Palin Hits Obama on ‘Special Olympics’ Joke  —  Gov. Sarah Palin responded to remarks made last night by President Obama related to the Special Olympics on “The Tonight Show with Jay Leno”: … Well, after the way his allies went after her, he really couldn't count on a full-throated defense of a boneheaded comment.

Toxic Asset Plan Foresees Big Subsidies for Investors  —  WASHINGTON — The Treasury Department is expected to unveil early next week its long-delayed plan to buy as much as $1 trillion in troubled mortgages and related assets from financial institutions, according to people close to the talks.

Obama budget could bring $9.3 trillion in deficits  —  Featured Topics: - Barack Obama - Presidential Transition  —  WASHINGTON - President Barack Obama's budget would produce $9.3 trillion in deficits over the next decade, more than four times the deficits of Republican George W. Bush's presidency, congressional auditors said Friday.

THIS FEED IS CLOSED TO THE PRESS.  —  Huh, I wonder why Jake Tapper, press access warrior, has blocked me from following his Twitter feed.  —  Time for a blogger ethics panel?  —  UPDATE: Tapper has also blocked Talking Points Memo.  —  Bonus Tapper: His exchange with White House Press …

Joe the Plumber Wants to Make Love to Washington  —  The Republican's Working Man hero Joe the Plumber could barely contain himself last night before a crowd of adoring, media-bashing conservatives.  —  “God, all this love and everything in the room - I'm horny,” declared Joe, whose real name is Samuel Wurzelbacher.

Mass Hysteria Over AIG Obscures Simple Truths: Michael Lewis  —  Last September the U.S. government began to dole out the first of $173 billion to American International Group.  A big chunk of it passed right through to banks that had bought insurance from AIG against mortgage and corporate defaults …

ARE WE A BANANA REPUBLIC?  —  I'm stupefied to find that some people are defending the constitutionality of Nancy Pelosi's discriminatory, confiscatory and retroactive tax on people who receive bonus income from companies that got TARP money.  I would have considered it a bright line rule …

MSNBC In Discussions with Ed Schultz  —  The Observer has learned that MSNBC president Phil Griffin is in discussions with syndicated talk radio host Ed Schultz about possibly joining the network on a full-time basis.  It is unclear what exactly the job would entail should Mr. Schultz and MSNBC come to an agreement.

CNN's March Ratings So Far: More Lamb than Lion  —  More evidence that CNN is going to have to find a new strategy fast or risk becoming a cable news also-ran: In the month of March so far, the Time Warner-owned network has come in fourth place in prime time among adults 25 to 54 …

How I botched the bonus story  —  Featured Topics: - Barack Obama - Presidential Transition  —  The Washington ritual of the boiling scandal, with howls of outrage and frantic demands for a high-ranking scalp, is now in full swing over $165 million in bonuses for employees at failed insurance giant AIG.

Obama Uneasy About Tax on Bonuses  —  WASHINGTON — The White House stopped short on Friday of endorsing legislation to severely tax bonuses paid to executives of companies that accepted taxpayer bailout funds.  —  Administration officials said instead that President Obama would assess …

WITCH HUNTERY!  —  A great exchange on CNBC between the anchor and Rep. Brad Sherman (D-CA), one of the few elected voices of reason during the financial crisis:

Inhofe: The ‘Middle Eastern mentality’ is ‘worse’ than Nazism.  —  Since President Obama took office, Sen. Jim Inhofe (R-OK) has emerged as one of the leading congressional voices opposing the closure of Guantanamo Bay.  Yesterday, Inhofe discussed the issue on the G. Gordon Liddy Show, saying the U.S. needs to “keep the Gitmo open.”

The Big Takeover  —  The global economic crisis isn't about money - it's about power.  How Wall Street insiders are using the bailout to stage a revolution  —  It's over — we're officially, royally f**ked. no empire can survive being rendered a permanent laughingstock …

Conyers suggests probe of ACORN  —  Calls fraud charges ‘serious’  —  In an startling partisan shift, House Judiciary Committee Chairman John Conyers Jr. on Thursday proposed holding hearings on claims the liberal activist group ACORN engaged in a pattern of crimes ranging from voter fraud to a mob-style “protection” racket.

‘Shooting and crying’  —  Less than a month after the end of Operation Cast Lead in the Gaza Strip, dozens of graduates of the Yitzhak Rabin pre-military preparatory program convened at Oranim Academic College in Kiryat Tivon.  Since 1998 the program has prepared participants for what is considered meaningful military service.

McCain speaks up for Geithner  —  Tim Geithner, the embattled US Treasury secretary, should be given a chance to succeed, says John McCain, the former presidential candidate, who is the first prominent Republican to speak up in Mr Geithner's defence amid growing calls for his resignation.

Senate Republicans brake rush to tax AIG bonuses  —  Featured Topics: - Barack Obama - Presidential Transition  —  WASHINGTON - Senate Republicans are drawing out a flap that has made the Obama administration squirm, applying the brakes to Democratic attempts to quickly tax away most of the bonuses …