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2008
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30
OCTOBER 2008
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Essential

Talk about a bad starting hand. The next president, Joe Klein writes in Time, will be the first since FDR to “face the prospect of neither peace nor prosperity.” Relegating McCain mostly to parenthetical asides, Klein suggests that Obama will avoid shaking up national security for stability’s sake and focus on the economy. Obama’s number one priority will be to put us on the track for an alternative-energy economy, which will take the form of an infrastructure and stimulus package in the $300 billion range. “It’s what used to be derided as big-spending liberalism,” and in order to overcome skepticism, Obama will need to make good on his campaign pledge for an “Infrastructure Bank”—a bipartisan board of five governors who would judge and approve all major projects. Such an institution would threaten congressional business as usual. “Will he be willing,” Klein asks, “to spend his political capital on this relatively obscure notion?”

Posted at 2:03 PM, Oct 30, 2008
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Scorcher

In a potboiler dispatch from corruption-plagued Miami, Ann Louise Bardach surveys the combustible local power struggle that could determine the fate of the U.S. Embargo against Cuba. Two brothers, Congressmen Lincoln and Mario Diaz-Balart, both nephews of Fidel Castro, wield enormous influence in Washington regarding U.S.-Cuban relations. Now Lincoln, facing a formidable challenge from a Democratic insurgent, is accused of fighting dirty: disappearing ballots, cash-for-votes, media manipulation. With Obama ascendant and Florida’s Cuban-American support for the GOP splintering, the dissolution of an international wall that’s stood for nearly half a century may finally be on the horizon.

Posted at 6:31 AM, Oct 31, 2008
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The Meltdown

Two of Wall Street’s surviving CEOs—Stephen Schwarzman of The Blackstone Group and Bruce Wasserstein of Lazard—met for a breakfast panel hosted by Fortune this morning and offered some valuable insight into the economic crisis. Among the conversation’s gems was a debate over the value of mark-to-market accounting, the process by which assets are assigned values based on the market price. Schwarzmann argued that banks’ current troubles are rooted in their inability to sell complicated securities, which forces them to mark their assets at low prices and therefore exacerbate losses. Wasserstein, however, said the alternative was “fiction writing,” and that many of these assets were not going to recover anyway. Also mentioned was Schwarzman’s lavish birthday party that featured Rod Stewart and Patti LaBelle and was considered by many as symbolic of Wall Street excess. “It was a great party,” Wasserstein said.

Posted at 3:48 PM, Oct 30, 2008
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Chilling

Jeffrey Gettleman’s New York Times dispatches from Goma, the Congolese city under siege by rebel forces, have been must-reads this week. Today, Gettleman reports a kind of uneasy truce: “the rattle of gunfire was remarkably absent for the first time in days.” The forces of rebel leader Laurent Nkunda were apparently respecting a cease-fire they had called Wednesday. However, there was still bloodshed: “rogue” government soldiers had turned on Goma residents, leaving ransacked houses full of dead bodies. Over at The Independent, Johann Hari provides some essential background on how the conflict began.

Posted at 1:08 PM, Oct 30, 2008
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Chilling

A spy working for one of Mexico's most powerful drug cartels had no trouble infiltrating the U.S. Marshals Service office at the U.S. Embassy in Mexico City, according to a new article in El Universal. He found the position, criminal investigator, by browsing through the embassy's online job bank. "Felipe," as the man now under witness protection is known, had been on the Beltran-Leyva cartel's payroll since 2005, when he infiltrated the Mexican office of Interpol. The job at the U.S. Embassy allowed him to share with the cartel the names and telephone numbers of people under investigation by the DEA and the Marshals Service. In exchange, the Beltran-Leyvas paid him a monthly salary of $30,000.

Posted at 2:58 PM, Oct 30, 2008
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Breaking

Those awaiting an October Surprise may soon get a familiar one. Government officials tell ABC News that they expect another election eve appearance by Osama bin Laden. Before someone calls John Kerry for comment, know that bin Laden’s appearance is only a rumor at this stage; officials reason that bin Laden wants to prove to the world that he’s not dead. Two reasons bin Laden may not make it back to CNN: the U.S. has staged operations against Al Qaeda Internet sites; and Special Forces operations in Pakistan make issuing a recording a dodgy proposition.

Posted at 4:13 PM, Oct 30, 2008
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The Meltdown

For a longtime, luxury magazines with high-end advertising have been considered the sole safe haven of print journalism. Now, not so much. Condé Nast announced today an across-the-board 5-percent budget cut. Even flagships Vogue, Vanity Fair, and The New Yorker are affected. Additionally, business magazine Portfolio will be reduced from 12 to 10 issues a year, and Men’s Vogue will drop all the way from 10 to two. Wired and Vogue will assume much of those two magazines’ operations.

Posted at 2:55 PM, Oct 30, 2008
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Novel

In a column from this month's Atlantic, Virginia Postrel argues that the anxiety over indebted Americans is nothing new, and not necessarily something we need to worry about. She notes that as far back as 1920 newspapers and social scientists were decrying easy credit. Postrel says that debt has indeed increased, but she believes, "The expansion of consumer credit is one of the great economic achievements of the past century." The figure of $10,000 per family is greatly exaggerated, averaging in customers like Cindy McCain, who ran up a $200,000 AmEx bill last month she probably can afford to pay. And credit cards are cheaper than payday loans or pawn shops, once the only resources of those living check to check. "Forms of credit may change," writes Postrel, "but credit anxiety, alas, does not."

Posted at 1:16 PM, Oct 30, 2008
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Eye Roller

Swing-state voters have, judging by the polls, mostly rejected the darker insinuations about Barack Obama’s background. But they sure have taken hold in Texas, where a University of Texas poll shows a full 20 percent believing that Obama is a Muslim. That makes it one red state Obama won’t be winning. Another 28 percent could not identify his religion. But there is one intriguing finding in the poll: Only 34 percent approve of George W. Bush.

Posted at 1:11 PM, Oct 30, 2008
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Gizmos
The Beatles

Beatles’ music still isn’t on iTunes, but it will be arriving on your PlayStation in late 2009. The Hollywood Reporter writes that MTV Networks and Harmonix are working together to develop a video game based on the Beatles catalog. The game will be based on the popular “Rock Band” platform and will take users on an “experimental journey” through the Beatles’ career. Paul McCartney and Ringo Starr are both involved in the game’s vision and direction, but—bad news for purists here—so is Yoko Ono.

Posted at 2:39 PM, Oct 30, 2008
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About Time

It certainly took awhile, but Barack Obama has finally received the photo-op he's surely been dying for: Yesterday in Florida, Bill Clinton joined him on stage for the first time this campaign. Relations have been icy between the two since Obama took on Hillary Clinton in the primary, but yesterday the Big Dog was unequivocal. ''Barack Obama represents America's future, and you've got to be there for him next Tuesday," Clinton told the crowd. Obama returned the valentine: 'In case all of you forgot, this is what it's like to have a great president," he said, before getting in a good jab at McCain. ''By the end of the week, he'll be accusing me of being a secret communist because I shared my toys in kindergarten.''

Posted at 8:18 AM, Oct 30, 2008
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Chilling
CS - Fritzl 081030

It seemed unlikely that the case of Josef Fritzl, the Austrian father who locked up his daughter, Elisabeth, for 24 years and forced her to have his seven children, could get any more lurid. Today comes news that the jailed Fritzl, 74, told a psychologist that he kept his mother locked in a sealed room for 20 years—until she died—as revenge for allegedly abusing him. “She used to beat me until I was lying in a pool of blood,” he said. “I never had a kiss from her or a cuddle.” Though he told friends she died in 1959, he now says it was 1980. “I locked her up at the top of the house,” he said. “I then bricked in the window so she never again saw the light of day.”

Posted at 7:13 AM, Oct 30, 2008
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Gizmos

Sony’s Blu-Ray won its battle with Toshiba’s HD-DVD, but its looking like both will lose the format war. Anticipating consumer dissatisfaction with the picture quality of regular DVDs on HD televisions, Sony packaged Blu-Ray licenses with exorbitant fees. (Hence the absence of indie films on Blu-Ray—small producers can’t afford the fees). But Sony failed to anticipate new regular DVD players that display just fine on HD TVs. With only a 4-percent market share and the emergence of HD-download capability, Blu-Ray may soon be joining its vanquished foe on the scrapheap.

Posted at 11:59 AM, Oct 29, 2008
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Scorcher

One of the more fascinating spectacles this election has been watching iconic conservative columnist George Will take after John McCain. From today’s scorcher: "Did McCain, who seems to think that Palin's never having attended a 'Georgetown cocktail party' is sufficient qualification for the vice presidency, lift an eyebrow when she said that vice presidents 'are in charge of the United States Senate?’” Ouch. Will goes on to charge to that “McCain has a history of reducing controversies to cartoons.” One of the latest controversies is the attempt by the McCain campaign to make light of Obama’s huge fundraising haul; as Will points out, the average Obama donation for September was $86.

Posted at 7:12 AM, Oct 30, 2008
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Seen This

It’s not exactly an October surprise but it’s a stunner nonetheless. The Times of London has turned up Obama’s aunt—in a Boston housing project. Actually, Zeituni Onyango, 56, is Obama’s half-aunt, but she is described affectionately in Obama’s Dreams from My Father. The Times says she “is a frail woman who walks with the aid of a metal stick” and for a time mentored children. She has managed to contribute $260 to her nephew’s presidential campaign and tells the paper: “I can’t talk about it, I just pray for him, that’s all. After the 4th, I can talk to anyone.”

Posted at 7:11 AM, Oct 30, 2008
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Early Word

Few artists' works oscillate between crap and genius as thoroughly as David Lynch's. The good news is you'll be able to decide which category to place his latest work in for free and at your own convenience. The legendary director of Blue Velvet and creator of Twin Peaks has agreed to produce a webisode series based on his book "Catching the Big Fish: Meditation, Consciousness, and Creativity." Lynch isn't the likeliest candidate for web innovation, saying this of the iPhone: "It's such a sadness that you think you've seen a film on your fucking telephone. Get real." We'll look forward to the results anyway.

Posted at 7:44 AM, Oct 30, 2008
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Intriguing

Robert Kagan thumps his chest on The Washington Post op-ed page today, offering a provocative takedown of the "faddish declinism" taking over America. America's share of the global economy—21 percent—is consistent with its stake throughout the past five decades, and the American military still outstrips the Russian and the Chinese. It's true, Kagan concedes, that America's image is damaged, but is it really any worse than it was in the 1960s and 70s, when it suffered Vietnam, My Lai, the Watts Riots, and the assassinations of John and Bobby Kennedy and Martin Luther King? "The danger of today's declinism," Kagan writes, "is not that it is true but that the next president will act as if it is."

Posted at 7:15 AM, Oct 30, 2008
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Essential
Obama Commercial

Last night marked the debut of Barack’s Obama 30-minute informational—a mix of Ken Burns Americana, “real people,” and testimonials from the likes of Bill Richardson. From the left, The New Republic’s Franklin Foer writes, “I had feared kitsch, but those fears proved to be unfounded. It was Reaganesque in its ability to combine anecdote and policy.” Over on the right, National Review Online’s Mark Hemingway was unimpressed: “I half expect to look over and see Karo syrup dripping down the screen.” The commercial ended—spoiler alert—with a live cut-away to an Obama rally in Florida.

Posted at 7:05 AM, Oct 30, 2008
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Up Himself
CS - Joe Plumber 081030

Okay, okay, okay. We're as sick of Joe Wurzelbacher as the next guy, but still: Politico reports that Joe the Plumber may soon be signed to a major record deal. Nice to know that he has talents other than unclogging toilets and shilling for John McCain. A lifetime fan of country music, an album is just one of Joe's opportunities, who recently signed with a Nashville public-relations firm to handle his media and interview requests. All indicators point to McCain losing on Tuesday, but this, on top of reports that Wurzelbacher may run for Congress, hints that his campaign's most annoying creation may be haunting us for years to come.

Posted at 7:39 AM, Oct 30, 2008
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Sports

One may have hoped that last night's World Series victory would have sated notoriously unruly Philadelphia sport's fans appetites, but, instead, it only fueled it. "Go on Philadelphia," John Smallwood writes in the Philadelphia Daily News, "dream, and be greedy because anything is possible now." After suggesting that, with the city's championship drought broken, the Eagles, Sixers, and Flyers could all win their titles, he continues: "Much of the negative perception the rest of the country has about Philadelphia fans was rooted in the penned-up frustration of not being able to experience the unbridled celebration that went on at Citizen Bank Park." Hm…Police are still assessing the damage and tallying the arrests from last night's victory celebrations. Seems to us that the "unbridled celebration" may be just as damaging to Philly's image as the "penned-up frustration."

Posted at 8:53 AM, Oct 30, 2008
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Talking Point

It’s probably best to take arguments about Obama’s “socialism” with a grain of salt, but at least they now have a better spokesperson than Joe the Plumber. In The Wall Street Journal, Daniel Henninger writes that Obama and progressive Democrats are advocating a model where “business is allowed to create ‘wealth’ so long as its utility is not primarily to create new jobs or economic growth but to support a deep welfare system.” Obama’s universal health care proposal is “the sine qua non of planting a true, managed-market economy in the U.S.” and his tax-policies would move the United States “away from creation and toward protection.” “Are the American people,” he asks, “of a mind to throw in the towel on the system that got them here?”

Posted at 11:34 AM, Oct 30, 2008
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The Campaign

What are John McCain's chances in Pennsylvania? Well, in the plus column: Barack Obama lost Pennsylvania to Hillary Clinton in April, and the state's Democratic governor Ed Rendell has worried about cultural conservatives not voting for a black man. The minus column? McCain trails between seven and 14 points according to the polls; Pennsylvania has gone Democratic in the past four presidential elections; and the state has one million more registered Democrats than Republicans, McCain has decided to put his eggs in the Keystone State's basket, and Rendell is sufficiently worried to have recruited Bill Clinton to stump for Obama in the state's western, rural parts. The McCain campaign insists that its internal polls have him within striking distance of victory.

Posted at 7:09 AM, Oct 30, 2008
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Audacious
CS - Opium 081030

Struggling to find a dragon to chase recently? This may be why: International law enforcement officials think that the Taliban is stockpiling heroin, possibly to rig the market. Time reports that 6,000 to 8,000 tons of opium – enough to satisfy the world's addicts for two years – have disappeared from Afghanistan, which produces 93 percent of the world's supply. Because production has exceeded demand in recent years, prices would have collapsed had the surplus hit the market. This year, the Taliban has posted notices in Afghanistan telling farmers not to grow opium. A similar order in 2001 led to a tight supply and skyrocketing price for opium on the world market. As one U.N. official put it, "This is classic market manipulation."

Posted at 7:19 AM, Oct 30, 2008
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2008
10
30
OCTOBER 2008
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M
T
W
T
F
S
Previous Day
Next Day
Cheats From October 30, 2008   Calendar