Transcripts For MSNBC Morning Joe 20100723

>> your job? >> what are you talking about? you just trying to make -- what job? the one i got? >> yes. >> how do you think i got my job? i was elected, right? how do you think -- >> two ways. you could lose it by your colleagues voted you out of here because of ethics violation or your constituents -- >> what constituents? >> nbc. msnbc. >> it doesn't sound like msnbc asking these dumb questions. but it just shows what has really happened to a channel that did have some respect. >> okay. good morning. today is friday, july 23rd. welcome to "morning joe." i'm mika brzezinski. joe is off this morning. but you've got willie and me. with us on the set is editor in chief of u.s. news and world report and chairman of copublisher of the new york daily news, mort zumer zuckerman. and chrystia freeland is with us and donnie deutsche, chairman of deutch incorporated on the set with us today. good to have you, donnie. >> we will have luke on the third hour of the show but let's wake him up because he is a hard working reporter. let's call him when we get to this story in this plot. that was quite a moment for luke who handled it quite well and i'm not sure what charlie rangel thaw he was doing. >> that will be in news coming up. >> i don't know if arrogance is a good angle but maybe it's worked for him and worked in the past for others, but it definitely feeds into some of the polls we're going to show you. i'm being sar kask. >> i also wonder the age thing. you get to a certain age he is 80. where i'm not saying he doesn't -- but i don't have to put up with this stuff. think about the pedestrian in the street. they drive, i'm 80, i can do what i want, i can wear a white belt. i think there is something that comes with age you lose your -- >> i think that's a smart observation. >> mort is getting worked up! >> no, i don't mean that. but losing a feeling of i have achieved these things in my life and who are these young kids bugging me? >> it's very interesting. i think that's the undertone. >> the only thing was -- >> it's not rational and luke did nothing wrong. he is going who is this whipper snapper? i've been in congress all of these years. i'm charlie rangel and i don't answer to you. >> and then charlie rangel starts to lash out at your network. it was fascinating. >> charlie rangel is in a lot of other trouble. the daily news won the pulitzer prize for the role he played at the apollo thet. he was chairman of the board. he gave a contract to percy sutton's group to handle all of the entertainment. the contract said they had to pay $25% of gross as a rent. they ended up paying 25% of net. a group of the board trustees came to the daily news. we wrote 11 pieces on this thing and exposed the whole thing. he was thrown out. everybody else was thrown out. this is not only his only, shall we say, discrepancy. >> we have more on this in news. chris will wake up the whipper snapper who caused all of the trouble, obviously. he needs to do a little more work. dozens of ships stationed in the gulf of mexico are under orders to evacuate this morning ahead of tropical storm bonnie. forecasters say the storm is expected to pass near the florida keys today and may reach the bp spill site saturday night. kofged add miles an hour thad allen says the bp well will remain capped. but will the storm be that bad? we are hearing different versions of the story here. let's go right now to nbc meteorologist bill karins. >> it's not a big, bad storm and a weak. it's a shame they are going two weeks behind schedule to fill the well and kill it because of this storm. it just happens to be it's going to track right over the top of the spill site and into louisiana. you can see it this morning. does not look very impressive. it's about to move into south florida with some squally type weather. you can look at the radar and that is not impressive. the storms up in wilvet wisconsin and iowa this morning are a lot worse than this right now. the storm system is located right about in here. now the hurricane hunters were just in here and they barely even found a close circulation. very close to not calling this a tropical storm any more. the waves aren't very high on the east coast. you'll see some out there eight feet off cape hatteras and that is rough seas so another reason why they may have get the boats out of there because they are concerned about waves around 6 to 8 feet on saturday. it's a tough call. they had to make. two days in advance because it takes so long to get people out of there. approximate a weak system but look at the path it takes. right over the top. if it could have gone a little further to the south they probably would have left everyone out there. because it's a weak system and going through the oil spill i guess they had to get everyone out of there. the bottom line is that this storm is not going to have significant impacts today in florida and not going to have significant impacts in louisiana at its landfall but it happens to be it's going over the top of the oil spill. >> bill karins questioning the call a little bit but we'll follow that. bill, thank you very much. a new study says the bp oil crisis could cost the gulf region almost $23 billion in lost travel and tourism revenue. researchers at oxford economics and the u.s. travel association say that is because tourism is based on perception and the now three month long gulf disaster to have affects on area businesses and to combat sluggish tourism in the gulf, the first family will spend a weekend next month on florida's gulf coast. that's an interesting and important decision. yet, i believe they are headed elsewhere this month? martha's vineyard? >> it's a good move. you said interesting thing about perception. if you were planning a vacation now and you go i can't go down there. it's a shame. in reality, so much of the region still is fine and fine for swimming. so, you know, somehow there needs to be campaign out there. funded campaign to say our beaches are open, great, and it's an american thing to do to come on down there. i think the president doing it is certainly a step in the right direction. >> is it soon enough? they are going to martha's vineyard and not necessarily making a huge summer-long commitment to the gulf. could you see more if you were advising the president on messages and marketing of this message? >> that's the kind of thing people want to see and even though it's contrived. yes, this is where i'm spending my vacation. sent that signal out. he is on vacation, he should dress more like he is on vacation. did you see him walking in the park? what is that? come on! you're hiking. you're on vacation, put on some bermuda shorts and flip-flops. >> isn't it damn if you do, damn if you don't? if he wore shorts we would be talking about his legs the whole time. >> willie and i were talking about our cruise wear. >> they have three-piece suits for cruising. >> donnie and mort giving the president fashion advice. that is just sad. i will move on. >> considering the source! whoa! >> should be the other way around. >> i want to bring my dad into this. the jacket. >> the italian jacket? >> i had a discussion with him about it the other night. it didn't go well. he thinks he is but we'll fix it. >> i missed it. >> please! >> we'll get a picture of it. >> please, i'm trying to focus here. most awful. moving on. i hope we get the whipper snapper on the phone. a house investigative committee has dealt a serious blow to new york representative charles rangel causing him with multiple ethics violations. details of the charges against rangel are expected to be revealed next week. but sources say rangal has racked up violations for wrongful use of unstabilized manhattan apartments and failing to report income from a beach-front possible in the dominican republic. rangel took out his mound mounting frustrations on msnbc's luke russert who asked rangel if he is afraid of losing his job. >> are you worried about losing your job? >> what are you talking about? what job? the one i got? >> yeah. i mean, serious violations. >> how do you think i got my job? i was elected, right? >> there is two ways. you could lose it by your colleagues voted you out of here because of ethics violations or your sqaents constituents -- >> what constituents? >> you are young. i guess you do need to make a name for yourself. basically, you know it's a dumb question. >> mr. rangel, will you address -- >> it's a dumb question! >> sir, sir -- you did not file tax properties in the dominican republic allegedly. if that is true, isn't that a problem? >> it doesn't sound like it, you asking me these dumb questions, but it just shows what has really happened to a channel that did have some respect. >> i think he thought he might square luke. but it didn't stop the questions. how are -- how do you describe these newspapers? >> the new york papers. charlie charged. >> tabloid. >> you're not scared of that title? >> not afraid of the tabs. >> charlie rangel put out a statement saying the charges raised by the media, no, it was a bipartisan house investigative committee that was the charges. >> interesting. around the country raising the most money and fund-raising mirrored in these controversies? crazy. in a strange way, if he doesn't lose his job over this, it doesn't hurt him. bizarre. >> check this out. a pattern of this thing where back in october, you remember this, mika? >> yeah. >> our d.c. cruiser betsy: asked charlie rangel about the ethics probe and here is how he handled that. >> ethics pajeds investigation penning your work as chairman of the house ways and means? >> if i did, i wouldn't continue to be the chair. >> how did you fail to -- our taxes? >> i know it's your job and i don't blame you but it's really so rude. >> wow. i don't think it's going to work. rangel, who gave up his position as chairman of the house, ways and means committee back in march maintains his innocence about this. it we get the whipper snapper on the phone? luke did a good job and i want to ask -- >> it went to voice mail. >> really? >> thursday night, luke has been out. >> i'm pretty sure he was out celebrating. >> how about his cell? >> cell and home both, voice mail. >> luke got home from cafe monano an houring on. >> did you tell him mommy was calling? he better call right back and let me know when he does, okay? >> okay. >> i was going to say beep him. >> it's 6:00! he is sleeping! >> no, no, he's a reporter he should be up and answering his phone. if he's a real reporter, he sleeps with his blackberry pressed to his face. isn't that what you do? >> always. >> he's not married, is he? >> no. >> one might think he -- >> oh, donnie, you -- come on! >> it's possible. he's a big time guy. >> he is sleeping like this. >> i'm not impressed. we'll see him at 8:00. maybe he is getting his beauty sleep. >> if he is sleeping with a blackberry, he is a -- >> a lot more to talk about this morning. new gallup poll finds congress ranked dead last out of 16 institutions when it comes to confidence. only 11% of americans say they have a great deal or quite a lot of confidence in congress and number down from 17% last year. confidence in the military with 76%. tv news, tv news was at 22%. >> and the president? >> 22%. >> the lowest any institution ever rated since 1973. >> speaking to your point about how the rangel situation actually isn't a problem, maybe that statistic suggests that even if it's not a problem for an individual politician, it's a huge problem for the institution of democracy, right? i mean, people -- you know, when people see ethics violations they say who are these guys? i'm worried about the economy. i don't have a job. i'm worried about the deficit. >> it's a faceless if. congress is the government. congress is what is wrong with the world. by the way, if the job numbers change that number on congress would change. mort, do you agree with that? >> not very much. i think the congress at best 15% approval. down 15%. is there a way they do their legislation that does not inspire public confidence. >> let's talk more about this. i do have another big story to cover this morning in the news blog here. president obama, what are you laughing at? >> we intercepted you. i apologize. >> that's what we do here! >> no, chrystia, i feel comfortable. you're making me feel at home. no. chrystia freeland filling in for joe this morning. president obama weighing in on the shirley sherrod controversy saying agriculture secretary tom vilsack rushed to judgment when he decided to dismiss the usda employee. he the president added he has instructed his administration to learn from the circumstances surrounding sherrod's firing. >> he jumped the gun partly because we now live in this media culture where something goes up on youtube or a blog and everybody scrambles. i've told my team and i told my agencies that we have to make sure that we're focusing on doing the right thing, instead of what looks to be politically necessary at that very moment. we have to take our time and think these issues through. >> the president also personally apologized to sherrod and appealed to her to return to work at the department. here is sherrod describing that call. >> i told him right away, you are my president. you've always been my president. and i've always wanted to do whatever i could to support you. before he hung up, i did tell him i need to get you down to south georgia. >> do you think the president is coming some. >> i don't know but i told him and i said, and bring michelle. >> interesting. she hasn't decided. >> she told us yesterday morning when she was in here, gosh, i don't know. i don't know if i can go back to that place. maybe there is something bigger i can do put in this position. >> obviously, she could maximize what has happened and i mean that in a positive way, but in -- i guess in the spirit of what the message is of what she was initially saying in march to the naacp reconciliation, i think there's a lot of value in her going back. >> i also think this is a good story in that -- mort, you will speak to this more as a guy who spent his life in the media. it's a good time-out for everybody to step back. obviously, no casualties in this. she will be better than ever. i think that maybe there's just -- everybody apologized. it's kind of like we screwed up. everybody came forward. it's a little anecdote where we live in a world unfortunately you read something in a blog no different than reading something in the financial times. it sticks with you. >> i think it will be interesting what impact it has on how the president behaves and on how we assess his behavior because one thing he really has taken a knock for is being too restrained, not responding right away, being the cool guy. and i think this episode actually says that could be a strength. >> i couldn't agree with you more about that actually. i think a lot of people scrambled under him to fix what they thought was a race problem and it was a disaster. i mean, it is just on every level, a huge disaster. a woman is making a speech on reconciliation and fired for being racist! it's ridiculous. it's beyond ridiculous! under the first black president. >> think race is a bigger problem now you thought it would be so different with our first army president. >> we can talk more about that. communication breakdown. sharon angle get this invites the media to an event and walks out on them. that's when they started asking questions. we'll find out what happened next in the politico playbook. unbelievable. later from lindsay to blago, willie, seriously! wait! what happened with the lady there? what is she doing some. >> she's a politician in india is very frustrated with the way a vote went. seriously. >> okay. we could learn from her in washington. i think. >> watch. she will throw it at the cops. >> at the cops? >> yeah. . bang! >> good shot! >> it's just me on a day i'm upset with my husband. first, bill karins with the weekend forecast. >> good morning. we give you the bonnie update at the top of the show and not a big deal in south florida but bring rain to miami and ordinarily orlando. look at the heat in d.c. today. 98 degrees and taking you through the weekend nothing changes. new york city, 99 on saturday. d.c., 101 and dangerous heat as we go through the weekend. up and down the mid-atlantic and all through the southeast from dallas all the way through atlanta up into the mid-atlantic, stay cool this weekend and stay in the shade and go to the pool if you can. uch watching "morning joe," brewed by starbucks. ♪ should i stay or should i go now ♪ ♪ should i stay or should i go now ♪ ♪ if i go there will be trouble ♪ ♪ and if i stay it will be trouble ♪ for those of us who have lactose intolerance, let's raise a glass to cookies just out of the oven. to the morning bowl of cereal. and to lactaid® milk. easy to digest and with all the calcium and vitamin d of regular milk. 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[ male announcer ] we all need people who will be there for us in life. people who say, "we're with you, no matter what." at wachovia and wells fargo, we're with you, when a house turns into a home... ...when a passion becomes a career... ♪ ...when a relationship turns into a lifetime... and when all the hard work finally pays off. we're with you when you need someone to stand by you. wachovia, wells fargo, and you. together we'll go far. ♪ finally, two more massage therapists are coming forward and accusing al gore of sexual misconduct. one woman said that gore stood naked in front of her appointed south and said "take care of this." even bill clinton was like, the student has surpassed the master! >> that is just wrong. by the way, yes, willie just noticed in that picture that is the men's room. >> do we have that picture? mika is going into a men's room in that photograph we just showed. what are you doing this? >> i was just opening the door. >> do we have the picture? >> no it's fine. >> notice the sign on the door. >> looks like she is blocking it. >> that's ridiculous. let's take a look at the morning papers. "usa today" the number of soldiers forced to leave the army because of a mental disorder has increased by 64% since 2005 and it accounts for 1 in 9 medical discharges according to army statistics. the trend matches another reason indicator that show a growing emotional toll on a military that has been fighting for seven years in iraq and nine years in afghanistan. charleston daily mail. conceding they can't find another votes for the measure senate democrats abandon a measure that would seek to limit greenhouse gas emissions. >> storm aims for the gulf. pensacola officials say bonnie on a path to louisiana and likely create dangerous rip currents but not expected to bring more oil to florida shores. >> the "l.a. times." families flee the immigration law already struggling phoenix businesses are losing more of their clientele. >> seattle times. a message from the barefoot bandit. don't try this at home. attorneys for colton harris-moore who has more than 90,000 followers on facebook downplayed his anti-hero status in court and says his two years on the run was no fun. with us the chief white house correspondent for politico, mr. mike allen with a look at the playbook. >> happy friday. we have a barefooted edition of the playbook. >> yes, we do. happy friday to you. customary for politicians to chat at the media after public events. sharon angle made reporters work for the story. let's check out what happened, mike. >> we will make ourselves available. i know sharon has got a very tight schedule. but peter and i and others will make ourselves available for you if you have individual questions. >> so what happened there? she was introduced as about to take questions. she looked at the press and walked out the side door. what happened there? >> that's weird. >> of course, she is the superconservative running against harry reid and she hadn't appeared before her press six weeks before she has talked to reporters. so they were all excited. the nevada press corps all turned out. she has such a tight schedule that her whole speech, her whole event was three minutes where she said that she wanted to repeal the death tax. then it came time for questions and she left! she didn't say good-bye. she didn't say bye or leave. so the reporters just followed her out, including a pregnant reporter who was struggling with it and she didn't wave or say hi. it was kind of odd. they didn't say or ask anything to her. i think is shows what an odd campaign this is, what an odd relationship she has with her press corps. they weren't even asking her questions. they just sort of knew she wouldn't talk so they were shooting this video including the tracker video from the democrats. it reminded me of a great video from 2006 where in another case of really bad advance work, the reporters, the candidate tried to get away, got into an elevator. the reporters got in the elevator with him! including the democratic tracker! and so they are asking questions to the candidate in the elevator. >> is this a problem for her campaign or is this just a case of hurt feelings by the press who is not getting enough access to her? >> well, i would say a pretty poor advance of press work by her campaign. don't advertise something as a press conference if you're going to give three minutes about the estate tax. put out a youtube but don't put yourself in a position like this where you're going to look like you're running from the press. >> "the washington post" has a piece, front page today, that goes into detail about this and people asking her questions and her absolutely not having answers for them. how can you not -- >> that is going to be -- >> how can you not be giving harry reid a run for his money? >> that should be the centerpiece of the marketing campaign to use. >> let's talk about charlie rangel. luke got information on this. he is painting this as a media campaign against him although that is becoming more and more difficult now that a house investigative committee say there was wrongdoing there. >> turns out charlie rangel has bad relations in the house. politico's john bresnahan said he have been on a statement of apology that would allow him to get lesser or no charges. but the house leader started to decide he seemed to be trying to drag this out and push it past the august recess and they decided he was not trying to make a deal so they snapped this announcement yesterday. now we're told there could still be a deal but they took him by surprise, so some very high stakes and now public negotiating at a time the republicans want to be able to say democrats haven't been good leaders. >> all right. mike allen, thanks. did we get the whipper snapper on the air about his little confron? >> he's on the fen. >> you got him, chris? >> he's on the fen. >> luke, we've been trying to reach you. >> are you there, mika? >> yeah, i'm here. i've been here. >> good morning! good morning. the only guy who is up at this hour watching "morning joe" is mike allen so i'm number two. >> luke, you don't have your face pressed to the tv while you watch your blueberry? >> that is my existence these days. how are you guys? top of the morning to you. >> we will have you on later. we played a little bit of your confrontation with rangel. what is going through your mind when he starts parading you for asking questions? >> you know, quite frankly, i was just taken aback and people were like, well, it's amazing you kept your composure. absolutely. i'm going to keep my composure. he is an 80-year-old korean veteran and one should keep their composure. i was shocked he went after nbc in that way. i didn't know we were not that reputable of a network to be honest, with you. >> good job, luke. we will talk with you in the 8:00 hour. >> that is a live photograph of luke. look at the hair! just got out of bed with that hair! >> are you showing al fal take right now? >> i'm impressed by the pajamas. >> luke, go back to sleep and get over your hangover. >> i've been working all night! working harder than you are! >> you should have answered your phone when it rang. baseball takes new action to test players for human growth hormones. details next in sports. we will be right back. ♪ [ dealer ] during the autobahn for all event, you can get a great deal on a volkswagen. sounds terrific. cars built for the autobahn. actually, we're both pretty conservative drivers. ooh! shoot the gap. shoot the gap! whoo! so, they all come with carefree maintenance? yep, scheduled maintenance is included. i like the color. good. 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i just look at the price. >> then sit there and say can i have a blanket? that will be $50! take us to sports. anything good, like the red sox? >> yeah. you have to wait one second. major league baseball commissioner bud selig baseball will test for human growth hormone in the minor leagues. any player testing positive for the banned substance will face 50-game suspension the same penalty for a positive steroid test. why is this significant? because selig began testing for steroids in baseball nearly a decade ago and tried it out first in the minor leagues as he is doing now with hgh and later got approval from the players union to test in the majors. this could be the beginning. this is the first time any sports league in north america will test for hgh. highlights from last night. yankees and royals. check out this call. if you're a yankee fan you love it but if you're a royals fan i mean, jorge posada didn't come close to tagging the guy at the plate. throw beat him. jorge was walking back to the dugout and forgot to tag the ball. the ump called him out. he tagged his own thigh on that play. a-rod in the eighth inning. opposite field home run. his 599th career home run. one more, he joins the exclusive 600 home run club. here are your red sox, mika. taking on the mariners in seattle. big papi, david ortiz looks like he has a home run, right? look who is out there. ichiro! >> sorry. >> the great ichiro makes an incredible leaping grab, robs a home run from ortiz. what a play. ninth inning. sox up 6-4, one out. jonathan papelbon came on to close it out, easy 6-4, 3 double play, right? no, sir. the throw goes past the first baseman. mariners score five runs in the ninth to tie the game and good news, in the 13th, eric patterson, a two-run double scores youkilis and cameron. rux win the game 8-6 and they are still seven games out of first place. not even in the wild card. 3 1/2 games out of the wild card. not looking good. >> i think we should throw out the first pitch and bring them some good luck? >> i think so. brewers/pirates highlights. everybody is waiting for that! here is why we are showing it. >> wait a minute! i have to prepare myself emotionally! >> the guy comes around third is prince fielder. he is 270 pounds. he is close to three bills. the catcher gets out of the way to save his own life! >> yeah! >> but he did hold on to the ball! he held on to the baugh. good for him. tags. he tagged fielder out. >> he is large. >> preserves his own body. the brewers win 3-2. things not going so well for the orioles this year. looks like j.j. hardy is called out at first base. ump calls him safe. o's first baseman ty wigginson wigginton goes ballistic. the manager juan samuel, he gets his money's worth! >> hold on. >> these are grown men. >> boys, it's a game. seriously, it's a ball and a bat. >> part of the show. >> it's a game! >> two guys ejected. >> that's ridiculous. >> orioles are bad. >> it's been a long time. there you go. >> children, children! >> let's see it again. looks like he was out. orioles don't get the benefit. >> he is so out! >> it's not even close! >> from a marketing perspective is this good to do? >> when you're down that out of it, good thing to do. >> personal privilege here. we reported recently that bobby johnson, the football coach at my alma mater vanderbilt retired, resigned abruptly. that means robbie caldwell will be the interim head coach. yesterday, he introduced himself a little while crazy at s.e.c. media day. >> i go from lining the field to i'm head coach in the s.e.c.! i can still walk in places and nobody know me. last night, i was opening a door for some people and they gave me a tip! my first hourly paying job was on a turkey farm. i don't know if i can tell you what my job was. but i was on the sem nating crew. >> he was on the inseminating crew. >> somebody said if that was a regular accent, none of that stuff would be that funny. >> he is going to bring vanderbilt to glory. >> if he would have given that line in any accent, it doesn't matter what accent. [ man ] i never knew what my big old fashioned broker did with my money. so i switched to e-trade. it's high-tech, low cost, easy to use. it's transformed the way i invest. experience high-tech investing at e-trade. blue shirt: great. well, with every laptop, you get a geek so... take your pick. mom: look at all these fabulous geeks! there are so many! look at this one! it helps you video chat with mom! son: bingo! mom: look at this one. you can video chat with me, honey. son: mom, go get the car. mom: he's in such a hurry to learn. vo: buy any laptop and get geek squad support for six months. online. on the phone, or in-store. ♪ and let us not confuse the oil spill with the libyan bomber. i've been absolutely clear about this right from the start and in our meeting, we had what we called a violent agreement which is that releasing the lockerbie bomber, a mass murderer of 270 people, the largest act of terrorism ever committed in the united kingdom was completely wrong. >> absolutely. that was british prime minister david cameron earlier this week trying to make a distinction between the bp oil spill and the lockerbie bomber approximate but was there, in fact, a connection in the form of a former british spy who is now a special adviser to bp? here with us now nbc news national investigative correspondent michael is a could have who stoled stole my office. out with the new, bring in the old. >> i did this with much trepidation. i said i'm sure mika is okay with this. are you sure? they insisted you were. >> i come to washington bureau and there is michael. first of all, weave together this web for us that could be a little bit of a narrative it in terms of what happened. >> we have this hearing next week, the frrn relations committee. it's going to go over a lot of stuff that was out there a year ago that didn't get as much attention as it is now, but the more people learn about what went on here, the more outraged people are, particularly the families, anybody who has been following this. the focus of the hearing is bp was trying to get this oil deal in libya. >> correct. >> everything was lined up and the libyans said, wait, we have a problem. we want meg rah hi convicted, former libyan intelligence agent convicted of blowing your lockerbie, the worst act of terrorism in british history, killed 180 americans, probably worst act of terrorism prior to 9/11. and so the brits want this deal. we want the oil deal. bp does. the guy in charge of if for bp was mark allen, a top mi-6 agent. the guy dunn mi-6 agent in charge of counterterrorism, middle east expert, goes to work for bp. he is the point man for bp. he calls up jack straw, the justice minister, and says you got to sign this prisoner transfer agreement that would allow for megrahi real estate lease. two phone calls, writes a letter. the british government then reverses its position. it had committed to the united states that in 1998 that megrahi, if convicted, would serve the rest of his life in prison in a scottish or uk jail. last summer, the british government switches its position. supports a prisoner transfer agreement that would allow for megrahi's release and following that, the skots then release him. the brits say that wasn't the ground upon which the scotts release him. >> what do they say? >> compassionate release. >> that is a lie because he is still alive. >> but you actually read the scottish report from the prison director about what the grounds were for this compassionate release, i think if people read it, their blood would boil. i mean, they talk not just about his medical condition, but his family and his desire to reunite with his family. we also discuss consideration of family has returned to libya, not only benefit the patient, would be advantageous to the family and megrahi has seven children who will be with his elderly mother. this is a guy who is a convicted terrorist of killing -- >> there are 270 family members with loved ones -- >> khalid sheikh mohammed. i want to be reunited with my family in the last month of my life. can you imagine what the publi reaction would be some all of this was -- you know, a lot of this was out there a year ago but did not get very little attention. secretary of state clinton called the skots and asked them not to release megrahi. holder did. it was muted and you heard no public statements from the white house. >> and name what is raising it? >> look. what brought this up again was bp and the role that bp -- >> money and oil. >> had in this. >> when people say who let this guy go the name is jack straw? who is it? >> the brits say the prisoner transfer agreement was irrelevant because the grounds upon which the skots let him go was compassionate release. you heard cameron say the other day, i've ordered this document review and the facts should be out there. you know, i think that he was rolling, both the president and the congress had been in there, because when i pressed the brits what does this mean? you release all of the documents on bp lobbying on mark allen's phone call, the letter he wrote and everything to do with the prisoner of transfer? they say, no. because they don't believe prisoner transfer related to the decision to release so that would not be included in this document review and not releasing anything like that on bpa role. >> it was not cameron's government. >> remember after obama took office, all of these calls for him to investigate waterboard, bush administration, torture, all that have? '. this is like that. cameron doesn't want to go back and look about the past because clel it's too explosive and makes thing too difficult for him. >> i wish there was more condemnation publicly on this side of the pond as well. we made the distinction here on this show that this is about oil. we read some op-eds. it just fell flat. next thursday is the hearing. you're going to come back and talk to us about it and who do you think will show up for that? >> that's a very good question because the committee asked for tony hayward and mark allen. i doubt either one will show up and interesting to see who bp -- >> hideing in a corner. michael isikoff, thank you. could switching to geico really save you fifteen percent or more on car insurance? can fútbol announcer andrés cantor make any sport exciting? ha sido una partida intensa hoy. jadrovski está pensando. está pensando. veamos que va a hacer. moverá la reina o moverá el caballo? que tensión. viene... viene, viene, viene... gooooooooooooooool! geico. fifteen minutes could save you fifteen percent or more on car insurance. . oh, yes, it's time. i saw that. >> time for "news you can't use." and the week review. mika, your favorite story. >> what is that? >> lindsay lohan. >> what? no! >> roll it. roll it whenever you're ready. >> at number 3, lindsay locked down. known prior to the gulf oil spill as america's biggest disaster, lindsay lohan reported to the slammer this week to serve a harrowing two-week sentence for something she did. >> i'm sorry. >> in what is celebrity tradition in los angeles, she performed a stylish perk walk during which she was showered by confor the confetti. >> lindsay, fight four right to party! >> that's really all i have to say. >> she went to jail? oh! >> as one would expect, lohan's imprisonment set off rioting around the world approximate at number 2, blago falls silent. >> the biggest lesson i've learned is that i talk too much. >> reporter: after a year and a half of glorious buildup. >> then i thought about mandela, dr. king, gandhi. >> i think there is sunshine hanging over me. i got this thing and it's -- golden. i can't wait to take the stand and testify. >> reporter: rod blagojevich denied by his own attorneys the chance to tell his wonderful story in a court of law. >> it simply came down to an argument between an old bull and a young toad. >> reporter: as one would expect, the muzzling of blago set off rioting around the world. and the number one story of the week. >> something goes up on youtube or a blog and even scrambles. >> reporter: shirley, you can't be serious! >> here i was faced with having to help a white person save their land. >> reporter: the usda, previously known only for its bright inspection stickers on delicious cuts of meat, found one of its employees, shirley sherrod, in the middle of a bizarre national scandal this week. >> shirley, they want you to pull over to the side of the road. >> reporter: sherrod pulled over and resigned under pressure from her bosses at the department of agriculture based on a months old video snippest posted by a conservative blogger. >> you're going to be on george beck. >> reporter: the georgia farmer spoke up to say. >> it's a bunch of hog wash in my opinion. she saved our farm. she did. >> reporter: when the full video popped up and it turned it out shirley sherrod was not a menacing racist after all, she got a call from the president and apologies from just about everyone else. >> my personal and profound apologies. >> i owe miss sherrod an apology. >> i would like to apologize to you, too as i apologize all the time. >> reporter: inflamed of oceans here at home, but also set off rioting around the world. you just can't see that video enough. >> that was a good one. >> the indian politician was frustrated the way something went. >> could we nominate the farmer who spoke out, a hero? >> yes. >> that was great. >> okay, that's true. that blago, i can't believe it! >> blago late night. >> this country. >> will you co-host? >> yes! of course, i will! >> thank you, chrystia. >> fun, as always. >> mark whittaker next and plus a preview of "meet the press" with david gregory. ♪ stand by me [ male announcer ] invest with fidelity and get more for less. don't you wish all investing decisions were this simple? ♪ ♪ ♪ now when you open and fund an account, you'll get 200 commission-free trades. fidelity investments. turn here. ♪ ♪ jumped the gun partly because we live in this media culture when something goes up on yoob youtube or a blog and everybody scrambled. i've told my team and i've told my agencies that we have to make sure that we're focusing on doing the right thing instead of what looks to be politically necessary at that very moment. we have to take our time and think these issues through. good morning. today is friday, july 23rd. what a week it has been. with us on the set of the shower of "morning joe" is mark whittaker and editor of u.s. news and world report is mort zuckerman and donnie deutch chairman of deutch incorporated. we want to sort of bring the story of miss sherrod to the next level and see what the next steps may be. president obama is weighing in saying agriculture secretary tom vilsack rushed to judgment when he decided to dismiss the usda employee. yesterday the president personally apologized to sherrod and appealed to her to return to work at the department. here is miss sherrod describing the called. >> i told him right away, you are my president. you've always been my president and i've always wanted to do whatever i could to support you. he hung up, before he hung up, i told him i need to get you down to south georgia. >> do you think the president is coming? >> i don't know. but i certainly told him, and bring michelle. >> lessons learned from this, mark whittaker, as we look back at it a day or two in the rearview mirror. >> i tell you what. it happens with every new administration where they became what they beheld. that every new administration comes to washington thinks it's going to change the culture and not succumb to the hold hardball politics and think they are different and at some point, maybe it's just for this week, that they behaved in the same crass political way that other administrations have before. obviously, the president is trying to get beyond that, but -- the irony here you see that this woman really loves this president. i mean, on personal level. it's another of the great ironies here. maybe this phone call will get her to come back but she made a good point the other day which is to ask her now, after all of this, the way she has been treated to come back and solve all of the problems of discrimination in the department of agriculture almost single handedly. there's a little bit of kind -- i'll use the word patronizing aspect of that and compounding everything. >> i was talking about last hour how the meaning of the word reconciliation which is what her speech was about when started this whole thing when it was taking up the context that maybe going back to her job is a good way of bringing that forward. but, at the same time, you are right. what is that asking of her? >> you know what i think she really wants? she wants to go back to her old job. i think she was very comfortable. that was her comfort zone. those were the people she liked to work with. to ask her now whether it's staying in georgia or to come to washington to take on this broad mandate of solving all of the -- correcting all of the past wrongs is a very tall order. >> i think this is a good story because two things come out of approximate. once again, it brings the race discussion to the table and it brings the media knee-jerk reaction to the table. she is going to be better than ever. no harm, no foul. they said we screwed up and bill o'rooil i didn't o'reilly even said i screwed up. >> i can't imagine how horrifying that day would have been for her driving her consider. >> hee is a hero now. she exists in our conscience and in a position to do things. i think the stories we get off track but the net out of this is a good thing. >> i'm going to go where it probably is not safe for me to go but i do -- i do hear rumblings and personal connection of this to an extent. this is a woman with a real legitimate background of having a commitment to the issue of race and wanting to open doors for women and african-americans in her life's work, fair? fair. of good people thrown under the bus by this white house. good people who are legitimate, credible people with something not only to offer, but something that they have offered thrown under the bus. >> in this case you're talking about? >> no, in general by this white house. >> doesn't every white house do that? >> i don't know. >> the tentacles are so far. >> stan mccrystal we could even argue? >> interesting. okay. i just -- it seems to me such -- >> layered with the top -- you know, president obama is not going to step down over there. vilsack -- this is the job. >> by the way, will vilsack be able to get through this, mark, do you think? what your gut on it? >> you got a sense of his press conference of somebody seeing his political future sort of crash before his eyes. the great irony is that although he has had a fairly low profile in washington he was considered one of the more effective cabinet officers, partly because he had been an executive. he had actually been a governor and this administration is a little white on people with executive experience. >> a little light, did you say? >> he screwed up. once again, should he lose his job over this? >> he did not have complete information. i mean, you can say it was a mistake but it wasn't bat intent. so i don't think he should lose his job. >> he may also be taking the bullet for this because, look. one still unrevolved question is was there any white house pressure? now,, obviously, he is willing to go out there and say that there wasn't. but i think it's still a little suspicious that they went so quickly from administrative leave, which would have been the kind of logical agriculture department kind of response to this, and you have to pull off the side of the road and submit your resignation right now. that smacks a political pressure and it's hard to imagine. >> and hysteria. >> hard to imagine that coming out of the department of agriculture than the white house. it may have been a young staffer who got ahid of ahead of himself or herself. it's still a little suspicious. >> donnie, this is all about race at the center of this. we talked about having a post racial society with an african-american president but mr. vilsack said in a press conference himself a couple of days ago we had all of these discriminations suits over the last 18 months against us. we had to come out and show we were even handed, that we were consistent and wouldn't tolerate racial discrimination at all. miss sherrod told us here yesterday that they had access to the full clip and they didn't want to see it. that is coming from shirley sherrod. >> this administration doesn't want to get caught up in racial issues and stay away from that. >> this is a good example how it's such a hysterical reaction. >> i still find it stunning that we talk about in the earlier hour that race relations as far as from blacks and whites post the election of barack obama are worse than ever. you would think that would be the opposite. it's interesting. >> i don't know if they are worse than ever. >> no. each one going up 7% or 9% i forget which is white or black how they think race is a problem in this country. it has gone up. >> you mean in the public polling? >> yes. >> another poll. new gallup poll. it ranks congress dead last. out of 16 institutions when it comes to confidence, only 11% of americans say they have a great deal or quite a lot of confidence in this congress. 11%. i can barely get my eyes to believe that number. it is so low. that number is down from 17% last year. confidence in the military, 76%. >> what about the presidency? >> and tv news at 22%. >> the president is only 34%. that is astounding. >> years ago we didn't see our congress work. this network and the other networks we are seeing how the sausage gets made. i think that is a function not only as a society right now but they got kevered and not used to get covered. >> isn't there a sense now, more than ever? i don't know where the competing voices stand in this equation where it seems everybody is attacking everybody else and nothing is really getting done and people are seeing their country kind of decay. >> actually, i think it's more of the polarization and the atmosphere than not getting things done, because democrats would argue that they are getting things done. >> yes, exactly. >> those things aren't necessarily popular with a big part of the population but they got a stimulus bill and health care bill passed and financial regulation bill passes so things with getting done but the country is still very divided over those policies, plus they just hate the atmosphere. they hate the name-calling and hate this kind of constant food fight. >> and speaking of the atmosphere and perhaps maybe one other reason why these numbers are where they are, take a look at this next piece of video. house investigative committee has dealt a serious blow to charlie rangel charging him with multiple ethical violations. details of the charges against rangel are specked expected to be revealed next week but sources say he has racked up failing to report rental beachfront property in the dominican republic. he took out his frugss with luke russert who asked rangel if he is afraid of losing his job. >> what are you talking about? you just trying to make -- what job? the one i got? >> yes. >> how do you think i got my job? i was elected, right? how do you think -- >> two ways. you could lose it by your colleagues voted you out of here because of ethics violations or your constituents -- >> what constituents? >> nbc. msnbc. >> you're young. i guess you do need to make a name for yourself. basically, you know it's a dumb question. >> how is it a dumb question? sir -- sir -- you did not file taxes on properties in the dominican republic allegedly.ñrr if that is supposed to be true, is that not a problem? >> that don't sound like msnbc asking these dumb questions, but it just shows what is really happened to a channel that did have some respect. >> hey, mark whittaker, i'm just wondering. in terms of different politicians that we've seen along the way and their approach to the media, where does rudeness and arrogance stand in trying to change a message? >> it's really did interesting. rangel became a congressman by running against adam clayton powell 40 years ago. who is someone who basically thought that he had a kind of born right to be congressman for life. and that is what rangel ran against. to some ye that is what he has become. i think he can't believe that someone would ask whether he could possibly lose his job. >> isn't that is what is wrong? talking about congress' approval rating. seriously. you can't even ask a question? >> i think it was the root of some of the things he was charged with. he thought why not? i should have a right to all of these rent stabilized apartments. i shouldn't necessarily have to pay taxes. >> all of these stories were a part of the local press. this may be new in washington or relatively new in washington but they've been all over the new york press and it has not affected his standing and his constituency at all. from their point of view he has delivered the goods whatever the goods are that a congressman gets as chairman of the ways and means committee. >> you can do whatever you want. >> i'm not saying that but he turned out to be that way and there's a whole pattern of this background that really makes him so vulnerable now. >> when you're elected with 88 or 90% of the vote every time you run, not much to worry about frankly. >> of course, you will feel intilted he is 80. he is like some young whipper snapper, i don't have to answer to you and obviously, that is ridiculous but that's the reality. it makes sense if you think about it but it's wrong. it almost makes sense. >> he it before with another journalist so this is not new to him and it actually worked the last time because it blew everybody away. >> it's a classic washington game of playing the messenger. >> i don't think classic washington, if we look at these approval ratings works any more. >> we showed it with our other producer betly klein in october. >> makes it an interesting story. a visible young reporter, tim's son. >> getting back to congressional approval ratings. what it means now this gives republicans a way to talk about ethics and remember that nancy pelosi said she was going to clean the swamp. the democrats would get rid of all of these ethics problems and now it becomes an issue for midterm election. >> you said is it right there. how is charlie rangel so above everything and gotten to the point he is so clueless, i'm sorry, he has no idea this would be given the republicans great ammunition? no idea of behaving this way. >> i think he has been doing it a long time and i think a mentality along these congress people, you know, particularly the ones who have been in washington for a long time, they see other people leaving government and making lots of money, becoming lobbyists and so forth. they figure, well, why shouldn't i have -- >> then go. leave, actually. >> that is the culture. >> yeah. >> do you think strom thurmond at the end of his term if he got those kind of questions? >> i have a strom thurmond story for you. >> a good tease? >> i'm not sure i can say it on the air, though. >> i'm not getting any behavior but it's understandable. wrong, but it makes sense. it's wrong. >> who is this kid? >> no, it's a good question. >> i'm not defending him. >> chuck todd has this morning's developing headlines live from the white house. also preview of "meet the press" with moderator david gregory. first, we are keeping a close watch on the tropical storm threatening the gulf. let's go to bill karins with the late e-item right now it's threatening south florida and about to move on shore in south florida. miami rain and gusty wind the next half hour or spoke. a quickly moving system and not strong and will not do any destruction or devastation. problem with rain and gusty winds. winds right now 25 miles per hour in ft. lauderdale and not gusting in miami yet. how does that forecast look for this storm in we take it across florida today and then bring it out into the gulf. normally we would be scared because the water in the gulf is warm and storms can strengthen rapidly. not this one. this will stay relatively weak and barely a tropical storm if that and maybe a tropical depression and over the oil spill tomorrow night. it's not going to have significant impacts on any land areas. if it wasn't for the oil spill we wouldn't be paying much attention to the storm at all. heavy rain and florida flooding iowa towards chicago and milwaukee. watch it closely if you're traveling through there. the story that won't end the heat wave. washington, d.c. 98 today and tomorrow 101. new york city 99 degrees. record highs. dangerous heat continues even into sunday. mid-atlantic through the deep south. we got the heat, tropics and even flash flooding and a little bit of everything on your friday. you're watching "morning joe," brewed by starbucks. ♪ move over, mr. ice cream man. mr. rollback is here. summer ain't summer without popsicle pops. ben & jerry: my two best friends. what would i do for a klondike bar? you don't wanna know. i am so happy right now. ♪ just so happy. [ male announcer ] we all need people who will be there for us in life. people who say, "we're with you, no matter what." at wachovia and wells fargo, we're with you, when a house turns into a home... ...when a passion becomes a career... ♪ ...when a relationship turns into a lifetime... and when all the hard work finally pays off. we're with you when you need someone to stand by you. wachovia, wells fargo, and you. together we'll go far. ♪ i'm not up here to lecture or scold because i'm -- nobody that has been involved in this situation from the administration's perspective, as i said, isn't thinking about what has happened. not only is it do we live in this crazy reality tv culture, right? yes, i think that's part of it, but i also think it was undoubtedly sparked by the fact that it -- it's a discussion about race. >> it is. that was white house press secretary robert gibbs weighing in out how the forced res significance resignation of shirley sherrod escalated. from the white house is chuck todd and also joining us is david gregory. chuck, let me start with you in terms of anything new coming out of the white house on this. where does the story go next? >> the last sort of shoe is whether shirley sherrod will take this job. we don't know. i think the white house wishes that yesterday was the last word. the president finally talking about it on camera for the first time. you have that. i'm sure she would have loved the bow to have been tied last night with shirley sherrod saying i'll take this job and see you monday and move on. this has been a month of distract for this white house. on the one hand made a big plan to make a big turn on the economy and, on the other hand, different issues popped up and consume them. oil spill, general mcchrystal and this one. they had two major bills they signed this week and never mind the elena kagan news and everything has been about shirley sherrod. >> david gregory, big picture looking at this even historically in terms of other white houses and bungling of issues. just where does this leave the white house as they are trying to plow through their goals, of which mark whittaker pointed out, they have accomplished many. >> right. and financial reform, health care reform and the state of this economy are going to outlast the sherrod issue for sure. because those are sustained, enduring challenges for the president and accomplishments that will go forward, that will be debated. i think what is striking about this week is that the president, before he became president, made a comment during an interview that 90% of what happens is the unexpected in a presidency and this is certainly part of that. and i think to look at this constructively, you have to observe that both the media culture and the administration itself acted with such speed and haste in firing sherrod and bringing it to everyone's attention, they also acted very quickly once they saw what it really was to then step back, acknowledge a mistake, the president himself calling her and aapologizing and asking her to come back. everything. just in the news business and the inside talk that we use, the news cycle has become so compressed on this, it's really striking. the bigger point for everyone, the president back in 2008 during the campaign, he talked about race in that famous speech as really deserving a lot of context, that you have to try to understand what people are coming from generationally. you can't just look at this in a very narrow way. and, yet, of course, that's exactly how this was looked at when sherrod was talking about a story of her own transformation. that is a constructive discussion about race. it's not what happened here. >> david, it's donnie. chuck, i would love your response to this also. it's so interesting i believe we've come to a culture there is 5 million viewers or people who care about this stuff where it sticks and 300 million where it's a complete nonevent. this has consumed the media the last two days. this doesn't matter for anybody looking for a job. it's irrelevant. >> donnie, i think it's an important point and i think we have to recognize something. that a lot of the debates about policy and about politics in this country, a lot of it happens on the extremes. may not affect the vast center. however extreme our politics become, the political center is still a real thing and may not be in washington but it certainly is in the electorate and can see that based on our polling. look at the rush towards independents among voters in this election cycle. what is also true the connective tissue on both the left and the right is stronger than it's ever been before. and so people have a way to connect to one another with those views and put stories like this on the agenda. issues like this on the agenda in a more prominent way than they were before. in some cases, that's a good thing because the vast middle, the majority of the mainstream media miss things, but in other cases, things are not as important goat amplified in a way that they shouldn't. >> i just want to say i really believe this is a week that i hate the fact that we're trying to have a discussion about race, because this was not a story about race. it was a story about the media and the minute mint -- manipulation of the media. i think right now there is, in a weird way, more of a crisis in the media trying to figure out where it is, what it is, how it operates in the future. we're actually in a pretty good place on race as a society. are there still issues in this country? of course. but i do wonder are we going to make a mistake here and take the wrong lesson from this, which is to try to have this large conversation about race, which the country is in a better place on, frankly, than maybe washington is. >> mort, this is something we talked about yesterday. mike barnicle said he found this depressing as an old newspaper guy somebody came with a tape and nobody said where did it come from, let me see it. >> the problem with the tape is pieces of it can be isolated which is what happened here. it goes to show you how vulnerable we are to all of that. in a way i feel for the media, too. things moving so fast. you get something and react to it and that's a huge problem as we go forward. the media gets the credibility the media gets undermined by this. >> i don't completely agree with that. i don't. i think that -- i mean chuck's point is made and well taken but there is something about race that becomes far more emotional and more completely charged than almost anything else and can be used by certain people in the country to manipulate and distort. that is the rejukion of race make people act more hastily than they would otherwise. >> david, do you think more fallout, perhaps a resignation, a real one this time? >> i think there could be within the agriculture department and whoever worked for vilsack at usda who initially made this call may be held accountable. don't forget the other big story was the ineptitude that somebody would have made a judgment like this so hastily. those within the media who should be taken to task to that as well. we should be held accountable but so should somebody who made a decisive point of that based on what came to light without looking at the full context. >> absolutely correct. david gregory, thanks. catch chuck todd on "the daily rundown" on msnbc at 9:00 a.m. david, we will see you on sunday on "meet the press." your guest is tim geithner. >> we can't forget the economy after this week as well. >> thank you both so much. when we come back, can charlie rangel survive a what could be the fight of his career? i don't think he sees it as his fight of the career but we will ask the question to nbc's kelly o'donnell next. ♪ don't come around here no more give it up stop ♪ ♪ give it up stop ♪ listen up, people, volkswagen is at it again with their autobahn for all event. it ends soon. they got great prices. cars built for the autobahn. people are gonna be driving crazy in the jetta... ...the routan, and the cc. that cc is gorgeous. that jetta is awesome. my wife loves her new routan. and they all come with that carefree maintenance. scheduled maintenance included. we're not shopping for cars here, people. c'mon! well, i am now. that's kind of exciting. [ male announcer ] right now, get 0% apr on 2010 models, excluding tdi. or get a great price on a certified pre-owned volkswagen. tdd# 1-800-345-2550 no more $2, $3 fees. tdd# 1-800-345-2550 no more paying to access your own money. tdd# 1-800-345-2550 it'd be like every atm in the world tdd# 1-800-345-2550 was your atm. tdd# 1-800-345-2550 the schwab bank high yield investor checking(tm) account. tdd# 1-800-345-2550 zero atm fees. tdd# 1-800-345-2550 a great interest rate. tdd# 1-800-345-2550 no minimums. d# 1-800-345-2550 d it's ic-insured. tdd# 1-800-345-2550 e schwab bank high yield vestor checking(tm) account. tdd# 1-800-345-2550 the biggest thing in checking since checks. tdd# 1-800-345-2550 open an account at 1-800-4schwab or schwab.com. ♪ live shot of washington, d.c. the sun is up over the white house. 33 past the hour. after nearly two years of investigation the house ethics committee dealt a serious blow to new york representative charles rangel charging the 80-year-old congressman with multiple ethics violations. nbc news capitol hill hail correspondent kelly o'donnell joins us on the latest on the investigation that rangel asked for this, kelly. any regrets? >> well, from charlie rangel's point of view what he is saying in the moment he wants to get this cloud that's been over him for two years put behind him and he was really back then trying to get ahead of a lot of allegations and scandal saying, committee, take a look hoping to have his name cleared. that is not terribly nub here but it's a lot of attention on rangel. he is the fourth most senior member of the house and that is a very big deal here. he is a very close ally of speaker pelosi. and he is in serious trouble. the house ethics committee report is like congress' version of an indictment. they've looked at the evidence and they say charlie rangel broke the rules. >> reporter: that booming voice and big personality. >> after we whipped them like they are going to be whooped, in november! >> reporter: harlem's charlie rangel has wielded influence here for almost 40 years. >> at long last, the ethics committee has completed its investigation at my request. >> reporter: be careful what you wish for. rangel did ask and after two years of investigation, the highly secretive ethics committee found multiple violations but will not reveal the specific charges until a hearing next week. >> it gives me an opportunity to respond to my friends and constituents who have been supporting me for close to 40 year. s. >> reporter: apping unfazed he showed up celebrating unemployment benefits. he rebuffed the notion his seat is at risk in an exchange with nbc's luke russert. >> are you afraid of losing your job? >> what are you talking about? what job? the one i got? >> yeah. >> how do you think i got my job? i was elected. how do you think i would lose it. >> reporter: the 80-year-old rangel repeatedly ridiculed the question. >> you're young. i guess you do need to make a name for yourself but basically you know it's a dumb question. >> reporter: back in march, rangel was forced to step as powerful chair of the tax writing ways and means committee for a gift rule violation. the ethics committee has examined a series of allegations including trading legislative favors for a $1 million oil company donation to an academic center named for rangel. accepting special deals for lower rent on four new york city apartments. and while he wrote tax follow is accuse of of failure to pay his own taxes on rental income from this vacation villa in the caribbean. the "new york post" ran this photo of rangel vacationing. >> it looks as if the rules didn't apply to mr. rangel but it's got to be more than minor infractions for the committee to announce this public hearing. >> a public hearing like this hasn't happened since back in 2002. so it's really unusual. and if the report is sort of like an indictment then the hearing is really a trial. a new group of democrats and republicans will look at all of the evidence out in public and we'll all get to see it and then if they decide there are violations, the punishment could be as serious as something like sens censure or even expulsion from congress. charlie rangel is trying to run for a 21st term in congress, his primary in new york, as you know, is september 14th. so he hoping this could be cleared up from them. he is trying to keep a bit of a smile. what happens if charlie rangel or anybody wants to call me junk young and make a name for myself, i might not be too bothered with that. >> look at you asking questions! how dare you! he will be fine in his district, won't he? >> harlem. >> because now they have to protect him. i mentioned this earlier that candidates who are running with controversies right now are raising the most money. their backers are more great on getting back behind them. >> chris is testy today in the booth. >> kelly, thank you. >> it's a bill designed to keep the government from paying benefits to prisoners, fugitives and dead people. that's a good one. we'll talk to the congressman who helped pass it, patrick murphy, next on "morning joe." ♪ i just told him, do your best. build a car you're proud of. ♪ of course, winning's not bad either. the subaru forester. the most award-winning small suv. isn't it nice when honest virtues win ? imagine that kind of vitality... -- in your skin. [ female announcer ] new from aveeno: ageless vitality. bio-minerals and active naturals formulas for improved firmness, texture, wrinkles and spots. new ageless vitality. save $20 at aveeno.com. new ageless vitality. discover customers are getting 5% cashback bonus at the pump... and at many of the places their summer plans take them. it pays to get more. it pays to discover. ♪ we've begun an unprecedented effort to put an end to a problem known as improper payments. which is the purpose of the bill that i'm signing into law today. now, these are payments sent by the government to the wrong person or for the wrong reason, or in the wrong amount. payments to a defense contractor that's been disbarred for shoddy work, but somehow managed to get through the system. payments to companies that haven't paid their taxes. or for folks who are incarcerated or o are dead. >> president obama talking about the almost 110 billion dollars in wasted government funds wade paid out last year as he signs a new bill in law that looks to stop wasteful spending. joining us from chill is democratic patrick murphy from pennsylvania and influential in getting that bill passed. i think this comes to a surprise to a lot of americans tuning in this morning that much money was paid out to dead people among others. explain what is going on here. >> i've been here for a second term, three years now. it wasn't a surprise to me when i read the audits from the government office, et cetera. what was going on, a team there, at the hurricane katrina, hud came in and provided housing vouchers. the problem is people were committing fraud and would get the names and social security numbers of prisoners that are in jail and fill out these housing vouchers and got paid. you know, it was $55 billion, then it was up to $98. per year and this past year, it was $110 billion. it has to stop! what my bill which was a bipartisan bill i worked with john mccain on and brian vertebrae on, what we worked on is this bill to make sure that we identify where this waste is going on to stop it from happening permanently and recover the money so we put it back into the taxpayers treasury. >> good for you. donnie deutch, not talking about pocket change here. $110 billion. >> great effort, congressman, great bill. let me liken this to the financial reform bill that my theory it's great and it stops what happened but that greed will always go outside the boundaries. how does this protect us from the next scam so to speak? whether it's money going to dead people or whatever it is. you solve the problem in the past but it continues to happen. >> it's a perfect question. what we need to do is hold federal agencies that far too long here in washington they just went along to get along to go along. what we need to do is hold them to a higher level of fiscal responsibility. it's the same thing. my family sat around the kitchen table in bucks county, donnie. if they got double billed for groceries or car payments, they would be mad as heck and they would make sure they got mayor money back and make sure that never happens again. the federal government needs to act in a similar situation as the american family. how it works, donnie, is now federal agencies, every single one, mandates audits and accounting programs that they have to go after this money. prior to this bill, prior to this bill becoming law, if it was over $500 million per year it would mandate an audit. we lowered the standards saying if there is money we're losing, get after it and go after the money that was improperly sent out so it doesn't happen again and if there was fraud committed, let's start prosecuting these people and putting them in jail where they belong. >> that's good. >> congressman, americans are worried about the deficit and the debt right now. every time we talk about that issue, there's a suggestion that somehow if we tackled waste an abuse that would make a huge difference. is this a low hanging fruit or do you think that this could make a meaningful dent in the deficit problem? >> i think it's a great part of the program. this isn't the only solution and i'm not acting like it's the only solution, but we have to chip away at this. listen as luke russert, i'm a young guy trying to make a name for smooilve. >> what are you talking about? that's a dumb question! what are you trying to do? >> how old are you? >> get out of here! >> chip away! >> but i'm a blue dog democrat. us young guys, like others up in new york. >> whipper snapper. >> have been in here and we're saying, listen, let's pay statutory and make it now that we have to pay as you go. that's moving forward but moving back to recoup the money in the past is my bill and a lot of other things we have to be doing. but let's take a breath and say, listen, this is a good thing and this will help us chip away at it. >> i have to disagree with you. chip away? it's $110 billion. it's a big chip. astounding that the numbers are that high and nobody has done anything about it for several years. >> mort, it's about half of what you're worth. >> this is the problem with washington. this isn't a sexy thing. people want to talk about, you know, inadvertent comments and other things but this is sexy to the american family and -- >> i'll say. >> -- i'm getting taxed too much and this is not right. we need to earn our trust. let me tell you something. brian is a conservative republican from san diego. i've been partnering with him on this since 2007 when i j you got sworn it nand i found out this was going on. it took us this long to get there. this is a first step and we have a lot more things we are working on we will get done on the american taxpayer. >> this guy, i like his style. i like what he says. i like he threw in i work with a conservative guy. this is a future guy. watch this guy. that's my marketing hat on, congressman. >> you are looking to make a name for yourself, you just did it. >> mika made a big deal when i was 1987 alter boy of the year last time i was on! >> he threw that in also! you have a future, my friend. >> oh, my gosh. no, he is all right. he's cute. he's adorable. >> we will watch this guy the next 20 years. i pick him. >> really? you picked him, donnie. >> i appreciate that. >> i'm not sure if that was good news or bad news. >> i'm watching you. >> i have an election in three months. >> oh, really? i'll at the. >> tell you what you have had to do for an endorsement. we have a fun ruan -- run in the middle of september. out there with your colleagues with democrats and republicans and i want you to win or at least one several miles hard. >> when i was a paratrooper in the 82nd airborne division -- >> look at him! >> i was in iraq a couple of years but i'll still work, mika. >> okay. we'll see how you do. >> you haven't run against mummy before so i know it sounds like you've done a lot. you just wait. >> he always gets a few points out! not a sentence goes by without finding something else about him! >> you can turn off the winning smile now. thank you, congressman. fdic chairman sheila bair will be here coming up. first our next guest is bret easton ellis is back with a new novel next on moj. i like the sweatshirt. it's a good look. ♪ . son: man, this is perfect. blue shirt: great. well, with every laptop, you get a geek so... take your pick. mom: look at all these fabulous geeks! there are so many! look at this one! it helps you video chat with mom! son: bingo! mom: look at this one. you can video chat with me, honey. son: mom, go get the car. mom: he's in such a hurry to learn. vo: buy any laptop and get geek squad support for six months. online. on the phone, or in-store. hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver? yes. discount! do you own a home? yes. discount! are you going to buy online? yes! discount! isn't getting discounts great? yes! there's no discount for agreeing with me. yeah, i got carried away. happens to me all the time. helping you save money -- now, that's progressive. call or click today. you can do this... get the ball. get the ball, girl. hmmm, you can't do that. but you can do this. it's the simple things. new scientifically formulated bengay pain relief + massage with penetrating nubs gives you the targeted relief of a massage plus the powerful, long-lasting pain relief of bengay. bengay pain relief + massage. visit bengay.com/relief for a $3.00 coupon. love the nubs! just help me. i mean, can't you tell when i'm telling the truth? >> nope. trust was the first thing you ruined. >> that was robert downey jr. in the 1980s classic "less than zero" based on the book by bret easton ellis. now out with "emperial bedrooms." 21 years old when it was published. >> i was. i was at a -- the college i went to, you could take a writing -- a novel writing tutorial and i was -- i had been working on a draft of "less than zero" for a long time. i was 16 and teenager in los angeles and i completed the draft of this novel when i was, i guess, 20 and my teacher who was joe mcginnis, the journalist, sent it to his publicist and agent and he sent it to them. they liked it an published it and when i was 21 a year later. >> what happened to your life after that? >> my life became very different then. the life that i thought i was going to have. no. it became a successful novel but it did take a long time. the publishing house wasn't behind the book. the publishing house -- part of it old school. part -- the young editors, they really liked it an connected with the book and pushed it through and other editors said if we publish a book like this, publishing is over. i can't repeat the famous line an audience for blank sucking vampires, let's publish the damn thing. but they did. and they bought it for very little money. no money for advertising whatsoever. and it was a word of mouth book. it didn't land on a bestseller list until october. which is, you know, that's a listening time ago. that just wouldn't happen now. >> your new book pretty much picks up 20 years later, 25 years later. >> yes. >> the vices we suffer but not from a 21-year-old point of view. >> oh dear. >> this is your -- >> can't be pretty. >> why do you stick with the theme. >> i want to correct you. it's 46. not 48. >> big difference. >> it is. >> tools of every year catch. >> the demons are the same. >> yes, that's true. it is true. in "less than zero" the boy drifting from party to party and dealing with whatever 19-year-olds deal with, that kind of sense of alienation changed into something else. he's a screen writer. writes big action movies and appetites and got a cycle of using whatever power he has as a writer and producer to try to get young actresses into -- >> oh, i see. >> casting couch all over again. >> misusing power. >> oh, yes. >> for sex. >> never happens in hollywood. >> no. doesn't happen in tv news either. >> or the corporate world. >> no. wall street, no. >> shocking. >> didn't happen in life. >> doesn't even happen in life. >> is sex the ultimate -- >> oh, donnie. if you play it out, is that why people do what they do at the end of the day? >> please. >> break it down to -- >> isn't that the main motivating factor for everybody? >> i believe it. >> above money. >> sex? >> the money is the means -- >> i believe at the end goal -- >> my god. >> not being a wise guy now. the reason people want money and power -- >> chris, what was that e-mail about donnie? >> serious. >> serious. >> this is a fact. it's a neutral fact. i don't think it's bad or good. it just is. >> you really disagree with what i'm saying? >> i do. >> also true of women? >> i think men may be driven by that. and certain men and certain men actually have more diverse interests. >> don't look at me. >> the graphic. >> eyebrow on that one. >> been chronicles of who we are as a society. >> right. >> that's what my buddies say. >> i wouldn't say this but a friend of mine asked me this. >> of course. another famous work, "american psycho." people read the book and saw the pretty crazy movie. what is it about the characters, robert downey jr. or christian bale, the pathological guys? >> i don't know. i base them on myself. >> oh my god. >> that's why i've only felt comfortable admitting. that's my grand sweeping indictment on wall street culture. the genesis of patrick bateman started from me. i was that kind of guy living that yuppy life style. i was the same age and thought the same things he wanted, the gadgets, the clothing, the girls, the nightclubs. that was going to fill the void i was going through at the time. the exostential void of becoming an adult and moving from the world of adolescence to adulthood and about my dissatisfaction with that and where he grew from. and as you create a novel, it is more about just you. >> you didn't have a thirst for blood. >> not saying that. but i am not a -- i do not go as far in the thirst -- >> clear that up. so great to meet you. been a big fan of your books. i'm sure it will be a big fan. "imperial bedrooms." thank you for being here. mort, thank you, as well. >> go home and take a bath in money. >> an exchange with charlie rangel yesterday. we'll be right back. move over, mr. ice cream man. mr. rollback is here. summer ain't summer without popsicle pops. ben & jerry: my two best friends. what would i do for a klondike bar? you don't wanna know. i am so happy right now. ♪ just so happy. with their autobahn for all event. it ends soon. they got great prices. cars built for the autobahn. people are gonna be driving crazy in the jetta... ...the routan, and the cc. that cc is gorgeous. that jetta is awesome. my wife loves her new routan. and they all come with that carefree maintenance. scheduled maintenance included. we're not shopping for cars here, people. c'mon! well, i am now. that's kind of exciting. [ male announcer ] right now, get 0% apr on 2010 models, excluding tdi. or get a great price on a certified pre-owned volkswagen. introducing total plus omega-3 honey almond flax cereal. all the nutrition of total, plus 10% daily value omega-3 ala, and a delicious honey almond crunch. new total plus omega-3. and at holiday inn express, you always can. holiday inn express. stay you. and stay rewarded with the hit it big promotion-- earn up to $500 dollars at over 300 retailers. what are you talking about? are you just trying to make copy? how do you think i got my job? i was elected. how do you think i lose? >> there's two ways. by your colleagues with ethic by violations -- >> what station -- >> msnbc. >> doesn't sound like nbc asking these dumb questions. it just shows what is really happened to a channel that did have some respect. >> okay. welcome back to "morning joe." top of the hour. i'm mika brzezinski. joe's off. but we have willie. sweet thing. and of course mark whitaker. donnie deutsch is here and also with that us, whipper snapper -- seriously, what were you thinking? congressional correspondent luke russert. luke, good morning. >> good morning, mika. how are you? good morning to the panel. >> trying to find you, call you. >> i know. i'm sorry. 6:10 in the morning. i'm like every other american waiting for the alarm clock to go off. >> no, not in this busy. no, luke. so i want to split the screen between luke and carl bernstein. carl -- >> most distant second on that list. >> yes, yes. that's true. carl, did that ever happen to you? and how did luke do? >> occasionally the door slams. luke did really fine and did really fine on this story. and it's also important, i think, to keep in mind that the rangel story is really a sideshow about the larger institutional corruption of the congress of the united states. >> absolutely. >> and let's not take our eye off the real story which is an institution which hasn't dealt with the needs of the country for 30 years. >> i want everyone else to join in but first luke. when he was treating you that way. you're a young kid starting out compared to where he stands. but your reaction was interesting to me because you were stone faced because it seemed to me to be and it seemed to me that you thought it was a legitimate question. i mean, what -- >> no. i think it is an absolute legislate emptimate question. if you are the subject of a two-year ethics investigation by your colleagues and it's serious enough you go to a public trial next week, the last of which happened in 2002 with mr. traficant in ohio who had to leave congress because of it. i believe mr. rangel thinking he's been in congress since 19670 thought that he is -- his job safe afor years and years t go. we were especially surprised that mr. rangel is even in that room. he was in a signing ceremony for the unemployment extension bill. the one that was so much talked about this week up on capitol hill and very contentious for the white house and house democrats and here he is, everybody's coming down on him. rumors in the morning and standing next to nancy pelosi and about to be pounced on by the press corps. it was like christmas in july. let's say hello. i would have thought he would have been hiding in a bunker not wanting to expose himself to serious, honest questions about his future and whether or not the ethics violations were legitimate towards him. quite interesting he was allowed to be there. >> luke, along those lines, you said stone face. i saw a twinkle in your eye and love to hear you and then carl when you know it's happening as a journalist and you see it, what were you feeling at that moment? you see the wheels coming off. you were not stone faced. there was a subtle little smirk going on there. >> i was just very much surprised that two years after the investigation started, when it was obvious to everybody that the hammer was coming down, meaning that this was actually going to go to trial that he was defending himself in a way and not taking any responsibility, and the thing that amazed me is usually in washington there's a routine. quick no comment and let the facts play out. i'll talk about this next week. cross that bridge when we get there. rangel defended himself and presumed innocence when he is charged by colleagues of peers after a two-year investigation and twinging l in my eye, a sense of an irony, oh my gosh, is this happening? >> luke, let's talk less about the way you were treated in the exchange and how much trouble is charlie rangel in right now? >> didn't he ask for this to be looked into? >> quite significant. the reason being is there are a whole bevy of allegations against him. keep in mind, the only one that he's got anna nicole trouble for is taking a corporate-funded cruise to caribbean and caused him to lose the gavel of the ways and means committee. he has four departments in harlem. supposed to have one as a primary residence. used officially stationary allegedly for money at a school named after him at the city college of new york and did not report hundreds of thousands of dollars of income and that million dollar thing that was talked about with the oil company for money for his school and plethora of allegations against him. not just one thing. when you have that many against you and your colleagues after a two-year investigation who are trying to make a deal with you, past few weeks trying to say, hey, let's not get this far and let's try to allow yourself to have a graceful exit if you will, grace here and apl apologize and you're still fighting against that, that's really amazing. it really is. >> carl bernstein? >> i think that -- and this is not to cast any aspersions on anyone in the press corps but i think at moments like this it is important for us as reporters to be humble about this stuff and to back off a little and let's look at the facts and not read about twinkles in eyes. et cetera. charlie rangel has clearly been charged with something that's serious and luke just dealt with the facts of misuse of properties, et cetera. that's what the focus needs to be on. as well as not the sideshow but the larger institutional corruption in which the city of washington and former members of congress are awash as mark whitaker pointed out earlier this morning in a sea of money. this is the biggest money town in america. more than wall street in some ways. the highest per capita income of any metropolitan area in the country largely because of of former members of congress cashing in. that's partly what these allegations are about. it is about a queenly, kingly attitude toward being a member of congress. and that seems to me is the focus. >> let's put up the approval numbers that we were talking about earlier. >> 11%. >> exactly, luke. 11% is where congress stands on this list behind big business, tv news, church and the military. 11%, mark whitaker. how can we not make the parallels that carl bernstein so eloquently did? >> clearly, i think the american people are fed up with all of us. media, political class and so far. luke, i want to get back to the politics of these. we know these are serious charges. it seems unlikely that his congressional district is going to turn him out. he still has unbelievably high popularity. it also seems unlike as long as the democrats control the congress and nancy pelosi, great ally in charge, they go as far as expulsion but what's the chance it drags on, a trial, past the fall into a new congress which might well be controlled by the republicans? do you think at that point or do you think that pelosi will try to get this resolved before the republicans have a chance to -- >> democrats i have spoken to almost to a man and woman said she has to get it resolved. the last thing you want, if you're a democrat, is the former chairman in the house ways and means committee, the guy in charge of writing the nation's taxes, being on trial for allegedly not paying his own taxes. how does that look for the democratic party in the midterm election year going into november. here's one of the most senior members on trial for not paying taxes. >> thank you. >> republicans jump on that saying, look, democrats not only want to raise their taxes but the chief tax-writing guy doesn't want to pay his own. they cannot allow that to play out in public. it would be a huge, huge, huge damaging blow to them and rest assured conversations going on right now within the democratic caucus saying we understand he's been here forever and has friends but cannot play out because of what it does to the vulnerable members in november. >> where is that? where is that outrage within the party? where has it been? we have talked about this. has it been there, carl? >> for sound bites. >> for sound bites. >> but no. there's no internal outrage in congress about anything that's not seen through an ideological lens. that's where the outrage is. there's no institutional outrage about either the individual conduct of members or the institutional conduct of the membership at large. that's what that 12% figure is about. people in america perceive it. they might not quite know how to drill down enough the way an insider like luke or myself do but they got it. they're smart enough to know they're rolled by the people of the institution. >> one thing that's more powerful -- >> reelection. >> and survival. >> that's right. >> the thing operating against rangel are democrats. >> yeah. >> who worry this will hurt their chances of survival. >> nancy pelosi, his great friend -- >> if i'm a fresh democrat from a fairly conservative district, i would be calling, blowing up steny hoyer's office and pelosi's office and saying please, dear lord, do not let this play out. how will that look to my constituents? it will be very, very difficult to let it play out. >> the democrats -- luke, you bring up a great point. they're in this situation because they did not do this when this came out and for months and months and months. and now -- >> mika -- in '06, remember, folks will have to say, nancy pelosi said she would drain the swamp. looks like the swamp is very much alive. >> very much alive. >> an investigation. >> they conducted an investigation and now the charges are there and i'd be very surprised -- luke, you can tell me, if there aren't serious negotiations going on. >> now oh, no. oh, now. are you kidding me? the fact that this didn't happen long ago because of the power he has over people in congress. it is pathetic. >> members of congress don't resign when charges are thrown at them. they resign when they move along -- >> absolutely. >> -- to this point and whether charlie rangel resigns or not is not an issue or thing. you know, i think he is going to look for as graceful a way out as possible. which does not seem very possible. >> the interview with luke tells you everything you need to know about rangel. the colleagues, those that stood and watched this all and never said, wow, this is wrong. we can't have this. >> tell me a time when members of congress have said before a report comes out about a colleague this is wrong. it hasn't happened. >> and that's -- >> i 'm born and raised in that town. >> 11%. >> with that happening -- by the way, with any situation, if it's a wall street investment bank, an advertiser, people don't throw each other under the bus until they have no choice. >> seriously -- >> you forgot hmos. congress is lower than hmos which i didn't think is possible. >> where's lindsay lohan? >> at the top. that's the problem. >> people love her! that will work. >> brit was talking about an o exostential void. >> luke, thank you. >> always a pleasure. have a good day. >> all right. we'll talk to you soon. why did sharon angle, the republican senate candidate in utah invite her at a press conference. usually you ask questions. wait. >> that's exactly right. she's going to ask them. >> that story's next. also, the head of the fdic sheila bair will be here and later we'll low the bar a little bit to recap the memorable week in news gathering. you will love the lady throwing the plants. here's bill karins. >> good morning, everyone. typically about to tell you a tropical storm landfall in south florida. you would say pretty nasty and bad weather. not the case. we are watching just rain and squalls going through with some gusty winds. temperatures are not too bad and actually cooler than normal with the clouds and rain and this picture this is live from key west. that actually looks gorgeous to me actually. they will have some squalls in the day today, also. here's the forecast to look throughout the rest of the storm. going to head through the gulf, remain very weak and it could dissipate and most likely a weak storm in the weekend. should make landfall in louisiana and done with sunday. once again, not a big deal. weak, weak storm. what's a much bigger story is the heat wave out there. look at d.c. 98 today. 101 for saturday. and then 99 again on sunday. we cannot catch a break in many areas of the southeast and mid-atlantic from this incredible summer heat. could switching to geico really save you fifteen percent or more on car insurance? can fútbol announcer andrés cantor make any sport exciting? ha sido una partida intensa hoy. jadrovski está pensando. está pensando. veamos que va a hacer. moverá la reina o moverá el caballo? que tensión. viene... viene, viene, viene... gooooooooooooooool! geico. fifteen minutes could save you fifteen percent or more on car insurance. ...into a free year's supply? be one of thousands to win free honey nut cheerios for an entire year... its great taste helps make lowering cholesterol a non-challenge. just see specially marked boxes for details. president obama and his family are going on vacation in the gulf coast next month. yeah. of course, the gulf coast is a lovely place to sit back and relax. just ask bp. they'll tell you. >> welcome back to "morning joe." on sunday, time geithner will be there on "meet the press." with us is patrick gavin with a look at the morning playbook. let's pick up on a story we were talking about earlier this morning and that is the one about sharon angle. customary for politicians to talk to the press. >> oh, yeah. >> take a few questions after giving a speech. but sharon angle, of course, running for senate there, republican in nevada, different story. let's watch what happened. >> oh. >> well, patrick, let me tell you what happened. >> ran out that fast. that's the story. she didn't say anything. that was the sound bite. >> we'll reenact it for you. >> the press told by an adviser about to take questions. the moment he finished saying that, she turned and walked for the exit. why are people excited about this, patrick? >> almost perfect 90-degree turn. i think the military could copy that. this is the first event since she won the gop primary in june that the press invited. she gave three minutes of remarks and a colleague on stage said they would accept questions and she just ran away. she is not been a big fan of the press and not a big fan of interviews saying on fox news this week even she quote wants to go to war with some of the negative press and we have seen a lot of politicians use this strategy. sarah palin does it very well speaking out against the mainstream media. whether or not sharon angle can pull this off is interesting. she is not as well-known as sarah palin. sarah palin has given interviews. mostly on fox with a contract and sharon angle, tough for her to rail against the press when she is not willing to do interviews and opens her up to potential attacks of people saying she is trying to, you know, duck and cover. >> mark whitaker, isn't this a strategy? sort of me against the mainstream media, not dealing with them and talk straight to the -- >> problem goes back to the poll numbers. people so upset with the existing political institution and willing to take a flyer on the right and the tea party and not only do they not have a plan, i mean, running to be part of a government they don't believe in but also they have to experience in politics. they're novices and one of the things is if you run for office, you have to deal with the media and this kind of shows how unprepared it seems she is to do the basic mechanics of running for office carl bernstein, how can she aroad the media? >> constituency will love it. >> right. >> at the same time, there are a lot of people in that state to say, what is this craziness? >> why will they love it? >> because this is an ideological thing about the press, fox news, msnbc. >> one thing to say -- i don't think any constituent can go, yay. >> i wish that was the case. i think we are in the midst of an ideological cultural war in this country that this election is about. this is how she's fighting this cultural war. the way sarah palin fights the cultural war. >> charlie rangel, any difference? >> yeah. a difference between her and charlie rangel. he's done some things. >> i'm talking about dealing with the press. >> whatever he's done on the side with real estate. >> the attitude is i don't have to answer to anybody. i don't think that plays with a constituents. >> both sarah palin and charlie rangel, they knock the media to their face. charlie rangel to luke russert. sarah palin to katie couric. that's more effective. if you look somebody in the face saying that's a gotcha question. if sharon angle doing it by twitter or on her website or refusing to take questions, that's totally different. i think that going -- it can be effective to their face. >> you know, as patrick will tell you, everybody thought a few months ago that harry reid was finished. no way to win reelection and the fact that the republicans nominated this woman -- >> come up with that. >> given him a second life. >> unbelievable. >> conventional wisdom, the great problem in washington to a large extent including the media is the appetite for conventional wisdom instead of saying, hey, let's really look at the real existing story here. what's the real existing story about this candidate and harry reid who's been there and what do individual voters say? not just in polls but drill down deep and try and find out what's going on out there. that is a complicated place, you know. >> patrick, thank you so much. you have a good scoop this morning about someone on the website eyeing michael steele's job at the top of the rnc. >> that's right. >> check out politico.com. >> no fair. >> slight motive. >> no filter. >> hey, patrick, thanks. >> take care. erin burnett, top three business headlines of the morning coming up next. n you're saving for your dreams. 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[ male announcer ] wells fargo. together we'll go far. ♪ would you like to ride my beautiful balloon ♪ welcome back to "morning joe." we are told this is a balloon festival somewhere in the world. live picture. tri-state area. narrowed it down. >> i thought it was the macy's day parade. >> filling them early this year. now you know about that, everybody. nearing bridgewater, new jersey. >> just going to laugh. >> watch this. anyway, the balloon festival. let's get a check on the business before the bell with cnbc's erin burnett live at new york stock exchange with a friday version of the top three countdown. >> yes. i'm sorry. i'm looking for -- it is in new jersey. >> bridgewater, we heard. >> yeah. i just -- i just looked it up on the web. >> good work. >> are y ready for -- the music was sort of -- i don't know. disturbing. some manner. i can't really explain why. >> do you know who that is? >> no. >> okay. of course, erin is under 50. it is the fifth dimension. >> okay. >> aquarius. >> i have learned something. >> no. >> okay. are you ready for -- >> justin beiber. >> all right. number three. where's my music? ♪ number three pay you nick. i know you must feel, you know, you got to know you're using that word when you use it. here's the thing. ken feinberg as you know in charge of the gulf payout and banks and t.a.r.p. and compensation and come out now with a list of 17 banks that have -- out of 119 that got money and thought he had unmerited bonus packages at the end of the 2008 when everything was completely crashing. they paid out more than $2 billion in bonuses. he will come out with a report saying 80% of the pay unmerited. >> erin, that's taxpayer money we're talking about. >> well, yes. >> banks that took taxpayer money. >> the wordeunich is because it's terrible and let's move on. >> i thought because donnie is here. >> let me just say something. when i have the word eunich up, i didn't put a man's face. >> fair enough. number two? ♪ number two >> here's plenty of faces. these are the free riders. i'm being a bit tongue in cheek. "financial times." the article is head of european central calls for tightening saying everybody around the world should be raising taxes, cutting spending. the word strident. this is a nice thing to say, right? europe can take the moral high ground. why are they able to do that? they know their big brother united states keeps spending. guess where europe sends the exports? u.s. and china. germany's exports growing at the fastest rates since 1990s because other people are spending so it's easy to come out and say let's have awe stair and stop spending when the united states of america of borrows and do it so just something to think about. >> all right. number one? >> okay. ♪ number one i don't know which of these pairs donnie deutsch wears but -- where is it? they don't have my picture? >> i'm sorry, erin. i'm sorry. i'm sorry. too risque. the graphic just not appropriate for the morning and killed it. >> wow. >> euy nich was appropriate. you understand the standards here. i have put on several pairs of underwear. >> sorry? >> underwear, yes. the reason i did this is there's a new technology that walmart is putting in its stores. to track who buys what and going to go in the underwear and know whether you buy, you know, i don't know, tighty whiteys, boxers, thongs. i don't know. but they're going the know and when you take the underwear home, you can't remove it. they'll track where your wear your underwear. >> can you wash it? >> who's they? >> this is my point. underwear is for some people a rather dicey thing to track. >> boxers or briefs? >> you? >> are you going to start seeing people go out -- it is a public company and provides the technology but as to who could get their hands on data about where you wear your underwear and where you are at all time -- >> men's and women's underwear? >> what? >> men's and women's underwear? >> yes, men's and women's, donnie. >> glad i could be here for this. >> i don't know what to -- >> underwear and felt it was inappropriate. >> big brother is watching. >> in your pants. >> i'm speechless. >> erin burnett, thank you so much. >> enlightening countdown. have a great weekend. thank you. >> good-bye. next, sheila bair after this segment. tch airlines. so i can take one airline out... and another home. so with more flight options, i can find the combination that gets me there and back quickest. with a little help from expedia, my friends will think i can be everywhere at once. where you book matters. expedia. because of this law, the american people will never again be asked to foot the bill for wall street's mistakes. there will be no more tax-funded bailouts. period. >> well, that was president obama promising that there will be no more tax-funded bailouts after the historic reform bill signed into law this week. and joining us, fdic chair sheila bair. thank you for joining the conversation. >> happy to be here. >> let's talk about the bill, especially since you were one of the first to sound the alarm here. does this do it? >> i think there are other pieces, gsc reform for next year but i think it gives the regulators the tools they were lacking in the crisis to regulate and prevent risk and deal with the cycle as institutions started to get into trouble. so, really up to the regulators to use the tools effectively. >> to react or prevent? >> they're both. they're both. ow major piece of it, the resolution authority, to react when the cycles hit. though they're also enhanced supervisory powers to make sure the cycles are not never so powerful as we experienced. i think it tackles it on both front. >> tackles the risk issue but the fundamental too big to fail we have six institutions too big. they just can't. so how do you get your arms around that? >> what do you mean by -- >> basically they can still play whatever game they want and knows daddy will take care of them. they'll find a new risk mechanism to play outside the boundaries with. >> there will be no more bailouts as long as i'm around and fdic will not participate. >> let's say jamie diamond says we are going off the rails. i say that tongue in cheek and all of a sudden morgan's about to go under. you can't let them go under. >> right. >> you can't. i mean, you say i won't bail them out. >> what do you mean by going under? if you mean a ridge authority, a temporary working capital to keep the franchise operational as you sell it off, the shareholders and the equity owners absorb the losses, that's a resolution process. the whole point of the special system in place is to give the government the ability to providecapital to keep it going as it's broken up and sold and similar to bankruptcy. the advantage it has over bankruptcy is providing temporary support. as regulators, we can work with the fed early on to get -- this is what we do with banks. we start doing asset valuations, claims valuations. >> say the thing was happening in '08, aig, goldman -- >> right. >> what were the mechanisms of that point, how would they have played out? >> i think lehman is a good example and hank paulson has pub publicly said this. a prime example where the tool would have been very helpful because there were very interested buyers in lehman and a process like ours to start doing asset valuationser and determine the value of the franchise, a marketing strategy and market it and sell it into competitive process would have worked quite well with lehman and with the process to hold the bad asets back, in the receivership. it's a good bank/bad bank model. the bad bank stays in the receivership with the equity and unsecured debt. with lehman it would have worked very well. what hank said later and told me later he was this close but because of the risk exposure potentially to barkley's, fsa was concerned and with our approach we could have held the bad assets back. >> under this, the banks won't get essentially the same kind of free ride discount. am i correct? >> they will not. >> these guys got a free loan, a bridge loan that kept them in business forever. >> that's right. >> they didn't have to pay for it. i think, isn't that the underlying assumption of part of this regulation? >> that's right. that's right. that's right. so it also creates a funding -- an industry funding mechanism, as well. >> they have to pay something back if they don't fail. >> well, they will fail in the sense that the shareholders take losses. the boards will be gone and fail in that sense. there shouldn't be any losses at the end of the resolution because you are not guaranteeing liability. the secured creditors only protected to the extent of the come lateral. the if there's unexpected loss, there's a expost -- >> which did not happen. >> dewe had it for banks. >> running to the proverbial bank. >> that's right. >> one of the most offensive parts of this to us taxpayers of the last couple of years were the big bonuses that were paid out to these guys. >> yeah. >> probably because it's easy for us to wrap our arms around it after they'd taken taxpayer money. ken feinberg with a report on this today. does the government have any power to claw back any of that money? >> well, that's another -- in terms of open institutions, that's a problem with bailouts. the contractual obligations are there if you keep the institution open. we can accept contracts. we can renegotiate something to keep the particular person if we think there's value to keeping the employee or whoever into the institution to maintain the franchise value but with open institution it's difficult. so again, that's advantage of the resolution process versus a bailout. >> elizabeth warren, head of the consumer protection -- i mean, could this be something you see her doing well? >> well, you know, i think she is well qualified. i was asked that question -- >> consumer guardian? >> it's a very big job, whoever has it, it's a very, very big job. i think you will need to be drawing staff from a lot of different agencies. building a new culture. tackling a lot of issues that have perhaps gone under addressed for too long. my hope is whoever has this job will also focus on imspli if i case for consumers especially. make information that gets more meaningful to understand the products and help community banks. i think a lot of consumer compliance requirements of bank regulation are elaborate and larger banks handle that with the large legal staffs an enthe smaller banks are hurt. there's real opportunity to help consumers and smaller institutions to comply. >> sheila, help a jaded guy in the business world and the reform bill is fantastic. but then i say, you know what? what history has shown us is that we have solved the games of the past. that man -- man and woman's greed will also push us outside the line and no financial reform and protection that can protect us from the unseen greed. >> that's right. >> that's the sad outcome of this for me, at least. >> i think that's why you need a resolution authority, mechanisms to deal with the cycle when it comes but i do think looking back and going forward, we were back in 2001 at treasury talking about an affordable mortgages being made and in 2006 we also when i came back to the fdic sounding alarms and others were, as well. more could have been done to prevent the crisis but yes, cycles inevitable and why you resolution authority to deal with them when they come. >> the really interesting phrase which is a cultural difference. >> yes. >> i think one of the things happening in washington, hasn't been noticed under obama is that the agencies have been empowered with a lot of authority they never had before. they're using it in medicaid, medicare. they're using it through inspector generals and interesting things going on in the city and the obama administration is developing, i think, a no-tolerance or less tolerance policy and culture. and i wonder if you sense anything like that. >> i think certainly in financial services regulation is back in vogue. i hope that continues. >> you are in the toughest area of all. >> we are. and, you know, regulation becomes unpopular and popular and it is popular again and the best way to support regulation is a common sense way. don't let the pendulum swing too far back the other direction or do thing that is are not consistent with common sense and basic approaches. but i think, you know, it's popular again. political support for it and that's good. it wasn't just financial services. the culture sees the town across the board and paying in other areas, as well. >> we need more women in finance, as well. >> yeah. i'm all for that. >> talking about common sense, just saying. i'm just saying. >> i agrow. >> thank you. sheila bair, thank you very much. i appreciate you being here in the studio with us. willie's week in review is next. ♪ [ deb ] people don't just come to ge capital for money. they come to us for help. at ge capital, we've been financing taylor guitars for over eight years, helping them build a strong dealer network. bringing music to people... i like that. ♪ ♪ [ bob ] i didn't know you could play. i didn't either. ♪ so why are over a thousand people a day switching to chevrolet? 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[ female announcer ] at aarp we believe you're never done growing. thanks, mom. i just want to get my car back. [ female announcer ] together we can discover the best of what's next at aarp.org. and i'm joni. we've been best friends since we were two. we've always been alike. we even both have osteoporosis. but we're active, especially when we vacation. so when i heard about reclast, the only once-a-year iv osteoporosis treatment, i called joni. my doctor said reclast helps re-strengthen our bones to help make them resistant to fracture and reclast is approved to help protect from fracture in more places: hips, spine, even other bones. (announcer) you should not take reclast if you're on zometa, have low blood calcium, kidney problems. or you're pregnant, plan to become pregnant or nursing. take calcium and vitamin d daily. tell your doctor if you develop severe muscle, bone or joint pain or if you have dental problems, as rarely, jaw problems have been reported. the most common side effects include flu-like symptoms, fever, muscle or joint pain, headache, nausea, vomiting and diarrhea. nothing strengthens you like an old friendship. but when it comes to our bones, we both look to reclast. you've gotta ask your doctor! or call 866-51 reclast. year-long protection for on-the-go women. we assembled the top minds in the news business to come up with this very scientific list of the top three stories of the week. number three, lindsay locked down. known prior to the gulf oil spill as america's biggest disaster, lindsay lohan reported to the slammer this week to serve a harrowing two-week sentence for somethings she did. >> i'm sorry. >> in what's become celebrity tradition in los angeles, lohan performed a stylish perp walk and showered with confetti by the assembled freaks. >> fight for your right to party! >> that's all i have to say. >> she went to jail? >> yes, she did. >> oh! >> as one would expect, lohan's imprisonment set off rioting around the world. >> no! [ speaking foreign language ] at number two, blago falls silent. >> the biggest lesson i have learned is that i talk too much. >> after a year and a half of glorious build-up -- >> i thought about mandela, dr. king, ghandi. >> nothing but sunshine hanging over me. >> i can't wait to take the stand and testify. >> persecuted former governor rod blagojevich denied his own attorneys the chance to tell his wonderful story in a court of law. >> it simply came down to an argument between an old bull and a young toad. >> as one would expect, the muzzling of blago set off rioting around the world. [ speaking foreign language ] number one story of the week -- >> something goes up on youtube or a blog and everybody scrambles. >> shirley, you can't be serious. >> and here i was faced with having to to save a white person. >> the usda known for the bright inspection stickers on delicious cuts of meat found an employee, shirley sherrod, in the middle of a bizarre national scandal this week. >> shirley, they want you to pull over to the side of the road. >> sherrod pulled over and resigned under pressure from the bosses at the department of agriculture, based on a misleading, month's old video snippet posted by a conservative blogger. >> you will be on glenn beck tonight. >> the georgia farmer at the center of the story of question spoke up to say the whole thing -- >> a bunch of hogwash in my opinion. she saved our farm. she did. >> when the full video popped up and turned out shirley sherrod was not a menacing racist after all, she got a call from the president and apologies from just about everyone else. >> apology. >> my personal and profound apologies. >> i owe miss sherrod an apology. >> i would like to apologize, too. >> you should too. >> i apologize all the time. >> the affair enflamed emotions here at home and also set off rioting around the world. >> you just hate to see it come to that. that woman was mad at the potted plants. coming up next, what if anything did we learn today? stay tuned for "the daily rundown" with mr. chuck todd. ge. i'm keith seilhan. ge. i'm in charge of bp's clean up on the gulf coast. bp's taken full responsibility for the clean up, and that includes keeping you informed. over 25,000 people are included in the clean up operation. our crews are cleaning the gulf beaches 24/7. we're going to be here as long as it takes to make this right. all right. it is time to tell you what we learned today. before that, hey chris, just open your computer, pick the first e-mail. first one that koms up on the screen. let's hear it. >> here's one from chapel hill. >> oh. >> can you provide one reason, just one, as to why donnie deutsch is on the air. does he own stock at nbc? are the "morning joe" rates too high? the insight provides the same level of significance as the musicians that played on as the "titanic" sank. >> from my big fan base in chapel hill. that was poetic, also. that was -- by the way, may he die. >> what a coincidence. >> mark? >> erin burnett does not know who the fifth dimension and must be over for us. >> carl? >> balloons. the best balloon show that i think i've ever seen on television. should be your permanent bumper on the screen. >> a day about balloons. >> still not off the

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