the movie. thanks for watching. i'll bill o'reilly. the spin stops right here. we are definitely looking out for you. >> sean: tonight the obama campaign proves that it's in panic mode and go head to head with james carville but they stoop to a new low claiming that mitt romney may have committed a felony. deputy campaign manager said that governor romney allegedly falsified his sec filings during his tenure at bain capital. it prompted governor romney to

demand an apology but they said governor romney should stop whining. >> he is not going to get an apology. mitt romney a few months ago said to his opponent to stop whining. instead of whining about the obama campaign, put the facts out there. >> sean: now as they continue to distort the record of bain and make wild speculation about outsourcing, president obama's record, why are so many of his surrogates hosting fund-raisers overseas. france, sweden, switzerland and list goes on and on. it shouldn't come as surprise. he has a long history of shall we say outsourcing. remember all of the american tax dollars that were used to create countless jobs overseas thanks to his failed stimulus plan.

as we saw this weekend, putting an astronaut on the space, we have to pay russians millions of dollars for the ride because we no longer have a space shuttle program. another example of obama outsourcing. joining me now to reacted and much more, author of brand-new book, good friend james carville. last time we debated, tim russert. >> that was a lot of fun. we went to different places like orlando. >> i love your wife but i don't what she was thinking. >> sometimes i wonder myself. i'm a lucky guy. i'll take it. >> shep: you said recently that you are a clinton guy. someone was asking a question. you really are a clinton guy?

>> right. >> sean: let me tell you comments because we're now in the negative campaign part of this process. hillary and bill bring you back to the primary campaign. >> so shame on you barack obama. it is time you ran a campaign consistent w your messages in public. that is what i expect from you. meet me in ohio and let's have a debate about your behavior. >> i think they played the race card on me. we know they did it all along. >> those are pretty serious allegations. >> if i went back and gingrich or rick perry said about romney i could find all kinds of stuff like that. truth of matter president showed good judgment to pick senator clinton to be secretary of state first democrat that has been ahead on foreign policy.

jerry brown said things about us in 1992. that happened. it happens in any primary, but you know at some point it's water under the bridge. senator. >> we can go back and find all the things that gingrich said. like i said rick perry. >> sean: race card is about serious. i don't think bill clinton ever got over it. >> i talk tuablgsd to him monday he had a fund-raising thing. secretary of state is the most important job of the administration. >> sean: you wrote this line, it's the economy stupid. i agree with you and middle-class we agree on that. >> i hope so. >> sean: romney says it's still the economy and we're not stupid. here is the question, are we better off economically than we were four years ago and five

trillion dollars in debt. >> we were 750,000 jobs, we were losing them per month. had this recovery had been everything we hoped for? we find out financial crisis was very tough. we've had a really understandably but half a million public sector jobs here. >> shep: so less americans working now than what obama took office? >> private sector jobs are up. they got more private sector recovery, more than the recovery of 2001 at a comparable time, more private sector jobs. it's an insufficient pace, i completely agree with that but that is a fact. where the devastation has been in the public sector. >> sean: for the first time in

american history we had our sovereign debt downgraded. we have federal spending, percentage of g.d.p. the highest since world war ii. we have long term unemployment highest since the 1930s more people on government assistance than ever before in history. fewer people paying taxes than ever before. obama said he is going to cut the deficit in half. he was going to get rid of earmarks and turn this economy around. you are going to say he succeeded. >> if you asked ee, we are better off. we are lies go 750,000 jobs and now creating 80,000 jobs a month. you may not say 80,000 is not very good it's a lot better than losing 750. the truth of the matter is, the aftermath of this financial crisis this has been a very

difficult recovery. in terms of the deficit it's 15% of obama's policies, 85 were the policies of the prior administration. when you have a recession -- i'm dealing with what the facts are. when you have a recession sure taxes go down because not that many people are working and unemployment goes up because there is not that many people worker. it's 15% of what we now as a result of obama's policies. >> sean: the problem i have with your numbers. the problem is the participation rate at the level when obama took office we would be 11% unemployment. his administration predicted at 5.6%. all his predictions from cutting the deficit in half, all his predictions about the economy have been dead wrong. you said in a recent interview

biggest problem is the deficit. no president has accumulated debt than him. >> they are not my numbers, 15% of this deficit is obama, 85% is bush. cbo the biggest contributor they say biggest contributor is bush tax cuts. the point here i think this recession and done research the aftermath of a financial crisis has put this very nasty recession. that is what happened. this was not a normal -- you could say interest rates. interest rates were zero. they had nothing they could do about monetary protection. it's been tough on the middle-class. they lost 40% of its wealth between 2007 and 2009.

it happened around 2009. it happened by 2009. the research showed the chart it and from 2007 to 2009. there hasn't been a race in 30 years it's gone up. the only time the middle-class got a raise --. >> sean: this is the campaign and you are pretty smart strategist. i'll be honest i would take clinton over obama any the day. maybe i was wrong stopping the hillary express. here is the bottom line. this president, i call him president crybaby. he blames fox radio and rush limbaugh and everybody but himself. do you think in some way he has failed when the jobs were outsourced and stimulus to

foreign countries. >> you are asking me what should have happened, sure, why not. somebody has to be president for three and a half years. you go back and say do you disagree with this, sure. overall i think he has done a good job. i think he is going to negotiate. i think our foreign policy has been pretty good. i think a lot of things have worked pretty good. i think the gm crisis worked pretty good. if he made some mistakes, of course he has. >> sean: getting tomatoes thrown at him the arab spring. >> the muslim brother lood they don't like us. i saw it coming. she is diplomat, one thing diplomats do you go to places where you are not liked. that is the nature of being a

good diplomat. i mean i think that she knows that she has a tough job she is in tough spot. you just don't go to the people that like you. you have to go to the people that don't like you. >> sean: that is why you are here. you are in the bell liquor of the beast. >> i like you. >> sean: i'm kidding. we'll continue with james carville and lake dick morris handicaps the field and who he thinks romney should attack. that and much more straight ahead. on 4 [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ]

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>>. >> sean: welcome back to hannity. welcoming james carville. his book is in stores everywhere. we were talking about bill clinton earlier. big part of strategy is class warfare. >> warren buffett said my class is winning. middle-class has been losing this for a long time. they have been under siege. my message is time to fight back for them. >> sean: when bain first came out was clinton and booker and rendell, they said it's stupid but the president seem to have doubled down. >> i think smartly. >> sean: you do? >> hurray chicago. >> sean: so you want politics of

personal destruction? >> i don't want that. i want to say here samantha is running for president that puts his experience at bain at the center of rationale for his candidacy. yes. people are going to question it. i think that is fine. i think let's go look at the entire record. when we ran for president in 1992, they were accusing us of murdering people at the airport. who killed vince foster. they accused us of that. >> sean: let me show you the president on issue of personal tax. you look at the latest "washington post" poll it shows 47-47. they outpolled democrats by nine percentage points from economy straight on down he is lieu go. this was the president on

personal tax in 2008. >> these negative ads, negative attacks spending all this time talking about me instead have talking about what he is going to do, that is not going to lower your gas prices, it doesn't do a single thing to help the american people. it's politics of the game. we don't need the slash and burn say anything, do anything politics. does it bring us together? if you don't have any fresh ideas, you use failed tactics to scare voters. if you don't have a record to run on, then you paint your opponent as someone people should run from. that is why he has spent the last few weeks calling me every name in the book. that is how you play the game. if you can't beat your president obama's ideas you destroy those ideas and make some things up.

>> war on the women and war on everything else. >> there was a signature accomplishment. he passed a very good healthcare bill. this is what it is. look, obama in ohio primary ran 30,000 spots. 29,000 were negative. gingrich famously said the problem if he had 17 billionaires and i in only one. this is the nature --. >> sean: what he said back in 2008, those words he used show me. >> i think what is happening in the republican party is this. i think the republicans are mad. you know why? because harvard educated community organizer is beating them in a street fight. they are used to winning these

fights. obama people are outflank go and outmaneuvering and beating the romney people and everybody knows it and people that are watching this network knows it. because the campaign and romney is not standing up for you. how can i guy running for president and not getting rid of swiss bank accounts. he didn't want to go to the trouble. he different the nomination and now he has -- he ditched the nomination and they are angry at romney. look --. >> sean: you seem to be convinced that the economy is good. we are better off. i'm telling you, wait a minute, black unemployment is 27 year high. it's a 14.4%. 11% in the hispanic community. we have long term unemployment since world war ii that is worse

he said he would fix it. >> i have been very vocal to the obama campaign, don't say that the economy is good. i've been consistent about that. you asked me several questions. okay, do i believe that. if you ask me if the economy is good, no, i don't think the economy is good. i think the economy was horrific before. >> sean: you as a democratic hard-core liberal that you are, who is the one vp selection you fear the most? >> i don't know because political scientists are trying to find if it makes a difference. they haven't been able, lyndon johnson in 1960. he obviously hoped for somebody. >> sean: who would you fear now?

>> nobody. i wouldn't fear anybody. >> sean: if you were to advise romney who would you tell him? >> let me tell you about romney. i think he is guy, cautious guy. i think he is going to give it a lot of thought. >> sean: pawlenty. >> somebody he feels comfortable with. >> it might be your governor? >> i like governor jendall and i don't has done in louisiana. other things i have i have found myself to get along with him very well. he has been helpful to me. >> sean: thank you, appreciate it. all the best to mary. coming up, condi and pawlenty, vice president rumor mill is kicking into high gear and an announcement may be coming up

this week. that and much more coming up tonight on hannity.

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>>. >> sean: on the campaign trail who be the presumptive nominee. names of many current political

stars are being thrown around. "new york times" are reporting that close friends of romney campaign that the former governor has made his decision and very possible may be tim pawlenty. they denied a selection has been made but he confirmed it could happen as early as this week. this news as more speculation mounts that former secretary of state condoleeza rice is a top contender. with laundry list of names being floated and one position to fill we turn to former clinton advisor, and author dick morris. i love to listen to james carville. >> he should put sub titles in english. >> he is such a passionate partisan. it's interesting to hear. >> no big issue, that is carville. i don't think that is going to

fly with the american people, but when he said salute to chicago. these attacks are what concerns me to a certain extent. if they allow a narrative to set in cement they are going to have a tough time be it bain or the economy or class warfare. i think they are making a mistake. >> the bain is the bain of their existence. it's crucial they answer this and they haven't. they put on some pathetic ad where it said hillary clinton shame on you barack obama. there is another one bill clinton says he has a sterling business record. in my lifetime that stuff has never worked. you have to put on the success stories. there is a company called dynamic steel. romney came in, get rid of the

blast furnaces and got the investors to change the company. now it's the fifth largest steel maker, 6500 employees. average pay $85,000. i think romney had a spot, a wonderful 60 second spot that they pulled too soon. they have to put that spot back on the air right now. for a thousand points in each market in the battleground states, hammer it home. if romney is seen as a deal maker, a capitalist and not an entrepreneur, someone who helps the rich and doesn't help the middle-class he is going to get killed. also you have staples and all these other success stories. >> sean: there are many people that were on the verge of losing their jobs, bain capital had to restructure but we brought these jobs back. >> normally when you get hit with the negative, you don't want to answer it. you don't want to be diverted. here bain capital is a positive

message. nobody cares about the olympics, nobody cares about massachusetts governor. they care about bain capital. if he goes into this convention without rebutting the bain capital, i don't care about 1999 that is distraction. he has to show people he created jobs for middle-class americans and he has to do it before the convention. >> sean: do the reversal obama ad. >> put somebody on that got a job. the ads that i love they took off the air, a worker said, i'm pursuing the american dream thanks to mitt romney. >> sean: funny thing is when you listen to the president excoriate small business owners he has never created a job in the private sector. he has lost a million jobs since he has been president.

so would it be a good decision to choose the vp this week? >> no, terrible decision. most important thing in a political campaign for president is the convention. you get normally a ten-point bounce off the convention. in 1992, clinton got the ten-point bounce and bush didn't. that gave clinton the election basically. so obama's biggest problem nobody is going to watch the convention because there is no drama there. romney's only way is the vp pick. he should not make the pick now. he should make it later. he should not choose condi will relitigate the iraq war. i think she should be president. but let obama run against the iraq war. it should be marco rubio the only vice president pick is the latino vote is rubio. everybody else is just a nice

also. biden didn't do anything for obama's ticket. vice president's usually don't rubio would do really well. >> shep: that is my choice. >> every time i have been in a republican event, rubio always win in a straw poll. pawlenty proved he couldn't get votes. portman is very dull. the idea he can carry ohio is ridiculous. >> sean: he is most popular politician in ohio? >> i don't think people vote for vice president. but latinos will take it as a signal that romney is pro latino that will make a huge difference. >> sean: great to see you. congratulations on the book. also coming up.

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the works fuel saver package. just $29.95 or less after rebate. only at your ford dealer. so, to sum up, you take care of that, you take care of these, you save a bunch of this. that works. >>. >> sean: tax megeddon is looming as they are threatening to let the tax cuts expire in january. the so-called evil wealthy people but earlier today patty murray, said what will happen if they did not support president obama and the left agenda. >> if we can't get a good deal, a balanced deal that calls on the wealthy to pay their fair share, then i will absolutely continue this debate into 2013 rather than lock in a long term deal this year that throws

middle-class families under the bus. i think my party and the american people will support that. i will not agree to a deal that throws middle-class families under the bus and forces them to bear this burden alone. unless republicans end their commitment to protecting the rich above all else, our country is going to have to face the consequence of republican intrangisence. >> she has been endorsed by ann romney and looking to be the first african-american republican woman. good to see you? >> hello. how are you. >> sean: appreciate you being here. it's interesting because she talking about throwing the middle-class under the bus. all republicans are saying is something that barack obama said. you don't raise taxes in a slow economy or a recession, period.

the democrats aren't mentioning they want to raise taxes on middle on obamacare which is the largest tax increase ever? >> what they are doing is throwing all the american under the bus. because if they continued to push on with this tax increase which these are the people that provide jobs, they are taking the poor, they are taking everyone who is working and throwing them under the bus by not allowing tell to have a job. 94% of the businesses in the state of utah are small businesses. what happens if we continue to impose tax upon tax and immaterial pose this obamacare tax on them, what is going to happen for the people that work for these companies. they will no longer have a job. >> sean: i think the democrats blink because they know tax increases are not popular. this is part of that their strategy. president made this comment about small business. made a lot of headlines.

it's really important because it reveals a lot about his belief system. >> if you are successful somebody along the line gave you some help. there was a great teacher somewhere in your life. somebody helped to create this unbelievable american system that we have that allows you to thrive. somebody invested in roads and bridges. if you have a business, you didn't build that. somebody else made that happen. >> sean: you didn't build that? who built that? who built that business, who invested? what is he talking about there? >> you know, my parents came to this country with ten dollars i. they worked hard to achieve the american dream. if i am here as the mayor of my city i am able to support and serve in my city and be the republican nominee it's the hard work of my parents who have been

able to sacrifice so i can achieve the goals i have today. that is what the american dream is about. it's not about federal government. hope and change he talks about lies in federal government. the hope and change lies in people. >> sean: all this president does every day he is trashing small business, the job creators the backbone of this country. you mentioned your family. i have been using ancestry.com and i found out my grandfather landed in ellis island in 1941. he only made $600 for the entire year. everybody that i know that has a small business, they all took a risk. it seems like it doesn't respect the risk that these entrepreneurs are taking. so how do republicans counter that? >> what we have to do, i believe we have to make the moral case. i think you talk about facts and figures all the time.

yes, they back off what we're saying. we need to talk about the fact we are literally stealing from our children to pay for the present. we are stealing from the future to pay for the present. these children that grow up, they won't have the same opportunities that we've had because they are going to have the $16 trillion debt looming over their heads. they are not going to have the same opportunities to start a business because they are going to have all this regulation. they will have complete unpredict built if we go in this direction when it comes to taxes and things to start out your business. >> sean: we appreciate from being here from salt lake city. >> check in with greta van susteren for a sneak peek. it's always sneak. >> greta: we have great line-up. jeff sessions, ron johnson, congressman to tell us whether tea party is going to have a

role at g.o.p. convention. it's a little bit of a surprise involving chris christie and we have that and much more. >> sean: i don't even know what it is. >> greta: i told you it's a surprise. it's a surprise we didn't expect. it's surprise. >> sean: we'll be watching. cal thomas and beckel will be sitting right here on the great, great american panel, next. but when joint pain and stiffness from psoriatic arthritis hit, even the smallest things became difficult. i finally understood what serious joint pain is like. i talked to my rheumatologist and he prescribed enbrel. enbrel can help relieve pain, stiffness, and stop joint damage. because enbrel, etanercept, suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred.

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i say some of you have been standing for a while and i see a couple of folks slumping down a little bit. make sure you are drinking water. bend your knees, don't stand up too straight. the paralegals -- you don't need lawyers. >> sean: the course of the last couple years he has said this. >> over the last 15 months we traveled to every corner of the united states. i have now been in 57 states i think one left to go. >> on this memorial day as our nation honors it's unbroken line of fallen heroes and see many of them in the audience here today, our sense of patriotism is particularly strong. >> there is lot, i don't know what the term in austrian. wheeling and dealing. >> representatives of the

extraordinary work that our men and women do all around the world. navy corpsman brishard. the men and women like -- >> he doesn't know what a corpsman is. >> how, he has extra space. >> sean: if this was president bush, cal, come on. >> you go back to gerald ford who was accomplished football player, great athlete. saturday night live with chevy chase. dan quayle misplaced potato once. if it's a republican you get treated one way. a democrat can get away. >> bob: first of all it was george bush, wasn't it? didn't he mangle words a lot. i suppose you could go back on

any president and you could make a big thing out of it. it's fine. i think it's kind of humorous. >> sean: do you agree, because he reads teleprompter. there is michelle and there is the teleprompter. its natural barrier. >> bob: you better be careful where you are going. >> sean: i'm joking. he didn't know what a corpsman was. he read it wrong three times. >> bob: maybe he had been at the city morgue. >> sean: that is a little scary. >> bob: it doesn't scare me. obama is an eloquent speaker. so much better than republicans i know. >> if they did it to republican, they would call him like george bush, an idiot.

look a corpsman he should know better. she harvard man. >> f i heard bill clinton, he referred to a destroyer as some other ship. if you have a camera on you all the time, point is double standard. if you are democrat you get away with it. if you are a republican you are a moron. >> bob: you have to stop whining. >> sean: let's go to the latest ad. i want to get beckel's response. let's put him in the corner and get his reaction. >> when the president was elected he talked about hope and change. whatever happened to hope and change. he seems like he is coming right out of the box with old-fashioned negative ads. >> i went extremely tough and hard. frankly things that are inaccurate. >> he has run more negative ads

than have ever been ran in the history of the world. >> sean: question is now he has rung so negative, can it work? i'll ask you first? >> i don't think that kind of negative works. bob came back and blasted him for that. that was a news show. they edited and cut it. >> bain, war on women, the dogs. >> bob: let me go back. richard daley this is not beanbag they were playing here. and romney does not know how to handle tough politics. >> somebody should be held accountable to the standards they profess. barack obama, hope and change, ten years ago we had bob hope, johnny cash and who was the other one. today we have no hope and out of cash whoever the third guy is. >> the reason he is doing this,

they don't have anything. look, bill maher came out with tweet thing he hoped his million dollar donation went towards these bad ads. >> what is romney's answer to everything. >> his experience. >> he created jobs. >> bob: he never created jobs. >> you mean too tell me. i want to know specifically that mitt romney has done about creating jobs. he is failed governor in massachusetts and guy who cut the law on bain capital. >> come on. >> bob: we're a lot better off than we were four years ago. i have to stop lying, i'm telling you. >> sean: we'll take a break,

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>> you don't know what the -- >> what. >> are we on the air? >> can't i control my own show. >> get a floor director.

only kidding folks. >> it's not hbo. >> sean: it's not funny now. >> it wasn't funny that night with your head down and thinking you were fired. i had to talk you into the fact you weren't going to get fired. >> how many times did i call you that night? >> you were very nice to me. i was just making a joke. >> sean: that is not funny. that was a trauma for this show. i wanted to see your face when i said it. >> sean: let's go to bill maher, called governor palin and million dollar obama donor. put up a tweet, mitt demanding an apology, dems are learning from republicans how to

be mean. >> two words -- seriously this guy is disgrace. he goes around and tweeting it. his money probably did go there. >> sean: does romney need to fight back hard other this bain issue? >> yes. >> because they are saying he is not fighting hard enough and relying on the super pac. >> i agree with that. i talked to a major player last week who didn't want to go on the record about it. he has been advising romney to attack and attack. i think it's important for romney to counter what the president is saying but to put out a positive message of his own. i'd like to see more people that overcome circumstances of poverty without the government up there on the stage telling their story. >> this is about people whose jobs were saved. >> i think dick morris was right. >> i think in new delhi -- no,

going negative you have to have a candidate handle being negative. i don't think mitt romney who is nice guy can handle that kind of campaign. i think he should come out with something. it took him a long time to get there. if he is going to rely beating barack obama he has to be tougher and meaner but he doesn't have it in him. >> sean: if he is as tough as he was in the florida debates and like against newt gingrich. >> i think the debate will win some of the independents, i really do. >> we can't win without florida. >> sean: why do i keep hearing they are not going to pick rubio? >> obama has to