Just bumped into Leon Panetta, noted budget hawk and former Clinton chief of staff. He urged Barack Obama to focus more on cutting the budget deficit. "He has got to take the hit in his first term," Panetta says. That means higher taxes and bigger spending cuts. (Obama so far has taken an "investment first, deficit second" approach.) Panetta says he and other former Clinton economic advisers are especially concerned that the issue of the budget deficit, which he believes could be $600 billion or more next year, has gotten almost zippo attention at the convention so far. Panetta also thinks Obama would be smart to go after entitlement reform right away.