Updated

This is a rush transcript from "Hannity," October 6, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: First lady Michelle Obama is taking a break from telling us what we can and cannot eat and is drumming up support for Democrats ahead of the midterm elections.

Now in an e-mail to supporters, Mrs. Obama is asking people to donate cash to help fend off a Republican upset in November. She's also hitting the campaign trail for some Democrats who are tethering on losing their election bids.

The first lady is scheduled to attend fundraiser for Senator Russ Feingold, Alexi Giannoulias, Senator Michael Bennet, Richard Blumenthal, Senator Patty Murray and Senator Barbara Boxer. Now the first lady will also make a fundraising stop for Nancy Pelosi, seeing as her job as speaker is definitely on the line. That's some list.

Joining me with reaction is the author of the number one New York Times best-selling book "Culture of Corruption," Michelle Malkin is back. Michelle, welcome back.

MICHELLE MALKIN, SYNDICATED COLUMNIST: Thanks for having me back, Sean.

HANNITY: "For the first time in my adult life I am proud of my country." "America in 2008 is a downright mean country." I guess things have changed.

MALKIN: I guess so. I do think America should watch out, thought because the bitter half of the White House is being let loose on the campaign trail. Some Democrats think it is a smart idea to be seen next to Michelle Obama. But as you just referenced with those past emanations from the first lady, she has quite a history of griping and it's not exactly what people want to hear right now, especially after her failed, botched Spain trip as well.

HANNITY: Well, you know, it's interesting because obviously, these Democrats don't want to be seen with her husband. The latest strategy seems to be if you are not smearing Republicans and sending out pamphlets or running ads that are full of lies, I guess the next thing you can do is pretend you are not a Democrat.

MALKIN: Yes, that's right. You cannot find that word in most of these Democrat campaign ads right now. I think, of course, there's only so much they can do to cover their stripes. What is interesting, particularly to me about Michelle Obama's schedule is looking at the kinds of Democrats that she has chosen to help.

I think you will see two faces of Michelle Obama on the stump. On the one hand, you will see her posing as the champion of the working people and demonizing Republicans as the mean people who are keeping them out of their jobs. You see that with the grass roots online appeals that you referred to. She is now doing a so-called Michelle Match program where she is money grubbing for small donations of $3 or more that she says will be matched. Matched by whom? We didn't know. Apparently there are unnamed anonymous donors out there who will match it. I believe that's probably code for big labor and it's $88 million war chest.

HANNITY: The American Thinker had a piece today where they're saying that the president two days after election day is planning to head out of dodge and he's going on this foreign trip for 12 days.

Obviously, I guess, he's assuming that it's not going to be a big victory party. What do you think of this, perhaps maybe I'm making too much of this, but the president speaking and the presidential seal, how symbolic falls off the front of the podium when he's speaking.

(BEGIN VIDEO CLIP)

PRESIDENT BARACK OBAMA: That starts with education, especially in fields like science, technology, engineering and math. We cannot sustain -- whoops -- was that my --oh, goodness, that's all right. All of you know who I am.

(END VIDEO CLIP)

HANNITY: To his credit, I assume that line wasn't in the teleprompter. Perhaps I go too deep in my assumption here. Pretty quick recovery on his part, but, is that symbolic?

MALKIN: I think so. The omens -- do not bode well. I think it is more than the seal symbolically that is dropping of course. I think a lot of these Democrat candidates are going to be dropping like flies the day after Election Day including many of the ones that Michelle Obama is crusading for.

If you look, these races are incredibly tight. The one in Illinois to replace Obama and his Senate seat, Alexi Giannoulias, the shady banking buddy, who is now ducking debates. He cancelled his most recent debate appearance amid heated questions about a $3 million tax deduction that he took for working 500 hours at his shady family bank, the now defunct Broadway Bank.

You look here in Colorado where Michelle Obama will be campaigning for Michael Bennet, a crony corporate financier whose deals cost the Denver public schools $25 million. These are the people that she's championing and embracing not only does it tell you about the kind of choices that the Obama's have made and the corruption and shadiness that they embrace. It tells you about the kind of lousy candidates the Democrat party has been fielding.

HANNITY: I think that's all -- those are all great points. I think there's something else little deeper going on here. Now, it's interesting Bob Woodward of all people said it is on the table the idea that Hillary Clinton, an Obama-Hillary Clinton ticket is being considered.

White House is obviously denying this. On -- as soon as that came out, then Mark Penn who is Hillary Clinton's pollster comes out and says that this is going to be a referendum election on Obama. Everybody is predicting this is going to be a bloodbath for the Democrats. So obviously there's some bad blood there and there seems to be political posturing from within. I wanted to get your take on that.

MALKIN: Well, sure, and Hillary supporters have been far more open in the last couple of months about sniping and griping their displeasure with the current team.

You have seen a lot of turnover not just on Capitol Hill and elected office that you are seeing that. Everybody is bolting on the Obama administration. Of course, some of that is natural and cyclical, but I think I agree with Bob Woodward this is about Obama.

HANNITY: All right, Michelle Malkin, always appreciate you being with us. Your best-selling book, number one best-seller is in paperback right now and we appreciate it.

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