we were hearing from senator mcconnell before today. >> that is clearly not the direction the american people would like for us to go and also not the direction senate republicans would like to go. never again, never again should taxpayers be expected to bailout wall street from its own mistakes. >> that was the top republican in the senate last week. so what explains why he has done a 180 now? see if you can spot mitch mcconnell's problem here. the first man you'll see in this next clip is mitch mcconnell. the second man is bob corker, another republican senator. watch. >> it will lead to endless taxpayer bailouts of wall street banks. >> this fund that has been set up is anything but a bailout. >> hard to maintain the talking point that wall street reform is a big bailout when your own party's point man on the issue keeps saying that's not true. senator corker today making it crystal clear, he told the newspaper "roll call" the things that we've been saying on our side of the aisle about bailouts and all that they missed the point.

republicans in the senate trying to stop wall street reform face planted on their own talking point. bummer. in the house, republicans started off trying to make that talking point work. house minority leader john boehner blasting an e-mail warning wall street reform would "empower the federal government to provide wall street with permanent bailouts courtesy of american taxpayers." the huffington post sam stein reporting if democrats were to take out the part of the bill some republicans have been saying would amount to a bailout, john boehner admits he would still call it a bailout anyway. the bill outlaws bailouts, does not allow them and if it is changed to take out the part some republicans say it is a bailout, even though it's not, they admit they would call it a bailout anyway. they admit this. so, like, okay, here is a shark. here's john boehner.

right. jumping the shark. also. here is a whale. nothing to do with the metaphor, but it is awesome. sorry. okay. then there is republican senator scott brown of massachusetts. senator 41, the senate who is going to save the day for republicans. republicans in the senate lost their main talking point against wall street reform. republicans in the house were caught bragging about not meaning what they say about wall street reform. perhaps this new guy will lead the way, put a likable, credible likable face on this awkward siding with the wall street banks things. that is not working out, either. first you will recall that senator brown mystified everyone by asking a reporter from "the boston globe" why he should oppose wall street reform. quoting from "the globe" when asked what areas he thought should be fixed, senator brown replied, well, what areas do you think should be fixed? i mean, you

know, tell me and i will get a team and go fix it. a few days later, the senator made his sunday show debut and explained his opposition to wall street reform this way on camera. >> the bill that is being proposed by the banking chairman dramatically affects businesses, for example liberty mutual, mass mutual, these folks are caught in that regulation and will cost potentially 25,000 to 35,000 jobs. >> wait a minute, senator, how can you say that? >> i can say it very clearly. the regulations they are trying to reel in with the risky, hedging that bets are doing affects companies like i just described in massachusetts. it is very clear. >> it's very clear. it is very clear that this bill will cost 25,000 to 35,000 jobs in massachusetts.

nearly a fifth of all financial industry related jobs in massachusetts will go away if this bill passes. to echo mr. schieffer here, wait a minute, senator, how can you say that? what is it based on? when pressed by "the boston globe" to produce any basis senator brown manned up and said, i stand by them, and there will be larger numbers nationally. his staffers cited a study done by the business roundtable. the problem, as the globe points out, that business roundtable study, quote, did not provide any massachusetts-specific figures. so again, where is the basis for the 25,000 to 35,000 jobs are going to be lost in massachusetts claim? senator brown told the globe it is based on "my speaking with the industry leaders over the last month or so." his office elaborated he got this estimate from the chief executives of one of the companies he mentioned on tv, mass mutual,

headquartered in springfield, massachusetts, except mass mutual told the globe the company didn't give senator brown job losses associated with the bill. what he gave them was their estimate of how many jobs were lost in the massachusetts sector to the recession. they told him that was 33,000 jobs. even that totally unrelated number it turns out was, again quoting from "the globe" dramatically inflated. the company acknowledged. nonetheless, mass mutual telling scott brown erroneously that 33,000 jobs were lost to the recession somehow turned into this. >> the bill that is being proposed by the banking chairman dramatically affects businesses, for example, liberty mutual, mass mutual, these folks are caught in that regulation as well and it is going to cost potentially 25,000 to 35,000 jobs. >> just out of thin air. there's a number. i heard that number.

once about something. on national television. just thin air. scott brown declares that nearly a fifth of massachusetts bankers will lose their jobs if wall street reform passes. when we asked mass mutual for a clarification today, they sent us this statement. which is classic. "we are one of many financial institutions that have discussed the proposed financial regulatory reform bill with senator brown." we asked them to clarify. and like add some details. that's it, that is all they would give us. at least they got back to us. cannot say the same thing for senator brown. we also called his office for the clarification of one fifth of massachusetts bankers will lose their job. they asked what show we were calling from, we told them and they never called us back. it is not anything new with us. they never, ever call us back about anything. like a teenager in love we shall wait by the phone patiently, impatiently, whatever. at this point, we are excited to find out what he is going to make up next. joining us is chris hayes.

washington editor of "the nation" magazine. chris, thank you for joining us tonight. good to see you. >> good to see you, too, rachel. what happened to the unified opposition to wall street reform? >> i'm not quite sure it was as strong as they projected. i basically think there's two things happening. one is the politics are not very good. norm hiver in the "new york republic" has a good piece about how this reform has gotten stronger. one of the sources compares it to sarbanes-oxley in the early part of the decade and when worldcom came out it pushed sarbanes-oxley. you couldn't say anything more, it was a one off. they say it is the same with the goldman sachs charge. you'll see more coming down the pike. from everything we know, it looks like countrywide might be next. other firms might be in the cross hairs of regulators. all of that is reminding people of exactly who the villains are in this drama. that is making the politics much more difficult for the gop.

>> we did see in the republicans initial pass at this, we saw their strategy against this was not to say we are siding with the bad guys and hey, they are not that bad. they said, this is, what it is, a bailout bill. yeah, it's a bailout bill. totally disassociated with the facts but willing to go there. that talking point has fallen apart. do we yet know the next basis of opposition is going to be or do you really think this just means they're not going to oppose it? >> it will be interesting to see. in that respect, what you just pointed out, in the corker clip, he plays an interesting role. bob corker and i have different views of the future of financial regulatory reform, but he did something chuck grassley did not do in health care reform. remember, chuck grassley was one of the main interlock tors, and he was going back to his constituents and essentially reaffirming the death panel lie. what corker did today was actually in good faith said that is not true.

that's not the way the bill worked. in doing that is a fundamental signal of a kind of good faith investment in the policy outcome which whether you agree with him on policy or not the threshold needed to actually legislate, that being present makes a difference. >> do you think that means bob corker ends up being a republican vote for financial reform and anybody who is a likely pickup, as they say? >> well, look, it's the same sort of group of people. it is possible they get enough. the one thing i would say to balance out the good news of bob corker acting semi-responsibly, is progressives should scratch their heads and wonder if you can pull a bunch of gop senators onto this bill, whether the bill is as good as it is being billed. that should make you question the actual content of the bill. you wonder if the gop is able to sort of come onboard this bill if it is going to offer the kind of fundamental change after the biggest crisis in 80 years that is really necessary. >> on the issue of scott brown, chris. he is turning to be a hoot as a senator.

>> that was palinesque. i mean, that was amazing. >> you try to diagram the sentence, and you think, wow, this is way above my pay grade. it's interesting, because he gets caught cold making stuff up and refusing to take it back when he gets nailed on it. i wonder if scott brown could be a constructively engaged republican on this. there is a possibility he doesn't understand what he is voting on and what she is talking about, so he's not going to be constructive because he is not capable of it. there is a possibility he came across poorly in his interviews and might be interested in working with democrats. do you have a sense of which it is? >> well, look, the president and the white house thinks it's clearly the latter. he called him from air force one. they got his vote on the jobs bill, which was one of his first votes, which i think that signalled to people of someone who might vote his state constituents' desires rather than the tea party sort, et cetera.

what is clear is it is not just scott brown, a lot of people in the united states senate have no clue about this bill. they have no clue about financial reform. they have no clue what is good and what is bad. they are getting their talking points from leadership. if you grabbed any of them, on both sides of the aisle and asked them about the details, they wouldn't do a lot better than scott brown. it is going to be a decision that ultimately the leadership will be making at the top that is going to filter down. >> that is so depressing. so depressing. >> what can i say? >> what you just described on the financial reform legislation, when i talked to senators, not staffers, off air, off camera, off the record about filibuster reform i have found the same thing. a shocking level of just basic ignorance on what it is they do for their jobs. it's sometimes amazing. >> yeah. >> it is amazing. >> there is a lot of specialization which takes place. if you are dealing with an issue with a sitting legislator and it is not their committee, it is not something they will have a deep command of.

particularly when you're dealing with something as complex as this. >> good reminder, very depressing. chris hayes the washington editor of "the nation" and thank you for using interlocutor. in a sentence so well. >> we always try to bring it. thank you, rachel. it is a great night to mark the return to the show of nobel prize-wings economist, paul krugman. given the fight on capitol hill and goldman sachs and the economy feels like he is here in the nick of time. what do you call an angry gathering of armed people spouting rhetoric on the anniversary of the oklahoma city bombing? by their account, it is called a lovefest. at this lovefest one of them talked about wanting to tar and feather me. that's next. ♪ well, look who's here. it's ellen. hey, mayor white. how you doing? great. come on in. would you like to see our new police department? yeah, all right. this way. and here it is. completely networked. so, anything happening, suz? she's all good.

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washington, d.c. has by far the most interesting license plate in the country. it says on the bottom, taxation without representation. that is not a salute to the revolutionary war.

and the colonists. that is the current status of residents of washington, d.c. today. they pay taxes, but they have no voting representative in the federal government, and their best chance in years to rectify that injustice went kaput. d.c.'s nonvoting delegate polled a bill that would have given d.c. a vote in the house. even though democrats thought they might have been able to pass that bill this year, gun rights supporters attached to it what they call a poison pill amendment. that would have gutted d.c.'s locally passed gun laws. it was drafted by the nra. eleanor holmes norton would describe that a person in the district would be able to walk on the streets carrying an assault weapon slung over their shoulders. or with concealed weapons. d.c. might not be able to ban guns at public and charter schools. she added, these provisions are so over the top they are unworthy of serious consideration. so the majority black, majority

democrat-leaning residents of washington will continue to be taxed without being able to elect a voting representative, because pro-gun politicians think they should make decisions for d.c. about public safety instead of letting d.c. decide for themselves. somehow, someone, somewhere will try to tell you those politicians are acting in a way that should be called conservative. if that's true, the word "conservative" has lost all meaning. and when it does, men with erectile dysfunction can be more confident in their ability to be ready with cialis. with two clinically proven dosing options, you can choose the moment that's right for you and your partner. 36-hour cialis and cialis for daily use. cialis for daily use is a low-dose tablet you take every day, so you can be ready anytime the moment's right. day or night. >> tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. >> don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure.

>> don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache, or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. >> if you have any sudden decrease or loss in hearing or vision, stop taking cialis and call your doctor right away. >> 36-hour cialis or cialis for daily use. ask your doctor if cialis is right for you. you can be ready for your moment with cialis. this is not a hatefest, it is a lovefest. so turn around, go to the person next to you and high five them because you are the special forces. you are the elites of the american guns right movement. which, without the gun rights

movement, there would be no rights. okay. now there's a certain reporter made comments, rachel maddow, and i have to say to her this is a good thing this is a lovefest otherwise we would tar and feather you. >> there were two would be armed pro-gun rallies in and near washington coinciding with the 15th anniversary of the bombing of the alfred p. murrah federal building in oklahoma city. that shoutout you just heard to the rachel maddow show came during the rally in washington, d.c. that's the one where people weren't actually armed because if they were armed that would have been against the law in d.c. demonstrators in virginia were very much armed. they gathered initially on national parkland, where thanks to a law signed by president obama earlier this year expanding gun rights in national parks it was perfectly legal for them to carry weapons.

it must have been sort of bam boozeling and embarrassing about people complaining about president obama infringing their gun rights they could be there because he expanded their rights. that said, as you can see, there weren't actually all that many people at they pro-gun rallies. several estimates put dozens at the armed rally in virginia and hundreds at the unarmed rally in washington, d.c. those low numbers didn't stop an actual member of congress from turning out to address this teeny tiny group of people. with empty gun holsters at the washington rally. >> fellow patriots, we have a lot of domestic enemies of the constitution and they are right down the mall in the congress of the united states. right down independence avenue in the white house. it belongs to us. it is not about my ability to hunt, which i love to do. it is not about the ability for me to protect my family and my

property against criminals, which we have the right to do. but it is all about us protecting ourselves from a tyrannical government of the united states. >> that's what we're going to use our guns for. that wasn't just some random guy at the rally. that was a congressman. congressman paul brown of georgia. his remarks on the occasion of the 15th anniversary of the bombing in oklahoma city that killed 168 people that was carried out by an anti-government extremist. leading up to that grim anniversary, president clinton delivered a speech in washington reflecting on the response to the oklahoma city bombing at the time and what we can do as a nation to prevent such a thing happens again. to that end, the former president remarked on the difference between criticizing the government and inciting violence against the government and people who work for it. >> we can't let the debate veer

so far into hatred that we lose focus of our common humanity. it's really important. we can't ever fudge the fact that there is a basic line dividing criticism from violence or its advocacy. what we learned from oklahoma city is not that we should gag each other or that we should reduce our passion for the positions we hold. but that the words we use really do matter because there are -- there is this vast echo chamber and they go across space and they fall on the serious and the delirious alike. they fall on the connected and the unhinged alike. >> those remarks and president clinton echoing them in a written op-ed in the "new york

times" have proved to be upsetting for some commentators on the political right. >> so i guess you can't be critical. you can't say socialism exists. you can't be critical of government. i thought this was the highest form of patriotism when the criticism was aimed at george w. bush. something has happened. i must have missed it. what happened here? >> well, apparently it's hate speech when it's on the right and it is not hate speech when it is on the left. so go figure where that comes from. >> rupert murdoch's new york post editorial board took this line one step further, not just criticizing president clinton for cautioning against inciting language, but blaming the clinton administration for the oklahoma city bombing. saying, quote, mcveigh never cited talk show hosts as inspiration. rather he pointed a finger at clinton's own administration. oklahoma city was a retaliatory strike, a counterattack from the cumulative raids and subsequent damage and violence federal

agents participated in the preceding years including but not limited to waco. the "new york post" explaining how, if you think about it, the oklahoma city bombing was the federal government's fault. they weren't the only voice on the right to go there and lash out at president clinton. >> let me ask president clinton what words caused timothy mcveigh to act? name one. i want to know what words and who spoke them? all i've ever heard is timothy mcveigh was outraged over the government invasion led by janet reno of the branch davidian compound in waco, texas, and the murrah building was blown up later. he was not inspired by anybody areas words, mcveigh was inspired by mr. clinton's deeds. >> if you want perspective for timothy mcveigh's motivation to bomb the oklahoma city federal building, look no further than

the second amendment march. the one held yesterday in washington, d.c. on the anniversary of that bombing. >> i look around. it is so good to see all these terrorists out here. janet napolitano, she figured as governor of arizona we didn't have a border problem. but she knows who the real enemy is. bill clinton has been running cover for her, too. watch out how you guys speak out there. words can have consequences. remember oklahoma city? yeah, i do. i also remember the waco barbecue that your attorney general gave us. thanks a lot. we're in a war. the other side knows they're at war because they started it. they're coming for our freedom, for our money, for our kids, for our property. they're coming for everything because they are a bunch of

socialists. >> it is strategically easier to complain about being accused of inciting violence unfairly when you are not at the time speaking to a crowd carrying signs threatening to shoot the president. we'll be right back. (announcer) we believe in giving every investor a lot more for a lot less. tdd# 1-800-345-2550 that's why, at schwab, tdd# 1-800-345-2550 every online equity trade is now $8.95 tdd# 1-800-345-2550 no matter your account balance, how often you trade tdd# 1-800-345-2550 or how many shares... tdd# 1-800-345-2550 you pay what they pay what everyone pays: $8.95. tdd# 1-800-345-2550 and you still get all the help tdd# 1-800-345-2550 and support you expect from schwab tdd# 1-800-345-2550 millions of investors. one price. tdd# 1-800-345-2550 at charles schwab... tdd# 1-800-345-2550 investors rule. tdd# 1-800-345-2550 are you ready to rule?

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the interview tonight is paul krugman, nobel prize

winning economist and columnist with "new york times." mr. krugman you are the person i most want to talk to about wall street and the economy. thanks for your time. >> sure. good to be on. >> goldman sachs, huge earnings announced today after the s.e.c. charged them with fraud. we know that gold man fraud case may be changing the politics around wall street reform. how important is what they are accused of? >> well, i mean, the specific thing is not that big and the question basically they are accused of setting up things, investments that were designed to fail so that important clients who were betting they would fail could make money. that sort of thing, we don't know how widespread it was. it didn't cause the crisis. it may have made things worse and gives you a picture of the our really rotten financial system, which is a critical part of the whole story of financial reform. >> is there anything in the financial reform proposal out

there now that would prevent the fraud goldman sachs is accused of? >> it is not clear. i have been having a hard time figuring this out which probably means the answer is no. the proposals out there would require that derivatives and i can't explain that because they are complicated which is the point in a way, they be traded more openly, more transparently on recognized exchanges, which would have made this thing more visible and possibly headed it off. but probably it needs to be tightened up. again i think the main thing is not would the reform specifically prevent this thing as a reminder wall street bankers are not your friends and cannot be trusted to do the right thing. >> you wrote recently that the financial sector has become a racket. that it's essentially predators and prey and you are one or the other right now. when you mention that derivatives are hard to explain and that is the point, they are complicated and that's the point, do you think the generation of

complex financial instruments in this last generation of wall street has, in part, been to stay ahead of regulation to state ahead of even due diligence by people involved at the lower end of the food chain in finance is it >> yeah. it is starting to look, these complex things were supposed to diversify risk, has been glaringly obvious they increased the risk, they concentrated it, they created lots of promises that couldn't be honored in the clinch. so, yeah. it is kind of a running game we have. people talk about, well, we mustn't stopped financial innovation, and you say, well, name a financial innovation that has been beneficial and you are not allowed to use atms. usually that stops the conversation, because nobody can come up with a good idea in all of this vast proliferation of stuff. >> it has made a small number of people dramatically, dramatically wealthy in a short period of time. the wall street billionaires

aren't just the firms, they're the individuals, the hedge fund managers and so on. >> that's right. >> in terms of their efforts to stay unregulated, do you think it is to keep the con going so they can keep dupes out there they can relieve of their money or because they do think it is something that could be useful for the country? >> well, everybody, nobody thinks he is a villain. everybody imagines they are doing something good. i would imagine most of these people sincerely believe what they do is good for the country even as they, some of them, are quite deliberately duping people. a little bit of double think there. the point is they are -- they have this incredibly lucrative business, very questionable, arguably negative value to the economy, but absorbs a lot of resources and pays them a lot of money so they are trying to defend it. >> what is good about the proposal for wall street reform? what is the most important thing the proposal would do to protect

us from a financial crisis from happening again? >> okay. there are four things. probably the most port is this resolution authority. we had a stable financial system from the mid 1930s to about 1980 based on the fdic insuring deposits, but also regulating banks and having the ability to seize a bank if it's basically going under, protect the depositors, but clean out the other guys. we did not have that in clear form. so when we were having debates about nationalizing weak banks it is a high by debated issue, but one thing that was a problem is it wasn't exactly clear where the authority was for something that was complicated. an ordinary, jimmy stewart's bank you knew how to seize, but citigroup, wasn't clear what the legal authority was. this would bring us back to this partway, at least, to kind of system that did so well for about 45 years. that is the biggest single thing. regulation of derivatives,

forcing them into the open and to exchanges where you can see what is happening is a big thing. protecting consumers is a big thing. requiring that banks have higher capital. they basically have more stockholders' money at stake not so much borrowed money. that's a big thing. all of those would -- are they enough to prevent another financial crisis? we don't know. they would certainly help. they would certainly make it less likely and less severe when it happens. >> when the president, who is not a president that is given to threatening vetoes willy nilly, when he recently threatened to veto financial reform if it doesn't regulate derivatives, do you think that is a good thing? that was the right move? >> yeah, it was. this is -- you don't want a cosmetic reform, you want something that's real. derivatives is now, what i hear, is the sticking point. for what it is worth, the administration people think that republicans are going to cave on consumer protection because they think it isn't going to be that big of a deal. they will probably in the end cave on resolution authority but try to hold out to keep the derivatives, basically to keep the racket going.

so this is where the sticking point is, and he is prepared to hang tough, or at least so he says. >> we have been talking about the politics, trying to understand, not only the substance of the republican opposition, but also it's likelihood -- >> you are wasting your time on the substance thing. it is entirely -- there is no coherent case. but yes, the politics. sorry. go ahead. >> can you help? how has the republican party been making criticisms or proposals for what they would do instead that makes sense to you as an economist? >> no, i mean, it's -- first of all, it is obvious that they are huddling with the bankers, huddling with wall street to figure out ways to stop this thing and proclaiming they are preventing future bailouts of wall street. no. there has been nothing there. i mean, there has been no proposal. the only thing they have been doing is claiming the resolution authority is setting you up for future bailouts and we should just promise not to have future

bailouts. as i've written it, that is like saying we have solved the problem of fires by abolishing the fire department and then people will know their buildings will burn down, so they won't let it happen. it is not coherent, it is a dangerous idea. if anything. >> nobel prizewinning economist and economist with "new york times," paul krugman, i always feel very lucky when we can get you to be on the show. thank you for making time for us. >> thanks a lot. >> there is a love story to tell tonight. it matches the new conservative senator john mccain of arizona and what is described as the country's most retrogressive, mean-spirited and useless anti-immigrant law. in politics as in the 1970s, love the one you're with. stay tuned. we'll be right back. so heading to the doctor

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take things as they come? i've got an idea. or improvise? maxwell house custom-roasts each bean... for a full-flavored cup of coffee. so you can be good to the last drop. it's been a long time since the day's headlines demanded a new installment of the "rachel maddow show" reenactment theater. it involves human anatomy i'm uncomfortable talking about and a big surprise ending.

that is coming up. first holy mackerel stories. a new immigration bill that passed the house and senate in the state of arizona, has been described by its opponents as harsh and mean-spirited, as one of the harshest assaults on human rights in recent history, and the country's most retrogressive, mean spirited and useless anti-immigrant law. all of that sounds like hyperbole, sounds a bit over the top, a bit blustery until you read the actual bill and say oh, my stars what country did this come out of? sb-1070 in arizona makes it a crime to not be carrying papers that document your citizenship or immigration status. the bill directs police officers to arrest anyone on the "reasonable suspicion they are in the u.s. illegally." reasonable suspicion, mean they look jetlagged or suspiciously familiar with the

metric system or prefer soccer to football. if you don't look like what an arizona police officer considers american, that police officer can stop you on that suspicion alone and arrest you if your papers are not in order. papers, please. the bill has all but been endorsed by senator john mccain of arizona. >> there is a fear amongst some people particularly the further away you get from the border the "invasion" they are experiencing. i am convinced and i believe with all my heart we need a comprehensive approach to immigration reform. that means securing our borders but it also mean a temporary worker program that works. >> i'm sorry. very embarrassing. we seemed to have played the wrong tape. yeah. mislabeled. i'm sorry. that was definitely presidential candidate john mccain. here's the john mccain that is running for re-election now in arizona, totally different guy,

it turns out. >> the state of arizona is acting and doing what they feel they need to do in light of the fact that the federal government is not fulfilling its fundamental responsibility to secure our borders. it's the people whose homes and property are being violated. it's the drive-by -- the drivers of cars with illegals in it that are intentionally causing accidents on the freeway. >> you know that freeway? >> the republican governor of arizona, jan brewer, has five days to decide whether or not she is going to sign this remarkable bill. if she does, she will earn herself a place in the history of liberties in america. an update on the ice landic

volcano, and the ash cloud that crippled travel and created the most beautiful images of the year. good news, british air space reopened. the first plane to land at heathrow in almost a week. throughout europe about half of today's scheduled departures will get off the ground. this evening, in addition to britain some airports have opened in germany, italy, the czech republic, russia and the netherlands. planes are able to fly because the ash cloud is lower. allowing any high eight attitude jet that can fly at 20,000 feet to fly above it. that is the good news. the bad news, the airline industry estimates it has cost more than $1 billion. because of 95,000 canceled flights. also this volcano is not the only volcano in town. there is another, much bigger volcano in iceland if you go by the historical pattern may erupt in the next six months. i know that is a weird thing to predict and there's no gauge

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okay. seriously, you choose. go national. go like a pro. coming up on "countdown," keith's special guest is democratic congress mast raul grijalva of arizona who is calling for a boycott of his own state because of the papers, please, legislation. in just a minute, we have a new rachel maddow show state legislature transcript-based re-created theater. and...they let me choose where to use them. the loyalty program he signed us up for has all these restrictions, blackout dates, a crazy point system... and we couldn't stay here.

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georgia is on the cutting edge. don't let anybody tell you differently. georgia, at least their state legislature is way out of the game. georgia's state legislature is so completely done with addressing problems that do exist, they have moved on to preemptively addressing problems that don't exist. even though no one is being involuntarily implanted with micro chips, the legislature is making sure that anyone who wants to do such a thing will know it won't be okay in

georgia. the act is sponsored by two state senators who are both named chip. no, i'm not kidding. chip pearson and chip rogers, both republicans. so the two chip's micro chip bill makes the implantation of a micro chip into a human being, against his or her will illegal. lawmakers heard about six minutes of testimony from a woman who in the words of atlanta journal constitution columnist jim gallo way began to lead the assembled lawmakers down a path they didn't want to take. a woman told them -- we debated all day about how to tell this story. and i have to tell you, there are details of this story that i'm not capable of saying outloud. i think there's only one good way to tell this story in its

entirety, by acting it out. here with a cutdown version of arguably the most awesome six minutes of georgia house judiciary committee history are the rachel maddow show players, with a new episode of re-enactment theater. >> does anyone else want to speak to the committee on this? >> i'm a resident of de kalb county, and i'm also one of the people in georgia who has a micro chip. i've been talking with the different legislators, i've been trying to get help outlawing the implants. our rights to privacy, body integrity, the right to say no to foreign objects being put in our body. specifically, the right to

refuse micro chips being put into our body by the government. the right to work without being tore tued by co-workers who are activating these micro chips by using their cell phones and other electronic devices. they're just like little beepers, if you will. imagine having a beeper in your rectum or your genital area, in the most sensitive area of your body, and your beeper number's displayed on billboards throughout the city. >> ma'am, did you say you have a micro chip? >> yes, i do. this micro chip was put in my vaginal/rectal area. >> you're saying this is involuntary? >> yes. this case has been going on for the last eight years. >> who implanted this in you? >> i feel like mine is -- >> you don't know who did it? >> yes, i'm one of the federal government research with this micro chip. >> and who in the federal government implanted it?

>> this is the department of defense, and this is a court case that's coming before the u.s. appeals court. >> thank you, ma'am. >> ladies and gentlemen, the rachel maddow show players. okay, though, it's not over. you want to know what happened after that? the committee voted to approve the bill. not kidding, they voted for the bill. not kidding. and scene.

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phenomena starting to read like the plot of a bad science fiction movie, we need to turn to our post rational science correspondent for a little explanatory help. >> there's been some astonishing scientific breakthroughs this week. >> yes. >> thanks in part to noted geologist rush limbaugh. >> oh, no. ♪ >> scientists may think they know what caused the icelandic volcano eruption, but clearly they're not familiar with the new limbaugh theory. >> a couple days after the health care bill had been signed into law, obama ran all around the world, hey, the earth hasn't opened up. i think the earth has opened up. god may have replied. >> health reform, brought to you by nancy pelosi. >> earth has opened up, i don't know whether it's a rebirth or armageddon. >> when god wants to punish

america for its social excesses, he unleashes hell in iceland? meanwhile, in iran, a senior cleric has a bold new hypothesis about what causes earthquakes. many women who do not dress modestly lead young men astray and spread adultery in society which increases earthquakes. and all this time we've been chasing tectonic plates. hemlines, not fault lines. scientists now believe the gradual warming of the earth, and the flowering of dormant plants is not caused by a seasonal tilt of our planet toward the sun. the coming of spring is actually caused by mitt romney. everything we know is wrong. >> i love that god might strike us down, and make british people not able to fly anywhere, all for health reform. >> very convenient.

>> yes. that does it for us. we'll see you tomorrow night. "hardball" is next. good night. senator gordon gekko. let's play "hardball." good evening, i'm chris matthews in new york. leading off tonight, the public interest versus a wall street mouthpiece, what are the republicans really saying about wall street reform? just as mitch mcconnell seemed to dial back the rhetoric that the democrat bill is nothing more than a recipe for endless bank bailouts, house minority leader john boehner dialed it right back up. the bailout false is the death panel of the wall street debate. we'll try to get to the bottom of the debate with real english and what the bill actually does right at the top of the show. also, republican purge, arlen specter is out, john mccain, charlie crist and robert bennett are all being threatened on the right. is this any way to run a party or run it into the ground?

next, where's the credit? the top two leader of al qaeda in iraq were killed over the weekend, in a joint operation by u.s. and iraqi forces. does president obama get enough credit for being tough on terrorism? that's my question for former counterterrorism adviser, richard clarke. plus wait until you see how president parried a gay rights heckler. we'll have it in the "hardball" "sideshow." and "let me finish" with a tribute to a real american hero. let's start with the politics of financial reform and the lingo. "time" magazine's mark halperin is the coauthor of the great book, "game change." and "the new york times" andrew ross sorkin is author of "too big to fail." two giants on the show tonight, gentlemen, thank you for joining us. it seems to me that the president has finally got the accent right. he calls it wall street. he doesn't say financial regulation or all of these boring terms. he says, we've got to clean up wall street. we've got to stop them from stealing our money. he seems to get it right. on the other hand, the republicans, thanks to the linguist, frank z,