Conservative ReviewIssue #42 Kukis Digests and Opines on this Week’s News and V iews September 28, 2008

In this Issue:

Missing Issues

Question for Obama

Quote of the Week

Quote of the Week #2

Quote of the Week #3

Vids of the Week

Predictions

Told You So

Community Reinvestment Act

Observation of the Week

Observation of the Week #2

Observation of the Week #3

Missing Headlines

Snooze-fest Debate

Tax Breaks for 95% of All Americans

Obama Lies

Bush Tax Cuts for the Rich

Allow Me to Be Sexist for a Moment

Insane Palin Haters

Obama, Community Organizer by Michelle Malkin

Obama Puts Lipstick on a Pig

Freddie Mac and Fannie Mae

We Need to Protect Main Street

What I Don’t Quite Understand

Solutions to the Credit Crunch

Links (Including several great Palin links)

The Rush Section

Bill Clinton Drops Neutron Bombs on Obama

The Government wants your Home

Obama Teleprompter Trick

The Fringe Left Support Barry

Call Me if You Need Me

More Clinton Bombs

Media Reaction to the Debate

Obama’s Corrupt Campaign Advisors

More from Bill Clinton

Rush on the Financial Crisis

Rush Advices McCain: Turn Sarah Loose

Desperate Obama Supporters

Dems Have the Votes and Bush; Why not do the$700 Billion Bailout?

Additional Rush Links

Too much happened this week! Enjoy...

The cartoons come from: www.townhall.com/funnies.

If you receive this and you hate it and you don’twant to ever read it no matter what...that is fine;email me back and you will be deleted from mylist (which is almost at the maximum anyway).

I do not accept any advertising nor do I charge forthis publication.

It is a long issue today; I had a lot to say, andmany hours sitting around in the dark to think. You have been forewarned.

Missing Issues

Living in Texas sometimes has its drawbacks, andone of them was named Ike. This is my 9 dayth

without electricity, cable or internet. I do have agenerator, which allows me to use one

appliance/device at a time. The gas line I was intoday took nearly 2 hours, reminding me of thegood old Carter days.

There are about 6 million people in Harris County,and I heard that 4–4.5 million were withoutelectricity (that would include those outside ofHarris county, down Galveston way).

Like most people, I am not sitting on my buttwaiting for FEMA to knock on the door and askme if there is anything that I need. I might dothat if I was working on a comedy routine.

I live about a 3 hour drive from where Ike madelandfall, and once it hit shore, it traveled quicklynorth to my house. It made the trip in 6 or 7hours. I slept though much of it, but in talking tovarious people, it was an exciting night. Onecouple, looking out their 2 story window, wouldnd

sometimes see their trees and sometimes not,the wind blowing them completely out of sight.

I have since found out that this storm went all theway up to Ohio, disturbing the peaceful life ofsome of my relatives up there.

That night, when the eye was overhead (whichmeans, it is quiet—no rain and no wind), I couldsee something laying on my back porch. Since itwas not a body, I didn’t worry too much about it. The next morning, I found that a 35' tree at thecorner of my house had fallen and taken out mynewly built 2 floor deck. nd

In the time since then, government has steppedup, to some degree. I have seen with my owneyes government handouts at one church. However, most of the subsequent response fromindividuals has been, clean up your own yard,help your neighbor, buy a buttload of generatorsand sell them by the side of the road. Wal-Martsold about a million 3 gallon gas cans. When itcame to moving people out of Galveston, thegovernment did an excellent job. There was nofinger-pointing, and probably Shirley Jackson Lee

managed to get on TV two dozen times,something she likes to do. However, in theaftermath, most of the cleanup and progress wasmade by the utilities companies (a branch of bigoil), large conglomerates (also known as Wal-Mart, HEB, Kroger, various gas stations) andindividuals. It is how Americans should function;not waiting for Uncle Sam to come along and say,“I feel your pain” and give me a packet of rationswhich will last me for a day.

Most of you probably know more about thestorm than I do, since I was 13 days withoutelectricity and 14 days without cable televisionand internet. I discovered something calledreading, which I may try again sometime.

This is across the street from me.

Questions for Obama

Will you immediately release all the records ofthe Annenberg Challenge to Stanley Kurtz? Willyou hold a press conference and take any and allquestions on the Annenberg Challenge?

You have spoken of your community organizingefforts when it came to helping people hold onto

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their homes and helping them retrain for jobs. Could you produce 12 people to vouch for this?

[From what I have read, Obama’s communityorganizing had a lot more to do with registeringmore people to vote Democrat than anythingelse; it appears as though he worked under theauspices of ACORN].

I have never heard you use the words victory orwin in the same sentence with Iraq. Why is that?

Quote of the Week

“If a business is so large that, their going out ofbusiness will cause a depression and therefore,requires a government bail-out, that business istoo large.” Some call-in dude to a radio show.

Quote of the Week #2

80% of Americans believe that the top tax rateought to be 20% or lower. There is a tax groupwhere this comes from, but you are going to haveto find it.

Quote of the Week #3

Joe Biden, a week ago Saturday: "Barack Obamaain't taking my shotguns, so don't buy thatmalarkey. If he tries to fool with my Beretta, he'sgot a problem."

Rush comments: Now, I'm wondering if the SecretService called Biden and said, "Did you justthreaten the Democrat presidential nominee?"

Vids of the Week

Biden tells about how FDR, as president, got ontv to soothe the public about the stock marketcrash:

http://www.youtube.com/watch?v=Glrnb_G34E4

There needs to be a 24-hour all Biden televisionstation.

Predictions

I have said for several weeks now that McCain isgoing to beat Obama badly. The polls for awhilehave been moving in that direction, but they havereversed themselves. Most commentators keepsaying this election is too close to call. It isn’t.

I suggested that Obama may dump Biden fromthe ticket and add Hillary Clinton. This was notoriginal with me, but I am leaning more and moretowards this as a possible October surprise. Maybe not the October surprise, but one of them. Biden would have to drop out of the race andmake it seem as though this was completely ofhis own volition to do so. Obama would have hadto promise him a sweet place to go (FNMA?). Such a change will boost Obama’s numbers, butnowhere near enough at this point to put himback in the running. Had he chosen Hillary from

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the get-go (his first big decision), he would havemade this a close election.

At some point in the campaign, McCain willreveal to us that one of most important assets oftheir ticket is, he and Palin are not lawyers, sothat when you ask them a question, you usuallyget a clear answer to question asked. Maybethey will run an ad entitled, the People versus theLawyers. Disclosure: I will recommend to theMcCain campaign that they do this; and theyalways listen to me. (

Ultra-environmental California will start drillingoffshore within the next couple years. They aretoo much in debt to do anything else. You cannothire hundreds of thousands of tax collectors andstate workers, all of whom must be paid asubstantial retirement, and make it work. Theyare finding this out. A smart move for Californiawould be to scrap its state income tax system andinstitute a high sales tax. They won’t do this,because that makes too much sense. A stateincome tax is just not cost-effective, consideringthe salaries, state buildings, infra-structure andretirement which is a part of this package. Itwould be interesting to see how much money isspent in California versus how much is collectedthere. In any case, financially, California has nochoice. They either have to be smart about theirtax system or they have to drill. They will drill. What will make this interesting is, how will theydeal with being knee-deep in lawsuits fromenvironmentalists?

[A disclaimer: I do not have the gift ofprophecy—no one does at this time—but theseare reasonable predictions based upon thepolitical climate and being able to read thehistorical trends of the day]

Told You So

Although drilling for domestic oil is an extremelyimportant issue, it won’t be a major issue in the

presidential campaign. We are moving closer andcloser to off-shore drilling and, I hope, nuclearpower. All along, I told you the Dems would cavehere, and they are. Even their non-drilling drillingbill went down in defeat, like much of what theyattempt to do.

I have continually told you that one of the biggestproblems with the mortgage industry is theridiculous loans made for social justice withoutbusiness considerations (like, will they pay on theloan). This is finding its way more into the media. And, as I have said, this are not the only reason,but it is a significant one.

Community Reinvestment Act

By the way, in case you are interested, thepertinent legislation involved is known as theCommunity Reinvestment Act. It was passedback in 1977, but Bill Clinton, in 1993 (with aDemocratic Congress) changed up the rules ofthis act, so that more income groups and raceshad a shot at home ownership, in spite of havinglousy credit. George Bush tried to fix thisproblem back in 2003, but it was not passed,failing on pretty much a party-line vote. Representative Barney Frank (D-MA) claimed ofthe thrifts "These two entities-Fannie Mae and

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Freddie Mac-are not facing any kind of financialcrisis, the more people exaggerate theseproblems, the more pressure there is on thesecompanies, the less we will see in terms ofaffordable housing."

Observation of the Week

The biggest difference between New Orleansduring Katrina and Galveston during Ike: almosteveryone was evacuated from Galveston Island,so those who needed rescuing were in thedozens. In New Orleans, thosewho needed rescuing were inthe thousands. Buses andshelters and police were areinvolved in moving people fromGalveston and other areasalong the Texas coast; for NewOrleans, no such provision wasmade. Police and bus driverswere told that they could justleave and go wherever. Nothought was given to, whathappens when thousands ofpeople show up to the dome,where there are no provisionsfor them.

Observation ofthe Week #2

For the storm before Ike, whichhit New Orleans, the big difference was,Louisiana’s finger-pointing governor had beenreplaced by Bobby Jindal, who worked with theother 4 Republican governors in the area, andwith the local mayors (who have realresponsibilities). No finger-pointing, and peoplewere evacuated, and shelters were madeavailable in the neighboring states. It’s howgovernment ought to work.

Observation of the Week #3

Michael Medved pointed out that the 3 states todo the best economically from 1996 to 2006were Florida, Texas, and Arizona, all right to workstates. Those states which did the worst: Illinois,Michigan and Ohio. Which of those states leantoward being the most conservative? Which ofthose states tend to be the most liberal? Itshould not be a shock that, the more that a statetaxes business, the more likely these businessesrelocate—not overseas, by the way, but generallyto a different state.

Missing Headlines

Congress Investigates FNMA and FHLMC forgovernment Corruption (they should, but theyaren’t).

Biden says, FDR on TV in 1929

http://hotair.com/archives/2008/09/23/biden-on-fdrs-management-of-the-1929-crash/

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Come, let us reason together....

Snooze-fest Debate

I watched the debate the other night with Paul,and, apart from the margaritas, I am not quitecertain that we could have sat through all of it. Itreminded me of two lumbering heavyweights,doing a lot of footwork in the ring, but neitherone landing many punches, with a split-decisiontie at the end.

Neither candidate delivered a knock-out punch;neither candidate was all that inspiring. Mymother, who watched this on public TV, told methat most of the commentators believed Obamato be the winner (“They have republicans too,Gary”). I suspect that she believes that the newsis generally unbiased as well (apart fromFoxNews, of course).

Paul and I watched the commentary on FoxNews,and every time a new commentator came up, Iwould tell Paul, “This guy is really good.” None ofthem made the after-debate commentary muchmore interesting. Even the great CharlesKrauthammer said something which wasaltogether forgettable. All of their conservativecommentators thought McCain won and all oftheir liberal commentators thought that Obamawon. That was quite shocking.

The most interesting segment was with FrankLuntz, who has groups of 30 or so mixed voterswho voice their opinions (calling itinteresting might be stretching things somewhat). A couple of these people said how Obama cameacross as caring more for the common man. Iwonder if any of them are aware of how muchObama cares about his half-brother GeorgeObama?

I can’t see that either candidate wooed anyonefrom the other camp; I doubt that manyindependents were captured either, unless they

already had leanings one way or the other andthis confirmed their leanings.

The host was good and quite fair, and he allowedfor longer answers without giving the twocandidates a countdown or a yellow/red light. Hetried to get the candidates to debate with oneanother, but neither one seemed to be game forthat (although my mom tells me that Obamawas).

Almost everything which McCain said, I haveheard him say before. I think that all of hisspeech writers did is encourage him to say,“Senator Obama just does not understand this...”However, they did not write him any new linesnor did he come up with any (apart from a joke,which I have since forgotten).

I guess that Obama’s handlers told him to say,“Well, John is right about that...” eight times? Obama was well-prepped, and did not say, “Uhuh uh” at all. His constant misuse of the Englishlanguage (like, gonna) got on my nerves, but thatcould be that I just don’t care much for Obama inthe first place. This is not much different thanliberals who cringe when they hear Bush’s voice(actually, the voices which make me cringe themost are Dodd’s, Kerry’s and Gore’s, in thatorder; Obama is nowhere near that viscerallyirritating to me yet).

Obama, when challenged thrice to nameprograms which he would cut or reduce, finallymade it clear that there were 3 new programswhich had to be added to the list of things whichmust be done (free medical coverage, earlychildhood education, and one other one—notlittle programs). McCain on this point, at least,offered up an across-the-board spending freeze(with the exception of the military, veteransbenefits, and one other thing).

Obama left several openings for McCain, andMcCain never took these openings. He needs togo after Obama’s ridiculous assertion that he will

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provide tax cuts for 95% of Americans. McCainleft that unchallenged, and that was a bigmistake.

Another opening was about regulating FNMA andFHLMC—when Obama went off on this, McCainshould have reminded him that McCain didsupport dealing with these institutions years ago,but Obama has no such history.

Besides hearing from my mom who won thedebate, I heard CNN give their opinion. Theytook a survey an came up with 51% Obama and38% McCain. However, they admitted that moredemocrats than republicans responded, so maybeit was about even. However, they quickly added,since Obama is ahead in the polls, that wouldmake him the winner of the debate. Thank you,CNN, for you excellent unbiased coverage. I hopethat the shivers running up and down your legsover this Obama victory have subsided by now.

FoxNews had a dial-in poll (who on earth wouldparticipate in something like this?). It was 86%who thought McCain won the debate. FoxNewsmentioned this, but quickly moved on.

Palin and Biden are next week. Next to Graveland Kucinich, Biden is the most interestingDemocrat to listen to. Even though a lot of whathe says, he doesn’t mean, he sounds as if hedoes. Also, Biden won’t be handled, so he willsay anything that pops into his head, including,“Hillary might have been a better choice for vicepresident.” Given Biden going off the reservationand Palin being new to national politics, and alsoless-disciplined, this might be the bright light ofthe debate series.

Tax Breaks for 95% of All Americans

McCain needs to hit Obama hard on this. Smallbusinesses, which provide many of our jobs, filetaxes on individual tax forms. Most of thesebusinesses make more than $250,000/year

(Obama’s cut off between being middle-class andrich). I have heard the number that 2 out of 3 taxreturns in this rich class are actually businesses. I have not confirmed that elsewhere. What is theeffect of taxing small businesses big time? Someof them will be closed down, most will not beable to do additional hiring, and their profit linewill be cut back considerably. This is more thanclass warfare; it is an attack on small businessesand freedom.

Obama Lies

Obama has claimed that he is only going to taxthe top 5%, that there are 3 programs which areabsolutely necessary for him to put through(public pre-kindergarten education andgovernment health care are two of them) and heclaims that no one will be taxed more than theywere taxed under Ronald Reagan. He has alsopromised that he will run a pay-as-you-goadministration.

Reagan brought down the top tax rate to 28%. Obama wants it higher. He is lying.

Raising the rate on 5% of American population inorder to fund his programs. Raising the interestrate a few percentage points on this 5% will comeno where near covering the cost of Obama’s top3 programs. Furthermore, as we have seen in thepast, raising taxes will not even guaranteeadditional income for the government. It willguarantee a business slow-down, and possibly arecession.

McCain needs to run ads on these quotes, allavailable on YouTube, and show, in 30 seconds,that Obama is lying.

Bush Tax Cuts for the Rich

This is one of the biggest lies perpetrated on thepublic. 40% of Americans do not pay taxes (apart

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from their FICA taxes). So, anyone who lowerstaxes is lowering taxes for the top 60% ofAmerican wage earners. Technically, all taxbreaks are tax cuts for the rich.

Obama is promising tax breaks to those in thislower 40%. This means, he wants thegovernment to cut them a check for$500–$1000—people who have not paidtaxes—which money comes out of the pocket ofthose who pay taxes. This is called incomeredistribution, and, in some churches, socialjustice.

Allow Me to Be Sexist for a Moment

I’ve known women pretty much all my life andsome of my best friends are women. In fact, onemember of my family is a woman! However,women are quite different than men are. Women can be quite catty toward one another,particularly when they perceive themselves asbeing in an ingroup, and the person they don’tlike, they see as being in some outgroup. Haveyou ever watched a pack of wolves attack anddestroy the weak wolf of the litter? Same deal,except wolves are generally a lot nicer about it.

When I read through these criticisms of SarahPalin by liberal feminists, I suddenly realized,these women aren’t acting any different thanthere 16 year-old counterparts, except that theirvocabulary is more extensive. Sarah is not intheir group, and they are jumping all over her andsaying any angry thing which comes into theirpretty little feminist heads.

Maureen Dowd writes: As more and moretitillating details spill out about the Palins,Republicans riposte by simply arguing that thingslike Todd's old D.U.I. arrest or Sarah's messyfamily vengeance story will just let them relatebetter to average Americans - unlike the loftyObamas.

I think the problem is this: they have spelled outwhat it means to be a good feminist. They havemade it clear that there is a way that you climbthe ladder up to the top, which is by following intheir footsteps and being like them. Sarah isn’tlike this.

Feminists will never celebrate Sarah becomingvice president and then president. If she gets ahigh approval rating here, like in Alaska, it won’tinclude these catty lib-gals.

Do you remember when Clarence Thomasbecame a chief justice? Even Obama disparagedhis being chosen. Obama was about to say, “Heshould not have been appointed because he didnot have enough experience” but he caughthimself and said something else. Liberalsattacked Clarence Thomas in every way that theycould, but he stood firm, realizing that he wouldnever been seen as a Black man who broke asignificant color barrier.

Unless you are one of them, your achievementsjust don’t count.

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Insane Palin Haters

Naomi Wolfe warns us that Sarah Palin is thedesignated muse of the coming American policestate.

Wolf tells us: You have to understand how thingswork in a closing society in order to understand"Palin Power." A gang or cabal seizes power,usually with an affable, weak figurehead at thefore. Then they will hold elections -- but they willmake sure that the election will be corrupted andthat the next affable, weak figurehead is entirelyin their control...I realized early on with horrorwhat I was seeing in Governor Palin: thecontinuation of the Rove-Cheney cabal, but thistime without restraints...Palin is embracinglawlessness in defying Alaskan Legislaturesubpoenas --this is what Rove-Cheney, and notMcCain, believe in doing. She uses mafia tacticsagainst critics, like the police commissioner whowas railroaded for opposing handguns in Alaskanbattered women's shelters...Palin is theFrankenBarbie of the Rove-Cheney cabal..

She goes on: Reputable dermatologists arediscussing the fact that in simply actuarialterms, John McCain has a virulent andlife-threatening form of skin cancer. It is theelephant in the room, but we must discuss thehealth of the candidates: doctors put survivalrates for someone his age at two to four years.I believe the Rove-Cheney cabal is using SarahPalin as a stalking horse, an Evita figure, to puta popular, populist face on the coming policestate and be the talk show hostess for the end ofelections as we know them. If McCain-Palin getin, this will be the last true American election.She will be working for Halliburton, KBR, Roveand Cheney into the foreseeable future -- for adecade perhaps -- a puppet "president" for thesame people who have plundered our treasure,are now holding the US economy hostage andwho murdered four thousand brave young menand women in a way of choice and lies...In

McCain-Palin's America, citizens who areprotesting are being charged as terrorists. Thismeans that a violent war had been declared onAmerican citizens. A well known reporter leakedto me on background that St Paul police haddressed as protesters and, dressed in Black --shades of the Blackshirts of 1920 -- infiltratedprotest groups. There were also phalanxes of menin black wearing balaclavas, linking arms andbehaving menacingly -- alleged "anarchists." Letme tell you, I have been on the left for thirty yearsand you can't get three lefties to wear the samet-shirt to a rally, let alone link arms and wearidentical face masks: these are not our guys.Agent Provocateurs framing protesters andcalling protest "terrorism" constitutes step ten ofa police state.

Naomi Wolf goes on and on and on about thegreat police state which will come about is SarahPalin is elected. 50 years from now, people willlook back on this essay and not be able todetermine whether it is serious or satire.

The rest of the article:

http://www.huffingtonpost.com/naomi-wolf/the-battle-plan-ii-sarah_b_128393.html

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Also, on Huffington post is an article by Eve Enslerentitled Drill Drill Drill. She begins by saying: I amhaving Sarah Palin nightmares. I dreamt last nightthat she was a member of a club where they rodesnowmobiles and wore the claws of drowned andstarved polar bears around their necks. I have aparticular thing for Polar Bears. Maybe it's theirsnowy whiteness or their bigness or the fact thatthey live in the arctic or that I have never seenone in person or touched one. Maybe it is the factthat they live so comfortably on ice. Whatever itis, I need the polar bears.

She goes on: Everything Sarah Palin believes inand practices is antithetical to Feminism which forme is part of one story -- connected to saving theearth, ending racism, empowering women, givingyoung girls options, opening our minds,deepening tolerance, and ending violence andwar.

Sarah believes in her family, in her husband, inpreserving life; and, after getting involved inpolitics at the most grass roots level, the PTA, shemoved up the ladder, by virtue of her characterand views, to govern the great state of Alaska,with an 80% approbate rating. It is no wonderthat Eve Ensler is so concerned about setting thewoman’s movement back several decades.

She goes on, listing some of Palin’s most grievouspositions: Sarah Palin does not believe inabortion....She obviously does not believe in sexeducation or birth control...Sarah Palin does notmuch believe in thinking...Sarah believes inguns...Sarah believes in God. I guess that means,off-the-charts certifiable.

Ensler closes with: I write to my sisters. I writebecause I believe we hold this election in ourhands. This vote is a vote that will determine thefuture not just of the U.S., but of the planet. Itwill determine whether we create policies to savethe earth or make it forever uninhabitable forhumans...If the Polar Bears don't move you to goand do everything in your power to get Obama

elected then consider the chant that filled the hallafter Palin spoke at the RNC, "Drill Drill Drill." Ithink of teeth when I think of drills. I think ofrape. I think of destruction. I think of domination.I think of military exercises that force mindlessrepetition, emptying the brain of analysis, doubt,ambiguity or dissent. I think of pain.

Do we want a future of drilling? More holes in theozone, in the floor of the sea, more holes in ourthinking, in the trust between nations andpeoples, more holes in the fabric of this preciousthing we call life?

This article needs a soundtrack, perhaps with acello and a violin, with the cries of polar bears offin the distance, as Sarah Palin rips apart one ofthem with her bare hands and eats its raw stillpulsating flesh.

The entire article is found here:

http://www.huffingtonpost.com/eve-ensler/drill-drill-drill_b_124829.html

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An election, which has been quite entertaining upuntil now, has just become even more so. I loveit when women’s libbers come to their time ofthe month. They are far more entertaining thanI had ever realized. (

On a more serious note, this Ensler has not a whitof concern for the millions of babies/fetusesdestroyed—some of whom even fight to liveafter emerging from the womb; but, you kill apolar bear, and that is where she draws the line.

Obama, Community Organizerby Michelle Malkin

These are excerpts from a recent Michelle Malkincolumn:

Let me clarify something. Nobody is mockingcommunity organizers in church basements andcommunity centers across the country working toimprove their neighbors' lives. What deservesridicule is the notion that Obama's brief stint as aSouth Side rabble-rouser for tax-subsidized,partisan nonprofits qualifies as executiveexperience you can believe in.

What deserves derision is "communityorganizing" that relies on a community ofhomeless people and ex-cons to organize for thepurpose of registering dead people to vote,shaking down corporations and using the racecard as a bludgeon.

As I've reported previously, Obama's communityo r g a n i z i n g d a y s i n v o l v e d t r a i n i n ggrievance-mongers from the far-left ACORN(Association of Community Organizations forReform Now). The ACORN mob is infamous for itsbully tactics (which they dub "direct actions");Obama supporters have recounted his role inorganizing an ambush on a government planningmeeting about a landfill project opposed byChicago's minority lobbies.

The entire article is found here:

http://townhall.com/columnists/MichelleMalkin/2008/09/05/why_obamas_community_organizer_days_are_a_joke?page=full&comments=true

Freddie Mac and Fannie Mae

Let me see if I can explain these institutionsagain, and give some clue as to how things havegotten so screwed up.

FHLMC and FNMA are both part-private, part-governmental agencies which represent the bulkof the secondary mortgage market, somethingwhich most people never knew existed.

First problem, no company should be part-government and part-private.

Your mortgage company makes money, not byyou sending them money every month, but bymaking loans and charging you way too much forall of these closing charges. However, at somepoint in time, they are going to run out of moneyto lend out. So, the secondary mortgage marketwas set up to deal with that. A mortgagecompany will package up a $100 million group ofloans, sell them on the secondary mortgagemarket, and use the new money to lend outagain. What I assume is, FHLMC and FNMA havedeals with the government to get bunches of

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more money, which can be used to purchasethese loans, so that more loans can be made.

When your loan is packaged and sold, they maycontinue to hold the loan and service the loan(collect the payments and disburse the funds) orthe loan may end up in the hands of anothermortgage company which services the loan, butFHLMC or FNMA actually now hold the loanthemselves.

Now, mortgage-backed securities are sold, whichis also a source of money used to buy more loans.

My understanding is, the government essentiallyappoints the upper echelon of these multi-billiondollar companies. Second problem, governmentshould not be involved will billions of dollarswhenever a private company could do the samething. Third problem, the government should nothave any input on who is hired or fired. The dealis, most people in government really have no ideahow to run anything. If they did, they would beout running their own business. Apreponderance of them are lawyers, who do notrun businesses, but they do know how to legallysteal from people (John Edwards is a primeexample of this). Quite obviously, some peopleare going to be put in charge as a political favor. Fourth problem: no one should be appointed tohead a company worth billions of dollars as theresult of a political favor.

Here is one of the biggest problems when itcomes to a lawyer with a business. He might beable to figure out way to obfuscate the truth withlanguage (something politicians are known for),but he does not necessarily understand how tomake a business work or how to make money. The government is not a money-makingorganization; they are a money-takingorganization. If they come up with some greatplan, and they do not sufficiently fund it (whichoccurs most of the time), then they simply voteon more money to go to this project. Problemsolved. But this is not how a business works. A

business must make money, a public business isbeholden to shareholders to make money, andthey cannot call in a political favor (in most cases)to just get more money to work with.

So, should government become more involved inFNMA or FHLMC? Hell no! Should governmentbail them out? Again, hell, no. What happens tomany failing companies? They are sold off inpieces. FNMA and FHLMC are too large as it is. Their loans need to be sold to individualcompanies who wish to act as completely privatesecondary mortgage market organizations. Thegovernment should set up some sensibleregulations for these companies (how muchmoney should they have on hand; how muchthey can sell of mortgaged backed securities;etc.). These can be completely private or publiccompanies, but the government needs to get outof it.

Sixth problem with FHLMC and FNMA:government gets involved in stupid socialprograms, and one of them was the idea thateveryone, no matter what, should be allowed tobuy a home. Bad credit? No problem. Nomoney? No problem. This is flat out stupid andno one in the business world would ever do sucha thing. If they did, and it was a publically traded

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company, they would be thrown in jail. However,under Clinton, there was a loosening of the creditto the point that people who had no money andbad credit could actually get a home loan, if theywere poor enough and/or fit a certaingovernment-chosen demographic. I personallyknow people who got in on this. This does nottake an Einstein to figure out what will happenwhen you loan someone money who has a badcredit record or if you loan someone more moneythan they can afford to pay back. They willdefault on the loan.

Let me explain something about an investor loan,which I have gotten. Most of the time, I have tocome up with 20–40% of the value of the housein order to buy it (or to refinance a loan). Thismeans I have a lot of my money invested into thishouse. For this reason, I am not going to just letthe house go back to the bank—that representstoo much work to just let it go. A person whoput 0% down, who finds out that if he stopspaying, he has 4–6 months to stay in the houseand not pay a dime, and if that person has badcredit, what do you think he will do?

This means that, at some point in time, FHLMCand FNMA are going to own a significant numberof loans where the buyer has defaulted. Now, ifI default on one of my loans, the note holder caneasily come in, sell it as a foreclosure, and evenmake money most of the time (since they arefinancing only 60–80% of the home). But if theyhave financed 100% of the house and have 6months of unpaid back payments, and spendanother several months acquiring title on thehouse and another few months marketing thehouse, they can end up with a net loss of$10,000–30,000 easily. Since a mortgage onlybrings in 5–8%, when 4% of your loans representa $20,000 loss for each one of those loans, yourcompany has gone belly-up (unless thegovernment decides to just give you money).

Seventh problem: the government appointedmanagement has made a lot of money. They

don’t go to work for FNMA or FHLMC and make$100,000 salaries; they make millions of dollars,also a drain on the company.

Eighth problem: these companies turn aroundand give money to political parties and politicalcandidates.

To sum up: no need to run these companies withany fiscal responsibility, because government willstep in and inject more money into them. Sincethere is so much money, it goes out to theircorporate heads, who have no business runningthi organization in the first place, and to politicalcandidates (like Obama and Dodd, for instance). And government involvement takes a badsituation and makes it worse by trying out stupidsocial programs.

Ninth problem: where are the indictments? Where is the investigation? Congress and themedia got super-self-righteous when it came toEnron (and a lot of innocent people gotprosecuted, by the way); what about FHLMC andFNMA? Why aren’t they investigated and whyaren’t those who were dishonest brought up oncharges? When will their their business practices be brought to light? What was the criteria forputting some of these people in managementpositions and what did they do with their powerand position?

We Need to Protect Main Street

Obama has been saying, “We need to not onlylook out for Wall street, but we need to look outfor main street” with reference to the FHLMC andFNMA secondary mortgage market. His minionsalways scream in ecstasy when they hear thisline. It is one of the stupidest things which hesays. I work hard to pay my mortgage paymentson time. Most of the people I know work hard topay their mortgage payments. I do not want topay the mortgage payments for some bozo whois not making his payments.

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What I Don’t Quite Understand

No institution can make money off a 5–7%interest loan, even if there is a 99% chance thatthey will be paid on time until the debt is gone. There is just not enough money there to makethat worthwhile, after taking into considerationthe cost of debt servicing. Somehow, and I havenot heard this explained yet, mortgagecompanies and the secondary mortgage marketmust have some very special laws (similar tobanks) which allow them to deal with mortgageownership similar to a homeowner. Homeownership via a mortgage is what is known as aleveraged investment. That is, if I put $10,000down on a $100,000 house, the value of thehouse increases based upon the value of thehouse, and not based upon how much money Ihave in the house. So, let’s say a house goes up10% during a very good year. I have thendoubled my money (I had a 100% return on mymoney, on my $10,000 investment). This is whymany people get rich owning real estate.

Mortgage companies and the secondarymortgage market apparently is allowed to havemuch less money on hand than is actuallynecessary. in this way, they make much morethan the 5–7% interest rate which wehomeowners pay.

Part of what makes this work is, the trust thatsomeone will pay their mortgage. At one time,about 99% or more people paid off theirmortgage loans as agreed.

Solutions to the Credit Crunch

Unfortunately, it is not clear to about 40% of thevoting public that the government is not reallycapable of running most businesses. Most of thegovernment is made up of lawyers, many ofwhom make money by taking it from medium tolarge entities. They do not know how to actuallyrun a business; they do not know how to build up

a business; they do not know, in most cases, howto put the right people in charge. Therefore,taking a business which is quasi-governmentcontrolled, like FNMA and FHLMC, and making itall government controlled. There are not manypeople who understand what the secondarymortgage market it in the first place. If ChrisDodd did not understand what it meant to get afavorable interest rate (which is his public claimconcerning the favorable interest rate which hegot from Countrywide), why would we wantsomeone like that in charge over the secondarymortgage market? He is either being extremelydishonest or he is very, very stupid. Therefore,more government control or a governmenttakeover is a really bad idea (this is why youought to be opposed to a free government-runhealth care system).

It should be clear that, when you mix huge sumsof money with a very complex business and addpeople who work for the government, there willbe an incredible amount of corruption. So,putting any huge business into government hands(the secondary mortgage market, medicalinsurance, and, next in line, big oil) is a bad idea. It does not matter that the original CEO (orwhatever) is a man of great knowledge andhonor. At some point, it will be a crooked guywho gets this position as a political favor.

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FNMA and FHLMC are too large. There is nothingwrong with the idea behind a secondarymortgage market. However, these mortgagesneed to be broken down into smaller bites andsold to private companies, including variousretirement corporations. One company servicesthe loan (takes in the payments and handles thepaperwork and payment associated with theloan), and another company invests in thesemortgages.

We need to go back to giving mortgages topeople who pay them back. If this means thatArmenian women with physical disabilities getshut out of the housing market, so be it. Nomatter what subgroup is out there who does not,in general, pay off their loans, those peopleshould not be given loans. We have so manyhome loans out there, we know who pays andwho doesn’t. We can make certain that 99% ofall home loans are paid as agreed. That’s easy todo. We have to go back to strict businesspractices when it comes to giving a home loan. Will some people be unable to get a home loan? Of course. Those people who have no history ofpaying off their financial obligations. Will thisdepress housing prices? It will. Housing pricesbegan to get out of control because the homeloan market was open to anyone. It needs to beopen to those who have a history of paying theirbills and loans (I have had section 8 people getmortgage loans where the mortgage companydid not even bother to call me, their landlord, tosee how they paid).

To sum up, sell off bundles of mortgages insmaller increments to private investors, privatecompanies, and private groups. Get thegovernment out of it altogether (apart fromreasonable regulation of their practices). Giveloans to people who historically pay off theirloans. Iffy credit means, more money down anda higher interest rate. The idea of loans forpeople with bad credit at a low interest with nomoney down needs to come to an end. You do

not get to go out and buy a house just becauseyou want to.

Obama Puts Lipstick on a Pig

Okay, okay, I know that this is old news, but I stillhave to tell you Obama’s intent. Now, at first,like many other conservatives, I was willing togive Obama the benefit of the doubt here. ThenI really heard what he said. The saying is, if youput lipstick on a pig, it is still a pig. This is notwhat Obama said. He said, If you put lipstick on apig [pregnant pause, let the audience figure outwhat you have just said], it is still a pig. Theaudience got that it was about Sarah Palin. Theywere not laughing and cheering because Obamahad just dissed McCain’s economic policies. Theyunderstood what Obama was saying, and so didhe.

This was one of the few times that the Obamacamp anticipated the response to their statementand were ready for it. They knew how theMcCain camp would respond (“How dare you!”),and Obama was ready the next day with anoutstanding speech accusing McCain of the oldstyle politics. He read the speech from notes notfrom a teleprompter (watch the video).

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First move, Obama’s remark, aimed at SarahPalin, second move, the McCain camp respondswith no little huffiness; third move, Obamaresponds with an excellent speech (and hecontinued for a couple of days to speak about thisincident, and all of the news organizations got inline behind him, pointing out, often with video,that McCain said the exact same thing—withoutthe pregnant pause, of course).

LinksWho actually wants to shut down free speech?

http://michellemalkin.com/2008/09/26/fighting-obamas-goon-squad/

Angry, anti-Palin link:

Sally Quinn does not like her:

http://newsweek.washingtonpost.com/onfaith/sally_quinn/2008/08/sarah_polin.html

Here is the video of O’Reilly and Quinn sparingabout Palin:

http://www.youtube.com/watch?v=IWAWByyk-fQ

Sally Quinn actually changes her mind!

http://www.youtube.com/watch?v=9FEANF9dR_8

The Rush Section

Bill Clinton Drops Neutron

Bombs on Obama

RUSH: Bill Clinton -- the Uncivil War is back in theDemocrat Party -- Bill Clinton is dropping neutronbombs all over the place against Obama and thecampaign. No one's dying, but the energy, theelectricity has been knocked out of thiscampaign. Obama, I'm sure, I'm convinced nowhe did not know who he was messing with whenhe dissed Hillary for the vice presidentialnomination. The Clintons, when they were nolonger treated as the king and queen of the party,they went to war. Bill Clinton is on Good MorningAmerica today admitting that the Democratsblocked reform of Freddie Mac and Fannie Mae. Bill Clinton was on Good Morning America todaypraising McCain to the hilt. He's blowing Obamaand Democrats away on every television show heappears. He doesn't say that Obama's unfit, andhe doesn't say that he's going to vote for McCain,but he does. Now, what does Bill care? Hillary isa senator; he's a mutlimillionaire, got rich duringthe Bush years. Obama and Michelle are going tohave to go through him if they want to get onthat gravy train, and right now Obama's gotta domore than two things at once, he has to go toWashington and he cannot vote "present." Hedid not want his vote on this. He did not want tobe tied to it because he's just one of 100 peoplein the Senate. He can't control what they're goingto do, he's just one vote, so he wants to votepresent. He's got people like Frank Raines andJim Johnson on his staff who helped create thisproblem. He has to pretend to look presidential,as he follows McCain and Bush's lead.

By the way, McCain spoke at the Clinton GlobalInitiative. I understand being polite, but yougotta understand, McCain was gushing in hispraise for Clinton this morning, and I got a lot of

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e-mails, "Look, I understand, Rush, the need forhim to be polite, but why in the world gush likethat?" Well, you gotta understand what Clintonis doing to Obama out there every chance hegets, folks. McCain is indebted to him here. Imean, there literally are neutron bombs beingdropped all over poor Barry's campaign here, andhe has no clue. He doesn't really know it, so he'sgotta pretend to look presidential as he followsMcCain and Bush's lead. Here was the ClintonGlobal Initiative, which is a joke, but it stillhappened there in New York, and McCain showsup in person and does his little speech and thenhightails it back to Washington. We got Barry onvideo, a screen there on the stage 'cause he's stillin Clearwater, Florida, debate prepping. I'vewatched a little bit of it, and it looks like that he'shaving teleprompter problems, but I don't thinkthat's what it was, for those of you who saw it. Ithink Barry was waiting for the applause to diedown when he thought there was going to beapplause. He didn't want his next comments tobe overcome.

The Government wants your Home

RUSH: Okay, more audio sound bites. And, ladiesand gentlemen, we have four of them coming upw i t h t h e e s t e e m e d B a r n e y F r a n k(Democrat-Massachusetts). Barney used to be aregular fixture on this program with frequentutterances and scandals himself involving -- whatwas it that was going on in his basement with hisboyfriend? Oh, yeah, the prostitution ring goingon. The rumor is -- it was straight-up prostitution,but -- patrolling schools, right, and so forth. It wasgoing on in Barney's basement, Barney did notknow about it. And Barney was fixing the parkingtickets that were needed to park in front of thehouse here where stuff is going on, and he didn'tknow about it.

RUSH: Okay, let's go to the audio sound bites. Yesterday I pointed out to you that DemocratsChuck Schumer targeting home ownership as the

problem here: "The lowly mortgage has broughtour economy to its knees." Last night on PBS, theCharlie Rose Show, he talked to CongressmanFrank. Charlie Rose said, "Who is representingthe vast middle class here who faces these kindsof foreclosures? Where is that voice at thetable?"

FRANK: Well that's, frankly, the Democrats, someRepublicans. We are the ones who have said,"Look, we're going to buy up some of theseassets," and many of them will be mortgagesecurities. What we're saying is, "Buy them withan eye towards assembling enough of them sowe then could be the landlord, in effect, andreduce the foreclosures," and that's one, frankly,that the administration has been resisting.

RUSH: Thank God! He just said the federalgovernment -- he, Barney Frank -- they want tobe the landlord! They want to buy up enoughthese mortgages so that they can be the landlord. They own; you rent. Folks, this is one of the guysthat caused this. And then Barney, he wasn'tthrough. Same show, Charlie Rose, he continued.

FRANK: When we talk about the large amountsof money, it's not simply that we're jealousbecause they're getting too much money. It hasa bad effect on their behavior. We have what'scalled "a perverse incentive." In many of thesecorporations if the CEO and the top people makea bet on a certain risky investment and it pays off,they get a bonus. If it doesn't pay off, they don'tlose anything.

RUSH: Well, now, that sounds remarkably similarto certain aspects of the US tax code, doesn't it? I mean, do I get to deduct stock losses? I don'tthink so. At any rate, we're back to the executivepay. CEOs have "a perverse incentive" and has "abad effect on their behavior." So now BarneyFrank wants the government to become yourlandlord and he wants the government to be incharge of the behavior of CEOs. Yesterday onCNBC Erin Burnett talked to Barney Frank, and

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said, "Is it clear that Henry Paulson doesn't wantall those restrictions in this current bill?"

FRANK: I understand and I -- I admire SecretaryPaulson a great deal, but on this one asking himto accept any kind of compensation limitations isjust kind of like asking the rabbi to eat bacon onYom Kippur. He -- he -- he starts to just reallystart to overreact.

RUSH: They don't want any limitations onexecutive pay. (interruption) Bacon on YomKippur. Yeah, they start to overreact. Yeah,that's what he did, asking a rabbi to eat bacon onYom Kippur, he starts to overreact. So he saidPaulson was overreacting yesterday to the desireby Democrats to control even more of the privatesector. We are talking about the private sector. They are the ones that broke this. The scandal isinside the doors at Capitol Hill, transferred toDemocrat cronies at Fannie Mae and Freddie Mac-- which were partially under governmentauspices anyway, even though they insult ourintelligence and tell us that they were privatesector businesses. This is where we're headed ifthe Democrats get their way. They screw it up,and they get to control it even more!

Obama Teleprompter Trick

RUSH: But have you ever noticed, folks, I finallyfigured out something. Every time Obamaspeaks, could be two people in the room, couldbe 200,000 out there in Berlin or whatever, healways looks like he's looking over the horizon. He's always looking away like this, as thoughthere are the multitudes stretched so far that hehas to look probably 45 degrees in the sky inorder to be able to see 'em all. That's a trick. Youknow how they're doing it? They put theteleprompter above his eye level so he has toconstantly look up, and it's this looking up andlooking around and so forth that makes it looklike he's addressing the multitudes that stretchfrom coast to coast.

The Fringe Left Support Barry

RUSH: I don't know how much prep Barry has todo on foreign policy. His foreign policy is, welose. His foreign policy is, meet withAhmadinejad, with no preconditions. Did you seewhere Obama, one of his financial bundlers fromCode Pink hosted a dinner for Ahmadinejadearlier this week in New York? Yes, Jodie Evans isher name and she's Code Pink, Code Pink womenfor peace, these people are always getting intocongressional hearings and protesting during theIraq war testimony, generals show up and soforth. She was one of the bundlers of his big $9million night in Hollywood, and Ahmadinejad, ofcourse he's going to meet with an anti-Americancrowd, and they showed up and she's one ofObama's bundlers. You have to wonder now, Imean we know who these people are, they'rekook fringe leftist anti-Americans, but they're alsoObama supporters, Obama bundlers, Obamafundraisers meeting with Mahmoud Ahmadinejadin New York to discuss the evils of the UnitedStates of America.

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Call Me if You Need Me

RUSH: Okay, so there's the David Axelrod talkingpoint, and that is, we have to be able to deal withmore than one thing at a time. So he saysessentially if congressional leadership neededhim, he'd be available. Call me if you need me. Now, who is he? He's the leader of his party rightnow, and he seemed to have absolutely nointerest in being involved in this very importantissue that's being discussed up there. He doeshave a job, and his job right now is senator. That's where he ought to be. Well, call me if youneed me. Be glad to show up if you need me.Look, I'm too busy playing God here, I'm too busybeing messiah, I'm too busy, call me if you needme, but really wish you'd handle this on yourown. And then Harry Reid is out there saying,McCain, we don't need you, stay away.

Obama acted like a poser. He had this littlemeaningless joint statement here. Little Barrydidn't think he was needed in Washington. "Callme if you need me." (laughing) Call me! He's onlythe leader of his party. The debate is taking placewhere he has a job. Call me if you need me? Thisis the kind of guy who thinks a treaty has theweight of a peace imposed by winning a war. This is a guy who thinks he can sit down, talk toAhmadinejad, issue a joint statement, and poof!Iran's no more an enemy. He's a man-child, myfriends. He doesn't understand that a failure toquickly solve a credit crisis risks long-termdamage to countless Americans. He said wecould call him on the phone if he was needed.(laughing)

More Clinton Bombs

By the way, did you hear what Bob Schiefferreported about this today on CBS? Bob Schieffersaid somebody told him -- he was on the CBSEarly Show this morning -- he said that somebodytold him that Hank Paulson called Senator Lindsey

Grahamnesty after he met with the HouseRepublicans yesterday, and only four of them saidthey would support the rescue plan. Paulsoncalled Lindsey Grahamnesty and said you gottaget McCain up here. McCain is the only guy thatcan provide cover for these Republicans. Yougotta get McCain up here talking to these guys. So Grahamnesty called McCain, and that's howMcCain ended up, according to CBS News, that'show McCain ended up going to Washington. Itwas not, therefore, a stunt that they contrivedout of whole cloth. There was a request from theTreasury Secretary to McCain, not to Obama. Idon't know why Paulson just didn't call McCainhimself, he called Lindsey Grahamnesty, butthat's what Bob Schieffer said. Now, let's gosome Bill Clinton neutron bombs. This is GoodMorning America today, cohost Chris Cuomo,"Delaying the debate, McCain, a good move?"

CLINTON: We know he didn't do it because he'safraid because Senator McCain wanted moredebates. You could put it off a few days, theproblem is it's hard to reschedule those things. Ipresume he did that in good faith since I know hewanted, I remember he asked for more debatesto go all around the country so I don't think weought to overly parse that.

RUSH: You heard it. Neutron bomb number one. Bill Clinton, he just threw Obama under the bus. Here's Bill Clinton saying, (doing Clintonimpression) "Hey, look, he's the guy that wantedall those town hall meetings, he wanted ten ofthem and I didn't hear the other guy say, 'Okay,I'll be there.' I mean, McCain, he's not afraid todebate."

RUSH: All right, one more Bill Clinton neutronbomb also from Good Morning America. ChrisCuomo says, "Is it a little surprising to you hearingthe Democrats saying this came out of nowhere? I mean this is all the Republicans, Pelosi saying it? She knew what was going on in the SEC. They'reall sophisticated people. Is that playing politics inthis situation?"

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CLINTON: The responsibility that the Democratshave may rest more in resisting any efforts byRepublicans and the Congress or by me when Iwas president to put some standards and tightenup a little on Fannie Mae and Freddie Mac.

RUSH: This is the guy that caused the problem. This is the guy that caused the problem. Butnotice what he's doing. He's not just neutronbombing Obama. He's neutron bombing theDemocrats. (doing Clinton impression) "TheDemocrats, I mean, the Republicans reallywanted to reform this. I did, too, but my partystood in the way of this. I wanted to tightenthem up a little bit there, but the Democrats,they wouldn't go along." Neutron bombs, BillClinton. This is typical of Clinton to say, "I triedto, I did everything I could, I never worked harderat anything I ever did to try to straighten out thismess. But they wouldn't listen to me." (laughing) You have to laugh, and we will continue to do so,folks, because we are Americans.

Media Reaction to the Debate

[Rush said this the day before the debate]

RUSH: Let me tell you something about thesedebates, too, folks. These debates, they'rephony. They're total media creations. Whathappens in a debate? Okay, these two guys showup someplace, they stand at lecterns, and youhave three or four selected elites from theDrive-By Media get to ask the questions,therefore frame the whole debate. Thecandidates don't. After it's over, the Drive-Bysthen head to the spin room, where variousrepresentatives of both candidates tell theDrive-Bys what they didn't hear but that theywanted them to hear, and then the Drive-Bys tellus after all that what they heard that theywanted us to hear, defying our own eyes andwhat we saw.

They tell us, you didn't see what you saw, Obamakicked butt tonight. If you think McCain did, it'snot going to happen that way. Mediafront-to-back. That is why the Saddleback Churchthing was so great. There was no media in it. There was no pre-media, there was nopost-media, there was no spin -- well, a little spinroom out there, I think, but it wasn't typical. Sothis is no great loss. This is McCain going straightover the media to the voters a la the way Reagandid, and that's what they're doing with SarahPalin.

Obama’s Corrupt Campaign Advisors

You talk about callous, talk about not having thejudgment to lead. Sounds like a guy who wouldremain an active member of a racist church for 20years and not knowing what's going on in there. He's not in touch with reality. He doesn't get it. He still has Jim Johnson advising his campaignfrom Fannie Mae. How about a joint statementon why Jim Johnson's advising your campaign,Barry? Why don't you put out a statementexplaining that?

More from Bill Clinton

RUSH: I want to go back. Snerdley was paralyzedfor three minutes after this Clinton bit. One moretime. Chris Cuomo: "All these Democrats sayingthat this problem, financial problem, is all theRepublicans' fault. What do you say to that?"

CLINTON: The responsibility that the Democratshave may rest more in resisting any efforts byRepublicans and the Congress or by me when Iwas president --

RUSH: Jeez!

CLINTON: -- to put some standards and tighten upa little on Fannie Mae and Freddie Mac.

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RUSH: (laughter) Look, pal, you caused this! Thisis all traceable to the Democrats resistingoversight, resisting reform, creating themechanisms in the first place, traceable right toyou and Jimmy Carter. But he's dumping on hisparty, I'm telling you, this guy is mad at the partyleaders. He's mad. He thinks Obama's going tolose, and he and Hillary are going to pick it allback up.

RUSH: All right, audio sound bites, Bill Clinton, hedropped neutron bombs today on the Obamacampaign. I treated you to those sound bites inthe first hour. He was on Larry King Live lastnight. Clinton is everywhere because of theClinton Global Initiative. And Larry King said,"You're going to vigorously campaign? Is that acorrect word: 'vigorous?'"

CLINTON: We have this golden issue coming up,and I -- and I have projects all over the world. When this is over -- and after the Jewish holidays,which follow close on it -- I intend to go toFlorida, to Ohio, to northeast Pennsylvania, andto Nevada, at a minimum. I may do this inArkansas, depending on what the DemocraticParty does down there. And I have agreed to dosome fundraising for them in California and NewYork.

RUSH: So he's going to vigorously campaign forObama after the Jewish holidays. Hey, why don'tyou take Alcee Hastings with you? You know, itmight help you out, because he's out there andhe's got the proper message for Jewish voters:Any woman who goes out there and skins amoose and runs around with guns, you can nevertell what she's going to do to Jews and blacks. Hesaid it. I'm paraphrasing it, but that's prettyclose. Clinton is destroying Obama, and I don'teven think Obama knows it. "Oh, yeah, you knowsomething? Democrats, most of them are toblame for this meltdown here 'cause they werenot looking. I mean, I tried everything I could toget Fannie Mae and Freddie Mac straightenedout, but the culpability of my party is huge. Oh,

yeah! I think that McCain canceling the debate?That's no big deal. McCain is a guy that invitedObama to ten different town hall meetings. Obama is the one who said no. I don't thinkMcCain's got a problem here at all. That debatewill happen. This bailout is clearly moreimportant." These are neutron bombs. I mean,the buildings are left, nobody dies or any of that,but I'm telling you. The Clintons are peeved. Barry did not know who he was dealing withwhen he dissed them the way that he did. Here,by the way, more from Clinton on Larry King Live.King said, "Are you kind of feeling Jewish thatyou're waiting 'til after the Jewish holidays?"

CLINTON: No, but I think it would be -- if we'retrying to win in Florida --

KING: (snickers)

CLINTON: -- it may be that, you know, they thinkthat because of who I am and where my politicalbase has traditionally been, they may want me tosort of hustle up what Lawton Chiles used to call"the cracker vote" there.

RUSH: So here's a guy claiming that he's going tocampaign for Obama. "Yeah, I'm gotta wait 'til theJewish holidays are over so I can go in there, getthe cracker vote for Obama." (laughing) Neutronbomb number three. "Hustle up the crackervote! Gotta hustle up the cracker vote." So thisis neutron bomb number three, and Clinton setthis up perfectly. He knew that if he said he wasgoing to do the campaign after the Jewishholidays, King would ask, "Whoa, what are youfeeling Jewish? Why wait until after the Jewishholidays?" "Well, I gotta go down there in Florida.They're gonna need me down there to hustle upthe cracker vote. I'm campaigning for BarackObama, gonna need the cracker vote." (laughing)

RUSH: By the way, I just got a note from a friendwho properly observes that if Clinton is going tocampaign here in Florida after the Jewishholidays, it would then follow logically that

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Clinton was seeking the "matzo ball" vote ratherthan the "cracker" vote. But he stuck with thecracker vote, because it's a Southern state andthe crackers are what Obama needs. My theoryon this is that he's saying exactly what he intendsto say.

He's dropping little neutron bombs on Obamaand the campaign. He's going to come downhere to Florida, because Obama is going to needthe cracker vote, and so the guy who is ostensiblycampaigning is going to say, "Hey, crackers? I'mcoming down here to get your vote." Now,Clinton may have to say, "Hey, I'm a fellowcracker (laughing) so I know exactly what youpeople want." (interruption) According towhose...? Crackers are native born Floridians,that was Lawton Chiles' definition? Is that...?Well, now look. That's another thing. How do weknow? Lawton Chiles has assumed roomtemperature many years ago. So that's anotherthing. Poor old Lawton Chiles. Who's put allthese words in Lawton Chiles' mouth? I don'tdoubt that Lawton Chiles said it.

Rush on the Financial Crisis

RUSH: Now, in looking into the financial mess, asI said at the beginning of the program, who doyou trust here? It's simply too massive and thereare too many opinions. I mean, you can gocertain places and you can find a conservative,say, "I've been talking to the smartest people inthe room, smartest people in the room, and theytell me, you know, we gotta do this and we gottado it now and if we don't do it we're in bigtrouble." And other people saying, "Well, youknow I've been talking to the smartest people inthe room here and they say this is a disasterwaiting to happen, and if we do this we're goingto be paying for this for the rest of our lives andwe're going to end up with socialized,nationalized everything," and other people aresaying, "I've talked to the smartest people in theroom about this, and one thing I have

understood, yeah, we gotta be conservatives andwe gotta be conservatives first, but this trumpsconservatism." And that's the one that got mebecause, for me, nothing trumps conservatism. There are ways of dealing with this that do nothave to include total socialization of the marketprocess or the nationalization of the mortgageindustry.

Now, I went and grabbed a piece today in theWall Street Journal, and it happens to end upbeing one of the most persuasive pieces I haveread in all of this. It's by Andy Kessler, a formerhedge fund manager, and he's the author of HowWe Got Here, published in 2005. Let me join hiscolumn in progress: "Here's what's happened sofar. New technology like electronic trading meantthat Wall Street's bread-and-butter business ofinvestment banking and trading stocks stoppedmaking much money years ago. So investmentbanks took their enormous capital and at firstpackaged yield-enhanced, subprime mortgageloans into complex derivatives such ascollateralized debt obligations (CDOs). Eventuallyand stupidly, these institutions owned them forthemselves -- lots of them, often at 30-to-1leverage. The financial products were made 'safe'by insurance products known as credit defaultswaps, a credit derivative from companies suchas AIG. When housing turned down, themortgages and derivatives were worth a lot lessand no one would lend Wall Street moneyanymore.

"Then the piling on started. Hedge funds couldshort financial stocks and then bid down theprices of CDOs stuck on Wall Street's balancesheets. This was pretty easy to do in an illiquidmarket. Because of the Federal AccountingStandards Board's mark-to-market 157 rule, WallStreet had to write off the lower value of thesesecurities and raise more capital, dilutingshareholders. So the stock prices would drop,which is what the shorts wanted in the first place.It was all legit. There is a saying on Wall Streetthat goes, 'The market can stay irrational longer

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than you can stay solvent.' Long Term CapitalManagement learned this lesson 10 years agowhen it got its portfolio picked off by Wall Streetas its short-term financing dried up. I had thoughtthe opposite -- hedge funds picking off WallStreet -- would happen today. But in a weirdtwist, it's the government that is set up to win theprize.

"Here's how: As short-term financing dried up,Fannie Mae and Freddie Mac's deterioratingfinancials threatened to trigger some $1.4 trillionin credit default swap payments that no one,including giant insurer AIG, had the capital tomake good on. So Treasury Secretary HenryPaulson put Fannie and Freddie intoconservatorship. This removed any short-termfinancing hassle. He also put up $85 billion in loanguarantees to AIG in exchange for 80% of thecompany. Taxpayers will get their money back onAIG. My models suggest that Fannie and Freddie,on the other hand, are a gold mine. For $2 billionin cash up front and some $200 billion in loanguarantees so far--" and let's not forget that. Ithought it was $300 billion, but we've already putat least $200 billion into this whole process. Andhe said, "For $2 billion in cash up front and some$200 billion in loan guarantees so far, the USgovernment now controls $5.4 trillion inmortgages and mortgage guarantees. Fannie andFreddie each own around $800 million inmortgage loans, some of them already atdiscounted values. They also guarantee thecredit-worthiness of another $2.2 trillion and$1.6 trillion in mortgage-backed securities. Heldto maturity, they may be worth a lot more thanMr. Paulson paid for them. They're calleddistressed securities for a reason."

The bottom line is that he says the government,if Paulson is able to buy up all these mortgages --and, by the way, most of them are not intoforeclosure yet. Most of them haven't defaulted. If Paulson, if the Treasury is able to buy up for$700 billion, $800 billion all of these mortgagesand hold onto 'em and then sell 'em off as the

market value is established on them, this guy'smodel say anywhere from $1.1 to 2.1 trillioncould be realized by the government being in themortgage business, the government as aninvestment bank. He says, "My calculations,which assume 50% impairment on subprimeloans, suggest it is possible, all in, for thisportfolio to generate between $1 trillion and $2.2trillion -- the greatest trade ever. Everyhedge-fund manager will be jealous. Mr. Buffettis buying a small piece of the trade via hisGoldman Sachs investment." And, by the way, alot of people are saying this means we've reachedthe bottom. When the smart money gets in, thesmart money in this case being Buffett -- by theway, I never have trusted a guy named after asmorgasbord. But nevertheless when they'resaying the smart money gets in, Warren Buffettgets in, that means we're near the bottom of themarket. And that's one of the reasons why theDow Jones Industrial Average is up a little bit.

Now, I have some thoughts on this because thispiece makes it clear this is not a bailout. It's arescue. Now, these things still have some value. I don't know what the value is, and they haven'tbeen foreclosed on. They're pretty close toworthless, but it's not technically a bailout. Andof course you're hearing all these warnings if wedo this then there's not going to be any credit. Okay, now, what does that mean? Well, it couldmean something like this. Now, I'm just givingyou an extreme example. It could mean that allof our credit cards, outstanding balances aregoing to be called in, 'cause there's no morecredit. If the credit markets have no cash to lendmoney, and if the assets that they hold areworthless, then there's no credit, and if there's nocredit, there's no expansion. If there's noexpansion, there's no growth. Now, this is anextreme scenario, but they're using two things tosell this rescue plan. They're using fear of youlosing and everybody losing their credit, and thecome-on, "Wow, look how much money thegovernment can make here, $2.2 trillion, can youimagine the debt service that we could --" debt

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service. Remember the peace dividend? Whatdid they do with it? It didn't even exist. Theygrew the government. This is the kind of money,if Obama is elected, this is the money that willfund all of his brand-new big-time socialprograms. There's a lot to think about here.

RUSH: Okay, here we go. The piece I just read toyou, Andy Kessler, I should give you the headline. "The Paulson Plan Will Make Money forTaxpayers." He's a former hedge fund manager,and that's how he analyzes this. He's one of theseeconomists that has commuter models and he'srun some projections. Now, if this guy is right --and who knows? See, we don't know who totrust, and we don't know who's going to end upbeing right. Our experienced is, "I'm from thegovernment and I'm here to help you," meanswe're going to get screwed. And we know there'snot one single person involved in this I trust withthat prediction. There's not a Ronald Reaganhere. If a Ronald Reagan was saying, "We gottado this," I would believe it. There isn't one ofthose. So you've gotta scrounge around. It'sactually a great educational process. Snerdley came in today and said, "I have neverworked harder in my life trying to understand thisfinancial thing. I've been spending more time thispast week working on trying to understand this.'Cause this is all Greek, all this lingo jingo theyuse, talking about these derivatives and the creditswaps," but it has been an amazing educationalexercise. But if this guy, Mr. Kessler, is right; itunderscores points made prior to today by me onthis program. Number one: that the federalgovernment is nationalizing the financial markets. I don't care what anybody says, this isnationalizing the financial markets. Number two:these loans (he makes it clear in this piece) havenot yet defaulted, even if they are risky. Numberthree: when the market recovers, the federalgovernment will be able to make lots of moneyselling the undefaulted loans back to the privatesector. Even if they're sold below their originalvalue, it will be more than the government paid

to take them off the hands of the financialinstitutions today. It's made clear by Mr. Kessler in his piece. Alsowe can conclude since he's a former hedge fundmanager and he likes this, that Wall Street'sdesperate for this to happen so that thesefinancial institutions that are in need of cash canget it and get it fast, whatever price they have tosell their loans for. Cash is king right now, theydon't have any, and they need it. They can'tborrow. They can't lend. They can't dodiddlysquat. The federal government, as Mr.Kessler makes clear, will have a windfall ofpotentially trillions of dollars -- which, experiencetells me, will be used to expand the size ofgovernment. I have yet to see a budget one yearless than the budget the prior year. I have neverseen the federal government with a huge stash ofmoney that it didn't expect, say, "You knowwhat? We might be able to make a dent in SocialSecurity here if we put a little aside. We mightmake a dent in Medicare. Maybe we could cancelthe..." They come up with new stuff to spend it on. Sothat's why I look at this as if Obama gets elected,this windfall, if it happens, will pay for all the newprograms at the front end. Whether the money isrealized or not, as long as we're being told, "Hey,this could generate $2.1 trillion," they're going tostart spending it now. Especially if it's Obama. McCain... Let me go on now. Warren Buffett hereis posed to make another fortune. He is anObama advisor. Soros made a fortune bettingagainst the British pound. George Soros in thecurrency markets, made a billion dollars bettingagainst the British pound. So you watch peoplewho make the money on this thing. Who are thepeople that are really going to make the moneyon this? Is it more than just making people wholeand able to do business again? Does it contain a lot of golden opportunities forpeople to take some of this stash and enrichthemselves personally? Now, these are the kind

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of rules there are going to have to built into this. I'll tell you, as you go through this and youunderstand it, what becomes clear to me -- and Isaid at the beginning of this hour, "Who do youtrust?" I trust conservatism. Conservatism andfree market economies work. It is based ongrowth. You want to spur Wall Street? You wantto give those people some confidence? You wantto give 'em some cash right now? Just suspendthe capital gains rate. Just end it. It's now 15%. Take it to zero, for a year or two. You watchwhat happens. You watch what happens to theDow Jones Industrial Average. You watch whathappens with all the money pouring in. "But we'llnot get our share in the government!" Wait a minute. I thought this was more importantthan anything. We're hearing, "We've gotta dothis or it's over". So can't you guys ingovernment maybe do away, just for a year ortwo, with the capital gains tax? Can't you justlook at the upside? You're going to get allthese new trillions by taking over all thesemortgages. Maybe you could get rid, too, ofthe corporate tax rate for the same period oftime. Try a little conservatism here. Wedon't have to have this all decided by fiveo'clock this afternoon so that we can do ourdebate tomorrow night. Every time I hear,"We don't..." I mean, people have beentelling us the fundamentals of our economyare strong. There's no be pro. All of a suddenyesterday, past two days, "If we don't get thisdone by the end of the week, I don't evenwant to think about it." Well, whatever elsethey're going to do, put some conservatismin it. Cut taxes! Spur growth! We know howto do it. It works every time it's tried, and itwill generate so much revenue that the $700billion will not be needed.

RUSH: I want to continue analysis of this, becausewe don't know who to trust. The definition ofterms eludes us, default credit swaps, derivatives,all of these things that just got piled and piled andpiled on top of each other to the point that

there's a debt that nobody can pay except thegovernment. And they can do it because theycan cheat. They can print money. They can say they've gotall kinds of money that they don't have, justborrow it or what have you, print it. But here'swhat, again, just to rehash: What it appears tome has happened here is the federal governmentis nationalizing the financial markets, at least fora time. These loans are not, as I said yesterdayand mistakenly so, worthless. They have not yetdefaulted. They're risky, but they haven't yetdefaulted. The market will recover. It alwaysdoes. When that happens, the federalgovernment will be able to make lots of moneyselling the undefaulted loans back to the privatesector, even if they are sold below their originalvalue, it will be more than the government paidto take them off the hands of the financialinstitutions today.

Number four: Wall Street is desperate for this tohappen so that these financial institutions thatare in need of cash can get it and get it fast. Whatever the price they have to sell, there areloans for it. They don't have any cash. They can'tborrow, they can't lend. They can't do business,

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and it's not just that. I mean, there are stupidaccounting rules. I'm going to get to all that herein just a second. The federal government, as Mr.Kessler, Andy Kessler of the Wall Street Journaltoday makes clear, the federal government willhave a windfall of potentially trillions of dollars ifhis computer models are accurate -- which theywill, I think, use to massively expand the federalgovernment. I have yet to see a massive pile ofmoney show up that was unexpected that'seither given back to us or used to reduce debt. And that takes me to this business that taxpayers"stand to earn a lot of money on this." You seethem use that phrase as they try to sell this. "Taxpayers could really score!" Now, don't insultus. They don't mean us when they say thetaxpayers could really make out. They meanthem, they mean the government. Do youthink...? Let's say that this guy is right. Let's saythat all of this at the end of the day generates anunexpected $2.2 trillion to the government. Okay, there are maybe 40 million taxpayers. Thepopulation is 200-some-odd million. We've got alot of people in the cash economy, and a lot ofkids that don't file tax returns. I'm guessing thatit's -- Well, just for an even round number, let'ssay a hundred million people file tax returns. So you divide a hundred million into $2.1 trillion,whatever they get, are they going to send us eacha check? So how do we stand to profit? Especially if they're just going to use all thisnew-found money to expand the government? And I guarantee you, if Obama wins the electionand this deal gets cut, they're going to thinkthey've got between a trillion and two trillion thatthey didn't plan on, and they're going to startspending it now on his social programs and allthese other promises that he is making in orderto enrich Democrats and their electoral chancesin the future. Now, the fix for this -- andapparently it's already been taken, it's alreadybeen done. We just don't know what it is, but Itrust conservatism. When in doubt, I go toconservatism. Growth, growth, growth is the

answer. It always is, in economic matters. Weneed to attract more investment in our country,not less. We need to take down the obstacles which standin the way of investment, which are confiscatorytaxes on capital investment and successfulbusiness activity. We have got to stop punishingsuccess and punishing risk. We need to reward it. Successful business activity is called what? Profits. Our government can't wait to tax 'em. We have the second highest corporate tax rate inthe world. That's not going to help us attract newinvestment. Get rid of the corporate tax rate fora year or two. Same thing with the capital gainstax. Get rid of it. Watch what happens. Youwatch the investment; you watch the stockmarket. You watch everything that happens, interms of growth. Now is not the time to continueto promote, through our tax policy, BigGovernment and socialism, which is the purposeof high corporate income tax rates and capitalgains tax rates.

You legitimately pump new money into oureconomy by getting it out of Washington, andyou do that by cutting taxes. I know the cap gainsrate is only 15%, corporate tax rate's 35%. Youwant growth? You want money in the economy?You know, the economy is not just Wall Street. And, by the way, when you hear these clownstalk about, "We gotta make sure we protect MainStreet." Main Street has one definition in all this,and that's the people who are holding all of thesemortgages that they can't service, that might notbe paid back. That's Main Street. Main Street'snot the five-and-dime and the building and loanas in It's a Wonderful Life. That's not the MainStreet that they're talking about now. So thereare things that we can do economically. Whatever this deal is, it will be compounded as adisaster, if Barack Obama is elected president andhas a Democrat House and a Democrat Senate. That's why, in addition to whatever we doeconomically, we can do some political things,

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'cause this is largely a problem caused on thepolitical side of things. This is not a free marketscrew-up; this is not a capitalism flaw. This wasall caused by Democrats in government! If therewere a Republican to blame, he would have beenfound and he would be in jail, or his life would beruined as the result of never-endingcongressional hearings. We have to continue toidentify, to expose and punish the politicians whoare responsible for undermining the market withpolitical demands for risky loans to riskyborrowers -- and they used the power of theirpositions to force this. There were loans that were made out to peoplewho were not even asked to explain what theydid for a living! There were countless mortgagesgiven to illegal aliens and other minorities,without any concern that they be able to pay itback. This is the "compassion" that Democratstalk about. This is their definition of affordablehousing. This is the "good intentions" of theirlarge hearts. Once again, we see their goodintentions have totally bollixed up what used tofunction as a really rational market: the mortgageindustry. So we have to do what? We have topunish Chris Dodd by throwing him out of office. We gotta punish Barney Frank by throwing himout of office. We gotta punish Chuck Schumer bythrowing him out of office. Now, these three and others are protected fromthe national popular will because they are electedfrom very blue parts of the country. Nevertheless, the people who are responsible forthis, even after all this is settled, their roles mustbe highlighted. Their roles in obstructing thekinds of changes in policy that would have helpedlessen the current crisis. There were warningsgiven throughout this decade about Fannie Maeand Freddie Mac, warnings from George Bushand other places -- and Barney Frank and ChrisDodd and Chuck Schumer and all the othersdidn't want to hear about it. "It's fine. There's noproblem here." They stood in the way of, quote,unquote, "reform."

We have to identify what was done as a matter ofpolitical and social policy that precipitated all ofthis, including the creation of subprimemortgages. In the first place they were createdand they were hailed as a way of helping peoplebuy homes who didn't have the income to buyhomes. Jimmy Carter, Bill Clinton took credit forthis when they did it but they are evadingresponsibility for it now, and the house of cardshas collapsed and Clinton's even out there onGood Morning America (while dropping neutronbombs on Obama, by the way) suggesting that hedid everything he could to get this whole thingfixed. He's the architect of this! And it must besaid over and over. Now you've got people like Warren Buffett,hailed as a great businessman and other peoplelike him, hovering over all of this, looking forways to make billions and billions more dollars --of course with the government's help. Theysupport this massive bailout because they see itas a way to make another fortune. So Buffettbuys a big stake of Goldman Sachs, which is HankPaulson's former firm. He's not doing that out ofphilanthropy. He's doing it because he knowsone day these risky loans are going to one dayhave value. He wants to be around to profit fromthem when they have value, which is fine. But itought not be on the taxpayers' dime, and it'sgoing to be. We have far too many people who are becomingrich from government policy rather than thegive-and-take of the free market. So put simply,based on this article I read in the last hour fromAndy Kessler in the Wall Street Journal, thefederal government appears to be the only entitycapable of coming up with the enormous amountof money it's going to take to take over theseloans -- which have not failed yet but which thegovernment itself requires these banks todevalue as assets. Now, they are required tobase their value on current prices. This is whatmark to market is. That is a change forced onthem by the Sarbanes-Oxley accounting

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legislation, which was a clarifying, typicaloverreaction to the Enron thing. So rather than being able to peg asset valuedown the road, you have to peg it to asset valuetoday. And that's why some of these firms aregoing under, because the value of what they holdis so little, that their stock prices plummeted,nobody wants to invest in them -- simply becauseof an accounting change! That's another thingthat's gotta be done away with. Go back to theold asset-counting rules, accounting rules, get ridof mark to market. These people in Washingtonwho have never run businesses, who have noclue, who set up things to fail in the first place --then when they fail, they get to act like they areinnocent bystanders and spectators and say,"Well, who screwed this up? We're going topunish whoever did it and then we're going to fixit," and they just bollix it up more and more. So this accounting rule, mark to market, thebanks have to off-load these loans, and whatPaulson is saying is, "Okay! (applause) hey, hey,I've got the money. I'll buy 'em at a fire sale,because I got a blank check. Or I want a blankcheck and I'm probably going to be given onehere in a couple days because I've created thenecessary panic." So, our government buysthem, holds 'em, waits for the economy to pickup -- or rather than wait, primes the economy topick up through spending and monetary policy,possibly risking inflation (maybe not; whoknows?) Anyway, going to drive up the value ofthese risky loans, then they going to start to sell'em back to the private sector at a huge profit,and that's where we "taxpayers" supposedly aregoing to make out like bandits. I guarantee you we'll never see a dividend check. So the federal government is going to take thetrillions or so that it makes of all this and -- if say,Obama is elected -- use it to further massivelyexpand the size of federal government. Andthey're going to have trillions more to do whatthey always do, not pay down the debt, not shore

up some entitlement program, but expandgovernment. That's what always happens. Another problem with all of this -- and I hear notalk about getting rid of these communityreinvestment loans, which started this entiremess, and I hear no talk about eventually gettingrid of these government-run companies, FannieMae and Freddie Mac. I hear that we need toincrease regulations on the private sector! Weneed to increase taxes on the private sector. No! We need to get rid of some of these stupidgovernment ideas and institutions that causedthis. This is not a capitalist problem. You know,more than ever what we need to do, is we needto dust off old Milton Friedman's proposedconstitutional amendment that would limit howmuch of the national economy the federalgovernment's permitted to consume. Hisamendment would have limited federal spendingto less than 20% of GDP (I think that's what itwas) as the best way of preventing the federalgovernment from destroying the economy. If theeconomy grew, the income to the federalgovernment would grow in absolute terms. If theeconomy shrank, so, too, would the absolutedollars coming into the federal treasury. Now, there were severe emergencies like warwhere the cap could be raised in hisconstitutional amendment. It's not going tohappen. Nothing happens unless and until itbecomes part of the national dialogue, and untilwe see exactly what's happened here, it's goingto be difficult to do, you know, on-the-spotanalysis of it. Victor Davis Hanson today writingat National Review Online says (summarized),"Hey? Hey, gang? We need a reality check here. Who elected all these shady politicians of bothparties? Who fostered the cash-in culture inwhich both Wall Street profit-mongering andWashington lobbying are nourished and thrive? We citizens did. Red-state conservatives, bluestate liberals, Republicans, Democrats alike, wemay be victims of Wall Street greed, governmentexcess, but not quite innocent." 'Cause we keep

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reelecting the same crowd to go back despiteknowing all they're doing wrong. He titles thispiece, "Dr. Frankenstein's Wall Street."

http://article.nationalreview.com/?q=NjkxZDJjMTViZDQ4NzhkMTRmNGRlZGNmZjgzMzhkZGU=

Rush Advices McCain: Turn Sarah Loose

RUSH: I was on Fox News yesterday afternoon,Martha MacCallum's show at five in theafternoon, and she asked me a question, and Ididn't quite hear everything she said, but the gistof the question was, "How come the McCaincampaign is not letting Palin interact with themedia?" And it had to do with the fact she's atthe United Nations and she's meeting all theseworld leaders and so forth. So today I see thePolitico has a story: "'Palin Press RelationshipGets Testy' -- Sarah Palin's relationship with hertraveling press corps went from barely existing todownright chilly Tuesday, when the two sidesbriefly engaged in a standoff over journalists'access to Palin's photo ops on the sidelines of theUnited Nations meetings here." Biden's notdoing a whole lot of press conferences. Let me

tell you what's going on here. The first thing youhave to remember is Palin's job is not to bebuddies with the Drive-By Media. Go back to heracceptance speech in St. Paul. She's not here tobe friends with the Drive-Bys. She knows theydon't want to be her friend. She's doing Katie

Couric tonight. She went out and she's donesome of these things, she did Hannity and acouple of others, but she's not doing pressconferences. She's not out there trying to woothem.

When Palin shows up with McCain, they takehundreds of questions from voters at thesejoint town hall meetings that they're doing. I've watched 'em do it. They're very good. Andthe questions that they take from theaudience, these town hall things are betterquestions than the Drive-Bys would ask, they'revery random. The Drive-Bys just want to set upsome "gotcha" moment. That's what theywant. The bitter clingers get this, too. You andI, we bitter clingers, we get it. The people outthere hate the Drive-By Media right now. Werealize we're running against the Drive-Bys,we're running against the Democrats, we're

running against Ahmadinejad. Cookie did a greatthing here. We've got Ahmadinejad from hisspeech yesterday at the UN and gone back andfound Obama saying much the same thing atvarious spots along the campaign trail. I do wish,however -- and this is what I told MarthaMacCallum on the Fox News Channel -- I wishthey'd let Palin go, not press conferences, let hergo out and do these rallies.

Get her out there. She's the one that's electrifiedthe whole base. She's the one that's electrifiedthe election. She's the one that turned this thingaround. Get her out there. I'm not talking aboutpress conferences and little chats, sitting aroundwith the Drive-Bys. My fear is that every timeI've heard her speak now in the last couple oftimes, she's been mirroring McCain's message ofreform, that Obama's never worked withRepublicans but that McCain has worked with

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Democrats. That's not how to use her. McCaincan handle being McCain. They need to send herout there and let her be who she is, as she wasintroduced. I wish they'd do that. Now, it couldbe they're saving her, they don't want tooverexpose her, save up here for the last two- orthree-week crunch.

Desperate Obama Supporters

RUSH: The official transcriber of this program, ofcourse, is known to one and all as Dawn. AndDawn just sent me an e-mail. She's on the otherside of the glass; she just sent me an e-mail. Afriend of hers went into the Whole Foods today,parked in the parking lot, went in the shop atWhole Foods. When this friend of hers came out,there was a note on Dawn's friend's car. Now,Dawn's friend's car had a "Stop Child Abuse" tag,bumper sticker or something on it. It's a licenseplate, a "Stop Child Abuse" license plate. Allright, so Dawn's friend comes out of Whole Foodsand there's a note on the car window. The notesays, "I see your 'Stop Child Abuse' tag. Did yourealize if a rapist gets a child pregnant, SarahPalin wants to force that child to have the baby?" The Obamaites are patrolling the Whole Foodsand other grocery stores, the mall parking lotshere, and they're looking for any opportunitywhatsoever. Now, there's so much to say aboutthis. My attitude is, "This is the actions of abunch of panicked, insecure, not-confidentpeople, and they know they are lying." It doesn'tmatter to me that they know they're lying, butthis is not what people who are confident aboutwinning elections do. They don't want to win theelection. They don't want to mandate. They justwant power. They are lost souls withmeaningless lives. They are sick. Our society hasgotten so sick.

[You may recall that Obama has told hissupporters to get in the faces of independentsand conservatives; he said, “I need you to go outand talk to your friends and talk to your

neighbors. I want you to talk to them whetherthey are independent or whether they areRepublican. I want you to argue with them andget in their face." Mission accomplished.]

http://michellemalkin.com/2008/09/18/chicago-thug-urges-cult-followers-to-get-thuggish-too/

Dems Have the Votes and BushWhy not do the $700 Billion Bailout?

[This is long, but it explains a lot]

RUSH: Here are a couple sound bites from JohnBoehner and Roy Blunt, the Republican leaders,at a little press conference when they came outof a meeting of their conference. Boehner first.

BOEHNER: I don't know what games were beingplayed at the White House yesterday. They gangup on Boehner. But if they thought they wererolling me, they were kidding themselves.

RUSH: I know exactly what happened, and sodoes he. He's respecting the request not to talkabout it, but he was the focus of this. Look,Boehner shows up along with the Democrats --Barney Frank, Chris Dodd and so forth. If you'rejust hearing this for the first time, Obama showsup after having been briefed by friends of theTreasury Secretary, Henry Paulson, at GoldmanSachs. Obama did not know what the Republicanposition on this was. He had to be briefed. Allthe Democrats in the White House meetingdeferred to Obama, letting him speak for them. The objective was to set this up as, "Obamawalked in, took over the meeting, got it all done,was dynamic," blah, blah, blah, blah, blah. Thefirst thing Obama did was repeat the talkingpoints he'd been sent. "The Republicans in theHouse are the problem here, right?" he askedPaulson. That's what Boehner means by being"ganged up on," because everybody knows whatconservatives believe and what they are, andthere was no surprise here. There was never any

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deal. So that caused the meeting to go south. The meeting was lost. Obama blew it with hisincompetence. Here's Roy Blunt.

BLUNT: Clearly the Democrats have a majority inboth houses of the Congress. If they want to dothis by themselves, they can do this bythemselves any minute they want to. If theywant to do this with us, we're prepared to havethat negotiation.

RUSH: Apparently they're not even talking tothem. That's Roy Blunt from Missouri. It's his sonthat's the governor in Missouri, Matt Blunt. That's fascinating. He's agreeing with mysentiments here: They can do this all bythemselves. They can drill for oil all bythemselves! There's a whole bunch of stuff theycould do by themselves but they're not doing it.

All right, Rasmussen daily tracking poll. Sandy inChicago, you're not going to like this. But it's thenews. "Daily Rasmussen tracking poll Friday,"today, "shows Barack Obama attracting 50% ofthe vote, McCain earns 45. This is Obama'sbiggest lead since his convention bounce peakedwith a six-point advantage. New data showsMcCain's lead is down to a single percentagepoint in Ohio and Florida. He leads by eight inWest Virginia. Obama with a modest advantagein Pennsylvania. Virginia update released later. Obama now leads by five among unaffiliatedvoters. Last week, the unaffiliated voters wereleaning in McCain's direction. Stunning," saysRasmussen, "to note how rapidly the dynamics ofthe campaign have changed. Two weeks ago, justbefore the Wall Street financial crunch becamevisible, McCain was up by three points in theaftermath of his convention. A week ago today,the candidates were even. Now Obama's lead isapproaching new highs."

RUSH: Purely anecdotal, but most of the callersthat are really upset and complaining about this,all this going on, are women today, which I like,

don't misunderstand, and they get it. They areinformed.

Ladies and gentlemen, a Senate source said hereat the top of the hour to expect a Senate bill tobe out by midnight tonight. Now, that'sinteresting. We all know who runs the Senate,Dingy Harry. If there's a Senate bill out bymidnight, that's a little bit before Senator McCaincan get back to Washington -- he-he-he -- to helpparticipate in getting it done. Now, in regard tothis bill coming out, the Senate version of the billcoming out, a lot of you are already calling ande-mailing members of Congress and the Senate. There is a system in place that was started duringthe Clinton years, whereas all legislation that hasbeen passed by the House gets posted on theInternet so anybody and everybody can read itprior to the president signing it. It's called theThomas System. This obligation needs to behammered. This rescue plan, when it finally ishammered out, the Senate bill, House bill, andthen when they get their conference committeeversion of it, this legislation must be on theThomas System, it must be on the Internet sothat everybody can analyze it before voting. Ifthe pressure can be brought to put that bill -- forexample, if it's clearly stated in the bill that 20%of this bill is going to ACORN, people need to beable to see that, people need to be able to see iton the Internet and blow up over it. They areobliged to do this already.

My guess is that because of the urgency and thattime is of the essence that they might try to forgoit because they don't want anybody to know. Sothis means to be hammered, that this legislationneeds to be put up on the Internet on theThomas System so that everybody can analyze itbefore voting. All right, to the audio sound bites.Again, let me refresh your memory if you're justjoining us. Let me tell you what happened in theWhite House meeting to set up these next seriesof sound bites. Obama was given the floor tospeak during White House negotiations for allDemocrats. The Democrats deferred to Obama

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so that he could be the sole speaker for theDemocrat Party. This was done by design. Theywanted to be able to spin after the meeting thathe was just a brilliant negotiator, went in therewith a command of the issues, took over themeeting from the president, was actingpresidential even though he's not the president,and put us well on the road to getting a deal,blah, blah. But that's not what happened. Obama blew it. It blew up in his face.

Obama, on his way over there, apparently -- thisis from an Obama campaign source. Obama didnot know what the House GOP position was onhis way to the White House. "According to anObama campaign source, the notes were passedto Obama via senior aides traveling with him,who had been e-mailed the document via acurrent Goldman Sachs employee and Wall Streetfundraiser for the Obama campaign. 'It was madeclear that the memo was from "friends" and wasreliable,' says the campaign source. The memoallowed Obama and his fellow Democrats to boxin Republican attendees and essentially tookwhat President Bush had billed as a negotiatingmeeting off the rails." What happened wasObama's notes contained the details of the HouseRepublican proposal, and that's what he startedwith. He criticized it and asked Paulson what hethought of it. Paulson apparently then criticizedit, and that's what John Boehner's talking aboutbeing ganged up on.

Obama went in unprepared. He did not have aprompter. Once he started out that way, themeeting fell apart, yelling and screaming, and itwas over, and it was reported that a beleagueredBush had to struggle to regain control of thingsand calm everybody down. Now, what'stroubling about this is that Hank Paulson wasworking in concert with Obama, apparently,according to all of this is, the American Spectatorblog -- Hank Paulson was working with Obama via-- he was removed from it -- via his friends atGoldman Sachs, his former firm, and Obamafundraisers. A House Republican leader who was

not present at the White House meeting, said,"Paulson and his team have not acted in goodfaith for this President or the administration forwhich they serve." So that's what happened inthe White House meeting. That's why all thecaterwauling today. By the way, Obamaadmitted all this. If you knew what happened,and you heard his appearances on TV last night,then you would have no doubt what he wastalking about. He said, (paraphrasing) "Well, youknow, I work better on the phone from afar." He's basically saying, "I coulda done better if Iwasn't there by talking on the phone, 'cause Ineed my thinkers to tell me what I'm hearing andwhat I should respond to." He didn't say that, I'madding that. In another bite with Brit Hume, hesaid, "Well, this is the problem with insertingpresidential politics here." So Obama knew theyblew it big time, and so the Democrats today,their whole agenda is to dump on McCain forblowing this up, and now we go to the audiosound bites. Here's Barney Frank this morning onthe CBS Early Show, the anchorette said, "Wasn'tthe idea to get together and reach a compromise,had you in fact reached a compromise that fellapart?"

FRANK: I didn't know I was going to be thereferee of the internal Republican ideological civilwar.

REPORTER: Right.

FRANK: To my surprise yesterday the HouseRepublicans came up with their own entirely newplan. And it is a -- an ambush plan.

RUSH: There's nothing new about what theHouse Republicans believe. Conservatism isconservatism. The House Republicans werenever involved in the deal. They announced adeal yesterday that didn't exist, the Democratsdid. They announced a deal that didn't exist totry to head off McCain's presence having anyimpact on this. So now they're doing a 180turning this all the way around, the Drive-Bys are

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not going to tell you this, you're not going to hearthis anywhere else. They're carrying the waterfor people like Barney. It was an ambush. They're trying to portray the White House plan asan ambush 'cause their candidate botched it. Barney Frank again, the anchorette at CBS, "Well,do we have a solution by the end of the weekend,yes or no?"

FRANK: It depends on the House Republicansdropping this revolt against the president andcooperating and trying to amend the plan and atthis point I can't give you a yes or no because it'sup to the House Republicans and their war, Ithink on behalf of Senator McCain, with PresidentBush.

RUSH: Nothing could be further from the truth. The fact of the matter is there never, ever, was adeal. The Democrats have the votes to passeverything that they want. We don't need theRepublicans. Ask yourself why. If it's such a greatdeal, if this will save America, if this will preventdisaster, if this will prevent a depression, whydon't the Democrats, thinking the country isimportant first, pass the bill? Why do they wantRepublican votes on this? If this is so wonderful,if this is the best deal ever, why don't they justembarrass the Republicans, pass this and leavethe Republicans out of it? As I said earlier, theywant the Republicans to refute their beliefs. Theywant the Republicans to repudiate conservatismso that they can go back and make 'em do it overand over again This is pure, 100% politics. It'snot about the deal right now, it's not about theeconomy, it's not saving it. This is aboutpresidential politics, and this is about destroyingHouse conservatives. Last night, Washington,Capitol Hill, after a meeting at the White House,Barney Frank spoke to the press.

FRANK: Senator McCain's not -- did not haveanything substantive to say, said the mostgeneral things. Based on what's now going on, Ican tell you this. There is no reason in the worldwhy anybody should use this as an excuse to stay

away from a debate. There is absolutely noreason at all why Senator McCain should notdebate tomorrow except he doesn't want to.

RUSH: Well, now, Congressman Frank, I have aquestion. You guys are saying that McCain'spresence blew this up. You're saying McCainshowed up and you were ambushed, and DingyHarry and Claire McCaskill and Chuck Schumerare all saying, "Get McCain outta town. McCainblew this. McCain went into that meeting and itall fell apart." Now, I want to know, if McCaindidn't say anything, if McCain didn't say anythingsubstantive, and if he didn't say anything 'til theend of the meeting, how could he have blown itup? And Dingy Harry has been saying today thatMcCain didn't say much, frankly couldn'tunderstand what he was saying. Dingy Harry saidhe spoke at the end of the meeting, "I don't reallyknow what he said." Then how could he haveblown it up? How could McCain have blown itup? We know that that did not happen. Lastnight, same press conference, Barney Frank.

FRANK: No. Ms. Pelosi will not bring a partisanbill to the floor. She will not say that you're goingto have a one-sided Democratic bill beingattacked by the House Republicans in response toa request by George Bush to do something. Andthat's not just internal politics. That's not goodfor the country.

RUSH: Once again, the question must be asked,who cares, Bush is a lame duck, if this is sowonderful, if this is so great, if you guys couldown Washington for all those future yearsbecause you're the only ones that have the gutsto do something right, why not do it? She won'tbring forth a partisan bill to the floor? Meaning,they're not going to do this without Republicancover, 'cause it must have some problems.

RUSH: Yeah, it's fascinating to me to listen toBarney Frank lie and spin. Barney Frank is, I think,more than anybody else responsible for thissituation -- and he twists it into the fault of the

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Republican minority in the House! TheRepublican minority, parliamentarily, cannot stopanything Barney Frank wants to do. Look at thatlayer of lies that we got. House Republicanscoordinating with McCain against Bush,the Republicans have no role in this otherthan fixing the problem, and they're onlyresponding 'cause Bush wants somethingdone? This is the guy who said that hedidn't know there was a maleprostitution ring going on his ownbasement? Barney Frank needs to testifyunder oath for what he has done, and sodoes Chris Dodd!

So Pelosi will not bring a one-sided bill tothe floor, says Barney Frank. So nowthey're deferential to the Republicans. The reason she won't bring this bill to thefloor and ram it through is because thebill obviously stinks, and she needs cover. Meanwhile, Obama has not supportedthe plan. Has anybody noticed this? Ihave noticed it. Have you heard Obamasupport the plan? We've got a plan, right? Wehave a plan; everybody had signed on to it, theysaid yesterday morning. And then we find outthere wasn't a plan, there wasn't an agreement,and I haven't heard Obama say he supports it. See, Obama votes "present." Obama doesn'tmake decisions. That's why he doesn't want tobe there. He wants to be on the phonenegotiating and listening.

So seems to me that we could easily say here thatObama and the Democrats don't agree, thatNancy Pelosi and Barney Frank want theconservatives to back a bill that their own partyleader has refused to back as of right now. They're doing everything to cover for theincompetence of this little man, Barack Obama. I realize you, some of you just joining me, maythink that I have to prove it when I say thatBarack Obama admitted he blew up the WhiteHouse meeting. I'm going to give you two soundbites. First he had a press conference at the

Mayflower Hotel. Not long, some hours after theWhite House meeting blew up, enough time forhis thinkers to come up with an explanation. Younow know what happened in there.

When Bush went to the Democrats and askedthem to start speaking in negotiation, they alldeferred to Obama. He didn't know what to say.He had been given notes by friends of HenryPaulson in an e-mail on the way to the meeting. The first thing on the notes was: criticize theRepublican proposal. John Boehner was sittingthere. He asked Paulson about it. This caused abrouhaha. The meeting fell apart. Obamawalked out of there and the Democrats, HarryReid and Pelosi... I guarantee you they walked outof there knowing full well what had happened,that their guy and his competence had been onfull display, that that meeting broke downbecause of him and his inability to run it and leadit, as they tried to engineer. So they had to startdamage control, and the first thing out of the boxwas this.

OBAMA: I think that the way that I've beenworking over the last week constantly in contactwith the secretary and the congressional leaders,

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um, er, you know, may end up creating anenvironment in which you can actually getsomething done.

RUSH: So now that you know what happened inthe meeting, now you can interpret this. "I workbetter when I'm not there. I work better on thephone, you know, when I'm in constant contacton the phone, and that way people with me cantell me what I'm hearing and tell me what myresponse ought to be, because I need my thinkerswith me. But if I'm in the room and I can'tconsult my thinkers 'cause everybody can see meconsulting the thinkers, then they know I'm afraud. If I don't get my Cliff Notes fromsomebody, I'm in big trouble."

Then, after this, Obama started making therounds of the cable networks, asking for time. Heasked for time on Fox News Channel's SpecialReport with Brit Hume. And a stunned Brit Humesaid, "Obama has contacted us and wants to goon the air." So he gets him, and Hume said,"Look, if tomorrow midday we're where we are,"meaning today, "and if we still got an outstandingproblem with a package that isn't agreeable sothat you can get majorities of both parties, bothhouses, would it make sense for you to go downto Mississippi or would it be better to stay hereand try to do what you could?"

OBAMA: Well, here -- here -- here's my, uh, myobservation, "Brett," and I think it -- it may havebeen confirmed in the meeting today. Uh, whenyou inject presidential politics into delicatenegotiations, uh, s-sometimes it's not helpful. For us, precisely at this difficult time, to be ableto say to the American people for 90 minutes --and it's possible to fly down to Mississippi andback fairly quickly -- "that this is where we wantto take the country and this is what thispotentially means for you," I continue to thinkthat's the most important thing we can do.

RUSH: Okay, so the first thing out of his mouth,"You know what, when you inject... it confirmed

what happened in the meeting today. You putpresidential politics in there, it's just not helpful." They walked out of there last night. I guaranteeyou, the Democrats walked out of there scared todeath that the truth would get out that Obamawas set up for a huge success and blew it, so theystarted the CYA last night, and that's why theseDemocrats today are carrying the water: "GetMcCain out of town; McCain blew it up," and soforth and so on. Just wanted you to know thetruth. But the bottom line is: old Barry hasn'tsupported the plan, either.

Obama has not said when he thinks about thisplan -- that there was, by the way, the Democratssaid agreement in principle to yesterday. SoDingy Harry: "We want to know where McCainstands on this; McCain's gotta get the HouseRepublicans." Barney Frank: "I think we were setup. We gotta get McCain to get the HouseRepublicans in there. We're only doing thisbecause the president asked us to." So now theywant to help Bush? Ha! The Democrats want tohelp Bush get what he wants? (laughing) Right. So now, ladies and gentlemen, Barack Obamaonce again is given the opportunity to vote"present," not take a stand, not take a position. The more the politics of this unfolds, the more itis becoming crystal clear to me that there's a lotof stuff in this bailout bill that stinks to highheaven.

RUSH: Let me ask you a question, my fellowcitizens out there. If you are on the line for $700billion, and that's just for starters, do you want20% of it going to a corrupt, fraudulent voterregistration group called ACORN which has beenaccused of voter fraud throughout the country, isa Democrat grassroots organization, isresponsible for a big part of this problem and wasone of the mentor community organizationsObama worked with when he was a streetagitator back in Chicago? We're being told thatwe have a crisis. It could be a depression. Itcould be bad. We gotta do it now, and yet, 20%of the $700 billion is supposed to go to a

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Democrat voter registration group? You want topay for that? And, is there any single reporter,one single reporter, out there capable of askingthis question of Barney Frank or any othermindless liberal spewing their talking points? Isthere one reporter, one journalist, who will askthe ACORN question in relationship to a futurepossible crisis, recession, depression?

Additional Rush Links

Bill Clinton called Palin gutsy, spirited and real:

http://politicalticker.blogs.cnn.com/2008/09/24/bill-clinton-ill-campaign-for-obama-after-the-jewish-holidays/

Bill Clinton telling the media that Obama is theone dodging the debates:

http://blogs.abcnews.com/politicalradar/2008/09/bill-clinton-do.html

$100,000 grant that Obama was awarded back in2001...what happened to it? This soundsconsiderably more important than troopergate.

http://www.suntimes.com/news/watchdogs/1184049,CST-NWS-watchdog25.article

Obama’s round-faced brother George lives in ahut. Millionare Obama ignores him although heruns on the religious tenet, “I am my brother’skeeper.” This means, I will vote to take your taxdollars and give it to someone else who will votefor me next time around. George isn’t voting, soObama has given him no money at all.

http://www.telegraph.co.uk/news/newstopics/uselection2008/barackobama/2590614/Barack-Obamas-lost-brother-found-in-Kenya.html

This is important because it is a window into thesoul of Obama. You can see what he actually

does and how big his heart really is. He is aphoney, through and through.

More about Obama’s soul; what exactly does itmean to be a community organizer? Who isObama modeled after?

http://www.americanthinker.com/2008/09/barack_obama_and_alinskys_rule.html

Bush called for reforms of FNMA and FHLMC 18times in 2008 alone:

http://gatewaypundit.blogspot.com/2008/09/bush-called-for-reform-of-fannie-mae.html

Some men are off their noggins when it comes toSarah Palin as well. Democratic CongressmanAlcee Hastings logically explains: "Anybody totingguns and stripping moose don't care too muchabout what they do with Jews and blacks. So, youjust think this through."

http://blogs.abcnews.com/politicalradar/2008/09/florida-congres.html

18% of voters till undecided:

http://apnews.myway.com/article/20080924/D93D1RFG0.html

Libel charges threatened against Obama critics:

http://gatewaypundit.blogspot.com/2008/09/missouri-sheriffs-prosecuters-form.html

5 lying ads from Obama (this is from the NYTimes):

http://www.nytimes.com/2008/09/26/us/politics/26ads.html

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