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>> have the democrats failed the middle class by being slow and failed small business, for that matter, for being slow to get money to community banks? the president has said that this is what he wants to do. it seems like this is power to the people, isn't it? >> exactly. we've had a lot of good speeches and a lot of good rhetoric but it's an opportunity for people to take action. you know how angry and resigned millions of americans are? this is a small step and it's been going around. i have so many people coming up to me and saying, you know, this giveses me the courage to take that one step to say, you know, i can do something with my money other than helping big banks continue the risky behavior and charge all of the fees to the american consumer that they really have no right charging. >> no doubt about it. and the website, moveyourmoney daut info. >> already, over 300,000 searches of the local banks have actually been done through the tool and move your money. this is just the beginning. and we have amazing stories from the country. if anybody is watching and has already moved their money or is thinking of doing it, please send us your story. we'd love to post it. that's "the ed show." check out my radio website from wegoted.com. dodd, dorgan and ritter. three men out. let's play "hardball." good evening. i'm chris matthews in washington leading off tonight. no country for old men. politics has become one tough business these days especially for those who have to defend the way things are in this country. in just the past 24 hours three top democrats have decided to quit the business and not run for re-election. senator chris dodd in connecticut, senator byron dorgan in north dakota and governor bill ritter in colorado. while democrats can argue that dodd's quitting improves chances in connecticut, no amount of spin can wash away the obvious conclusion. these democrats have looked at the electoral landscape and would prefer to retire than lose. the implications are human. we'll get to them at the top of the show. republicans are shocked that president obama opted for a criminal trial in federal court for the christmas day bomber even though that is exactly what the bush administration did with the so-called shoe bomber richard reed. where does the hypocrisy end? what is going on with u.s. intelligence? twice in the last few weeks intelligence lapses have led to the disaster, the killing of seven cia employees in afghanistan or near disaster, that christmas plane bomber. how could this happen? we'll try to get some answers. back to politics. the biggest story surrounding democratic retirements may be their effect on president obama. they create a perception of the obama party being weak at a time party loyalty is a key to getting through the health care bill. remember this? elvis wasn't named a federal drug agent as he had hoped but this iconic photo has obtained a singular distinction. dick nixon and elvis. a keeper. we begin with the three big democrats who won't run for re-election, dodd, dorgan and ritter. democratic steve mcmahon and republican todd harris. todd you are giggling like the named a federal drug agent but this iconic photo has now obtained a singular distinction. easter bunny. what are you so happy about. your teeth are so white i'm appalled. >> what is going on. >> it must be the florida sunshine on the teeth. i tell you what is going on. here in florida where i am now the quintessential swing state barack obama has a 48% approval rating, 46% disapproval rating. nationally he started with a three to one approval. he is now almost even. that is the fastest drop in terms of presidential approval of any president in recent memory. you couple that with the 20% approval rating that congress has and that makes for a very, very difficult political environment for incumbents to run for re-election. the public is mad as hell and don't want to take it anymore, largely around spending. trillion dollar deficit, health care plan, bank bailouts, auto bailouts. this is not a political environment where incumbents want to put their name on the ballot. >> that shatters everything i know about politics. the public, before you get in this steve, care about their own condition, the symptoms of their lives, how hard it is to get a loan or get a job or hold on to a job. that is how people think. they don't think about these big numbers on the board until things are bad for them. when they are bad for them they start pointing at these things. here is the president's press secretary reacting to the news you just destroyed going after in a partisan way which is fair enough. that is why you are here. here is gibbs going the other way. >> it is hard to look into the crystal ball 11 mont from election day. there are retirements on both sides of the aisle in the senate. it will be the same in the house. we'll let the political season play out over the course of the next 11 months. i don't want to make a lot of predictions for 11 months from now. >> steve mcmahon, before you get going, i will interrupt you again. the numbers he alluded to. in the house of representatives 15 republicans are quitting, 12 democrats. you can see those numbers in red on the house side. on the senate side in black now. six republicans we new were quitting. now we know dodd and dorgan. why are they quitting and how can you take that as anything than a loss for the democrats because these guys are big shots. >> it is a loss because these guys are big shots. you are right. voters make adjustments on what is happening in their life. you can see wall street recovering and economic indicators that the economy is picking up. in main street america people feel like their lives are not on the right track. the 401(k)s are worth 30% and 40% less than they were. they don't know what their kids' futures are like. the incumbents are not getting it done. this is not a democratic problem. it is incumbent. >> let's take a look at dodd. here he is, surprised me when i read the paper this morning. here is chris dodd explaining his departure from the big time. >> over the past 12 months i have managed four major pieces of legislation through the united states congress, served as chair and acting chair of two major senate committees placing me at the center of the two most important issues of our time, health care and reform of financial services. i lost a beloved sister in july and in august ted kennedy. i battled cancer over the summer and in the midst of all of this, found myself in the toughest political shape of my career. >> you know, todd harris, it is a weird, strange world when a guy like chris dodd has to leave politics because of poll numbers and someone on your side of the aisle named david vitter who got caught with prostitutes, sex workers in washington and in his home state of louisiana and he's headed towards re-election. explain the thinking of the voters? could it be they vote on symptoms and are more angry about what is affecting them personally rather than what politicians are up to in their hanky panky world. >> i'm not from louisiana. >> explain his survival. >> he hasn't survived. >> he is headed toward it. >> he has a better connection despite anything happened in his past to the people of louisiana than chris dodd after four or five terms has with the people of connecticut there is no other way to explain it. >> there is a connection with the people. professional sex workers. is that how you connect with people these days somebody love me, please. >> the most reliable predictor of outcomes in elections is voting performance in the state. you can look at north dakota and see a state that is a very, very red state and understand byron dorgan. connecticut is a very blue state. i think senator dodd, he has done everything he can for the people of connecticut for 30 years. he lost his best friend in the senate. he lost his sister, gone through cancer treatment. he knows it is an uphill campaign and wondering, don't i have better things to do with my life. that is the tragedy here that people like chris dodd are choosing to walk away because they don't think that serving or fighting a tough campaign is more important or more worthy than going off and living a nice retirement. we are losing great people because this environment, frankly, todd, the bush administration left such a mess. can we just say it. >> you can do the republican part, todd. you have to tell people when you visit them at home in your senate seat or house district, look you have been paying me $180,000 a year for 20 years and here are the results. 10% unemployment, stock market with ch is wobbly. a national debt which has tripled. everything seems scary and zany. a trade deficit horrendous. nothing seems to be working at the federal government level. katrina was a disaster. we can't seem to stop the terrorists from getting on our planes. what do you brag about when you go home if you are a politician and say look what i did for you? what do you brag about if you are a republican? what has the republican party done for anybody in the last ten or 15 years for the people? >> well, chris, as you well know, voters don't decide elections -- >> i'm asking you a question what has the republican party done for the people in the last ten or 20 years. >> i'm answering you how you would win an election in 2010. >> what do you tell people if you have done for them if you are a republican? you have a president who signed every single spending bill when the republicans were in power, katrina a disaster, iraq which most people think was dishonest, an afghan war that won't end. we haven't been hit since 9/11 but 9/11 does count. what would you brag about? >> well, first of all, the bush administration kept the country safe. i want to say -- >> except that one big day. >> there was one day. >> hold on a minute. part of the problem that democrats have is they are so obsessed with continuing to attack the bush administration you guys are so obsessed with trying to get your pound of flesh you are ignoring the real concerns voters have in 2010. i hope to god that people on the left continue to try to go after president bush and his record for the next 121 mont because republicans are going to be talking about being a real check and balance on the runaway spending that is going on in washington right now. >> when did that start? >> there is no balance, todd. there is just a check. saying no. no thanks, not right now. not so fast. >> saying no to a trillion dollar health care -- >> todd that is not a program for success. this isn't a democratic problem. this is an incumbent problem. the fact you are sitting in florida today on marco rubio's campaign which you are doing a great job on demonstrates a point, charlie crist was unbeatable and now he has inincumbent itis. he is a republican not a democrat. it is an incumbent problem, tell me that is not true, todd, marco rubio's consultant. >> you are right. the reason charlie crist is having problems. >> he is the governor of nar and perceived as the worst you can be is a moderate. >> the reason he is having problems is he is not able to sacredably to republicans that he could go to washington and be a check and balance on the obama administration. marco rubio could make a credible argument for voters -- >> based on? >> his core beliefs. when charlie crist stood next to barack obama and embraced literally and figuratively the stimulus package that was a signal to florida republicans he is not someone who is going to go and take on nancy pelosi, take on harry reid. >> no, todd, that was a signal to moderate republicans in florida that he cared more about his state than saying no, no thanks, not right now. that is the problem republicans have right now. >> i just want to get the republican bragging points. so the republican party kept us safe except for 9/11. is that the argument? no, really. you had the worst attack on american homeland but bragging about defending the country. you defended america except for 9/11. that is your defense, right? that is the bragging point of the republican party. i asked you to name one thing they've done for this country 15 and 20 years. you are having a hard time giving me an answer. >> no. no. i'm not having a hard time giving you an answer. >> squandered the surplus. >> when i decide to write a book about the history of the last 20 years of the history of the republican party. my job is to win elections in 2010. >> just give me one. >> i'm going to keep my eye on the ball. >> steve mcmahon, youtube is watching. tell me what the republican party has done for this country in the last ten to 20 years thank you. plenty of time. we'll have you back with the answer. coming up tonight at 6:00, ed schultz has an exclusive interview with byron dorgan. he is quitting after all these years in the hometown of ed schultz from north dakota. where did dick cheney and other critics get off attacking president obama for trying terror suspects in federal court in new york when that is what bush did with the shoe bomber. it is unpatriotic, what, to do what they do? when is the bark going to come off this tree? you are watching "hardball" only on msnbc. here, kitty! here, kitty! oh, just come snuggle with momma! missing something? now at sears optical, get 2 pairs of glasses for $99.99. or take a year to pay. sears optical. don't miss a thing. announcer: there's an easier way. create your own business site with intuit websites. just choose a style, then customize, publish and get found. sweet. get a 30-day free trial at intuit.com. how did the cia and fbi miss that would-be bomber who tried to take down that jet over detroit and fall victim to an al qaeda double agent in the deadly suicide attack in afghanistan? why american intelligence is under pressure like never before and what can be done about it? 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(announcer) we understand. you want to grow internationally. welcome back to "hardball." is republican criticism on president obama fighting terrorism a little hypocritical. here is rnc chairman michael steele last night on "hardball." is the rest side, we have to have military tribunals on the wrong side criminal cases? >> to a large extent it is. at the end of the day you have to call it what it is. who are you dealing with? who are the jury of khalid mohammad's peers what american, what new york citizen is his peer who can sit in judgment. >> so that is the wrong side of this issue. >> the reason it is -- >> your president, our president at the time george w. bush tried the shoe bomber in criminal court in the united states. you said it was the wrong way to go. why did your president and our president at the time do it? >> again, i wasn't in that meeting. >> i have tricked you. i have let you give a policy position which i have now explained to you ran contrary to what the republican president did. you are laughing. but you just took a principle position and said it is wrong to have a criminal trial. for more on the republican hypocrisy, david korn and ron christy a former adviser to dick cheney. i think i caught him in a contradiction. is it better for this country to try these countries as warriors or criminals. he says as a matter of principle warriors. why did we try the shoe bomber as a criminal? >> he made a mistake. the shoe bomber incident took place in december, 2001. he was originally charged with obstructing a flight crew operation. congress and the bush administration recognized we needed to take more concrete accepts to protect the country. in the aftermath of a supreme court decision the congress enacted the military court act of 2006 calling for an unlawful military combatant, one who received material support from al qaeda. the difference between the shoe bomber and the incident now are apples and oranges. the person who tried to blow up a plane on christmas could be tried as an enemy combatant. specifically allowed for trying people as unlawful military combatants because they tried -- >> why is this shoe bomber in for life now? >> the shoe bomber was, again, he was tried, chris, he was tried for obstructing a flight crew and convicted. we did not have the statutes on the book. >> why is he in for life? >> the law was not on the book in 2001 as it was in 2006 because the circumstances have changed because the congress worked in a bipartisan fashion to change the law. >> this is a political attack. it has nothing to do with policy. it has nothing to do with legality. it wasn't the shoe bomber, zacarias moussawi, the blind shaikh. they have all provided intelligence that is actionable. what they are doing now is they see an opening. your boss, your former boss, dick cheney, his daughter liz cheney is out with a statement saying that president obama doesn't care about national security. this is a guy who spent months trying to figure out what to do in afghanistan which is all about confronting islamic extremism. he has had more predator drone terrorist. that is the point at which his father gets upset. his father has seen text messages. the former vice president's daughter put out this statement. they must have a house with a huge printing operation. >> she works at a particular foundation. it is not out of the house. >> senior fellowships. >> if you want to take a cheap shot. you said they have a printing press. >> let me tell you something, dick cheney is issuing statements and his family. they are e-mailed out of somewhere and they somehow become journalistic. >> your original comment is they have a printing press out of their house. she works for a living. she is trying to get the word out on how do we take steps to make american secure. >> she has a foundation. >> if the republicans have a foundation. the hypocrisy you display. >> president obama has weakened american security by treating terror as a law enforcement matter, refusing to use every tool at his disposal. what does that mean? >> i think, again, i'm speaking for myself not liz cheney. i can't speak for liz cheney. she can speak for herself. i think it is important the president of the united states takes every step possible -- >> we have 30,000 more troops going to afghanistan. >> excuse me. let's take bringing the people, the mastermind between the 9/11 attack to new york city. the new york city police commissioner saying i don't know i have the resources or money to protect the american people. >> how is that not using every resource? >> it is answering the question by saying if the politician commissioner in the city of new york says he doesn't have the police officers to protect the american people that makes america more safe. >> mayor bloomberg says fine. you can come up with a statement from a politician commissioner. >> the commissioner of new york city. >> the mayor of new york city. i trump your commissioner with who he works for. >> the hypocrisy. >> this statement is not coming from the cheney house hold. not the printing press that issues statement by statement every hour of the day from the cheney household. this is from virginia fox. on a conservative radio show yesterday. we only have the audio because it was radio. let's listen. >> how can you believe anything the man says anyway? has not kept a single promise to the american people. he's kept promises to his union base, to his trial lawyers, yo know, he signed an executive order to close guantanamo, all the promises he kept are the ones that endanger our lives. >> so he's endangering our lives. the president. >> i wouldn't agree with her statement. i agree with a lot of the substance of what she says. it is a little far and politicians on both sides of the aisle, representative grayson comes up with some bizarre statements. i will say president obama is not using all the tools at his disposal to protect the american people. >> let's go back to liz cheney. she said it is time for the president to making defending this nation a top priority as if he is not making -- he has the daily briefings. he figures out what to do in afghanistan, attacking pakistan with predder to drones. do you seriously believe he comes to work each day not thinking about defending the country? >> no. i absolutely believe he wants to defend the country. excuse me. the democrats do not view this as a war on terrorism. they look at this as a legalistic matter. alleged act, the suspect. >> you are making a formidable effort to defend the indefensible. here is more, this argument that everybody the republican party does makes the country stronger and everything the democratic party does makes us weaker so maybe someday when we get hit again they will be able to jump up and say we were right, you were wrong. i know how this game is play. this is republican senate candidate jane norton. it is the same anthem. >> and what i believe is happening, steve, is the fact that the rights of terrorists are more important in this administration than the lives of american citizens. we are seeing it in the criminal field. we are seeing it in the health care field. we are seeing it in almost every area that we are looking at. >> what do you make of that? the lives of americans aren't as important. there is a health care bill. >> she is saying the rights of terrorists are more important than the health care bill? >> you are trying to pin one -- >> i'm asking you -- >> i'm trying to answer your question. >> what is that? >> this president said i want to close guantanamo without thinking through the ramifications. i'm going to bring enemy combatants to the united states. these are serious issues. you can laugh about it but it does make this country less safe. >> the idea you are on the right wing of a political argument that makes you more patriotic is insane. >> i didn't say that. it has nothing to do with being partisan. >> there is a good argument that gitmo and all it represents worldwide caused more people to sign up for al qaeda and give up their lives in suicide attacks on americans because they hate america. >> they see us as the evil one because they already issued fatwas. that is not why -- >> it is a legitimate argument. david corn, ron christy. the idea of the moral superiority on the right wing is absurd after what happened in the last administration. the back story mind this iconic image. one of my favorite postal stamps. it is the most sought after archival picture. you are watching "hardball" only on msnbc. ♪ walgreens invites you to stay well this new year. ♪ with the centers for disease control and prevention saying... that vaccination is still your best protection, walgreens and take care clinics... now offer h1n1 flu vaccinations... every day at our more than 7000 locations nationwide... for just $18.00. so stop in today. walgreens. there's a way to stay well. with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. (announcer) 36-hour cialis. or cialis for daily use. ask your doctor about cialis today, so when the moment is right, you can be ready. we give you peace of mind. i have diabetes like a lot of us here, so we understand. compassion. patience. you'll find it anytime you call. our customers say we're number one. plus, they're grateful we're located in the us, where we also manufacture... the accu-chek aviva meters and test strips. americans caring for americans. that makes us proud. accu-chek customer care born in the usa. ves are demandingfor americans. that makes us proud. more for their money. good. this time, i'm watching fees like a hawk. i hate hidden fees. why should i have to pay for something that i shouldn't have to pay for? td ameritrade's pricing is clear and it's straightforward... it's spelled out upfront. no hidden fees... no bait and switch. no gotchas. and there's one flat rate for online equity trades... for big accounts... or small ones. that's the way it ought to be. time for fresh thinking. time for td ameritrade. back to "hardball." time for the "sideshow." new york congressman peter king offered the president some advice. here he is. >> name one specific recommendation the president could implement right now to fix this? >> i think one main thing would be to use the word terrorism more often. >> that will do it. there is an enemy plotting hour by hour i think it is fair to say, to kill us, drag the world into a horror when the billion islamic people has to choose sides, whole parts of the world have to choose between modernity and extremism. constantly braying against terrorism is not going to change that. it could play into the hands of them. saying the word terrorism is not the solution. the year, 1970, president nixon and elvis presley in the oval office. the king of rock 'n' roll hoped to be appointed a federal agent for the bureau of narcotics. it didn't happen. the national archives is putting together an event tonight commemorating the bizarre meeting of minds, the nixon/elvis photo opportunity beats out the declaration of independence and the u.s. constitution as the most requested image from the national archives. up next, new information about that al qaeda double agent over in afghanistan and the seven cia employees he killed. what it means for our intelligence efforts against al qaeda. and independence and the u.s. constitution as the most requested image from the national archives. and what it means for our intelligence efforts. that's coming up here next on "hardball." announcer: trying to be good to your heart? so is campbell's healthy request soup. low in fat and cholesterol, heart healthy levels of sodium, and taste you'll love. chef: we're all kind of excited about it. guy: mmm! i can see why. announcer: campbell's healthy request. m'm! m'm! good! for your heart. then get a four-star hotel at a two-star price from hotwire.com. when four-star hotels have unsold rooms they use hotwire to fill them, so you get them at ridiculously low prices. ♪ h-o-t-w-i-r-e ♪ hotwire.com hi, everyone. here's what is happening. the oregon national guard scrambled two fighter planes to escort a plane back to portland international airport. the airline says there was not a terrorist incident. meanwhile, the nigerian man accused of trying to blow up a northwest airlines flight and in an exclusive interview on "the ed show," byron dorgan refires after 40 years in bub lick service. welcome back to "hardball." is our intelligence system failing? a nigerian whose own father warned the cia and the u.s. embassy about him was able to purchase a plane ticket with cash, check no bags, board a flight with explosives and a syringe sewn in his underwear and an al qaeda double agent in afghanistan was able to lure seven experienced cia officers to their deaths in afghanistan. jordan's use of this informant is a storyline in "body of lies" where the head of jordanian intelligence flips a low level al qaeda operative to spy for him. >> continue your life with your brothers in al qaeda. we will advise a way to talk. >> come. come. up. up. go. what is the most familiar with, cia officials meet with what they think would be someone they think is working for them. that person blows himself up and then they are all killed. >> following on the clip we watched from "body of lies" the agent they were meeting in khost, in eastern afghanistan was a jordanian agent, a radical muslim doctor, part of this jihadi underground. the jordanians thought they turned him so he was a double agent and sent him into the tribal areas of pakistan thinking he might be able to find the location of al zawahri, a big target for the u.s. we were so excited about this, almost panting about this that this target could be delivered to us. it turns out this double agent was a triple agent. something you rarely see in the intelligence world, who had been at some point flipped back by al qaeda. so when he entered that space in khost, he was wearing a suicide vest. we had too many people there. we should have never met wi him in the perimeter of a base and he killed seven of our cia officers and one jordanian who was his handler. it is as big of a screw up as i can remember in the intelligence world. the starting point is we are so hungry about information about this adversary in a sense we are easy targets for clever operators and al qaeda are clever operators. >> you are an expert on this effort to try to catch the bad guys. in your mind's eye, how big is al qaeda? >> people talk -- >> are there hundreds?

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