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Rick's List

Tea Party Victories; Sex Slaves From Mexico, President Obama Announces Small Job Bill to Pass, Comes Down on GOP for Holding Middle Class Taxes Cuts "Hostage"

Aired September 15, 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: To say the very least.

Wolf Blitzer, my thanks to you. I will be talking to you once again in the next hour.

Your next political update, by the way, is in about a half-hour.

Remember, for all the latest political news, just watch us. And if you can't, go to CNNPolitics.com or go to Twitter at Political Ticker.

As we begin this next hour, as we often do, I want to welcome everyone who is watching not only here in the United States, but around the world, especially the men and women who are fighting for us as part of Armed Forces Network, where they're watching us right now.

Here is your national conversation.

(BEGIN VIDEOTAPE)

SANCHEZ (voice-over): Here's what's making the LIST on this day.

The president will speak from the Rose Garden. Does he have a surprise announcement in store?

UNIDENTIFIED MALE: Brought up, smuggled in, immediately forced into prostitution.

SANCHEZ: CNN's special report about a 15-year-old girl's struggle with prostitution.

UNIDENTIFIED FEMALE (through translator): Age 15, 16, 18. A lot of men looking for girls our age, so they kept us very busy.

SANCHEZ: A story told through a family's eyes, it's happening here in America.

Tea Party vs. Republican Party, and, again, the winner is?

CHRISTINE O'DONNELL (R), DELAWARE SENATORIAL CANDIDATE: No more politics as usual.

(CHEERING AND APPLAUSE)

SANCHEZ: O'Donnell, Paladino, you will hear from them both here on RICK'S LIST.

CARL PALADINO (R), NEW YORK GUBERNATORIAL CANDIDATE: You and you and you, we're all going to work on it.

SANCHEZ: How they did it, and why they have Karl Rove fuming mad.

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: And welcome back, everyone. I'm Rick Sanchez. It's hour number two. Time to pick up the pace of today's LIST for those of you who are just now checking in.

There's no question number one issue is politics. And I want to know, as an aside, that I know many of you are tweeting. Hundreds and hundreds and hundreds and hundreds of you are tweeting about the interview I did just a little while ago with Mr. Paladino, the man who won the gubernatorial primary, Republican gubernatorial primary last night in New York.

We're going to play some of that for you moving forward. I know a lot of you are asking to see it because you missed it. You know, it was pretty confrontational at times.

Once again, the Republican mainstream right now has taken a hit in primaries, losing some key races to political newcomers that are endorsed by the Tea Party. In other words, it is not the people they wanted, but it's the people they got.

Longstanding political careers within the party are now being trashed and it seems that no one is immune, not even Karl Rove, Karl Rove, the Bush strategist and the FOX News contributor who many credit with the slash-and-burn style of politics that now seems to be turning on him, ironically enough.

And I'm going to bring you more on that in just a little bit, and I will take you through what is being said by Republicans about Karl Rove.

First, two cases in point that have mainstream Republicans regrouping, Christine O'Donnell of Delaware, Carl Paladino, of New York. Last night, O'Donnell surprised the oddsmakers by winning the Delaware Senate primary. She did it by beating longtime popular Republican Mike Castle.

Now, Castle today says no way will he endorse O'Donnell, absolutely not.

In New York, Carl Paladino won the state's gubernatorial primary, defeating a longtime Republican congressman. And he's going to face -- that's Rick Lazio, by the way -- and now he's going to face Democrat Andrew Cuomo in the fall.

But some headlines today ask, who is Carl Paladino? We got a pretty good sense of who Carl Paladino is just a little while ago, when I -- when he was kind of enough to come on and answer our questions.

so, I want to bring in CNN political analyst Gloria Borger now.

Before we get started, Gloria, did you get a chance to see my interview with Mr. Paladino?

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: I did. I saw some of it. It was quite tense at times, wouldn't you say?

SANCHEZ: I'm sorry. Say that again.

BORGER: It was quite tense at times, wouldn't you say? Pretty interesting.

SANCHEZ: Well, you know, I think my job, your job is to challenge people. I mean, he has positions he's on the record on, and I wanted to ask him about those positions that he's taken, specifically the question of the mosque.

He says that if he becomes governor, he's going to take that property away using eminent domain. I mean, that's what he said to his -- that's what he said to the folks who had voted for him.

So, in fact, let me let you -- the viewers who are joining us now may not have seen that interview, so let's watch some of it together and then I want to get your input on the other side. Here it is.

(BEGIN VIDEO CLIP)

PALADINO: If that zoning board determines that it is an affront in any way to the American people or those memories, then -- then it would be rejected.

SANCHEZ: So, you believe that a government --

PALADINO: The use would be rejected.

SANCHEZ: -- a government has a right to make a decision, a property-rights decision, based on its own sensibilities, how it's affected? How -- how would that stop in the future someone from --

PALADINO: We do it every day in zoning -- we do it every day in zoning law.

SANCHEZ: But what -- how -- but, in this case, you're --

(CROSSTALK)

PALADINO: Zoning laws --

SANCHEZ: But this case, it's a First Amendment argument that you're -- that you're deciding.

PALADINO: No, we're not.

SANCHEZ: Aside from sensibilities, if the Constitution says --

PALADINO: No.

SANCHEZ: -- we have a right to worship as we please where we please, how can you go in and say, I don't want you worshipping --

PALADINO: We're doing --

SANCHEZ: -- that way there because it affects my sensibilities?

PALADINO: I have -- I have clearly said to you that it is my opinion this is not a question of freedom of religion.

SANCHEZ: I'm -- I'm sorry. My producer was talking as you were answering that question.

PALADINO: I'm sorry.

SANCHEZ: So, let me hear that last answer again.

PALADINO: I have clearly -- I have clearly stated that it is my opinion that this is not a question of freedom of religion. It's a question of ideology.

And -- and -- and the people --

SANCHEZ: The --

PALADINO: -- that are proposing this are -- are -- are -- the people that are proposing this are trying to hide behind a -- a sacred right of the American people, the -- the right to freely enjoy their religions.

SANCHEZ: Well, that's an interesting argument.

PALADINO: And -- and they're trying to --

SANCHEZ: But -- but that being --

PALADINO: They're trying to hide behind that, and I reject that.

SANCHEZ: They may very well be, sir. And I understand your perspective.

But what you can't get away from -- and I guess what I would like to ask you, because we have got to get a break in, and we will continue, but maybe it gives us a chance to think about this a little bit -- how do you get away from the fact that there is a constitutional argument here that seems to say that you can't deny someone --

(CROSSTALK) PALADINO: There is no constitutional argument, because it's not freedom of religion.

SANCHEZ: It's not? OK.

PALADINO: If it was freedom of religion, they would put their mosque someplace else --

SANCHEZ: OK. Let's -- let's continue that part --

PALADINO: -- and enjoy their religious experience.

SANCHEZ: Today, we're arguing about Muslims, and it's a perfectly viable argument in that part of New York.

But, tomorrow, we could be arguing about Jews or Catholics or whatever the controversy of the day is. And --

PALADINO: And that's -- that's why you have to take every --

SANCHEZ: -- if you start setting precedent -- I'm sorry. Go ahead. I think you get the gist of my question.

PALADINO: That's why -- that's why you have to take every question on its facts. And that's what we learn in law school.

We learn to take the facts of a specific case, outline the facts, figure out what the issues are, come out with our feeling on it, and give our rationale.

SANCHEZ: Well --

PALADINO: And, when we give the rationale on this, it's -- it's not that difficult to comprehend.

(CROSSTALK)

PALADINO: This mosque is an affront, and we -- I will stand and I will always stand --

SANCHEZ: OK.

PALADINO: -- for the American people.

SANCHEZ: I under -- I understand that, sir.

PALADINO: And I'm not --

SANCHEZ: But, by the way, when you say you will stand for the American people, I think you're saying you will stand for a certain sector of the American people who you believe agree with you, just -- just for the record.

Let me ask you some questions about your positions that people would want to know about.

Same-sex marriage, where do you stand on that?

PALADINO: No.

SANCHEZ: Man -- how do you feel about unions between same-sex couples?

PALADINO: It's fine. I think the -- well, if the definition of unions is what we have right now --

SANCHEZ: Uh-huh.

PALADINO: -- I'm fine with that. I have no -- no anxiety over it.

SANCHEZ: Abortion.

PALADINO: But --

(CROSSTALK)

PALADINO: -- carry it further into -- no.

SANCHEZ: How do you feel -- what is your position on abortion?

PALADINO: No.

SANCHEZ: Should a woman have a right to have an abortion if she's -- if she's been raped?

PALADINO: No.

SANCHEZ: She should not? She should have to have the baby?

PALADINO: And the baby can be adopted, yes.

SANCHEZ: What if it's -- what if it's a case of incest?

PALADINO: The baby can be adopted, yes.

SANCHEZ: To what do you attribute, finally, your victory last night, which was, by the way, according to a lot of people who have been watching this, a huge surprise?

PALADINO: It's a clear, definitive message.

We put out a clear, definitive message of who we are and what we intend to do. I'm not -- I'm not a person looking for money. I have no political ambitions whatsoever. I don't seek power. I don't seek any kind of praise. I have no ego to fulfill.

I'm going to -- I'm going to Albany to take out a government, to take out a culture, to bring that culture down once and for all.

(END VIDEO CLIP)

SANCHEZ: And here is Gloria Borger now. Gloria, make -- I know you have been thinking and writing about this all day long.

BORGER: Yes.

SANCHEZ: Make our viewers understand. Characterize for us if you would, not just Paladino, but the appeal for a candidate like Paladino at this particular time.

BORGER: Well, I think what we have seen is an electorate that's kind of rising up and says a pox on all your houses. We haven't liked Democrats, we haven't liked Republicans very much. We have looked at the last decade or so. We haven't seen a lot of governing going on that we like.

And when you look at somebody like Paladino or Christine O'Donnell in Delaware, it's these voters saying, sorry, establishment, and sorry, Republican establishment also. We don't like you either.

And this has created a real problem for the Republican Party, because, if these folks win, particularly in the United States Senate, they could have a bunch of senators that decide maybe to caucus by themselves, that decide maybe they don't won't to vote for any spending bills in the Senate, because they're anti-government.

I was looking back at history a little bit. Kind of reminds me of 1980, when Ronald Reagan swept in a bunch of senators, a lot of people called them accidental senators, if you will, on his wave, and some of them lasted a term, some of them maybe two, but you know, people were kind of scratching their heads: What were they doing there?

But they gave the Republican leadership a bunch of trouble. And I think that's what you're going to see if these folks get elected. It's going to be very interesting to watch --

(CROSSTALK)

SANCHEZ: But you know what's interesting? The argument that you just postulated is one that Karl Rove is postulating over on FOX News.

(CROSSTALK)

BORGER: Smart guy.

(LAUGHTER)

SANCHEZ: He's trying to tell his Republican brethren, hey, be careful how hard you hug these folks. In fact, he all but trashed O'Donnell last night. Here, take a listen. I think we have got the sound.

BORGER: Yes.

(BEGIN VIDEO CLIP) KARL ROVE, FORMER SENIOR ADVISER TO PRESIDENT BUSH: -- Christine O'Donnell is now going to have to answer in the general election that she didn't have to answer in the primary is her own checkered background.

I have met her. I'm not -- I have got to tell you, I wasn't, frankly, impressed as -- her abilities as a candidate. It does conservatives little good to support candidates who at the end of the day, while they may be conservative in their public statements, do not evince the characteristics of rectitude and truthfulness.

I'm for the Republican, but I got to tell you, we were looking at eight to nine seats in the Senate. We're now looking at seven to eight.

(END VIDEO CLIP)

SANCHEZ: I mean, he's trashing her.

(CROSSTALK)

SANCHEZ: Go ahead.

BORGER: Well, it's really -- what you hear from Karl Rove is what I'm hear from lots of other Republicans, which is it's a matter of credibility. It's also a matter of having a bunch of inexperienced candidates who haven't had to answer questions like you just asked Paladino, for example.

There will be many, many more like that once they get into a general election fight. and particularly in a state like Delaware, Republicans are saying, you know what? We had a shot at it, at control of the Senate, and now we really don't.

And there are lots of conservatives who would disagree with Karl and say, you know what? We don't really care about whether you, Mitch McConnell, become the leader of the Senate. That's not our concern. Our concern is getting our people in the Senate to start rabble- rousing and to start getting Republicans to pay attention to what they're saying.

So there is a distinct split here. Karl's goal is to win control of the Senate. O'Donnell does not help him do that.

SANCHEZ: That's an interesting situation that's developed overnight, and we're going to be watching it, and I'm glad we got you on it.

BORGER: Yes. Sure.

SANCHEZ: Gloria Borger, my thanks to you. We will be talking again in just a little bit.

I want to let you know that the president of the United States is going to be speaking from the Rose Garden momentarily. He said he's going to be speaking in just a couple of minutes. We're going to take that live here. And, interestingly enough, usually we have got a pretty good sense of what it is the president's going to stay. Oftentimes, they even send us a copy of his speech, and we get a chance to look at it, though it's embargoed. This time, we don't have that. We're not quite sure what it is the president is going to say.

It may in fact be a surprise. So, let's all watch it together.

Also, one of the 33 Chilean miners trapped underground apparently, he is a real popular guy tonight. See that big smile? I'm going to tell you why he's smiling.

Stay right there. We will be right back.

(COMMERCIAL BREAK)

SANCHEZ: Interesting situation. Just a little while ago, we had a conversation with Gloria Borger about the remarks that Karl Rove has made and the criticism that he's getting for it. Listen to Meghan McCain says, she's a blogger, daughter of john McCain, we follow her as we do hundreds and hundreds of other people and this is what she tweets. She says, "Anybody else find the entertainment value in the far right spending the day today," as a matter of fact this is interesting that Meghan McCain would write this, "today attacking Karl Rove?" So there you go, Meghan McCain.

All right, now, we do lists, here's a list we want to bring you right now, in fact this just about every day at this time, "Round Up List." Ready?

Number one -- outrage over excessive salaries in one California town no heading to court. California Attorney General Jerry Brown is now suing eight familiar faces in the town of Bell -- a story you heard first right here on "RICK'S LIST" -- the former city manager, former assistant city manager, the former police chief, two former city council members and three current ones.

Brown wants to recoup some of that money that he says was gotten through ill gotten gains. Some were paid salaries 20 times higher than their counterparts in other cities. Brown also wants to cut their pension benefits to boot.

Number two -- the Atlantic hurricane season is in full swing with three storms churning up the tropics today. Tropical Storm Karl is lashing Mexico's Yucatan Peninsula with rain and 60-mile-per-hour winds. Hurricane Igor and Julia or Julia are both at dangerous cat 4 status. Right now neither, though, as it stands, according to the models, is expected to affect land.

And here's number three -- check out the smile on this guy. He's one of the 33 miners trapped underground in Chile, but he's certainly happy today. His wife just gave birth to a baby girl yesterday. It's going to be months before dad can hold his baby daughter, but the family is optimistic that the men trapped 2,300 feet below the surface will eventually come home. They named the baby, by the way, Hope; in Spanish, Espiranza.

Still ahead, you're not going to believe the story of a pediatrician, a doctor who worked with little kids, accused of breaking the trust of his patients and horribly, horribly abusing that trust. Now he's on the run, federal agents are looking for him. We'll bring you his story on "The List You Don't Want to Be On."

And also this, girls as young as 13 sold into sexual slavery. We thought we might have some sound there, but we don't. We'll bring you the story nonetheless.

Stay with us, this is RICK'S LIST.

(COMMERCIAL BREAK)

SANCHEZ: I want to welcome you back to RICK'S LIST. I'm Rick Sanchez, so glad that you're here.

Lost innocence making the list today because of a disturbing story that we have been -- that's been brought to our attention. This is about young girls who are forced into prostitution, selling their bodies, smuggled into the United States from Mexico, becoming really modern day slaves.

The United States, the State Department is saying they're trying to end this global scourge and that it's now an important priority for them. According to a 2010 State Department report, there are more than 12 million victims of human trafficking.

Our Rafael Romo brings us this today. The story of one girl, but like her, there are many forced into prostitution at 15.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR (voice- over): Across Mexico, young girls dream of escaping their small towns for the big cities. Claudia, not her real name, was like that.

When she was 15, she met a charming man at a party.

"CLAUDIA" (through translator): This individual would tell me about the United States and would ask me to join him to go work at a clothes factory.

ROMO: Claudia was smuggled into the United States and taken to New York. Then she realized her boyfriend was part of a prostitution ring. He forced her into prostitution, beating her, burning her skin with lit cigarettes and telling her he would have her parents in Mexico killed if she tried to resist or escape.

This is the first time she has spoken about her experience.

"CLAUDIA" (through translator): The first day I started working was very hard because I had to sleep with 20 men in rapid sequence.

ROMO (on camera): Many people associate prostitution with women walking the streets in shady areas and being picked up by johns, but Claudia says the pres prostitution ring she was forced to work for had a long list of clients who knew the price they had to pay, where to go and who to call.

(voice-over): It's a well organized and lucrative underground industry. Luis monitors human trafficking at the U.S. State Department. He says there are no reliable figures on the scale of the problem, but forced prostitution from Mexico and Central America is a big part of it.

AMBASSADOR LUIS CDEBACA, STATE DEPARTMENT: They know that their victims are not going to go to law enforcement, they know their victims are afraid. In fact, sometimes one of their threats is to turn people over to the immigration authorities.

ROMO (on camera): Claudia was 15 when she was forced to become a prostitute, but there are younger victims, as Cdebaca found out when he worked as a prosecutor.

CDEBACA: I ended up seeing cases with girls as young as 13 and women in their 40s, and everything in between.

ROMO (voice-over): Ten years ago, Congress passed a law that allows victims of human trafficking to stay in the country if they testify in court against perpetrators of the crime.

DANIELLE CONNELLY, IMMIGRATION ATTORNEY: And it allows these individuals who are victims of trafficking and who go through the proper procedures to be able to show that with evidence and so forth to actually apply for what's called a T-nonimmigrant visa which, if and when approved, allows them to be here in the United States lawfully and documented.

ROMO: Claudia has now moved to a different city in the U.S. where she tries to live a normal life, but she's still afraid of retribution and wants to remain anonymous.

(END VIDEOTAPE)

SANCHEZ: Rafael Romo, good report. That's excellent work drilling down on this and finding out what's going on with this.

How prevalent is this? Is this something you only see in the border states or does it spread throughout the country?

ROMO: it's actually out of central Mexico and one of the things that we learned doing our research is that there have been cases in places like New York, in Georgia. It seems to be happening all over the place, but it's a relatively new phenomenon, something that authorities both in Mexico and the United States are trying to learn more about to attack the problem.

SANCHEZ: You may not know the answer to this question, but I'm just curious, does it go from the Hispanic enclaves do? Is this generally in the Hispanic communities or does it spread throughout other communities? ROMO: Not necessarily. I was asking Claudia exactly that, and she told me that she was forced to see all kinds of clients --

SANCHEZ: So they're clientele involved everybody.

ROMO: Everybody. This is not a problem concentrated in Hispanic communities, this is widespread. It's everywhere. All kinds of clients that she was forced to see.

SANCHEZ: You've got another piece you've prepared for us, right?

It's interesting to try and see if they can try and get to the bottom of this and try and get some of these people. And I imagine some of them are illegal, right? So if they're caught, get them the hell out of here.

ROMO: That's how they get them. They threaten them with reporting them to immigration authorities and so they're -- and the most difficult thing, Rick, is that they threaten them with killing their parents and family in Mexico.

SANCHEZ: The girls, the women?

ROMO: Exactly. They have very few options. Really, they're slaves.

SANCHEZ: Unbelievable. All right, we'll look forward to seeing good investigative reporting by Rafael Romo, our Latin affairs correspondent.

By the way, I want to update you now on another child prostitution story. This is a work of another one of our correspondents. CNN's Amber Lyon has reported on the exploitation of children on the popular online website Craigslist.

Well, a House Judiciary subcommittee is now examining this role of online services on the sex trafficking of minors and in a hearing today executives of Craigslist are testifying. Now the company confirms it's changed its policy on the types of ads that it will carry, saying, quote, "On September 4th, Craigslist discontinued the adult services section and there are no plans to reinstate it."

By the way, the company says those who formally posted adult services ads on Craigslist will have to find another venue.

All right, a reminder that we're standing by now. The president of the United States is about to make an announcement in the Rose Garden. We're not exactly sure what he's going to say, possibly announce. We do know it will have something to do with the economy, but specifics are still forthcoming.

Stay with us. This is RICK'S LIST, we'll be right back.

(COMMERCIAL BREAK)

SANCHEZ: Did you see Bill Maher last night? Bill Maher comes on Larry King right after we were done, after my discussion with Larry. At the time, it was interesting because it was right after the announcements were made that some of these Tea Party candidates had beaten the Republican candidates in places like Delaware and New York.

So, here's Bill Maher. He comes on, and Larry starts asking him questions about this. And he released what some would call gems.

By the way, as we listen to Bill Maher, if the president comes out, we'll interrupt the tape and let you listen to the president live. So, let's take this if we possibly can, Rog.

(BEGIN VIDEO CLIP)

BILL MAHER, HOST, "REAL TIME WITH BILL MAHER": We have two Americas.

We do have two Americas. We have the America that's living in reality, the people who understand that Obama is a centrist liberal from Hawaii who's trying to dig us out of the hole we're in. And then we have this other Fox-Matt Drudge-Rush Limbaugh reality where he's a Muslim sleeper cell, Manchurian Candidate who was sent over here by his Kenyan father --

LARRY KING, HOST, "LARRY KING LIVE": What kind of intelligent person would believe that?

MAHER: Intelligent person? Larry, we're broadcasting in America!

(LAUGHTER)

MAHER: How ridiculous.

Well, no, I don't think intelligent people do believe it. But then we're going to get into partisan bickering because more than half of the Republicans agreed with a statement that said Obama is trying to impose Islamic law on America. I mean, that is a very radical thing to believe. And it's more than half of Republicans. Not Tea Baggers, not radicals, the main stream Republican people.

KING: Is there a racist tone to this? In other words, is this racist -- inherent racism? Where is it coming from?

MAHER: Does the pope go to the bathroom in the woods? Yes, Larry, it's extremely racist.

I mean, it's so funny, because the Tea Baggers, the one thing they hate is when you call them racist, the other thing they hate is black people.

(LAUGHTER)

MAHER: But they won't say it.

(END VIDEO CLIP) SANCHEZ: By the way, Maher also weighed in on the controversial Islamic cultural center and mosque project near ground zero in New York. And he reveals as well what he thinks about radical Muslims. Here's that part of the conversation.

(BEGIN VIDEO CLIP)

MAHER: We have to recognize that civilization-wise, the radical fringe of the Muslim religion is bringing up the rear. And it's the duty of Muslim people to deal with that.

The sad fact about the mosque is that the people who are building that mosque are part of the Sufi fringe or part of their religion -- that's the good part. That's the liberal part, those are the hippies of the Islamic world. We should encourage them, the people who want to build that mosque. Those are the people we should be courting.

Bush used that guy. Bush -- that administration sent him overseas.

(CROSSTALK)

MAHER: Yes. That's the way to fight this terrorism. That's the way to win this war is to get those people on our side. Not to alienate them.

KING: How big do you think the Muslim fringe is?

MAHER: Bigger than our fringe. I think it's sizeable. But not the majority, for sure. I mean, the biggest population of Muslims in the world is Indonesia. They're not crazy. The second biggest is India, there's 157 million Muslims in India. They're not crazy. But Saudi Arabia, they're crazy. The Taliban, Afghanistan, they're crazy. Parts of Pakistan, they're crazy. Hamas is crazy.

There's enough of them to worry about.

(END VIDEO CLIP)

SANCHEZ: And Bill Maher, as you know, returns to HBO this Friday in his show that I know many of you watch, according to some of your tweets. It's called "Real Time With Bill Maher."

Dan Lothian standing by now to bring us up to date. Hey, Dan, have we gotten a better sense of what the president's going to be talking about?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, yes, Rick, in fact the president will be talking -- making some comments about the economy and jobs. Only expected, I'm told by a White House official, to last between five or seven minutes.

But clearly this was something that was added to the president's schedule late in the day, but it's yet another attempt by this White House to show that they are on the offensive, that the president is doing everything possible to try and right the economy and trying to put pressure on, especially Republicans up on Capitol Hill, try to frame the debate and show this contrast, that Republicans are trying to create road blocks that Democrats are trying to do things that will help middle class America.

SANCHEZ: Do you think - in fact, I think Dana Bash is joining us as well. Maybe I'll direct this question at her and then come back around to you, Dan. Do you think the president sees an opportunity here in what happened last night in places like Delaware and New York? Almost an Achilles' Heel, if you will, while the Republicans are fighting amongst themselves and people are criticizing Karl Rove. "I'm going to go out there and give a Rose Garden address," Dana Bash?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Rick, I think there's no question Democrats broadly do see opportunity, but they are trying to keep their eye on the ball. And that ball is the economy and more specifically, the jobs issue.

And this tax cut issue actually is something very interesting. The Democratic pollster Rick, Stan Greenberg, he came and addressed the Democratic Caucus. All of the House Democrats who have just returned from being home for five weeks and are not happy about being back here. He addressed them, and he told them that his polling shows that all of the issues they can show a contrast with Republicans on, this is the one that he sees draws more independents in and even some soft Republicans.

So, he was trying to convince, just as the president is trying to convince, some Democrats who aren't too sure about this idea of only extending tax cuts for the middle class as much as trying to put that contrast out there to Republicans, that they want to make Democrats understand that this is their message because not everybody agrees.

SANCHEZ: And the message is that we can fix the economy better than those guys can because look what they did when they had the presidency?

BASH: Absolutely, we can fix it better than they can. I think that's probably the number one issue. But more specifically, on this whole debate about tax cuts, they want to energize the Democratic base, which is not very energized right now by reminding them, hey, we're out for the middle class and the little guy. And we're going make sure those rich guys don't get more tax cuts like they did under George Bush. And hopefully that message will appeal to some independent voters who, if you look at all the polls, have shifted dramatically from Democrats in 2008 to wanting to vote for Republicans this time.

SANCHEZ: But I guess the question - let me bring in John King now. Because John King, host of "JOHN KING USA" he's following trends as well as anybody here. Sometimes he has a tendency to see things before they happen.

So, I'm not saying you're a soothsayer or anything, but do you see the stars lining up for this midterm election to be similar to you know, what happened in the past, for example, when Republicans took over? JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well, Rick, that is the big question. Is this a sweep wave election like 1994 where Republicans won 52 seats in the House, or is it a more traditional midterm election where the president's party would lose somewhere 26, 28, maybe 30 seats? If it's the latter, then Nancy Pelosi as speaker won't be having these conversations in January. If it's the former, it's John Boehner.

So, look, the president sees all the discord in the Republican party. The finger pointing, the recrimination, the "can she win, should we have nominated her." And certainly he would like to be out there presenting a message on something that Americans actually care about, jobs and the economy while all that finger pointing is going on.

But the bigger dynamic here is the Christine O'Donnell saga will be over in most places except Delaware by election day. And four in ten Americans right now agree with the way the president is handling the economy. An overwhelming majority of Americans think the economy is not getting better.

So, the president knows come election day a little under seven weeks from now, that is the big issue he will be held accountable for, his party will be held accountable for. So, any chance he can break through and try to say, as Dana put it, "Look, I know it's hard, but I'm trying but what I'm doing is better than what they would do," the president will seize that moment.

SANCHEZ: Well, let me ask you a hunch question. In fact, let me bring Dan Lo -- Dan, are you still there?

LOTHIAN: I'm still here, yes.

SANCHEZ: Here's one of those RICK'S LIST-hunch questions we throw out from time to time, only because I'm thinking about it right now. The president also has some problems within his own party. The president has some problems with liberals and some progressives.

You know, I have been talking to people all over the country and they have been asking me questions about my book, but many of them, at least the progressives are saying they're not happy with this guy. And one of the things they want from him is Elizabeth Warren. Is there a possibility that he's going to use this Rose Garden -- have you heard anything about him perhaps --

LOTHIAN: No.

SANCHEZ: -- finally naming her to appease that sector of the Democratic party?

LOTHIAN: Listen, the guidance that we have been given on that is that that announcement could come sometime this week, but we have been told that that will not happen today. And specifically have been told that it will not take place at this Rose garden event. I mean, obviously, when we saw that added late this afternoon, it did sort of get us asking those same questions whether an announcement, a personnel announcement would be made. The White House knocking that down, saying this will simply be a focus on the economy and jobs.

SANCHEZ: So at this point, we don't think there's going to be any surprises in this thing. Is that what you're saying?

LOTHIAN: No. Right, no surprises. They can do whatever they want, but it's always possible that at the last minute, all of a sudden, it's a big surprise. But all the guidance that we're getting is that none of that will be happening here today.

SANCHEZ: All right, all right. Well, it's my job to ask.

Dana and John and Dan, we're going to continue in just a moment. We're go to sneak a break in, and then we should be getting the president just about the time we come back.

Stay right there, folks. This is RICK'S LIST.

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SANCHEZ: All right, welcome back. I want to bring you up to date on what's going on. We're told that there's just a two-minute warning before the president appears at the Rose Garden to give this address that he's going to give, talking about the economy.

And just on time, as a matter of fact. There is the president, who's being walked out -- or walking with him alongside is the vice president of the United States, Joe Biden. Here we go.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: All right. Good afternoon, everybody.

I just met with my cabinet and members of my economic team, and I wanted to speak about a few developments concerning our ongoing efforts to strengthen the economy and the middle class.

After months of partisan blockade in the Senate, we are finally on the verge of passing a small-business jobs bill that will cut taxes and provide loans for millions of small-business owners across America.

And while I'm grateful for this progress, it should not have taken this long to pass this bill.

At a time when small-business owners are still struggling to make payroll and they're still holding off hiring, we put together a plan that would give them some tax relief and make it easier for them to take out loans. It's a bill that's paid for. It won't add a dime to the deficit. It's a bill that was written by both Democrats and Republicans.

But for months, the Republican leadership in the Senate has said no. For months, they have used legislative maneuvers to prevent this bill from even coming up for a vote. And all the while, small- business owners kept waiting for help. They kept putting off plans to hire more workers and grow their businesses.

Now, thankfully, two Republican senators -- Senators George Voinovich and George LeMieux -- have refused to support this blockade any longer. And because of their decision, this small-business jobs bill will finally pass. And I want to thank them for their efforts, because they understand that we simply don't have time anymore to play games, not just on this small-business jobs bill.

I mean, to give you another example, right now, we could decide to extend tax relief for the middle class. Right now, we could decide that every American household would receive a tax cut on the first $250,000 of their income.

But once again, the leaders across the aisle are saying no. They want to hold these middle-class tax cuts hostage until they get an additional tax cut for the wealthiest 2 percent of Americans. And we simply can't afford that. It would mean borrowing $700 billion in order to fund these tax cuts for the very wealthiest Americans, $700 billion to give a tax cut worth an average of $100,000 to millionaires and billionaires. And it's a tax cut economists say would do little to add momentum to our economy.

Now, I just don't believe this makes any sense. Even as we debate whether it's wise to spend $700 billion on tax breaks for the wealthy, doesn't it make sense for us to move forward with the tax cuts that we all agree on?

We should be able to extend right now middle-class tax relief on the first $250,000 of income, which, by the way, 97 percent of Americans make less than $250,000 a year. So right off the bat, 97 percent of all Americans would get tax relief on all their income.

People who are making more than $250,000 a year -- say you're making half a million dollars -- you'd still get tax relief on half your income. And everybody agrees that this makes sense.

Middle-class families need this relief. These are the Americans who saw their wages and incomes flat-line over the last decade, who've seen the costs of everything from health care to college tuition skyrocket, and who have been hardest hit by this recession.

Extending these tax cuts is right. It is just. It will help our economy, because middle-class folks are the folks who are most likely to actually spend this tax relief for a new computer for the kids or for maybe some home improvement.

And if the other party continues to hold these tax cuts hostage, these are the same families who will suffer the most when their taxes go up next year. And if we can't get an agreement with Republicans, that's what will happen.

So we don't have time for any more games. I understand there's an election coming up, but the American people didn't send us here to just think about our jobs. They sent us here to think about theirs. They sent us here to think about their lives and their children's lives, and to be responsible, and to be serious about the challenges we face as a nation.

That's what members of both parties have now done with this small-business jobs bill, and I hope we can work together to do the same thing on middle-class tax relief in the weeks to come.

Thanks very much, everybody.

SANCHEZ: And there is the president of the United States, surrounded by his economic team and the vice president, the entire entourage coming out, making a very forceful statement. The president is obviously very happy about this development that he shared with us.

But really it's a question of one down, one to go. You heard what the president said, I mean, he's very happy that he's about to pass the small business jobs bill. And he was excited to give credit to two Republicans, Voinovich and LeMieux, for making this happen.

But he's not excited about the prospects of not being able to give, he says, tax breaks to -- tax cuts to middle class Americans. He says that Republicans are holding that up because they want it also given to the, quote, "rich." And the president goes on to say that we simply can't afford the $700 billion that that would cost. Let me bring in John King.

Well, here you go, John. I'm also joined, by the way, by -- with Dana Bash and Dan Lothian. And the four of us are going to be discussing the implications of what the president just did.

It wasn't expected, but it almost seems at times there, like at the very beginning, he was thumping his chest, John.

JOHN KING, CNN ANCHOR: Well, look, he's happy for the small business bill, and he's happy to be able to say, see, that Washington you think that is not doing anything, it's on the verge of doing something that perhaps helps small business.

But the other pivot point was to this tax cut debate, Rick. And the president is trying to do two things here. Number one, he says the Republicans are playing games, and I wouldn't use those terms about any president of the United States, but, look, this president is certainly playing politics.

He understands what's happening here and he knows this debate will probably wait until after the election. The Bush tax cuts don't expire until the end of the year, so nothing is going to change for any tax-payers until next year anyway.

But he's trying to give a little backbone to members in his own party who are starting to say, we need to extend all of the Bush tax cuts, not just those for families under $250,000.

Because Dana can tell you better than I can, more and more vulnerable conservative, moderate Democrats are saying, please don't make me make a distinction right now. Don't make me vote for a penny in higher taxes, do not do that before the election, and maybe we should go on the record before the election saying we're not going to do it. SANCHEZ: It's -- Dana, so does he have a winner here as far as talking points go? And he's going to drill down on this all the way up until November?

BASH: The answer to that question is yes. By and large, the Democrats on a national level do think that they have a winner here in terms of that talking point.

As I mentioned before, they have polling that shows that this is the best chance that they have at a winner.

However, let me give you a reality check from my perch here in Congress, which is what he was talking about. It is true that Republicans have made a decision, by and large, at least in the Senate, that they want to extend all of the tax cuts.

But the real division and the real reason this is not going through right away is because of differences within the Democratic Party, among his own Democratic Party.

In the Senate, they're not sure what to do yet, what form to put this legislation in because there are four or five senators who align themselves with his party who say that they're not sure that this is the way to go. And you have the same dynamic on the House side with some of the most vulnerable Democrats who say, you know what? I'm not sure that it really is the right thing to do, to take this bill before the election.

SANCHEZ: Well, the president made it sound like this was a real coup that they got Voinovich and LeMieux to switch over and back him on this small business jobs bill. I'm just wondering, Dan, I don't know if you know, or, Dana, if you know, is it fair to characterize this as a coup, these two Republicans?

BASH: Well, when you talk -- I'll just answer that question. When you talk about George Voinovich, he is somebody who is retiring. So he doesn't have a lot to lose when it comes to his political standing. And LeMieux is also somebody who is not going to be in the Senate. He's a short-timer. There is a race going on for that seat.

So that's the reality there. Was it a coup? Look, it's a win. And it's what they needed. This is something that has languished, he's right, in the Senate for a very long time. And the math of the Senate right now is that they need a Republican or two Republicans to go along with them. And they finally got them.

SANCHEZ: These talking points that we listened to just a little while ago, Dan, you're there at the White House, you're following them, and you talk to the folks who represent the president, are you convinced that these are the talking points that we're going to be hearing from this administration from now until November?

LOTHIAN: Definitely. In fact, they really believe that -- you know, the hammering away on Representative John Boehner and also on the Republicans, making this contrast, they believe that it is working. In fact, I was talking to a senior administration official here at the White House and said, what is act number two? And this official said, well, we haven't even figured that out yet, because we still think this is working and we're going to stick with this for a while.

They feel they're getting some traction here so, yes, they're going to ride this all the way through Election Day -- Rick.

SANCHEZ: Yes, it's interesting how he keeps emphasizing that $700 billion figure. This would cost us $700 billion and we simply cannot afford it, stop quote. And you do get a feeling that this is the kind of language that the president seems to think and probably his analysts say is going to be effective language as Americans go to the polls.

Hey, thank you so much, Dan. We're going to sneak a break in here. We have got a lot coming your way. And I want to thank some of the folks who are visiting with us on this day, coming by to say hello to us on RICK'S LIST. They were intently watching the president's address from the Rose Garden with us just a moment ago.

This is RICK'S LIST, we want to thank you for being with us and we we're going to be right back.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back. I want to share something with you, doctors are supposed to be the kind of people you trust with your kids, right? I mean, that's why this story, this call-out is so important. As a dad, I tell you it's earnest. Time now for "The List U Don't Want 2 be On."

This fellow's name is Emilio Luna. He is a children's doctor from Arizona. Police officers arrested him on child porn charges. Child porn. They say he used file-sharing networks to send out thousands of files of revolting and shocking images of innocent kids. A pediatrician, no less.

How can we not be bothered by somebody who has this job and does this? Well this very minute, he's on the loose. Why? He has finagled a way to get away and now the feds are trying to hunt him down. Here is what happened.

Last Thursday he was indicted. A judge ruled that he could stay inside his house as he awaits trial only to leave to go to church on Sundays. Well, here's a shocker, on Sunday, the doctor used the church visit to make a run for it.

Police officers later found his car abandoned, inside, bolt cutters used to remove that ankle monitor that he was supposed to be wearing. The FBI says he could be in Texas, maybe California, maybe Illinois, where he has homes.

But I'll tell you where Emilio Luna definitely is on this day, he's at the very top of "The List U Don't Want 2 be On." (COMMERCIAL BREAK)

SANCHEZ: Let me bring you up to date for those of you who may have missed this. The president of the United States came out moments ago and gave a Rose Garden address, rare as they are. We were expecting he would talk about the economy and he did indeed.

Here's what the president said. He congratulated his staff, he congratulated the nation for getting ready to sign a small business jobs bill. He says the only reason that this is about to happen is because two Republicans have gone across the aisle and they're now assisting in this.

And he named them, as a matter of fact. Gave kudos, credit to these two Republicans. They are Voinovich and LeMieux. However, the president then went on to talk about how important it is that the next part of this gets passed, and that is the tax credit.

Let me come over to this side so the camera can follow me so I can see just how much time we have left in the show. Sorry about that. Twenty-five seconds? Well, let me tell you what else is going on.

Every day about this time, we usually try and give away one of the books -- the book "Conventional Idiocy" that I've just written. Interestingly enough, because of breaking news, we haven't been able to give many of them away.

So we got a tweet a little while ago and the person was very sudden about what he thought. And here's what he says. This is ConHaks (ph). He says: "Give some more of the books away, tightwad!!!" So for writing that, we have decided that on this day we're going to give him the book.

Ha! There you go. You're the winner. Congratulations. I'll have an autographed copy to you in just a little bit. Here now, Wolf Blitzer in THE SITUATION ROOM.

WOLF BLITZER, CNN ANCHOR: Thanks very much, Rick.