I'm sorry, I simply don't think either the video or the context supports the claim that Obama intended to call Sarah Palin a pig, no matter what the audience supposedly thought or what the notoriously thin-skinned and ridiculous Jane Swift says. Yes, Palin wears lipstick and compares herself to a pitbull wearing lipstick but that's the only connection. To quibble about the phrase "putting lipstick on a pig" is to put conservatives in the same category as illiterate PC liberals worried about the word "niggardly."
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