There are a small number of disputes that do occur and when you have as many as a million claims, ye...

1. CNN.com - Transcripts
There are a small number of disputes that do occur and when you have as many as a million claims,
yes, they do.
FEYERICK (voice-over): Robert Hartwig speaks for the insurance industry. Her brother, a
Washington-based attorney, is among those who have been the most vocal in their support, not of
her behavior but her as a person. White House spokesman Jay Carney saying that it is not a
comprehensive solution, but "a significant step toward a solution in order to avoid the fiscal cliff" --
Wolf. Republicans want to force Attorney General Eric Holder to turn over certain documents tied to
the gun trafficking operation. And I've actually -- well, you know I went to high school on the big
island.
SEN.
That was when the Tea Party was on the ascendancy, the Republicans were emboldened in the
House of Representatives. ambassador to the U.N. Right now, what we're seeing, OK, the president
is taking his show on the road. That's a lot of homes that have to be rebuilt.
BORGER: Fix it. JOHN MCCAIN (R), ARIZONA: We are significantly troubled by many of the
answers that we got and some that we didn't get. Guys, thanks very much for coming in.
As you know the U.S.
BASH: CNN is also told Rice tried to clarify to GOP senators that what she meant was al Qaeda's
core leadership had been decimated. firm. And a source close to her says the FBI hasn't given her
any indication as to how long it might continue. She's explaining what happened and some big-name
Republicans clearly are not very happy with her answers. And, Friday, a road trip to a Pennsylvania
manufacturing plant.
We begin with the Obama administration's latest attempt to explain the misleading information
given out in the days after the September 11 attack on the U.S. That's a lot, not much depending on
your perspective.
But with adults, they did not find the same long-term impacts in the studies. Eight car bombing on
one day in Iraq. Sanjay Gupta has a report.
(COMMERCIAL BREAK)
BLITZER: The movement to legalize medical marijuana is gaining support, but what if the patient is
a child? In July, a 7-year-old was diagnosed with leukemia. Others want him to reverse his decree.
While we certainly wish we had had perfect information just days after the terrorist attack, as is
often the case, the intelligence assessment has evolved.
Reza Sayah in Cairo watching this story -- very tense situation over there at Tahrir Square right now.
But I also bought some things on Black Friday too. They kept on the spirits. I think that really is
what happens. And it says this: "Republican voters know that elections have consequences and that
Mitt Romney's defeat means there will be policy defeats too, but they will give the House and Senate
GOP credit if it fights for its principles and drives a hard bargain."

2. So, standing up for your principles is what this is about, letting your team know you're still leading
the team.
SEN. Stand by.
And, later, a 7-year-old cancer patient tries a controversial treatment, medical marijuana. But there's
either a horrific intelligence breakdown, something broke down where this administration through
the MBI chairman says he took out the real facts about what was going on, on the ground. So people
have an opportunity to do all the things they dreamed of and sometimes those are good things and
sometimes they're not.
SYLVESTER: Christmas 2002, Jack Whitaker of West Virginia had the only winning ticket in the
$340 million lottery jackpot.
BLITZER: The pictures we're now getting, the pictures you're showing our viewers, they're different
than the ones we saw before.
KELLY: They are very different.
BLITZER: But the White House has a little different strategy this time.
RICE: We have decimated al Qaeda. By law, they take effect automatically and many experts fear
will throw the U.S.
BLITZER: Fix it. They're from Broadwell's private collection. Well, I think that her friends say, you
know, she's still very much concerned about the ongoing FBI investigation into what classified
materials she had, how she treated them and where they came from. What do you know about that?
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, according to the Brotherhood's
spokesperson, two of their offices in the cities of Mansoura and Mahalla were attacked by anti-Morsi
protesters. firm she's hired to help her managed all this. Lisa Sylvester's back.
BLITZER: Reza, we're also seeing and I want to show our viewers some live pictures from Tahrir
Square in Cairo not far from where you are right now. It is a party that is struggling right now to
find its way, but also trying to consolidate and say we're still the fiscally conservative Republican
Party that we always were and we don't like raising taxes. Morsi, the president, has given no
indication that he's going to back down from these decrees, Wolf. Wednesday, meetings with middle
class Americans and CEOs from some of the country's biggest companies. Then there's Amanda
Clayton, a young mother who won $1 million in the Michigan lottery.
She made headlines when she continued to collect food stamps. These are people the White House
said who answered an e-mail, talked about how if those middle class tax cuts are not extended how it
would impact them. In some ways the property devastation was worse than Hurricanes Katrina and
Rita combined in some ways. Long lost family members may hound them.
CNN's Reza Sayah is joining us from Cairo once again.
Reza, we're hearing about attacks against several Muslim Brotherhood offices in Egypt. You're
seeing it a little bit on the Republican side. Much more difficult, finding the off-ramp.
Gloria, for some reason, this sounds very familiar, the summer of 2011, the debt ceiling debate that

3. was going on. ROBERT HARTWIG, PRESIDENT, INSURANCE INFORMATION INSTITUTE: I would
disagree. I had a chance to sit down with him and ask him about the war on drugs, immigration and
a whole lot more.
BLITZER: Both sides are going to have to open the door more than just a little bit. And as CNN's
national correspondent Deborah Feyerick discovered, it means a lot of homeowners are looking for
answers.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT (voice-over): When Superstorm Sandy
hit Garretson Beach, Brooklyn, Peggy Taylor thought she was ready. And both of them are trying to
work together to give her some time to get through this.
JAY CARNEY, WHITE HOUSE PRESS SECRETARY: The focus on, some might say obsession on
comments made on Sunday shows seems to me and to many to be misplaced. It's an effort being
rolled by her friends, family and the P.R. You really can't get too close, but it is really a sight to see --
Wolf.
BLITZER: Thanks very much, Lisa.
Mexico's new leader is here in Washington to meet with President Obama, but first he sat down with
me for an exclusive interview today. Our new poll this week, the CNN/ORC poll, asked how to
resolve this budget problem. We see the tents. Also, Tartt says, making someone else happy and
having a sense of purpose, also expressing gratitude, that those are the true keys to happiness. She
did release a statement admitting her talking points -- quote -- "were incorrect in a key respect.
Great point. And there's a funny thing about money and happiness you may not realize.
ALDUAN TARTT, PSYCHOLOGIST: You win the lottery and so you spend a lot of money. An adjuster
came, assessed the damage and instead of getting zero, the adjuster cut a check for $7,500, a partial
payout for hurricane and wind damage not flood.
As for Tom Sullivan, we called his insurance company. Thank you. More troubled now. I can't
imagine any U.N.
BLITZER: He won't be in the next Senate, and the lame-duck Senate is not going to that if -- and it's
still a big if -- if the president goes ahead with this nomination. They want to put out the message
that she wasn't just a mistress. Officials in New York State and New Jersey say they'll need more
than $70 billion to recover. BASH: GOP senators also complained Rice neglected to ask key
questions before telling the public what turned out to be wrong information. Our Dr. Again, we have
the report coming out that they audit by ambassador pickering who is probably one of the most
respected people in the last 30 years in the State Department. KELLY AYOTTE (R), NEW
HAMPSHIRE: The information given to the American people was wrong. ambassador a fair shot?
Because there's all the indications we're getting the president maybe wants to name her the next
secretary of state.
MARY MATALIN, CNN CONTRIBUTOR: Well, whether she was misleading purposefully or
unwittingly, we come to the same end. Thrust them into a world of wealth that is foreign to them.
Lisa's back. The demonstrators are voicing their anger with President Mohamed Morsi after what
some are calling an unprecedented power grab.

4. LOTHIAN: But White House spokesman Jay Carney insisted the president is fully engaged in getting
an agreement while taking his case to the public. Of course, people have made mistakes.
BLITZER: Only spending cuts, 29 percent, but a mix of spending cuts and tax increases, 67 percent.
AYOTTE: That's troubling to me as well why she wouldn't have asked. Two years later, his wife said
that she wishes she had torn up the ticket, their lives in shambles. Is it a safe treatment for a 7-yea-
-old girl? Standby. Morsi. They then contacted us here at CNN to find out whether Sullivan's story
would be included now that the matter was resolved -- Wolf.
BLITZER: Deborah Feyerick, thanks very much. You're going to hear his strong words over the so-
called "Fast and Furious" gun smuggling operation.
And the Powerball jackpot reaches half a billion dollars.
(COMMERCIAL BREAK)
BLITZER: The jackpot for tomorrow's Powerball drawing, get this, is now a record $500 million, but
it may come with a catch. It's good for the economy. I'm going on every single show. Protesters are
camping out in Cairo's Tahrir Square, in a scene strikingly similar to what we saw in the revolution
almost two years ago.
But take a look at this editorial, something from the editorial that the conservative editorial page of
"The Wall Street Journal" wrote today. A deadly day of eight car bombings in Iraq. And he came out
and told reporters he's satisfied with her answers.
CARNEY: It does not, I think, you know, make a lot of sense to simply say, never mind, the American
people and business leaders and small business leaders and civic leaders and labor, you know, cut
them out of the process and stop the conversation with them. And that's the main reason why she
didn't go out and that Susan Rice was kind of the most logical choice to do that. And so the president
found himself in that deal if you will recall negotiating with himself and some Democrats thought
that was just a little bit too early. Her Deluxe homeowners' policy covered hurricane and wind, not
floods.
TAYLOR: She said you're not entitled to anything.
I'm Wolf Blitzer. ambassador to the U.N.
(BEGIN VIDEOTAPE)
LOTHIAN (voice-over): It doesn't take a GPS to find the way to the fiscal cliff. And the biggest I'm
told actually came up in this meeting today with Republican senators, which is, why wasn't Hillary
Clinton who, of course, is secretary of state now, why wasn't she out there? The answer was that she
wasn't feeling well. I mean, again, this whole thing is probably some mistakes made here I think the
entire thing is -- I think the public has a pretty good grip on it.
That they've made some mistakes and they weren't intentionally misleading people, but we're going
to have real answers. Friends of Paula Broadwell are coming forward to paint a more sympathetic
picture of her both as a professional and as a human being.
Our intelligence correspondent Suzanne Kelly is here in THE SITUATION ROOM. I've actually been

5. relatively close. So how do the Republicans need to finesse their message given where the American
public stands?
BORGER: I think we see that playing out in public right now.
BASH: Rice requested to meet with her chief Republican critics in order to explain why five days
after the September Benghazi attack that killed four Americans she went on Sunday talk shows
suggesting it was sparked by a spontaneous protest.
I think it's just becoming easier. But the reason we have a standoff is that Mr. The president's
meeting with CEOs, the Republicans will meet with CEOs.
The election was only three weeks ago, but President Obama's about to shift back into campaign
mode. The administration's got some work to do, James.
CARVILLE: They have made some mistakes here.
BLITZER: How much of what we're seeing from leaders on both sides is simply theatrics?
BORGER: A lot of it.
BASH: Rice did not answer our question. Tuesday, a meeting with small business owners. Sanjay
Gupta will report.
BLITZER: She hasn't spoken publicly about all of this. According to IBM's Smarter Commerce, online
sales were up 30 percent over last year. But as long as there's a possibility of legal action, she's
being careful.
Now, that said, her brother also says that her mind is very much focused on fixing the damage
within her family. If the president does appoint her, which frankly now I hope he does, she'll be
asked openly and she will testify and the public will see the whole thing.
They've already launched an investigation director of central intelligence to testify, the director of
overall intelligence to testify.
SEN.
BLITZER: Probably a good strategy.
CNN's getting exclusive new information and photographs of Paula Broadwell. So it's hard to do the
studies and especially hard to do them in children. It takes up a lot of time. But they're going to have
to make a deal. You're seeing it on the Democratic side. Are these winners just unlucky or is there
something more?
Psychologist, Alduan
http://www.fda.gov/Safety/MedWatch/SafetyInformation/SafetyAlertsforHumanMedicalProducts/ucm
330772.htm Tartt, says big payouts can isolate people. And they did find if you smoked or took
marijuana before a certain age, it was more likely to have a long-term impact.
So for example these children who started during an average age of 8, but teenagers as well, by the
time they were 38 they had a loss of about eight IQ points compared to the general population. But

6. you got to admit, it's really easy with a few clicks of a button here and there and presto.
BLITZER: A lot of times now, there's free shipping, too.
SYLVESTER: Well, especially on Cyber Monday. The president is meeting with small business, and
the Republicans will meet with small business. With the lottery, the money is just handed to you.
BASH: A source inside the meeting tells CNN Rice admitted to GOP senators she was aware of
classified information suggesting al Qaeda was behind the attack.
Broadwell has been laying low since news of her affair with former CIA Director David Petraeus.
And President Obama's reverting to some campaign mode right now to try to make sure things are
done his way. Dana, thanks very much.
(BEGIN VIDEOTAPE)
BASH (voice-over): The way these grim-faced GOP senators tell it, Susan Rice's attempt to calm their
criticism backfired. She's got the details.
What are you learning?
SUZANNE KELLY, CNN INTELLIGENCE CORRESPONDENT: Wolf, we're seeing these images first
in THE SITUATION ROOM. She was also a professional, a mother.
As O'Hanlon put it earlier today, Petraeus will likely be able to bounce back from this because
people who knew who he was before the affair broke, it will likely be far tougher for Broadwell
because most people are just getting to know her because of this affair.
And, of course, we have a full story on this, Wolf, along with all of these photos on
CNN.com/securityclearance, which I know you love to read. Marijuana can be especially effective for
treating what is known as neuropathic pain, the pins and needles sort of feeling.
The question that doctors want to know is if it's safe, effective and more effective than what else is
out there? Sure enough. Dan, thanks very much. There was open source intelligence.
I don't know anybody, neither do you, Wolf, in all the administrations I've worked in or you've
covered where you get talking points handed to you and you don't ask questions. Why the public

7. push now by her friends?
KELLY: Right.
KELLY: Yes. He said that money doesn't change a person, it simply unmasks them. The president's
calendar is packed with sales pitches to the public, which he hopes will strengthen his hand in
negotiations with Republicans. Many of them want Mr. Abraham Shakespeare in Florida was
murdered after winning $31 million. They reviewed his claim and again promised him a check for
$10,000. While I would argue, nobody has a mandate other than to fix things on this fiscal cliff, the
president feels that he has a mandate particularly from the base of the Democratic Party.
But after that meeting, their criticism was harsher than ever. With regard to this 7-year-old, she has
this treatable form of leukemia. Late last night, they called it off to avoid violence.
Now, the president has been reelected.
BORGER: Right. So Rice used the word extremist. Also, a growing number of shoppers there used
mobile devices like smartphones or tablets to make their purchases. That investigation is ongoing.
These are the opposition factions. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE
UPDATED.
WOLF BLITZER, CNN ANCHOR: Happening now: Susan Rice goes to Capitol Hill, but doesn't quiet
Republicans' concerns she and the Obama administration misled the American public about the
deadly attack on Americans in Libya. Who are these protesters? And there are huge numbers there.
Both Congress and the White House are trying to make a deficit reduction deal to avoid the financial
chaos. But again, this is going to be a decision between patient and their doctors.
Macayla, by the way, isn't the only one. This is about positioning yourself to get the best deal you
can get for your constituents.
And this year's Cyber Monday being called the biggest online shopping day ever. So we'll get all the
facts and the public will be able to discern what it is.
Go back to what Tom Ricks says that he thinks this whole thing is overblown. That's an
overwhelming majority. There was no protest or demonstration in Benghazi. Sanjay, thanks very
much.
What's the latest, Dana?
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Wolf, the three Republican
senators who had vowed to block Susan Rice from being secretary of state if the president
nominates her had really softened their rhetoric in recent days. Another friend, Michael O'Hanlon,
with the Brookings Institution, put out an op-ed over the weekend in "The Baltimore Sun", also not
defending her behavior but letting people know that some of the betrayals of her just don't match up
with the woman who he calls a friend. International investigators led by the French took samples
from Arafat's body to test for poison. Our Dr.
Elsewhere in the Middle East today, they exhumed the body of the Palestinian leader Yasser Arafat.
So they'll have a chance to question Ambassador Rice presumably going to be secretary of state
nominee Rice and she can give her answers.

8. That's the way the system should work and they'll have the benefit of the report audited by the
administration. What is going on?
LISA SYLVESTER, CNN CORRESPONDENT: Yes, that is something else, Wolf.
SYLVESTER: That's right. Lisa Sylvester is monitoring that and some of the other top stories in THE
SITUATION ROOM right now.
What is the latest, Lisa? LISA SYLVESTER, CNN CORRESPONDENT: Wolf, the former PLO leader's
body was exhumed today and reburied a short time later. He cannot talk about the denied claims
instead saying payment of Sandy-related claims is going very well.
HARTWIG: People are paid the amount of money that they are entitled to under the terms and
conditions of the policy, yes.
FEYERICK: And that may be a big part of the problem. I've seen that pictures time and time again.
And this is all part of the theatrics that goes along with finally settling down and getting to the
serious negotiations. And by the way, if Secretary Rice -- I mean, Ambassador Rice is appointed to be
secretary of state, they can get more answers.
They have subpoena power in the House. So we'll see where it goes.
I'll agree with Tom Ricks who was on our competitor network, Fox News, said he thought the whole
thing was overblown. Guys, thanks very much.
Hundreds of thousands of homes were torn apart by Superstorm Sandy. That was the real thing.
BLITZER: Yes.
SYLVESTER: If you looked around, you had your favorite stores. But you know, Wolf, believe it or not
there are some former lottery winners who say they wish they had never won. And that's the way --
BLITZER: Did you buy anything on Cyber Monday?
SYLVESTER: I bought a couple of things. Mary, are they giving the U.S. The deadly attacks come a
day after officials agree to talk about disputed areas including in (inaudible).
And the ACLU is suing the Pentagon to lift all restrictions on women serving in combat.
(END VIDEOTAPE)
BASH: Now, Rice's Democratic supporters argue the Republican senators are the ones who are
politicizing the Benghazi attack by continuing to go after Susan Rice. Those were a lot of the people
he's been meeting with, including the CEOs, taking the show on the road, taking a page I would
argue from Ronald Reagan's book, going over the heads of the Congress to the American people,
which by the way Republicans will do as well.
BORGER: Well, first of all, the White House I think is in a very different political position than it was
in the summer of 2011. They can do all of these things and there's been no evidence of any cover-up
or anything. The state's chief insurance regulator, Benjamin Lawsky, is tracking insurance

9. companies who fail to do the right thing.
BENJAMIN LAWSKY, SUPERINTENDENT OF FINANCIAL SERVICES: If it ends up that there is a
pattern where particular companies are not paying what they promise to pay, they are going to have
a huge problem doing business in this state.
(END VIDEOTAPE)
FEYERICK: So what happened? Well, Peggy Taylor got help from the New York State Department of
Financial Services, which called Taylor's insurance company on her behalf. Did somebody try to kill
him with poison?
(COMMERCIAL BREAK)
BLITZER: The latest on what really killed Yasser Arafat. There's a guilt factor, who to help out and
who not to. So what happens is you actually have to spend more money to get the same level of
happiness.
SYLVESTER: But what about the lottery winners who do end up happy? What's their secret? Experts
say they don't lose their sense of self and they can separate their identity from their money.
(END VIDEOTAPE)
SYLVESTER: And Tartt says, you know what makes people really happy is actually the pursuit of
happiness, enjoying the journey of setting a goal and reaching it. What we have is a Republican
Party that's kind of searching for this new message. No claim of responsibility for the three Baghdad
attacks yet, but police are pointing the finger at al Qaeda in Iraq. SANJAY GUPTA, CNN CHIEF
MEDICAL CORRESPONDENT: Well, Wolf, the question of safety is the first one that comes up every
time you talk about this. The suit is filed on behalf of four women who served in Iraq or Afghanistan.
The Defense Department recently allowed women to serve in some combat units and it says the
defense secretary is strongly committed to examining the expansion of roles for women in the U.S.
About a 79 percent or 80 percent chance of putting this in remission.
She's taking this medical marijuana to try to alleviate some of the symptoms, for example, the
nausea that's associated with chemotherapy and also the pain. And we have to have a better answer
than talking points given to her like she's some kind of flak.
BLITZER: These polls that we have, James, these latest CNN/ORC polls, how has the Obama
administration handled the Benghazi attack, 40 percent say they're satisfied, 54 percent dissatisfied.
ambassador to the U.N., Susan Rice, she met with three of her toughest critics, Republican critics up
on Capitol Hill today. That's according to a draft request for the proposal. military.
And check at this amazing video from Hawaii. Maybe it will work for him right now in this crisis.
She's a distraction here.
But what Senators McCain, Ayotte and Graham are talking about is we live in a dangerous world. I'm
sure the secretary of state will be testifying at some point in this too or be heard from. She's a rogue
scholar and understands all of that. My exclusive interview with the brand new Mexican president,
that's coming up.

10. Also, today's strategy session takes a closer look at whether today's trip to Capitol Hill helped or
hurt Susan Rice's chances of becoming the next secretary of state.
(COMMERCIAL BREAK)
BLITZER: All right, let's get right to our "Strategy Session." Joining us right now, Democratic
strategist James Carville and Republican strategist Mary Matalin. She's the woman whose affair with
General David Petraeus forced him to leave the CIA. "Reuters" reports the Navy plans to buy 25 new
helicopters used to transport the president. Four Americans, including the U.S. LOTHIAN: But that
didn't stop a barrage of questions about when the president would next meet with congressional
leaders or why he was spending much more time with stakeholders than lawmakers.
GRAHAM: It was unjustified to give the scenario as presented by Ambassador Rice and President
Obama three weeks before an election. The Obama administration has withheld these documents
under executive privilege. out before the big United Nations General Assembly meetings, which
were about to begin. We're told it's an effort to put out what they call a more realistic picture of who
she is after two weeks of being cast as something of an obsessed mistress. I'm the person that
doesn't know anything about this. Bombers attacked in Baghdad. Diagnosed with cancer and taking
medical marijuana.
Let's dig a little bit deeper with our chief political analyst, Gloria Borger. They're looking for a toxic
radioactive element called polonium.
The Palestinian Authority believes Israel is behind any poisoning of Arafat. So who doesn't want to
win the lottery, right? In fact, I bought my lottery ticket already. And what they have to demonstrate
is, yes, they're the party of fiscal conservatism, but they also have to show, Wolf, that they can be a
little bit flexible when it comes to the details, because they do want to solve the deficit crisis, which
is why you see a lot of these people coming out talking about a balanced approach, which after all is
what the president is talking about. The Brotherhood says these protesters were carrying Molotov
cocktails, clubs and knives and destroyed and heavily damaged these offices.
Remember, Muslim Brotherhood had called for a one-million-man demonstration of their own today
to rival the opposition's demonstrations. Wolf?
BLITZER: Good points, Lisa.
Unfortunately, for Susan Rice, as you know, Joe Lieberman won't get a vote because he is retiring at
the end of the year. Arafat died in 2004 after having a brain hemorrhage and slipping into a coma.
And the Justice Department and House Republicans have started talks on the Fast and Furious
lawsuit. You were there earlier in the day. She's looking at this story. We'll find out what they are
and assess and go on from there.
BLITZER: We'll see if the president goes ahead and nominates her to succeed Hillary Clinton as the
secretary of state. She's got more -- Lisa.
SYLVESTER: Hi there, Wolf.
(COMMERCIAL BREAK)
BLITZER: CNN is learning exclusive new details about the woman at the center of the scandal that

11. cost the CIA Director David Petraeus his job. I mean, otherwise why pay?
FEYERICK (voice-over): More than a dozen people we spoke within hard hit storm areas not just
here were equally upset.
(on camera): How many of you are less than happy with the experience of your insurance company?
(voice-over): Insurance critics call the pushback delay, deny, defend.
AMY BACH, INSURANCE CONSUMER ADVOCATE: The worst is just saying we're not going to pay
for this when in fact it's covered or lowballing saying we're only going to give you 50 cents on the
dollar.
FEYERICK (on camera): What we're hearing is, is that a number of these insurance companies are
finding ways to say no before they're finding ways to say yes. ambassador to Libya, died in what we
now know was a terrorist attack. Did the Obama administration try to intentionally mislead the
public on the Benghazi attack, 40 percent say yes, 54 percent say no. Boy, does it make for a
beautiful sight, beautiful pictures. She was very upset about the fact that one of her ambassadors
was killed in the line of duty.
BLITZER: But a lot of reports, she's getting professional advice in terms of damage control and how
to deal with this. Their 17-year-old granddaughter was dead after struggling with a drug addiction.
Whitaker faced multiple lawsuits and was arrested twice for drunken driving. In New York State
alone Sandy destroyed more than 300,000 homes. Navy wants to replace the aging fleet of Marine
One helicopters. It's now legalized for medicinal purposes in 18 states and two more states for
recreational purposes.
So this is an issue that's going to come up again and again. And yet GOP senators point out she still
said this publicly.
Some of them renouncing Grover Norquist's no tax increase pledge. What's going on?
SAYAH: Yes. LINDSEY GRAHAM (R), SOUTH CAROLINA: I'm more disturbed now than I was before.
Our White House correspondent, Dan Lothian, is joining us now with new information. Now, what's
interesting is right after the 2011 uprising, these factions were all divided.
We're now only 35 days away from the so-called fiscal cliff, deep cuts in federal spending coupled
with sharp tax increases.
Our senior congressional correspondent, Dana Bash, is following what's become a pretty long day, a
tiring day for the U.S. But go ahead.
BLITZER: Good. Winning the lottery will change your life often for the good, but sometimes for the
bad.
(BEGIN VIDEOTAPE)
SYLVESTER (voice-over): This is the stuff of dreams.

12. UNIDENTIFIED MALE: I'd probably buy my wife a new car.
UNIDENTIFIED MALE: I'd be able to pay off my student loan.
UNIDENTIFIED FEMALE: Retire most definitely.
SYLVESTER: A $500 million before taxes, that's how much you can win in the Powerball jackpot.
And we're learning exclusive new details about the personal and professional life of the woman at
the center of the scandal that forced the resignation of CIA Director David Petraeus. At the
president's first meeting with congressional leaders more than a week ago, there was a sense of
optimism.
SYLVESTER: But you know what, Wolf? A lot of people actually like that.
BORGER: Because you know what? The message, the one mandate from the public was fix things.
Listen to what Senators McCain, Graham and Ayotte said after the meeting.
(BEGIN VIDEO CLIP)
SENATOR JOHN MCCAIN (R), ARIZONA: We are significantly troubled by many of the answers that
we got and some that we didn't get.
SENATOR KELLY AYOTTE (R), NEW HAMPSHIRE: I want to say that I'm more troubled today
knowing having met with the acting director of the CIA and Ambassador Rice.
SENATOR LINDSEY GRAHAM (R), SOUTH CAROLINA: Bottom line, I'm more disturbed now.
(END VIDEO CLIP) BLITZER: More disturbed now. There's something wrong when this
administration allows their U.N.
BASH: Accompanied by Acting CIA Director Michael Morell, Rice explained she was using these
unclassified talking points which were stripped of references to al Qaeda, still classified by the
intelligence community. She has an attorney that she's hired here in D.C., as well as a P.R.
Broadwell's brother also told us earlier today that it's been hard for her family to see the picture
that's being painted of her and that her real focus is her family, her husband and her boys and trying
to restore the trust that she had with her husband and trying to protect her children from the
publicity."
Now, we haven't heard much from her publicly, Wolf. ambassador whose read-in at that level to go
out and mislead the American people on a terrorist attack. Enrique Pena Nieto, he's here in
Washington. If you win, you can buy a lot of stuff, but what about happiness?
Well, it turns out those cliches money can't buy you happiness, money doesn't make the man, a fool
and his money are easily parted, there's some truth to them. The first of the new helicopters would
be ready in 2020. You're in THE SITUATION ROOM. I think that opens the door a little bit. I believe
she's a smart person. So, I think I'm still --
BLITZER: You did the old fashioned way and new way. It's the first time the lava has flown into the
ocean in almost a year.

13. Experts say it's very dangerous and they are warning people to stay away. But GOP senators argue
it's proof Rice was putting pre-election spin before national security.
Look at this.
This approach did not escape the attention of Senate Minority Leader Mitch McConnell, who
questioned the president's leadership on these fiscal challenges. ambassador to the United Nations
Susan Rice said when she went on national television five days after the attack.
Do we have a clear answer yet why the White House decided to put Ambassador Rice out on that
specific Sunday five days after that September 11 attack on the consulate in Benghazi? Why did they
decide to select her to make the administration's case?
BASH: Do we have a clear answer? No.
Return to Transcripts main page
THE SITUATION ROOM
President Obama in Campaign Mode?; Susan Rice Under Fire; New Details in Petraeus Scandal;
Egyptian Protesters Clash with Police; Rice Faces Her GOP Critics; Devastated By Sandy, Denied By
Insurance; 7-Year-Old Fights Cancer with Marijuana; Eight Car Bombings Kill 29 in Iraq; ACLU Sues
Over Women in Combat; Hawaii Lava Reaches Ocean; Powerball Jackpot Hits $500 Million
Aired November 27, 2012 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. They like the Black Friday experience of actually going to the mall
and seeing all the Christmas decorations. Sanjay Gupta -- Sanjay.
DR.
BLITZER: Lisa, thank you. We stress that neither I nor anyone else in the administration intended to
mislead the American people at any stage in this process."
And the White House had this to say. Today, Rice is up on Capitol Hill. adults still have a favorable
opinion of him, 28 percent say their opinion is unfavorable and another 28 percent are unsure.
Our poll also finds an even split 48 percent to 48 percent on whether General Petraeus should have
resigned as the CIA director.
In Egypt today, one man is dead after violent clashes with police.
BLITZER: And so that's probably one of the reasons they selected her as well. Gloria, thank you.
GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: Yes. As people start to rebuild, are
insurance companies trying to help or are they just trying to help themselves?
(COMMERCIAL BREAK)
BLITZER: The price tag for Superstorm Sandy is growing. The Republicans will take their show on
the road. The volcano has been continuously erupting for almost 30 years.

14. BLITZER: That campaign mode worked for the president in getting himself reelected. But today, for
example, Dick Durbin, the number two leader of the Democrats in the Senate, came out and gave a
policy speech. It's estimated Cyber Monday sales topped $1.5 billion. They've testified we're going to
know in January what happened.
Are we going to find out somebody made some mistakes? I'd be shocked if we didn't. If she's not
misleading, then she's incompetent.
BLITZER: What about that, James?
JAMES CARVILLE, CNN CONTRIBUTOR: Well, we got that report by ambassador -- going to come
out in January. We'll see if secretary of state does she testifies and they have a chance to question
her.
BLITZER: Mary, do you think there's anything she can do to win over the skeptical Republicans?
MATALIN: I honestly do not believe this is about Susan Rice. But we have some suggestions from
Democratic sources I have been talking to. She was found dead of an apparent drug overdose.
The other argument that I'm told by Democratic sources is that she wasn't just talking about
Benghazi, but she was also talking about the protests that really were happening across the Middle
East because of that video in Cairo and elsewhere. The president thinks that's a big mistake.
ambassador, any secretary of state just taking prima facie, that kind of information that was belied
in realtime by Libyans on the ground, by our own people on the ground, by a realtime drone aerial
picture of it would go out a week later and say that.
And while he said Medicare and Medicaid, changes in those programs should not be part of the first
step, the Democrats have to look at that down the road in order to be constructive on deficit
reduction. It's not about Susan Rice. In fact, Ambassador Rice said today absolutely it was wrong.
And as you might imagine, it is difficult sometimes to get some of those study results back.
In the United States for example, it's an illegal drug that we're talking about.
(END VIDEOTAPE)
LOTHIAN: So, again, tomorrow here again at the White House the president will meet with middle
class Americans. That's at least what I have been told by insiders. Lava from a volcano in the big
island of Hawaii is reaching the ocean. In fact, the Homeland Security chairman, Joe Lieberman, also
met with Susan Rice this afternoon, Wolf. Holder tells CNN, quote, "I think there's a deal that can be
struck."
And we will bring you more on this very important story in the next hour of THE SITUATION ROOM.
And the U.S.
BLITZER: Usually, they do put the U.S. economy back into a recession. You don't have flood
insurance.
FEYERICK: Down the block, Tom Sullivan was having a similar problem with a different insurance
company.

15. UNIDENTIFIED MALE: The water was coming out of the tubs, out of the toilet.
FEYERICK: After initially being told he would get $10,000 for sewer backup, he was then told no
because his damage was caused by the storm surge.
(on camera): When you agreed to this policy, was it your understanding that if I pay you and my
home suffers damages, you will make it right and cover?
TOM SULLIVAN, SUPERSTORM SANDY VICTIM: That would be the understanding with anyone. It's
been difficult for her they say before putting her out in any public capacity. And what happens is you
get used to having a lot of money and spending a lot of money.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My hope is, is that this is going to be the
beginning of a fruitful process.
SEN. I'm told the reason for that was because it was a courtesy in order for them zofran birth
defects kidney to wait until they had a face-to-face meeting with her which they had today. The
spokesman for Israeli Prime Minister Benjamin Netanyahu tells our own Wolf Blitzer that Israel had
nothing to do with Arafat's death. Are there other medications for nausea, Zofran, for example?
You could even take THC, which is the active ingredient in marijuana in a pill form known as
"Marinol." That's something that's FDA approved. But, again, there's that legal issue hanging over
her head. He has a lot of credibility on deficit reduction. But in these two particular cities north of
Cairo, they didn't avoid violence. Thank you.
. They're both CNN contributors. Consulate in Benghazi, Libya.
SYLVESTER: Exactly. She paid decades' worth of insurance premiums to be covered for catastrophe.
(on camera): So this is the letter basically denying --
PEGGY TAYLOR, SUPERSTORM SANDY VICTIM: I went to the office and this is what they gave me.
FEYERICK (voice-over): She says her claim was denied. At least 29 people were killed and 126
wounded in a string of car bombings around Iraq today. Even the presidential daily brief, the PDB, is
intended to be asked about.
Not to be read, to be read deeply into and asked questions.
BLITZER: And do it quick. There's never been an incompetence of that magnitude at that level.
What are you learning, Dan?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, while senior members of the
administration, including Secretary Geithner, Chief of Staff Jack Lew, also top adviser Valerie
Jarrett, are meeting with members to fix the debt, the president himself is trying to sell his vision to
the public, but some top Republicans say it's not a winning strategy. Now, they've all banded
together. Many people don't understand the terms and conditions of their policies until after they
need them.
(on camera): What does this mean? We may not limit our liability to pay damages for which we've

16. become legally liable to pay?
SULLIVAN: I don't know.
FEYERICK: Some people will say, look, it's your responsibility to understand this?
SULLIVAN: But what does that mean?
FEYERICK (voice-over): Arguably, some insurance companies may count on exactly that. MITCH
MCCONNELL (R-KY), MINORITY LEADER: In other words, rather than sitting down with lawmakers
of both parties and working out an agreement, he's back on the campaign trail presumably with the
same old talking points that we're all quite familiar with. He sees nothing to disqualify her as
secretary of state if the president decides to nominate for her. That's a big concern for them as well.
BLITZER: Certainly should be. In anything they do I think the public has a good grip on this. Wolf,
hopefully we'll get a chance to continue to talk about it.
BLITZER: I'm sure we will. Obviously, they're going to find some mistakes were made. You might
recall in 2009 the Navy failed at its attempt to buy new Marine One helicopters when a program run
by Lockheed Martin went way over budget. Let's hope the little 7-year-old is going to be OK. Happy
they do it. This gives you a great indication of what people are trying to do with the portrayal of her.
On Monday, a White House report on the impact of middle-class tax cuts on the economy. They're
trying to clear up a mystery.
SUSAN RICE, UNITED STATES AMBASSADOR TO THE UNITED NATIONS: Extremist elements
came to the consulate as this was unfolding. Thanks very much, Suzanne Kelly, good report. Carney
hit back. Now her friends are coming to her defense.
Mexico's getting ready to swear in a new president. You could certainly find some deals.
BLITZER: So, those retail stores going to wind up like newspapers, do you think?
SYLVESTER: I think people still like going into the store and trying it on, particularly when it comes
to things like clothes and shoes.
BLITZER: It's not like you have to look for a parking spot, wait in line, spend hours over there. These
are all Muslims like much of Egypt, but you're not going to find many hard line Islamists here.
These are the people who represent the secularist, the moderates, the Western style liberals, the
women's rights groups, and they've banded here together to rise up in opposition against Mr.
BASH: Exactly. So a lot of the data that we talk about actually comes from other countries.
So for example, there was a study out of the Netherlands looking specifically at adolescence who
smoked marijuana or who took marijuana and comparing them to people who are adults.
But that isn't what the U.S. The civil liberties group says the policy is unconstitutional. And that will
come before trying to fix any damage to either her career or her reputation.
CARNEY: So to suggest that we should now that the election's over stop talking to them about these

17. vital issues I think is bad advice. Morsi to step aside. A few days later, she joined Oregon's medical
marijuana program.
Her mother says the cannabis oil helped put the cancer in remission, but is it safe? We asked CNN's
chief medical correspondent Dr. In the state of Oregon alone, of the 2,200 people who are on the
marijuana registry, 52 of them are children. Only about half of all lottery winners are happier three
years later says Michael Boone whose Seattle firm advises big lotto winners.
MICHAEL BOONE, PRESIDENT, MWBOONE AND ASSOCIATES: I think Henry Ford said it really,
really well. But those close to her have described her as being absolutely ashamed, embarrassed and
trying to recover from all of this. This is a senator, liberal Democrat, part of the gang of six,
somebody with a lot of credibility on deficit issues.
While the scandal undoubtedly hurt David Petraeus' reputation, CNN's latest polling finds a lot of
people still like him, 44 percent of U.S.
LOTHIAN: There was a follow-up phone call with House Speaker John Boehner, but a much different
approach this week. And then we'll watch the fight up on Capitol Hill