WASHINGTON - Outspent and under siege in a hostile political climate, Congressional Republicans scrambled this weekend to save embattled incumbents in an effort to hold down expected Democratic gains in the House and Senate on Tuesday.

With the election imminent, Senate Republicans threw their remaining resources into protecting endangered lawmakers in Georgia, Minnesota, Mississippi, New Hampshire, North Carolina and Oregon, while House Republicans were forced to put money into what should be secure Republican territory in Idaho, Indiana, Kentucky, Virginia and Wyoming.

Sensing an extraordinary opportunity to expand their numbers in both the House and Senate, Democrats were spending freely on television advertising across the campaign map. Senate Democrats were active in nine states where Republicans are running for re-election; House Democrats, meanwhile, bought advertising in 63 districts, twice the number of districts where Republicans bought advertisements and helped candidates.

\"We are deep in the red areas,\" Representative Chris Van Hollen of Maryland, chairman of the Democratic Congressional Campaign Committee, said on Sunday. \"We are competing now in districts George Bush carried by large margins in 2004.\"

What seems especially striking about this year\'s Congressional races is that Democrats appear to have solidified their gains from the 2006 midterm elections and are pushing beyond their traditional urban turf into what once were safe Republican strongholds, creating a struggle for the suburbs.

Trying to capitalize on economic uncertainty, House Democrats are taking aim at vacant seats and incumbents in suburban and even more outlying areas - the traditional foundation of Republican power in the House. With many of the most contested House races occurring in Republican-held districts that extend beyond cities in states like Florida, Michigan, Minnesota and Ohio, Democrats said expected victories would give them suburban dominance.

The same is true for Senate Democratic candidates, who are seeking to nail down swing counties outside urban centers and move the party toward a 60-vote majority. That majority could overcome a filibuster, if party leaders could hold the votes together.

Among open House seats Democrats say they have a good chance of capturing include those being vacated by Representatives Ralph Regula and Deborah Pryce in Ohio, Jim Ramstad in Minnesota, Jerry Weller in Illinois and Rick Renzi in Arizona.

On the list of incumbents Democrats believe they can defeat are Representatives John R. Kuhl Jr. in New York, Joe Knollenberg in Michigan, Tom Feeney and Ric Keller in Florida, Don Young in Alaska, Robin Hayes in North Carolina and Bill Sali in Idaho.

Democrats say they have been able to peel away suburbanites by emphasizing Republican culpability for the economic decline, a point they say House Republicans helped make themselves by initially balking at the $700 billion bailout and sending the markets into a tailspin that depleted retirement and college savings accounts.

\"Suburban voters are angry that their quality of life and standard of living is under attack,\" said Representative Rahm Emanuel of Illinois, chairman of the House Democratic Caucus and a leading advocate of Democrats trying to broaden their appeal in the suburbs.

The partisan spending gap was stark. As of last week, Senate Democrats had spent more than $67 million against Republican candidates, compared with $33.7 million in advertising by Republicans. In the House, the Democratic Congressional Campaign Committee had spent $73 million, compared with just over $20 million for the National Republican Congressional Committee, according to campaign finance reports.

Most of the House Republican money was spent on behalf of incumbents or in districts where a Republican is retiring, emphasizing how much the party was playing defense. By contrast, House Democrats spent most of their money in the last month going after Republican seats in Colorado, Nebraska, Washington, West Virginia and elsewhere. On Sunday, Democrats prepared one last radio advertisement to begin running Monday in an effort to claim the seat of Thomas M. Reynolds, a Republican retiring from his upstate New York district near Buffalo.

\"That kind of says it all,\" said Representative Thomas M. Davis III, a retiring Virginia Republican whose own suburban seat is likely to go Democratic on Tuesday. Mr. Davis said Republicans simply faced too many disadvantages heading into Election Day, including a higher number of retirements in the House and Senate, an unpopular president and an economic collapse.

\"You like to see a fair fight,\" said Mr. Davis, a former chairman of the Republican Congressional campaign committee, \"but basically we are playing basketball in our street shoes and long pants, and the Democrats have on their uniforms and Chuck Taylors.\"

Neither of the national Senate campaign arms was advertising in Colorado, New Mexico or Virginia, indicating that Republicans were virtually ceding those states, where members of their party are retiring, to the Democrats. Senate Democrats were also optimistic about the prospects of unseating Senator John E. Sununu in New Hampshire and Senator Ted Stevens in Alaska, where Mr. Stevens campaigned despite being newly convicted on felony ethics charges.

Democrats said they saw themselves with the advantage in Minnesota, North Carolina and Oregon, giving them a reasonable chance at claiming eight seats and enlarging their Senate majority to 59 if they hold their current seats.

If Democrats swept those races, it could leave the potential 60th vote to break filibusters resting on the outcome in Georgia, Mississippi or Kentucky, where Senator Mitch McConnell, the Republican leader, is in a competitive race with Bruce Lunsford, a businessman. Polls show Democrats trailing but within striking distance in all three races, with the final results potentially hinging on the presidential race and turnout among Democratically inclined black voters.

In Mississippi, which has not sent a freshman Democrat to the Senate since John C. Stennis was elected in 1947, Senator Roger Wicker, a Republican appointed last year to fill the seat left vacant by Trent Lott\'s resignation, is in a tight race with former Gov. Ronnie Musgrove, a Democrat.

\"We feel we have a lot of momentum,\" said Senator Charles E. Schumer of New York, chairman of the Democratic Senatorial Campaign Committee, \"but we are ever mindful that getting to 60 is an extremely difficult thing to do because we are in so many red states.\"

Republicans privately acknowledged that there was little hope for some of their candidates, including Senator Elizabeth Dole of North Carolina. But Republicans have not given up on the idea of unseating Senator Mary L. Landrieu in Louisiana, a state where Senator John McCain was running well against Senator Barack Obama in the presidential race. A victory over Ms. Landrieu by John Kennedy, the state treasurer, would be a significant moral victory for Republicans, and they pointed to internal polls that show a close race.

In Louisiana, North Carolina and Oregon, Republicans were trying to energize voters with the threat of Democratic dominance in Washington, running advertisements that warn voters about \"complete liberal control of government.\"

\"We agree with Chuck Schumer that this is a tectonic election,\" said Rebecca Fisher, spokeswoman for the National Republican Senatorial Committee. \"And if Democrats get their way, this country will shift so far left it will take generations to get back on track.\"

Both parties were focusing substantial final energies on the Senate race in Minnesota, where Senator Norm Coleman, the Republican, was in a heated clash with his Democratic challenger, Al Franken, a former comedian and radio talk show host.

The race remained close as Mr. Coleman was named in a last-minute lawsuit in Texas alleging that a businessman had funneled $75,000 to him through his wife\'s business. Mr. Coleman, who has filed an unfair campaign practices complaint accusing Mr. Franken of broadcasting falsehoods in his advertisements, denied any impropriety, but the lawsuit led to a flurry of news accounts only days before the election.

In Kentucky, Mr. McConnell enlisted hundreds of volunteers to knock on doors and to make phone calls in the remaining hours. He was to embark on a fly-around of the state\'s cities Monday in his effort to repel the serious challenge from Mr. Lunsford, who brought in one of Kentucky\'s favorite daughters, the actress Ashley Judd, to campaign on his behalf in the closing days.

Strategists for both parties said it seemed increasingly possible that the full Senate picture might not even be settled Tuesday, given that a third-party candidate could cause both Senator Saxby Chambliss, Republican of Georgia, and his Democratic opponent, Jim Martin, to fall short of 50 percent of the vote, forcing a runoff on Dec. 2.

Party operatives also warned that Tuesday was likely to produce some surprises, considering the strong resentment toward Congress that has been reflected in polls for months. They predicted upsets of some House incumbents not thought to be in trouble.

Republicans said they believed some top Democratic targets, like Representative Dave Reichert of Washington and Christopher Shays of Connecticut, would be able to hang on because they, and others, had run strong campaigns built on their individual images and records.

\"Republican candidates who have established their own personal brand, and have framed their respective races around creating a clear choice, will succeed on Election Day despite the turbulent political environment,\" said Ken Spain, a spokesman for the National Republican Congressional Committee.

One problem for House Republicans was that freshmen lawmakers who gave Democrats control of the House after the 2006 elections were faring much better than party leaders had expected. Some, like Representative Kirsten Gillibrand, who represents the Hudson Valley in New York, became prime Republican targets virtually from the moment they were elected but are now favored to win second terms after raising formidable sums of money and cultivating moderate voting records that insulated them from attack.

Representative John Yarmuth of Kentucky, the president of the Democrats\' 2006 freshman class, said only two of its members were in serious trouble: Representative Nick Lampson of Texas, who represents a heavily Republican district south of Houston, and Representative Tim Mahoney of Florida, who has been entangled in a scandal over extramarital affairs.

Mr. Yarmuth credited House Democratic leaders with pursuing an agenda that gave the freshmen substantial achievements to promote back home, especially a generous new education benefit for veterans that counterbalanced the Democrats\' opposition to the war in Iraq

\"I think that was a trademark of this last Congress that created a moderate image that we were pro-military, pro-troops,\" Mr. Yarmuth said.

nytimes.com

Every vote for a nonincumbent Presidential candidate is in some sense a risk, given the power and complications of the job. But in both his lack of experience and the contradictions between his rhetoric and his agenda, Barack Obama presents a particular leap of hope. It is a sign of how fed up Americans are with Republicans that millions are ready to take that leap even in dangerous times.

To his supporters, such as Colin Powell, the first-term Senator has the chance to be "transformational," the kind of gauzy concept that testifies to Mr. Obama's unusual appeal. His candidacy is certainly historic, and that isn't simply a reference to his Kenyan father and American mother. One secret to Mr. Obama's success is how little his campaign has been marked by race, at least not by the traditional politics of racial grievance. He has run instead on a rhetorical theme of national unity, a shrewd appeal to voters weary of the polarizing debate over Iraq and the Bush Presidency.

Mr. Obama has also understood the political moment better than his opponents in either party. In the primaries, he used his inexperience to advantage by offering himself as a liberal alternative to what seemed like an inevitable, and dispiriting, Clinton replay. He then turned around in the general election to project sober reassurance amid the financial crisis, which was the moment when his poll numbers began to climb above the margin of error against John McCain. His coolness reflects what seems to be a first-class temperament. And while community organizing may not be much of a credential for the Presidency, Mr. Obama's ability to organize a campaign speaks well of his potential to manage a government.

None of this changes the fact that voters still know remarkably little about a man who is less than four years out of the Illinois state Senate. While he has already written two autobiographies, there are significant gaps in Mr. Obama's political resume. The nature of his relationship with onetime friend and political contributor Tony Rezko, a convicted felon, or with radicals Bill Ayers and Jeremiah Wright, not to mention Acorn, remains ambiguous or contradictory.

They were all early supporters or mentors, yet during this campaign Mr. Obama has eventually disavowed each one. This is perhaps testimony to a ruthless pragmatism, or maybe opportunism, but what do those relationships say about what he really believes? He is fortunate the media have been so incurious about them -- as opposed, say, to Sarah Palin's Wasilla church or Joe Wurzelbacher's plumbing business.

More importantly, it remains unclear how Mr. Obama intends to govern. As a political candidate, he has presented himself as a consensus-oriented bridge-builder. But for all his talk about reaching across the aisle, we can think of no major issue where he has disagreed with his party's dominant interest groups or broken with liberal orthodoxy. Not one. The main example he cites -- "ethics reform" -- is the kind of trivial Beltway compromise that changes nothing about the way Washington works.

Unlike Newark Democratic Mayor Cory Booker, Mr. Obama opposes school vouchers and would water down the accountability provisions of the No Child Left Behind Act. Unlike Bill Clinton, Mr. Obama is ambivalent at best about free trade. His promise to abrogate the North American Free Trade Agreement, if Canada and Mexico refuse to bargain, is a more breathtaking case of U.S. "unilateralism" than anything Mr. Bush has done. Nafta is a 15-year old pact enacted by a Democratic Congress and President. The Kyoto Protocol had never even been submitted to the Senate when Mr. Bush refused to support it.

If he is elected, Mr. Obama would immediately face the same kind of large, liberal Democratic majority on Capitol Hill that did so much to ruin Jimmy Carter and the first two years of the Clinton Presidency. Is there anything its liberal barons want that he'd oppose? He hasn't said so. On the contrary, Mr. Obama's voting record and agenda suggest that the "transformation" he may have in mind is a return to the pre-Reagan era of government expansion and liberal ascendancy.

Amid a recession, with the mortgage market already nationalized and the banking industry partly so, the next President needs to draw some lines against further politicization of our economy. Perhaps Mr. Obama will surprise by appointing Paul Volcker as his Treasury Secretary, or postponing his tax increases with the economy in distress. But those are further leaps of hope with little evidence of pragmatism to back them up.

On national security, Mr. Obama is an even greater man of mystery. Perhaps once in office he will take the course of prudent realism. He can certainly sound hawkish when he wants to, advocating unilateral military strikes inside Pakistan and promising the kind of open-ended commitment to the Afghan conflict that he claims we can't afford or sustain in Iraq. Yet he ran irresponsibly against the surge in Iraq and now has his lucky stars to thank that Mr. McCain prevailed in that debate, so Mr. Obama would inherit a far more stable Middle East. His belief that diplomacy can stop Tehran's nuclear ambitions is also naive, and we suspect would be shown to be so early in his Administration with an Iranian nuclear declaration, if not a test.

As Joe Biden recently said, an Obama Presidency would invite challenges from enemies who would tread more cautiously against a President McCain. Perhaps Mr. Obama will evolve into a Truman, or perhaps he'll prove merely to be another Jimmy Carter. Unlike Mr. McCain, he'll be making it up as he goes.

Perhaps this is the kind of leadership the American people want after the Presidential certitudes of the Bush years. Americans certainly are eager for fresh start, and it is typical of periods of economic panic that they may even be willing to reach for the kind of alluring but untested appeal that so marks Mr. Obama. Sometimes these gambles pay off, and sometimes they don't.

online.wsj.com

The Company suffered significant losses in the third quarter of 2008 from a dramatic spike in its corn costs, reflecting in part costs attributable to its corn procurement and hedging arrangements, and historically unfavorable margins. Beginning in the third quarter, worsening capital market conditions and a tightening of trade credit resulted in severe constraints on the Company's liquidity position.

The main culprit was its badly managed corn hedging followed by the inability to raise capital to bail itself out.

The current financial climate makes one forget how completely different the world was 6 short months ago. Commodity prices were zooming up. Oil was on its way to $150 with most predicting $200 by now. If the predictions of the spring and early summer had been accurate, VeraSun would have been generating huge profits in the 3rd quarter rather than being pushed into bankruptcy. The lesson here is that thin margin businesses are one bad economic turn away from disaster.

Chapter 11 means the company will stay in business and restructure its debt to get back on its feet financially. Common share holders will probably get squat. My site's Opportunities Portfolio started October 2008 with a 2% position in VSE which is now effectively zip.

Longer term this should help VeraSun as a company to structure itself for success in a tight margin environment. I will be watching to see where the company goes from here.

seekingalpha.com