from washington, "the mclaughlin group." the american original! for over two decades, the sharpest issue one, obama comes out! >> i've always been adamant that gay and lesbian americans should be treated fairly and equally, and i was sensitive to the fact that for a lot of

people, the word marriage was something that evokes very powerful traditions, religious beliefs and so forth. but i have to tell you that over the course of several years, as i talked to friends and family and neighbors, when i think about members of my own staff who are incredibly committed monogomous relationships, same sex relationships, raising kids together -- when i think about those soldiers or airmen or marines or sailors who are out there fighting on my behalf and yet feel constrained, even now that "don't ask, don't tell" is gone, because they're not able to commit themselves in a marriage, at a certain point i've just concluded that for me perjurily, it is important for

me to go ahead and affirm that i think same sexes couples should be able to get married. >> president obama has become the first sitting president to say that gay and lesbian couples should be allowed to marry. it's an issue that 41 states have said no to. six states and the district of columbia have passed laws to make it legal. three states, california, washington and maryland, are in limbo over the issue. california legali marriage but it's challenged in court. question, does president obama's endorsement of gay marriage as an option on the state level mean that it will be in the democratic platform in november's presidential election? if that is the case, and it's in the platform, what political import will have it have on the

presidential race, senatorial race and house race. >> it's conservative democrats and others take claire mccass bill, will have to run away from the platform. i don't know he'll do that. but what barack obama has done is put his presidency at real risk. he has instantly solved the biggest problem mitt romney had, which is how to energize and rally the social conservatives and the evangelicals. they're now singing onward christian soldiers and riding to the sounds of guns on this issue. >> so romney has him? they're out and they're energized. but look what happened. obama carried it. 61% of the vote in a record primary turnout voted for a ban on gay marriage, and several unions. >> this past week. >> yeah! you got iowa out there, okay? judges imposed it on iowa. the iowa voters threw the judges out. you got 30 states, john, who in the point of it is it's going to rally obama's base. there's no doubt about it.

the gay rights groups and militants and others are contributing money, george clooney crowd. but john, again, i think he's put his presidency in peril. >> eleanor? >> it clearly rationalesis both sides, and i agree it solves romney's difficulty in rallying social conservatives. but it's also a tonic for democrats. in some particular states, north carolina, iowa, pennsylvania, ohio, conceivably there could be a backlash and whether it's enough to cost the president those states, i don't know. but he said she evolving on this issue, mocked for use that phraseology. in fact that's what many people have done. and the difference between the caricatures of day with people and our real life experience with gay people has narrowed p people are now comfortable with this. and you can tell by mitt romney's reaction, which was very dignified, if you will,. >> i'm glad you brought that

up. >> he's not sure this is an issue that's going to work for the republicans anymore. he is on the wrong side of his state, the president is on the right let's get romney's respon >> my view is that marriage itself is a relationship between a man and a woman, and that's my own preference. i know other people have differing views. there's a very tender and sensitive topic, as are many social issues. but i have the same view had since, well, since running for office. >> question, is romney trying to make consistency into a virtue? >> yes, obama is a big flip- flopper here. he doesn't want to make a big deal of this, mitt romney. let people -- make a big deal of this because cultural war issues, whoever is seen as the aggressor is the loser. and it will be the president who will be seen as the aggressor on this. and his position he didn't do out of politics, i this he did ç it because it's what he believed he was embarrassed by how the transparent charade he

was engaged in hide what he believed. in 1996 he filled out a survey saying he favored same-sex marriage. he must have been the only person on the planet who as the issue became more mainstream, flipped into opposition. and evolving meant he was going to hide his -- his support for gay marriage until the election. he got smoked out by his vice president. he got killed by the press. he got killed by the new york times and out of sheer embarrassment he finally did us a favor of telling us what he honestly believers on the issue. >> nothing wrong with taking into account public opinion. >> he's evolved, america as a society has evolved. let degree to which american opinions changed on this issue, in the space of just 25 years, is absolutely remarkable. and let's not fret money has come pouring in. there's been quite an increase in democratic funding. >> very popular in george clinton's's living room. not popular -- almost every one of swing states passed a referendum putting the constitution the definition of

marriage. >> hold on. do you think it's going to be in the democrat tick platform? >> you better not put it in in, john. if you put it in there, you'll force these guys to -- obama [overlapping speakers] the white house is saying we're not going to insist it be in the platform. >> will is solidify romney's support by key constituencies? >> they will all come how many to vote against obama and the democrats finish therefore vote for romney. >> the democratic platform last time around came very close to gay marriage, and every respect except using the word. and the word is symbolic. it doesn't change anything legally. and the race you cite, virginia, he is for what he calls relationship equality. he will separate himself from the president, which is good for him in virginia. you can be clear about where you are on this issue, and if the democratic party it's a big are the ones with the litmus test. >> what will happen is you'll get a lot of conservative

congress people saying do you support the president or your party? and they'll say, no i don't support my party! >> no, on that issue! but then they'll join [overlapping speakers] >> we got to get out. exit question, is president obama's support of gay merge a net plus or minus or neutral in terms of impact on his re- election? >> he's energized his base, which is small, but he's energized a gigantic base which is large and split the party. it's i think will prove the greatest mistake he made in his election year. >> really? >> i do. i think it could cost him the presidency. >> i think it's a wash. i think -- everybody knows where they are and rich was right, everybody knew he was for this before he said it. so he is basically said what everybody realized. the election will be decided on the economy. >> problem s how do you estimate this because the following suggests the ratio is not great between knows who approve -- it's a voting issue. my point is, that one when the poll is being taken, people will appear to be more liberal

on a question because it makes them sound tolerant but when they go in in north carolina, the split, the voting split was 61% rejecting gay marriage, versus 39% defending it. [overlapping speakers] >> it's been studied, underperforms the polling consistently, gay marriage. and i don't think it's -- >> because people want to look tolerant? >> correct. and so-called tolerant. and i don't think gay marriage is inevitable. i think what is more likely is you get a stalemate or gay marriage is a boutique institution in blue states, and is not recognized in most country and does not have the legitimacy therefore of traditional marriage. >> federal system, isn't it? but the end of the day it's the economy. that's what will be -- the election in november. so yes, there -- [overlapping speakers] >> wear itself out? >> i think it will be -- it cannot be done at the federal level unless the supreme court imposes it, and that's why

romney -- >> continuing negative for barack obama? >> the supreme court has to impose, it otherwise we got a state by state solution, and therefore the supreme court [overlapping speakers] >> you don't have votes in this congress or for a constitutional amendment! it's got to be done by the court. >> it it will eventually go to the supreme court and there is political risk for the president. but there was greater political risk in pretending he hadn't come to a conclusion, then would give away the major plan he has against mitt romney that he doesn't take expedient positions. >> you're all correct. when we come

austerity can no longer be inevitable. so was the message from france's new president, francois hollande. after a stunning defeat of in couple bent president nicolas sarkozy, this week's presidential runoff. hollande won with 52% of the vote, hollande is france's first socialist president since francois mitterrand left offers 17 years ago. analysts say the main acteddor in hollande's victory is the revolt of french voters against the austerity measures imposed by european union finance ministers to cope with the ongoing fallout from the 2007 world economic collapse. those measures have been dubbed "mercozy" because of the close collaboration between german chancellor angela merckle and

french president nicolas sarkozy. "mercozy" is the dub. those austerity measures are now in doubt. france has an unemployment rate of 10% if it's youth unemployment rate of 30%. hollande campaigned on a promise to roll back spending cuts and increase hiring, including 60,000 more teachers, promises at odds with the euro zone budget re straits. europe? a crisis of governance. the politicians who negotiated an austerity pact for europe citizens have been unable to manage sustained political support for those same measures. nicolas sarkozy, by the way, has now become the eighth, the 8th european leader of office in just 12 months. question, what does the european crisis of governance mean for the united states? >> it's a very row minder of

the clouds over the global economy right now. because europe is a complete mess. they are unclear whether francois hollande will work well with merkel. therein is much beating how to tackle the problems. there's a tremendous revolt against the establishment, voters are completely disenchanted with governments of any sort. and that's a very nasty message to be sending rye now because it echoes of theme of our age. it's not just in europe but the voters are saying we're not sure we have the system which is up to fixing the tasks given the mag pulled of the economic pressures. >> is the eurozone in danger of not being able to co here? >> there is that risk. because quite a part from france, what is hang in greece and portugal is important. greece, two years ago huh 70 to 80% of voters enqvist parties. they just voted last weekend, and frighteningly, only 30% of

the voters went to centrist parties. there's a loss of faith in politics. >> if the eurozone collapses, what is the impacted on the u.s. economy? >> very, very nasty, because you have the financial system that is entwined, the bank exposed. you also have a lot of companies exporting and trading with europe, but perhaps most important of all you have confidence. you have another big blow to confidence at a time when we desperately need confidence to be boosted. >> unemployment is 24% and youth unemployment is 50%. you want to shed any right on the eurozone and its -- play with the channel 2 action news. >> this is the iron wyoming. french voters are revolting against austerity, although austerity is not particularly severe in france. much more severe around the periphery. but they elect a huge believer in the euro. if you don't want to be governed by germany, you have to end the euro. and we'll see it unravel until greece because there's no way a society can put up with that

level of economic calamity that feels as though is being imposes from the outside. something has to give. the common currency was a misbegotten from project and we're seeing its rotten consequences. >> you think the eurozone, that whole european union, is anything like a prototype for this hemisphere? >> no. >> which some people are -- just a minute! [overlapping speakers] you think that blows that concept into pieces? >> if that concept were ever considered, it should be blown to pieces. >> it has been considered. even for the southern part of the hems fee. but latin america. but they've never done it. >> the other irony is the austerity being resolved against in france, is really a version of so-called balanced approach that president obama -- >> the british staying out [overlapping speakers] >> big tax increases. >> look, john, what is happening is the entire political system in europe is unable to cope with the austerity being opposed upon it in greece, in france. the government went down in holland. you have the rise of the radical communist left and the

far patriotic nationalist right, and the center will not hold in europe. the only solution is going to be through inflation. the european central bank and the imf -- >> that's too much gloom and too. ! i think mr. hollande is an interesting figure. he routinely described as a moderate socialist. >> like president obama! >> fine. if he -- >> just kidding! >> i think that is -- pretty centrist. and he wants to let up on the gas on that austerity. and he may be able to force merkel to do that. that's a good thing. he's not going to walk away from the austerity package. >> greece is two months from dropping out of the european at least $2 billion from a failed hedging strategy was felt around the globe. by assets j.p. morgan chase is the biggest bank in the u.s. the errors are@ ja rule, ad -d@t fmer aithe fera

>> i know it was done with the intention to -- j.p. morgan chase, but i'm telling you it morph ode diver and the new strategy meant to reduce the hedge overall made it more complex, more risky, and it was unbelievably ineffective. we do believer we need to have the able to hedge in a ceo type position and that volcker allows that. this trading -- may violate the rule but violates the diamond principle. >> question, will it set back the regulators in washington? >> it will strengthen the hands of the regulators, and it comes at a very important moment because in the last true months, you've seen a real pushback from the banks aided by the republicans to try to look at watering down a lot of the financial reforms.

this could not have come at a better moment as far as regulated were concerned because not only have jamie diamond been in the forefront of the pushback, he's also deemed one of the most effective bankers out there. and the question to ask now is in j.p. morgan chase, one of the best run banks doesn't know what it in its trading books, how on earth do we know what is on the rest of the -- >> separate the investment banks from the regular banks and get the regular banks out of the casino business, which is what they're in. >> actually what happened in j.p. morgan chase was these letters were not in the investment bank as such. they were in a separate units of the bank a lot safed and they put more activity into that union -- >> need more regulation. >> to get around the rules. >> turned out diamond is his own worst enemy if he wants to lift economy. and this should attach down one of the whining from it business community on wall street that too much regulation. it looks like this kind of behavior is still going on and

have to wondering -- >> regulation now, right? >> yes! $2billion and turns out that is just a small chunk of what they earned the first quarter. in is a lot of money! [overlapping speakers] >> i want to ask a question. when jamie diamond a confidante of barack obama not too long ago? >> jamie diamond is one of most respected figures in the banking -- >> still, still? this is a problem of governance? guy in london was responsible! 92 if you let me finish -- it's never an excuse to say you didn't know what was going on. so he is going to have to recover from this. i imagine this is quite a blow it his ego and to his sense of company he was running. >> let's make clear the bank is safe because it had $19 billion in earnings, right? >> no. there was about $340 billion worth of securities sitting inside this unit. so two billion actually was not that big. the real question people should be asking is, was the bank like

j.p. morgan chase that big, doing at the moment, they are too big -- >> exit question -- i'm going to give it to you and goes around. exit question, will president obama be able to capitalize politically on diamond's $2 billion plunder. >> not at all. >> yes, it makes the case for regulations and romney -- undercuts romney's call that we're overregulating the banks. >> rick? >> take advantage at the margins, but the fact is this is the post-dodd frank world, we had a historical raft of new legislation that regulation does not take care of in problem because the banks are bigger than ever. and if anyone told that çyou i 2008 -- >> yes, the banks are bigger than ever. yes that's scary and very important. but much of the legislation is not yet imposed. it's still being drafted and turned into rules and actually yet to be imposed. and that's why this is so important in terms -- >> take annealed early to position in the financial times?

>> we are. >> which side, regulation? >> we're going to be certainly on better regulation, yes. >> right on, jillian. we'll be right back with predictions!

prediction, patted? >> big democratic defections from obama's position on gay marriage. >> the tea party will cost the republicans control of the senate. >> rich? >> richard murdoch handlely wince the election in indiana. >> next four soon of revolt. >> president of syria will survivor attempts and maintain his presidency! happy mother's day! bye-bye! tostitos, how'd you think of these scoops chips?

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