Kathy's US Politics Blog

Although November 4th (election day) is more than a month away, early voting begins today in Ohio. (Early voting has already begun in Virginia and Iowa.) Moreover, due to a quirk in state law -- which Republicans fought unsuccessfully in court -- for one week an Ohio resident may both register to vote and cast an absentee ballot on the same day.

The (overwhelmingly Republican) Ohio Supreme Court ruled 4-3 that Ohio Secretary of State Jennifer Brunner (D) was correct to interpret that a calendar overlap meant that voters could do a "twofer" this week. And a Reagan-era appointee, U.S. District Judge George Smith, "declined to rule on another statewide challenge, deferring to the state Supreme Court's decision."

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The headlines read: Dow Drops 777 points, the "largest ever" points drop. It sounds bad (and it is). But the raw numbers provide no context and exaggerate the fear factor. Fear is bad, it leads to panic; and panic is what brought down WaMu last week.

Monday's Dow drop is about a 7% decline, comparable to the first day of trading after 9-11. Not pretty, but somehow 7% doesn't sound as bad as 777 points; and percentage wise, this drop is only the 18th worst. (That's a far cry from #1 points drop, isn't it? Which headline is likely to spark more "sky is falling" panic -- and sales or eyeballs?) This fact check might lead to you ask, how does this stock market decline compare to prior crashes?

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Attorney General Michael Mukasey has appointed Nora Dannehy, the acting U.S. attorney in Connecticut, as special prosecutor investigating the firing of nine United States Attorneys. The announcement came with the conclusion of an 18-month investigation by the Office of Professional Responsibility and the DOJ Inspector General.

The launching of a criminal inquiry follows the recommendation of internal Justice Department investigators who concluded that, despite denials of the administration, political considerations played a part in the firings of as many as four of the federal prosecutors.

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Last week, Kimberly Amadeo outlined why the "bailout" was needed to avert a financial meltdown. Today, the House has rejected (228-205) the bipartisan plan developed between the White House and Congressional Democrats and Republicans.

At least the House had sense enough to reject a motion to adjourn (394-8).

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CNN already has a transcript. A quick review of Twitter suggests a "draw", which was my immediate assessment (the video should be there somewhere. According to Twitter posts, PBS and CNN analysts are saying the same thing. John Anderson (Denver) argues that the "tie" goes to "the kid" who "showed he can play in the same league with the old hand."

2008 National Sponsors

• Anheuser-Busch Companies
• BBH New York
• The Howard G. Buffet Foundation
• Sheldon S. Cohen, Esq.
• EDS, an HP Company
• International Bottled Water Association
• The Kovler Fund
• Kaiser Family Foundation
• YWCA USA

And the institutions that host the debates? It costs $7,500 to apply (non-refundable) and $1,350,000 paid to CPD to "cover production costs." Data from the Commission on Presidential Debates.

Assuming that the first presidential debate goes ahead as planned, this first encounter between presidential candidates John McCain (R-AZ) and Barack Obama (D-IL) will be watched by millions, either on one of network/cable television or on computers. Will the audience break the record set at the Jimmy Carter / Ronald Reagan debate in 1980? That made-for-TV event drew about 46 million households, which represented about 57% of all US households.

There are similarities: the 1970s gas crisis and a protracted recession. Another reason to watch tonight: it's the 48th anniversary of the first televised debate, between John F. Kennedy and Richard M. Nixon. Folks who listened on the radio thought Nixon won; those who watched TV thought Kennedy won. The power of the visual.

Whether or not you've decided to watch the debate, check out this Viewer's Guide to the First Debate. (Maybe it will convince you if you haven't quite made up your mind.)

Remember: the debate is from 9.00 - 11.00 pm Eastern. I'll be on NW Cable News (Seattle) for post-debate analysis.

If you aren't crazy about the proposed bailout of Wall Street (you'd be in the majority, by the way), then learn how Sweden recovered from a similar housing-related financial crisis in 1992.

Sweden did not just bail out its financial institutions by having the government take over the bad debts. It extracted pounds of flesh from bank shareholders before writing checks. Banks had to write down losses and issue warrants to the government.

That strategy held banks responsible and turned the government into an owner. When distressed assets were sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies as well.

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In August 2002, The Washingtonian magazine ran a damning story about Fannie Mae that demonstrates the political reach of the mortgage giant ... and forecasts the potential risk to taxpayers should Fannie Mae stumble.

When Rep. Christopher Shays (R-CT) discovered in 2002 that Fannie Mae and Freddie Mac were the "only Fortune 500 companies that didn't have to tell the public about their financial condition," he teamed up with Rep. Edward Markey (D-MA) to try to "apply the government's disclosure rules to Fannie Mae and Freddie Mac."

They didn't succeed. But the story surrounding that quest is worth the 15 minutes it will take you to read the republished article.

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I checked OpenSecrets to determine how much money presidential candidates have received from "commercial banks," "insurance," the "real estate" sector, the "securities and investment" sector, and the "misc. finance" sector. Portions of these economic sectors are central to the current economic crisis.

In addition, OpenSecrets noted in July that Fannie Mae and Freddie Mac gave $1.3 million in the 2006 election cycle (53% to Republicans) and has given $555,700 so far in the 2008 cycle (53% to Democrats). After only four years in the Senate, Sen. Barack Obama is the number three beneficiary in total contributions over the period 1989-2008; he has received $105,849. Sen. Chris Dodd (D-CT) has received $133,900, and Sen. John Kerry (D-MA), $111,000.

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