the wall and guess what is smiling ear to ear. >> a big break for you, no doubt about it. . >> this hour, herman cain said he is reassessing his candidacy amid fresh accusations of inappropriate behavior. he left his virginia hotel bound for michigan where he said he will deliver a foreign policy address with vigor and enthusiasm. cain sounded more humbled on a conference call earlier today, describing his alleged relationship with ginger white in the following way. it was just a friendship relationship. that being said, obviously this is cause for reassessment. reassessment is not withdrawing and cain held to his fam song, coming out ahead of miss white, saying he did nothing wrong.

>> here we go again. here we go again. we will basically show when the details become available i didn't do anything wrong. >> here we go again indeed. this is now the fifth woman to allege inappropriate conduct. it's hard to keep count. >> they are all lying? >> yes, they are. >> four women, similar s. >> how did you get four? >> i'm sorry, is it 9-9-9? >> the holiday season and the 12 days of christmas, mr. 9-9-9 is getting close to those nine ladies dancing. all over his presidential dreams. mr. cain himself admits there could be more. many more. >> 100,000 people could possibly come out. an infinite number of people

could come forward. >> that are is his way of dismissing those who came forward and now an affair. his dismissals and denials might sound more genuine if his attorney hadn't come out with this statement. "this appears to be an accusation of private alleged consensual conduct between adults. no individual whether a private citizen, a candidate for public office, or a public official should be questioned about his or her private sexual life." right. the it's none of your business defense. we will see how far that gets him with voters or his wife. all of this forced herman cain to be honest with himself about what he is really doing running for president. is it possible the poor man only got into this to sell books? books like the he signed to ginger white." friends are forever, everything

else is a bonus." why is he doing this? ginger white may have a simple answer. >> herman cain loves herman cain. >> there is lots to talk b. let's get more with goldie taylor at the project in washington. the former chairman and analyst and always smiling michael steele. >> where this story is and what it means and what impact it may or may not have and reconciling his statements with lynwood's statements. they are going through and assessing the damage that has been done and could be done. our conversation was pretty much

on line. how do you feel about this thing and see yourself moving forward? i can tell you he is very much committed to finishing what he started and believes that he has a chance to get past this and move on. >> did you offer him advice? >> yeah, i did as i always have. be as honest and forth coming and put everything out there. always as you know the drip, drip, drip. another person and another story when things seem to find a quiet spot to have something else pop and drop. two weeks after gloria's appearance on tv, all of that does not help and that's part of the assessment that they are going through. >> yesterday herman cain said he would stay in this race and i'm quoting him, as long as his wife gloria was behind him. you may recall amid the previously allegations, the cain campaign had mrs. cain step

forward to defend her husband. can you imagine him doing the same thing? >> i really cannot imagine it. i think that michael steele is right about these things. and where he is with his family. that has to come first for him. that says a lot more about you and your candidacy than an affair or harassment. herman cain needs to set himself down somewhere. >> michael, this is obviously deeply and profoundly humiliating for his wife and family. >> i'm sure it is. from a number of stand points, from the drip, drip of information and certainly the contrast with what he has been saying to the family. i think that is where the family

is right now and where he is. in assessing what all this is doing to them and what it means to his wife. i think we will see what they decide. this is one of the decisions where it's not going to be just herman cain. it will be him and his family coming together with a general approach going forward. right now herman cain is still in this fight and he's going to be there at the next debate and be there as he said in fish began giving his speech with the vigor that is required and we know their conversations are going on that are reassessing the campaign and the candidacy. >> you talk about the implications. there also political ones as you know. when you look at the field and the possibility that herman cain steps out, his pain is clearly newt gingrich's gain.

look at the smile newt had when asked about this last night. watch this. >> it's a big break for you, no doubt about it. >> that is some smile, isn't it? >> yeah. one person's misfortune politically is another person's opportunity. i think not just for gingrich, but for huntsman who has time in new hampshire. they create that opportunity. how they seize on it and what they do in the next six weeks is going to be important, but i think right now, newt gingrich is well-positioned to challenge the romney effort and not just in iowa, but across the board. >> you have been our guide for the campaign and you said he was a particular gift to the right because he allowed them to

embrace a black man and dismiss the charges of racism, particularly against the tea party. one imagines the right will not only be disappointed, but angered with mr. if he withdraws. >> they will be highly disappointed that they made a bad bet. at the end of the day, this guy had to know these kind of allegations will come forth if he put himself out in this way. this is a crisis of arrogance. his volunteers and family and donors. people who put their own stake in him that they will have to pay the ultimate price. where that support goes nobody knows. if you run the political calculus, somebody like newt gingrich will likely be the biggest beneficiary. you have a john huntsman and you have to wonder where rick perry is. the fortunate thing is this

train is about to come into the station and we will get about the serious business of electing or reelecting a president. so far this is one big distraction. i don't think we can afford it. >> mr. cain's lawyer made the assertion that these allegations are and i'm quoting him, not suitable for discussion in the media. does he believe that running for president means that anything is off limits and if he does, is he diluted? >> i don't think he is diluted, but the attitudes here in the u.s. versus elsewhere -- >> don't attack my british origins. >> no, but it's a more laissez-faire approach. we have a puritanesque approach to politics and our politicians. we tend to elevate them so there

is a sense now particularly post jfk and post gary hart and bill clinton narmatter. the tolerance level is a lot smaller and the scrutiny is say lot higher. that's something that even mr. wiener could tell you that you have to be smart and careful and vet through. you have to have answers ready that are sound and justifiable and believable when these things come into the view of the public. certainly you can't sit back and blame the media for doing their job because it's there. at the same time what i think lynwood is talking about is where is that line? is there a light line that does get into the privacy and the private behavior of a candidate? i don't know in this day and age if this exists if it ever did. >> thanks so much for joining us

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a plate full of turkey over thanksgiving has done nothing to change the outlook for congress. democrats have bruce introduced a bill to extend and expand the holiday the family close to $1500 a year. that's according to harriy reed. why wouldn't republicans get on board with what amounts to a tax cut? republicans like senator john kyle of arizona refuse to consider even a moderate tax increase on millionaires and billionaires. . >> the payroll tax does not go into social security. you cannot have a secure social security. the holiday has not stimulated job creation. we don't think it's a good way to do it. >> bob casy is a democrat from pennsylvania and the man democrats want to take the lead on the tax cut bill. good afternoon, sir.

>> thank, martin. >> the bush tax cuts that republicans want to make permanent didn't do much at all to create jobs. in fact as this chart clearly shows, job creation went up 16% under bill clinton who raised taxes and 4% under bush. what's your reaction when you hear senator kyle fight tooth and nail against extending the tax cut that amounts to a tax hike on millions of ordinary american families? >> no question that when it comes to the assertions that the senator made i disagree. this will not have an adverse impact at all. secondly it's a bill that is designed to provide and continue the payroll tax cut in place for workers, but expands that instead of giving a cut of 2%, it's a 3.1% cut. the payroll tax in half for

workers as well as and in addition what we did last year. a payroll tax cut for businesses. this is very good for the worker as well as his or her business. her employer, i should say. this is exactly the kind of strategy that we need in place to jump-start or kick start the economy to create jobs. for the life of me i can't understand why any republican would want to support it. >> for ordinary american working families had $1500 in their bank account they would spend the money. >> absolutely. when you talk to businesses as i talked to in pennsylvania, one of the arguments that business leaders say is we are concerned about demand. we don't have demand for the product or services. if you put $1500 in someone's pocket, that creates demand. one of the reasons we have strong job growth in the first part of this year for a couple

of months was because of this payroll tax cut. if anything this will be a larger and more substantial impact on the economy. >> the senator said the senate should spent time on nominating judges and authorizing more defense spending instead of the payroll tax cut. listen to this. >> no reason we shouldn't focus on passing these bills or using the senate floor as a stage for show boats that we know won't lead to anything except more tension and political acrimony. >> i imagine that the gop simply doesn't believe that kind of rhetoric will hurt them when the election comes around. >> the number one issue for the american people is jobs. the more time we are spending trying to bring people together to create jobs or at least put in place the conditions to create jobs, the better. i don't know what he is talking about. it doesn't make sense when we hear folks talk about jobs.

this is one of the best job creators we can put in place. we demonstrated that in 2010 and caming to n an agreement and we can do it again. i hope the republican leaders would joinis as well as rank and file senators. over 160 million workers as well as humans of thens of businesses. >> senator bob casey, thanks for joining us. >> thanks, martin. >> a note before we go to break. tough talking arizona sheriff is stomping for a candidate recently off the radar. by the looks of this marbled mouth introduction, it could be the other way around. >> he is the most recognized voice. please welcome me in welcoming -- please welcome

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>> that kind of behavior is not acceptable. i strongly urge the iranian government to hold those who are responsible to task. >> president obama moments ago calling for action from iran after the embassy attack in tehran. it was a response to a scene earlier today, a mob of protesters screaming death to england as they stormed the british embassy. for more on this, i am joined live from tehran. good afternoon, ali. we have seen pictures out of iran that are stunning. what have you seen and what is the situation like at the moment?

>> the situation has calmed down. the chief of police came in downtown tehran and convinced the militia members and students to leave. it was a scene of a huge commotion since about 2:00 local time until about 11:00 in the evening. the british embassy has two compounds. in downtown and one in residential tehran. they were both raided by hundreds of members. they suffered severe damage and they were able to breech the walls. theyer to down pictures of queen elizabeth and hoisted it up the iranian flag. they took six hostage and they were kept for a couple of hours.

they were released to the custody of the police for their own safety and taken to a safe location and are no longer being held hostage. now the situation has calmed down and it took a lot of negotiation between forces within iran to quell the situation. martin? >> this brought back memories of the storming of the american embassy of november 1979. an action that impaired relations ever since. the security council has just condemned the attack in the strongest possible terms. is there not an awareness in iran that this kind of action may provoke military response? >> absolutely. overwhelming support throughout the country for this. america was the great faith and nobody was a posed.

they are not happy this happened. that shows the dislocation between many branches of power. as soon as they stormed the foreign office, they condemned this because they know this will cause them a lot of headaches in earn r foreign relation. they are extremely powerful too. >> thank fist for joining us. why is newt gingrich smiling? everyone have their new blackberry from at&t? it's 4g, so you can do more faster. so, kathryn, post more youtube videos of your baby acting adorable. baby. on it. matt, ignore me and keep updating your fantasy team. huh? jeff, play a game. turbo-boosting now, sir.

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king of bling, shining the pearly whites. here are today's top lines. >> nancy pelosi is obviously the poster woman for the far left. >> did you think that being associated with her in any forum would be damaging to you? >> no. i thought at the time i was a private citizen and not contemplating public life. >> i did not think i lived a good enough to be rewarded by newt gingrich being the republican nominee. >> tell us about the nature of your relationship with this woman. >> friend and trying to help a friend because not having a job, etc. that's all that is to the relationship. >> it's something that mr. cain will have to settle with the country. >> when are you say friend, i'm asking these awkward questions, but you will be asked. was this an affair? >> it was not. >> there was no sex? >> no. >> it was simple. not complicated.

i was aware he was married and i was also aware that i was involved in an inappropriate situation and relationship. >> there was no sex. >> nope. >> none? >> nope. >> old time vanilla scandal. there was no sex. >> if this woman said there was, she is lying? >> let's see what the story is going to be. i don't want to get into being pinned down until we see what the story is going to be. >> i did not think i lived a good enough life to be rewarded on new gingrich being the nominee. >> it's a big brick for you. no doubt about it. >> what a perfect smile that is. let's bring in our panel now. msnbc political analyst and columnist. with us from washington,

"newsweek" magazine. john, is there a delicious irony that the man who stands to benefit from the potentially or alleged sexual behavior is newt gingrich, a man who has his own magnificent record of impropriety. >> he has two or more, multiple extra marital affairs on his record. you said he is the beneficiary. what a way to take from that. the lesson is if you are going to have extra marital sex, have it be in the distant or not so distant past and not in the present. we will reward you for having it earlier in life. >> you are missing the idea for adultery and saying make sure you commit the adultery ten years earlier. >> not within realtime. not being a surprise. that tells us something about the rules we have. the campaigns and it's not

whether you were faithful or not, but whether you were in realtime. >> isn't it broader truth that newt gingrich is thriving because of the field. michele bachmann makes up the stories about the vaccine inducing mental retardation. he has a mental break down and herman is just brown drowning in a sea of allegations. that's why newt is doing well. >> look. the conservative wing is ripping through the anti-mitt candidates like kleenex. everybody is going to get their 15 minutes. now is newt's 15 minutes. you set him up and knock him down. >> not with standing the fact that previously here's a man who had to resign and was accused of poisoning the political process and allegedly separated from one wife when she was seriously ill. all of that now is irrelevant?

>> i cannot imagine this will not be brought back up through the process. if newt's 15 minutes lasts, we will get back into the fact that he comes with a lot of baggage. it's not just the sexual history. it's also the fact that he tends to be a fairly unlikable guy. he misbehaved and couldn't get along with anyone when he was speaker. he's not the most charming fellow. that counts for a lot in presidential politics. right now he looks good up on stage in debates as the other candidates go a little crazy. as it increases, he will be held to a higher standard. >> michelle is being generous towards newt gingrich. many have been far more critical. barney frank said newt gingrich is capable of imploding. given the fact as you said earlier they happened in the not so distant past, do you think

newt gingrich may have learned? >> he has learned some things, but he is fundamentally undisciplined and politics be successful at the highest levels. you have to have a great sense of discipline. the issue is not going to be what happened to him in the past. we know that the republican primary voters are willing to overlook a lot of that. it's whether he will be able to hold up to the swings and errors of the current campaign or melt down as barney frank indicated. he is -- which newt will show up? the policy or the scholar or the snappish undisciplined self defeating candidate. they probably will before time. >> anything but mitt romney.

they show gingrich leading or in a tie. blowing him away in south carolina. will voters forget about newt's adultery and the poison onnous behavior of the past and be able to pull it off or are ow john's side of the pages where you think that newt will probably last for 15 minutes and descend? >> i cannot see all of newt's baggage. he was the boogie man and he was something that just made even independents just great their teeth. i can't imagine that all of that is going to go away. the republican base tends to be fairly forgiving with old sexual indiscretions. with the e van yell cal lot, god forgives me and newt put on the catholic mantle who said i learned and i turned to god. that's not all there is. i have to think at some point the rest will come crashing down and people remember why he was

such a hot potato back then. >> so it's mitt, i guess? >> no. gingrich is up 15 points in the poll. >> so it's gingrich? >> it's a horse race. that makes it fun. >> it's going to end at some point. >> i don't bet this far out in advance. anything can happen. we still have john huntsman. who knows. we will have newt name out and john huntsman will ride out. >> that would be something and the 1% in the polls to 25%. thanks so much. coming up, we clear the air on the demise of the godfather. stay with us.

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preliminary reportsing is that u.s. officials think the

taliban may have tricked forces into launching a deadly attack on pakistani soldiers stationed near the afghan border. 25 pakistani soldiers were killed saturday after nato forces claim they were fired on first and from within pakistan territory. it only increased tensions and pakistan's prime minister announced that he will boycott next week's summit in german we a future of afghanistan at the top of the agenda. evan coleman is a terrorism analyst and partner at flash point global partners. evan, is it possible that the taliban was involved in inviting the pakastanis? >> the boarder is not well-defined and in dispute between the pakastanis and the afghans. we have forces that are well ensconced that fire both at the outposts and u.s. and afghan

outposts with rockets and small arms fire. it is certainly within the capability to do this and it fits into the strategy and frustrates the war taking place right now. frustrated forces and frustrate afghan and u.s. forces and create dissension. they understand as soon as these countries partner up in an effective way, that's the end of the taliban. they need this. they need this kind of operation. >> here's the problem. the pakastanis cutoff the supply route something like 40% of nonmilitary material comes along. what is the effect going to be on u.s. forces first of all? >> look, there alternates and the routes to the north depend on the good well of moscow. we need the cooperation of the government to fight terrorism and because of the fact that al qaeda and allies have the main base of operation over the border in pakistani territory.

we rely on them for intelligence and to give their permission foritous fire missiles whether they acknowledge it or not. the question is is that damaged? that's a bigger problem. the real issue for us is other leaders are hiding in pakistan. we need the government and most importantly the people behind us and we don't seem to be winning that battle. >> not judging by the scenes, they have also ordered the closure of an air base in the south. is that an indication do you think of potentially a series of dominos that may fall if the people are not reassured? >> at this point they are only being used for drones that have to divert because of weather and mechanical reasons. it's not a good sign. we are stopping the u.s. from using the base mostly in order

to placate angry feelings. that being said, it's not a good direction for this to go in. we want pakastanis to look at this and say these drone attacks killed people, but in the end they are providing us security. we don't want them looking at us as the enemy. that's the point. we need pakistan to be involved in a peace process in afghanistan and in pakistan. >> absolutely. >> the chairman of the chiefs of staff said and i quote, in his 20 years this is the rockiest he has seen in u.s.-pakistani relations. >> it is if you look at the series of events that took place whether it's the raid on win win and so many pakastanis were fierce because of the idea that we violated their sovereignty. i think there is a difference between a mistake that costs the lives of three or four soldiers versus 24. a large number and very difficult for the pakastanis to

swallow and very difficult for them to dismiss without having a domestic political reaction and you see that on the streets. how do you placate that? i don't know if there is an immediate answer and it does not bode well for terrorism efforts. that's for certain. >> a disturbing time. thank you for joining us. first a look at the markets starting out strong with a boost in consumer confidence. julia boorstin has the latest. >> thanks so much, martin. we have 15 minutes left before the closing bell and indeces are mixed. the dow is higher by 64 points. the s&p is up by nearly six points nearing the 1200 mark and the nasdaq is down over five points. that's it first in business worldwide. ♪

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jobs? no. wars in iraq and afghanistan? not really. social security reform? not on your life. what's the biggest target for republican candidates? the environmental protection agency as 200 nations gatherner south africa for the united nations conference. if you listen to candidates like rick perry and newt gingrich and herman cain, they regard it as a democracy as nothing but kills jobs. as newt gingrich explained, they have yet to be convinced by the science of climate change. >> do you believe in man made global warming that because the planet is pollute and we spew a lot of stuff into the air that has influence the way climate comes about? do you believe that? >> i don't think we know. the evidence is not complete. >> you are ag gnostic on the subject? is that accurate?

>> i'm open minded and certainl theory. >> hmm, interesting. this from a man who not only taught environmental studies but co-authored a book on the environment as recently as 2007. damon moglan leads the climate and energy team for friends of the earth and i'm pleased to say he joins us now. good afternoon, damon. >> good afternoon, martin. >> is the epa a job-killing democracy that america could well do without? >> no, of course not. the epa is a critically important agency, and it has made our air and our water safe and clean. and that, obviously, is critical. >> the chief economist for the international energy agency says the current trajectory puts the earth on course to warm by 6 degrees celsius above pre-industrial levels at the beginning of the next century. and he calls this, and i'm quoting him, catastrophic. but if it's so serious, why do these republican candidates continue to dismiss the problem? >> well, i think that's an incredibly important question. it's as though we're living in a bubble here in the united

states, with politicians who pretend that climate change is not real. and it is. and as the president said during the election campaign, this is the overwhelming environmental issue of our era. and really the lives of our children and grandchildren depend on decisions we make now, and yet we have politicians pandering to the polluting corporations, saying, oh, we don't know if climate change is real. and it's embarrassing and shocking. >> newt gingrich says that he's agnostic on the science. can we be agnostic on the science? >> no, we have to be passionate believers. and we have to be passionate doers at this point. as you said, the new studies that are coming out that represent the scientific consensus of scientists around the world suggest that unless we take dramatic and decisive action, we are facing an increase of temperature around our globe that is going to lead to massive droughts, terrible storms, rising seas, and a myriad of really terrible

problems. and we need to act now. and that's why this meeting in south africa is so very important. >> we've heard michele bachmann praise china for not having any form of social safety net, as if that's a great thing. the chinese are also on course to become the single biggest emitter of greenhouse gases. but, again, i guess miss bachmann would say, that's the price you pay for a successful economy. >> well, you know, i think that this is a mistaken idea that we can't have a successful economy and have a green energy. you know, it's interesting that the chinese, as they are developing their economy, they're also making massive investments in solar and wind energy. in fact, quite honestly, they're eating the u.s.'s lunch in terms of the development of solar panels. this is a technology that we developed, and now we're far behind. and this is one of the prices that's being paid for the

intran intrangience. >> given the condition of the american economy with unemployment so persistently high, is it not inevitable that this administration has in many ways been forced to shelve many of its plans for the environment, simply because there are other more pressing problems? >> well, certainly, our country is in terrible economic straits, but one of the things we ought to be doing is stop giving these massive economic happenedouts to the petroleum industry, the coal industry, to the natural gas industry. in fact, we're talking about tens of billions of dollars of financial handouts to these polluting industries, which we need to be actually diverting towards green industry, and that would lend itself to millions of new jobs. and that's really where this debate should be centered. >> because republicans never talk about the potential for green energy to create employment in this country. >> well, that's right. a dollar spent on dirty energy goes nowhere near as far as it's

going to go in the development of clean energy. we can take workers who have been put out of business by dirty industries of the 20th century into clean industry, clean energy of the 21st century, and we're going to be looking at long-term jobs and also in the development of really new technologies, that could produce decades of important american jobs. >> damon moglen of friends of the earth, thank you very much for joining us. >> thank you, martin. >> we'll be right back to clear the air. let's see if we can get one past the defense. hut! go! here it comes! right on the numbers! boom! get it! spin! oh, nice hands! chest bump. ugh! good job, man. nice! okay, halftime. now, this is my favorite play. oh! i'm wide open. oh, fumble. fumble. don't want to fumble any of these. [ male announcer ] share what you love,

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you really did think that a six-month soiree through republican states would only be to your own financial benefit. of course, you also knew that your grasp of global politics could be written on the back of a first-class stamp, along with the lord's prayer. you knew that your defense against allegations of sexual harassment was about as effective as a bow tie on a battle field, but still you persisted. and now look at how the land lies. the allegations of sexual harassment could not be more serious. your claim to being a dedicated husband who didn't want his wife on the road is now revealed as entirely self-serving and mendacious. and we haven't even got to libya yet. no, that's the wrong one. oh, mr. cain, it was never meant to be like this! you were only joking when you noticed a colleague at work was about the same height as your wife. you were only joking when you said that there should be an

electrified fence on the border, to repel illegal immigrants, and live alligators for those who were really determined. you were only joking when you described a developing nation's state as ooze-becky-becky-becky-stan, even if america needs that country's support in the international fight against ongoing terrorism. you were only joking. the trouble is, the joke is now on the republican party. and today, no one is laughing. least of all, your long-suffering wife. thanks so much for watching. dylan ratigan's here to take us forward. dylan, what do you have? >> well, once again, martin, just to play interpreter here, you're suggesting that it's not going well for herman cain and that there's been some duplicity and that there's been some issues that are a challenge for his presidential campaign, is that correct? >> ithink you're beginning to indicate to all of us that you have the mind of einstein. >> that -- listen, whatever