Transcript: Senior WH Adviser Valerie Jarrett

And I think what you saw -- I agree with you; New York 23 is a conservative place. You can't read too much into it. But I think it is part of an overall continuum in which, after Bush, after McCain, the conservative part of the party is saying, look, we lost not because we were too moderate but because we were -- not because we were too conservative; because we were too moderate.

And I think they will -- I think there is going to be a tight leash on Republican leaders in terms of how far they can deviate from a small government message in the next couple years.

WILL: Independents -- independents are moving to the right in droves. Gallup says the number of Americans who identify themselves as liberal is down 20. Those identifying as conservative, Reverend, are up to 40. That's two times 20.

SHARPTON: Well, I'm a conservative. I want to conserve voter rights. I want to conserve women's rights.

(LAUGHTER)

WILL: You don't want to conserve voting rights for union members.

SHARPTON: I think you've got to redefine what conservatives are, now. I think that a lot of what people who used to call themselves conservatives, they're the extremists. They want to change America as it has become. I think we are now the conservatives. We're trying to conserve the America of the last 40 years that is making the progress you talked about.

STEPHANOPOULOS: One feeling I think a lot of those conservatives have -- I mean, and you see this across the polling -- independents are going up in every poll. But these are, as Ron suggests, is Perot- like independents, really, really angry, right now. And that could cost Jon Corzine from your neighboring state, New Jersey, his race, even though he's ahead right now.

SHARPTON: I think unfairly so. But I think you're right. I think that Corzine was impacted in his tenure as governor by what happened in terms of the national economy and things that were beyond his control.

I have been in New Jersey. And I've been on the ground there, and I think that the problem there is trying to get that message through and to really raise a lot of the things concretely that he did do in the state.

And I think that is going to be a close election. And I think he'll win.

(CROSSTALK)

STEPHANOPOULOS: But in that state, you've also, though, got more of a moderate Republican challenging the Republican nominee, and he's costing Chris Christie, the Republican, how many votes, as well.

GILLESPIE: For right now...

STEPHANOPOULOS: Third party.

GILLESPIE: Yes, a third-party candidate. But, look, independents -- New Jersey's the first state in the union with a plurality of registered independent voters. They tend to be -- have been leaning Democrat for years, but they are fed up with the spending. They are fed up with the taxes. They're tired of seeing businesses run out of the state and they're tired of seeing one-party rule in Trenton.

And what we're seeing now is a reaction to that. And we've got wind at our back for Chris Christie. I think Daggett's numbers will come down between now and Tuesday, and they will accrue to -- they will go to Christie.

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