years of the repeal and replace rallying cry. then today in a speech to plaintiff's on long island, the president told them they shouldn't be so gently with suspects when they're pretended. later the police department was forced to say they do not advocate a policy of are you aware treatment of then north korea launched another missile. donald trump announced his new chief of staff, and now you're up to date. and now that is our broadcast on a friday night and for this week. have a good weekend. good night from all of us here at nbc news news headquarters in new york. >> tonight on all in -- obamacare is alive, and the white house is in chaos. >> get over here, rhinoceros. >> just hours after president trump's greatest flurailure, hi chief of staff is out.

and replaced with a general. >> john kelly one of our real stars. >> tonight, a new low for the trump presidency after last night's victory for the resistance. where the white house goes from here -- >> they should have approved health care last night, but you can't have everything. >> and how john mccain may have saved obamacare. >> this is clearly a disappointing moment. >> when "all in" starts right now. good evening from new york. i'm chris haze. reince priebus is out. anthony scaramucci is in, and the trump administration is regal. after one of the most traumatic votes in recent senate industry at least for now to the seven-year effort to repeal obamacare. we'll revisit that historic moment shortly, but today's big news. president trump replacing reince priebus with homeland security

secretary john kelly. >> john kelly will do a fantastic job. general kelly has been a star, done an incredible job thus far, briptd everybody a great, great american. reince priebus, a good man. thank you very much. >> general john kelly leaves his post has homeland security sector where he offer saw the trufrpgsz dra coinian crackdown on immigration will occupy the most powerful staff position in the white house. no replacement for the homeland security post. the president first announced news on twitter where he offered kind words for priebus. we accomplished a lot together and i'm proud of hi. a source close to priebus tell us nbc news he be resigned last night.

the move after the president was considering priebus. financi scaramucci also, of course, went obligates profanity list tirade in an interview published yesterday describing priebus as an effing pair annoyed schizophrenic. the president was dismissive for not returning fire. everyone wants to know there's no hard feelings. >> this is not like a situation where there's a bunch of ill will feelings. this is, i think, good for the president. i think it's smart for him to pick general kelly. i'm always going to be a trump fan. i'm on team trump. he has the best political instincts. hang on a second.

he knows, i think, intuitively when things need to change. i've seen it now for a year and a half on this wild ride with the president that i love being a part of. but he intuitively determined that it was time to do something differently, and i think he's right. >> joining us me olivia , everyone inside and outside the white house had come to dislike reince priebus, why is that? >> i wouldn't say everyone, but there's certainly people within the white house who have not liked him who have disliked him for a long time, and national committee figures more broadly or anti-establishment types, and i think partly with donald trump he's never going to look inward to blame himself for anything that goes wrong. so he's likely to point the finger at somebody else and that somebody else happened to be reince priebus. we just had this huge event last

night with health care which was an embarrassment for this administration. and i think probably that was the last straw when it comes to reince priebus. i think the timeline is a little mixed up. everyone reporting different things about when exactly this became the plan. but it seems pretty clear that there was a lot of buildup. and from the beginning of this administration people were fighting with reince priebus. early on there were a lot of reports about steve bannon and reince priebus not getting along and not being able to work together and they came out in the record to talk to my and pretend like they were best friends and they told me -- >> i'm glad you said pretend. >> they told me when i got them at the beginning of the interview they said they just finished giving each other back massages. they did this whole two-man show to me and other reporters as well. i believe they also did this

with the "washington post." the massage thing was pretty special, i felt. but there's been a lot of conflict with reince priebus. >> it's par for the course. a bunch of things going on here. look, firing a chief of staff after one of the most shocking and indeed humiliating legislative defeats, that's not unwarranted. what happened last night was really bad, it would be bad in any white house, but what's striking to me is the humiliation factor. from early on, you said that trump has around him a cast of mini trumps, and the trump organization functions where everyone's trying to outtrump each other. and scaramucci takes that past any possible imagining. >> scaramucci is the best donald trump conversenator in the world, better than alec baldwin or anyone. the reason that i think that he probably has a bright future in

trumpland, at least for the foreseeable future is he's like him. when trump says he surrounds himself with the best people, he means people like himself. he was added to this white house and given a prominent perch in an attempt use him to kind of push through legislation and bridge the two worlds, the trump world and the rest of washington republicans. and you're right that reince priebus was the one or one of the people who told donald trump that he should go for health care first and spend all of his political capital and time coming in to the white house on health care, and it didn't work. it necessarily wrong to fire reince. but is this new chief of staff somebody, by the way, doesn't

know a lot of republicans in congress, doesn't know a lot of the republican establishment, is he going to make things better, is he going to somehow advance the republican legislative agenda that trump wants to advance? i don't know. it's not clear this is going to fix that problem. >> the question off twheepts advance is odd. you have a situation to mckay's point, sean spicer and reince priebus were sort of the actual institutional republican party, an organization to which he has a complicated, strange alienated relationship. he is the most important republican in the country, and yet the party itself and its agenda is a bit at odd's lengths from him. one question is -- i saw john harwood reporting that he's going to turn against ryanism, there's a question about is this president going to take a new tact and try to twwedge the

democratic agenda? >> possibly. certainly they have fewer solid relationships to establishment republicans now. but donald trump you have to remember he doesn't have an ideology. his ideology is donald trump, so he's very much influenced by the people who he surrounds himself with. it's interesting obviously people were sharing a lot of anthony scaramucci's older tweets on friday and over the weekend after he was hired. this is someone who's also been sort of all over the political map. and so it's going to be interesting to see how kelly and how scaramucci and how anyone else he brings in influences what they choose to focus on because so far it's been pretty much the status quo in terms of things the republicans are interested in. going forward if none of them are around, there's a saying that the last person to talk to trump is the one who wields the most influence and that will probably turn out to be true.

>> there's also just the spectacle of this ritual humiliation. it was a theme from the first debate. this is something i think the president has -- he's got a genuine talent for attempting to humility people and bringing out the worst in people. those are things that he has sort of indisputely excellent at doing, and to have priebus publicly played in this way. we know in the reporting he likes watching his aides fight each other. he gets a kick out of that. it's amusing to him. he likes to cultivate that atmosphere, and he looked askance at priebus for not firing back at scaramucci and that was in some sense, the final straw. does that ring true to you? >> absolutely. so many people who have worked for trump in his orbit have told me that gleefully and deliberate

deliberately fosters an atmosphere that's like the "hunger games." he wants them to bludgeon each other to death. he enjoys that. he does believe it brings out the best outcome because he thinks the best person will eventually win. but we have to just take stock of the fact that donald trump, the day that the major republican legislative initiative was on the verge of either passing or kbroegd, donald trump was egging on a public knife fight between two of his top aides. that's how he spend that day. >> i don't think it's just that he's trying to figure out who's the best, i think it's also that donald trump is easily bored. >> that is a great point and a genuinely revel tory insight. i'm serious. >> he gets hells bored and he likes to provide over chaos,

he's entertained by it. when people stop entertaining him with their fights, then he moves on the next one and we can assess a lot about what's going on in this white house with always palace intrigue by looking at it like that. it is sort of the "apprentice" west wing edition. >> to mckay's point, there was a line that said the president's mad at the attorney general but continues get it over the top. i've never seen anything like it. the process was pulled off like a heist where mitch mcconnell is going to sneak into the bank and crack the vault and get the health care out before anyone could catch them. and while they were doing that as opposed to presenting the plan or saying affirmatively why it was good, the president had no understanding what was happening at a policy level, was both picking a fight with his attorney general who he clearly

wants to fire, and also egging on a knife fight between two aides. this is what he was doing in the most monumental day of the fate of the domestic policy agenda of the party of which he is the it the lar head. >> he's stuck in the white house right now sort of walking around in unfamiliar surroundings. he's somebody who likes familiar surroundings, who likes to feel at home. he went at home a lot during the campaign. he would fly home at odd hours to sleep in his own bed. he's sleing in a strange place, he probably misses new york. i'm speculating but that seems likely. he's just looking for ways to keep himself occupied. it's not going to be through policy, certainly. people reported that he did not know the difference between medicare and medicaid. so certainly he's looking for

other outlets for how antsy he must be, and he cannot act exactly the same way as he did on the campaign. he has a lot more people telling him he has to act presidential. even though he does say crazy things object twitter, he will attack morning show hosts for plurj plastic surgery or other things. i think it's probably making him look for other areas where he can be entertained. >> there's also the fact that we've not had thankfully any major crisis that this white house had to negotiate. but one has to think about when that happens. i'm joined by the contributing editor for the atlantic. with me also david jolly who's been sort of writing about the structural nature of the republican party as an entity in

american politics for several decades now. and about how unique it is and the sort of nature in which it's gone off the rls. doo do you think there's a connection between the chaos we've seen from the senate and what we've seeing from trump in the white house? >> sure there is. while a lot of this proceeded trump and provided the ground work for trump to emerge, this attack on government and everybody in gonch ever since newt gingrich came to washington, no doubt the dysfunction in congress, the fact you have a republican party that is not really focusing on solving problems, but on trying to manage its way through with a large group of radicals a. the more congress is unable to

do anything both ryan and mcconnell failing at passing things on to trump, what that'd hoped was they would have a president who would just sign anything put in front of him. if they can't put things in front of him, they're going to be under attack ask trump is going to after them as well. >> it occurred to me last night as i was watching the health care debate unfold, but the most remarkable thing was that it came down take away moment in which a bunch of republican senators said the bill before sauce disaster and a froaud. we'll vote as long as the bill we vote for doesn't become law. they miss barack obama. what they all biss, they miss voting for stuff the president could veto. they miss playing legislator as opposed to actually being one, this is their way to role play back in time where they could pass things that won't become law. but that's not hawaii it works

anymore they're not ready to actual legislate. >> last night was a humiliating historic moment for republicans, and that press conference was business jar. then the president went to twitter and said, yes, please, pass something that you don't want to be enacted into law. we woke up this morning a deeply divided party. members of congress are going to hear it from their conservative base but to norm's point and yours as well, we've been divided in different variations now for easily a decade. and at one point it was tea party versus establishment, now it's trump world versus tea party. and there is no place for senator writing, if you want to call him establishment or not, there's no place for center right republicans anymore in this party. what we saw last night was the inable to of this president to lead the party and lead the nation on one of the most critical issues we face and one he promised to reform on day

one. >> i want to press on the nature of that failure. it's all interconnected. the only reason the way that donald trump can win a republican primary was if enough voters didn't care about policy mastery. he would debate governs, scott walker, for instance, there would be parts about planned renthood and every one of those governors could tell you with tremendous detail about it. donald trump couldn't do that. but the voters chose someone that didn't have that. it seems to come back around. last night was the product of the choices that are being made bay base that don't really seem to care in some deep sense about governing. do you agree, norm? >> absolutely i agree. and what you had was a republican party, and it goes back certainly in this case to when obama became president,

using for midterm victories in 2010 and 2014 a set of themes that it's all corrupt, it's all awful, it can't get any worse than this works trump comes along and says we'll blow things up and you had a lot of voters that said go ahead and do that. and a group of people in congress were not prepared to make a pivot with policy ideas that they had along with a president unlike any we've ever had who has zero knowledge of policy and no interest in developing any knowledge. >> quickly, day-to-day. there's talk that the president's going to pivot against the gop congress and run against them. do you think that's likely? >> absolutely. your conservative base is going to blame ryan and mcconnell. this president's only path forward is to go back to what he knows which is to surround himself with people who believe

in him, trump person. we'll have much more on today's white house shakeoff, capping off a disastrous unbelievable week for the trump administration next. i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is known in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro.

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>> they should have approved health care last night, but you can't have everything. boy oh boy, they have been working on that one for seven years. can you believe that? the swamp. but we'll get it done. we'll get it done. i said from the beginning, let obamacare implode and then do it. i turned out to be right. let obamacare implode. >> just before his chief of staff resigned today, that was just hours after senate republicans failed to pass even the skinny repeal, as they called it, of obamacare. the president's speech today centered on lurid depictions. of terrifying violence as he often falls back on. the president also praised his

homeland security secretary john kelly who just hours later he announced as his new chief of staff. joining me, the first district of new york who traveled with the president today. you were in territory that's your district today. so you had a hometown crowd today. e president once referred to the white house as a smoothly running machine. would you say at's the case? >> well, hopefully by putting an experienced general, it can become one. i would say right now, they're in a transition where, you know, hopefully identifying strengths and weaknesses of those who are there and additional changes, they can get to the point of being a smooth-running machine. i don't know if they're there at this moment. >> it seems from people around the president, he blames paul ryan and reince priebus and probably blames people like and you other folks in congress for the failure of herring. it is not his fault. he always says they. they've been trying to do it for seven years. he hasn't been trying.

do you think it's prius prius do you think it is their fault? >> i've spoken to the president about this today. he puts it blame of three republicans and 48 democrats in his opinion. and i had a conversation days ago with a senator. i asked do you have three or more moderate senators in your conference who just won't vote for any repeal no matter what it looks like, and that senator said, yes. i wasn't terribly surprised by what happened earlier this morning. i was told yesterday it was going to go a little bit different. senator mccain changed his vote after that. >> that's interesting. so you were told yesterday they had the votes? >> i was under the impression that they had the votes. and i didn't think it was going to be much more than a 51, a tie breaking vote by the vice president.

>> of course. >> but i wasn't expecting it to go down by one. and whether you're a conservative republican senator like mike lee, ted cruz, rand paul, or a moderate senator like cassidy, capito, they were trying to move the process along. this obviously wasn't what the large majority of congressional republicans wanted to see get done as the final product. it wasn't the final product. >> you were at this event today. i want to play you something the president was talking about how police officers treat suspects who have not been convicted of a crime but presumed to be innocent. this is what he had to say. >> when you see the thugs being thrown into the back of a paddy

wagon, you just see them being thrown rough. i said please don't be too nice. like when you guys put somebody in the car and you're protecting their head. the way you put their hand. like don't hit their head and they just killed somebody. i said, you can take the hand away, okay? >> do you support the president's call for police brutality? >> no. i would say the president is coming the an area where we have people who, i have my own constituents, the high profile murder of 453 a ms-13 that brought a.g. sessions to them. two were in congressman king's district. they were murdered by machetes. the nature of what we are going through right now is tearing apart families. >> those crimes are indisputably horrible. anyone who sees them will be. but is it okay even in the

context of that to engage in illegal criminal activity, assault or police brutality? >> just finishing the thought, to answer that question is while it is deeply emotional, what's going on, it is very important for our law enforcemt to be following their rules, the laws, people are innocent until proven guilty. we have a process here in our country to ensure that people have a hearing, the right to counsel. what's interesting in dealing with ms-13, we have people who are illegal on many different fronts and that whole issue is highly charged. but is the best practice of all of our law enforcement to be following local rules and regulations and understanding. people are innocent until proven guilty. >> was it appropriate for the

president to say that? >> no. i definitely have a different style than the president. >> but was it appropriate? to tell police officers to engage in brutality? >> no. i don't, i can't agree with that. >> was it appropriate for the police officers on stage to applaud? >> i didn't know i was going to be here to referee this one sentence of the speech. they really got into a whole lot of really important issues. >> congressmen, you know who freddy gray is, right? >> sure. >> his spine was snapped and he died in the back of a police van, possibly because he was treated roughly. and you can see how if his family saw the president of the united states made a joke about prisoners being treated roughly and seeing police officers applaud, you can understand how that would really be hurtful, to those people, right? >> sure. there are a lot of people who watched this speech who live in my area who are very pleased

that the president is taking the aggressive approach that he is on combatting ms-13. because they lost their son as a result off an attack with a machete. >> the key point is there is a difference between one and the other. what seems important is someone who is a lawmaker, someone who is a president and enforcing the law, is to understand that the engaging in protecting people from ms-13, and prosecuting crimes, does not necessitate the police engaging in extra judicial violence. that seems like an important line to establish. one doesn't have anything to do with the other because we're a nation of laws. and we pursue people like ms-13 lawfully. >> i mean, it is one of those particular questions where it is kind of impossible to, you can't play devil's advocate. and law enforcement has to follow their local regulations. they have to follow their laws and people are innocent until proven guilty.

i would say that there's an emotion that is felt when it is a -- >> i respect that. >> when there's a killer who just murdered someone with a machete that we're going, not in this country legally and that goes on and we're worried about making sure that they don't bang their head. but one of the reasons you set those standards is that you don't want anyone to take matters into their own hands and then you have an issue that becomes more complicated. i get it. and it is impossible to argue the other side of it. if i was up there, i wouldn't have said it. buthere was so much more to thsp the back story of what we're going through here and something police sent out the tweet afterwards to reiterate what their policy is. i'm sure their people will get the message. >> these crimes that have been committed are horrifying and we should be clear that violence that gangs like ms-13, which was started in the united states and

exported back to el salvador, have brought terrible pain there as well. the president describing what it is like in the district adjoining yours had this to say to get to your point about the broader themes in the speech. take listen. >> since january 16th, think of this. ms-13 gang members have brutally murdered 17 beautiful, young lives in this area on long island alone. they beat them with gloves. they slashed them with machetes, and they stabbed them with s. they slashed them with machetes, and they stabbed them wits. they slashed them with machetes, and they stabbed them wits. they slashed them with machetes, and they stabbed them wits. they slashed them with machetes, and they stabbed them wits. they slashed them with machetes,

and they stabbed them witcs. they slashed them with machetes, and they stabbed them witachete, and they stabbed them witubs. they slashed them with machetes, and they have transformed pe parks and beautiful qu neighborhoods into blood stained killing fields. >> given how horrific these crimes are, and they have been horrific and it's been concentrated geographically. do you think about the place you live and the place you joined as blood-stained killing fields? is that an accurate description of the place you reside? >> when these incidents take place, there at that moment, absolutely. these are, i love long island. this is our home. i wouldn't want to live anywhere else. especially this time of year, we have a lot of people who come visit us. the weather is beautiful. for those who are watching and want a good place to vacation. i but at that moment when you're outside of that bar and there was a small skirmish inside that results in someone taking a knife and basically ripping out -- i don't want to say it on the show. but what happened, one of the other incidents that happened, and it is not, they don't use guns in many cases because they don't want too quick of a death.

they want other people watching what happens. so at that moment, it is just happening too much and it is also human trafficking, drug trafficking, gang rape. we talk about the murders but we don't talk about the other stuff going on as well. >> i appreciate you taking the time tonight. thank you for sticking around. >> thanks, chris. next, the dramatic scenes from last night's vote. the gasps, the stair down. we'll break it all down for you.

this process is an embarrassment.

this is nuclear grade bonkers what's happening here tonight. we are about to reorder one-fifth of the american health care system and we are going to have two hours to review a bill which at first blush stands essentially as health care system arson. >> to understand the absolutely stunning drama that unfolded on the senate floor last night, you have to start minutes before 10:00 p.m. when senate republicans first posted the text of their health care bill and 8-page repeal written that day over lunch. democrats would have two hours to review it before a midnight vote. the possibly of reordered america's health care system in the dead of night with americans asleep. immediately, democrats rose one after the other to speak out against and it the idea of jamming it through overnight. after mcconnell first introduced the bill, just one republican senator would take to the floor. that was the senator from

wyoming who intended to hold to floor at all costs. >> does the senator yield? >> i think this is under my time. >> if i can respectfully ask the chairman, since we've only had this bill for an hour. we have as you can see, a number of sators who want to spk and i woulrespectful ask if there'any time we will have between now and the vote to make any comments, since we have just had the bill for a very short amount of time? it will obviously impact millions of americans. >> i think the answer that i gave was perhaps your time might be better spent taking a look at the bill. >> as the clock ticked toward midnight, mike pence got to the hill to cast a deciding vote. the first vote began at 20 minutes after midnight. the last lever democrats could pull which was a request to send the bill to committee for debate. that vote would certainly fail, and it did. even with that first vote, they kept the first vote open. talking vice president pence on the floor, it was becoming clear, he was stalling. nearby, john mccain was talking

to two senators who criticized the bill. suzanne collins and lisa murkowski. then pence was talking to mccain. mcconnell did not have the votes and the vice president was trying to change it. and they kept the vote open for over an hour. the clearest foreshadowing happened when mccain walked over to a crowd of democrats. they were joking around and smiling. he even put his arm around diane feinstein. it was at 1:30. collins voted no. mukowski voted no. mccain didn't answer when his name was called. he'd walk in seconds later, stand in front of mcconnell and ask for the clerk's attention. >> mr. peters? >> no. >> as buzzfeed noted, you can look at this one moment like a renaissance painting, what each person was doing when that third republican vote was passed to kill the bill, something

democrats told "all in" they did not know what would happen for sure until they witnessed it. bernie sanders nudging the vote was coming. amy klobuchar and bob casey on his feet waiting in anticipation. and sherrod brown slapping the desk. and elizabeth warren leaning in to see what would happen and then unable to resist, cheering for mccain's vote. minority leader chuck schumer trying to quiet them with the audible gasps. and majority leader mitch mcconnell, arms folded staring at kean, mccain watching him walk off the floor knowing the bill was dead. the crowds would find out seconds later. [ cheers and applause ] >> after that vote, leader

mcconnell addressed the senate saying it's time to move on a and acknowledging the defeated. >> this is clearly a disappointing moment. we worked hard and everybody on this side can certainly attest to the fact we worked really hard. to try to develop a consensus for a better way forward. so yes. this is a disappointment. a disappointment indeed. >> joining me now, senator jeff merkley of oregon. what was it like to be in that senate chamber last night? >> it was an incredible amount of drama. because what we understood was it was essentially a tie, and the health care for 16 million people was going to depend upon one hand, john mccain's hand. was it thumbs up or thumbs down? >> so you had an indication while you were talking among your colleagues, you knew that collins and murkowski were "no"s.

you understood that mccain might be a no? did you know that walking in to the chamber? >> we knew it was in question. we knew the arizona governor had talked to him. we knew he had given a speech that this process was not the right process. on the other hand, he voted to get onto the bill and he indicated some willingness to send to it a conference committee. so it was really hanging in the balance. and then on the floor, the vice president comes out on the floor. instead of taking the seat, he goes to talk on john mccain. that's a good sign. and then the vice president disappears. that's not such a good sign. and then the vice president comes back and goes out with john mccain. probably to hold a conference. maybe to talk to the president. and then we were really worried. so it was right down to the last moment. >> i was watching the same scene. i wasn't in the room and i was drawing the same inferences. you were watching in real-time drawing to draw clues from this like every single was.

>> yes. and in the middle of it, john mccain came to the democratic side. four or five of us huddled around him. he had a question about the bird rule. that is, we were contesting potentially the last section of the eight-page bill saying it didn't seem to fit the rules. we said we wld set that aside. he asked questionsbout whether we would be willing to proceed to the defense he authorization act and facilitate that so that we didn't have a long, drawnout markup of it. we said we were happy to do that. that felt pretty positive. it sounded like he was about to go with us. but we still weren't 100% sure. >> how did you and the democratic colleagues feel when this was all over? >> tremendous relief. we have been engaged with grassroots america saying we have to work with you. you have the ability to say what is really going on on the ground to your republican senators. that in fact expansion of medicaid is working really well.

that the exchange has empowered hundreds of thousands in your state to get health care. that blowing all of this up would be a terrible thing to do. deserve citizens in every state we needed the health care stake holders to say that. we contacted them to say. but still, what you saw was this solid determination to get something passed, even if it hurt the people of america. it was a real battle. a huge realism we're aren't going to blow up health care. and we're hoping our republican colleagues will say enough of the politics. we know things need to be fixed. we will work with you. the democrats have a list of things that need to be improved. i'm sure the republicans have some. let's work together to make this system work better. >> senator mccain is flying back for chemo and further treatment

for brain cancer which means his votes won't be on the table for the rest of august. it's you been likely mcconnell can move anything on this for the rest of the month, but i guess the question is, how confident are you that this is not, that we've seen the end of this unilateral push on this piece of legislation? >>ell, here's the challenge. the republicans were doing things to deliberately under99 mine the marketplace exchange. they were proceeding to sabotage reinsurance which allows to go in. then they proceeded to have the president hold the cost sharing payments. so that companies won't know what they'll be paid. and then they short continued period for application and reduced the budget for advertising open signup period. that hurt. we need to get out of that mode and say quit sabotaging this

exchange. this was your idea. there was the republican right wing think tank's idea. there were the private options. private insurance companies. and yet ironically that's the part that they're trying to blow up now. so i hope they can get out of that mode and say okay. yes. we want to quit sabotaging and we can make things work better. senator jeff markly of oregon. thanks for joining me. >> you're very welcome. >> ahead, the unbelievable week with the president making public attacks on attorney general jeff sessions and ending with a new chief of staff. hey!

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the bill was derailed by thumbs down from john mccain of arizona. once ridiculed by the president for getting captured during vietnam. in between those sign posts there was a series of unfortunate events including the previously-mentioned ban on military svicey transgender people and the infamously boy scouts jamboree speech that sounded more like a political rally and prompted the boy scouts themselves to issue an apology. and of course, anthony scaramucci's profanity-laced interview in which he attacked then chief of staff reince priebus and chief strategist steve bannon. topping all that off was the ouster of reince priebus. and the appointment of a new chief of staff also by twitter. joining me the matt mccove yak. matt, i would say you're not a never trumper. you're not on the trump train. you're in between as a republican guy. a republican operative. if i were a republican

operative, i would be feeling pretty low right now. what is your feeling? >> well, i certainly felt that way after last night. the sense of failure with the senate effort to do something on health care to keep the vehicle moving was profound. and there's a lot of blame to go around. seven years, not getting consensus behind one bill, letting this process become such a mess. the product itself became a mess. look, i think the question is can trump have a successful final six months of his calendar year. next year we have an election year and it will be difficult to get much done. i think the likelihood for tax reform increases with health care failing. the need the there. you have the big six on capitol hill. so we'll see where it goes from here. i think more order and less chaos out of the white house will go a long way to helping them move their agenda forward in the final six months of the year.

>> >> we have seen the death of the health care bill so many times. in editorial discussions, i was saying, what do we call it? there are only so many times we can say the health care bill is dead. so i don't kn. maybe it comes back in a few what is your thinking? one of the groups that mobilize strongly against it, what is your understanding of what just transpired and where you are in these first six months? >> well, man, thursday was unbelievable. first of all, let's be really clear what happened. a moral atrocity became a political liability for republicans. it became toxic politically. and on thursday night, the resistance movement, which had a massive uprising over six months, succeeded in killing a terrible idea that would have killed americans. we've killed it. it's a zombie. it has arisen before from the grave and if it arises again we'll kill it back into its grave. that's the work we have to do.

i think you're seeing people celebrate this week rightly because of the incredible victory. that we have seen. and no one is resting on their laurels. everyone's getting ready to fight again as much as we need to to keep this terrible destructive cruel idea from ever seeing the light of day. >> what anna just said connects to something you said about moving on about tax reform. there is not going to be the same level of moral vehemence in resistance to a tax bill. there will be strong opposition and taxes are hard. but i guess my question to you is, did she do you think they will actually move on? i mean is the idea, okay, this is finally -- we've taken a bunch of l's. this one we're going to take and move on for exactly that reason. >> yeah, i think they will move on. i mean, look, there's going to be a lot of finger pointing as to why health care did not pass the senate. there's going to be a lot of doubt and monday morning quarterbacking. the strategic decision to start

with health care rather than starting with tax reform. which has traditionally been republican terrain. tax reform is something that trump understands better. there's broader unity and consensus than there was on health care. the question is, moving forward particularly with a new chief of staff in place, can this white house operate with focus and discipline, with strategy, communications, everyone on the same team on the same page working together. and i think the necessity is there. >> matt, i have some news for you. i mean in all honesty, i just didn't think that's going to happen. i think that it is way they've conducted themselves is apparent. maybe it will and maybe jake kelly is a miracle worker. the chaos is interesting because for folks like matt, the chaos is maddening. but i heard from so many folks

that i report on who are working in the trenches, whether it's democratic hill staffers or republican hill staffers with to be chaos for those fighting the bill was hard. they felt like there was a lot of distraction. both the president's allies and the president's opponents find the chaos maddening in different ways. do you feel that the chaos ends up making -- seriously. do you feel that the chaos has made it harder to mobilize the president's agenda? >> that's a great question. it's worth noting as a side note that chaos is an authoritarian ruling strategy. all of us need to keep our eyes on the traditional politics that are happening here around trying to defeat a health care policy bill but also the craziness which is an intentional strategy by the white house to keep people off balance. let's be aware of what's happening. it's made it harder and more remarkable that the resistance movement just killed the top priority of this administration and the gop. the thing that was supposed to be passed on day one was beat back by a movement of people that started mobilizing in

december, flooded town halls, that showed up every time a senator or a member of congress would possibly show their face back home, they were confronted by people saying hell no, you're not going to do this with us. they're not going to stop on health care. if tax reform comes up, that's a different issue than hlth care, but people are fired up to stop this entire agenda. we're not done. >> i would not recount that. thanks for both taking time. >> thanks. joining me now is lawrence o'donnell, host of the last word which is on tonight live at 10:00 p.m. >> i'm stealing your introduction for this segment. this whole idea was the worst week yet in the trump presidency. you just did it in 72 seconds. >> so you worked in the senate and have been sort of in the room at various times. have you seen something like what happened last night? >> never. never. no, no.

listen. i've seen, you know, votes decided by that one vote on the senate floor at 2:00 in the morning. i've been there. i was there when bud kerry did it as a democrat who cast the vote to decide the whole thing. but never with this kind of suspense. and one of the reasons for the suspense, frankly, has been the inconsistency of john mccain. so john mccain comes back from his surgery -- by the way, it's kind of inconceivable that someone gets off the bed from surgery. >> he had a tumor taken out of his head. >> for brain surgery. then you would reply across the country to take health care away from tens of millions of people. this that is impossible to imagine off of the bat. but i listened to his speech when he came back and i said right away, this speech indicates he's going to vote against anything mitch mcconnell proposes. cast the procedural votes with

then he confused people and he cast the procedural votes with mcconnell which didn't surprise me. in the old days you automatically proceeded to the debate. mccain was using the old tradition there. and i kept saying wait until he votes on a substantive piece of legislation. both times he voted no. i was not one of the democrats on the democratic side of the floor last night where you heard them gasp. you heard an audible physical reaction from the democrats when mccain voted with them. they wouldn't have been surprised if mccain had been consistent over the years of matching his rhetoric to his votes. that was the problem. his rhetoric was completely clear and i believe mitch mcconnell knew all week he didn't have mccain. >> as someone who follows me on twitter, you were right about this and there were a few people who heard that speech and said wait a second, this is him giving the signal and there was a lot back and forth procedurally. here is my other question about how the president relates to congress, which is fascinating at this moment.

you've got people saying now the president is going to go after the gop congress >> does he think there's a third party in the congress? >> donald trump. >> he can work with them. >> i don't think that's implausible that he does that. i mean you can tell he's angry at them and i think he thinks well i had this thing going that was mine and i let myself get dragged into this thing that they had. i don't care about it. why did i allow myself to be tarn i read? >> here's why nothing is implausible in the trump white house and remains even more in the zone of nothing is implausible. they're bringing in a white house chief of staff who knows absolutely nothing about politics. the white house chief of staff's job first of all is politics. it's the most political job in the white house. he's a complete incompetent on that front. whatever you think of reince priebus, he knows more about politics than general kelly is ever going to know about politics. he's now going to work with the most competent people he's been around in his life. he comes from a world where

people below him knows what they're doing, professionals within the military. he's leaving all of that behind to a world of chaos. and he has a measurement for failure. he has a measurement for failure on his first day and that is exactly how many hours does it take him to yank scaramucci's credentials off of his neck and ban him from the building. if he can't do that he has a white house totally out of control on day one. and he is a failure on day one because his job is control of the white house. >> the issue -- we all sort of chuckle about getting on the same page. the issue is that the president doesn't want it on the same page. fundamentallily that is issue. organizations take on the attributes of their leaders in many respects.

and this white house is a manifestation of the man at the top. >> no white house has ever had a president saying to this one, hey, go out and publicly attack the chief of staff, go out and publicly attack sean spicer. never had this. so all of the madness begins with trump, all of it. everything is his fault in that sense. and the bringing in scaramucci which is simply a crime against the government payroll. the american taxpayer is going to pay for this guy's madness, this guy who belongs in a straight jacket now has these white house credentials around his neck. this man is unemployable in county government on long island, in any city hall in america. >> he's very successful. >> there's exactly one government office that would employ this raving lunatic and that's donald trump's white house. >> and he's got the job. great to see you. that is all in for this evening. stay with msnbc tonight.

good evening. i didn't get fired today, and if you don't get fired today, audit better day than reince priebus. >> reince is doing a fantastic job at the white house, and i believe he has the president's confidence. >> reince is a good man. john kelly largesse fantastic >> that war of words between reince priebus and anthony scaramucci ending very well for mr. scaramucci. his promise that reince would be out by the end of the week coming true. >> i'm beginning to believe that scaramucci was brought in for a purpose, and it was to humiliate reince. >> he was called reincy by the president as though he were a pet and not the chief of staff. >> the president has a comfort level with and has confidence in gerakelly, and he has to have a person around him that he has that type of confince in. >> at no turn has his white house demonstrated functionality, and i don't think that introducing one competent person is going to change that. >> they should have approved health care last night, but you can't have everything. boy, oh boy. they've been working on that one