hannity is next and we'll see all of you premium members, the ones with the big discounts on the factor postgame show. hope to see you next time. the spin stops right here because we're definitely looking out for you. [captioning made possible by fox news] tonight -- >> over the last day and a half obviously there's been all sorts of controversy. >> president obama refused to apologize. >> what we used to call the [beep] syndrome. >> a racially charged speech by professor gates surfaces on line. >> with this decision now i'll be able to fight even harder for you. sean: she's out of the governor's mansion but she's not done fighting the >> i just know what we must do.

sean: and the president's approval rating drops as the dow rebounds. stimulus money again flushed down the toilet. literally this time. all that plus dick morris, michelle malkin, and frank luntz. now the racial controversy stirred up by harvard professor hailshails -- henry louis gates jr. has focused the nation for five full days now. he has tried to make a case for persistent racism but the audio recording by the cambridge police department today should put to rest any assertion like that. >> are they still in the house? >> they're still in the house.

sean: meanwhile, old video of professor gates has re-emerged. >> without affirmative action we would never have been able to integrate racist, historically white institutions in american society and for me, someone who has benefited so much from the opportunities of affirmative action to stand at the gate and try to keep other people out would be to be as hypocritical as clarence thomas. we're also trying to end what we used to call the white [beep] syndrome. this place ain't big enough for more than one. sean: and he told root.com, "there haven't been fundamental structural changes in america."

now, even a cursory wlook -- look at this case and the people involved in it would know that the people using it are professor gates, not the cambridge police department. joining me is fox contributor dick morris. thanks for being with us. >> good to tee -- to see you. sean: i guess, puting aside radibal professors on college campuses aside, ward churchim teaches still, but we've got, the idea of the president coming out and stating that the -- he doesn't know the facts and that the police acted stupidly and then lecturing everybody, it's hurt him in the polls. >> oh, tremendously. he was tending down to 40 -- 48 in zogby and 49 in rasmussen before this happened and it's probably lower now.

everything this guy says is polled. that's why he keeps repeating the same words over and over again. "this is an effort to end the deficit, this is to extend freedom of choice," these are all polled phrases. . he was not follow -- polling this one. he shot this from the hip and we had a rare chance to see the real barack obama and a lot of people don't like what they saw. >> by what, three to one, people said what he did was wrong here. what do you think it means? we've learned a bit more about professor guess. he did this interview on c-span, book notes. >> and that 911 call you played, there was no indication she knew they were black, the woman making the call. >> and more importantly, the officer seemed to be in complete control, he wasn't angry the what do you think about this interview, malcolm x, he said my mother hated

black people and -- >> you know, there is this undercurrent that goes on. i remember back to the days before the election when you kept talking about reverend wright and i said that reverend wright and obama are two completely different people. well, i think i was wrong. so now i'm not going to say that. think that you really -- sean: any time you want to come on the show and admit he -- i was right, you're welcome to. but there is a connection. i felt strongly about this at the time and i do today. if you spend that amount of time, anybody can have a bad association but after you realize somebody is really extreme you dissociate from them. he never did that. >> never did that. you know, police, black-police relationships is the only field in which there is a substantial difference between black and white perceptions. you don't have it on crime or affirmative action or anything else. but you have it on police

relations. whites say there is no bias, the blacks say there is a bias and it runs very, very deep in the black psyche that this settle case because, particularly with the black middle case. when they're in the car they feel the cop is picking on them and -- and they always feel they have to watch themselves because they're worried about that. think -- i think that runs so deep in the psyche that obama plurtd it out. sean: it's -- let's talk more about the polls and trends. the president has his lowest ever now on rasmussen, minus 11. chris dodd, hair -- harry reid, boxer, pelosi, record low numbers. how do you interpret these trends? >> clearly there has been a major trend in the last month, two months but certainly the last month away from obama. every single poll has them

dropping, has the democratic party dropping, has health care reform dropping and the interesting thing about this is we always liked obama more than we liked his programs. now he's using his popularity to run -- sell his programs and the problem is that's lowering his popularity and the lower his popularity gets the less likely health care is to pass. so when he pushes health care he's hurtt -- hurting health care because he's bringing down the ratings he needs to get it passed. sean: if -- in that sense is that why this gates issue is important? people gave him the benefit of the doubt. they said guys like hannity are wrong, he's not reverend wright. now maybe they're seeing another side of him does that chip away alt his personal popularity? >> it does a great deal and makes him suspect on all his positions. but it's not that he's pro-black, it's that he's coming across as anti-police. the real issue is not respect

for the black community but respect for the men and women in uniform. sean: and he's had trouble with health care. there seems to be emerging what they're calling not necessarily the government option but a government co-op. they've changed the wording. no doubt it's been poll tested. do you think if they can find revenue newtality in this they can a chance of making this work? >> i'm reminded of a kfings i had with hill ay when health care was definitely dead and i said why don't you come out for a more limited bill? she said no, we have to make this change. it would be like squeezing a balloon. it was like talking to a marxist and that's the same type be mindset these health care types, it has to be all or nothing.

we point out in "catastrophe" how terrible that will be. hillary's proposal lost because of middle class voters. his health care is losing because of senior citizens. they are getting that this is creeping euthanasia. two-year wait for this, you can't have that. >> and they're going to have mandatory counseling sessions with seniors about their, quote, options. it's eerie. and they tried to move to the center. the clintons. do you think barack obama, and up to this point up said you don't think he has the it, do you think he will have the capacity to move to the right for political expediency or will he adhere to his more radical views? >> i don't know. my guess is he's radical. my guess is he won't move but you don't know.

that is the question. sean: if he moves does it help him? >> well, yeah, it helps him but his programs don't pass. there are seven people worthy of note. they are the seven blue dog democrats who are holding up health care. if you are in their districts write and tem them up love them. john barrow of georgia, bart gordon of tennessee, baron hill of indiana, jim mathison of utah, charlie medical an conof louisiana, mike ross of arkansas and jack space of ohio. these are the true patriots who are saving america's health care system. and they deserve your support. sean: if they feel strong. >> when they feel the heat they see the light. sean: coming up, a waste 101 update that will have you up in arms. and a closer look at former

alaska governor sarah palin's speech yesterday. how did her parting words go over with the american people? frank luntz is here for analysis.

sean: we always knew the government has -- was good at flushing your money down the toilet and this proves it. according to "the new york post," tens of millions of dollars from the obama stimulus plan are being spent on

toilets. in new mexico, almost $3 million has been al lotted to restore restrooms in national parks.

sean: now this weekend sarah palin officially stepped down as the goff of alaska. her plans moving forward are still unclear but she's vowed

to continue fighting for the conservative causes she believes in. now to help me analyze is frank luntz. let's go through this one by one. i love this statement about the media and saying how about in honor of the american soldier up quit making things up. how did it rate? >> well, let's -- the quip is amazing because she really focuses on the press and gives them a great shot. let's listen to the clip. >> some straight talk for some, just some in the media because another right protected for all of us is freedom of the press and you have such important jobs, reporting facts and informing the elect orator and exerting power to influence. democracy depends on you. that is why our troops are willing to die for you. so how about in honor of the

american soldier, you quit making things up? [cheers and applause] sean: pretty powerful, frank. >> oh, yeah. she's going to give it to them. she's tough. by the way, the language i saw in her resignation speech was much more effective than when she stepped aside five, six weeks ago. this was clearly prepared. she had the right language, very tough. based on these words, abandon whenever you are going aft media it means you're not going away and based on these words i don't think her future is in doubt. it's pretty clear she's going to be a candidate in 2012. sean: i kind of think your speculation is probably right and she in spite of what the predictions of the media have been, they're -- they've been wrong about her in the polls, but she really defend our media. we are fatesing tough challenges in america with some seeming to be hell-bent maybe on tearing down our nation,

perpetuating some pessimism and suggesting american jetics, -- apologietics. seg -- suggesting that our best days were yesterdays. how can that be when proof of our greatn't -- greatness and pride today is that we produce the great, proud volunteers who sacrifice everything for country? sean: clearly the antithesis of course obama's apology tours. >> the yeah. and that's smart. the american public has always looked toward the future rather than the past. one of the things, the hallmarks of the past six months, the american public have been pretty negative the last six months and they're turning more positive. and being the most optimistic,

criticizing those who are criticizing those who criticize america is very important. >> you're going to see anti-hunting, anti-second amendment circuses from hollywood. here's how they do it. they use these delicate, tiny, celebrity starlets and use las lasss as a fundraising tool for their anti-second amendment causes. stand tall. we will protect our right to bear arms and by the way, hollywood needs to know we eat, therefore we hunt. sean: frank, that went over pretty well in my mind. >> it would go over well. though i would hate the idea of eating the things i would kill. i'll tell you, this is a

perfect stump speech for someone who is looking at what's going to happen three years from now, anti-media, anti-hollywood, pro optimism. i hope you have time for that one last clip. this settle bev -- is the best of alling. sean: rolt tape. we must value and live the optimistic, pioneering spirit that made the state proud and free, and we can resist enslavement to brig -- big central government that crushes hope and opportunity, melting into washington's powerful care tampa baying arms will just sentence us to work hard and chart -- suck incentives to work hard and chart our own course right out of us. it does make us less free. sean: of all the clips, that was to me the most powerful. >> it is the most powerful.

that's the one that's going to appeal to independents, to independent democrats. and the phrase, dizzying debt, perfect alliteration. this is someone who is starting to understand her power. very impressive. sean: dizzying debt and government's care taking arms. clearly a contrast against obama. seemed very effective. overall, how would you grade it? >> overall, her speech five weeks ago a c plus. this one, a minus. sean: frank luntz. thanks for being with us. coming up, a north korean official blasted hillary clinton saying she looked like a school girl. her response is up next. that and our great american panel.

sean: tonight in hannity's america, the washington post editorial page this weekend lambasted the president for his dishonest rhetoric on health care. the post points out that "sticking with the status quo is a bad alternative" but he

isn't leveling about the consequences of change. sean: unfortunately if the president gets his way we may be in for just that. and in recent days, officials from north korea have taken personal swipes at her highness, hillary clinton. yesterday she had a chance to respond. her appearance on meet the press is the subject of "liberal tranceation." i think they are very isolated. i saw that at the meeting of the association of southeast asian nations. i was in the same room with a riment from north korea.

-- representative from north korea. who launched a broadside attack on the united states blaming us for everything that's of gone wrong in north korea going back decades. i listened. even else just didn't even look at him. i was struck by the body language. they don't have any friends left. sean: maybe president obama will give bar stool diplomacy a try with north korea. i heard kim jong il prefers light beer. by the way, a fox news opinion dynamics poll shows the president's approval rating has

dropped sen points in the last month. but there continues to be some good news on wall street with the dow jones industrial average now back over the 9,000 mark. when we put those lines on the same graph you can see that as the president's job approval rating crumblesing the dow has been on the rise. just a coincidence? we'll let you be the judge. "newsweek" magazine has outdone itself this year in terms of predictions about the way the nation is head back in february the editors announced we are all socialists now. and then the decline and fall of christian america. you won't believe what they're reporting this week -- good news, everybody. the recession is over. hope they let us know when they

return from president obama's fantasy land and rejoin us back here on planet earth. hannity's america continues in 90 seconds.

sean: guess what?

today marks bo obama's first 100 days in office. the "new york times" marked this momentous occasion by publishing an op-ed by the dog. sean: fascinating. and they wonder why circulation is down.

sean: a brand-new book hit stores earlier today that the white house doesn't really want you to read. joining me with an exclusive first look at the culture of corruption, obama and his cronies is michelle malkin. nice to see you here. >> good to be here. sean: you've got baseball cards, chris dodd, joe biden -- >> of course. sean: are you selling these? >> we will. sean: and bubble gum with them? >> not net -- yet. but collective. those are the dirty dozen. i have joked he i could actually have an entire 52-yard -- 52-card playing set and two jokers. guess which ones? sean: you said early in the cook the administration is teeming with long-lasting favor

seekers and a lucrative bridge enbetween. as a read the book the one thing that kept resonating in my mind is this is chicago politics. explain. >> this is the chicago way. i think what i have done is i hope helped shatter the myths of hope and change and the new politics in washington by scouring every nook and cranny of this administration and showing how within a very short plan is of six months they have betrayed every principle and promise they made by installing these influence peddlers and power brokers and very wealthy people who have traded on their government service to serve not the public interest but the special interests. sean: and he promised no lobbyists in the administration. we have them. he promised no ear marks. he gave us 9,000. but it goes a lot deeper. you literally examine person by

person, starting with michelle obama. america's a downright mean country, for the first time in my life i'm proud of my country. tell us what you found. >> in chapter two i call her the first crony. she was born and bred into the daley political machine. she and barack obama have been joined at the hip in exploiting their position as power brokers in chicago and then potion as champions of the little people. she worked for one of the most prestigious law firms in chicago and is hooked up with a number of chicago cronies who are now running the government and running our economy into the ground. i think her role particularly in health care and up highlighted last week the patient dumping scheme they university of chicago medical center is very telling. there is also the bullying of the chicago way and i have reported recently about her probable role in the ejection of the inspector general of the amer i corps program. -- americorps program.

sean: and her salary in 2004 when he became a senator was $124,000 a year. all of a sudden a miraculous jump to $317 up,000 a year. i want to go back to this patient dutching scheme. she's at the university of chicago medical center. there was a well orchestrated political campaign hiring david axelrod and other cronies and friends, the very people claiming they now want to help the poor and indigent ar -- or disabled, involved in a scheme to push them away from her hospital. >> exactly right. people really need to look at this episode closely. because what they did in chicago is what they will deliver to the rest of the country. as i said, the obamas and the administration opposes the -- have posed as the champions of minorities and poor people yet under of guys of helping them

they booted them out of the uft of chicago emergency room, hired david axelrod, he profits from a contract -- contract to try to sell this to minorities, convince them that this bad medicine is good for them and now another one who is part of -- of the chicago conglomerate is installed at the east wing under mibel obama to help her sell the obama care plan. sean: you go basically by person, like meet the average joe biden and that's a myth. you go through the crooked cabinet. explain what you mean. >> well, joe biden like barack obama even when he was campaigning for president himself tried to position himself as a man of the people and he's always stressed the fact that he was one of the least wealthy members of the senate. the fact is that he and his family, his son hunter who was a lobbyist, one ever the evil

lobbyists the obamas are always crowing about and his son bo all profited from the biden name. there is his championing of amtrak that i think deserves a lot more scrutiny, pfert -- particularly with the shenanigans with the inspector general there and because of all the stimulus money biden is funneling into dweafment -- delaware. sean: it struck me that for whatever reason the country seemed to go into a hypnotic barack obama trance, the very sight either sending thrill up your legs if you're an anchor or the feeling of omnipotent he can stassy. this is a very well researched book. do you think people are wake up to the fact that he is not the anointed one some said or thought he was? >> yes, i do. i think the facade is starting to melt.

even the sycophants in the beltway media are beginning to question the cufblet obama but this is not going happen on its own. i think through the force of talk road, the blogosphere and the information in the book i just wrote, the information will get out there. luckily there is no book czar out there yet. sean: now that you have done all this research, and you really with great specificity and detail go -- go into the corruption, how corrupt is this administration perhaps compared to others? >> i think you have to judge them by their rhetoric. if you look at the gap between the rhetoric and reality this has to be one of the most corrupt administrations in recent memory. i wrote an almost entire 400 page book and it's just been six months! it took six months for this administration to kill the era of hope and change. it's extraordinary. a lot of your readers and listeners and viewers think they know how bad it is, but

they really don't. that's why i put this road map out there. sean: it's incredibly well researched as aments i love your web site. thank you for being here. >> thank you, sean. sean: the "great american panel" straight ahead.

>> all you have to do is read a

newspaper sean: tonight on our "great

american panel," she is a columnist and liberal. kirsten powers is here. and he has worked on michael steele's senate campaign. doug high alt is here and he is one of if not the most successful college coaches of all time. last week he was inducted into the college football hall of fame. former notre dame coach, all-around great guy lou holtz. how are you? >> i'm doing better. sean: there's a rumor you are run fog -- running for office. are you going to? >> oh, i can't run a mile. let's move on to other things! sean: ok. the professor henry louis gates issue. first, president obama's involvement. he said they acted stupidly. then he didn't say he was wrong he said this is a teachable moment.

we need to calm down. >> he didn't call the police officer -- sean: he publicly excoriated him. publicly apologize. >> i think he actually has expressed that he shouldn't have said that. it's pretty clear. sean: how about the words "i'm sorry"? >> yeah, he could say i'm sorry and he shouldn't have said it. he shouldn't take sides just because he's friends with somebody. >> the political mistake was he -- it distracted from his health care program. but it's really put a halt on that and doing this meeting they're talking about later this week or next week will distract from that another two days. sean: coach? >> the thing that bothers you is like martin luther king jade -- said, judge people by the character, not the color of their skin. what was taught mes was respect for people president respect

for points -- parents, for elders, respect for the law. the policemen should learn one thing you learn as a parent, when people need love and understanding is when they deserve it the least. we can get by all this. this racial thing is because we don't trust one another. sean: we know that there are radicals on college campuses. bill ayers, barack obama's friend that he paled around with, he's still a toni kukocing -- teaching professor. you've got this idiot ward churchill who i once debated. he's another example. this guy is at one of the most preastigious -- prestigious colleges in the university. supposed to be. harvard university. it's no notre dame, by the way. here's an interview in 1984. malcolm x was talking about the white man was the devil and telling them off. it was great. and he laughs. and i'm thinking why would barack obama knowing that he

said that at this point because it's now public, why would he invite him to the white house? >> i think president obama, and one thing about it, he's my president and i'm going to show respect for him but he's also the president of you -- all of us, white, black, yellow, laltino. and just do the right thing. he shouldn't have said it, he probably regrets it. whatever he decides to do, fine. but let's get together and worry about the direction this country is going. see, i never have a problem with somebody if we have the same objective. i want freedom. i want to make this country great. we have a problem when we have two different objectives. when you want power and someone wants freedom, you have a problem. sean: is there racial profiling here? doesn't indicate base the on the statements of the professor that he racially profiled the cops? >> no. sean, is this your favorite thing to do, to pick out

somebody said a long time ago -- martha: talking about the white devil, it was great? >> no, his reputation is someone who is very good at working across racial lines. i'll have to go back. that is not his reputation. sean: he's attacked newt gingrich in a pejorative way. clarence thomas >> a lot of americans have a problem with clarence thomas. that's not a news flash the trying to paint him as a crazy radibal -- sean: it's ok for soirmsoirm, white latina. it's ok for him. i don't understand the double standards. >> on college campuses, this is seen as moderate behavior. the farther left you are the more accepted you are. the problem is barack obama has demonstrated that he understands the power of healing race better than

anybody else in this country but what's going to happen -- sean: he understands it? with reverend wright? >> well, notice he always steps away from these things he likes to call distractions. >> but you never give any credence to what this generation of black men experienced. you talk about wright and gates, they've had an experience that when they see something, so when he sees this white cop he has a different experience than other people do. >> i don't buy that. i was on an airplane today. the guy signature next to me, i don't know, but he's talking to his mother, 85 years old, how much he loved her and appreciated her. i talked to him. he's 20. he was in the marines. great class. great character. i talked to his daughter on the phone. don't tell me about black or white. i've nfer been black, you've never been white but if we

share the same common values, we're going to get along. we can find a million reasons why we are getting the shaft. sean: can you do that and go to reverend wright's church? >> you choose to be -- be with good friends you're going to have good things happen. you choose to do drugs, drop out of school, you're going to have bad things happen. sean: if barack obama had left of the church after five years i would think that was good judgment. >> why do you have to hold on to? >> sean: because it reflects on who he is and how he thinks. >> the two of us have overdebated this topic -- sean: no such thing as overdebating. >> but i must say it's hard for me to believe that you guys really believe that african-american men of a certain generation have not had an experience in this country that is radically different -- sean: anybody who says malcolm x says white people is the devil and laughs, that is extreme.

>> i'm going to have to go book -- look at that. >> i'm not saying they don't have it difficult or didn't have it difficult. i understand that. we all have challenges. you have to overcome them, etc. >> i agree with that. sean: more with our great "great american panel" straight ahead. .

[ water ] hey, it's me -- water. did you know that when you filter me from your tap i'm pretty much the same as i am in a plastic bottle? well, that's not entirely true. see, at home, i'm 10 times cheaper. other than that, though, i'm pretty similar. oh, wait, there's no expiration date. and i don't have to get shipped all around the country. but other than the costing,

sean: and we continue now with our great a medical panel. all right, we look at the polls. we see for the first time, the zogby and rasmussen are now below 50%. the daily tracking, the lowest poll and has ever been at minus 11, and one of the biggest number is about health care. now, voters, bought a pretty substantial nine-point margin, -- by a pretty substantial nine- point margin, are against the health-care proposal. >> they talk about we want to save money, what to save money. i do not hear anything about reform -- want to save money. they want more tests. why? because they are afraid of being sued. i do not hear one thing about toward reform.

-- tort reform. there are only two things you have to worry about. if you are healthy, you do not have to read anything to worry about. if you are sick, you have to worry if you are going to die -- you do not have anything to worry about. >> let's do it. >> tort reform. sean: even powers was shaking her head. >> i think that is a really fair issue. i think that is something that is not going to be addressed, unfortunately, for political reasons, and i think that is a real problem. >> i am not going to vote for it because it will hurt my election or some nonsense. ridiculous. what is in the best interest of the country? sean: they did not even want the

country to read the stimulus bill. they do not want people to read cap and trade. he has not even read the bill, and he wants it passed in two weeks. >> 50 days, $1 billion an hour, 24 hours a day, they have spent. there is nothing wrong with making money, as long as you make it honestly, spend it wisely. sean: you are the only person u.s. totally silenced her. >> there is nothing wrong with it -- person who has totally silenced her. >> there is nothing wrong with it. sean: the cbo numbers another blow to obama care. everything that they are telling us is factually inaccurate by the gold standard cbo office. >> the gold standard cbo office that nobody listened to. sean: this is the same sepia the

others worked with to get a balanced budget with your buddy clinton -- this is the same cbo that others worked with. >> look. it is a serious issue. there is a lot of disagreement. you have the blue dog democrats who are holding it up, so there is a bipartisan opposition to it, and i think that it is -- it is not, in its current form, currently what it needs to be. >> the american people really like obama, but what we see more and more is that they do not like what he is doing, and there is no better example of that than health care. his numbers are dropping. michael steele has been dogged about it. mitch mcconnell. they have alternatives together, and they really have been fighting on this. meanwhile, the democrats are a house divided and a senate divided among themselves. sean: her numbers are a lot

higher than others. the american people are so jaded by with politicians that they see an act of political courage, she steps down for the good of the people of alaska, and every prediction in the media was that this was a bad deal. every poll showed that most people thought -- she did not lose any support within the republican ranks. >> decisions have ramifications. kurt decision to step down, i do not like the fact that she ran away from something, but that is her decision -- her decision to step down. sean: her argument was that they are giving your one ethics issue after another. i cannot get anything done -- giving her one ethics issue after another. >> everybody needs four things in their life. something to do, someone to love, something to hope for, and

something to believe and, and she believes this very, very strongly, so go after it -- something to believe in. sean: u.s. actually defended her a little bit. you have been of little bit more honest and other democrats -- you have actually defended her a little bit. you have the a little bit more honest than other democrats. -- you have been a little bit more on this. -- on this. >> i think that she is in that -- honest. sean: she is a rock star, and i think liberals are afraid of her. >> she gave the mccain campaign the best two weeks they had. i would say there is no more dynamic speaker in the republic party then the gentleman sitting at my left. -- tah