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Lou Dobbs Tonight

Top Admiral Calls it Quits; Amnesty Agenda Supporters Call for End to Immigration Raids; Strong Legislation for Broken Borders

Aired March 11, 2008 - 19:00   ET

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

LOU DOBBS, CNN ANCHOR: Thank you, Wolf.
Tonight the commander of our troops in the Middle East, Admiral William Fallon has resigned after he appears to have criticized President Bush.

Meanwhile, Governor Eliot Spitzer of New York refusing to resign, at least so far over his links to a prostitution ring.

And Senator Barack Obama misrepresenting my position on illegal immigration once again and he is still pandering to socio ethnocentric special interest groups. Tonight I will set the senator straight.

We'll have those stories, all of the day's news and much more straight ahead here tonight.

ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Tuesday, March 11. Live from the Election Center in New York, Lou Dobbs.

DOBBS: Good evening, everybody. The top U.S. commander in the Middle East, Admiral William Fallon today abruptly resigned. Admiral Fallon's announcement coming days after a magazine suggested Admiral Fallon opposes President Bush's policy on Iran.

Meanwhile, Governor Eliot Spitzer still refusing to declare whether he will resign his post. New York State Minority Leader James Tedisco today threatened to introduce articles of impeachment against Spitzer if Spitzer does not quit within the next 48 hours.

We being our coverage tonight with the latest on Admiral Fallon's resignation. Jamie McIntyre joins me now reporting from the Pentagon -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Pentagon officials, Lou, say that Admiral Fallon's departure was not forced but at the same time privately, officials confirm to CNN that Fallon had fallen out of favor with some at the White House because he appeared to be out of step with the president.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Admiral William Fox Fallon's 41-year career and his term as top U.S. commander for Iraq/Afghanistan in the Middle East was brought to a crashing halt by this profile in April's "Esquire" magazine, which portrayed Fallon as brazenly challenging his commander in chief in opposing war with Iran.

"He is that rarest of creatures in the Bush universe: the good cop on Iran", the article asserts. Adding, "He might not get away with it for much longer. President Bush is not accustomed to a subordinate who speaks his mind as freely as Fallon does".

Fallon's boss, Defense Secretary Robert Gates, insist there was no pressure from the White House and that he only informed President Bush who was traveling after Gates decided to accept Fallon's offer to step aside.

ROBERT GATES, DEFENSE SECRETARY: Admiral Fallon reached this difficult decision entirely on his own. I believe it was the right thing to do, even though I do not believe there are in fact significant differences between his views and administration policy.

MCINTYRE: Fallon issued a statement from his Central Command headquarters in Tampa, saying in part "recent press reports suggesting a disconnect have become a distraction at a critical time. And although I don't believe there have ever been differences, the simple perception that there is makes it difficult for me to effectively serve."

While Fallon says the decision to step down is aimed at removing a distraction, it does just the opposite; reinforcing the perception he was pushed aside because he opposed attacking Iran.

GATES: The notion that this decision portends anything in terms of a change in Iran policy is to quote myself, "ridiculous".

MCINTYRE: But Fallon's abrupt resignation is already giving ammunition to the administration's sharpest critics, such as Senate Majority Leader Harry Reid who said I'm concerned the resignation of Admiral Fallon is yet another example that independence and the frank open airing of experts' views are not welcomed in this administration.

Insiders say what got Fallon into trouble was not his private advice, but public statements that sometimes came off as dismissive of U.S. policy.

(END VIDEOTAPE)

MCINTYRE: So while it may well have been Fallon's decision to retire, he certainly didn't get any argument from Defense Secretary Gates. When he called him this morning told Fallon it was the right thing to do -- Lou?

DOBBS: Jamie, thank you very much, Jamie McIntyre from the Pentagon.

The president today praised Admiral Fallon's service to the nation over a period of some four decades. President Bush did not make any reference to the reported differences of opinion between Fallon and the president. Ed Henry has our report from the White House -- Ed. ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Lou, all sides continue to insist there's no daylight between Admiral Fallon and President Bush on key issues like Iran, but clearly there was some friction that was exacerbated by this magazine article and most telling perhaps is the fact that President Bush showed no sign of trying to talk the admiral out of stepping down, instead putting out a pretty bland written statement, nothing on camera, but saying quote, "Admiral Fallon's job has been to help ensure that America's military forces are ready to meet the threats of an often troubled region in the world and he deserves considerable credit for progress that's been made there, especially in Iraq and Afghanistan".

But in fact Admiral Fallon has gotten very little public credit for security gains in Iraq from the president. Mr. Bush instead lavishing much more praise on General David Petraeus, his commander on the ground in Iraq, even though Petraeus was technically a subordinate to Fallon. The fact is it was clear that General Petraeus had the ear of President Bush, has become a key strategic adviser about the war there on the ground. And it is also interesting that Admiral Fallon will be officially stepping down at the end of March, just a few days before General Petraeus once again takes the stage. General Petraeus will be on Capitol Hill giving another progress report in early April -- Lou.

DOBBS: The friction between Fallon and the White House on Iran, why all of the gamesmanship today? Admiral Fallon, one of the most respected senior members of the U.S. military. This looks like -- this is very poor public relations for this president, this administration and certainly the Pentagon.

HENRY: It certainly gives the president's critics ammunition to the charge that's been out there for a long time that he does not like to have subordinates who do not agree with him on everything. The White House of course insisting that's not the case here. But the fact that Admiral Fallon is leaving so quickly after this magazine article with these critical comments about the White House, about the president certainly going to give even more ammunition to the president's critics, Lou.

DOBBS: Thank you very much, Ed Henry from the White House.

There are no indications tonight of any resignation plans on the part of Governor Eliot Spitzer over his links with a prostitution ring. Tonight startling indications that the alleged leader of that prostitution ring may have had close ties with the Internal Revenue Service. Drew Griffin has our report from Washington -- Drew.

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: Lou, it could be a quirky twist in this or prove pretty significant as we go down the road. What we are reporting here at CNN is that the man who ran this alleged prostitution ring, Mark Brenner, the head of the Emperors Club, is an enrolled agent with the IRS. What does that mean?

That means he's earned the privilege, according to the IRS, to represent taxpayers before the tax collecting agency. You get this privilege one of two ways, you either learn the tax codes and take the test or you are a former IRS agent. We have not been able to confirm if Mark Brenner is indeed that second person, but it certainly is an interesting twist, especially given the fact that this investigation supposedly began at the IRS, looking at the money transfers being involved here between Spitzer and the Emperors Club -- Lou.

DOBBS: Drew, any further indication as to just exactly how the Internal Revenue Service ensnared, if you will, Governor Spitzer, in their investigation. Was he the target at the outset? What was their original target? Have we got any light to shed on that tonight?

GRIFFIN: You know I really don't other than talking to sources and sources pretty up, high up at the FBI who were not involved with this, but say you know to do a wiretap is pretty big stuff, usually involves organized crime, that's why they do it, so they're looking for more information as to how this may have begun or was it just as we're led to believe at this time just a couple of snooping low level IRS agents who saw some money being transferred here and there and then kicked it up to the FBI's office of political corruption fearing that maybe there was some kind of political moneys involved here? The details to follow obviously are going be great and explain just how this all unfolded because it does seem to be pretty interesting, wouldn't you say, Lou?

DOBBS: I would say very interesting and I would say those, as you put it, low-level agents at the Internal Revenue Service were not so much snooping as being alert, attentive and thorough. Thank you very much, Drew Griffin.

Governor Spitzer is refusing tonight to say whether or not he is going to resign, but Governor Spitzer is facing worsening increasing heightening political pressure to stand down. Tonight, reports that Spitzer spent as much as $80,000 on prostitutes over the past several years. Mary Snow has our report.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): There was no sign of New York Governor Eliot Spitzer one day after news broke linking him to a high-end prostitution ring. The governor's spokeswoman would only say Spitzer was at his Manhattan apartment with his family. But in the state's capital of Albany, a legislative aide tells CNN transition talks were under way between Spitzer's staff and aides to Lieutenant Governor David Paterson. And a top state Republican lawmaker says if Spitzer does not step down voluntarily, he'll begin impeachment proceedings.

JIM TEDISCO (R), NEW YORK STATE ASSEMBLY: We're waiting for the governor to do the right thing. We think and we hope he will. If not it's within 24 to 48 hours, we're developing the paper work right now, putting the resolution together and then we're going to make that request within the next two days if he does not resign himself so we can go forward.

SNOW: Spitzer admitted nothing specific when he publicly apologized Monday. GOV. ELIOT SPITZER (D), NEW YORK: I have acted in way that violates my obligations to my family that violates my or any sense of right and wrong.

SNOW: Federal investigators have linked Spitzer to a prostitution ring that initially resulted in four arrests last week described in a federal affidavit. Sources tell CNN the link was the result of a money laundering probe after a bank initially filed a suspicious movement report with the IRS. Spitzer has begun putting together a legal team which had no public comment. But one former New York City prosecutor says Spitzer's lawyers are most likely trying to negotiate with federal prosecutors.

PAUL CALLAN, FORMER NYC PROSECUTOR: The last poker chip that Eliot Spitzer has is the governorship and he's hoping that prosecutors will be willing to allow him to resign and accept that resignation as punishment for the criminal charges.

(END VIDEOTAPE)

SNOW: Now Spitzer has not been charged with anything and prosecutors are not commenting. As for his political future, Democrats in New York indicate the question being asked among themselves is not a question of if Spitzer will resign, but when -- Lou.

DOBBS: Mary, thank you very much, Mary Snow.

Still ahead here, much more on the Spitzer scandal, also the battle over the outsourcing of our national security is escalating. Christine Romans will have our report -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, Boeing tonight is formally appealing the decision to outsource a $35 billion Air Force contract to a European company -- Lou.

DOBBS: Looking forward to that report, Christine.

And Senator Barack Obama, a leading pro amnesty advocate for illegal aliens is taking aim at me, distorting my position on illegal immigration and doing so today. Obama making outrageous, inaccurate comments about my views and pandering to socio ethnocentric special interest groups at the same time, well I'm going to outdo him here tonight and I'm going to set Senator Obama straight on my record.

And what's left of our middle class being crushed by the housing crisis? The chairman of the House Financial Services Committee, Congressman Barney Frank joins us. He has a plan to help. He'll be with us next. Stay with us. We're coming right back.

(COMMERCIAL BREAK)

DOBBS: New efforts tonight to stifle the national debate on illegal immigration and border security from the ACLU to the government of Mexico. The open borders lobby is demanding an end to immigration law enforcement and free speech. This is at the very least a vast left wing and right wing conspiracy. Casey Wian has our report.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): The American Civil Liberties Union is demanding that Congress crack down of raids, deportation and other alleged violations of civil liberties by U.S Immigration and Customs Enforcement. It's the latest effort by supporters of expanded rights for illegal aliens to stop immigration law enforcement in the United States, which they claim is a response to their street demonstrations.

EMMA LOZANO, PUEBLO SIN FRONTERAS: Our historic and record breaking marches were answered by Bush with an aggressive and very public campaign of hate, terror, degrading the human dignity and separating our families through humiliating public raids and deportation.

WIAN: The ACLU claims ICE has conducted dragnet-style raids of homes and businesses to sweep for immigrants; separated parents from their children and held them without due process in immigration detention facilities.

In fact, ICE says their enforcement actions only target egregious violators of immigration law, illegal aliens who have committed other crimes and fugitives. Agents routinely release illegal aliens on humanitarian grounds such as child care. Still religious groups and the Mexican government have joined the chorus (ph) equating immigration law enforcement or the discussion of the topic with hate and prejudice.

PRESIDENT FELIPE CALDERON, MEXICO: Fugitive generations reject us by the decisions we take today, we work together to provide organized and humane migration if we continue to allow hundreds to die each year.

WIAN: While Mexico's president recently spoke of working together to solve the illegal immigration crisis, he also told "The New York Times" so-called anti immigrant rhetoric by U.S. politicians and talk show hosts quote, "has generated an atmosphere full of prejudice", even U.S. presidential candidates are chiming in.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: So when I hear Rush Limbaugh or you know Lou Dobbs or some of these people talking about how we need to send them all back, we're not going to send them all back.

WIAN: Apparently Senator Obama is not aware that LOU DOBBS TONIGHT has never advocated mass deportations.

(END VIDEOTAPE)

WIAN: As for the ACLU, it first agreed to discuss its claims on camera with CNN, but after being told the interview would be used for LOU DOBBS TONIGHT, the ACLU changed its mind, saying something came up. The group denied that had anything to do with this broadcast -- Lou. DOBBS: Well let's give them something to think about. The ACLU's comments here and criticism of Immigration Customs Enforcement are simply outrageous, so that's where we can start the negotiations for whether or not they want to come on. The fact is that the ACLU has just been. It's no longer a civil rights organization.

It's joining other organizations that have historically been watchdog groups have been you know committed to a higher standard of public service. They're nothing more than advocacy groups themselves. You heard Senator Obama; I would like you if you would to listen again to what Senator Obama said today attacking me and I want to point out this is not the first time the senator has attacked me. Let's listen in.

(BEGIN VIDEO CLIP)

OBAMA: When I hear Rush Limbaugh or you know Lou Dobbs or some of these people talking about how we need to send them all back. We're not going to send them all back. First of all, this is a country of immigrants. Second of all, as a practical matter, we would end up having to use all of our law enforcement resources to round people up, detain them, separate families. It's not a realistic solution. We're not going to be able to solve the problem if we're just shouting about it like Lou Dobbs and folks on television.

(END VIDEO CLIP)

DOBBS: Well Senator Obama, a couple of things. One is you say you can't possibly deport folks. Well let's look at the record because in the 1970s, more than 10 million illegal aliens were actually deported during that period of time, so it's -- it is within our capacity and as a man who is running on an aspirational agenda and campaign, you might consider what the possibilities are for this country rather than its limitations.

This country can do whatever it sets its mind to doing. The other thing is, I'm just curious about who in the world do you think you're kidding. You can pander -- you're a world class pander and most presidential candidates are, but I have to say you didn't, in my opinion, do a very good job today. You said, as I recall, you said that we can't send all of those folks back.

And then you said you won't send all of those folks back. Now that isn't very good pandering. You know Casey Wian, you're still there. I mean I'm sort of shocked that he would not -- if he's going to pander, shouldn't Senator Obama -- shouldn't he get really, you know say he's not going to send anyone back. Do you think that would be a little stronger than well we're not going to send everybody back?

WIAN: Yeah, there's a lot of confusing things about this statement, Lou. And first of all, it sounds like he's reading from a script written by some of these organizations that were in our report, the ACLU, Maldef, La Raza. I mean, he's talking about fear mongering. He's talking about rounding up folks in mass numbers. He's talking about separating families. He's equating legal immigration with illegal immigration. These are all the tactics and the words that are used by these open borders advocacy groups and it's also surprising in that he's the front-runner. You wouldn't think he would need to resort to this kind of a disinformation campaign, this pandering as you put it. Perhaps he is so worried about the Latino vote in the remaining states. He did only get about a third of the Latino vote in Texas.

Perhaps he's worried about that going forward. But it sure seems that by distorting the record of people like you, people like Rush Limbaugh, who we were unable to contact today. But we did see some of the statements that he's made in the past about illegal immigration and he also has never, that we could find, called for mass deportations of people. So you really got to wonder what's going through Senator Obama's head here, Lou.

DOBBS: Well I want to say to Senator Obama right now, you owe me an apology because you distorted my position. One, I have not never talked about rounding folks up. I certainly have never called for deportation. And tell your advisers that if they are going to help you pander, Senator Obama, do me a favor do yourself a favor, do us all a favor. Do it with some style. You know don't just say you're not going to send everybody back.

You know that isn't quite good enough. Why don't you do -- let me do this -- may I. I'm going to raise the ante for you here tonight. Senator Obama, I'm going to pander to that group and show you how it's done. And I am going to pander them though however by telling them the truth. Folks, if you are Latino, if you are an illegal immigrant, take note.

I have never called for you to be deported. And unlike Senator Obama who would not send you all back, I won't send any of you back. How's that? You think that would work. I think I just out pandered you, Senator Obama. I hope that you'll issue that apology now that we've set the record straight here. What do you think Casey Wian?

WIAN: I am not going to hold my breath, Lou.

(LAUGHTER)

DOBBS: Casey Wian, thank you very much. We are in the grip, as you can see when Senator Obama and all of these socio ethnocentric interest groups, ACLU, when they're all doing this concerted, you don't have to have much of an imagination to see that it is clearly an amnesty open borders offensive and trying to stifle a national debate.

That brings us to our poll question tonight. Do you believe Senator Obama is intentionally misrepresenting my position on illegal immigration? We would like to hear from you on this. Yes or no. Cast you vote at loudobbs.com. We'll have the results here in just a little later.

Up next, Republicans trying to bring a tough illegal immigration law to the House floor despite political obstacles. We'll have that story for you. And the outrage is growing over the Pentagon's idiotic decision to give that tanker contract to a European consortium that builds the Airbus. We'll have a special report and I'll be joined by Senator Maria Cantwell. She's calling for an investigation; I think that's a great idea. She'll be our guest here next. Stay with us. We're coming right back.

(COMMERCIAL BREAK)

DOBBS: And did I mention Senator Barack Obama is welcome here anytime to discuss illegal immigration and his pandering and misrepresentation of my position? I would love to hear what the man actually thinks about and plans to do about illegal immigration and border security.

Well legislation to crack down on illegal employers of illegal aliens and to strengthen our border security has been stalled in committee by the House leadership. But now there is a move by House Republicans and even some Democrats to force a full debate on the legislation. Louise Schiavone has our report.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): House Speaker Nancy Pelosi isn't ready to embrace it, but 49 Democrats and 93 Republicans want a full debate on an immigration reform bill. The measure would toughen border security and make the government and its contractors verify their workers' legal status.

REP. HEATH SHULER (D), NORTH CAROLINA: We have both Democrats and Republicans, we have farm groups, we have police groups, organizations, we have the largest unions, we have the largest business groups all sponsoring and truly feel that this is the best piece of legislation to be able to deal with the immigration problem that we have.

SCHIAVONE: But there are deepening divisions within the Democratic Party on immigration.

BRIAN DARLING, HERITAGE FOUNDATION: You have the Hispanic caucus on one side. You have your blue dogs on the others and Speaker Pelosi is having a hard time within her Democrat caucus to get consensus on the issue of immigration.

SCHIAVONE: House Speaker Nancy Pelosi's spokesman told CNN quote, "Bipartisan leadership discussions have taken place to find common ground legislation that deals with enforcement, jobs, borders and those who are already here, so there is no floor votes scheduled at this time", end quote.

The bill has been farmed out to eight separate committees and now a discharge petition to move the Shuler bill to the floor is quickly collecting names of members of both parties.

(END VIDEOTAPE) SCHIAVONE: Lou, insiders say it is possible the bill could get the required 218 votes by week's end. Congressman Shuler believes that he can get 300 House votes for his border security and worker verification bill -- Lou.

DOBBS: Louise, it looks like the Democratic leadership again is trying to fight those who in Congress would represent the interest of the majority, the interest of the American middle class.

SCHIAVONE: And it is very troubling, Lou, to members of the Democratic Party who need to get votes for this coming election in November. And they feel that their leadership is not behind them. But by the same token, this is fraught with perils for the Republicans too, because they know that this puts them at odds with the GOP presidential candidate.

DOBBS: It's always great to see intellectual integrity and courage on the part of the leadership in the House whether that leadership is Democratic or Republican. It is a rare sight indeed.

Louise Schiavone, thank you very much.

Time now to look another some of your thoughts. Mike in Florida wrote in about Senator Obama's well misrepresentation of my position on illegal immigration saying I said illegal aliens should be deported. He writes, "Lou, I am an Obama supporter and that will not change. That being said, it is important that he -- Senator Obama -- gets his facts right. I've watched your news program for years and during that time I can attest that you have never said that all illegal immigrants need to be removed from this country. He needs to get that correct." Yes, he does.

And Tina in Pennsylvania, "It appears Governor Spitzer is only apologizing because he got caught. Evidently he didn't have enough respect for his family, his career, or the people who elected him to office. It's funny what power does to a person." And sometimes it's just plain tragic.

Ken in South Carolina said, "Well Lou, at least Eliot Spitzer can still achieve half of his dream. Instead of delivering illegal driver's licenses, he now has the opportunity to deliver license plates made in the good ole US of A made by and inspected by number nine."

We'll have more of your thoughts here later in the broadcast. Each of you whose e-mail is read here receives a copy of my book "Independents Day: Awakening the American Spirit". And we invite you to catch my new radio show Monday through Friday, "The Lou Dobbs Show". Go to loudobbsradio.com to find local listings for "The Lou Dobbs Show".

Up next, three of my favorite radio talk show hosts join me. They'll give us their assessment of Senator Obama's latest attack on me and what's happening with his presidential campaign. Stay with us.

As Boeing steps us its campaign to stop the outsourcing of our defense, Senator Maria Cantwell joins us, a leading opponent of that Pentagon decision to buy European aircraft over American.

And are middle class still reeling from our mortgage crisis? I'll be joined by the chairman of the financial services committee, Congressman Barney Frank. He'll be with us next. Stay with us. We're coming right back.

(COMMERCIAL BREAK).

DOBBS: Boeing has filed a formal protest against the U.S. Air Force's decision to award a $35 billion contract to European consortium building Airbus rather than award that contract to Boeing. Outraged lawmakers on Capitol Hill now say this contract sells out American workers and outsources our national security.

Christine Romans reports.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT: Air Force Secretary Michael Wynne defended outsourcing the $35 billion contract for new aerial refueling tankers.

MICHAEL WYNNE, AIR FORCE SECRETARY: I think it was a fair and open competition, very transparent. Lots of feedback to the offers of record and done in a legal way.

ROMANS: Opponents of the deal say the losers are Boeing and American workers. The winners, European consortium EADS and its American partner, Northrup-Grumman.

At a house defense appropriations hearing, congressmen blasted the Air Force.

REP. NORMAN DICKS (D), WASHINGTON: So I urge you to go back and start over.

ROMANS: The Air Force awarding this lucrative contract the same time the U.S. is suing EADS before the WTU for unfair trade subsidies.

EADS says it simply builds a better tanker.

Boeing asked for an investigation by the Government Accountability Office. "We have fundamental concerns with the Air Force's evaluation." Boeing called the EADS tanker, "higher risk, higher cost airplane that's less suitable for the mission."

Democrat Norm Dicks of Washington says the evaluation was flawed.

DICKS: We were mislead. We thought you wanted a medium sized tanker. And this committee, you testified here, how can you explain the difference in what happened? We went and did what you said we would never do and that's buy big tankers. Can you understand why we feel we were misled?

WYNNE: Sure. I can fully understand.

ROMANS: Parts of the tankers will be built overseas, the engines in the U.S. and then all pull together here.

(END VIDEOTAPE)

ROMANS: Republican Todd Tiahrt of Kansas called it unfair outsourcing of our economic and national security but Senator Jeff Sessions is a champion of the European win because the 179 tankers will be assembled in his home state of Alabama, Lou.

DOBBS: Assembled, the little parts put together.

And Senator Sessions I understand it Northrup-Grumman, its employees sitting in Alabama, I want them to have jobs. I want them to have work, too. Why in the world should they be a junior partner to the airbus consortium? It makes no sense.

ROMANS: The question is how many jobs are going to be created here? How many are going to be created in Europe and how many would have been created with the Boeing deal and that's what folks are really fighting over right now.

DOBBS: That and the fact that it is straightforwardly outsourcing our national security.

Christine, thank you very much; Christine Romans.

Senator Maria Cantwell of Washington says the decision to outsource the Air Force contract to a foreign company has serious implications for our national security as well as our economy. Senator Cantwell is asking the Government Accountability Office to consider all of the implications of this deal. And Senator Cantwell joins me tonight from Capitol Hill.

Senator, good to have you with us.

SEN. MARIA CANTWELL (D), COMMERCE CMTE.: Good evening, Lou.

DOBBS: I've described the decision as completely and utterly idiotic. Can you tell me why in the world this decision should stand? What will you do to fix it? How soon can you get it straightened out?

CANTWELL: Well, I'm glad that Boeing officially filed the protest today. That's step number one.

I think the report that you just had shows two issues about national security. Why did they go with this plane particularly when there might be important national security issues to keeping and maintaining a skilled U.S. work force? How did they pick this larger plane that's less fuel efficient when oil is over $100 barrel? I think that's what Congress wants to hear the answers to.

DOBBS: You know I understand that and by the way, I agree with you. The fact that Jim McNerney, the CEO of Boeing, decided to formally protest and stand up for that company. It's tough these days because of the politics, and I think you'll agree with this. I want to be sure. Senator Cantwell, sit not tough right now for a CEO to stand up for his or her company and to speak without the support of the senate, the congress, the president, the chamber of commerce in these days usually the voice of business? I mean it took some guts for him to protest the way the climate is.

CANTWELL: You're absolutely right, Lou. Never has the Boeing Company filed a protest. This is the first one. It took a lot for them to step up and say yes, we think there is something wrong with this decision. I'm proud that they are moving ahead to get the answers that the American people want about this decision.

You heard my colleague, Norm Dicks, talking in the hearing about why did they go with the larger plane? Boeing met the requirements in the RFP and this is the plane that they said they wanted. If they wanted a bigger plane, they should have issued that kind of RFP.

DOBBS: Well, I think I'd want more - I'd have to say you all are a lot more polite than I would be if folks had misrepresented the facts the way the U.S. air force did to that committee.

Senator Cantwell, we wish you luck. It's critically important to the nation as well as to Boeing aircraft. Thank you very much.

CANTWELL: We're going get the answers from GAO and I think we're going to win on the facts, Lou.

DOBBS: Go get them.

CANTWELL: Thank you.

DOBBS: Thank you Senator.

Up next here, help could be on the way for millions of American families who are faced foreclosure. Congressman Barney Frank joins us to tell us his plan.

And the pressure is mounting on Governor Eliot Spitzer to call it quits. I'll be talking with three of the country's top radio talk show hosts about a great deal of activity in this nation today as well as the good governor's fate. Stay with us. I'll be right back.

(COMMERCIAL BREAK)

DOBBS: Millions of middle class Americans and those who aspire to the middle class now face the prospect of losing their homes. The House Financial Services Committee is drafting legislation that would provide aid to many Americans who are facing the prospect of foreclosure. Congressman Barney Frank is the chairman of that committee and he joins us now.

Mr. Chairman, good to have you with us.

REP. BARNEY FRANK (D), FINANCIAL SERVICES CHAIRMAN: Thanks Lou.

DOBBS: Is there real likelihood that we're going to see the millions of Americans who face foreclosure receiving help as a result of your committee, your proposal? FRANK: Yes, there is. There are two problems we're facing. One is and I know you would appreciate this Lou because you've been very good on this issue. We want to do what we can for the borrowers who may have been a little imprudent but certainly not criminals and in some cases were deceived. We don't want to be providing any financial help to the irresponsible lenders. So we're trying to find a way to keep people many their homes without rewarding people who made loans and bought loans that shouldn't have been made.

Secondly, we've confronted the kind of a reflex in the Bush administration that says we'll leave everything to the market. Unfortunately we did and that's what we got, the sub prime crisis in this case from the market.

I think finally the reality of the serious crisis we face, the job losses last Friday have persuaded a lot of people we have to move. Because and let me just finish with this, it's not simply the victims. The victims aren't simply the people whose homes would be foreclosed, even if you don't want to help them. If we don't do something about this, the whole economy continues to founder.

DOBBS: If people don't understand by this point that it's a very serious and pervasive issue, crisis, that you are contending with and that we're all going to experience, I don't know what to say.

I do want to point out, if I may put up this full screen, the comments from 17 other house Republicans to President Bush and Treasury Secretary Paulson urging them to oppose any kind of so called taxpayer funded bailout. "While our economy is facing an entirely different challenge today, the core of that sentiment remains the same. The American free market economy remains resilient."

I want to salute the resilient American economy, I want to say to every congressman, I would hope to get through to everyone in that town. This is not about Mr. Market being happy. It's a little more complicated and the responsibilities of our elected officials are far more profound.

FRANK: Absolutely. By the way, those Republicans, those who were in the house at the time, are exactly the ones that opposed our doing anything to do reasonable regulation to prevent this crisis from happening, who opposed us putting in some rules that would have stopped these mortgages from happening.

The other thing, when you ask about the likelihood, you said 17. There are 200 house Republicans. They can't even muster frankly a significant number of their own. I'm a great free market supporter as you are but those of us who understand the free market understand that it doesn't exist best with no regulation whatsoever. And in fact, look one of the problems we have in the economy is people afraid to invest. They're afraid to invest because they've seen so many things go bad.

DOBBS: Congressman Barney Frank, Mr. Chairman, we appreciate you being here. We wish you all the luck in the world. You're doing a very effective job, if I may say so, providing some oversight on a marketplace that has been desperately in need of it for some time.

FRANK: Well it's not always people say may I, and I'm glad you did, and of course you may.

DOBBS: Thank you, sir.

Up next, we're expecting results in the Mississippi primary in just a few minutes. We'll have the latest for you.

Also ahead, Governor Eliot Spitzer apparently trying to hang on mounting calls for his resignation. I'll be talking with our panel about a host of issues including a prominent Democrat playing the race card. Three of the top radio talk show hosts join me next.

Stay with us. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: Joining me now on this primary Tuesday evening, in Chicago, Steve Cochran, WGN. There he is.

STEVE COCHRAN, WGN TALK SHOW HOST: Hello, my friend.

DOBBS: Good to see you partner. And here in New York, Mark Simone, WABC Radio here in New York City. Mark, thanks for being here. And radio talk show host and CNN contributor, Roland Martin. Roland, good to see you.

ROLAND MARTIN, CNN CONTRIBUTOR: Likewise.

DOBBS: I like that, what do you call it, the pocket square?

MARTIN: Yes, I figure we have a little color on the set here.

DOBBS: You better believe it. And what are you doing out there, Cochran? You know you're looking for like a purple shirt or something.

COCHRAN: We're considering pocket squares here in Tribune but we haven't actually got a good budget right now.

MARTIN: They don't wear them, it doesn't matter.

DOBBS: Well let me ask you this. Steve, I know it's got to be a burning issue in Chicago, Eliot Spitzer, should he resign or should we just overlook the fact that there are a few little issues?

COCHRAN: Like all of you, I'm shocked that we're disappointed in another politician. I did not see this coming. Listen, we should probably just go to the standpoint where we have no expectations then there's a chance we'll be pleasantly surprised. But I was disappointed last night right here on CNN Alan Dershowitz was talking about how this is no big deal and we over think sex in this country and it wouldn't be a big deal on the headlines of any other major papers. It's world news all over. And the bottom line is everything is not OK. People get hurt when you do stupid things. Power corrupts. Absolute power makes you stupid. Spitzer needs to go not just for his family because he needs to repair but he also needs to go for the people of New York.

DOBBS: I talked to Alan Dershowitz and one of the things we have to remind people is that Eliot Spitzer, Mark Simone, was research assistant to Alan Dershowitz. He's not a dispassionate on all of this.

MARK SIMONE, WABC RADIO: Yes there's a long history. You know I feel bad for the prostitute. She's now been linked to Eliot Spitzer.

DOBBS: But only as client number nine.

SIMONE: Nobody has gotten to this question, I don't know what these sort of things cost. You'd think I would but I don't. $4300? Talk about wasteful government spending.

MARTIN: It was $5,000 an hour, but he had some credits so he must have had a good FICO score.

COCHRAN: He had a coupon. It was a two for one.

DOBBS: Let's turn to.

MARTIN: 83 bucks a minute, Lou.

DOBBS: You worked that out. You're the only person I know ...

MARTIN: We talked about it on WVON this morning for two and a half hours.

DOBBS: What were those call letters?

MARTIN: WVON in Chicago.

COCHRAN: It's a fine radio station by the way.

MARTIN: 83 bucks a minute, which means no foreplay, sorry, get it on.

DOBBS: Let's bring the discussion around if I may to the tanker aircraft, speaking of outrages. The idea that this government, this Air Force, would give the contract to the European consortium that builds airbus. Is there any point where we say enough is enough of this government?

SIMONE: Absolutely. Apparently they've had lobbyist working for them. You would think these lobbyists could find enough American corporations to represent. You know getting a foreign contractor maybe it's all right here and there because we certainly get foreign contracts in here but when it comes to defense, when it comes to our own weapons, this has to be something we control. We can't depend on anyone else for that.

MARTIN: That's the real question I have. Is the issue that it's a defense contract because we do have American companies that frankly do business in other countries. And so the question is are we only angry about just this contract or are we looking for Congress to pass a law that says if there's any defense contracts, it should be limited to American companies.

DOBBS: I want to take it all the way. I want to hear Steve Cochran's view on it.

COCHRAN: What about the pure symbolism of it? I mean obviously businesses are entitled to do business in other parts of the world and throw away middle class jobs. They're getting pretty good at it but the fact is, when it comes down to American defense and we're a little sensitive here because Boeing is in Chicago. Does anybody sit in a meeting and say, well, this may look bad. Maybe we should just have our defense contractors mostly having their business done here in the states. It's just stunningly stupid.

SIMONE: If anybody's technology is better than ours, that's a real problem, if they have better technology in this area.

DOBBS: Yes. On defense issues, it gets to be problematic.

We're going to be back with our panel in just a moment and we'll be getting some results in from that Mississippi primary.

Stay with us. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: We're back with Steve Cochran, Mark Simone, and Roland Martin.

Steve Cochran, real quickly, this is what Barack Obama had to say about me today. Can we play that since you're in Chicago?

COCHRAN: Yes, sir.

OBAMA: Talking about how we need to send them all back. We're not going send them all back.

DOBBS: Senator Obama there, what do you make of that?

COCHRAN: Well, I think you guys hit it on the head a little earlier. Because of the trouble he's had with the Hispanic voting block, there's a little bit of panic setting in to some extent and you know honestly the thing that really is a little disturbing about Senator Obama, he's better than that. He needs to start acting like the front-runner. He got a little bit of a frightened look yesterday when Hillary tried to make him the vice president. He doesn't seem to have the front-runner mojo that he had a week ago. But fear mongering doesn't do anybody any good and that's as you well know Lou Dobbs, that's the entire center of this immigration debate.

DOBBS: I mean they are really driving at the left and the right trying to stop debate, misrepresenting my position. The heck with Senator Obama. What do you think, Roland Martin? MARTIN: It's called playing to the audience. That's frankly what candidates often do and as you said, you have to get the facts right. If you say somebody called for something and they didn't, it's called a factual error.

DOBBS: You know what I would call it, don't you?

MARTIN: This is cable but not that cable.

COCHRAN: You either solve the problem or you demonize the whistle blower and in that case it's you. So and he's the same guy that's going to start talking about port security at some point. The phrase is port and border security, leaving the borders open and worrying about the ports, that's like locking the door and leaving all the windows open.

DOBBS: And I've got to tell you. This is his second round with me and that's it. When he starts distorting my position and he knows better. He really brings a lot of questions to mind about the quality of his candidacy certainly for me.

Roland Martin, good to have you here. Mark Simone, good to have you here. Steve Cochran, good to have you there. We appreciate it.

COCHRAN: All right my friend. Gentlemen, be well.

DOBBS: The results of our poll tonight. 48 percent of you say Senator Obama is intentionally misrepresenting my position on illegal immigration and I guess the rest of you are going to give him the pass. I'm not.

Our election coverage continues right now. Here comes Wolf Blitzer.

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