updated 11/18/2013 11:40:30 AM ET 2013-11-18T16:40:30

THE ED SHOW
November 15, 2013
Guest: Wendell Potter, Corey Hebert, Eric Stern, Barry Lynn, John
Fugelsang, Mike Papantonio


(BEGIN VIDEO CLIP)

MITT ROMNEY, (FRM) GOVERNOR, MASSACHUSETTS: .past is a broken
promise, is dishonesty.

UNIDENTIFIED MALE: There are 47 percent who are with him who are
dependent upon government.

UNIDENTIFIED FEMALE: Literally.

ROMNEY: The little problem that the President has is a broken
promise, is dishonesty.

(Inaudible) precisely with exactly what I said.

And that`s, of course, what`s really striking.

But I standby what I said whatever it was.

UNIDENTIFIED MALE: .who believe that they are entitled to healthcare
, to food, to housings, you name it.

REP.MICHELE BACHMANN (R) MINNESOTA: Literally, literally, literally.

UNIDENTIFIED MALE: You`re a god (inaudible).

BACHMANN: We all like geniuses.

UNIDENTIFIED MALE: You don`t have a gut -- IQ of 160.

UNIDENTIFIED MALE: .that they never said that they had any concern at
all and never had a plan.

BACHMANN: Literally--

UNIDENTIFIED MALE: .for the 30 million people that everyday are
waiting for this plan to go into effect.

ROMNEY: And that that -- that`s, of course, what`s really striking.

(END VIDEO CLIP)

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

Were coming to you live from Seattle, Washington, where in the state
of Washington the exchange is working. Positive country.

Okay, so we`ve got 39 Democrats who have decided to side with John
Boehner. I think it`s a deal with the devil when it comes to legislation.

President Obama gave him the opening. I think he made a huge mistake
on Thursday by caving to the Republicans and giving junk insurance a new
life in the Affordable Care Act. It`s going to be an extension.

I think the President needs to stand firm on this. This is ObamaCare.
It`s not Clinton Care. It`s not Reagan Care. It`s ObamaCare. Own it. He
needs to remind everyone that this is the law of the land. We`re not
turning back.

House and Senate Democrats need to stop worrying about the midterms
and rally around this law which is going to save American lives. Well,
President Obama, I think is giving the Republicans an opportunity to get a
bunch of bullet points and a narrative that will play all the way to the
midterms.

For example, Republican Congressman Fred Upton, he`s the new hero,
proposing a bill on the House that takes the President`s quote fixed one
step further.

Not only would junk insurance be extended, it`s a Trojan Horse, but
insurance companies would be allowed to sell new junk policies with things
like lifetime limits on coverage. This totally goes against the Affordable
Care Act.

The bill would gut the consumer protections put in place by the law
known as ObamaCare. Well, earlier today, here we go, Upton`s bill passed
the House with the support of 39 House Democrats. And the Liberal
community across America, they`re wondering, "What the heck are these folks
thinking?"

Upton said today he thinks the bill is a better fix.

(BEGIN VIDEO CLIP)

REP. FRED UPTON, (R) MICHIGAN: What our bill did was it brought it
back, brought the attention back, and yes, we can resolve this issue for
millions of folks who have found that their premiums are going up, double,
triple, even 400 percent, and being stuck with the policy that, frankly,
they don`t want, they can`t afford, and they want to retain the choice that
they had which was really, when you go back to the debate back in 2010, I
don`t think it would`ve passed. Have they not been able to make this
promise that we know now is really not accurate.

(END VIDEO CLIP)

SCHULTZ: Come debate me Upton, you about four lies in there. I`ve
only got an hour show. I don`t have time to pick away at the whole dog on
sound bite.

Here`s the bottom line for the 39 Democrats. They must think that
there is going to be some legislative fix to junk policies. What they have
done has given an open highway to the insurance industry to add more stuff
so they can make more profits and screw the consumers. That`s how I see
it.

Do you really think that you can do a deal with a group of people who
have voted 43 times to gut the entire bill? After yesterday, John Boehner
saying, "You can`t trust the White House. There is no fix to this bill."
Boehner says there`s no fix to the bill so 39 Democrats go and vote with
the Republicans. Go figure. It is stunning.

If junk policies like things like Lifetime Caps still exist, ObamaCare
will not work the way it was supposed to work.

Meanwhile, failed Republican Presidential Nominee Mitt Romney is also
seizing on the opportunity to slam the President.

The middle class millionaire had the nerve to call the President
dishonest.

(BEGIN VIDEO CLIP)

ROMNEY: The real problem with the President`s plan is not just to
roll out. That`s implementation and the glitches of various kinds. It
should have been done better but it wasn`t. But the real problem that the
President has is a broken promise, is dishonesty.

(END VIDEO CLIP)

SCHULTZ: Well, Romney needs to stay hidden in his car elevator, I
think. I think we should remind the Mittster , 47 percent dishonesty
caused him the election. We don`t have enough hours in the day to run all
of the tape on that story, either.

Up next, here comes Michele Bachmann. She wasted no time running to
Fox News this morning to slam ObamaCare.

(BEGIN VIDEO CLIP)

REP.MICHELE BACHMANN (R) MINNESOTA: It`s panic mode and it`s
anybody`s guess because I think Democrats are really listening to what the
President said yesterday.

They know that the American people are going to be just as bad off
today as they were before the press conference.

(END VIDEO CLIP)

SCHULTZ: Then we have Geraldo Rivera. Geraldo came out this morning
and compared problems with ObamaCare to George W. Bush`s handling of
Hurricane Katrina.

(BEGIN VIDEO CLIP)

GERALDO RIVERA, AMERICAN ATTORNEY, AUTHOR, REPORTER, TALK SHOW HOST:
It`s like weapons of mass destruction. It`s like President George W. Bush
after Katrina.

UNIDENTIFIED MALE: (inaudible)

RIVERA: This is the President who has stumbled so badly but he`s the
only President that we have. I hope we can find a way we --

UNIDENTIFIED MALE: But George Bush was the only President--

(END VIDEO CLIP)

SCHULTZ: So here comes the New York Times. The Time`s also made the
truly unbelievable comparison this morning. A headline on their website
read, "Health Law Rollouts Stumbles Draw Parallels to Bush`s Hurricane
Response."

Give me break. Unfortunately, this isn`t the first time these
comparisons have been made.

The chattering class recently managed to compare ObamaCare to Katrina
and Iraq in a matter of seconds.

(BEGIN VIDEO CLIP)

NICOLE WALLACE, MR.BUSH 43 COMM. DIRECTOR: Obama, to continue to
speak about the actions of his administration as a guy with a great seat
but no responsibility is totally off putting. And it does not have a whiff
of leadership in this.

RON FOURNIER, NATIONAL JOURNAL: And if I could -- on credibility,
just like on Katrina when the big problem that President Bush had was
diminishing the significance of what was happening, say, "Hey, way to go
brownie."

You heard the President yesterday talking about glitches and kinks,
this is bigger than klinks (inaudible) case.

WALLACE: Yeah, I mean no wonder they brings this. Katrina was a
storm.

FOURNIER: He`s got to be honest.

WALLACE: The healthcare law was of Obama`s creation.

FOURNIER: Sure, sure.

WALLACE: So I`m not defending my White House`s handling Katrina but
it was a natural disaster. This was a disaster of Obama`s creation and
imagination.

FOURNIER: Maybe the Iraq war is a better analogy.

(END VIDEO CLIP)

SCHULTZ: Comparing a law that will save countless lives in this
country to these two dark events is absolutely despicable.

President Obama`s healthcare law will provide 30 million Americans
with healthcare. George W. Bush`s negligence in the handling of Katrina
caused American lives.

The botch war of choice, may I remind all Americans in Iraq resulted
over 4,000 American soldiers being killed for what?

Comparing these two horrible chapters in American history to a law
that will save lives is truly unbelievable.

Let`s reel in what is happening now. What`s happening now is that the
Democrats seem to be at a cross roads. They need to get in caucus and get
their confidence back, get a little hitch in their step, so to speak.

The Democrats need to figure out what they`re for instead of worrying
about what they`re against. Boehner is no ally. Cantor is no ally. They
have no solution. This is the time for the Democrats in the House to be
strong and to speak out in their districts to make sure that the American
people know that this is a positive social step forward for the security of
the country.

You won`t find Boehner doing that in Cincinnati. You won`t find
Cantor doing that in Virginia.

Bottom line here is, Democrats, if you want this, whether you like the
rollout, whether you like the website, whether you would agree with
anything at this point, intestinal fortitude is what it`s all about right
now. You`re going to have to get behind this President. You`re going to
have to speak in total support of the President because yesterday in
Washington, in front of the media, the president, to me, look like he
didn`t have a whole heck of a lot of confidence.

He looked to me like he wasn`t walking as sure as he should have been.
Yet when he goes out behind the steel workers, in front of the steel
workers in Ohio, it was kind of a different President.

There is strength in numbers. And if the Democrats don`t hold
together on this and fight back against the junk insurance industry, we
will lose ObamaCare. This is a crossroads for America. This is a vital
time in American history.

We`re going to find out if the private sector and government can work
together but I do believe that the 39 Democrats who were good people and
some of them my friends, I think they made the wrong choice thinking that
there`s going to be some honest brokers over on the other side and were
going to be able to have a legislative fix to this.

This isn`t the House Democrats` problem. This is the President`s
problem. But the President needs the House Democrats right now across the
country.

Basically what these 39 Democrats have done is given Boehner and the
Republicans about the best bullet point they could ever have for the next
year going into the midterms. Why? Because now, it`s a bipartisan bill
coming out of the House to fix something the President didn`t get right
because he said something about a promise of who could keep what.

The bottom line is the President has given all Americans a chance to
get better insurance and rid the insurance industry of the crap that
they`ve been able to put out on the market. Do you want it Democrats? Do
you really want it? Don`t tell me, show me. Get together as a team. And
Mary Landrieu, you`re not a Democrat. You`re not.

You`re more concerned with what`s happening in Louisiana than you are
what`s happening around this country. We have an opportunity as a
progressive movement of this country to see something true. Just like
social security, just like Medicare and Medicaid. Real change to save
American lives, and to run away from this at this juncture is the wrong
move. Get your cellphones out, I want to know what you think. Tonight`s
question, do Conservatives have any right to compare ObamaCare to Katrina
or Iraq? Text A for yes, text B for no to 67622. You can always go to our
blog at ed.mnsbc.com. We`ll bring the results later on the show.


For more this time, let`s start -- let me bring in Wendell Potter of the
Center for Public Integrity and Dr. Corey Hebert of LSU Health Science
Center. Gentlemen great to have you with us tonight.

Dr. Potter you first. Mr. Potter how much of a setback is this? How
much of a win is this for the insurance industry? How damage into
ObamaCare? Your thoughts?

WENDELL POTTER, CENTER FOR PUBLIC INTEGRITY: Well, first of all Ed,
thank you very much for what you`re doing for calling like you really is.
I really appreciate you and your work. It`s just so important.

The -- this is I think a temporary setback. The President was hemmed
in here by people in his own party who should have known better who, as you
said, are more interested in getting reelected, than in the best interest
of their constituents. Some of these are the same people who cost us, the
public option, Ed. So, it`s regrettable. It`s pretty disgusting to
actually watch it, to tell you the truth.

But I think it`s temporary. I think that some insurance companies
will take the President up on this offer because every of the day this is
about profits. And if they think they can continue to keep in people in
junk plans they`ll do it until they can no longer do it.

I think so, if the Administration and Democrats can actually get their
messaging right, they can convince these people who are in these policies
to dump them and to look at the any exchanges to get coverage that will be
available to them that will be better coverage at lower cost.
Unfortunately, the President was also failed by his own people by screwing
the exchanges at this, badly as they`ve done. That will be fixed.

So, it just a matter of a few days and actually maybe a couple of
weeks before things will get better. But you can`t, yeah, what we`re going
to do about Democrats?

SCHULTZ: Well, there`s no question that the rollout of the website
has propelled us to more conversation about what`s wrong with the bill
instead of what`s good about it.

POTTER: Exactly.

SCHULTZ: The fact is where the exchanges are operated? Where the
state exchanges are operating? There`s no negative stories coming out of
those states.

POTTER: Exactly.

SCHULTZ: Dr. Hebert insurance companies claim now that they have to
raise rates to reenroll people. And I think what we need to realize is
that the insurance industry is chipping away at the edges of this as best
they possibly can with lobbyist in Washington. They`re going to take any
opportunity they possibly can to raise rates. What does this mean to the
providers?

COREY HEBERT, ASSISTANT PROFESSOR, LSU UNIVERSITY HEALTH SCIENCES:
Well the interesting part about this is that insurance is brought yearly.
So, the Charlettons (ph) that actually run the insurance companies knew
they were selling junk policies because the Affordable Care Act was enacted
two years ago. So they knew that when they sold it. So why don`t we just
get mad at the people that are trying to do something proactive to save
lives as opposed to being mad at the Charleetons that actually enacted all
this garbage.

Now I will tell you, it means something for the providers because if
the people do not have insurance because the rates are too high, because
these mongers are not doing what they`re supposed to do in the insurance
industry. It is going to be a problem for a providers and it`s not going
to be good.

SCHULTZ: Yeah.

HEBERT: I mean you have to think about this in a more global sense
because providers of the people that are on the front lines taking care of
the patient. And if they cannot get the money that they deserve for taking
care of the patient, they`re not going to do it. And I totally agree with
you Ed that -- I mean the Democrat should not have caved yesterday. That
was horrible.

SCHULTZ: If the President wants to admit a mistake, if the President
wants to admit a misjudgment or an inartful set of words that he put out in
front of the American people. Let him own it in the President did. But
there`s another reason for the House Democrats or the Senate Democrats all
of a sudden buy into this rightwing thinking, we`ve got a legislative fix.

The legislative fix has been done. We are reeling in the junk
insurance industry that has been screwing big time consumers in this
country for decades. Now, I want to talk about the State of Washington
here. Here in the state, the exchanges are working. By January 1st,
77,000 people will have Medicaid or private insurance through the state
exchange and earlier today, Washington state insurance Commissioner Mike
Kreidler said this.

(BEGIN VIDEO CLIP)

MIKE KREIDLER, INSURANCE COMMISSIONER, WASHINGTON: You can`t change
the game rules, middle of the game, and we are in the middle of the game
right now.
`
(END VIDEO CLIP)

SCHULTZ: Wendell what`s your reaction to that?

POTTER: Well, you`re right, the Washington inside is working just
good and just fine, and so it`s doing the same thing in Vermont, Governor
Shumlin has made the same call. It will vary from state to state.

In California, a good commissioner there, Dave Jones he said he thinks
that the policy is good, should continue to be sold (ph). So we`re going
to see a next bag around the country, but I really think quite frankly that
we will not see all that many people who continue to stay on these junk
plans.

Once again, if Democrats can really figure you how to do the right
messaging, they can save these people from staying in junks plans. That`s
going to be goal number -- it should be goal number one on my view.

SCHULTZ: Well, there`s no doubt that the Democrats need to decide
that they are going to push for what they`re for instead of being worried
about .

HERBERT: Exactly.

SCHULTZ: . what people are against. And I think that really is a big
crossroads at this point. The other thing is that you`ve got 35 Republican
insurance commissioners across this country that do not want to see this
succeed.

But that doesn`t mean that the rest of the country should have to
suffer if there are successful stories that are out there, eventually that
will grow and I`m sure that`s what the President is banking on right now.

Gentlemen, great to have you with us tonight, Dr. Herbert and also
Wendell Potter. Thank you for your time. I appreciate it so much.

Remember to answer tonight`s question there are the bottom of the
screen. Share your thoughts with us on Twitter in Ed Show and on Facebook,
we always want to know what you think.

Coming up, Bachmann`s preexisting condition. One of the Affordable
Care Acts loudest opponents inadvertently admits. The law will help her
family, plus Fox news, conjures up more phantoms of ObamaCare. Trender
comes next, stay with us.

(COMMERCIAL BREAK)

SCHULTZS: Time now for the Trenders. The Ed Show social media nation
has decided and we are reporting. Here are today`s top trenders voted on
by you.

(BEGIN VIDEO CLIP)

BACHMANN: Champion of get repealing Obamacare.

UNIDENTIFIED MALE: The number three trender, change of plan.

BACHMANN: I lost my health insurance under ObamaCare.

UNIDENTIFIED MALE: So what are you going to do?

BACHMANN: I`m forced to go into the D.C. health exchange.

UNIDENTIFIED MALE: Michelle Bachmann says her insurance plan is
getting junked.

BACHMANN: I have a husband with very significant health issues. We
have debt heath insurance. We are forced to go on the website and
purchased the health insurance plan from the D.C. Health Exchange.

UNIDENTIFIED MALE: Hello, computer.

BACHMANN: I`m not going to waste my time in frustration until the.

UNIDENTIFIED FEMALE: Shall we play a game?

UNIDENTIFIED MALE: The number two Trender, Food for thought.

UNIDENTIFIED FEMALE: How would you feel if you had to tell your kids,
at the age of 10, that you were never coming home?

UNIDENTIFIED MALE: That wouldn`t be good.

UNIDENTIFIED FEMALE: And that`s what happened to me. I thought I was
never going to see my dad again because of him being an illegal immigrant.

UNIDENTIFIED MALE: Well, I`m trying to find somebody to get this
thing done.

UNIDENTIFIED MALE: House Speaker John Boehner can`t stomach
immigration reform.

JOHN BOEHNER (R) OHIO: We have no intention of ever going to
conference on the Senate Bill.

UNIDENTIFIED FEMALE: No, I`m not doing that. I`m sorry.

BOEHNER: There are hundreds of issues involved and dealing with
immigration reform. We`re going to move on a common sense step by step
approach in terms of how we deal with immigration.

UNIDENTIFIED FEMALE: You are driving me nuts.

UNIDENTIFIED MALE: And today`s top trender, pack check up.

SCHULTZ: Earlier this month, Hannity had a panel on the show. The
panel of guests said so called real stories about ObamaCare causing them
all kinds of harm.

UNIDENTIFIED MALE: Our new policy that we can have will have the same
benefits to it.

UNIDENTIFIED FEMALE: So we don`t even have insurance for our
daughter.

MICHELE COX, OBAMACARE OPPONENT: We are jumping through more hoops.

SCHULTZ: Well, it turns out those real stories were simply not
accurate.

UNIDENTIFIED MALE: Hannity only wants people on the show to agree
with him.

UNIDENTIFIED MALE: Fox News brings on more co-victims of ObamaCare.

UNIDENTIFIED FEMALE: Bill, I know that you built this car wash
company up, Bubbles Enterprises, and you sold the business you say because
of ObamaCare?

BILL LAWRENCE: The math was somewhere around $400,000.

UNIDENTIFIED FEMALE: We could not afford the almost $400,000 in
either penalties or fines or insurance premiums.

UNIDENTIFIED MALE: Fox News Channel. We report. You decide.

SCHULTZ: Not reporting, it`s lying.

(END VIDEO CLIP)

SCHULTZ: Well, joining me now is Eric Stern, Contributor Reporter for
Salon.com. Eric, good to have you back with us on the program. I remember
when Megyn Kelly started her program, she said it was going to be like the
other programs on Fox but, oh oh, it`s a lot like Hannity. Tell us about
Megyn Kelly`s guests. This guy Bill Lawrence and why his story doesn`t pan
out. What can you tell us?

ERIC STERN, SALON.COM CONTRIBUTOR: Well he owned a, he was on Megyn
Kelly. He posted on his Facebook page a few weeks ago that he sold his
business because of ObamaCare. Naturally then he was invited on Megyn
Kelly to tell his, you know, talk about his ordeal caused by ObamaCare. He
had a car wash with 290 employees, 13 locations. The 13 -- he says it`s a
$13 million in revenue a year. We have to trust him on that `cause he told
me that sort of an off the record figure. He wouldn`t show me audited
financials nor did he give them to Megyn Kelly, I learned. And he claims
that he had to shut it down because of ObamaCare because of the cost of the
employer mandate. He will be subject to the employer mandate but when I
called him, he told me there are a lot of other reasons that he was selling
his business.

SCHULTZ: Such as?

STERN: Many. Well, he basically started ticking off all these
problems that he`s experiencing in Texas with the business climate, taxes,
fees, permits. He was complaining about this permit, that permit, he needs
a permit to, you know, display air freshener in his car wash check out
counter that caused him $300. And he was, you know, talking about the
headache of managing workers. And he`s been doing this 22 years and he
wants out. And so, there are a lot of reasons he`s selling his business.

He does still claim and he sort of insisted to me that ObamaCare was
one of them. But if you sort of take a snapshot of his business, I don`t
think that it makes much financial sense for him to be selling out because
of Obamacare. And keep in mind, a huge private equity firm bought his car
wash and they see enormous upside in that business with or without
ObamaCare because they approached him three or four years ago.

SCHULTZ: So, a multitude of reasons is why this guy is bailing out of
his car wash business but he`s using ObamaCare as the ledge pin to tell
everybody how bad things were, but oh, by the way, a private equity firm
thought enough of it to put some money into it. Also find interesting in
your answer that there were regulations in Rick Perry`s Texas? How could
that ever be?

STERN: Yes.

SCHULTZ: Are you surprised as a reporter that Fox didn`t go further
with more rigorous fact checking on this guy?

STERN: No. Am I surprised? No. I mean, this is sort of what Fox
does and you know, Megyn Kelly incidentally, when she wants to be, she
could be very good journalist, she`s a lawyer, she understands how to
interrogate somebody, and how to ask questions. But, this is obviously a
show where that`s not what the game is. They want somebody just come on
and sort of give the Republican line and she`s just there to sort of cheer
lead and you know, there would no -- they were really -- it`s pretty clear
that they were very few probative questions asked either by Megyn Kelly or
by the people who preps the interview, the producers, and that`s about
(inaudible).

SCHULTZ: What is happening -- well, what`s part for the course,
what`s happening here is that Fox News is bringing people on with excuses,
not with absolutes about the healthcare law and they are -- as I can see it
big time, bending stories to present to the American people as absolutes.
What`s your take on it?

STERN: That`s correct. That`s correct. I mean, it`s just not the
case that this somehow that the employer mandate is going to make his
business not viable. It`s just that -- it`s just not that -- that`s not
reality. He does have to absorb a cost. There`s no question about that.
But it`s just -- for him to be able to sit there and say that he`s selling
his business because of ObamaCare, you know, he told me he attended
seminars and talked to lawyers and accountants for the whole year and he
came to the conclusion that ObamaCare is going to make his business
unviable and he`s got to sell it now. And it`s just more of the same and,
you know, Fox is not going to stop anytime soon and it`s just a fact of
life right now. What are you going to do?

SCHULTZ: Well, I don`t think there`s going to be too many people
across America who are going to feel sorry for guy who is grossing $13
million a year and whining about having to do something for his employees.
Eric, great to have you with us tonight. Thanks for joining us on the Ed
Show. Still ahead, Joe Biden`s fight for working Americans, but first.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Santa, if you will, I understand you don`t like to
say Happy Holidays.

UNIDENTIFIED FEMALE: Why?

(END VIDEO CLIP)

SCHULTZ: It`s the season for Fox to inject itself into the Christmas
Story. There`s a new ammo in the war on Christmas. But next, I`m taking
your questions Ask Ed Live. Stay ahead. We`ll be right back at the Ed
Show on MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. We love hearing from our
viewers, questions tonight Ask Ed segment. Here we go.

This is from Liz (ph) she wants to know "Do you think some of the
Democrats are throwing the President under the bus from wanting to save
their asses in 2014, you think?"

Couple of dynamics playing out here Liz , first of all I think that
there are some Democrats on the hill who almost hold a grudge against the
President right now, because there`s been such weak communication between
the White House and some Democrats on the hill who want to be players

They`re upset with the rollout. They don`t want to go home and have
to defend it and they`ll go so far as to side with the Republicans as they
did 39 of them, so they could go home and say, you know what, there was
flow on the law and I voted to try to help you to try to fix it.

It still has to be done over in the senate. We don`t know how that`s
going to play out. And so, this is going to be a legislative dog fight.
But I do believe that there are a lot of Democrats that aren`t ready to
embrace ObamaCare until the website is fixed and go home with a real fever
pitched attitude that this was the best thing since slice bread which I
think it is.

Our next question is from Joan Swanson "Can Republicans ever win
elections without dirty tricks?"

Well, I don`t think so. Notice this is the party that has no vision.
They have no plan. And the only thing that they make news with right now
is any kind of Democratic proceed to misstep that is out there.

Stick around the Rapid Response Panel is next we`ll right back at the
Ed Show.

SEEMA MODY, CNBC MARKET WRAP CORRESPONDENT: I`m Seema Mody with your
CNBC Market Wrap. The DOW jump to 785 points, S and P 500 up 7 and the
NASDAQ added 13.

A sign the economy is improving manufacturing out with rows for third
consecutive month up .3 percent in October. Industrial production however
took an unexpected hit in October slipping .1 percent.

And the highly anticipated Sony Play Station 4 hits stores at
midnight. This latest version includes upgraded social features with a
price tag of $399.

That`s it from CNBC. First in business worldwide.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. Well, let`s talk about the war
on Christmas.

You know, we all have holiday traditions. And in our family everybody
comes to the Lake House on Christmas Eve and then there`s this tornado of
11 grand kids that comes in the door and they open presents on Christmas
Eve and then of course we have this big meal and then on Christmas morning
we of course go to church, Wendy wouldn`t have it in the other way.

Over on Fox News there is an annual call to arms, that`s their
tradition. That`s right folks, tis the seasons. I`m talking about the war
on Christmas. Did you know there is one?

This year Americas queen of quitting, half term Governor Sarah Palin.
Well, she`s taking the lead. Palin joins Sean Hannity earlier this week to
push her new book "Good Tidings and Great Joy, Protecting the Heart of
Christmas". Let`s take a look.

(BEGIN VIDEO CLIP)

SARAH PALIN, (FRM) GOVERNOR OF ALASKA: There are double standards
applied to those who wish to celebrate Christmas for instance in a
traditional way those who would -- I refer to them as scrooges. They are
usually angry, atheist armed with an attorney and they want to tell us,
they want to tell patriots, they want to tell traditional Americans that no
longer can you acknowledge that Jesus is the reason for the season.

(END VIDEO CLIP)

SCHULTZ: Nothing shows you respect for Jesus and the traditions of
Christmas like manufacturing a political conflict to make a quick buck.

But that kind of a hypocrisy is nothing new for the folks over at Fox
News.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Now we have the secular progressives trying to
remove Christmas, the word, the displays, even the federal holiday they
love to have it rescinded from the public arena.

UNIDENTIFIED FEMALE: We`re not nuts are we? There is a war on
Christmas.

UNIDENTIFIED MALE: Separation of Charlie Brown and state the Judeo-
Christian tradition in this country is under attack.

UNIDENTIFIED MALE: The war on Christmas is very, very real and if you
ask me, you know, in addition to some grouchy, you know, (inaudible)
heathen atheist. It has to do with the -- at the root of it, it has to do
with two things, abortion and the gay rights agenda.

UNIDENTIFIED MALE: What religion is involve with Christmas?

DAVID SILVERMAN, PRESIDENT OF AMERICA ATHEIST: What religion?
Christianity.

UNIDENTIFIED MALE: That`s not a religion. That`s a philosophy.

UNIDENTIFIED MALE: Suddenly, I started showing up at Christmas
parties and was told that they were having holiday parties and so,
therefore they didn`t need a Santa anymore.

UNIDENTIFIED MALE: It isn`t silly.

UNIDENTIFIED MALE: What`s not silly?

UNIDENTIFIED MALE: My campaign.

UNIDENTIFIED MALE: No it`s not at all.

BEN STEIN, ACTOR: I don`t consider them well in the head. God bless
them.

(END VIDEO CLIP)

SCHULTZ: Joining me now for a Rapid Response Panel, liberal
commentator and comedian John Fugelsang and the Reverend Barry Lynn of
Americans United for the Separation of Church and State. Gentlemen great
to have you with us.

Is there a war on religious freedom? Reverend Lynn would this exist
without Fox News propaganda?

BARRY LYNN, REVEREND, AMERICANS UNITED FOR THE SEPARATION OF CHUCH AND
STATE: No, it would not exist because there is no war on Christianity in
general and they`re certainly isn`t this new according to Sarah Palin kind
of a bloodiest battle like in our civil war it was Antietam for her the
bloodiest battle, phony battle is this war against Christmas.

If it wasn`t for the grudge report in Fox News these stories would
never come out. We researched these stories year after year. They`re
almost inevitably phony from your kids can`t wear green and red in schools
we investigated that a couple of years ago. It turned out that the memo
from the school to the parents was we try to be inclusive. Your kids can
wear red or green or yellow or purple in other words it was just being
inclusive something Fox hates.

In Dodgeville Wisconsin, Dodgeville Wisconsin, Fox News and Liberty
Council associated with the Jerry Fowler (ph) Empire said that the school
teacher had removed the words from Silent Night and turn them into secular
words.

So, we look into that, it turned out that the guy who wrote the play
they were performing in December in that little school district himself
changed the words because it wasn`t about Jesus. This was a play about
homelessness.

SCHULTZ: Sure.

LYNN: Dodgeville superintendent of school send a bill for $20,000 the
day that expanded on public relations to try to fight this phony attack on
them and they had done nothing wrong. Senate to Liberty Counsel said send
us the money. We call them and they said "We never got a dime." Of course
not a guarantee. The envelope was not lost in the mail. Phony, phony,
phony.

SCHULTZ: Reverend, remember Bill O`Reilly is looking out for us.
John Fugelsang, Bill O`reilly in Sarah Palin. You know it`s interesting.
They have mistaken the state (ph) war. They have things to sell. Why
don`t they get called out on this hypocrisy often?

JOHN FUGELSANG, COMEDIAN: Well, Bill, I don`t want a bad mouth lady
blah, blah. But the fact is when it comes to Governor Palin if ignorance
was hair she be a wookie.

Now as far as the war on Christmas goes, if happy holidays offends you
then you need to take a serious at the difference between Christianity and
Christian Supremacy because even on his worst day at the end, Jesus never
once played victim. When businesses say happy holidays ironically, they
are trying to use kindness to help their business. They are extending a
warmth to just -- to more than just Christians.

The irony of all of this is that happy holidays is a lot more
Christian than Merry Christmas because you`re extending good will to people
beyond your own club. And my question for Sarah Palin, if she so offended
at businesses saying happy holidays to expand their client base and not
offend their non-Christian customers, Ed, why does Sarah Palin hate
Capitalism? What is she got against the free market?

SCHULTZ: Good question. As a result to the war on Christmas, here we
go down in the State of Texas. Now they have passed a Merry Christmas Bill
to protect public school teachers right to say Merry Christmas or call it a
Christmas tree.

Reverend, your response to that?

LYNN: You know, this whole thing about the language that used is so
bizarre. And normal people would not care about this at all. Sarah
Palin`s exert from her book on the back cover says she wants people to say
Merry Christmas to her, does she have so few friends that she need some
unanimous greeter in a big box store that you`ll never again to say Merry
Christmas. If this man or woman says "Happy Holidays", why does this
create apoplectic on the part of Bill O`Reilly or Sarah Palin?

This is absolutely insane. And I think if this is a foreshadowing of
the 2016 Republican Primaries because, of course, rumor has it Ms. Palin
may decide to run again. It will mean another soaked political campaign,
soaked with religion to try to figure out who is the wettest candidate.

FUGELSANG: . that`s right into the religious right to attract itself,
too. That`s why its` completely saying.

SCHULTZ: John, what do you think -- what do you think they think
they`re accomplishing with this stuff?

FUGELSANG: Well, you know, look, it is the season for rube fleecing,
Ed. I mean, John McCain was once the truth teller at the GOP. He was like
the Chuck D. in Sarah Palin`s the Flavor Flav. The fact is if you want to
spread a Christian values, you don`t go being mad at people for saying
something inclusive. You take care of the poor. You take care of the
sick. You take care of the least among us. The only problem is, if you
talk that way, Christian like Sarah Palin will call you a socialist.

This is all about her trying to rebrand herself until the day comes
that she`s finally an announcer for World Wrestling because she is
completely x`d herself out of any kind of political career. I was going to
write a great joke about Sarah Palin`s future, but I got bored and quit
halfway through.

SCHULTZ: John Fugelsang, Reverend Barry Lynn, great to have you on
the Ed Show. Appreciate your time tonight. Thanks so much.

LYNN: Thank you.

SCHULTZ: Still ahead, Rick Scott, victims are anxiously awaiting for
the second coming of Governor Crist. Stay tune for the first chapter of
our exclusive series in Florida. Be right back.

(COMMERCIAL BREAK)

SCHULTZ: And in Pretenders tonight, brain wizard Michele Bachmann the
Minnesota wonder strapped on her thinking cap and went on Fox News this
morning.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The House Republicans voted 38 plus times to
repeal ObamaCare. During the government shutdown showdown they were
accused of being everything from terrorist, to arsonist because they were
holding healthcare hostage and how dare you be so mean to the American
people that you don`t want to cover them with healthcare. You know, how do
you feel about that?

BACHMANN: We hate to say we told you so, but quite honestly we all
look like geniuses now because we predicted this would happen.

(END VIDEO CLIP)

SCHULTZ: Here are more Michele Bachmann genius moments.

(BEGIN VIDEO CLIP)

BACHMANN: Planned Parenthood is a billion dollar a year entity, they
want to become the lens crafter of big abortion. Representation was bad,
what would they think of representation with taxation? I don`t know what`s
going to happen. There isn`t even one study that can be produced that
shows that carbon dioxide is a harmful gas.

UNIDENTIFIED FEMALE: There is a woman who came up crying to me
tonight after the debate she said, "Her daughter was given that vaccine."
She told me, "Her daughter suffered mental retardation as a result of that
vaccine."

BACHMANN: I haven`t had a gap for something that I`ve done that is
caused me to fall on the polls.

(END VIDEO CLIP)

SCHULTZ: I need another hour to show the rest of the highlight tape
their folks, Michele Bachmann definitely a piece of work from the north
country, but if the Congresswoman believe she is also a genius of work.
She can keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Let`s get back to work. It`s been a huge weekend news here
in America and progressives need to stay focused. So, here`s a look at the
top three stories ahead next week in Fast Forward.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Coming in at number three, infrastructure in
focus.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES OF AMERICA: We`re
investing in cutting edge infrastructure.

UNIDENTIFIED MALE: We want to fill these containers and turn this
economy around. We have to recommit to manufacturing.

BIDEN: To out fuel the manufacturing growth.

UNIDENTIFIED MALE: Vice President Biden will travel to the port of
Houston.

UNIDENTIFIED FEMALE: The port of Houston handles 42 million tons of
cargo every year.

BIDEN: That number is going to do nothing but grow, labor built this
country.

UNIDENTIFIED MALE: Fast forward to number two, the TPP fight
continues.

BARRACK OBAMA, PRESIDENT OF THE UNITED STATES: I`m out there
negotiating the Trans-Pacific Partnership.

SCHULTZ: This is another NASA disaster waiting to happen.

UNIDENTIFIED MALE: International negotiations hit Salt Lake City.

UNIDENTIFIED MALE: All of these issues at one time, one agreement
without public participation or congressional participation. I`m sorry
that`s not our system of government.

UNIDENTIFIED MALE: And our number one story to watch, the Sunshine
State of ObamaCare

OBAMA: We always knew this was going to be hard, there`s a reason why
folks had tried to do it for a 100 years and haven`t done it.

UNIDENTIFIED MALE: The best way to get insurance is to get a job.

UNIDENTIFIED MALE: On Monday I`ll talk exclusively with Charlie
Crist.

CHARLIE CRIST, (FRM) GOVERNOR OF FLORIDA: American (inaudible) health
coverage and by the president (inaudible).

(END VIDEO CLIP)

SCHULTZ: Mike Papantonio, Ring of Fire, Radio Host joins us now on
the Ed Show. Mike great to have you with us tonight. We`re going to be
down in Florida later on this weekend, it`s the fight for Florida, its
Charlie Crist going against Governor Rick Scott who Scott is criticizing
President Obama`s announcement extending junk insurance plans for yet
another year. He says, "What happens to these families in a year? Will
these families still see their insurance costs go up? President Obama`s
changes to his own law will likely be the first of many, it`s a bad law."

Mike, what do you make of Rick Scott going down this road? He`s
trying to make some amends? What`s happening in Florida?

MIKE PAPANTONIO, AMERICAN ATTORNEY AND RADIO TALK SHOW HOST: Well, he
certainly knows about insurance corruption. As you know, he was run out of
Texas, run out of Texas but interesting enough for $1.4 billion scam that
he tried to steal basically tax payer money.

Now, he was excused of that, Ed. The person that excused him -- very
interesting back story, here Senator John Cornyn gave him a free pass.
Cornyn was the AG in Texas at that time, didn`t prosecute Scott at all.
Instead, after -- interestingly enough, after Scott had to plead the Fifth
Amendment 78 times -- now the Fifth Amendment is what somebody does when
they`re afraid they`ve committed some kind of criminal act and they`re
going to be prosecuted.

Unfortunately, Ed, we ended up with Rick Scott down here. The reason
he`s getting so much money from people like Sheldon Adelson, the casino
tycoon, and Donald Trump. I think he got $250,000 from Adelson, thousands
and thousands of dollars from Trump is because they want him to build the
casino business down here but the real reason they love him, Ed, is he cut
Florida education by about 20 percent, he cut 10,000 jobs in Florida
basically in the government sector in places like schools and prisons
because he wants to privatize both of those things.

SCHULTZ: Sure.

PAPANTONIO: He`s cut Medicaid by $4billion. He wants to move it to
the private sector.

Charlie Crist is the guy to beat him. And the numbers are staggering
right now. Charlie has a great chance. He`s about 12 points up depending
on what day you look at it. Scott`s approval rate`s 24 percent, it makes
Scott the least popular governor in 190 years of Florida history.

SCHULTZ: Well, let me ask you Mike. Does Charlie Crist have the
confidence of Democrats, of independence after making this move from the
Republican Party? Is it too soon for him to run? The polling as you say
looks pretty good right now but, you know, will they vote for this guy?
Will they vote for him?

PAPANTONIO: Well -- he has some work to do. There`s no question
about it. Anytime you change parties like that, you`ve got the nay sayers
who say, "Damn it, you know, why you coming to us now?"

Charlie is -- Charlie has great, great ability that the contrast
between Charlie Crist and Rick Scott is going to be startling. It`s not
going to be anything like we saw with Alex Sink who ran against him last
time.

Charlie is a seasoned politician. He knows how to overcome issues
like that.

SCHULTZ: Yeah.

PAPANTONIO: I think it`s going to be really interesting race.

SCHULTZ: Mike, how does ObamaCare play in Florida? I mean, do you --
you think Charlie Crist can go out there with confidence and say, "This is
good for the residence of the state" and beat Rick Scott?

PAPANTONIO: It`s going to be a mixed bag to be really, real, frankly.
I think parts to South Florida, it`s going to be mixed bag. You have Nan
Rich in the race right now. She`s a Democrat running and she is running
strongly behind ObamaCare and how important ObamaCare is for the Florida
voters.

Charlie at this point hasn`t really committed on that. I think he
probably will. He`s great friends with this President. He helped this
President get re elected, if you recall, was one of the important voices in
Florida who said Obama is one of us and we need to support him, it hurt
him, tragically hurt him in the Republican Party but it might be the best
thing that happened to Charlie Crist is to have his eyes wide open and
understand he hasn`t left the party, the party left him.

SCHULTZ: Yeah.

PAPANTONIO: I think you have an interesting interview with him on
Sunday.

SCHULTZ: All right. Mike Papantonio, Ring of Fire Radio host, great
to have you with us tonight. We`re going to be in Florida. We`re going to
have a sit down exclusive interview with Charlie Crist in Florida this
weekend. We`ll have that for you on Monday as we come to you from Miami on
Monday. Looking forward to it.

That`s the Ed Show. I`m Ed Schultz. Politics Nation with Reverend Al
Sharpton starts right now.

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

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