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Senate Passes Wall Street Reform Bill; Republicans Running Away From Rand Paul?

Aired May 21, 2010 - 16:00   ET

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


RICK SANCHEZ, CNN ANCHOR: Welcome back.

Wall Street reform? Looks like it's going to be a go. Now, did that have anything to do with what is going on in the market today? Probably not.

But let's check with Stephanie Elam and find out.

What is the deal?

STEPHANIE ELAM, CNN CORRESPONDENT: Yes. Well, Rick, it had something to do with it, because we saw bank stocks start to rally after -- after we did see that this made it through the Senate here on this -- this whole idea of protecting Americans from unfair lending practices.

So, we saw that playing into the markets. But, really, today, Rick, the markets were all over the place.

SANCHEZ: Yes.

ELAM: At one point, we were down by as much as 150 points, and then we're -- actually closed today --

(LAUGHTER)

ELAM: -- right around session highs --

SANCHEZ: That's weird.

ELAM: -- at 10194.

SANCHEZ: Well, that -- that --

ELAM: The number is still settling out.

SANCHEZ: That's strange.

ELAM: Yes.

SANCHEZ: I mean, I woke up this morning and I heard the people like yourself screaming about how this was going to be one of the worst days in the world, because, oh, my God, look at the Sidney stocks and look at New Zealand and --

(LAUGHTER) SANCHEZ: -- look at Asia, and look at Singapore, and they are all down, so you can only imagine what is going to happen here.

ELAM: It's a nervous market.

SANCHEZ: What happened?

ELAM: It's a nervous market, Rick, things -- lots of things can happen.

Also, there is one other thing I need to point out, though, that there are these things, these contracts that were expiring today, so that added to the volatility that we saw in the last hour of trading. That would happen normally. It was exacerbated by all the things that are going on with the euro, with what is going on as far as the Senate and the House and this consumer protection, all of that feeding into the market today.

But, overall, it's nice to see that we are up 1.25 percent --

SANCHEZ: Got --

ELAM: -- for the Dow, Nasdaq up more than 1 percent for the day --

(CROSSTALK)

ELAM: -- after yesterday, when we dropped 376 points --

SANCHEZ: Thanks so much --

ELAM: -- on the Dow.

SANCHEZ: We appreciate it. We will be looking for you tomorrow. We will be looking at the market as well.

Give me a two-shot, if you would, Dan. I want -- I want to show folks that Erick Erickson is in the house.

Now, we have tried to call -- I want you to know. I want to be on the record. I want to be transparent. We have tried to call probably 50 different people today to come on to talk about Rand Paul. We could not get anybody. We -- we could not get people to talk about Rand Paul.

But here is Erick Erick -- Erick Erickson. And he is going to take us through -- defend -- should I say defend?

ERICK ERICKSON, CNN CONTRIBUTOR: The price of being a CNN contributor.

(CROSSTALK)

(LAUGHTER)

SANCHEZ: Yes. That's because we're paying him.

(LAUGHTER)

SANCHEZ: Stay right there. This could be good. We're going to argue, all right? We're going to argue about this one.

We will be right back.

(BEGIN VIDEOTAPE)

SANCHEZ (voice-over): Here's what's on your LIST today:

RAND PAUL (R), KENTUCKY SENATORIAL CANDIDATE: A major news network yesterday, they were reporting that I was for repealing the Civil Rights Act. That is an out-and-out lie.

SANCHEZ: Another apparent gem from Rand Paul. He's criticizing President Obama for criticizing BP. From Paul on the spill -- quote -- "Sometimes, accidents happen."

UNIDENTIFIED MALE: The bill as amended is passed.

SANCHEZ: That was quick. Financial reform passes in the Senate overnight.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: So, it's a strong day for America.

SANCHEZ: Unlike health care, reconciliation should be easy, or will it be?

Some reporters who covered Richard Blumenthal say he's getting a bum rap.

UNIDENTIFIED MALE: I keep finding myself stumbling over the phonies, the people that make the false claims.

SANCHEZ: This decorated and real Vietnam combat veteran will respond live.

DAVID HARPOLE, PUBLIC AFFAIRS DIRECTOR, LYONDELLBASELL: Again, I have other media that are standing by. I have to address them at this point.

Thank you.

SANCHEZ: And it's Friday. That means it's time for the plays of the week. Wait until you see this list.

The lists you need to know about. Who's today's most intriguing? Who's landed on the list you don't want to be on? Who's making news on Twitter? It's why I keep a list.

Pioneering tomorrow's cutting-edge news right now.

(END VIDEOTAPE)

SANCHEZ: Welcome back. I am Rick Sanchez. Here we go. Erick Erickson is in the house. So, we're going to have some fun. Time to have fun to pick up the pace of today's LIST, for those of you who are just now checking in.

Number one: Are Republicans running away from Rand Paul? Well, we -- we called Michael Steele. He won't join me to discuss Rand Paul on this show. We have asked the RNC to come in and give us anybody, just said, just send us a representative to get your perspective on Rand Paul's comments and Rand Paul as a candidate. They won't.

So, we called the Libertarian Party, called the chairman of the Libertarian Party. They didn't want to come on. We called the Cato Institute, which is a libertarian think tank. And they usually are more than happy to come on and talk to us. But they did not want to come on and talk about Rand Paul or the comments that Rand Paul has made over the last 48 hours.

So, I'm making you feel like you're all we have left.

(LAUGHTER)

SANCHEZ: I don't mean it like that, OK?

ERICKSON: No, no, that's OK.

SANCHEZ: I don't want you to feel like you are not loved. Erick Erickson is joining me now. He's a CNN contributor and editor of chief of conservative Web site RedState.com.

By the way, he had to be here, because we are paying him.

ERICKSON: There you go.

(LAUGHTER)

SANCHEZ: Listen, is -- because of what I just said, all these people don't -- are uncomfortable talking --

ERICKSON: Right.

SANCHEZ: -- about Rand Paul. Do you feel like the establishment and certainly the GOP is kind of going like this on this Rand Paul thing?

ERICKSON: Right.

SANCHEZ: Do you feel like that is --

ERICKSON: You know, I think there are two issues.

Some of the groups, I think they did not want him to begin with and fought desperately not to have him. They wanted the comfortable establishment pick. Some of the others, though, I think, they just don't want to keep the story perpetuating what a lot of them feel like really shouldn't be a story.

SANCHEZ: But it's his story. ERICKSON: Yes.

SANCHEZ: He's creating the storyline, right?

ERICKSON: Yes. You know, this is what you get when you -- everyone says they want a man of the people to be a politician. They want Joe the butcher to leave the butcher shop and run for office.

(LAUGHTER)

ERICKSON: Well, Rand the eye doctor left the eye doctor shop and is running for office. Now people are like, holy cow, he is not a professional politician.

(LAUGHTER)

SANCHEZ: You wanted Joe the butcher, you got Joe the butcher.

ERICKSON: There you go.

SANCHEZ: Or maybe John the butcher.

All right. Could this be part of his problem? His thinking on this is every man's thinking: I don't want the government involved in my business.

ERICKSON: Right.

SANCHEZ: I don't want the government telling me what to do. I want less taxes. I mean, all these things are very popular.

ERICKSON: Right.

SANCHEZ: And who is going to disagree with that stuff?

But, in practice, those things become problematic, just like -- look, I was born in Cuba. I know enough to tell you that, if I read you the Communist Manifesto right now, as Marx and Engels put it together, it sounds beautiful. Guess what? Doesn't work.

ERICKSON: Right.

The problem is, Rand Paul is not a sound bite candidate. He's nuanced. He's in-depth. He's a philosophical candidate. Philosophy does not track in a 30-second sound bite, so he gets mired in the weeds.

And for all the talk we have had over the years about wanting a politician who actually speaks his mind and isn't just a sound bite politician, here we have got him and he doesn't work so well in a TV age.

SANCHEZ: Well, but help us understand what his thinking is on this. When he says that the government doesn't have the right to tell a private businessman that he can't serve black people, what does he mean by that? ERICKSON: I think he means what he said. And I don't think it's a defensible comment, because while I get that his issue is that this came from -- when Congress passes the Civil rights Acts in 1964, they used the Commerce Clause.

SANCHEZ: Right.

ERICKSON: They didn't use the 14th Amendment.

I think, if you were to ask Rand Paul, if they had used the 14th Amendment, would you be OK with it, he would say yes.

SANCHEZ: Yes. Yes.

ERICKSON: But it's the Commerce Clause. And that gets to his larger limited government point, that we have got these 17 things in the first article of the Constitution that Congress seems to be oblivious of --

(CROSSTALK)

SANCHEZ: Do you think he's right? I mean, to a certain extent, or in a general way, does the government need to back off the backs of businesses and tell them -- stop trying to tell them what they can or can't do on issues like this?

ERICKSON: Well, on the race issue, no, because I think there is a 14th Amendment that is very clear that we, as a society, have decided the federal government has a role to play in making everybody gets along, regardless of race.

SANCHEZ: Right. And it's necessary.

ERICKSON: Yes.

SANCHEZ: And it's necessary.

ERICKSON: Right. Oh, yes.

SANCHEZ: It wouldn't have happened if we hadn't made it law. Do you agree?

ERICKSON: Exactly. Yes. It would have been a much bigger issue.

On the larger issue, though, of the federal government knowing its place, I think Rand Paul is on to something that resonates with people that --

SANCHEZ: Oh, sure.

ERICKSON: -- we do have a burgeoning federal government. We have got 50 states. And the way the Constitution was arranged is that the states said, we will give them a limited amount of power.

But --

SANCHEZ: But you have got to be careful when you go out and start telling people that the government is wrong to tell you what to do.

I'll tell you why. Show me that -- show me that picture, if you have it up now there, Dan. I want the folks at home and I want you, Erick, to look at this.

You see that right there? Do you recognize -- I know you are at a distance, aren't you?

ERICKSON: Yes.

SANCHEZ: Do you that, recognize -- do you recognize that guy right there with the glasses, that little guy with the glasses, the bald head?

ERICKSON: Who is that?

SANCHEZ: That's Lester Maddox.

ERICKSON: There you go.

SANCHEZ: You remember Lester Maddox.

ERICKSON: Oh, yes.

SANCHEZ: You're a Georgia guy.

Lester Maddox has got -- has a gun in his hand.

ERICKSON: Mm-hmm.

SANCHEZ: The other guy over there holding that axe is his son.

ERICKSON: Mm-hmm.

SANCHEZ: They chased a black man away from his establishment that he owned.

ERICKSON: Right.

SANCHEZ: Lester Maddox, after having this picture taken, after being seen chasing a black man away from his restaurant, was elected governor of the state of Georgia.

ERICKSON: Yes, and you know, that --

(CROSSTALK)

SANCHEZ: So, that tells -- that should -- that is very -- that's a very telling picture. What that says to me is, no, discrimination and certain things will not self-correct.

ERICKSON: Right.

SANCHEZ: You need the government to step in.

(CROSSTALK) ERICKSON: I live down in Macon. There was a great neighborhood in Macon called Pleasant Hill. Little Richard was born there. James Brown was born there.

In the 1950s, the Department of Transportation, building the -- building the interstate, they leveled the black community because it was white people in charge. You've got have -- there is a government role there to deal with racial issues.

Now, the question becomes over time, do we need less and less government involvement? We see these stories all the time --

(CROSSTALK)

SANCHEZ: On a case-by-case basis, yes.

ERICKSON: -- yes, about college students segregating themselves and the universities being up in arms.

People like to be around people like themselves. But, at some point, the government does have a role to play. And we can't deny it.

(CROSSTALK)

SANCHEZ: Well, and sometimes you have to be careful with the words and the causes you take in.

For example, today, he is taking on President Obama. OK, you would expect he would take on the president.

ERICKSON: Yes.

SANCHEZ: He is kind of an opponent. But he is defending BP.

ERICKSON: Yes.

(CROSSTALK)

ERICKSON: And, you know, I agree with him on this issue.

SANCHEZ: Do you?

ERICKSON: Yes. I think the president's rhetoric to BP has been much harsher than it has been to Iran or North Korea. I wish he was as upset with --

(CROSSTALK)

SANCHEZ: You are not denying that BP has screwed up?

ERICKSON: Yes. You know, accidents happen. And --

SANCHEZ: But this is more than an accident. They did not do the paperwork. They did not do it in a timely fashion. They did not take the tests. They screwed up some of the rig recommendations.

ERICKSON: Yes. Look --

(CROSSTALK)

SANCHEZ: They fooled around with regulators, according to a couple of whistle-blowers. I mean, there are some --

ERICKSON: There's a lot of blame to go around there.

But I what think Rand Paul's point is, from -- based on what I heard him say today and what I think is, is that we are at a point in this country where we demonize job-creators much more than anyone else. We -- we bash Wall Street. We're all -- Wall Street has sinned. Everybody sins. We bash banks.

Let's not deny as well, though, that they create a lot of jobs in the country. Why is it that we -- we feel comfortable bashing job- creators?

(CROSSTALK)

SANCHEZ: Maybe it's a question of level or just how much.

ERICKSON: Yes.

SANCHEZ: Thanks for coming in.

ERICKSON: Thank you.

SANCHEZ: You were the one brave, courageous soul who was willing to come --

(CROSSTALK)

(LAUGHTER)

ERICKSON: I'm glad to.

(LAUGHTER)

SANCHEZ: Thanks so much.

Take a look at this, folks.

(BEGIN VIDEO CLIP)

RICHARD BLUMENTHAL, CONNECTICUT ATTORNEY GENERAL: On a few occasions, I have misspoken about my service. And I regret that, and I take full responsibility.

(END VIDEO CLIP)

SANCHEZ: Richard Blumenthal repeatedly said, "I served in Vietnam," when he did not. That's got to rankle honest-to-goodness combat veterans. And guess what? It does. A highly decorated veteran from Vietnam, a real combat veteran, takes issue with Blumenthal. He's going to be here with me. That's ahead. And while we're showing you live video of that underground oil gusher in the Gulf, BP is getting ready to try its next fix, a mud injection. Who comes up with these names?

That's next. The leak continues. And so does the LIST, RICK'S LIST, after the break.

(COMMERCIAL BREAK)

(BEGIN AUDIO CLIP)

CALLER: Hi, Rick. Toni (ph), originally from New York, but now in -- in Florida.

And it won't be for long if that -- that goop hits our ocean. Then I will be leaving, because I came here to be on these gorgeous beaches of Florida. OK. Kevin Costner has the right idea. Get those Kevin Costner machines. Start making them. Start using them.

They're not pouring chemicals into our oceans. We don't know what kind of effect this is going to have on the fish life.

(END AUDIO CLIP)

SANCHEZ: The voice of America. You have got to love that. Welcome back. I am Rick Sanchez.

Now time for this list, the roundup list. Let's get through it

Number one, the nastiest real-time image you will see on the Internet today, and that is saying something, this live shot of the crude oil gushing into the Gulf of Mexico all day, all night. BP's making this image available. Globs of that oil have reached the shore of Grand Isle, Louisiana.

And officials are saying the oil looks like some kind of melted chocolate. The public beach there is now closed as a result. And we will keep following this. And you can follow on your own, by the way.

Also, number two, perp walk. That's Wanda Barzee. She is on her way to begin a 15-year federal prison sentence for kidnapping teenager Elizabeth Smart in 2002. It is a plea deal. Barzee has agreed to testify against her husband, who is also charged with kidnapping and sexually assaulting Smart and holding her for nine months.

Can you think of anything more horrible than that?

Number three, look hard. Somewhere in that blinding Chinese sandstorm is Secretary of State Hillary Clinton. She arrived in Shanghai a short time ago, where her itinerary has changed a bit. Economic talks are taking a backseat to North Korea. Mrs. Clinton told reporters in Tokyo that the response to North Korea's apparent sinking of a South Korean navy ship necessitates a -- quote -- "international response" -- stop quote.

She wants U.N. Security Council action against Pyongyang, with China's support.

(BEGIN VIDEO CLIP)

SANCHEZ: Was that guy for real? I mean, you can't make this stuff up.

What? What? What?

(END VIDEO CLIP)

(LAUGHTER)

SANCHEZ: Those are my editors having fun at my expense. I'm going to tell you what the heck happened and why it made this, the plays of the week. Which category does that one fall in, by the way?

(LAUGHTER)

SANCHEZ: That's ahead.

Also, what has got this Tea Party so mad that he said Islamic terrorists worship monkey gods? Monkey gods. There is a place on a list for people who say things like that about other people's religions. That's next.

(COMMERCIAL BREAK)

SANCHEZ: If you are not quite sure of what you are talking about, then why are you talking about it?

Time for the list you don't want to be on.

Mark Williams is a radio-host-turned-Tea-Party-leader who is suggesting Muslims worship monkeys. That's right, monkeys. Williams is outraged about the site of a new mosque in New York City, because it's near Lower Manhattan and the site of the World Trade Center.

So, here's what he wrote on his blog last week, that the mosque will be a monument for the worship of the terrorist' -- quote -- "monkey god and a cultural center to propagandize for the extermination of all things not approved by their cult."

Muslim leaders around the country are condemning Williams, including the Council on American-Islamic Relations. They want an apology and for the Tea Party to join them in condemning him. That's what they want. They want to reach out to the Tea Party and get them to say, we don't agree with people who say stuff like that.

By the way, Williams is not apologizing to Muslims. Now, Mark Williams calls religion practiced by more than 1.5 billion people in the world a cult. And he calls their prophets monkeys or a monkey? A brand of bravado that seems very easy from his vantage point, but not so easy for people like our troops who are fighting overseas.

In fact, it's the type of language that some U.S. military officials suggests ends up getting our troops killed when people do stuff and write stuff like that. That's why Mark Williams is number one on the list that you don't want to be on.

(BEGIN VIDEO CLIP)

(SHOUTING)

(END VIDEO CLIP)

SANCHEZ: You are looking at Bridgeport, Connecticut. This is a city council smack down, all over raw sewage? That's ahead. It's wild. It's pretty incredible video. But it is not the hottest political story of that state. No.

That honor goes to Richard Blumenthal, still getting heat for fudging his military background. What do real combat veterans have to say about this candidate's apparent lie? The latest from our embattled politicians list, that's coming up next.

(COMMERCIAL BREAK)

SANCHEZ: This is a story which has fascinated us from our follow-up list.

For the first time in more than a month, there is word today from Thailand that the streets of Bangkok are perfectly quiet. But this is what it looked like early this week. And I should have said for more than a week, by the way.

This is early this week, right? And this is also from part of last week, when a band of anti-government rebels took to the streets to defy the Thai military. Now, look at these pictures. And, as you watch these pictures, you should know that there is a story behind this story.

And, in some measure, it involves this newscast, right here, RICK'S LIST, because I understand that some people in Thailand took umbrage at some of our reporting on this very complex situation that most, I should say, dared not discuss.

Joining me now is John Raedler, who was a CNN bureau chief for a while there in Bangkok.

Let me tell you how I came at this. I came at this story this way. I saw a story and it was being covered on all the networks, all over the place, but all I kept seeing was video of bombs going off, buildings on fire, and then copy that seemed to read something about anti- government forces are clashing with government forces in Thailand. We're going to be watching it for you.

And I kept thinking to myself -- John, I kept thinking, there has to be more to a story than this. There has to be some nuance here. What is really going on? And this government -- is this government about to go over? Is this the beginning of a revolution?

So, I did a little digging and I found out that they have a very complex government situation with a beloved king, but they are not quite sure where the government is going to be going in the future, and that this disturbance may not really play into it that much.

Was I wrong?

JOHN RAEDLER, CNN SUPERVISOR OF INTERNATIONAL NEWSGATHERING: Well, I think Thailand is in a fascinating transition, from what used to be an absolute monarchy to a constitutional monarchy and democratic governor. Now --

SANCHEZ: The king is loved. They love the king.

RAEDLER: It's difficult, I think, for people outside Thailand to comprehend the high level of reverence that King Bhumibol and his family enjoy amongst Thais in Thailand and Thais around the world. And the important thing about that is, the reverence in which they hold him is very genuine.

The royal family is protected by laws. You can't insult the royal family there. But I have always believed from my time there that, if they did away with those tomorrow, nothing much would change. You would still have a highly revered man in King Bhumibol, the longest reigning monarch in the world, who has devoted his life to the betterment of his country and his people.

SANCHEZ: But here we are, a newscast here in the United States, that aired between 3:00 and 5:00 Eastern time, where we talked about the king being revered, as you say, but I mentioned that his son may not be as revered. In fact, many criticize him.

And the term I used to describe him is a term that here, culturally, in the United States, would be considered, OK, I get it, but, over there, they don't even want you talking about him in general and certainly not talking about him in critical terms.

RAEDLER: Well, as I say, because of the king's high reverence amongst the populace, and not just Thais in Thailand, but there are many Thais in America who probably saw your broadcast as well, Thais around the world -- because of the king's high regard that they have for him, the whole family shares in that.

SANCHEZ: Deserved or not?

RAEDLER: Absolutely deserved.

SANCHEZ: No, but did -- let's say his son is not as revered as the king himself. Let's say the son has had some questionable characteristics assigned to him. Is no one allowed to criticize him over there?

RAEDLER: Well, under the law of lese majeste that is in place there -- it used to be in place when there were absolute monarchs in Europe, for example. And although it's a constitutional monarchy now, that law is still in place. You cannot injure the reputation of the king --

SANCHEZ: That's interesting.

RAEDLER: -- or the high-up members of the royal family, including the crown prince.

SANCHEZ: It's just the opposite of what we believe. I mean, we believe that's our job. We are watchdogs. We are supposed to criticize Bush and Obama and all these people. It's our job to do that.

RAEDLER: Well, the royal family, though, are not politicians. They are not running for everything. They operate at -- in the system of governance there at a much higher plane than mere politicians.

SANCHEZ: That's fascinating.

And, of course, when we had this discussion, there was no intention of hurting anyone's feelings. So, if anyone's feelings were hurt, we certainly apologize. I mean, we were talking about them culturally, as we speak about our own politicians. And maybe that's where we may have ruffled some feathers.

Thanks for coming in and explaining to us.

RAEDLER: Thais are -- Thai people are very sensitive to the issue, and I think, if you live there and grasp it, you can understand why.

SANCHEZ: Oh, absolutely. In fact, much of the information we got, we got from some Americans who are living there who took us through some of those stories.

But thanks for kind of buttoning it up for us.

RAEDLER: My pleasure.

SANCHEZ: That's great. Well done, John. Appreciate it.

RAEDLER: Thanks, Rick.

SANCHEZ: All right, look at this. This is a gator that wouldn't be a shock to most, well, if it was roaming around, like, Florida. But this is in Atlanta. Are you serious? Yes, we are.

That's next. Stay right there.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back. It's time for our video list, something that, as you know, we call "Fotos del Dia."

As you know, I grew up in south Florida, and I'm used to seeing these animals walking around from time to time or being captured in neighborhoods, even, from time to time. Certainly, you could see a bevy of them if you go off Alligator Alley or 75.

Here's the problem. This isn't Florida. That's why this is news.

This is Georgia. There was this animal caught in Georgia yesterday, wound up in Atlanta. Residents were, to say the least, freaked out. It was near a swimming pool. A wayward gator near the neighborhood pool. Animal control captured the gator, taped it up, and then they shipped it off to south Georgia. Probably Okefenokee Swamp.

All right. Now look at this.

A fight erupts at a Bridgeport, Connecticut, council meeting, and it's all caught on camera. Community activist Cecil Young was complaining about raw sewage. Raw sewage?

Young is known up there for going over the five-minute speaking limit. He did it again, and that's when he and a councilwoman got into a shouting and shoving match. Young has now filed a complaint with police.

And then, there is nothing wrong with your TV or your eyes. They are not deceiving you.

That's right, there is a bridge in Volgograd, Russia. It closed after it began wobbling like a weeble. The bridge opened just six months ago.

It looks like the scenes out of a San Francisco earthquake, doesn't it? You can actually hear it creeking. Isn't that amazing?

The cause of the wobbling unclear, but might involve a vertical support loosening -- that was loosened by some strong river currents.

Stay away.

Also, how does a real Vietnam combat veteran feel about Richard Blumenthal? All right, let's see. We're going to have one on in just a moment, and he will talk about Blumenthal apparently misstating his military record. He's going to join us right here. This is a decorated, actual combat veteran joining us live on RICK'S LIST.

That's next.

(COMMERCIAL BREAK)

SANCHEZ: This is one of the most talked about stories in the news.

Welcome back, everyone, to RICK'S LIST. I'm so glad you're here, so glad that many of you join us every day here about this time.

At the top of our embattled politicians list, something we've been keying in on all week, this guy, Connecticut Attorney General Richard Blumenthal. Today, Connecticut Democrats are expected to endorse him to replace retiring Senator Chris Dodd.

But Blumenthal has been feeling the heat every since "The New York Times" reported on numerous claims he's made over the years, claims about his service in Vietnam. Not during Vietnam, in Vietnam.

You see, he never actually was anywhere near Vietnam. And now he's come forward and said, well, I misspoke on a few occasions. Take a listen.

(BEGIN VIDEO CLIP)

RICHARD BLUMENTHAL (D), SENATORIAL CANDIDATE: We have learned something very important since the days that I served in Vietnam, and you exemplify it. Whatever we think about the war, whatever we call it, Afghanistan or Iraq, we owe our military men and women unconditional support. And we owe it to them not only while they're away, but when they come home.

(END VIDEO CLIP)

SANCHEZ: And again, you heard there where he said, "When I served in Vietnam." Blumenthal was in the Marine Reserves, but it was stateside, here in the United States. Absolutely nothing wrong with that. What he did was respectable, but he was not a combat veteran in Vietnam, as he has alluded to on some occasions.

To be fair, on some occasions he's also stated it correctly. So I don't know.

Doug Sterner helped write a federal law making it illegal to claim to have or wear fake medals, and he's good enough to join us now.

Mr. Sterner, thanks for being with us, sir.

DOUG STERNER, FOUNDER, HOMEOFHEROES.COM: Well, good afternoon, Rick. And I know I speak for thousands of Vietnam veterans when I say we appreciate you staying on this important story.

SANCHEZ: Well, I do think it's important. And I'm also wondering why, when approached or criticized, Blumenthal didn't just come forward the next day and say, "I screwed up and I apologize, I shouldn't have stated that." Just apologize and walk away.

Wouldn't that have been a better way to go about it?

STERNER: It absolutely would have been. And the non-apology that was issued probably angered many of us as much as the initial claims.

SANCHEZ: What motivates -- why would someone -- can you help us understand why some people would do that or need to do that?

STERNER: Well, there's any number of reasons. And, of course, Mr. Blumenthal's claims are probably like driving 70 miles an hour in a 65-mile-an-hour speed limit. Most of my cases are zipping by at 120 an hour.

But what makes this case egregious, of course, is the office that he is seeking there in Connecticut. But many times when you work around veterans, when you do a lot of work in those circles, you get a sense that you're kind of on the outside.

There is a brotherhood among veterans, and especially among combat veterans. And you only get that by having served in that theater. And he may have desired to sense that feeling.

SANCHEZ: But you don't besmirch National Guard guys or Marine Reserve guys, guys who, for whatever reason, did not go over, but felt like, you know what, they contributed in their own way as well?

STERNER: Absolutely. And, you know, I run into a lot of Vietnam-era veterans, and they say to me, "You know, I never got the chance." And that's the word, "I never got the chance to serve in Vietnam. The Army sent me to Germany," or whatever it may be.

So, we needed them back home, as well as we needed troops in Vietnam. Serving is honorable, but if you want to be a Vietnam veteran -- you know, when I enlisted in 1969 and volunteered for duty in Vietnam, there was no waiting list. And if Attorney General Blumenthal had wanted to some day call himself a Vietnam veteran, I have no doubt that the Marine Corps or the Army would have helped him get that wish.

SANCHEZ: One final question. You do not believe that this was something that he simply overlooked or misstated? You would argue, I suspect, that when he started seeing periodicals, newspapers, et cetera, writing that he was, in fact, a Vietnam vet, he should have come forward and corrected them?

STERNER: Whatever his motivation, he lied. And then he failed to apologize for that lie. We can be forgiving, but he won't even acknowledge his fault.

SANCHEZ: Well, Doug Sterner certainly understand Vietnam veterans. He was one of them himself, and now he writes a very important blog that explains to people what it is that you need to do to understand the contributions of Vietnam veterans. And he also calls out -- kind of a watchdog, per se, about people who may try to fake medals or other awards, or say that they have fought in places where they didn't.

And we appreciate you for that, and we appreciate your service as well. Mr. Sterner, thanks for being with us.

STERNER: Thank you. And if you'll indulge me, I would like to wish my wife a happy birthday.

SANCHEZ: Oh, that's great! What's her name? What's her name?

STERNER: Her name is Pam. And it's been a very busy day, and so I've had to overlook it.

But I'll make it up to you on the weekend, Pam.

SANCHEZ: How many years?

STERNER: Well, let me say we've been married 35 years, and she's just a few years older than that.

SANCHEZ: OK. We appreciate it. Thanks again. And congratulations to your wife.

We're going to be right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SANCHEZ: Did the president, did the White House offer you the secretary of the Navy gig?

REP. JOE SESTAK (D), PENNSYLVANIA: And the answer is, I've said I was offered something. I don't have to go beyond that.

(END VIDEO CLIP)

SANCHEZ: Doesn't have to go beyond that. But since then, there's been a lot of controversy. Did the White House try to get Joe Sestak to drop out of the Pennsylvania Senate race?

Well, we didn't get a full answer from the congressman, so we give the White House a try. It's one of our "Plays of the Week." That is ahead.

Also, President Obama got the health care reform that he wanted. Now he's halfway through getting the financial reform that he wanted. It's on our political list and Wolf's list. He's coming up as well.

Stay right there.

(COMMERCIAL BREAK)

SANCHEZ: All right. Here we go.

Wolf Blitzer's standing by now. He's going to catch us up on some of the stories that he's going to be following for us.

And, boy, I'll tell you, that financial reform situation looks like it's going to be a done deal at some point pretty quick here. Huh, Wolf?

WOLF BLITZER, CNN ANCHOR: Yes. Well, the real problem was the Senate, whether they would have the 60 votes they needed, they had the 60 votes. They got it done in the Senate. I assume they'll get it done in the House.

They'll reconcile the versions. The president will sign it into law. They're hoping to do it right around the time of July 4th, which would be a political coup for them.

SANCHEZ: The president met with Chris Dodd and Barney Frank today. In fact, I think we've got some video of them walking over the White House and coming back.

These are kind of his point men on this, huh?

BLITZER: Right, on this issue. They're the respective chairmen of the Banking Committees. They've been working closely together. A little different versions in the House and the Senate. As I said, they've got to work out the differences. But they'll manage to get that done.

So, when you think about it, health care reform, which is a huge deal for the president, now financial reform, dealing with Wall Street, that's going to be a huge deal. So those are two political notches that he's got.

Hey, finally, I understand that you've got a pretty good get on your show today. Now, I wanted to have him, but you got to him before we did. Congratulations. You're my partner and my competitor at times.

I've been following this Rand Paul situation, and, look, I tried to book people to come on the air and talk about it today. Republicans wouldn't come and Libertarians wouldn't come. You're talking to somebody who gladly will talk about it, which is his opponent, right?

BLITZER: Right, the Democratic candidate, Jack Conway. He's the attorney general of the state of Kentucky, and he's more than happy to talk about it.

This is going to be a bitter and tough race, I think, the senatorial campaign, the Senate race in Kentucky. You've got Rand Paul and you've got Jack Conway. They're very different men, very different ideas.

There's going to be a lot of external influence, a lot of external money coming in, a lot of external volunteers. So this is going to be one of those Senate races we're going to watch very, very closely.

I know a lot of people just think its' going to be a GOP state, but you never know. Politics, as we all know and have learned over the years, politics can be rather weird.

SANCHEZ: Well, if it continues the way it started over the last 48 hours, it's going to be a barn burner, in fact. So we'll look forward to doing our job and covering it as responsibly and objectively as we possibly can.

My thanks to you, Wolf. We'll look forward to seeing you on "THE SITUATION ROOM."

BLITZER: Thank you.

SANCHEZ: All right.

When we come back, we call it the "Plays of the Week," and boy, you're going to like this.

We'll be right back.

(COMMERCIAL BREAK)

SANCHEZ: OK. Welcome back to RICK'S LIST.

Before we conclude this newscast, I want to do something for you that's brand new, something we're going to start doing every Friday. I want to show you the list of the most memorable moments from this program, the stuff that made us laugh, made us learn, went viral in some instances, just made us shake our heads and ask, "What the heck was that?"

Number five, Joe Sestak dodging a question from me about whether the White House offered him a job to keep him from taking on Arlen Specter. This got picked up and went all over the country.

Here it is.

(BEGIN VIDEO CLIP)

SANCHEZ: Did the president of the United States, did the White House approach you and offer you the secretary of the Navy position?

SESTAK: I was asked the question about two months ago about something that happened last July. No one ever had asked me the question, "Did someone offer you something to get out?"

I answered it honestly, yes. And then I said stop. I'm not going to get into what was a deal offer because I'm not going to get out for a deal. I'd only get out if it was something that was right to do.

And here is what I believe -- this kind of deal-making in Washington is kind of what soured Americans and, quite frankly, soured me. But I also believe this --

SANCHEZ: But Congressman, hey, look, you know I appreciate you being here, ,and you know that I love having you on my show. But I just asked you a very direct question. Give me a direct answer.

Did the president, did the White House offer you the secretary of the Navy gig?

SESTAK: And the answer is I've said I was offered something. I don't have to go beyond that.

(END VIDEO CLIP)

SANCHEZ: Number four, this is from "Fotos," the sprinter versus the bystander. It speaks for itself.

Hit it, Dan.

(BEGIN VIDEO CLIP)

SANCHEZ: Now, in Stuttgart, Germany, watch this. OK. Now, see the sprinter? Look at that lady right there crossing. What was she thinking.

Look out! No! Get of the way. He doesn't see her and she doesn't see him. They're going to crash!

Oh my God.

BROOKE BALDWIN, CNN CORRESPONDENT: Then he falls on her.

SANCHEZ: What was he thinking? What was she thinking? Oh.

BALDWIN: Oh.

SANCHEZ: Now, listen to the German guy doing the announcing.

(CROSSTALK)

SANCHEZ: Boom! I don't know what it means, but it sounds fantastic.

This was, by the way, an NIA (ph) race that was taking place over there when she wasn't thinking.

(END VIDEO CLIP)

SANCHEZ: That was amazing.

SANCHEZ: Number three: Ari Fleischer. Ari Fleischer joined me here yesterday, as a matter of fact, to talk about this Blumenthal scandal in Connecticut.

He then said, let me tell you, Rick, about the time that I had to go correct President Bush.

(BEGIN VIDEO CLIP)

SANCHEZ: Did you ever do deal with a situation like this either with, you know, President Bush, Vice President Cheney, or anyone on the staff where you had to be the tough guy who had to come up with the bad news and say, do you know what, I'm sorry, but I've got to tell you this, and it's not easy to do, but here you go?

ARI FLEISCHER, FMR. WHITE HOUSE PRESS SECRETARY: You know, one of the best parts of my job was I got to give the president advice. And I remember once when the violence started to really increase in Iraq, and the president gave a speech and he was asked about the violence, and he said, "Bring it on. If somebody wants to take on our troops, bring it on."

And said to the president instantly, "Think, Mr. President, about how that will sound to the mother of a soldier or Marine who's fighting for us in Iraq."

(END VIDEO CLIP)

SANCHEZ: Number two: the two experts on the Arizona immigration law. This is interesting.

I bring in two guys, both experts, both super-informed on this specific law. One of them helped to write it. And when I asked them, "Do we need the law?" Total disagreement.

Listen.

(BEGIN VIDEO CLIP) SANCHEZ: So, what do we need this law for then?

HETHMON: This is going to be --

SANCHEZ: So what do we need this new law for if you just quoted me a law that's already on the books and gives police officers a right to do what we were arguing about here?

HETHMON: Well, here's what -- I'm getting there, Rick. I'm getting there.

What we need this law for -- and it's really a very narrow purpose -- is to end the sanctuary, the so-called sanctuary policies, in Arizona. And that was my understanding of what the sponsor set out to do.

DUPNIK: There is absolutely, in my opinion, no reason for this particular law. It does not give police officers any authority that they don't already have.

SANCHEZ: Wow.

DUPNIK: But it causes a myriad of problems for the police officers because of the way it's written.

SANCHEZ: Interesting. Boy, there's an argument for you.

You guys are totally on opposite ends of the spectrum on this. And like I told --

HETHMON: No, no, no, Rick.

SANCHEZ: Well, yes, you are. I mean, he just said you don't need this law. And you just told me -- you just told me, Mike, that we do need this law. Those are two opposite ends of the spectrum, my friend.

(END VIDEO CLIP)

SANCHEZ: It is.

And by the way, the number one play of the week -- are you ready for this? My kids are still laughing about this. I played this for them at home the other day when I got home, and they were rolling around on the floor.

It happened during a breaking news story during an oil refinery explosion. We get a spokesperson for the company where the oil refinery explosion happened.

He doesn't know if the fire has been put out, even though it had been put out at that time. You'd think he'd know.

Then I started asking him, well, the stuff that's in the air, the smoke that's coming out of the oil refinery, what is it? Is it possibly dangerous to people who may be in the area?

He says he doesn't know, can't give me an answer. And then he gets mad because I asked him the question, he just hangs up the phone.

This is weird, OK? Or at least it was to me. You decide for yourself. Here it is.

Hit it, Dan.

(BEGIN VIDEO CLIP)

SANCHEZ: OK, but the smoke is not as hazardous, as let's say, for the sake of example, anhydrous ammonia, for example?

UNIDENTIFIED MALE: That's all the information that I have at this time. Again, I have other media that are standing by. I'm going to have to address them at this point. Thank you.

(END VIDEO CLIP)

SANCHEZ: Was that guy for real? I mean, you can't make this stuff up. He had absolutely no answers for any of my questions, he barely knew what he was talking about. He said he didn't understand most of the stuff that he was talking about, and then he hangs up.

What?

Those are the "Plays of the Week."

Animation. OK, don't do the animation.

Let's go to Wolf instead.

Here's Wolf Blitzer in "THE SITUATION ROOM."