Politico: A partial transcript:
LETTERMAN: Let me ask you a question here, have you ever actually put lipstick on pig?
OBAMA: The answer would be no. But I think it might be fun to try .... This is sorta silly season in politics. Not that there's a non silly season but it gets sillier . It's a common expression in at least illinois. I don't know about in New York City. I don't know what you put lipstick on here. (Silly cringe from Letterman. Laughter from audience) In Illinois, The expression connotes the idea that if you have a bad idea -- in this case I was talking about McCain's economic plans -- calling them 'change,' calling them something different doesn't make them better. Hence lipstick on a pig is still a pig.
He then added that Palin represented the lipstick in the picture, with McCain's policies as the pig.
That's so perfect. Ms. Mooseburger is dressing up McCain's losing policies. Obama's got some other zingers on Letterman.