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I think that the democrats this time might just have to walk from this one and blame it on the republicans. it is political theater, but this is what it has come to. they simply do not want to allow this democratic leadership in the senate to have anything that might be viewed as a victory for the people. that is where the republicans are right now. >> and so are you suggesting that the democrats have to be willing to walk away from it? >> yes, and all of the lawmakers the extension of the bush tax cuts is totally unacceptable and off of the table. why do we have to cut a deal with anybody to ...

i'm wolf blitzer, you're in "the situation room." we're also awaiting a statement by the secretary of state hillary clinton. she's about to make a statement on all of the breaking news. an alleged terror plot to assassinate the saudi ambassador to the united states. the justice department says iranian agents were seeking help from a purported mexican drug cartel to carry out the killing and the fbi and the dea busted the plot wide open. the attorney general of the united states, eric holder, gave details just a little while ago. >> today the department of justice is announcing charge...

Rooooooound. lightning round. >> i love that. the husband was quoted as saying her only addiction is chocolate. that's hilarious. >> it is a really serious uh -- addiction. until you suffer from it. do not judge. >> is chocolate a eye pho mitch from something else? -- euphemism for something else? >> in that case you don't have a problem. >> she shouldn't have been on celebrity rehab, right? >> not for a chocolate uh addiction. but she would not have been the fers. i am uh -- addicted to shoes. they are pushing it. >> i i would like to add something, you are addicted to shoes full of coke. >> ...

>> too nice, maybe, you know, they didn't like the louisiana accent. i think, you know, there's all sorts of different reasons for, you know, why someone would want to be on it or not be on it. i mean, i think that the centerpiece of this makeover is jennifer lopez. and they needed to fit the pieces around her. and she's the diva at the table. so i'm curious to see who actually does end up taking on the simon cowell role here. >> and why would jennifer lopez do this? she is a huge star. >> well, she's -- yeah, she's a big star. she's not as big a star as she was. she's kind of been like sort o...

No conflicts. >> ah, i see, allan. yeah, so the investors -- wow, okay. gotc gotcha. allan chernoff in new york for us. what a story. did you want to add something, allan? >> by the way, tony, those investors lost a billion bucks. the hedge fund betting against the housing market, made a billion. >> oh, nan. what a story. allan, appreciate it. billion dollars, that's real money. now to the volcanic eruption being felt around the world. 17,000 flights grounded. drifting ash from a volcano in ooigs iceland is to be blamed for it all. forced to shut down airports across much of europe. hundreds...