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updated 10/31/2012 11:52:03 AM ET 2012-10-31T15:52:03

THE ED SHOW with ED SCHULTZ
October 29, 2012

Guests: Ted Strickland, Ed Rappaport, Martin O`Malley

ED SCHULTZ, HOST: Good evening, Americans. And welcome to THE ED
SHOW, from New York tonight.

Sandy, nice name, lousy storm. And it`s hitting the East Coast as I
speak. We`ll have live updates of the storm as it makes landfall.

This is THE ED SHOW -- let`s get to work.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This is going to be a
big storm. It`s going to be a difficult storm. The great thing about
America is when we go through tough times like this, we all pull together.

SCHULTZ (voice-over): Sixty million people in 12 states brace for
800 miles of hurricane Sandy.

OBAMA: I am not worried at this point about the impact on the
election. I`m worried about the impact on families.

SCHULTZ: The campaigns have been suspended. Entire cities shut
down, and the worst is yet to come.

REPORTER: Water is up over the street.

REPORTER: These wind gusts are getting more and more frequent and
much stronger.

REPORTER: The fear is it`s going to be worse than Irene.

SCHULTZ: Tonight, full reports from up and down the East Coast.

REPORTER: It`s only a matter of time as this system gets closer.

SCHULTZ: Governor Martin O`Malley over the battering in Baltimore.
And former Governor Ted Strickland on what the historic storm means for the
political storm in Ohio.

(END VIDEOTAPE)

SCHULTZ: Good to have you with us tonight, folks. Thanks for
watching.

Sandy is expected to make landfall at this hour on the coast of New
Jersey. The storm is now a post-tropical cyclone. The path along the
Northeast corridor has been slow and moving and wide, slow-moving and very
wide.

Hundreds of thousands of people in coastal areas have been evacuated
up and down the East Coast.

This is a live shot of Rehoboth Beach, Delaware. We will get a live
update from the shoreline in just a moment.

Authorities say New York City and Long Island could get the worst of
the storm surge. Sea water could rise up to 11 feet.

The damage from Sandy was on display hundreds of feet above Manhattan
today. You`re seeing a YouTube video of a crane collapsing on the 57th
Street high-rise.

City officials say workers would not be able to access the crane to
keep it from falling. At this hour, the crane is still hanging in the air
over the city. Residents of the nearby buildings and businesses have been
evacuated.

Beach front communities along the coast already experienced flooding
and massive water damage.

This shot is from Seaside Heights, New Jersey.

In Atlantic City, large chunks of boardwalk were just washed away.
New Jersey officials say they may not be able to reach people stuck in
areas for days. Residents are being told to stay off the roads due to
flooding and wind gusts. Winds of 90 miles per hour are reported at this
hour. Damage from flying debris is extensive. But the total amount of
destruction certainly is not known.

The United States Coast Guard earlier today engaged in a mid-ocean
rescue of 14 crew members of a private ship called the HMS Bounty. The
dramatic rescue occurred this morning over the Atlantic Ocean. The Coast
Guard recovered the body of one member of the crew who died. Another
passenger remains missing.

As for those on land, many are stranded in the nation`s airports.
Nearly 14,000 flights have been cancelled across the country.

Financial markets are feeling the effects of the storm as well. The
New York Stock Exchange was closed today and will remain closed tomorrow.

More than 2 million power outages have been reported by state utility
companies in the Northeast where the storm is just baring down. The New
York area reports more than 625,000 outages. In New Jersey, there have
been more than 532,000. Connecticut, Massachusetts and Rhode Island are
also reporting power outages in the tens of thousands.

President Obama was briefed on the storm in the White House Situation
Room today. The president addressed the nation this afternoon. He said
the government response has been extensive and efficient.

(BEGIN VIDEO CLIP)

OBAMA: I have spoken to all the governors in all these states. They
have issued emergency declarations. Those have been turned around quickly
here in the White House.

We have prepositioned assets so that FEMA personnel are working
closely with state and local governments. There`s been extraordinarily
close coordination between state, federal and local governments.

(END VIDEO CLIP)

SCHULTZ: If you want to know how close the coordination has been,
listen to New Jersey Governor Chris Christie.

(BEGIN VIDEO CLIP)

GOV. CHRIS CHRISTIE (R), NEW JERSEY: I`ve been in touch with
President Obama this afternoon. The president called me at about 2:15 this
afternoon. It was just the two of us on the phone. We had a good
conversation.

The president wanted to know if we had everything that we needed to
be able to respond to the storm from the federal perspective. I told him
we did. He wanted to check on the level of cooperation with FEMA, I said
it was excellent.

He told that if at any point over the next 48 hours, I was not
getting from the federal government, that I should call him directly at the
White House and had he was going to be there. And that I should just not
worry about dealing with anybody else. Call him.

(END VIDEO CLIP)

SCHULTZ: President Obama was quick to point out the response is part
of the normal government operations. It`s not a reflection of the current
election climate.

(BEGIN VIDEO CLIP)

OBAMA: I am not worried at this point about the impact on the
election. I`m worried about the impact on families and I`m worried about
the impact on our first responders. I`m worried about the impact on our
economy and on transportation. The election will take care of itself next
week.

(END VIDEO CLIP)

SCHULTZ: Federal, state and local governments do have the luxury of
taking care of the storm next week. The country will still be feeling the
effects of Sandy tomorrow and in the days to come, and a lot of it is going
to depend on people`s emotions when their power is out for numerous days.
We`ll see how they feel then.

Joining me now is NBC`s Than Truong, who joins us from Rehoboth Beach
in Delaware.

Thanh, you have been there all day, are the conditions deteriorating?
What`s it like at this hour?

THANH TROUNG, NBC NEWS CORRESPONDENT: Well, right now, Ed, let me
take you -- let me give you a look at what`s going on behind me. This is
now high tide. This is the high tide that the governor, Jack Markell, was
actually very worried about. He says this is going to be the crunch time
for the state of Delaware, especially for the coastal areas.

This area, by the way, is under a mandatory e evacuation order.
Fifty thousand residents so far in the past couple days have been evacuated
from this area. Because of the high tide, they are anticipating that much
of the water are going to be pushed on shore.

So far, they believe the coastal infrastructure is in place. They
believe that it will hold tonight. That`s much to do about their coastal
restoration in the past year or so.

Right now, they have roughly 6,600 power outages. The governor
anticipates that number is going to climb as the night goes through and
depending on what the weather conditions are going to be like overnight,
they are still expecting some very strong gusts and also some sustained
rain. It`s been raining for the past 24 hours. It hasn`t been coming down
in sheets, but it`s been fairly steady.

And as this testimony keeps moving on north and northwest and then
turning northeast eventually, they believe that the inland flooding is
going to be a concern as well. He says, so far right now, the most
fortunate thing is there are no fatalities, there are no injuries that they
know of.

SCHULTZ: Yes.

TROUNG: He says that`s mostly attributed to the people heeding the
warning and getting out of harm`s way when they issued those warnings.

SCHULTZ: All right. Thanh, stay with us. We want more.

But let`s bring in Ed Rappaport, deputy director of the National
Hurricane Center. We`re getting word now that it is just hit landfall.

Ed, good to have you with us. What can you tell us tonight?

DR. ED RAPPAPORT, NATIONAL HURRICANE CENTER: That`s right. The
center of Sandy has made landfall in the last few minutes. The center is
near Atlantic City. Maximum winds at this time are about 80 miles per
hour. So, they`re starting to come down. They will continue to come down.

The winds are not our most significant concern though. The concern
is almost always in this case, water. Most people drown in hurricanes. We
have two risks for Sandy. And that is storm surge along the coast and
inland flooding from excessive rain in this area that I have highlighted
here.

SCHULTZ: Well, what can we expect in the next several hours? You
say that the winds are going to be calming down. But what can we expect as
far as severity in the next several hours?

RAPPAPORT: Well, the winds will come down, but only very gradually.
And even slower will be the reduction in the storm surge. In fact, the
total water levels in some places will continue to rise for those who that
have not reached high tide.

So, for example, we know we have a 12-foot storm surge already
occurring in Long Island sound. Seven feet down in New Jersey, seven feet
in Connecticut.

Here, the maximum of a high tide is going to occur closer to
midnight. So the water levels are going to continue to rise, perhaps as
much as four or five feet in some places.

SCHULTZ: This is -- in your experience, Ed, capsulize this one for
us. How unique is this storm?

RAPPAPORT: It`s unique in terms of where it is and what kind of
characteristics it has. Clearly, we have hurricanes come ashore further
south, but it`s rare to have such a system come ashore with this kind of
intensity this far north.

Now, Sandy did lose its tropical characteristics a couple hours ago,
but it didn`t change really its impacts. Still, hurricane-force winds were
occurring on the coast and this tremendous storm surge with waves on top,
tide still increasing some places, so we still have a very dangerous
situation along the coastline.

SCHULTZ: We`re also getting some snow with this system as well and
also the tracking of it is somewhat unusual, isn`t it?

RAPPAPORT: That`s right. It`s highly unusual to have any snow
associated with a system that originated here down in the tropics. We do
have concern about the track too. Not only was it unusual to come up like
this, but our concern is it`s going to slow down, almost stop before
turning towards the north.

What that`s going to do is prolong the time of heavy rain here and
that`s what`s going to enhance the chance for flooding.

SCHULTZ: So we can expect a great deal of flooding in the area that
you just pointed to over the Pennsylvania area. We can anticipate numerous
power outages maybe for days.

Ed Rappaport, thank you for joining us tonight.

Let`s go back to Thanh on the shore.

Has it changed throughout the day? Is this the most intense time
right now, Thanh?

TROUNG: It`s been pretty sporadic, Ed. Actually, this is right now,
at least in terms of the wind, it`s actually calmed down because we`re on
the backside of the storm. As it keeps moving north and northwest, we`re
catching the backside of it.

But that`s not the main concern for the governor. You heard Ed
Rappaport talk about the tides. High tide is now. It will be the midnight
hour and going through the early morning hours that those are the areas of
his main concern at this point.

He`s very fearful that as the tides start rolling in, it`s going to
start inundating the coastal areas. Just south of here, in Dewey Beach all
through the day, this area has taken on water. Some roads are impassable.

(CROSSTALK)

SCHULTZ: Where are the people?

TROUNG: It`s low-lying.

SCHULTZ: Thanh, I`ve got to ask you. Where are the people? Have
they heeded the warnings? Have they departed? Or are there any people
hanging trying to fight through this thing?

TROUNG: Rehoboth Beach, Ed, right now is basically a ghost town. As
you probably know, this is a very popular destination spot during the
summer. But actually, during the Halloween time, they have a large
festival. This place a couple days ago, 70,000 people running around here,
this boardwalk in front of me was packed wall to wall.

They evacuated within 24 hours because as the conditions started to
worsen, the governor made a judgment call and said people need to leave --

SCHULTZ: Yes.

TROUNG: -- ahead of the storm, anticipating what you`re seeing
behind us. There are a few stranglers behind. We did see a few residents
in Dewey Beach, which is actually talking on more water than Rehoboth at
this point. The governor said that`s quite a foolish move to make, because
if they get in trouble, he can`t guarantee and local officials can`t
guarantee that anybody will be able to go out there and help them.

And he believes that they are actually endangering other people and
possibly those first responders by needlessly responding if in case these
people get in trouble that they have to come out here.

SCHULTZ: OK.

TROUNG: He says, right now, it`s like, look, if you need to get out,
your window has passed. Now is the time to hunker down, stay inside, don`t
do anything foolish.

It`s a beautiful sight if you look at the waves. But it`s not worth
coming out and looking and taking pictures, Ed.

SCHULTZ: All right. NBC News` Thanh Troung with us tonight from the
beach. Thank you for joining us.

Coming up, live reports throughout the hour along the East Coast as
Sandy has made landfall. Stay tuned. You`re watching THE ED SHOW on
MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Coming up, we`ll have live reports from along the coast as
Sandy makes landfall. And Maryland Governor Martin O`Malley updates on the
impact of the storm on his state.

Later, Mitt Romney continues to push the Jeep outsourcing lie and he
does it with a new ad. Now, the Obama campaign is responding. Former
governor from Ohio, Ted Strickland, will join me for the conversation.

Share your thoughts with us on Facebook and on Twitter using the
#EdShow.

We`re coming right back.

(COMMERCIAL BREAK)

SCHULTZ: And thanks for staying with us as we continue our live
coverage of Sandy. The eye of the storm is just making its way on to land
near Atlantic City, New Jersey. We`re expecting high tide about 8:20
tonight, which is about four minutes away.

We`re getting word of New York`s first storm-related fatality. It
was a 30-year-old man who was apparently trapped by a fallen tree in
Queens.

We`re also getting some amazing pictures showing some serious
flooding from Delaware to New Jersey.

Some of the streets of Atlantic City are covered in water. This
video was taken before Sandy made landfall. We know many of these streets
were closed ahead of the storm, but New Jersey Governor Chris Christie is
criticizing the mayor of Atlantic City for failing to get enough people to
evacuate.

(BEGIN VIDEO CLIP)

CHRISTIE: For whatever reason, Mayor Langford urged people to stay
in shelters in the city. Despite my admonition to evacuate, he gave them
comfort for some reason to stay. We now have a large number of people, we
can`t quantify at this point, that are in Atlantic City. And at this
juncture there`s no other way for us to go in and get them. They are going
to have to ride out the storm there.

I`m very disappointed in the fact that some decided to disregard my
instruction, in fact, my order. And I`m concerned it might lead to the
loss of life. I`m extraordinarily disappointed in elected officials who
decide to tell people to directly contravene an order from the governor.
That`s going to cost people significantly over the course of the next
number of hours unfortunately.

(END VIDEO CLIP)

SCHULTZ: Meanwhile, volunteer firefighters rescued a handful of
people trapped in the rising water in West Atlantic City earlier this
afternoon. So far, there are no reports of any loss of life on the Jersey
shore.

Some other pictures we wanted to show you tonight. This is an old
fishing pier in North Carolina. The storm did this damage hours before it
made landfall. The waves sliced out sections of the pier.

Coming up, high tide is happening right now in Ocean City, Maryland.
And they are expecting a 7-foot storm surge. We`re going to get an update
from Maryland Governor Martin O`Malley with us next.

Stay with us. We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. And our continuing coverage
of hurricane Sandy, and a development that we have been following here on
MSNBC here in New York.

Joining me is Rehema Ellis of NBC News on the scene of the crane
collapse, which is captured the attention of people all over the country,
wondering if that thing is going to fall. But you can see behind Rehema
that they have really blocked things off and taken every measure possible.

Rehema, what can you tell us at this hour?

REHEMA ELLIS, NBC NEWS CORRESPONDENT: I can tell you, Ed, that
everybody is a lot more nervous right now than they were earlier because
the winds have picked up and the crane has started to sway on and off. If
you look behind me, you can see the traffic light here, we have various
gusts and even the traffic light is going back and forth from the wind.

And who knows what the intensity is some 65-plus stories up above the
ground at this $1.5 billion luxury apartment building that`s under
construction. They have set off a collapse zone. No cars, no pedestrians
in this area. They have evacuated the apartment buildings, the commercial
buildings, even the hotel in the area. They had guests move to other
hotels as a precaution.

They are afraid if the wind sways this crane, it could snap off and
go crashing into one of the buildings. And we`ve have had some very strong
wind gusts over the last few minutes. That`s why this area really has been
cordoned off.

They`ve sent experts up until this building to try and see if there`s
any way that they could secure this dangling crane. No word yet on what
their thoughts are. Many people are thinking it`s just too dangerous to
try and attempt some kind of a measure like that right now. They might
have to wait until the storm passes -- Ed.

SCHULTZ: Rehema, the officials there have got to be concerned about
the velocity of the wind no matter how much that crane weighs, that wind is
very forceful. Have they said how far if it were to drop some 60 stories,
just how far or how many blocks this might go?

There`s a calculation here that has to be made. How wide-ranging is
the protective area?

ELLIS: Well, I hope it`s no farther than where we`re standing. We
are at 57th and Eighth Avenue. The apartment building is over on 57th
between Seventh and Sixth. And I hope they have calculated that this is
the safety zone.

One of the concerns, as you well so point out, Ed, is that when they
got the call about the crane collapsing around 2:00 in the afternoon, the
winds were 20 miles per hour, according to the National Weather Service,
with gusts up to 40 miles per hour then.

New York City`s mayor, Mayor Bloomberg, said they expect the winds to
gust upwards of 70, 80, 90 miles an hour. Who knows what will happen to
that crane up there if we get those kind of wind gusts.

SCHULTZ: And, Rehema, what`s the wind like right now? I mean, just
moments ago, the storm has hit landfall. And so this might be the most
intense time as far as the wind. What are you experiencing down there?

ELLIS: We have a lull in the wind. Moments before we went on air
with you, it was blowing pretty furiously and moving the traffic lights
around and blowing things here on the street. So there are ebbs and flows
to this kind of storm we`re having here. We have a wind gust and then it
dies down and then we get a gust of wind again.

Right now, it seems to be a lot calmer than it was just two or three
minutes ago, Ed.

SCHULTZ: Rehema, thanks so much. Rehema Ellis on the scene in
Manhattan.

Sandy has made landfall 60 miles north of Ocean City, Maryland,
around Atlantic City, New Jersey. The storm is now a post-tropical
cyclone. Ocean City, Maryland, is expecting a 7-foot storm surge at high
tide, which could be happening as we speak.

As of now, 60,000 people in the state of Maryland are without power.
High winds, coastal flooding, and heavy winds are expected to continue in
the state of Maryland until at least Tuesday night.

Governor Martin O`Malley has cancelled early voting in Maryland for
today and tomorrow. However, the state has scheduled a makeup day for
Friday.

Joining us now by phone is Governor Martin O`Malley of Maryland.
He`s currently at the emergency operations center in Reisterstown,
Maryland.

Governor, good to have you with us tonight. The storm has hit shore.
What are you hearing at this hour with your state?

GOV. MARTIN O`MALLEY (D), MARYLAND (via telephone): Well, we have
been in touch with Ocean City for the last several days. They seem to be
holding up fairly well. This as you reported high tide. So, this is their
dangerous time.

And those swells are real big. They are crashing over the boardwalk
there. They have already lost the fishing pier that used to extend into
the ocean.

So, they are getting a lot of damage. There will be a lot of water
in the basements of the shops all along the boardwalk. Hopefully, that
boardwalk will hold up and get us through the next couple of hours here.

SCHULTZ: Governor, have the people of your state done what you asked
them to do?

O`MALLEY: I think, by and large, they have. This has been a strange
day for us here, Ed. As a state, we`re called "America in Miniature".
Today, we`ve been America`s weather in miniature.

I mean, we had two foot of snow in Garrett County in the west. We
had the ocean current that you`re seeing on TV right now in the Atlantic.
And then in the bay, we`re very concerned about the unpredictable winds and
what that does to water levels and the surge of streams and creeks and the
coastal bay.

So it`s going to be a very challenging night for us. I can almost
hear the sound of trees cracking all around us. You know, it`s going to be
a rough night. But people have stayed indoors for the most part today.

SCHULTZ: Governor, you cancelled early voting in Maryland for today
and tomorrow. What impact is the storm going to have on this election in
your state? It`s a week from tomorrow, obviously. But people`s lives are
being displaced. Of course, there`s going to be power outages and people
dealing with their personal situation.

What`s it going to do with the election?

O`MALLEY: Well, we`re hoping to make up -- I mean, we know we can
make up at least one of those two days by adding Friday to it. And, Ed,
right now, we`re looking at whether we are keeping polls open longer or
just how we manage to get as many hours of early voting as we can.

I can tell you, in the two days before the storm, just like the rush
on the stores for bread and milk and toilet paper, we had huge lines of
people going out to vote early in this election. And so, we want to find a
way to restore those hours lost by this storm if there`s any possible way
we can.

You know, we have to turn around the voter rolls before Election Day
on Tuesday and do that deconfliction, but I think people are motivated to
vote and are anxious to get back to the early voting.

SCHULTZ: Governor, you`re coming to us from the emergency operation
center. Are you hearing any word of any fatalities or any word of people
being stranded? What is the situation?

O`MALLEY: You know, we`ve had one fatality so far that`s been
attributed to the storm. That was an automobile accident involving some
hydroplaning over high water in Montgomery County.

We had about 150 people that were stranded in Crisfield on the
eastern shore when the tidal surge of the bay came up and put about three
feet of water into the first floor of everybody`s home there in a small
community called Summers Cove. So, many of those individuals have been
evacuated. Some are sheltering through the night on the second floor
there.

We have had great cooperation, Ed, from our federal government from
the get go. It`s really a sign of the new, improved FEMA, that they all
arrived before the storm and before the disaster and not after it. It`s a
huge improvement that I think every governor, regardless of party,
recognizes.

SCHULTZ: Well, to back your statement up there, governor, is just the
fact that safety has been certainly provided. If you have one fatality on
a storm that`s absolutely massive and certainly unusual in its nature, I`d
say it was a pretty good day at the office.

The next big challenge is going to make sure to get people`s power
restored. And that is going to be a heavy lift, no question about it.

O`MALLEY: Right. And we still have a long night to get through, as
well. Let`s put a knock on wood on that, because we`ve got a long night to
get through. The power restoration will take days and days and days.

SCHULTZ: OK. Governor Martin O`Malley with us tonight here on THE ED
SHOW. Thanks so much. There`s a lot more coming up in the next half hour
of THE ED SHOW. Stay with us.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: A real mess ahead of us, worse than Irene.

(END VIDEO CLIP)

SCHULTZ: The worst is yet to come from Sandy and the campaigns have
been suspended. But the lies continue in Ohio.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Obama took GM and Chrysler into bankruptcy and
sold Chrysler to Italians who are going to build Jeeps in China.

(END VIDEO CLIP)

SCHULTZ: Former Governor Ted Strickland on Mitt Romney`s last
desperate gasp to fool the Buckeye State.

(COMMERCIAL BREAK)

SCHULTZ: Good to have you back with us. One of the effects of the
storm is that while most of the building has backup power, the studio I`m
broadcasting from here tonight does not. A brief power outage occurred
earlier in the broadcast, and you may have noticed it. If you see the
lights go out during this broadcast, don`t worry, I`ll move to another
studio.

But there`s pretty good fodder there. I`ve had some real close
friends in my lifetime tell me I broadcast in the dark. Now I can`t deny
it.

We`re looking at a live shot of the crane in Manhattan that has
partially collapsed. It`s 100 -- should I say, 1,004 feet above the
ground, that`s 80 stories. Now you calculus majors out there can figure
out, OK, we`re 1,000 feet above the ground, just how severe is the wind
right now? What`s the velocity of the wind? How much does that thing
weigh? So how many blocks will it actually move, if it all, when it starts
to fall.

The question is how are they going to get that done? Are they just
going to let it fall? Or when the wind stops and the storm is gone, are
they going to go up and try to engineer this thing for a retrieve? We`ll
stay on the story.

As we`ve been reporting, Sandy is now a post-tropical cyclone, but it
is no less dangerous. It made landfall earlier this hour on the coast of
Southern New Jersey. The slow moving storm has slammed cities along the
northeast corridor and is only now making landfall. Sandy picked up speed
this afternoon, hitting land hours before it was expected. The initial
storm combined with two other weather systems.

Mandatory evacuations have been issued in coastal regions. Flooding
and high winds are going to make it difficult for rescue teams to reach
those who did not leave the storm affected areas.

Joining us tonight with the latest on the storm, NBC meteorologist
Bill Karins. Bill, great to have you with us. You have been out and about
fighting this storm. Did you have trouble getting back to the studio
tonight? What was it like?

BILL KARINS, NBC NEWS METEOROLOGIST: Yes. I think I have some
colleagues that are down in Battery Park that are trapped right now and
probably can`t get out. I barely made it out of there in time. We were
taking different roads to get out. The water was coming in onto the
streets, from the FDR Drive, from the West Side Highway. And we had to go
through about two feet of water, where another car was stalled, just to get
here in time.

Lower Manhattan is getting it hard. I know all the power is out now
in Lower Manhattan, south of One World Trade. You want to talk about
cranes and howling winds, we could hear it. It was the eeriest sound all
day long, because the top of the building still not finished yet. And wind
-- probably about 100 mile per hour winds were blowing through the top of
One World Trade. We thought those cranes were going to go down.

It didn`t surprise me one bit that that big one did go down -- or is
hanging and dangling at 57th street. Just an amazing storm. It`s amazing
when you consider what time of year it is. Maybe if it was July or August
or early September, we would say OK, we know this could happen. But the
fact that it`s almost November and we`re dealing with a storm like this and
the millions of Americans that are going to go through the hardships of the
next week or two, it`s just incredible.

So let me just try to catch you up to where we are with this storm.
It`s already made history with the storm surge, the damage. It`s already
made history with the number of power outages that have occurred. I would
say that right now about 70 to 80 percent of the damage is already done.
We`re not completely done, but the worst of it is slowly passing by.

Now that it`s made landfall, the winds are continuing to gust very
impressive. Look at this wind at JFK Airport, 79-mile-per-hour wind gust.
That`s a hurricane wind gust there in New York City proper. That`s very
impressive and extremely rare. All way into the interior of New Jersey,
the winds are at 60 miles per hour.

It rained a lot, especially to the south. The winds are not as
strong, but there`s more leaves on the trees. The soil is wet. And those
trees are tumbling from Philadelphia southwards to D.C. to Wilmington. So
you couldn`t win with this storm.

Either you`re going to deal with the storm surge or the heavy wind, or
if you`re in West Virginia, you had to deal with the incredible snows. The
storm itself, it will always be known as Hurricane Sandy. I don`t care
that maybe it was extra tropical when it came on shore or not. This will
always go down as Hurricane Sandy. There will probably never, ever be
another Sandy before. This name will be retired when it`s done because of
the considerable damage and the billions of dollars that will have
accumulated by the time the insurance companies all add this up.

As far as the radar goes, the heaviest rains are down near Baltimore,
Washington, D.C. to Richmond. But the rain will slowly dwindle. It really
wasn`t a big rain storm. This was the storm surge and this was the wind.
And Ed, that`s what`s made this an historic event.

Our country, we didn`t need this. You know, with the economy trying
to get going again, you talk about this every night. We didn`t need more
people suffering like this. It`s going to be one or two weeks just to get
people going back to work and school in some cases.

SCHULTZ: Well, the big thing is restoring the power. We don`t know
how many people are going to be without power when this thing is all said
and done. It`s affecting some 15 states.

But this storm has changed considerably. I mean, this has really had
some different patterns throughout its entire coverage, hasn`t it?

KARINS: I mean, now we`re finally seeing the pictures of what
happened in Haiti. I think 50 some people died down there in the flooding.
And started down in Jamaica and went through the Bahamas and was pretty
devastating. They`re going to be replacing the beaches from Florida to
North Carolina, even though they were just brushed by the storm.

And then the storm, yes, it became this almost perfect storm. There`s
only one perfect storm and they had the movie about it and everything else.
This will have its own entity and its own spot in history. But just such a
rare event, Ed.

I mean, I had another meteorologist telling me there will be kids
writing masters thesis about this in many years to come.

SCHULTZ: Well, the path of the storm was something unlike anything we
have ever seen. The characteristics with the snow and the tropical winds
and what not that all played into it. But what is tomorrow going to be
like? You said that 70 to 80 percent of the damage is done. What is
tomorrow going to be like?

and about the storm surge that we were expecting on Lower Manhattan?
Did it ever get to 11 feet?

KARINS: When I left, it was definitely somewhere close to 10 to 10.5
feet. The record ever was Donna, going back to 1960. I think it was 10.6
feet.

SCHULTZ: !962, I believe.

KARINS: Yes, it was -- so we were in uncharted territory down there.
I wouldn`t doubt -- I walked the streets. I saw all the gutters where
usually the storm drains go down. The water wasn`t going down anymore. So
that water was filling up the sewer systems. And you know if it was doing
that, it was most likely getting into the subway systems too.

That`s the salt water and it`s electrical. That`s probably why Con Ed
shut down all the power in Lower Manhattan. They knew that that water was
rushing underground and getting into the vital infrastructure, almost like
if you have a leak in your bathroom, they tell you to turn the power off on
your circuit breaker before it blows everything up.

So yes, it`s going to be a messy clean up. Tomorrow, as I said, still
damage to be done -- tomorrow is not even a day for clean up. Winds still
gusting to 50 miles per hour. We`re going to have some storm surge early
in the morning in the high tide cycle, southern New England. It won`t be
until probably to Halloween on Wednesday that people even -- even begin to
get the power on.

You know how they do it. They will get the important hospitals and
stuff up first.

SCHULTZ: Sure. Bill Karins, great to have you with us tonight.
Thank you so much, always.

Coming up, we`ll have the latest from Lower Manhattan. NBC`s Michelle
Franzen -- you are looking live at 57th Street in Manhattan, where 1,000
feet above the ground, 80 floors up, is a crane that tipped over. It`s
just swinging in the wind. And they have evacuated the businesses and
apartments and buildings in that nearby area.

And police officials and rescue officials are just waiting for that
crane to come down. And officials have been told that they are not allowed
to go up and try to retrieve it. There`s a storm going on. No doubt. So
we`ll keep you up to date on how that`s all going to unfold. Stay tuned.
You`re watching THE ED SHOW on MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Back on our live coverage here on MSNBC, a live shot of the
crane on 57th Street in Manhattan. Thank thanks for staying with us as we
continue our coverage of this powerful storm, which has come ashore. Now
if you live in New York City, I want you to pay attention to what I`m
saying. New York City is experiencing 911 overload. That means a lot of
calls are coming into 911.

So the city is asking us to ask you to call 311 for non-emergencies
like downed trees or other minor issues or information that you might need
or, should I say, information that you`re trying to give to get help from
authorities. So it`s 311 for like downed trees and other minor issues.

But we are having a 911 overload here in the city tonight. We`re
keeping an eye on the storm surge. Lower Manhattan is on high alert.
Let`s check in with NBC`s Michelle Franzen, who is live in Battery Park.
Michelle, what`s happening down there?

MICHELLE FRANZEN, NBC NEWS CORRESPONDENT: Ed, we have also got a
water overload going on down here in Battery Park. You can see these waves
that are coming through. This is the esplanade, the walkway usually that
people are running on ad join at the southern tip of Manhattan. The water
has been just lapping and pouring over here.

You have got several feet of water. The storm surge was supposed to
be anywhere between six and 12 feet. We have already heard the Battery,
which is just a short way away from us -- we`re Battery Park City --
already set a record, 11.87 feet. That broke a record set back in 1821.

So we are just getting into this storm here with Sandy on the back
end. We have a long way to go to see how much water comes in. The power
company has already started to shut down some of that power in sections of
Lower Manhattan. And that is to help once the storm passes to get
everybody back up and running again.

But Battery Park, of course, home to the financial district. You have
a residential area mixed in. You`ve got the World Trade Center site. All
of that pretty much shut down tonight. Evacuation area here, as well as
other low lying areas in New York.

More than 300,000 -- 75,000 people have been asked to e relocate. The
shelters aren`t reflecting those numbers. People could be staying in and
hunkering down or they could have moved on with friends. We don`t know the
exact numbers yet.

But what we do know in this last hour, with these wind gusts coming
in, and they are a lot stronger, we have had the mayor come forward asking
people to stay in. Do not go outside, because this is the most dangerous
time, of course with the downed trees.

So we`re also taking precautions here. We have been moving up every
time this water comes a little bit forward. And we`re keeping a watch out
here too.

SCHULTZ: Michelle, what can you tell us about the subway system?

FRANZEN: The subway systems, of course, were shut down in preparation
of this storm. What we don`t know yet is how this water may affect it. Of
course, there are some areas down here where some of the subway systems
have -- you know, some of their areas end here. So we are going to be
keeping a watch on that.

What they don`t want to happen is that water to get in there, of
course. That mixture of sea water does not mix well with, of course, the
electronics and everything down there. So they will be keeping an eye on
that.

They also shut down, of course, the tunnels that were prone to
flooding, both the Battery Tunnel and the Holland Tunnel. And the bridges
tonight. The Varizona (ph) Narrows as well as the George Washington bridge
shut down. So those last links to Manhattan -- obviously everyone now
truly isolated here on this island of Manhattan and in the surrounding
Burroughs, just waiting for Sandy to pass through.

SCHULTZ: Michelle Franzen, thanks so much from Battery Park in Lower
Manhattan tonight.

Next, Mitt Romney comes out with a real whopper on the automobile
industry. And former President Bill Clinton calls him out on it, right
along with everyone else. Governor Ted Strickland will join me next from
Ohio. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to THE ED SHOW. There was some campaign news
today. This time, the Romney campaign put out a lie so big, the media
almost universally called it out. A Romney ad running in Ohio say this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Obama took GM and Chrysler into bankruptcy and
sold Chrysler to Italians who are going to build Jeeps in China.

(END VIDEO CLIP)

SCHULTZ: The ad doubles down on a lie Romney said himself on the
stump last week. Chrysler, which still manufactures Jeep, also responded.
"Jeep has no intention of shifting production of its Jeep models out of
North America to China."

Former President Bill Clinton is also on the case. Here`s the former
president in Youngstown, Ohio, today.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: It turns out
that Jeep is reopening in China because they have made so much money here,
they can afford to do it. And they are going on with their plans here.
They put out a statement today saying it was the biggest load of bull in
the world that they would ever consider shutting down their American
operations. They are roaring in America.

(END VIDEO CLIP)

SCHULTZ: President Obama also relayed a personal message through
President Clinton.

(BEGIN VIDEO CLIP)

CLINTON: This morning, before he left Florida and went back to
Washington, he said, you know, of all the things Governor Romney has said,
that probably hurts my feelings the most. He said, you know, I never had
any money when I was a kid. And the first new car I ever owned, I was 30
years old. And it was a Jeep. I would never move Jeep to China.

(END VIDEO CLIP)

SCHULTZ: This didn`t stop the Romney campaign from putting out
surrogates defending the ad. Here`s Congressman Jason Shaffetz of Utah.

(BEGIN VIDEO CLIP)

REP. JASON CHAFFETZ (R), UTAH: It`s 100 percent correct. The Romney
campaign stands behind it.

(END VIDEO CLIP)

SCHULTZ: You`re going to regret that. In his own ad, the Obama
campaign calling the Romney ad a lie.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: After Romney`s false claim of Jeep outsourcing to
China, Chrysler itself has refuted Romney`s lie.

(END VIDEO CLIP)

SCHULTZ: I`m joined tonight by former Ohio Governor Ted Strickland,
who is an Obama 2012 campaign co-chair. Governor, I guess you could say
your boots better be on pretty high tonight, not just from the storm, but
because of some of the stuff that`s being thrown around by the Romney
campaign. This latest ad was a whopper. Wasn`t it?

TED STRICKLAND, FORMER GOVERNOR OF OHIO: A whopper, a whopper. But
Ed, this ad says something very serious about the Romney campaign. They
are desperate and they are desperate because the people of Ohio have
concluded that you cannot believe much of anything this man says. And he
is being deceitful and deceptive in this ad. It`s going to backfire on
him.

The people of Ohio knew who saved the auto industry and who saved Ohio
jobs. So a sign of desperation from a candidate that, quite frankly, just
can`t get traction in Ohio because we figured this guy out, Ed. And we`ve
concluded we can`t trust him.

SCHULTZ: Mitt Romney has become the candidate that you can`t fact
check. Mitt Romney has been the candidate that you can`t call out on
anything. The media responded. So did Chrysler. And the Ohio UAW
director called it the lowest form of political tactic. I mean, do you
think the Romney campaign expected this kind of backlash?

STRICKLAND: Listen, they ought to know by now that the people of Ohio
are common sense people. And we`re not going to be bamboozled by this kind
of political garbage. This ad, I think, may be the straw that actually
breaks the camel`s back and seals Romney`s fate in Ohio. When Ohioans find
out what he has done, what he is doing in the face of the truth, I think
they are going to rebel against this guy. And I think the president is
going to win Ohio. I thought he may win Ohio by a point or two. It might
be by considerably more than that after this ad.

SCHULTZ: Here`s President Clinton talking about Romney`s position on
the auto industry loan. Here it is.

(BEGIN VIDEO CLIP)

CLINTON: I tell you, I`ve heard Governor Romney`s explanation for why
he opposed that thing. He ties himself in more knots than a Boy Scout does
in a knot tying contest.

(APPLAUSE)

SCHULTZ: OK, he ties himself in knots, but have the folks in Ohio
figured that out? Has he really done more damage to his campaign?

STRICKLAND: Ed, I think he has. But I think the folks in Ohio
started to figure this guy out when they first heard about the Swiss bank
account and the fact that he wouldn`t release his own income tax returns.
Then we saw him in that video talking about us in those disparaging, really
disrespectful ways.

This is just, you know, the final straw that I think is going to break
the camel`s back in terms of the Romney campaign in Ohio.

(CROSS TALK)

SCHULTZ: I got to ask you before we get out of here tonight. The
hurricane is a big story. Sandy, the storm Sandy -- how is this, in any
way, in your opinion, going to affect voting in Ohio, quickly?

STRICKLAND: Well, I think early voting is going forward. I think it
will continue to do that. The weather is bad here. The wind is blowing.
It`s rainy. We may get some snow.

But I think our people are fired up. And this may just be one more
challenge, but we`ll overcome that challenge and get the people out.

SCHULTZ: Former Ohio Governor Ted Strickland with us tonight on THE
ED SHOW. Thanks so much. That is THE ED SHOW.

And right now, you are looking live at the 57th Street camera on the
crane 1,000 feet above the ground. It`s called I guess Crane Cam. We will
now turn Crane Cam over to Rachel Maddow as "THE RACHEL MADDOW SHOW" starts
right now. Good evening, Rachel.

RACHEL MADDOW, MSNBC ANCHOR: Good evening, Ed. We`ll keep good
custody of the crane cam tonight.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.
END

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