updated 1/15/2014 12:12:19 PM ET 2014-01-15T17:12:19

THE ED SHOW
Date: January 14, 2014

Guests: Valerie Huttle, Bill Pascrell, Wendell Potter, Mike Papantonio, Holland Cooke, David Cay Johnston

ED SCHULTZ, MSNBC HOST: Good evening Americans and welcome to Ed Show live
from New York. Let`s get to work.

(BEGIN VIDEO CLIP)

GOV. CHRIS CHRISTIE, (R) NEW JERSEY: I am the leader of the state and its
people. The state of our state is good and it is getting better.

Did I say a topic? Are you stupid? On topic, on topic.

Now, the last week has certainly tested this administration.

UNIDENTIFIED MALE: (Inaudible).

CHRISTIE: I don`t know whether this was a traffic study that then morphed
into a political vendetta.

Mistakes were clearly made. I worked the cones, actually. We will
cooperate with all appropriate inquiries to ensure that this breach of
trust does not happen again.

DAVID WILDSTEIN: I need rights at my council. I respectfully assert my
right to remain silent.

CHRISTIE: I have had no contact with David Wildstein in a long time.

WILDSTEIN: And hereby (ph) to council, I, again, I assert my rights to
remain silent.

CHRISTIE: . in a long time, a long time, well before the election.

So what has occurred does not define us or our state.

(END VIDEO CLIP)

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

I don`t know about you, but I am totally entertained by this guy, Chris
Christie, totally entertained by him.

Did he say that everything in New Jersey is good? I doubt it. Let`s see.
Lives were put at risk, folks in harms way, schedules all screwed up, I
mean, come on, potentially, laws were broken and he says the were a few
mistakes made.

Come on governor. Let`s cut to the chase. You got some real issues in
your state and you are, right now, in the state of denial.

New Jersey Governor Chris Christie put all the icing on the cake today,
just wrapped up his 4th state of the union address. Historically, the
governor of New Jersey doesn`t mention scandals in his annual speech but
heat is so hot right now. I`ll tell you what. Christie just had to do
bridge gate right of the top. It`s intense. So he brings it up right
away. It was the first topic he mentioned in his address today.

(BEGIN VIDEO CLIP)

CHRISTIE: Now, the last week, I certainly tested this administration.
Mistakes were clearly made. And as a result, we let down the people we`re
entrusted to serve. I know our citizens deserve better, much better. I`m
the governor and I`m ultimately responsible for all that happens on my
watch, both good and bad.

(END VIDEO CLIP)

SCHULTZ: We let down the people. Let`s get some clarity here. The
governor certainly is into talking about the law makers that he was
addressing today, is he? We, as in my administration, we as in my office,
we as in my executive staff that apparently did everything that I didn`t
know anything about.

So when Christie was saying that we, I`m thinking is he kind of including
the law makers here. I don`t think they had anything to do with it. And
if they did, we`ll find out that, too, right. Christie would on to say
that his administration will cooperate fully with the investigations.

(BEGIN VIDEO CLIP)

CHRISTIE: Without a doubt, we will cooperate with all appropriate
inquiries to ensure that this breach of trust does not happen again.

But I also want to assure, the people of New Jersey today that what has
occurred does not define us or our state. This administration and this
legislature will not allow the work that needs to be done to improve the
peoples` lives in New Jersey to be delayed for any reason.

(END VIDEO CLIP)

SCHULTZ: You bet. The work that needs to be done to improve the lives of
the folks in New Jersey? He just happened to be against the minimum wage
increase.

Which is it governor? You`re the magic man. That`s your new nickname here
on the Ed Show. You`re the magic man. I mean, anything that comes that
you could just magically turn things right around.

Now, making the case of 7.8 percent unemployment is good? Christie then
pivoted to a bogus promotional and backwards way of thinking of Republican
policies. The governor was quick to mention the New Jersey, 7.8 percent
unemployment rate.

Christie made it sound like it was something good that they`ve really
accomplished something that is above the national rate. It`s not a great
number. If your city gets 7.8 percent and we need to point out Republicans
and with the president every time that there was a jobs report and the
national rate is lower than this one. The current national rate is 6.7
percent. It still draws waves of criticism from Republicans. But
remember, Christie is your guy.

Christie also mentioned 48 straight months of private sector job growth.
Way to go. Let`s have that enthusiasm when we talk about President Obama.
Nationally, we`ve seen 46 straight months of private sector job growth.
Still, the national number just not good enough to impress the Republicans.

The governor said that he has cut teacher tenure. Well, that`s an attack
on workers. That`s a real incentive for young people coming out of
Montclair State Teachers College. I want to go into that profession
knowing that you don`t know what`s going to happen to your tenure once you
pay the price.

Also, he talked about -- here`s that word again -- reform, pension reform.
Let`s cut to the chase. You know what pension reform is? That`s a cut.

In the lowering property taxes, the governor almost broke his arm patting
himself on the back talking about how he has lowered property taxes by 2
percent. I would hope so.

In 2013, New Jersey had the highest property tax rate in the nation.
Forgot to point that out governor, didn`t you? You had a long way to go
buddy, but, I know you`re going to go raise money down to Florida. And
that`s kind of the big deal. That`s really where your focus is.

Meanwhile, there is no proof that`s out today, that Governor Chris Christie
may not be, may not be the honest broker that he loves to point himself out
to be. During Christie`s bridge gate press conference, the governor says
he had no contact with David Wildstein in a long time.

Wildstein was Christie`s 4th authority appointee, who has recently resigned
and testified in front of the assembly committee, took the 5th for his
activity in Bridgegate.

Here`s what Christie said last Thursday during the 2-hour press con.

(BEGIN VIDEO CLIP)

CHRISTIE: I have had no contact with David Wildstein in a long time, a
long time well before the election. You know, I could probably count on
one hand, the number of conversations I have with David since he worked to
the Port Authority. I did not interact with David.

If David will be here for meeting in the State House (inaudible), we would
say "Hello. How`s your family," we`d chat. We didn`t have that kind of
relationship.

(END VIDEO CLIP)

SCHULTZ: Just didn`t have that kind of relationship. Well, you`ll be the
judge.

The Wall Street Journal run a story today illustrating an association
between Christie and Wildstein. The journal published a picture that
proves Christie, misleading the public and is certainly in discrepancy from
what he said last week.

Keep in mind. This picture, right here, was taken on September 11, 2013,
the third day of the closure Fiasco. Here is the governor, right there,
Governor Chris Christie and right there is David Wildstein. Look how
enthusiastic he is. Hey governor, I`ve got something to tell you.

David Wildstein, Christie`s Port Authority appointee, Christie`s office
responded to this picture today, in all fairness thing, "Of course Governor
Christie attended the September 11th ceremony as he has done every year
since he took office. He had numerous interactions with public officials
that morning."

Let`s go back to the picture. I like this picture. Everybody is upbeat.
Everybody is enthusiastic. Does David Wildstein look like he is the kind
of guy that really wants to keep something away from Governor Christie? I
don`t know. What`s that old saying? "A picture tells a thousand words."

Going after workers, high property tax rates, the attack on education,
denying people who work hard a raise of the minimum wage, this is where
Christie is. And of course, let`s talk about all the tax cuts for the
wealthiest residents.

I don`t think he has a very good report card, but, I think he`s a magic
man. He seems to be able to turn this whole thing around, but basically, I
believe this man`s in the state of denial about how bad things are in New
Jersey.

Get your cellphones out. I want to know what you think tonight`s question.
Do you think Chris Christie will survive this scandal? Text A for Yes,
text B for No to 67622. You can always go to our blog at ed.msnbc.com.

And just remember conservatives, every time you think that Chris Christie
is really getting or done with the economy, just remember, his unemployment
rate is higher than the national average and President Obama has had no
doubt from the Republicans to turn that number around. Christie`s had a
lot of help from the Democrats in New Jersey.

We`re going to bring you the results of poll later on in the show.

For more, let me bring in Congressman Bill Pascrell of New Jersey.
Congressman, good to have you with us tonight.

REP. BILL PASCRELL, (D) NEW JERSEY: Ed, how are you today?

SCHULTZ: Good sir. What your reaction to the governor`s remarks at the
state of the state address today?

PASCRELL: I listened very carefully and the last speech he made last week,
he made himself the victim. But today, he made all of us the victim in New
Jersey. So we`re all in the same boat and that`s it. He`s missing the
whole point here.

This is his administration. These are Republican sink (ph) of fans who are
falling one by one and there`s no question in my mind. We had some
democratic enablers to create this culture, we can do anything and our --
the distraction away for the main situation, the people of Fort Lee and the
surrounding communities who got shafted those for days. That`s should be
on the tips of tongue every time we open our mouths.

I want to tell -- say also that speaker played on (ph) and I thought that a
good response after the governor`s speech and there is obviously more going
to unfold, Ed and that`s why we`re here.

SCHULTZ: Well, are you satisfied with the characterization of just
mistakes were made?

PASCRELL: No.

SCHULTZ: It just seems to me that the governor doesn`t understand the
severity of all of this.

PASCRELL: There`s conscious mistakes and unconscious mistake. This was
conscious. This was planned. It was planned. There was no question in my
mind. This was thought of before September. This was into August. The e-
mails reflect that and you`ll see a lot come out that will reflect that.
So don`t tell me that nobody knew this at this time. And I think, Ed, we
cannot get caught up with the issue when did the governor know it and when,
what time, and at what point and what did he know. That`s not the issue.

SCHULTZ: Yeah.

PASCRELL: The first issue is the people of Fort Lee and the mayor. The
second issue is credibility of his administration. The third issue is who
hold the switch.

SCHULTZ: Well, Governor Christie said that he hasn`t spoken to David
Wildstein "in a long time." This picture from the Wall Street Journal that
was published today really gives an impression of something much different.
Your reaction to that.

PASCRELL: Well, first of all, let me say this. Some of my buddies and my
friends on the Democratic side are trying to make this a political issue.
There`s no game in this thing. I can ensure them.

SCHULTZ: Yeah.

PASCRELL: Democrats are not going to come out to this thing ahead because
some of us enabled him to do what he is doing. Republicans are not going
to come out ahead, obviously. This is sticking to the facts and trying to
find out what really happened.

SCHULTZ: But what Democrats failed?

PASCRELL: That`s what I mentioned here (inaudible).

SCHULTZ: And you`re asked what Democrats failed?

PASCRELL: Beginning four years ago, they failed. There`s a difference
between bipartisanship and stropping (ph) the other person to get what you
want even though other people are going to get shafted in the process. So
that`s what happened in this situation. Many of the mayors are finally
speaking out about what happened to them.

Now, if you can get my vote, if you can get my endorsement, and you can get
me to jump hardies (ph), Democrat and Republican is in material.

SCHULTZ: Yeah.

PASCRELL: In order to support you, that tells me that you`re creating a
culture where you`ll pass it off as bipartisanship. A lot of this was not
part of bipartisanship. It was back (ph) scratching and its worst. And
that`s why none of us come out of this looking good.

SCHULTZ: All right. Congressman Bill Pascrell, one final question.

PASCRELL: Yeah, sure.

SCHULTZ: Are you concerned about the potential misuse of emergency funds?
There was a big fight over federal health to all of the states.

PASCRELL: We`ve done that (inaudible).

SCHULTZ: Well, you characterize it for us.

PASCRELL: Gone down right, 60 percent of this money still has been spent
and we`re about to get to the next phase in the next amount of dollars.
But we can`t spend.

SCHULTZ: Do you think it was inappropriate -- do you think it was
inappropriate for the governor to be in those commercials?

PASCRELL: Oh, you mean, well, I`ll tell you what. I`ve read the
regulations. There`s nothing -- he hasn`t broken any laws.

SCHULTZ: Yeah.

PASCRELL: . and he got a waiver from the administration, the Democratic
administration in Washington.

SCHULTZ: Okay.

PASCRELL: I want to stick to the issues that exist right now and don`t be
distracted, Ed. I`m warning you. Don`t be distracted.

SCHULTZ: Okay. Well, it is an investigation. I`m not doing the
investigation.

PASCRELL: I know that.

SCHULTZ: The government is. Congressman, good to have you with us
tonight. Appreciate it.

PASCRELL: Always a pleasure, Ed.

SCHULTZ: Thank you sir. You bet.

And I want to turn now to New Jersey State Assemblywoman Valerie Huttle.

Ms. Huttle, good to have you on with us tonight.

VALERIE HUTTLE, NEW JERSEY, STATE ASSEMBLYWOMAN: Thank you.

SCHULTZ: Your response to what you heard the governor say today about the
state of the state.

HUTTLE: Well, you know, first of he started, he state the state with
saying mistakes were made and that he would cooperate with all inquiries
which certainly is the step in the right direction. And I think it`s
unprecedented for this legislative session to call a special session, the
very next day, after we are all -- we organize to form a special committee.
And quite frankly, the state of state address, he was a little bit more
humble. I don`t see the anger still with him.

Mistakes were made. He doesn`t seem angry about it. I think that there is
-- whether he`s still in the denial stage, but I want to see that anger
stage. And I believe that we need to get to the bottom of it and more and
more phases certainly are coming out of the wood work of those people that
are involved.

SCHULTZ: Your constituents characterized their attitude on this.

HUTTLE: Yeah. I`m sorry.

SCHULTZ: Your constituents -- if you could just give us a flavor of what
you`re hearing from your constituents there in Bergen County where this all
unfolded.

HUTTLE: They -- well, first of all, they all feel that lives are put in
danger. There was a misuse of public trust. What we`re hearing,
obviously, we`ve heard again, I mean, to repeat it that, you know, the
peoples` lives were in danger, EMTs couldn`t get to places. But, you know,
it`s not just courtly -- I represent courtly in the 37 districts. Every
town.

SCHULTZ: Yeah.

HUTTLE: . was hampered by traffic jam. So, what I`m hearing people think
is more to the story when we don`t get answers and we continue to raise
these questions which we have been raising for months. It really raises
the height of suspicion.

SCHULTZ: Do you think the governor went far enough today. I mean, I hold
a press -- I held a press conference last week and talk for two hours on
this. But today, he said, these are the mistakes and then went on.

HUTTLE: You know, this governor is the master of destruction and what I
found today to be was he did not want to be distracted by this. He
apologized in the beginning. He said he will cooperate and then went right
on to his policies. So, when we talk about the man to destruction, he
certainly wants to focus on policy which of course we need to do for this
state. But, on the other hand, we need to get this committee organized and
we need to get the answers to these questions and I think there is more to
come.

SCHULTZ: OK.

HUTTLE: Certainly there is more to it than what we -- than what we`re
hearing.

SCHULTZ: To your knowledge, subpoenas tomorrow were coming out?

Subpoenas.

HUTTLE: Thursday.

SCHULTZ: Yeah, OK.

HUTTLE: Yes, on Thursday, we will have legal council advising us. The
committee is in formation. I am a member of that committee as they will --
it will be a bipartisan committee which what we are calling for. And
hopefully, we will get the facts and we will get the answers that people
deserve.

SCHULTZ: All right. Assemblywoman Valerie Huttle with us here on the Ed
Show. I appreciate your time tonight. Thank you so much.

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
appreciate that. Like us and of course we always want to know what you
think. I love your Twitter activity on the show, the Ed Show.

Coming up, getting needy with it, Mitt Romney let lose at a conference for
young Mormons. Plus conservatives spin the latest Affordable Care Act
enrollment numbers. Stay with us we`ll be right back

(COMMERCIAL BREAK)

SCHULTZ: Time now for the Trenders Social Media action. Here`s where you
can find us. And thanks so much for liking us on facebook.com/edshow and
twitter.com/edshow and ed.msnbc.com.

Radio, Monday through Friday noon to 3:00. SiriusXM Channel 127, and the
radio website, wegoted.com.

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)

DOROTHY, WIZARD OF OZ CHARACTER: Lions and tigers and bears, oh my.

UNIDENTIFIED MALE: The number three Trender, wild welcome.

UNIDENTIFIED MALE: During all these serious business of changing
administration in Richmond, the outgoing governor traditionally plays a
little prank on the new guy.

UNIDENTIFIED MALE: As Terry McAuliffe takes over the Virginians Tea House.

UNIDENTIFIED FEMALE: So help me God.

TERRY MCAULIFFE, (D) GOVERNOR, VIRGINIA: So help me God.

UNIDENTIFIED MALE: . former governor Bob McDonnell leaves a grizzly gift
behind.

UNIDENTIFIED MALE: Governor Bob McDonnell apparently left this a large
stuffed black bear -- he left in the governor`s private bathroom.

UNIDENTIFIED MALE: Do you hear that, Ed? Bears.

UNIDENTIFIED MALE: The number two Trender, just dance.

MITT ROMNEY, BUSINESSMAN, FORMER GOVERNOR OF MASSACHUSETTS: Who let the
dogs out?

UNIDENTIFIED MALE: Mitt Romney, buzz some move.

UNIDENTIFIED MALE: I`m with it, I`m skipped (ph).

UNIDENTIFIED MALE: And today`s top Trender, health care.

GERRI WILLIS, THE WILLIS REPORT HOST: Health and human services releasing
data of who signed up for health insurance so far and guess what, it`s not
the young and the healthy. Just 24 percent of Americans who signed up are
between the age of 18 and 24.

UNIDENTIFIED MALE: The law is not leaving up with the promises made by
supporters.

UNIDENTIFIED MALE: Conservatives spin the latest ObamaCare enrollment
numbers.

UNIDENTIFIED MALE: That number of 24 percent is a disaster -- the
financial disaster.

UNIDENTIFIED MALE: These numbers are terrible.

UNIDENTIFIED MALE: The administration is desperate to put out good
information.

WILLIS: 24 percent of the enrollees so far are between the ages of 18 and
24 -- not what they wanted.

UNIDENTIFIED FEMALE: This is going to be bad news for tax payers.

UNIDENTIFIED MALE: That the cost benefit analysis of ObamaCare is going to
cost them up more than it`s going to benefit people.

(END VIDEO CLIP)

SCHULTZ: Joining us tonight, Wendell Potter, Senior Analyst for the Center
for Public Integrity and author of the e-book, "Obamacare: What`s in it for
me?". Mr.Potter, always a pleasure to have you with us tonight. I have to
start out with this.

WENDELL POTTER, SENIOR ANALYST CENTER FOR PUBLIC INTEGRITY: Thank you, Ed.

SCHULTZ: They think that 24 percent is a terrible number but they think
it`s OK for one in four corporations in this country to park their money
offshore. And that`s not a problem for the treasury. It just amazes me.
All right. The health care if we can -- what do you make of the numbers?

The number of young adults signed up for the Affordable Care Act isn`t
obviously where the administration wants it. I say we`re still early in
the game. Kids sleep late on Saturday morning. That`s just the way the
world turns. Your thoughts on the numbers at this point?

POTTER: Yes. It`s the way the world turns. And I am not a bit surprised
because keep in mind that those who are most motivated to sign up first are
those who`ve not been able to get insurance. Those are for one reason or
another because of their health, their gender, or their age had been
discriminated against in years past by the insurance industry and not been
able -- haven`t been able to afford coverage until now or they`ve been
blackballed and couldn`t buy it at any price.

So, of course, these are the people who are most eager to make that
purchase. And you are right. Younger people actually have been signing up
actually more than I thought they would. But either, we`re still in a very
early stages of this. We`re not even anywhere close to the end of open
enrollment for this sign up period.

SCHULTZ: But we are in the millions. In the big picture, I think it`s a
pretty good recovery.

POTTER: It is. It`s a very, very good recovery. We are in the millions
of people who are signing up. And that doesn`t count the millions who I
think also are going to be signing -- who will find out has signed up for
coverage to the Medicaid programs in those states that are expanding the
Medicaid program. So many millions of people who`ve not had insurance
before are going to get.

SCHULTZ: Yes.

POTTER: . coverage that they can afford. And that means access to care.

SCHULTZ: Recent survey about the Commonwealth Fund shows that 41 percent
of the visitors to health care.gov were between the ages of 19 and 34 and
77 percent of them described themselves as being in good health. Why
haven`t they signed up?

POTTER: Well.

SCHULTZ: Your thoughts?

POTTER: Well, I think they haven`t signed up because they`re doing what I
think a lot of people would do. They don`t have to sign up until there is
an absolute deadline.

SCHULTZ: So this is human nature.

POTTER: But then also, I think.

SCHULTZ: . as much as it is anything else?

POTTER: Of course, it is. And in fact, my own kids are in the same way.
They`ve been waiting for the last minute to make sure. But they also want
to make sure they`re getting good -- the best deal. And they also more
than likely are going to need some pressure, some encouragement from mom
and dad to get coverage. And that will come as well too.

SCHULTZ: What`s this going to look like you think in the middle of March,
two months from now?

POTTER: I think we`re going to see that the percentages are going to be
much more in-lined with what the administration expected, but keep in mind,
they were in this for the long hall. This is not just for a few months.

And also the people who drafted the Affordable Care Act knew -- and they
got this advice from insurance industry -- expect that there will be more
people who are older signing up initially. And that`s why the law provides
some reinsurance protection for insurance companies to get them to
participate. This was anticipated. It`s not a bit of a surprise.

SCHULTZ: I was visiting with some lawmakers last night in Washington. And
obviously, we talked a lot about health care when I was visiting with them.
And I asked them, "Do you have a problem running on it?"

There does seem to be for some reason of reluctance by Democrats to run
home and talk about how positive this health care law is. And I find it
very interesting -- the moral aspect of this, the moral component to this.
And when you talk to them about voting to take something away from another
American, it does resonate with people. If you`re doing statistics.

POTTER: Right.

SCHULTZ: . you know, you`re not going to win that battle. But if you talk
about people`s lives, if you talk about the moral component, who can argue
with it? If there is going to be -- it`s almost like there`s a lack of
confidences. They`re not really sure if this is the right thing to do in
front of constituents. What`s your take on that?

POTTER: I think you`re right. I think there`s a lack of confidence. I
think there`s fear there. There`s been such fear based -- fear mongering
about the.

SCHULTZ: Yes.

POTTER: . the law. That`s understandable. But I think they really
haven`t -- they don`t have the communication strategy in place yet to
figure out the best messaging -- to tell the truth about this law in ways
that are compelling.

SCHULTZ: All right. Wendell Potter, great to have you with us tonight.
Mr.Potter, thanks so much.

Coming up.

POTTER: Thank you Ed. Thank you.

SCHULTZ: . the wacko conservative radio reaction of New Jersey Governor
Chris Christie`s fall from grace. Or is he really not falling from grace?
Who`s behind it and who`s critical?

Still ahead, Rush Limbaugh is boasting about a recent survey. Well, that
lands him in Pretenders tonight. Taking your questions next on Ask Ed
Live. Stay with us. We`ll be right back on the Ed Show.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. Love your questions. Love this
segment of the show, Ask Ed Live.

Our first question comes from Michael Gilligan. He wants to know, "What
are the people in DC doing about unemployment?"

Well, seen that was in Washington Yesterday and this morning, let me give
you a little hint about what they`re doing.

Not a whole heck of a lot. The Conservatives of course are trying to
figure out what they can squeeze out of the Democrats. The Democrats are
trying to figure out if they can actually get blood out of a turnip.
That`s pretty much where we are right now on the extension of unemployment
benefits.

The Republicans are not going to go along with this, unless there are
offsets and that puts the Democrats right where I told you they we`re going
to be, a little over a month ago on this program.

I`m not so sure it was a good deal, 94 House members voted against it.
Yes, I know it saves some sequester cuts but if they had not have done this
deal it would have heighten the intensity, and the awareness of the
American people, and we`d be talking about millions of Americans being
affected by the budget as oppose to 1.3 million and a growing number every
week.

Now, here`s what the Democrats are going to have to do. They`re going to
have to come up with something. They`re going to have to -- if they really
want to extend these unemployment benefits, the way it stands right now,
the Republicans pretty much have the Democrats right where they want them.

By the budgetary gonads (ph) is what I call it.

Unfortunately, this is what has happened.

The next question is coming from Tom. He wants to know, "Do you love your
#TEAMEDSHOW folks as much as we love at Ed Show?"

You better believe I do.

Well, when I was doing the weekend show over the summer time, which I
actually enjoyed because I have a lot of time to go fishing, the TeamEdShow
started up. And they give us quite a few news alerts and tweet us a lot of
fun stuff and I really appreciate the loyalty and I want to tell you that
you folks have really helped the show. Thank you.

Stick around, Rapid Response Panel coming up next.

BERTHA COOMBS, CNBC ANCHOR: I`m Bertha Coombs with your CNBC Market Wrap.

Stocks gained back some of Monday losses. The Dow ending up 116 points,
the S and P added 20, and the NASDAQ climbed nearly 70 points.

Strong retail sales provided some of this deemed (ph) for today`s rally.
Poor sales, a closely watch consumer spending indicator search more the
unexpected last month.

On the earnings front, JPMorgan results manage to exceed estimates despite
stiff legal settlement. While Wells Fargo`s profit rose 10 percent, thanks
to improving credit quality.

That`s it from CNBC, we`re first in business worldwide.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show.

There are folks on the Right who want you believe that the only reason
we`re keeping the focus on New Jersey Governor Chris Christie is because
he`s a real threat to Democrats. But they`ve got it all wrong, folks.

You know, I really hope Christie runs, and I hope he is right in the thick
of it all. The reality is Chris Christie is a threat I think to the
Republican Party because Christie highlights a fracture between the GOP
establishment and the Tea Party insurgence. That`s only getting worse.

To get a pulse, all you need to do is listen to Right Wing radio across
this country, in every market in the country. We`ve seen our share of
Christie apologies trying to distract from the issue by bringing up
Benghazi.

That`s very important, you know.

But some Right Wing talkers are down right giddy about Christie`s fall from
grace.

(BEGIN AUDIO CLIP)

STEPHEN PEACE, THE STEVE PEACE SHOW HOST: Chris Christie, the Republican
Party establishment`s chosen champion for 2016 is in the crosshairs of the
Liberal media.

You can`t take on the Democrats until you take out the Republican Party
establishment.

I`ve never been happier to watch the Liberal news media tear down a
Republican because he`s one of their own. It`s there -- we`ve come to know
and learn the Republican establishment and the Liberals are really just one
in the same.

GLENN BECK, RADIO HOST, POLITICAL COMMENTATOR: Conservatives need to run
from Chris Christie.

UNIDENTIFIED MALE: To run from Chris Christie.

BECK: This again is the quintessential example of why I`m against him.
Here`s a good news, I think this just ended his political career for
president.

UNIDENTIFIED MALE: Well, I hope that`s true.

BECK: Yeah. I do.

UNIDENTIFIED MALE: Oh, come on.

(END VIDEO CLIP)

SCHULTZ: Joining me now, Rapid Response Panel, Talk Radio consultant and
Media Consultant, Holland Cooke and Ring of Fire radio host, Mike
Papantonio. Gentlemen, great to have you with us.

I thought I would take a low level exposed Right Wing talker and a high
level exposed Right Wing talker in those two sound bites because, you know,
Holland, as you know on the national level, the big guys always end up
setting the tone for what the smaller market guys are going to be saying.

So, Holland .

HOLLAND COOKE, TALK RADIO CONSULTANT AND MEDIA CONSULTANT: Oh, Ed .

SCHULTZ: Go ahead.

COOKE: And speaking of tone, I love it when Glenn Beck does that voice
that he just did that he`s about to recite from Edgar Allan Poe. But
you`re right about the local guys mocking the national guys.

We`ve all made our career choices. I admit mine is a tad eccentric. I
listen to radio for a living. And until this weak, I could get up in the
morning and tell you what they were all going to say. It`s like a fax goes
out and you keep hearing the same talking points, and words, and phrases.

What you`re hearing on talk radio this week is very schizo. A lot of these
guys on the Right didn`t like Christie to begin with. Nobody can jump in
front of a parade like Glenn Beck. So I`ll give him the blue ribbon for
consistency.

Well, a lot of these guys were at odds with him because the Tea Party has
been cool lately.

Now, they find themselves in the odd position of defending him against the
liberal media like the only guys the media ever goes after when they smell
blood in the water are Republicans. Anthony Weiner, Eliot Spitzer, Charlie
Rangel, this flunky drudge got famous on Monaco gate (ph), give me a break.

SCHULTZ: Yeah. Christie has been branded as a moderate or the reasonable
guy in the room, or false Republican by Conservative talkers. And after
what Mitt Romney went through, Mike, could Christie win the Republican
nomination without the Tea Party Conservatives?

PAPANTONIO: I think he needs it. Look, you`ve got the Tea Party friends,
they can`t get out of their head this image of Christie hugging Obama, Ed.
They can`t get that out of their spooky little heads.

So now you have the clearing house for cuckoo, you`ve got people like
Limbaugh, and Levin, and Beck on Malzberg. They`ve latched on to this
Christie bridge traffic scam and now the Sandy storm money hustle. And
their great talking points, they`re able to turn this into an attack
machine, these talking points are perfect for the Tea Party demigods like
Beck who`s telling -- all this hateful Tea Party types that Christie is a
Nixon-like thug who uses government .

COOKE: Yeah.

PAPANTONIO: . to punish his enemies.

Well the truth is he does but its great. I love hearing those words coming
out of the odd ball mind of Glenn Beck. That`s the thing that I think is
most interesting. This doesn`t go away .

SCHULTZ: Yeah.

PAPANTONIO: . for Chris Christie. They consider him a rhino the same way
they did McCain .

SCHULTZ: Yeah.

PAPANTONIO: . the same way they did Romney, it sticks with them.

SCHULTZ: Well, the progressive talkers of America, I`m here to announce
tonight I have nothing to do with the federal investigations, that`s out of
our hands.

So, Holland, is Chris Christie brand baggage right now?

Now he`s going to -- I`m going to ask you this too, Mike, about going down
to Florida, he`s going down there to raise money, coming up here in the
next few days for Rick Scott and the Republican Party. I thought he had
more important things to do in New Jersey but I guess the fund raising
never stops.

Brand baggage, you know, do lawmakers bring him up on this stump and use
him as an example, Holland?

COOKE: Well things blow over, 2016 is way down the road and he doesn`t
really have to stand up in 2014. By then, he may be out of the dog house,
who knows this 900 some page document dump, he could skate, maybe he won`t
be implicated further. These things tend to blow over.

SCHULTZ: Who`s supporting him, Holland? I mean who on the Right Wing
radio if anybody really saying, "Christie got out there. He told the
truth. He`s the man. This isn`t going to hurt him a bit." Who`s doing
that?

COOKE: You know I feel bad for? What`s her name? That crazy lady a
couple of years ago, waving her arms saying, "If we don`t nominate Chris
Christie they`re going to nominate Mitt Romney and we will lose." I feel
like sending her a sympathy card.

SCHULTZ: What about the -- how is he going to be received in Florida,
Mike?

PAPANTONIO: Well, in Florida, he`s going to be talking to same people that
love Rick Scott.

I mean listen, he still has the money people behind him, he still have the
Koch brothers, he still has the Wall Street Democrats behind him.

Understand he`s very -- the popularity in New Jersey is still not a problem
with him. But he doesn`t realize that that doesn`t convert as well in
other states. If I were -- if it were my call I`d say give him a little
time before you bring him your state and have him the front guy for your
campaign. Because look, there is no telling what you`re going to find in
those documents that are still ahead.

It`s bad enough what`s already on the table and you simply don`t put him
upfront. A Guy Rich Scott, look, the guy`s -- he should be felon himself,
you know, this is -- remember the guy that stole $1.4 billion from the
American public.

So Chris Christie, you know, he`s going to feel right at home down here in
Florida with Rich Scott I can tell you that.

SCHULTZ: So Rick Scott`s got this over? Rich Scott is going to talk Chris
Christie, "Ah, you just got a bridge thing going on. Let me show you how
to really get out the stump."

PAPANTONIO: Exactly. Yeah. Yeah. Yeah, I stole $1.4 billion so yeah.
Exactly.

SCHULTZ: All right gentleman this is going to play out for a long time.

Holland, how this -- how often does Chris Christie has talked about this?
Does he keep it alive himself to exonerate himself or has he done
everything he can do?

COOKE: From a media relation stand point, that two-hour news conference
that he did was a smart thing to do. But this story is much closer to the
beginning than the end.

The investigative work on this channel by Steve Kornacki about that real
estate development, other mayors are coming forward, the process will
continue, he`s got to be as transparent as he can and let the chips fall
where they may.

SCHULTZ: Yeah.

COOKE: But I wouldn`t be surprised if he survives. He`s very popular in
New Jersey.

SCHULTZ: You know, for political operative does something for the boss
doesn`t it -- isn`t it human nature for that employee to go tell the boss,
"Hey, guess what I just did for you? This is really going to be good."

PAPANTONIO: Yeah.

SCHULTZ: I just -- I`m surprise that that just -- that he was absolutely
sidelined in every conversation and detailed to dealt with us. I find it
hard to believe.

Alan Cooke, Mike Papantonio great to have you with us tonight. Thank you
so much.

Coming up, the Senate is still struggling to come up with a plan for
jobless benefits and millions of Americans that are being left out in the
cold. We`ll tell you who`s really feeling the effects, that`s next. Stay
with us.

(COMMERCIAL BREAK)

SCHULTZ: And in Pretenders tonight, Mr. Popular, Rush Limbaugh. Limbaugh
is bursting at the scenes with just pride all over the place.

In a new poll, the Right Wing talker thinks he got one over on Hillary
Clinton.

(BEGIN VIDEO CLIP)

RUSH LIMBAUGH: Yougov.com get a poll and they ask people to name who they
admire most.

In the yougov.com poll of America, in last place at number 10 was Hillary
Clinton. Number nine is your host, me.

(END VIDEO CLIP)

SCHULTZ: And Rushky (ph) was very careful not to mention who beat him out
in that top 10 list. Pope Francis and President Obama.

He might be able to claim the ranks next year if he gets some advice from
those two. Rush Limbaugh has mastered the irrational. But if he thinks
he`s admirable, he can keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. This is a story for the folks who
take a shower after work and we start this segment. This is just in.

Breaking news, the Senate failed to advance a three-month extension of
unemployment benefits.

Moments ago, the vote was 55 to 45. The measure needed 60 votes to
advance.

So I`m sure they`ll go back to the drawing board and come up with something
else. The question is, "Will the Democrats sweeten the pot to get more
Republicans on board?" They needed 60 to move forward.

1.3 million Americans have been left in the lurks with no long-term
unemployment insurance. They`re putting the future of America at risk in
the minds of many people. The numbers are very disturbing. This out, 2.3
million children lived in homes with a parent who was unemployed in a
typical month last year according to the Urban Institute. Those kids don`t
have any money coming in right now because their parents were cut off of
unemployment insurance.

The White House estimates the number of people who lost unemployment
benefits could jump to 4.9 million by the end of this year of 2014 if
Congress does not act.

Think of how many kids would be affected by the end of this year.

Study shows that a parent`s unemployment has a lasting negative impact on
children in this country. Children whose parents lose their jobs have
lower math scores, they have a poor school attendance, a higher risk of
needing to repeat a grade and fall back a year, and a bigger chance of
being suspended or expelled. These children have lower rates of college
attendance and their future earnings can be greatly diminished.

Right now, an extension isn`t looking good as we just reported to you.
Senate Republicans did not go along with the Democrats. The vote was 55 to
45, and of course so the Republicans have two demands.

They need to find a way to pay for an extension of the benefits and members
would also be allowed to come back and offer amendments to the bill. This
seems to be the sticking points at this point.

For more on all of these, David Cay Johnston, Pulitzer Prize winning
journalist joins us tonight. David Cay, good to have you on with us.

These numbers, how .

DAVID CAY JOHNSTON TAX SPECIALIST AND COLUMNIST: Good day, Ed.

SCHULTZ: . in your estimation, how real is the effect on children when we
talk about unemployment benefits expiring?

JOHNSTON: It`s absolutely devastating and I say this speaking to you from
the city that has the second worst concentration of very poor children in
America, Rochester, New York despite all the wealth around us.

What`s amazing to me, Ed, is this is -- this damage that`s been done.
There will be 200,000 jobs that we will lose if we don`t renew these
benefits on an emergency basis according to the CBO. And secondly, I
thought the Republicans were the party of family values. What is the
family value here that they are upholding?

SCHULTZ: There just seems to be no intensity and no concern with this
issue, 1.3 million people. That number is growing by -- I was told last
night in Washington by 72,000 a week, 1.9 more will lose their benefits in
the next six months.

And why are the Republicans so dogmatic with this issue?

JOHNSTON: Well, I think that they don`t have any contact with people who
are in these circumstances, and they have no recognition of this nor much
more importantly do their key donors.

You know, we live in a society so economically segregated that it`s very
easy to not recognize that statistically every 50-second person that you
encounter has no income today except food stamps, that we have the worst
child poverty by far of all the modern countries, all the modern economies.

No one else is doing what we`re doing to our children and the devastating
effects are indeed very long term and there is abundant research to show
that.

So, I go back to my point. What family value here are the Republicans
upholding?

SCHULTZ: Well, politically, there is no doubt that the Republicans are on
the same page. They`re not laying this all on the shoulders of the Speaker
.

JOHNSTON: Right.

SCHULTZ: . of the House John Boehner. The Senate is playing hardball in a
big way. They want offsets.

Let`s go down that road.

I mean, I get a sense that there`s no way this is going to get done unless
they find some money in the budget somewhere, although you can`t cut
defense.

So, where does this leave the Democrats as you see it?

JOHNSTON: Well, the Democrats are going to give up something somewhere
because they really understand that this needs to be done and it`s too bad,
we can`t do it in defense because only spend about 42 percent of all the
money in the world that`s spent on the military.

But we have all sorts of subsidy programs to corporations, and you can`t
see the Republicans going for that one either. Maybe instead of cutting
food stamps, we could cut farm support. Well, we can`t see the Republicans
doing that.

I don`t know, Ed. I honestly don`t know but what I do know is I hear
politicians all the time tell us children are our future. Well then, let`s
invest in them.

SCHULTZ: Well, that is something that just doesn`t seem to be on their
radar screen right now. They are all about the money. They`re all about
offsets, and there seems to be consistent language coming out of the House
as well it is being illustrated in the Senate by that vote tonight.

David Cay Johnston, good to have you with us. We`ll have more on this vote
tomorrow and more commentary on it as we move on.

That`s the Ed Show. I`m Ed Schultz.

Politics Nation with Reverend Al Sharpton starts right now.

Good evening, Rev.

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

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