"The parallels between President Obama and Governor Arnold Schwarzenegger are spooky - both men are charismatic and used their personalities to get elected. But for Governor Schwarzenegger in California, it has been a disaster. His approval rating now stands at 33%, the state is bankrupt, can't pay its bills and is issuing IOUs. If President Obama does not learn from this, the USA could go bankrupt as well, but the Obama administration does not seem to be learning. The feds are spending almost $2 trillion more than they are taking in; the national debt is almost $11.5 trillion, and if the feds get into managing health care, that number is going to explode. If President Obama continues the massive spending, every American is going to suffer. But it looks to me like many Democrats in Congress don't care. The liberal philosophy is one of big spending; they believe government should provide for everybody. Nice thought, only it's impossible, and by trying to create a 'nanny state' the economic system in America could very well implode."

Political observers are puzzled over Sarah Palin's decision to step down as governor of Alaska. The Factor asked radio talk show host John Ziegler, who has interviewed Palin extensively, why she jumped ship. "This decision has been in the works for a long time," Ziegler replied. "But the media has not provided the proper context as to how difficult her job has become, how much money it has cost her and the state, and what it has put her family through to endure unprecedented attacks. This is not a cowardly decision, it's a courageous decision." But The Factor suggested that Palin could have found a way to persevere. "She has been smeared, but I have been smeared every single day for the past thirteen years and I did not walk away because I feel what I do here is important. So I would ask why she didn't tough it out."

The Factor pursued the Palin story with political strategist Karl Rove, who questioned the wisdom of her resignation. "I am a fan of Sarah Palin," Rove began, "but I am perplexed. If she plans on running for president, this was not a good move to make. All the things she wants to get away from - the press peering into her life and the ugly things said about her family - are not going away. She needs time under the radar to educate herself about the issues." The Factor put forth a scenario under which Palin's move could pay off: "Let's say she gives lectures and makes millions doing that. In the meantime, she goes around the country and does pro bono work for Republican candidates, thereby gaining good will in the party. She builds up a war chest and will get tons more visibility than she would as governor of Alaska."

As mentioned in the Talking Points Memo, President Obama's big spending and ambitious plans could lead to financial peril. The Factor interrogated Fox News analysts Mary Katharine Ham and Juan Williams about the president's profligacy. "The polls are saying that when the folks have problems with the Obama administration," Williams reported, "it's about spending and the size of the deficit and the burdens on future generations." Ham was even tougher on the president: "People are confused about which trillion dollar package we're on now, and they're getting fed up. Another parallel with California is that a couple of years ago California passed a 'global warming' act and they are raising fees on electricity producers who will pass the fees to consumers." The Factor warned that big spending could easily backfire: "If they try another giant stimulus package, I think the Obama administration is going to hurt itself dramatically."

Michael Jackson reportedly spent about $500 million over the years, and at the time of his death was hundreds of millions in debt. The Factor was joined by attorney Jerry Reisman, who was familiar with Jackson's spending habits. "He had no fiscal control," Reisman said, "and he had no one who was watching him. There were people who used him, abused him, and took money from him. He was a child and he spent a lot of money on toys." Attorney Alexis Martin Neely added that Jackson's spending was indicative of his mental state. "This was a man who was in a tremendous amount of pain, he was crying out for help and no one was giving it. Death was the only way out for him, and now we should realize that Michael Jackson was not a role model. He needs to be held up as an example of what we should not do to our kids."

The Factor asked Culture Warriors Gretchen Carlson and Juliet Huddy, who sat in for Margaret Hoover, about the coverage of Michael Jackson. "Our core viewers on Fox and Friends are tired of this story," Carlson said. "It is a disservice to the American public to cover this 24/7. There is talk about reforming health care, but Americans do not know that full story." Huddy complained that some media outlets are treating Jackson as a near-saint. "They are glorifying the man, who was a freak. You expect the MTVs and the VH1s to have odes to Michael Jackson, but all the heavy hitters are covering this. The day after Jackson died, 60% of the news coverage was about him and Iran got 7%." The Factor added this personal note: "I watched the coverage while in Switzerland and got frustrated pretty quickly. Many media people apparently think Mr. Jackson was a hero because he could sing and dance."

Former comic and failed radio host Al Franken is now the junior Senator from Minnesota. The Factor's check: "Franken is a blatantly dishonest individual, a far-left zealot who is not qualified to hold any office, a man who trafficked in hate on his failed Air America radio program. With people like Franken on Capitol Hill, this country is in deep trouble." The Factor added a distinctly non-neutral check about Switzerland: "I drove hundreds of miles there last week, and I did not see any litter anywhere. Switzerland is the cleanest country in the world. Health care is mandatory for the Swiss, but the government does not pay - companies pay for their workers, although the poor receive subsidies. Retirement is also funded by workers, not by the government. The country works and our leaders should be studying it."

Monday's Patriot: Lara Monaco, wife of Factor producer Rob Monaco, who gave birth to twin boys, bringing the family total to four sons. And the Pinhead: Israeli model Bar Refaeli, who helped publicize an art exhibit by writhing around naked on the Internet.

Carolyn Castro, San Juan, Puerto Rico: "Are you okay, Bill? The comparison of Sanford to Edwards does not measure up. Edwards is a private citizen who did not violate any oath of office."

Gerard Prendergast, Hong Kong: "Mr. O, how do you know the Iranian election was flawed? Some evidence from the no spin zone, please."

Dave Bennett, Lisle, IL: "After 36 hours, Fox News was still airing stories about Michael Jackson. I turned it off and read Bold Fresh."