This is a rush transcript from "Hannity," May 10, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: The controversy over the Arizona immigration law isn't going to go anywhere, and the president of the United States seems to be, well, just about the only person who is not taking it seriously; he joked about it at the White House Correspondents Dinner.

And now Arizona governor Jan Brewer is sending him a message. Take a look at this new ad.

(BEGIN VIDEO CLIP)

GRAPHICS: In December 2008, the U.S. Justice Department said that Mexican gangs are the "biggest organized crime threat to the United States."

In 2009, Phoenix had 316 kidnapping cases, turning the city into our nation's kidnapping capital.

Almost all of the persons kidnapped were illegal immigrants or linked to the drug trade.

Narcotics prosecutions in Arizona have risen 202 percent in 16 months.

1,080 prosecutions will STILL be refused this year in the Tucson Sector alone.

What does President Obama have to say about Arizona doing the job Washington won't?

PRESIDENT BARACK OBAMA: And we all know what happens in Arizona when you don't have ID. Adios amigos!

GRAPHICS: President Obama, broken borders are not a laughing matter.

(END OF VIDEO CLIP)

HANNITY: Now meanwhile other Democrats are also speaking out on the law. Here's what House Speaker Nancy Pelosi had to say.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI, D-CALIF., SPEAKER OF THE HOUSE: I mean, as a practical matter we can't say to people 12 million of you go back to wherever you came from or go to jail. We can't do that.

(END OF VIDEO CLIP)

HANNITY: And joining me now with reaction and analysis is former New York City Mayor Rudy Giuliani.

Mr. Mayor, good to see you.

RUDY GIULIANI, FORMER NYC MAYOR: Sean, how are you?

HANNITY: First of all, your reaction — I know you were watching a little bit of the focus group.

GIULIANI: Right.

HANNITY: Your reaction to that and your reaction to the ad in general.

GIULIANI: You know, it made me feel very bad because this shouldn't be. If the federal government were doing its job these people that Frank Luntz is interviewing would not be fighting with each other.

HANNITY: Yes, it's true.

GIULIANI: This is not Arizona's responsibility, it's not New York's, this is squarely the federal government's responsibility. Why they will not control our borders is mind-boggling.

I mean the reality is, we just need the political will to do it. It is a 2,000 mile border. Really.

HANNITY: It isn't that big.

GIULIANI: Yes. If you took about 20,000 Border Patrol agents and you put them in substations about every 50 miles, you'd be able to cover the border. Maybe even every 25 miles, you only need 80 of them.

And then you'd use photographic equipment, nighttime photography, heat seeking equipment, motion detection equipment. You can alert people at the stations. They'd go there and stop people from coming in.

HANNITY: It's that easy. It really is that —

GIULIANI: It's a matter of political —

HANNITY: Will.

GIULIANI: — will. When I was running for president, I said that it would be easier to control illegal immigration than it was to reduce homicide in New York by 50 percent.

HANNITY: Alright. Now you were a prosecutor for how many years?

GIULIANI: Most of my life.

(LAUGHTER)

HANNITY: If you have a legal background — I actually took the time and read the law. Racial profiling is specifically prohibited in this law. But the president went out there and said, you're going to take your kid and you're going to go to an ice cream shop and they're going to be asking you where your papers are.

It's inaccurate.

GIULIANI: The president of the United States should have said about this law, I'm sorry Arizona had to do this because we didn't do our job.

HANNITY: Yes.

GIULIANI: And we're going to make it unnecessary for Arizona to have to do this by doing our job. This is a core federal responsibility to protect our borders.

It isn't just about illegal immigrants. It's about weapons coming in. It's about terrorists coming in. It's about drug dealers coming in. A border that can be crossed by thousands and thousands of people can be crossed by two or three terrorist, 20 or 30 drug dealers. So this is something that just shouldn't be.

HANNITY: You see, I don't even think we should be debating what Nancy Pelosi said. What are you going to do with the 12 million people? And preachers ought to be preaching from the pulpit. We ought to be controlling the border first.

GIULIANI: This is my feeling even about when the Bush administration did the comprehensive —

HANNITY: Yes.

GIULIANI: — reform. I said before you can do that comprehensive reform, you got to get control of the borders. If — if somehow over the next two to three years you could stop illegal immigration, all the issues with the 12 million people would disappear. All that anger you saw tonight would disappear.

What would happen is, you'd look at the 12 million and you'd say let's focus on the bad ones, let's throw them out. Let's focus on the good ones and figure out what to do with them. Something that's sensible. Something that has them pay back for what they did wrong but something that allows them to be productive.

HANNITY: You said something to me off air and I don't know if I have the permission to say it, but hopefully I do. By the way, I see you got an iPad and an iPhone, by the way which is —

GIULIANI: And a Kindle.

HANNITY: And a Kindle.

GIULIANI: I brought all my stuff because I don't want the American people — the young people to think you shouldn't use this stuff after what the president said.

HANNITY: Yes, I —

GIULIANI: I can't — the president — this is one of our advancements. Of course there are bad things that can happen. But every new thing had — when they developed the printing press some really bad things could happen with the printing press.

I read more books now on my Kindle. I get Yankee games live on my iPad and iPhone. I have —

HANNITY: Life is good, Mr. Mayor.

GIULIANI: I have 26,000 songs on my two iPods. They're mostly operas but you know.

HANNITY: You listen to opera?

GIULIANI: This is fabulous.

HANNITY: You're a big opera person?

GIULIANI: Yes. And I have your book in my Kindle.

HANNITY: See? Alight. That's alright. That's worth it.

GIULIANI: I got Karl Rove's book in my Kindle. I even have President Obama's book on my Kindle.

(CROSSTALK)

HANNITY: And your iPad, which I just bought one —

GIULIANI: And you can read —

HANNITY: You can turn the pages like it's a real book.

GIULIANI: My —

HANNITY: I love it.

GIULIANI: My Kindle is synced to my iPad. If I finish a page here, it goes here, back and forth. Unbelievable.

HANNITY: Alright. Let me ask you. But what you said to me was on issues involving the economy, we saw what happened in Times Square, you were the mayor of New York, you were here during 9/11. That you've really never seen things deteriorate this bad.

GIULIANI: I've never been as worried for the country as I am now.

HANNITY: Explain that. This is —

GIULIANI: I see us moving in the direction of European social democracy. I see our economy is — and actually moving in that direction. Taking over banks, taking over financial — taking over automobile companies, wanting to take over health care and wanting to minutely regulate energy right down to, you know, how much carbon you can emit from your building.

That all will be done in Washington by 20,000 new employees to add to the 16,000 new IRS agents. Then I see him adopting European social Democratic theories about foreign policy. This unwillingness to identify our enemy as Islamic extremists, terrorism.

This sort of wishful desire whenever these things happen to sort of say, oh gee it was a one off. It was some kind of right-wing this, right wing that. The reality is, I think this seeps into our bureaucracy. And that's why we get political correctness coming out ahead of protecting the American people.

That's what happened with Fort Hood. You look at the history of Shahzad and you say to yourself, how could a guy that went back and forth to Pakistan as many times as he did, bring in over $80,000 in cash? How could he not get flagged and watched, carefully? Was it because people are afraid of being accused of being bigoted, of focusing on people, as opposed to just using rational, good common sense which is what would lead you to look at a guy like Shahzad or not to promote someone like Major Hasan.

HANNITY: It makes sense. Mr. Mayor, good to see you.

GIULIANI: Thank you.

HANNITY: Appreciate you being with us.

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