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The New Print Edition of CounterPunch, Only for Our Newsletter Subscribers! Why Wall St is Betting Millions on Obama In part 2 of her investigation, market veteran Pam Martens traces the money big Wall Street players are sluicing into Obama's war chest and exactly why they are investing big-time in the "campaign for change". Plus more on the "No federal lobbyists on my team" fraud. You've heard about the plutonium-powered spy transmitters the CIA tasked climbers to haul up 25,000 feet to the high peaks of the Himalayas? What happened to the one they lost and to the men who carried them? Peter Lee gives CounterPunchers the full amazing story. Get your copy today by subscribing online or calling 1-800-840-3683 Contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now! CounterPunch books and gear make great holiday presents. Order CounterPunch By Email For Only $35 a Year !

Today's Stories March 3, 2008 Jennifer Loewenstein Gazan Holocaust March 1 / 2, 2008 Alexander Cockburn The Race Card Paul Craig Roberts The Political Trial of Don Siegelman Kathleen and Bill Christison Nader the Best Antidote to American Imperialism Nelson P. Valdés Cuba After Fidel Christopher Brauchli Meet Mr. Nursultan Nazarbayev: Friend of Bill, George and Dick Ron Jacobs Inside the Secret City: Bomb Making at Oak Ridge John Ross The New Conquistadores: Spain's Reconquest of Mexico Robert Fantina Posturing Over Patriotism: Obama and Those Lapel Pins Robert Weissman Hidden in Plain Sight: Human Rights Hypocrisy Mohammed Omer Fear in Gaza Remi Kanazi Barack Obama and the Politics of Xenophobia Bob Jackson Why is Yellowstone Destroying Its Bison Herd? Richard Rhames Casual Threats: Loaded with Mercury Franklin Lamb Lebanon Awaits the Arrival of the USS Cole Rannie Amiri Showboat Diplomacy: US Warships Steam Toward Lebanon David Michael Green The Three Faces of Hillary: the Politics of Flim-Flam Conn Hallinan Notes from the Southern Cone Faheem Hussain Prince Harry of Afghanistan and the Meaning of Normalcy Poets' Basement Gibbons, Orloski, Gardner and Ford Website of the Weekend The Palestine Chronicle Needs (and Deserves) Your Help!     February 29, 2008 Matt Gonzalez The Obama Craze Jonathan Cook Academic Freedom? Not for Arabs in Israel Joshua Frank Obama and Israel Anthony DiMaggio The Unilateral Presidency: Signing Statements and the Rollback of American Law Linn Washington, Jr. Cop Abuse in America Binoy Kampmark Hubris and Nemesis Robert Bryce Energy Efficiency May be a Good Thing, But It Won't Cut Energy Use Sonja Karkar Australia's Government Continues Its Love Affair with Israel Dave Lindorff A Manchurian Candidate in the White House? Obama or Bush? Website of the Day Olduvai George   February 28, 2008 Patrick Cockburn "Iraq" Falls Apart Fred Gardner The Birth of NAFTA Michael Levitin The Crisis in Kosovo is Just Beginning William S. Lind The Fake State of Kosovo David Macaray A Ray of Hope for Organized Labor Stephen Fleischman Nader's Latest Run: Monkey Wrench or Cattle Prod? George Wuerthner The Myths of Forest Health: Why Ecological Logging is an Oxymoron Laura Carlsen The North American Union Farce Carl Finamore Why the Delta-Northwest Deal Hasn't Taken Off Michael Dickinson The Day I Bombed the House of Commons Website of the Day Plane Stupid   February 27, 2008 David Rosen Playing the Race Card: Obama, Love Across the Color Line and Political Dirty Tricks Vijay Prashad Bomber John: McCain and the 100 Year War Harvey Wasserman Incident at Turkey Point: Did Florida Go to the Radioactive Brink? Andy Worthington Guantánamo's Shambolic Trials: Pentagon Boss Resigns, Ex-Prosecutor Joins Defense Wajahat Ali Pakistan for Sale: an Interview with Ayesha Siddiqa on Pakistan's Military Economy Peter Morici The Auction-Rate Securities Fiasco: a Drama of Greed and Betrayal Stephen Philion Conspiracy Theory, Fears of Betrayal and Today's Anti-War Movement Michael Donnelly Obama by Unanimous Decision Erica Rosenberg / Janine Blaeloch After the Land Deals: Will There be Any Wilderness Left to Protect? Website of the Day Dress Blues   February 26, 2008 Debbie Nathan Confessions of a Gitmo Guard Alan Dershowitz v. Frank Menetrez On Finkelstein Harvey Wasserman How Ohio Got Nuked Michael Colby Ralph Nader vs. the Fundamentalist Liberals Gary Leupp Condi vs. Putin on Bullying Belgrade David Orchard The New Conquistadors: Canada in Afghanistan Martha Rosenberg The Big HRT Fran Shor The Electoral Circus and Nader's Sideshow Serge Halimi The Dom Perignon Socialist Manifesto: Bernard Henri-Levy's Plan for the French Left Global Balkans Neo-Liberalism and Protectorate States in the Post-Yugoslav Balkans: an Interview with Tariq Ali Website of the Day Texistentialism   February 25, 2008 Roger Morris A Death in Damascus Anthony DiMaggio Military Bases, the Media and the Democrats Ralph Nader Why I'm Running Patrick Cockburn Iraq Broils Paul Craig Roberts Kosovo and the Empire Crazies Peter Morici Bernanke's Failing Policies: a Long Recession Looms Dave Lindorff General Welch's Whitewash: What We Still Don't Know About That Minot Nuke Incident Saul Landau / Farrah Hassen Fanatics, Mountebanks and Drillers: a Bloody Oil Film Heather Gray James Orange, Civil Rights Legend Robert Weitzel Accomodating Torture John Halle Kucinich Goes Down Website of the Day Do the Trunk Monkey! February 23 / 4, 2008 Alexander Cockburn The Mushrooming Clouds That Hang Over McCain Paul Craig Roberts Obama and Global Trade Wajahat Ali Omissions of the Commission: an Interview with Phillip Shenon on the 9/11 Commission Ralph Nader Neutering the FDA Jürgen Vsych "What Was Ralph Nader Thinking?" Fidel Castro Watching the US Presidential Campaign from Havana Andy Worthington Britain's Guantánamo David Macaray Unions Under Assault Jeremy Scahill The Real Story Behind Kosovo's Independence David Krieger Stanley Sheinbaum Caging the Cold War Monster Ron Jacobs Building for the Future Michael Garrity The Last, Best Hope for the Northern Rockies Brian McKenna Higher Ed's "Civic Engagements" Get Dumbed Down Missy Beattie Over the Hill with John McCain Fred Gardner American College of Physicians Takes Pro-Cannabis Stand (Mostly) Boris Kagarlitsky The Growth of the Russian Labor Movement Mike Ferner Kick That Barrel Dan Bacher On the Trail with the Border Angels Christopher Ketcham Hillary Goes Where Obama Fears to Tread Poets' Basement Davies and Buknatski Website of the Weekend Obama Mariachi   February 22, 2008 Mike Whitney The Bonfire of Capital Jason Hribal Elephants and the Circus: The Story of Janet Liaquat Ali Khan Arresting Musharraf Joshua Frank That Obama Glow: the Nuclear Industry's Golden Child Dave Lindorff Vicki's John: Ask Not What She Did for Him, Ask What He Did for Her! Liliana Segura When Torture is Old News: McCain's Blonde Diversion Robert Fantina Castro, Bush and Cuba: a Fiasco Waiting to Happen? Yifat Susskind The ABCs of Death: Bush vs. Africa's Women Norm Kent Pushing 60 with Pot Website of the Day Bush Gets Down in Liberia February 21, 2008 Saul Landau Fidel Steps Aside Elizabeth Schulte Left Behind, With No End in Sight: America's Long-Term Unemployed Helen Redmond Health Care as a Human Right Benjamin Dangl Undermining Bolivia Michael Levitin Kosovo's Dilemma Liam Leonard Fear and Loathing on the Emerald Isle Patrick Irelan Land and Food in Venezuela Linn Cohen-Cole Poor Ohio: a Second Letter to Hillary on Her Ties to Monsanto Michael Simmons Daydream Believer: John Stewart, the Miles Davis of Folk Music CounterPunch News Service A Message from the Women of Okinawa to US GIs Website of the Day Cop Abuse in Shreveport   February 20, 2008 Paul Craig Roberts Lies and Spies Paul Krassner My Brief Encounter with Fidel Castro Fawzia Afzal-Khan The Pakistani Elections Farzana Versey The Great Dictator: Musharraf, Peace and the Autumn of the Patriarch Allan Nairn Dying for a Second Round: Israel's New Plan to Attack Lebanon John V. Whitbeck If Kosovo, Why Not Palestine? Niranjan Ramakrishnan A Balcony Seat to Our Own Balkanization? Steve Eckardt Cuba Sans Fidel: No News is Big News Lee Sustar Union-Busting at Freightliner Mike Ferner How Sick of It are You? Website of the Day The US Military Index   February 19, 2008 Uri Avnery Blood and Champagne Paul Craig Roberts Paying Insurgents Not to Fight Gary Leupp The Independence of Kosovo Fidel Castro The Moment Has Come David Macaray Management's Dirty Little Secret Reza Fiyouzat Buck the Circus! The Left and the Elections Valerie Morse The New Zealand Terror Raids: Land of the Long White Lie Walter Brasch Bush on Safari Website of the Day Don't Think Twice, It's Alright   February 18, 2008 Wajahat Ali Free Pakistan: an Interview with Imran Khan Diana Johnstone NATO's Kosovo Colony Paul Craig Roberts What Do We Stand For? Andy Worthington Gitmo: "We're Making This Up as We Go Along" Debbie Nathan Bernie Ward's Sex Tapes Anthony DiMaggio Following the Money Trail: the Democratic Party and the Business of Elections Bill Simpich Ten Years Ago, People Power Stopped Clinton in Iraq Eva Liddell A Short History of Super-Delegates: Hope, Yes! But Pay in Cash Christopher Brauchli The President Who Couldn't Keep His Word: Short-Changing Veterans Stephen Soldz Wikileaks is Under Attack! Johann Rossouw The Ouster of Thabo Mbeki: South Africa and the Costs of Neoliberalism Website of the Day Sick of It Day!   February 16 / 17, 2008 Alexander Cockburn The Terrorists Still at Ground Zero, 7 World Trade Tower, Lower Manhattan Ralph Nader We the Corporations ... David Macaray The Big Buy Out: Did GM Drive Another Nail in Labor's Coffin? William J. Peace Wheelchair Dumping Ron Jacobs War on the Psyche: Shellshock and Redemption Diane Christian War Corrupts Alan Maass Oil, Blood and Greed: Taking Upton Sinclair to the Big Screen (and Beyond) Ramzy Baroud Iraq and the US Elections Michael Donnelly Genitalia First! Old Guard Feminists Play the XX Card Cpt. Paul Watson The Art of Finding Whalers James L. Secor China Diary: Spring Festival and New Year 2008 Eve Bachrach Bush Returns to Africa Nikolas Kozloff Hugo Chávez's Anti-Imperialist Army Stephen Gowans Steven Spielberg, Faux-Humanitarian Missy Beattie To Vote or Not to Vote? David Michael Green Warming Slowly to Obama Wajahat Ali Attack of the Info-tainment Circus Poets' Basement Gibbons, Willson, Mickey Z., Orloski and Reuther Website of the Day Yellowstone's Bison Need Your Help--NOW!     February 15, 2008 George Szamuely The Absurdity of "Independent" Kosovo Patrick Cockburn Ground-Truthing the Surge: Is the US Really Bringing Stability to Baghdad? Wajahat Ali Pakistan is Burning: an Interview with Steve Coll on the Taliban, Bin Laden and the Bush Administration Mike Whitney Henry Paulsen's Wild Ride on the Economic Hindenberg Alan Farago God and the Democrats Chris Genovali Alberta's Black Gold Rush Jacob Hornberger Courting Injustice: Scalia on Torture Dave Lindorff Snoops Always Ring Twice: Bush's Protect America Bill Bull Website of the Day Live From the Land of Hopes and Dreams     February 14, 2008 Kathleen and Bill Christison Palestine in the Mind of America Mike Whitney Swan Song for NATO Clancy Sigal Strike Notes from a Screenwriter George Wuerthner A Bloody Sham: the Yellowstone Bison Slaughter Peter Morici Is Bernanke Headed for the Exit? John Ross Drug War Mayhem Boils Over from Border to Border Allan Nairn Mafia Rules in the Middle East: If You're Big Enough, You Can Whack Anyone Rannie Amiri Lebanon's Warmongers Niranjan Ramakrishnan The New Tractatus: Where Wittgenstein Meets Feinstein Donna Volatile Be Careful What You Vote For, You Just Might Get It Seth Sandronsky The Student Squeeze: Fighting California's Tuition Hikes Website of the Day Conventions: the Land Around Us   February 13, 2008 Nikolas Kozloff Meet John McCain: Mr. Big Stick in Latin America Alan Farago Hell to Pay: Warren Buffett on the Goal Line Christina Kasica King's Dream Foreclosed: the Subprime Crisis in Black America Vicente Navarro How to Read the U.S. Primaries Hall Greenland Australia's Finest Hour Lee Sustar Strange Stimulation: Too Little for Those Who Need It Most David Macaray The Writers' Strike Finally Ends Roderick Frazier Nash Celebrating Wilderness Patrick Irelan Hugo Chávez and High Anxiety at the NYT Anthony Papa Mean Mister Mukasey: AG Tries to Block Crack Cocaine Releases Carl Finamore Another Parade Passes Me By: Don't Let Your Movement be Coopted by Politicians Website of the Day John He Is   February 12, 2008 Frank J. Menetrez The Case Against Alan Dershowitz Paul Craig Roberts War Without End Dr. Trudy Bond The Elephant at Gitmo: Camp 7 and the Torturer's Shrink Andy Worthington The Guantánamo Six: Why Charge Them Now? What About the Torture? Col. Dan Smith The Psychology of Killing: Close In or Far Away? Ronnie Cummins Globalization: Standing at the End of the Road Ralph Nader Open the Government John V. Walsh Antiwarriors, Divided and Conquered Dave Lindorff Obama and Progressive Change: Let's Hope the Movement Transforms the Candidate Michael Donnelly Who's Pimping Whom? The Clintons' Selective No Talk Rules Ron Jacobs La Lucha Continua: Castro's "Life" Ben Tripp Beggars Collide Website of the Day Springsteen and Youngstown   February 11, 2008 Cockburn / St. Clair Lessons for Obama: When is a Delegate Not a Delegate? Wajahat Ali A Discussion with Walt and Mearsheimer on the Israel Lobby Ray McGovern Waterboarding for God and Country Allan Nairn The Shooting of Jose Ramos Horta Uri Avnery An End Foreseen? Chris Floyd American Psycho: the Meaning of Mitt Romney's Exit Speech Martha Rosenberg School Lessons in a Lunchbox: Lunchmeat from Tortured Cows Stephen Fleischman The Bonnie and Clyde of American Politics Marc Lamont Hill Not My Brand of Hope Liliana Segura Obama and Torture: the Sounds of Silence and Equivocation Peter Morici Challenges for the New President Christopher Brauchli A Drug Rant from a Former Taker Website of the Day Annie vs. the Blue Angels   February 8 / 10, 2008 Paul Craig Roberts Does the GOP Have Aces Up Its Sleeves? Patrick Cockburn Will Moqtada al-Sadr's Truce Hold? Mike Whitney The Great Bust of '08 Anthony DiMaggio How the Press Covers Waterboarding Andy Worthington The Guántanamo Trials: Where are the Terrorists? Linn Cohen-Cole Hillary, Will You Renounce Your Ties to Monsanto? Firmin DeBrabander Notes from the Foreclosure Front: Suing Your Way to Solvency Cpt. Paul Watson The Other Whaling Industry: How Greenpeace Cashes In on the Suffering and Deaths of the Great Whales Kenneth S. Pope Why I Resigned from the American Psychological Association Jacob G. Hornberger American Soldiers Will Pay the Price for Bush's Torture Policy Robert Bryce Beyond Group Think on Climate Change: If More CO2 is Bad ... Then What? P. Sainath The Last of the Buccaneer Editors Allan Nairn Give Me Back My Land Fred Gardner / Pebbles Trippet "The District Attorney of Shasta County Doesn't Know the Law!" Andrew Wimmer Growing Up Catholic: Ignorance is Death Robert Fantina America's Disgrace: the Case of Omar Khadr David Michael Green Partycide in Six Easy Steps: Watch the Democrats Destroy Themselves Kevin Zeese Is Dennis Kucinich Being McKinney'd? Peter Morici Wall Street Gives Bernacke a Vote of No Confidence Chris Driscoll Could Nader be the Come-Back Kid of 2008? Prairie Miller Black August: Bringing George Jackson's Life to the Screen Poets Basement Davies and Buknatski   February 7, 2008 Patrick Cockburn Why Baghdad Will Explode Again Bill Christison Potholes Bigger Than Ever for Palestinians David Anderson NBC's "To Entrap" a Predator: Perverting Justice for the Sake of Ratings Ron Jacobs Innocent Flesh: Recruiting Kids to Kill Nikolas Kozloff Hugo Chávez's Coca: It's the Real Thing Jane Rockefeller The Moral Economy of an Anti-Poverty Foundation Andy Worthington On Waterboarding: Two Questions for Michael Hayden Dave Zirin Instep Intifada Saul Landau The "Honestest" Candidate Since Lincoln Susie Day Our Blob in the White House Website of the Day George Carlin on Voting   February 6, 2008 Cockburn / St. Clair Super Tuesday's Vote for Chaos Ben Rosenfeld Informant Games: The Disturbing GreenScare Case of Briana Waters Vijay Prashad An Intellectual Hustler Lays It All Out Joe Bageant Nine Billion Little Feet on the Highway of the Damned Michael Donnelly What White Women Do In Private Voting Booths Allan Nairn Does the US Need a Civilizing Mayan Invasion? Kathryn Gray Wilderness on Edge: The Fate of Donner Summit Ray McGovern Powell's UN Fiasco Sheldon Richman The Whining Empire Paul Cantor / Roger Sparks A Presidential Aptitude Examination John Chuckman Political Bits and Pieces Website of the Day Save the Albatross February 5, 2008 Winslow T. Wheeler The Chaos in America's Vast Security Budget Tariq Ali Why I Will Not Participate in the Turin Book Fair Stephen Soldz The Secret Rules of Engagement in Iraq: Did Rumsfeld Authorize War Crimes? Chris Floyd Strange Fruit: America's Gulag and the Good War William S. Lind Saddam's Secret War Strategy: Die and Win Martha Rosenberg Live From the Killing Floor Heather Gray Conversations with Georgia Voters Ayesha Ijaz Khan Obama, Bhagwandas and the Battle for a Secular Politics David Macaray Unions Need to Stop Being So Nice Eliza Ernshire Making Music and Laughing Till the Tears Run Brenda Norrell Hated Nation Website of the Day The Things I Used to Do     February 4, 2008 Marc Levy Winter in America Patrick Cockburn The Bird Market Bombings Saree Makdisi Strangling Gaza Uri Avnery From Stalingrad to Winograd Alan Farago Let's Get Bambi! Someone is Slaughtering Florida's Key Deer Ben Tripp Spare Change: the Whine of the Progressive Voter Paul Wolf Civil Wars North and South Paul Craig Roberts Why Were the 9/11 Tapes Destroyed? Joshua Frank MoveOn's Obama Endorsement: Why There's No Hope for Change John Halle Whither Progressive Democrats? Website of the Day How to Cheat in School   February 2 / 3, 2008 Alexander Cockburn Hot Democratic Properties Pam Martens Bankers Gone Bonkers: Global Finance and the Insanity Defense Ralph Nader The Great Clinton-Obama Debate: Questions They Weren't Asked John Ross Hilaria vs. "El Moreno" Wajahat Ali Hillary, Obama and the Clash of Civilizations: an Interview with Imam Zaid Shakir Robert Fantina A Colony by Any Other Name: Iraq as Stepchild of the American Empire B. R. Gowani Not All Veils and Guns James L. Secor China in Winter: On the Western Edge of the Great Snow John V. Walsh The Invisible Green Primary Niranjan Ramakrishnan Barack's Bubble, Bubba's Trouble Dave Zirin Who Stole the Super Bowl's Soul? Jeremy Scahill Blackwater and Blood Fidel Castro Reflections on Lula Joe Allen Tet Reconsidered: the Turning Point in the Vietnam War Stephen Lendman Life in Occupied Gaza Patrick Irelan What Happened to the Streetcars? Andrej Grubacic Ziga Vodovnik Caligula's Horse: the USA, New Europe and Kosovo Josh Karpoff Dead Soldiers and the Antiwar Movement Ron Jacobs Carl Oglesby's War Paul Krassner Tom Waits Meets Super-Joel Website of the Weekend Company Woman: Hillary and Wal-Mart   February 1, 2008 Ray McGovern The Iniquities and Inequalities of War Diane Farsetta The Wild Career of James "Dow 36,000" Glassman Patrick Cockburn The Most Dangerous Country in the World for Journalists Tariq Ali Et Tu, New York Times? Allan Nairn Eating Dirt for Lunch in Haiti Rannie Amiri Collective Punishment in Beirut Ramzy Baroud People Power in Gaza: They Simply Did It Kenneth Couesbouc The Mother of All Snowballs Peter Morici Recession Looms Mumia Abu-Jamal Witha "Brutha" Like This: Bill Clinton as White Negro Rosemary Jackowski 27 Reasons Nader Should Run for President Scott Campbell Direct Action to Stop the War Re-emerges Website of the Day Betes et Hommes   January 31, 2008 Saul Landau Return to Afghanistan Andy Worthington Horror at Guantánamo Mike Whitney Rate Cut as Dagger: America's Teetering Banking System Jeff Ballinger Sustainability for Dictators Initiative? Clinton Praises the "Suharto of the Steppe" Tiffany Ten Eyck The Saga of the Freightliner Five William Loren Katz Waterboarding: Torure or Mystery? Alan Farago Why the Republicans are in Deep Trouble Col. Dan Smith Oh Say Can You See the 2009 Budget? China Hand Slouching Toward Islamabad Dave Lindorff The Usual Suspects Once Again Wadner Pierre Fake Democracy in Haiti Website of the Day One Big Union   January 30, 2008 Cockburn / St. Clair McCain vs. Clinton? Christopher Ketcham The Genius of the Development Industrial-Complex Robert Weissman America By the Numbers: The Shameful State of the Union Neve Gordon An Experiment in Famine Paul Craig Roberts Regulation or Deregulation, Which is Worse? Joanne Mariner How Anti-Terror Laws Threaten Free Speech David Macaray Labor's Only Real Weapon Liaquat Ali Khan Is NATO Committing Genocide in Afghanistan? Raymond J. Lawrence Prankster-in-Chief: Bush's Troubling Non-Verbal Communication Dan Bacher The Collapse of the Central Valley Salmon Website of the Day Onward Through the Fog   January 29, 2008 Franklin C. Spinney Bush's New War Budget: the $70 Billion Hand-Off Mike Whitney The Great Credit Unwind of 2008 Alan Farago Buyer Beware: Florida, the Candidates and the Latin Builders Association Patrick Cockburn "The Americans Bring Us Only Destruction" Gary Leupp "We Can't Afford to Let Them Spill the Beans:" a Sibel Edmonds Timeline R. F. Blader A World Without Abortion: USA v. Romania Ahmad Faruqui Musharraf's Post-Electoral Prospect Fran Shor Obama, the Kennedys and "Change We Can Believe In" Jeremy Scahill Secret Trials and Criminal Convictions: the Ordeal of the Blackwater Protesters Allan Nairn Bush's SOTU: Entitlement, Justice and the War of All Against All Website of the Day The Ghost of Rambo   January 28, 2008 Patrick Cockburn Return to Fallujah Paul Craig Roberts The End of American Liberty Allan Nairn The Breaking of the Gaza Wall Eyad al-Sarraj / Sara Roy Ending the Stranglehold on Gaza Martha Rosenberg Obit for the "Front Page" City Corporate Crime Reporter How They Rip Us Off David Michael Green Kristolizing Iraq: What a Great Freakin' War Jennifer Van Bergen What's Left? Nancy Oden Survival Tips for Hard Times Divya Karnad Saving India's Sea Turtles James L. Secor Pissed About Pistorious: Why the Olympics Needs a Gimp Website of the Day Yellow Journalism?         Subscribe Online

March 3, 2008 Down Goes the Peloton American Politics and the Faltering Economy By ALAN FARAGO A small percentage of Americans ever heard of the peloton; the tight-knit pack of riders leading a bicycle race. But Americans generally are clueless about so much of what the rest of our trading partners understand: the United States has dropped to the back of the world economic peloton. Democratic candidates for president have it right: the responsible party for stripping the gears from the US economy is over there, on the other side of the aisle. Americans do understand what is happening close to home. For that reason alone, by November the next president of the United States will be a Democrat. Who knows what Congressional Democrats are doing now, trying to cobble together rescue plans to stop a tidal wave of homeowner foreclosures. People are clamoring for help. So is industry, in particular the homebuilders and their supply chain whose enthusiasms-directed primarily through contributions to Republicans-succeeded in inflating one of the biggest bubbles in US economic history. Whatever Congressional Democrats might propose, it is not enough to prevent the long-delayed recalibration of the economy. The New York Times reports that a bill drafted by Senate Democrats, objected to by Republicans and the Bush White House, "would have provided $4 billion for state and local programs to rehabilitate abandoned housing; $10 billion for states to raise low-cost mortgage money through tax-free revenue bonds; and another $200 million for counseling services to help homeowners renegotiate their loans." It is like building a lean-to against a hurricane. There are certain immutable truths, for Democrats. One is the same for politics as it is for common investors: don't try to catch a falling knife. The best counter that Congressional Republicans can muster: make the Bush tax cuts permanent. For the rest of common shareholders, last week stocks fell for the fourth straight month. The dollar declined to a record low against the Euro. The Wall Street Journal reported that the FDIC is advertising to hire retired experts, in anticipation of a rash of bank failures. The Fed is finally acknowledging the rampant inflation that has been coursing through food and energy costs for many years. On the Champs Elysee, a bottle of water costs $10 US dollars. Precious metals are on a ride to the moon. In the peloton there is speed in numbers. But when one at the front of the peleton goes down, the whole pack tangles in a mess of skin, blood and asphalt. Stranger than fiction, then, that the hedge fund of the year, crowned only last month, was called the Peloton ABS Fund, run out of London by former Goldman Sach's managers. Last week, it was forced to close by creditors. The $2 billion lost by Peloton Fund is a droplet in the context of losses, so far of about two hundred billion from the collapse of the secondary market for securitized mortgages. Last week, Citigroup extended $500 million in emergency funds to its Falcon fixed income fund. This came in the wake of its seizure of Florida-based Tequesta Capital, and its well publicized parceling of $7.5 billion equity to Abu Dhabi's sovereign wealth fund. Separately, KKR, the world's largest publicly traded private equity firm, announced massive write-downs last week, asking its investors for "patience". Among the world's largest financial institutions, patience is a commodity in very tight supply. Federal Reserve interest rate cuts have scarcely budged loan rates to the end user. Everywhere, credit is tightening. One can deduce, something akin to panic has set in. So far, the modern version of financial panic is different from the 1930's version-with account holders drumming the doors of shuttered banks. In my hometown, Miami, empty skyscraper condominiums are still being topped off by immigrant workers who pile into the city by day and disappear at night. City and county commissions are still clapping hands and approving the permitting of more and taller. The height of folly is measured in Hurricane Alley. The world at large forgets that Republicans intended Florida, whose production homebuilders propelled Jeb Bush to the governorship in 1998, to be the micro-model for limited government that spurned regulation, that plowed under wetlands and destroyed aquifers and rivers and streams, all to foster campaign contributions that would create a permanent majority in the states and in Congress and in the White House. Florida was the incubator, then, for the Grover Norquist/Karl Rovian plan for the Republican century that has come to naught-scarcely reported by the mainstream media even then and certainly not now, as local publishers ponder how to explain that so much equity vanished, evaporated in secondary mortgage markets servicing such pie-in-the-sky cities like Miami and causing the world's largest financial institutions to struggle to maintain capital reserves adequate to their own survival in London, Frankfurt, Madrid or Paris. To be sure, if you are a US homeowner who surrendered or is facing foreclosure, or, if you are a homeowner facing negative equity in your mortgage and, worse, a home equity line of credit tied to a value that has not yet adjusted to market reality; you are already side-lined; no longer speculator, you are a spectator praying for job security and hell to the Republicans. Last year the Peleton ABS fund returned 86.61 percent. Its principals were the toast of London. Peloton made its money from betting billions against subprime mortgage securities, leveraging successful bets with collateral from high quality mortgage derivatives. But the subprime waste turned even the high quality derivatives toxic to investors and to lenders. Peloton guessed that the fall in the top-ranked slice of the market for housing debt was temporary and "purely due to technical factors". Florida water managers have played the same game for decades with Big Sugar's pollution of the Everglades. There is a moral to Fleet Street and Wall Street from the environment it long spurned: the solution to pollution is not dilution. The Wall Street Boyz (to borrow from Jim Kunstler) believed once the worm in the apple was excised, the rest would maintain the value of a new apple. There are hundreds of hedge funds in the same position (and managers whose tastes in pieds a terre have sent London, Paris and New York real estate into the stratosphere); with debt tied to the bet that money could be made by collateralizing high rated mortgage debt in order to short sell low rated debt. As lenders began panicking about the value of their assets, they started tightening credit policies against borrowers like Peloton. One hedge fund manager told Financial Times, "We are now in a period of the market where what were previously perceived to be less volatile credit assets are dropping significantly in price, so anyone who is employing more highly levered strategies is going to be seriously hurt." In other words, it's not the Peloton Fund that is in trouble: it's the entire peloton. Which brings me back to the Democrats. If they are smart-they will know that the various rescue plans being offered in subcommittee will have no effect of ameliorating crashing credit markets whose totals, including various forms of consumer debt that are also at risk, are well in excess of $1.5 trillion. It is another way of saying: Republicans who stirred up the evangelical base with doomsday scenarios are getting paid back in spades: but the day of reckoning doesn't look like anything from the wings of avenging angels. It looks like a solid economic thumping, the likes of which the United States hasn't seen since the 1930's. In the curious conduct of American politics, the presidential race is still about who can best lead us into the future. Meanwhile, the business of Washington goes on; it is still a political order and a race that the Bush White House and Karl Rove set, nearly ten years ago. For Democrats in the peloton, some advice: until November, best to stay out of the way with hands close to the brakes. Come next January and the inauguration of a new president, you will need all your skill to form a new peloton. Alan Farago of Coral Gables, who writes about the environment and the politics of South Florida, can be reached at alanfarago@yahoo.com.

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