It looks like Hillary is definitely coming on board as Obama's Secretary of State. I think it's a dumb move on his part, although I'm not personally disappointed because I regard Hillary as somewhat hawkish at least in comparison to other Democrats.
It occurs to me that Hillary could represent something of a hedge strategy for Obama if, as some speculate, he is truly worried about a challenge from her in 2012. Obama may figure that if disaster strikes during his first term, it will be on account of a foreign policy crisis. If so, then putting Hillary in charge of Foggy Bottom would at least ensure that she couldn't capitalize on such a misfortune.
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