"The Fog is So Thick, We Can't See Land"*

*Bob Dylan

++Kapow. The Dow has the largest decline since 2008. Your friendly newspeople claim it's because of the S&P downgrade. Problemo--there was a rush to treasuries today. Investors are marching to a safe harbor. But that doesn't stop the GOP and teabaggers from blaming Obama for the downgrade--despite the specific language aimed at Republicans unwilling to increase government revenues. Acting P.O'd S&P downgraded Fannie Mae and Freddie Mac, the troubled mortgage agency.

++In the last two days some other people have come forward to denounce the downgrade--Alan Greenspan, Steve Forbes and,I am shocked, George Will. David Frum notes that today's crash was because investors fear recession and deflation ,while Washington fears debt and inflation. In other words, D.C. has it upside down and this wasn't Paul Krugman speaking.

++The teaparty actually celebrated the downgrade and claimed it was caused by raising the debt ceiling. Even Michelle Bachmann claims this is true. But Wall Street Republicans are furious with the teabaggers for jeopardizing their good thing. Mitt Romney blamed Obama for the downgrade ,then backed away today saying "maybe it was totally the President's fault." Whatever you want to hear he'll say it.

++Rick Perry drew about 25,000 to his Pray for America fest. www.rightwingwatch.com recorded the best bits in case you missed it. When are we going to create the Jesus Christ Anti-Defamation League to protect us from the lunatics who claimed they were Christians? Even Southern Baptists don't even approach these groups for their insanity. Dominionists, Reconstructionists. They claim they have changed Christianity more radically than the Reformation. They've boiled Christianity down to the books of Genesis, Leviticus and Revelations. Jesus doesn't get to deliver the Sermon on the Mount. But you would never know from the Washington Post, who covered this as a meeting of real Christians. The good news is that a nearby give-away of school supplies drew 100,000.

++Rick Perry is supposed to announce he is running for President sometime this weekend. He is timing this for the Iowa Ames poll of Republicans. The idea is that he is supposed to take away the Christianist vote from Michelle Bachmann, who graces this week's cover of Newsweek. Most view Bachmann as the favorite in the state. What a poor showing for Pawlenty means for his candidacy is anyone's guess.

++Meanwhile the left is abandoning Obama and claiming he is siding with Leon Panetta to preserve defense spending while cutting Medicare. Jerry Brown urged Obama to dig deep in his soul and communicate a message about what is at state in the 2012 election. Gallup has done its 50-state poll, showing the President is above 50% in 16 states and has been improving in Swing states since 2010. Another poll has him beating a generic Republican by 48-44. However that poll warns he isn't over 50%. Democrats would beat Republicans for the House 49-45. As some wag wrote, we are looking at Speaker Pelosi and Majority Leader Jim DeMint next time.

++Rhetoric is heating up in Wisconsin. Judson Phillips of the Americans for Prosperity claims that liberals have "killed more than a billion people in the last century" and that they are the "red shirts" heckling Governor Scott Walker. Democrats shouldn't get too optimistic about sweeping the recalls. It looks close and will depend on turnout. Millions upon millions are coming into the state still.

++The Department of Justice is looking at the RICO statutes to investigate Rupert Murdoch's Newscorps on allegation of phone hacking and other crimes.

++The 7th Circuit Court ruled that Donald Vance and Nathan Erkel can go ahead and sue Don Rumsfeld for torture when both were security contractors in Iraq and whistleblowers about arms deals with the militias.

++Steve Benen at Washington Monthly and Josh Marshall at Talkingpoints continue to do the simple work of explaining how the GOP is to blame for the downgrade. But I am convinced after hearing Ricky Cantor urge his party to continue what it's been doing that the attempt at education is futile. Even though David Axelrod and John Kerry showed up on the talk shows talking about the "Teaparty Downgrade", the news media still does the old both sides are to blame.

++President Obama spoke again about the downgrade today and the economy. The one little nugget I got was that he plans to submit his own proposals to the Supercommittee. If only this group will meet openly.

++Few people are commenting on the fact that our Treasury Department still lacks a full team because of the Senate delays in approving any nominations. Tim Geitner has agreed to stay on--otherwise no one would be at home.

++The European Union is heavily intervening to bail out the troubled economies of Italy and Spain. If anything the European debt crisis is one of the key reasons global markets are in a tizzy.