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In 2004, he swung between going after the SBVT because he, like everyone who bothered to think about it, knew they were lying, to having almost a "crush" on Bush. He, more than anyone, seemed to really buy (push) the "man of the people", "great man to have a beer with" stereotypes. Yet, he had been in either DC politics or media since the Carter years. He knew the arrogant, mean drunk sides of Bush. Yet, in 2004, it was Kerry's reserve that he questioned - even though he is genuinely nice and Matthews knew him.
There is something weird in his reaction to Blumenthal. As you said, any misconception that he was ssaying he had been in Vietnam was completely corrected within that same speech. The fact is that anyone speaking publicly as much as Blumenthal will occasionally make an unfortunate gaffe. Here the cause was likely that he always said Vietnam ERA veteran - and this one time he skipped the word "era". What is clear is that he never claimed on any web site, campaign literature, or ad that he was in Vietnam. Nor is there any time he ever spoke in a Walter mittyish fashion of his time there. As a counter to these minor verbal errors, Blumenthal has a squeaky clean reputation of decades of service.
As to what Blumenthal said,you can compare it to what Kirk in Illinois did. He greatly distorted what he did in the National Guard - and he inflated his past claiming to have teaching experience which he didn't have. This was done repeatedly, on his House web site, his campaign web site, his ads and in many spoken claims.
Or, in a case more comparable to Blumenthal's, consider Scott Brown. Speaking in present tense, Scott Brown often refers to "being in the military" and he speaks of having been in the military for 30 years. In fact, he is in the National Guard (something the Boston papers have given him enormous credit for), but he was never activated and he is a JAG officer. If you look at comments in the Boston papers, there are many people who refer to his military experience as giving him credibility on the Armed Services committee, ignoring that many members of that committee have real combat experience.
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