This is a rush transcript from "Hannity," November 3, 2009. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: We turn now once again to Karl Rove.

This was an interesting race inasmuch as conservatives like myself, I couldn't find a single thing where Dede Scozzafava supported a conservative position but yet the Republican Party in New York supported her. And there was a rebellion and then she even goes up — goes on and supports the Democrat.

What did you make of that?

KARL ROVE, FORMER BUSH ADVISER: Well, it's an interesting race but I hear the key point here is that she realized that she was running third that the grassroots support in the district did not back up the choice of the 11 Republican county chairman empowered by state law to pick her. And I have to tip my hat to her. Rather than come in third in the race she withdrew. I just wish she'd kept with the sentiments she expressed that day when she withdrew and said she would always remain a loyal Republican and then 48 hours later battered about by the speaker of the New York general assembly she endorsed the Democrat.

Video: Watch Sean's interview

HANNITY: All right. So Robert Gibbs is out there saying that this is not a referendum on Barack Obama. The Democrats are claiming this in no way that this race indicates the nation's support for Barack Obama slipping. Do you buy that?

ROVE: No, especially since there are prominent Democrat said just the opposite. President Bill Clinton said this was a referendum on President Obama and his policies. For once I agree with Bill Clinton, it is.

HANNITY: Well, you almost said that in Bill Clinton's voice.

ROVE: I'm Bill Clinton. This is going to be a referendum on President Obama and his policies and I've got to agree with President Clinton on that.

HANNITY: All right, I think do a better one but we're going to scare our audience.

ROVE: We'll just do Bill Clinton the rest of the evening.

HANNITY: All right. Let me ask you. The vote in the House on health care may take place on Friday.

ROVE: And look, I'm going to write my column about this for Thursday for the Wall Street Journal. If you are a blue state Democrat you have to be scared to death by what is happening tonight in Virginia. And I suspect that what's going to happen tonight in 23. If 23 goes to the Republican column with a candidate who 30 days ago was virtually unknown, that's going got to scare the heck out of a blue state Democrat — excuse me, a red state Democrat because there's only one reason, they are reacting to President Obama's policies in the 23rd.

HANNITY: All right, so if it was a trifecta, if Christie wins in New Jersey — so if we examined congressional Democrats, there is somewhat 80 of them that...

ROVE: Eighty-three.

HANNITY: Eighty-three that are in districts that either supported Bush in '04 or John McCain in the last election.

ROVE: And 48 that are in districts that were won all three of the last presidential elections by Republican presidential candidate.

HANNITY: OK, so they're watching the results tonight. And if it comes in — even if Christie and Corzine are extremely close one way or the other and the 23rd goes to the Republicans and obviously it was a rout in Virginia, what will that mean for this vote on health care?

ROVE: It ought to scare them because, look, here is the concept. The concept of swing. Barack Obama got 52 percent of the vote in Virginia. And the Democrat tonight is getting 38 percent. In New Jersey, Barack Obama got 57 percent. Tonight, you know, even if he potentially pulls it out it's going to be a 44, 45 percent victory for Corzine.

HANNITY: Yes.

ROVE: And I think he is going to lose. And in New York 23, he got 52 percent of the vote. And I bet you tonight the Republican wins with a significant margin.

HANNITY: Isn't it kind of absurd if Barack Obama spent his entire weekend in New Jersey campaigning for Corzine if he campaigned for Creigh Deeds in Virginia. Joe Biden is up there in the 23rd graced with 200 people — I'm sorry, 150 people showing up.

ROVE: You know, I — we need to have an emergency health care program to give those 150 people that showed up and at endured Joe Biden rally some special counseling and help.

I mean they put it extraordinary — the White House put an extraordinary amount of effort into this race. They did fundraiser — President Obama did a fundraidser for Bill Owens in the 23rd.

HANNITY: What has happened in a year? Because a year ago people were pronouncing, you know, conservatism is dead. What happened in a year? Is it the economy? Is it the takeover of GM, the banks, the financial institutions? What is it?

ROVE: Yes.

HANNITY: All of that?

ROVE: All of that. And over in all people who voted for Barack Obama believing that he was close to the center and he has governed far to the left. And the difference between what they were led to believe and what they're now seeing in the performance in office has really created a problem for him. You know he ran against deficits to spending, saying he wouldn't raise taxes, you know, and said is government-run health care is extreme. And now he's on the —

HANNITY: And there's no indication that he'll be like Bill Clinton and as much as, you know, put aside his ideology and that he would be more pragmatic.

ROVE: No. Look, they're going to find some way to write this all off and continue with ideological blunders, you know, the left — the far-left edge of the highway, the political highway in America and it's going to come home to roost in a big way in 2010.

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