I'm Confused!

http://www.youtube.com/watch?v=mg5tl87rEE4

Video comparing Obama's and Palin's experience. Obama objectively wins.

John and Sarah in St. Paul

http://www.nybooks.com/articles/21831?email

A thoughtful, brilliant overview of the McCain/Palin ticket.

Snip: That the seventy-two-year-old's choice of Sarah Palin as a possible successor had been deeply irresponsible by any standard of governance seemed to matter to only a few Republican dissenters. ("If it were your decision, and you were really putting your country first," asked David Frum, the former Bush speechwriter turned blogger and think tank gadfly, "would you put an untested small-town mayor a heartbeat away from the presidency?") What mattered now, as the convention resumed, was whether McCain could regain control of what's known in the political consultants' game as "the narrative."

Will Someone Put Sarah Palin Out of Her Misery?

Palin Is Ready? Please.

Will someone please put Sarah Palin out of her agony? Is it too much to ask that she come to realize that she wants, in that wonderful phrase in American politics, "to spend more time with her family"? Having stayed in purdah for weeks, she finally agreed to a third interview. CBS's Katie Couric questioned her in her trademark sympathetic style. It didn't help. When asked how living in the state closest to Russia gave her foreign-policy experience, Palin responded thus:

"It's very important when you consider even national-security issues with Russia as Putin rears his head and comes into the airspace of the United States of America. Where--where do they go? It's Alaska. It's just right over the border. It is from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to--to our state."

There is, of course, the sheer absurdity of the premise. Two weeks ago I flew to Tokyo, crossing over the North Pole. Does that make me an expert on Santa Claus? (Thanks, Jon Stewart.) But even beyond that, read the rest of her response. "It is from Alaska that we send out those ..." What does this mean? This is not an isolated example. Palin has been given a set of talking points by campaign advisers, simple ideological mantras that she repeats and repeats as long as she can. ("We mustn't blink.") But if forced off those rehearsed lines, what she has to say is often, quite frankly, gibberish.



Couric asked her a smart question about the proposed $700 billion bailout of the American financial sector. It was designed to see if Palin understood that the problem in this crisis is that credit and liquidity in the financial system has dried up, and that that's why, in the estimation of Treasury Secretary Hank Paulson and Fed chairman Ben Bernanke, the government needs to step in to buy up Wall Street's most toxic liabilities. Here's the entire exchange:

COURIC: Why isn't it better, Governor Palin, to spend $700 billion helping middle-class families who are struggling with health care, housing, gas and groceries; allow them to spend more and put more money into the economy instead of helping these big financial institutions that played a role in creating this mess?

PALIN: That's why I say I, like every American I'm speaking with, were ill about this position that we have been put in where it is the taxpayers looking to bail out. But ultimately, what the bailout does is help those who are concerned about the health-care reform that is needed to help shore up our economy, helping the--it's got to be all about job creation, too, shoring up our economy and putting it back on the right track. So health-care reform and reducing taxes and reining in spending has got to accompany tax reductions and tax relief for Americans. And trade, we've got to see trade as opportunity, not as a competitive, scary thing. But one in five jobs being created in the trade sector today, we've got to look at that as more opportunity. All those things under the umbrella of job creation. This bailout is a part of that.

This is nonsense--a vapid emptying out of every catchphrase about economics that came into her head. Some commentators, like CNN's Campbell Brown, have argued that it's sexist to keep Sarah Palin under wraps, as if she were a delicate flower who might wilt under the bright lights of the modern media. But the more Palin talks, the more we see that it may not be sexism but common sense that's causing the McCain campaign to treat her like a time bomb.

Can we now admit the obvious? Sarah Palin is utterly unqualified to be vice president. She is a feisty, charismatic politician who has done some good things in Alaska. But she has never spent a day thinking about any important national or international issue, and this is a hell of a time to start. The next administration is going to face a set of challenges unlike any in recent memory. There is an ongoing military operation in Iraq that still costs $10 billion a month, a war against the Taliban in Afghanistan and Pakistan that is not going well and is not easily fixed. Iran, Russia and Venezuela present tough strategic challenges.

Domestically, the bailout and reform of the financial industry will take years and hundreds of billions of dollars. Health-care costs, unless curtailed, will bankrupt the federal government. Social Security, immigration, collapsing infrastructure and education are all going to get much worse if they are not handled soon.

And the American government is stretched to the limit. Between the Bush tax cuts, homeland-security needs, Iraq, Afghanistan and the bailout, the budget is looking bleak. Plus, within a few years, the retirement of the baby boomers begins with its massive and rising costs (in the trillions).

Obviously these are very serious challenges and constraints. In these times, for John McCain to have chosen this person to be his running mate is fundamentally irresponsible. McCain says that he always puts country first. In this important case, it is simply not true.

Posted by Fareed Zakaria on September 28, 2008 10:56 PM

In Financial Food Chains, Little Guys Can’t Win

In my humble opinion, Ben Stein has always been an arrogant heartless smartaleck who delighted in humiliating people. Who knew that he actually considered himself a little guy? Who knew that he was able to succinctly lay out the path that led us here?

The one fact he omitted, that brings everything into perspective, is that the value of the entire global economy, according to Wikipedia, is around $65 trillion dollars. This amount is roughly equivalent to the amount of debt held in credit-swaps, or what he calls credit-default swaps. So for every monetary action of the global market, there is a derivative ready to nullify it. Warren Buffett was right: derivatives were the “weapons of financial mass destruction.”

So, what Congress and Bush actually want us to do is to give the speculators money to support their derivatives market.

It's called, in the vernacular, a Ponzi Scheme. Oh so recently, most of the major global banks claimed to have settled with the investors in a similar Ponzi Scheme. This Scheme was worth a measly $330 Billion. Investors were deceived into thinking that auction-rate securities were equivalent to money market accounts. The banks caved under threat of criminal fraud charges. No bailout for the boys on this one. They have to cough up the money from their profits. Which is what should happen in the larger case as well. Let them fail. It's all a derivative-backed illusion. Show us the little man behind the curtain right now. Like Stein says, what else did the great swamis Paulson and Bernanke miss?

~Deb

http://www.nytimes.com/2008/09/28/business/28every.html?th&emc=th

September 28, 2008

Everybody’s Business
In Financial Food Chains, Little Guys Can’t Win


By BEN STEIN

IMAGINE, if you will, that a man who had much to do with creating the present credit crisis now says he is the man to fix this giant problem, and that his work is so important that he will need a trillion dollars or so of your money. Then add that this man thinks he is so indispensable that he wants Congress to forbid any judicial or administrative questioning of anything he does with your dollars. You might think of a latter-day Lenin or Fidel Castro, but you would be far afield.

Instead, you should be thinking of Treasury Secretary Henry M. Paulson Jr. and the rapidly disintegrating United States of America, right here and now. But I am getting ahead of myself. First, I am furious at what the traders, speculators, hedge funds and the government have done to everyone who is saving and investing for retirement and future security. Millions of us did nothing wrong, according to the accepted wisdom of the age. We saved. We put a large part of our money into the stock market, as we were urged to do. Because the market wasn’t at ridiculously high levels, it seemed prudent to invest in broad indexes, foreign indexes and small- and large-cap indexes.Now we have had the rug pulled out from under us. Our retirements have been put into severe jeopardy. The “earnings” part of those price-to-earnings ratios turns out to have been fiction for some financial companies, which normally account for a big part of total corporate earnings. In fact, earnings of giant finance players were often wildly negative, creating a situation rarely seen since the Great Depression, when the aggregate earnings of the Dow 30 were negative.

The current negativity occurred because of wild, casino-type operations of big finance players, creating liabilities way beyond anything we could have reasonably expected. This looks a lot like theft on a spectacular scale — of our wallets, our peace of mind, our futures. Second, according to what I hear from my betters in the world of finance, the most serious problems are not with the bundles of subprime mortgages themselves — a large but not lethal quantum as far as I can tell — but with derivatives contracts tied to subprime and other dicey debt.

These contracts are superficially an attempt to “insure” against risks of default, hence the name “credit-default swaps.” In fact, they are an immense wager — which anyone with lots of money or borrowing ability can enter — about how mortgage-backed bonds, leveraged loan bonds, student loan bonds, credit card bonds and the like will perform. These wagers entail amounts many times larger than the total of subprime loans. In fact, there are roughly $62 trillion in credit-default swap derivatives out there, compared with about $1 trillion of subprime mortgages. These derivatives are “weapons of financial mass destruction,” in the prophetic words of Warren E. Buffett. (Apparently believing that the worst is over, at least for one big investment bank, Mr. Buffett is now investing in Goldman Sachs.)

The swaps market has been unregulated. It has been just a lot of people making bets with one another. Some of them made incredibly fortunate payoff wagers against the mortgage bonds, using credit-default swaps as their wagering vehicle. I am not sure who the big winners are, but they are out there, and the gains were big enough to cripple the part of Wall Street on the losing side of the bets. Almost no one (except Mr. Buffett) saw this coming, at least not on this scale. But let’s get back to the man of the hour. Why didn’t Mr. Paulson, the Treasury secretary, see it? He was once the head of Goldman Sachs, an immense player in the swaps world. Didn’t people at Treasury have a clue? If they didn’t, what was going on in their heads? If they did, why didn’t they do something about it a year ago, when saving the world would have been a lot cheaper? If Mr. Paulson and Ben S. Bernanke, the chairman of the Federal Reserve, didn’t see this train coming, what else have they missed? What other freight train is barreling down the track at us?

All of this would be bad enough. But by far the most terrifying item I read in my morning paper last week was this: Mr. Paulson demanded that Congress forbid judicial review of his decisions on use of the money in the mortgage bailout. This would amount to an abrogation of the Constitution. Not only would his decisions be sacrosanct and above the law, but so would the actions of his pals in the banking world in connection with this bailout. The people whose conduct got us into this catastrophe have not only taken our money, hopes and peace of mind, but they apparently also want a trillion or so more dollars to put into their Wall Street Buddy System Fund. This may be the most dangerous attack on the law in my lifetime. What anarchists even dared consider this plan? Thank heaven that minds more devoted to the Constitution on Capitol Hill are questioning this shocking request. By the way, if we are actually thinking about tossing the Constitution out the window, why not simply annul these credit-default swap contracts? With that done, the incomprehensibly large liability of the banks would cease, and we wouldn’t need this staggering bailout. Shouldn’t we consider making the speculators pay some of the price?

WE have survived housing-price corrections before. Why is this one causing so much anguish? It must be the side bets, the credit-default swap bets, multiplying the effect of the housing downturn many times over. Maybe we should just get rid of these exotic bets and start again without them. “Insurance” on market moves is always a bad idea, because it does not tamp down market disruptions but instead greatly magnifies them — as in the disastrous effect of “portfolio insurance” in the 1987 crash. Then there was Mr. Paulson’s insistence that there be no compensation caps for executives of companies being bailed out by the factory workers, the farmers, the schoolteachers and the medical doctors. He told a skeptical Congress on Tuesday that if these caps were put into place, bank executives simply wouldn’t participate in the bailout or sell us suckers their debts. Fine with me.

If the banks are in good enough shape so that petulant executives can simply opt out rather than live on a few million a year, maybe we don’t need the bailout at all. Maybe we would be better off if those executives simply bailed out and were replaced by people with more sense and more patriotism. One final little thought bubbles into my mind: Maybe the bailout should not be of the banks at all, but of homeowners themselves. Maybe if we make the government the buyer of last resort of homes, we will stabilize the markets, stabilize the debt associated with the markets and take the gain out of the credit-default swaps for the speculators. Yes, price would be a huge issue, but so it is for Mr. Paulson’s plan for buying debt from banks. Why not? We do it for farmers. Why not for the individual homeowner? Oh, right. Because Treasury secretaries don’t know any of those people. Ben Stein is a lawyer, writer, actor and economist. E-mail: ebiz@nytimes.com.

Sarah Palin: She Can't Stop Lying!

http://www.236.com/video/2008/sarah_palin_to_the_nth_power_9002.php

You've already heard it a hundred times. Sarah Palin says she opposed the, "Bridge to Nowhere," but as Charlie Gibson recently pointed out, she was for the Bridge before she was against it. Well, facts don't matter in a presidential campaign, so Palin's been repeating the story at every public appearance. She seems to have forgotten about a little invention called the video camera.

We didn't.

A Post Turtle

While suturing a cut on the hand of a 75-year old Texas rancher whose hand was caught in a gate while working cattle, the doctor struck up a conversation with the old man. Eventually the topic got around to Sarah Palin and her bid to be a heartbeat away from being President.

The old rancher said, 'Well, ya know, Palin is a post turtle.'

Not being familiar with the term, the doctor asked him what a post turtle was. The old rancher said, 'When you're driving down a country road and you come across a fence post with a turtle balanced on top, that's a post turtle.' The old rancher saw a puzzled look on the doctor's face, so he continued to explain. 'You know she didn't get up there by herself, she doesn't belong up there, she doesn't know what to do while she is up there, and you just wonder what kind of dumb ass would put her up there to begin with.

When Atheists Attack!

http://www.newsweek.com/id/160080/page/1
When Atheists Attack
A noted provocateur rips Sarah Palin—and defends elitism.

Sam Harris
NEWSWEEK
From the magazine issue dated Sep 29, 2008
Let me confess that I was genuinely unnerved by Sarah Palin's performance at the Republican convention. Given her audience and the needs of the moment, I believe Governor Palin's speech was the most effective political communication I have ever witnessed. Here, finally, was a performer who—being maternal, wounded, righteous and sexy—could stride past the frontal cortex of every American and plant a three-inch heel directly on that limbic circuit that ceaselessly intones "God and country." If anyone could make Christian theocracy smell like apple pie, Sarah Palin could.

Then came Palin's first television interview with Charles Gibson. I was relieved to discover, as many were, that Palin's luster can be much diminished by the absence of a teleprompter. Still, the problem she poses to our political process is now much bigger than she is. Her fans seem inclined to forgive her any indiscretion short of cannibalism. However badly she may stumble during the remaining weeks of this campaign, her supporters will focus their outrage upon the journalist who caused her to break stride, upon the camera operator who happened to capture her fall, upon the television network that broadcast the good lady's misfortune—and, above all, upon the "liberal elites" with their highfalutin assumption that, in the 21st century, only a reasonably well-educated person should be given command of our nuclear arsenal.

The point to be lamented is not that Sarah Palin comes from outside Washington, or that she has glimpsed so little of the earth's surface (she didn't have a passport until last year), or that she's never met a foreign head of state. The point is that she comes to us, seeking the second most important job in the world, without any intellectual training relevant to the challenges and responsibilities that await her. There is nothing to suggest that she even sees a role for careful analysis or a deep understanding of world events when it comes to deciding the fate of a nation. In her interview with Gibson, Palin managed to turn a joke about seeing Russia from her window into a straight-faced claim that Alaska's geographical proximity to Russia gave her some essential foreign-policy experience. Palin may be a perfectly wonderful person, a loving mother and a great American success story—but she is a beauty queen/sports reporter who stumbled into small-town politics, and who is now on the verge of stumbling into, or upon, world history.

The problem, as far as our political process is concerned, is that half the electorate revels in Palin's lack of intellectual qualifications. When it comes to politics, there is a mad love of mediocrity in this country. "They think they're better than you!" is the refrain that (highly competent and cynical) Republican strategists have set loose among the crowd, and the crowd has grown drunk on it once again. "Sarah Palin is an ordinary person!" Yes, all too ordinary.

We have all now witnessed apparently sentient human beings, once provoked by a reporter's microphone, saying things like, "I'm voting for Sarah because she's a mom. She knows what it's like to be a mom." Such sentiments suggest an uncanny (and, one fears, especially American) detachment from the real problems of today. The next administration must immediately confront issues like nuclear proliferation, ongoing wars in Iraq and Afghanistan (and covert wars elsewhere), global climate change, a convulsing economy, Russian belligerence, the rise of China, emerging epidemics, Islamism on a hundred fronts, a defunct United Nations, the deterioration of American schools, failures of energy, infrastructure and Internet security … the list is long, and Sarah Palin does not seem competent even to rank these items in order of importance, much less address any one of them.

Palin's most conspicuous gaffe in her interview with Gibson has been widely discussed. The truth is, I didn't much care that she did not know the meaning of the phrase "Bush doctrine." And I am quite sure that her supporters didn't care, either. Most people view such an ambush as a journalistic gimmick. What I do care about are all the other things Palin is guaranteed not to know—or will be glossing only under the frenzied tutelage of John McCain's advisers. What doesn't she know about financial markets, Islam, the history of the Middle East, the cold war, modern weapons systems, medical research, environmental science or emerging technology? Her relative ignorance is guaranteed on these fronts and most others, not because she was put on the spot, or got nervous, or just happened to miss the newspaper on any given morning. Sarah Palin's ignorance is guaranteed because of how she has spent the past 44 years on earth.

I care even more about the many things Palin thinks she knows but doesn't: like her conviction that the Biblical God consciously directs world events. Needless to say, she shares this belief with mil-lions of Americans—but we shouldn't be eager to give these people our nuclear codes, either. There is no question that if President McCain chokes on a spare rib and Palin becomes the first woman president, she and her supporters will believe that God, in all his majesty and wisdom, has brought it to pass. Why would God give Sarah Palin a job she isn't ready for? He wouldn't. Everything happens for a reason. Palin seems perfectly willing to stake the welfare of our country—even the welfare of our species—as collateral in her own personal journey of faith. Of course, McCain has made the same unconscionable wager on his personal journey to the White House.

In speaking before her church about her son going to war in Iraq, Palin urged the congregation to pray "that our national leaders are sending them out on a task that is from God; that's what we have to make sure we are praying for, that there is a plan, and that plan is God's plan." When asked about these remarks in her interview with Gibson, Palin successfully dodged the issue of her religious beliefs by claiming that she had been merely echoing the words of Abraham Lincoln. The New York Times later dubbed her response "absurd." It was worse than absurd; it was a lie calculated to conceal the true character of her religious infatuations. Every detail that has emerged about Palin's life in Alaska suggests that she is as devout and literal-minded in her Christian dogmatism as any man or woman in the land. Given her long affiliation with the Assemblies of God church, Palin very likely believes that Biblical prophecy is an infallible guide to future events and that we are living in the "end times." Which is to say she very likely thinks that human history will soon unravel in a foreordained cataclysm of war and bad weather. Undoubtedly Palin believes that this will be a good thing—as all true Christians will be lifted bodily into the sky to make merry with Jesus, while all nonbelievers, Jews, Methodists and other rabble will be punished for eternity in a lake of fire. Like many Pentecostals, Palin may even imagine that she and her fellow parishioners enjoy the power of prophecy themselves. Otherwise, what could she have meant when declaring to her congregation that "God's going to tell you what is going on, and what is going to go on, and you guys are going to have that within you"?

You can learn something about a person by the company she keeps. In the churches where Palin has worshiped for decades, parishioners enjoy "baptism in the Holy Spirit," "miraculous healings" and "the gift of tongues." Invariably, they offer astonishingly irrational accounts of this behavior and of its significance for the entire cosmos. Palin's spiritual colleagues describe themselves as part of "the final generation," engaged in "spiritual warfare" to purge the earth of "demonic strongholds." Palin has spent her entire adult life immersed in this apocalyptic hysteria. Ask yourself: Is it a good idea to place the most powerful military on earth at her disposal? Do we actually want our leaders thinking about the fulfillment of Biblical prophecy when it comes time to say to the Iranians, or to the North Koreans, or to the Pakistanis, or to the Russians or to the Chinese: "All options remain on the table"?

It is easy to see what many people, women especially, admire about Sarah Palin. Here is a mother of five who can see the bright side of having a child with Down syndrome and still find the time and energy to govern the state of Alaska. But we cannot ignore the fact that Palin's impressive family further testifies to her dogmatic religious beliefs. Many writers have noted the many shades of conservative hypocrisy on view here: when Jamie Lynn Spears gets pregnant, it is considered a symptom of liberal decadence and the breakdown of family values; in the case of one of Palin's daughters, however, teen pregnancy gets reinterpreted as a sign of immaculate, small-town fecundity. And just imagine if, instead of the Palins, the Obama family had a pregnant, underage daughter on display at their convention, flanked by her black boyfriend who "intends" to marry her. Who among conservatives would have resisted the temptation to speak of "the dysfunction in the black community"?

Teen pregnancy is a misfortune, plain and simple. At best, it represents bad luck (both for the mother and for the child); at worst, as in the Palins' case, it is a symptom of religious dogmatism. Governor Palin opposes sex education in schools on religious grounds. She has also fought vigorously for a "parental consent law" in the state of Alaska, seeking full parental dominion over the reproductive decisions of minors. We know, therefore, that Palin believes that she should be the one to decide whether her daughter carries her baby to term. Based on her stated position, we know that she would deny her daughter an abortion even if she had been raped. One can be forgiven for doubting whether Bristol Palin had all the advantages of 21st-century family planning—or, indeed, of the 21st century.

We have endured eight years of an administration that seemed touched by religious ideology. Bush's claim to Bob Woodward that he consulted a "higher Father" before going to war in Iraq got many of us sitting upright, before our attention wandered again to less ethereal signs of his incompetence. For all my concern about Bush's religious beliefs, and about his merely average grasp of terrestrial reality, I have never once thought that he was an over-the-brink, Rapture-ready extremist. Palin seems as though she might be the real McCoy. With the McCain team leading her around like a pet pony between now and Election Day, she can be expected to conceal her religious extremism until it is too late to do anything about it. Her supporters know that while she cannot afford to "talk the talk" between now and Nov. 4, if elected, she can be trusted to "walk the walk" until the Day of Judgment.

What is so unnerving about the candidacy of Sarah Palin is the degree to which she represents—and her supporters celebrate—the joyful marriage of confidence and ignorance. Watching her deny to Gibson that she had ever harbored the slightest doubt about her readiness to take command of the world's only superpower, one got the feeling that Palin would gladly assume any responsibility on earth:

"Governor Palin, are you ready at this moment to perform surgery on this child's brain?"

"Of course, Charlie. I have several boys of my own, and I'm an avid hunter."

"But governor, this is neurosurgery, and you have no training as a surgeon of any kind."

"That's just the point, Charlie. The American people want change in how we make medical decisions in this country. And when faced with a challenge, you cannot blink."

The prospects of a Palin administration are far more frightening, in fact, than those of a Palin Institute for Pediatric Neurosurgery. Ask yourself: how has "elitism" become a bad word in American politics? There is simply no other walk of life in which extraordinary talent and rigorous training are denigrated. We want elite pilots to fly our planes, elite troops to undertake our most critical missions, elite athletes to represent us in competition and elite scientists to devote the most productive years of their lives to curing our diseases. And yet, when it comes time to vest people with even greater responsibilities, we consider it a virtue to shun any and all standards of excellence. When it comes to choosing the people whose thoughts and actions will decide the fates of millions, then we suddenly want someone just like us, someone fit to have a beer with, someone down-to-earth—in fact, almost anyone, provided that he or she doesn't seem too intelligent or well educated.

I believe that with the nomination of Sarah Palin for the vice presidency, the silliness of our politics has finally put our nation at risk. The world is growing more complex—and dangerous—with each passing hour, and our position within it growing more precarious. Should she become president, Palin seems capable of enacting policies so detached from the common interests of humanity, and from empirical reality, as to unite the entire world against us. When asked why she is qualified to shoulder more responsibility than any person has held in human history, Palin cites her refusal to hesitate. "You can't blink," she told Gibson repeatedly, as though this were a primordial truth of wise governance. Let us hope that a President Palin would blink, again and again, while more thoughtful people decide the fate of civilization.

Harris is a founder of The Reason Project and author of The New York Times best sellers “The End of Faith” and “Letter to a Christian Nation.” His Web site is samharris.org.