• This is a rush transcript from "The Journal Editorial Report," February 13, 2010. This copy may not be in its final form and may be updated.

    STUART VARNEY, FOX GUEST HOST: This week on the "Journal Editorial Report," Sarah Palin's prospects, fresh from the tea party performance. Some say she doesn't have with and it takes to be president, but do liberals mock her at their own peril?

    And the big climate crackup. The cap-and-trade bill gets buried in the Washington. And the U.N.'s climate panel comes under fire for some faulty findings.

    Plus, the end game in Iran. What's next for that self-described nuclear state? An internal revolution? An Israeli attack?

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

    First up, Sarah Palin's prospects. Fresh from headlining the first ever national tea party convention, Palin told "Fox News Sunday" host, Chris Wallace, last week, she isn't ruling out a run for the presidency in 2012.

    (BEGIN VIDEO CLIP)

    SARAH PALIN, FORMER VICE PRESIDENTIAL CANDIDATE & FORMER ALASKA GOVERNOR: I would. I would if I believed that that is the right thing to do for our country and for the Palin family, certainly, I would do so. I think that it would be absurd to not consider what it is that I can potentially do to help our country.

    (END VIDEO CLIP)

    VARNEY: This, despite a new poll showing her unfavorable ratings up and her qualifications for president being called into question.

    Joining the panel this week, Wall Street Journal columnist and deputy editor, Dan Henninger; columnist and deputy editor, Bret Stephens; and senior editorial page writers Joe Rago and Colin levy.

    All right, Dan, the poll suggests that we should count her out. Should we?

    DAN HENNINGER, COLUMNIST & DEPUTY EDITOR: I don't think so, Stuart. If you take the polls on the west coast or the eastern seaboard, there's a lot of negativity about Sarah Palin and a lot of disdain. But if you go out into the heartland of America, she does gather a lot of support. And if the heartland still matters to the Republican Party, I think instead of simply deriding her, they've got to sit and figure out what is her appeal out there in the middle of the country. And I think, by and large, it's that she represents opposition to the status quo. She's fighting the machine, whether it's the Democrat or the Republican. And it taps into what's going on with the tea party right now. We're in an environment that is just ripe for mavericks, third-party candidates like the tea party. And Sarah is beading into that feeling right now.

    VARNEY: Joe, you're probably the more negative on Sarah Palin running for the presidency. But you'd have to admit that she is the freshest and brightest new face in the Republican Party, wouldn't you?

    JOE RAGO, SENIOR EDITORIAL PAGE WRITER: Sure, but what does that say about the Republican Party?

    (LAUGHTER)

    VARNEY: OK.

    RAGO: If you look at the poll, President Obama's health care plan is slightly more popular than Sarah Palin. And I think the Republicans need to be rejuvenated and revived in it. And I'm not sure that Sarah Palin is exactly the person to do that.

    VARNEY: You're not sure? She's a fresh bold new face out there. She's got enormous buzz.

    RAGO: Right. But in terms of the political philosophy and intellectual ideas that they need to rebound, I'm not sure she has that.