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GUILIANI: If you're talking about a response of government, probably what government can do best is to try to limit spending and try to bring down government spending. We haven't done that in a while. We haven't done it in a concerted way. And it seems to me that's how the federal budget can have the best impact on the private economy. And make it clear that we're going to extend the tax cuts and it's not just a temporary thing so people can look forward to long term planning. And look for other ways in which we can put...

Former New York City mayor Rudy Giuliani keeps the upper hand in a prospective United States presidential contest, according to a poll by Rasmussen Reports. 49 per cent of respondents would vote for the Republican in 2008, while 41 per cent would support Democratic New York senator Hillary Rodham Clinton. Support for Giuliani fell by three points since late February, while backing for Rodham Clinton went down by two points. In another match-up, Giuliani has a seven-point lead over former North Carolina senator John Edwards.

After first misreading his intentions and then underestimating his strength, waves of pundits are continuing to view Rudy Giuliani's lead in Republican presidential polls as some kind of giant misunderstanding. But the fact is that the former New York mayor is the front-runner in the race and a huge new force in American politics. The time has come to stop wondering whether he's for real and start asking a far more important question: What kind of president would he be? Giuliani is an enormously gifted man, with extraordinary accomplishments to his credit. He has a knack for inserting himself into...

HANNITY: Let me move on. And the issue of guns has come up a lot. When people talk about Mayor Giuliani, New York City had some of the toughest gun laws in the entire country. Do you support the right of people to carry handguns? GIULIANI: I understand the Second Amendment. I support it. People have the right to bear arms. When I was mayor of New York, I took over at a very, very difficult time. We were averaging about 2,000 murders a year, 10,000... HANNITY: You inherited those laws, the gun laws in New York? GIULIANI: Yes, and...

Sen. John McCain is preparing for a 2008 showdown with former New York City Mayor Rudy Giuliani, who so far who leads him in the presidential race according to most polls. While the two men remain personally friendly, sharing dinner recently at a Manhattan bistro, Newsday reports that McCain's team is monitoring Giuliani's every move - including keeping track of how much face time the former mayor gets on TV. Meanwhile, McCain insiders aren't shy about trashing the former mayor's presidential prospects. "In my humble opinion, Rudy wouldn't get out of the gate," longtime McCain strategist John Dennehy tells the...