Updated

This is a rush transcript from "Hannity," July 25, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: There are new revelations, shocking details emerging regarding Weinergate 2.0. Twenty three year old Sydney Leathers -- no, we did not make up the name -- one of disgraced ex-Congressman Anthony Weiner's online mistresses, has spoken out. In an interview in "Inside Edition," she had this to say. Take a look.

(BEGIN VIDEO CLIP, "INSIDE EDITION")

JIM MORET, "INSIDE EDITION": How many pictures would you say that Anthony Weiner sent to you?

SYDNEY LEATHERS, ONLINE MISTRESS OF ANTHONY WEINER: Just two.

MORET: And how would you describe these photos to someone who haven't seen them?

LEATHERS: Very explicit.

MORET: Very explicit.

LEATHERS: Very.

MORET: Similar to what we've seen before.

LEATHERS: Yes.

MORET: And you said that they went from texts to phone calls?

LEATHERS: Yes.

MORET: And what happened in these phone calls?

LEATHERS: We had phone sex.

MORET: I read one quote that suggested you thought he was a dirty old man.

LEATHERS: He actually said that about himself to me, he -- the exact wording was that he is an argumentative, perpetually horny middle-aged man. And at the time, I was look, oh no, you're not. But yes, he is.

MORET: And then he texted you, do me a solid, can you hard delete all our chats here?

LEATHERS: Yes, that was before April.

MORET: So, why did you think he wanted to do that and why?

LEATHERS: I mean, obviously I know he wanted me to erase any evidence of our conversations because that was around the time I knew that he was going to run for mayor, so.

MORET: And did you get the sentence that he perceived you and your relationship as a threat?

LEATHERS: Of course.

MORET: Did you get a sense that he was having second thoughts or getting cold feet?

LEATHERS: Not really, which is what strange about it. I feel like he suspected that this could happen, but he didn't do a lot to protect himself from it. He was making these campaign promises that he had totally changed and he was a better man now and he learned from his mistakes, and I am proof that that is not true.

(END VIDEO CLIP)

HANNITY: Here with reaction to the scandal and much more, former New York City Mayor Rudy Giuliani, how are you?

RUDY GIULIANI, FORMER NEW YORK CITY MAYOR: How are you?

HANNITY: You can't make up --

GIULIANI: No you can't.

HANNITY: Sydney Leathers, Carlos whatever his name --

GIULIANI: Danger.

HANNITY: Danger.

GIULIANI: You can't make it up. Any number of shocking parts were there. The most shocking is that after he left Congress, after he said he was going to stop this and then he goes and runs for mayor and he has been doing it all during that period of time?

HANNITY: What is he thinking?

GIULIANI: I have no idea. I never understood Anthony anyway when he was in city council or -- strange guy, I mean, he's really, really strange guy, obviously even more trouble than we originally thought. If he had done this once, put some time between then and now, straightened himself out, fine. But obviously he still has this compulsion or this problem and it's been ongoing.

HANNITY: You've been the mayor, and arguably you were the mayor during the most trying time in New York history. Can you have these impulse control issues and be mayor of New York City?

GIULIANI: I mean, I think he needs help. It's quite obvious that he is crying out for help and the best place to do that is privately, not, you know, running for office. The fact is, that -- I mean, I would oppose Anthony Weiner whether this happened or it didn't happen, I think Anthony was a terrible congressman. I mean, I can't even see what is on the other side of the ledger. I mean, on one side of the ledger, we have all this. You can think it's awful, you can think it's terrible, you can think it's part of his private life.

So now, let's look on the other side of the ledger, what legislation did he ever pass? What did he ever accomplish? Some of his Democratic colleagues will tell you that he was a pretty useless congressman. So, I don't know what the heck he is running on.

HANNITY: Charlie Rangel said something interesting, and I hope it's not true. He said it will not have any impact on New York Democratic voters, do you agree with that?

GIULIANI: No, I do not agree with that. I see a lot of New York Democrats wanted him to drop out of the race. In fact, you know, for you and me to say, he should drop out of the race, Republicans, conservatives, they could just laugh that off and say, it's partisan. But an awful lot of Democrats are saying he should drop out and it does not help the Democratic Party to have a candidate like that, I mean, it hurts, particularly with him and Spitzer at the same time running.

HANNITY: That's unbelievable.

GIULIANI: It creates a terrible image nationally. A couple of weeks ago, I testified before Congress right after Spitzer was suggesting he would run, I had Democratic members coming up saying to me, what is wrong with your city, how can both of these guys be running?

HANNITY: Well, it's interesting, because all of the candidates, the Democratic candidates are all talking about eliminating all the policies you put in place that lower the murder rate from well over 2,000 --

GIULIANI: Well, I mean, I think they are heading us right for Detroit. I mean, if you think about it, why is New York not Detroit? We were Detroit --

HANNITY: Do you think of New York could head to bankruptcy?

GIULIANI: I don't think it could get as bad as Detroit, because we have a lot more assets, you know, than Detroit has. But right now, we don't have agreements with any of the unions. I think they are two, three years old. The city is in difficult fiscal situations if those unions demand more than they should.

You need a mayor who can be independent of those unions and sit down and say, I'm sorry. My first union negotiation, I got a five-year contract and the first two years was zeros.

HANNITY: Yes, I remember.

GIULIANI: And I got tremendous grief for that, tremendous demonstrations and anger about it. I did not do it because I wanted to do it. I did it because I had to balance the budget and I got elected independent of those unions. I didn't have to go back to them and curry any kind of support from them.

HANNITY: Yes. You know, remember, President Obama, this was a big issue in the campaign, because you are talking about cities. Detroit is now bankrupt, largest city in America bankrupt.

GIULIANI: A complete absolute result of liberal Democratic policies.

HANNITY: Yes.

GIULIANI: -- which is what I turned around in New York City. One of the reasons I ran for mayor was, I saw a city that for 20 or 30 years was being governed by governing principals that were heading it for bankruptcy.

HANNITY: Let me show you what you and President Obama said about Detroit back on the campaign. I know you were out campaigning for Mitt Romney. Watch this.

(BEGIN VIDEO CLIPS)

PRESIDENT BARACK OBAMA, CLEVELAND, OHIO, JUNE 14, 2012: When my opponents and others were arguing that we should let Detroit go bankrupt, we made a bet on the American workers and the ingenuity of American companies, and today our auto industry is back on top of the world.

OBAMA, OCT. 13, 2012: We refuse to throw in the towel and do nothing. We refuse to let Detroit go bankrupt. I bet on American workers and American ingenuity, and three years later that bet is paying off in a big way.

(END VIDEO CLIPS)

HANNITY: They refused to let Detroit go bankrupt.

(LAUGHTER)

We are not getting, what, $50 billion back from the car companies, that is a gift and Detroit is bankrupt.

GIULIANI: Of course and what he did was he completely ruining the bond holders in order to favor the unions in theoretically saving the car companies. I mean, that was heck of a thing that he did.

But in any event, once again, this is another Obama campaign promise, Obama campaign pledge that turns out to be useless and phony. And the reality is, when you listen to his speech the other day, I mean, it's really sad. I mean, we are -- we are -- this is if he had not been president for the last five years, all of a sudden he is now announcing these policies.

Well, he's had these policies in effect for five years now, and we have got a Detroit that is bankrupt. We have got more people on food stamps than ever before in our history. We have more people in dependency. He is heading us right toward dependency.

HANNITY: Yes.

GIULIANI: And if we do not have an independent mayor of New York City, the fiscal situation for New York City could start approaching the fiscal situation in Detroit. It's a question of the policies that you support. If you cave in constantly to all the special interests, which is what New York City was doing for 30 years, you flirt with bankruptcy over the other year. If you stand up and you end up with sensible programs, you end up with sensible spending, you can save any of these cities.

HANNITY: You did.

GIULIANI: I certainly did. I took over a city with 10-and-a-half percent unemployment with a $2 billion deficit and within two or three years --

HANNITY: Twenty five hundred murders a year.

GIULIANI: Twenty five hundred murders a year. I left the city with 500 murders a year.

If you put sensible policies in effect, if you do not let the special interests dominate you, which everyone of these Democratic candidates would do. Because I'm supporting Joe Lhota, he was my deputy mayor and helped me do a lot of these things.

But, I mean, that is our only hope to have an independent mayor. We have had now 20 years of independent mayors, I was independent, Mike Bloomberg was independent. We made our decisions based on what was good for the city, not trying to curry favor with this particular unions or that particular special interest.

HANNITY: In your term, two terms as mayor, 600,000 people came off of welfare and went to work.

GIULIANI: That's right.

HANNITY: Six hundred thousand.

GIULIANI: And we created 500,000 new jobs and we pretty much slashed unemployment in half.

HANNITY: Unbelievable.

All right. Mr. Mayor, good to see you.

GIULIANI: Thank you.

HANNITY: I hope New York is listening and the rest of the country.

GIULIANI: I hope so too.

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