Sideshow: More accusations against Larry Craig

>>> to the sideshow. first we welcome back sarah palin , weighing in on big news that happened yesterday. not at all close to alaska. in fact, it was a hot issue on " morning joe " today. here's a refresher.

>> our top story, though, is about big sugary sodas. they came out victorious yesterday. as a state court invalidated new york city 's ban on oversized beverages.

>> let's go right over right now to our flash cam.

>> yeah.

>> and see --

>> lewis?

>> see.

>> oh my gosh. wow.

>> lewis, what are the implications?

>> joe, the constitutional implications are just remarkable.

>> oh my god.

>> i didn't know this was the daily show .

>> sarah palin , twitter, here she goes on mayor bloomberg 's 16 ounce soda limit had been blocked by a state supreme court judge. she said, "victory in nyc for liberty loving soda drinkers, to politicians with too much time on their hands, we say government, stay out of our refrigerator." there you have it from a former politician with all the time on her hands. she doesn't have a job. by the way, her next book, we ought to know this, has something to do with the war on christmas. we can expect palin's take on, "politically correct scrooges who would rather take the christ out of christmas. you know, people who choose to say happy holidays instead of merry christmas ." actually as we all know, no one's ever told anyone of us to say, not to say merry christmas .

>>> next, remember larry craig ? he's the former idaho republican senator arrested back in 2007 for inappropriate behavior in an airport bathroom. well, craig is now facing accusations that he misused over $200,000 in campaign funds for his legal defense in that case. well, the question is, was his use of the money legal since craig 's bathroom fiasco happened during a job-related trip? that's what craig 's defense trip is saying. the trouble is craig and his attorneys are trying to have it both ways. back in 2007 a letter to the senate ethics committee said his arrest and conviction were, "purely personal conduct unrelated to the performance of official senate duties." but now they're saying spending campaign funds on his defense was part of official business. that's what's called taking a wide stance on your job description .

>>> next, take a quick look back at karl rove 's election night meltdown over whether it was too soon to say president obama had won ohio. while you're watching, though, think about what it could do with the papal conclave .

>> do you believe ohio has been settled?

>> i don't. it may be barack obama wins the state, but it seems to me you have a lot of votes yet to cash. we had one instance where something was prematurely called.

>> you know it well.

>> they said this is not going to be another one of those scenarios.

>> maybe not. if it's going to happen, let the votes begin to show it.

>> any collections to the conclave there? did you see any? here's karl rove earlier today.

>> thank god we don't have exit polls or early returns. they do it the right way. they get to the final vote and the decision then they let the smoke -- maybe there's a message there for american media . maybe we better wait, rather than call it, let the election go to its final conclusion and let the results speak for its.

>> we'll follow your lead. unto god the things that are gods, i think i'm safe in saying that one.

>>> up next the papal conclave is under way in rome. my big we is whether the cardinals will select a pope who can connect and be progressive. that's ahead. you're watching "hardball," the place for politics.