Some can and it isn't.
I saw a mentalist's act at the first The Amazing Meeting. His act was much more impressive than anything I've seen of John Edward's and the mentalist didn't claim any paranomal powers.
-- Roger
Every time I talk about mentalism, I get real close to that line of telling people how tricks are done. It isn't really reading people. Telling the audience that is misdirection so you won't be looking for how the trick is really done.