I cant imagine. That image is really shocking -- this is 2008, right?
A couple of points. First, didn't the KKK originate in Indiana? I remember hearing or reading something like that and was astounded. It just didn't seem like the type of place that would engender such a group -- so much for first impressions. Anyway, if that's so then the society that apparently fed and permitted its formation and growth clearly hasn't progressed at all.
I have to applaud Obama for not giving these people undue recognition. If anything, that conceivably could fuel a situation that would focus attention away from his campaign and the positive messages that he's trying to put forth, and give some people concern that it could interfere with his potential presidency.
He has the opportunity, if elected (and I expect this to happen) to demonstrate his competence, to show these people that a highly intelligent, articulate, sincere individual is capable of being a good president and that race has no role whatsoever. Those who have held the most negative views undoubtedly will continue to do so, unfortunately, but many who simply might have reservations will, I believe, have the opportunity to change their views.