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Reagan attends a meeting of the defense department to learn about a new "A" bomb the size of an audio cassette, and then mistakenly gives Fred the cassette as a Christmas present. Gerald Ford then tries to disarm the bomb.

Barbara Walters, Sam Donaldson, Ted Kopel and Dan Rather do a song and dance. George Bush, in an effort to get into the spotlight, falls into a well. Fred rescues him, but his moment of glory is over shadowed by Sean Penn and Madonna's breakup.

Nixon plans a scam for his Cub Scout troupe, is caught, impeached from the Scouts, and in his shame runs away. George Bush fantasizes about not being a wimp and becomes George Bond. Nixon returns with a new scam involving man's best friend and a monkey.

John Madden gives Fred a mechanical bull for the bar. Gerald Ford tries to ride it but gets thrown off head first into the wall. Jesse Jackson performs an uplifting song with Dolly, Barbara, and Cher singing backup.