• This is a rush transcript from "The Journal Editorial Report," April 5, 2008.

    STUART VARNEY, FOX GUEST HOST: Up next on the "Journal Editorial Report," Bill's blowup and Hillary's "He can't win." — the latest salvos in the Democrats civil war.

    Hold on to your wallets. The Congress is back in session and hungry for a housing bail out. We will tell you what they are planning and how much it will cost you.

    A year after the massacre at Virginia Tech, are college campuses safer?

    Plus, you our weekly "Hits and Misses," but first the headlines.

    (FOX NEWS BREAK)

    VARNEY: Welcome to the "Journal Editorial Report." I'm Stuart Varney, in for Paul Gigot.

    It was a rough week in the bruising battle for the Democratic nomination with reports Bill Clinton blew up at a superdelegate over Bill Richardson's recent endorsement of Barack Obama. The Clintons have been lobbying hard for Richardson's support, with Hillary reportedly telling the New Mexico governor that Obama can't win.

    Joining the panel this week, Wall Street Journal columnist Dan Henninger, columnist John Fund and, in Washington, columnist Kim Strassel.

    First to you, John. Was Hillary playing the race card when she said he can't win, meaning that he can't win because he can't shake Jeremiah Wright?

    JOHN FUND, COLUMNIST: I think everybody is claiming the race card is being played all the time. Barack Obama tried to transcend race and talked about a post-partisan environment but the reality is, the more we get into the Jeremiah Wright controversy, the more is about race.

    So I think it is inextricably tied up with his candidacy and it is incumbent on Mrs. Clinton to be careful how she handled it, but also Mr. Obama in answering the Jeremiah Wright.

    DAN HENNINGER, COLUMNIST AND DEPUTY EDITOR: Stuart, there is tremendous irony in telling somebody Obama can't win because, the fact is, her problem has always been electability. I mean, if you go way back to last year before the primaries even began, I can recall talking to lots of Democrats and, by in large, Democratic women, who would say they had real problems with Hillary Clinton. And I think that manifested itself in Iowa and New Hampshire.

    There was a reason why she lost those elections to Obama. And it wasn't simply because he was a new face. She has her own electability problems.

    FUND: She has more baggage than a cargo ship and everybody knows it.

    KIM STRASSEL, WASHINGTON COLUMNIST: The reality is, if keeping on, they will both have an electability problem. There are polls out this week. It explains why you have Democratic Party leaders worrying that this is going on so long. Polls, a couple of them, show the unfavorability ratings among Americans of both Hillary and Barack Obama are creeping up, and moreover, more concerning the number of Hillary and Barack supporters saying, if my candidate doesn't win this nomination, I am going to vote for John McCain.

    VARNEY: Let's look at the party over all, the Democrat party as a whole. Following this fight between Obama and Hillary, can the Democrats any longer keep the enthusiastic support, Dan, of Hispanics, African- Americans, women, white collar union members? Can they keep them all enthusiastically in that big tent?

    HENNINGER: Well, I think by in large they can. but there is one group I believe they will have problems with and that's the so-called Reagan Democrats, blue collar types and such. You know, the more that Hillary and Obama run, the more they have to get out there and convey to people their agenda. Their agenda is actually quite traditional and liberal. There is nothing really new in it despite Obama's personal newness.

    When you go into a place like Pennsylvania and expose that to deer hunt — white deer hunting blue collar workers, it gives them reason to say, you know, the Democrats are still not quite me. And those guys always looking for a reason to bolt to the other side. And John McCain will give them that.

    FUND: Stuart, there has to be a reason why 85 percent of the country, on the one hand, thinks we are going the wrong direction, the highest in modern history. At the same time, John McCain leads both Clinton and Obama in the head-to-head presidential race. That is because the Democratic Party has not shaken its liberalism. The public generally perceives them, whether on foreign policy or domestic policy, to be left of center of the country. John McCain appeals to Independents.