In the New York Times magazine this last Sunday with the unintentionally hilarious headline "What the Left Doesn’t Understand About Obama," editor of The New Republic, Jonathan Chait has a whopper in the very first paragraph (emphasis is mine):

This has been the summer that liberal discontent with Obama has finally crystallized. The frustration has been simmering for a while — through centrist appointments, bank bailouts and the defeat of the public option, to name a few examples. But it has taken the debt-ceiling standoff and the threat of a double-dip recession to create a leftist critique of the president that stuck.

Obama passed the stimulus. The stimulus that worked. Bush bailed out the banks and the auto industry. Now the American auto industry is slightly booming at the moment. Hiring and everything. And the banksters are rich and under-taxed. As much as I hate to admit it - something horrible Bush did actually worked.

Get that? Bush bailed out the banks and the auto industry in '08. Guess who wasn't President until January '09? Someone who couldn't have bailed out anything yet. Obama got stuck with its implementation but he didn't start it. Bush is the Bailout President. Remember: "I've abandoned free-market principles to save the free-market system."

This is revisionist at best. Otherwise false.

This deserves a correction. That's what we do in journalism - whether is at a blog or at the Grey Lady.

The New York Times needs to correct this error.

It's long, go read the whole infuriating thing. Matt Taibbi in Rolling Stone talks about how the Fed bailout was manipulated to benefit connected people who were already rich:

But if you want to get a true sense of what the "shadow budget" is all about, all you have to do is look closely at the taxpayer money handed over to a single company that goes by a seemingly innocuous name: Waterfall TALF Opportunity. At first glance, Waterfall's haul doesn't seem all that huge — just nine loans totaling some $220 million, made through a Fed bailout program. That doesn't seem like a whole lot, considering that Goldman Sachs alone received roughly $800 billion in loans from the Fed. But upon closer inspection, Waterfall TALF Opportunity boasts a couple of interesting names among its chief investors: Christy Mack and Susan Karches.

Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as president of Morgan Stanley's investment-banking division. Neither woman appears to have any serious history in business, apart from a few philanthropic experiences. Yet the Federal Reserve handed them both low-interest loans of nearly a quarter of a billion dollars through a complicated bailout program that virtually guaranteed them millions in risk-free income.

The technical name of the program that Mack and Karches took advantage of is TALF, short for Term Asset-Backed Securities Loan Facility. But the federal aid they received actually falls under a broader category of bailout initiatives, designed and perfected by Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner, called "giving already stinking rich people gobs of money for no fucking reason at all." If you want to learn how the shadow budget works, follow along. This is what welfare for the rich looks like.

[...] In the case of Waterfall TALF Opportunity, here's what we know: The company was founded in June 2009 with $14.87 million of investment capital, money that likely came from Christy Mack and Susan Karches. The two Wall Street wives then used the $220 million they got from the Fed to buy up a bunch of securities, including a large pool of commercial mortgages managed by Credit Suisse, a company John Mack once headed. Those securities were valued at $253.6 million, though the Fed refuses to explain how it arrived at that estimate. And here's the kicker: Of the $220 million the two wives got from the Fed, roughly $150 million had not been paid back as of last fall — meaning that you and I are still on the hook for most of whatever the Wall Street spouses bought on their government-funded shopping spree.

The public has no way of knowing how much Christy Mack and Susan Karches earned on these transactions, because the Fed has repeatedly declined to provide any information about how it priced the individual securities bought as part of programs like TALF. In the Waterfall deal, for instance, we know the Fed pledged some $14 million against a block of securities called "Credit Suisse Commercial Mortgage Trust Series 2007-C2" — but that data is meaningless without knowing how many units were bought. It's like saying the Fed gave Waterfall $14 million to buy cars. Did Waterfall pay $5,000 per car, or $500,000? We have no idea. "There's no way of validating or invalidating the Fed's process in TALF without this pricing information," says Gary Aguirre, a former SEC official who was fired years ago after he tried to interview John Mack in an insider-trading case.

In early April, in an attempt to learn exactly how much Mack and Karches made on the TALF deals, Sen. Chuck Grassley of Iowa wrote a letter to Waterfall asking 21 detailed questions about the transactions. In addition, Sen. Sanders has personally asked Fed chief Bernanke to provide more complete information on the TALF loans given not only to Christy Mack but to gazillionaires like former Miami Dolphins owner H. Wayne Huizenga and hedge-fund shark John Paulson. But Bernanke bluntly refused to provide the information — and the Fed has similarly stonewalled other oversight agencies, including the General Accounting Office and TARP's special inspector general.

Christy Mack and Susan Karches did not respond to requests for comments for this story. But even without more information about the loans they got from the Fed, we know that TALF wasn't the only risk-free money being handed over to Wall Street. During the financial crisis, the Fed routinely made billions of dollars in "emergency" loans to big banks at near-zero interest. Many of the banks then turned around and used the money to buy Treasury bonds at higher interest rates — essentially loaning the money back to the government at an inflated rate. "People talk about how these were loans that were paid back," says a congressional aide who has studied the transactions. "But when the state is lending money at zero percent and the banks are turning around and lending that money back to the state at three percent, how is that different from just handing rich people money?"

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It was Glenn Beck's turn to host new Fox News Analyst Sarah Palin yesterday. It was actually an incredibly boring interview, since Beck mostly seemed interested in whether Palin hung on his every word or not and bought into his theory that Obama is a radical black Marxist bent on destroying America. She did, of course.

It featured all of Beck's tired schticks, including his claim that Republicans like George W. Bush and John McCain are actually "progressives":

Beck: It killed me to vote for John McCain. And I voted for John McCain because of you. Um, John McCain is a progressive. John McCain -- he's an honorable man.

Palin: He is an honorable man.

Beck: He is an honorable man. And that goes a long way -- there's, I mean, that's a rare island to find. He's an honorable man. But he's also a progressive.

He's big government, he was for the bank bailouts, he was for the uh, uhm, health care. He's for all of it. He's for all of it.

Palin played along, pointing out: "Look what he's doing now!" and generally suggesting that those naughty wayward conservatives had gotten the gospel of Glenn and were back on the right track.

Beck seems utterly unaware that, in fact, Palin was for the bank bailouts too.

As you can see from the additional footage we included in the above video, Palin vocally supported the bailouts in her vice-presidential debate with Joe Biden, praising McCain's supposed work in trying to get the bailout package passed:

John McCain thankfully has been one representing reform. Two years ago, remember, it was John McCain who pushed so hard with the Fannie Mae and Freddie Mac reform measures. He sounded that warning bell.

People in the Senate with him, his colleagues, didn’t want to listen to him and wouldn’t go towards that reform that was needed then. I think that the alarm has been heard, though, and there will be that greater oversight, again thanks to John McCain’s bipartisan efforts that he was so instrumental in bringing folks together over this past week, even suspending his own campaign to make sure he was putting excessive politics aside and putting the country first.

As Dave Weigel noted awhile back, this was just after McCain had "suspended" his campaign to return to Washington to attempt to push the bailout through.

In late September, Palin also defended the bailouts in her interview with Katie Couric:

Palin: That’s why I say, I, like every American I’m speaking with, were ill about this position that we have been put in where it is the tax payers looking to bail out.

But ultimately, what the bailout does is help those who are concerned about the health care reform that is needed to help shore up the economy– Helping the — Oh, it’s got to be about job creation too. Shoring up our economy and putting it back on the right track. So health care reform and reducing taxes and reining in spending has got to accompany tax reductions and tax relief for Americas. A

And trade we’ve got to see trade as opportunity, not as a competitive scary thing. But 1 in 5 jobs being created in the trade sector today. We’ve got to look at that as more opportunity. All those things under the umbrella of job creation.

This bailout is a part of that.

That is, it's a defense of sorts. Actually, it makes no sense whatever -- it's just a big pot of policy-wonk words thrown together in a way that I think Palin hoped sounded like it made some kinda sense.

The only thing that's really clear from all this is that not only was Palin a full supporter of the bailouts, she was a big fan of health-care reform. In fact, she seems to have believed the bailouts would help reform health care. Eh?

No wonder her followers are similarly awash at sea.

Not to mention her interviewers.