"On the heels of the divisive health care debate comes proposed financial reform. Most Americans understand that the current vicious recession was caused in part by greedy Wall Street companies that trafficked in bad mortgage deals. So now President Obama wants to regulate the financial industry and there are three things the Democrats are trying to pass into law. Number one, big financial companies would have to tell the feds about their investments; number two, a new federal agency would be created to discipline private companies if the feds think they're not acting responsibly; and number three, a $50 billion fund would be set up so the government could liquidate failing financial companies. Talking Points believes new federal laws are needed to punish financial companies that take our money and invest it fraudulently, but we do not want a $50 billion slush fund. President Obama and most Democrats believe the federal government must right most wrongs in the country, while the GOP wants less of that, allowing the private sector to sort things out. Thus financial reform is the new health care. Let the battle begin."

Fox News analyst Karl Rove, not surprisingly, placed blame for the financial crisis squarely on Democrats. "For four years," Rove claimed, "Democrats blocked the Bush administration's effort to regulate Fannie Mae and Freddie Mac. It was blocked by every Democrat, including the newly-elected Senator from Illinois, Barack Obama. Fannie and Freddie were the accelerants that brought down a lot of firms." The Factor asked Rove, "What's wrong with having the big federal eye on these people so it doesn't happen again?" "The big problem embedded in this bill," Rove replied, "is the $50 billion bailout fund. If you have a $50 billion bailout as a backstop, the big financial firms on Wall Street will have an unfair advantage. There will be this incestuous relationship between government and Wall Street that is not healthy for the country."

At this week's nuclear summit in Washington, President Obama said this: "Whether we like it or not, we remain a dominant military superpower." The Factor asked Washington Post columnist Sally Quinn about the phrase "whether we like it or not," which was harshly criticized by many conservatives. "I read this quote three times," Quinn said. "I think he's trying to say that nobody wants to have to be a superpower and the leader in a nuclear world, but we have to be. President Obama absolutely resonates power right now." Liberal radio talk show host Nancy Skinner praised President Obama's style and substance. "He is exerting leadership on a level that is working. President Bush talked tough, but Obama is strategically cooperating with the world community to avoid major military incursions." But The Factor questioned whether the President actually relishes America's power: "I want to be a superpower, I like being the big dog, but I don't think President Obama feels comfortable heading the most powerful nation on earth. He's a liberal guy and liberals like the underdog."

Attorney General Eric Holder, speaking in front of the Senate Judiciary Committee, defended government prosecutors who previously worked for suspected terrorists. Political strategist Dick Morris entered the No Spin Zone and passionately disagreed with Holder's position. "If you're one of the very few lawyers," Morris said, "who went out of their way to represent one of the 250 guys in Guantanamo, you had to want to do that. I believe those people shouldn't be prosecuting terrorists because they can't be trusted." Morris, a former Democrat who worked for Bill Clinton, described his current political stance. "I'm an extinct species, Bill. I used to be a conservative Democrat, but we don't exist anymore. You're either a liberal Obama Democrat or a Republican, so I'm a Republican."

The Factor asked author Kitty Kelley why her tell-all biography on Oprah Winfrey includes so many salacious allegations. "It's part of her life story," Kelley said. "If you're referring to her affair with John Tesh, that was a very big thing back in the 70's when there was a lot of racial tension. By the end of this book, this is an inspirational story." But The Factor scolded Kelley for focusing on the negative: "I admire Oprah Winfrey because I think she's the most powerful woman in the world and she comes from poverty. It diminishes her to get into these little things that make her look bad." The Factor also challenged the veracity of a specific passage: "In the book you say I called Oprah Winfrey and complained that she was being too left-wing in her presentation. I never made that call, we never talked." Kelley's defense: "I got that story from two sources within your publishing house."

A veterans' organization has created a TV ad urging action on "global warming." The Factor invited Dennis Miller to give a rebuttal. "Anybody who puts themselves at risk for me and my family," Miller opined, "can say pretty much anything they want. While I don't believe in 'global warming,' I believe in the American military completely. Certainly they can say whatever they want." Miller couldn't resist taking a shot at NBC's Norah O'Donnell, who implied that comments about President Obama's basketball prowess are racist. "That is a stretch akin to Michael Moore in a pair of ski pants. Liberals like Norah O'Donnell see black and white through every aspect of their daily life, except of course in the primal battle between good and evil. That's where things get a little gray and murky."

FNC anchor Jane Skinner scrutinized an Internet video featuring actress Megyn Fox assailing school budget cuts in California. "I think the people who did this ad," Skinner said, "are putting their time and their kids and their money to good use. They're trying to fight these budget cuts and this makes the folks who are picketing outside the State House look kind of pedestrian." The Factor invited Megyn Fox to enter the No Spin Zone and discuss school funding: "I would like to see Ms. Fox come on a program like this. It's easy to stick up for the kids, but California can't pay its debts. They don't have any money, Megyn, so where are they going to get it?"

Wednesday's Patriots: The folks at the New York City Police Museum, which honors the 800 city cops killed in the line of duty. And the Pinhead: Pamela Anderson, who owes a half-million dollars in back taxes to California.

Justin McLuckie, Lawrence, KS: "Atheist Richard Dawkins saying the Pope should be arrested for crimes against humanity is despicable. He's a hater!"

Susan Litvak, Tucson, AZ: "O'Reilly, you have stated that the Catholic Church was derelict in its duty to report sexual abuse by priests. Richard Dawkins simply wants justice."

Jay Trawets, Fort Myers, FL: "Senator Coburn is right. There have been some vicious things said about President Obama on Fox News and that's not good for the country."

Pam Hopkins, Vienna, VA: "Coburn admonished Fox News for distorting the facts by distorting the facts himself."