Politics

So what gives?
Quickie is that the red line is that Republicans hold the House as well as the Senate. (IEM 2006 US Congressional Control Market Price Graph)

Congress06
2006 US Congressional Control Market

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Is it this TIME.com: Why The Democratic Wave Could Be A Washout -- Oct. 2, 2006 -- Page 1"In a Gallup poll of likely voters last week, 48% said they would vote Democratic for Congress--and 48% said they'd vote Republican. Ken Mehlman, chairman of the Republican National Committee, says the opposition hasn't sold a vision for handling terrorism, Iraq or jobs. He also cites a drop-off in turnout for most Democratic primaries this year as one sign that the Dems aren't strong enough to mount a takeover of power on Capitol Hill. Which leaves the G.O.P. cautious but hopeful that it will be able to hang on to its majority. "The challenges aren't less, but the environment is better," says Mehlman. "If you look at the overall picture, this environment is not consistent with a surge election." In other words, the conditions aren't great, but maybe the Democrats' wave won't be quite big enough to let them surf into power."

The Clinton / Chris Wallace episode on Fox?
Discected by Dick Morris "From behind the benign façade and the tranquilizing smile, the real Bill Clinton emerged Sunday during Chris Wallace’s interview on Fox News Channel. There he was on live television, the man those who have worked for him have come to know – the angry, sarcastic, snarling, self-righteous, bombastic bully, roused to a fever pitch."

Then there is this from "The Economist":

US economy

Helping America's workers

Sep 21st 2006
From The Economist print edition

The Democrats need to posture less and think harder

Back in the 1990s, when Democrats last had any power in Washington, the party was run by economic centrists. Bill Clinton and his crowd believed in free trade and free markets. They were friendly to business and wary of unions. The centrists' creed was that government should not interfere with the market, but help workers cope with the consequences.

Judging by the political rhetoric of the mid-term election campaigns, that centrism has all but disappeared. As they rail against America's growing income inequality and the stagnation of many workers' wages, the Democrats have tilted clearly to the left. Gone is the firm defence of globalisation. In its place is a new populism, based on bashing business, boosting the unions and meddling with markets."

"In sum, today's Democratic politicians care more about embracing empty symbolism than crafting effective policies. Not only do they fail to push ideas, such as EITC (Earned Income Tax Credit) expansion, that are known to work; but they have also avoided intellectually tougher debates, such as how to revamp health-care or counter the rising elitism of the universities . A few hardy souls in Washington think-tanks still dream up market-friendly centrist ideas—the latest a proposal to aim unemployment benefits at workers whose old jobs have gone for good and whose new jobs pay less, rather than those who are temporarily out of work. But Democratic bigwigs are too busy sounding populist to notice."