D), MARYLAND: You too, Ed.

SCHULTZ: I just want to cut to the chase on what Boehner is telling
the American people. He says that they have passed two bills. That was in
the 112th.

Legally, they don`t apply right now. Is that correct?

VAN HOLLEN: That`s exactly right, Ed. It is totally false. The
Republicans have done absolutely nothing to replace or avoid the sequester
in this new Congress, nothing since January 1st. And whatever they did
last year has absolutely no force of law, period. So they`ve done nothing,
nada.

SCHULTZ: OK. So, now, you have come forward with a solution on the
House side to get things moving. It`s to the point. It has revenue.

But the Republicans are saying they`re done with revenue. So what do
you offer?

VAN HOLLEN: Well, that`s right, Ed. Listen, today, just this evening
was the third time that I asked for a simple vote on the floor of the House
of Representatives. Let the people`s House vote on a plan that would avoid
the sequester, replace it with a mix of targeted cuts and revenues.

So, the cuts were to excessive agriculture subsidies, and the revenue
were -- was closing tax breaks for big oil companies and applying the
Buffett Rule to people who earn more than $2 million a year, so that they
would pay at least 30 percent. If you do that, you get the same deficit
reduction benefit of the sequester over a longer period of time in a smart
way. And you don`t lose the 750,000 American jobs that this Congressional
Budget Office, not me, the nonpartisan --

SCHULTZ: Sure.

VAN HOLLEN: -- Congressional Budget Office says you`ll get with the
sequester.

SCHULTZ: OK. Now, with this attempt by the president, he is going
around the country, making the plea to people that they got to get behind
this, because these cuts if sequester takes place, it`s going to hurt the
economy. In the meantime, he is working over the Republican governors.
The governors are saying, hey, this is the real deal.

But Boehner -- you think that he is afraid, the speaker of the House
afraid to bring this plan that you have up for an up-or-down vote because
there might be some Republicans that come over and vote yes on it?

VAN HOLLEN: That`s exactly right, Ed, because what this plan would do
is avoid all those job losses, avoid the disruption in the economy, and
does it in a balanced way.

And you`ve got a number of Republicans who are starting to say, you
know what? This idea that we cannot close a single tax loophole in order
to reduce the deficit and help prevent the sequester is nonsense.

And so, there seems to be a growing sense among some Republicans --

SCHULTZ: Yes.

VAN HOLLEN: -- that they`re not willing to lose 750,000 jobs in order
to protect tax breaks for big oil companies or hedge fund managers or
whoever it may be.

SCHULTZ: Well, they`re obstructing in the House, just like they
obstructed in the Senate in the 112th. It`s just a different -- it`s a
role reverse. It`s almost like it`s Boehner`s turn to pick up the gavel
and stop everything.

Here is Virginia Governor Bob McDonnell. This is a great example of
how Republicans play this game. Take a listen.

(BEGIN VIDEO CLIP)

GOV. BOB MCDONNELL (R), VIRGINIA: We need to cut spending, and more
than the sequester. But don`t put 50 percent of the cuts on the U.S.
military.

(END VIDEO CLIP)

SCHULTZ: Oh, by the way, the U.S. military is in Virginia. I mean,
this is a classic comment right there. You know, he wants all these
spending cuts, but don`t do it in my backyard.

What -- I mean, that`s where they are. They`re self-serving in many
regards, and this is why the country can`t stand government right now,
can`t stand the Congress.

VAN HOLLEN: Well, look, it`s total head-spinning, Ed. Here is the
Republican line -- if you cut defense spending and so you have fewer people
building ships and things like that, that loses jobs.

SCHULTZ: Yes.

VAN HOLLEN: And frankly, it does.

But if you cut transportation spending or you cut Head Start programs,
somehow that doesn`t hurt jobs. That somehow miraculously grows the
economy.

We know that`s not the case. What Republicans want to do here is what
they tried in Europe and failed.

SCHULTZ: Yes.

VAN HOLLEN: They tried this cut and grow. And what they got was cut
and shrink.

Their economies are going down. They`re in double-dip recessions.
And that`s the kind of medicine they want to prescribe here at home now.

It won`t work. It will hurt the economy.

SCHULTZ: All right. Congressman Chris Van Hollen, good to have you
with us tonight. Thanks so much.

VAN HOLLEN: Likewise. Thank you, Ed.

(END VIDEOTAPE)

SCHULTZ: Let`s bring in associate editor and Pulitzer Prize-winning
columnist for the "Washington Post" and MSNBC political analyst, Eugene
Robinson.

Eugene, does the hatred for President Obama run so deep in the
Republican Party that there`s no deal that they`ll cut with him?

EUGENE ROBINSON, MSNBC POLITICAL ANALYST: There doesn`t seem to be a
deal right now. And it`s not just hatred for President Obama as far as
Speaker Boehner is concerned. I think his main priority is his own
precarious political position.

And, look, if he were to bring to the floor of the House a proposal
such as Congressman Van Hollen`s, indeed, quite a few Republicans might
vote for it. In fact, it might pass. But then, John Boehner`s majority
might turn on him and he might lose the speakership.

So it`s unclear whether the House Republican majority can be led at
this point. It is clear that Boehner isn`t doing a very good job of
leading it.

SCHULTZ: So who wins the P.R. war that is taking place right now? I
know that`s the last thing American people want to hear. But that`s all
these guys care about right now.

ROBINSON: Well, polling has been done. Who will you blame if the
sequester happens and the sky falls? And overwhelmingly, people say we
will blame the House Republicans, because they`re the ones who were
obstructing a deal and a resolution of this completely artificial crisis,
by the way. This doesn`t -- this crisis didn`t have to happen, but it is
happening.

So, look, Boehner has to take the long shot bet that the polls are
wrong and that eventually people will come to blame the president and
absolve the Republicans. I think that`s unlikely, and the polling shows
that`s unlikely.

SCHULTZ: You know, listening to the president talk today, he wants to
compromise. He almost gets the feeling he`d give away the farm if they
just show up with a little bit of revenue. But they -- I think he knows
they won`t do it.

ROBINSON: Yes, I think he -- I think at this point we are the stage
where this is all for public consumption, unless there are some talks going
on deep, deep in the background, underground somewhere that nobody knows
about. It looks like this is all preparation for what happens on Friday
morning after the sequester hits, and then everybody says oh, how do we fix
it.

SCHULTZ: Eugene Robinson, great to have you on THE ED SHOW tonight.
Appreciate your time so much. Thank you.

ROBINSON: Great to be here, Ed.

SCHULTZ: You bet. Remember to answer tonight`s question there at the
bottom of the screen. Share your thoughts with us on Twitter @EdShow and
on Facebook. We want to know what you think.

Hundreds of internal e-mails show banking giant JPMorgan chase hiding
bad loans from investors. The former sheriff of Wall Street Eliot Spitzer
is going to weigh in on this and so much more, coming up.

Stay with us.

(COMMERCIAL BREAK

SCHULTZ: And coming up, brand-new evidence the big banks were taking
us for a ride on the road to the great recession. Former New York Governor
Eliot Spitzer, he knows what these guys are all about. He`ll join me next.

And the Supreme Court of the United States is hearing a case which
could turn voting rights in this country upside down. Don`t forget, you
can listen to my radio show on Sirius XM Radio channel 127, Monday through
Friday, noon to 3:00. Share your thoughts with us on Facebook and on
Twitter using the #EdShow.

We`re coming right back. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW.

There is more troubling news from Wall Street. A new lawsuit accuses
banking giant JPMorgan Chase of hiding bad loans from investors. The
Belgian bank Dexia bought over a billion dollars worth of mortgage-backed
securities from the firm and is now accusing JPMorgan and the companies it
acquired, Bear Stearns and Washington Mutual, of egregious fraud, saying
that they created and sold mortgage bonds backed by loans that they knew to
be exceptionally bad.

And there`s proof.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Internal e-mails uncovered in a lawsuit against
JPMorgan chase now show employees may have known about serious flaws with
thousands of home loans leading up to the financial crisis.

(END VIDEO CIOLP)

SCHULTZ: Hundreds of e-mails as well as employee interviews, all part
of Dexia`s lawsuit offer a new look into Wall Street`s mortgage machine.
According to "The New York Times," the documents filed in federal court
reveal that JPMorgan defied quality controls, and ignored problems,
sometimes hiding entirely in a quest for profit.

And the e-mails show there was a lot of internal pressure to unload
the securities.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: A 2006 Bear Stearns e-mail reads like something
out of "Glengarry Glen Ross". Everybody start to unload. Use the sales
force. Use the dealer desk. Get on your game.

(END VIDEO CLIP)

SCHULTZ: JPMorgan denies any wrongdoing and is contesting the
allegations in court.

Joining me tonight, former New York governor and former attorney
general of New York, Eliot Spitzer.

Mr. Spitzer, good to have you with us.

ELIOT SPITZER (D), FORMER NEW YORK GOVERNOR: Ed, thank you for
inviting me.

SCHULTZ: This has got to be a clear indication of fraud as I see it.
These are damaging e-mails.

SPITZER: Absolutely. Remember, the defense of the banks has
traditionally been we got it wrong, but we didn`t lie. We made a mistake,
but we didn`t deceive.

The beauty of e-mails is they give you a contemporaneous vision and
understanding of what people knew. These e-mails make it very clear. And
there are equally damning e-mails related to many other banks that at the
time Morgan, WaMu, Bear Stearns, sold these securities, securitized the
debt, as they say on Wall Street, they knew the mortgages were bad.

That is the essence of this, and it completely debunks their defense.

SCHULTZ: Where is the Justice Department?

SPITZER: Absent, missing in action. Look, you and I think have the
same frustration. We thought with a President Obama, with the Justice
Department unlike what we saw in the Bush administration, that embraced the
banks and believed in self regulation, believed in the mythology, Wall
Street can`t do anything wrong. We thought these guys would step up to
the plate and prosecute and be aggressive. It hasn`t happened.

Lanny Breuer, head of the criminal justice division, major, major
disappointment. I`m glad he is leaving. He has been an abject failure.

SCHULTZ: Well, if they did any investigating at all, how can they not
find these e-mails?

SPITZER: Well, that is the fascinating question. There are a set of
documents produce bade company called Clayton that was a due diligence
company that years ago was hired by the banks to go in and say are these
mortgages good? And as you said in the top of the segment, they found out
the mortgages were bad. So what did the banks do with that information?
Suppressed it.

Anybody who had done a good investigation would have seen this,
charged the banks, charged individuals, and said let`s finally unravel this
daisy chain that`s killing our economy.

SCHULTZ: This is the dot that needs to be connected for the American
people. This drove us right damn near off the cliff. And it`s cost the
American taxpayers a boatload of money because we`ve had to subsidize,
what, a stimulus package that has put us further in debt in this country.

And how can these folks get off scot-free?

SPITZER: It is an outrage. The anger you and I feel should be felt
by everybody. But it goes beyond that. The cost of the cataclysm has been
calculated at $13 trillion.

Now, I`m sick and tired of hearing the banks say we repaid the TARP
money, as though that was the entire magnitude --

SCHULTZ: Yes.

SPITZER: -- of what we owed them, or they owed us.

Here is the other figure: every year, Ed, we subsidize these too-big-
to-fail institutions by $83 billion, because we guarantee them, their
borrowing costs go down. That`s not my number. That`s Bloomberg.

SCHULTZ: Yes.

SPITZER: It`s a crazy amount of money that they benefit from our
subsidy.

SCHULTZ: And the remedy is congressional action, laws, oversight,
regulation.

SPITZER: But it`s prosecution. We had the laws.

SCHULTZ: We start with the prosecution, then we go to the law.

SPITZER: We had enough laws. I mean, we had the laws.

SCHULTZ: We had enough laws?

SPITZER: We didn`t have prosecutors willing to do what is hard, which
is to look -- Jamie Dimon had the best P.R. in the world. His bank time
and time again fraud, misbehavior, corruption from LIBOR to the "London
Whale" to securitizing bad debt. The mythology of Jamie Dimon should be
ripped apart. People should know the truth about JPMorgan.

SCHULTZ: And we should report tonight that this afternoon, we learn
that the banking industry recorded its highest earnings since before the
financial crisis. Wall Street bonuses are also up, yet the middle class
still feeling the pinch in this country in a big, big way. What`s the
solution?

SPITZER: Well, look, the solution is that since 1975, median family
income has been flat. Wages have been flat because we have permitted the
tax burden to shift to the middle class and the poor, and we have exempted
the wealthy. We have broken down union rules that permitted unions to
organize.

We have also had technology and globalization, two things we can`t
repeal and shouldn`t repeal. But we need social policies that begin to
help the middle class, which means changes in tax policy, rules relating to
organization.

SCHULTZ: Governor Spitzer, good to have you with us on THE ED SHOW
tonight. Come back.

SPITZER: Thanks. I will.

SCHULTZ: Thank you so much.

Up next, the South wants the federal government to stop meddling in
their elections. The whole country needs to pay very close attention to
the Supreme Court of the United States tomorrow.

And New Jersey Governor Chris Christie was not invited to the biggest
Republican gathering of the year. Coming up, I`ll tell you why Republicans
are pushing him aside, and the panel will weigh.

Stay tuned. We`re coming right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

NARRATOR: Despite Johnson`s historic Civil Rights Act of 1964 that
had put an end to segregation, the web of local laws continued to deny
black Americans the right to vote.

DR. MARTIN LUTHER KING, JR., CIVIL RIGHTS ICON: About 192 Negroes
were registered on the average a month in the state of Mississippi -- all
over the state, 192 a month.

Now, on the basis of this rate of registration, it would take exactly
135 years for half of the Negroes eligible to vote in Mississippi to become
registered.

(END VIDEO CLIP)

SCHULTZ: Welcome back to THE ED SHOW. You have to wonder if we`re
going forwards or backwards. That of course was Dr. Martin Luther King
back in 1965, pushing President Johnson for a voting rights bill because of
the Jim Crowe Laws in the south. Unfortunately now old Jim Crowe is trying
to make a comeback.

Under section 5 of the Voting Rights Act, the states shown on this map
need permission from the federal government to make changes to voting
regulations. For instance, let`s take the state of Mississippi, as Dr.
King was talking about. If Mississippi wants a voter ID law, they have --
currently have to prove that it will not discriminate against minorities.

Tomorrow in front of the United States Supreme Court, attorneys for
Shelby County, Alabama, will say that special protection for minorities is
outdated. They want to change it. That`s in spite of the fact that the
Voting Rights Act was re-authorized by President George W. Bush back in
2006. Frank Ellis, an Alabama attorney, says registration of white and
minority voters in Shelby County, Alabama, has been the same for a decade.
His quote was "the south has changed. It is not the same as it was in
1964. The whole country has changed. We are a dynamic society, not just
in Alabama, but everywhere."

Wait a minute, not everywhere. In Florida last year, the Justice
Department had to step in time and time again to stop Governor Rick Scott
from purging minority voters from voting roles and eliminating early
voting. Thankfully, Attorney General Holder knows minority voter
suppression is real.

(BEGIN VIDEO CLIP)

ERIC HOLDER, ATTORNEY GENERAL: It is the position of this Department
of Justice and certainly this attorney general that we will vigorously
defend and vigorously use Section 5. The need for it is still there.

(END VIDEO CLIP)

SCHULTZ: Make no mistake, this is all about politics. The Washington
attorney for Shelby County, Alabama, was the same attorney who represented
Republicans in Ohio and Florida who were trying to reduce early voting in
this last section cycle. The fact is Republicans can`t win minority votes
with their ideas. They just keep getting busted when they try to suppress
minority votes by breaking the rules. So now they`re trying to eliminate
the rules all together.

As we saw in states like Ohio and Pennsylvania last year, the
suppression efforts goes far beyond the south. The bottom line is rolling
back protections for minority voters in these states isn`t the answer. We
need to expand those protections to cover the entire map and kill Jim Crowe
once and for all.

After losing the 2012 election in a big way, the Republicans build on
their winning strategy with the party`s biggest losers. Our panel on Chris
Christie`s lost CPAC invitation.

Michele Bachmann opens up about campaign memories.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R), MINNESOTA: I didn`t get anything wrong.

(END VIDEO CLIP)

SCHULTZ: Selective memories.

Unanswered questions still plague the Trayvon Martin case. We`ll look
back on the murder, as thousands pay tribute to the slain teen.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

GOV. CHRIS CHRISTIE (R), NEW JERSEY: After considerable discussion
and research, I have decided to participate in Medicaid expansion under the
Affordable Care Act.

(APPLAUSE)

(END VIDEO CLIP)

SCHULTZ: Welcome back to THE ED SHOW. Obviously, New Jersey Governor
Chris Christie today infuriating the Republican establishment. Christie
said Medicaid expansion will provide health care for his state`s poorest
citizens and save money in the long run. Holy smokes. How do you get away
with that in the Republican party?

Well, it`s a common sense move, and it should please the White House.
But moves like this could be why Christie wasn`t invited to CPAC, the
biggest Republican gathering of the year. It`s an odd snub, considering
Christie is a very popular conservative. He is a Republican governor in a
blue state with a 74 percent approval rating.

How the heck do you beat that? Plus, Christie is really a typical
Republican. He is pro-life. He has taken on unions. He has given tax
cuts to the wealthiest residents in New Jersey. He has cut government
jobs. And he even vetoed a minimum wage increase.

That resume won`t get him invited? Christie is also a 2016
presidential favorite among many. But somehow he didn`t make the cut for
the Republican Super Bowl. Instead, CPAC will feature winners like Mitt
Romney, Sarah Palin, and Allen West. The reason these people made the cut
is because they would never say things like this.

(BEGIN VIDEO CLIP)

CHRISTIE: I cannot thank the president enough for his personal
concern and compassion for our state and for the people of our state.

(END VIDEO CLIP)

SCHULTZ: So Governor Christie wasn`t invited to CPAC because he works
with the president of the United States to help his citizens in New Jersey.
He did it after Hurricane Sandy, and he did it again today by expanding
Medicaid help in his state.

This is a shining example of the blind hate Republicans have for
President Obama. They choose to ditch a potential presidential nominee
because he works with the White House? Moderate Republicans across
America, beware. Your party has definitely changed.

For now, let`s turn to "Salon" editor at large Joan Walsh. Also with
us tonight "Washington Post" columnist E.J. Dionne, and Republican
strategist Liz Mair. Great to have all of you with us tonight.

Liz, Chris Christie, a popular Republican. I just gave you his short
resume right there. Why wouldn`t they invite him to CPAC? Doesn`t he have
anything to offer?

LIZ MAIR, REPUBLICAN STRATEGIST: I think that he does. But I think
that it`s worth noting that CPAC is getting itself in a lot of trouble this
year for what appears to be kind of an exclusionary policy regarding a
number of people who are within the Republican tent, whether that is Chris
Christie -- there has been some controversy surrounding their inclusion of
gay conservative groups. That is something that has occurred for them in
the past.

And I think the criticism that you`re hearing from some quarters is
that unfortunately CPAC seems to be cutting out a lot of the people who
potentially present a more modern and more appealing version of
conservatism that is a little bit broader based, maybe a little more
inclusive.

SCHULTZ: It`s the Tea Party`s soiree.

MAIR: Actually, let me distinguish that a little bit, because, first
of all, I think Tea Party -- the meaning of that depends a little bit on
where you`re looking. But there are actually some very inclusive members
of the Tea Party who are very socially liberal and fiscally conservative.

SCHULTZ: Liz, it`s about Obama.

MAIR: It`s not when you`re look at the gay conservative groups. I
think this is a problem that goes -- I think you`re actually giving CPAC a
little bit of a pass here by letting them get off with just some excuse.
It`s beyond that.

SCHULTZ: Is this snub about resentment and hate towards President
Obama? What is it?

JOAN WALSH, "SALON": I think there is definitely some of that, Ed.
But, you know, somebody from CPAC told the "National Review" that they
didn`t invite Christie because he has a limited future in the Republican
party. And then you look at Allen West and Sarah Palin and Mitt Romney and
think about their future in national politics. They don`t have one.

So, you know, it shows I think the extent to which conservatism has
become a cult, not a vibrant political movement that has conversations and
disagreements with itself, where somebody like Chris Christie with that
unbelievable voting record --

SCHULTZ: Sure.

WALSH: -- that you ticked off, can come and he can agree with them,
frankly, on most things and disagree about an issue or two, and everybody
can have a debate and talk about it.

Instead, it`s much more about getting rid of the heretics and also
snubbing anyone who has anything to do with President Obama.

MAIR: Yeah, I agree with that, Joan, yeah.

SCHULTZ: E.J., does this show the Republicans are just more concerned
with ideology than winning races? If there is a guy who could bring in
people from the center, it would be Christie. All of those speakers that
CPAC is going to, none of them are in the center.

E.J. DIONNE, "THE WASHINGTON POST": Well, I think the core of this
CPAC conference is going to be the Edsel. I mean, this is a really
backward-looking meeting, when you look at the guests they have. And I
think Chris Christie will wear their scorn as a badge of honor, if I`m
permitted to paraphrase Dan Quayle on your show.

Chris Christie is a very smart politician. He knows that Barack Obama
carried New Jersey by 17 points the last time. He is up for reelection
this fall. He knew he was going to be judged by how he handled Hurricane
Sandy, so he worked with the president because that was more important to
him than Republicans not liking Barack Obama.

And on the Medicaid thing, that is a very good deal for states,
particularly for hospitals in the state. And he just took it. This is a
politician who knows he can`t go anywhere unless he gets re-elected this
year.

SCHULTZ: Sure.

DIONNE: And he is making a heck of a play for Democrats.

SCHULTZ: Liz, you gave us your thoughts on CPAC. What about
Christie? Does this help him in the long run?

MAIR: You know, I think that Christie is probably pretty safe to be
reelected this year. So I`m not sure that this necessarily figures into
the calculus too much.

SCHULTZ: I`m talking about being a presidential candidate. Does this
exclude him from possibly being on the national ticket to run for
president?

DIONNE: No, I don`t think it excludes him. John McCain was never a
big fan of CPAC and certainly didn`t maintain much of a presence there.
I`m not sure that he spoke there in 2008 even. If I recall correctly he
did not. And I think that may have been a conscious choice on his part.

I don`t think it necessarily harms Christie. You know, ultimately, I
think that being in a position to go and speak to people at CPAC does give
you the opportunity to have a wider audience for your views and to make
sure that conservatives are hearing it. And I think that`s beneficial for
conservatives.

I think, as Joan said, it would be helpful at this point, where I
think there is a lot of concern about modernization within the conservative
movement, if we had as many voices as possible within that gathering. But
at the end of the day, I don`t think it hurts Christie per se.

SCHULTZ: -- very narrow right now. CPAC has chosen that they will
throw loyalists to the party right outside. It`s -- now to me there is
certainly two parties here. They`re just by banner under one umbrella.

Let`s go to sequestration. Joan Walsh, the president making a heck of
a pitch. And of course you`ve got John Boehner telling the Senate to go
back to work. And he is relying on the two bills that they passed in the
last session of Congress. Where are we? Who wins? Who loses?

WALSH: We`re in big trouble. You know, I feel like watching
Hurricane Sandy approach last year, Ed. And I could tell my daughter to
evacuate in New York and my family got out. But you can`t -- you really
have no way to prepare for this. Kids kicked out of Head Start, 750,000
jobs lost. I really don`t see a whole lot of hope for a compromise.

SCHULTZ: E.J. Dionne, has the Republican from Virginia, Scott Rigell,
ended his career with Republicans now that he was traveling with the
president of the United States today to talk about fixing a financial
problem in this country?

DIONNE: I actually don`t think so. I think, to go back a bit to our
earlier conversation, as Liz suggested, there are two kinds of conservative
right now. There are conservatives who say there is nothing wrong but the
packaging and are really taking this hard line on the sequester. And there
are conservatives saying hey, wait a minute, we got to rethink some stuff.
We lost five of the last six elections.

And I think some -- people like the congressman from Virginia are
going to look very good come November of 2014, because this sequester is
just stupid. We`re taking a whole lot of money out of the economy at a
moment when we should be goosing the recovery, not pulling it back. And I
think a lot of Republicans, in their heart of hearts, know that, at least
Republicans in the electorate, if not in the House of Representatives.

SCHULTZ: All right, Joan Walsh, E.J. Dionne and Liz Mair, great to
have you on THE ED SHOW tonight. Appreciate your time.

Still ahead, tonight marks a one year since a controversial shooting
which touched off a national protest. It also sparked a debate about self-
defense. We`ll tackle the Stand Your Ground Laws just ahead. Stay with
us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. Despite a vicious smear
campaign by his former friends and an unprecedented filibuster, the Senate
voted 58 to 41 this afternoon to confirm former Nebraska Senator Chuck
Hagel as President Obama`s choice for secretary of defense. And that`s a
big talker tonight on the social media.

On Facebook, Cindy Shannon writes "best wishes and about time. What a
load of crap to put him through."

Greg White calls Hagel "a rarity, a Republican with common sense,
compassion, courage of his convictions, and a brain."

And Kenneth Colin says "Hagel is the right man to bring the boys home.
Afghanistan, close it down."

You can go to our Facebook page right new and you can join in on the
conversation. And don`t forget to like THE ED SHOW when you`re there. We
appreciate that.

Here she comes. Congresswoman Michele Bachmann of Minnesota gives
herself high marks on her presidential run. Well, of course we`re going to
do a fact check on that. Stay with us. We`re right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BACHMANN: Let`s all say happy birthday to Elvis Presley today. Happy
birthday!

(END VIDEO CLIP)

SCHULTZ: Welcome back to THE ED SHOW. That was Congresswoman Michele
Bachmann of Minnesota wishing Elvis Presley happy birthday on the
anniversary of his death. Congresswoman Bachmann has now resurfaced after
barely holding on to her seat in the last election in Minnesota. In an
interview with Patrick Henry College, she described her performance as a
presidential candidate.

(BEGIN VIDEO CLIP)

BACHMANN: And I was very proud of the fact that I didn`t get anything
wrong that I said during the course of the debates. I didn`t get anything
wrong, and that`s a huge arena.

(END VIDEO CLIP)

SCHULTZ: Well, it is. And here are just a few things that
Congresswoman Michele Bachmann got wrong during the Republican primary
debates. She said president Obama canceled the Keystone Pipeline. Simply
not true. She didn`t seem to know Libya is in Africa. She denied ever
saying that HPV Vaccine was dangerous, but she had said it was potentially
dangerous in a previous debate.

She said President Obama had agreed to just 21 billion dollars in
budget cuts when the real number was 917 billion over 10 years. She
repeated a popular Republican lie about Obamacare taking 500 billion
dollars from Medicare recipients.

Here is another claim she made about Obamacare.

(BEGIN VIDEO CLIP)

BACHMANN: The CBO, the Congressional Budget Office, has said that
Obamacare will kill 800,000 jobs. What could the president be thinking by
passing a bill like this, knowing full well it will kill 800,000 jobs?

(END VIDEO CLIP)

SCHULTZ: Well, the Congressional Budget Office never said Obamacare
would kill jobs. One of Bachmann`s more interesting mistakes happened
outside the debate stage.

(BEGIN VIDEO CLIP)

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

(END VIDEO CLIP)

SCHULTZ: Spirit. John Wayne wasn`t born in Waterloo, Iowa. It was
John Wayne Gacy, the serial killer. Congresswoman Michele Bachmann,
congratulations on a stellar presidential run. Please do it again.

Tonight in our survey, I asked you what is more offensive, John
Boehner`s language or John Boehner`s job performance. Three percent of you
say Boehner`s language; 97 percent of you say his performance.

Coming up, it has been one year since the shooting death of Trayvon
Martin. We`ll talk about what has changed and what hasn`t when it comes to
guns and Stand Your Ground Laws. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in the Big Finish tonight, one year ago tonight, Trayvon
Martin was shot and killed in Central Florida, sparking a national debate
about self-defense and Stand Your Ground Laws. Tonight Trayvon`s parents
are making the anniversary at the vigil in -- marking the anniversary at
the vigil in Union Square Park Here in New York City.

Tonight`s vigil is just one of a dozen of Million Hoodie Marches held
over the past year mourning Trayvon`s death, and demanding change.
Trayvon`s parents became political activists after their son`s death
because police refused to arrest the gunman right away under Florida`s
Stand Your Ground statute.

Neighborhood watch volunteer George Zimmerman claims Trayvon attacked
him so he shot Trayvon in self-defense. The police eventually arrested
Zimmerman and released these pictures nine months after Trayvon`s death.
The pictures show cuts on Zimmerman`s face and on the back of his head the
night of the shooting. But there are also recordings of Zimmerman before
the shooting telling police Trayvon looked like he was up to no good, or on
drugs or something.

Trayvon was not armed and was killed just 70 feet away from his
stepmother`s town house. A 911 dispatcher asked Zimmerman to wait until
police arrived before approaching Trayvon, and prosecutors claim
Zimmerman`s profiled Martin. Zimmerman has pleaded not guilty to second-
degree murder charges.

(BEGIN VIDEO CLIP)

SYBRINA FULTON, TRAYVON MARTIN`S MOTHER: As a parent I just don`t
quite understand how someone can be a make-believe cop, pursue my son, who
had every right to be in that neighborhood, chase him, get in a
confrontation with him, shoot and kill him, and not be arrested. Something
has to be done.

(END VIDEO CLIP)

SCHULTZ: This summer, a jury will decide whether Zimmerman acted in
self-defense. In the meantime, Trayvon`s parents marked their son`s
birthday with a peace walk led by actor Jamie Foxx. Trayvon would have
been 18 years old this month.

We should note Zimmerman, George Zimmerman has sued NBC Universal for
defamation,. And the company has strongly denied his allegations. Joining
me tonight, Trayvon Martin attorney Jasmine Rand. Jasmine, good to have
you with us this evening.

JASMINE RAND, ATTORNEY FOR MARTIN FAMILY: Thank you for having me.

SCHULTZ: What are Trayvon`s parents asking lawmakers to do?

RAND: Trayvon`s parents are asking lawmakers to reexamine the Stand
Your Ground Law. What is happening now is these laws have been enacted all
over the nation, and it`s leading to vigilante behavior. As the Stand Your
Ground Law stands now, it acts as a sword and a shield. It acts as a sword
because it allows somebody to be an initial aggressor. And it acts as a
shield because it allows them to claim themselves under the cloak of
victimhood after they begin a confrontation.

SCHULTZ: So should George Zimmerman be protected by the Stand Your
Ground law in this case?

RAND: Absolutely not. George Zimmerman was the initial aggressor.
He found Trayvon Martin. He pursued him. Trayvon Martin tried to escape
from George Zimmerman. And the evidence has been very clear from the
beginning, Ed. Trayvon Martin had a pack of skittles and George Zimmerman
had a 9 millimeter. That`s all the evidence we need in the world.

SCHULTZ: Has Trayvon`s death been a big part of the national gun
debate?

RAND: Trayvon Martin`s death, I feel like the shot that we heard on
February 26th, 2012, was a shot that was heard around the world. And it
sparked the international debate on gun violence. But when we heard the
shots in Aurora, when we heard the shots in Newtown, when we heard the shot
that killed Jordan Davis, and most recently that shot that killed Hadiya
Pendleton, those were the shots that caught the attention of President
Barack Obama, who recently introduced some executive and legislative
changes that he wants to see before the Congress.

SCHULTZ: Is it going to be hard to get a conviction?

RAND: I don`t think that it`s going to be hard to get a conviction.
As I said, we have two very critical pieces of evidence. We have an
unarmed teenager and George Zimmerman that had a gun. And Trayvon Martin
ended up dead. I think that that`s going to be very clear to the jury.

SCHULTZ: How emotional is this going to be?

RAND: I think it`s very -- a very emotional time for the parents.
Tracy Martin earlier today said something that really stuck with me. And
what Tracy said is that to the nation this is a story. And to us this is
the grief that we deal with every day, the loss of our son.

SCHULTZ: Jasmine Rand, thanks for your time tonight on THE ED SHOW.
Appreciate it very much. Thank you very much.

RAND: Thank you for having me.

SCHULTZ: Your trial is expected to start on June 10th. That is THE
ED SHOW tonight. I`m Ed Schultz. "THE RACHEL MADDOW SHOW" starts right
now. Good evening, Rachel.

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

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