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The Five

Politics in 2015: A preview of what to expect

This is a rush transcript from "The Five," December 30, 2014. This copy may not be in its final form and may be updated.

ERIC BOLLING, CO-HOST: Hello, everyone. I'm Eric Bolling along with Kimberly Guilfoyle, Bob Beckel, Katie Pavlich and Jesse Watters. It's 5 o'clock in New York City and this is "The Five."

So as we head into 2015, we know Republicans will control both houses of Congress, we know President Obama will keep on using his prized and infamous pen and we know the race for the White House will likely, very likely in fact include a Clinton and a Bush. But there are a lot of political questions left to be answered in the coming year and we want to tackle several of those tonight beginning with Hillary Clinton and what we can expect from her if and when she announces her candidacy for 2016.

Will she be able to fight off any challenges within her own party, and will she be able to distance herself from her former boss, one of the most unpopular presidents in modern American history? She certainly didn't get off to a great start this year. It's almost impossible to tell a difference between the two. Listen.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you've got a business, you didn't build that, somebody else made that happen.

HILLARY CLINTON, FORMER SECRETARY OF STATE: Don't let anybody tell you that, you know, it's corporations and businesses that create jobs.

(END VIDEO CLIP)

BOLLING: And from a Clinton to a Bush. Well, let's start right there. You want to do this? Let's do this one. Kimberly, start it off right here. She's made a lot of blunders this year. Can she overcome that?

KIMBERLY GUILFOYLE, CO-HOST: She sure has. I mean, maybe by sheer force of the will of the last name and their fund-raising machine and through the strength and kind of caliber of her husband, right? I mean, you're kind of getting two for one there. That's really what her best asset is as far as people are considered when you look at her qualifications and her capability.

But she's a very polarizing figure. She certainly hasn't shown her best game in the past year and you really have to think about that. Is this an office that she's ready to hold at this point in her life? Or is it something that is going to prove to be too challenging from what we have seen in the missteps in the past. If that is any indication, then not ready for prime time.

BOLLING: Bob, ready for prime time? She had -- Hillary had a very tough 2014 from coming -- saying that they were broke when they left the -- there was just stumble after stumble after stumble.

BOB BECKEL, CO-HOST: Yeah. Well, I'll tell you, this is the problem is trying to be a frontrunner for three years. I mean, it's tough enough being a frontrunner for two months, let alone try to do it from the beginning.

GUILFOYLE: Yeah.

BECKEL: So and I think what she did here was to try to kind of cut it right down the middle. When you do that, you're bound to make mistakes.

Now, is she ready for it? Of course she's ready for it, more so than any Republican candidate they've got out there. But -- but -- having said that, it's going to -- she may have drawn a lucky break here and that is for two reasons. One, she won't get a candidate on the left in the primary. She needs one, it would be important for her to have that. So Bernie Sanders or somebody decides to get in --

BOLLING: We're hearing that a lot lately.

BECKEL: Yeah. Well, it would be a good thing to do. Yeah, sure, I mean, it's a good thing. Elizabeth Warren says she's not going to do it; Bernie Sanders said he may do it. Having somebody on the left of her, she'll crush them, but it will be a good thing, positions are better.

And the other thing is the economy is now starting to boom.

BOLLING: All right. Before I bring in a few of these guys, Bernie Sanders, Elizabeth Warren or Joe Biden, which would be the most formidable foe to Hillary?

BECKEL: Warren, but she's not going to run.

KATIE PAVLICH, CO-HOST: Joe Biden, of course.

JESSE WATTERS, CO-HOST: Yeah, yeah.

PAVLICH: Just for entertainment purposes, right? Hillary has a lot of problems, but I think one of her biggest issues is you look at the 2014 midterm elections, what did a lot of the candidates run on? An anti-Obama platform. When President Obama goes through these next two years not getting along with Republicans, that anti-Obama sentiment is still going to be there and Hillary Clinton is going to need to distance herself from that while at the same time trying to take Obama's far-left base.

Now, I don't know if she's going to be able to do that without coming off as very transparent. You saw the clip of her saying, well, you know, we don't want to say that businesses create jobs. She was kind of trying to echo Elizabeth Warren there.

GUILFOYLE: Yes.

PAVLICH: So it's going to be very hard for her to distance herself from Obama, which she has to do to get away from that 2014 landslide of Republican votes and to get, you know, into the far-left base.

But the other issue here is midterm elections are very different than presidential elections in the sense that low-information voters tend to turn out more for presidential elections. So she does have that going for her. And a lot of those low-information voters are going to be coming out of the women's lobby and groups like that.

So Hillary Clinton is still popular and she's going to be challenged on the left, hopefully, but I don't know if she's going to be really having that much of a problem.

BOLLING: Jesse, quick on a Hillary and I want to bring Jeb Bush to you afterwards.

WATTERS: Sure. I mean, Hillary racks up gaffes left and right, she's a political klutz. We've all seen the examples of it. She's going to really anger the blacks when she goes after the first black president when she's trying to differentiate herself from him and that's going to be a problem because she needs them to be fired up, but she also needs whites. She's going to have to have Bubba bail her out there, too.

And she tried once to differentiate herself with President Obama and she blew it. Remember, she was like, well, I don't think that not doing stupid stuff, that's not really a foreign policy. And then she got blowback on it. And then all of a sudden she apologized for it. So I don't think she's really deft enough to handle these thorny issues.

BOLLING: Let me do this. Let's go from a Clinton to a Bush. Next up, Jeb has surged to the top of a lot of new polls of possible GOP contenders in 2016, following an announcement he's actively exploring a bid. Will the former Florida governor keep any other Republicans from throwing their hats in? And that's a big if. Will Chris Christie jump in? Would he have to soften his tough image? And what about Rand Paul? He'd likely inherit his father's voting base, but that could be -- you know, that grassroots support, could he bring that grassroots support to the next level?

So there's a lot to chew on there: Jeb, Rand, Christie, Rubio. Your thoughts?

WATTERS: I think Jeb coming in basically pushes Romney out. So he's not coming in. So Christie and Jeb are going to fight for who the establishment candidate is. You know, Jeb has the money, he's got the machine, he's got the contacts, he's got the brand name, but he's soft on immigration and he's kind of a RINO according to the base.

Christie's got the swagger. You know, he's got a lot more charisma than Jeb. So he's going to have to show his donors that he can kind of keep his, you know, language together, not explode. And I think what he needs to do mostly is beat Jeb in the base, but he also needs to really turn his fire on Democrats and not attack his own Republican players because no one wants to see that.

So I think if those guys fight it out, though, you could have a conservative come up and then kind of watch those guys split the vote and then take fire.

BOLLING: Katie, let's bring in Rand Paul and Marco Rubio. They are two also that want to kind of compete with Chris Christie and Jeb Bush, although, look, you have Jeb Bush and you have everyone who's not Jeb Bush now.

PAVLICH: Right. You think it's way too early to decide what issues are going to be the ones that voters decide to pick a candidate on. Right now it's simply about name recognition, which is why Jeb Bush is at the top of the polling right now. Mitt Romney even is still polling at those higher levels, even though he's probably not going to run again, at least the conservative grassroots hopes that he doesn't. Chris Christie is polling high.

But there's a lot of candidates that have been talked about on the ground level that aren't coming up in these name-recognition polls like, you know, Scott Walker, Bobby Jindal. Marco Rubio hasn't really been showing up in these polls.

BOLLING: Pence.

PAVLICH: Mike Pence. I think Rand Paul has a lot more --

GUILFOYLE: Perry still wants to run.

PAVLICH: Rick Perry. I think Rand Paul has a lot more support than these early polls are giving him credit for.

BOLLING: So if we do this -- if we do this -- all right, you want to jump in here, Bob?

(CROSSTALK)

BECKEL: Yeah, I'm just trying to --

BOLLING: But when you think of establishment and non-establishment, that really is going to be an issue. And in every presidential race, just --

(CROSSTALK)

BECKEL: -- politics 101. Go ahead.

BOLLING: No, no. Are you disputing the fact there is going to be favorites among the establishment and favorites among the non- establishment, the farther --

BECKEL: I don't buy the establishment and the --

BOLLING: You don't buy it.

BECKEL: I don't. I think your base -- and as you consider your base as far-right conservatives is a very small percent, much smaller than the Democratic base in that sense, which means you don't have -- Jeb Bush can walk through that race. I've told you this for a year. He worries me more than anybody else for one specific reason: He can pull the Hispanic vote which they desperately need or a Republican can't win the country. And the other thing is he knocks Marco Rubio out of the race right away. All the money goes out of Florida. All the -- I mean, it's gone.

BOLLING: There's no doubt that Jeb Bush throwing his hat in the ring definitely puts a --

BECKEL: And the rest of these people are a joke.

BOLLING: But the problem is that Marco Rubio --

BECKEL: Scott Walker and --

GUILFOYLE: You know, no they're not, Bob. They enjoy a lot of support for good reasons because of their policies --

BECKEL: From who?

GUILFOYLE: -- fiscal and otherwise. From people who vote, Bob, and who are going to show up. The same people that showed up for the midterm election. And don't discount Rand Paul. He is going to be one of the early favorites, much like his father. He's got a lot of grassroots support. He's done very well, even with youths and amongst minorities and African Americans, reaching out to those communities.

BECKEL: He's the only one I don't discount.

GUILFOYLE: So let's see how this settles.

BECKEL: You put Scott Walker and ask many people who know Scott Walker is they think he's a (INAUDIBLE).

GUILFOYLE: Well, that's name recognition. But great campaigns can change that.

BOLLING: It is early. Right, right.

GUILFOYLE: It's early.

BOLLING: We have a long -- almost two years, Bob, so there's going to be a lot of people coming --

BECKEL: No, you have a lot less than that. You have exactly 12 months.

BOLLING: Guys, let's go around here very quickly, we want to move on to the next topic. A couple of names very quickly, just fast around the horn.

Mike Huckabee, runs or doesn't run? Anyone?

PAVLICH: Doesn't run.

WATTERS: I think runs, runs.

BOLLING: Runs? Doesn't run? Your thoughts?

GUILFOYLE: Runs.

BECKEL: He runs.

BOLLING: Ben Carson, runs or doesn't run?

PAVLICH: Runs.

GUILFOYLE: Runs.

WATTERS: I don't care.

BOLLING: Doesn't care.

GUILFOYLE: Love him.

BECKEL: I'd love him if he was my doctor.

BOLLING: Scott Walker we talked about. Bobby -- my doctor!

GUILFOYLE: He is a pediatrician. He's perfect for you, Bob.

(LAUGHTER)

BOLLING: Scott Walker, guys. Bob, this guy has won three different recall -- three different elections in a state that's very, very liberal.

PAVLICH: He's battle-tested.

BECKEL: Are you kidding me?

PAVLICH: Scott Walker is battle-tested to the core.

BECKEL: Battle-tested to the core.

PAVLICH: They've thrown every single thing at him and he's won --

BECKEL: This guy --

GUILFOYLE: He has.

PAVLICH: -- every single time.

BECKEL: A Wisconsin governor can win against Jeb Bush and the rest of this field? It's not going to happen.

PAVLICH: No, but, Bob, you have to look at the last presidential elections on the GOP side. You look at Mitt Romney who was a lot like Jeb Bush, John McCain, the reason they lost is because the grassroots support that is on the ground doing the work with voters isn't getting out the vote for them.

BECKEL: Yeah. But keep this in mind. The last three Republican nominees were all moderates and they win.

BOLLING: No, but you're trying to --

BECKEL: Once they get through Iowa --

BOLLING: No, no, not moderates.

BECKEL: -- they're done.

BOLLING: You're not saying moderates, you're saying it's more centrists, right?

BECKEL: Centrists, yes. Centrists if you want to call it that.

BOLLING: OK. So you're saying that Jeb Bush is the one who worries you the most. Who would be considered the clearly the most centrist of all the people we just talked about?

BECKEL: That's right. And Chris Christie worries me the least.

BOLLING: Why do you think Jeb Bush can win if John McCain can't win and Mitt Romney can't win?

BECKEL: Because Jeb Bush could win the Hispanic vote in Florida.

GUILFOYLE: In Florida.

BECKEL: Just that alone.

BOLLING: All right.

WATTERS: And then, Bob, I had one more thing. The last time that Scott Walker was in the forefront, all you Democrats were running across state lines scared to death of him. OK?

BECKEL: No, no, no.

WATTERS: So I think he is a threat.

GUILFOYLE: He'd make a great candidate for sure. Bob's focusing on general election, right? You would say -- he thinks that Jeb is the best candidate in a general election to go head-to-head against a Democrat.

BECKEL: I think he's the best in the primaries, too.

BOLLING: The problem is that same thing --

GUILFOYLE: He has a popular appeal.

BOLLING: -- that we've talked about a hundred times. Common Core will eat him alive. He has to figure that out fast.

All right, let's go to the next one: the pending war between President Obama and Republican-controlled Congress.

As we told you yesterday, the president is already threatening to use his veto pen.

(BEGIN AUDIO CLIP)

PRESIDENT BARACK OBAMA: I haven't used the veto pen very often since I've been in office. Now I suspect there are going to be some times where I've got to pull that pen out.

(END AUDIO CLIP)

BOLLING: So how should GOP leadership respond? Krauthammer says bring it on.

(BEGIN VIDEO CLIP)

CHARLES KRAUTHAMMER, COLUMNIST, "THE WASHINGTON POST": The Republicans ought to say bring it on, Mr. President. With Harry Reid gone and Mitch McConnell running the Senate, they are able to enact agenda, they have an agenda, and they should be willing to pass whatever they can and to dare the president to go ahead and to veto.

(END VIDEO CLIP)

BOLLING: Legislating might be the last thing on Speaker Boehner's mind, however. He's facing the resignation of Representative Michael Grimm; and also his third in charge, Steve Scalise, is embroiled in controversy over his past association with racist David Duke.

There are even reports today that he might lose his speakership or at least his speakership business (INAUDIBLE) going this time around.

Bob, Scalise and Grimm, Republicans in a bit of trouble right now. Is it time to maybe rethink the John Boehner speakership?

BECKEL: That's as locked a bet you can possibly have. He's going to be speaker. There's nobody interested in who these people are, nor do they care.

But secondly, let's keep this in mind. Already Obama has broken with his Democratic base and signed and agreed on a trade deal with the Republicans. He's got to get a couple of things done.

The other thing -- I know this is going to drive you all crazy -- but he has had the best last two months of the six years of a presidency ever. His numbers -- he's the first person to get his numbers to a positive from negative; he went up.

GUILFOYLE: Well, when they're that low --

BECKEL: And the other reason is -- no, no, wait, wait. The economy is booming. The economy is booming.

(CROSSTALK)

Five percent growth in the third quarter. You tell me the last time Republicans pulled that off.

WATTERS: Tell that to someone who doesn't have a job, Bob, to someone that's been out of work for a year.

BECKEL: Five-point-eight percent. That's --

WATTERS: Those are just numbers. They don't mean anything to the regular guy that's had trouble putting food on the table.

BECKEL: You should just get used to it. This economy is getting a lot better. The consumer is (AUDIO BREAK) --

BOLLING: Can we just point something out, Bob? No. Bill Clinton and Ronald Reagan all had their highest approval ratings as they left office.

BECKEL: Who did?

BOLLING: Clinton and Reagan both had an increase in approval ratings as they left.

BECKEL: Not the six years, what I said.

BOLLING: Also, they also had economies that were improving going into the last two years. So yes, the economy is improving. We'll give you -- I'll give you that. I will give you the economy is improving, but it's six years in already. I mean, every single recession seems to be --

BECKEL: All I'm saying is --

GUILFOYLE: But how could it not with all the stimulus and the money put towards it and the easing and every -- I mean, come on. You sure?

BECKEL: I thought you guys said that would not work.

GUILFOYLE: Show me something. Bob, I'm telling you, I think things should be better than they are right now. I don't know anybody that's going to disagree with that. I mean, if it's that low, how can it not get a little bit better? My God!

BOLLING: Are you confident with John Boehner leading the House and McConnell leading the Senate?

GUILFOYLE: Oh, you put me on the spot.

BOLLING: Well, I mean, they're establishment Republicans.

GUILFOYLE: Right. What I was hearing just last night from people in the know -- no, but there is a very strong movement that would like to see a new change in leadership for some of the very reasons that we are discussing here.

But then what Bob is saying is also true. Boehner is very entrenched in that position. He has a tremendous amount of experience in it and plus control and power over people's committee assignments, seats, et cetera. So they're not going to want to buck the big guy. He's the one who has the power over that.

So they can say, look, I'm sorry, I'd like to give you a vote for this other guy, but I don't want to lose my seat because I have to be responsible and for my constituents to be on it.

BOLLING: That was extremely well done politically speaking, both sides.

BECKEL: That's exactly -- she's exactly right. And they're both locks. They are locks.

BOLLING: I do want just one more. You happy with Boehner and McConnell as your leaders going forward?

PAVLICH: I'm OK with McConnell. I think that Boehner has made a lot of really bad decisions and a lot of really bad deals with the White House when the White House wasn't willing to reach back.

And there are plenty of other people who are qualified.

BOLLING: Are you surprised Boehner stood behind Scalise given what we know about Scalise now and his speaking to the David Duke group, whatever it was, the KKK?

WATTERS: I think if this guy was like a second or third-year guy, then he'd probably cut him loose. But he's the number-three guy in the House right now and he's not going to cut him loose just off something that far back.

BOLLING: Just because he's number three?

WATTERS: Well, I mean, listen, he's good friends with him. It does look bad not getting the media push that maybe you'd expect if there was a different news environment. So I think they're just going to try to wait and see.

BOLLING: All right.

PAVLICH: All right. That was interesting.

BOLLING: That was good. All right. We're going to leave it right there.

Next, can New York City's mayor heal a rift with his police force after turning his back on them? He tried today and Kimberly's going to tell you all about it coming up.

(COMMERCIAL BREAK)

GUILFOYLE: The head of New York's largest police union accused Bill de Blasio of having blood on his hands following the recent assassinations of two NYPD officers. Today the mayor met privately with Patrick Lynch and the heads of four other unions in an attempt to clear the air. But from the sounds of it, that didn't happen.

(BEGIN VIDEO CLIP)

PATRICK LYNCH, PRESIDENT, NYC PBA UNION: We came here today to have a discussion. Our main concern is the safety of our police officers of every rank on the streets of the city, and the safety of the citizens that we proudly serve on each and every street and each and every neighbor here today. There were a number of discussions, especially about the safety issues that our members face. There was no resolve. And our thought here today is that actions speak louder than words, and time will tell.

(END VIDEO CLIP)

GUILFOYLE: Well, a de Blasio spokesperson says the mayor and police commissioner remain committed to keeping crime in New York City at low levels and finding ways to bring police and the community closer together.

All right, let's see if that happens.

And boy, is New Year's Eve going to be a big test of this new community policing and see if they can find some accord? Because we already have word, Eric, that there are going to be protests and there's going to be a lot of activity in the city which is already at kind of, you know, a challenging time during the year.

BOLLING: K.G., Time's Square will have 1 million people. You guys are going to be there. They're going to have a million people in Time's Square. That's more than the populations of Delaware, South Dakota, North Dakota, Alaska, D.C., Vermont and Wyoming, and they've always kept it safe. It's fantastic what they've done.

Here's what's going on in New York City, though. It's all about respect. Police deserve and demand respect and they're not getting it from their mayor. They're probably not getting it from our White House as well with his relationship with Al Sharpton and what not.

And when the respect from them, from the elected officials, goes away, the people who have an issue also lose respect for the cops. When they lose respect for the cops, it's bad. It's bad for everyone. It's bad for cops, it's bad for citizens.

Police executions -- 15 executions of cops in 2014. Police murdered by gun, 50 last year, up 56 percent from the year before. People are respecting cops less and less and our officials aren't helping the situation at all.

GUILFOYLE: Well, in fact, they are antagonizing the situation --

BOLLING: Right, yeah.

GUILFOYLE: -- with inflammatory rhetoric and a lack of support or understanding of how the police work.

Jesse?

WATTERS: They are. And everyone's saying NYPD is racist. You know, if the NYPD was actually racist, when someone called 911 from a black community, they just wouldn't even go in. They'd sit there out on the perimeter and let them shoot each other.

And I don't understand because if there's some beef in Chinatown and the NYPD goes to Chinatown and busts some Chinese guy, roughs them up, I don't see all these Chinese guys, you know, out there on the streets protesting.

And the Ferguson protesters and these Eric Garner protesters that are saying, you know, "f" the police, this and that, you know, when their cars get jacked, who are they going to call?

PAVLICH: Right.

WATTERS: Maybe they should call Al Sharpton. Maybe Sharpton can help them out with that. Right?

PAVLICH: Yeah.

WATTERS: No. And Sharpton, if there's really a problem with police in New York, Sharpton should go uptown and tell these kids in high school go to the police academy when you graduate --

PAVLICH: Yeah.

WATTERS: -- go become a cop, do something positive. But instead, he's just lining his pockets and trying to get more famous.

GUILFOYLE: Right. The message is one that is, you know, be the change you want to see, make it happen, kiddies.

PAVLICH: Yeah. I mean, Al Sharpton has relied on police a lot in the cities to keep his events safe when he has his conferences.

GUILFOYLE: To keep him safe.

PAVLICH: To keep his rallies safe, to keep his marches safe that he has, even though the marchers are chanting "we want dead cops."

You know, the number of police killed in 2014 is up 24 percent versus 2013. Now, that number isn't necessarily higher than it's ever been. It was worse in the '70s, but it is getting higher and it is due to no help from the Justice Department and from the president of the United States.

And the reason why de Blasio is continuing to have so much trouble with the police is because Mayor de Blasio disrespected the police on a very personal level. It wasn't about him disagreeing with them on some policy issue or how they handled something. It was him saying I had to specifically train my biracial son because the NYPD, which is probably full of racists, is going to, you know, single him out more for scrutiny. I mean, that was when it got really personal and he has never apologized for that.

This is about who Bill de Blasio is. This isn't about a policy disagreement or how they handled --

GUILFOYLE: You're absolutely right. Bob, I want to get you to respond to this and I'm going to put this up on the screen because now you even have "The New York Times" calling out the protesters and the mayor. And it says, "With these acts of passive-aggressive contempt and self-pity, many New York police officers, led by their union, are squandering the department's credibility, defacing its reputation, shredding its hard- earned respect. They have taken the most grave and solemn of civic moments, a funeral of a fallen colleague, and hijacked it for their own petty look-at-us gesture."

So criticizing the police now. I don't know how much this is going to help, Bob.

BECKEL: Well, first of all, I don't know anybody, at least on my side, who's a serious person ever called New York City racist because, among other things, whites are a minority in the New York City police department.

But I think what he said, that one line, I've said this over and over again, it was the worst line he ever could have used.

But the fact that the New York City police union said he has blood on his hands is sophomoric, it's ridiculous, it's lousy and you ought to give up your union job.

And secondly, for police to turn their backs on a mayor like that is a silly, ridiculous thing to do.

BOLLING: All right. That's fine. But hold on, hold on. You just completely ignored what Kimberly asked you. She said "The New York Times" editorial board just called the cops passive-aggressive --

GUILFOYLE: Petty -- yeah.

BOLLING: -- contempt, self-petty, also said they're -- self-pity, sorry -- it said petty, look-at-us actions.

And this one we didn't talk about yet, "snarling sense of victimhood."

Bob, cops are being killed. They put their lives on the line. "The New York Times" editorial board --

BECKEL: Nobody --

BOLLING: -- to say that about New York, NYPD, amazing. You know what? "The New York Times" is on Time's Square.

PAVLICH: Time's Square.

WATTERS: Right.

BOLLING: Maybe they should -- maybe -- do you think these people that you wrote that about should be -- maybe they should turn their backs on Time's Square and the Time's Building.

BECKEL: That was remarkably aggressive, as bad as (INAUDIBLE) except for one word.

BOLLING: You make an apology for everyone. You've apologized for de Blasio, you apologized for "The New York Times."

BECKEL: Did you hear me apologize for de Blasio?

BOLLING: Yes, you just said --

BECKEL: I said he had a bad line, he never should have done it. And I won't agree with "The New York Times" except for this: It is a pity party.

WATTERS: No, no. You also said it was --

GUILFOYLE: Oh, that's so awful, Bob!

WATTERS: -- rude that they turned their backs.

GUILFOYLE: You shouldn't be saying that when police officers are being murdered.

WATTERS: "The New York Times" was laughing when that guy threw a shoe at Bush. OK?

PAVLICH: Yeah.

WATTERS: When all those Code Pink protesters bum rushed Condi Rice with blood hands, do you remember that? Or when the Occupy protesters were like --

BECKEL: Well, what is the point?

WATTERS: -- pissing all over the street? They love that stuff.

BECKEL: Who does?

WATTERS: "The New York Times." They were applauding that type of protest.

BECKEL: I'm not defending the employees of "The New York Times."

WATTERS: But they don't like this type of protest when they silently turn their back? Are you kidding me?

BECKEL: This is the police department.

WATTERS: You think that's rude?

BECKEL: This is the police department. It's the best in the country; it went from the worst in the country 25 years ago.

BOLLING: "The New York Times" editorial board owes the NYPD an apology for that.

GUILFOYLE: They should.

BOLLING: That is asinine.

GUILFOYLE: It is. It's terrible, no respect.

Katie, really quick.

PAVLICH: I just hope that tomorrow night, you know, or New Year's Eve night people realize that the people who are going to be out there ruining everyone else's time are not people who want justice. They're people who want criminals to be able to operate with impunity. And that is the bottom line.

BECKEL: And that's a significantly less than 1 percent of the country.

GUILFOYLE: Tomorrow night is the most challenging night of the year, as we've been discussing, for the NYPD keeping the "Big Apple" safe as hundreds of thousands fill the streets to celebrate New Year's Eve. They do an incredible job every year and every day.

So our hats are off to them.

And speaking of New Year's Eve, please don't miss "The Five's" extravaganza tomorrow night. We're going to kick off the big party right here at this table with our "Five" special.

But coming up, important news: new developments on the crash of flight 8501. Stay tuned.

(COMMERCIAL BREAK)

WATTERS: Families of those on board AirAsia Flight 8501 learned the devastating fate of their loved ones today. Wreckage from the plane, along with bodies, have been pulled from the waters off Indonesia. The plane's black boxes have yet to be uncovered, but they should provide vital clues, as to what took that jet down.

Kimberly, so this is the third very tragic and mysterious Indonesian southeast Asian flight that's gone down. Now, do you think there's something fishy going on in the southeastern Asian airline industry, that there's corruption or do you think this is just chance?

GUILFOYLE: No, I just -- sometimes really horrible things happen. It's because this came on the heels of the Malaysia flight which is still missing that people are a little bit uneasy about it. But I think they're going to be able to explain this pretty quickly. It's still a relatively short period of time. They're still within, like, reasonable recovery period for the black boxes. And to be quite honest, you're going to be able to get a lot of forensic evidence from the nature of the bodies and what they've been able to recover. That will give you a clue as to exactly what went on.

There are a couple of things in play. We already know that it's monsoon season, that December and January the wettest time of the year for that part of the world. So we know that they encountered that, whether that was impeded, you know, in terms of trying to get to a higher altitude. There was a lot of other traffic in the area. They were declined by the air-traffic controller to get to a higher altitude to try to climb out of the weather. Sometimes that's not even good enough.

So it could have been also human error that exacerbated the problem with the pilot not being able to make those quick snap decisions being defined by traffic control or they really have no other way to do it, that maybe you have to get up, right, and climb anyway.

So we're not -- you know, it's too much, like, right now to be able to stay for certain. But the clues are now coming in.

WATTERS: Bob, the accountability factor here, we have the CEO, Tony Fernandes. You know, he's turned this company around. He bought it for 50 cents. They do cheap short flights all over that area. He was in a T- shirt the other day during a press conference. He owns a soccer league. Does the buck stop with him? What do you think should happen here?

BECKEL: Well, I'll tell you a couple things. I lived in Asia for two years during monsoon season, and it is the worst weather you can possibly imagine.

Reminded me of Air France when it came out of (UNINTELLIGIBLE) when it crashed because they flew into the weather system, and they shouldn't have done it. It sounds to me like that weather played a big role in this.

One of the things we know is that that part of the world has shown the greatest airline passenger increase and the largest number of pilot needs in that area. And they're having to go everywhere to get pilots. I'm not saying these are bad pilots. I'm just saying I think Kimberly may be right. It may be a question of you have enough experience, particularly flying around monsoons. I don't know.

GUILFOYLE: Not everybody is Captain Sully, to land the Miracle on the Hudson.

BECKEL: That's true.

WATTERS: That's true, no Captain Sully's down there. Now Eric, a lot of people are calling for new regulations. Do you think that's the answer to all these accidents?

BOLLING: So the question is, would an FAA, would an American control let that plane take off flying at that storm, and if they did, would there be any different decisions that were made? Are you suggesting an international FAA, if you will? I don't know. I don't think so. I think people will learn.

My concern is, as Bob points out, AirAsia was started about 10 years ago. He literally bought the company for a quarter, put up a plane or two, and in ten years, he went up to 158 planes, 88 countries. At one point in 2005 or '06, they were selling flights for $3.

WATTERS: Whoa.

BOLLING: A flight for three bucks, to capture a huge amount of demand. So what they did was they bought a bunch of demand with low cost, sometimes losing money to get it.

Did they expand too quickly, too rapidly? Not necessarily at the pilot level, or maybe at the maintenance level. Or maybe at some sort of, you know, flight routing level. So maybe the expansion happened too fast, too quick, and that's something that needs to be addressed. I don't know.

I don't think you can hang it on Fernandes, because you know, it's their first issue. It's not like this has ever happened at AirAsia, because it hasn't happened before. If there is some sort of cut-back on maintenance and they find these two black boxes that say, hey, this plane could have made it but -- then absolutely. But it feels like an accident.

PAVLICH: And it's their first issue. 2014 was the safest year on record for flight trouble.

And I do think the CEO does have some responsibility to make sure that a significant supply, a well-trained supply of pilots are meeting the demand. If there's not enough pilots who are properly trained to fly those jets, then they should raise the price of their tickets until they can get fully-trained pilots to fly those planes.

The bottom line is I'm just happy that they were able to find this plane. I'm glad those families will at least know what happened. I can't imagine how the families of 370 feel...

BECKEL: ... flying in Asia.

PAVLICH: ... when they didn't get the answers. They still don't know what happened to their family members. And so -- but I do think he has a responsibility to meet the demand that they're having with qualified people who are flying those planes.

GUILFOYLE: Just real quick. None of the bodies so far that were recovered were wearing life vests. It doesn't look like they were able to have, like a mayday out. They didn't have that. So I think it was catastrophic and perhaps, like, an up and down air draft that they got caught in that could tear the plane apart.

WATTERS: Right. And again, it's America that's sending all of our resources over there to help solve this.

OK. Ahead on "The Five," breaking news today on 41. That's President GWH Bush, who's been hospitalized. Stay tuned for that.

(COMMERCIAL BREAK)

PAVLICH: All right. Well, there was no shortage of material for the media to cover in 2014. And in some cases, media became part of those stories: from a discredited rape story on campus, to violations of an Ebola quarantine, to a kid who supposedly made over 70 million bucks on his lunch break, it wasn't exactly a banner year for journalism.

(BEGIN VIDEOTAPE)

BRIAN WILLIAMS, NBC NEWS ANCHOR: A major American university tonight has a lot to answer for now. The claims of a particularly shocking sexual assault have been made public.

UNIDENTIFIED FEMALE: I'm very sorry for not only scaring my community and the country, but adding to the confusion of terms, that I think came as fast and furious as the news about Ebola did.

UNIDENTIFIED FEMALE: Some high-school math classes may teach about stocks by encouraging the kids in the class to create fantasy portfolios. According to a new profile in "New York" magazine, one kid in New York City just got really good at it. Like, really good. The 17-year-old has made over 70 million real dollars.

(END VIDEOTAPE)

PAVLICH: Like really good at it. Bolling, like really good.

Which one -- I think the VA rape story was probably the worst because of the implications that it had on actual victims of rape.

BOLLING: And I think what it did was expose what Rolling Stone was doing and maybe has done in the past, and maybe a lot of publications are doing it. They're finding the story that they want, and they're going to go out and search and try to find a way to back and fill to make the story work for them.

Unfortunately, they got -- UVA got -- fraternities on campus got hurt, people got accused, no one ever asked. So I think exposing the Rolling Stone's tactics is one of the most important things. Fortunately, it turned out that way.

Ebola, OK, I get it. The $72 million kid was kind of funny, too. Ferguson was a problem, though.

PAVLICH: Yes. There are two other big stories that the media really botched, were the Ferguson story, and the Jonathan Gruber story. Ferguson in particular, because still CNN two weeks ago was saying, "Hands up, don't shoot," which we all know is a lie now. Come on.

WATTERS: Right. Yes, they ignored the facts, and they were, like, rooting for riots. They're like little riot junkies over there at MSNBC. I think Gruber really wishes (ph) the icing on the cake.

Now my media scandal of the year, and I think President Obama was just handed such a gift this year. He had the worst year when you go back and look at it, and the media covered the whole thing up. He lost Iraq, got pushed around by Putin, mishandled Ebola, the VA scandal. You know, he traded a deserter for terrorists at Gitmo.

GUILFOYLE: Oh, my God. Terrible.

WATTERS: He got shellacked in the midterms. And then all the headlines at the end of this year were "Obama finishes the year strong. Obama is, you know, free to do whatever he wants. Obama is, you know..."

BECKEL: That really bugs you doesn't it? Just really bugs you?

WATTERS: I cannot believe how well the president's doing despite having the most atrocious track record in 2014.

BECKEL: You Obama haters are beyond hope.

PAVLICH: They never change, do they?

GUILFOYLE: No, I can change the subject, though, a little bit. And how about Sharyl Attkisson, you know, CBS refusing to air stories about Benghazi or any of the other Obama scandals. I mean, this is pretty widespread, a pretty bad year in terms of journalistic integrity for -- you know, this country.

So, you know, in the midterm elections, people even refusing to cover some of the election results, as if it just didn't happen. They didn't want -- they were not in accord with it. So therefore, they didn't want to put it out there.

PAVLICH: Yes. And I think that we're seeing some of the malpractice in the media is going to don't to continue to play into 2015. We've seen it already here in New York, with New York, New Year's Eve being maybe a problem with the NYPD, based on this bogus narrative that the media created with Ferguson.

You know, of course Obamacare, the new rates for the penalty, if you don't have health insurance now are going up as a result of that. And Jonathan Gruber thing, of course, wasn't covered. So it's going to be, I think, very similar in 2015 as well as 2016 with what we're seeing.

But moving along. Just hours -- you want to say something, Bob? No, nothing, OK. Just hours until the biggest party of the year. That's underway right here in Times Square. We'll tell you what we have planned for you on New Year's Eve coming up on "The Five."

(COMMERCIAL BREAK)

BECKEL: Well, it's the eve of New Year's Eve. Tomorrow night, Kimberly, Jesse and I, along with my good friend and colleague Anna Quindlen and Kennedy will be braving the cold to countdown to 2015 with you. Last year Kimberly and I did it, and it was 20 below zero and it was tough. We're looking forward to seeing you. Watch that.

Now, some people don't like that holiday. I don't know why. Too much pressure to make plans or fighting crowds or dealing with drunks. I know a lot about that. Others love it, gathering with friends to begin a new year together and maybe smooching with your loved one at midnight.

Eric and Katie, do you guys have any plans for -- with anybody in mind?

GUILFOYLE: Bolling's not recovered from last year.

BOLLING: Last year I was in Puerto Rico and I was -- and it's an hour later, and midnight happened in Puerto Rico. And we went back to the room, and my son's watching TV. He's like, "Dad, get here quick! Kimberly just kissed Bob!" I'm like no way. There's no way that really happened. I came running in. I, like, caught...

BECKEL: Sure did.

BOLLING: ... the repeat of that.

BECKEL: She was a smoocher, too.

BOLLING: This year I'm going to have dinner right over here with my wife and son, the place right over here. And then I'm going to come and stand behind the scenes and watch you guys work.

GUILFOYLE: To supervise.

BECKEL: You got passes to do that?

BOLLING: I did get passes to do it.

BECKEL: I'm amazed you got those, really.

BOLLING: Yes. You can probably pull my pass if you want to.

BECKEL: No. You're probably -- you'll probably take my seat if you want to.

BOLLING: Not at all, no.

GUILFOYLE: That's so funny. I did get an e-mail from you right away, "What? Is it true? Did you just..."

BECKEL: Yes. Heard around the world.

Jesse, you're going to be with us tomorrow night. We look forward to that, as usual. But are you at all worried about the cold? I mean, you're a skinny little guy. And you go on beaches. That's your job; you go on beaches.

WATTERS: I know, I'm going to be very cold. I just -- I can't wait to spend time with you, Bob. I mean, on New Year's.

BECKEL: I bet that's true.

WATTERS: Ring in the new year with Bob Beckel.

BECKEL: Yes. Just don't get any ideas like Kimberly did.

WATTERS: And I cannot wait to see if you attempt a second kiss.

BECKEL: I'm not.

WATTERS: Will it happen or will it not happen?

BOLLING: No, no, no, Jesse.

BECKEL: She's going to be afraid about that all night. But I'm not.

BOLLING: It wasn't -- listen. He didn't attempt.

GUILFOYLE: Oh, Bolling.

BOLLING: That was initiated by K.G. I've got to tell you.

WATTERS: I don't believe that.

GUILFOYLE: I just started the year off right. What are you talking about?

BECKEL: Katie, what are you going to do?

PAVLICH: I'm going to be nice and warm, and I'm going to watch you, Bob, all night.

BECKEL: Thank you very much.

GUILFOYLE: I mean, how can you -- how can you miss it? I think it's going to be cool. We're coming up in the world.

BECKEL: We're going to be at the top of the Knickerbocker Hotel.

GUILFOYLE: Yes, we are.

BECKEL: You say it's closed?

GUILFOYLE: Bob -- well, Bob turns to me and goes like this, in his best Bobbyness. "Hey, you know, they're going to get us a couple hotel rooms."

BECKEL: Well, they did. That's what they told. The producers told me they were going to get rooms and they were going to give us food.

GUILFOYLE: Yes, I was like, "OK, Bob."

BECKEL: They had this big -- they got this big heart-shaped tub. Have you ever been in one of those rooms with the big heart-shaped tub with the wine glass?

WATTERS: Oh, wow.

BECKEL: That's great. I once took a woman to that thing and she left.

GUILFOYLE: OK, OK.

BECKEL: OK. Now, let's just go around here and let me know what your new year's resolution?

GUILFOYLE: God, I love my country and FOX News.

BECKEL: What's your new year's resolution?

BOLLING: My -- really?

BECKEL: Yes.

GUILFOYLE: No, we don't have any time.

BECKEL: I've got to tease? OK. All right.

You didn't tell me that until right now.

GUILFOYLE: That's tomorrow, Bob.

BECKEL: I'm going to hold out.

BOLLING: Let's do it tomorrow.

BECKEL: I'm going to hold out.

Most importantly, tomorrow please be safe, and seriously, don't drink and drive. Save somebody else's life and your own. "One More Thing" is up next.

(COMMERCIAL BREAK)

BOLLING: All right. Time for One More Thing. K.G., you're up first.

GUILFOYLE: I've got a couple of great things to talk about. No. 1, President Bush was released from a Houston Methodist Hospital today. We want to give a big heartfelt hug and kiss and prayers to the Bush family. I'm glad that he's going to be home to ring in the new year with his family. We're very grateful to the doctors that helped him.

And also want to promote Gretatalk.com. Her big new feature podcast is on. You can go on Gretatalk.com to download it. Subscribe for free. Yes, iTunes, TuneIn, and Stitcher. It's really great. And I got to spend time with Greta recently, and there we are. So that's actually available right now as we speak. I encourage you to click on it and check it out. And we've also got a great special for you tonight "On the Record," Greta, 7 p.m. Eastern. I hope to see you there, as well.

BOLLING: Very good.

BECKEL: What's Snickers [SIC]? What is Snickers [SIC]?

GUILFOYLE: No. BOLLING: We'll get back to that in one second. Jesse, go ahead.

WATTERS: OK. In case you didn't hear, we're doing a special New Year's Eve FOX event tomorrow night. I'm going to be there with Anna Quindlen and Kimberly and Bob and everybody. But I wanted to give you a special sneak peek of some "Watters World" which we're going to air tomorrow night. Here it is.

GUILFOYLE: Oh, my God.

(BEGIN VIDEOTAPE)

WATTERS: What was your biggest mistake this year?

UNIDENTIFIED FEMALE: My biggest mistake? I got a job at Hooters?

WATTERS: You got a job at Hooters.

UNIDENTIFIED FEMALE: Yes.

WATTERS: What were your qualifications?

UNIDENTIFIED FEMALE: It's Hooters.

OWEN WILSON, ACTOR: Ooh, exciting. Take your foot off the gas.

WATTERS: Elmo, you want a picture with me? Five dollars.

(END VIDEOTAPE)

WATTERS: All right, so we're going to have fun tomorrow night. Tune in at 9 to past midnight, and there might be a second kiss.

BOLLING: Oh, goodness.

BOLLING: All right.

GUILFOYLE: You're going to kiss Bob?

BOLLING: Exactly.

GUILFOYLE: That was weird.

PAVLICH: Jesse's gearing up, guys. Have to make sure your eye-muff's on, because you can't un-see that.

WATTERS: That's gross.

PAVLICH: Just saying.

All right. So if you have a girlfriend who has a cat, and you're planning on selling her mattress for her, make sure the cat isn't in the mattress before you do it.

This guy named Roy Dufek from Portland, Oregon, went to sell his girlfriend's mattress, and the cat was stuck in the box springs. So they sold the mattress and the cat was gone for ten days. And they finally got it back, because they baited it with sardines and familiar scented clothing, which is very strange. And it was two pounds lighter. It lived outside, had a cut lip, hurt little paw.

GUILFOYLE: Oh, my gosh.

PAVLICH: Got it back. So if you have a cat and can't find it, make sure you check the mattress before you send it to the neighbor's house.

BECKEL: They put sardines in the thing? Who bought that thing?

PAVLICH: I don't know, but it's a...

GUILFOYLE: I don't know. He doesn't know how the show works.

BOLLING: How the "One More Thing" works.

BECKEL: I was buying you time, but you got more time.

BOLLING: No. We want to tease your show at the end.

All right. So Christmas, I've been away. I went to Mexico for Christmas. You know I love Latin culture. Here's the group shot very quickly. Move on to the second one. There's Eric Chase. Look at -- he can out-lift me, Jesse. He can out-bench me. It's getting embarrassing.

GUILFOYLE: Wow.

BOLLING: And the last picture right there, a couple of sombreros. There's my little head in the corner there. And I just want to say, this sombrero, I'm going to put this on. I'm warning everyone, May 5, Cinco de Mayo, I'm putting this on. I don't anyone to accuse me of anything bad. I'm telling you in advance, I will wear this on May 5.

BECKEL: You look like Cheech and Chong.

BOLLING: All right, Bob. You're up.

GUILFOYLE: Here we go. More sensitive comments.

BECKEL: I've changed my mind. The pope -- I was wondering about the Pope Francis when he got picked and I -- but he changed a lot. And I'm glad to see that. and the best thing that happened, the pope came out and is turning his focus on the thing that is going to hurt us all, climate change. He's made that his single biggest issue for next year. And he's going to be preaching about it. He's issued a whatever you call those things in the Catholic Church. And...

GUILFOYLE: Whatever.

BECKEL: He is exactly right. Pope Francis, you've got it. All these right-wingers are wrong. And let them drown. The rest of us will be...

GUILFOYLE: That was the weirdest, most mean, like just disjointed "One More Thing."

BOLLING: All right. So before we go...

BECKEL: We've got a thing tomorrow night.

BOLLING: Tomorrow night we have our special. We're going to air our special.

BECKEL: Right.

BOLLING: And then later on, Jesse, Kimberly, Bob, Anna Quindlen and Kennedy are going to be at Times Square. Make sure you watch all of it.

GUILFOYLE: A lot of great correspondents out in the field with us: Rick Leventhal, Jono (ph). We got (UNINTELLIGIBLE) Small.

BOLLING: McGuirk.

GUILFOYLE: Yes. Tom Shillue. It's going to be hitting it.

BOLLING: Don't forget. Don't miss it. It's a big night tomorrow night. "Special Report" is on deck, coming up in just about 10 seconds.

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