Do the Middle East Peace Talks Have a Future?

Just three months after President Obama took credit for renewing direct talks between Israel and the Palestinians, they're not talking at all. Palestinians demanded a freeze on Israeli settlements in East Jerusalem, but even America's offer of billions in fighter jets could not get Israel to agree. Hillary Clinton says it's time to talk about "core issues," and George Mitchell is back in the region, but US policy is not entirely clear. Was pushing for the settlement freeze a blunder? Has Israeli intransigence further isolated it from the rest of the world?