we're joined by liz smith, who's worked as martin o'malley's campaign director and in washington, d.cr, an ardent never-trump republican and former communications director for jeb bush's presidential campaign. first, liz, who is your favorite world leader? >> merkel. i love her -- >> it's the party line. >> like, i look merkel, i like trudeau -- you know, trudeau, because, you know, i'm a woman and he gets extra points for how good looking he is. >> give me may, she's a conservative woman. i'll go with may. >> you got it, tim. >> liz, let's wind back the clock four days ago, and after the machado moment, what would you walk into his bedroom after his first reaction, what was the way to handle that at that point? just make it just nothing? >> did you just actually ask liz smith to imagine walking into donald trump's bedroom? >> i assume that's what happens after -- he's eating his frosty-os and they call come in in the morning and tell him what's going on. >> i just want to make this clear. i am never walking into that man's bedroom -- >> me neither. can we take a vote on that? you too

. >> joining us now, liz smith, who is the deputy campaign director for martin o'malley's 2016 presidentialign and the rapid response director for the obama 2012 campaign. she is democratic consultant and the co-founder of 50 state communications. so liz, i'm not so sure about this discouraging the third party thing. a vote for gary johnson is a vote not for donald trump. i mean, there is a certain number of republicans are going to gary johnson instead of trump. and that's their choice. their choice is not hillary clinton, gary johnson, or donald trump. it's trump or johnson. don't the democrats want them to pick johnson? >> i actually kind of view it a little bit differently. i think people are choosing gary johnson in this race because he is not hillary clinton or donald trump. and if i'm in the hillary clinton war room, i do think this is a little bit of a problem. because, look, in 2012, obama was getting 60% of the millennial vote. now she is getting just 40%. and one that really gets under my skin is when ahear clinton allied democratic establishment portraying millennials as these e

us now from washington, d.c., the democratic pollster and strategist joining us here in studio, liz smithrmer deputy campaign manager for martin o'malley's presidential campaign. liz is also the director of rapid response for president obama's 2012 campaign. and katy tur of nbc news is back with us. cornell, let me ask you first, which of the two things it currently going on with the clinton campaign, her health or remarks about donald trump supporters do you think represents a bigger threat to r candidacy now? >> i don't -- you know, her health is an issue but i'm not a doctor. i don't want to talk about that. i don't think the remarks she made about donald trump's voters actually offend the large swath of voters that were part of the obama coalition that she actually needs to win over. i think that's more of a problem for -- those people who are offended by those remarks, they were never going to vote for hillary clinton in the first place. so i'm worried more about those voters, particularly the young voters who are part of the barack obama coalition who are less than enthusiastic righ

. >> narrator: liz smith was a well-known gossip columnist in newspapers and on television. on donald and ivana. >> ivana was totally fixated on donald. i heard all these things: that she had tried to please him and gone away and had her breasts augmented, and a face lift. >> narrator: but now there was another woman-- 26-year-old marla maples. ivana and donald had been married 12 years. they had three children. >> she threw herself in my arms sobbing and crying and saying, "donald doesn't want me anymore. he has told me he can't be sexually attracted to a woman who's had children." >> the trumps are good copy, and the gossip columnists are in for a field day. >> the unfolding saga of trump versus trump. >> a high-octane mix of the stuff that sells newspapers. >> narrator: for months, the tabloids reported on every detail of the affair, the breakup, and the divorce. >> the model from georgia cast as the other woman. >> it was ugly, it was horribly ugly. the press was devastating in my mind. >> linking trump to a bevy of beauties... >> but donald didn't seem to think it was s

trump is not adam smith, not the world's greatest genius about economics but tax plan is a sound, sensible plan. lizpoint is well taken about regulation, the government has practically nationalized health care, moving in on the internet, energy sector, the banks and the bureaucrats. >> the bank thing has been a disaster. that was a democratic congress, dodd-frank, essentially very, very much suppressing bank lending, a disaster to keep interest rates low with zero interest rate policy. kills retirees but because of dodd-frank, the banks can't lend. liz: that is true, that's what's going on. most candidates say they're against the tpp, the trade policy. you're for it, why? >> free trade is a benefit to everyone, not everyone, but a benefit to the great majority of people, both mr. trump and mrs. clinton are mistaken being against free trade. yes, free trade does hurt workers in manufacturing, no doubt about it. they should be compensated, retrained. free trade is a major engine of economic growth and prosperity, we should not be against it in either party. liz: have you disagreements also with both n

and profits doubling and sales soaring 40% at smith & wesson, but it's down. as we were saying 2 1/2% lizoks like there might be some profit taking. and the analysts might be pricey. year to date, near 60% year over year, and background checks continue to hit records in most in recent months. ashley: and mooch you're saying the top salesman is out the door, why? >> obviously making a joke. you can see the trepidation about the second amendment. ashley: look at that graph and the talk of gun control, what that did for the number of people buying weapons, it's remarkable. >> listen, at the end of the day, this is one of those things that gun control is always going to be uncontrollable. it's one of the axioms of american life. ashley: 40% of u.s. households have guns. fascinating. a world-wide recall, a story of the samsung galaxy note 7 after reports the devices catch fire while charging and as we mentioned before, e-mack, what timing for apple who probably unveiled a new iphone 7 next week? liz: exactly right. as mooch is pointing out. you don't want any of the batteries catching fire, th

smith & wesson up 1 1/2%. and don't forget defense stocks, lockheed martin, ra raytheon, and most are edging to the upside as is the market. joining us lizacdonald, scott shellady and jeff sica, won't call him a perma bear-- just did. and in new york and new jersey with regard to terror? >> the model is this market is and will continue to be for the future ignorance is bliss. as ominous as this event is and the potential of more terrorism, which undermines the stability of the market, this market has chosen to ignore everything except the fed. so, anything that comes out of the blue. if it doesn't involve interest rates going up or an initiative of the fed. the market continues to move forward. >> scott, let me bring you in, there's always a lot of bliss and ignorance, would you not agree? they're focused on the fed on the market. >> well, i 100% agree with jeff. number two, here is the problem. shame on me for waiting to listen to what the fed's going to say when they start off the year with four interest rate hikes in the cards. that's start to go get frustrated. yeah, this is ominous, i agree with jeff. there are a lot of dangerous th