WILLIAMS: Well, I think you -- as you can hear from Bill, I think what's happened now is that the hardliners in the United States, in Israel, in the -- throughout the Middle East are sort of emboldened by the result.
They're saying, "You know what? President Obama, you were wrong to ever reach out to the Iranians." Clearly, this is a totalitarian hardline state. I am actually...
WALLACE: When he said hardliners -- I thought you were talking about Ahmadinejad.
WILLIAMS: Yes.
WALLACE: You're talking about Bill Kristol.
WILLIAMS: Well, no, I'm talking about the Iranians. But I think that, you know, when you look at what the possibility is here now, it seems to me options then become limited, because how can you negotiate with someone -- how can you offer them any incentives when, in fact, there's a question of their legitimacy?
Is this a real government or not? Is it simply some kind of, you know, religious-driven society, totalitarian -- however you want to describe it -- in which they are not...
WALLACE: So you think all of President Obama's efforts or hopes to reach out to Iran on some level -- that that's dead?
WILLIAMS: Well, it looks like it. I mean, the only thing is that there's the possibility that you get Ayatollah Khamenei and others in search of some kind of domestic appeasement, saying to people, "You know what? Oh, no, we're going to negotiate with the international community. We're going to take steps to try to amp down the tensions here." But that's the only hope.
I don't see that there's much hope now in terms of these negotiations going forward because President Obama would look weaker. It would look as if he was giving in to this man who's not even legitimately elected.
KRISTOL: Juan's giving up on reaching out by President Obama. At the moment you should be -- this is the moment for President Obama to step up. He does have some credibility, presumably, with people in Iran. He should support the democrats.
HUME: Right.
KRISTOL: He should support the demonstrators. He should say that stealing elections is unacceptable, killing demonstrators in the streets of Tehran is unacceptable. He could work with the Europeans to say, "Let's bring in international observers to review whether this was a fair election. If it wasn't, let's think about having another election."
WALLACE: But you're saying turn up the heat, not reach out to the ruling regime.