March 2009 - Posts
From NBC’s Chuck Todd (ABOARD AIR FORCE ONE) and Domenico Montanaro Robert Gibbs started with a readout from Secretary of State Clinton 's day at The Hague, the news being that U.S. Special Envoy Richard Holbrooke and an Iranian foreign minister. The administration believes the presence of Iran at this conference is a positive sign.
The president also spoke from Air Force One with British Prime Minister Gordon Brown for yet another G-20 consult phone call. He also spoke by phone with Canadian PM Stephen Harper in last 48 hours to talk both autos and G-20
Questions to Gibbs were on Russia, China, G-20 and NATO meeting expectations. He gave a few concrete measuring sticks. Gibbs said it was news when he claimed that the collective G-20 stimulus for the economy will represent 1.8% of the collective GDP of the G-20.
CONTINUED >>
From NBC's Domenico Montanaro Albany Times-Union has a funny story ahead of today's special election in NY-20 about voters in the Upstate town of Schenectedy, N.Y., who have been trying to vote but aren't allowed to.
The NY-20 cuts through part of the town, and voters have been pulling up to traditional polling places by the carload hoping to vote. They've been leaving confused after they're told they're not allowed to because they don't live in the district.
Who can blame some of them -- what with the $2 million worth of ads both candidates and parties have run that have blanketed the region? And they are used to Republican Jim Tedisco 's name being on the ballot, as he's represented them in the state assembly for three decades.
Ironically, one person who'd be part of the turned-away voters would be Tedisco himself.
CONTINUED >>
From NBC’s Domenico Montanaro The polls in the 2008 presidential campaign were largely spot on -- with one glaring problem: the New Hampshire Democratic primary. A panel of polling specialists released a report yesterday that tried to figure out just what went wrong.As Boston.com reports , it “didn't come to any definitive conclusions, but said that the polling probably ended too early to take into account late movement among voters. Also, Clinton supporters were harder to reach and some pollsters did not try more than twice, skewing the sample toward pro-Obama voters, said the committee organized by the American Association for Public Opinion Research. The panel discounted other possible explanations, such as the so-called ‘Bradley effect,’ in which some white voters say they will support a black candidate, but don't vote that way in the privacy of the polling booth.”
CONTINUED >>
From NBC's Mark Murray Air Force One has just landed on British soil.
From NBC's Mike Viqueira
House and Senate Republicans will join in a grand show of budget unity tomorrow morning, when they meet in a rare joint confab in the House chamber.
It will happen before the House is open for business, and the chamber will be dark (no pictures or sound). But the idea is for Republican members from both bodies to muster in historic Statuary Hall at 8:45 am ET, where we, your humble narrators, will be afforded the opportunity to see them on camera, then chronicle the moment as they march en masse past those same cameras and into the House chamber.
After the session, they plan to emerge and hold a rally on the east front steps of the House. Time TBA, but probably around 10:00 am ET.
The purpose is to talk about budget. At that point, Rep. Paul Ryan will have his House GOP alternative ready to go, and the presumption is that they will talk about that as well as what Republicans in the Senate have in mind in terms of a strategy to fight back against the Obama administration/Democratic plan.
Meanwhile, the formal public unveiling of the House GOP budget likely happens at 10:30 am ET in the House studio, with Ryan presiding as the ranking Republican on the House Budget Committee.
From NBC's Domenico Montanaro
The president will have a lot on his plate during the trip, but it will provide a measure of his influence, particularly in reference to the world economy, Afghanistan, and the Muslim world.
CONTINUE READING FOR FULL STORY.
From NBC's Andrea Mitchell
BRUSSELS -- We reported that Moscow sent a message to Washington yesterday that Russia President
Medvedev is interested in a broad agreement with the
Obama administration on the major disputed issues between Russia and the U.S. -- including missile defense and Iran.
Because of this signal from Moscow, the White House has rushed a diplomat here on no notice to try to hammer out some basic principles for further discussion that would be announced in London.
*** UPDATE ***
From NBC's Pete Williams
Ending a marathon legal battle with a fizzle, the U.S. Supreme Court today tossed out a challenge from cigarette-maker Philip Morris to an Oregon jury's $80 million verdict in a lawsuit filed by a smoker's window.
Today's action sets no legal precedent. The court, after hearing the case in early December, decided there was no issue for the justices to resolve. This kind of disposition of a case happens a few times every term -- after agreeing to hear a case and delving into its specifics, the court decides it shouldn't have taken it after all. In the wonderfully passive language of the Supreme Court, the case is "dismissed as improvidently granted."
The case involved an Oregon man, Jesse Williams, who died of lung cancer after smoking two packs of Marlboros a day his entire adult life. His wife sued Philip Morris, claiming the company lied about the dangers of smoking. Her lawyers urged the jury to hit the company hard -- not just for him but on behalf of other smokers, too. Result: a verdict of over $800,000 in actual damages and another amount -- 100 times higher -- to punish the company.
The court today also ruled unanimously that when Congress in 1993 issued a resolution apologizing for the US government's overthrow of the king of Hawaii in 1893, it did not create any legal right to native lands.
We'll get decisions again on Wednesday.
From NBC’s Ken Strickland Ted Kennedy is presiding over a hearing for Kansas Gov. Kathleen Sebelius ' nomination to be Secretary of Health and Human Services .
Kennedy is the Chairman of the Health, Education, Labor, and Pension Committee. (This is not an actual "confirmation hearing." It's more of a courtesy hearing because the Finance Committee has official jurisdiction over HHS.)
According to Kennedy's remarks, as prepared for delivery he said, "Few debates in Congress touch our lives as profoundly and personally as health care. Over the past 10 months, I've seen our health care system up close. I've benefited from the best of medicine. But we have too many uninsured Americans. We have sickness care and not health care. We have too much paperwork and bureaucracy. Costs are out of control. But today we have an opportunity like never before to reform health care."
Kennedy is recovering from a brain tumor and has spent much of the past several weeks recuperating and resting in Florida.
He returned to Washington last week and is expected to remain in D.C. for an unspecified length of time to work on several health care related issues, including Sebelius' hearing today.
From Chuck Todd, Mark Murray, and Domenico Montanaro
***
New York state of mind: Ready or not, the campaign season -- for 2009, 2010, and 2012 -- essentially begins today with the first competitive race of Obama’s presidency:
the special congressional election in upstate New York (NY-20) between Democrat Scott Murphy and Republican Jim Tedisco. As we’ve said before, this contest has it all. It has become a battle over the economic stimulus (Murphy supports it, while Tedisco opposes it); in some form or fashion, it has featured national figures (Obama, Michael Steele, Sarah Palin, even Pat Boone); it will be an early test of the GOP’s health in the post-Bush era (if Republicans can’t win this slightly GOP-leaning district, where else can they win?); and it will be an early test of Obama’s coattails (if the Democrats lose, Republicans will see it as a sign of the end of the president’s honeymoon). Oh, and one other thing: The race is about as close as it can get it. Analysts say it’s a toss-up, with a recent
Siena Research Institute poll showing Murphy ahead by four points (47%-43%), after trailing Tedisco by four points in early March (45%-41%) and 12 points in February (46%-34%). Polling places open at 6:00 am ET and close at 9:00 pm ET.
*** A little caution for pundits : Our gut tells us that a dead heat probably slightly favors the Dems, only because their turnout operation is probably better than the GOP’s. Then again, a super low turnout favors the GOP because the most reliable voters in this district skew Republican. But for all of us who will no doubt over-interpret tonight’s results, political analyst Charlie Cook gives some important advice in his CongressDaily column today: “Assuming that the margin in this upstate contest to fill the seat of newly-appointed Democratic Sen. Kirsten Gillibrand is three or four points or less, my advice is to respond ‘that’s nice,’ then yawn, and walk away… What is more important is if there is a uniform direction to several odd-year elections. If, for example, Republicans were to win tonight and knock off Gov. Jon Corzine in New Jersey in November, and pick up the open governor seat in Virginia, then it is fair to say that they will have exorcised the demons of 2006 and 2008.” More Cook: “If Democrats hold NY-20 as well as New Jersey and Virginia, they can enter 2010 knowing that even if the wind isn’t at their backs, there also isn’t a headwind.”
*** A significant day : No doubt we’re all getting a bit numb to bailouts, emergency government action, and major announcements from this new president. But don't let this numbness obscure the fact that yesterday might be one of the five- or ten-most significant moments when the history of the Obama presidency is written in either 2013 or 2017. He didn't just fire any CEO; he fired the head of an American industrial icon. And let's not forget the decision to make the White House the center of auto policy for this country. Some on the left are hitting Obama for not firing more CEOs, while the right is hitting him for looking like a nationalist or a government interventionist. But it is also worth noting the critiques on this auto plan were somewhat muted. The reason: It was a very well-executed rollout. In fact, it's in stark contrast of all the other bailout announcements that have taken place so far. Here’s perhaps why: Every detail of this auto plan seemed to be communicated so well. There's an auto task force (is there one for AIG?); there's an auto czar (is there one for the banks?); there were more strings attached to GM and Chrysler (are there strings for the banks?); and there was the appointment of a disaster recovery czar (have we seen anything like that regarding, say, folks who have seen their 401ks disappear?).
Video: NBC’s Chief White House Correspondent Chuck Todd discusses the political significance of President Obama’s aggressive auto plan. ***
London calling : The big White House news today, of course, is President Obama’s trip to London for the G-20. The president and first lady already departed from Andrews Air Force Base earlier this morning, and they will arrive in London later this this afternoon (ET). And with his departure comes a brand-new
Washington Post/ABC poll showing the president with a 66% approval rating, and a 60% approval rating on the economy. Also before Obama lands in Europe, NBC’s Andrea Mitchell reports that Moscow sent a message to Washington yesterday that President Medvedev is interested in a broad agreement with the Obama administration on the major disputed issues between Russia and the U.S. -- including missile defense and Iran. Medvedev has a
Washington Post op-ed making the same point.
Video: The global economy tops President Obama’s agenda as he heads to the G20 Summit in London, his first trip to Europe as president. NBC’s Savannah Guthrie reports. ***
With friends like these…: Turning to the current budget battle, President Obama met behind closed doors with House Democrats yesterday, and Obama’s visit went pretty well, according to NBC’s Mike Viqueira and other news accounts. But writing in the
New Republic , Jon Chait raises this interesting question: Why have recent Democratic presidents (Carter, Clinton, and now Obama) received less deference from congressional Democrats than GOP presidents have received from congressional Republicans? “George W. Bush came to office having lost the popular vote, with only 50 Republicans in the Senate… [Still,] Bush managed to enact several rounds of tax cuts that substantially exceeded those in his campaign platform, along with two war resolutions, a Medicare prescription drug benefit designed to maximize profits for the health care industry, energy legislation, education reform, and sundry other items.” Meanwhile, “Obama has come into office having won the popular vote by seven percentage points, along with a 79-seat edge in the House, a 17-seat edge in the Senate, and massive public demand for change. But it's already clear he is receiving less, not more, deference from his own party.”
*** Just what the doctor ordered? Besides the work on the budget, the other big news on Capitol Hill today will be HHS nominee Kathleen Sebelius’ appearance before the Senate Health, Education, Labor, and Pension Committee (which is a courtesy hearing because it doesn't approve her nomination; the Senate Finance Committee does). In her opening statement, Sebelius will say that health-care reform must occur this year. “Inaction is not an option. The status quo is unacceptable, and unsustainable.”
*** That’s “special”: Turning back to NY-20… With tonight’s Murphy-Tedisco contest being the first competitive House race of Obama’s presidency, our friends at the Cook Political Report and Rothenberg Political Report take us on a trip down memory lane. The first special congressional election in Bush 41's term was to fill Dan Coat's (R) seat in Indiana, after Dan Quayle became VP and Coats filled his Senate seat. Jill Long (D) won that contest, so the seat flipped. The first special congressional election in Clinton's term was for Mike Espy's seat, but the first competitive one was in Wisconsin, where Peter Barca (D) barely beat Mark Neumann (R) to replace Les Aspin (D) in Congress; Neumann beat Barca in the '94 general. And the first special in Bush 43's term was when Bill Shuster (R) took his dad's seat in Pennsylvania in a surprisingly close race against Scott Conklin (D). The Cook Political Report’s David Wasserman makes this other point about recent special elections: What made Herseth/Diedrich ('04), Schmidt/Hackett ('06), Foster/Oberweis ('08), Childers/Davis ('08) so notable is that these districts were so heavily D or R, and the seat flipped or the race was surprisingly close. By contrast, NY-20 is pretty competitive (registered Republicans outnumber Democrats, but Obama won 51% there in November), and probably won't tell us much about the national climate -- at least not yet.
*** Show me the money : And just to give you an idea how much activity has taken in this special election for the NY-20 congressional seat, ad-tracker Evan Tracey notes that nearly $2 million have been spent on TV ads. Interestingly, Democrats have slightly outspent the Republicans -- $1,053,141 for the Dems ($716,731 by Murphy, $336,410 by DCCC, DNC, SEIU) vs. $924,112 for the Republicans ($485,697 by Tedisco and $567,444 by other GOP entities and groups). It’s striking that the GOP outside groups have outspent Tedisco’s campaign. Also worth pointing out, the DCCC says it has spent nearly $600,000 versus $817,000 for the NRCC, and the DNC has spent some $20,000 versus $280,000 for the RNC.
Countdown to Obama’s 100th day: 29 days
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The Washington Post on the latest WashPo/ABC poll, which has Obama’s approval rating at 66%: “The number of Americans who believe that the nation is headed in the right direction has roughly tripled since Barack Obama's election, and the public overwhelmingly blames the excesses of the financial industry, rather than the new president, for turmoil in the economy… Two-thirds of Americans approve of the way Obama is handling the country's top job, and six in 10 give him good marks on issue No. 1, the flagging economy. Those figures are little changed from last month. But he receives lower marks for dealing with the federal budget deficit after submitting a plan that would see continued huge deficits over the next decade. Fifty-two percent back Obama on his approach to the deficit, with the public split about evenly over whether belt-tightening or big increases in spending should be used to try to improve the economy.”
Here’s the Boston Globe’s lead on Obama’s auto remarks yesterday: “President Obama roiled stocks and provoked free-market critics yesterday by rebuffing carmakers' turnaround plans and imposing strict new conditions for rescuing General Motors and Chrysler.” New York Times’ analysis : “As an assertion of government control over a huge swath of the industrial landscape, President Obama’s decision to reshape the automobile industry has few precedents. In essentially taking command of General Motors and telling Chrysler to merge with a foreign competitor or cease to exist, Mr. Obama was saying that economic conditions were sufficiently dire to justify a new level of government involvement in the management of corporate America.”
“His message amounted to an inversion of the relationship that had helped define the rise of American manufacturing might in the 20th century; now, Mr. Obama seemed to be saying, what is good for America will have to be good enough for General Motors.”
CONTINUED >>
Reuters looks at the “hefty agenda” the president is bringing with him to Europe. “Analysts said enthusiasm for Obama among the public in Europe will make for a positive tone in his meetings with allies such as British Prime Minister Gordon Brown, French President Nicolas Sarkozy and German Chancellor Angela Merkel. But the warm personal reception Obama will receive might not ease the way for his aims of prodding European allies to spend more to rescue the global economy and offer more troops and resources for the Afghanistan war.” AP also looks at his “busy agenda.” It calls him “wildly popular around the globe but relatively inexperienced in foreign affairs… When Obama went to Europe last summer -- he was a senator seeking the presidency -- he was received like a rock star. His welcome this time is expected to be no less enthusiastic.” Washington Post op-ed . “It is hard to dispute the pessimistic assessments of the Russian-American relationship that prevailed at the end of last year. Unfortunately, relations soured because of the previous U.S. administration's plans -- specifically, deployment of the U.S. global missile defense system in Eastern Europe, efforts to push NATO's borders eastward and refusal to ratify the Treaty on Conventional Armed Forces in Europe. All of these positions undermined Russia's interests and, if implemented, would inevitably require a response on our part.”
“I believe that removing such obstacles to good relations would be beneficial to our countries -- essentially removing ‘toxic assets’ to make good a negative balance sheet -- and beneficial to the world.”
NBC’s Mike Viqueira reports that President Obama spoke for 14 minutes to House Democrats during his closed-door meeting with them on Capitol Hill yesterday. More than 150 members attended, and they were very enthusiastic. Obama, as expected, focused on the budget. "Only way to get out of the economic mess we are in is to grow our way out of it. If we do not have growth, we will not succeed," he said, according to staffers inside the meeting.
The president closed by saying that he and Dems are in this together. Said budget was a blueprint for economic growth. "I need your vote in passing the budget. If we do that, we will create a sense of momentum that will allow us to do health care reform and education" and other major initiatives. "If we don't pas the budget, it will empower those critics who don't want to see anything getting done."
The New York Times adds this about Obama’s trip to Capitol Hill yesterday: “Lawmakers and aides said Mr. Obama also impressed them with his detailed level of political knowledge, reminding one questioner that the lawmaker had voted against his economic stimulus legislation. ‘Don’t think we’re not keeping score, brother,’ Mr. Obama said.”
The Washington Post is the latest to note how GOP Sen. Judd Gregg has gone from Obama’s Commerce secretary-designate to one of his biggest critics. “Now, after turning his back on the post and the administration, the always confident and occasionally sarcastic Gregg has rediscovered his voice as the top Republican on the Senate Budget Committee and de facto leader of the opposition to Obama's $3.5 trillion budget.”
CONTINUED >>
The Democratic Senatorial Campaign Committee is up with a Web video arguing that Republicans are to blame for the economy’s current troubles.
CONNECTICUT : More Dodd trouble… Politico writes that many Democratic officials, strategists and activists “describe a palpable fury among the party rank and file -- anger that’s led some to wonder if the party would be better served with a different Democratic nominee in 2010 -- though they note that, at the moment, Dodd still retains the loyalty of Democratic activists and the political class.”
NEW YORK : Preview from the Albany Times Union : “Voters in the 20th Congressional District will head to the polls from 6 a.m. to 9 p.m. today to choose a replacement for U.S. Sen. Kirsten Gillibrand, who was chosen by Gov. David Paterson to replace Sen. Hillary Rodham Clinton when Clinton was confirmed as secretary of state.”
On the eve of today’s special election in NY-20, Politico reports that President Obama emailed his supporters once again to support the Democrat in the race, Scott Murphy. “The high-level get-out-the-vote reminder is paid for by Organizing for America, the successor to the president’s grassroots organization, now a project of the Democratic National Committee. The return address is at barackobama.com.”
CONTINUED >>
From NBC's Athena Jones, Ken Strickland, and Mark Murray President Obama's speech on the U.S. automakers received a mixed reaction on Capitol Hill.
Senate Majority Leader Harry Reid commended Obama for what he called "firm resolve" when it comes to dealing with automakers.
"The Administration's decision to send GM and Chrysler back to the drawing board was driven by three critical and commendable goals: protecting taxpayers' investment, moving America more quickly toward energy independence, and ensuring these two companies and the American auto industry as a whole can survive and as many workers as possible can keep their jobs," he said in a statement. "As we have maintained since the earliest days of this crisis, if these companies do not develop strong plans to remain viable in the long term, they will lose our support."
On the Republican side, Rep. Darrell Issa , a ranking member of the House Committee on Oversight and Government Reform, praised Obama's announcement saying he had "struck the right chord in seeking balance between supporting the American auto industry and calling for a much-needed restructuring of GM and Chrysler."
But the response was not all positive. Senate Minority Leader Mitch McConnell released a statement arguing that Republicans had long been pushing for reform in the auto industry.
CONTINUED >>
From NBC's Athena Jones
A failure of leadership from Washington and Detroit is to blame for the crisis facing American automakers,
President Obama said today when he announced that neither GM nor Chrysler had shown they could remain viable without government help.
The White House is giving both companies more time to restructure before the administration agrees to commit more taxpayer money to helping them. "We cannot and must not and we will not let our auto industry simply vanish," Obama said, calling the industry a source of deep pride.
Video: Obama delivers a tough message to Detroit. But he also insisted that the government cannot continue to excuse poor decisions. "These companies -- and this industry -- must ultimately stand on their own, not as wards of the state."
GM, whose Chairman and CEO Rick Wagoner is stepping down at the administration's request, will get 60 days of working capital to develop an aggressive restructuring plan. Wagoner will be replaced by Fritz Henderson, the current president, while Kent Kresa will serve as interim Chairman.
CONTINUED >>
From NBC's Mark Murray John McCain said Senate Republicans were working on a detailed budget alternative -- contradicting what we had heard previously from Senate GOPers.
MR. GREGORY: Do you think that Republicans should provide a detailed budget alternative?
Video: McCain discusses Obama's plan to help the economy on "Meet the Press." But Don Stewart, a spokesman for Senate Minority Leader
Mitch McConnell , tells First Read that instead of working on a budget alternative, Senate Republicans are working on amendments.
Yet Stewart adds, "As Sen.
Gregg said last week, if they accept our amendments, we’ll have one helluva substitute." Still, that's not a detailed budget alternative...
From Chuck Todd, Mark Murray, and Domenico Montanaro Obama takes the wheel: Before he turns his attention to international affairs and the global economy later this week, President Obama today addresses the subject that has dominated his first 70 days in office: domestic affairs. At 11:00 am ET this morning, he delivers a speech from the White House on the U.S. auto industry. This speech, in which he’ll announce additional aid for the industry, comes just after the White House ousted Rick Wagoner as CEO of GM. The reason: It was not happy with the restructing plans that GM and Chrysler submitted last month. In his remarks today, Obama will attach a number of strings to this new bailout money. GM and its new management team (led by GM veteran Fritz Henderson) get two more months to come up with a new restructuring plan, which Treasury officials believe needs to include the elimination of more GM brands. Chrysler, meanwhile, gets one more month to seal a deal that it’s already been working on with Fiat. If it succeeds, the new company will get $6 billion from the government; if it fails, the government is likely to walk away.
Video: The Obama administration said neither GM nor Chrysler submitted acceptable plans to receive more bailout money. ***
The Executioner-in-Chief? It turns out that Wagoner is the fourth CEO the Obama administration has replaced. The others have been the heads of AIG, Fannie, Freddie, and (some claim) Citi. But Wagoner’s dismissal -- which came as a surprise to industry insiders -- has left some liberal critics wondering why the Obama administration is demanding the head of GM’s CEO, but not Bank of America’s or Goldman’s, etc. After the president’s remarks on the auto industry this morning, he meets with Defense Secretary Gates (closed press), signs the Omnibus Public Lands Management Act into law (open press), and then heads over to Capitol Hill to meet with the House Democratic caucus (closed press).
*** Euro trip 2: With President Obama tomorrow embarking on a trip to Europe and beyond -- which will take him to England, France, Germany the Czech Republic, and Turkey -- forgive us if we’re experiencing a case of déjà vu. After all, more than eight months ago, during the summer of the general election, Obama took off on a similar and equally publicized trip. While the McCain campaign and GOP critics seized on a few of that trip’s controversies (Landstuhl, the Berlin speech), it was an overall success. Why? Because the Obama campaign was able to sell the trip -- and the greeting it would receive -- as 1) an example of the type of change Obama would bring and 2) as evidence that the one-term senator could be seen by a majority of American voters as up to the task of president. Now, with European countries resisting calls for their own kind of economic stimulus and with them unwilling to provide additional troops to Afghanistan, the task for Obama is now take his popularity in Europe and turn that into actual results. There are concrete ways to measure the president's global influence, and they are coming very early in his term.
Video: Obama received a warm welcome in Europe as presidential candidate, but the global economic crisis may have an effect on his reception this time. ***
Obama’s European itinerary: On Tuesday, the president travels to London for the G-20 conference. He’ll remain there Wednesday and Thursday, holding bilaterals with the leaders of Britain, China, and Russia. (By the way, is there a more important meeting he's having than with China's Hu?) On Friday and Saturday, he’ll be in France and Germany (where he will meet with Sarkozy and Merkel, give a speech, and attend a NATO conference). On Saturday and Sunday, he’ll be in the Czech Republic (where he will hold a summit with the European Union and give a major speech on proliferation). And on Monday, he’ll be in Turkey. Some additional questions: Will the worldwide positive reaction to him help his poll numbers here in the U.S.? Will he see a slight bump? Also, don't be surprised if Michelle Obama gets a Jackie O-like reception, and gets coverage equivalent of that.
Video: Obama prepares for his first trip overseas as president. ***
Geithner meets the press: The Treasury secretary, after a rough P.R. start to his tenure, did very well yesterday on the Sunday shows. He's clearly bought himself a lot of time -- he never had a "deer in the headlights.” But we do have one question for him and the administration. A standard line of spin from the entire economic team has been this: History has shown that government's mistake in previous economic downturns was not doing enough. Fair enough, but what's an example of government doing enough? Has there ever been an example? Right now, the administration's straw-man argument is Japan in the '90s and the Great Depression -- instances of when government didn't do enough. Could it be that there isn't an example to point to? Then again, Republicans don't exactly have their own examples to point to when government doing too little -- or cutting spending -- actually worked during an severe economic downturn...
Video: Geithner discusses the administration's plan to aid the ailing economy. ***
Turning to Afghanistan: In Obama’s remarks about Afghanistan in his Sunday interview on CBS, we noticed a lack of a singular focus on Osama bin Laden the individual (something that wasn't lacking by Dems during the '04 and '08 campaigns). But the president certainly upped the ante on his rhetoric against al Qaeda in general. By the way, it’s striking to us how well received Obama’s policy was on the right, while the anti-war left has been VERY silent. Moreover, NBC News sources indicate that when the president briefed senior congressional leaders, he was very mindful that the most skeptical person in the room was Speaker Pelosi. She's publicly on board and she's also kept the elected anti-war members of the Dem caucus from criticizing publicly -- an impressive feat.
Video: MSNBC panelists debate whether Obama's plan in Afghanistan will make America safer. ***
That NY-20 race: We’ll have a lot more tomorrow on Tuesday’s special congressional election in New York, but here are a few quick thoughts: The race will be one of those over-read Washington-political stories -- no matter who wins... Obama cut a TV ad... Michael Steele has staked his early reputation on it as well... A Dem loss and there will be lots of Republicans crowing about them on the comeback… A Dem win and there will be a lot of second-guessing among Republicans about their ability to win; if they can't win this one, how are they going to start being a competitive national party again?
*** Joe Biden as Shane Battier or Danny Green? After we discovered the influential role Vice President Biden played in the administration’s Afghanistan/Pakistan, the New York Times yesterday front-paged a look at Biden’s role in the administration. “Mr. Biden has settled into a role of what Mr. Obama compares to a basketball player ‘who does a bunch of things that don’t show up in the stat sheet,’ the president said in an interview Friday. ‘He gets that extra rebound, takes the charge, makes that extra pass.” Speaking of basketball, President Obama wasn’t the only one who seems to have fared poorly with his Final Four picks. Your NBC Political Unit wasn’t so hot, either. (Who would have thought Villanova and Michigan State would make it?)
Countdown to NY-20 special: 1 day
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The Wall Street Journal writes, “The Obama administration used the threat of withholding more bailout money to force out General Motors Corp. Chief Executive Rick Wagoner, marking one of the most dramatic government interventions in private industry since the economic crisis began last year.”
The Washington Post : “The White House's insistence that Wagoner step down is an extraordinary intervention of the federal government into the management of a private company. A senior administration official said Wagoner's resignation was required because the company needs a ‘clean sheet.’ ‘We felt that having a change of leadership would be consistent with the clean-sheet approach,’ said the official, who spoke on condition of anonymity because of the sensitivity of the matter.”
“Before the federal government extends more financial aid to the U.S. automakers, the industry must offer a plan that makes it ‘much more lean, mean and competitive than it currently is,’ Obama said yesterday on CBS's ‘Face the Nation.’”
CONTINUED >>
The Sunday New York Times curtain-raised Obama’s upcoming trip to Europe. “Despite his immense popularity around the world, Mr. Obama will confront resentment over American-style capitalism and resistance to his economic prescriptions when he lands in London on Tuesday for the Group of 20 summit meeting of industrial and emerging market nations plus the European Union. The president will not even try to overcome NATO’s unwillingness to provide more troops in Afghanistan when he goes on later in the week to meet with the military alliance.”
USA Today calls the trip “one of the most anticipated presidential trips since John Kennedy went to Berlin in 1963… Still new on the world stage at 47, Obama will meet privately with at least six presidents, prime ministers and a king in London, then five more as he travels on to France, Germany, the Czech Republic and Turkey. He'll attend three summits, deliver two major addresses and hold a roundtable with students in Istanbul. He'll take time out to see Queen Elizabeth II at Buckingham Palace and sightsee from Strasbourg to Istanbul.”
President Obama gave an interview to the Financial Times over the weekend, in which he voiced “optimism that this week's crucial G20 summit will set the framework for recovery, saying that world leaders know they must ‘deliver a strong message of unity’ for the sake of the global economy.”
CONTINUED >>
"Democrats in both the House and the Senate this week hope to win passage for budget resolutions that will serve as the first step in enacting the ambitious agenda of President Obama," The Hill writes. Roll Call adds, "By the time President Barack Obama’s $3.6 trillion budget proposal comes up for a vote in the Senate later this week, the high-pitched opposition from Democratic moderates is expected to give way to a chorus of support."introduced legislation that "would protect middle-income taxpayers from the alternative minimum tax and the marriage penalty, would lock in 2009 estate tax rates, and would make permanent the 10, 25, and 28 percent individual income tax rates set in major tax cut legislation passed in 2001. The measure also would continue current income eligibility thresholds for the child tax credit, which gives families up to $1,000 for every child under age 17."
CONTINUED >>
GOP WATCH: More RNC staff cuts
"The Republican National Committee is shedding more staff under newly elected Chairman Michael Steele’s tenure," Roll Call writes. "Jay Banning, the RNC’s chief financial officer and chief administrative officer, is leaving the committee after 33 years, according to an e-mail message obtained by Roll Call."
HAWAII: "Former Rep. Ed Case (D-Hawaii) wants to come back to Capitol Hill. The former two-term Member entered the race Saturday for retiring Rep. Neil Abercrombie’s (D) seat."
NEW YORK: The Albany Times Union on NY-20: Gillibrand and fellow New York Sen. Charles Schumer made appearances at Murphy's stops in Clifton Park and Brunswick Sunday, while Tedisco flew solo in Malta and visited Glens Falls with Freda Solomon, the wife of late area Congressman Gerald Solomon… The race is being viewed as a political gauge that may indicate if Republicans can regain strength or if Democrats are still riding the momentum of President Barack Obama's election.”
Meanwhile, a DCCC internal poll shows Murphy leading Tedisco 43%-41%, as of Friday, according to The Hill.
From NBC's Mark Murray Anchorage Daily News op-ed this weekend, Alaska Gov. Sarah Palin outlines her criticisms of the Obama stimulus -- and why she's raising objections to some of the funds. (Hat tip: Ben Smith .)
Under federal law, I must certify that every stimulus dollar will create new jobs and stimulate the economy. I take that charge seriously. Accordingly, I've requested $514.4 million for capital projects that legitimately create new private sector jobs. Shovel-ready projects are certifiable because they put people to work and grow Alaska's private-sector economy.
Unfortunately, a disproportionate percentage of the federal package available to Alaska would increase government operations. It's a stretch to certify that more spending on more bureaucracy actually grows an economy.
When stimulus money runs out in two years, who will pay for the expanded government programs, when Alaska currently has a budget shortfall of over a billion dollars? My administration will not willingly and knowingly dig a hole for Alaskans to fill under this enormous, debt-ridden, Washington spending plan. That's why public discussion on budget increases must happen through open, transparent legislative hearings so everyone is aware of the cost.
From NBC's Mark Murray GOP's weekly radio address , Republican New Hampshire Sen. -- and one-time Obama Commerce secretary-designee -- Judd Gregg blasted President Obama's $3.6 trillion budget proposal.
He continues, "We believe you create prosperity by having an affordable government that pursues its responsibilities without excessive costs, taxes or debt. That it is the individual American who creates prosperity and good jobs, not the government. We believe that you create energy independence not by sticking Americans with a brand new national sales tax on everyone’s electric bill, but by expanding the production of American energy."
Meanwhile, in a new TV ad , the liberal group Americans United for Change ridicules House Republicans, who this week announced a budget alternative that had no hard numbers in it; House Republicans say that the hard numbers will come out next week.
"For weeks the Republicans just said NO to the president’s plan and refused to propose one of their own," the ad goes. "They finally presented their alternative. How many numbers were in their alternative 'budget'? That’s right – none. A budget with no numbers? Tell the Republicans that Americans won’t take NO for an answer. Tell them we want our President -- and America -- to succeed."
Video: The G-20 summit, if it's Tuesday... NY-20, Geithner on Meet the Press, and BIG Bill Clinton news.
From NBC's Ken Strickland
Kansas Gov. Kathleen Sebelius will have two confirmation hearings next week to become HHS secretary. On Tuesday, she'll appear before the Senate Health, Education, Labor & Pension Committee (which is a courtesy hearing because it doesn't approve the nomination). And on Thursday, Sebelius has her official hearing before the Finance Committee.
There are a couple of financial oversight, follow-the-money-type hearings that could generate some fireworks since fiscal accountability became all the rage. On Tuesday, the Finance Committee will get a six-month update on TARP spending from a panel that includes the TARP Special Inspector General Neil Barofsky.
And the Homeland Security/Governmental Affairs Committee will hear the administration's plan on how it will keep track of the billions being spent in the stimulus bill. OMB deputy Rob Nabors and Inspector General Earl Devaney will be the witnesses in this Thursday hearing.
The Senate's version of the budget resolution moves to the floor Monday, and is expected to consume the week's legislative activity before Congress begins a two-week recess on April 6.
From NBC's Mark Murray in a new poll -- the National Republican Congressional Committee has unveiled a provocative new Web ad that hits Democratic candidate for opposing the death penalty, even for terrorists.
From NBC's Chuck Todd
In the midst of the congressional outrage over bonuses and bailouts, many of the very firms who benefitted from TARP funds are still making political donations. And the politicians are still taking them.
According to the latest F.E.C. data for February, several members of Congress who have been critical of the federal government’s bailout of U.S. companies have received campaign contributions just in the last six weeks – from the firms they bailed out.
Campaign-finance-reform advocate Fred Wertheimer says the government's been bailing out banks and other major "too-big-to-fail" firms -- as these same companies continue to use their PACs to make contributions. "It all adds up to kind of a magic circle involving the government, TARP recipients, members of Congress, and campaign contributions." The reality, of course, is that these contributions, individually, aren't a lot of money. But many members of Congress (including Speaker Pelosi and Financial Services Chair Barney Frank) have decided against taking any of the money. The optics of this for both the banks and for the members of Congress is bad, and only feeds the credibility problems both entities have with the American public.
Video: NBC’s Chuck Todd reports on the political contributions some politicians are getting from businesses and other organizations receiving bailout money.
So who is getting money and giving it right back to the politicians? Here’s a list of companies who received at least $1 billion in TARP funds and in February alone also gave money to members of Congress or national parties:
CONTINUED >>
From NBC's Athena Jones
The future of Afghanistan is "inextricably linked" to the future of Pakistan,
President Obama argued today as he announced a sweeping new policy toward Afghanistan that will include more troops for the country and more aid for its increasingly unstable neighbor.
In stern, forceful language, the president sought to make the case to the American people -- and to the world -- that the security situation in Afghanistan and Pakistan was a shared responsibility that would require a sustained international effort to go after Al Qaeda and to help with economic development in the region.
"For the American people, this border region has become the most dangerous place in the world," he said. "I want the American people to understand that we have a clear and focused goal: to disrupt, dismantle, and defeat al Qaeda in Pakistan and Afghanistan, and to prevent their return to either country in the future."
Obama has already ordered 17,000 additional troops be sent to Afghanistan this year and today he announced that an additional roughly 4,000 troops would be sent to help train Afghan security forces. He also called on Congress to pass two bills -- one that would provide $1.5 billion a year for five years to build schools, roads and hospitals in Pakistan; and another that would create "opportunity zones" in border regions to develop the economy.
CONTINUED >>
From NBC's Mark Murray Siena Research Institute poll shows Scott Murphy (D) leading Jim Tedisco (R), 47%-43%, in that special election taking place in upstate New York on Tuesday. (Hat tip: Taegan Goddard .)
As we've written , it would be a P.R. disaster for Republicans if they lose this GOP-leaning congressional district, where registered Republicans outnumber Democrats and which the GOP held for 28 years until Kirsten Gillibrand (D) won it in 2006. (That said, Obama did capture 51% of the vote in this district last November.)
“If Republicans lose this race, it is likely to have more significant aftershocks than if Democrats lose,” Amy Walter of the Hotline told First Read.
“I think Republicans will have to do some introspection if they lose this race,” added David Wasserman of the Cook Political Report. “If there is any district in New York they should be able to get back, it is this one.”
Meanwhile, Tedisco released this statement about the new Siena poll: “Heading into Election Day, our campaign’s internal polling shows us continuing to lead, just as we have for this entire race. Today's Siena poll is simply another in a line of polls that show this race within the margin of error. In the end this race is coming down to voter intensity and turnout, and our internal polls show us with strong leads in both areas."
From Chuck Todd, Mark Murray, and Domenico Montanaro The Afghan-Pak strategy : At 9:25 am ET, President Obama will announce that he’s sending an additional 4,000 military trainers and advisers to Afghanistan, on top of the 17,000 he’s already deployed there. As NBC’s Jim Miklaszewski reported last night, the president's new strategy will focus on accelerating the training and doubling the size of Afghan security forces to take over the fighting. But this isn’t just about Afghanistan; today’s policies will also be about neighboring Pakistan. As Bloomberg News notes, “Obama also would support legislation to triple economic aid to Pakistan to about $1.5 billion a year in exchange for that country cracking down on Taliban and terrorists hiding out along border… The goal is to weaken and ultimately destroy al-Qaeda’s havens and sanctuaries in Pakistan and prevent the terrorist group from returning across the border to Afghanistan, the officials said.” Some might see today’s announcement as a ramping of activity in Afghanistan, but is sending 4,000 trainers/advisers an acknowledgement of the opposite? Everything about this announcement today, in fact, has the feel of trying to minimize the military aspect of the conflict. To put it another way, this is a dramatic shift away from the philosophy some in the Bush administration pushed -- which was democracy for Afghanistan.
Video: NBC's David Gregory joins Morning Joe to discuss the usuage of bailout funds and the Republican Party's alternative budget proposal. *** Dude, where’s my budget? Let’s be honest: Yesterday’s House Republican budget rollout was a P.R. disaster for the GOP. “Here it is, Mr. President” was the title of the GOP Leader blog touting that they had answered Obama’s dare to produce a budget. The problem -- their budget rollout didn’t contain any hard budget numbers or deficit projections. They say those hard numbers will come out next week. But now we learn that Reps. Eric Cantor and Paul Ryan objected to unveiling yesterday’s “blueprint,” but were overruled by Reps. John Boehner and Mike Pence. But bigger than any internal disagreements or any criticism about a lack of details is the fact that yesterday’s GOP non-announcement moved the attention away from the Obama-vs.-congressional Democrat storyline to the GOP’s lack of a budget. In fact, after yesterday, the White House and congressional Democrats can agree on one thing: The GOP -- at least until next week -- is the “Party of No.” What's more, it puts more pressure on Ryan to truly put out a comprehensive budget alternative; Also, this episode could end up creating a rift in the GOP over how to combat the Obama White House. After all, Senate Republicans wanted nothing to do with an alternative, and now Mitch McConnell, et al are either laughing at their House GOP colleagues, furious at them, or both. And where’s the money? We’ve suggested that the economic downturn could affect political fundraising, and today’s Washington Post has numbers to back up that assumption. “In January and February 2005, the six national party committees collected a total of almost $49 million in individual contributions, according to an analysis of FEC records,” the Post writes. “In the first two months of this year, those same committees collected $30.7 million, a drop of nearly 40 percent.”
*** The magic circle : Speaking of political contributions, one of us on TODAY followed up on the recent reporting that several members of Congress who have been critical of the federal government’s bailout of U.S. companies have received campaign contributions from these very firms just in the last six weeks, in the midst of the congressional venom directed toward the bailouts. Campaign-finance-reform advocate Fred Wertheimer says the government's been bailing out banks and other major "too-big-to-fail" firms -- as these same companies continue to use their PACs to make contributions. “It all adds up to kind of a magic circle involving the government, TARP recipients, members of Congress, and campaign contributions.” The reality, of course, is that these contributions, individually, aren't a lot of money. But many members of Congress (including Speaker Pelosi and Financial Services Chair Barney Frank) have decided against taking any of the money. The optics of this for both the banks and for the members of Congress is bad, and only feeds the credibility problems both entities have with the American public.
***
More tough news for Gillibrand? New York liberals have criticized Sen. Kristen Gillibrand over her past views on guns and immigration. And now they might have another beef -- her past attorney work for Phillip Morris, according to the
New York Times . “Now in the Senate seat formerly held by Hillary Rodham Clinton, Ms. Gillibrand plays down her work as a lawyer representing Philip Morris, saying she was a junior associate with little control over the cases she was handed and limited involvement in defending the tobacco maker. But a review of thousands of documents and interviews with dozens of lawyers and industry experts indicate that Ms. Gillibrand was involved in some of the most sensitive matters related to the defense of the tobacco giant as it confronted pivotal legal battles beginning in the mid-1990s.”
*** Obama makes an appearance in NY-20 -- sort of : Turning to Gillibrand’s old congressional seat, the DNC has announced that it’s airing a new TV ad that notes President Obama’s endorsement of Scott Murphy (D) in the NY-20 special election. “In the worst recession in a generation,” the ad goes, “upstate New Yorkers deserve someone with the right skills to represent them in Washington… In Congress, he'll work with President Obama to spur investment and create jobs right here at home.” As Roll Call puts it, the DNC’s ad is the “strongest attempt yet to link Obama with Murphy.”
*** Man of Steele? As we’ve previously noted, Tuesday’s special election in NY-20 contains plenty of good storylines. The race has turned into a battle over Obama’s stimulus (Murphy supports it, while GOPer Jim Tedisco opposes it). It has become a barometer of the Republican Party’s health in the post-Bush era (a loss would be devastating for the Republicans in this GOP-leaning district). And here’s a third storyline: The contest has become a test for embattled RNC Chairman Michael Steele, given that he has made it a personal crusade of sorts. The RNC says it has transferred $200,000 to help Tedisco, and Steele has campaigned for him. What’s more, Steele had said that a win in the race “will send a powerful signal to the rest of the country and especially those folks in the elite media who think they know so much more than the rest of the us.” But what happens if Republicans lose this toss-up contest? As one GOP strategist told First Read, “Part of being an effective party leader is winning races we can win or should win. And this is a race we very much should win.” (Click here for more .)
*** If it’s Sunday… : Be sure to watch “Meet the Press” this Sunday, which will have Treasury Secretary Tim Geithner in his first live Sunday morning interview, as well as John McCain.
Countdown to NY-20 special: 4 days
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The AP : "Obama plans to dispatch thousands more military and civilian trainers to Afghanistan by the fall on top of the 17,000 combat troops he has already ordered, senior administration officials said Thursday. Obama's war strategy, which he will unveil today, includes no time line for withdrawal of troops. The war began more than seven years ago. The sources said Obama's goal is to stabilize Afghanistan and eliminate the terrorist havens that have taken root in Pakistan. They said the plan is built around benchmarks that will allow the President and Congress to check whether it is working."
The Washington Post says that the strategy isn’t only about Afghanistan; it’s also about Pakistan. “In outlining his plan after a two-month review that began the week of his inauguration, Obama will describe it as a sharp break with what officials called a directionless and under-resourced conflict inherited from the Bush administration. Far from al-Qaeda being vanquished and the threat to the United States diminished, the official said, ‘seven and a half years after 9/11, al-Qaeda's core leadership has moved from Kandahar, in Afghanistan, to a location unknown in Pakistan . . . where we know they're plotting new attacks" against this country and its allies.’”
“Obama plans to announce a "simple, clear, concise goal -- to disrupt, dismantle and eventually destroy al-Qaeda in Pakistan," said the official, one of three authorized to anonymously discuss the strategy. The president will describe his plan in a White House speech to a group of selected military, diplomatic and development officials and nongovernmental aid groups.”
Bloomberg : “Obama also would support legislation to triple economic aid to Pakistan to about $1.5 billion a year in exchange for that country cracking down on Taliban and terrorists hiding out along border… The goal is to weaken and ultimately destroy al-Qaeda’s havens and sanctuaries in Pakistan and prevent the terrorist group from returning across the border to Afghanistan, the officials said.”
CONTINUED >>
"President Obama is expected to provide additional money to General Motors and Chrysler, but will tie that aid to strict conditions on their restructuring," The Hill writes. "Two industry sources predicted that additional aid to GM and Chrysler would come with conditions the administration would try to portray as 'tough love.'"
"In his continuing non-traditional media blitz, President Obama used a popular Spanish-language music awards show tonight to reach out to Hispanics," the Boston Globe reports. "'Buenas noches. I want to thank the millions of you who voted for tonight’s winners, and I also want to thank all of you who voted in that other election back in November -- even if it wasn’t for me,' he said in a pre-recorded message that aired during Univision’s live coverage of the 'Premio Lo Nuestro' Latin music awards from Miami’s BankUnited Center."
The Senate Budget Committee yesterday passed a budget resolution along party lines, 13-10. The Hill : "Compared to the president's proposal, Conrad's (D-N.D.) includes less non-defense discretionary spending and fewer details over how to overhaul the healthcare system and curb global warming. But it does tackle Obama's top priorities of healthcare, energy, education and deficit reduction."
Regarding that GOP “budget” yesterday … Republicans' "19-page proposal included few details. Instead, it promised Republican themes of curbing spending, creating jobs, cutting taxes and controlling debt.""ridiculed the GOP proposal for being brief and containing a 'picture of a windmill' instead of numbers. He also used a string of one-liners at yesterday's briefing to knock it down: "It took me several minutes to read it" and "I think the 'Party of No' has become the party of no new ideas."
CONTINUED >>
MINNESOTA : Per the Star Tribune , “The former finance chief of a Texas company controlled by Nasser Kazeminy, a close friend of former Sen. Norm Coleman, said in a deposition last week that Kazeminy ordered $100,000 in fees be paid to a Minneapolis insurance agency where Coleman's wife was employed. B.J. Thomas, who was chief financial officer of Deep Marine Technology Inc., said that $75,000 of that sum was paid to Hays Companies even though he saw no evidence of Deep Marine receiving any consulting services from Hays.”
The article also notes this: “In the deposition, Thomas recounted a March 2007 telephone conversation in which Kazeminy purportedly lamented the amount of money Coleman was paid as a senator. According to the transcript, Thomas was asked, ‘In that conversation that you had with Mr. Kazeminy, did he tell you, quote, United States senators don't make sh&%, close quote? Or words to that effect?’ Thomas answered: ‘Yes, sir.'’”
The DSCC says it's going to donate that $100,000 in Madoff contributions, after it resisted doing so earlier. CONNECTICUT : Chris Dodd leads Rob Simmons in a potential 2010 Senate match-up 45%-40%, per a new Siena poll. In a Quinnipiac poll earlier this month, Dodd had trailed Simmons by a point. The poll also reveals voters are largely split on Dodd's favorability (47% positive, 40% negative). Simmons is largely unknown, but most that did have an opinion expressed a positive one. (By the way, the poll also reveals that 54% view Sen. Joe Lieberman negatively, while only 40% viewed him favorably.) *** CORRECTION *** That Connecticut poll mentioned above is a Research 2000 poll, not a Siena survey. NEW YORK : Murphy and Tedisco faced off in their final debate yesterday. “‘I think he is better for the dodge ball team, he's a pretty dodger on particular issue,’ said Jim Tedisco. ‘I guess that how they do things in Albany, what I want to do is solve the problem,’ said Scott Murphy.”
“It didn't take long. It the last time Republican Jim Tedisco and Democrat Scott Murphy meet face to face and the last time to trade barbs. ‘Either he knew what was in the that bill, he knew those AIG bonuses were in there. There's nobody else to blame,’ said Tedisco. ‘You can't have it both ways. You can't say that it is pork and then say it is important money we need to get here, and you are fighting to get those dollars here. If it is all pork, you should be against it,’ said Murphy.”
CONTINUED >>
From NBC's Athena Jones President Obama today discussed the economy, health-care reform, education, clean energy, help for small businesses, and other issues all in an effort to sell his $3.6 trillion budget to the American people.
The event -- much of which cable stations carried live, and which the White House says drew more than 67,000 viewers online -- consisted of the president answering the most popular questions submitted in written and video form and several from a live audience assembled in the East Room. Some 92,933 people submitted 104,082 questions online, and cast 3.6 million votes to select which ones should be answered, according to www.whitehouse.gov .
Obama's responses yielded no news, and the town hall felt at times like a university lecture. But there were two interesting moments. At one point, the president acknowledged a popular question about marijuana that he felt he needed to address.
CONTINUED >>
From NBC's Mark Murray
In fact, we received this email from a House GOP spokeswoman, "Given the President’s comments [Tuesday] night that, 'we haven’t seen a budget out of [Republicans],' we wanted to make sure to make you all aware that we are introducing our Republican Budget Alternative tomorrow."
And then what happens today? House Republicans release a 19-page document that contains no hard spending numbers or deficit projections. Per the AP , "One of the few hard bits of information is a promise to simplify the tax code and cut income tax rates to 10 percent for people making $100,000 or less down. They also promise to cut domestic spending below current levels but don't say whether they are exempting Social Security. It's impossible to determine the projected deficit based on their offering."Paul Ryan is currently drafting."
Not surprisingly, the Democratic National Committee pounced on the GOP's budget -- or lack thereof. "After 27 days, the best House Republicans could come up with is a 19-page pamphlet that does not include a single real budget proposal or estimate," said DNC spokesman Hari Sevugan. "While there had been talk that House Republicans were overriding their Senate counterparts to offer a budget alternative, it's clear after this announcement that neither of them have anything to offer but criticism."
From NBC's Mark Murray and Domenico Montanaro
When it comes to political races, 2008 will certainly go down as a year to remember.
It featured more than 50 individual Democratic presidential primary contests; it produced dozens of competitive Senate and House races (one of which is still undecided); and it concluded with a general election between Barack Obama and John McCain that captivated America.
Now, just four months later, the first truly competitive contest of 2009 is already upon us. On Tuesday, in upstate New York, Democrat Scott Murphy faces off against Republican Jim Tedisco in the special election to fill the seat in the 20th Congressional District vacated by Kirsten Gillibrand , D-N.Y., who was appointed to replace Hillary Clinton in the U.S. Senate.
While political analysts usually caution not to read too much into special elections, this race seems to take up where 2008 left off. It has turned into a battle over President Obama’s economic stimulus. It also has become the first real test for embattled Republican National Committee Chairman Michael Steele .
And, looking forward to next year’s midterms, Republicans have touted it as an early barometer of their political health in the post-Bush era — especially since it takes place in a region, the Northeast, where the GOP has found little recent success.
Click here for the rest of the story.
From NBC's Mark Murray Obama's Organizing for America is the latest group to air a TV ad touting the president's budget. The ad is running on national and DC cable (read: a relatively small buy).
From Chuck Todd, Mark Murray, and Domenico Montanaro Budget battle wages on: Despite their differences over the budget (middle-class tax cuts, health-care spending, additional money for Wall Street’s rescue), Obama’s meeting yesterday with Senate Democrats was a big love fest. And here's what happened: They punted all the tough decisions for down the road -- which is what White House wants. Team Obama wants the tough debates getting less attention. Meanwhile, it looks like House Republicans have accepted the president’s dare. “There's an interesting reason why some of these [GOP critics] haven't put out their own budget,” the president said at Tuesday’s press conference. “I mean, we haven't seen an alternative budget out of them.”
Video: President Barack Obama tried to rally Democrats on his massive $3.6 trillion budget on Capitol Hill Wednesday. NBC's Savannah Guthrie reports.
*** We pruned the hedge (funds) of many small villages: After what most consider a rough start in his first two months on the job, Treasury Secretary Tim Geithner has been taking on a more and more visible role this week. On Monday, he unveiled the administration’s toxic-assets plan (to a favorable reception on Wall Street).
On Tuesday, he and Fed Chairman Ben Bernanke testified before Capitol Hill on AIG oversight. And today, Geithner's back on the Hill -- this time unveiling the Obama administration’s plan to subject hedge funds and other exotic financial instruments (like derivatives) to more government oversight. Per CNBC’s Mary Thompson, senior administration officials say the plan addresses systemic risk; regulatory gaps and holes within the system; consumer and investor protection; and international cooperation among regulators. The focus of today’s testimony, however, will be on systemic risk, with details about the three other parts of the plan to be unveiled over the next two to three weeks.
*** Now that would be some meeting: The Geithner reforms, in fact, might be the most important long-term issue the administration is dealing with today. It was the deregulation decisions of the 1980s-90s that played a role in today's crisis. Some day, the key economic players of the ‘80s and ‘90s will get in one room and start hashing out their decisions. Can't we get Phil Gramm, Jim Johnson, Alan Greenspan, Bob Rubin, Larry Summers, Chris Cox, Hank Greenberg, Tom Bliley, etc.? We're leaving a number of people out, but you get the point. How do we know where were going if we don't know how we got here? One thing we've learned: There wasn't one reason; there were a slew of them. Of course, to get all of these folks in one room, someone would need to have subpoena authority and hold hearings. Hmmm, maybe a special committee or commission?
*** Town Hall 2.0: President Obama has hit the road to sell his economic agenda. He’s appeared on Leno and “60 Minutes.” And now the president hits … the Internet. At 11:30 am ET, he answers questions in an online town hall . So far, per the White House, 76,000 people have submitted almost 84,000 questions for the president.
*** Hillary dips her toes back into politics? Yesterday, Planned Parenthood announced that it would be honoring Secretary of State Clinton at a gala on Friday in Houston. While it’s hardly surprising that she supports Planned Parenthood and abortion rights, this seems to be a bit more political than your usual State Department event, no? And speaking of politics, check out Hillary’s comments about the assault weapons ban. She basically, well, endorsed it. "I think these assault weapons, these military style weapons don't belong on anyone's street," she told NBC's Andrea Mitchell. That isn’t something that rural Democrats want to hear... And we're guessing something the president would not be caught saying in public, or would he? What say you, Mr. LaPierre?
*** You are a radio star…: Sticking with politics, Politico’s Martin reports that Vice President Biden has cut a radio ad for Scott Murphy (D) in the NY-20 special congressional race that takes place on Tuesday. This ad comes after President Obama released an email to supporters in Upstate New York asking them to back the Democratic candidate. “While Obama is unlikely to appear in New York on Murphy’s behalf," Politico writes, "Democrats familiar with strategy considerations say the national committee is mulling over spending significantly more money on the race. Biden's radio ad is a major first step, though it’s uncertain whether he’ll trek up to the district, and first lady Michelle Obama may play a role.”
***
Steele in the news: And just when we thought we hadn’t heard from Michael Steele in a while, the RNC chairman
gave an interview yesterday to CNN , in which he said he might be open to running for president someday -- if that’s "where God wants me to be." Steele: "God has a way of revealing stuff to you, and making it real for you, through others. And if that's part of the plan, it'll be the plan… [If I run] it'll be because that's where God wants me to be at that time." Per the
Huffington Post , Steele also told CNN that his dust-up with (and later apology to) Rush Limbaugh was planned and “strategic.” Said Steele: “So if I do something, there's a reason for it... It may look like a mistake, a gaffe. There is a rationale, there is a logic behind it.” More: "It helps me understand my position on the chess board. It helps me understand, where, you know, the enemy camp is and where those who are inside the tent are… It's all strategic." OK…
Countdown to NY-20 special: 5 days
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Per the New York Times , Treasury Secretary Tim Geithner today will detail a “wide-ranging plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments, now among the biggest and most freewheeling players on Wall Street, to potentially strict new government supervision… The plan, which would require Congressional approval, would give the government vast new powers over ‘systemically important’ banks and other financial institutions that are so big that their collapse would jeopardize the economy as a whole.”
More: “The government would have the power to peer into the inner workings of companies that currently escape most federal supervision -- insurance companies like the American International Group, multibillion-dollar hedge funds like the Citadel Group and private equity firms like the Carlyle Group or Kohlberg, Kravis & Roberts.”
The Wall Street Journal : “The move represents an early salvo in what will likely be a long debate about how to overhaul the rules governing markets, an effort officials say is designed to help restore confidence in the U.S. financial system. It comes just days before Mr. Geithner and President Barack Obama travel to London” for the G-20.
CONTINUED >>
Obama went to Capitol Hill yesterday to meet with Senate Democrats, and he got this headline from the AP : "Democrats unify around Obama budget." But: "Even so, both the House and Senate versions lack specifics for any of the administration's signature proposals. And Democrats decided to cut spending -- and exploding deficits -- below levels envisioned in the plan Obama presented less than a month ago."
The New York Times : “Just before midnight, the House Budget Committee voted, 24 to 15 along party lines, to approve its spending plan, sending it to the full House for consideration next week. While both the House and Senate plans protect the president’s top priorities, neither would extend a middle-class tax cut championed by Mr. Obama beyond 2010 unless a source of revenue to pay for it is identified. And though Mr. Obama laid out specific plans to raise $634 billion over 10 years for a down payment on national health care reform, lawmakers provided only a framework for the White House and Congress to move forward, provided that the health initiative does not raise the debt.”
The Wall Street Journal looks at more budget differences between the Obama administration and Democratic Congress. “Democratic leaders in both chambers are pushing packages that call for narrower deficits and less spending than proposed by the White House… Significantly, both the House and Senate decided to abandon a White House request for additional money for the Wall Street rescue. The two chambers also don't intend to invoke special legislative powers -- known as ‘reconciliation’ -- that would allow climate-change legislation to avoid a filibuster in the Senate.”
CONTINUED >>
MINNESOTA: “Minnesota's U.S. Senate race set a record Wednesday for delay. No election for statewide office in Minnesota has dragged on so long after the autumn vote without a winner being seated,” the
Star Tribune writes. “The old record was set by the 1962 governor's election between DFLer Karl Rolvaag and incumbent Republican Elmer L. Andersen. When that contest ended the following spring, Andersen, who thought he had been reelected, lost by 91 votes. Rolvaag took the oath of office on March 25, 1963.”
KENTUCKY: Republicans trying to force Jim Bunning out may be a dose of his own medicine, The Hill points out. Bunning lobbied for Anne Northup over Ernie Fletcher in 2007 for governor, because he wanted "to make sure that we nominate someone who can win in November." MICHIGAN: "Domino’s Pizza Chairman and CEO David Brandon has been on national television for two weeks touting the 'Big Taste Bailout' in advertisements that are running during top-watched shows like 'American Idol' and the NCAA basketball tournament. The spot, which features both the Capitol and a faux-Wall Street executive, would be great public relations for any company that hasn’t received TARP or bailout funding, but they’re even better for Brandon. Reports say he’s considering joining the already-crowded Republican field running for governor of Michigan." NEW YORK: Vice President Biden has cut a radio ad for Scott Murphy (D) in the special congressional election to replace Kirsten Gillibrand. “While Obama is unlikely to appear in New York on Murphy’s behalf, Democrats familiar with strategy considerations say the national committee is mulling over spending significantly more money on the race. Biden's radio ad is a major first step, though it’s uncertain whether he’ll trek up to the district, and first lady Michelle Obama may play a role.”
The DNC sent $10,000 for the homestretch, but the Republican National Committee has poured $200,000 into the race." A Democratic official tells First Read, "There are other bolts to come, yet to be fired. Stay tuned."
CONTINUED >>
From NBC’s Pete Williams
President
Obama has nominated one of the nation's prominent liberal academics to be the top lawyer at the State Department, another sign that the administration plans a big break with
Bush administration policies in the war on terror.
Formally announced late yesterday but getting little attention today, the White House nominated Harold Koh , dean of the Yale Law School, to be the State Department's legal advisor.
Koh has been one of the most outspoken opponents of Bush interrogation and detention policies. He told a 2005 Senate hearing that a Justice Department memo authorizing harsh interrogation methods was, "a stain on our law, a stain on our national reputation."
CONTINUED >>
From NBC's Ken Strickland Peter Orszag said, "The resolutions may not be identical twins to what the president submitted, but they are certainly brothers that look an awful lot alike."
In fact, it's more like they have different fathers.
Here's why: While the Senate version is supportive of most of the president's programs, it stops well short endorsing the administration's tactics for enacting them into law. For example, the Senate budget supports the broad idea of a health-care reserve fund, but it doesn't make "assumptions" about how it will be paid for or even how much it should be.
CONTINUED >>
From NBC's Libby Leist
En route to Mexico City today, Secretary of State
Hillary Clinton was forceful in sending the message to the Mexican government and people that the U.S. takes a "shared responsibility" for the drug violence and drug trafficking plaguing Mexico, and that past U.S. efforts have not worked.
Clinton said she was asked yesterday in an interview with a Mexican reporter to respond to criticism in Mexico that the U.S. is responsible for much of the Mexican crisis. She said she responded to the reporter, "I agree -- we are!"
Clinton added today, "How could anybody conclude differently? Our insatiable demand for illegal drugs fuels the drug trade! Our inability to prevent weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers, civilians. So, yes, I feel very strongly we have a co-responsibility. And part of what we're trying to do is not only acknowledge that but working with the Mexicans to create the very best possible responses."
CONTINUED >>
From MSNBC.com's Tom Curry
Democratic Sen.
Evan Bayh of Indiana is the target of a campaign by left-of-center Democratic groups like MoveOn.org, the Campaign for America’s Future, and USAction, which accuse him and other centrist Democrats of what Bob Borosage, co-director of Campaign for America’s Future, calls “standing in the way of the president’s programs.”
As previously mentioned, a new MoveOn radio ad, which will start running in Indiana Thursday, will urge listeners to “Call Senator Bayh at (202) 224-3121 and tell him to vote for the Obama budget. We’ve tried it Wall Street’s way long enough. It’s time Washington listens to the rest of us.”
Video: Will Bayh's new caucus of eight moderate Democrats oppose White House policies? Bayh was one of seven Democratic senators to sign a letter opposing the idea of using the budget reconciliation process, which requires only a simple majority vote rather than 60 votes, to pass a climate change cap-and-trade bill.
Bayh is running for a third term next year in a state that Obama barely carried last November, though Obama became the first Democratic presidential candidate to win it since 1964. Bayh has never lost in five statewide elections (as secretary of state, governor, and senator).
CONTINUED >>
From NBC’s Mike Viqueira
Process alert! But it's important... The House will include a provision in its version of the budget that would protect the president's health-care initiative from a filibuster, according to a very senior House Democrat.
Health care will be the only provision to enjoy such protection, termed, "reconciliation."
It’s important because the Senate, where the actual filibusters happen, is not expected to include the procedure in its budget, in part, owing to the fact that many senators, some Dems included, do not think it is appropriate use of the technique.
Republicans have spoken darkly of legislative mayhem as a means of retribution if Dems go down that path.
CONTINUED >>
From NBC's Claire Luke WASHINGTON -- Since Rush Limbaugh said he wants President Obama to fail, Republicans have been asked repeatedly if they share the sentiment. Louisiana Gov. Bobby Jindal , unprompted, offered his answer .Bush fail. CONTINUED >>
From NBC’s Pete Williams
FBI Director
Robert Mueller told Congress today that the bureau is struggling to keep up with an explosion of investigations into corruption by public officials and mortgage fraud.
He told a Senate committee today that the FBI has a surprising 2,500 public corruption investigations open now -- up nearly 60 percent since 2003. In just the past two years, FBI investigations have brought about more than 1,600 convictions of federal, state and local public officials.
Mueller said the FBI's mortgage fraud load has more than doubled in the past three years, to more than 2,000 cases from 700. The FBI has more than 566 open corporate fraud investigations, including some directly related to the current financial crisis, he said.
But Mueller said these cases are putting a strain on the FBI, which has been forced to shift resources from other criminal investigations. The number of agents investigating mortgage fraud has risen from 120 to 250 in the past two years. And it's clear that will have to grow more. Since last fall, nearly 29,000 reports of potential fraud have been filed, he said.
From NBC's Mark Murray Kent Conrad ), Nebraska (Ben Nelson ), Virginia (Mark Warner ), Indiana (Evan Bayh ), Arkansas (Blanche Lincoln and Mark Pryor ), Louisiana (Mary Landrieu ), Alaska (Mark Begich ), North Carolina (Kay Hagan ), and New Hampshire (Jeanne Shaheen ).
The ad also will run on cable and broadcast in DC.
Largely repeating President Obama's message from last night, the ad goes: "For eight years, the Bush a dministration turned our economy into a house of cards. Last fall that house came tumbling down. Now President Obama has drawn up a budget blue print that will rebuild our economy on a solid foundation."
Said Tom McMahon, the group's acting executive director: "This ad is designed to engage the American people in the process of bringing about the transformational change they voted for in November by contacting their elected representatives and asking for their help in putting our country on the road to prosperity."
The script: ANNCR: For eight years, the Bush Administration turned our economy into a house of cards.
From NBC's Mark Murray Barack Obama has endorsed a political candidate and is urging his supporters to vote for him.
In an email to supporters in Upstate New York, Obama has asked them to back Democrat Scott Murphy in his race on Tuesday against Republican Jim Tedisco . The two men are vying to fill the congressional seat vacated by Kirsten Gillibrand (D), who replaced Hillary Clinton in the Senate.
"I'm writing to you now because you have the opportunity to make a big impact on my efforts to bring about a lasting economic recovery," Obama writes. "Today I'm announcing my support for Scott Murphy... To restore our economy and build a foundation for lasting prosperity, I'll need Scott's help. This week, Scott needs yours."
Interestingly, Tedisco has embraced the president somewhat in this traditionally GOP-leaning congressional district that Obama narrowly won in November. “Like the president says: In these difficult times, we're not Republicans or Democrats. We're Americans,” Tedisco says in one of his ads .
From Chuck Todd, Mark Murray, and Domenico Montanaro The Obama ocean-liner : More than anything else, Obama’s news conference last night resembled a campaign TV ad -- one in which the serious candidate talks directly to the camera (although this one went on for nearly an hour, and it sometimes was interrupted by tough questions from the press). Indeed, how many times did we hear Obama mention his budget’s top priorities: education, energy, health care, reducing the deficit? Perhaps the most striking thing was the president linking his budget to the current economic crisis. (“The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this 10 or 20 years from now.”) He preached persistence and pleaded patience. (“We'll recover from this recession, but it will take time, it will take patience.”) Rahm Emanuel’s grin, in fact, might have said it all at the end of the news conference, when Obama turned a question on Middle East peace back into a defense of his first two months in the White House. “I think that you look back four years from now, I think hopefully people will judge that body of work and say, ‘This is a big ocean-liner. It’s not a speedboat. It doesn’t turn around immediately. But we’re in a better, better place because of the decisions that we made.’”
Video: Obama asks for patience on his plan to fix the economy at his new conference last night. ***
With friends like these… : Of course, Obama is going to need a lot of persistence and patience when he sits down with Senate Democrats on Capitol Hill at 1:00 pm ET today (closed press). His budget is not going over well some of his own party's deficit hawks, who are already signaling that they want to cut major portions of his budget like his middle-class tax cut. Also today, Obama meets with the UN Secretary General at 10:45 am; he and Biden deliver remarks to commemorate Greek Independence Day at 5:05 pm; and then he hits two DNC fundraisers in the evening -- his first two fundraisers since becoming president.
*** Other quick thoughts about last night : Despite all the past week’s attention on the AIG bonuses, that subject barely came up at last night’s press conference… The only true foreign policy question came at the end (re: Middle East peace)… He took several questions from non-traditional media outlets (Univision, Ebony, Stars and Stripes) and bypassed some of the big newspapers (NYT, WashPo, LATimes, WSJ)… His answer on the race question was very interesting (“At the inauguration, I think that there was justifiable pride on the part of the country that we had taken a step to move us beyond some of the searing legacies of racial discrimination in this country, but that lasted about a day”)… And his defense of paring charitable tax deductions for the well-off might have been the most fascinating exchange of the evening.
*** Card check’s death? Did the legislative battle over the Employee Free Choice Act (a.k.a. “card check”) end before it truly began? GOP Sen. Arlen Specter’s decision yesterday to oppose the bill, even though he voted for cloture on the measure in ’07, dealt a blow to organized labor, denying them the 60 votes they need to end debate -- even if Al Franken ends up joining the Senate. We can tell you this: The White House appears to be happy (but very quietly so) to have this debate out of the way. No doubt they were for it. But it was always more of a Biden cause than a Barack cause. At this point in time, with everything else on their plate, sticking a finger in business’ eye wasn’t something the White House was looking forward to. Would Obama have signed it? Yes. But he doesn’t have to worry about it now, at least maybe not until 2011.
*** Specter in trouble? Even though Arlen Specter supported the card-check legislation in ’07, there’s a reason why he isn’t now -- he likely has a tough GOP primary on his hands next year. And, according to a new Quinnipiac poll , that primary might be even tougher than we imagined. The poll shows conservative Pat Toomey topping the more moderate Specter by a whopping 14 points in a hypothetical Pennsylvania GOP primary, 41%-27%. Overall, Specter gets relatively high marks from Pennsylvania voters. His fav/unfav is 45%-31%, but among Republicans, it’s just 29%-47%; among Democrats, it’s 60%-16% (who would have thought that?). Per the poll, the reason why Republicans are upset with Specter: his support for Obama’s stimulus. Specter, of course, narrowly beat Toomey in a GOP primary in 2004. And while he has said he will remain a Republican, does Specter start second-guessing that decision after this poll? And with the prospect that Toomey might defeat Specter in a GOP primary, how many Pennsylvania Democrats will now start thinking about jumping into this Senate race?
*** AIG, yeah you know me : Be sure not to miss the letter in today’s New York Times from Jake DeSantis, executive VP of AIG’s financial products unit, who tells AIG CEO Edwards Liddy 1) that he's resigning from AIG; 2) that he’s giving his bonus money to those suffering from the economic downturn; and 3) that he and his co-workers have been unfairly maligned. “I am disappointed and frustrated over your lack of support for us. I and many others in the unit feel betrayed that you failed to stand up for us in the face of untrue and unfair accusations from certain members of Congress last Wednesday and from the press over our retention payments, and that you didn’t defend us against the baseless and reckless comments made by the attorneys general of New York and Connecticut.” It’s a fascinating read.
*** South of the border : Also today, Secretary of State Clinton travels to Mexico, where she meets with President Calderon. There’s also a Senate hearing on the border violence. Homeland Security Secretary Napolitano, as well as Deputy Secretary of State Steinberg and Deputy Attorney General Ogden testify at 9:30 am ET. Clinton's visit comes one day after Obama unveiled his plan to help curb the drug violence in Mexico, and as the New York Times front-pages that the administration’s next big foreign policy challenge could be next door. "Mexico’s economy is being dragged down by the recession to the north. American addicts have turned Mexico into a drug superhighway, and its police and soldiers are under assault from American guns. Nafta promised 15 years ago that Mexican trucks would be allowed on American roads, but Congress said they were unsafe.”
Video: Obama discusses how the U.S. is helping control the border with Mexico. Countdown to NY-20 special: 6 days
Countdown to Obama’s 100th day: 35 days
Countdown to NJ GOP primary: 69 days
Countdown to VA Dem primary: 76 days
Countdown to Election Day 2009: 223 days
Countdown to Election Day 2010: 587 days
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The Boston Globe says Obama "urged the nation last night to be patient, pledging a presidency of perseverance that he said will eventually result in recovery from the recession." Washington Post : “Although he spoke sharply once in response to Republican criticism, Obama struck a tone of common purpose throughout his second prime-time news conference, urging the country to be patient as he works on issues as divergent as the Israeli-Palestinian conflict and the malign impact of lobbying in Washington.”
The New York Times says the Obama who appeared at last night’s presser was the “familiar character from early in the campaign. Placid and unsmiling, he was the professor in chief, offering familiar arguments in long paragraphs…Speaking past the reporters in the room to the tens of millions of viewers tuning in at home, he tried to reassure the nation that he could solve the crisis that has gripped the economy for more than a year. ‘We’re beginning to see signs of progress,’ he said, calling for a ‘renewed confidence that a better day will come.’”
The Hill : "President Obama said Tuesday night that the budget he has presented to Congress is 'inseparable' from economic recovery and will ensure that the nation does not face a similar economic crisis '10 or 20 years from now.'"
The Wall Street Journal : “Mr. Obama largely focused on defending his domestic economic proposals. He repeatedly took openings to make the case that the government should spend now on renewable-energy development, education and a health-insurance overhaul that would put the economy on a sounder footing once it recovers.”
CONTINUED >>
Geithner and Bernanke yesterday "argued Tuesday for unprecedented powers to regulate and even take over financial goliaths whose collapse could imperil the entire economy. President Barack Obama agreed and said he hoped 'it doesn't take too long to convince Congress.'" expects to get that authority .
Third time's the charm, we guess. Gary Locke was confirmed as Obama's commerce secretary. “Locke, 59, the nation's first Chinese-American governor, was approved by a voice vote and has promised to focus on job creation and to closely oversee the 2010 census.” don’t miss this … "Bill Clinton's White House era is finally getting the Tinseltown treatment. Dennis Quaid will play Bubba and Julianne Moore will portray Hillary in a new movie tentatively titled "Special Relationship," from Academy Award-nominated British screenwriter Peter Morgan, the Daily News has confirmed."
“Sen. Kent Conrad (D-N.D.) has proposed slashing President Obama’s discretionary spending by half with a budget resolution that is expected to fracture the Democratic Conference,” The Hill writes. “The Senate Budget Committee chairman outlined his plan privately before colleagues at Tuesday’s closed-door policy lunch — one day ahead of Obama’s visit to Capitol Hill to discuss the topic — and publicly at a late-afternoon news conference.”
“Conrad’s budget resolution does not set aside a fixed amount of money for the president’s healthcare reform or cap-and-trade proposals. Instead, it creates “deficit-neutral” reserve funds that give Senate and House committee chairmen a free hand to craft their own proposals as long as they do not add to the deficit.”
Politico adds, “Obama, who will come to the Capitol Wednesday to meet with Senate Democrats, sought to downplay the differences at his White House news conference hours after Conrad’s announcement. But he was firm that he expects the final budget plan to foster ‘serious efforts at healthcare reform’ and his major investments —including energy and education—were ‘inseparable to this recovery.’”
MoveOn has radio ads up in districts and states of oft-targeted "moderate" Democrats, urging them to support President Obama's budget. The ads mention Sens. Jeanne Shaheen, Mark Warner and Evan Bayh, as well as Reps. Gabrielle Giffords, Harry Mitchell, Jason Altmire, Joe Donnelly, Chris Carney, Baron Hill and Mike McIntyre.
Hotline has more on the radio ads.
CONTINUED >>
About an hour before President Obama took to the podium for his primetime news conference, Louisiana Gov. Bobby Jindal was back in town for the NRCC's largest fundraiser of the year.
Roll Call : "An energetic Jindal told 1,200 partisans that Republicans are finished 'navel gazing' on the direction of their party and must be prepared to rebound. 'We need to worry more about fixing our country and helping to chart America’s future,' Jindal said."
More: "A particularly partisan Jindal addressed the crowd minutes before President Barack Obama held a nationally televised press conference. Jindal did not mince words, criticizing the Democrats for liberal spending practices and plans to expand government. 'I don’t know about you, but this doesn’t look like the Barack Obama we met on the campaign trail,' he said. 'I don’t know about you, but I liked that guy a lot better.'"
The event
took in more than $6 million , according to the group. That's about a million more than officials say they expected.
MINNESOTA : "Ex-Sen. Norm Coleman (Minn.), at the Capitol on Tuesday to lunch with his former GOP colleagues, said he does not expect to take his election recount battle all the way to the Supreme Court,"
Roll Call reports. "’I’m not anticipating being across the street,' Coleman said, pointing toward the Supreme Court building as he stood just off the Senate floor. 'In the end for me, fundamentally, it’s about making sure every vote is counted.'"
The Hill looks at Republicans' chances for the ‘09 Virginia and New Jersey gubernatorial races. It calls them "golden opportunities." NEW YORK : In the NY-20 special election, Jim Tedisco (R) and Scott Murphy (D) debated last night . “Tedisco sounded off on his experience; ‘I am the only candidate in this race with a proven record of public service who has represented upstate New York.’ Scott Murphy touted himself a not only a successful business man but also a family man. ‘A big part of the reason why I’m running is because of my big family and my ties here,’ says Murphy.”
More: “The two spoke on a wide range of topics from negative campaign ads, to AIG bonuses and the economy. On multiple occasions Murphy referenced his support of the stimulus bill. ‘What I’ve said from the beginning is that I’ve got the experience from working with small businesses to get the economy moving first step is President Obama's recovery act.’ Tedisco rebutted saying he supports the stimulus bill, but not everything in it.”
The hits keep on comin' for Gov. David Paterson. The New York Post has him on the cover : "Gov orders 8,900 layoffs."
From NBC's Mark Murray President Obama will deliver at his news conference just three hours from now.
Per the excerpts, Obama will (as expected) push for his budget. "The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this ten or twenty years from now. We invest in the renewable sources of energy that will lead to new jobs, new businesses, and less dependence on foreign oil. We invest in our schools and our teachers so that our children have the skills they need to compete with any workers in the world."
He'll also discuss cutting (eventually) the deficit: "At the end of the day, the best way to bring our deficit down in the long run is not with a budget that continues the very same policies that have led to a narrow prosperity and massive debt. It’s with a budget that leads to broad economic growth by moving from an era of borrow and spend to one where we save and invest."
And he'll ask the country for patience in getting out of the recession: "We will recover from this recession. But it will take time, it will take patience, and it will take an understanding that when we all work together; when each of us looks beyond our own short-term interests to the wider set of obligations we have to each other -- that’s when we succeed. That’s when we prosper. And that’s what is needed right now. So let us look toward the future with a renewed sense of common purpose, a renewed determination, and most importantly, a renewed confidence that a better day will come."
From NBC's Mark Murray Arlen Specter's decision to oppose the Employee Free Choice Act. "Today’s announcement by Sen. Specter -- a sponsor of the original Employee Free Choice Act who voted for cloture in 2007 -- is frankly a disappointment and a rebuke to working people, to his own constituents in Pennsylvania and working families around the country."
Sweeney continues, "The fact is the Employee Free Choice Act has more support than ever -- large majorities in both houses of Congress, the President and Vice President, 73 percent of the public. We will continue to work with Democrats and a number of Republicans to create commonsense solutions to the decades of corporate power. We do not plan to let a hardball campaign from Big Business derail the Employee Free Choice Act or the dreams of workers."
From NBC's Mark Murray
It looks like it after Sen. Arlen Specter (R) signaled today that he would vote against cloture on the measure, denying Democrats 60 votes to break a GOP filibuster on the legislation -- even if Al Franken gives Democrats a 59th vote. Specter was the only Republican to vote for cloture on the legislation in 2007.
"The problems of the recession make this a particularly bad time to enact Employees Free Choice legislation. Employers understandably complain that adding a burden would result in further job losses," Specter said on the Senate floor. "If efforts are unsuccessful to give Labor sufficient bargaining power through amendments to the [National Labor Relations Act], then I would be willing to reconsider Employees' Free Choice legislation when the economy returns to normalcy."
Politics, of course, hovered over Specter's decision, especially since he's up for re-election in 2010. Organized labor floated the idea that it would back the Republican in a general election if he supported card check. But supporting the legislation would also potentially hurt him in a GOP primary.
CONTINUED >>
VIDEO: Chuck Todd previews Obama's second prime-time news conference tonight . The budget and the economy will dominate, and "Obama wants to get back on message."
Produced by NBC's Athena Jones
From NBC's Athena Jones
WASHINGTON -- The drug violence gripping Mexico is not just a Mexican problem, the Obama administration made clear Tuesday when it announced $700 million would be devoted to stepped-up border security efforts this year.
The plan, dubbed the Southwest Border Security Initiative, aims to improve screening and technology to help reduce arms smuggling and drug trafficking in border regions.
It would increase personnel and improve intelligence gathering and coordination with state, local and Mexican law enforcement officials, so that the "rule of law is upheld and enforced" in border areas, Homeland Security Secretary Janet Napolitano told reporters during a press conference that was added to the White House schedule this morning.
CONTINUED >>
From NBC's Mike Viqueira
Speaker
Nancy Pelosi says that if AIG folks are really coughing up their bonuses, "then we have accomplished what we set out to do."
Recall that it was Pelosi who last week rushed the 90% bonus tax to the floor of the House, only to see congressional ardor for legislation fade this week in the Senate. It now appears that the Senate won't even get to its own version of the "clawback" measure until late in April, after the spring recess.
Pelosi says the goal was "to get the taxpayer money back," yet it is unclear just how much will be returned by AIG bonus recipients.
ON another front, Pelosi is supportive of Geithner's proposal for new power to "unwind" companies like AIG through a broadening of federal power. "It is a good step in the right direction," she said.
From NBC's Domenico Montanaro
On Day 140, the FEC ruled that both Republican Norm Coleman and Democrat Al Franken can go back to the well and re-tap maxed out donors. Both sides lobbied for this.
"For instance, a person who gave the maximum contribution of $30,400 to a national Democratic or Republican party organization this year can now give the same maximum to a party recount and trial fund for one of the candidates," the Minneapolis Star-Tribune reports. "The party organization can use the fund to help the candidate pay his expenses. Similarly, a political committee could give another $15,000 to such a fund even if it gave the maximum amount during the campaign."
And get this: "[T]he candidates are believed to have raised at least $11 million combined since the November election to pay for the recount and trial. That's about one-fourth of what they raised and spent during the entire 2007-08 election cycle. Election law experts estimate that each of the six or more lawyers actively working on the case made about $500 an hour while in the courtroom."Specter to vote against card check? Accentuating why Democrats want that 60th senator (and Republicans want to delay, delay, delay), there are a couple of reports that say Pennsylvania Sen. Arlen Specter "will vote against a cloture motion to limit debate on the Employee Free Choice Act," Congress Daily writes, citing business sources.
What that essentially means is that he would filibuster card check as it is currently written. This could be a big blow to advocates of the legislation that would, in part, make it easier for workers to form a union.
From NBC's Domenico Montanaro tongue-in-cheek post on Elizabeth Kucinich participating in a local version of "Dancing with the Stars," but now her husband, congressman and presidential also-ran Dennis Kucinich , is plugging the show and urging people to vote for her... on Twitter.
"D-OH Dennis Kucinich Please vote for Elizabeth in week 2 of Cleveland Dancing show. Vote poll is half way down right side."
Just so you know.
Elsewhere in the Twittersphere:Zach Wamp makes this claim: "The democrat budget spends too much, borrows too much and taxes too much. More debt in this budget than last 43 Presidents combined."
Bill Shuster wants you to help him decide on whether Treasury Secretary Tim Geithner should keep his job: "Added a new poll on my blog - should Geithner resign or should he stay? Stop by and vote."
John Ensign still wants you to be his friend: "Help me reach 900 Facebook supporters tonight (just 10 away), by inviting your friends to support me."
From NBC's Pete Williams
After a morning of very spirited argument about freedom of speech at election time, including banning books, the U.S. Supreme Court seemed prepared to rule in favor of the conservative backers of "Hillary: The Movie" -- and make a new exception to the laws restricting campaign ads.Clintons wanted to put on cable TV, as a video-on-demand offering, just as the primaries were heating up in January 2008. The federal government blocked it, deeming the film nothing more than a glorified attack ad, improperly paid for in part by corporate contributions. That ran afoul of the McCain -Feingold law intended to keep corporate money out of politics, even though the corporate contributions to the film came from a small non profit.
Video: “Hillary: The Movie,” produced by a former Republican congressional aide, is being debated in the Supreme Court. NBC’s Pete Williams reports. The moviemakers claimed that the ban was an unconstitutional restriction on free speech, and a majority of the Supreme Court appeared to agree.CONTINUED >>
From Chuck Todd, Mark Murray, and Domenico Montanaro *** Meeting the press, again: The last -- and only other -- time President Obama conducted a primetime news conference was on Feb. 9, the very day he traveled to Indiana to sell his stimulus plan. Since that newser six weeks ago, the president signed that stimulus into law (2/17); announced he was redeploying 17,000 troops to Afghanistan (2/17); unveiled his $3.6 trillion budget (2/26); announced his plans to bring home troops from Iraq in 19 months (2/27); began facing the furor over the AIG bonuses (3/16); and went on the road to sell his budget (3/18). Indeed, tonight’s news conference comes at a crucial time for Obama. While his poll ratings have held steady, the public's anger over bailouts and the AIG bonus mess in particular have created a volatile political environment. “The American public is rooting for him. They want him to succeed,” Democratic pollster Peter Hart told NBC. “But against that, they want answers.” Before the news conference, which begins at 8:01 pm ET, Obama meets in the morning with Australian Prime Minister Kevin Rudd. Also today, the president calls the space station, and we might learn more about the administration’s plan about the drug violence along the U.S.-Mexico border.
Video: President Obama is taking his economic message directly to the people with his second prime-time news conference since becoming president. NBC’s Chuck Todd reports. ***
A lesson learned? The
new polls out in the last few days all seem to agree on one thing: AIG has not hurt Obama personally. Instead, it has hurt Washington, Wall Street, and some views on the economic fixes -- but not the president. The lesson the White House will take from these polls? They aren't risking over-exposure; they probably believe that had the president NOT done this six-day media blitz, he would have been more singed on AIG than he was. But he was out there talking all week about it and wasn’t hunkered down at the White House. Look back at this last week and realize this will be a lesson the Obama White House learns.
*** From Wall Street goat to genius? Six weeks ago, Treasury Secretary Geithner got panned after his first policy rollout -- and then pretty much every day after that. But after unveiling yesterday’s toxic-asset plan, and with the Dow jumping up almost 500 points, Geithner has suddenly turned into a Wall Street hero, at least for now. As Jackie Calmes writes, “This time President Obama directed some of the stagecraft. This time … Geithner fleshed out the substance of their long-anticipated program to remove banks’ toxic assets and revive the financial system. And this time the reaction was widely positive, giving the embattled Mr. Geithner a critically needed boost.” But it’s important to keep this in mind: While the press will continue to watch the market’s daily reactions to the administration’s policies, what truly matters is what the Dow and the economy in general look like come the summer and fall of 2010. And one other risk: Will some on Main Street look at Wall Street's reaction and wonder if this new banking plan is TOO pro-Wall Street?
*** Slowly but surely: One potential question that Obama might receive tonight -- on the dearth of high-level appointees at the Treasury Department -- might be a tad easier for him to answer now that he announced yesterday that he’s filling three of the top four jobs underneath Geithner. The picks: Neal Wolin (deputy secretary), Lael Brainard (undersecretary for international affairs), and Bush appointee Stuart Levey (undersecretary for terrorism and financial intelligence), who will remain at the post he’s held since 2004. These picks come as government expert Paul Light writes a New York Times op-ed arguing that Congress needs to do a better job speeding up the confirmation process. Light also makes this point: While the Senate has confirmed just one Treasury appointee, Geithner is hardly alone at Treasury. “He has an at-will chief of staff, deputy chief of staff, press officer, three special counselors and 50 at-will appointees working in his executive suite.” Still, something needs to give on the confirmation process. The Senate Finance Committee is holding up the vetting process at an unprecedented rate.
*** Regulators, mount up: Speaking of the Treasury Department, Geithner and Fed Chairman Ben Bernanke will testify on AIG oversight before House Financial Services Committee beginning at 10:00 am ET. During his testimony, Geithner will urge Congress to pass legislation that would give the federal government new regulatory powers, including “resolution authority,” to help ensure that key financial institutions that fail don’t pose risk to the country’s financial system. “We must ensure that our country never faces this situation again,” Geithner is expected to say. “To achieve that goal, the administration and Congress have to work together to enact comprehensive regulatory reform and eliminate gaps in supervision. All institutions and markets that could pose systemic risk will be subject to strong oversight, including appropriate constraints on risk-taking. Regulators must apply standards, not just to protect the soundness of individual institutions, but to protect the stability of the system as a whole.” This new agency could be a public way for the Treasury Department to appoint a secretary of AIG or an AIG czar. Keep this in mind: AIG has received more government guarantees than the annual budgets of State and Homeland Security COMBINED!!!
*** Global author: In advance of the upcoming G-20 meeting in Europe, the president has written an op-ed running in more than 30 countries (including the U.S.) that calls for bold international action to confront the global economic crisis. “Our leadership is grounded in a simple premise: We will act boldly to lift the American economy out of crisis and reform our regulatory structure, and these actions will be strengthened by complementary action abroad,” he says. “Through our example, the United States can promote a global recovery and build confidence around the world; and if the London Summit helps galvanize collective action, we can forge a secure recovery, and future crises can be averted.”
*** 2012 watch: Last night, DNC chair Tim Kaine announced he was appointing 37 members -- including Jim Clyburn and Claire McCaskill as co-chairs -- to look at the Democratic presidential primary calendar and nominating process. (Obama campaign manager David Plouffe also is a member of the commission.) Question here: Do we really think Obama's DNC is going to back any plan that costs Iowa or South Carolina its place in the calendar? For those folks in Michigan and Florida looking for a role early in the process, they may have to start asking for a rotation of some sort beginning in 2016 -- not 2012. Then again, the length of the primary process in 2008 could help sell some states and state party leaders that earlier isn't necessarily better. In fact, could this lead to a push to guarantee longer primary seasons? The quick end of the 2008 GOP primary campaign doomed McCain.
*** More 2012: Louisiana Gov. Bobby Jindal headlines a fundraiser for the National Republican Congressional Committee, which takes place at the National Building Museum in DC at 7:00 pm ET. Remember the last time Jindal was the main GOP responder to an Obama event in primetime?
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Previewing tonight’s big political event, the AP says that “Obama is virtually certain to use Tuesday's prime-time news conference to continue an effort that began over the weekend: cooling the anti-AIG ferocity, now that it threatens to undermine his efforts to bail out the nation's deeply troubled financial sector.”
The Washington Post’s Cillizza : “Expect Obama to follow the outline utilized in his first prime-time press conference on February 9 -- introductory remarks designed to frame the context for those watching at home followed by a dozen (or so) questions from reporters. (In his first press conference Obama took 13 questions -- five of which centered on the economy.) Obama likely will filibuster a question or two, spending considerable time expounding on his economic policies in order to limit the total number of questions asked.”
In advance of tonight’s press conference, the National Republican Senatorial Committee has released a Web video -- entitled “Change We Can Believe In?” -- that contrasts Obama’s rhetoric on the campaign trail with some of his actions as president.
Meanwhile, the liberal Campaign for America’s Future, along with liberal blogger Jane Hamsher, will host a conference call at 11:00 am ET to announce the launch of a campaign to target conservative Democrats who are opposed to Obama’s budget.
CONTINUED >>
The New York Times front-pages, “The Obama administration’s new plan to liberate the nation’s banks from a toxic stew of bad home loans and mortgage-related securities is bigger and more generous to private investors than expected, but it also puts taxpayers at great risk… Investors reacted ecstatically, with all of the major stock indexes soaring as soon as the markets opened. The Dow Jones industrial average ended the day up nearly 500 points, or 6.84 percent, to 7,775.86. The thundering response was the mirror opposite of the bitter disappointment by investors when the plan was first vaguely described on Feb. 10.”
The cover of the New York Daily News : "Wow! That's better." Subhead: "Bam's bank plan sparks Dow rally; AIG execs start giving back OUR cash."New York Post goes all glass is half empty on it's cover: "Half A$$ AIG." Subhead: "Giving back on 50% of bonus bucks." some economists didn't : "Harvard professor Kenneth Rogoff, a former International Monetary Fund chief economist, said the government is 'trying to keep the banks going, trying to hope they'll recover profitability.' He said the plan fails to address the fundamental problem -- that some banks are insolvent and should not be propped up."
The Washington Post adds, ”But even as markets exulted, conflicting interests among the program's participants -- banks, investors and taxpayers -- were emerging, leaving in doubt the fate of a program meant to revive bank lending and in turn reinvigorate the overall economy.”
The AP on Bernanke’s and Geithner's testimony on the Hill today: They make "a rare joint appearance at a congressional hearing, ostensibly to take a scolding over the handling of bonuses at AIG." Also expect them to ask about the new toxic asset relief program.going in with (another) plan . He "will face tough questions from lawmakers on Tuesday as he spells out the basics of the Obama administration's plans to reshape financial regulation at a high-profile congressional hearing," Reuters says.
Meanwhile, "President Obama and Senate Democrats have buried a bill passed last week by the House that would have heavily taxed executive bonuses at bailed-out firms," The Hill writes. "Despite the public outcry over $165 million in bonuses awarded at troubled insurer AIG, Senate Majority Leader Harry Reid (D-Nev.) showed little inclination Monday to bring the explosive issue to the floor this week or next. Instead, Reid is likely to delay action on executive compensation until late April, after the Senate returns from a two-week recess starting April 4."
CONTINUED >>
GOP WATCH: Go back to your bunker?
Roll Call: "Republican National Committee Chairman Michael Steele appears to have bought himself at least a modicum of breathing room from his critics for the time being, thanks in part to his decision to essentially drop out of the public spotlight and to a poor showing by the Democratic National Committee in the February fundraising race. In the first full month under Steele’s watch, the RNC raised $5.1 million, which is $2 million short of the mark set by former RNC Chairman Mike Duncan in February 2007, his first full month on the job, several Republicans pointed out. But with the DNC -- which should be reaping the financial benefits from a newly minted president with high approval ratings -- reporting a haul of only $3.2 million in February, Steele’s performance has been seen as positive by many in the GOP."
And “Todd Herman former Microsoft and msnbc.com employee and streaming media expert, has been named the Director of New Media for the Republican National Committee. Herman founded and ran SpinSpotter, a startup that provides tools to detect spin in news stories.”
COLORADO: "Republicans firmly believe that the conservative 4th district, which had elected a Republican Member to Congress for 37 years before Markey’s victory, should still be in GOP hands,"
Roll Call says. McCain narrowly won the district. The top GOP candidate it seems is state Rep. Cory Gardner. The state party appears ready to paint Markey as a "toady" for Nancy Pelosi. But will running against Pelosi work for a state party that has seen lots of recent losses in a growing state?
NEW YORK: The DCCC launched its
latest ad affront against Tedisco, accusing him of voting "against middle-class property tax relief during his 26 years in the state Legislature. ‘But Tedisco DID help a wealthy mortgage executive convicted of millions in fraud ... asking the judge to go easy on him,' an announcer in the spot says. 'Then the convicted felon’s company became one of Tedisco’s top campaign contributors. That’s Jim Tedisco. Just another Albany politician.'" The NRCC launched a Web ad hitting Murphy on his support for the stimulus.
New York Gov. David Paterson takes another hit in the
New York Daily News . "Now, when we need a strong governor more than at any time since the Great Depression, when we face a historic budget crisis and the possibility of a $2.50 subway fare, we have a guy who is at most half what he should be," the paper writes. When we need resolve, he waffles. When we need honesty, he fibs. When we need competence, he bungles. When we need leadership, he mumbles."
From NBC’s Christopher Wilson As reported here on First Read Friday , President Obama will be speaking at the University of Notre Dame commencement ceremony on May 17th. While the president will also be speaking at the Naval Academy and Arizona State, those appearances haven’t caused as much uproar as his trip to South Bend, Ind.The Shirt or whether it’s proper to chant “Sucks” at sporting events -- was expanded to cover a lively debate over whether Obama should be speaking.
CONTINUED >>
From NBC's Athena Jones
The Treasury Department released a long-awaited plan to help deal with the troubled assets at the root of the credit crunch that's crippling the economy.
The plan would use a combination of public and private money to encourage the purchase of as much as $1 trillion in bad loans, or "toxic assets" -- which the administration calls "legacy assets" from banks.
Video: Geithner explains details of the Obama administration's plans to mock up toxic assets. "We believe this is one more element that is going to be absolutely critical in getting credit flowing again,"
President Obama told reporters after his daily economic briefing, where he was joined by Treasury Secretary
Timothy Geithner , FDIC chair
Sheila Bair , Fed chair
Ben Bernanke , and other economic advisers. "It's not gonna happen overnight. There's still great fragility in financial systems, but we think that we are moving in the right direction."
CONTINUED >>
From Chuck Todd, Mark Murray, and Domenico Montanaro Geithner in the spotlight : Treasury Secretary Tim Geithner steps back into the political spotlight today, and he’s no doubt hoping for a better reception than his previous trips onto the political stage. Today, Geithner will outline perhaps the most important proposal to getting the economy back on track: the plan to buy up as much as $1 trillion in troubled assets and mortgages. First, he holds a pen-and-pad briefing with reporters (which began at 8:45 am ET); he’ll appear in front of cameras (pool spray) with President Obama, FDIC chair Sheila Bair, and Fed chair Ben Bernanke later this morning; and he’s penned a Wall Street Journal op-ed on today’s plan. Of course, most of the recent chatter surrounding Geithner has been about if he’ll step down. But that’s about as likely as our chances of winning our NCAA pools (who else had Wake Forest going to the Final Four?). Not only did Obama tell “60 Minutes” that he’d refuse Geithner’s resignation, does anyone -- no matter your political views -- really believe it’s healthy for the financial system to have the president fire his Treasury secretary at this moment? Also, is it smart for a president in his first 100 days to ask Congress for a do-over on his Treasury pick? Imagine that confirmation hearing; it's political suicide. Bottom line: Common sense dictates that this is a far-fetched idea, and the focus on his future seems like a waste of time.
Video: Geithner plans to unveil a new phase of the bank rescue plan. ***
The AIG complication : What is perhaps most interesting about today’s toxic-asset plan is how the AIG bonus story has made some investors wary about the plan. “Some of them have told administration officials that they would participate only if the government guaranteed that it would not set compensation limits on the firms,” the
New York Times writes. “The executives also expressed worries about whether disclosure and governance rules could be added retroactively to the program by Congress.” More: “Administration officials took to the airwaves Sunday to reassure investors that the public would distinguish between companies like A.I.G., which are taking government bailout money, and private investment groups that, under this latest plan, would be helping the government take troubled assets off the books of some of the country’s biggest banks.” Meanwhile,
Paul Krugman criticizes the administration’s toxic-asset plan. For those who think Krugman is turning on Obama, here’s this friendly reminder: When Krugman fully embraces something Obama’s doing, it will be the first time. He's been anti-Obama since the start of the Democratic primary campaign, and has barely written a positive word about him. He's a straw man for conservatives to claim liberals are turning on Obama; he's actually never embraced the president.
Video: A crucial week awaits the Obama administration as it deals with banks, budgets, toxic assets and the AIG bonuses. ***
Clawing Back The Claw Back: Speaking of the AIG bonuses, it seems that President Obama has some concerns about Congress’ plan to claw them back by taxing them. Here’s what he told
“60 Minutes”: "Well, I think that as a general proposition, you don't want be passing laws that are just targeting a handful of individuals. You want pass laws that have some broad applicability. And as a general proposition, I think you certainly don't want use the tax code to punish people.” And the
Washington Post notes that the administration’s top economic officials “reacted coolly to congressional actions to recoup bonuses from financial firms through targeted taxes, with one adviser saying the approach may be a ‘dangerous way to go.’”
*** A GOP budget alternative? Last week, GOP leaders seemed to be disinclined to produce their own alternative budget. But GOP Rep. Mike Pence now says otherwise. Pence on ABC yesterday: "The House Republicans are going to come up with a budget alternative that is going to be built on fiscal restraint and getting this economy growing again." Asked if it will be a "comprehensive alternative," Pence replied: "It's going to be a comprehensive alternative. And let me tell you, after -- it's after months of runaway spending on the federal level. I mean, we saw last -- last year's Wall Street bailout, the part of -- auto bailout, and then we saw the so-called stimulus bill, then the omnibus bill." Was Pence on message with the rest of the congressional Republican team? Is McConnell ready for a full-fledged alternative? What about Cantor and Boehner? Pence is a principled guy, and we're guessing he's pushing for a full-fledged alternative while the more politically engaged members of leadership don't want to do this. *** UPDATE ***
*** Recyling TARP funds into campaign cash? Per Newsweek , some U.S. financial institutions that are currently receiving TARP funds are STILL making political contributions to Democrats and Republicans. “In recent filings with the Federal Election Commission, the political action committee for Bank of America (which got $15 billion in bailout money) sent out $24,500 in the first two months of 2009, including $1,500 to House Majority Leader Steny Hoyer and another $15,000 to members of the House and Senate banking panels. Citigroup ($25 billion) dished out $29,620, including $2,500 to House GOP Eric Cantor, who also got $10,000 from UBS which, while not a TARP recipient, got $5 billion in bailout funds as an AIG ‘counterparty.’ ‘This certainly appears to be a case of TARP funds being recycled into campaign contributions,’ says Brett Kappell, a D.C. lawyer who tracks donations.” It's amazing. We're doing a detailed analysis, which will be posted on First Read later today. But needless to say, in the month of February, thousands of dollars exchanged hands between financial institution PACs and members of Congress and the political parties. In fact, Bank of America on Feb. 17, 2009, gave $15,000 EACH to the DSCC, DCCC, NRSC and NRCC. Who’s dumber here -- the banks that are cutting political checks in this environment, or the members of Congress or political parties who are asking for them? And what's the difference between an AIG using taxpayer money to fulfill bonus contracts, and Bank of America taking taxpayer money and funneling some of it BACK to Washington in the form of campaign contributions? And you wonder why the country and the press are so cynical sometimes.
*** Judge Drudge : If you’re asking yourself how some of the lengthy Obama interviews -- like Leno or “60 Minutes” -- get reduced into gaffes about the Special Olympics or whether or not President Obama is laughing too much, look no farther than Drudge . As he did during the general election, he has been working overtime to paint the current president in the most negative light. So far, with Obama’s approval rating in high 50s, low 60s, it hasn’t worked -- yet.
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In a Wall Street Journal op-ed today, Treasury Secretary Tim Geithner outlines the administration’s plan to buy as much as $1 trillion in troubled assets and mortgages. “The funds established under this program will have three essential design features. First, they will use government resources in the form of capital from the Treasury, and financing from the FDIC and Federal Reserve, to mobilize capital from private investors. Second, the Public-Private Investment Program will ensure that private-sector participants share the risks alongside the taxpayer, and that the taxpayer shares in the profits from these investments. These funds will be open to investors of all types, such as pension funds, so that a broad range of Americans can participate. Third, private-sector purchasers will establish the value of the loans and securities purchased under the program, which will protect the government from overpaying for these assets.”
The New York Times over the weekend: “The three-pronged approach is perhaps the most central component of President Obama’s plan to rescue the nation’s banking system from the money-losing assets weighing down bank balance sheets, crippling their ability to make new loans and deepening the recession.”
Here are more articles on the plan.Washington Post , “Key details of the toxic asset purchasing program are not yet finalized, said officials in contact with the Treasury. Some expressed concern that the markets would expect too much out of Monday's announcement. When Treasury Secretary Timothy F. Geithner first sketched out the administration's rescue plan last month, he was criticized on Wall Street and on Capitol Hill for being too vague and creating uncertainty in the markets.”
It’s going to be a busy week for the Obama administration’s economic folks… They are “expected to announce new proposals for financial regulation, executive pay, accounting standards, the structure of the International Monetary Fund and other issues ahead of a summit of 20 major nations in London on April 2.”
CONTINUED >>
Some of the highlights of President Obama’s interview last night on “60 Minutes”: On whether Geithner should resign: “No. And he shouldn't. And if he were to come to me, I'd say, 'Sorry, Buddy. You've still got the job.' But look, he's got a lot of stuff on his plate. And he is doing a terrific job. And I take responsibility for not, I think, having given him as much help as he needs."
On Wall Street executives who might be upset with the Obama administration over executive pay: "I've told them directly, 'cause I've heard some of this. They need to spend a little time outside of New York. Because you know, if you go to North Dakota, or you go to Iowa, or you go to Arkansas, where folks would be thrilled to be making $75,000 a year without a bonus, then I think they'd get a sense of why people are frustrated.”
On Afghanistan: "Making sure that al Qaeda cannot attack the U.S. homeland and U.S. interests and our allies. That's our number one priority. And in service of that priority there may be a whole host of things that we need to do. We may need to build up economic capacity in Afghanistan. We may need to improve our diplomatic efforts in Pakistan."
On former Vice President Dick Cheney’s assertion that Obama’s recent actions, like calling for Gitmo’s closing, has made the U.S. less safe: "I fundamentally disagree with Dick Cheney. Not surprisingly. You know, I think that Vice President Cheney has been at the head of a movement whose notion is somehow that we can't reconcile our core values, our Constitution, our belief that we don't torture, with our national security interests. I think he's drawing the wrong lesson from history."
CONTINUED >>
The Hill says this is a "make-or-break week" for Obama's budget. Lawmakers from both sides were critical of some items and the House and Senate budget committees are expected to draft their own resolutions. But the most hyperbolic words were from Obama's former Commerce Secretary nominee, Judd Gregg, who said Sunday, “The practical implications of this is bankruptcy for the United States. There's no other way around it.” Really? No other way around it? announced an alternative . Labor unions and labor-backing congressmen rejected it.
"Rep. Debbie Wasserman Schultz (D-Fla.) told two Florida newspapers Saturday that she has secretly battled breast cancer for the past year, undergoing seven major surgeries as she worked full time in Congress and as a chief fundraiser for House Democrats." Roll Call dives into the Boehner-Cantor relationship. brushed off ethics charges against him . has decided to seek the chairmanship of the business-friendly New Democrat Coalition, sources with knowledge of the decision said."
The Minneapolis Star Tribune : “As the candidates await a verdict from the three judges who oversaw the trial [over the Coleman-Franken recount], expectations grow that the loser will appeal to the Minnesota Supreme Court. And that has stirred speculation over the effect a continued court battle would have on the reputations and political prospects of the candidates -- especially the one who comes up short. ‘It's either win or oblivion,’ said Hamline University Prof. David Schultz. ‘Whoever loses is viewed as the obstructionist, the person who held up Minnesota seating a senator.’”
“But Coleman has perhaps more to lose in the long term if he continues to wage an unsuccessful fight, said University of Minnesota political scientist Lawrence Jacobs. ‘The longer he stays in and fights, it diminishes his chances of running for governor, which seems like a real possibility,’ Jacobs said. ‘In some people's eyes there's just irritation that this has gone on. That's not necessarily fair. Norm Coleman's decision to enter the [trial] is entirely legitimate and appropriate.’”
"Senate Republicans for weeks have attacked Obama and Democrats on philosophical grounds typical of the liberal-conservative divide in Congress," Roll Call writes. "But last week, as the furor over AIG’s use of taxpayer funds to pay executive bonuses boiled over, top Senate Republicans played the competence card, signaling a broader case they intend to make against the president and the Congressional majority as midterm elections near." NEW YORK : Legislators are flooding the zone in NY-20 . Republican Aaron Schock made two stops for Jim Tedisco (R) on Sunday. Minority Whip Eric Cantor hosts a fundraiser for him in New York City today. New York Democratic Reps. Paul Tonko and Steve Israel were there on Sunday for Scott Murphy (D).
The latest controversy between Tedisco and Murphy -- Murphy’s answer that he opposes the death penalty, even for terrorists. cover : "Clueless Dave." Subheadline : Chaos and dysfunction ruled day when gov was Senate minority leader, bombshell reports says."
From NBC's Ken Strickland
While there was strong bipartisan support in House-passed version, it's unclear where most Senate Republicans stand. The Senate version on the tax bill would impose a 70% excise tax on all retention bonuses given since the beginning of this year. It would apply to companies that received federal bailout money, including AIG.
But is such a dramatic tax on a niche segment of the population constitutional?
"It is wrong," said Republican Judd Gregg in a statement today, "to propose to use the taxing authority of the government in a manner that is arbitrary, punitive, and targeted on a single group of people who they have deemed as having acted improperly." While not calling it "unconstitutional," Gregg's words seem to align with the sentiments in the Constitution. Addressing Congress directly it says, "No Bill of Attainder or ex post facto Law shall be passed." (Article 1, Sec 9.)
CONTINUED >>
From NBC's Athena Jones and Mark Murray President Obama will deliver commencement addresses at Arizona State (on May 13), Notre Dame (May 17), and the U.S. Naval Academy (May 22).
What do those first two addresses have in common? They're in battleground states -- Arizona and Indiana. While Obama didn't truly contest Arizona last year (because it's McCain home state), you can be certain he'll target it in 2012.
Video: Presidential prime-time address, fundraisers, Jindal's back and Meet the Press.
From NBC's Mark Murray today's news that the budget deficit, per the Congressional Budget Office, will top $1.8 trillion this year and will reach nearly $1.4 trillion in 2010 -- more than the Obama administration's estimate. John McCain in a statement: “The Congressional Budget Office report proves that the Administration has indeed engaged in a policy of generational theft. The CBO numbers show the reality of the fundamentally flawed assumptions of the president’s budget and make clear what it really is: a risky, debt-ridden threat to the nation."
Here's Sen. John Thune : “These numbers are staggering and prove that spending in Washington is out of control. It is unconscionable to borrow this much money from China and force American families and small businesses to cover the cost through higher taxes."
And House Minority Leader John Boehner : "We simply cannot continue to mortgage our children and grandchildren's future to pay for bigger and more costly government. Families and small businesses across America are making difficult budget decisions each and every day during this recession, and it's time for Washington to do the same. Unfortunately, the President's budget doesn't do that."
From NBC's Domenico Montanaro Howard Dean in the Boston Globe that we didn't include in this morning's First Read, but it's worth a read. The Globe's Sasha Issenberg went to England with Dean and notes that his embrace there (literally and metaphorically) "was far warmer than anything the former Vermont governor has felt recently from his domestic allies.
"After November's landslide, Obama let Dean move on from his four-year chairmanship of the Democratic National Committee, and bitter rivalries with some in Obama's circle have kept the former practicing doctor out of the three top administration posts committed to changing the healthcare system. 'Everybody likes to think they did it all by themselves,' Dean said in an interview. 'I don't believe in the great-man theory of history. You really have to see change as a continuum. It doesn't come in packets, it comes in waves. ... I didn't think any Democrat could win unless we reorganized the party dramatically," Dean said. "There were some famous dustups between me and people who are now in the administration. I don't regret any of them.'"
More: "Now, unlike virtually all the other leaders of the Democratic comeback, Dean is out of office. He is easing into an exile as a Democratic version of former House Speaker Newt Gingrich, who spent the Bush years operating as a freelance visionary and policy entrepreneur, a permanent creature of the political margins credited with having successfully plotted his party's recapture of power but not long trusted to actually wield it."
It does bring up the question of Dean's legacy, his bouts with Rahm and how much credit/ire he deserves. There's nothing quite like a discussion on Howard Dean to stir the passions. Have at it.
From NBC's Mark Murray President Obama announced today that lobbyists who meet with the administration to discuss projects connected with the recently passed stimulus will have to submit their conversations in writing, so they can be posted on the internet.
"If any member of my administration does meet with a lobbyist about a Recovery Act project, every American will be able to go online and see what that meeting was all about," Obama said. "These are unprecedented restrictions that will help ensure that lobbyists do stand in the way of our recovery."
In his remarks, Obama also defended his $3.6 trillion budget, which contains big increases in health-care, education, and energy spending. "It's a budget that makes hard choices about where to save and where to spend. Because of the massive deficit we inherited and the cost of this financial crisis, we are going through our books line by line so that we can cut our deficit in half by the end of my first term" -- which might be more difficult to achieve under the new Congressional Budget Office's projections.
"But," he continued, "what we will not cut are investments that will lead to real growth and real prosperity."
From NBC's Mark Murray In remarks to community bankers today in Phoenix, AZ, Fed chairman
Ben Bernanke
discussed what has dominated the news this week: executive pay for bankers.
He said that "poorly designed" compensation policies can jeopardize the health of the banking industry.
"Management compensation policies should be aligned with the long-term prudential interests of the institution, be tied to the risks being borne by the organization, provide appropriate incentives for safe and sound behavior, and avoid short-term payments for transactions with long-term horizons."
From Chuck Todd, Mark Murray, and Domenico Montanaro A stellar performance? Outside of his crack about the Special Olympics (more on that below), President Obama’s appearance on Leno last night was a big success for the White House, considering the criticism he was receiving going into the interview. As Washington resembles a zombie-horror movie -- with Congress eating banking executives, Republicans eating Democrats, and Democrats eating Democrats (Chris Dodd vs. Treasury) -- Obama gave perhaps his best explanation of the AIG crisis and those bonuses; he looked like the adult compared with Congress; and he bought his embattled Treasury secretary more time. Forty-eight hours ago, we might have agreed with House Minority Leader John Boehner that Geithner was on thin ice. But the White House has doubled down on their man. “This guy has not just a banking crisis; he's got the worst recession since the Great Depression, he's got an auto industry that has been on the verge of collapse,” Obama told Leno. “And he's doing it with grace and good humor.”
Video: NBC's David Gregory takes a look back at some of President Obama's most memorable moments on "The Tonight Show With Jay Leno." ***
But a “Special” gaffe? Yet one of the dangers of a president or political candidate embarking on a non-traditional media blitz -- especially in this 24/7 news environment where opponents are looking to pounce at every opportunity -- is making a gaffe. And Obama made one when joking to Leno about his bowling prowess, or lack thereof. “It was like Special Olympics, or something,” Obama said. Uh-oh. But even before the interview aired on the East Coast, the White House apologized for the comment. “The president made an offhand remark making fun of his own bowling that was in no way intended to disparage the Special Olympics,” deputy press secretary Bill Burton told reporters on Air Force One. “He thinks that the Special Olympics are a wonderful program that gives an opportunity to shine to people with disabilities from around the world.” President Obama also called Tim Shriver, chairman of the Special Olympics, to apologize. The incident, in fact, reminds us of the crack Obama made about Nancy Reagan at his first news conference after winning the presidential election. Every once in a while, it seems that Obama gets into this mode where he relaxes a bit too much and, well, does what many folks do in private: make an inappropriate comment.
*** From Leno to the Middle East: Obama’s media blitz continues -- with the president delivering remarks today at 12:35 pm ET in DC to the National Conference of State Legislators, with his appearance on “60 Minutes” this Sunday (taped sometime today with Steve Kroft; we'll be spying for him), with his presidential news conference this coming Tuesday, and with his new video to Iran . That’s right, coinciding with that country’s ancient festival of Nowruz that marks its New Year, Obama has cut a video speaking directly to the people of Iran. ”So on the occasion of your New Year, I want you, the people and leaders of Iran, to understand the future that we seek. It's a future with renewed exchanges among our people, and greater opportunities for partnership and commerce. It's a future where the old divisions are overcome, where you and all of your neighbors and the wider world can live in greater security and greater peace.” Obama even speaks at the Farsi at the end. “Thank you, and Eid-eh Shoma Mobarak.” The president's credibility in the Islamic world has always been an asset the White House and State Department folks have wanted to tap into. We'll see if these remarks, with the president speaking over the heads of Iran's political leadership, get traction.
*** Things that make you go, hmmmm: Also on this Friday are a few columns and news analyses that are worth chewing on. The first is David Brooks’ piece in The New York Times . “You’d think if some tiger were lunging at your neck, your attention would be riveted on the tiger. But that’s apparently not how it works in the age of global A.D.D.,” he writes. “As a tiger sinks its teeth into the world’s neck, we focus on the dust bunnies under the bed and the floorboards that need replacing on the deck. We live in the world of Perverse Cosmic Myopia, an inability to focus attention on the most perilous matter at hand.” In addition, National Journal’s Kirk Victor writes that presidents always stumble; what’s important is how they end up responding. “Virtually every president in the past 50 years or so has had to recover from such a disappointment in the first months of his administration. Some have been more adept than others in limiting the fallout from such failures,” he notes, citing Carter, Reagan, and Bush 43. Also in National Journal, Charlie Cook seizes on a new NPR poll (conducted by GOP and Dem pollsters) showing Republicans tied with Democrats on the generic congressional ballot test.
*** To multi-task or not to multi-task? Turning back to Brooks’ column… While his biggest criticism seems to be with Washington’s overemphasis of the AIG bonuses, he also takes Obama to task for juggling health care, energy, and education during this economic crisis. Yet if Obama were just focused on one issue, then folks would be asking, "What's slipping through the cracks?” “Why aren't you trying to deal with health care and energy independence, since it's part of the economy going forward when you rebuild”?
*** Going door to door: This is worth keeping an eye on this weekend: Obama’s Organizing for America, which is housed inside the DNC, is making its first truly big foray into creating a campaign style push for his budget. Per the DNC it will be launching a nationwide canvassing effort, in which citizens in all 50 states will participate in more than 1,000 door-to-door canvasses. And their job on pushing for the president's budget will get harder tomorrow… The Congressional Budget Office releases ITS deficit estimates based on the Obama budget, and will release those figures later today. According to sources, though, there could be a massive difference in deficit projections, giving Republicans something to seize on in their critiques of the Obama budget. The White House believes the CBO is using too low of an estimate on economic growth and that accounts for just about the entire difference in the deficit projections.
*** If Maine and Nebraska ruled the world: CQ recently looked at November’s presidential election by congressional district, to see what the electoral vote count would have been if it was done by CD (like it is in Maine and Nebraska) instead of by statewide vote. As it turns out, by congressional district, Obama won by a slightly smaller margin. Indeed, he underperformed versus the current House composition. According to CQ’s count, Obama won 242 congressional districts to McCain’s 193. Yet Democrats presently hold a 254-to-178 advantage in the House, with three vacancies. Below, we break down where McCain and Obama overperformed, and these are probably the places where the NRCC and DCCC should be starting to find pick-up opportunities. What's amazing: Despite the belief that the Democrats have hit their high-water mark in the House, there are still some Republicans sitting in Obama districts that can be targeted. And more importantly to the House Democrats, there aren't as many Democrats sitting in Republican districts as the CW might suggest.
Most of the places where McCain overperformed were in the South and in or around Appalachia:
On the other hand, Obama overperformed in the North and West:
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"Treasury Secretary Timothy Geithner acknowledged Thursday that his department 'expressed concern' to Sen. Chris Dodd (D-Conn.)
that a provision concerning bonuses in the stimulus bill could prompt lawsuits from workers at bailed-out companies -- a measure at the heart of this week’s AIG bonus controversy."
It looks like folks at the Fed knew first about the bonuses (interesting that Bernanke and the New York Fed president are ducking criticism). “Interviews with senior Federal Reserve and Treasury officials, as well as members of Congress, leave little doubt that the bonus program was a disaster hiding in plain sight.
Mr. Geithner is not the only one who appears not to have understood the populist fury the bonuses would set off.
“Career staff officials at the Treasury, Fed and Federal Reserve Bank of New York
exchanged e-mail messages about the A.I.G. bonus program as early as late February, according to a person familiar with the matter. A.I.G. itself revealed the bonus plan in regulatory filings last September. In November, when the bailout of A.I.G. was restructured, Treasury and Fed officials negotiated the terms under which A.I.G. could make the retention payments. And in December, Democratic lawmakers sought a hearing about the payments.”
CONTINUED >>
Per NBC’s Savannah Guthrie and MSNBC’s Alex Johnson , “President Barack Obama said Thursday evening that he was ‘stunned’ to hear about the $165 million in bonuses that were paid to employees of troubled insurer AIG over the weekend, promising to do everything he could to ‘get these bonuses back.’ ‘These financial industries are holding us hostage,’ Obama said in an interview on NBC’s ‘Tonight Show With Jay Leno,’ which NBC said was the first time a sitting president had been a guest on a late-night talk show.”
Video: President Obama discusses the AIG bonuses and Treasury Secretary Tim Geithner in an appearance on "The Tonight Show With Jay Leno." NBC's Chuck Todd Reports. More: “Obama used the visit as an opportunity to defend Treasury Secretary Timothy Geithner, who has been sharply criticized for his handling of the AIG controversy.”
The New York Daily News cover: "Heeere's the prez!" Subheadline: "Obama first sitting President to visit late-night TV -- gets laughs, makes gaffe."
The New York Post sees the worst in Obama's Leno appearance. Its cover: "No joke." Subheadline: "O yuks it up on Leno as economy burns."Roll Call writes. CONTINUED >>
“Congress moved yesterday to levy punitive taxes on bonuses paid by financial firms receiving government aid, threatening to undermine federal efforts to rescue the financial system by driving away participants in the programs,” The Washington Post reports. “A quickly assembled House bill was approved 328 to 93. It struck hard at Wall Street's compensation system, which has come under fire because of the $165 million in bonuses distributed last week by American International Group to executives of the troubled unit that helped lead the insurance giant to the brink of collapse. Under the legislation, those who received bonuses of more than $125,000 would surrender 90 percent of their payments to a special income tax.”
The New York Times : “Despite questions about the legality of the retroactive 90 percent levy, Democrats and some Republicans said the tax on bonuses for traders, executives and bankers earning more than $250,000 was the quickest way to show angry Americans that Congress intended to recoup the extra dollars. Even backers of the measure noted it was an extraordinary step.”
The AP writes, “Gov. Sarah Palin said Thursday that she would accept only 69 percent of the estimated $930 million dollars that could flow to the state, including $514 million for capital projects and $128 million for a hike in Medicaid reimbursement… Palin's rejection of $160 million for education drew a rebuke from Anchorage Superintendent of Schools Carol Comeau, who said she was shocked and disappointed.”
The DNC made this point: “Palin's Never Seen a Federal Dollar She Didn't Want... Until Now.”
Romney has raised more than half a million dollars through his PAC. He's donated to candidates about $16,000, but has spent about $200,000 on travel, expenses, staff, benefits and consulting.
COLORADO: Politico dives into the Colorado Senate race. Yet it notes that the GOP doesn't yet have a candidate to go against Michael Bennet, the replacement appointment who could be a major Republican target for 2010.
NEW YORK: "The special election to replace appointed Sen. Kirsten Gillibrand (D-N.Y.) is raking in a huge amount of cash,"
The Hill reports. "The two men vying for the New York House seat pulled in a combined $1.85 million in just over a month and loaned their campaigns another combined $450,000, continuing the big money trend that has characterized the race of late." Democrat Scott Murphy outraised Jim Tedisco (R) slightly -- about $900,000 to $840,000. (Murphy lent himself $250,000 while Tedisco lent about $200,000.)
From NBC's Mark Murray Reuters : "Responding to public and political outrage to the bonuses after the insurer received a government bailout up to $180 billion, lawmakers voted 328-93 for a bill to impose a 90% on bonuses for executives whose incomes exceed $250,000."
From NBC's Domenico Montanaro
Video: Twittermania sweeps the nation. Some random pluckings from around the Congressional Twitter Web:
R-CA
Darrell Issa Lincoln fired incompetent generals. So, Mr. President: why waver in firing Economic Field Marshall Tim "AIG Is Alright With Me" Geithner?
R-OK
John Sullivan At a forum on small business and economic recovery - Obama's budget is a jobs killer -- plain and simple.
R-IL
Judy Biggert Very pleased to see Administration retreated on its misguided proposal on veteran health. We owe them better than that
And for all Republicans' complaints about Obama's NCAA bracket, here's Chuck Grassley: R-IA
Charles Grassley Bsy day in the Senate but will have staff updt me on UNI game. Go panthers.
In case your staff hasn't updated you, senator, Northern Iowa was down 18-6 to Purdue with 10:45 to go in the first half.
Virginia Foxx also has a bracket and is promoting it: R-NC
Virginia Foxx Join my Bracket on Yahoo Sports
It's really quite something, how some members of Congress get such "Twitter muscles." Would Issa call Geithner "Tim 'AIG Is Alright With Me' Geithner" on television? Maybe.
From NBC's Lisa Myers
On a conference call, New York Attorney General
Andrew Cuomo says he has not yet received information on bonuses from Bank of America, but expects to get it today. He wants to review the information before he decides whether or how to make it public.
AIG has until the end of the day to comply with a subpoena for bonus info.
On the broader issue, Cuomo said he has been investigating the bonus practices of all TARP recipients.
He added that by withholding the bonus information, the banks are fueling a lack of confidence.
"Let the American people see," Cuomo said. "When you hide the ball, you make people suspicious."
AIG CEO Edward Liddy testified that he would like to comply with the subpoenas, but is concerned for the safety of the employees, many of whom have received death threats.
*** UPDATE ***
CONTINUED >>
NBC's Chief White House Correspondent Chuck Todd wants to know what questions you'd like for him to ask President Obama during his prime time news conference next Tuesday night? Send him your ideas here .
VIDEO )
From NBC’s Mike Viqueira
House Republicans will by and large vote against the bonus tax today.
A spokesman for
John Boehner says the leader will vote against it. Also, the leader of the conservative caucus has just put out a memo to his members asking for a "nay" vote (full release below).
But House Democratic leaders have brought it up under special rules that require a two-thirds majority for passage. So now the question becomes, will it pass?
The debate and vote is scheduled for perhaps later this afternoon.
Question: Can you even stand the suspense?
CONTINUED >>
From NBC's Ken Strickland and Mark Murray
And their criticism of President Obama went beyond AIG. "He flies off to Los Angeles tonight to be on the Jay Leno Show," Sen. Jon Kyl said. "My suggestion is that he come back -- since he's taken the full responsibility [for the AIG bonuses] -- to get his people together and say, 'All right, I want to know exactly what happened? Who did what when? And how are we going to prevent this from ever happening in the future?'"
Sen. Lamar Alexander also picked on Obama's NCAA basketball picks. "He's even found time to fill out his NCAA basketball brackets, which is a healthy thing to do in my opinion. But he picked North Carolina, and he caused the Duke coach, our Olympic coach, Coach K, to say respectfully, 'You might be spending less time on the brackets Mr. President and more time on the economy.' I think that's what we'd like to say, with respect."
(Just pointing this out, but John McCain Bob McDonnell Chuck Grassley
From NBC's Domenico Montanaro
You knew that President
Obama picking UNC as the champs and Duke out in the Elite Eight was going to stir the Tobacco Road hornet's nest.
But who knew that Coach K himself would weigh in?
"Somebody said that we're not in President Obama's Final Four, and as much as I respect what he's doing, really, the economy is something that he should focus on, probably more than the brackets," Duke coach Mike Krzyzewski told the
Associated Press .
Zing.
But maybe it's not surprising that Krzyzewski took his shot at this president.
After all, not only did Dean Smith, the original Carolina coaching legend,
endorse Obama during the 2008 campaign (Coach K did not), but Kryzeweski landed in hot water in 2002 for hosting an on-campus fund-raiser for Republican
Elizabeth Dole , then a candidate for U.S. Senate. (Dole was ousted in 2008 by now-Sen.
Kay Hagan .)
CONTINUED >>
From NBC's Mark Murray Obama and McCain was their view about the central front in the war on terrorism -- Obama said it was in Afghanistan/Pakistan, while McCain said it was in Iraq.
McCain, in fact, didn't call for sending more troops to Afghanistan until the very day when Obama unveiled his plan to divert U.S. troops from Iraq to Afghanistan.
But now, with troops set to leave Iraq, McCain is focusing on Afghanistan. And he appears to be applying the same rhetoric to Afghanistan that he once saved for Iraq. In a Washington Post op-ed he co-authors with ally Joe Lieberman , the Arizona senator warns the Obama administration to not adopt a "minimalist" approach to Afghanistan.
"Let there be no doubt: The war in Afghanistan can be won. Success -- a stable, secure, self-governing Afghanistan that is not a terrorist sanctuary -- can be achieved. Just as in Iraq, there is no shortcut to success, no clever 'middle way' that allows us to achieve more by doing less. A minimalist approach in Afghanistan is a recipe not for winning smarter but for losing slowly at tremendous cost in American lives, treasure and security."
From Chuck Todd, Mark Murray, and Domenico Montanaro Reclaiming the bully pulpit : So what do you do when the American public is outraged beyond belief at the AIG bonuses? When congressional Republicans and now even some Democrats (see: Dodd, Christopher) are blaming your administration? You get out of Washington and use a power that these people don’t have: the bully pulpit. That’s what President Obama did yesterday at his town hall in Orange County, CA -- an event that was planned before the news about the AIG bonuses first surfaced. At the town hall, Obama accepted responsibility over the AIG mess (“Some say it’s the Democrats’ fault, the Republicans’ fault. Listen, I’ll take responsibility. I’m the president”). He presented himself as the anti-Washington figure (“It’s always good to get out of Washington for a little while”). And he struck a populist tone (describing a culture “where people made enormous sums for taking irresponsible risks that have now put the whole economy at risk"). Earlier in the day, Obama seemed to accidentally refer to “voters.” It appeared the president had slipped into candidate mode. But he clearly was “fired up and ready to go,” and perhaps showed that he misses the good old days of the campaign trail.
Video: Obama speaks on AIG bonuses. ***
California, Day Two : The president today will most likely pick up where he left off yesterday when he tours an electric vehicle plant in Pomona, CA, making remarks there at 1:45 pm ET; holds a town hall at 4:10 pm in Los Angeles, where he’ll be joined by California. Gov. (and stimulus supporter) Arnold Schwarzenegger (R); and then tapes his appearance on “The Tonight Show with Jay Leno” at 7:20 pm. Critics, of course, are wondering whether it’s appropriate for the president to be filling out NCAA tournament brackets and appearing on Leno, especially during these tough economic times. But after following the presidential election for the past two years, who didn’t think Obama would be having a little fun with the NCAA tournament?
*** Saving Private Geithner : Right before he departed to California yesterday, Obama also used the bully pulpit to perform his own rescue of sorts -- this one saving his Treasury secretary. “Tim Geithner didn’t draft these contracts with AIG,” Obama said.
“There has never been a secretary of the Treasury, except maybe Alexander Hamilton right after the Revolutionary War, who’s had to deal with the multiplicity of issues that Secretary Geithner is having to deal with, all at the same time.” The president clearly bought Geithner some time from what was turning into a feeding frenzy for his head. What is Plan B, anyway? Whom does the congressional lynch mob that’s currently eyeing Geithner want instead, if Geithner is forced to step down? Geithner's toxic asset plan, which could come out as early as today or could be unveiled next week, involves some combination of government financing for hedge funds and other folks who have the cash to buy up these questionable assets. It could mean some Wall Street titans could make money, thanks to the government. It's not a popular plan, but given the need for the government to find a private sector solution, what choice does he have?
*** Saving yourself : While Obama yesterday was accepting responsibility for the AIG bonuses and trying to save his Treasury secretary, Chris Dodd was trying to save … himself.
That’s what happened when he said that it was the Treasury Department that had requested the loophole for executive bonuses that were contained in contracts before Feb. 2009. "Sen. Dodd's original executive compensation amendment adopted by the Senate did not include an exemption for existing contracts that provided for these types of bonuses,” his office said last night. “Because of negotiations with the Treasury Department and the bill conferees, several modifications were made, including adding the exemption, to ensure that some bonus restrictions would be included in the final stimulus bill.” Treasury sources dispute Dodd’s account. Despite pointing the finger at the Obama administration, it seems as if Dodd's political problems -- he’s up for re-election in 2010 and seems vulnerable -- are going from bad to worse.
*** Czar wars : Mindful that this bonus issue may have fallen through the regulatory cracks at both Treasury and the Fed, the Obama administration is asking Congress to create a new regulatory agency. Just as the FDIC has the power to shut down banks without a bankruptcy court, this new agency could take the lead on complicated cases like AIG, allowing the agency head to act as a bailout czar. Bottom line: If Congress gives Obama this new agency, it means the fogginess of who is in charge of AIG (Treasury or the Fed) gets cleared up. And that person would be the one held accountable for the NEXT problem with AIG. Speaking of problems, these bonus stories out of Merrill Lynch are only adding fuel to the populist fire, and could make Obama and Geithner's job of getting more congressionally-approved bailout money that much harder. In fact, it could mean that Ben Bernanke’s Fed will have to step in and start handing out more cash. What Bernanke did yesterday seemed to single-handedly turn the market around for the day. By the way, is this the week that the Fed chairman began to show signs of having the credibility to be his own oracle of sorts -- a la Greenspan in the '90s and Volcker of the '80s?
*** Just askin’ : While we love the outrage soundbites for television, do the congressional theatrics regarding the AIG bonuses really serve the institution well? Yesterday's AIG show was a substantive hearing at many points. But because there was grandstanding on both sides, it did seem to trivialize the confrontation and probably make lots of folks watching wondering if this group of people really is the best and brightest to be running the country. Individually, members of Congress usually do come across as very capable people. But put three or more members together in a hearing -- especially with a TV camera on -- and they seem to, well, morph into something else.
*** Nationalize this : We’re always leery of reading too much into a special election. But the contest at the end of this month to fill Kirsten Gillibrand’s congressional seat has become something to watch -- not only because it’s the first race of 2009, but also because it’s being fought on national issues. The big one is Obama’s stimulus, which Democratic candidate Scott Murphy supports and Republican Jim Tedisco opposes (although he didn’t take a position until recently). Also, Tedisco now argues that Murphy’s support for the stimulus means that he supports the AIG bonuses, since it included language protecting bonuses that had been agreed to before this past February; Tedisco even has a new TV ad hitting Murphy on the subject. And Tedisco is blasting Murphy’s ties to Wall Street and high finance (which certainly aren’t popular right now), and Murphy is countering with Tedisco’s longtime service in the State Assembly. One thing is pretty clear: While Tedisco once had a sizable lead in polls, the race has now narrowed. Given that -- and given the candidates are dueling over the stimulus -- does Obama decide to swoop into the race and stump for Murphy?
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The Washington Post : “Federal Reserve officials knew for months about bonuses at American International Group but failed to tell the Obama administration, according to government and company officials, exposing problems in a relationship that is vital to addressing the financial crisis… AIG executives said the Fed was informed three months ago by the company that it would pay $165 million by March 15 to employees working at its most troubled division. The Treasury and White House said they learned of the payments from Fed officials only days before they were due.”
More: “Close coordination between the Fed and the administration is now more important than ever as they near the launch of two signature programs to rescue the financial system, which together could reach $2 trillion and are aimed at reviving consumer lending and purchasing soured assets and loans from ailing banks.”
The New York Times front-pages that now has become a defining moment for Treasury Secretary Geithner. “On Wednesday, a junior Republican in Congress and some traders on Wall Street went so far as to call for him to quit or be fired. The Republican leader of the House, Representative John A. Boehner of Ohio, told a conservative talk-radio host that the secretary is ‘on thin ice.’ But Mr. Geithner’s boss, the president, interjected a vote of ‘complete confidence.’”
“‘Tim Geithner didn’t draft these contracts with A.I.G.,’ Mr. Obama told reporters as he left for California on Wednesday. ‘There has never been a secretary of the Treasury, except maybe Alexander Hamilton right after the Revolutionary War, who’s had to deal with the multiplicity of issues that Secretary Geithner is having to deal with — all at the same time.’”
But that didn’t stop the New York Post’s Hurt from jumping on the dump-Geithner bandwagon. "At least AIG boss Edward Liddy was man enough to show up and explain himself before Congress yesterday. Treasury Secretary Timothy Geithner -- the tax cheat and 'architect' of the AIG Ponzi scheme that Congress calls a 'bailout' -- wouldn't even untuck his tail from between his legs and show his face before Congress." And taking it a little far: "Geithner might have been stoned to death outside the committee room by angry mobs of innocent citizens infuriated that in these tough times."
The Los Angeles Times covers Obama’s town hall remarks yesterday in California, where 1,300 came to hear him speak. “Obama addressed the crowd with a mix of wonky detail about the roots of the economic collapse (even using the term ‘securitized mortgage instruments’ at one point) and a promise that recovery was in the offing. Fielding a range of questions, he outlined his thinking on immigration, bank loans and school class size. ‘I can't tell you how long it's going to take or what obstacles we'll face along the way, but I can promise you this: There will be brighter days ahead, here in California and all across America,’ the president said. ‘But that's only going to happen if we pull together and focus on the big things -- focus on the long term.’”
The New York Times : “Mr. Obama’s trip to California was planned before the explosion over A.I.G. bonuses last weekend. But he clearly appeared to relish the opportunity to talk about something different. ‘It’s always good to get out of Washington for a little while and come to places like Costa Mesa, because the climate’s a lot nicer and so is the conversation,’ Mr. Obama said.”
“The Costa Mesa visit — to be followed Thursday by trips to Los Angeles and Burbank, where he will tape ‘The Tonight Show with Jay Leno’ — is part of the White House effort to sell the budget to America before the expected fight in Congress. The White House announced Wednesday that Mr. Obama will hold another prime time news conference at 8 p.m. Tuesday.”
CONTINUED >>
“Under intense pressure from the Obama administration and Congress, the head of bailed-out insurance giant AIG declared Wednesday that some of the firm’s executives have begun returning all or part of bonuses totaling $165 million,” the AP writes.
But the Boston Globe says “the concession did little to assuage indignation or alter the hearing's dynamic: a gathering of aggrieved shareholders confronting the runaway management of a company they control but seem happy to loathe."Washington Post’s Dana Milbank writes that Liddy was a congressional punching bag yesterday.
Per NBC’s Mike Viqueira, the House today will take up and bill that would tax bonuses at a rate of 90%. That rate would apply to employees of companies receiving TARP funds in excess of $5 billion, and as long as that individual's family income is below $250,000. The bill is retroactive to Jan. 1, 2009. Asked why the rate was 90% and not 100%, Ways and Means Chairman Charlie Rangel joked that "state and local governments will take the extra 10%." Viq also points out that Rangel had been quoted on Tuesday as saying that he didn't want to do what the House is set to do, on the grounds that the tax code should not be "punitive." Asked about that yesterday, Rangel said that this was the only way to go about it. The Senate will try to take up a related measure today.
CONTINUED >>
Per Roll Call , DSCC Chair Sen. Robert Menendez laid out the 2010 map and "said he is encouraged by Democrats’ strong early recruiting effort, a rash of retirements on the other side of the aisle and a Republican political strategy that he said is built on obstruction and 'betting on failure.'" The DSCC, Menendez acknowledged, is trying to ward off any primary challengers to Bennett (CO) and Gillibrand (NY). One place there will definitely be a primary challenge is in Illinois, but Menendez said, a seat in Illinois “will be incredibly hard for us to lose.” "Other states where the Democratic field remains in flux include Ohio, Kentucky and Florida." In Missouri and New Hampshire, the most likely pick off, Dems already have their preferred candidates. report raising $5.1 million during the month of February when reports are filed Friday with the Federal Election Commission. The number is down slightly from the amount the party raised in January, when the RNC raised $5.77 million..."
Stu Rothenberg, writing in Roll Call , with an interesting take: "Don’t be surprised if you soon hear Democrats asserting that midterm elections are referendums on incumbent presidents and that as long as President Barack Obama’s numbers remain strong and the GOP brand remains weak, Democratic candidates running for high office next year have nothing to worry about. In fact, some wise Democrats are concerned about a possible disconnect between the president’s popularity and voters’ views of Democratic candidates next year, especially for incumbents. Their fear is that even if Obama remains personally popular, voters will not look kindly on their party’s candidates for Congress and governor if the economy remains weak and the public mood is sour and frightened."
CONNECTICUT : The New York Post headline: "Dodd lied about OK of bailout execs' $$." "Dodd claimed he was bullied by the Obama administration into adding a major exception to his provision that would have blocked companies receiving federal assistance from giving generous bonuses to employees… An administration official disputed Dodd's version of the events, however, telling The Post that the Treasury Department had merely flagged the provision as one that could be vulnerable to lawsuits in the future."
CONTINUED >>
From NBC's Domenico Montanaro vast improvements, it looks like the president exaggerated some of his claims during a speech last week, according to FactCheck.org :
"Last year, the president touted U.S. gains in education, saying that our "fourth- and eighth-graders achieved the highest math scores on record." He bragged that "African-American and Hispanic students posted all-time highs." Last week, the president said those eighth-graders weren't so great at math after all. He claimed they had "fallen to ninth place" in the world, and he bemoaned a high school dropout rate that had "tripled" over three decades. What a difference a year makes. ...
"We certainly wouldn't argue that education can't be improved, but some of the figures Obama used painted a bleaker picture than actually exists:
The high school dropout rate hasn't "tripled in the past 30 years," as Obama claimed. According to the Department of Education, it has actually declined by a third.
Eighth-grade math scores haven't "fallen" to ninth place compared with other countries. U.S. scores have climbed to that ranking from as low as 28th place in 1995.
Obama also set a goal "of having the highest proportion of college graduates in the world" by 2020. But in terms of bachelor's degrees, we're nearly there. The U.S. is already second only to Norway in the percentage of adults age 25 to 64 with a four-year degree, and trails by just 1 percentage point.
Just as Bush left out any mention of less-than-rosy assessments of the nation's education system, Obama didn't say too much about how smart our kids are. And some of his gloomy claims were just plain wrong, or misleading.
From NBC's Domenico Montanaro Al Franken wants Republican Norm Coleman to pay the costs of the seven-week, three-judge trial if Coleman ultimately loses.
The Minneapolis Star-Tribune : "Democrat Al Franken wants the judges who heard the U.S. Senate trial to force Norm Coleman to pay court costs and some opposing lawyers' fees -- a potentially expensive bill -- if the Republican loses his bid to overturn the results of the recount. ... Franken's document asks that Coleman pay the costs of the seven-week trial. And in seeking attorneys' fees for Franken lawyers... ."
This is Franken, in part, trying to put pressure on Coleman who, at this point, has to be operating on limited resources.
It also comes in the wake of revelations that a list of Coleman donors' names and credit card numbers showed up on another Web site.
"Coleman accused political opponents of hacking into his campaign website to discourage prospective donors from financing the long, expensive recount process. Several Web operators, however, said they believe the campaign mistakenly left the website open for several hours in late January," the Star-Tribune writes.
From NBC's Mark Murray Terry McAuliffe , the former DNC chair and Hillary backer who's now running for Virginia governor, is airing a new radio ad in Richmond and Hampton Roads that targets African-American voters.
And as
Politico's Ben Smith points out, the ad makes it seem like he was always supporting
Obama . (Of course, during the general election, McAuliffe actively campaigned for him.)
The ad goes: "Did you know that Terry McAuliffe fought to protect voting rights and led the effort to give Democrats in our region a stronger voice in deciding the party's presidential nominee? That's right. Terry McAuliffe defended our rights and was the leader who brought us together and united the party. And in 2008 our voices were heard when we elected our president, Barack Obama."
From NBC's Mark Murray Gallup poll -- conducted March 17 of 1,012 adults, +/-3% margin of error -- finds that 59% are outraged at the AIG bonuses, and another 26% say they're bothered by them.
In addition, a whopping 76% believe the government should try to block/recover the bonuses. Just 17% say the government shouldn't intervene.
From NBC's Domenico Montanaro
The first member of Congress has given his thumbs down to Treasury Secretary Tim Geithner.
Rep. Connie Mack goes Chuck Grassley-light, calling for Geithner to either "resign or be fired."
Mack's statement after the jump:
*** UPDATE *** Darrell Issa has now jumped on the bandwagon of calling Geithner to resign:
“As one of the chief architects of the AIG bailout, Secretary Geithner was in a position to do what any lender of the last resort would do – negotiate concessions from AIG. Secretary Geithner either didn’t know about the bonuses, and was grossly negligent, or he did know and failed to bring this to the President’s attention. Either way, the end result has been a significant waste of taxpayer dollars and he should take immediate responsibility and resign.”
House Minority Leader John Boehner said Geithner's on "thin ice" on a radio program.
CONTINUED >>
From MSNBC's Norah O'Donnell
As he announced on Morning Joe today, Sen.
Evan Bayh is forming a Moderate Dems Working group that will meet every other Tuesday before the Democratic caucus to discuss legislative strategies and ideas.
Per Bayh's office, the group's goal "is to work with the Senate leadership and the new administration to craft common-sense solutions to urgent national problems."
Video: Bayh is forming a 15-person working group focused on fiscal responsibility. Here's part of a statement to be released very shortly from Bayh... The group will focus "on the upcoming budget negotiations and the importance of passing a fiscally responsible spending plan in the Senate."
More: "Leading the new group are Democratic Sens. Evan Bayh of Indiana,
Tom Carper of Delaware and
Blanche Lincoln of Arkansas... [O]thers joining the group are Sens.
Michael Bennet of Colorado,
Mark Begich of Alaska,
Kay Hagan of North Carolina,
Herb Kohl of Wisconsin,
Mary Landrieu of Louisiana,
Joe Lieberman of Connecticut,
Claire McCaskill of Missouri,
Ben Nelson of Nebraska,
Bill Nelson of Florida,
Jeanne Shaheen of New Hampshire,
Mark Udall of Colorado, and
Mark Warner of Virginia."
From NBC's Domenico Montanaro
Since the president waded into this policy area, it's an excuse for me to do so as well.
My four: Wake, UConn, Pitt, UNC. Wake was the top seeded team in the country not too long ago. That said, of course, Louisville could roll, but that could shape up to be a good Sweet 16 game IF Wake survives Cleveland State. Beware, Gary Waters' squad is really tough. And, out on a limb, I like West Virginia to beat Kansas and Michigan St. to get to the Elite Eight. But the Midwest bracket is tough to call. UConn-Memphis would be a great game, and a contrast of styles. Memphis would have a chip on its shoulder, but the bruising of the Big East could pay off here. To win it all -- Carolina over UConn.
What are your picks?*** UPDATE *** From NBC's Mark Murray : My picks are the exact same as Domenico's -- Wake, UConn, Pitt, and UNC. And I also have Carolina beating UConn in the finals. Looks like those first- and second-round games will determine who beats whom in our NBC pool.
*** UPDATE 2 *** full NCAA Bracket . (For those surprised Obama would do this, he did two during the campaign, so it should be expected. His brother-in-law is the head coach at Oregon State and basketball played a prominent role during the 2008 campaign in hoops happy states like Indiana and North Carolina.)
In his picks, Obama appears to have done what we all do -- change our minds. Some notable cross outs: going with UNC over Louisville after first picking Louisville to win it all; picking Carolina over Pitt after first writing in Pitt in the Final Four; Florida St. over Xavier; VCU over UCLA; Oklahoma over Clemson; Missouri over Marquette; and Tennessee over Oklahoma St. Obama also appears most clear-eyed on the bracket that many are calling the toughest to predict -- the Midwest. White House Blog post with other photos.
*** UPDATE 3 *** Bob McDonnell released his as well . He's running a "Bracket Madness." (John McCain also promoted his bracket competition.) And, of course, he puts VCU in the Elite Eight. It is possible though -- and could have been a popular sleeper pick if they wouldn't have to play Villanova in Philly, as Mark Murray points out.
From NBC's Domenico Montanaro We noted earlier that Dennis Kucinich 's 31-year-old wife appeared on Cleveland's local news version of Dancing with the Stars. The low-budget production is complete with Cleveland Browns football players, mascots and a keyboard soundtrack.
And here's the video . (Warning: If you are easily made queasy, do not click on the link.)
And a promo:
From Chuck Todd, Mark Murray, and Domenico Montanaro Ed Liddy meets Congress: Those AIG bonuses have dominated the political news for the last three days. Now make it four, with AIG CEO Edward Liddy testifying today before a House Financial Services subcommittee beginning at 10:00 am ET. In advance of his testimony, Liddy pens a Washington Post op-ed , in which he details the past mistakes AIG made (before he came aboard), notes that total executive compensation at the firm is down, and states that he would have not approved of the retention bonuses had he been CEO at the time they were put in place. “It was distasteful to have to make these payments,” he says. “But we concluded that the risks to the company, and therefore the financial system and the economy, were unacceptably high.” But this piece of news , courtesy of New York AG Andrew Cuomo, might be difficult for Liddy to defend today: 52 of the 418 AIG employees who received retention bonuses no longer work for the firm. So much for retention, eh?
Video :
Ed Liddy testifies before Congress today about the millions in bonuses given to AIG executives. ***
Defending Liddy: Before today's testimony, Treasury Secretary Geithner sent a letter yesterday to Pelosi, Reid, Boehner, and McConnell, in which he defends Liddy. “I know that much of the public ire has fallen on Mr. Liddy, which is understandable, since it is his name on the door. But it also is unjustified. Mr. Liddy was put in place as the CEO of AIG last year at the request of the U.S. government to help rehabilitate the company and repay taxpayer funds. He inherited a difficult situation, including these AIGFP retention contracts, which were entered prior to his or the government’s involvement in AIG. As long as he is there, we will work with him on measures to wind down AIG in an orderly way and protect the American taxpayer.” Also in his letter, Geithner expresses outrage at the bonuses (but acknowledges that they would be legally difficult to prevent); recounts that he demanded Liddy to scrap hundreds of millions of dollars in future payments; and notes that he’s working with the Justice Department to seek avenues to recoup the bonuses that were paid. Let’s face it: This is a crucial period for Geithner. He has to get control of this AIG situation in some form, even if just rhetorically. The letter to Congress is a start, but he needs to make some sort of CEO-like move in Treasury to make a visual attempt to take the reins of the controversy.
*** One eventful week: So what did the Obama administration know about these bonuses, and when did they know it? It was only last Tuesday when Treasury officials alerted Geithner that $165 million in AIG bonuses were due to be paid out by the end of the week. On Wednesday, Geithner contacted Liddy to stop payment on the bonuses, but Liddy told him it couldn't be done. On Thursday, Geithner warned White House senior adviser David Axelrod about the bonus problem; later that day, Axelrod informed the president. On Friday and Saturday, Treasury officials worked on ways to limit or eliminate the AIG bonus money. It wasn't until Sunday when senior White House aides went public with their outrage. And finally, on Monday, nearly a week after Geithner first learned about the bonus problem, President Obama made his first public statement.
*** California dreamin’: Given the AIG drama in Washington, President Obama’s trip today to California -- where he will hold a town hall at 7:00 pm ET in Costa Mesa -- couldn't have come at a better time for him. The reason: It gets him out of the Washington cesspool. Per NBC’s Athena Jones, White House press secretary Robert Gibbs told reporters yesterday that Obama will most likely discuss his stimulus, his budget, his home-foreclosure plan, his plan to stabilize the financial industry, and of course those AIG bonuses at tonight’s town hall. In fact, we wonder if the president will not just talk about the bonuses, but go a step further to justify why the AIG bailout is necessary and vital to the world's economy. Obama might have an additional opportunity to say this when he delivers remarks at 12:30 pm ET from the White House before departing for California. Besides his trip to California, check out the rest of Obama’s media blitz: He unveils his NCAA tournament brackets on ESPN (today), does Leno (tomorrow), and appears on “60 Minutes” (Sunday). Three time's a charm? If at first you don't succeed, try again, right? Today, President Obama's third pick for Commerce secretary -- former Washington Gov. Gary Locke -- has his confirmation hearing before the Senate Commerce Committee at 10:00 am ET. Of course, Obama's previous nominees for the post, Bill Richardson and Judd Gregg, never made it this far. Speaking of Gregg, the onetime Obama cabinet pick is howling at the administration’s consideration of using the budget reconciliation process, under which legislation needs only a simple majority to pass the Senate (i.e., there’s no filibuster). "That would be the Chicago approach to governing: Strong-arm it through," Gregg said, per The Washington Post . "You're talking about the exact opposite of bipartisan. You're talking about running over the minority, putting them in cement and throwing them in the Chicago River."
***
Julius Caesar Bloomberg? One of the biggest political stories that got buried during last fall’s presidential election was New York Mayor Michael Bloomberg (I) persuading the City Council to nix its term-limits law to allow him to serve a third term. And yesterday, per the
AP , the Justice Department cleared the final hurdle for his bid this November. Would Bloomberg’s brazen move have received more attention -- and possibly criticism -- had it occurred when the world wasn’t fixated on Obama vs. McCain? Or if Bloomberg were not as popular as he is right now? In any case, Bloomberg’s bid for a third term this November seems to have frightened away some potential candidates, including Rep. Anthony Weiner (D), who probably would have been the favorite if Bloomberg weren’t running.
*** If you can't beat 'em, join 'em: Looking at other 2009 races, New Jersey Gov. Jon Corzine's office announced yesterday that it’s suing Lehman Brothers and its accountant for "misrepresentations" that "led the Division of Investment in the Department of Treasury to purchase $182 million in Lehman securities in April and June 2008, which resulted in an estimated $118 million in losses." That's quite the gambit considering Corzine is a former chairman of mega investment bank Goldman Sachs (!). He's in trouble in his reelection bid this year with his Wall Street background being used against him. He was down 46%-37% in a recent Quinnipiac poll to former U.S. Attorney Chris Christie -- even though Garden Staters said they didn't know Christie all that well. Will voters buy it? Can Corzine, a target of populist outrage, jump on the bandwagon to reverse his fortunes?
Countdown to NY-20 special: 13 days
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"Lawmakers channeled their raw outrage Tuesday into a competition to see who could hammer AIG the hardest for doling out $165 million in bonuses after getting a $170 billion taxpayer bailout."
AIG CEO Edward Liddy’s op-ed in the Washington Post : “No one knows better than I do that AIG has been the recipient of generous amounts of government financial aid. We are acutely aware not only that we must be good stewards of the public funds we have received but that the patience of America's taxpayers is wearing thin. Where that patience is especially thin is on the question of compensation.” The Hill , adding, “It’s terrible; it’s disheartening." AP 's preview, which also notes that Liddy will reluctantly defend the bonuses.
CONTINUED >>
"Geithner said yesterday that any bonus payments that the Treasury cannot recoup will be recovered by requiring AIG to repay the Treasury an amount equal to the remaining bonuses," the AP says. AP : "Geithner sent a flurry of letters to lawmakers Tuesday night on measures he's taking -- including bringing in Attorney General Eric Holder -- to try to recover as much of the bonuses as possible. For the time being, Geithner, formerly president of the New York Federal Reserve Bank, remains a key player in the gargantuan task of slowing the worst economic downturn since the 1930s. But his future could soon be as murky as the economy's."
Meanwhile, Obama went on the attack against Republicans regarding his budget: “‘Just say no’ is the right advice to give your teenagers about drugs; it is not an acceptable response to what our economic policies propose by the other party.”
The New York Times adds, “The strong words were the latest in a push that has come to resemble elements of the two-year-long presidential campaign. Mr. Obama may hold his second prime-time news conference as president, perhaps as early as next week, to talk up the budget. On Wednesday and Thursday, he is taking his budget show on the road to California, where he will hold two town-hall-style meetings and will even try to talk about the economy on Thursday on ‘The Tonight Show with Jay Leno.’”
The AP previews Obama’s trip to California. "His first appearance as president in a state that was a getaway for his predecessors could instead become a political test for Obama, whose administration has been trying to find its voice on the economy."
2008 flashback: "It was a year ago today that Barack Obama, then a candidate for president fearing a divisive racial backlash over his pastor, took to the stage in Philadelphia and said it was time to have a new conversation about race," Politico notes, adding, "But in the year since that speech -- through campaign and convention, election and inauguration -- Barack Obama hasn’t taken part in the discussion of race in America in any sustained way, the way he did that day in Philadelphia to get out of a campaign jam." Roll Call reports. "Tauscher’s exit would create a vacancy atop the New Democrat Coalition, a bloc of pro-business moderates emerging as a force in the new Congress." all diplomats out of the country.
After watching almost every Obama move over the past two years, former RNC spokesman Alex Conant writes a column about the five biggest myths about Obama (he’s more cautious than you think; his communication skills, beyond his speeches, aren’t that great; he doesn’t really have a “Team of Rivals”; he’s gaffe-prone; and he doesn’t have a good relationship with press).
President Bush gave his first speech since leaving the White House -- in Canada. "I love my country a lot more than I love politics," Bush said. "I think it is essential that he be helped in office." He also "declined to critique the Obama administration in Tuesday's speech, saying the new president has enough critics and that he 'deserves my silence.'" Bush said he's going to write a book about the 12 toughest decisions he had to make.
Video: Bush received a cold reception in Canada yesterday while giving a speech in Calgary. Palin's staff again shows one hand not talking to the other. The NRSC and NRCC both still insist Palin's headlining a major June fundraiser. They confirmed it with her PAC. On the other hand, her Alaska staffers say they knew nothing about it. "This is not the first time there has been confusion over a Palin address in Washington, D.C. Palin was announced as a speaker for the Conservative Political Action Committee’s annual conference in February but pulled out of the event a couple weeks before, citing official duties,"
Roll Call writes.
NEW YORK: Yesterday, the RNC announced it was transferring another $100,000 to the New York GOP for the NY-20 special election in two weeks, bringing the RNC’s total contribution to $200,000. “I am confident this additional investment will help ensure victory in the special election,” RNC chair Michael Steele said in a statement. “These funds will be used to further show our commitment to re-establishing a strong GOP presence in the Northeast.”
PENNSYLVANIA: Specter won't become a Democrat. But he didn't rule out running as an independent, although that doesn't sound likely. “I’m staying a Republican because I think I have a more important role to play there,” he said. “I think the United States very desperately needs a two-party system… And I’m afraid that we’re becoming a one-party system, with Republicans becoming just a regional party.”
From NBC’s Domenico Montanaro
Expect it to be taken to new heights tomorrow when AIG’s CEO Edward Liddy testifies at 10 a.m. ET before the House Financial Services Committee. And Barney Frank is getting a little ammunition from New York Attorney General Andrew Cuomo , who wrote the committee chairman something of a pre-game talking points memo.
The facts: “We learned over the weekend that AIG had, last Friday, distributed more than $160 million in retention payments to members of its Financial Products Subsidiary, the unit of AIG that was principally responsible for the firm's meltdown. Last October, AIG agreed to my Office's demand that no payments be made out of its $600 million Financial Products deferred compensation pool. While this was a positive step, we were dismayed to learn after the fact that AIG had made multi-million dollar payments out of its separate Financial Products retention plan on Friday.”
Talking Point 1: “AIG now claims that it had no choice but to pay these sums because of the unalterable terms of the plan. However, had the federal government not bailed out AIG with billions in taxpayer funds, the firm likely would have gone bankrupt, and surely no payments would have been made out of the plan.”
CONTINUED >>
From NBC's Mark Murray New York Times previewed this morning, Obama today made the first judicial nomination of his presidency, picking federal Judge David F. Hamilton to serve on the 7th Circuit Court of Appeals. The Times describes Hamilton as a moderate, and Obama stressed that point in his official statement announcing the pick.
"Judge Hamilton has a long and impressive record of service and a history of handing down fair and judicious decisions," Obama said. "He will be a thoughtful and distinguished addition to the 7th Circuit and I am extremely pleased to put him forward to serve the people of Illinois, Indiana, and Wisconsin."
But that hasn't stopped this pick from generating predictable responses from the right and left. Here's an email from a Republican advising the conservative Judicial Confirmation Network: "President Obama’s first nominee to the federal appeals courts – specifically the appeals court based in Chicago -- is an ultra-liberal named David Hamilton who is a former fundraiser for ACORN and former leader of the Indiana chapter of the ACLU. He was nominated to the district court bench by President Clinton even though he had no judicial experience and was rated as 'not qualified' by the ABA."
But here's the statement from the liberal People for the American Way: “David Hamilton is an ideal choice for this seat. Throughout his career, he has demonstrated a willingness to put principle ahead of politics and bring an open mind to every case. Judge Hamilton has shown a deep commitment to the rule of law and core constitutional principles of liberty, equality, and justice for all Americans."
From NBC's Ken Strickland and Danielle Weisberg
In the letter, the Democrats write: "We insist that you immediately renegotiate these contracts in order to recoup these payments and make the American taxpayer whole. We stand ready to take the difficult, but necessary, step of working to enact legislation that would allow the government to recoup these bonus payments, perhaps by imposing a steep tax -- as high as 91% -- that will have the effect of recovering nearly all of the bonuses that have been paid out since AIG turned to taxpayers for help."
Democratic Sen. Barbara Boxer added on the Senate floor, "Those bonuses ought to be returned voluntarily. If they are not returned they ought to be taxed as close to 100% as we can get."
While the Senate letter is searing in its tone, it's unclear just how fast or how much taxing Congress could impose because existing tax codes. In a hearing today before the Senate Finance Committee, the question was put to IRS Commissioner Douglas Schulman . "So the basic question is -- what's the highest tax that we could impose on those bonuses, that is sustainable in court?" asked Finance Chairman Max Baucus .
Schulman said that there was no immediate answer but agreed to look into it.
From NBC’s Domenico Montanaro Chuck Grassley is apparently the Potter Stewart of rhetoric .
In an interview with MSNBC’s David Shuster, Sen. Grassley didn’t apologize for his comments that AIG representatives should either “resign, or go commit suicide.” Instead, he dismissed the question, saying people should know “rhetoric” when they hear it.
“I hope you recognize rhetoric,” Grassley said, “and I shouldn't even have to answer that question….”
Video: Grassley says his remarks about AIG execs were just rhetoric. Pressed by Shuster, who asked if Grassley had any regret for his phrasing, Grassley struck a defensive tone.
“I've stated that you oughta be able to tell rhetoric when you hear it,” the Iowa Republican said.
CONTINUED >>
From NBC's Chuck Todd Isn't the real issue how Wall Street firms compensate their employees? Will any member of Congress pursue the issue of moving Wall Street to a salary structure rather than have them totally reliant on bonus pay?
From NBC’s Ken Strickland Obama 's effort to recover millions of dollars in bonuses given to AIG executives, Senate Republican Leader Mitch McConnell suggested the Treasury Department could have done more two weeks ago, before it agreed to give AIG another $30 billion bailout.
Video: Obama orders the Treasury Department to block bonuses for AIG executives. In a short speech on the Senate floor, McConnell asked, "Wouldn't the Treasury and the taxpayer have had more leverage over AIG's executive contracts before providing another $30 billion in taxpayer money rather than allowing the bonuses to be paid with taxpayer money?"
He added, "I certainly expect them to look for every possible legal way to live up to the pledge made yesterday on behalf of taxpayers."
CONTINUED >>
From NBC's Chuck Todd Obama this morning at his event with the two Congressional Budget committee chairs, Sen. Kent Conrad (D-N.D.) and Rep. John Spratt (D-S.C.):
"I know that there are some on Wall Street and in Washington who've said that we should only focus on the banking crisis and one problem at a time. Well, we're spending a lot of time focusing on this banking crisis, and we will continue to do so because until we get liquidity flowing again, we will not fully recover. But the American people don't have the luxury of just focusing on Wall Street. They don't have the luxury of choosing to pay either their mortgage or their medical bills. They don't get to pick between paying for their kids' college tuition and saving enough money for retirement. They have to do all these things. They have to confront all these problems. And as a consequence, so do we."
It's the president attempting to connect himself to the rest of America, trying to turn the criticism into a badge of honor. This is very, shall we say, populist of the president.
From NBC's Mark Murray Chuck Grassley's message to AIG executives: "resign or go commit suicide."
Well, NBC News has obtained this statement from AIG spokesman Nick Ashooh responding to Grassley: "The remark is very disappointing, but AIG's employees continue to work with poise and professionalism to take care of policyholders and repay taxpayers."
From NBC's Chuck Todd and Mark Murray President Obama used St. Patrick's Day to announce that he's nominating Pittsburgh Steelers chairman Dan Rooney to be ambassador to Ireland.
So first Rooney's team wins the Super Bowl; now he gets to be ambassador of Ireland. Luck of the Irish, we guess...
Obama said in a statement: "I am honored and grateful that such a dedicated and accomplished individual has agreed to serve as the representative of the United States to the Irish people. Dan Rooney is an unwavering supporter of Irish peace, culture, and education, and I have every confidence that he and Secretary Clinton will ensure America's continued close and unique partnership with Ireland in the years ahead."
The Pittsburgh Post has more on the pick.
From NBC's Mark Murray new Gallup poll , which shows that a majority -- 53% -- favor a law making it easier for unions to organize new workers.
Not surprisingly, this support breaks down along partisan lines: 70% of Democrats support it, while 60% of Republicans oppose it; independents favor making unionization easier by a 52%-41% margin.
Yet opponents of the Employee Free Choice Act seized on these findings in the poll: 65% said they're not following the issue closely or at all, and among those following it very closely, 58% are opposed to the measure.
Opponents also say the poll didn't test individual provisions in the legislation, which they believe are unpopular.
From Chuck Todd, Mark Murray, and Domenico Montanaro
***
Boy, that escalated quickly : We predicted that the AIG bonuses story would lead politicians to begin channeling their inner populist. We just didn’t realize that -- to borrow a phrase from Ron Burgundy -- it would escalate so quickly, to the point that we're now talking about death and suicide. Indeed, yesterday’s reactions to the bonuses either resembled that journalist-on-journalist fight in “Anchorman” (“Brick killed a guy. Did you throw a trident?”), or one of those mob-violence scenes in “The Simpsons.” As the
Washington Post recounts, New York Attorney General (and possible 2010 gubernatorial candidate) Andrew Cuomo said he was issuing subpoenas; more than 80 House Democrats signed a letter demanding that the money used to pay the bonuses be recouped from AIG; House Minority Leader John Boehner warned that there would no GOP support for future bailouts; and even Sen. Chuck Grassley suggested in a radio interview that AIG executives "follow the Japanese model … resign, or go commit suicide." The Post adds that an aide later explained that Grassley “does not actually want executives to kill themselves.” Well, um, thanks for the clarification. So it is no wonder Wall Street firms may feel the need for extra security...
*** The congressional lynch mob : Seriously, are longtime senators really advocating that people commit suicide? It's a lynch mob out there, and members of Congress seem to be carrying torches. This actually makes it that much harder for AIG to want to disclose the names of the bonus recipients (their lives could be in danger, apparently). Will President Obama -- who yesterday said, “I’m choked up with anger here” -- actually have to calm people down? What’s ironic here is that the $165 million in bonuses represent just 1% of the government money AIG has received. (What's nuttier about this financial crisis: that we're getting worked up over something that's less than 1% of an entire bailout, or that somehow $165 million has been reduced to 1% of ANYTHING?) What’s also ironic here: A Congress and a federal government that made it easier for trading derivatives and credit-default swaps are so angry right now. Of course, everyone wants to pile on the government for not stopping the bonuses or anticipating what was going to happen. But at what point is it totally incumbent on the government to anticipate all this? *** Clarification ***
*** Gibbs vs. Cheney : Besides the furor over the AIG bonuses, the other big political news yesterday was the administration’s counterpunch to Dick Cheney, who has now twice accused the Obama White House of making the country less safe. "I guess Rush Limbaugh was busy," White House press secretary Robert Gibbs said in response to Cheney’s claims. "So they trotted out the next most popular member of the Republican cabal." Is Robert Gibbs' open disdain for Cheney acceptable to a president who promised to move beyond petty political squabbling? And does the president agree with Gibbs’ description of the loyal opposition as "the Republican cabal”?
Video: In a recent interview, Cheney says Obama has made America less safe. ***
A judicial sign : According to a scoop from the
New York Times , it looks like the Obama White House will unveil its first judicial nomination this week, and the pick is intended to send a “signal” about the kind of judges the president will appoint. The pick, the Times says, is Judge David Hamilton -- a moderate from Indiana who worked for Sen. Evan Bayh, who happens to be Lee Hamilton’s nephew, and who has the support of GOP Sen. Dick Lugar -- and Obama will nominate him to serve on the 7th Circuit Court of Appeals. An official told the Times that “part of the reason for making the Hamilton nomination the administration’s first public entry into the often contentious field of judicial selection was to serve ‘as a kind of signal’ about the kind of nominees Mr. Obama will select."
*** Obama political operation picking up steam : We alluded to this yesterday, but the Obama political operation is beginning to pick up steam. Not only is his Organizing for America, which is housed inside the Democratic National Committee, deploying its grassroots army to support Obama’s budget (a campaign that's going to be MORE about winning over conservative Democrats than moderate Republicans), but the president will hit his first fundraiser (next week), he’ll make an appearance on Leno (on Thursday), and Biden delivered remarks thanking DNC donors (last night). Welcome to the permanent campaign.
Video: Obama's appearance on Leno on Thursday will make him the first sitting president to appear on a late-night talk show. ***
Murtha in trouble? Something tells us that this story about Rep. Jack Murtha isn’t going away. The
Washington Post : “A Pennsylvania defense research center regularly consulted with two ‘handlers’ close to Rep. John P. Murtha (D-Pa.) as it collected nearly $250 million in federal funding through the lawmaker, according to documents … and sources familiar with the funding requests. The center then channeled a significant portion of the funding to companies that were among Murtha's campaign supporters.” The question for key members of the House Democratic caucus is whether Murtha is going to hang around long enough to take down other members of his party with him, or if he ends up being tossed under the proverbial bus? We're surprised so many Democrats (particularly those freshmen and sophomore reformers) have stayed so quiet.
*** St. Patrick’s Day fun : At 10:50 am ET, President Barack O’Bama and Vice President Joe Biden meet with Ireland’s taoiseach (or prime minister), Brian Cowen. The three men then attend a Shamrock ceremony at the White House, O’Bama makes remarks at a St. Patrick Day’s lunch on Capitol Hill, and the president makes another speech at a St. Patrick’s Day White House reception in the evening. The National Republican Senatorial Committee also has some St. Patrick’s Day fun by releasing a Web video (entitled “Luck O’ The Dodd”) blasting Sen. Chris Dodd.
Video: TODAY's Meredith Viera talks about Obama's plans for St. Patrick's Day. Countdown to NY-20 special: 14 days
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Countdown to NJ GOP primary: 77 days
Countdown to VA Dem primary: 84 days
Countdown to Election Day 2009: 231 days
Countdown to Election Day 2010: 595 days
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The Washington Post says the AIG bonuses put Obama's political standing on the line. "President Obama's apparent inability to block executive bonuses at insurance giant AIG has dealt a sharp blow to his young administration and is threatening to derail both public and congressional support for his ambitious political agenda."
Given Sen. Chuck Grassley’s call for AIG executives to commit suicide, these kinds of quotes will only get more attention. “‘It's a mob effect,’ one senior executive said. ‘It's putting people's lives in danger.’”
More: “‘It's going to blow up,’ said a senior Financial Products manager, who spoke on condition of anonymity because he was not authorized to speak for the company. ‘I have a horrible, horrible, horrible feeling that this is going to end badly.’”
"Joining a chorus of outrage, President Obama vowed yesterday to use 'leverage' from more than $170 billion in federal aid and 'every single legal avenue' to try to block bonuses being paid to executives at insurance giant American International Group," the Boston Globe writes. "But the White House did not immediately explain how it might stop the $165 million in bonuses, or why it didn't restrict the payments before giving AIG the latest round of taxpayer support." New York Daily News' front page is stark black with bold white letters: "A.I.G. is a pig."
CONTINUED >>
The Los Angeles Times examines the start of the Obama campaign to pass his budget. "Millions of campaign supporters are receiving e-mails urging them to call members of Congress. Groups allied with the White House are running ads scorning the president's foes. States that were closely contested in the 2008 election are again getting visits from Obama." More: "The return to campaign-style tactics is intended to pressure lawmakers to back Obama's plans in Congress, particularly his $3.6-trillion budget. That would be a tough sell in any environment, with lawmakers and industry lobbyists skeptical of sweeping and costly plans to revamp healthcare, convert to alternative fuel and stabilize the financial sector."
Also, it looks like the first fundraiser Obama holds as president takes place next week -- a little more than 60 days after taking office. Just asking: Is this fast or slow for a new president?
Politico adds, "The White House is wasting little time gearing up for the midterm elections, deploying Vice President Joe Biden to stump for a Democratic senator up for reelection next year and making President Barack Obama the keynote speaker at a Democratic National Committee fundraiser later this month.”
This seems to be the best analysis we've seen about the impact of Obama's tax policies. "The analysis showed that by 2012, when Mr. Obama's plans would be fully in place, the proposed tax changes would have a relatively small impact on Americans' after-tax income as a whole, decreasing it by 0.1%. But, the analysis showed, his policies would have sharply different effects on different income groups.”
CONTINUED >>
"The long-running battle between Senate Majority Leader Harry Reid (D-Nev.) and Sen. Tom Coburn (R-Okla.) over the Public Lands Act moved one step closer to a conclusion Monday evening, as the Senate voted 73-21 to cut off debate over the omnibus legislation."
The Boston Globe : "The eight Democrats disapprove of using the annual budget debate to pass Obama's 'cap and trade' bill to fight greenhouse gas emissions, a measure that divides lawmakers, environmentalists, and businesses. The lawmakers' opposition makes it more difficult for Democratic leaders to move the bill without a threat of a Republican filibuster.” Roll Call calls Sen. Jon Kyl a quiet but effective whip. He may lack "the sizzle and spark" of Trent Lott, but he counts votes by "cajoling with substance rather than style." Roll Call reports he was visibly angry and used the word "bull----" -- though the congressman denies that. DeFazio, a member of the Transportation and Infrastructure subcommittee, "has convened a meeting in his office today for TSA officials to explain the security measures, which he called ineffective."
CONNECTICUT : The Wall Street Journal looks at how the now-vulnerable Sen. Chris Dodd is handling the AIG issue.
The DSCC fired off this statement in response to Rob Simmons’ declaration that he will run against Dodd: “Rob Simmons is no moderate – he was a staunch supporter of George Bush’s failed economic policies and this race will be an opportunity to hold him accountable for that record. As someone with close ties to Jack Abramoff and Tom DeLay, Rob Simmons is a candidate who comes to the race with all the sins that have plagued this Republican Party over the past eight years. Meanwhile Sen. Dodd is working hard with President Obama to get this economy back on track, fight for Connecticut families, and deliver real relief for middle class families.”
The Hill : “[D]espite Dodd’s waning poll numbers, Simmons will have to deal with two big obstacles: a trend against Republicans in the Northeast and a potentially crowded primary field."
OHIO : Roll Call dives into the Senate Democratic primary in Ohio. "A problematic 2010 primary in the Buckeye State could complicate a top pickup opportunity for Senate Democrats, who face the very real prospect of a multicandidate bloodbath..."
PENNSLYVANIA : Leave it to the always-gabby Ed Rendell to let the word get out Democrats are trying to convince Arlen Specter to switch parties.
TEXAS : "Sen. Kay Bailey Hutchison (R-Texas) now appears likely to stay in the Senate even as she runs for governor, counter to what was originally expected when she began preparing to seek her state’s top post last year," Roll Call reports.
From NBC's Athena Jones
Treasury Secretary
Tim Geithner today called on banks to make an extra effort to "serve the larger public good" by making loans available to creditworthy borrowers, as he and the president announced a plan to help small businesses get the loans they need to grow and to create jobs.
President Obama and other officials have said repeatedly that unlocking the credit markets was key to economic recovery. The program announced today would temporarily increase government guarantees for Small Business Administration loans to 90% and eliminate fees on loans as well as buy $15 billion in securities backed by SBA loans to help jumpstart the secondary markets that are key to liquidity in the system.
Part of the reason government help for struggling banks has drawn the ire of much of the American public is that the help has not translated quickly into more loans for companies that want to expand and individuals that want to purchase cars, homes, or send their children to college.
Today, Geithner made a point of urging banks to get on board. "You banks need to make extra effort to make sure that good loans are getting to creditworthy small businesses in order to serve the larger public good of moving this nation to recovery," he said. "And given the role that many banks played in causing this crisis, you bear a special responsibility for helping for helping America get out of it."
CONTINUED >>
From NBC's Domenico Montanaro Michael Steele just doesn't stop.
He sat in and guest-hosted Bill Bennett's conservative radio program on Friday, March 6th, and didn't likely do himself many favors. (Hat tip: Sam Stein, Huffington Post
How does the current RNC Chairman have the time to host a radio show?
Anyway, on the program, he was his usual boisterous, free-wheeling self.
"I've survived my first month of RNC Chairman," he proclaimed. He called charges against him "99% made up by our opponents," specifically CNN and MSNBC, who are trying to "blow things up."
He added that his tough week, spurred mostly by a GQ interview in which he called abortion an "individual choice," was "part of an orchestrated plan by [James ] Carville and Rahm Emanuel . ... "It's been an instructive week."
CONTINUED >>
From NBC's Mark Murray calbuzz ," is no.
The duo write, "As reporters who covered Feinstein over several decades as a mayor, statewide candidate (including her losing 1990 race for governor against Pete Wilson ) and U.S. senator, we recognize the signs of her obsessive flirtation with the political spotlight, and offer three words you can take to the bank: She won’t run."
The reasons Roberts and Trounstine cite are policy (she's better positioned to work on that in the Senate), politics (she has scars from past tough races), and personal (she's 75 years old).
From NBC's Mark Murray AP reports that the Obama administration today rejected South Carolina Gov. Mark Sanford's (R) request to use his state's $700 million in stimulus money to retire debt. "White House Budget Director Peter Orszag said in a letter to the Republican ... that the federal stimulus law doesn't allow President Barack Obama to make an exception for that cash. Sanford sought a waiver last week, asking to pay off debt rather than use the money to create jobs and avoid deep program cuts." *** UPDATE ***
"In the meantime, part of a truly constructive response would be to call off the attack dogs from the DNC who are now attempting through political attack ads to determine our course of action. It's time for the President's game of good cop, bad cop to end, and therefore we again ask him to end these ads so we can engage in a productive dialogue on the merits or our request."
From NBC's Mark Murray and Chuck Todd Bush era, this news should probably end it.
The National Republican Senatorial Committee and National Republican Congressional Committee today announced that Alaska Gov.
Sarah Palin will keynote their dinner in DC on June 8, which is the biggest fundraising event the GOP will be holding in 2009.
From NBC's Jeff Rossen and Domenico Montanaro Andrew Cuomo 's office sent a letter to AIG , demanding the names, titles and salaries of all executives receiving bonuses.
Cuomo has set a deadline for 4 p.m. today, and has threatened to issue subpoenas if information is not received by then.
"We were disturbed to learn over the weekend of AIG's plans to pay millions of dollars to members of the Financial Products subsidiary through its Financial Products Retention Plan," Cuomo writes in the letter. "Financial Products was, of course, the division of AIG that led to its meltdown and the huge infusion of taxpayer funds to save the firm. Previously, AIG had agreed at our request to make no payments out of its $600 million Financial Products deferred compensation pool. ... Covering up the details of these payments breeds further cynicism and distrust in our already shaken financial system. ..."
*** UPDATE ***
CONTINUED >>
From NBC's Mark Murray President Obama denounced the millions of dollars in bonuses awarded to executives and workers at American International Group.
Video: Obama comments on the AIG employee bonuses at the White House. The president then said he was directing Treasury Secretary
Geithner to "pursue every legal avenue to block these bonuses and make the American taxpayers whole."
And he fired this shot: "All across the country, there are people who work hard and meet their responsibilities every day, without the benefit of government bailouts or multi-million dollar bonuses. And all they ask is that everyone, from Main Street to Wall Street to Washington, play by the same rules. That is an ethic we must demand."
From NBC's Mark Murray TV ad the Democratic National Committee is airing that blasts South Carolina Gov. Mark Sanford's opposition to $700 million in stimulus funds for his state. "South Carolina is facing tough times," the ad goes, "but Gov. Sanford is playing politics instead of doing what’s right. Turning down millions in recovery act funds, putting politics ahead of health care, jobs and schools."
Well, Sanford is now asking for Obama to stop the DNC ad. "My opposition to the stimulus bill," he said in a statement, "was based on the merits as I saw them and has been well-chronicled, but rather than engaging our administration in that debate, Obama's Democratic National Committee instead chose to launch a political attack ad against us for not supporting the stimulus plan exactly as the Obama administration saw fit. What may fit in one state may not fit in another, and accordingly I think tailoring stimulus responses makes sense."
Sanford adds, "I don't think this approach of targeting ads against anyone who sees an issue a little differently represents the kind of so-called 'change' many people were voting for in November. In his inaugural, President Obama proclaimed 'an end to the petty grievances and false promises, the recriminations and worn-out dogmas, that for far too long have strangled our politics.' It's in that spirit that I'd respectfully ask him to end this ad, as it shatters the idea of change he so well articulated this fall -- and to ask his Democratic National Committee to put an end to this mudslinging and get back to an honest debate about the future of our country."
From Chuck Todd, Mark Murray, and Domenico Montanaro *** Rage against the machine: Anger at Wall Street and at America’s financial institutions has been simmering for a while now -- the numerous bailouts, Bernie Madoff, and Jon Stewart vs. CNBC have been just a few examples. But with the news over the weekend that AIG, 80% of which is now owned by the federal government, is awarding millions in bonuses to executives has most likely turned that anger into a furious boil. As the New York Times’ Nagourney writes, this populist backlash presents a huge challenge for an Obama administration that might have to hand out additional bailouts to further stabilize the banking industry. (“The biggest risk is that we don't have the political will,” Fed chairman Ben Bernanke warned last night on “60 Minutes.” “We don't have the commitment to solve this problem, and that we let it just continue.”) But the populist rage also might present a bigger challenge to the political party that’s more associated with big business, less regulation, and tax cuts for the wealthy. In fact, if there was a time for the Obama administration and Democrats to push to let the Bush tax cuts to expire, to press for the Employee Free Choice Act (or “card check”), or to institute new regulations, this is the time, right? Still, now’s a time when everyone in Washington is suddenly going to be channeling his/her inner-populist. Who will have the most credibility doing it? As for the short term, Congress is going to want a pound of flesh (and then some) from AIG. Obama also will discuss AIG during his remarks today (see immediately below).
Video: Leaders at the White House and on Capitol Hill are expressing outrage at AIG, which plans to use $165 million for employee bonuses and retention pay. ***
Learning their lesson? What a difference a week makes. Last Monday, President Obama held just one event on stem cells and nothing on the economy. Now fast-forward a week, and it’s all about the economy on this Monday (and also about propping up Geithner again). At 11:25 am ET, President Obama and Geithner meet with small business owners and community lenders, and then Geithner delivers remarks to these folks at noon. No one can say these guys don’t listen to criticism, particularly regarding the optics on the economy. Per
Bloomberg , Obama and Geithner will announce $375 million (from the economic stimulus) “to help small businesses to expand federal guarantees and lower lending fees to try to revive the flow of credit… Obama also will announce his intention to spend more than $10 billion in an effort to unlock the secondary credit market and increase bank liquidity.” Also today, at 2:00 pm, Obama speaks to employees at the Department of Veterans Affairs. Speaking of optics, the president has a late-night date with Jay Leno on Thursday when he travels to California. Just asking: when was the last time a sitting president did the "Tonight Show"?
*** A fundamentally rough interview: While the AIG news dominated the latter parts of the Sunday conversation, don't miss the fact that Christina Romer, chair of Obama’s Council of Economic Advisers, helped put the administration in a bit of a spinning bind today. On "Meet the Press ," when asked if the fundamentals of the U.S. economy are strong (in reference to Obama’s McCain-like remark last week about the “fundamentally sound aspects of our economy”), Romer gave a McCain-like answer, circa Sept. '08: “Well, of course the fundamentals are sound in the sense that the American workers are sound, we have a good capital stock, we have good technology.“ And, while we're not sure if the administration wanted this out there or not, Romer also admitted that we are in a war -- an analogy the administration appeared to be sidestepping last week.
Video: Christina Romer discusses the economy on "Meet the Press." ***
Budget politics: Over the weekend, GOP congressional leaders said they wouldn’t release a competitive budget proposal. This was a pitfall for the Republicans and a smart straw-man argument for the Dems. Indeed, the Democratic-leaning group Americans United for Change has a
new TV ad hitting Republicans on this very point. (“So what kind of budget have the Republicans proposed to get us out of the mess THEY created? … That’s right, nothing.”) Here's the thing: Obama has been very clever to take a little something from the GOP when it comes up with an alternative (like Recovery.gov). So instead of Republicans offering up a full alternative -- only to have Obama take one thing from them and win the PR battle on the bipartisan front -- they now don’t want to offer anything and force the debate ONLY on the Obama-Dem side of things. It's a tricky proposition, because the party could like it has no real alternative ideas. Still, the Republicans will be happy with their choice if the debate ends up being about Democrats debating Democrats. After all, this full-court press to pass the budget is a tad odd since Obama just needs 50 votes in the Senate, not 60, meaning the real target for this upcoming DNC campaign are conservative Democrats.
*** Simmons vs. Dodd: Ex-Rep. Rob Simmons (R), who lost his congressional seat in the Democratic takeover of 2006, yesterday announced that he’s challenging Connecticut Sen. Chris Dodd (D). It’s still very early -- 596 days until Election Day -- but this Senate race might very well be the GOP’s best pick-up opportunity of 2010, outside of those appointments in Colorado, Illinois, and New York.
*** Spinning more than a basketball: By the way, one of the most underrated spinners in American society: the college basketball coach. Last night, during the NCAA tourney selection, one of us listened to the spin coming from the 13-loss Michigan coach, who talked about the toughness of the Big Ten (really?) And then there was Memphis’ John Calipari making the claim that Conference USA is tough as well (double really?). Move over Congress and Robert Gibbs; the best spinners on earth might be college basketball coaches. Then again, the BCS system affords college football coaches to spin like crazy, too.
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The big news over the weekend… "Despite being bailed out with more than $170 billion from the Treasury and Federal Reserve, American International Group is preparing to pay about $100 million in bonuses to executives in the same unit that brought the company to the brink of collapse last year," the Boston Globe writes. "An official in the Obama administration said yesterday that Treasury Secretary Timothy F. Geithner had called AIG's government-appointed chairman, Edward M. Liddy, on Wednesday and asked that the company renegotiate the bonuses."
Obama economic adviser Larry Summers called AIG's bailout bonuses "outrageous ."
In response to the controversy over its bonuses, AIG “unexpectedly released the names of dozens of trading partners it has paid using billions in taxpayer dollars,” the Washington Post front-pages. “The disclosure, which the company said was made after consulting the Federal Reserve, revealed that AIG paid more than $75 billion in the final months of 2008 to numerous domestic and foreign banks, as well as to various U.S. municipalities.”
Meanwhile, “The Obama administration is increasingly concerned about a populist backlash against banks and Wall Street, worried that anger at financial institutions could also end up being directed at Congress and the White House and could complicate President Obama’s agenda,” the New York Times writes. “Mr. Obama’s aides said any surge of such a sentiment could complicate efforts to win Congressional approval for the additional bailout packages that Mr. Obama has signaled will be necessary to stabilize the banking system.”
“President Barack Obama will spend more than half of the $730 million in government funds set aside to help small businesses to expand federal guarantees and lower lending fees to try to revive the flow of credit, people familiar with the matter said,” Bloomberg News reports. “Obama and Treasury Secretary Timothy Geithner will announce the $375 million plan tomorrow as part of a strategy to bolster Small Business Administration lending, the people said. The money will come from the $787 billion economic stimulus plan Congress passed last month.”
“Obama also will announce his intention to spend more than $10 billion in an effort to unlock the secondary credit market and increase bank liquidity, the people said. White House officials are trying to counter criticism in Congress that a $700 billion financial rescue plan is benefiting mostly banks rather than consumers or non-financial companies. Banks are still hoarding cash after $1.2 trillion in writedowns and losses since 2007.”
Team Obama is unleashing its grassroots army to support his budget outline. The Washington Post’s Cillizza : “President Obama will kick off an all-out grass-roots effort today urging Congress to pass his $3.55 trillion budget, activating the extensive campaign apparatus he built during his successful 2008 candidacy for the first time since taking office. The campaign, which will be run under the aegis of the Democratic National Committee, will rely heavily on the 13 million-strong e-mail list put together during the campaign and now under the control of Organizing for America (OFA), a group overseen by the DNC. Aides familiar with the plan said it is an unprecedented attempt to transfer the grass-roots energy built during the presidential campaign into an effort to sway Congress.”
CONTINUED >>
Per the
Washington Post , “Former vice president Richard B. Cheney said yesterday that he strongly disagreed with President Bush's decision not to pardon I. Lewis ‘Scooter’ Libby, saying his former chief of staff had been left ‘hanging in the wind.’”
“‘I think he's an innocent man who deserves a pardon,’ Cheney said on CNN's ‘State of the Union,’ in what the cable news program billed as his first television interview since leaving office in January.”
Also repeating what he had said in a recent interview with Politico, Cheney
warned that President Obama was making the country less safe. “‘He is making some choices that, in my mind, will, in fact, raise the risk to the American people of another attack,’ Mr. Cheney said.”
Speaking of Bush, "The former president and first lady have already begun holding small private dinners to persuade wealthy friends to invest in a monument and incubator based on the values and events of his presidency,"
Politico writes. "By this fall, he’ll be armed with architect’s renderings and will hold travel around the country to meet with groups and build support for the complex on the campus of Southern Methodist University in Dallas."
And, per Roll Call : "During the first few weeks of the new administration, Republicans pursued a strategy of aligning themselves with Obama, repeatedly accusing Democratic Congressional leaders during the stimulus debate and other skirmishes of breaking with Obama's pledge to work with the GOP. But as Obama has pushed forward with an aggressive agenda of legislative and policy reforms, Republicans have pivoted to a more oppositional stance.”
MINNESOTA: "Lawyers for Democrat Al Franken and Republican Norm Coleman delivered their closing arguments in the case Friday, but
nobody knows when the judges will issue a ruling, which could come down in multiple parts. From there, further court action could keep the case going for weeks or months."
"Senate Majority Leader Harry Reid (D-Nev.)
issued a statement saying the decision of the three-judge panel should be respected -- opening the door to seating Franken if the case is decided in his favor. 'The Minnesota court’s ruling deserves respect and five million citizens of Minnesota deserve full representation in the U.S. Senate as soon as possible,' Reid said. 'Norm Coleman wanted his day in court, and we respect that. He’s gotten seven weeks. We all await the outcome from the three-judge panel.'"
CONNECTICUT: The Hartford Courant reports that former Rep. Rob Simmons (R) announced yesterday that he will challenge Sen. Chris Dodd (D). “Although he had been considering the race seriously for more than a month, Simmons was highly encouraged by a recent Quinnipiac University poll that showed him ahead of Dodd by 43 percent to 42 percent -- a statistical dead heat. Republicans have sensed that Dodd might be vulnerable after many Connecticut voters became disenchanted when the senator moved his family to Iowa to run in the Democratic presidential caucus last year against better-known candidates such as Barack Obama and Hillary Rodham Clinton.”
More: “Simmons and others have been critical of Dodd for refinancing two mortgages in 2003 with Countrywide Financial, one of the nation's most controversial lenders. Dodd has said he knew he was in a VIP program, but said he was not aware of -- and never sought -- preferential treatment for being on the Senate banking committee. Dodd has since become chairman of the committee. Dodd has also been criticized for his purchase of a cottage on 10 acres on an island in Ireland. The property had been co-owned by a business partner of an investor who later received a presidential pardon -- with Dodd's help -- from President Bill Clinton on his final day in office in 2001.”
NEW YORK: A Siena poll showed Republican Jim Tedisco leading Democrat Scott Murphy now by just four points in the congressional special election in NY-20. "The results are likely to have little effect on Capitol Hill, where Democrats enjoy a 76-seat advantage in the 435-member House of Representatives. But for Republicans, a win would help turn the page on the painful 2008 election and offer them a glimmer of hope at a time when Democratic President Barack Obama enjoys high approval ratings," Reuters writes.
Video: The president, Congress, Meet the Press and March Madness...
From NBC's Mark Murray Barack Obama became president, the Democratic National Committee is highlighting South Carolina Gov. Mark Sanford's (R) opposition to millions in stimulus funds for his state.
"South Carolina is facing tough times," the ad goes, "but Gov. Sanford is playing politics instead of doing what’s right. Turning down millions in recovery act funds, putting politics ahead of health care, jobs and schools."
A source says the ad will run for at least a week on cable in South Carolina.
Here's the script: Announcer: An economy in crisis, record Unemployment, skyrocketing foreclosures
From NBC's Athena Jones
It's been less than a month since
President Obama signed the $787 billion stimulus package to fanfare and applause at a ceremony in Denver. While officials argue that it is much too early to evaluate the plan's overall success in pulling the economy out of the dumps, the administration has begun to highlight some examples of improvement.
In speaking to a group of CEOs at a meeting of the Business Roundtable yesterday, the president talked about some positive news in the housing market. "As bad as the housing market has been, you're starting to see inventories decline," Obama told the group assembled at the St. Regis Hotel, just steps from the White House. "And there's a young family out there right now who's going to be thinking about buying a home, and if we can get them credit, they're going to buy that home. And if they buy that home, then that construction worker, maybe he comes in and remodels the kitchen, and that means that he can buy the computer for his kid at school. And we're off to the races."
Building confidence is key to any economic turnaround, and in recent weeks, the administration has sought to balance a realistic assessment of the current state of the economy with the kind of language that can inspire confidence.
CONTINUED >>
From Chuck Todd, Mark Murray, and Domenico Montanaro Dean vs. Steele : In the first few months after becoming DNC chair in ‘05, Howard Dean received plenty attention for controversial remarks he made. He said the GOP was “pretty much a white, Christian party.” He quipped that many Republicans “have not made an honest living in their lives.” And, appearing on “Meet the Press,” he told the late Tim Russert that Tom DeLay was likely going to jail. Those comments became fodder for the New York Times, as well as TV news. But looking back at them, they pale in comparison to what Michael Steele has said in his first few weeks as RNC chair. He suggested that the three GOP senators who voted for the stimulus (Collins, Snowe, and Specter) might face primary challenges and might not receive party funds, but the RNC later backtracked. He called Rush Limbaugh an “entertainer” who was “incendiary” and “ugly,” yet he later apologized. And then he told GQ that abortion is a “personal choice,” but later released a statement maintaining that he’s always been “pro-life.” A lot of this probably has to do with Steele trying to please his audience. He tells FOX he might be up for punishing those Northeast moderates; he interjects to DL Hughley that Limbaugh might not be that helpful; and he strikes a moderate tone on abortion to GQ. Being a chameleon often helps political candidates. But a party chair?
Video: GQ reporter Lisa DePaulo discusses her interview with RNC chairman Michael Steele in which he characterized the abortion issue as an "individual choice." ***
Steele the one? Unlike Dean’s controversial remarks -- which were aimed squarely at the opposition -- Steele’s gaffes have been noteworthy because they’ve struck at the heart of key issues the party is confronting. Is the GOP an anti-abortion party, or does it accept differing views? Does it place ideology before pragmatism, especially for senators from deep-blue states? And are Rush Limbaugh and the conservative base untouchable fixtures within the party, even as the GOP tries to widen its tent? What’s particularly ironic here is that many RNC members backed Steele because of his communication skills as a FOX commentator. But it has been precisely his lack of message discipline that has gotten him into trouble. Is Steele in jeopardy of losing his job? Conservatives are howling right now at those remarks on abortion, but
TPM’s Matt Cooper points out that it takes a two-thirds vote among the RNC’s 168 members to oust him from office, which is a pretty high hurdle to clear. Consider this question: Can the Republican Party, which is struggling to win over minority voters, see two minorities in the last two years (Mel Martinez and Michael Steele) step down as chairman of the party? What message would that send?
*** Vetting madness : Here’s another question: Has the vetting process for Obama’s sub-cabinet appointees gone a little too far? Don’t get us wrong, battles over ideology (like the case with Chas Freeman) are expected and probably healthy. Ditto questions of wrongdoing (like the investigation into alleged corruption into the D.C. office that Obama’s pick for chief information officer headed, although he isn’t a target of the probe). But should the process be holding up nominees for failing to pay a few thousand dollars in back taxes, which they later pay? To put it another way, at what point does the vetting process become so cumbersome that it really discourages folks -- Democrats and Republicans alike -- from wanting to serve in government?
*** Raising McCain : Speaking of vetting problems, GOP Sens. John McCain and Lindsey Graham released a statement yesterday expressing concern about Obama’s (and Hillary Clinton’s) pick to be ambassador to Iraq, Christopher Hill. “The next ambassador should have experience in the Middle East and in working closely with the U.S. military in counterinsurgency or counterterrorism operations,” they said. “Mr. Hill has neither.” McCain’s statement on Hill, of course, hasn’t been the only time when the Arizona senator has butted heads with the White House, despite President Obama’s charm offensive since winning in November. McCain complained about the economic stimulus, demanded that Obama veto the omnibus legislation, and even asked a pointed question at the fiscal accountability summit about the new Marine One helicopters. Back in early 2005, after he lost the presidential election, John Kerry opposed the Alberto Gonzales, Condi Rice, and John Bolton nominations; he railed against Bush’s plans for Social Security; and he began to be even a louder critic on Iraq. Then again, Kerry had his eyes on the next presidential contest. Is McCain?
*** Business weighs in : Some of the business/financial titans of the '80s and '90s are beginning to weigh in with their takes on what happened to the U.S. economy and why. On Wednesday, Alan Greenspan penned a Wall Street Journal op-ed to explain what caused the housing bubble. And now in an interview with the Financial Times , former GE chief Jack Welch says the corporate world became wrongly obsessed with short-term profits and shareholder value. This Welch interview is notable for its candor about business taking its eye off the employee-consumer-productivity ball in favor of quarterly accounting maneuvers to boost stock prices. But, politically, there is little doubt that big business and Wall Street are about as unpopular right now as they’ve ever been. And this environment, the Atlantic’s Marc Ambinder notes, might give the Employee Free Choice Act (or “card check”) a better chance of passing than the Washington establishment thinks.
*** Today’s White House agenda : At noon ET, President Obama meets with Economic Recovery Advisory Board chairman Paul Volcker (closed press), and then delivers brief remarks with his economic advisers at 12:45 pm. Biden, meanwhile, swears in Hilda Solis as Labor secretary before holding an event touting funding for Amtrak as part of the stimulus. But perhaps the biggest event today comes at 10:30 am, when White House economic adviser Larry Summers gives a speech at the Brookings Institution.
*** Carolina in my mind : By the way, so the first couple has now both visited North Carolina, one of the states Obama only narrowly won. And the Obama presidency isn't two months old... Hmmmm.
*** Wanna bet? Delaware Gov. Jack Markell (D) is expected to introduce a measure legalizing sports betting in his state, making it the first time in 30 years that sports gambling has been legal east of the Mississippi River. In retrospect, this was inevitable. Sports betting is the last gaming revenue stream that state governments are going to tap; you can’t build more casinos, and lotteries are about max-ed out. So here comes sports gaming, which right now is only legal in Vegas and the Caribbean. We bet you -- pardon the pun -- that this will be copycatted in multiple states that are DYING for more tax revenues.
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“H. Rodgin Cohen, chairman of the New York law firm Sullivan & Cromwell, has withdrawn his name from consideration for deputy Treasury secretary, becoming the fourth pick for a prominent Treasury Department post to pull out in recent weeks,” the Washington Post reports. “A prominent attorney who has advised many of the top Wall Street firms, Cohen dropped out after the White House found an issue during his vetting process, two sources familiar with the matter said. The sources declined to identify the reason. Cohen did not respond to messages seeking comment.”
Meanwhile, Politico’s Martin makes this point: “Having campaigned on a promise that lobbyists won’t run his White House, President Barack Obama is discovering that what may make for a good sound bite on the campaign trail can complicate governing. As he strives to build an administration beyond his top Cabinet officers, Obama is finding that he has limited his pool of potential appointees because of a ban on individuals from agencies that they have lobbied within the past two years. Some of the very people who would best serve in politically sensitive posts – interest group veterans, former campaign operatives or ex-Hill staffers – earn a living through lobbying.”
Given the U.S. attorney scandal, which was more damaging to Bush politically than many in the media credit, don't expect the White House to force any U.S. attorneys out of their job anytime soon .
CONTINUED >>
Obama
may announce Afghanistan plans as early as next week . Among the goals: "getting rid of terrorist safe havens in Pakistan and adopting a regional approach to reducing the threat of terrorism and extremism in both countries." The plan is expected to scale back U.S. expectations on Afghan democracy and will outline goals for the next three to five years. But officials say that doesn't mean the U.S. will be out of the country in that time.
"Turkey has become so pivotal to U.S. goals in Iraq, Afghanistan and the Middle East that President Barack Obama included it on his first overseas tour,"
AP writes. "But relations between the countries could be at risk unless Obama is willing to break a campaign promise to describe as 'genocide' the killings of Armenians by Ottoman Turks almost a century ago. Such a declaration would infuriate Turkey, which could complicate U.S. military operations in the region by withholding cooperation. This is not an obscure historical debate that Obama can avoid easily."
As military tensions with have China flared and the U.S. economy is flagging, "Advocates
fear the Obama administration may be putting the human rights issue on the back burner to focus instead on coping with the global economic crisis and national security."
While the armed services fight wars on two fronts, "The Army fired 11 soldiers in January
for violating the military's policy that gay service members must keep their sexuality hidden… The military discharged nearly 10,000 service members under the policy in a 10-year period from 1997 to 2007. The number fired each year dropped sharply after the 2001 invasion of Afghanistan, when forces were stretched thin. Whereas more than 1,200 were dismissed in 2000 and again in 2001 for violating the policy, about half as many - 627 - were fired in 2007."
The Washington Post covers the criticism that RNC chair Michael Steele has received from conservatives since calling abortion a “personal choice” in an interview with GQ. “Former Ohio secretary of state J. Kenneth Blackwell, who endorsed Steele in the RNC chairman's race, harshly condemned the remark. ‘Chairman Steele needs to reread the Bible, the U.S. Constitution and the 2008 GOP Platform,’ Blackwell said. ‘He then needs to get to work or get out of the way.’”
“Mike Huckabee, a former Arkansas governor and 2008 presidential candidate, called Steele's comments ‘very troubling’ in a post on his Huck PAC Web site. Tony Perkins, president of the Family Research Council, condemned Steele's comments as ‘cavalier’ and ‘flippant,’ adding that the chairman's remarks ‘reinforce the belief by many social conservatives that one major party is unfriendly while the other gives only lip service to core moral issues.’”
The New York Times adds, “It appears highly unlikely that there would be any serious move to recall Mr. Steele, who is barely two months into a two-year job. The political repercussions of replacing the party’s first African-American chairman would be too severe, several Republican leaders said, and there are no obvious candidates ready to take the job. Nonetheless, there were expressions of anguish over what many Republicans described as Mr. Steele’s growing pains as he takes on the role of leader of a party struggling to find its way after its defeat in the November elections. This latest episode seems likely to diminish his conservative credentials further, undercutting his ability to present his case for his party and raise money.”
The Boston Globe : "The abortion remarks … are likely to fuel the growing discontent with Steele from the influential conservatives who chose him after a six-ballot race in late January.”
CONTINUED >>
MINNESOTA : The Star Tribune writes, “The marathon U.S. Senate trial sprinted down the homestretch Thursday as DFLer Al Franken called his final witnesses and Republican Norm Coleman posed his last challenges, setting the stage for judges to hear closing arguments today. After seven weeks of testimony and thousands of bits of evidence, the end of the trial -- if not the final outcome -- is finally in sight.”
“Even as the finish approaches, one major uncertainty lingers. The panel has yet to rule on a bid by Franken to dismiss all or part of Coleman's claims. And the judges face decisions on what to do with scores of absentee ballots that Coleman claims were wrongly rejected because of errors by election officials or voters.”
Roll Call writes, "Now that the Democrat has rested his case, Franken attorney Marc Elias said both sides will present their closing arguments on Friday before the three-judge panel begins to deliberate… Given the small number of votes that could potentially be added to the final tally, it is unlikely Coleman will be able to overcome Franken’s lead." But Coleman's likely to take the case to the Minnesota Supreme Court or beyond, leaving the seat vacant for the "foreseeable future."
Looking ahead to this November and 2010, National Journal’s Charlie Cook says that “handicapping individual races is a fun sport, but the big drivers will be Obama's job-approval ratings and how the economy is faring. The moment of truth will come a little more than a year from now.”
NEVADA : Distance between Reid and Obama? “Harry Reid is in a difficult spot,” CQ writes. “As Senate majority leader, he juggles a myriad of competing political interests. He also has to balance those against his own best interest as he gears up for a potentially tough re-election battle in 2010. Lately, the Nevada Democrat has been putting some daylight between his positions and President Obama’s. It’s a strategy that might help him avoid the fate of Tom Daschle, who was defeated for re-election in South Dakota in 2004 despite being the Senate’s top Democrat. Reid … recently has made a point of saying he’s working with Obama, not for him.”
NEW YORK : Is something going on with the special for NY-20 between Jim Tedisco (R) and Scott Murphy (D)? “Reacting to his Democratic opponent’s surge in the polls, Tedisco said Thursday he’s taking control of the content of his advertising from the National Republican Congressional Committee. ‘I’m taking over and we’re going to run a campaign that relates to the people of the 20th Congressional District,’ he said.”
“The first depiction of ‘the real Jim’ will air in a new television commercial set to debut this evening, he said. A new Siena Research Institute poll released Thursday showed Tedisco leading Democratic, Independence and Working Families candidate Scott Murphy by 4 percentage points, which is close to a statistical dead heat once a 3.7 percentage point margin of error is factored in. Tedisco had a 12 percentage point lead in the previous Siena poll two weeks earlier.”
VIRGINIA : As Goode as it gets? "Republicans appear to have another repeat candidate in 2010, as former Rep. Virgil Goode (R-Va.) has filed to reclaim the seat he lost in November."
From NBC's Chuck Todd A senior White House official tells NBC News that the president's choice to be the nation's chief information officer,
Vivek Kundra , has taken a leave from his position until further details become known of the FBI's investigation into Kundra's Washington, D.C. IT offices.
While the FBI has said Kundra is not connected to their investigation of a contractor that was under Kundra's supervision, the appearance apparently is enough to force Kundra to take a leave from the White House.
From NBC’s Jim Miklaszweski
Pentagon and military officials believe the president "is interested in looking at all possible options," if needed to step up security on the U.S.-Mexico border. The officials insist there is no consideration of deploying U.S. military forces, active or Guard across the border into Mexico.
In 2006, President Bush authorized the use of 6,000 National Guard forces, primarily to conduct surveillance operations and other more routine customs duties along the U.S.-Mexico border, freeing up Customs and other federal agents to conduct counter-drug, immigration and other policing duties.
CONTINUED >>
From NBC’s Pete Williams
The former head of the office, Vivek Kundra , was just last week named by the president to be Chief Information Officer for the Obama administration, but officials say he was not a target of the investigation.
The FBI vetted his White House appointment. If he had been thought to be involved in any corruption at that point, it would have been flagged, one official says. But, the official cautions, who knows where the investigation will go from here?
The D.C. office searched today handles all of the city's computer contracting and maintains many city records, including the terms of local government contracts.
From NBC’s Ken Strickland Obama wanted Republican Judd Gregg as a member of his cabinet: He's one of the sharpest money-minds in Congress.
But instead of getting Gregg's counsel within the administration, Treasury Secretary Tim Geithner found himself today of the receiving end of Gregg's fiscal conservative wrath.
In a hearing before the Senate Budget Committee Gregg dressed down Geithner with facts, figures, and charts. While always keeping his cool, the exchange was somewhere between a mother's scolding, a drill sergeant's questioning and an attorney's cross examination.
In his opening statement, Gregg politely called the administration's budget forecast a lie.
CONTINUED >>
From NBC's Chuck Todd Arne Duncan's interview last night with Charlie Rose.
CONTINUED >>
From NBC's Domenico Montanaro Michael Steele has come under criticism for statements he’s made so far -- from some even in his own party.
We mentioned this morning his lengthy, wide-ranging Q&A with GQ . The big news from the piece was his comments on abortion, calling it an “individual choice.”
Steele issued a statement through an RNC spokesperson to clarify his views and tries to walk back and redefine his "choice" remark.
"I am pro-life, always have been, always will be," Steele said. "I tried to present why I am pro life while recognizing that my mother had a ‘choice’ before deciding to put me up for adoption. I thank her every day for supporting life. The strength of the pro-life movement lies in choosing life and sharing the wisdom of that choice with those who face difficult circumstances. They did that for my mother and I am here today because they did. In my view Roe vs. Wade was wrongly decided and should be repealed. I realize that there are good people in our party who disagree with me on this issue. But the Republican Party is and will continue to be the party of life. I support our platform and its call for a Human Life Amendment. It is important that we stand up for the defenseless and that we continue to work to change the hearts and minds of our fellow countrymen so that we can welcome all children and protect them under the law.”
During the GQ interview, Steele also said he thinks Roe v. Wade was “wrongly decided.”
But he wasn't so strident on Meet the Press in 2006, when he was running for senator in Maryland against Ben Cardin . Steele said then that Roe v. Wade should actually remain in place, and he deflected questions on supporting a constitutional amendment.
CONTINUED >>
From NBC's Chuck Todd and Abby Livingston
There's no 9/11 Commission, no Iraq Study Group, no Warren Commission. Sure, a few have proposed the idea, including JP Morgan Chase CEO Jamie Dimon, former GOP presidential candidate Sen. John McCain with Sen. Byron Dorgan , as well as Republican Congressman Darrell Issa , but no one else has jumped on the bandwagon.
CONTINUED >>
From NBC's Mark Murray Mike Bloomberg's supporters worked to overturn the city's term-limits law, and with Bloomberg expected to cruise to re-election, it increasingly looks like his top potential challenger -- Rep. Anthony Weiner (D) -- will sit out the race.
As the New York Times writes, "After delivering seemingly ironclad vows that he would run for mayor, ... Weiner cast serious doubt on his candidacy on Wednesday, telling supporters that he would not decide whether to enter the race until late spring... In a letter to about 1,300 campaign supporters, Mr. Weiner, who has already raised about $6.6 million for the race, said he would make up his mind at the end of May, three months before the primary. At that time, he wrote, he would 'look at the lay of the land again and try to determine the best political course.'"
Weiner told his supporters, the Daily News adds, that "he is consumed by woes in Washington ... 'There is a time for politics, but this is a time for problem solving,' he said. 'And boy, do we have a lot of problems to solve in Washington today.' Weiner's comments came just days after he declared at an MTA press conference, 'I'm running for mayor.'"
From NBC's Athena Jones Vice President Biden -- whom President Obama put in charge of overseeing the implementation of the stimulus package -- told the 49 out of 50 states represented at a White House conference this morning that they must spend stimulus money wisely, or risk losing help from the federal government in the future.
His tough talk seemed meant to show that, as Obama said at his recent address to Congress, "nobody messes with Joe."
"This is a crisis," Biden told the states. "It requires the exercise of discipline accountability and transparency like nothing we've ever done... I'm not kidding about that."
He continued, "The work you're doing is gonna be critical to the economic well being of the country. If we don't get this right, folks, this is the end or our ability to convince the Congress that anything should go to the states."
More from the vice president: "If six months from now, if the verdict on this effort is we've wasted money, we've built things that are unnecessary, we've done things that were legal but made no sense, then folks, don't look for help from the federal government for a long while."
Biden also said that Obama would be announcing regulations for spending recovery money on Friday. "You're gonna see regulations announced Friday by the president with me ... about things you'd ordinarily spend money on ... but won't be able to
"Here's a little hint," he added," no swimming pools in this money."
From Chuck Todd, Mark Murray, and Domenico Montanaro Is this war? Opinion leaders are beginning to come to this conclusion: America is at war dealing with this economic crisis. Warren Buffett was the first to say it earlier this week. Then yesterday, the New York Times’ Tom Friedman declared, “Economically, this is the big one. This is August 1914. This is the morning after Pearl Harbor. This is 9/12.” And the Washington Post’s Steven Pearlstein added, “What we are facing is the economic equivalent of a war.” All three men posed this question: If we’re at war, then why aren’t people acting like it? Why isn’t the Obama administration, instead of scoring easy hits on Rush Limbaugh, doing everything it can to develop a clear and transparent plan to fix the banking crisis? Why does the Republican Party seem more interested in 2010 and 2012 than rolling up its sleeves to work with Democrats? Why are folks on Wall Street engaged in short-selling -- i.e., betting against the economy? And why is the press covering all of this like a political campaign or expecting that, on Day 52, Obama should have already been able to turn the economy around? David Ignatius also makes this point: "The culture of immobilism starts on Capitol Hill. These people are still working a four-day week, taking Fridays off so they can run home and tell constituents how diligent they are. They may talk about a crisis, but they don't act like it's real."
*** The White House’s view: Asked yesterday whether he agrees with the "war" comparisons, White House press secretary Robert Gibbs sort of agreed, but with a caveat. "I don't think that should -- I don't think it cuts down on the -- I mean, some have intimated that because of that there shouldn't be dissent. I think the President doesn't subscribe to that. The President believes that good ideas are not the province of just one political party … [But] I think the challenges that we face, there's no doubt, are as big as any we've seen and our economy is challenged unlike it's been since World War II."
*** Walk the line: It was fairly easy to toss around some form of the word "hypocrisy" yesterday -- from the lawmakers who opposed the omnibus but still asked for earmarks, to even the president who seemed to want to have it both ways on getting tougher on earmarks but still signing the bill. Here’s one reason why Obama decided to sign the $410 billion omnibus: He’s walking a line with Congress. He doesn't want to publicly embrace the legislative branch, because while more popular than last year, it's still unpopular. But he also doesn't want to publicly alienate Congress, either. So he's picking his battles, and the spending bill was a battle he chose not to pick. He still has plenty of political capital to withstand criticism from true believers, who wish he would come into Washington like a new sheriff ordering change at a moment's notice. But he still needs Congress’ help on several matters, including getting the Finance Committee to speed up its ridiculously slow confirmation process to get key Treasury staff filled. There will come a time (that’s politically more convenient) when Obama will pick a fight with Congress. But yesterday wasn't that time. The key for Obama, though, is to make sure the public and the media don't get overly cynical by what was clearly a pragmatic decision.
*** The controversial case of Chas Freeman: Two days after he withdrew his appointment to become the Obama administration’s National Intelligence Council, Charles W. Freeman continues to be a subject of attention and controversy. Today, his withdrawal is the focus of front-page pieces by the New York Times (“Israel Stance Was Undoing of Nominee for Intelligence Post”) and the Washington Post (“Intelligence Pick Blames ‘Israel Lobby’ for Withdrawal”). David Broder chimes in, calling Freeman’s exit “an ignominious end to one of the most distinguished international careers in American government.” And so does the Washington Post editorial page , which calls him a “poor choice” for the job. While the Washington Post editorial page denies that pro-Israel groups campaigned for Freeman to withdraw, the episode reminds us of this lesson: Criticizing Israel -- legitimately or not -- is the ultimate third rail of American politics, even in a new administration promising change.
*** The controversial case of Michael Steele: There are two ways to look at Michael Steele's comments on abortion in GQ . Some on the right might believe he gaffed when he called abortion an "individual choice." If Steele wants to be the chairman of a party that a majority believe is a pro-life party than using the word "choice" could be grounds for dismissal by some. On the other hand, there are others who will argue that Steele might be helping the party get past the debate a tad. But his comments on abortion weren’t the only eyebrow-raising parts of the interview. There’s his language ("Aw, sh--" at the top of the interview when the reporter mentions she thought hip hop would be playing; he calls it "friggin' awesome" that "in 2009 two black men would sit on top of the political world of this country"). He said he was "bothered" by not being able to meet with Obama, whom he reached out to "brother to brother," yet added that people still don't know who Obama is and wasn't bothered by questions of whether he was a Muslim. He called McCain’s pick of Palin a "ballsy move" that the media was "threatened" by. He said blacks would "riot" if Starbucks closed). And what Steele, the former seminarian, prays for -- "I ask God, 'Hey, let me show just a little bit of love, so I absolutely don’t go out and kick this person’s ass.'" The interview might serve to create more room for Steele critics inside the GOP to, well, push him aside -- either physically from his position, or like some Dems did with Howard Dean (to be the excuse to start up rival or alternative party building organizations).
*** The Inside Man: Margaret Carlson gets to the issue when it comes to Treasury Secretary Geithner: "Here’s Geithner’s problem: He’s an Inside Man. Inside Man has the brain of Einstein and the presence of a flea. Inside Man can’t catch a break in our telegenic age.” If given time and the economy begins to turn around, Geithner's style could end up being an asset in the long term. But right now, for a jittery Wall Street, it's a liability. Geithner came from a world where it was better to keep a wall around him (at the Fed). Yet this job is as much about public P.R. with Wall Street or with Corporate America, as it is about doing the work behind the scenes. Perhaps with that in mind, Geithner ramps up his public activities today. In his fourth in a series of hearings on Obama’s budget, the Treasury secretary testifies today before the Senate Budget Committee before attending the Business Roundtable’s quarterly meeting, where he will discuss the administration’s plan to stabilize the financial industry. Yet this story probably doesn’t help Geithner much: “U.S. President Barack Obama and Treasury Secretary Timothy Geithner received failing grades for their efforts to revive the economy from participants in the latest Wall Street Journal forecasting survey.” By the way, why hasn't the president physically gone to Wall Street? If this is an economic war, wouldn't it be prudent to sit down and publicly calm the folks on the frontlines?
*** Sanford and sons: Returning to our lead thought this morning, here’s perhaps another question: If we are facing an economic war, then why are some governors refusing stimulus money? On Tuesday, South Carolina Gov. Mark Sanford (whose state has a 10.4% unemployment rate) said he wants to use $700 million in federal stimulus money to pay down the state’s debt. This comes as the Washington Post runs a front-page story about South Carolina’s economic woes. The headline: “More Need, Less Help.” The subhead: “As South Carolina’s job losses mount, agencies and charities are stymied by budget cuts and politics.” What do stories like this one do for Gov. Mark Sanford's legacy as he prepares to run for president in 2012? It could help him with the GOP base but hurt him if he ever becomes the nominee for a general.
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The AP previews today’s Obama-Biden stimulus meeting at the White House. "Obama, Vice President Joe Biden and officials from across the country were to meet at a White House conference Thursday to discuss how states want to use their dollars. Administration officials will discuss states' efforts to rebuild their budgets and trim their unemployment rolls."
Obama’s call for earmark reform, after signing the $410 billion omnibus yesterday, gets some critical coverage in the big papers. The Washington Post : “President Obama's call to rein in the use of earmarks was met with derision yesterday even from some of his past reformer allies, dealing an early blow to his attempt to change how business is done in Washington.”
The New York Times : “The new rules, along with other regulations enacted by majority Democrats over the last two years, could force more transparency and scrutiny over legislative spending requests. But Republicans predicted that little would change, and independent watchdog groups complained that the rules should have gone further.”
CONTINUED >>
Could the Americans be walking into a European buzz saw when it comes to the debate over whether governments should go into debt to fund stimulus? It appears so -- Geithner and Obama are both finding themselves having to now campaign for a worldwide stimulus in the same way Obama was campaigning for a U.S. stimulus a few weeks ago.
The Washington Post : “Treasury Secretary Timothy F. Geithner yesterday unveiled a sweeping plan that calls on the United States and other nations to offer billions more to bail out economies in crisis and prods a reluctant Europe to prop up the reeling world economy with more aggressive government spending… Geithner said the administration will ask Congress to make $100 billion more available -- nearly doubling the current U.S. commitment -- to the International Monetary Fund to aid struggling nations.”
Meanwhile, Freddie needs $30 billion MORE in taxpayer funds.
This is the type of lead that only shakes the public's confidence even more about bailouts. Per USA Today , "The federal official policing how the $700 billion financial rescue package is spent told Congress on Wednesday that he is investigating whether political pressure affected the distribution of the money."
CONTINUED >>
“Levi Johnston and Bristol Palin, the teenage daughter of Gov. Sarah Palin, have broken off their engagement, he said Wednesday, about 2 1/2 months after the couple had a baby,” the AP writes. While some might wonder whether this is truly political news, do remember that after the word came out that Bristol was pregnant, the McCain-Palin campaign thrust the couple into the spotlight at the GOP convention and touted their upcoming marriage. Indeed, it’s worth asking: What would have been the reaction to Palin’s convention rollout -- especially among social conservatives -- had the campaign not stressed that the young couple was getting married?
In his Wall Street Journal op-ed , Karl Rove criticizes the Obama White House for picking a fight with Rush Limbaugh. “Was it smart politics and good policy? No. For one thing, it gave the lie to Barack Obama's talk about ending "the political strategy that's been all about division" and "the score-keeping and the name-calling." The West Wing looked populated by petulant teenagers intent on taking down a popular rival. Such talk also shortens the president's honeymoon by making him look like a street-fighting Chicago pol instead of an inspirational, unifying figure. The upward spike in ratings for Rush and other conservative radio commentators shows how the White House's attempt at a smackdown instead energized the opposition.”
But the Democratic National Committee continues its focus on Limbaugh by today unveiling the winner of its contest for a billboard on Rush in West Palm Beach, FL. The winning slogan: "Americans didn't vote for a Rush to failure." The DNC says that more than 80,000 submissions were sent in, and more than 50,000 voted on the five finalist slogans.
"Following its early success in paring down the more than $900 billion economic stimulus bill to $787 billion, a group of 15 to 20 Democratic moderates plans to formally announce next week that it is aligning as a loose coalition or working group focused on deficit reduction and fiscal responsibility. While not identical to the long-established House Democratic Blue Dog Coalition, the group is eyeing a similar role,"
Roll Call reports. "Led by Sens. Evan Bayh (D-Ind.), Tom Carper (D-Del.) and Blanche Lincoln (D-Ark.), members said early press reports of their meetings were mischaracterized as an opposition group to President Barack Obama’s agenda and budget. But they acknowledge that they are seeking to restrain the influence of party liberals in the White House and on Capitol Hill."
Meanwhile, "President Barack Obama on Wednesday
huddled with Democrats on the Senate and House budget committees, the latest in a series of White House meetings designed to set the table for the year with key factions of the Democratic Caucus."
CONNECTICUT: Joe the Forgiver? Joe Lieberman is backing Chris Dodd for Senate despite Dodd backing Ned Lamont in 2006.
FLORIDA: The Hill looks at the congressional race to replace Kendrick Meek, who’s running for the Senate.
LOUISIANA: "The Transportation Security Administration is examining Sen. David Vitter's much-reported decision to open the closed gateway door to his plane -- even though he was warned against it by an airline worker."
NEW YORK: "A small but vocal core of New York House Democrats still doesn’t think very highly of Sen. Kirsten Gillibrand (D-N.Y.). The question now is whether any of these detractors has the moxie to launch a 2010 primary challenge against the state’s recently appointed junior senator," Politico reports.
From NBC's Mark Murray Evan Bayh (D) opposed yesterday's $410 billion omnibus spending bill because it was "bloated" and included $7.7 billion in earmarks. “At a time when so many American families are tightening their belts to make ends meet, Congress should be as equally committed to living within its means," he said in a statement.
Senate Minority Leader Mitch McConnell (R-KY) called the spending bill a "missed opportunity" and urged President Obama to veto it. "The bill costs far too much for a government that should be watching every dime," he said.
And Oklahoma Sen. James Inhofe (R) said in opposition to the legislation: "Each and every time, whether a Republican or Democratic initiative, I have refused to go along with big government spending or big government solutions."
But as it turns out, according to Taxpayers for Common Sense , Bayh had four solo earmarks attached to his name in the legislation, worth $2.7 million; McConnell had 36 totaling $51 million; and Inhofe had 34 earmarks worth $53 million.
Indeed, of the 35 U.S. senators who opposed the omnibus spending bill last night -- in the form of a "no" on the cloture vote -- 28 of them had solo earmarks in the legislation.
In total, according to Taxpayers for Common Sense, these 28 senators had a combined 307 solo earmarks totaling nearly $240 million. The breakdown is below.
When First Read asked Bayh's office why he opposed the legislation yet had earmarks in it, spokesman Eric Kleiman replied, "Bayh ranks 78th in total earmarks in the omnibus bill. He was also one of only two Dem senators to vote for the McCain amendment last week to strip all earmarks from the bill, even his own."
CONTINUED >>
From NBC’s Ken Strickland In responding to President Obama 's call for earmark reform, Senate Majority Leader Harry Reid said Congressional Democrats have already "implemented reforms that go a long way toward achieving the accountability and transparency."
And while not overly embracing the president's proposals today, Reid said he looks forward to "exploring" additional reforms.
In a written statement today, Reid said, "After years of uncontrolled growth in earmarks, Democrats assumed the majority in 2007 and quickly implemented the most sweeping transparency and accountability reforms in history. Last Congress we increased transparency to unprecedented levels and cut earmarks by nearly 50 percent below their 2006 level."
CONTINUED >>
From NBC's Athena Jones
WASHINGTON -- President
Obama marked International Women's Month by signing an executive order to create the first-ever White House Council on Women and Girls, a group that will be headed by one of his closest friends.
The council, which will meet regularly, will include members of the Cabinet and of several other agencies and will be led by senior aide Valerie Jarrett. Tina Tchen, deputy assistant to the president and director of the Office of Public Liaison at the White House, will serve as the executive director.
Video: Obama establishes the White House Council on Women and Girls. Obama made special mention of House Speaker
Nancy Pelosi , who stood near him on stage at the East Room event, as an example of women breaking barriers, and he noted that he had had the privilege of participating in a "historic campaign with a historic candidate who we now have the privilege of calling Madame secretary."
CONTINUED >>
From NBC’s Jim Miklaszewski
Pentagon officials are carefully deflecting questions today about House Speaker
Nancy Pelosi 's flying habits on military aircraft.
The conservative watchdog group Judicial Watch has posted a series of e-mails from Pelosi staff members with stern complaints whenever the speaker does not get the specific G-5 plane she prefers.
"This is totally unacceptable. The Speaker will want to know where the planes are," said one email.
In another, a staffer wrote, "This is not good news and we will have some very disappointed folks as well as a very upset Speaker."
Another email complained of Pelosi canceling trips at the last minute, which rack up excessive time and money in plane and food preparations.
CONTINUED >>
From NBC's Athena Jones
WASHINGTON -- While acknowledging that the $410 billion omnibus spending bill he planned to sign today contained billions of dollars in earmarks, President
Obama asked Congress to enact new rules to govern the practice.
The president called the spending bill "imperfect," but said it was necessary for the ongoing functions of government.
Video: Obama explains why some earmarks need to be scrutinized. "The future demands that we operate in a different way than we have in the past," he said. "So let there be no doubt: this piece of legislation must mark an end to the old way of doing business, and the beginning of a new era of responsibility and accountability that the American people have every right to expect and to demand."
CONTINUED >>
From NBC's Domenico Montanaro
It has nothing to "move on" from anymore. So the organization is shifting gears to more of a legislative agenda.
It will still be involved in politics, group officials say, particularly when a member of Congress doesn't vote the way it wants or if the group feels an elected official is out of touch with his or her constituents.
One issue MoveOn says it has gotten consensus on among its members is health care. As part of its focus on trying to get health-care reform passed, it is going up with a new ad, “They See Money," which "takes on the health insurance industry for their opposition to the public health insurance plan...," per a release.
The ad hits the airwaves in conjunction with the last day of the health insurance lobby's (America’s Health Insurance Plans) Washington meeting. It will be running on national cable and locally in Washington, D.C., for a week starting tomorrow.
From Chuck Todd, Mark Murray, and Domenico Montanaro Becoming John McCain : When it comes to the topic du jour -- legislative earmarks -- it’s fascinating how the political world turned President Obama into … John McCain. That’s right, for those of us who followed the two-year-long presidential campaign, it was McCain who crusaded against earmarks, not Obama (who instead said he would work to reform the process and make it more transparent). In fact, had earmarks been the public’s top concern in November, the Arizona senator probably would have won the election. But, as we all know, it wasn’t. “As president of the United States, I want to assure you, I've got a pen … and I'm going to veto every single spending bill that comes across my desk. I will make them famous. You will know their names,” McCain said at the first debate . Obama countered, “[L]et's be clear: Earmarks account for $18 billion in last year's budget. Senator McCain is proposing … $300 billion in tax cuts to some of the wealthiest corporations and individuals in the country, $300 billion.”
*** Obama’s reform : Yet at 11:20 am ET today, President Obama will make an announcement on earmark reform, which comes after the Senate last night passed its $410 billion omnibus spending bill that contains $7.7 billion (or less than 2%) in earmarks. Of course, Obama deserves some of the blame (or credit) for all the focus on earmarks. He celebrated the fact that his stimulus didn’t contain earmarks. Also, given the humongous price tag of the stimulus, the bailouts, and the home-foreclosure plan, it was inevitable that every bit in extra spending -- i.e., $7.7 billion in earmarks -- would receive extra scrutiny. And during the campaign, in response to McCain’s rhetoric, Obama promised to reform the earmark process. “When I'm president,” he said, “I will go line by line to make sure that we are not spending money unwisely.” What has gone largely ignored, however, is the philosophical debate over earmarks. Indeed, one person’s wasteful spending and pork is another person’s important project and constituent service. After all, unless your name is John McCain, chances are that your constituents back home expect you to bring home the bacon. As the Washington Post points out, only five senators didn’t add pet projects to the omnibus: McCain, DeMint (R), Coburn (R), Feingold (D), and McCaskill (D).
*** CYA time : But let’s also make no mistake: Today’s announcement on earmark reform is intended to give Obama cover for signing the omnibus legislation, which he’s expected to do today. White House press secretary Robert Gibbs said yesterday, per the Washington Times : "Although it's not perfect, the president will sign the legislation, but demonstrate for all involved rules moving forward that he thinks can make this process work a little bit better.” But does Obama sign the bill publicly? It is important to note that the president set himself up a bit for today's criticism, since he decided to jump on the anti-earmark bandwagon and his chief of staff, Rahm Emanuel, was one of the more aggressive anti-earmark members when he was in Congress. Emanuel, in fact, was among the first to go public with his requests and push the disclosure angle. In many ways, Obama wants to take a victory lap today, noting that his push for disclosure is among the reasons we know who ordered up what earmark. Still, congressional Dems did him no favors with allowing this leftover bill to be on THIS president's desk rather than Bush. The Dems got a bit greedy.
*** Desperately seeking another spokesman : As voices from the left -- especially Nancy Pelosi’s -- keep alive the chatter about a second stimulus, the White House is looking for another spokesman to talk about the economy. White House aides admit it's difficult to find a strong voice, other than the president's, that can inspire the same level of confidence in dealing with the economic crisis. Federal Reserve Chairman Ben Bernanke doesn't have the same perceived Yoda-like hold over Wall Street that his predecessor, Alan Greenspan, had in the '90s, although Bernanke’s comments yesterday did provide some comfort to investors. Treasury Secretary Geithner was hailed as a potential savior when Obama appointed him, but stumbled early. But last night, Geithner was on “Charlie Rose.” And now the White House is pushing out chief economic adviser Larry Summers and Christina Romer -- who appeared on TODAY this morning -- to play more public roles. They need one or more of these four key folks to catch fire among the muckety-mucks on Wall Street.
Video: Christina Romer talks about how Obama is handling the troubled economy. ***
Strings Attached : Isn't it good news for the government bailout plan that some banks want to give the money back because they don't like the strings? The
New York Times : "Some bankers say the conditions have become so onerous that they want to return the bailout money. The list includes small banks like the TCF Financial Corporation of Wayzata, Minn., and Iberia Bank of Lafayette, La., as well as giants like Goldman Sachs and Wells Fargo. They say they plan to return the money as quickly as possible or as soon as regulators set up a process to accept the refunds.” Also, the
Wall Street Journal is reporting that some investors now don't like the papers they have to sign to participate in the TALF investment plan to buy up toxic assets. Isn’t this what Congress wants to hear?
*** The never-ending recount : As we’ve said before, the Minnesota Senate race -- which has now extended 127 days since Election Day -- will someday, somehow come to end. And today, the Minneapolis Star Tribune reports, we’re reaching another milestone as Al Franken’s (D) team calls its final witnesses in the trial over the recount. This means that the trial will soon be over (but that also means that we might be headed next to the state Supreme Court and then the U.S. Supreme Court). Appearing on Capitol Hill yesterday , Franken said, "I believe that we're going to win the election contest, and after that Sen. Coleman (R) can choose to do what he wants." Then Franken predicted that Coleman would appeal the contest to the state Supreme Court, if the Republican loses the election trial. and
*** Michelle Obama watch : The first lady, celebrating International Women’s Day, heads today to the State Department, where she will join Secretary Clinton in presenting the Secretary of State’s Award for International Women of Courage. Tomorrow, she travels to Fort Bragg, NC to visit with military families.
Video: Rachel Maddows reports on Michelle Obama's visit to Fort Bragg. ***
Remember him? And remember John Edwards? He spoke in public last night, and the
lead to the story was about the topic he did NOT address. “Former U.S. Sen. John Edwards took another tentative step into the public spotlight tonight, speaking at Brown University about extreme poverty around the world and urging Americans to get involved in what he called a ‘fundamental moral issue.’ Edwards, a two-time candidate for the Democratic presidential nomination, has struggled to get his message heard since a scandal about an affair he had with a former campaign staffer enveloped his personal life.”
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“The Senate gave final approval last night to a $410 billion spending bill to fund most of the federal government for the remainder of the year after overcoming a resilient Republican opposition and several Democratic defections,” the Washington Post reports. “The bill, which includes thousands of controversial earmarks inserted by members of both parties, was approved on a voice vote after eight Republicans joined 54 Democrats in backing a procedural measure to bring the long and rancorous debate to a close. President Obama has indicated that he will sign the legislation despite having misgivings about the earmarks.”
The New York Times : “The Senate’s approval came after one last round of angry debate over a number of amendments, including a feud between the majority leader, Senator Harry Reid of Nevada, and Senator David Vitter, Republican of Louisiana, over competing proposals to eliminate automatic annual cost-of-living pay increases for members of Congress. Mr. Vitter wanted a provision ending the pay raises to be attached to the spending bill, while Mr. Reid proposed stand-alone legislation that would have to be approved separately by the House. Mr. Vitter blocked Mr. Reid’s proposal, calling it legislative trickery, only to then have his own amendment fail by a vote of 53 to 45.”
“The spending measure now goes to President Obama, who will sign it on Wednesday.”
As the Washington Times writes, Obama will do this as he also unveils “new rules to restrict the practice of pork-barrel spending… ‘Although it's not perfect, the president will sign the legislation, but demonstrate for all involved rules moving forward that he thinks can make this process work a little bit better," said White House press secretary Robert Gibbs.”
CONTINUED >>
The New York Times has this interesting article. “President Obama will soon begin naming a small stream of nominees to the federal appeals courts, administration officials said, a step that will provide the first signs of how much he intends to impose any ideological stamp on the nation’s judiciary. White House lawyers have compiled lists of likely candidates for vacancies on several of the 12 regional appeals courts, notably those based in Richmond, Va., and New York.”
“Lawyers, scholars and political scientists have been watching closely to see whether and how much Mr. Obama will use his power to nominate judges to counterbalance the evident rightward shift of the federal courts under President George W. Bush. The earliest setting for that question to be played out is likely to be the United States Court of Appeals for the Fourth Circuit, based in Richmond, which appears on the verge of stark change.”
The Washington Post : “Charles W. Freeman Jr. withdrew yesterday from his appointment as chairman of the National Intelligence Council after questions about his impartiality were raised among members of Congress and with White House officials… Freeman had come under fire for statements he had made about Israeli policies and for his past connections to Saudi and Chinese interests.”
Freeman his the "Israel lobby" on the way out the door . "The libels on me and their easily traceable email trails show conclusively that there is a powerful lobby determined to prevent any view other than its own from being aired, still less to factor in American understanding of trends and events in the Middle East," he wrote. "The tactics of the Israel Lobby plumb the depths of dishonor and indecency and include character assassination, selective misquotation, the willful distortion of the record, the fabrication of falsehoods, and an utter disregard for the truth."
CONTINUED >>
"Even though Bush is keeping quiet in Texas before heading out on a lucrative speaking tour, an informal network of former aides is keeping his views in the political bloodstream, defending his legacy in TV appearances and backgrounding reporters about his record," Politico's Mike Allen reports. "Former White House press secretary Ari Fleischer calls the Bush pundits 'a loose confederation of people united in our belief in what President Bush did, and we’re freer now to talk about some things than we used to be — good and bad.'"
The New York Daily News looks at the "new" (old) faces of GOP leadership, including Michael Steele, Rush Limbaugh, Sarah Palin, Eric Cantor, Newt Gingrich, Bobby Jindal, Charlie Crist, Mark Sanford, Mitch McConnell, John Boehner, Mitt Romney, and... "Joe the Plumber."
MINNESOTA : The Minneapolis Star Tribune writes, “The long-running Senate election trial is about to reach another milestone. DFLer Al Franken expects to call his final witnesses today, and his lawyers are proclaiming they are confident that they will have proved their case… Tuesday's announcement from the Franken campaign opens the possibility that the trial could end soon and perhaps go to three-judge panel as early as next week.”
More: “Coleman, who challenged the election recount that ended with Franken holding a 225-vote lead, has the burden of proving that he, not Franken, is the rightful winner, and his side took more than five weeks to present its case. If Franken's side wraps up its case today, it will have taken only seven days.”
The Employee Free Choice Act (or “card check”)
is shaping up to be another 2010 issue -- before it's even debated in Congress. Those with the targets squarely on their backs: "Republican Arlen Specter (Pa.) and Democrats Blanche Lincoln (Ark.), Michael Bennet (Colo.) and Harry Reid (Nev.) will be front-and-center as the bill progresses in the coming months, and all are facing tremendous pressure from both sides of the issue as they prepare to face voters in 18 months." (So the talking-point 2010 issues so far: the stimulus, bailouts and card check.)
Is the GOP going retro (or just running re-treads)? "The preponderance of retread candidates isn’t a coincidence. It’s part of a concerted effort to recruit proven fundraisers with wide name recognition in an effort to blunt the advantages of incumbency." (See Rob Portman, Roy Blunt, Rob Simmons, Mike Castle, John Sununu, George Pataki, Bob Beauprez.)
CALIFORNIA : The date is set
for the special election to replace Labor Secretary Hilda Solis in CA-32 -- July 14. "But the more significant date," Roll Call notes, is May 19th, the date of the Congressional primary. If someone gets 50% they win. If not, the top vote-getters from each party move on to the July 14th election.
From NBC's Mark Murray Washington Post and other news outlets have reported on the controversial appointment of Charles W. Freeman to lead the National Intelligence Council. The controversy -- he has occasionally criticized Israel's policies.
More: "Opposition to Freeman's appointment has been led by several pro-Israel groups and advocates in the United States, joined by some members of Congress."
Well, Freeman withdrew from consideration today. According to a statement from the DNI's office, "Director of National Intelligence Dennis C. Blair announced today that Ambassador Charles W. Freeman Jr. has requested that his selection to be Chairman of the National Intelligence Council not proceed. Director Blair accepted Ambassador Freeman's decision with regret."
From NBC’s Pete Williams
The Jack Abramoff lobbying scandal has claimed another casualty.
Today, it's
Ann Copland , a former legislative aide and executive assistant for nearly 30 years to Sen.
Thad Chochran , a Mississippi Republican.
She admitted today that from 2002 through 2004, she illegally accepted favors from Abramoff and two of his lobbying colleagues, which they gave her in hopes of getting her to help them get favorable treatment for an Indian tribe they represented.
Prosecutors say Abramoff and his colleagues gave her thousands of dollars worth of concert tickets as well as meals and drinks at Washington restaurants and bars. And they say she wasn't shy about making requests. For example, they say she sent this e-mail request in March 2002:
McCartney: 2 or 4
Subsequent e-emails show Abramoff telling one of his lobbyists, "She'll get everything she wants."
GITMO inmates call 9/11 ‘badges of honor’
CONTINUED >>
From NBC’s Mike Viqueira
House Speaker
Nancy Pelosi says that it's all about "confidence" and getting people to understand that Congress and the administration are on top of the situation when it comes to the economy.
Meanwhile, a prominent economist who advised
John McCain last year, but who lately often turns up with Democrats says that "another stimulus is a reasonable probability" and that more money will likely be needed for the banks and to help with foreclosures.
Pelosi and economist Mark Zandi together spoke to reporters after a closed-door meeting of House Dems and economists.
Pelosi says what the country needs is "confidence" and "time," but adds that "we have to keep the door open" for further action. She spoke the day after Treasury Secretary Geithner spent two hours behind closed doors last night with House Democrats, addressing concerns that the administration is getting behind the curve, both in terms of policy and message.
CONTINUED >>
From NBC's Athena Jones
In a speech before a Latino group this morning,
President Obama laid out what he called "America's education strategy," arguing that raising standards for students and teachers, increasing access to early childhood education, and making college more affordable were key to the country's long-term economic health.
Video: President Barack Obama, speaking at the U.S. Hispanic Chamber of Commerce, unveils the first piece of his education plan. On the campaign trail, the president frequently linked education to the nation's global competitiveness, a theme he has reprised since the election. "The relative decline of American education is untenable for our economy, it's unsustainable for our democracy, and unacceptable for our children--- and we can't afford to let it continue." Obama told a meeting of the Hispanic Chamber of Commerce. "What's at stake is nothing less than the American dream."
The audience welcomed Obama with chants of "Si se puede" ("Yes we can") and interrupted his remarks frequently with cheers and applause.
Still, critics from industry to Capitol Hill have said the White House is trying to do too much at once and should keep the focus on the economy, rather than taking the more holistic approach Obama has touted. The president had an answer for those critics today.
"I know there are some who believe we can only handle one challenge at a time," Obama said, before ticking off the great feats past presidents like Abraham Lincoln , Franklin Roosevelt , and John F. Kennedy accomplished during difficult times. "We don't have the luxury of choosing between getting our economy moving now and rebuilding it over the long term."
CONTINUED >>
From NBC's Ashley Codianni, Lauren Appelbaum, and Mark Murray President Obama to veto the $410 billion omnibus appropriations bill and to stop earmark spending.
"It's everything that he said that he was never going to be for when he ran for president," House Minority Leader John Boehner said in the lobby at the Republican National Committee. "Now it's time for him to keep his word."
But as First Read pointed out yesterday and today , Obama never promised to eliminate earmarks from appropriations bill, or to veto bills if they contained them. Rather, he said he'd work to reform the process -- “go line by line to make sure that we are not spending money unwisely” -- but he never said he’d eliminate earmarks. However, he did tout that his economic stimulus didn't have earmarks in it.
CONTINUED >>
From NBC's Chuck Todd The Obama-Biden administration can't be all-economy-all-the-time despite what many of us in the media and Wall Street (and well, main street) are demanding. And with the VP in Belgium at NATO HQs this week, it's worth checking in on the latest thinking by this administration re: Afghanistan.
I want to highlight a portion of a Q&A Biden participated in with NATO Sec-Gen Jaap De Hoop Scheffer. Biden was asked specifically about this idea of making peace or negotiating with the Taliban.
BIDEN: Well, let me just say -- and to paraphrase Secretary Holbrooke, our Special Envoy, and I agree with his assessment after numerous visits to the region and throughout the country -- 5 percent of the Taliban is incorrigible, not susceptible to anything other than being defeated. Another 25 percent or so are not quite sure, in my view, the intensity of their commitment to the insurgency. And roughly 70 percent are involved because of the money, because of them being -- getting paid. More: "The idea of what concessions would be made is well beyond the scope of my being able to answer, except to say that whatever is initiated will have to be ultimately initiated by the Afghan government, and will have to be such that it would not undermine a legitimate Afghan government. But I do think it is worth engaging and determining whether or not there are those who are willing to participate in a secure and stable Afghan state." Bottom line: it's clear the administration, which is working on a new Afghanistan policy, is leaning against the idea of making the full elimination of the Taliban one of the goals of our military mission in the region. Some engagement with the Taliban is going to be attempted, we'll let others debate whether this is a good thing or not. But the days of simply assuming the Taliban and al Qaeda are one-in-the-same, are over. The American public ready for this? Ready for peace with the Taliban?
From Chuck Todd, Mark Murray, and Domenico Montanaro Isn’t it ironic? Here's what might be going through the minds of key members of the White House team today: Many of the folks who helped get the country into this economic mess -- including Wall Street and even a few financial pundits -- have been complaining the loudest that the administration, just seven weeks on the job, isn't up to the task. Their latest criticism: The Obama White House is doing too much. Rather than focusing exclusively on the economy, they argue, the administration is also working on health care (as it did last week), stem cells (yesterday), and education (today). From the administration’s point of view, it’s probably better to be criticized for doing too much rather than doing too little. That said, the White House has realized that it needs to do a better job in talking to Wall Street, so it is dispatching key economic aides (like Larry Summers and Tim Geithner) to give speeches and interviews in the hope that their words will help reverse the Dow’s downturn. The problem the White House is dealing with is that its most credible messenger on everything right now is the president himself. If Geithner had been better received publicly, they could outsource some of these economic conversations. But right now they can't. This week is a test for the rest of the Obama economic team, as the White House could quiet the criticism if one or more of the economic players were seen as calming influences on Wall Street.
VIDEO: As President Obama prepares to unveil his ambitious plan to overhaul education, some are saying he should bring his focus back to the economy. NBC’s Chuck Todd reports . ***
Hey, teachers, leave them kids alone: As mentioned above, at 9:45 am ET, President Obama will deliver a speech on education reform to the U.S. Hispanic Chamber of Commerce’s conference in DC. As he did on the campaign trail, the
New York Daily News writes, Obama will call for merit pay for teachers, as well as termination for poorly performing teachers. Of course, this speech to the U.S. Hispanic Chamber of Commerce shines today’s political spotlight on the Latino vote, which Obama won by a 67%-31% margin in November -- and that was against a man considered to be one of the Latino community’s biggest GOP allies. Just throwing this out there, but what happens if Obama appoints the first Hispanic (Sonia Sotomayor) to the Supreme Court? As smart Republican strategists have asserted, the next Republican presidential candidate will need to win more than 40% of the Hispanic vote to be able to win in 2012. But if McCain, who hails from a border state and who championed comprehensive immigration reform, couldn’t do that, then which Republican can? Romney? Palin? Pawlenty? Jindal?
*** The loyal opposition: Speaking of McCain, it looks like he is getting more and more comfortable becoming both an opponent and potential partner with Obama on various issues. He's very public with his criticism, but accepts every invite from the White House to work on key issues. “These are terrible, perilous times, so I will seek ways to work with the president of the United States,” McCain told Politico in an interview. “I don’t want him to fail in his mission of restoring our economy.” But here’s the rub, Politico adds: “On the central issue of the economy, the two men are so far apart it is difficult to see them collaborating effectively.”
*** Riding the omnibus: The Senate today will vote on the $410 billion omnibus spending bill, and the legislation is expected to pass. But before the bill goes to the president for his signature, NBC’s Ken Strickland notes, Democratic leaders will have to beat back any amendment that would change the overall bill -- as they did to four amendments yesterday. Speaker Pelosi has threatened that if the bill is altered (forcing it back to the House and dragging out the prospects for final passage), she'd kill it, earmarks included. As a result, Congress would likely have to pass a continuing resolution that funds government operations at last year’s lower spending levels. Strick says the amendment today that is giving Democratic leaders the most political heartburn is one on congressional pay raises offered by GOP Sen. David Vitter (who is up for re-election in 2010 and is trying to make Louisiana voters forget about that prostitution thing). Vitter’s amendment would require members to vote publicly on their annual pay increases instead of the current system that lets it kick in automatically. To counter Vitter's amendment, Majority Leader Reid introduced a stand-alone bill similar to Vitter's amendment to give his members some political cover. They could vote against it today and for vote it later IF it ever comes to the floor.
*** Omnibus odds and ends: The omnibus legislation, of course, has received plenty of attention and criticism for the earmarks that are in it. But here are a few things worth keeping in mind: It contains 8,570 known earmarks totaling $7.7 billion, which represents less than 2% of the $410 billion bill; according to Taxpayers for Common Sense , the total amount in earmarks for FY’09 is $500 million less than it was in FY’08; during the campaign, Obama promised to reform the earmarks process -- “go line by line to make sure that we are not spending money unwisely” -- but he never said he’d eliminate earmarks; that said, the president did tout that his stimulus didn’t contain a single earmark; and the White House has said Obama will outline a process moving forward on earmarks.
*** Talk about chutzpah: Is it just us, or does AIG use some amazing language to talk the government into more bailouts? GM has used similar language and hasn't gotten nearly the attention from the government. Check out this graph in the Washington Post : "The collapse, for instance, would strain the global insurance industry, hurt the value of the dollar and damage money-market funds, AIG warned. The company's failure, it added, would also erase taxpayers' existing investment in the firm and foster ‘doubts about the ability of the U.S. to support its banking system.’” So one of the reasons AIG gave for the government to increase its stake is that AIG failing would somehow send the message that the government could not succeed in bailouts? So, let us get this straight: AIG used "perception" to sell the government on more money? Isn't perception what got us into this mess? The 50-day mark: Today just happens to be the 50th day of the Obama administration. Our friends at Politifact use this milestone to note that Obama so far has kept 17 promises (including yesterday’s action on embryonic stem-cell research) and has broken two promises. Meanwhile, the RNC research has greeted Obama’s 50th day with a different kind of commemoration: a press released entitled, “Obama’s First 50 Days Have Brought Outrageous Spending, DVDs For Foreign Policy, Personnel Issues, And Little Change To Washington."
*** In Bruges -- er, Brussels : Vice President Biden today is in Belguim, where he will meet with the North American Council, the forum for NATO’s members, to discuss Afghanistan and Pakistan. Biden will also meet with NATO’s secretary general, as well as with European Union leaders.
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The New York Daily News : “President Obama will call for performance-based pay for deserving teachers and to give the boot to poorly performing educators in a speech Tuesday morning. The President will outline his education reform agenda in an address to the U.S. Hispanic Chamber of Commerce's 19th Annual Legislative Conference in Washington. ‘The most controversial thing here is the performance pay schemes,’ said a Democratic source with knowledge of Obama's educational reforms. His push comes in the face of opposition from union allies who have long opposed the merit-pay system.”
Politico's Martin also sets up a potential conflict between Obama and teachers' unions on performance pay. "Obama will propose spending additional money to reward effective teachers in up to 150 additional school districts, fulfilling a campaign promise that once earned him boos from members of the National Education Association." But in July 2007 we noted in an interview with the then-NEA head Reg Weaver that the union was open to the discussion on merit pay. First Read then. “Because the way merit pay has been used it has been abused; it has done nothing to enhance student learning. It seems every so often a lawmaker brings it up, but no one has brought it up like Obama has. He said he wants to do it with us, not to us.”
Paul Krugman and others on the left are starting to fan the flames on the "more stimulus' story. But Christina Romer yesterday said not yet. “‘We have to let the medicine work for a while to see if it does the trick,’ Christina Romer, chairman of the Council of Economic Advisers, told an audience at the Brookings Institution. Forecasts on the nation's growth and unemployment are used as part of the basis for the president's budget plan. When the administration calculated its estimates, Romer said, they were in the ‘middle of the pack’ compared with those of other economists. But recent economic reports have caused some analysts to question the administration's projections. They have also led to speculation that policymakers will need to do more than they already have to kick-start the economy and stabilize the financial system."
CONTINUED >>
Senate Dems say they have the votes to pass the omnibus spending bill. "Specifically, GOP Sens. Chuck Grassley of Iowa and Kit Bond of Missouri may be thawing their opposition to the bill… Crossover support could also come from Sen. Arlen Specter (R-Pa.); a senior GOP aide said he would be surprised if Bond and Specter don’t support the omnibus. Support from Florida’s other senator, Republican Mel Martinez, could also come because of the Cuba provision concessions, as well as from Sen. Robert Menendez (D-N.J.), who had also announced opposition because of the provisions."
The budget battle ahead: It looks like some of the tax deduction provisions in the Obama budget will be undone on the Hill. The New York Times front-pages, “What the Democratic barons of Congress liked best about President Obama’s audacious budget was his invitation to fill in the details. They have started by erasing some of his. The apparent first casualty is a big one: a proposal to limit tax deductions for the wealthiest 1.2 percent of taxpayers. Mr. Obama says the plan would produce $318 billion over the next decade as a down payment for overhauling health care.”
This Washington Post piece about the power of dissenting Democrats in Congress could get cable chatter legs.
The Boston Globe profiles Max Baucus, "a leading force" behind health care. "That Baucus himself isn't passing the buck on healthcare reform has been the most encouraging sign in a tumultuous year for advocates of universal healthcare. The careful Montanan, known for irritating the left wing of his party by compromising with the GOP on a range of matters, including the 2003 Medicare prescription drug bill, has suddenly become a leading force behind legislation that liberal Democrats have longed to pass for the last half-century."
CONTINUED >>
Obama and the Democrats on Capitol Hill might be having a tough time governing, but David Brooks has a good reminder that the GOP hasn't exactly been productive these first 50 days either. "The G.O.P. leaders have adopted a posture that allows the Democrats to make all the proposals while all the Republicans can say is ‘no.’ They’ve apparently decided that it’s easier to repeat the familiar talking points than actually think through a response to the extraordinary crisis at hand. If the Republicans wanted to do the country some good, they’d embrace an entirely different approach."
"Republican infighting escalated Monday with allegations and denials over $4 million once destined for the party’s congressional campaign committees," The Hill reports. (Steele is giving $1 million to each national Republican committee, but some are complaining that former Chairman Mike Duncan had earmarked $3 million for each.) Steele is canceling interviews, held a conference call with RNC members in which he apologized, and members criticize his public feud -- parodied on SNL -- with Rush Limbaugh because of money. "The incident ... would cost the party a significant amount of money from small-dollar contributors who listen to Limbaugh’s show. The RNC has counted on money from Limbaugh’s fans for decades." Joe the Plumber is attacking Steele , too: "Unfortunately we have a chairman up there who wants to redefine conservatism; he wants to make it hip-hop, put it in a new package and sell it. You can’t sell principles. Either you have them or you don’t. ... American citizens need to be their own lobbyists. We the people have to stand up and get busy.”
Could it be Romney in 2012? The Boston Globe's Canellos : "For a while, it looked like Mitt Romney would become more a figure of ridicule than promise. Stiff, square, and allegedly two-faced, the former Massachusetts governor was a triple-punchline target of late-night comics. But now, with a more statesmanlike bearing and some measured criticisms of the Obama administration, Romney suddenly seems like the only adult left standing among the 2012 Republican presidential hopefuls."
MINNESOTA: “In the end, the pool turned out to be pretty shallow,” the
Star Tribune writes. “Republican Norm Coleman had hoped an inspection of hundreds of secrecy envelopes holding rejected absentee ballots would yield enough additional votes to help him cut into DFLer Al Franken's 225-vote lead. But it turned out that only 89 of them had valid registrations. That means Coleman's pool of 1,725 ballots that he has said should be counted probably has shrunk by several hundred -- at least for now -- making it more difficult for him to overtake Franken.”
ARKANSAS: Republicans are trying to mount a challenge Arkansas Sen. Blanche Lincoln.
CONNECTICUT: Every cycle, one of the political parties works very hard to create a vulnerable incumbent. In '06, it was the Democrats, who spent over two years making Conrad Burns vulnerable. In '08, it was Democrats in Washington picking on Elizabeth Dole. This year, could it be Chris Dodd? The Republicans have a pretty good early campaign going. "A Washington, D.C., condominium deal between Sen. Christopher J. Dodd and a Wall Street executive whom Dodd later recommended for a presidential pardon has the state Republican Party chairman comparing the embattled senator to former Gov. John G. Rowland. 'The parallels are frighteningly similar to Rowland -- the cheap rental condo in Washington, D.C., the lakeside cottage with the sweetheart mortgage deal,' state GOP Chairman Christopher Healy said Monday. But an aide to Dodd says it's a cheap shot by Republicans looking to divert attention from the party's failings."
NEW JERSEY: The New York Times has a C.W.-setting "Corzine's in trouble" piece today. “Three years into the job, Mr. Corzine is still a tough sell or an acquired taste to many New Jersey residents, even in a Democratic stronghold like Hoboken, the place he now calls home. And as his poll numbers deteriorate, with an increasing plurality of people unhappy with his job performance, there is no shortage of people blaming Mr. Corzine for the state’s fiscal woes, singling out his 2007 car accident as the defining event of his tenure, or pining for a more popular politician like the State Senate president, Richard J. Codey.”
NORTH CAROLINA: Republicans fended off a challenge from Rep. Heath Shuler, who was mulling a run against Sen. Richard Burr. "It's difficult to see how this is not a setback for Senate Democrats, particularly as they've made clear they plan to target Senator Burr," said National Republican Senatorial Committee spokesman Brian Walsh.
From NBC's Ken Strickland
Tomorrow, the Senate will vote on an amendment from Republican Sen. David Vitter that would require members to vote publicly on their annual pay increases instead of the current system that lets it kick in automatically. While it may seem like a political no-brainer, if the amendment passes and changes the underlying bill, Democratic leaders have suggested they'd pull the bill from the floor.
"This system of automatic, auto-pilot pay raise really is offensive to the American people," Vitter said in a speech on the Senate floor. "There never has to be any inconvenient debate, any inconvenient votes whatsoever. They just happen automatically, no votes."
CONTINUED >>
From NBC's Mark Murray
-- The FY'09 omnibus appropriations bill contains 8,570 known earmarks totaling $7.7 billion. That amount represents less than 2% of the $410 billion legislation. (Taxpayers for Common Sense )
-- The total amount in earmarks for FY’09 is $500 million less than it was in FY’08 "When you add the $6.6 billion in disclosed earmarks that were in the three FY09 spending bills that passed in the fall (Defense, DHS, MilCon/VA) you end up with $14.3 billion worth of disclosed earmarks in FY09. The apples-to-apples comparison from 2008 yielded $14.8 billion, so there was a $500 million reduction in disclosed earmarks between FY08 and FY09." (Taxpayers for Common Sense )
-- During the campaign, Obama promised to reform the earmarks process -- “go line by line to make sure that we are not spending money unwisely” -- but he never said he’d eliminate earmarks First Obama-McCain debate )
-- However, Obama did tout that his stimulus didn’t contain a single earmark "What it does not contain, however, is a single pet project, not a single earmark, and it has been stripped of the projects members of both parties found most objectionable." (Presidential news conference, 2/9/09 )
CONTINUED >>
From NBC’s Domenico Montanaro (Statements compiled by NBC’s Mark Murray, Kelly O’Donnell, Bruce Carter and Naomi Karam)
The reactions to President Obama 's signing of the executive order on stem-cell research were mostly predictable and falling along party lines. Democrats laud it; Republicans were critical. The one perpetual ironic standout, however, is Nancy Reagan, widow of the late Ronald Reagan -- the former president idolized and revered by the Republican Party.
FORMER FIRST LADY NANCY REAGAN: “I'm very grateful that President Obama has lifted the restrictions on federal funding for embryonic stem cell research. These new rules will now make it possible for scientists to move forward. I urge researchers to make use of the opportunities that are available to them, and to do all they can to fulfill the promise that stem cell research offers. Countless people, suffering from many different diseases, stand to benefit from the answers stem cell research can provide. We owe it to ourselves and to our children to do everything in our power to find cures for these diseases -- and soon. As I've said before, time is short, and life is precious.
SEN. TED KENNEDY: "Sometimes medicine advances through inspired discoveries in the laboratory, and sometimes through brilliant insights at the patient's bedside. But today, an extraordinary medical breakthrough was achieved with the stroke of a pen. With today's executive order, President Obama has righted an immense wrong done to the hopes of millions of patients. The President's action today unlocks the enormous potential of life-sustaining medical progress against a wide range of serious illnesses and injuries, all within strong ethical guidelines."
CONTINUED >>
From NBC’s Athena Jones
WASHINGTON -- Before an East Room audience of doctors, scientists, lawmakers and religious leaders President
Obama signed an executive order Monday lifting the ban on federal funding for stem cell research, fulfilling a promise he made on the campaign trail.
The order overturns the
Bush policy that said no government money could be used for research on stem cell lines created after Aug. 9, 2001.
"Medical miracles do not happen simply by accident," Obama said. "They result from painstaking and costly research, from years of lonely trial and error, much of which never bears fruit, and from a government willing to support that work."
Video: Obama lifts the ban on federal funding for stem cell research. While the economy has dominated the headlines, and much of the president's attention, the stem cell issue is one the president had long said he would address early in his presidency.
CONTINUED >>
From NBC's Mark Murray Kirsten Gillibrand's House seat, the Democratic Congressional Campaign Committee is airing a TV ad that takes on GOP candidate Jim Tedisco -- for his long tenure working in Albany and for not taking a clear position on the Obama stimulus.
The Republican Party, which is favored to win this contest, has invested plenty here. But per DCCC spokeswoman Jennifer Crider, this is the committee's first independent expenditure TV ad, although it earlier helped fund a coordinated ad with Democratic candidate Scott Murphy .
Crider, however, wouldn't reveal to First Read the size of the DCCC's buy.
From NBC’s Jim Miklaszewski and Courtney Kube A senior defense official confirms that five Chinese ships "aggressively maneuvered" and shadowed a U.S. Navy surveillance ship yesterday.
The Chinese vessels moved into "dangerous proximity" to the USNS Impeccable, "in an apparent coordinated effort to harass the U.S. ocean surveillance ship," which was operating on a routine mission in international waters, the senior defense official says.
A written statement from the U.S. Defense Department says the Chinese vessels surrounded the USNS Impeccable, and that two of them closed in to within 50 feet and began waving Chinese flags and telling the U.S. ship to leave the area.
Video: Chinese ships allegedly harassed a U.S. Navy ship in international waters. Unaware of the Chinese ships' intentions, the USNS Impeccable sprayed its fire hoses at one of the vessels to defend itself. Chinese crewmembers "disrobed" to their underwear, and continued to move closer, coming within 25 feet of the USNS Impeccable, officials said.
CONTINUED >>
From NBC's Mark Murray Obama backer) Warren Buffett's remarks on the economy this morning that appear to criticize the government's handling of the economic crisis so far. "The message has to be very, very clear as to what government will be doing," he said. "And I think we've had, and it's the nature of the political process somewhat, but we've had muddled messages and the American public does not know. They feel they don't know what's going on, and their reaction then is to absolutely pull back."
But Republicans didn't pass around Buffett's advice to the GOP. "The minority really do[es] have an obligation to support things that are clearly designed to fight the war in a big way," Buffett said. "I think the Republicans have an obligation to regard this as an economic war and realize you need one leader... I think the [Democrats] should not use it ... to roll the Republicans." (Hat tip: Politico's Glenn Thrush .)
From Chuck Todd, Mark Murray, and Domenico Montanaro Just a little patience? Paul Krugman today contends that the Obama stimulus was too small, and that he’ll need a second stimulus. “The latest data confirm those worries — and suggest that the Obama administration’s economic policies are already falling behind the curve.” (Krugman has influence with congressional Dems, so expect to hear some chatter about a second stimulus.) And from the right, Sens. John McCain and Richard Shelby argued over the weekend whether enough is being done with the banks. “‘Sen. John McCain (R., Ariz.), speaking on ‘Fox News Sunday,’ said that in its early efforts to stabilize the banking system, the Obama administration has ‘started off badly with a message that was not specific.’” (You’ve gotta love the irony of McCain criticizing Obama for not being specific on the banking crisis; that was part of McCain's problem during the campaign.) All of this seems to be creating an atmosphere of, "We need to do something and need to do something now” again, right? Then again, today is just Day 49 for the Obama administration, and as our recent NBC/WSJ poll noted, 84% believe that Obama inherited the economic problems, and 66% of those people said that Obama had at least a year before he was responsible for them.
*** Stem cell day : Outside of his reversal of the Mexico City Policy on overseas abortions and his nomination of Kathleen Sebelius to head HHS (which angered some anti-abortion activists), Obama hasn’t really waded into the culture wars during his first seven weeks as president. But that changes at 11:45 am ET today, when he delivers remarks and then signs an executive order lifting the Bush administration’s restrictions on embryonic stem-cell research. Under Bush, NBC’s John Yang notes, no federal funding could be used for research on stem-cell lines created after Aug. 9, 2001 -- the date he announced his policy from his ranch in Crawford, Texas. What Obama’s executive order will do is remove that "artificial deadline," in the words of a senior administration official, for the creation of stem cell-lines. In short, after Monday, new stem-cell lines may be created for the purposes of research. But the change will not be overnight, Yang adds; it will take the National Institutes of Health some time to develop research guidelines. Also, as the New York Times points out, Obama will leave it to Congress to decide on the thorniest issue of all: whether the “legislative ban on federal financing for human embryo experiments should also be overturned.”
Video: Obama is expected to reverse restrictions on stem cell funding and research today, John Yang reports. ***
Other stem cell odds and ends : A few other things worth noting for today’s stem-cell news:
Polls taken in 2007 showed that about 60% of the public supports embryonic stem-cell research, and loosening the Bush restrictions has been a bipartisan aim… Indeed, joining Obama today will be three Republicans who support the science: Orrin Hatch, Arlen Specter, and Mike Castle... What’s more, it’s quite likely that the Bush policy would have been reversed even if McCain had won back in November, since the Arizona senator also favors this research.
*** Under his skin? While the president did his best to avoid making news in his recent interview with the New York Times , let's not ignore his decision to call back and re-answer the paper’s question whether -- as conservatives are arguing -- Obama is driving this country towards socialism. “[H]e called reporters from the Oval Office to assert that his actions have been ‘entirely consistent with free-market principles’ and to point out that large-scale government intervention in the markets and expansion of social welfare programs began under President George W. Bush.” Clearly, the president was irked by the use of the word. And we wonder if Schumer said the word "moderate" so much during his "Meet the Press" interview, that it was an intentional response to the "socialist" line of questioning.
Video: In a wide-ranging conversation with the New York Times, Obama tries to quell the fears of anxious Americans. ***
The earmark tightrope : Just askin’, but will Obama have the credibility to both sign this omnibus AND lecture Congress about the number of earmarks? It's apparently what the White House is going to attempt to do this week, but it's a very tough line to walk.
The Hill says the omnibus bill is expected to pass this week.
*** Geithner watch : The announcement over the weekend of three key Treasury appointments should be enough to calm down the percolating stories about staffing issues at this important department. And yet, the New York Times ran a potentially C.W.-setting piece about whether Geithner is in over his head. “Analysts say it is far too early to know if Mr. Geithner and his team will be effective. But some worry that political and financial constraints have made them reluctant to grapple with the full magnitude of the crisis." and
*** Frum strikes back : Also over the weekend, Newsweek fired the latest salvo in the Limbaugh wars when it published a story entitled “Why Rush is Wrong.” The wrinkle here: The piece was by conservative David Frum, a former Bush speechwriter. “Rush is to the Republicanism of the 2000s what Jesse Jackson was to the Democratic Party in the 1980s,” Frum writes. “He plays an important role in our coalition, and of course he and his supporters have to be treated with respect. But he cannot be allowed to be the public face of the enterprise—and we have to find ways of assuring the public that he is just one Republican voice among many, and very far from the most important.” Americans United for Change also is going up with another TV ad tying Limbaugh to the Republicans. One other Limbaugh thought: It was interesting to hear Gingrich on “Meet the Press” basically distance himself from Limbaugh in the same way Steele attempted to do, but Gingrich just did it more eloquently -- and in a way that wouldn’t draw Limbaugh's ire.
Video: Gingrich discusses Rush Limbaugh's role in the GOP on "Meet the Press." ***
Captain Kirk : On Capitol Hill today at 5:00 pm ET, the Senate Finance Committee holds its confirmation hearing for Ron Kirk, President Obama’s pick to be U.S. trade representative. The biggest controversy: The Finance Committee’s discovery that Kirk owed thousands of dollars in back taxes. As the
Washington Times’ editorial page puts it, “Good grief! Yet another presidential nominee … owes back taxes. He joins Treasury Secretary Tim Geithner, former Sen. Tom Daschle, failed Chief Performance Officer candidate Nancy Killefer, and Labor Secretary Hilda Solis (whose husband was the offender) among those nominated who owed back taxes.”
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“President Barack Obama's announcement Monday that he is overturning his predecessor's policies toward embryonic stem cells also will include a broad declaration that science — not political ideology — would guide his administration,” the AP reports.
Still, the New York Times says Obama “intends to avoid the thorniest question in the debate: whether taxpayer dollars should be used to experiment on embryos themselves.” White House officials said “the president would leave it to Congress to determine whether the long-standing legislative ban on federal financing for human embryo experiments should also be overturned.”
More: “The ban, known as the Dickey-Wicker amendment, first became law in 1996, and has been renewed by Congress every year since. It specifically bans the use of tax dollars to create human embryos — a practice that is routine in private fertility clinics — or for research in which embryos are destroyed, discarded or knowingly subjected to risk of injury.”
The Washington Post adds, “When President Obama lifts restrictions on funding for human embryonic stem cell research today, he will also issue a presidential memorandum aimed at insulating scientific decisions across the federal government from political influence, officials said yesterday… Although officials would not go into details, the memorandum will order the Office of Science and Technology Policy to ‘assure a number of effective standards and practices that will help our society feel that we have the highest-quality individuals carrying out scientific jobs and that information is shared with the public,’ said Harold Varmus, who co-chairs Obama's Council of Advisors on Science and Technology.”
CONTINUED >>
My, how times have changed. "He's shown real leadership. Bottom line: I think Barack Obama, president of the United States, is off to a very good start." That from Joe Lieberman, once a staunch McCain ally. He has even clashed with McCain on the stimulus bill on the Senate floor. "The Connecticut independent, who faces re-election in 2012 in a state where Obama is popular, is eager to mend fences with Democrats still fuming over his criticism of Obama during the general election campaign," the AP says. Washington Post reported that GOP leaders are now re-directing their fire from Dem Hill leaders to President Obama. “During the president's first few weeks in office, many congressional Republicans avoided sharp criticism of him, instead condemning Democratic congressional leaders… But in the past week, Republicans have increasingly taken on Obama: criticizing a letter he wrote to Russian leaders asking for their help in stopping Iran from developing nuclear weapons, a move the GOP characterized as unwise; knocking his remark comparing the stock market's fluctuations to political polls; and denouncing his proposals to fix the economy that Republicans say amount to a federal ‘spending spree.’”
Missouri Sen. Claire McCaskill acknowledged that Democrats might not have the votes on the Employee Free Choice Act.
CONTINUED >>
Writing in Newsweek , conservative author David Frum makes the case why Rush Limbaugh shouldn’t be in any way associated with being the head of the GOP. “On the one side, the president of the United States: soft-spoken and conciliatory, never angry, always invoking the recession and its victims. This president invokes the language of ‘responsibility,’ and in his own life seems to epitomize that ideal.”
More: “And for the leader of the Republicans? A man who is aggressive and bombastic, cutting and sarcastic, who dismisses the concerned citizens in network news focus groups as ‘losers.’ With his private plane and his cigars, his history of drug dependency and his personal bulk, not to mention his tangled marital history, Rush is a walking stereotype of self-indulgence.”
John Harwood reports that some GOP moderates don’t think the White House’s focus on Limbaugh helps the Obama administration. ‘It doesn’t help, frankly,’ said Senator Olympia J. Snowe, a moderate Republican from Maine who serves as a fulcrum in contentious debates on Capitol Hill. ‘It sidetracks all the major issues they’re facing.’”
MINNESOTA : “The Minnesota Supreme Court on Friday refused Al Franken's request to be immediately certified as winner of the U.S. Senate election, saying that step must await a final resolution of the long-running recount trial and possible appeals,” the Minneapolis Star Tribune wrote on Friday night. “But even as the high court issued its ruling, Franken's lawyers received a sympathetic hearing in their attempt to throw out Republican Norm Coleman's legal challenge of Franken's 225-vote recount margin.”
More: “Even as the opinion was being released, Franken attorney Marc Elias was telling the judges hearing the recount trial in St. Paul that Coleman had failed to prove that enough absentee ballots had been wrongly rejected for him to win. ‘Whether it is nine, whether it is 19, whether it is 99, it is far fewer than 225,’ Elias said. But it was Coleman attorney James Langdon whom the three judges peppered with questions, asking him why thousands more ballots should be counted when they were already examined several times before the trial began.”
The Los Angeles Times’ Barabak says that despite what appears to be a tough 2010 Senate map for Republicans, they see opportunities in some blue states. “In some states, the president stole his party's strongest U.S. Senate prospects. In Illinois and New York, he watched as governors there botched efforts to fill vacated Senate seats, turning those solidly Democratic states into potential battlegrounds.”
HAWAII : Rep. Neil Abercrombie will run for governor .
MISSOURI : The Washington Post’s Cillizza notes that the GOP Senate primary between Roy Blunt and Sarah Steelman is perhaps shaping up “as a fight for the future of the Republican Party.” More: “Blunt was the first Republican in the race to replace Sen. Christopher S. Bond (R), who is retiring after three terms, but Steelman is almost certain to run and is in talks with top national party strategists, including John Weaver, who was a top campaign adviser to Sen. John McCain. (Steelman endorsed the Arizonan for president in 2000 and 2008.)”
Also, “Steelman sent a letter to the Missouri Republican Party last weekend taking issue with a recent attack on Secretary of State Robin Carnahan, the likely Democratic nominee, over her opposition to earmarks. ‘The Missouri Republican Party should not proclaim earmark spending a virtue,’ Steelman wrote. ‘It is not. This does nothing but harm the efforts of principled politicians of both parties... The old ways can no longer be tolerated.’”
CONTINUED >>
From NBC’s Domenico Montanaro
The Center for Union Facts and the Employee Freedom Action Committee are up with three ads -- two are from EFAC.
“This is an important issue and important in those states,” an EFAC spokesman said, adding that it is “important that folks in those states understand what this issue is about.”
He pointed out that the first House Democrat today, Dan Boren (D-OK), broke ranks , saying he’ll vote against it. He called the SEIU is “apoplectic” over it.
“The political winds are turning briskly against the labor unions,” he said. “They're turning up the volume... but it’s important for people to understand this issue.”
Union Facts bought $135,000 worth of airtime with the ads running from March 5 to 12 on regular TV in Colorado Springs and Denver, per a Colorado Democratic source.
“They spent $1.5 million against Mark Udall on EFCA, and ‘it didn't do squat,’” the source said.
CONTINUED >>
From NBC’s Pete Williams Ted Kennedy may have violated the Constitution this week in accepting an honorary knighthood while British Prime Minister Gordon Brown was in Washington.
But U.S. Senate officials and outside legal experts say that is not the case.
Those who question the propriety of the honor cite a provision of the U.S. Constitution, which forbids federal office holders from accepting foreign titles. (Article I, Section 9, "No person holding any office of profit or trust ... shall, without the consent of Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state.")
For starters, say Senate lawyers, what Sen. Kennedy received this week is not a title. He cannot be called "Sir Ted," because he's not a British subject. He will not kneel before the Queen and be tapped on the shoulder with a sword, which would actually invest him with the title. This is an honorary knighthood only, like an honorary degree from a university.
CONTINUED >>
From NBC's Pete Williams
The Supreme Court has decided not to hear the case of Ali al-Marri, the only enemy combatant still held inside the U.S.
Now that the
Obama administration has decided to undeclare him an enemy combatant and put him on trial in regular federal court, the Supreme Court has declared the case moot.
Human rights groups had urged the court to hear the case anyway, because they wanted a ruling on whether a president could ever declare someone in the U.S. an enemy combatant.
Now, the Obama administration gets the best possible legal outcome. It will not be stuck with taking a position on whether a president has that authority.
From NBC's Kelly O'Donnell and Domenico Montanaro
On the Senate floor today, Sen. John McCain expounded at length about "pork," as he sees it in the funding bill. He used plenty of examples and had more sharp calls for President Obama to use his veto power. And he went on about how his colleagues know he's begun Twittering -- that his office is Tweeting about using the outlet to talk pork spending.
We've noted his (and other members') use of the site in this post .
Here's example on what's on his page currently:
From NBC’s Abigail Williams Michelle Obama spent her afternoon at Miriam's Kitchen Thursday, volunteering her time scooping a mushroom risotto for the Washington, D.C., homeless. Dressed in bright spring colors and wearing a smile, the First Lady stood alongside Miriam's volunteers offering a hot meal and on more than one occasion a knowing wink of the eye.
Video: First lady Michelle Obama walks the volunteerism talk. NBC's Brian Williams reports. Standing in front of a diverse group of volunteers and D.C.-area homeless Obama spoke about the difficult economic climate and the growing need for volunteerism throughout the United States.
"Back in the kitchen, I served food with six or seven volunteers who were here pouring their blood, sweat and tears into preparing the food and serving it,” she said. “There are people all across the country even in these times who can lend a hand and volunteer at a soup kitchen, even if they don't have the resources to donate."
CONTINUED >>
From NBC's Lauren Appelbaum
CONTINUED >>
A wrap of yesterday’s White House health-care summit
From NBC’s Athena Jones Obama hosted about 150 people at the White House today to begin to tackle health care reform Thursday, an issue he says is inextricably linked to the nation's economic security.
Video: Obama talks health care. Chuck Todd reports. The opening and closing of today's forum, which brought together members of Congress from both parties, health care providers, pharmaceutical companies and representatives from labor and business, aired live on television, one working group aired on CSPAN and the four others streamed live on the White House Web site.
The summit was cast as just the first step of what is sure to be a difficult process to agree on how to reduce costs, improve the quality of care and expand coverage. The president and administration officials have repeatedly said they want health care reform to happen this year.
CONTINUED >>
From NBC's Abby Livingston
The Employee Freedom Action Committee (EFAC) is running ads in “targeted markets and on national cable” featuring 1972 Democratic presidential nominee George McGovern decrying the card-check legislation that is currently being deliberated in the legislative branch.
The organization’s website calls the card-check “fundamentally wrong” and McGovern himself says in the ad, “I’ve always been a champion of labor unions, but I fear that today’s union leaders are turning their backs on democratic work place elections.” He adds, “I’ve listened to all their arguments, and I’ve reviewed the facts on both sides. Quite simply, this proposed law cannot be justified.”
The ad, however, is not new to some television viewers. It previously aired in the fall in contentious Senate battleground states including Colorado, Oregon, New Hampshire, Maine, Minnesota, Louisiana and Mississippi. EFAC has reintroduced the ad because the card-check legislation is now in the congress.
McGovern’s denouncement is all the more striking because his presidential nomination is viewed as one of the most liberal and once electorally disastrous choices for the Democratic Party. EFAC reached out to him after he wrote a op-ed in the Wall Street Journal a year ago.
From Chuck Todd and Domenico Montanaro The return of partisanship: The biggest lesson to draw from the White House-Limbaugh fight: Partisan politics and divided Washington are back. The methodical effort by the white house to raise Limbaugh's profile is obvious now. And now the GOP is making a concerted effort to demonize Rahm. On one level, it's a reminder of just how hard it is for any president to change the tone in Washington. On the other, we do wonder what the GOP is going to get out of this decision to demonize Rahm while defending Obama. Oddly, they may end up helping Obama look above the fray. You've heard of the expression punching down; the GOP is punching down, not up. And the White House, while deserving of some of the blame for participating in the renewed negative tone affecting DC, is still smiling as, politically, they do look like they are winning.
*** Another day, another red-to-blue state: The president heads to Ohio, yet another in the string of states he has visited since becoming president that voted Republican in 2004, but went his way in 2008. Obama will speak at the graduating ceremony for 25 police recruits in Columbus, where he’s expected to tout the effects of his $787-billion stimulus package. Obama recounted when he signed the legislation in February that this class was to have graduated in January, but a $13-million budget shortfall forced the city the lay them off even before they hit the streets. Now, with $1.25 million from the stimulus bill, the city’s mayor is hiring the recruits after all. But the story doesn't end there -- and the rest of it illustrates the limitations of the stimulus money's aid to state and local governments: It's just a one shot deal, NBC’s John Yang reports. Mayor Michael Coleman says the city won't be able to afford another class of police recruits for at least the rest of the year. Ohio has been hit hard by the economic crisis, and the president is likely to also talk about today’s grim February jobs numbers, which, per NBC’s Athena Jones, the White House expected to be bad. Unemployment went up to 8.1%, the highest since 1983. (The only solace here is that the market expected that number.) The trick for this White House is going to be getting the message through that the stimulus is working, despite continued bad economic news. Obama flipped nine red states from ’04 to blue in ’08, and in his first seven weeks in office, he's visited six of the nine. But that's just a coincidence, right? Dumb luck, of course. Today's Columbus trip is the most blatantly political trip to date; he's not announcing new policy, just selling stimulus in a swing state, but realize, he's trumpeting 25 new jobs -- 25!?!?!? That’s about 1.4 jobs per electoral vote. (In 2012, Ohio may get as few as 18 EVs, down from 20.)
*** Party of Newt? It’s feeling a lot like 1995, but are Republicans more “Braveheart” (“Never take my freedom”) or “Dead Man Walking?” Last night, Republicans took the government once again to the brink of government shut down, as they blocked the omnibus spending bill, which has been delayed since the last Congress. Much of the focus has been on the $7 billion in earmarks, but it’s also what keeps the lights on and staffers paid. Democrats were forced to “prepare a stopgap budget resolution to keep the federal government from shutting down,” the New York Times writes, calling it “an embarrassment for Democrats and a striking, if temporary, victory for critics of so-called earmark spending initiative." But that it was blocked is ironic -- given that McCain's earmarks amendment was defeated resoundingly. This may give the minority the feeling of a temporary victory, but how many temporary power grabs equal actual political capital? And shouldn't the president make a more public promise on earmarks to get more Republicans to cross over? That may be what it takes.
*** More nominee problems: Two more top Treasury nominees withdrew their names from consideration yesterday. CNBC reports that the department does not have a single nominated official in place other than Geithner. CNN’s Dr. Sanjay Gupta also bowed out of contention for Surgeon General because he’d have to take a pay cut. On Monday, we get to see a brand-new nominee tax problem, as Obama's pick for U.S. Trade Rep., Ron Kirk, begins his confirmation process. The Huffington Post posited yesterday that a big reason for the shortfall is Obama’s hard line on lobbyists, which reduces the talent pool. In a period with so many far-reaching problems, this is starting to become a real problem. This was shaping up to be the fastest-created administration in history. Now it’s looking more like molasses. Is it, as NBC’s David Gregory raised on TODAY, a question of confidence? Treasury has an extra layer of vetting problems. Some of the best talent for these posts come from some bailed-out banks and financial-service companies. One of the withdrawals yesterday had a potentially embarrassing regulatory record during her stint at the SEC. (Madoff anyone?)
*** Health care reality check: Yesterday's kumbaya session at the White House on health care made it seem to many of us veterans of the Clinton health-care effort that this was going to happen. And the timetable we're hearing includes: bills out of committees before the summer recess and full House-Senate votes in September and a bill-signing right after -- maybe as early as Labor Day or as late as Election Day ’09. But despite all of the niceties yesterday, we did notice one missing piece of the health-care summit, a clear vision of what was possible. Sure, there were lots of pledges about cost, quality and access, but no real, well, prescriptions. We're a long way from a bill.
*** Why Obama’s likeable right now: There is only so much that Obama can do on his own, but his personal popularity is clearly his saving grace right now. The televised What Have We Learned Q&A session during the health-care summit yesterday, showed why this president’s personal ratings are where they are. This president exudes civility -- even Republicans say so. That was on display when Obama got Charlie Rangel to finally get the hint and hand over the microphone to his counterpart on Ways and Means, ranking Republican David Camp (R-MI). “What I meant Charlie, was let’s give him the mic,” stopping Rangel's continued talking. The audience -- and even Rangel -- erupted with laughter. Disarmed, Camp responded, “It’s tough being in the minority” and lauded the president for his efforts. Obama also showed his frank (and political) side. He called out all the “liberal bleeding hearts” to say that costs have to be cut. But, he added, to those obsessed with costs, the U.S. can’t throw seniors off Medicare rolls. “We have to balance heart and head as we move forward,” he said. This was classic Obama, but what does it mean in practical terms? The president has said the “day of reckoning” is here. But his day of reckoning, according to the NBC/WSJ poll, appears months -- if not a couple of years -- away. That’s when the dust will settle. We’ll see if this president is able to stay in the clouds or if he’ll come down to Earth. For now he's riding the wind of his own popularity at his back, but at some point, he's going to need more than just good feeling.
*** Steele’s 12-Step program: Michael Steele, who never met a microphone he didn’t like, said he has enrolled the Republican Party in a “12-step program.” Well, his fellow GOPers are starting to really not take kindly to Steele’s barbs. Rifts in the GOP are showing, as anti-Steele Republicans, for example, yesterday, shopped around to reporters an AP story that doesn’t exactly paint operatives with Steele ties in the best light from their 2006 campaign decisions. For every day that goes by that the party sharpens knives at their own, is another day that delays the party’s recovery.
*** Michael Moore’s defense: Michael Moore is speaking out in defense of himself in an article that will appear on Huffington Post this morning. Some, including us , have likened what Dems are doing with Rush to what the GOP tried to do with Michael Moore. “Perhaps,” Moore writes. “But there is one central difference: What I have believed in, and what I have stood for in these past eight years … these are all things which the MAJORITY of Americans believe in, too. … Obama and the Democrats going after Rush is a good thing and will not do for him what the Republican attack plan did for me -- namely, the majority of Americans will never be sympathetic to him because they simply don't agree with him. The days of using my name as a pejorative are now over. The right wing turned me into an accidental spokesperson for the liberal, MAJORITY agenda. Thank you, Republican Party. You helped us elect one of the most liberal senators to the presidency of the United States. We couldn't have done it without you.”
*** Checking ‘Card Check’ at the door: Health Care, wars, an economy in turmoil. But what is the one issue that stirs partisan knuckle cracking more than anything else right now? Card check. Or the Employee Free Choice Act. Or the Employee “Forced” Choice Act, as one conservative group has taken to calling it. We did one post on this yesterday, based on a conference call by the AFL-CIO, and it got more immediate reaction from both sides than most. It was like when we did almost anything during the campaign. It is a lightning-rod issue. Is it any wonder why this president has stayed away from it so far, opting to tackle the “bigger” issues? (We fear even that word will set off a flurry, but we think it’s warranted as compared to war, peace, the nation’s uninsured and the worst economy since the Depression.) Watch out for fireworks when these dark rain clouds swell into a storm. By the way, the president doesn't seem engaged on this issue, but you know who is? Joe Biden. It's the one issue he's taking a lead on domestically. (*** UPDATE *** expressed support for the act.)
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The February economic numbers are out: unemployment went from 7.6% up to 8.1%, the highest it’s been since 1983. The economy shed 651,000 more jobs in February, bringing the total jobs lost since the recession began to 4.4 million, the most since October 1949.
CNBC’s Erin Burnett reported on Morning Joe that the numbers were what Wall Street expected. She also noted that not all of the numbers were bad. For example, average hourly earnings actually ticked up, instead of dropping – which would be an indicator of an even more deepening recession toward depression. Average hourly rates are now $18.47, a few cents higher than January.
Also, the average workweek remained steady at 33.3 hours per person.
"Senate Banking Committee Chairman Christopher Dodd is moving to allow the Federal Deposit Insurance Corp. to temporarily borrow as much as $500 billion from the Treasury Department," the Wall Street Journal reports. "The Connecticut Democrat's effort -- which comes in response to urging from FDIC Chairman Sheila Bair, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner -- would give the FDIC access to more money to rebuild its fund that insures consumers' deposits, which have been hard hit by a string of bank failures."
By the way, “The U.S. government plans to invite wealthy investors to invest in the bailout of the crippled financial system,” the Washington Post reports. “The investors would be invited to buy up recently issued, highly rated securities that finance consumer lending -- without the risk of massive losses. The idea is to entice the investors to put their huge cash piles to work to stimulate the financial system. The program, which could involve the government lending nearly $1 trillion to these investors, exceeds the size of every other federal effort to address the financial crisis so far.”
"Senate Republicans blocked a $410 billion omnibus spending measure on Thursday night, forcing Congressional Democrats to prepare a stopgap budget resolution to keep the federal government from shutting down," the New York Times writes. "The ability of the diminished minority to delay the bill signaled growing unease in Congress, among Democrats and Republicans, over the levels of government spending in recent months and the staggering increase in the federal deficit." The paper also calls it "an embarrassment for Democrats and a striking, if temporary, victory for critics of so-called earmark spending initiative."
But NBC’s Ken Strickland reports that Democrats needed 60 votes, but they only had 59 and therefore did not bother to even take the formal vote. Because the bill would not pass last night or today, the government will run out of money for most of it's operations on Friday. As a result, the House will have to pass what's called a "continuing resolution or C.R.": this new bill will continue to fund government operations until this dispute in the Senate gets resolved. (The Senate will also have to pass it.)
Some points to keep in mind:
2. In the grand scheme of things, this is not a huge deal from "funding the government standpoint," because it will get worked out in the end. But it could prove to be another moral victory for Republicans. Because the GOP held together, they blocked -- at least for the moment -- Democrats from passing what some considered a "pork-laden" bill. McCain and company will be able to continue attacking Obama's willingness to sign this bill, even though Obama campaigned against earmarks in legislation.
3. There is also a chance next week that McCain may be successful in his next attempt to get some of those earmarks removed.
Politico wonders if Ted Kennedy’s knighthood is constitutional: “The naysayers point to Article I Section 9 of the Constitution, which says ‘No title of nobility shall be granted by the United States: and no person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state.’ Strict translation: You can’t be a U.S. senator and a knight.”
“The RNC announced Thursday that it would transfer $1 million apiece to the cash-hungry National Republican Congressional Committee and the National Republican Senatorial Committee -- contributions that could buy Steele good will among party operatives and GOP members of Congress,” Politico reports. “Still, an array of top GOP officials and strategists are expressing concern over Steele’s month-long tenure, including some of those he defeated for the post.
“ ‘I have a very different management philosophy and style,’ said Katon Dawson, the South Carolina GOP chair who finished second to Steele. ‘It wouldn’t have taken me four weeks to give them the money,’ he said, alluding to the transfers to the congressional campaign committees.”
NBC's Lauren Appelbaum reports that in the wake of James Dobson retiring from Focus on the Family, leaving a possible vacuum of power in evangelical leadership, Dr. Gary Dull and other Christian leaders are forming The Faith and Freedom Institute to combat "satanic wickedness" in order to return America to a foundation of biblical principles. (More on that later today.)
"Two candidates for top jobs at the Treasury have withdrawn their names from consideration, complicating efforts by Treasury Secretary Tim Geithner to staff his department at a time of economic crisis, according to people familiar with the matter," the Wall Street Journal reports. "Annette Nazareth, who was expected to be tapped as deputy Treasury secretary, and Caroline Atkinson, who was being considered to oversee international affairs, have both taken their names out of the running, these people said. Ms. Atkinson's name was withdrawn weeks ago and Ms. Nazareth withdrew several days ago.
"Across the administration, several potential candidates have been blocked by the Obama administration's tough rules about who it will hire. In addition, the White House increased the rigor of its vetting process after tax problems threatened Mr. Geithner's confirmation and scuttled that of former Sen. Tom Daschle. The withdrawals aren't confined to the Treasury. Susan Tierney recently withdrew her name from consideration for the job of deputy secretary of energy for what a person close to her said were family reasons. Jane Garvey recently withdrew from consideration for the deputy secretary post at the Department of Transportation, according to people familiar with the matter.
Spitzer’s Back: “Eliot Spitzer is returning to Washington, D.C., but this time as an investor in the commercial real-estate market,” the Wall Street Journal reports. “The former New York governor, who resigned in disgrace a year ago after getting caught patronizing a prostitute in a Washington hotel, has purchased a prominent office building blocks from the White House through his father's real-estate company.”
NBC's Abigail Williams reported that First Lady Michelle Obama spent her afternoon at Miriam's Kitchen yesterday, volunteering her time scooping mushroom risotto for the Washington, D.C., homeless. Dressed in bright spring colors and wearing a smile, the First Lady stood alongside Miriam's volunteers offering a hot meal and on more than one occasion a knowing wink of the eye. Standing in front of a diverse group of volunteers and D.C.-area homeless Mrs. Obama spoke about the difficult economic climate and the growing need for volunteerism throughout the United States. "Back in the kitchen I served food with six or seven volunteers who were here pouring their blood, sweat and tears into preparing the food and serving it," she said. "There are people all across the country even in these times who can lend a hand and volunteer at a soup kitchen, even if they don't have the resources to donate." (More later today.)
The Chicago Sun Times’ Sweet reports, “A few weeks ago -- on Feb. 17 -- Oprah Winfrey talked to First Lady Michelle Obama at the White House. According to Oprah.com and confirmed Thursday by an Oprah spokesman, Oprah will talk about her interview with the First Lady on her Friday show and show pictures from the visit.”
MINNESOTA: “Democrat Al Franken called Thursday for dismissal of Republican Norm Coleman's lawsuit challenging the Minnesota Senate recount, saying the fight had gone on long enough and Coleman hadn't proved his case,” the
Minneapolis Star-Tribune reports. “The motion for dismissal filed by his lawyers could be argued before a three-judge panel on Friday. It contends that Coleman has failed to meet his burden of proof that would enable him to overcome Franken's 225-vote lead.”
PENNSYLVANIA: The Club for Growth’s Pat Toomey looks closer to a primary run against incumbent Republican Arlen Specter.
WASHINGTON: “Former Microsoft executive Suzan DelBene has a strikingly similar résumé to that of Darcy Burner, the candidate who gave Reichert fits in 2006 and 2008. Burner is not planning to run again in 2010,” The Hill reports. “As Washington state political science Professor Travis Ridout noted, Reichert can expect Democrats to launch a full-fledged attack next year because, after making significant gains in the House in the past two elections, they have a much smaller playing field. Democrats put the district in their ‘Red to Blue’ program last cycle and are expected to do the same in 2010.”
From NBC's Pete Williams
Based on their questions and comments during three hours of oral argument Thursday, a majority of the California Supreme Court appeared ready to uphold Proposition 8, the ballot initiative that ended gay marriage in the state.
Approved by 52 percent of voters last November after a bitter election battle, it amended the state constitution to add a single sentence: "Only marriage between a man and a woman is valid or recognized in California."
However, it seemed equally apparent that the court was prepared to rule that the 18,000 same-sex marriages performed in the state last year should remain valid. Licenses for those marriages were issued between May, when the state Supreme Court struck down laws against same-sex marriage, and November, when the constitution was amended by Proposition 8 to undo that ruling.
CONTINUED >>
From NBC's John Yang
Senior administration officials tell NBC News that Dr.
Sanjay Gupta has withdrawn his name from consideration to the Surgeon General.
Chuck Todd further reports that Gupta had been offered the job but was weighing the financial considerations (i.e. pay cut) that it would entail.
From NBC's Lauren Appelbaum
Video: Countdown’s Keith Olbermann discusses a lawsuit filed by Joe the Plumber against the state of Ohio for violating his Constitutional rights. "It is our contention that there is an open question whether Joe the Plumber was number one on Obama's enemies list," Fitton said, referring to the alleged White House enemies list including Rush Limbaugh. "We already have evidence that government officials were misuisng government resources to, in our view, to try harm our client for speaking out against Mr.
Obama ."
Fitton said four days after Wurzelbacher's interaction with Obama on Oct. 12, 2008, the three highest ranking employees of the Ohio Department of Job and Family Services at the time held a meeting where they discussed Joe the Plumber. Fitton also said the three Ohio employees, who Fitton said are "believed to have been supporters of Obama's presidential campaign," then instructed agency personel to search confidential databases for information about Wurzelbacher.
"No American should be investigated for simply asking a question of a public official," Fitton said at the National Press Club. "It is unconscionable that high ranking state officials pried into confidential government files in retaliation for Joe's exercise of his First Amendment rights."
CONTINUED >>
From NBC's Domenico Montanaro posted on what the AFL-CIO was doing yesterday in pushing the Employee Free Choice Act, or card check, from its side, but its opponents, as we noted are also ratcheting up efforts.
The "Workforce Fairness Institute" frames the act as the Employee "Forced" Choice Act." And it equates increased union rolls with a potential loss of jobs -- in fact, 1.5 million more union members would mean a loss of 600,000 jobs, according to a study cited by the group .
Here's the full release:
CONTINUED >>
From NBC’s Claire Luke Supporters of the Employee Free Choice Act, otherwise known as “card check,” say the time is now for the bill to pass, and are summoning support for the bill before its forthcoming introduction to Congress.
The AFL-CIO held a conference call and issued a press release stressing the urgency and dedication needed from supporters of the bill, which they say would allow workers to organize a union by signing a card instead of holding secret-ballot elections, in order for it to pass through Congress. Since President Obama previously expressed his support for the bill, and labor unions are strong supporters of the Democratic Party, its passage through Congress is a primary focus of the AFL-CIO.
Vice President Biden , an ardent union supporter, spoke before the AFL-CIO's executive council today in Miami.
Card check is a divisive issue and a mobilizing one for conservatives. They have ratched up efforts to lobby against the act and are sending out daily e-mail blasts to national reporters.
CONTINUED >>
From NBC's Domenico Montanaro 's getting pretty impatient with all this recount business.
Now on Day 121, Franken filed a motion to dismiss Norm Coleman 's lawsuit challenging the results of the recount.
AP: "The motion goes point-by-point through Coleman's lawsuit and disputes the validity of the former senator's claims on double-counted ballots and other irregularities. The filing says Coleman has failed to show the vast majority of rejected absentee ballots it wants counted were properly cast. It whittles the pool of Coleman-requested ballots down to nine, and attaches qualifications to some of those. Coleman's attorneys have said they are highlighting
One thing that has been certain in this recount, just when things look like they're going to end, they don't.
From NBC's Domenico Montanaro and Chuck Todd Other than The Replacements -- Roland Burris and Kirsten Gillibrand -- likely no other Democratic senator will have a bigger target on his or her back in 2010 than Harry Reid .ad dubbing Rush Limbaugh the "leader" of the Republican party, is up with one praising Majority Leader Reid for his efforts to create jobs.
The ad is a "small buy" running on local broadcast in Las Vegas and will be up through the end of the week.
The group contends that "this isn’t getting involved in a Senate race, but recognizing leadership on an important issue to Nevada."
While the ad doesn't expressly advocate for Reid for Senate, it's never unhelpful for a senator in jeopardy to have a positive ad running for him on someone else's dime a year before he's up for re-election.
The group has targeted other House and Senate members for not supporting the stimulus or and will do so as well for the impending budget. But it is not on air supporting another candidate.
DNC buying billboard for Rush buying a billboard in Limbaugh's hometown , West Palm Beach, Fla., and running a contest encouraging Democrats to submit a slogan. The catch? The DNC gets your e-mail address.
From NBC's Domenico Montanaro Kirsten Gillibrand , and that is going to make her line to walk on guns even finer as 2010 approaches.
The pro-gun Upstate Democrat met yesterday with the Brady Campaign to Prevent Gun Violence. The Brady Campaign called it a "good start," adding that it "will be working with her to draft, advance and enact gun violence prevention legislation."
"Yesterday, the Chair of our Board of Trustees, Michael Wolkowitz, and I met with Senator Kirsten Gillibrand to discuss a number of issues related to gun violence prevention. We felt the meeting was a good start toward what we hope will be a strong and productive relationship helping to strengthen our gun laws and keep dangerous weapons away from dangerous people. Senator Gillibrand expressed particular interest in combating illegal gun trafficking, and we will be working with her to draft, advance and enact gun violence prevention legislation.
From NBC's Domenico Montanaro
Zach Wamp , the always self-assured Tennessee congressman, was on MSNBC this morning, railing against any health-care reform effort, calling it a move toward “socialism” and that Obama was engaging in almost “class warfare.”
Video: Rep. Zach Wamp discusses President Obama's health-care summit with MSNBC's Tameron Hall. Wamp went so far as to say, "Health care is a privilege," before clarifying that he meant, “It's not necessarily a right” for those who choose not to pay for health care. He asserted that of the 47 million uninsured, half opt out of their employer’s provided health care.
“It's probably the next major step towards socialism,” Wamp began. “I hate to sound so harsh, but.... this literally is a fast march towards socialism, where the government is bigger than the private sector in our country and health care's the next major step, so we oughta all be worried about it."
CONTINUED >>
From NBC's Ken Strickland Sen.
Ted Kennedy has returned to Washington today and will attend the health-care forum this afternoon at the White House.
From Chuck Todd, Mark Murray, and Domenico Montanaro Focusing on health care: A week after his fiscal responsibility summit, President Obama today holds another summit -- this time on the topic of health care. The format is pretty much the same: Obama delivers opening remarks from the East Room at 1:00 pm ET, participants then attend breakout sessions, and finally the president holds a question hour with beginning at 4:00 pm. Per NBC’s John Yang, the president will tie health care to the economy his opening remarks. "The cost of health care now causes a bankruptcy in America every 30 seconds. By the end of the year, it could cause 1.5 million Americans to lose their homes," he is expected to say. "If we want to create jobs and rebuild our economy, then we must address the crushing cost of health care this year, in this Administration. Making investments in reform now, investments that will dramatically lower costs, won't add to our budget deficits in the long-term -- rather, it is one of the best ways to reduce them." By the way, HHS Secretary-designate Kathleen Sebelius won’t be at today’s summit, but Nancy-Ann DeParle will be.
*** The two goals: Today's summit is about a couple of things. The first goal is to show off the idea that this will be an open process. The White House is live-streaming all five of the breakout sessions, allowing C-Span to broadcast at least one of them. What’s more, the live streams will be archived for the public. The other goal of this summit is to make it appear as if all the stakeholders have a say -- so they invited as diverse of a group as they could, including prominent opponents of Clinton's health care plan from the early 1990s.
*** The four health-care horsemen: As for the policy debate itself, the administration’s starting point is Obama's plan from the campaign. But in talking with key White House officials, they realize their best chance at getting something big to pass is to let the plan get written in the Senate (sorry, Mr. Waxman). That means there will be at least four key players. The biggest is Senate Finance Committee Chairman Max Baucus; he'll be the guy who probably will end up as the plan's architect. Then there are Sens. Wyden and Bennett, who have a surprisingly popular bipartisan idea that, among other things, proposes shifting the Medicaid burden away from the states (we think we know 50 governors who will LOVE that idea). The fourth big Senate player: Sir Teddy. This is not to say the House won't be involved, but the reality is the Senate is the more difficult lift.
Video: Kennedy honored with knighthood. ***
Party like it's 1993? With today's focus on health care, it's worth noting that the new NBC/WSJ poll doesn't show a huge appetite for an overhaul of health care right now. According to the poll, 49% say they would be willing to pay higher taxes so everyone could have health insurance, versus 45% who say they'd be unwilling to do this. Yet back in March 1993 -- just as the Clintons were embarking on their health-care drive -- 66% said they'd be willing to pay higher taxes here. And, of course, we know how that effort turned out. This is probably why you're seeing the Obama administration focus on lowering health-care costs than press for universal care. That said, the poll does find that, by a 69%-25% margin, Americans support increased spending on health care.
***
Demonizing Rahm: The Democrats have found their boogeyman in Rush Limbaugh, and now Republicans have found their own in … Rahm Emanuel. That’s right, House Minority Leader John Boehner released a statement yesterday blaming “political operatives” in the White House from diverting attention away from the country’s economic challenges to Rush Limbaugh (even though Limbaugh was in the news because he was the concluding speaker at the same conservative confab Boehner addressed). And on TODAY this morning, Newt Gingrich compared Rahm to Nixon chief of staff H.R. Haldeman.
*** A Fu(gate) good men: Think Team Obama learned not to repeat this Bush administration mistake -- appoint someone to head FEMA with little prior experience in emergency management? Yesterday, Obama named Craig Fugate, director of Florida’s emergency management -- who knows a thing or two about natural disasters -- to lead FEMA. And today, Fugate will appear with Homeland Security Secretary Napolitano and HUD Secretary Shaun Donovan at an event in New Orleans to signal the Obama administration’s commitment to rebuilding the Gulf Coast. Fugate is a Republican, and the pick was praised by former Florida Gov. Jeb Bush and current Florida Sen. Mel Martinez, who said in a statement: "Florida's loss will be the nation's gain. Craig is a top-notch individual who has helped Florida through some very severe hurricanes. He set the national model for disaster preparedness and I look forward to his swift confirmation."
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The AP previews Obama's White House health-care summit today. "[M]ore than 120 people who hold a wide range of views on how to fix the world's costliest health care system, one that still leaves millions uninsured," will attend. "A broad group of doctors, patients, business owners and insurers were to gather for a forum Thursday in hopes of building support for big changes in health care. Republicans are invited, and they're expected to speak up."
The Washington Post : “Obama's opening gambit to dramatically expand the health-care system has attracted surprising notes of support from insurers, hospitals and other players in the powerful medical lobby who are set to participate in an unusual White House summit on the issue this afternoon. The lure for the industry is the prospect of tens of millions of new customers: If Obama succeeds in fulfilling his pledge to cover many more Americans, those newly insured people will get checkups, purchase medicine, undergo physical therapy and get surgeries they cannot afford today.”
The New York Times on President Obama’s pick to head FEMA, Craig Fugate, who “has been director of the Florida Division of Emergency Management since 2001 and is credited with steering the state through some of the most devastating hurricane seasons in recent history. In a 2006 profile, Florida Trend Magazine said that in times of crisis Mr. Fugate was usually ‘the calmest guy in the room.’”
Here’s coverage of Obama’s housing plan… “The Obama administration yesterday sketched in the details of its most ambitious attempt to reduce foreclosures and stabilize the beleaguered housing market at the root of the economic meltdown,” the Washington Post front-pages. The program has two key elements: a refinancing program for borrowers with little equity in their homes but current on their loans, and a $75 billion program to help reduce mortgage payments for struggling borrowers.”
CONTINUED >>
Sens. Evan Bayh and Russ Feingold said they are voting against the omnibus spending bill and urged the president to veto it.
"President Barack Obama's proposal to limit itemized tax deductions for high earners is running into opposition from key Democrats in Congress who worry that charities and the housing market would be hurt," AP reports.
Salon’s Mike Madden asks, “Why is John McCain being such a jerk?” From the story: “A couple of weeks after Barack Obama beat John McCain in the election last year, the former rivals got together in Chicago for a friendly chat. The meeting went so well, despite the months of political combat, that they issued a joint statement afterward, promising to work hand-in-hand to reform government. The night before Obama took office this year, he threw a dinner in McCain's honor. Both men said they hoped they could put the bruising campaign behind them. Which is why the way McCain is spending his time less than two months later is a little strange: Lately, he seems to be going out of his way to remind the country of how much he and Obama disagree.”
NBC’s Mike Viqueira reports that a deal was reached yesterday for Karl Rove and Harriet Miers to testify before Congress on the firings of US attorneys during the Bush administration. Under the arrangement, both would testify behind closed doors to the House Judiciary Committee. The testimony would NOT be under oath, but the Dem source hastens to add that lying to Congress -- sworn or not sworn -- is a criminal offense.
Video: Karl Rove, along with former White House Counsel Harriet Miers, have agreed to testify before Congress .
No date has been set. The committee is also expected to get access to long-requested documents.
The Hill : “The agreement follows months of negotiations between Rep. John Conyers (D-Mich.), the chairman of the Judiciary panel, and the two advisers to then-President Bush. The deal ends a months-long separation-of-powers standoff between Congress and the administration.”
“Four months after John McCain’s sweeping defeat, senior Republicans are coming to grips with the fact that the party is still -- in stock market terms -- looking for the bottom,” Politico’s Ben Smith writes. “Republicans this week are processing two sobering new polls that found the party’s support reduced to a slim one-quarter of Americans. In the absence of a popular elected leader, its most visible figure is a polarizing radio host. Its strategic powerhouse is a still-divisive former House speaker forced from power 15 years ago.”
“And its hopes of demonstrating swift and visible change by pushing people of color to the fore have been dented by the stumbles of the party’s two most prominent non-white leaders, national Chairman Michael Steele and Louisiana Gov. Bobby Jindal. So perhaps it’s no surprise that many prominent Republicans are forecasting a long winter.”
How about Roger Simon 's lead: "Michael Steele has just dipped his toe into the water and is already in over his head. ... Steele’s job is really not that difficult. Being a party chairman is not what it used to be. Steele’s job is to raise money and go on TV every now and then and not screw things up too badly. He has failed at this last task."
CONTINUED >>
MINNESOTA: The recount trial continues . Yesterday, Al Franken's legal team brought forward a parade of people who say their votes may have been wrongly rejected in the U.S. Senate race. But Franken attorney Marc Elias said those voters were the exceptions dealt a raw deal by an election system that ‘[got] it right 99.99 percent of the time.’ He said his side will move today to dismiss parts of the election recount trial that was initiated by Republican Coleman in an attempt to overturn Democrat Franken's 225-vote lead.”
The Hill looks at the potential risks and rewards for the differing strategies of Democrats (which is more low key) and Republicans (more intense) in the Minnesota Senate race.
MICHIGAN: "Coming off a surprisingly close reelection race in 2008, Rep. Thaddeus McCotter (R-Mich.) dodged a bullet Wednesday when state House Speaker Andy Dillon (D) told national Democrats he would not run in 2010… A Michigan source tells The Hill that Dillon is more interested in running for governor, an office that will be vacated when Jennifer Granholm (D) is forced out by term limits."
NEW YORK: Stu Rothenberg, writing in Roll Call , asks this key question when it comes to NY-20: "[S]hould the DCCC keep expectations low by doing little more than it has already done for its nominee?" That said, he adds, if the DCCC jumps in, the race could be closer than expected, as the GOP's registration advantage is misleading.
Manhattan borough president Scott Stringer says he’s thinking about challenging Sen. Kirsten Gillibrand in a 2010 Dem primary. “The number of potential challengers considering a run against Ms. Gillibrand, who was appointed by Gov. David A. Paterson in January, is growing, underscoring not only Ms. Gillibrand’s perceived vulnerability but also the governor’s inability, so far, to gather support for her.”
From NBC’s Athena Jones WASHINGTON -- The White House kept the focus on cutting costs Wednesday, saying changes to government spending procedures, especially in the area of contracting, would save up to $40 billion a year.Obama signed today asks OMB Director Peter Orszag to work with Cabinet officials and agency heads to develop new guidelines on contracting by the end of September that would end unnecessary outsourcing and no-bid contracts, open up the contracting process to small businesses and strengthen oversight.
Video: Obama talks about his plan to cut wasteful spending. Obama has repeatedly emphasized the need for states, cities and federal agencies to spend taxpayer money wisely, especially as they implement the massive $787 billion stimulus package he signed into law last month. He argues that while the current economic crisis calls for a hefty increase in government spending in the short-term, the country's long-term economic health will require fiscal restraint.
CONTINUED >>
From NBC's Domenico Montanaro and Mark Murray President Obama named the head of emergency management for the state of Florida to be his nominee for head of the Federal Emergency Management Agency.
Craig Fugate has made a career of serving in local government as well as heading up emergency management from the town level all the way up to the state level in a state that deals with its share of natural disasters.
The pick follows in the model of Bill Clinton on FEMA, selecting someone with specific experience in the field. Symbolically, this is also a marked departure from former President George W. Bush 's FEMA choice. Ironically, Fugate was first appointed by the former president's brother, Jeb Bush, in October 2001.
That point was not lost on this White House. To underscore the point, Fugate will be introduced tomorrow with Department of Homeland Security head Janet Napolitano in New Orleans.
"From his experience as a first responder to his strong leadership as Florida's Emergency Manager, Craig has what it takes to help us improve our preparedness, response and recovery efforts and I can think of no one better to lead FEMA. I'm confident that Craig is the right person for the job and will ensure that the failures of the past are never repeated," President Obama said in a statement.
From NBC’s Domenico Montanaro Gordon Brown called on the United States today to join the U.K. and other countries around the world to “seize the moment” and launch a “Global New Deal.”
CONTINUED >>
From NBC’s Libby Leist
The State Department today pressed the Sudanese government to "take seriously" the arrest warrant of President Bashir issued by the International Criminal Court and to respond "in a positive matter."
The U.S. is not a signatory to the court, so spokesman Gordon Duguid would not explicitly welcome the arrest warrant today.
Instead he said, "The United States is strongly committed to the pursuit of peace in Sudan and believes those who have committed atrocities should be held accountable for their crimes."
He added later that he thought the warrant could be "helpful" in bringing peace to Sudan.
CONTINUED >>
From Chuck Todd, Mark Murray, and Domenico Montanaro A tale of two parties: To paraphrase Dickens, the last six weeks have been the best of times for Obama and the Democrats, and the worst of times for the Republicans. Just consider the latest findings from our NBC/WSJ poll: Obama’s favorability rating is at 68% (an all-time high in our survey), 67% say they feel more hopeful about his leadership, 60% approve of his job in the White House, and 49% have a positive view of the Democratic Party (which is also near a high). On the other hand, just 26% view the GOP positively (an all-time low in the poll), respondents blame Bush and congressional Republicans for most of the partisanship in DC, 56% think the GOP’s opposition to Obama is based on politics, and Republicans lose by nearly 30 percentage points on the question about which party would do a better job of leading the country out of recession. While we have covered all the new administration’s ups and downs, it is absolutely clear which party has suffered the most in public opinion these first six weeks: the GOP. NBC/WSJ co-pollster Peter Hart (D) says Republicans “have been tone deaf to the results of the 2008 election… They never heard the message. They continue to preach the old-time religion.” Adds co-pollster Bill McInturff (R), “These are difficult and problematic numbers.”
Video: Chuck Todd discusses the latest poll results and how Americans view Obama and the economy. ***
Obama’s long leash: Ironically, Obama’s high marks come at a time when Americans are increasingly pessimistic about the state of the economy. Only 7% say they’re satisfied about the economy, which is an all-time low in the poll. Moreover, 76% believe the economy still has a ways to go before it hits rock bottom. What’s going on here? The public doesn’t blame Obama for the economy -- even as critics try to attribute the Dow’s decline to Obama, and also even as Obama yesterday gave stock advice (!!!). Per the poll, 84% say Obama inherited this economy, and two-thirds of those people think he has at least a year before he’s responsible for it. “That’s a long leash,” McInturff says. “It normally doesn’t last that long. But believe me, that’s a good place to start.” But McInturff warns that while these numbers suggest a patient public, “Americans are notoriously impatient people.” So how long does the honeymoon last if the economy doesn’t get better?
*** Mind the gap: Another concern for Team Obama in the poll is that there’s a sizable gap between the president’s personal popularity and the popularity of his policies. While his favorability rating is 68% and his job approval is 60%, a slightly smaller percentage -- 54% -- say that Obama has the right policies and goals for the country. Per Hart, that 54% gives us a good idea where Obama’s standing might be after his honeymoon is over. Another striking finding in the poll: 41% think the country is on the right track, which is up 15 points since January. This jump, the pollsters say, is fueled primarily by Democrats pleased so far by Obama’s actions as president. As McInturff puts it, “If you’re a Democrat, that’s a pretty good six weeks compared to the last eight years in their mind.”
*** A reminder of how things can change: Here’s something else in the poll: Hillary Clinton’s fav/unfav (59%-22%) and Michelle Obama’s (63%-8%) are at all-time highs. And what’s noteworthy here is that these women, of course, haven’t always been this popular. Back in April 2008, Hillary had a net-negative fav/unfav (42%-44%), and 31% saw Michelle Obama in a negative light in September ’08. The one person in Obama Land who isn’t that popular? Answer: Treasury Secretary Tim Geithner, whose fav/unfav is at 14%-18%. Also, despite all the attention surrounding Bobby Jindal’s GOP response to Obama’s address to Congress, a whopping 57% don’t know who he is. His fav/unfav is 15%-15%.
*** A reminder of how things can change, part 2: After Obama’s announcement Friday that combat operations will end in Iraq by Aug. 2010, the public has a much sunnier outlook about the conflict there. According to the poll, 53% think the war has been a success, which is up 10 points from July. Also, 67% say the U.S. has accomplished as much as can be expected there. And, overall, a whopping 80% approve of Obama’s plan to pull most troops out of Iraq by that Aug. 2010 date.
*** Obama today: Per the AP , Obama today will sign a presidential memo “that changes government contracting procedures.” The administration believes this could save taxpayers about $40 billion per year by introducing more competition into the bidding process. Also this evening, the president and first lady host a dinner at the White House for congressional committee chairs.
*** Quigley’s the winner: In his bid to fill Rahm Emanuel’s congressional seat, Cook County Commissioner Mike Quigley won yesterday’s Democratic primary, capturing 22% of the vote in a crowded field. He moves on to the April 7 general election, and is almost all but assured of winning in this Dem-leaning district.
*** The never-ending recount: You knew this was coming, right? After being unable to significantly improve his standing in the Minnesota recount trial, Norm Coleman (R) yesterday said the judges will have to ponder whether they’ll be able to declare a winner -- suggesting that there might need to be a do-over election. In its recount, the canvassing board had Al Franken (D) up by 225 votes. Responding to Coleman’s comments, DNC chairman Tim Kaine fired off this statement: “The people of Minnesota have spoken. It’s time for Norm Coleman to accept the voters’ decision, do what is best for his state and country and stop standing in the way of a senator being seated. The stakes for our country are too high right now to suggest that the results of a democratic election, exhaustive recount, and legal proceedings be thrown out just because Norm Coleman doesn’t like the results.”
*** The Departed: South Carolina Rep. Gresham Barrett (R) is running for governor. Just asking, but how many other congressional Republicans are pondering a gubernatorial bid or another job? We've seen some safe Republican House members look for a way out, including Putnam in FL and Blunt in MO. Are they sending a subtle message by leaving right now?
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In its write-up of the NBC/WSJ poll, the Wall Street Journal says Obama “is more popular than ever, Americans are hopeful about his leadership, and opposition Republicans are getting drubbed in public opinion… But there are also early warning signs showing risks if his plans don't show progress. The president's support, while still deep, looks increasingly partisan as Republicans move away from him. Americans have more confidence in the president himself than in some of his initiatives, such as the economic stimulus package, and have some hesitation about his plans to raise taxes to expand health coverage.”
Here is our write-up : “After Barack Obama's first six weeks as president, the American public's attitudes about the two political parties couldn't be more different, the latest NBC News/Wall Street Journal poll finds. Despite the country's struggling economy and vocal opposition to some of his policies, President Obama's favorability rating is at an all-time high. Two-thirds feel hopeful about his leadership and six in 10 approve of the job he's doing in the White House.”
More: “By comparison, the Republican Party -- which resisted Obama's recently passed stimulus plan and has criticized the spending in his budget -- finds its favorability at an all-time low. It also receives most of the blame for the current partisanship in Washington and trails the Democrats by nearly 30 percentage points on the question of which party could best lead the nation out of recession.”
Meanwhile, Obama’s approval rating in a new Quinnipiac poll is at 59%.
CONTINUED >>
British Prime Minister Gordon Brown addresses a joint session of Congress today. Brown said yesterday: "I am going to say to Congress: 'Seize the moment when the whole of the world wants to work with America. This is a moment where we can't solve the problems of the banking system without us all working together. I think you will find that members of Congress -- not just President Obama -- want a way out of this problem and the method of cooperation will actually commend themselves to them."
The Guardian calls Brown’s speech “possibly the most important of his political life.” The speech “will be watched closely by Obama to see if Brown could act as a significant ally in the battle to persuade the international stockmarkets that European politicians have answers to the collapse of confidence. It will also be pored over by domestic audiences to see if Brown will join his chancellor, Alistair Darling, in admitting that the government has made mistakes. Brown has told friends that he has no intention of apologising since he believes the banking crisis that started in the US cannot be laid at his door.”
The AP’s headline on McCain’s earmarks amendment failing yesterday: “Senate ignores McCain, keeps thousands in earmarks.”
The Washington Post has more on the battle over earmarks. “Congressional Democrats pushed back yesterday against suggestions from President Obama that they rein in spending on narrow special interest provisions, defending these ‘earmarks’ as a sliver of the trillions of dollars in federal spending and part of their constitutional duty to their constituents. Noting Obama's past pursuit of earmarks while he was senator, Democrats set up a squabble with the president over the ingrained culture of the congressional prerogative to direct federal spending as lawmakers see fit. They reacted coolly to proclamations from a top White House aide that Obama would change the ‘rules’ for future spending bills once the current $410 billion catch-all spending bill, a leftover from last fall, clears the Senate later this week.”
CONTINUED >>
Is this Politico piece the first of more stories to come doubting RNC chair Michael Steele’s tenure so far? “Steadily becoming a dependable punch line, Steele has brushed back Rush Limbaugh, threatened moderate Republican senators, offered the ‘friggin’ awesome’ Louisiana Gov. Bobby Jindal some ‘slum love,’ called civil unions ‘crazy’ and promised more outreach to ‘urban-suburban hip-hop settings’ via an ‘off the hook’ public relations campaign. He even threw a shout-out to ‘one-armed midgets.’ That’s in just 30 days on the job -- and that’s just the PR part. On the organizational side, Steele does not have a chief of staff, a political director, a finance director or a communications director. Last week, one of the two men sharing the job of interim finance director was forced to resign.”
And here come the blind quotes: “There’s frustration that there’s no discipline, no planning,” said a well-known Republican consultant. “He’s risking being overexposed by accepting every interview, which makes gaffes more likely.”
In an interview on TODAY, Steele said this about his little dust-up with (and then apology to) Rush Limbaugh: “This has been a great little distraction… Let’s move forward.” On the GOP’s poor poll numbers: “We’ve got a lot of work to do. The polls show it.”
Video: Steele talks about Limbaugh's controversial comments. CONTINUED >>
MINNESOTA: “Norm Coleman said Tuesday that the three judges hearing the U.S. Senate recount trial will have to ponder whether they'll be able to decide who won the election,” the Minneapolis Star Tribune reports. “Coleman … questioned whether the panel will be able to certify him or DFLer Al Franken as the candidate with more legitimate votes. ‘I think the court is going to have to reflect on that,’ Coleman said during a break in the trial, which is in its sixth week as he challenges recount results showing Franken ahead by 225 votes.”
“Coleman's team finished its side of the case on Monday -- the same day that Coleman attorney James Langdon wrote the judges to suggest that problems with the election were so serious that the panel may not be able to declare a winner. Franken's campaign began presenting its case on Tuesday in the St. Paul courtroom.”
The Pioneer Press adds, “Election law experts say ordering another election is not within the judges' purview -- a position strongly adopted by Franken's attorneys. ‘There is no precedent. There is no law. There is no statute. There is no rule. There is nothing in Minnesota that would suggest that one could simply suggest that one could simply start over again,’ said Franken attorney Marc Elias. He said the suggestion might reflect how the Coleman team believes their case went over the past six weeks. On Monday, the Republican's lawyers ‘provisionally’ rested their case, saying they wanted to give the court more information before resting completely.”
New DNC chairman Tim Kaine issued this statement responding to Coleman’s suggestion that it might be impossible to have a winner. “The people of Minnesota have spoken. It’s time for Norm Coleman to accept the voters’ decision, do what is best for his state and country and stop standing in the way of a Senator being seated. The stakes for our country are too high right now to suggest that the results of a democratic election, exhaustive recount, and legal proceedings be thrown out just because Norm Coleman doesn’t like the results.”
CALIFORNIA: The AP says LA Mayor Antonio Villaraigosa “easily won re-election after a bumpy first term in the nation's second-largest city, fueling speculation that he will be among contenders next year to succeed Gov. Arnold Schwarzenegger… Villaraigosa, the first Hispanic mayor in more than a century, was rewarded Tuesday with a second, four-year trip to City Hall despite an uneven first term that saw the breakup of his marriage and the defeat of his signature plan to reform city schools. ‘I stand before you all humbled tonight, humbled by your support and by your confidence,’ Villaraigosa told supporters at an election night rally. Unofficial returns from all but one precinct and a tally of vote-by-mail ballots early Wednesday gave the Democratic mayor 56 percent of the vote. He needed to capture more than half the vote to avoid a May runoff.”
ILLINOIS: Cook County Commissioner Mike Quigley won the Democratic primary to replace Rahm Emanuel in Illinois’ fifth congressional district. He “was first with 22 percent of the vote, while Fritchey and Feigenholtz were second and third, respectively, with both around 17 percent.”
The Chicago Tribune writes that Quigley overcame "disadvantages in campaign cash and union support." Low voter turnout may have helped him, because he started out with higher name recognition than the other candidates. "Like Emanuel," the Trib writes, "he is media savvy, quick to offer a tip or pointed quote. But Quigley also is a wonk, known for writing policy papers on such arcane topics as tax-increment financing and government restructuring."
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From NBC’s Ken Strickland In his weekly news conference today, Senate Majority Leader Harry Reid made not-so-subtle references to the Republican infighting between RNC Chairman Michael Steele and conservative radio talk show host Rush Limbaugh.
Reid said it's clear the American economy is in trouble and needs help, "but I guess the Republicans haven't gotten that message. Maybe they're not reading the papers or watching the news; maybe they're focused on talk radio. I don't know."
Minutes later, the majority leader criticized Republicans for slow-walking a government-funding bill being debated on the floor.
"The Republicans have made a decision to ‘just to say no’ to everything," he said. "It's very clear they've made a decision that they want President Obama to fail."
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From NBC’s Jay Blackman Michelle Obama traveled to Arlington National Cemetery today to tour the Women In Military Service For America Memorial as part of her commemorating Women’s History Month. It is the only memorial that pays tribute to al women who served in the Armed Forces since the Revolutionary War.
Dedicated in October of 1997, the memorial includes displays of exhibits showcasing artifacts, text an
