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The Situation Room

Democrats Capture Last Senate Battleground; George Allen Concedes; Ken Mehlman May Step Down; John Murtha Interview; Robert Gates Could Bring Strategy Change In Iraq; Veteran CBS News Journalist Ed Bradley Passes Away

Aired November 09, 2006 - 17:00   ET

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


WOLF BLITZER, CNN ANCHOR: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, the stunning post-election power shift is now complete. Democrats capture the last Senate battleground, setting the stage for total control of Capitol Hill.

There's a call for common ground, as President Bush invites Speaker-To-Be Nancy Pelosi to lunch. But there's also a lame duck call for last ditch legislative action by Republicans.

Can they really work together?

And as Iraqi insurgents claim they played a part in the Republican election defeat, the outgoing defense secretary, Donald Rumsfeld concedes the war has not been going well.

But does he have any advice for his successor?

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

The Earth has moved, the stars have shifted, the balance of power has now changed on Capitol Hill.

In just the past hour or so, Republican Senator George Allen conceded defeat and Democrat Jim Webb claimed victory in Virginia. That final narrow Senate win, by some 7,000 votes, puts Democrats in control of both houses of Congress.

Standing by are White House correspondent Suzanne Malveaux, our Congressional correspondent, Andrea Koppel.

But let's go to Jeanne Meserve.

She's in Arlington, Virginia, where history has just been made -- Jeanne.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Wolf, just a few minutes ago, James Webb hoisted over his head his son's combat boots, the symbol of his campaign, and declared victory in this Senate race.

His remarks coming only an hour-and-a-half after Republican George Allen conceded he had lost this race.

(BEGIN VIDEO CLIP)

SEN. GEORGE ALLEN (R), VIRGINIA: In this Senate, the people of Virginia, who I always call the owners of the government, they have spoken, and I respect their decision. The bible teaches us that there's a time and place for everything. And today, I've called and congratulated Jim Webb and his team for their Virginia. They had the prevailing winds.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

JIM WEBB (D-VA), U.S. SENATE CANDIDATE: A few nights ago, Tim Cain, Senator Schumer and others were standing on the stage with me and I said, you know, I have a feeling, I have a feeling that on Wednesday morning, that people in the White House are going to wake up and that they're going to look at a Democratically controlled House of Representatives and, with your help, a Democratically controlled Senate. And we will begin the process of putting this country back on the track where it needs to be.

(END VIDEO CLIP)

MESERVE: Now, Senator Allen could have asked for a recount. The margin of Virginia for Webb is just that small. But Allen said today he had decided not to do that. It would create too much ill will and would simply cause expense to the taxpayers of Virginia. But there is also this reality, that the canvass of the votes that is going on right now has showed only minor shifts in the votes, and the shifting has been toward James Webb.

What does it all mean?

Obviously, it's profound. Senator Chuck Schumer was here and he probably summed it up. He asked the crowd, what color is my tie? They said blue. He said what color is my suit? They said blue. He said what color is my Senate? And they yelled blue.

A lot of cheering here in Arlington tonight -- Wolf, back to you.

BLITZER: Thank you very much.

Jeanne Meserve reporting for us.

Another key concession today in the state of Montana, where Republican Senator Conrad Burns has now acknowledged defeat. Democrat John Tester had claimed victory a day earlier, with a lead of less than 3,000 of the 400,000 votes cast.

CNN had projected that as -- that as a win and the Burns camp now says the numbers are stable enough to make the results abundantly clear.

That new balance of power in the United States Senate, Democrats 51 seats -- 49 Democrats, actually two Independents -- they'll caucus with the Democrats, though; Republicans with 49 seats.

Let's learn a little bit more about this new balance of power on Capitol Hill.

And for that, we'll talk to our Congressional correspondent, Andrea Koppel -- Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Wolf, if you thought House Democrats looked happy the other night, you should have seen Senate Democrats today. They didn't see this coming. No one did. And today the man who is poised to become the next majority leader in the Senate, Harry Reid, struck a conciliatory tone.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: This time for a new direction has given us an opportunity, a chance to prove to the American people that we can work with the Republicans. They've set a very bad example in not working with us. We're not following that example. We're reaching out to them, as we have from the time the election.

(END VIDEO CLIP)

KOPPEL: Now, this reaching across the aisles is more than just rhetoric, Wolf, because practically speaking, there is the smallest of majorities, as you said, 49-51. And if Democrats are going to get anything accomplished, they are going to need the support of Republicans -- Wolf.

BLITZER: Andrea Koppel, thank you for that.

Andrea reporting from Capitol Hill.

President Bush today played host to the presumed future some of the, Congresswoman Nancy Pelosi. There was talk of finding common ground, but the president also wants Republicans to push his legislative agenda while they still have a chance.

Will that start things off on the wrong foot, though?

Let's turn to our White House correspondent, Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, that really is the question, just how long this honeymoon is going to last. It was just an hour ago President Bush picked up the phone, called Senator Harry Reid, congratulating him, saying that he is looking forward to having breakfast with him here tomorrow at the White House, as well as Dick Durbin.

But today, as you know, was Nancy Pelosi's day here, having lunch. She said it was pasta and chocolates. But the White House counselor, Dan Bartlett, said President Bush today was eating crow. They talked about reconciliation and the possibility, of course, of putting their bitter partisanship behind. (BEGIN VIDEO CLIP)

GEORGE BUSH, PRESIDENT OF THE UNITED STATES: The elections are now behind us and the congresswoman's party won. But the challenges still remain and therefore we're going to work together to address those challenges in a constructive way. We won't agree on every issue. But we do agree that we love America equally, that we're concerned about the future of this country and that we will do our very best to address big problems."

(END VIDEO CLIP)

MALVEAUX: So, Wolf, while you saw the president and his cabinet today talking about reconciliation, he also made a very important point, signaling to the Republican leadership, let's get some things done quickly, in the next couple of weeks, before the Democrats take control, one of them being a very controversial initiative, that the Terrorist Surveillance Act -- Wolf.

BLITZER: Suzanne Malveaux at the White House.

Suzanne, thanks very much.

Let's bring in our chief national correspondent, John King, one of the best reporters, arguably the best political reporter here in Washington.

You've got some news that you've been working on.

JOHN KING, CHIEF NATIONAL CORRESPONDENT: The might have been a day.

There might have been a day, Wolf.

BLITZER: You are an excellent reporter.

KING: I just wanted to say one thing, is that you're talking a lot about the fallout of the election. One of the things we have learned today is that it is almost certain now, all but certain, we are told by a number of Republican sources, that Ken Mehlman, who is the current chairman of the Republican National Committee, will step down and leave that post by the end of the year.

We want to make clear none of these sources are saying that there's any blame being assigned to Ken Mehlman. In fact, most Republican strategists at the White House and in the party across the country think that he did more than the best he could and that the damage would have even been worse in the mid-term elections if not for the RNC operation.

He had told some close associates he planned to lave after the election anyway. I'm told by one source close to him this is not a done deal, still a little bit more work to do on this. But the White House already is looking at potential replacements.

And one thought under consideration, Wolf -- you've seen this happen in the past -- is to have a split leadership -- a general chairman, a well known politician who raises the money, who is the face of the party; and then a strategist who is the day to day operative.

The number two at the Department of Transportation, Maria Cino, she's a veteran political strategist, worked with the Congressional Campaign Committee, worked in the Bush election campaigns, she is under consideration if Ken Mehlman steps down, which we are told is all but certain, at the end of the year.

BLITZER: Is she Hispanic?

KING: You know, I don't Maria. I think she's Italian.

BLITZER: Italian. All right.

KING: I think she's an Italian-American. I'm pretty sure that's true.

BLITZER: Because they -- I think they were disappointed. They lost a lot of Latino votes this time. The Republicans had been very aggressively going after Hispanics and Latinos.

KING: Right.

BLITZER: And I think they were pretty disappointed...

KING: They certainly...

BLITZER: ... in this election.

Look, in fairness to Ken Mehlman, he's got a mission impossible right now, given the unpopularity of the war and what happened after Katrina.

KING: Right.

BLITZER: So it certainly would be unfair to blame him for the Republicans' problems.

KING: No one blames him. He's been working in -- remember, he worked in the president's campaigns all along. He was the political director at the White House for some time. He's been on the gerbil wheel, as one of his close friends put it, for well in excess of six years now, and he's tired.

No one blames him at all. But I'm told it's all but certain that he will leave that post at the end of the year.

BLITZER: Now, one of the stars of the Republican Party who emerged from this election actually lost. That would be Michael Steele, the lieutenant governor of Maryland, who wanted to be the United States Senate, lost to Ben Cardin in a fiercely fought battle.

But he's emerging as a -- still, as a major star in the Republican Party. KING: He certainly is. And even though he, at times, took issue with President Bush in his campaign, because he's running in such a blue state, Maryland, such a Democratic state, he took issue with the White House, sought distance from the White House. I'm told that top officials in the White House are actively looking for a place to put Michael Steele in the final two years of the Bush administration.

His name has come up, for example, for the RNC job, although most think that's not where he will end up. Several members of the Bush cabinet and top sub-cabinet officials are expected to leave between now and the end of the year, or very early next year.

That is traditional when you get into the seventh and the eighth years of a presidential administration. You've seen this happen before. And when there are those cabinet shifts, many say look for Michael Steele to come in quickly.

One person already telling me today he would be a candidate for the Department of Housing and Urban Development if that comes open. A close friend of the president's from Texas has that job right now. But a number of cabinet officials are expected -- or their top deputies -- expected to leave soon. And I'm told to watch for Michael Steele to perhaps join the Bush administration in the new year.

BLITZER: I think he does have a huge future ahead of him in American politics.

KING: Yes.

BLITZER: Thanks very much.

KING: Sure.

BLITZER: As I said, one of the best -- arguably the best political reporter in town.

KING: Dial that back a bit (ph).

BLITZER: John, thanks very much.

KING: OK.

BLITZER: Jack Cafferty is part of the best political team on television, as well.

Don't you think John King is a terrific reporter?

JACK CAFFERTY, CNN CORRESPONDENT: You know, you're not going to get me to start sucking up to John King. I mean I like John King a lot but...

(CROSSTALK)

CAFFERTY: ... you know, it's -- you should be in P.R. Wolf, you know that? I mean if you would like not ever do this, you could do public relations, because you like everybody, you get along with everybody. I should take lessons from you.

BLITZER: OK.

CAFFERTY: That ain't going to happen.

The Senate Armed Services Committee is poised to move swiftly on the nomination of Robert Gates to replace Donald Rumsfeld, the secretary of defense. Gates brings a lengthy resume to the new job. He's a former CIA chief. He also served as deputy national security adviser to the first President Bush.

He's a member of the Iraq Study Group. That's that bipartisan panel headed by former Secretary of State James Baker. Baker is widely suspected of being behind the decision to replace Rumsfeld. And his group is set to reveal its recommendations for a change of course in Iraq very soon.

Tuesday's election sent a clear message to President Bush that the country wants change, they want a clear change of direction and they're not happy with the way he, President Bush, is handling the war in Iraq.

So here's the question -- how might U.S. policy in Iraq change with a new secretary of defense?

E-mail your thoughts to Caffertyfile@CNN.com or go to CNN.com/Caffertyfile -- Wolf.

BLITZER: All right, Jack, thanks very much.

Up ahead, we'll have more on the man Jack just mentioned, the outgoing defense secretary, Donald Rumsfeld. Today, he talks about any regrets he might have had. We'll tell you what he says in his own words.

Also, death of a journalism giant. The veteran and respected CBS News journalist Ed Bradley has died. We're going to tell you how his peers and his fans alike are remembering this really, really solid journalist.

And Representative John Murtha is standing by live. We're going to be talking with him and ask him what the Democrats are planning to do now that they've seized control of the House and the Senate.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Now that Congresswoman Nancy Pelosi appears likely to be promoted to become the speaker of the House of Representatives, who will take over the job she now has, the leader of the Democrats in the House? My next guest says he'll try that, try out to see if he can do it.

That would be Congressman John Murtha of Pennsylvania.

He's joining us from beautiful Johnstown, Pennsylvania, a lovely, lovely town.

Congressman, first of all, congratulations to you.

REP. JOHN MURTHA (D), PENNSYLVANIA: Thank you very much, Wolf.

BLITZER: Let's talk a little bit about what's on your agenda. I want to do some housekeeping first, then we'll get to some of the substantive issues.

You want to be the majority leader in the House, is that right?

MURTHA: Yes, and at this point I think I have the votes. We've been going over it today and we're pleased at the outcome, we're pleased at the response we're getting and we've been working hard. We put off our campaign asked -- telling people wait until the election is over. Let's win this election first for the American people. And I think we did that.

Now we want to move forward.

BLITZER: So it will probably be a contest between you and Steny Hoyer, the minority whip right now, is that right?

MURTHA: Yes. Yes, exactly. That's what the competition looks like and we're going full steam ahead.

BLITZER: Tell us why members of the House, the new House, should pick you as the new majority leader as opposed to Steny Hoyer.

MURTHA: Well, I think there's a number of reasons. I've been involved in these jobs, involved in foreign policy, involved in defense, involved in synthetic fuels and alternative energy, I've been involved in health care for years and years. And I think those are the issues I've heard about the most.

And I think I could bring that kind of expertise to the leadership. And I can mold some of the more conservative members with the leadership.

So working with Nancy Pelosi, I think we'd make a good team.

BLITZER: Because she's very close to Steny Hoyer. If you're going to be the majority leader and she's going to be the speaker, you have to really work as a team with her.

Do you have a good relationship with Nancy Pelosi?

MURTHA: Well, it's an interesting thing, I was her campaign chairman when Steny Hoyer ran against her as the minority whip. I was her campaign manager when she ran against Steny Hoyer -- when Steny Hoyer ran against her for minority leader.

So I do have a fairly good relationship. I worked with her for years when she was on the Intelligence Committee. So we are very close friends and I've been her campaign manager now for two separate events.

BLITZER: Let's talk about Iraq, because over the past year you've been outspoken. You've taken the lead in the House of Representatives in speaking out against the Bush administration's policies.

What practically can the Democrats do, as the majority party in the House and the Senate, to try to change the administration's policy toward Iraq, which you're so concerned about?

MURTHA: Yes, one of the things I'll say right off the bat, Wolf, I was on 143 shows in the last -- in last year talking about Iraq, trying to straighten out what the administration said. But that doesn't mean anything compared to what happened on election day.

I think the American public were way ahead of me when I first spoke out. The president kept talking about the last election being a mandate for him to go forward in Iraq. Well, this election was the opposite. This election was for -- to redeploy the troops in my plan, which is the opposite of his plan, as soon as practicable out of Iraq.

Now, what can we do?

One of the things we can do is say to him look, Mr. President, there has to be a change. We have to work out something. And I think that the first step is that you hold somebody accountable. All right, you fired the secretary of defense. But that's not a change in policy. I was disappointed in what the new secretary designate said. I was disappointed in what the president said.

It's the same old policy.

BLITZER: What specifically...

MURTHA: So firing the secretary of defense is not enough.

BLITZER: What was the specific point they said, Robert Gates, the nominee to become the secretary of defense? What did you not like?

MURTHA: Well, it looked like the speech was written by the White House. It said this is still a fight -- the center of the fight on terrorism is in Iraq. That's not the centerpiece of terrorism. We're mixed in a civil war in Iraq and the problem we have is our troops are targets because we've become the occupiers.

They keep saying the same thing over and over again and they keep talking about how it's an open-ended policy, even though they say it's not.

We have -- what we have to do is give a deadline to the Iraqis. We have to work this out so that the president accepts this deadline so the Iraqis accept responsibility. We have to hold them accountable. We have to have hearings. We have to decide, OK, folks, sit down here and tell us what went wrong. Tell us all the mistakes that you have made.

And there's no question about it. The reason the military lost confidence in this secretary is because he didn't listen to them.

One thing about Gates -- and I've known him for years. When he was CIA director I was the chairman of the committee. He will listen to people. He will listen to the military.

And then the other thing that the secretary didn't do is go to the White House and fight for the appropriations that the military needs in order to get themselves back in good shape.

So we've got a new secretary. That's a little bit of a start. But we need a change in the policy and we need to force the president, work with the president but force him...

BLITZER: All right...

MURTHA: ... to see that that's what the people said.

BLITZER: With your expanded oversight opportunities right now, will you, A, use your subpoena power to bring in administration witnesses to get to the bottom of some of the issues that you're concerned about, specifically, the vice president, Dick Cheney? And, secondly, the power of the purse -- will you cut back on funding for the war in Iraq?

MURTHA: The first thing we'll do absolutely is subpoena power, if we need to. Now, most of the time administrations are cooperative, so we don't need to subpoena. But we'll put them under oath and we'll ask them what happened.

Why did we go into Iraq with insufficient forces? Why did we go into Iraq with inadequate body armor, with inadequate Humvees?

We want to make -- find out who's responsible for the mistakes that were made.

Why don't we have an exit strategy?

Then the next thing we'll do is make sure the troops get funded. There's no question about that -- we're going to fund the troops.

Now, most of the Democrats, Wolf, voted against this war because they didn't trust this president. I voted for it because I felt like we gave the president a club. I made a mistake.

Now, most of the Democrats, though, are voting for the appropriations for the war because they believe very strongly that we have to support the troops out in the field. So it's not a matter of cutting off money, it's a matter of reassessing, reassigning money. The other thing we have to do, we have to get this war money in the base budget. We can't keep putting out supplementals. We've got to say to them be realistic when you propose a budget for us. We want a base budget which takes care of short-term and long-term. We need to rehabilitate equipment.

We need to take care of -- the Army was in desperate shape, almost running out of money, not paying their utility bills. We don't have an active reserve that could be deployed if they needed to, in an area, to prevent war.

BLITZER: I was just about to say you've got a full agenda ahead of you.

Unfortunately, congressman, we're out of time.

But good luck with your new responsibilities. It's going to be an enormous change here in Washington, I suspect.

Thanks very much for coming in.

MURTHA: Nice talking to you, Wolf.

BLITZER: Appreciate it.

And coming up, today's Strategy Session takes a hard look at what the new Democratic-controlled Congress could face.

And is the Democrats' victory an unprecedented stumble for Karl Rove?

He's guided the Republicans to triumph so often in the past.

So what went wrong this time?

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There you see them right there -- Democrats win control of the Senate. They've won control of the House of Representatives.

There's a new political structure underway here in Washington right now. We're watching it every step of the way.

In the meantime, let's check in with Carol Costello for a closer look at some other stories making news -- hi, Carol.

CAROL COSTELLO, CNN ANCHOR: Hi, Wolf.

Good afternoon to you all.

Check your medicine cabinet. There is a problem with a popular painkiller. It is being recalled. The Perrigo Company is recalling 11 million bottles of acetaminophen. Perrigo says it found tiny bits of metal in some of the tablets. No injuries are reported. And, by the way, that's a generic version of Tylenol. The brand Tylenol is not affected. You can check out the FDA's Web site at www.fda.gov for a list of the recalled batches.

Figure skating champion Michelle Kwan is taking off her skates and dancing to a brand new beat. Secretary of State Condoleezza Rice says the 26-year-old will become a public diplomacy ambassador for the United States.

What the heck is that, you ask?

Well, in hip terms, the DAUS means Kwan will travel around the world and talk about American values to young people and to sports fans.

The Space Shuttle Discovery is on the launch pad, ready for its last mission of the year. If all goes well, it will blast off on December 7th. NASA is trying to get Discovery off the ground sooner rather than later.

How come?

Well, to avoid possible computer glitches that might happen if the shuttle is still in orbit on New Year's Eve. You know, the computer on board would have to roll over to 2007 and NASA is taking no chances.

As for what the mission is, Wolf, well, they're going to make repairs to the international space station and provide the most expensive cab fare in the whole world for one of the astronauts on board to come back down to Earth.

BLITZER: We wish him only the best.

COSTELLO: Absolutely.

BLITZER: Thanks very much, Carol, for that.

Coming up, a party 12 years in the making -- it's been that long since Democrats have been the boss in both houses of Congress. We're going to talk about the privilege and the pitfalls of their newfound power. That's coming up in our Strategy Session.

And his actual reporting was as famous as his reporting style. The veteran journalist Ed Bradley dead at 65. What a sad story. We're going to tell you how people are remembering him.

(COMMERCIAL BREAK)

BLITZER: You're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happenings now, for one party, it's over. For another, it's just beginning. Democrats have officially rested control of the senate from Republicans. This after Republican Senator George Allen concedes defeat in Virginia. Democrat Jim Webb is now Virginia's senator elect. Both men pledged to work together to try to ease Webb's transition. And to the victors go the spoils. With Democrats in charge, they could decide against keeping John Bolton as the United States ambassador to the U.N. Today the White House resubmitted his nomination. Bolton needs confirmation by the U.S. Senate. Last year, Democrats blocked his nomination prompting President Bush to appoint him in a recess appointment that's set to expire in January.

I'm Wolf Blitzer, you're in THE SITUATION ROOM.

So what happened? Democrats have officially rested control of both the House and the Senate from Republicans. Now some are wondering how a key Republican whose prior predictions were often so right, this time, those predictions were so wrong. Let's go to CNN's Brian Todd. He's joining us with more on this part of the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, those predictions came from Karl Rove, the president's chief political strategist. And despite pre-election polls indicating heavy GOP losses, many Republicans pinned their hopes on Rove because of his track record.

(BEGIN VIDEOTAPE)

TODD: Two weeks before midterms. Karl Rove exudes the confidence of a man who's won three national elections for his party. When an NPR reporter presses him on polls showing Republican fortunes slipping ...

KARL ROVE, POLITICAL STRATEGIST: I add up to a Republican Senate and a Republican House. You may end up with a different math, but you're entitled to your math. I'm entitled to the math.

TODD: Now in the wreckage of a Democratic route, Deputy White House Press Secretary Dana Perino tells CNN, there's no tension between Rove and President Bush. She says this comment the day after was a full-hearted joke.

BUSH: I obviously was working harder on the campaign than he was.

TODD: Perino says Rove who declined our request for an interview, doesn't spend a lot of time, quote, on the couch, thinking about his personal role in these situations. But others, even on the conservative side have had it with the image of Karl Rove as political genius.

ANDREW SULLIVAN, AUTHOR, "THE CONSERVATIVE SOUL": He didn't get a majority popular vote in 2000. He squeezed a 51 percent victory in 2004. He's been teetering on the brink ever since, and the base strategy now shows him not to be a genius but to be a real failure.

TODD: One GOP strategist says Rove's political team could have done more to warn voters about a Nancy Pelosi-led House. But some analysts believe Rove played too much to the base.

JIM VANDEHEI, WASHINGTON POST: The problem was it became such sort of a hard edge let's help conservatives, let's fire up conservatives, that they almost tied their hands. It made it very difficult to get out of that strategy and then to try to reach to the Senate.

TODD: But a GOP activist who knows Rove says there were forces at work here that even the so-called architect couldn't control.

GROVER NORQUIST, AMERICANS FOR TAX REFORM: Karl Rove is in charge of the get out the vote effort. In charge of the political campaign. The decision to occupy Iraq was not Karl Rove's and it's not exactly fair to blame him.

(END VIDEOTAPE)

TODD: Another long-time Republican strategist told me, quote, "no one's going to tell you with a straight face that Karl could have saved this election", end quote. The next election he says will also depend on Iraq. And he says Rove and the Republicans cannot get themselves into a situation where they're all defending the war, and the Democrats are all opposing it -- Wolf.

BLITZER: Brian thank you. Brian Todd reporting. In the wake of the Democrats' election victory, the talk here in Washington is change and bipartisanship. But can that really happen? Today in our strategy session, CNN political analyst Democratic strategist Donna Brazile, Terry Jeffrey, the editor of "Human Events."

Terry, pick up on this Karl Rove story that Brian Todd was just reporting on. Given the situation out there, the war in Iraq being as unpopular as it is. The Katrina disaster. Was there anything Karl Rove could have done to alter this Democratic victory?

TERRY JEFFREY, EDITOR, "HUMAN EVENTS": No, there isn't, Wolf. I think Karl Rove and I think more importantly President Bush made some mistakes on policy issues where they positioned the Republican Party in the wrong way. But the war was a big issue. If it weren't for the fact that we were still taking casualties in Iraq, we don't have a stable government there, Democrats wouldn't have run Congress.

If you look at a lot of the races the Democrats won, especially in red states. In Indiana, for example, Brad Ellsworth who beat Jon Hostettler. Joe Donnelly who beat Chris Chocola. These are extremely conservative Democrats. They even talk like hawks on national security. So it isn't as if --

BLITZER: On the other hand, Donna, when Republicans won, Karl Rove was a genius. So, they lost this time. So maybe not necessarily such a genius.

DONNA BRAZILE, CNN POLITICAL ANALYST: Well Karl Rove's a lot of things, but he's not a miracle worker and it would have taken a miracle for the Republicans to be able to capture the House and the Senate. Look, I want to put this notion to rest about the political affiliation of these Democrats. They are Democrats, they are reform minded Democrats. Yes, they are hawks, but so are a lot of liberals. They're hawks, they're hawks on deficits, they're hawks on the way things are being run in Washington, D.C.

BLITZER: I think what the Democrats are saying if the Republicans can be a big tent party with moderates and liberals, then the Democrats can as well. They don't all have to be -- liberals.

BRAZILE: But they ran on bread and butter issues. And it wasn't about liberals or conservatives, it was about right and wrong and they understood how to talk to the American people about those issues.

JEFFREY: In the last two presidential elections, we saw this Electoral College map where there are almost equal blocks of red and blue states. I think those blocks represented a deep cultural divide in this country. I think that divide is still there. And I think one of the things the Democrats did that was intelligent politically was go out and recruit candidates who reflected the red side of the divide.

The question is when those red state conservative Democrats come to Washington, are they going to vote with Nancy Pelosi the San Francisco Democrat, or are they going to vote with the Republicans? That's going to be a big question.

BRAZILE: You know, perhaps you should worry about the divisions in the Republican Party because they are still deep on immigration and budget and a lot of other issues. They will support Nancy Pelosi because Nancy Pelosi has led a unified Democratic Party and a unified approach to how we deal with Iraq, how we deal with the economy, and how we deal with other issues.

BLITZER: Will those red states that went Democratic, certain that some of those congressional districts, will they support a Hillary Clinton for president in 2008?

BRAZILE: That remains to be seen. Look, Claire McCaskill, we have a lot of great women and men who are coming to Washington, D.C. from red states. I don't know. I mean tomorrow begins a new day in the 2008 flood gates and we'll see what happens at that time.

JEFFREY: You know, if we still have a problem in Iraq in 2008, it's going to be very easy for a Democrat to take the White House on an anti-war plank. But if Iraq is settled and largely out of the way, well if Hillary is going to have the same problem the Democrats had in 2000 and 2004, she's going to need to win more conservative voters in places like Indiana and southern states like North Carolina. I don't think she can do it because of the record she's developed on cultural and social issues in the United States Senate.

BRAZILE: You know, in the closing days of the campaign, Rick Santorum was out there campaigning on issues ...

JEFFREY: A pro-life Democrat Bob Casey Jr.

BRAZILE: Campaigning on issues that he agreed with Hillary Clinton.

BLITZER: He kept mentioning her name too. BRAZILE: He kept mentioning her name, so don't be surprised. Hillary Clinton had a fabulous night in New York, upstate New York, down in Long Island. She was able to capture a lot of red state Republicans in New York. She may be attracted to them in across the country.

BLITZER: Both of you have been around Washington throughout today. We saw Nancy Pelosi in the oval office with Steny Hoyer meeting with the president. Both sides promising this is a new day. There's going to be cooperation. Two years left in the Bush administration. Can they work together right now to pass legislation that the country wants. That the American people made clear in this election, they want.

JEFFREY: I think it's very important that they get together and have a bipartisan policy on Iraq. I think conservatives right now are a little alarmed at some of the things that President Bush said yesterday. Where he seemed to be moving left to meet with Nancy Pelosi on raising the minimum wage.

On renewing the No Child Left Behind Act which was co-sponsored by Teddy Kennedy in Bush's first term. So there's a little worry, I think, in Bush's base that the president is going to reach out too far to the left to appease Democrats in Congress.

BRAZILE: Look, there's no question that Ms. Pelosi said today that this is the era of partnership not partisanship. And if we can find some things that we can work together, that's what the American people is now saying, let's work together.

BLITZER: All right. We'll see what happens. That good era of good feeling could last a minute or two.

BRAZILE: A honeymoon is always short.

BLITZER: We'll see how long it lasts. Thanks very much Donna and Terry. After losing both the House and the Senate, many Republicans are calling for a major party shake-up. While leadership elections will take place behind closed doors on Capitol Hill, this time around, some conservatives online want their voices to be heard. Let's bring in our Abbi Tatton, she has details. Abbi?

ABBI TATTON, CNN INTERNET REPORTER: Wolf, these are some conservative blogs that were urging wholesale change in House Republican leadership, even before the results came in on Tuesday. And now as the race for minority leadership positions is on, right- leading blogs including Hugh Hewitt calling on the GOP to let the Republican rank and file have a voice in this process.

Right-leaning Truth Laid Bear has got together a lot of conservative blogs to organize an effort to interview the candidates for the minority leadership post. They want the candidates to ask, answer questions of the people that they are going to be representing.

Now this has been done before in January of this year. All three candidates for House Majority leader agreed to give interviews to bloggers. And we should point out that some of these conservative bloggers seem to have their pick already for minority leader. Getting some early support from conservatives online. Mike Pence of Indiana. We'll watch this and see how it progresses -- Wolf.

BLITZER: Abbi, thank you.

Still to come, America Votes, the world reacts. Our Zain Verjee standing by to tell us what the world is saying about this major power shift right here in Washington.

And there was no one else exactly like him. That's what a lot of people are saying about Ed Bradley, the veteran CBS news journalist. He died today. We're going to tell you what else so many people are now saying about this great, great journalist.

(COMMERCIAL BREAK)

BLITZER: A day after the president announced he's replacing his Defense Secretary, Donald Rumsfeld is still on the job, but he was on the move today in Kansas suggesting has no regrets about his stewardship of the Pentagon.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: I would start on a personal note. My time as secretary defense, I've come away truly inspired by the professionalism, the dedication, the dignity of the men and women in uniform. And the folks at the Department of Defense, who work everyday to help keep the American people safe.

When I was in Afghanistan not long ago, a young soldier told me, he said, I really can't believe we're allowed to do something this important. You know, I feel the same way. I'm so honored to have had the opportunity to be part of something so important. So vital to the future of our country. And to the cause of human freedom.

(END VIDEO CLIP)

BLITZER: The nomination of Robert Gates as defense secretary is certain to bring with it some strategy changes. Let's get some details from our senior pentagon correspondent Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, it's looking increasingly like that Iraq study group of which Gates is a member will provide a road map to get U.S. troops out of Iraq.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Now that he's a short timer, even outgoing secretary of defense Donald Rumsfeld admits the current strategy in Iraq is not working.

RUMSFELD: It has not been going well enough or fast enough.

MCINTYRE: In an exchange with students at Kansas State University, Rumsfeld urged perseverance and resolve. As adjustments to the strategy are made by the man nominated to replace him. Former CIA director Robert Gates who is one of 10 members of the bipartisan Iraq study group charged with finding a way out of Iraq. The options include stay the course, which has already seen as failing.

Strategic redeployment, pulling the troops back perhaps as far as Kuwait as advocated by Representative John Murtha and other Democrats. More U.S. troops, which U.S. commanders say won't help in the long term, and partition along sectarian lines. Something the White House has labeled a non-starter. So the most likely options appear to be a phased withdrawal, under a carefully-planned timeline to force the Iraqis to step up.

LAWRENCE KORB, CENTER FOR AMERICAN PROGRESS: I think basically, unless we start a phased withdrawal, the Iraqis will never make the political compromises necessary to create an Iraq that's worth fighting and dying for.

MCINTYRE: And engaging Iraq's neighbors, Iran and Syria. Something commission group co-chairman James Baker says he's open to, but is vigorously opposed by hard liners.

FRANK GAFFNEY, CENTER FOR SECURITY POLICY: Will we be negotiating with enemies like the regime in Iran? In the hopes that they'll somehow help us solve the problem they're creating in no small measure in Iraq? And I think that's going to be a mistake, potentially, very strategic and long-standing dimensions.

(END VIDEOTAPE)

MCINTYRE: Senate confirmation hearings for Robert Gates are now set for the beginning of December and it's expected that the Iraq study group will provide its recommendations by early in January -- Wolf.

BLITZER: Jamie, thank you for that. Jamie's at the Pentagon watching this important part of the story. A defense department without Donald Rumsfeld. We'll continue to stay on top of this story every step of the way.

So how is the world reacting to Donald Rumsfeld's resignation and to the major power shift unfolding right now here in Washington?

Let's bring in Zain Verjee, she's watching this part of the story -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, the political earthquakes in the U.S. have triggered seismic celebrations around the world in Asia, the Middle East and Europe. Their message, the election has taught the president a harsh lesson. The main reason, they say for his defeat, Iraq. Many are hoping the Democratic control of Congress will force the president to be less confrontational and much more conciliatory in dealing with global crises.

A joint statement from more than 200 socialist members of the European parliament says the election outcome "is the beginning of the end of a six-year nightmare for the world." Venezuela's Hugo Chavez couldn't resist a dig either, saying the election was a "reprisal vote." Now in Syria, the information minister called the results "a real slap in the face for the Bush administration." Syria says it hopes for some shift in foreign policy.

(BEGIN VIDEO CLIP)

BOUTHAINA SHAABAN, SYRIAN CABINET MEMBER: I expect if the Democrats reverse the strategy, and start to think in a wise and just way, and in respect of human lives, away from the example of Abu Ghraib and the Guantanamo and the patriot act. I expect that all parties would be the beneficiaries and perhaps they would be able to reach a very good solution in Iraq. Good for the United States, good for Iraq and good for the region as well.

(END VIDEO CLIP)

VERJEE: One group of Iraqi insurgents gloated over the results of the election calling the Democratic victory a victory for the Iraqi resistance. Now look at some British newspaper headlines as well from "The Daily Telegraph," Rumsfeld is casualty of war. From "The Guardian," Rumsfeld pays price as U.S. sends message to Bush.

And from "The Evening Standard" in London, Bush's bitter winter. The possibility of any change, though in Iraq policy by the U.S., may be troubling analysts are saying, to allies like Britain, Japan and Australia, who have backed the U.S.-led war in Iraq. But Wolf, even with the Democratic victory and the replacement of Rumsfeld, it's really unclear though if there will be a major shift in Iraq policy -- Wolf.

BLITZER: Zain, good piece. Thanks very much. Zain Verjee reporting for us.

Up ahead, Jack Cafferty's question of the hour is on U.S. policy in Iraq. Will a new defense secretary make a difference? Jack, we'll be back with your e-mail.

And remembering Ed Bradley. We're going to go to New York for that. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Lou Dobbs is getting ready for his program that begins right at the top of the hour. He's going to tell us what he's working on. Hi Lou.

LOU DOBBS, CNN ANCHOR: Hi, Wolf. Thank you. Coming up at 6:00 p.m. right here on CNN, Mexico's president elect Felipe Calderone tells President Bush not to build a fence along our border with Mexico. We will be discussing Calderone's outright amnesty agenda for illegal aliens in this country. And open borders with someone who has just met with Mexico's president elect.

Also, a tight congressional race in Florida hanging in the balance. The Democrats have taken the House and the Senate. But now charges that e-voting machines wiped out as many as 18,000 votes in one district in Florida, even worse, no paper trail, no possibility of an accurate recount. That special report coming up tonight.

And will the Democrats do anything more than Republicans to help our nation's beleaguered middle class? Two of the country's leading authorities on Congress and its failures, Thomas Mann and Norman Ornstein will be among our guests. All of that and a great deal more at the top of the hour here on CNN. Please join us. Wolf, back to you.

BLITZER: We'll see you in a few minutes, Lou, thank you very much.

Right now, many are mourning the veteran CBS News journalist Ed Bradley who died today. Let's go to CNN's Mary Snow, she's in New York with this very sad story. Mary?

MARY SNOW, CNN CORRESPONDENT: Wolf, many here at CBS News so saddened and also stunned by the news that Ed Bradley died this morning of leukemia, he was 65 years old. He was so private that many said that they did not even know that he had been suffering from leukemia. He is being remembered here as a legend for his reporting.

From Vietnam in which he was wounded in 1973. To his investigative pieces the last of which aired on October 29th when he did an investigative report on a Texas oil company in a lawsuit there. "60 Minutes" executive producer Don Hewitt said simply that Ed Bradley is one of a kind.

(BEGIN VIDEO CLIP)

DON HEWITT, EXECUTIVE PRODUCER, CBS: I never worked with anyone I admired more, loved more. His dignity, he was a man among men. And it never went to his head. He became famous overnight, and you never would have known it.

(END VIDEO CLIP)

SNOW: His colleague Mike Wallace said that he was, his words, simply superb. Remembering profiles that ranged from the only interview with Oklahoma City bomber Timothy McVeigh to a profile of Lena Horne and obviously it was one of Ed Bradley's favorites.

(BEGIN VIDEO CLIP)

ED BRADLEY, VETERAN CBS JOURNALIST: If I arrived at the pearly gates and St. Peter said what have you done to deserve entry, I'd just say, did you see my Lena Horne story?

(END VIDEO CLIP)

SNOW: Commented on many times. Very sad day here at CBS. Ed Bradley had worked at CBS for more than 40 years -- Wolf.

BLITZER: Great journalist and terrific guy, 65 years old. How sad, this is our deepest condolences to his family. Mary, thank you very much for that.

Up next, will a new defense secretary really end up changing U.S. policy in Iraq? Jack Cafferty with your emails, stay with us.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Jack Cafferty. Jack?

CAFFERTY: Wolf, the question this hour is how might U.S. policy in Iraq change now that there's going to be a new secretary of defense?

We got this from Donna in Tampa, Florida, "I don't know how much the Iraq war situation will change with a new secretary of defense. But I think a new Democratic Senate and Congress will make a huge difference. The people spoke, they're against the war, and it's time for those elected to do the people's will."

M. in Columbus, "Jack I'm not sure how much things can change, as long as Dick Cheney's still around to give direction to George Bush, I think much of what has been going on in Iraq has been directly tied to Dick Cheney. His statement earlier this week that things are not going to change, that its full steam ahead speaks loudly of his power behind the throne. Too bad President Bush can't think for himself."

Julian in Orlando, Florida, "I think the difference Gates makes will all depend on Bush. Gates has the reputation of being a pragmatic thinker and if Bush gives him free reign to do his job, then he might make a difference. But if Bush's stubborn streak keeps him from changing policy, then the difference Gates will make will be minimal."

Bob in Maple Grove, Minnesota, "The man has changed but the situation has not. The options remain the same. If we leave now we leave the Iraqis hanging out to dry. We are in a no win situation. But total withdrawal will cause others' countries views of us to sink even lower. Gradual withdrawal creates a chance to train Iraqi troops who will be vital in the long run."

John writes, "Daddy's pal Jim Baker didn't go to Iraq because it's warm there. He went there to report back with the bad news Cheney didn't want the president to hear. Now Mr. Ex-CIA man is there to help cover up the nasty stuff, while the White House finds a way out of Iraq without having to call it a loss."

If you didn't see your email here, you can go to CNN.com/Caffertyfile, where we post some more of these online -- Wolf.

BLITZER: I covered Robert Gates when he was the CIA director during the first Bush presidency. The first President Bush, he's a very, very smart guy. Worked his way up as an analyst at the CIA as a Sovietologist.

CAFFERTY: He's the only CIA employee to my knowledge and I think this is accurate to work his way up from an entry level position to run the whole place. Pretty impressive stuff. BLITZER: I think you're right on that last point Jack. Thanks very much, see you back here in an hour. We're in THE SITUATION ROOM, 7:00 p.m. eastern, one hour from now. In the meantime, let's go to Lou Dobbs, he's standing by in New York.

Hi, Lou.

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