Tuesday, November 4, 2008


The Obama Bargain Revisited

Back in March, a WSJ article [based on a book] by Shelby Steele analyzed Barack Obama in a unique way. One particular sentence from the article captured something odd about the Obama, "bargainers [like Obama] are always laboring to stay invisible."

For me, Steele highlighted an oddity about Obama as a candidate. The man would be favored to win any election this year, as long as he can obscure his most personal thoughts, hence the secrecy about college, Rev Wright, Ayers etc. Here's the quote in context, the entire article is copied at end of post:

And yet, in the end, Barack Obama's candidacy is not qualitatively different from Al Sharpton's or Jesse Jackson's. Like these more irascible of his forbearers, Mr. Obama's run at the presidency is based more on the manipulation of white guilt than on substance. Messrs. Sharpton and Jackson were "challengers," not bargainers. They intimidated whites and demanded, in the name of historical justice, that they be brought forward. Mr. Obama flatters whites, grants them racial innocence, and hopes to ascend on the back of their gratitude. Two sides of the same coin.

But bargainers have an Achilles heel. They succeed as conduits of white innocence only as long as they are largely invisible as complex human beings. They hope to become icons that can be identified with rather than seen, and their individual complexity gets in the way of this. So bargainers are always laboring to stay invisible. (We don't know the real politics or convictions of Tiger Woods or Michael Jordan or Oprah Winfrey, bargainers all.) Mr. Obama has said of himself, "I serve as a blank screen on which people of vastly different political stripes project their own views . . ." And so, human visibility is Mr. Obama's Achilles heel. If we see the real man, his contradictions and bents of character, he will be ruined as an icon, as a "blank screen."
An example of a 'blank screen' is yesterday's headline, Obama Says He Is Against Same-Sex Marriage But Also Against Ending Its Practice In CA.

All articles referenced are copied in full at end of post.

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The Obama Bargain

By SHELBY STEELE
March 18, 2008; Page A23

Geraldine Ferraro may have had sinister motives when she said that Barack Obama would not be "in his position" as a frontrunner but for his race. Possibly she was acting as Hillary Clinton's surrogate. Or maybe she was simply befuddled by this new reality -- in which blackness could constitute a political advantage.

But whatever her motives, she was right: "If Obama was a white man, he would not be in this position." Barack Obama is, of course, a very talented politician with a first-rate political organization at his back. But it does not detract from his merit to say that his race is also a large part of his prominence. And it is undeniable that something extremely powerful in the body politic, a force quite apart from the man himself, has pulled Obama forward. This force is about race and nothing else.

The novelty of Barack Obama is more his cross-racial appeal than his talent. Jesse Jackson displayed considerable political talent in his presidential runs back in the 1980s. But there was a distinct limit to his white support. Mr. Obama's broad appeal to whites makes him the first plausible black presidential candidate in American history. And it was Mr. Obama's genius to understand this. Though he likes to claim that his race was a liability to be overcome, he also surely knew that his race could give him just the edge he needed -- an edge that would never be available to a white, not even a white woman.

How to turn one's blackness to advantage?

The answer is that one "bargains." Bargaining is a mask that blacks can wear in the American mainstream, one that enables them to put whites at their ease. This mask diffuses the anxiety that goes along with being white in a multiracial society. Bargainers make the subliminal promise to whites not to shame them with America's history of racism, on the condition that they will not hold the bargainer's race against him. And whites love this bargain -- and feel affection for the bargainer -- because it gives them racial innocence in a society where whites live under constant threat of being stigmatized as racist. So the bargainer presents himself as an opportunity for whites to experience racial innocence.

This is how Mr. Obama has turned his blackness into his great political advantage, and also into a kind of personal charisma. Bargainers are conduits of white innocence, and they are as popular as the need for white innocence is strong. Mr. Obama's extraordinary dash to the forefront of American politics is less a measure of the man than of the hunger in white America for racial innocence.

His actual policy positions are little more than Democratic Party boilerplate and hardly a tick different from Hillary's positions. He espouses no galvanizing political idea. He is unable to say what he means by "change" or "hope" or "the future." And he has failed to say how he would actually be a "unifier." By the evidence of his slight political record (130 "present" votes in the Illinois state legislature, little achievement in the U.S. Senate) Barack Obama stacks up as something of a mediocrity. None of this matters much.

Race helps Mr. Obama in another way -- it lifts his political campaign to the level of allegory, making it the stuff of a far higher drama than budget deficits and education reform. His dark skin, with its powerful evocations of America's tortured racial past, frames the political contest as a morality play. Will his victory mean America's redemption from its racist past? Will his defeat show an America morally unevolved? Is his campaign a story of black overcoming, an echo of the civil rights movement? Or is it a passing-of-the-torch story, of one generation displacing another?

Because he is black, there is a sense that profound questions stand to be resolved in the unfolding of his political destiny. And, as the Clintons have discovered, it is hard in the real world to run against a candidate of destiny. For many Americans -- black and white -- Barack Obama is simply too good (and too rare) an opportunity to pass up. For whites, here is the opportunity to document their deliverance from the shames of their forbearers. And for blacks, here is the chance to document the end of inferiority. So the Clintons have found themselves running more against America's very highest possibilities than against a man. And the press, normally happy to dispel every political pretension, has all but quivered before Mr. Obama. They, too, have feared being on the wrong side of destiny.

And yet, in the end, Barack Obama's candidacy is not qualitatively different from Al Sharpton's or Jesse Jackson's. Like these more irascible of his forbearers, Mr. Obama's run at the presidency is based more on the manipulation of white guilt than on substance. Messrs. Sharpton and Jackson were "challengers," not bargainers. They intimidated whites and demanded, in the name of historical justice, that they be brought forward. Mr. Obama flatters whites, grants them racial innocence, and hopes to ascend on the back of their gratitude. Two sides of the same coin.

But bargainers have an Achilles heel. They succeed as conduits of white innocence only as long as they are largely invisible as complex human beings. They hope to become icons that can be identified with rather than seen, and their individual complexity gets in the way of this. So bargainers are always laboring to stay invisible. (We don't know the real politics or convictions of Tiger Woods or Michael Jordan or Oprah Winfrey, bargainers all.) Mr. Obama has said of himself, "I serve as a blank screen on which people of vastly different political stripes project their own views . . ." And so, human visibility is Mr. Obama's Achilles heel. If we see the real man, his contradictions and bents of character, he will be ruined as an icon, as a "blank screen."

Thus, nothing could be more dangerous to Mr. Obama's political aspirations than the revelation that he, the son of a white woman, sat Sunday after Sunday -- for 20 years -- in an Afrocentric, black nationalist church in which his own mother, not to mention other whites, could never feel comfortable. His pastor, Rev. Jeremiah Wright, is a challenger who goes far past Al Sharpton and Jesse Jackson in his anti-American outrage ("God damn America").

How does one "transcend" race in this church? The fact is that Barack Obama has fellow-traveled with a hate-filled, anti-American black nationalism all his adult life, failing to stand and challenge an ideology that would have no place for his own mother. And what portent of presidential judgment is it to have exposed his two daughters for their entire lives to what is, at the very least, a subtext of anti-white vitriol?

What could he have been thinking? Of course he wasn't thinking. He was driven by insecurity, by a need to "be black" despite his biracial background. And so fellow-traveling with a little race hatred seemed a small price to pay for a more secure racial identity. And anyway, wasn't this hatred more rhetorical than real?

But now the floodlight of a presidential campaign has trained on this usually hidden corner of contemporary black life: a mindless indulgence in a rhetorical anti-Americanism as a way of bonding and of asserting one's blackness. Yet Jeremiah Wright, splashed across America's television screens, has shown us that there is no real difference between rhetorical hatred and real hatred.

No matter his ultimate political fate, there is already enough pathos in Barack Obama to make him a cautionary tale. His public persona thrives on a manipulation of whites (bargaining), and his private sense of racial identity demands both self-betrayal and duplicity. His is the story of a man who flew so high, yet neglected to become himself.

Mr. Steele, a research fellow at Stanford University's Hoover Institution and the author of "A Bound Man: Why We Are Excited About Obama and Why He Can't Win" (Free Press, 2007).
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Monday, November 3, 2008


Jermain Taylor

Miami Herald boxing article by Santos Perez on Jermain Taylor.
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Taylor ponders return to middleweight

Posted on Mon, Nov. 03, 2008

BY SANTOS A. PEREZ

An ease in weight reduction under familiar surroundings suddenly has intrigued Jermain Taylor about a possible return to the middleweight division.

Taylor apparently was finished with the 160-pound class following his title-losing bout against Kelly Pavlik in September 2007. In their direct rematch six months later, Taylor and Pavlik fought in the super-middleweight class.

In fact, Taylor, who also lost to Pavlik in the second bout, will fight another super-middleweight fight against Jeff Lacy on Nov. 15 in Nashville.

But Taylor's return to Miami for training camp and Pavlik's recent loss against Bernard Hopkins is creating a captivating scenario for the former middleweight champion and 2000 U.S. Olympian.

''There is a possibility I might go back to 160 [pounds],'' Taylor said. ``Don't count it out. As long as I can physically handle it -- why not?''

Although Taylor lost twice against Pavlik, he scored consecutive victories against Hopkins in 2005. The 43-year-old Hopkins easily defeated Pavlik in a light-heavyweight bout Oct. 18.

With a victory over Lacy, a teammate of Taylor's on the 2000 U.S. Olympic team, Taylor could move to light-heavyweight or return to the middleweights for third bouts against Hopkins and Pavlik, respectively.

''I don't know what I am going to do but here it is -- the middleweight champion lost to the man I beat twice,'' Taylor said.

That Taylor is thinking of a middleweight comeback centers on the advantages of training in Miami. Taylor trained locally during the first five years of his professional career but set up training camps elsewhere after the first of his two victories against Hopkins.

''I am at 5 or 6 pounds over the weight limit,'' Taylor said. ``I can thank Miami for that. The weight easily comes off here.''

Taylor's Miami return comes after the longest layoff of his professional career.

''It was hard, I was down on myself,'' Taylor said of the period following his second loss against Pavlik. ``But I had a great summer with my wife and kids. It was well overdue.''

Late in the summer and rejuvenated by his layoff, Taylor (27-2-1, 17 KOs) informed longtime trainer Ozell Nelson he was ready to resume boxing.

''With the long layoff, he had time to think about it, sleep on it and think about it again,'' Nelson said. ``Now his mind is great and is focused on this fight.

``Jermain understands if he wins, he is back in the mix.''

JONES BOUT CRUCIAL

Taylor's future fight schedule could depend on the outcome of Saturday night's light-heavyweight match between Joe Calzaghe and Roy Jones Jr. in New York.

Hopkins likely will target Jones if the Pensacola native defeats Calzaghe. But if Calzaghe wins, Hopkins could pursue a third bout against Taylor at a higher weight than in their first two matches.

MIAMI RESIDENT LOSES

Ukraine's Sergiy Dzinziruk retained his World Boxing Organization junior-middleweight title with a unanimous decision over Miami resident Joel Julio on Saturday in Germany.

Dzinziruk (36-0) won the bout on two judges' scorecards 116-112 and 117-111 on the third. Julio, in his first bid at a world-title belt, fell to 34-2.
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Dem Rep Nadler: 'Obama Lacks Political Courage'



In the real world--not the campaign world, where intentionally misleading responses are tolerated [i.e. Obama's age at the time of the Ayers bombings is given, when the question of why he would associate with an unrepentant terrorist clearly has nothing to do with the actual bombings themselves]--In the real world, US Congressman Jerrold Nadler struggles to give a believable answer to a constituent.

So why would Obama tolerate a Rev Wright for 20 years? He lacked 'political courage, guesses Nadler. His constituent then puts it more accurately, 'he lacked the balls.' When your best case scenario is that your likely next president lacks 'political courage' [refusal to release college records, Ayers, Rev Wright, Acorn, etc], then citizens who don't drink the Kool-Aid have someone they do not trust in the White House.

When you add insult [giving his age at time of bombings] to injury [lack of trust], you have new president with an extremely motivated opposition. In practical terms, it means that Obama's political calculation factored in the potential damage which could result from his lying, and decided that they paled in comparison to getting elected--a rational calculation if the media is in your pocket.

The challenge for the rest of us is to make the lies so damaging, in terms of an unforgiving political opposition, that the 2012 candidates factor in the ramifications of such an intense opposition into their, 'lie or don't lie political calculus.' Again, in practical terms, our political duty is to echo the words of Michael Buffer....

Video link to US Rep Jerrold Nadler responding to constituent.


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Electoral Map: McCain Needs Pennsylvania


As per Karl Rove's electoral map, even with McCain getting all the toss-up and close states in which Obama has not broken 50%, the only path to victory for McCain has to include Pennsylvania. On the never say die part of the argument, we'll soon find out if Ed Rendell was just hamming it up or if the state really is close.

McCain's Path to 270

160 - McCain solid
67 - Toss-ups - FL / IN / MI / NC / ND
38 - Obama in lead, but not over 50% - OH / NV / VA
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265
21 - Gets Pennsylvania
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286
<13> - Can then afford to lose Virginia
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273
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Sunday, November 2, 2008


Elections and All Souls Day

Believe it or not, there is a connection.

The reason we vote on a Tuesday instead of a Monday was that prior to the 20th century, trips to vote could take up an entire day and people would begin those trips on a Sunday. The reason we vote on the first Tuesday, instead of the first Monday, is that 'All Souls Day' is a Holy Day of Obligation for us Catholics.

The reason elections don't define us as Catholics is best summarized by our favorite ethernet priest--God's sense of humor gives me wisdom through a priest who embraces the kind of cultural icons [Springsteen] I loathe--Fr Vallee:

It may be hard to get to sainthood. But I don’t believe it I quite so hard to get into heaven, thank God. My Meme was not terribly devout. She could be a very difficult sometimes. As far as I know, there are no miracles attributed to her or extraordinary acts of Christian heroism. She smoked and drank and swore a little too much – clearly I am her biological grandson. Yet for all that, she departed faithfully and, I hope and believe, rests now in the arms of Our Lord – not because she was so good but because God is so good. At the end, she recognized Our Lord, surely Our Lord recognized her. God is not looking for ways to keep us out of heaven; God is looking for ways, in spite of ourselves, to get us into heaven. For most of us, today is our feast. As Bruce Springsteen sang, “It’s hard to be a saint in the city.” Fortunately, it is not quite so difficult to be a child of God. “Grant them eternal rest. O Lord, and may perpetual light shine upon them. May their souls and the souls of all the faithful departed, through the mercy of God, rest in peace.”
The entire Homily referenced at end of post.

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Fr Vallee's Homily - 11/2/08

I. “It’s hard to be a saint in the city.”
Today we celebrate the feast of All Souls, the day when we remember all of the faithful departed. I suppose that, like myself, most of you will have to settle for this day when you die. Yesterday was the feast of All Saints which, I guess, is sort of like the first string. Ah well, never mind! I am happy just to be on the team with “faithful departed.” In any event, today is the day when we remember the dead. For my part, I would like to recall my Meme, my Dad’s mom. Not a saint, I suppose. But, as you will see, faithfully departed

II. Meme story
Several years ago, my paternal Grandmother died. She died of Alzheimer’s disease. As you know, it is very terrible disease. We slowly watched her forget everything, until there was nothing left but primal desire to live. The disease, as you know, first erases short term memory and then long term memory. Pretty early on, my Meme forgot my brother and I, her grandchildren. But, for a long time she would still remember my father, her son. After a few years, she would still recognize my Dad but would call him “Joe.” Joe was my grandfather’s name. Eventually, she did not even recognize her own son. It was sad and terrible, like watching someone be erased from the inside out.

Anyhow, when the end came, Meme, was in a nursing home. She would just lie in bad all day and stare at the ceiling. She had not spoken a coherent word in over 6 months. My dad called me and said that I should go and give her last rites. When I got there, Meme was lying down flat on the bed, staring into space. I had brought communion and oils but figured that I would not need communion because she wouldn’t be able to receive. Bear in mind that my Meme had not spoken for 6 months and had not recognized me, her grandson, for years. When I walked in, something kind of scary and extraordinary happened. Meme shot up in bed, reached out, grabbed my Roman collar and started muttering in a panic. As my Dad and I listened, she was saying: “hurry up, hurry up, do it.” I did not understand what she meant. But she kept muttering, like she didn’t want to forget what she wanted. She kept saying, “Hurry up, do it.” The pyx, holding the Eucharist, was around my neck. She was staring at it and saying, “Hurry Up, Do it.” Realizing what she wanted, I went to get the Eucharist but it wasn’t easy because she wouldn’t let go of my collar. She had me by the neck, muttering intensely. I gave her communion. Instead, of saying “Amen,” she said, “you done?” I said, “yes Meme, I am done.” She then let go of my collar, lay down flat on the bed and never spoke another word to another living soul. About a week later, she died.

III. Conclusion
It may be hard to get to sainthood. But I don’t believe it I quite so hard to get into heaven, thank God. My Meme was not terribly devout. She could be a very difficult sometimes. As far as I know, there are no miracles attributed to her or extraordinary acts of Christian heroism. She smoked and drank and swore a little too much – clearly I am her biological grandson. Yet for all that, she departed faithfully and, I hope and believe, rests now in the arms of Our Lord – not because she was so good but because God is so good. At the end, she recognized Our Lord, surely Our Lord recognized her. God is not looking for ways to keep us out of heaven; God is looking for ways, in spite of ourselves, to get us into heaven. For most of us, today is our feast. As Bruce Springsteen sang, “It’s hard to be a saint in the city.” Fortunately, it is not quite so difficult to be a child of God. “Grant them eternal rest. O Lord, and may perpetual light shine upon them. May their souls and the souls of all the faithful departed, through the mercy of God, rest in peace.”
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Obama: The Missing Data

OK, let the non-violent and loyal opposition begin. Here's a list of what we don't know, courtesy of Gateway Pundit:

  1. Occidental College records -- Not released
  2. Columbia College records -- Not released
  3. Columbia Thesis paper -- not available, locked down by faculty
  4. Harvard College records -- Not released, locked down by faculty
  5. Selective Service Registration -- Not released
  6. Medical records -- Not released
  7. Illinois State Senate schedule -- "not available"
  8. Law practice client list -- Not released
  9. Certified Copy of original Birth certificate - - Not released
  10. Embossed, signed paper Certification of Live Birth -- Not released
  11. Harvard Law Review articles published -- None
  12. University of Chicago scholarly articles -- None
  13. Record of baptism-- Not released or "not available"
  14. Illinois State Senate records--"not available".


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Catholic Vote


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Saturday, November 1, 2008


Early Voting Pays Off for Miami

Miami goes a month without murder

All articles referenced are copied in full at end of post.
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Miami goes a month without murder

Posted on Sat, Nov. 01, 2008

BY DAVID OVALLE
Midnight Friday marked the end of October and the news from Miami's homicide office was what didn't happen.

No one was murdered.

October passed without a homicide -- meaning for the first time since May 1966, an entire month went by in the city of Miami without someone succumbing violently.

''That's an amazing thing,'' said Miami Lt. John Buhrmaster, a longtime homicide investigator. ``It's a great record when people are not killing each other.''

The total actually stood at 35 days and counting. The last homicide: Sept. 26, the Overtown shooting death of Demetrius Sherman, 26.

THE STATS

Overall, Miami has notched 55 homicides in 2008. Last year, the overall number was 87.

As of late Friday, all county police agencies had logged 217 homicides.

Miami's milestone isn't to say detectives haven't been working.

Homicide detectives investigate suicides, accidents and natural deaths where no doctor is available to sign a death certificate.

Just Friday, Miami's homicide unit was tasked to investigate the deaths of three migrants who apparently drowned after jumping from a suspected smuggling ship off Virginia Key.

In Miami, they also investigate near homicides, like the Oct. 22 case of Coconut Grove bouncer Bobby Lee Porter, shot twice by his girlfriend's brother, police say.

Two bullets pierced femoral arteries in both his legs. He lost massive amounts of blood -- but Ryder Trauma Center doctors saved him.

SAVING PEOPLE

Homicide detectives credit ever-improving emergency care with saving people who, perhaps 20 years ago, might have met their demise.

''It helps us tremendously,'' said Miami Cmdr. Delrish Moss, a spokesman and former homicide investigator.

``They don't become murder victim, they become witnesses and help us get the offenders off the streets.''
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Barack Obama to Personally Deport Aunt

[AP-BHO Newswire] Sensing that his illegal alien aunt [Zeituni Onyango]--who has been living in public housing in Boston for at least 5 years--might be the only obstacle between him and the presidency, today Obama offered to 'personally deport the scoundrel.' The usually placid Obama had not been this perturbed since he disavowed the Rev Wright, about 6 weeks after he had indicated that he 'could no more disavow the Rev Wright than he could disavow his own grandmother.'

Speaking of which, it was also revealed that the visit to his grandmother last week came perilously close to having been canceled when the campaign became aware that she had yet to pay her property taxes. However, the campaign granted the grandmother a 'temporary waiver' when it was discovered that the taxes were not technically late, but rather had just missed the first payment option with no interest surcharge. The terminally ill grandmother expressed appreciation for the empathy shown her by the campaign and promised that 'it will never happen again, even if I have to sell the house or pull a Kevorkian.' The campaign was quick to respond that Obama was only 12 years old when Kevorkian ended his first life and that his grandmother had completed a notarized DNR which the campaign filed with the FEC.

The news went from bad to worse for his 'supposed aunt,' Ms Zeituni Onyango. Late this afternoon an Obama legal team was dispatched to Kenya to challenge the supposed blood lineage between the two. In addition, the Obama campaign hired noted OJ Simpson attorney, Barry Scheck, to challenge any DNA connection and strongly implied that they had entire villages ready to testify as to 'a shocking lack of probity during her fertile years, just like many of her supposed kin.'

Scheck went on the record to note, 'the Kenyan records are just a mess, it may be 2 election cycles before we have the facts straight.' In the meantime, all potential Obama relatives were ordered quarantined in the lovely tiny island of Cape Verde. When asked how long they would have to remain there, Scheck responded, 'Why do you assume they would want to leave. Please don't let your colonial mentality blind your objectivity in this issue.' The New York Times reporter immediately apologized and performed 20 push-ups as penance. Unfortunately, it proved to be too little too late. When editors in New York learned of his insubordination, he was fired immediately and forced to pay his own way back into the US.


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60 Minutes Catches Up to 2 Think Good

Sorry couldn't help myself. But I did have a post on Oct 13th which identified the the Commodity Futures Modernization Act of 2000 as a prime example of both political parties being part of the problem in the financial meltdown. The idea for that post was a previous segment on 60 Minutes which focused on credit default swaps and how those instruments were at the root of the problem. So I tune to the latest 60 Minutes [on DVR of course, haven't watched live TV since 24 was on the air] to find CBS did another segment which took a close look at the Commodity Futures Modernization Act of 2000.

The segment was fair, it didn't try to shift political blame to any one side. Turns out what that law protected were practices which had been outlawed after the stock market crash of 1907. The Knickerbocker Trust Company was at the heart of that problem--no doubt Isiah Thomas had a hand in screwing that up as well.

All articles referenced are copied in full at end of post.
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60 Muntes - CBS News
The Bet That Blew Up Wall Street
Oct. 26, 2008(CBS) The world's financial system teetered on the edge again last week, and anyone with more than a passing interest in their shrinking 401(k) knows it's because of a global credit crisis. It began with the collapse of the U.S. housing market and has been magnified worldwide by what Warren Buffet once called "financial weapons of mass destruction."

They are called credit derivatives or credit default swaps, and 60 Minutes did a story on the multi-trillion dollar market three weeks ago. But there's a lot more to tell.

As Steve Kroft reports, essentially they are side bets on the performance of the U.S. mortgage markets and the solvency on some of the biggest financial institutions in the world. It's a form of legalized gambling that allows you to wager on financial outcomes without ever having to actually buy the stocks and bonds and mortgages.

It would have been illegal during most of the 20th century, but eight years ago Congress gave Wall Street an exemption and it has turned out to be a very bad idea.


While Congress and the rest of the country scratched their heads trying to figure out how we got into this mess, 60 Minutes decided to go to Frank Partnoy, a law professor at the University of San Diego, who has written a couple of books on the subject.

Ask to explain what a derivative is, Partnoy says, "A derivative is a financial instrument whose value is based on something else. It's basically a side bet."

Think of it for a moment as a football game. Every week, the New York Giants take the field with hopes of getting back to the Super Bowl. If they do, they will get more money and glory for the team and its owners. They have a direct investment in the game. But the people in the stands may also have a financial stake in the ouctome, in the form of a bet with a friend or a bookie.

"We could call that a derivative. It's a side bet. We don't own the teams. But we have a bet based on the outcome. And a lot of derivatives are bets based on the outcome of games of a sort. Not football games, but games in the markets," Partnoy explains.

Partnoy says the bet was whether interest rates were going to go up or down. "And the new bet that arose over the last several years is a bet based on whether people will default on their mortgages."

And that was the bet that blew up Wall Street. The TNT was the collapse of the housing market and the failure of complicated mortgage securities that the big investment houses created and sold around the world.

But the rocket fuel was the trillions of dollars in side bets on those mortgage securities, called "credit default swaps." They were essentially private insurance contracts that paid off if the investment went bad, but you didn't have to actually own the investment to collect on the insurance.

"If I thought certain mortgage securities were gonna fail, I could go out and buy insurance on them without actually owning them?" Kroft asks Eric Dinallo, the insurance superintendent for the state of New York.

"Yeah," Dinallo says. "The irony is, though, you're not really buying insurance at that point. You're just placing the bet."

Dinallo says credit default swaps were totally unregulated and that the big banks and investment houses that sold them didn't have to set aside any money to cover their potential losses and pay off their bets.

"As the market began to seize up and as the market for the underlying obligations began to perform poorly, everybody wanted to get paid, had a right to get paid on those credit default swaps. And there was no 'there' there. There was no money behind the commitments. And people came up short. And so that's to a large extent what happened to Bear Sterns, Lehman Brothers, and the holding company of AIG," he explains.

In other words, three of the nation's largest financial institutions had made more bad bets than they could afford to pay off. Bear Stearns was sold to J.P. Morgan for pennies on the dollar, Lehman Brothers was allowed to go belly up, and AIG, considered too big to let fail, is on life support to thanks to a $123 billion investment by U.S. taxpayers.

"It's legalized gambling. It was illegal gambling. And we made it legal gambling…with absolutely no regulatory controls. Zero, as far as I can tell," Dinallo says.

"I mean it sounds a little like a bookie operation," Kroft comments.

"Yes, and it used to be illegal. It was very illegal 100 years ago," Dinallo says.

In the early part of the 20th century, the streets of New York and other large cities were lined with gaming establishments called "bucket shops," where people could place wagers on whether the price of stocks would go up or down without actually buying them. This unfettered speculation contributed to the panic and stock market crash of 1907, and state laws all over the country were enacted to ban them.

"Big headlines, huge type. This is the front page of the New York Times," Dinallo explains, holding up a headline that reads "No bucket shops for new law to hit.”

"So they'd already closed up 'cause the law was coming. Here's a picture of one of them. And they were like parlors. See," Dinallo says. "Betting parlors. It was a felony. Well, it was a felony when a law came into effect because it had brought down the market in 1907. And they said, 'We're not gonna let this happen again.' And then 100 years later in 2000, we rolled them all back."

The vehicle for doing this was an obscure but critical piece of federal legislation called the Commodity Futures Modernization Act of 2000. And the bill was a big favorite of the financial industry it would eventually help destroy.

It not only removed derivatives and credit default swaps from the purview of federal oversight, on page 262 of the legislation, Congress pre-empted the states from enforcing existing gambling and bucket shop laws against Wall Street.

"It makes it sound like they knew it was illegal," Kroft remarks.

"I would agree," Dinallo says. "They did know it was illegal. Or at least prosecutable."

In retrospect, giving Wall Street immunity from state gambling laws and legalizing activity that had been banned for most of the 20th century should have given lawmakers pause, but on the last day and the last vote of the lame duck 106th Congress, Wall Street got what it wanted when the Senate passed the bill unanimously.

"There was an awful lot of, 'Trust us. Leave it alone. We can do it better than government,' without any realistic understanding of the dangers involved," says Harvey Goldschmid, a Columbia University law professor and a former commissioner and general counsel of the Securities and Exchange Commission.

He says the bill was passed at the height of Wall Street and Washington's love affair with deregulation, an infatuation that was endorsed by President Clinton at the White House and encouraged by Federal Reserve Chairman Alan Greenspan.

"That was the wildest and silliest period in many ways. Now, again, that's with hindsight because the argument at the time was these are grownups. They're institutions with a great deal of money. Government will only get in the way. Fears it will be taken overseas. Leave it alone. But it was a wrong-headed argument. And turned out to be, of course, extraordinarily unwise," Goldschmid says.

Asked what role Greenspan played in all of this, Professor Goldschmid says, "Well, he made clear in his public speeches and book that a Libertarian drive was part of the way he looked at the world. He's a very talented man. But that didn't take us where we had to be."

"Alan was the most powerful man in Washington in a real sense. Certainly a rival to the president and had enormous influence on Capitol Hill," Goldschmid says,

"And he was at the height of his power," Kroft adds.

Within eight years, unregulated derivatives and swaps helped produce the largest financial services economy the United States has ever had. Estimates of the market for credit default swaps grew from $100 billion to more than $50 trillion, and you could bet on anything from the solvency of communities to the fate of General Motors.

It also produced a huge transfer of private wealth to Wall Street traders and investment bankers, who collected billions of dollars in bonuses. A lot of the money was made financing what seemed to be a never-ending housing boom, selling mortgage securities they thought were safe and credit default swaps that would never have to be paid off.

"The credit default swaps was the key of what went wrong and what's created these enormous losses," Goldschmid says.

"Is it your impression that people at the big Wall Street investment houses knew what was going on and knew the kind of risks that they were exposed to?" Kroft asks.

"No. My impression is to the contrary, that even at senior levels they only vaguely understood the risks. They only vaguely followed what was going on," Goldschmid says. "And when it tumbled, there was some genuine surprise not only at the board level where there wasn't enough oversight but at senior management level."

They didn't know what was going on in part because credit default swaps were totally unregulated. No one knew how many there were or who owned them. There was no central exchange or clearing house to keep track of all the bets and to hold the money to make sure they got paid off. Eventually, savvy investors figured out that the cheapest, most effective way to bet against the entire housing market was to buy credit defaults swaps, in effect taking out inexpensive insurance policies that would pay off big when other people’s mortgage investments went south.

"I know people personally who have taken away more than $1 billion from having been on the right side of these transactions," says Jim Grant, publisher of Grant's Interest Rate Observer and one of the country’s foremost experts on credit markets.

"If you can and you could lay down cents on the dollar to place a bet on the solvency of Wall Street, for example, as some did, when Wall Street became evidently insolvent, that cents on the dollar bet went up 30, 40, and 50 fold. Not everyone who did that wants to get his name in the paper. But there are some spectacularly rich people who came out of this," Grant says.

"Who got richer," Kroft remarks.

"Who got richer, who became, you know, fantastically richer," Grant says.

A lot of them were hedge fund managers. John Paulson's Credit Opportunities Fund returned almost 600 percent last year, with Paulson pocketing a reported $3.7 billion.

Bill Ackman, of Pershing Square Capital Management, said he plans to make hundreds of millions. Both declined 60 Minutes' request for an interview.

Congress now seems shocked and outraged by the consequences of its decision eight years ago to effectively deregulate swaps and derivatives. Various members of the House and Senate have hauled in the usual suspects to accept or share the blame.

"Were you wrong?" Rep. Henry Waxman asked former Federal Reserve Chairman Greenspan.

"Credit default swaps, I think, have some serious problems with them," Greenspan replied.

It appears to be the first step in a long process of restoring at least some of the regulations and safeguards that might have prevented, or at least mitigated this disaster after the damage has already been done.

Where do we go from here?

"We need the most dramatic rethinking of the regulatory scheme for financial markets since the New Deal. If anything has demonstrated that imperative, it's the economy right now and the tragic circumstances we're in," Goldschmid says.

Asked how much danger he thinks is still out there, Goldschmid says, "We don't know. Part of the problem of the lack of transparency in these - in these markets has been we don't really know."


Produced by L. Franklin Devine and Jennifer MacDonald
© MMVIII, CBS Interactive Inc. All Rights Reserved.
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Friday, October 31, 2008


Obama Aunt in Section 8 Housing

U.S. Senator Barack Obama--whose Senate salary was bolstered by an almost 2 million dollar book deal advance in 2005--has raised over $600 million dollars in his bid for the presidency. Part of his desire to be president is rooted in his goal to 'spread the wealth around.'

U.S. Senator Barack Obama has an Aunt who has been living in Public Housing in Boston for at least the past 5 years. 'Aunti Zeituni' is not some faceless charity he never got around to writing a check for, she might be his only remaining blood connection to his father.

How did this information appear? Don't get your hopes up MSM-denizens, it was due to a London newspaper which had the gall to do some reporting.

Does anyone see a problem with those two set of facts? If his positions and 'desires' are to be taken at face value, why shouldn't the above facts raise doubts about the candidate's sincerity?

One thing it does do, it takes the isolated fact that before his presidential run, the Obama's donated less than 1% of their earnings to charity and makes it a pattern of a lack of generosity. Which is not a big deal in it of itself, but it does make the 'caring leader' facade that much less believable.

It also gives his idea of 'spreading the wealth around' a more exact meaning, it clearly does not apply to his wealth. Otherwise, he would have done so outside of the presidential spotlight with charities and within his own family.

All articles referenced are copied in full at end of post.
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Boston Housing Authority ‘flabbergastered’ Barack Obama’s aunt living in Southie

Jessica Fargen By Jessica Fargen
Friday, October 31, 2008 - Updated 16h ago

General Assignment Reporter

A Boston Housing Authority director says Barack Obama’s aunt, a Kenyan woman who has lived in public housing for five years, is an “exemplary resident” and only recently did anyone know of her connection to the presidential contender.

Obama’s campaign spokesman Reid Cherlin confirmed to the Herald yesterday that Zeituni Onyango, 56, who lives on Flaherty Way in South Boston, is Obama’s aunt on his father’s side.

Onyango, a Kenyan native, is believed to be the “Aunti Zeituni” in Obama’s memoir, “Dreams From My Father.”

It wasn’t until recently, when a London newspaper started making inquiries about Onyango, that Deputy Director Bill McGonagle learned of the link.

McGonagle said BHA employees were caught off guard.

“We were as surprised as anyone,” he said. “We were a little bit flabbergasted.”

Onyango has lived in Boston public housing for five years, McGonagle said.

“She has been an exemplary resident,” he said.

She received a small stipend over the past year for working six hours a week as a volunteer resident health advocate in her complex, he said.

Little else is known about her.

Onyango had conversations with several BHA employees in recent days about her blood ties to the senator, McGonagle said. She proudly displays photos of Obama, including some that appear as old as 25 years, inside her first-floor apartment, McGonagle said.

A message left at Onyango’s apartment was not returned.

McGonagle asked that the media respect Onyango’s privacy.

“She is feeling very put upon,” he said.
jfargen@bostonherald.com
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Donation-heavy Obama on track to outspend McCain as campaign winds down
Obama raised $36 million in the first half of October, more evidence that he made the correct decision when he opted out of taking federal funds for the general election campaign.
By Dan Morain

October 24, 2008

Barack Obama disclosed Thursday that he raised $35.9 million in the first 15 days of October, after a jaw-dropping $150 million in September.

Although his fundraising pace slowed, Obama's September-October surge all but guarantees that he will outspend John McCain and the Republican National Committee in the closing days of the 2008 presidential campaign.

The latest fundraising numbers provide further evidence that Obama made the correct decision when he opted not to take federal funds for the general election campaign, instead relying on his ever-growing donor base of more than 3 million -- whose average donation size is $86.

McCain, by contrast, accepted a federal grant of $84.1 million. That money must last from the beginning of September through Nov. 4, although the RNC also can raise money and spend it on his behalf.

Obama and the Democratic National Committee are poised to outspend McCain by as much as a 3-2 margin, the nonpartisan Campaign Finance Institute concluded.

Obama and the DNC spent $134.1 million in September, far more than the $108.6 million spent by McCain and the RNC.

In the first 15 days of October, Obama and the DNC spent a combined $117.6 million. That compares with $67 million by McCain and the RNC.

Obama had $65.7million in the bank for the final three weeks of the campaign, plus a combined $30 million held by the DNC and a separate committee that Obama and the DNC control.

McCain and the RNC entered the campaign's final three weeks with a combined $84.4 million in the bank. The RNC raised what was, for it, a record $66 million in September, but failed to maintain that pace in the first half of October, when it raised $27 million.

McCain and Obama continued to use a legal loophole that allowed them to raise money for party committees far in excess of the $4,600 maximum that individual donors can give to their presidential accounts.

The RNC drew $2.6 million in donations of $10,000 or more, including $28,500 from Facundo and Elizabeth Bacardi, the rum producers.

Obama, using a so-called joint fundraising committee, raised more than $9.9 million in donations of $10,000 or more, including $30,800 each from Sam and Tillie Walton of the Wal-Mart fortune. Jerry Yang, head of Yahoo, also donated $30,800.

Producer Jeffrey Katzenberg, wife Marilyn and their daughter, Laura, each donated $28,500. Producer Steven Spielberg and his wife, Kate Capshaw, also donated $28,500 each.

Obama raised $18,500 from professional poker player Howard Lederer and the same amount from Lederer's wife, Susan, who listed her occupation as casino pit manager at the Bellagio in Las Vegas.

Morain is a Times staff writer.

dan.morain@latimes.com
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Alphonso Rachel


The best lines, and they're a lot of them, from Alphonso Rachel:

  • [4:30] Democrats farming votes.
  • [5:30] Why buckets of crabs don't have lids.
  • [5:55] 'The price that John McCain paid for his country, Democrats can't even pay the taxes on that service.'
  • [7:30] Hollywood liberals.
Video link Alphonso Rachel.


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Thursday, October 30, 2008


Acorn and Voter Fraud

Both political parties have constituents which are less than ideal. Very broadly speaking, most racists vote Republican and most people willfully dependent on government vote Democratic. As a nation we are about to elect a president which employees prefer, in contrast to the desires of the owners of the businesses they work for, who prefer McCain.

'Letting the inmates run the asylum,' would be one crude way to describe this juxtaposition. But that would represent an attack on democracy's 'one man one vote' ideal, since you would always have more employees than owners. As such, our politics are designed to ensure broad appeal. But what happens when one side feels the other is systematically putting a finger [the middle one] on the scales of democracy? We may find out after this election.

John Fund of the WSJ covers issues of voter fraud extensively. Below is an excerpt of his column on a former Acorn strategic consultant, Anita MonCrief, who testified before a Pennsylvania state court:

Ms. MonCrief testified that in November 2007 Project Vote development director Karyn Gillette told her she had direct contact with the Obama campaign and had obtained their donor lists. Ms. MonCrief also testified she was given a spreadsheet to use in cultivating Obama donors who had maxed out on donations to the candidate, but who could contribute to voter registration efforts. Project Vote calls the allegation "absolutely false."

She says that when she had trouble with what appeared to be duplicate names on the list, Ms. Gillette told her she would talk with the Obama campaign and get a better version. Ms. MonCrief has given me copies of the donor lists she says were obtained from other Democratic campaigns, as well as the 2004 DNC donor lists.

In her testimony, Ms. MonCrief says she was upset by Acorn's "Muscle for Money" program, which she said intimidated businesses Acorn opposed into paying "protection" money in the form of grants. Acorn's Brian Kettering says the group only wants to change corporate behavior: "Acorn is proud of its corporate campaigns to stop abuses of working families."
All articles referenced are copied in full at end of post.

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An Acorn Whistleblower Testifies in Court
The group's ties to Obama are extensive.


OCTOBER 30, 2008

By JOHN FUND

Acorn, the liberal "community organizing" group that claims it will deploy 15,000 get-out-the-vote workers on Election Day, can't stay out of the news.

The FBI is investigating its voter registration efforts in several states, amid allegations that almost a third of the 1.3 million cards it turned in are invalid. And yesterday, a former employee of Acorn testified in a Pennsylvania state court that the group's quality-control efforts were "minimal or nonexistent" and largely window dressing. Anita MonCrief also says that Acorn was given lists of potential donors by several Democratic presidential campaigns, including that of Barack Obama, to troll for contributions.

The Obama campaign denies it "has any ties" to Acorn, but Mr. Obama's ties are extensive. In 1992 he headed a registration effort for Project Vote, an Acorn partner at the time. He did so well that he was made a top trainer for Acorn's Chicago conferences. In 1995, he represented Acorn in a key case upholding the constitutionality of the new Motor Voter Act -- the first law passed by the Clinton administration -- which created the mandated, nationwide postcard voter registration system that Acorn workers are using to flood election offices with bogus registrations.

Ms. MonCrief testified that in November 2007 Project Vote development director Karyn Gillette told her she had direct contact with the Obama campaign and had obtained their donor lists. Ms. MonCrief also testified she was given a spreadsheet to use in cultivating Obama donors who had maxed out on donations to the candidate, but who could contribute to voter registration efforts. Project Vote calls the allegation "absolutely false."

She says that when she had trouble with what appeared to be duplicate names on the list, Ms. Gillette told her she would talk with the Obama campaign and get a better version. Ms. MonCrief has given me copies of the donor lists she says were obtained from other Democratic campaigns, as well as the 2004 DNC donor lists.

In her testimony, Ms. MonCrief says she was upset by Acorn's "Muscle for Money" program, which she said intimidated businesses Acorn opposed into paying "protection" money in the form of grants. Acorn's Brian Kettering says the group only wants to change corporate behavior: "Acorn is proud of its corporate campaigns to stop abuses of working families."

Ms. MonCrief, 29, never expected to testify in a case brought by the state's Republican Party seeking the local Acorn affiliate's voter registration lists. An idealistic graduate of the University of Alabama, she joined Project Vote in 2005 because she thought it was empowering poor people. A strategic consultant for Acorn and a development associate with its Project Vote voter registration affiliate, Ms. MonCrief sat in on policy-making meetings with the national staff. She was fired early this year over personal expenses she had put on the group's credit card.

She says she became disillusioned because she saw that Acorn was run as the personal fiefdom of Wade Rathke, who founded the group in 1970 and ran it until he stepped down to take over its international operations this summer. Mr. Rathke's departure as head of Acorn came after revelations he'd employed his brother Dale for a decade while keeping from almost all of Acorn's board members the fact that Dale had embezzled over $1 million from the group a decade ago. (The embezzlement was confirmed to me by an Acorn official.)

"Anyone who questioned what was going on was viewed as the enemy," Ms. MonCrief told me. "Just like the mob, no one leaves Acorn happily." She believes the organization does some good but hopes its current leadership is replaced. She may not be alone.

Last August two of Acorn's eight dissident board members, Marcel Reed and Karen Inman, filed suit demanding access to financial records of Citizens Consulting Inc., the umbrella group through which most of Acorn's money flows. Ms. Inman told a news conference this month Mr. Rathke still exercises power over CCI and Acorn against the board's wishes. Bertha Lewis, the interim head of Acorn, told me Mr. Rathke has no ties to Acorn and that the dissident board members were "obsessed" and "confused."

According to public records, the IRS filed three tax liens totaling almost $1 million against Acorn this spring. Also this spring, CCI was paid $832,000 by the Obama campaign for get-out-the-vote efforts in key primary states. In filings with the Federal Election Commission, the Obama campaign listed the payments as "staging, sound, lighting," only correcting the filings after the Pittsburgh Tribune-Review revealed their true nature.

"Acorn needs a full forensic audit," Ms. MonCrief says, though she doesn't think that's likely. "Everyone wants to paper things over until later," she says. "But it may be too late to reform Acorn then." She strongly supports Barack Obama and hopes his allies can be helpful in cleaning up the group "after the heat of the election is gone."

Acorn's Mr. Kettering says the GOP lawsuit "is designed to suppress legitimate voters," and he says Ms. MonCrief isn't credible, given that she was fired for cause. Ms. MonCrief admits that she left after she began paying back some $3,000 in personal expenses she charged on an Acorn credit card. "I was very sorry, and I was paying it back," she says, but "suddenly Acorn decided that . . . I had to go. Since then I have gotten warnings to 'back off' from people at Acorn."

Acorn insists it operates with strict quality controls, turning in, as required by law, all registration forms "even if the name on them was Donald Duck," as Wade Rathke told me two years ago. Acorn whistleblowers tell a different story.

"There's no quality control on purpose, no checks and balances," says Nate Toler, who worked until 2006 as the head organizer of an Acorn campaign against Wal-Mart in California. And Ms. MonCrief says it is longstanding practice to blame bogus registrations on lower-level employees who then often face criminal charges, a practice she says Acorn internally calls "throwing folks under the bus."

Gregory Hall, a former Acorn employee, says he was told on his very first day in 2006 to engage in deceptive fund-raising tactics. Mr. Hall has founded a group called Speaking Truth to Power to push for a full airing of Acorn's problems "so the group can heal itself from within."

To date, Mr. Obama has declined to criticize Acorn, telling reporters this month he is happy with his own get-out-the-vote efforts and that "we don't need Acorn's help." That may be true. But there is no denying his ties with Acorn helped turbocharge his political career.

Mr. Fund is a columnist for WSJ.com.
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Wednesday, October 29, 2008


Classic Only for Posterity MSM Maneuver

Watch for this tactic over the last week of the presidential campaign. After operating as an extension of the Obama camp for months and now believing that victory is secure, the MSM can now safely criticize the Democratic nominee. This way they won't look so bad when studies about the coverage are done later.

First CNN criticizes Obama's 4 month-old broken promise by not accepting federal funds. Then the Washington Post actually does reporting on the record high donations received by the Obama campaign. The next miracle would occur if some liberal editorial board would put those two facts together.

All articles referenced are copied in full at end of post.
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Obama Accepting Untraceable Donations Contributions Reviewed After Deposits

By Matthew Mosk
Washington Post Staff Writer
Wednesday, October 29, 2008; A02

Sen. Barack Obama's presidential campaign is allowing donors to use largely untraceable prepaid credit cards that could potentially be used to evade limits on how much an individual is legally allowed to give or to mask a contributor's identity, campaign officials confirmed.

Faced with a huge influx of donations over the Internet, the campaign has also chosen not to use basic security measures to prevent potentially illegal or anonymous contributions from flowing into its accounts, aides acknowledged. Instead, the campaign is scrutinizing its books for improper donations after the money has been deposited.

The Obama organization said its extensive review has ensured that the campaign has refunded any improper contributions, and noted that Federal Election Commission rules do not require front-end screening of donations.

In recent weeks, questionable contributions have created headaches for Obama's accounting team as it has tried to explain why campaign finance filings have included itemized donations from individuals using fake names, such as Es Esh or Doodad Pro. Those revelations prompted conservative bloggers to further test Obama's finance vetting by giving money using the kind of prepaid cards that can be bought at a drugstore and cannot be traced to a donor.

The problem with such cards, campaign finance lawyers said, is that they make it impossible to tell whether foreign nationals, donors who have exceeded the limits, government contractors or others who are barred from giving to a federal campaign are making contributions.

"They have opened the floodgates to all this money coming in," said Sean Cairncross, chief counsel to the Republican National Committee. "I think they've made the determination that whatever money they have to refund on the back end doesn't outweigh the benefit of taking all this money upfront."

The Obama campaign has shattered presidential fundraising records, in part by capitalizing on the ease of online giving. Of the $150 million the senator from Illinois raised in September, nearly $100 million came in over the Internet.

Lawyers for the Obama operation said yesterday that their "extensive back-end review" has carefully scrubbed contributions to prevent illegal money from entering the operation's war chest. "I'm pretty sure if I took my error rate and matched it against any other campaign or comparable nonprofit, you'd find we're doing very well," said Robert Bauer, a lawyer for the campaign. "I have not seen the McCain compliance staff ascending to heaven on a cloud."

The Obama team's disclosures came in response to questions from The Washington Post about the case of Mary T. Biskup, a retired insurance manager from Manchester, Mo., who turned up on Obama's FEC reports as having donated $174,800 to the campaign. Contributors are limited to giving $2,300 for the general election.

Biskup, who had scores of Obama contributions attributed to her, said in an interview that she never donated to the candidate. "That's an error," she said. Moreover, she added, her credit card was never billed for the donations, meaning someone appropriated her name and made the contributions with another card.

When asked whether the campaign takes steps to verify whether a donor's name matches the name on the credit card used to make a payment, Obama's campaign replied in an e-mail: "Name-matching is not a standard check conducted or made available in the credit card processing industry. We believe Visa and MasterCard do not even have the ability to do this.

"Instead, the campaign does a rigorous comprehensive analysis of online contributions on the back end of the transaction to determine whether a contribution is legitimate."

Juan Proaño, whose technology firm handled online contributions for John Edwards's presidential primary campaign, and for John F. Kerry's presidential campaign and the Democratic National Committee in 2004, said it is possible to require donors' names and addresses to match those on their credit card accounts. But, he said, some campaigns are reluctant to impose that extra layer of security.

"Honestly, you want to have the least amount of hurdles in processing contributions quickly," Proaño said.

Sen. John McCain's campaign has also had questionable donations slip through.

Dan Pfeiffer, Obama's communication's director, said that "no organization can fully insulate itself from these problems. The McCain campaign has accepted contributions from fraudulent contributors like 'A for You,' 'Adorable Manabat,' 'The Gun Shop,' and 'Jesus II' and hundreds of anonymous donors."

But R. Rebecca Donatelli, who handles online contributions for the McCain operation and the RNC, said security measures have been standard in the GOP nominee's fundraising efforts throughout the campaign. She said she was "flabbergasted" to learn that the Obama campaign accepts prepaid cards.

"Yes, a gift card would go through the same process as a regular credit card and be subject to our same back-end review," the Obama campaign said in its response to questions about the use of such cards.

Campaign finance lawyers said there is a long history of debate within the FEC about how to ensure that donors use their own credit cards.

Election lawyer Brett Kappel said the FEC has never grappled with the question of cash cards. "The whole system is set up for them to accept the payment, then determine whether it is legal or not. And if it's not, send it back. That's what the statute requires," he said.
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Commentary: Obama breaks promise on campaign finance

* Story Highlights
* Campbell Brown: Obama pledged to accept public financing last year
* But, she says, he switched when he realized he could earn more on his own
* He's rolling in dough earned on a broken promise, Brown says

By Campbell Brown
CNN

Editor's note: Campbell Brown anchors CNN's "Campbell Brown: No Bias, No Bull" at 8 p.m. ET Mondays through Fridays. She delivered this commentary during the "Cutting through the Bull" segment of Tuesday night's broadcast.

(CNN) -- You may have heard that Wednesday night Barack Obama will be on five different TV networks speaking directly to the American people.

He bought 30 minutes of airtime from the different networks, a very expensive purchase. But hey, he can afford it. Barack Obama is loaded, way more loaded than John McCain, way more loaded than any presidential candidate has ever been at this stage of the campaign.

Just to throw a number out: He has raised well over $600 million since the start of his campaign, close to what George Bush and John Kerry raised combined in 2004.

Without question, Obama has set the bar at new height with a truly staggering sum of cash. And that is why as we approach this November, it is worth reminding ourselves what Barack Obama said last November.

One year ago, he made a promise. He pledged to accept public financing and to work with the Republican nominee to ensure that they both operated within those limits.

Then it became clear to Sen. Obama and his campaign that he was going to be able to raise on his own far more cash than he would get with public financing. So Obama went back on his word.

He broke his promise and he explained it by arguing that the system is broken and that Republicans know how to work the system to their advantage. He argued he would need all that cash to fight the ruthless attacks of 527s, those independent groups like the Swift Boat Veterans. It's funny though, those attacks never really materialized.

The Washington Post pointed out recently that the bad economy has meant a cash shortage among the 527s and that this election year they have been far less influential.

The courageous among Obama's own supporters concede this decision was really made for one reason, simply because it was to Obama's financial advantage.

On this issue today, former Sen. Bob Kerrey of Nebraska, an Obama supporter, writes in The New York Post, "a hypocrite is a person who puts on a false appearance of virtue -- who acts in contradiction to his or her stated beliefs or feelings. And that, it seems to me, is what we are doing now."

For this last week, Sen. Obama will be rolling in dough. His commercials, his get-out-the-vote effort will, as the pundits have said, dwarf the McCain campaign's final push. But in fairness, you have to admit, he is getting there in part on a broken promise.

The opinions expressed in this commentary are solely those of Campbell Brown.
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Tuesday, October 28, 2008


A Break in the Ranks

An ABC news tech columnist, Michael Malone has gone public with his disgust at the bias in the MSM in favor of Barack Obama. Whenever there is a 'break in the ranks,' the person gets disproportionate attention given the nature of the endorsement or criticism, i.e. Geraldine Ferraro, Christopher Buckley. Mr Malone does not just criticize, he names the group most responsible [editors] and identifies a possible motivation--a 'revived fairness doctrine.'

There is another word for reviving the 'fairness doctrine,' censorship. An excerpt from Mr Malone's column:

If the current polls are correct, we are about to elect as president of the United States a man who is essentially a cipher [nonentity], who has left almost no paper trail, seems to have few friends (that at least will talk) and has entire years missing out of his biography.

That isn't Sen. Obama's fault: His job is to put his best face forward. No, it is the traditional media's fault, for it alone (unlike the alternative media) has had the resources to cover this story properly, and has systematically refused to do so.
Well said, including when he notes that the Obama campaign is just doing it's job. It's the MSM which has failed the public in this election by taking sides. Adjustment are already ongoing to mitigate their future influence. On the print side, the New York Times--the alpha-dog of bleeding heart liberals--have been bleeding enough red ink to supply a Las Vegas-type convention of vampires over a holiday weekend. The decline in viewers for the broadcast network's news divisions have been ongoing for a while - see the graph below:


From a conservative's perspective, it represents a victory of sorts that no one seriously pretends to be impartial in their coverage. We have never believed that to be the case, now at least allegiances are out in the open. Given choices, our politics naturally dictate which networks and journals we patronize.

For example, I used to enjoy Chris Matthews, but I just can't watch MSNBC without having fantasies about taking a Terminator-like stroll through 30 Rock. This from a guy whose last fight was on a school bus headed to Booker T. in the 9th grade. For now, Fox is alone on the right of the political spectrum, but there is a real opening for another network to grab a share of a market which is about to get a serious boost.

One more thing, after the election, when there is complaining about a lack of a 'honeymoon period,' it should be noted that this year the honeymoon period was the campaign. On Nov 5th, the battle to find out whom we've elected should begin in earnest. Damndest thing though, often buried in winning election strategies, are the lies and half-truths which haunt their time in office. Like the old saying goes, revenge is a dish best served gradually, relentlessly and unforgivingly. OK, so that's not the old saying, just something I read in an ACORN manual. Anyways, round 1 to the radicals. In the words of Michael Buffer ...

All articles referenced are copied in full at end of post.

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Media's Presidential Bias and Decline

Columnist Michael Malone Looks at Slanted Election Coverage and the Reasons Why
Column By MICHAEL S. MALONE

Oct. 24, 2008 —

The traditional media are playing a very, very dangerous game -- with their readers, with the Constitution and with their own fates.

The sheer bias in the print and television coverage of this election campaign is not just bewildering, but appalling. And over the last few months I've found myself slowly moving from shaking my head at the obvious one-sided reporting, to actually shouting at the screen of my television and my laptop computer.

But worst of all, for the last couple weeks, I've begun -- for the first time in my adult life -- to be embarrassed to admit what I do for a living. A few days ago, when asked by a new acquaintance what I did for a living, I replied that I was "a writer," because I couldn't bring myself to admit to a stranger that I'm a journalist.

You need to understand how painful this is for me. I am one of those people who truly bleeds ink when I'm cut. I am a fourth-generation newspaperman. As family history tells it, my great-grandfather was a newspaper editor in Abilene, Kan., during the last of the cowboy days, then moved to Oregon to help start the Oregon Journal (now the Oregonian).

My hard-living -- and when I knew her, scary -- grandmother was one of the first women reporters for the Los Angeles Times. And my father, though profoundly dyslexic, followed a long career in intelligence to finish his life (thanks to word processors and spellcheckers) as a very successful freelance writer. I've spent 30 years in every part of journalism, from beat reporter to magazine editor. And my oldest son, following in the family business, so to speak, earned his first national byline before he earned his drivers license.

So, when I say I'm deeply ashamed right now to be called a "journalist," you can imagine just how deep that cuts into my soul.

Now, of course, there's always been bias in the media. Human beings are biased, so the work they do, including reporting, is inevitably colored. Hell, I can show you 10 different ways to color variations of the word "said" -- muttered, shouted, announced, reluctantly replied, responded, etc. -- to influence the way a reader will apprehend exactly the same quote. We all learn that in Reporting 101, or at least in the first few weeks working in a newsroom.

But what we are also supposed to learn during that same apprenticeship is to recognize the dangerous power of that technique, and many others, and develop built-in alarms against them.

But even more important, we are also supposed to be taught that even though there is no such thing as pure, Platonic objectivity in reporting, we are to spend our careers struggling to approach that ideal as closely as possible.

That means constantly challenging our own prejudices, systematically presenting opposing views and never, ever burying stories that contradict our own world views or challenge people or institutions we admire. If we can't achieve Olympian detachment, than at least we can recognize human frailty -- especially in ourselves.

Reporting Bias

For many years, spotting bias in reporting was a little parlor game of mine, watching TV news or reading a newspaper article and spotting how the reporter had inserted, often unconsciously, his or her own preconceptions. But I always wrote it off as bad judgment and lack of professionalism, rather than bad faith and conscious advocacy.

Sure, being a child of the '60s I saw a lot of subjective "New" Journalism, and did a fair amount of it myself, but that kind of writing, like columns and editorials, was supposed to be segregated from "real" reporting, and, at least in mainstream media, usually was. The same was true for the emerging blogosphere, which by its very nature was opinionated and biased.

But my complacent faith in my peers first began to be shaken when some of the most admired journalists in the country were exposed as plagiarists, or worse, accused of making up stories from whole cloth.

I'd spent my entire professional career scrupulously pounding out endless dreary footnotes and double-checking sources to make sure that I never got accused of lying or stealing someone else's work -- not out of any native honesty, but out of fear: I'd always been told to fake or steal a story was a firing offense & indeed, it meant being blackballed out of the profession.

And yet, few of those worthies ever seemed to get fired for their crimes -- and if they did they were soon rehired into even more prestigious jobs. It seemed as if there were two sets of rules: one for us workaday journalists toiling out in the sticks, and another for folks who'd managed, through talent or deceit, to make it to the national level.

Meanwhile, I watched with disbelief as the nation's leading newspapers, many of whom I'd written for in the past, slowly let opinion pieces creep into the news section, and from there onto the front page. Personal opinions and comments that, had they appeared in my stories in 1979, would have gotten my butt kicked by the nearest copy editor, were now standard operating procedure at the New York Times, the Washington Post, and soon after in almost every small town paper in the U.S.

But what really shattered my faith -- and I know the day and place where it happened -- was the war in Lebanon three summers ago. The hotel I was staying at in Windhoek, Namibia, only carried CNN, a network I'd already learned to approach with skepticism. But this was CNN International, which is even worse.

I sat there, first with my jaw hanging down, then actually shouting at the TV, as one field reporter after another reported the carnage of the Israeli attacks on Beirut, with almost no corresponding coverage of the Hezbollah missiles raining down on northern Israel. The reporting was so utterly and shamelessly biased that I sat there for hours watching, assuming that eventually CNNi would get around to telling the rest of the story & but it never happened.

The Presidential Campaign

But nothing, nothing I've seen has matched the media bias on display in the current presidential campaign.

Republicans are justifiably foaming at the mouth over the sheer one-sidedness of the press coverage of the two candidates and their running mates. But in the last few days, even Democrats, who have been gloating over the pass -- no, make that shameless support -- they've gotten from the press, are starting to get uncomfortable as they realize that no one wins in the long run when we don't have a free and fair press.

I was one of the first people in the traditional media to call for the firing of Dan Rather -- not because of his phony story, but because he refused to admit his mistake -- but, bless him, even Gunga Dan thinks the media is one-sided in this election.

Now, don't get me wrong. I'm not one of those people who think the media has been too hard on, say, Republican vice presidential nominee Gov. Sarah Palin, by rushing reportorial SWAT teams to her home state of Alaska to rifle through her garbage. This is the big leagues, and if she wants to suit up and take the field, then Gov. Palin better be ready to play.

The few instances where I think the press has gone too far -- such as the Times reporter talking to prospective first lady Cindy McCain's daughter's MySpace friends -- can easily be solved with a few newsroom smackdowns and temporary repostings to the Omaha bureau.

No, what I object to (and I think most other Americans do as well) is the lack of equivalent hardball coverage of the other side -- or worse, actively serving as attack dogs for the presidential ticket of Sens. Barack Obama, D-Ill., and Joe Biden, D-Del.

If the current polls are correct, we are about to elect as president of the United States a man who is essentially a cipher, who has left almost no paper trail, seems to have few friends (that at least will talk) and has entire years missing out of his biography.

That isn't Sen. Obama's fault: His job is to put his best face forward. No, it is the traditional media's fault, for it alone (unlike the alternative media) has had the resources to cover this story properly, and has systematically refused to do so.

Why, for example to quote the lawyer for Republican presidential nominee Sen. John McCain, R-Ariz., haven't we seen an interview with Sen. Obama's grad school drug dealer -- when we know all about Mrs. McCain's addiction? Are Bill Ayers and Tony Rezko that hard to interview? All those phony voter registrations that hard to scrutinize? And why are Sen. Biden's endless gaffes almost always covered up, or rationalized, by the traditional media?

Joe the Plumber

The absolute nadir (though I hate to commit to that, as we still have two weeks before the election) came with Joe the Plumber.

Middle America, even when they didn't agree with Joe, looked on in horror as the press took apart the private life of an average person who had the temerity to ask a tough question of a presidential candidate. So much for the standing up for the little man. So much for speaking truth to power. So much for comforting the afflicted and afflicting the comfortable, and all of those other catchphrases we journalists used to believe we lived by.

I learned a long time ago that when people or institutions begin to behave in a matter that seems to be entirely against their own interests, it's because we don't understand what their motives really are. It would seem that by so exposing their biases and betting everything on one candidate over another, the traditional media is trying to commit suicide -- especially when, given our currently volatile world and economy, the chances of a successful Obama presidency, indeed any presidency, is probably less than 50/50.

Furthermore, I also happen to believe that most reporters, whatever their political bias, are human torpedoes & and, had they been unleashed, would have raced in and roughed up the Obama campaign as much as they did McCain's. That's what reporters do. I was proud to have been one, and I'm still drawn to a good story, any good story, like a shark to blood in the water.

So why weren't those legions of hungry reporters set loose on the Obama campaign? Who are the real villains in this story of mainstream media betrayal?

The editors. The men and women you don't see; the people who not only decide what goes in the paper, but what doesn't; the managers who give the reporters their assignments and lay out the editorial pages. They are the real culprits.

Bad Editors

Why? I think I know, because had my life taken a different path, I could have been one: Picture yourself in your 50s in a job where you've spent 30 years working your way to the top, to the cockpit of power & only to discover that you're presiding over a dying industry. The Internet and alternative media are stealing your readers, your advertisers and your top young talent. Many of your peers shrewdly took golden parachutes and disappeared. Your job doesn't have anywhere near the power and influence it did when your started your climb. The Newspaper Guild is too weak to protect you any more, and there is a very good chance you'll lose your job before you cross that finish line, 10 years hence, of retirement and a pension.

In other words, you are facing career catastrophe -- and desperate times call for desperate measures. Even if you have to risk everything on a single Hail Mary play. Even if you have to compromise the principles that got you here. After all, newspapers and network news are doomed anyway -- all that counts is keeping them on life support until you can retire.

And then the opportunity presents itself -- an attractive young candidate whose politics likely matches yours, but more important, he offers the prospect of a transformed Washington with the power to fix everything that has gone wrong in your career.

With luck, this monolithic, single-party government will crush the alternative media via a revived fairness doctrine, re-invigorate unions by getting rid of secret votes, and just maybe be beholden to people like you in the traditional media for getting it there.

And besides, you tell yourself, it's all for the good of the country &

This is the opinion of the columnist and in no way reflects the opinion of ABC News.

Michael S. Malone is one of the nation's best-known technology writers. He has covered Silicon Valley and high-tech for more than 25 years, beginning with the San Jose Mercury News as the nation's first daily high-tech reporter. His articles and editorials have appeared in such publications as The Wall Street Journal, the Economist and Fortune, and for two years he was a columnist for The New York Times. He was editor of Forbes ASAP, the world's largest-circulation business-tech magazine, at the height of the dot-com boom. Malone is the author or co-author of a dozen books, notably the best-selling "Virtual Corporation." Malone has also hosted three public television interview series, and most recently co-produced the celebrated PBS miniseries on social entrepreneurs, "The New Heroes." He has been the ABCNews.com "Silicon Insider" columnist since 2000.

Copyright © 2008 ABC News Internet Ventures
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Monday, October 27, 2008


Glen Johnson

Miami Herald Boxing article by Santos Perez on Glen Johnson.
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Crucial bout for two boxers

Posted on Mon, Oct. 27, 2008

BY SANTOS A. PEREZ

Glen Johnson's disappointment dealt with disputed scorecards. Edison Miranda's discontent proved more painful than judges' verdicts.

Coming off losses in their previous fights, Johnson and Miranda look to erase recent frustration and resume their respective careers in South Florida's next local boxing card.

Johnson and Miranda will fight in separate bouts of the Warriors Boxing show Nov. 11 at Hard Rock Live Arena.

Johnson (47-12-2, 34 KOs) will face Tiwon Taylor in a scheduled 10-round light-heavyweight match; Miranda will fight Manuel Esparza in a light-heavyweight match scheduled for eight rounds.

The bout will be Johnson's first since losing a controversial unanimous decision against Chad Dawson on April 12. Although Johnson was the aggressor for most of the bout and nearly had Dawson knocked out in the 10th round, all three judges scored the bout for Dawson by a four-point margin.

Miranda's ring return comes after a five-month layoff.

The outspoken Miranda loudly pursued a rematch against Artur Abraham for nearly two years. Miranda (30-3, 26 KOs) talked of punishing and defeating Abraham when they finally met in their second bout June 21 at Hard Rock Live.

But Abraham, who won a decision against Miranda in the first bout, overwhelmed the Colombia native with a fourth-round technical knockout victory.

The Nov. 11 Hard Rock Live card also will feature James McGirt Jr., son of the current trainer and former welterweight champion. McGirt Jr. will fight Marcus Upshaw in a scheduled 10-round super-middleweight bout.

TITLE SHOT SET

After seven years of preliminary bouts and eventual contending status, Miami resident Joel Julio will finally fight for a world title Saturday night in Germany.

Julio (34-1, 31 KOs) will face World Boxing Organization junior-middleweight champion Sergiy Dzinziruk.

''All my life I have waited for this opportunity,'' said Julio, 23. ``I am more than ready. Come Nov. 1, I am not only going to become a world champion but also a superstar in this sport.''

Julio will not have an easy task. A native of Ukraine, Dzinziruk is unbeaten in 35 fights and has made four successful defenses since his victory against former champion Daniel Santos in December 2005.

FIGHT HYPE BEGINS

Vic Darchinyan never has been faulted for concealing his thoughts, and the reigning 115-pound title-holder remained true to form in a recent conference call hyping his title unification bout against Mexico's Cristian Mijares on Saturday night in Carson, Calif.

''I'm going to make him look like a very silly fighter and I'm going to knock him out,'' Darchinyan said of Mijares. ``He's going to be punished.

``Make sure what I'm saying now you will put on the website and put everywhere what I'm saying and believing. I'm very focused on this fight. I'm going to destroy him badly.''

A native of Armenia and Australia resident, Darchinyan won the International Boxing Federation junior-bantamweight title with a fifth-round technical knockout against Dimitri Kirilov on Aug. 2. Darchinyan (30-1-1, 24 KOs) also had a 30-month run as IBF flyweight champion earlier in the decade.

Mijares (36-3, 15 KOs) won the World Boxing Council super-flyweight crown in January 2007 and captured the World Boxing Association belt with a victory against Alexander Muñoz in a title unification bout May 17.
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If That's Lloyd, Ari Gold Can't Be Far Behind


Ted Stevens being found guilty was expected. But I was shocked to see him accompanied by Lloyd from Entourage. That show is taking realism too far.


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Jeopardy Answer: America Suffers to This
Day Fom a Lack of Wealth Redistribution

Jeopardy contestant: 'What is something we'll never hear directly from a candidate during a campaign? Alex, can I add that I don't think comments made when Obama was only 40 years old should play a role in this election.'

Alex Trebeck: 'Your initial response was correct for $400, dear willfully ignorant voter.'

Jeopardy contestant: Alex, I'm not willfully ignorant.

Alex Trebeck: Oh really [while turning with a look of disbelief towards audience]?

Jeopardy contestant: No, I just prefer to be taken care of. I see people around me doing better than I do. They can and should pay more, pay for me, hell pay me.

Alex Trebeck: Aren't you embarrassed to think that way?

Jeopardy contestant: 'Nah, shame and guilt are just ways the Man has always used to keep us down, we're beyond that now. I'd like to move on to another category now.

Alex Trebeck: Very well.

Jeopardy contestant: Jobs which represent enslavement for $200...

Now we know why the Joe the Plumber 'redistributing wealth' remark was not a slip. Here are the basic points made by Barack Obama on a radio show in 2001:

  • Civil Rights movement [CRM] succeded in vesting formal rights
  • CRM too courts focused
  • CRM failed to establish the type of power by which you can redistribute wealth
  • Warren court was not radical enough
  • We still suffer from the failure of the courts to mandate the redistribution of wealth
The entire transcript is copied at end of my post. Beginning at the 40 second mark of a 4 minute clip, see if you can spot any errors in my 'unscrubbed' version of the transcript:
... ugh, but the Supreme Court never ventured into the issues of redistribution of wealth ugh, and sort of more basic issues of political and, and eh, economic justice in this society. And ugh, eh, to that extent as radical as I think people try to characterize the Warren court, ugh, it wasn’t that radical. It, it didn’t break free from, the, essential constraints that were placed ugh, ugh, by the founding fathers in the Constitution, at least as it’s been interpreted, and [the] Warren court interpreted it in the same way that, that generally the Constitution is a charter of negative liberties, [It] says what the states can’t do to you, [it] says what the federal government can’t do to you, but it doesn’t say what the federal government or the state government, must do, on your behalf, ugh, and that hasn’t shifted. And one of the, ugh, I think, ugh, the tragedies of the civil rights movement was um, because the civil rights movement became so, court focused, ugh, I think that there was a tendency to lose track of, the political and community organizing and and activities on the ground, that are able to put together the actual coalitions of power through which you bring about redistributed ugh, change ugh, and eh, in some ways we still suffer from that.
Americans will soon 'suffer no more' from the Founder's failures. Does anybody have a Red Dawn DVD I can borrow? You can listen to another 30 second version clip from that radio program. The raw transcript was copied from a Free Republic web site.

All articles referenced are copied in full at end of post.

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Obama on Public Radio in 2001
Here’s the transcript from 2001. -

MODERATOR: Good morning and welcome to Odyssey on WBEZ Chicago 91.5 FM and we’re joined by Barack Obama who is Illinois State Senator from the 13th district and senior lecturer in the law school at the University of Chicago.

OBAMA: ... you know if if you look at, um, the the victories and failures of the civil rights movement, um, and its litigation strategy in the court, I think where it succeeded was to, vest formal rights, ugh, in ugh, previously previously dispossessed peoples. So that eh, I would now have the right to vote, I would now be able to sit at [the] lunch counter and and, order and as long as I could pay for it I’d be okay. Ugh, but the Supreme Court never ventured into the issues of redistribution of wealth ugh, and sort of more basic issues of political and, and eh, economic justice in this society. And ugh, to that extent as radical as I think people try to characterize the Warren court, ugh, it wasn’t that radical. It, it didn’t break free from the essential constraints that were placed by ugh, ugh, the founding fathers in the Constitution, at least as it’s been interpreted, and [the] Warren court interpreted it in the same way that, generally the Constitution is a charter of negative liberties, [It] says what the states can’t do to you, [it] says what the federal government can’t do to you, but it doesn’t say what the federal government or the state government, must do, on your behalf, ugh, and that hasn’t shifted. One of the, I ugh, I think, the tragedies of the civil rights movement was um, because the civil rights movement became so, court focused, ugh, I think that there was a tendency to lose track of, the political and community organizing and, and activities on the ground that are able to put together the actual coalitions of power through which you bring about redistributed ugh, change ugh, and eh, in some ways we still suffer from that.

MODERATOR: Let’s talk with Karen. Good morning, Karen, you’re on Chicago Public Radio.

KAREN: Hi. The gentleman made the point that the Warren court wasn’t terribly radical with economic changes. My question is, is it too late for that kind of reparative work economically and is that that the appropriate place for reparative economic work to take place – the court – or would it be legislation at this point?

OBAMA: yeah ah ah, you know maybe I’m showing my bias here as a, as a legislator as well as a law professor, but ugh, eh ah, I’m not optimistic about bringing ugh, about ugh, major ugh, redistributive ugh ugh, change ugh, through the courts um, you know, the institution just isn’t structured that way ugh....

... um you you know you just look at very rare examples where in, during the desegregation era the court was willing to, for example order ugh, ugh, you know changes that cost money to a local school district and the court was very uncomfortable with it, it was very hard to manage, it was hard to figure out. Ugh, you start getting into all sorts of eh, separations of powers issues ugh, you know in terms of eh, the court ugh, monitoring or or, engaging in a process ah, that essentially is administrative and and, takes a lot of time um....

... um, you know eh, the court’s just not very good at it and politically it’s just it's, very hard to legitimize opinions from the co.. ugh, from the court in that regard. So I think that although ah, you can craft, theoretical justifications for it legally, um, you know I think you can any any, three of us sitting here could, could come up, with ugh, a rationale for bringing about economic change through the courts.
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