Political Blog

The President's funny side

2009-05-11T14:11:00.001-04:00

Breaking: Supreme Court Justice Souter to Retire

2009-04-30T23:00:00.002-04:00

Supreme Court Justice David Souter was appointed to the nation's highest court in 1988 by the first President Bush. He's set to retire in June. More on the newly redesigned TheMatadorOnline.com:

http://www.thematadoronline.com/top-stories/2009/04/30/breaking-news-justice-david-souter-to-retire/

Developing Story: Arlen Specter Crosses the Aisle

2009-04-28T12:45:00.000-04:00

Developing Story: CNN is reporting that Pennsylvania Senator Arlen Specter will be changing from the Republican to Democratic party.

First 100 days reveal similarities between Obama, Reagan

2009-04-27T14:33:00.002-04:00

From TheMatadorOnline.com newsroom:

By Dick Polman
The Philadelphia Inquirer
(MCT)

On the cusp of his first 100 days in office, the new president is fully embarked on his transformative mission, dominating the news cycle by sheer force of his telegenic cool, exuding confidence, and prompting downhearted Americans to feel better about their troubled country. The New York Times praises his "remarkable political strengths and gifts," particularly his "gift for political ...

Read more:
http://www.thematadoronline.com/viewpoints/2009/04/27/first-100-days-reveal-similarities-between-obama-reagan/

Calls to evaluate interrogation techniques ignored

2009-04-27T14:32:00.001-04:00

From TheMatadorOnline.com newsroom:

By Greg Miller

Tribune Washington Bureau

(MCT)

WASHINGTON — The CIA used an arsenal of severe interrogation techniques on al-Qaida prisoners for nearly seven years without ever seeking a rigorous assessment of whether the methods were effective or necessary, according to current and former U.S. officials familiar with the matter.

The failure to conduct a comprehensive examination occurred despite calls to do so as early as 2003. That year, the agency's inspector general circulated drafts of a report that raised deep concerns about waterboarding and other methods, and recommended a study by outside experts on whether they worked.

That inspector general report described in broad terms the volume of intelligence that the interrogation program was producing, a point echoed in smaller studies later commissioned by then-CIA Director Porter J. Goss.

But neither the inspector general's report nor the other audits examined the effectiveness of interrogation techniques in detail, or sought to scrutinize the assertions of CIA counterterrorism officials that so-called enhanced methods were essential to the program's results. One report by a former government official — not an interrogation expert — was about 10 pages long and amounted to a glowing review of interrogation efforts.

"Nobody with expertise or experience in interrogation ever took a rigorous, systematic review of the various techniques — enhanced or otherwise — to see what resulted in the best information," said a senior U.S. intelligence official involved in overseeing the interrogation program.

As a result, there was never a determination of "what you could do without the use of enhanced techniques," said the official, who like others, described internal discussions on condition of anonymity.

Former Bush administration officials said the failure to conduct such an examination was part of a broader reluctance to re-examine decisions made early after Sept. 11.

The Defense Department, Justice Department and CIA "all insisted on sticking with their original policies and were not open to revisiting them, even as the damage of these policies became apparent," said John B. Bellinger III, who was legal adviser to former Secretary of State Condoleezza Rice, referring to burgeoning international outrage.

"We had gridlock," Bellinger said, calling the failure to consider other approaches "the greatest tragedy of the Bush administration's handling of detainee matters."

The limited resources spent examining whether the interrogation measures worked were in stark contrast to the energy the CIA devoted to collecting memos declaring the program legal.

Justice Department memos released this month show that the CIA repeatedly sought new opinions on the legality of depriving prisoners of sleep for as long as seven days, throwing them against walls, forcing them into tiny boxes and subjecting them to the simulated drowning technique known as waterboarding.

How well those methods worked is facing independent scrutiny for the first time only now, three months after President Barack Obama banned the CIA from using them.

As part of an executive order shutting down the CIA's secret prisons, the White House has set up a task force to examine the effectiveness of various interrogation approaches.

The Senate Intelligence Committee launched a similar review, and began combing through classified CIA cables that describe daily developments in the agency's interrogations of al-Qaida prisoners.

"To the best of our knowledge, such a review has not been done before," said a Senate aide involved in the probe.

CIA spokesman Paul Gimigliano declined to comment on the reviews, saying their contents remain classified.

A U.S. intelligence official who defended CIA interrogation practices said, "Productivity was an obvious and important measure of the program's effectiveness. The techniques themselves were not designed to elicit specific pieces of information, but to condition hardened terrorists to answer questions about al-Qaida's plans and intentions.

"By that yardstick — the generation of reporting that was true and useful, that led even to other captures — it worked."

Obama has described the agency's activities as "a dark and painful chapter in our history," and senior members of his administration, including Attorney General Eric H. Holder Jr., have called the techniques torture.

Defenders of the program, including former Vice President Dick Cheney, have accused Obama of dismantling a capability that was critical to keeping the country safe. Cheney also has called for the release of classified documents that he said will show how effective the program was.

Officials said that Cheney probably was referring to memos that were drafted by leaders of the CIA Counterterrorism Center to serve as talking points when the program was the subject of briefings to members of Congress and White House officials.

Many of those talking points have been cited publicly in recent years by senior government officials, starting with President George W. Bush when he disclosed the CIA's secret prison system in September 2006.

At the time, Bush said that "alternative" interrogation methods had been critical to getting al-Qaida operatives, including Abu Zubaydah and alleged Sept. 11 mastermind Khalid Sheikh Mohammed, to talk.

"I cannot describe the specific methods used," Bush said. "But I can say the procedures were tough, and they were safe, and lawful and necessary."

By then, Bush administration officials were concerned with a shifting legal landscape. Congress had passed new laws on the treatment of detainees, and the Supreme Court issued a ruling that undercut the Bush administration's claim that al-Qaida prisoners were not entitled to the protections of the Geneva Conventions.

But officials said that the first high-level concern about the direction of the CIA's interrogation program had come in 2003, when then-CIA Inspector General John L. Helgerson began distributing draft copies of his report on the program across the executive branch.

The document triggered alarms about waterboarding, documenting that it had been employed far more frequently — including 263 times against two al-Qaida prisoners — than widely understood.

(EDITORS: BEGIN OPTIONAL TRIM)

The report also faulted how agency operatives applied the method, dumping large quantities of water on prisoners' faces, apparently violating the agency manual and its agreements with the Justice Department. Nervous about the report's implications, then-CIA Director George J. Tenet suspended the use of waterboarding in 2003.

The document also was critical of other approaches, including sleep deprivation. For all its criticism of the program, the 200-plus page document also included passages that have been cited by some as evidence that the interrogation operation was effective.

A May 2005 Justice Department memo noted that the inspector general's report described an "increase in intelligence reports attributable to the use of enhanced techniques."

A U.S. intelligence official familiar with its contents confirmed that the inspector general's report contains language that is consistent with the assertions by former CIA Director Michael V. Hayden and others that the interrogation program accounted for more than half of the intelligence community's reports on al-Qaida.

But officials said the document did not assess the quality of those reports. It also did not attempt to determine which methods were yielding the best information, or explore whether the agency's understanding of al-Qaida would have suffered significantly without the use of coercive techniques.

"Certainly you got additional considerable volume of reporting when you started up with anything enhanced," the U.S. intelligence official said. "But nobody went back to say exactly what were the conditions under which we learned that which was the most useful."

In fact, Helgerson's team had steered away from that question by design, the official said, hoping that agency leaders would turn to interrogation experts for a thorough study on which methods were working and which should be discarded.

(END OPTIONAL TRIM)

White House National Security Council officials who saw the inspector general's report became concerned with its conclusions, current and former officials said. Stephen Hadley, then the deputy national security adviser, was particularly persistent on pushing the CIA director to follow up on the inspector general's recommendation.

Porter J. Goss, who had taken the helm at the CIA four months after the inspector general's report was filed, eventually complied. But while Helgerson had envisioned a group of experts, perhaps including specialists from the FBI, Goss turned to two former government officials with little background in interrogation.

Gardner Peckham, who was a national security adviser to former GOP House Speaker Newt Gingrich, produced the approximately 10-page document that praised the program. It concluded that the program was "very structured and very disciplined," said a former official familiar with its contents, but did not assess the effectiveness of various methods.

A separate report, submitted by John J. Hamre, a former deputy Defense secretary, was similar in scope and led to no significant alterations of the program. Hamre and Peckham both declined comment.

Despite the high-level attention, former Bush administration officials said they never saw the results of the audits that Goss had commissioned.

"They never came and presented anything to the White House that said in response to the I.G. report they have commissioned a review," said a former Bush administration official. "They essentially came back with the recommendations that this was the program and it couldn't be changed."

———

(Julian E. Barnes of the Tribune Washington Bureau and Doyle McManus of the Los Angeles Times contributed to this report.)

———

(c) 2009, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

Breaking: Freddie Mac Exec. Allegedly Commits Suicide

2009-04-22T08:39:00.002-04:00

CNN: Acting chief financial officer of mortgage financier Freddie Mac has been found dead in suspected suicide, police say.

Check back for updates on this developing story...

Geithner says bailout funds remain for economic initiatives

2009-04-22T08:24:00.000-04:00

From TheMatadorOnline.com Newsroom:

By Jim Puzzanghera
Tribune Washington Bureau
(MCT)

WASHINGTON — The Obama administration has enough money left for its economic initiatives with $110 billion remaining in the federal financial rescue fund and $25 billion more coming this year as some banks return bailout money, Treasury Secretary Timothy F. Geithner said Tuesday.

Geithner disclosed the new numbers as he defended the administration's bailout efforts in the face of tough questioning from a special panel overseeing the $700 billion Troubled Asset Relief Program, or TARP. In his first appearance before the panel, Geithner said federal funding has helped stimulate consumer and business lending, but more work was needed to revive an economy mired in recession.

"The lessons of financial crises (are) that early action, forceful action, sustained action to repair financial systems, promote the flow of credit, is essential to limit the damage recessions cause and to make it possible to bring recovery about at least cost to the taxpayer over time," he said.

In his written testimony, Geithner said the vast majority of banks "have more capital than they need to be considered well-capitalized by their regulators," a comment that helped boost the stock market a day after it had been shaken by huge loan losses reported Monday by Bank of America Corp.

The Dow Jones industrials jumped 1.6 percent, and the Standard & Poor's 500 index surged 2.3 percent, as each gauge erased almost half the decline it recorded Monday.

The TARP money has been used primarily to bolster the financial industry — both giants such as Bank of America and Citigroup Inc. and smaller banks — but also to try to steady the teetering U.S. auto industry, specifically Chrysler and General Motors Corp.

Geithner tried to blunt criticism of the bailouts by saying the government was doing its best to balance the protection of taxpayer money with prevention of a collapse of the financial system.

"My basic obligation and our responsibility is to make sure that the system as a whole has the ability to provide the credit that recovery requires. And so we need to make a careful judgment about what policies are going to best promote that objective," Geithner told the congressional oversight panel, which was created last fall to monitor use of the $700 billion fund.

In a separate letter to panel Chairwoman Elizabeth Warren, a Harvard University law professor, Geithner said the fund had at least $109.6 billion remaining after a series of unprecedented investments in U.S. banks and other financial institutions through TARP.

With repayments, the administration expects to have $134.6 billion to use for additional rescue efforts the rest of the year.

Noting that the administration plans to provide additional money to banks, as well as to GM and Chrysler, "we believe that even under the conservative estimate of available funds described here, we have the resources to move forward implementing all aspects of our financial stability plan," Geithner wrote.

(EDITORS: STORY CAN END HERE)

The administration has not said how much more money it would provide to GM as it aims to restructure by June 1 and to Chrysler as it seeks a government-brokered merger with Italian automaker Fiat by May 1. But a report Tuesday from the office of the TARP special inspector general said GM would receive up to $5 billion and Chrysler up to $500 million in working capital.

In February, the White House said it might need an additional $750 billion in bailout money should economic conditions worsen. But administration officials have since stressed that they have no plans to ask Congress for more money.

Such a request would be a hard sell because many lawmakers from both parties have been upset about the way the program has been run, particularly with the large amounts of money injected into banks with no requirements that they lend it.

Critics received more ammunition Tuesday from the inspector general's 250-page report, which said it had opened 20 criminal investigations into fraud and other misuse of the money.

So-called stress tests to assess the financial condition of the nation's 19 largest banks might require the government to provide more money to some large banks if they can't raise additional capital themselves.

Those funds could be offset by repayments by some financial institutions, such as Goldman Sachs, that want to get out of restrictions on executive compensation and other government conditions that come with the federal money.

During his congressional appearance, Geithner was questioned sharply about recent comments indicating that even if some of the largest recipients of bailout money wanted to return the money and had the funds to do so, government officials might not allow them.

"If there are firms that wish to repay taxpayers their money ... why wouldn't you take the money back?" asked Rep. Jeb Hensarling, R-Texas, one of two lawmakers on the panel.

Geithner said that "nothing would make me happier," but that administration officials and banking regulators would need to weigh the potential effect on the economy.

"One is, do the institutions themselves have enough capital to be able to lend?" he said. And is the overall financial system working well enough to start pulling back the extra cushion that the bailout money provides, he said.

Warren said the panel was trying to address criticism of the bailouts from the public.

"People are angry because they're paying for programs that haven't been fully explained and have no apparent benefit for their families or for the economy as a whole but that seem to leave enough cash in the system for lavish bonuses or golf outings," she told Geithner. "None of this seems fair." Another panel member, Damon Silvers, associate counsel for the AFL-CIO, questioned the taxpayer risk in the proposed public/private partnership to purchase bad mortgage loans and other toxic assets from financial institutions.

There seemed to be a "profound and inexplicable imbalance" between the risk that taxpayers were making in funding the purchases and the upside they could get from sale of the assets at a later date compared with the lower risk and greater upside for private investors, he said.

"Now, I just don't get it, Mr. Secretary, how this represents protecting the taxpayer, and I would like you to explain why it does," Silvers said.

Geithner said the alternative would be for the government to take on all of the risk and to determine, in the absence of private investors, the fair market value for the assets.

"Now, they would get in return all the potential upside in this case," Geithner said of taxpayers, "but that trade-off is a bad trade-off for the government, because the government is highly unlikely to be in a position to be able to get the valuation right."

———

(c) 2009, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

—————

ARCHIVE PHOTO on MCT Direct (from MCT Photo Service, 202-383-6099): "timothy geithner"

Obama hails Kennedy, signs volunteerism bill

2009-04-22T08:23:00.000-04:00

From TheMatadorOnline.com Newsroom:

By Rebecca Cole

Tribune Washington Bureau

(MCT)

WASHINGTON — At a time when community service is already growing, openings for federally sponsored volunteers will more than triple under a bill that President Barack Obama signed into law Tuesday.

The legislation, which won broad bipartisan support, authorizes an expansion of AmeriCorps and other national service programs. It is named for its lead sponsor, Sen. Edward Kennedy of Massachusetts, who attended the signing along with former President Bill Clinton, who started AmeriCorps in 1993.

With his signature, Obama called on Americans to "stand up" and take part in community service. "I'm asking you to help change history's course, put your shoulder up against the wheel," he said.

Kennedy called it "a wonderful day for all of our country and all Americans, who will now have a chance and the opportunity to give back to their communities and the nation, the nation that we love so much."

Obama, for his part, said he wouldn't be where he is today without the service of others: "When I moved to Chicago more than two decades ago, to become a community organizer, I wasn't sure what was waiting for me there. But I had always been inspired by the stories of the civil rights movement and President (John) Kennedy's call to service."

Propelled by Edward Kennedy and Republican Sen. Orrin Hatch of Utah — the "odd couple of the Senate," Obama called them — the act will deliver $1.1 billion to AmeriCorps this year, in addition to $200 million that the president's economic stimulus act has funneled to the organization.

The funding will allow the organization to expand openings for AmeriCorps volunteers from 75,000 to 250,000 positions over the next nine years and to establish four new areas of volunteer corps in health care, education, clean energy and conservation.

The legislation ties service to education, increasing the stipend paid to volunteers to $5,350, the same as that of a Pell Grant for college students. It also creates a $50 million Social Innovation Fund to provide matching grants to nonprofit organizations. And it establishes Sept. 11 as a national day of service.

Alan Solomont, chairman of the agency that oversees AmeriCorps, notes that interest in the program already is growing — with 17,000 applications collected online in March, triple the number recorded in March 2008.

"We know that people want to serve, as witnessed by 'the Obama effect' of people answering the president's call to service," Solomont said in a conference call with reporters Tuesday.

Melody Barnes, director of the White House Domestic Policy Council, calls the new Social Innovation Fund consistent with Obama's commitment to look outside of Washington for programs that have an impact on their communities.

"One of the things we are very focused on here is not just the number of people who participate, the number of hours that are committed, but impact and transformation," Barnes said.

The White House also announced the nomination of Maria Eitel for chief executive of the Corporation for National and Community Service, the agency that operates AmeriCorps. As president and founder of the Nike Foundation, the former Nike vice president for corporate responsibility has worked at increasing opportunities for girls around the world.

Eitel, Obama said, "will bring new, creative thinking to the growth and mission" of the organization.

———

(c) 2009, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

Judge refuses Blagojevich request to leave U.S. for reality TV show

2009-04-22T08:22:00.001-04:00

From TheMatadorOnline.com:

By Jeff Coen and John Chase
Chicago Tribune
(MCT)

CHICAGO — A federal judge on Tuesday denied former Illinois Gov. Rod Blagojevich's bid to join a reality TV show in Costa Rica and told him it's time he focus on the actual reality of his criminal trial.

U.S. District Judge James Zagel told Blagojevich it was a "bad idea" for the ex-governor to spend a few weeks running through the jungle trying not to get voted off a show by viewers, all while ignoring the voluminous government evidence against him.

The "great shock" of seeing perhaps tens of thousands of pages of documents — and digesting their contents — will lead to a better sense of what kind of jeopardy the sweeping federal case represents for Blagojevich, the judge said.

"The defendant has not gone through either of those preliminary stages," Zagel said. "It's way too soon. I don't think the defendant in all honesty fully understands, nor could he understand, (having) not seen everything, the position he finds himself in."

Blagojevich's lawyer, Sheldon Sorosky, described the role on "I'm a Celebrity ... Get Me Out of Here!" as a job for the ousted governor, who he said is essentially broke. He could have earned as much as $123,250 on the program.

In one bit of good news for Blagojevich, Zagel indicated he might allow the former governor to use the nearly $2.7 million in his campaign fund to help pay his legal defense.

Blagojevich has pleaded not guilty to charges he ran state government as a criminal enterprise to enrich himself and close aides, advisers and fundraisers. Tuesday marked his second appearance in court in just a week.

Following the hearing, Blagojevich endured another scrum with the media and public outside the Dirksen U.S. Courthouse.

Asked about Zagel's comments that he doesn't understand the jeopardy he faces, Blagojevich said he looks forward to being vindicated in court.

"I'm fully aware of what the allegations are and I know what the truth is concerning me and I know that I've done absolutely nothing wrong," he said. "And I'm actually looking forward to this day in court. ... I want to prove my innocence. I want to vindicate myself. I want to clear my name."

(EDITORS: STORY CAN END HERE)

During the melee, Sorosky grasped onto a Tiffany bag that someone had given to Blagojevich before court. Inside, he said, was a gift: a candlestick.

"I don't even know if I can take it," Blagojevich said in apparent reference to state rules that track gifts for elected officials. A reporter pointed out he was no longer governor and could take whatever gifts he'd like.

When asked by a reporter how active a role he will play in his own defense, Blagojevich replied, "Very active."

"I know a lot of things about me," he said.

(EDITORS: STORY CAN END HERE)

Sorosky said he plans to quickly file a motion to gain access to the campaign funds for legal bills. Zagel encouraged Sorosky to make the request because Blagojevich's attorney has indicated the ex-governor and former first lady Patricia Blagojevich are unemployed and taxpayers would then have to pay his legal bills.

"It shows he was an honest man," Sorosky said when asked later if Blagojevich is really broke.

Former Illinois Gov. George Ryan was not able to pay his attorneys with money from his campaign fund in part because that fund itself had previously been convicted of wrongdoing.

During the hearing, Sorosky brought along a representative from the TV show's production company and tried to convince Zagel to allow Blagojevich to travel outside the U.S. for the show. NBC was willing to pay for two security guards to watch Blagojevich "24 hours a day" and the former governor would put up his house as bail, he said.

(EDITORS: STORY CAN END HERE)

Sorosky said the government presumes the governor will run away but that he wanted only to raise money for his family.

But Assistant U.S. Attorney Reid Schar said it is impossible to predict the actions of the former governor, especially once he realizes he potentially could face up to 30 years in prison if convicted.

"What Mr. Blagojevich will do ... is an inherently difficult proposition," Schar said.

"I do not have confidence that things will not go astray," Zagel said in denying Blagojevich's request.

Two former chiefs of staff for Blagojevich, John Harris and Lon Monk, are expected to plead guilty and testify against Blagojevich, Schar said. It is the first time law enforcement officials have publicly confirmed that Monk is cooperating.

NBC issued a statement saying the production wouldn't relocate to a site within the United States so Blagojevich could participate. In a short-lived 2003 version of the show, contestants had to put insects, worms and rats in their pants, sit in a tank of leeches and wade through a swamp populated by snakes and eels.

———

(Chicago Tribune reporters Robert Mitchum and Stacy St. Clair contributed to this report.)

———

(c) 2009, Chicago Tribune.

Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/

Distributed by McClatchy-Tribune Information Services.

—————

Obama tells Cabinet to cut spending, but trims would only total $100 million

2009-04-21T09:00:00.000-04:00

By Christi Parsons

Tribune Washington Bureau

(MCT)

WASHINGTON — President Barack Obama called his full Cabinet together for the first time on Monday and instructed department heads to cut enough money from their budgets to set a new "tone" in Washington.

But the target the president set for the cuts amounts to a small fraction of the overall budget, leaving room for critics to question whether the reductions mean much at all.

The president has asked for a total of $100 million in trims, from a budget expected to exceed $3.5 trillion. Secretaries have a month and a half to come up with proposed cuts.

"None of these things alone are going to make a difference," Obama conceded, emerging from the meeting. "But cumulatively they would make an extraordinary difference, because they start setting a tone." If they cut "$100 million there, $100 million here," Obama said, "pretty soon, even in Washington, it adds up to real money."

Republicans characterized the target in different terms. A "meager .0025 percent," said House Republican Leader John Boehner of Ohio. "Pathetic joke," said Grover Norquist, president of Americans for Tax Reform.

"Let's not forget that at the same time they're looking for millions in savings, the president's budget calls for adding trillions to the debt," said Senate Republican Leader Mitch McConnell of Kentucky.

According to the White House, federal agencies have already started working to trim fat from their budgets.

At the Agriculture Department, for example, officials have been seeking out potential fraud and improper payments in the farm programs, the White House said. People who get program payments will now have to provide income information for verification, so that ineligible recipients can be taken off the rolls.

Most employees at the Department of Education will have either a laptop or a desktop computer, but not both. The Homeland Security Department will try to get better prices on its supplies by purchasing in bulk.

U.S. attorneys and U.S. marshals plan to publish judicial forfeiture notices on the Internet instead of in newspapers. The Department of Veterans Affairs has canceled or put off more than two dozen conferences and will begin to use more video-conference in its training programs.

Some of those changes are expected to save a few hundred thousand dollars, others a few million.

As government money flows toward projects enabled by the president's nearly $800 billion economic stimulus plan, some GOP critics say Obama is missing an obvious place to look for cuts.

"If the administration wants to get serious about cutting waste, it should start by taking a closer look at how millions in 'stimulus' dollars are being wasted on a skateboard park in Rhode Island, bike racks in Washington, D.C., highway studies instead of construction projects in Ohio and programs led by housing agencies that routinely fail audits," Boehner said in a written statement.

Obama acknowledged "a confidence gap when it comes to the American people. And we've got to earn their trust. They've got to feel confident that their dollars are being spent wisely."

White House press secretary Robert Gibbs scoffed at questions about the low-dollar amount of the requested cuts.

"Only in Washington, D.C.," he said, "is $100 million not a lot of money."

———

(c) 2009, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

—————

Obama: Cuba must take next steps toward normalizing relations with U.S.

2009-04-20T07:52:00.001-04:00

From TheMatadorOnline.com newsroom:

Chicago Tribune

(MCT)

PORT-OF-SPAIN, Trinidad _ President Barack Obama resisted pressure Saturday from Latin American counterparts to lift the trade embargo with Cuba, countering that the steps he has taken to loosen travel restrictions will have to suffice for now.

Obama, appearing at a weekend summit of 34 Western Hemisphere nations in Trinidad, reiterated that he is committed to improving relations with Cuba.

"He said we are on a path of changing the nature of our relationship with that country," said a senior Obama administration official who briefed reporters on the meeting. "He is interested in dialogue but not talk for talk's sake."

Cuba's fate has come to dominate the Summit of the Americas, after an unexpected overture from the nation's president, Raul Castro, last week. But White House officials caution that before the U.S. normalizes relations, Cuba's leadership needs to take actions consistent with the new tone, such as releasing political prisoners, dropping fees imposed on money sent home to Cuba and freeing up the press.

A lighter undercurrent to the summit has been Obama's periodic encounters with Venezuelan President Hugo Chavez. On Friday they shook hands. And on Saturday morning, Chavez handed Obama a book, "Open Veins of Latin America: Five Centuries of the Pillage of a Continent," by Eduardo Galeano.

Chavez also said he expected to send an ambassador back to Washington soon, after a dispute in September in which each country expelled the other's ambassador.

___

© 2009, Chicago Tribune.

Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/

Distributed by McClatchy-Tribune Information Services.

High school senior asks S.C. court to weigh in on stimulus funds

2009-04-17T12:17:00.000-04:00

From TheMatadorOnline.com newsroom:

By John O'Connor

McClatchy Newspapers

(MCT)

COLUMBIA, S.C. _ A high school senior has filed a lawsuit asking the South Carolina Supreme Court to decide who _ Gov. Mark Sanford or the Legislature _ controls $700 million in disputed federal stimulus money.

In an indication it could act swiftly, the court ordered South Carolina Attorney General Henry McMaster to respond to the lawsuit by Monday.

Casey Edwards, the 18-year-old who filed the lawsuit Thursday, said South Carolina students and schools are suffering from budget cuts and would benefit from the money.

In a statement, Sanford _ who has gained national attention for his anti-stimulus position amid speculation he might run for president in 2012 _ called the challenge a "politically driven press spectacle ... rather than a suit with any actual merit."

For weeks, Sanford and lawmakers have been at odds over whether to include $350 million in federal money in the state's budget for the year that starts July 1. More than 80 percent of that money must be spent on K-12 and colleges, according to federal rules.

An additional $350 million can be spent the following year.

Sanford must apply for the money before it can be sent to South Carolina. The Republican governor has said he will not ask for it unless lawmakers agree to pay off an equal amount of state debt.

A clause in the bill _ inserted by U.S. House Majority Whip Jim Clyburn, D-S.C. _ was intended to allow lawmakers to accept the money if Sanford refused it, but legal questions have cut off that avenue.

"I've had a great experience in my Chapin schools," said Edwards, who said she sold Chick-Fil-A chicken sandwiches to raise money for a Dillon County school last year after seeing a documentary on the poor conditions at schools along the Interstate 95 corridor. "Every student should have that same quality of education."

The lawsuit is the first effort to force a resolution to the stimulus impasse. However, lawmakers also may include the money in the state budget or pass a bill ordering Sanford to accept it.

Dwight Drake, one of Edwards' two Columbia attorneys, said the intent of the federal legislation was clear: to allow lawmakers to accept the money if a governor refused. He added the state's high court could settle the issue within 30 days.

"There is a substantial, but simple, legal question here," said Drake. "The Supreme Court is the quickest and most certain route to get the question decided."

McMaster, who will represent the state in the suit, said he was pleased the Supreme Court indicated it would decide quickly whether to accept the case.

In a statement, the Republican attorney general called the lawsuit "premature," adding it "may be perceived as partisan and politically motivated _ because the governor and Legislature still have time to resolve the issue prior to the end of the legislative session."

(EDITORS: STORY CAN END HERE)

However, Drake said a suit was inevitable, whether before or after the state budget was completed.

Lawmakers, who say they want to use the money to stave off job and service cuts, were hopeful the court quickly would end questions about whether the money can be used in the state's budget for its next fiscal year.

"I would hope that the court ... would address this as quickly as they can," said Republican state Sen. Hugh Leatherman.

Sanford criticized the lawsuit as filed by two Columbia political insiders _ Drake and former South Carolina Democratic Party chairman Dick Harpootlian _ and added the White House and McMaster previously have said federal law gives him control over the money.

Referring to an anti-tax rally he addressed Wednesday, Sanford said, "Thousands of taxpayers in our state stood up yesterday and said they're tired of government spending beyond its means, that they're tired of these so-called 'stimulus' efforts out of Washington, D.C., and that they're tired of Columbia insiders like these driving decisions in the State House."

Edwards acknowledged she was stepping into a political fray.

"It's a little intimidating, but I feel it's a very important issue."

(EDITORS: STORY CAN END HERE)

She said she became interested in the issue after joining Columbia public relations executive Bud Ferrillo's campaign to improve South Carolina education. She added that her school district _ Lexington-Richland District 5 _ already is laying off teachers, including one who tutored her after school to improve her math scores.

Edwards said she talked about the lawsuit with her family, who supported her decision.

David Edwards described his daughter as politically conservative, adding he trusts her judgment.

"She's a leader. She's an independent person. I didn't want her to be a pawn. She's never led us wrong before."
___
(Staff writer Gina Smith contributed to this story.)
___
© 2009, The State (Columbia, S.C.).
Visit the State at http://www.thestate.com/
Distributed by McClatchy-Tribune Information Services.

Former Ill. Gov. Blagojevich, brother, top fundraiser indicted

2009-04-03T12:16:00.000-04:00

From TheMatadorOnline.com Newsroom:

By Rick Pearson and Jeff Coen

Chicago Tribune

(MCT)

CHICAGO _ Federal prosecutors expanded their case against former Illinois Gov. Rod Blagojevich Thursday in an indictment that drew more of his closest aides into the scandal and adds new schemes to the list of charges against him: Pocketing money funneled through his wife through a phony real estate job. Shaking down a powerful congressman. Running the state as a racket.

Coming nearly four months after federal agents roused a sitting governor out of his home in a pre-dawn arrest _ and weeks after lawmakers dumped him from power _ Thursday's indictment of Blagojevich, his brother and four former top insiders could have been anti-climactic.

Instead, prosecutors added a few more chapters to the Blagojevich saga, further pulling in his family into the pay-to-play conspiracy, revealing yet more confidants had turned on him and suggesting he was intent on corruption before he was even sworn in. The indictment carries a potentially lengthy prison sentence and possible forfeiture of his family home should Blagojevich be convicted.

After turning Illinois politics into an amusement-park ride, most notably for allegedly trying to sell President Barack Obama's Senate seat, Blagojevich spent the day of his indictment with his family at Walt Disney World in Florida.

The indictment alleged that Blagojevich and his most trusted confidants conspired to enrich themselves before his election as governor in November 2002, even striking a deal to divide the spoils after he left the state's highest office.

Blagojevich was indicted on 16 racketeering, fraud and extortion counts. Among the new, damaging allegations were that Blagojevich delayed a $2 million grant to a public charter school while trying to extort campaign cash from now-White House Chief of Staff Rahm Emanuel and threatened to withhold future state business from financial institutions that refused to hire his wife.

Blagojevich's effort to profit, both personally and for his Friends of Blagojevich campaign fund, was so pervasive that federal prosecutors labeled the racketeering scheme "The Blagojevich Enterprise."

"The primary purpose of the Blagojevich Enterprise was to exercise and preserve power over the government of the State of Illinois for the financial and political benefit of Rod Blagojevich, both directly and through Friends of Blagojevich, and for the financial benefit of his family members and associates," the indictment alleged.

Also indicted were Blagojevich's close friend and fundraiser, Christopher Kelly, and two former chiefs of staff _ Alonzo "Lon" Monk, a long-time friend who also managed Blagojevich's campaigns for governor and later became a well-healed lobbyist, and John Harris, who succeeded Monk as chief of staff. Blagojevich's brother, Robert, who headed his campaign fund, also was charged, as was Illinois Republican powerbroker William Cellini.

Blagojevich's wife, Patricia, was not indicted but was essentially described as a co-conspirator amid efforts to enrich herself and the Blagojevich family.

Prosecutors said Harris had agreed to cooperate, and details contained in the indictment indicated that Antoin "Tony" Rezko, once a major fundraiser and adviser to Blagojevich who was convicted in June on corruption charges, also was helping to build the case against the former governor. And in a new twist, sources also said Monk had negotiated to work with federal prosecutors.

In a statement released by the public relations firm representing him, Blagojevich said he was "innocent."

Orlando's WESH-TV posted on its Web site a video of the former governor in sunglasses and shorts sitting beside a pool. As his wife tried to block the camera's view, Blagojevich declined to discuss the charges and said he would talk "at the appropriate time."

(EDITORS: STORY CAN END HERE)

It was clear from the indictment that new cooperation from former close associates, such as Rezko, was providing prosecutors with valuable information.

The indictment alleged that Rezko played an integral role in boosting the Blagojevich family's finances, steering little- or no-work real estate commissions to Patricia Blagojevich's real estate firm and later hiring her for his own real estate business at $12,000 a month. Rezko also allegedly gave Monk as much as $90,000 to help pay for a car and home improvements.

Among the earliest and biggest plots in the "Blagojevich Enterprise" was a scheme to direct the sale of billions of dollars in bonds to refinance the state's pension debt to a company whose lobbyist secretly agreed to kick back hundreds of thousands of dollars to Rezko. Sources with knowledge of the situation identified that company as Bear Stearns and the lobbyist as Robert Kjellander.

The indictment also alleged that even though it was public knowledge in 2006 that Rezko and Kelly were under federal investigation, Blagojevich continued his effort to benefit from his post. One notable example involved Emanuel, then a congressman, who was supporting a $2 million grant for Chicago Academy, but Blagojevich allegedly delayed it in an effort to force Emanuel and one of the congressman's brothers to hold a fundraiser for him.

The indictment largely restated the criminal charges leveled against Blagojevich in the December complaint. It contended he sought to profit from the sale of his appointment of a U.S. Senate successor to Obama in forms ranging from an ambassadorship or Cabinet post to a job for his wife.

The indictment also restated that Blagojevich allegedly tried to seek the firing of Chicago Tribune editorial writers who were critical of him in exchange for granting state help in the sale of Wrigley Field. The indictment indicates Blagojevich directed Harris to go to Tribune Co. leaders with the proposal, but did not allege that Harris followed through with the governor's request.

Prosecutors are seeking the forfeiture of more than $188,000 from Blagojevich, and threatened to go after his property _ including his Ravenswood Manor home and an apartment in Washington D.C.

___

© 2009, Chicago Tribune.

Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/

Distributed by McClatchy-Tribune Information Services.

S.C. governor gives in on stimulus, will apply for state's funds

2009-04-03T12:11:00.001-04:00

From TheMatadorOnline.com Newsroom:

By James Rosen

McClatchy Newspapers

(MCT)

WASHINGTON _ South Carolina Gov. Mark Sanford will comply with a midnight Friday stimulus deadline and become the last governor in the nation to seek millions of dollars in federal economic-recovery funds for his state, aides said late Thursday.

Sanford will continue contesting $700 million in education and law enforcement money for South Carolina, but his 11th-hour move to meet the deadline buys time for schools fearing mass teacher layoffs and draconian cuts.

Sanford's month-long fight over stimulus money placed South Carolina in the national spotlight and put him at loggerheads with President Barack Obama.

"Tomorrow the governor is going to send the (Section) 1607 certification for everything except the stabilization funds," Sanford's spokesman, Joel Sawyer, said Thursday evening. "The governor will apply for that (additional) money if the General Assembly is willing to compromise and pay down some debt with it."

Obama has twice rejected Sanford's written requests to use $700 million in State Fiscal Stabilization Fund money to pay off state government debt instead of its stated use to help school districts retain teachers and modernize old schools or build new ones.

White House officials confirmed for the first time Thursday that a 45-day deadline in the $787 billion stimulus bill, which Obama signed into law on Feb. 17, applies only to governors' initial requests for the money _ and not to states' formal application for it.

State leaders in Columbia, S.C., and Washington had thought that midnight Friday was the deadline for actually claiming the $700 million in disputed funds.

Obama aides cheered Sanford's decision to protect most of $8 billion in stimulus funds slated for South Carolina.

"We are pleased with reports that Governor Sanford will join the other 49 governors _ Democrats and Republicans _ in filing a certification to accept Recovery Act money," said Kenneth Baer, a spokesman for White House Budget Director Peter Orszag.

"The Recovery Act will create or save 3.5 million jobs (nationwide), and we do not want to see the citizens of any state denied the help that it can provide," Baer said.

Obama has claimed that the stimulus package will create or preserve 50,000 jobs in South Carolina, whose 11.4 percent unemployment rate is the nation's second-highest after Michigan's.

Sanford will likely continue to tussle with state general assembly leaders from his own Republican Party over his insistence that at least some of the disputed $700 million pay off debt, despite $1.1 billion in state budget cuts already imposed this year because of revenue shortfalls.

(EDITORS: STORY CAN END HERE)

Sanford's expected move is an implicit acknowledgement that for weeks he'd erroneously claimed control over only the $700 million in education funds, not over the entire $8 billion package.

In fact, Sanford's failure to request the stimulus funds by midnight Friday would have imperiled all $8 billion reserved for his state.

The stimulus package, an ambitious bid by Obama to jolt the economy, provides $8 billion to South Carolina for Medicaid payments, road and bridge repairs and construction, unemployment benefits, police officers, tax cuts and a host of other needs.

In a day filled with brinksmanship, House Majority Whip Jim Clyburn, D-S.C., warned that Sanford was jeopardizing South Carolina's share of the funds.

"Does Governor Sanford intend to meet the minimal prerequisite certification requirement in order to reserve the right for the state to seek funds in the future?" a Clyburn written statement asked. "Or will he put all economic stimulus funding in jeopardy?"

In a letter to Republican Sen. Lindsey Graham on Wednesday, Orszag said that state legislatures lack the authority under the stimulus law to apply for State Fiscal Stabilization Fund money.

Clyburn had crafted a provision in the law that was intended to give legislatures such power and to bypass governors who oppose using federal deficit spending to revive the economy.

Orszag's letter suggests that the Obama administration wouldn't recognize or act on a state resolution applying for the disputed $700 million.

That fact keeps the onus on Sanford to apply for the money, though he now has 75 days _ 120 days from the stimulus law's enactment _ to do so.

Even if Sanford and the legislative leaders can reach a compromise, it's uncertain how any of the $700 million could be used to pay down state debt after Orszag's explicit instruction, in two letters to him, that the law doesn't permit such use.

Education Secretary Arne Duncan said the Obama administration is working with Clyburn to craft new legislation in Congress that would provide the $700 million to South Carolina should Sanford fail to apply for it in time.

___

(John O'Connor of The State in Columbia, S.C., contributed to this article.)

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Fate of health care overhaul could hinge on procedural gamble

2009-04-03T12:10:00.001-04:00

From TheMatadorOnline.com Newsroom:

By David Lightman

McClatchy Newspapers

(MCT)

WASHINGTON _ The best hope for overhauling the nation's health care system later this year may depend on a procedural change slipped into the House of Representatives' budget bill.

The provision would allow the Senate to approve health care legislation with a simple majority vote, a change that would block opponents from debating the issue to death.

Usually, 60 votes are needed to limit debate under Senate rules. Since Democrats control only 58 Senate seats, Republican opposition could block a health care overhaul. The House bill's terms, however, would permit Senate passage with a 51-vote threshold.

The House version of the budget, which passed Thursday evening on a vote of 233 to 196, would allow the Senate procedural change by authorizing what's known as "the reconciliation process." It would permit that process for legislation on health care, education and tax policy.

Reconciliation was first used in 1980. It's been a common feature of budget resolutions. It was used for President Bill Clinton's welfare changes in 1996, and for President George W. Bush's 2001 and 2003 tax cuts. It's controversial, however, and legislative minorities hate being gagged by it.

The Senate budget doesn't include the "reconciliation" option, but congressional negotiators will resolve differences between the two budget bills later this month, and they could insert the House language into the final bill, facilitating the Senate process change. The Obama administration has said it's weighing whether to support doing it.

The reconciliation process is being considered because Democrats see a rare opportunity to enact a goal that the party's had since Harry Truman was president 60 years ago. Not only is Barack Obama, a popular president, putting his weight behind overhauling health care, he's backed by strong Democratic majorities in both houses of Congress.

Democrats have a 76-seat majority in the House, where Speaker Nancy Pelosi, D-Calif., wants to move quickly.

"The American people want us to find our common ground where we can," she said, "but they did not send us here to split the difference."

A holdup could still come in the Senate. Majority Leader Harry Reid, D-Nev., has been circumspect about whether he'd permit the reconciliation process to ram health care legislation through his chamber, not ruling it in or out.

Republicans are angry about the prospect.

"It'll be like a declaration of war," said Sen. Michael Enzi of Wyoming, the top Republican on the Senate Health, Education, Labor and Pensions Committee.

Even some Democrats are wary.

"I don't think things should be done this way," Louisiana Sen. Mary Landrieu said of the reconciliation process. "If we're changing the whole system of health care, it needs to be done carefully, with hearings and thorough discussions."

Such uneasiness was apparent Wednesday, when 26 Senate Democrats joined 41 Republicans to pass a measure forbidding reconciliation from being used to pass legislation controlling carbon emissions.

(EDITORS: BEGIN OPTIONAL TRIM)

Sen. Barbara Boxer, D-Calif., the chairman of the Senate Environment and Public Works Committee, had pleaded with colleagues to allow the simple-majority option for that legislation too, saying, "It is the way to govern with a majority."

Others, however, wanted to ensure a full airing of all issues surrounding efforts to control emissions, and feared that could be difficult if debate were too limited. "The question is whether technology is sufficient to really control emissions at the level you want," said Sen. Ben Nelson, D-Neb.

(END OPTIONAL TRIM)

While reconciliation has been used before to muscle controversial measures through the Senate, the tactic could present another risk for Democratic lawmakers this year, because Obama has emphasized the need to try to work with Republicans. This tactic "conflicts with the new bipartisan spirit President Obama promised," Enzi said.

Not so, Democratic leaders countered. Reconciliation is an option that doesn't have to be used _ if a bipartisan consensus can be reached this summer or fall. Then a bill could move forward under standard Senate rules.

"It's a fallback position," said House Majority Leader Steny Hoyer, D-Md., "We want to work together."

(EDITORS: STORY CAN END HERE)

___

ON THE WEB

Congressional Research Service report on the reconciliation process: http://www.rules.house.gov/archives/98-814.pdf

House of Representatives 2010 budget fact sheet: http://tinyurl.com/d4ryum

President Obama's 2010 budget outline: http://tinyurl.com/bcbxk6

House of Representatives Republican 2010 budget: http://www.gop.gov/policy-news/09/04/01/fiscal-responsibility-republicans-on-the

Concord Coalition budget analysis: http://tinyurl.com/cwjb2e

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Senate makes sales tax deduction permanent

2009-04-03T12:08:00.000-04:00

From TheMatadorOnline.com Newsroom:

By Maria Recio

McClatchy Newspapers

(MCT)

WASHINGTON _ The Senate fulfilled a dream for taxpayers in several states without income taxes by making permanent the sales tax deductions on their federal income tax.

Senate Majority Leader Harry Reid, D-Nev., led the effort on the Senate floor with an amendment to the federal budget bill for fiscal 2010. The amendment, which passed by voice vote and still must be agreed to by the House, makes good on the reinstitution of the deduction for taxpayers who itemize by then-House Majority Leader Tom DeLay, R-Texas, in 2004. The deduction has been extended on a piecemeal basis ever since.

Florida, Nevada, Texas, Washington and Wyoming don't collect income taxes, and Alaska levies neither income nor sales taxes. In Tennessee, income taxes are limited to interest and dividend income.

The provision _ which allows taxpayers who itemize to deduct either their state income tax or their state and local sales tax expenses _ is currently scheduled to expire after the 2009 tax year. Reid's amendment would create a deficit-neutral reserve fund that would offset the cost to the U.S. Treasury by cutting other programs.

"Every little bit helps when people are trying to stay in their homes and put food on the table for their families," Reid said when he introduced the amendment. "This sales tax deduction is vital to many Nevadans, especially because they cannot deduct a state income tax on their federal return like residents of many other states."

(EDITORS: STORY CAN END HERE)

Reid worked with Sen. Kay Bailey Hutchison, R-Texas, who had an amendment as well. Hutchison's didn't include a reserve fund, but simply made permanent the state and local sales tax deduction.

"This is an important one because it is a matter of equity," Hutchison said as she withdrew her amendment in support of Reid's.

Rep. Kevin Brady, R-Texas, a member of the House Ways and Means Committee who's been a leader on the issue in the House with Rep. Brian Baird, D-Wash., said that the annual cost to the federal government from the deduction is about $3 billion a year.

The sales tax deduction was part of the federal tax system until the 1986 Tax Reform Act. As Reid said on the Senate floor, "It took us 22 years before fairness was restored and the deduction was reinstated in 2004."

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Justice Department moves to void Stevens' conviction

2009-04-01T16:35:00.001-04:00

From TheMatadorOnline.com Newsroom:

By Erika Bolstad

McClatchy Newspapers

(MCT)

WASHINGTON _ The Justice Department has moved to dismiss former Alaska Republican Sen. Ted Stevens' indictment, effectively voiding his conviction Oct. 27 on seven counts of filing false statements on his U.S. Senate financial-disclosure forms.

"After careful review, I have concluded that certain information should have been provided to the defense for use at trial," Attorney General Eric Holder said in a statement released Wednesday morning. "In light of this conclusion, and in consideration of the totality of the circumstances of this particular case, I have determined that it is in the interest of justice to dismiss the indictment and not proceed with a new trial."

The Justice Department filed its motion to dismiss the case Wednesday morning, saying in it that "given the facts of this particular case, the government believes that granting a new trial is in the interest of justice." However, "the government has further determined that, based on the totality of circumstances and in the interest of justice, it will not seek a new trial."

Within days of his conviction, Stevens, 85, lost his re-election bid to Anchorage's Democratic former mayor, Mark Begich.

Since Stevens was convicted, his lawyers have filed several motions to dismiss his original indictment or to grant him a new trial. Their motions have been based in part on allegations in a whistleblower complaint by an Anchorage FBI agent, along with other allegations of prosecutorial misconduct that were released after Stevens was convicted.

U.S. District Judge Emmet Sullivan, who oversaw the case, scheduled a hearing Tuesday on the motion to dismiss the indictment.

"I always knew that there would be a day when the cloud that surrounded me would be removed. That day has finally come," Stevens said in a statement released by his lawyers. "It is unfortunate that an election was affected by proceedings now recognized as unfair. It was my great honor to serve the state of Alaska in the United States Senate for 40 years."

Stevens' attorneys, Brendan Sullivan and Robert Cary, issued a statement praising the Justice Department's decision. Stevens was traveling in Alaska and unavailable for further comment.

"This jury verdict was obtained unlawfully. The government disregarded the Constitution, the Federal Rules of Criminal Procedure and well-established case law," his attorneys said, adding, "The misconduct of government prosecutors, and one or more FBI agents, was stunning. Not only did the government fail to disclose evidence of innocence, but instead intentionally hid that evidence and created false evidence that they provided to the defense."

Holder said that the Justice Department's Office of Professional Responsibility "will conduct a thorough review of the prosecution of this matter."

(EDITORS: STORY CAN END HERE)

The decision to dismiss the case, however, appears to be based on a matter that came up during the trial: a discrepancy in the courtroom statements of the star witness, Bill Allen, the former oil-services company chief executive officer who plied Stevens with gifts, including home renovations that doubled the size of the senator's residence in Alaska.

The Justice Department recently discovered notes from an interview that prosecutors conducted last April 15 with Allen, wrote Paul O'Brien, who's been handling post-conviction matters in the case since a judge cited some members of the original trial team with contempt for failing to turn over documents.

In the interview, Allen was asked about a 2002 note that Stevens sent him, thanking him for his work on "the chalet," Stevens' home in Alaska.

In the note, Stevens told Allen not to be "P.O.'d" but that Allen needed to have a conversation with one of Stevens' neighbors in Girdwood, Bob Persons, a close friend of both who helped oversee the renovation of the senator's home. It "has to be done right," Stevens wrote.

"You owe me a bill," Stevens' letter said. "Remember Torricelli, my friend. Friendship is one thing, compliance with the ethics rules entirely different."

Allen said on the stand that he was unaware at the time what Stevens meant by "Torricelli." Stevens apparently was referring to former Sen. Robert Torricelli, D-N.J., whom the Justice Department investigated in 2002 for allegedly accepting improper gifts from a donor. The investigation closed, but the Senate Ethics Committee reviewed the Justice Department files and issued a public letter of admonishment to Torricelli, who then abandoned a re-election bid and left the Senate.

Allen testified that he didn't send Stevens a bill after the note. Allen also said that he had a conversation with Persons. He testified that Persons told him, "Don't worry about getting a bill, Ted's just covering his ass."

O'Brien wrote that the interview notes indicate that Allen said he "did not recall talking to Bob Persons regarding giving a bill to the defendant."

"That statement was inconsistent with Allen's recollection at trial," O'Brien wrote, and when the Justice Department discovered the interview notes last week, the government provided a copy to defense counsel. That information could have been used when Stevens' lawyers cross-examined Allen, O'Brien noted, or in their closing statement.

(EDITORS: STORY CAN END HERE)

The Senate's Republican leader, Sen. Mitch McConnell of Kentucky, called the Justice Department's move "a relief to Stevens and his family."

He said, however, that had the Justice Department acted last year, before the election, Republicans might not have lost the seat. That would have given Democrats _ who have 58 Senate seats _ one fewer seat toward a 60-vote, filibuster-proof majority.

"It was disappointing to lose the seat, no question about it," McConnell said. "No question that if this decision had been made last year he'd still be in the Senate."

Republican Sen. Lisa Murkowski, who assumed Stevens' role as the senior senator from Alaska, said she was "deeply disturbed that the government can ruin a man's career and then say, 'Never mind.'

"There is nothing that will ever compensate for the loss of his reputation or leadership to the state of Alaska."

Stevens' replacement, Begich, said in a statement that "the decision by President Obama's Justice Department to end the prosecution of Senator Ted Stevens is reasonable."

"I always said I didn't think Senator Stevens should serve time in jail, and hopefully this decision ensures that is the case," Begich said. "It's time for Senator Stevens, his family and Alaskans to move on and put this behind us."

___

(Richard Mauer of the Anchorage Daily News in Anchorage, Alaska, and Halimah Abdullah contributed to this article.)

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Sebelius becomes latest Obama Cabinet pick with tax troubles

2009-04-01T08:21:00.000-04:00

By David Goldstein

McClatchy Newspapers

(MCT)

WASHINGTON _ Kansas Gov. Kathleen Sebelius on Tuesday joined a list of Cabinet nominees who were forced to pay back taxes because of errors in their returns.

In a letter to the Senate Finance Committee, Sebelius, President Barack Obama's nominee to head the Health and Human Services Department, said she repaid nearly $8,000, including interest, because of "unintentional errors."

Sebelius said the errors concerned charitable contributions, the sale of a home and business expenses.

The list of nominees with tax trouble includes Treasury Secretary Tim Geithner and former Sen. Tom Daschle, who was Obama's first choice for HHS and withdrew after disclosing that he paid $140,000 in back taxes and interest.

Neither Sebelius nor the White House issued a comment.

Sen. Max Baucus of Montana, the chairman of the Senate Finance Committee, which will vote Thursday on sending her nomination to the full Senate, quickly sent out a statement that indicated his support.

"Congress is going to need a strong partner at the Department of Health and Human Services to achieve comprehensive health reform this year and that partner is Governor Sebelius," Baucus said. "She is the right person for the job."

Apart from the errors that Sebelius cited, Baucus and Sen. Charles Grassley of Iowa, the finance panel's ranking Republican, told her in a letter that "No additional items were identified that needed to be addressed as a result of our review."

Sebelius said in her letter that she found out about the errors when she hired a certified public accountant to scrub her tax returns from 2005 to 2007 after Obama nominated her.

She then filed amended returns. Those were included in the nomination packet on Sebelius that the White House sent to the Finance Committee on March 17.

One of the errors resulted from not providing an acknowledgement letter from three out of the 49 charitable recipients to which she contributed money. The law requires the letter for any gift over $250.

Another involved an erroneous deduction for mortgage interest after she and her husband, Gary Sebelius, a federal magistrate judge, sold their home. The third involved business deductions.

The tax problems surfaced on a day when she appeared at her first hearing on Capitol Hill as a nominee. Her initial trial by fire was actually more of a warm embrace.

During more than two hours of largely friendly questioning, most members of the Senate Health, Education, Labor and Pensions Committee praised "her willingness" to take the job.

"I can't think of a tougher job to step into now," former Kansas Republican Sen. Bob Dole, who sat by Sebelius for nearly the entire hearing, told the panel.

The hearing gave Sebelius a roadmap to the concerns of the committee, which has jurisdiction over so much of what could be on her plate: AIDS, food safety, doctors who refuse to treat patients covered by Medicare, and more.

"We face a health system that burdens families, businesses and government budgets with skyrocketing costs," Sebelius said. "Action is not a choice. It is a necessity."

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Sen. Ted Stevens Case Update

2009-04-01T07:54:00.001-04:00

Bulletin: CNN: The Justice Department has dropped its case against former Alaska Sen. Ted Stevens, a source tells CNN.

Young Obama voters stay in the game by lobbying for policy changes

2009-03-31T14:53:00.000-04:00

From TheMatadorOnline.com newsroom:

By Laura Isensee
The Dallas Morning News

(MCT)

WASHINGTON _ Backpacks on the floor, dozens of Texas college students crowded into the atrium of a Senate office building and circled around an aide to Sen. John Cornyn.

The subject was legislation. But this was no school tour: These students came to Washington to lobby.

"Can we count on the senator to stand as a voice in Congress for capping carbon emissions?" asked Jacob Bintliff, a 21-year-old University of Texas at Austin senior who sported a khaki blazer, shiny tie and purple bandana around his head.

The Texas students joined some 10,000 other youth on Capitol Hill in March to push for climate action, in what organizers called the second-largest lobbying day in the nation's history. (The fact that a freak snowstorm hit the same day hardly fazed them.)

The event gives some clues how young voters who helped propel Barack Obama to the White House are trying to shift their influence from the campaign trail to the policy realm. It's a tough task _ shaping legislation is often a professional pursuit involving millions of dollars the college students don't have.

But they're trying to fill the gaps with the tools they do have: progressive issues that move young people; old-school techniques like Capitol Hill visits; civil disobedience when necessary; and a heavy dose of social networking tools such as Twitter.

Youth organizers believe their cohort earned a louder voice in Congress on Election Day last year. Youth mobilized in the campaign, with turnout slightly higher than four years before, and young voters made up a bigger share than usual in some key battleground states. And about two-thirds voted for Obama.

"This is the first time we can go to the political table and flex our muscle," said Praween Dayananda. He helped organized the 160-strong Texas contingent at the event and pointed out this year Cornyn's office was more receptive than last year.

Texas A&M senior Adrienne Jones, who used her own cell phone to make voter turnout calls for Obama last year, trekked to Washington.

"This is our movement. This is our time to make change in the world. I want to be a part of it," said Jones, a 23-year-old from Dallas.

Confidence is key for youth to engage in policy-making, said Peter Levine, who directs research at Tufts University's Jonathan Tisch College of Citizenship and Public Service. Young people have to believe they're able to make a difference.

Levine's extensive research on the "Millennial" generation finds that, compared to previous generations, twentysomethings are more liberal, trust Congress more and volunteer more.

But anyone _ young or old _ who wants to engage in policy-making faces serious challenges, said Levine and others who promote civic engagement.

First, there have to be opportunities to engage. Traditional methods _ like writing, emailing or calling your congressman _ can be superficial and easy to manufacture on a large scale.

"There are so many people doing it, that every single individual letter ends up counting very little," Levine said.

Then there are institutional barriers: pressure from interest groups, fundraising difficulties and partisanship, said Joe Goldman, vice president of citizen engagement at AmericaSpeaks. The nonprofit group was started by a former Clinton administration official who wanted to close the gap between citizens and government decision-making.

"People want to participate but they only want to do that if they're actually going to be heard," Goldman said. And youth, he contends, have often been forgotten in the process.

Adding to the challenge, young people have few political groups with the legal status to lobby, said Matt Segal, the young executive director of the Student Association for Voter Empowerment.

Plus, "money talks in this town," Segal said.

To help remedy that, Segal's group may merge with two or three other organizations, so they can have a nonprofit arm and a legislative advocacy arm.

"We're not organized, not powerful enough. We need to do more than just blogging and Facebook posts," Segal said.

For the Texas students who trooped to Washington, the lobby day was just a start. Next on the agenda: meetings with their representatives at home and a statewide energy conference in Austin this weekend.

They're already learning about ways to send their message. Before a final photo op with Cornyn's aide, the group had something for the senator: a plastic green hard-hat slapped with a sticker "Get to Work!"

___

If the "Millennial" generation is able to put its stamp on government policy, what might that look like?

First, don't expect a narrow agenda focused only on college students' issues, said Hans Riemer, who was key in organizing youth voters in the Obama campaign and now works with AARP in Washington.

"We don't want to ghettoize them," said Riemer, adding that young people would be involved in issues ranging from the environment to health care.

Also, watch for Millennials to develop new ways of influencing policy, said Ian Storrar, with Moblize.org, which works to get young people involved in policy at all levels of government.

Storrar, 27, predicts his generation will not follow the traditional, top-down approach to political organizing. Instead, individuals will be able to share ideas and organize action through social networking, rather than wait for direction from leaders of a group.

_Laura Isensee

___

© 2009, The Dallas Morning News.

Visit The Dallas Morning News on the World Wide Web at http://www.dallasnews.com/

Distributed by McClatchy-Tribune Information Services.

Blagojevich indictment could bring more defendants

2009-03-31T14:50:00.001-04:00

From TheMatadorOnline.com Newsroom:

By John Chase and Jeff Coen
Chicago Tribune

(MCT)

CHICAGO _ With a deadline fast approaching for federal prosecutors to file an indictment against former Gov. Rod Blagojevich, all eyes will be on the Dirksen U.S. Courthouse this week.

Sources with knowledge of the probe have said the indictment could be filed as soon as Thursday. That is the last scheduled day for the grand jury investigating the former governor to meet before an April 7 deadline for filing the indictment.

The grand jury has convened on Thursdays throughout the probe.

The indictment is expected to include more details about the allegations against Blagojevich and his former chief of staff John Harris regarding the corruption charges leveled against them in December. It also could include more defendants.

Known targets include Blagojevich's brother, Robert, who headed the former governor's campaign fund; Lon Monk, Blagojevich's onetime best friend and former chief of staff; Blagojevich's wife, Patricia; and Friends of Blagojevich, the ex-governor's campaign committee.

Robert Blagojevich was caught on several federal wiretaps, including discussing campaign donations from a horse track owner who wanted the governor to sign legislation favorable to the horse-racing industry. Monk, who was identified only as "Lobbyist 1" in the original charges, was also caught on the recordings. And investigators have probed Patricia Blagojevich's real estate deals for more than a year.

FBI agents arrested Blagojevich on Dec. 9 on various corruption charges, including trying to sell the U.S. Senate seat vacated by President Barack Obama. U.S. Atty. Patrick Fitzgerald said investigators moved quickly to stop a crime spree.

But in doing so, prosecutors had to charge Blagojevich and Harris in a criminal complaint, not an indictment. An indictment is necessary because defendants cannot be tried on criminal complaints, which are used only to initiate criminal cases.

___

© 2009, Chicago Tribune.

Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/

Distributed by McClatchy-Tribune Information Services.

Obama reaches out to Iran

2009-03-30T08:01:00.001-04:00

By Trudy Rubin

The Philadelphia Inquirer

(MCT)

If you want to know how President Obama is changing America's foreign-policy strategy, watch the short video in which he wishes Iran's people and leaders a happy Nowruz.

Nowruz is the Persian new year, an ancient holiday celebrated on the first day of spring. The president's greeting (www.whitehouse.gov/nowruz), broadcast last Friday, shows how he intends to fulfill his pledge to reach out to Iran.

Obama's Nowruz message was striking for what it included _ and what it omitted. His words were sharply different in tone from messages sent by President George W. Bush, who considered Iran's regime part of the "axis of evil." Unlike Bush, Obama addressed Iran's leaders as well as the Iranian people, making it clear that he is not seeking regime change.

The president said clearly that "the United States wants the Islamic Republic of Iran to take its rightful place in the community of nations." But he added that such a place "cannot be reached through terror or arms."

At the same time, by sending his message on a traditional holiday not linked to religion, Obama showed his respect for the Persian nation. He praised Iran's "great civilization." And, to counter those who say past differences between our two countries can't be overcome, he quoted the words of the Persian medieval poet Saadi: "The children of Adam are limbs to each other, having been created of one essence."

Iran expert Karim Sadjadpour, of the Carnegie Endowment for International Peace, was visiting Dubai when Obama delivered his message. He said the large Iranian community there had an "overwhelmingly positive" reaction to Obama's recognition of Iran's new year and its rich culture.

Perhaps most important, Obama never mentioned Iran's President Mahmoud Ahmadinejad, whose call for Israel to be "wiped off the map" has convinced many Americans of the impossibility of dialogue with Tehran. Some Iran experts have criticized Obama for not responding to a letter the Iranian president sent him after he won election. However, Obama's new-year message was a better idea than a quick response to the mercurial Ahmadinejad.

That's because Obama's message was directed at Iran's leaders _ plural. He made clear that he recognizes that Ahmadinejad is not the key figure in Iran's power structure; the supreme clerical leader, Ayatollah Ali Khamenei, holds that position. Some reports indicate Obama may follow up with a private message directly to the supreme leader.

Press reports noted Khamenei's cool reaction to the extended hand of Obama. The cleric insisted the United States would have to make "real changes" in foreign policy before relations could improve.

Many experts argue that Khamenei considers anti-Americanism to be an immutable tenet of the regime's ideology. Obama's new-year message, and his new policy, will put that thesis to the test.

Sadjadpour contends that the Nowruz video will provoke an internal Iranian political debate over whether Iran should take up Obama's offer of honest engagement "grounded in mutual respect." With Iranian elections coming up in June, the new U.S. approach will put the burden on hard-liners to justify continued enmity toward America at a time when Iran's economy is in deep trouble.

"We may see Obama's approach accentuate deep internal Iranian divisions," Sadjadpour said, "between those who want to continue hostility for domestic reasons and those who recognize that the 'death to America' culture of 1979 is unproductive in 2009." He thinks Obama's offer will likely increase public pressure for Iran's leaders to come down on the 2009 end of that debate.

Of course, there's no guarantee Khamenei will be responsive. It won't be easy to improve the United States' toxic relationship with Iran's Islamic republic or agree on a formula to deal with Tehran's suspect nuclear program. It's not clear whether Iran will even be willing to cooperate with Obama on areas of mutual security interest, such as stability in Iraq and Afghanistan.

And spoilers within Iran's government will try to impede warmer relations by continuing to arrest Iranian-Americans. The latest victim is 31-year-old Roxana Saberi, a freelance journalist from North Dakota who was working in Tehran before being thrown in Evin prison nearly two months ago. Her father says she is depressed and suicidal.

Yet Obama is right to throw down a challenge to Iranian leaders and test the possibility of better relations. If they choose not to respond, the onus will be on them.

___

ABOUT THE WRITER

Trudy Rubin is a columnist and editorial-board member for the Philadelphia Inquirer. Readers may write to her at: Philadelphia Inquirer, P.O. Box 8263, Philadelphia, Pa. 19101, or by e-mail at trubin@phillynews.com.

___

© 2009, The Philadelphia Inquirer.

Visit Philadelphia Online, the Inquirer's World Wide Web site, at http://www.philly.com

Distributed by McClatchy-Tribune Information Services.

Expanding federal control of health care will only raise costs and reduce quality

2009-03-30T07:59:00.000-04:00

From TheMatadorOnline.com newsroom:

(EDITORS: The writer is addressing the question, Is President's Barack Obama's proposed $634 billion down payment on health care reform too costly in the midst of a recession?)

By Grace-Marie Turner
(MCT)

ALEXANDRIA, Va. _ President Obama says we can't afford not to pass health care reform, even as our economy faces its biggest challenges in decades.

So far this year, his stimulus legislation has pumped an additional $150 billion into our $2.4 trillion health sector, with no efforts at reform. And the health care plans he is proposing would add trillions more.

Mr. Obama argues that American companies are at a competitive disadvantage because of high health costs that add, for example, $1,500 to the price of a car. But health costs wouldn't vanish under his plan; they would just get switched to another ledger through higher taxes.

The president is working with congressional leaders to write legislation that would require companies to provide a rich health benefits package _ one more expensive than most can afford today. Companies that don't comply would pay heavy fines. This is hardly a prescription for reducing costs.

The plan involves major new subsidies, creation of a new government health insurance plan, and possibly a requirement that all Americans must buy insurance. The entire plan is expected to cost at least $1.5 trillion over the next decade. This is far too much to be taking on in this economy.

To pay for this and many other changes to our health sector, the White House has set aside $634 billion as a "down payment" on health reform. But even this is difficult for Congress to swallow because it involves increasing taxes on mortgage interest deductions and charitable contributions for affluent taxpayers and cutting Medicare Advantage programs that serve lower-income seniors. These are bad ideas, especially in a fragile economy.

Pumping more money into the health sector and increasing demand will add to the inflationary pressuring, which will in turn exacerbate the cost problem.

The president argues there will be huge savings from the plan's multibillion dollar investments in information technology, wellness and prevention.

He says the average family would save up to $2,500 a year as a result. But analysts say it will be hard to see any savings from these programs for the next decade, if then. And even if the savings materialized, Mr. Obama's own advisers have acknowledged they would not actually accrue to individual consumers but to the system as a whole. So don't hold your breath waiting.

They also argue that we must get everyone covered to lower health costs. Massachusetts actually provides us with evidence: The state was the first to require all residents to have health insurance, but the subsidies enacted as part of its reform plan are forcing lawmakers to impose new fees, taxes and fines on employers and providers, and the program still is in the red, even with huge subsidies from the federal government through additional Medicaid funds.

The United States already is on red-ink alert with huge federal deficits as far as the eye can see and with existing entitlement programs that are threatening our country's long-term economic survival.

So where does that leave us? It means that we need to focus on providing targeted help to the uninsured to purchase private coverage, giving people more options in buying health insurance, and building a stronger safety net for those with pre-existing conditions.

That's a full plate in itself, but one more likely to achieve results.

We can build on the strengths of our system, but it won't happen if we try to reform one-sixth of our economy in one sweeping bill.

___

ABOUT THE WRITER

Grace-Marie Turner is a health policy expert who advised John McCain's presidential campaign. She is president and founder of the Galen Institute, a nonprofit research organization devoted exclusively to health policy. Readers may write her at Galen, 128 S. Royal Street, Alexandria, VA 22314.

This essay is available to McClatchy-Tribune News Service subscribers. McClatchy-Tribune did not subsidize the writing of this column; the opinions are those of the writer and do not necessarily represent the views of McClatchy-Tribune or its editors.

___

© 2009, Galen Institute

Distributed by McClatchy-Tribune Information Services.

When are liberals not liberals? When they're progressives

2009-03-26T17:50:00.000-04:00

From TheMatadorOnline.com newsroom:

By Frank Greve

McClatchy Newspapers

(MCT)

WASHINGTON _ About as many left-of-center political groups in the nation's capital call themselves liberals these days as say they're Whigs. Instead, they call themselves "progressives."

What progressive means is "pretty murky," political historian Alan Brinkley said. Still, murky is a big improvement over "liberal," a mainstream term in the '60s that conservatives reduced to a dirty word in the '80s.

Pollsters say that the shift to "progressive" sheds the onus of the liberal label and enables left-of-center groups and candidates to fight again.

Although the term "progressive" has a distinguished early 20th-century history that includes reformers Theodore Roosevelt and Woodrow Wilson, uncertainty about what it means today works in favor of erstwhile liberals.

Mary Helms, for example, whose family raises peanuts and cotton in Dothan, Ala., said that she knew what a liberal was. "Someone who doesn't have very good morals," said Helms, who's 54.

And a progressive? "I don't really know anyone who says he's a progressive," Helms said. So she has nothing against them.

Among Washington L-groups that eschew the L-word in favor of "progressive" are:

_People For the American Way, among whose stated missions is to "promote progressive policies" and "elect progressive candidates."

_America Votes, a powerful voter-recruitment coalition that seeks to "increase progressive voter registration and turnout."

_EMILY's List, "dedicated to building a progressive America" by raising money for left-of-center candidates.

_MoveOn.org, a promoter of liberal causes whose constituent groups "work together to realize the progressive promise of our country."

_President Barack Obama's favorite policy institute, the Center for American Progress, may be the most progressive of all. It uses the term 12 times in its online mission statement.

Talk-show host Rush Limbaugh is on to the switch. To spread the old tar, he often refers now to "liberal progressives." So is Michael Savage, another leading conservative radio voice. Both liberals and progressives, he says, are "degenerates ... on an express train to hell."

(EDITORS: BEGIN OPTIONAL TRIM)

Founder John Podesta, former chief of staff to President Bill Clinton, spelled out what he meant by progressive in a 2008 election season book, "The Power of Progress."

Liberals tend to care more about individual freedom, Podesta wrote, while progressives care more about the public good. Their number includes Republicans, he adds, citing historic reformers such as Roosevelt and Robert LaFollette. That liberals in their day also included Republicans goes unmentioned, as Podesta is at great pains to make the small point that liberal and progressive are "not exactly the same."

Still, Podesta wrote that when he's asked the difference between liberals and progressives, he responds, "Call me whatever you want."

(END OPTIONAL TRIM)

Democratic presidential contenders were fey about the L-word, too, in the last campaign. "I prefer the word progressive," Hillary Clinton said in a July 2007 debate.

"We're all progressives," John Edwards chimed in.

The political gain from shifting to "progressive" is massive, according to a post-debate analysis by the public opinion research firm Rasmussen Reports.

Only 20 percent of respondents considered calling a candidate a liberal to be a positive description, it found. However, 35 percent considered it positive to call a candidate a progressive.

Equally telling, 39 percent considered "liberal" a negative, while only 18 percent saw "progressive" as negative.

Ralph Nader, an anti-corporate progressive of the old school, isn't suffering one-time liberals who'd rather switch than fight. So many are "deserting the liberal ship and swimming over to the progressive ship," he said, that "you have people calling themselves progressives that make me laugh."

(EDITORS: STORY CAN END HERE)

One of the few groups still aboard the liberal ship is Americans for Democratic Action, which describes itself as "committed to liberal politics, liberal policies and a liberal future."

Amy Isaacs, the national director of Americans for Democratic Action, dismisses progressives as "liberals who don't have the courage of their own convictions."

She and others blame Democratic presidential candidate Michael Dukakis _ a former member of Americans for Democratic Action's Swarthmore College chapter _ for failing to stand up for liberalism in his 1988 campaign. Although Reagan spoke out against the "L-word" at the Republican convention that year, and George H.W. Bush baited Dukakis with it, the former Massachusetts governor ignored the jibes until his campaign's last days.

"I made the biggest mistake of my life when I decided not to respond to that attack campaign," said Dukakis, who now teaches at the University of California, Los Angeles.

"But if 'progressive' sounds better and reflects better what we're talking about," he added, "I'm all for using 'progressive.' "

___

THE ORIGINS OF 'PROGRESSIVE'

The original Progressive era, from the 1890s to the 1920s, produced many important social changes, including women's suffrage, child labor limits, workers' compensation, open government laws, a minimum wage, the progressive income tax and open primary elections.

Faith in government intervention to achieve fairness was a hallmark of Progressive thinking, as was faith in science to improve humankind. Corporate power was the archfoe. Among Progressive leaders were Republicans Theodore Roosevelt and Wisconsin's Robert LaFollette, a governor and senator who ran for president as a Progressive in 1924.

Woodrow Wilson, W.E.B. Du Bois, Ida Tarbell and Thorstein Veblen also were Progressives. Franklin D. and Eleanor Roosevelt and Walter Lippmann helped carry Progressive politics into the '40s and beyond.

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Law enforcement overwhelmed on Inauguration Day, panel told

2009-03-25T22:21:00.001-04:00

By Barbara Barrett

McClatchy Newspapers

(MCT)

WASHINGTON _ Members of Congress scolded federal law enforcement officials Wednesday over why thousands of their constituents didn't get to see Barack Obama sworn in as president in January despite holding coveted tickets to the ceremony.

A classified congressional report, part of which was released this week, found that visitors overwhelmed an understaffed cadre of law enforcement officers on Inauguration Day. Crowds knocked down barriers, crowded security zones and forced many ticket-holding spectators away from their coveted viewing areas nearest the Capitol.

"These were constituents from each of our districts, who traveled often at great expense and personal sacrifice to witness this historic day," said Rep. David Price, D-N.C., who led the hearing along with Rep. Debbie Wasserman Schultz, D-Fla.

Price and Wasserman Schultz are the chiefs of the Homeland Security and Legislative Branch subcommittees, respectively, of the House Appropriations Committee.

Among the problems, according to Wednesday's testimony: Spectators arrived before law enforcement officers. Signage was poor, and visitors without tickets mingled among those carrying tickets, breaking down any hope of orderly queues. Security maps conflicted.

Police tried to funnel 100,000 carriers of silver tickets through a single checkpoint and had turned down offers of help from the District of Columbia Army National Guard.

Also, just more than 300 police officers were dispatched to manage a crowd of 250,000.

Thousands were caught underground for hours in the so-called "Purple Tunnel of Doom" as emergency vehicles whizzed by and police officers did nothing to disperse the crowd.

The congressional report on the inaugural crowds found that the U.S. Secret Service and the U.S. Capitol Police didn't have enough support to handle the crush of people.

(EDITORS: BEGIN OPTIONAL TRIM)

"It was just horrible," said Kay Singer of Hillsborough, N.C., whose blue ticket line moved just 25 feet in three hours in subfreezing weather. As the noon swearing-in time grew nearer, she abandoned the line and went to a friend's apartment to watch on television. Next time, she said, she'll just go to the National Mall without a ticket.

The chaos marred an otherwise calm day in which jubilant Obama supporters cheered for the new president and sang in the streets afterward. Police agencies reported no arrests among the estimated crowd of 1.8 million people.

Thousands of people who had traveled from across the country with tickets from their members of Congress couldn't get close enough to see the swearing-in, however.

"What was supposed to be a positive experience for my constituents turned into an embittering one," said Rep. David Obey, D-Wis., the chairman of the Appropriations Committee.

"I want to go back to the Purple of Tunnel of Doom," Wasserman Schultz said.

Police officers knew about the crowds in the tunnel, which was supposed to be off-limits to pedestrians, but they did nothing because the group stood peacefully.

Wasserman Schultz wondered what would prevent such problems in four years.

"Do you know what will happen so we don't have 'Son of Purple Tunnel of Doom' in 2013?" she asked.

Rep. Harold Rogers of Kentucky, the top Republican on the Homeland Security Subcommittee, said that most of the decisions about signs, tickets and other plans were made by the Joint Congressional Committee on Inaugural Ceremonies. That committee is run by Democratic Sen. Dianne Feinstein of California, who wasn't at the hearing.

"I don't know what we're doing here," Rogers said.

Rep. Jose Serrano, D-N.Y., said it was important to understand what happened because the event not only was massive but also was infused with a historic significance that was tarnished for many visitors.

"I had people coming from my district in the Bronx who were over 90 years old," Serrano said. "This was going to be emotional. This was going to be important. And that's why there's so much concern about it."

(END OPTIONAL TRIM)

U.S. Capitol Police Chief Phillip Morse testified that police were overwhelmed by what he called a "cascading" effect of ticketed and nonticketed visitors scrambling to find space after access to the National Mall closed earlier than expected.

Secret Service Director Mark Sullivan said that in four years, law enforcement would open screening sites earlier in the morning, add better signage, enlarge the security perimeter and monitor the crowds through online social networking sites such as Twitter and Facebook.

"We were caught short," Sullivan said.

Only the eight-page executive summary of the congressional report was released to the public this week, as most of it is considered a law enforcement secret. Sullivan pledged Wednesday to review the report again and make as much of it public as possible.

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Shriver, Gingrich push for Alzheimer's ‘Manhattan Project'

2009-03-25T22:20:00.001-04:00

From TheMatadorOnline.com newsroom:

By Lesley Clark

McClatchy Newspapers

(MCT)

WASHINGTON _ Sargent Shriver once walked the halls of Congress pressing senators and members of the House of Representatives for more money for the Peace Corps, Head Start and Job Corps, his daughter, Maria Shriver, testified Wednesday.

"He knew every senator and every congressman by name. He knew their careers, their interests, their politics and, of course, their soft spots," California's first lady said. Now, at 93, the one-time adviser to two presidents doesn't remember his daughter, thanks to the ravages of Alzheimer's, the disease that's left him entirely dependent on others.

It was for her dad and millions like him that Shriver testified Wednesday, pushing for increased attention to Alzheimer's in the wake of a new report that suggests the disease "could very easily surpass even the current economic crisis in the damage it inflicts on individuals and our economy."

The report by the Alzheimer's Study Group projects that Alzheimer's-related costs to Medicare and Medicaid alone will top more than $1 trillion annually by 2050.

"We have to put Alzheimer's on the front burner, because if we don't, Alzheimer's will not only devour our memories, it will cripple our families, devastate our health care system and decimate the legacy of our generation," Shriver told the Senate's Special Committee on Aging.

Her words on her father's behalf earned her a standing ovation from the dozens of Alzheimer's advocates who had packed the ornate Senate hearing room, many of them wiping away tears as she spoke.

The study group _ convened by Congress in 2007 and chaired by former Republican House Speaker Newt Gingrich and former Nebraska Democratic Sen. Bob Kerrey _ recommends creating what it called an Alzheimer's Solutions Project to accelerate and focus national efforts, including an emphasis on research into preventing Alzheimer's. Research funding for the disease has been flat for five years.

"The human pain and financial burden of Alzheimer's is so great and the potential breakthroughs in science are so encouraging that a 'Manhattan Project' ... approach to ending Alzheimer's is more than justified," Gingrich said, referring to the government project to develop a nuclear weapon during World War II. He noted that polio infected more than 50,000 Americans in the 1950s, but the disease largely was eradicated when a vaccine was found.

"An Alzheimer's preventive would dramatically overshadow even that great scientific victory," Gingrich said.

Pitching for more money in a tight economy may be tricky, but Gingrich suggested that research should be based on potential savings.

"The choice for our generation is not whether or not to spend the money on Alzheimer's," Gingrich said. "The choice for our generation is to invest the money early and save a lot of lives, pain and money later or to be foolishly cheap."

(EDITORS: STORY CAN END HERE)

Kerrey noted that many researchers think they may be close to developing the ability to delay or even prevent Alzheimer's.

New cases of the disease _ which the report notes strikes almost half of those who are older than 85 _ are projected to increase by more than 50 percent in 20 years and then double to as many as 16 million cases by 2050.

"We just can't face that kind of personal tragedy and the cost," said retired Supreme Court Justice Sandra Day O'Connor, a member of the study group who has personal experience with Alzheimer's: Her husband, John, has the disease.

O'Connor called for a major prevention initiative and more help for families, noting that many patients require two or more people providing around-the-clock care.

"The disease is devastating not only for those who are afflicted, but also their friends, family and colleagues," O'Connor said.

The study group also is calling for changes to Medicare and Medicaid reimbursement, noting that the system discourages the use of counseling and community services, which Kerrey said could be of great value to dementia patients.

___

ON THE WEB

The Alzheimer's Study Group report: http://tinyurl.com/ccug97

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Human smuggling: Mexican drug cartels also smuggle people across border

2009-03-25T22:16:00.001-04:00

From TheMatadorOnline.com newsroom:

By Josh Meyer

Tribune Washington Bureau

(MCT)

WASHINGTON _ Mexican drug cartels and their vast network of associates have branched out from their traditional business of narcotics trafficking and are now playing a central role in the multibillion-dollar-a-year business of illegal immigrant smuggling, U.S. law-enforcement officials and other experts say.

The business of smuggling humans across the Mexican border has always been brisk, with many thousands coming across every year. But smugglers affiliated with the drug cartels have taken the enterprise to a new level _ and made it more violent _ by commandeering much of the operation from beginning to end from independent coyotes, according to these officials and recent congressional testimony.

U.S. efforts to stop the cartels have been stymied by a shortage of money and the failure of federal law-enforcement agencies to collaborate effectively with each other, their local and state counterparts and the Mexican government, officials say.

For many years, U.S. authorities have focused efforts on the cartels' trafficking of cocaine, marijuana, heroin and methamphetamines, which has left a trail of violence and corruption in its wake.

Unlike the drug-trafficking problem, the cartels' involvement in human smuggling has received scant attention in Washington.

The cartels often further exploit illegal immigrants by forcing them into economic bondage or prostitution, U.S. officials say. In recent years, illegal immigrants have been forced to pay even more exorbitant fees for being smuggled into the U.S. by the cartels' well-coordinated networks of transportation, communications, logistics and financial operatives, according to officials.

Many more illegal immigrants are raped, killed or physically and emotionally scarred along the way, authorities say. Organized smuggling groups are stealing entire safe houses from rivals or trucks full of "chickens" _ their term for their human cargo _ so they can resell them or exploit them further, according to these officials and documents.

Rep. Loretta Sanchez, D-Calif., said greed and opportunity has prompted the cartels to move into illegal immigrant smuggling.

"Drugs are only sold once," Sanchez, the chairwoman of the House Homeland Security border subcommittee, said in an interview. "But people can be sold over and over. And they use these people over and over until they are too broken to be used anymore."

(EDITORS: BEGIN OPTIONAL TRIM)

The cartels began moving into human smuggling in the late 1990s, initially by taxing the coyotes as they led bands of a few dozen people across cartel-controlled turf near the border. After U.S. officials stepped up border enforcement after the Sept. 11, 2001, terrorist attacks, the price of passage increased and the cartels got more directly involved, using the routes they have long used for smuggling drugs north and cash and weapons south, authorities said.

Sometimes they loaded up their human cargo with backpacks full of marijuana. In many cases they smuggled illegal immigrants between the two marijuana-growing seasons, authorities said.

Kumar Kibble, deputy director of the Office of Operations at Immigration and Customs Enforcement, a division of Homeland Security, said the cartels make money by taxing coyotes and engaging in the business themselves. "Diversification has served them well," Kibble said.

(END OPTIONAL TRIM)

The Obama administration and Congress are increasingly focusing their attention on Mexico, fearing that its government is losing ground in a battle against the cartels that already has resulted in the deaths of more than 7,000 people since the beginning of 2008.

At one of many congressional hearings on the subject last week, Sen. Dick Durbin, D-Ill., unveiled a chart he said described the cartels' profit centers: drugs, weapons and money laundering.

"I would add one thing, Senator," said Arizona Atty. Gen. Terry Goddard, who then described to Durbin his concerns about the cartels' role in illegal immigrant smuggling. "It is really a four-part trade and it has caused crime throughout the United States."

Arizona has become the gateway not only for drugs but for illegal immigrants. Fights over the valuable commodity have triggered a spate of shootings, kidnappings and killings, Goddard and one of his chief deputies said in interviews.

Goddard said that in Arizona, the cartels grossed an estimated $2 billion last year on smuggling humans.

Senior officials from federal law-enforcement agencies confirmed they are concerned about the cartels' human smuggling network.

In recent years, the U.S. government has taken significant steps to go after illegal immigrant smugglers on a global scale, setting up task forces, launching public awareness campaigns and creating a Human Smuggling & Trafficking Center to fuse intelligence from various agencies.

But at the border with Mexico, the effort has stumbled, in part because Homeland Security and various Justice Department agencies have overlapping responsibilities and are engaging in turf battles to keep them, Goddard and other federal and state officials said.

The vast majority of ICE agents cannot make drug arrests, for instance, even though the same smugglers are often moving illegal immigrants.

The reason: The Drug Enforcement Administration has not authorized the required "cross-designation" authority for them, according to Kibble and others. A top DEA official said that is partly to prevent ICE agents from unwittingly compromising ongoing DEA investigations and informants working the cartels.

Agents from the Justice Department's Bureau of Alcohol, Tobacco, Firearms and Explosives focus almost exclusively on cartel efforts to smuggle large quantities of American-made weapons into Mexico.

"The only way we're going to be successful is to truly mount a comprehensive attack upon the cartels. They're doing a comprehensive attack on us through all four of these different criminal activities," Goddard told a Senate Judiciary subcommittee. "I'm afraid in this country we tend to segregate by specialty the various areas that we are going to prosecute. And our experience on the border is we can't do that. We've got to cross the jurisdictional lines or we're going to fail."

Kibble agreed, saying the cartels' diversification will require federal agencies to work together. "It means we need more teamwork so things don't slip through the cracks."

"We are very focused on it and applying law-enforcement pressure to all aspects of the cartels' activities," Kibble said.

(EDITORS: STORY CAN END HERE)

Authorities also are hampered by budget shortcomings and other obstacles. Even though ICE has primary responsibility over illegal immigrant smuggling, it has only 100 agents dedicated to the task, Kibble said.

Cameron Holmes, an assistant Arizona attorney general at the front lines of the fight against cross-border human smuggling, said federal authorities are trying to collaborate better.

"Are they working together enough? Absolutely not. Are they being successful? Look around," Holmes said before describing details of illegal immigrant smuggling cases in which people were killed or enslaved for years. "We have a multibillion criminal industry that has grown up in the last 10 years and it all involves violations of federal law. I would not call that a success."

___

© 2009, Chicago Tribune.

Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/

Distributed by McClatchy-Tribune Information Services.

Geithner seeks expanded power to take over financial firms

2009-03-25T22:10:00.002-04:00

From TheMatadorOnline.com newsroom:

By William Douglas

McClatchy Newspapers

(MCT)

WASHINGTON _ Treasury Secretary Timothy Geithner called Tuesday for new powers to regulate giant nonbank financial companies, such as insurance titan American International Group, whose failure would endanger the U.S. economy.

In a rare joint appearance before the House Financial Services Committee, Geithner and Federal Reserve Chairman Ben Bernanke said the AIG experience underscored that the Treasury needed to be able to take over failing financial institutions expeditiously, remove their bad assets and sell their good assets to competitors. The powers that Geithner seeks are similar to what the Federal Deposit Insurance Corp. has over national banks.

"The proposed resolution authority would allow the government to provide financial assistance to make loans to an institution, purchase its obligations or assets, assume or guarantee its liabilities and purchase an equity interest," Geithner said. "This proposed legislation would fill a significant void in the current financial-services regulatory structure with respect to nonbank institutions."

Geithner said "AIG highlights broad failures of our financial system," and that it underscores why action must be taken to ensure that such dangers never menace the nation again.

The Obama administration will lay out more details of its proposed revisions for financial regulation Thursday. It will do so in advance of a G-20 meeting of leaders from the world's 20 major economies, at which Europeans will push hard for stronger regulation of global financial markets.

The White House has voiced wariness over ceding too much authority over U.S. markets to international institutions. However, President Barack Obama said Tuesday that he would push at the G-20 meeting for greater regulation of hedge funds and other nonbank financial institutions that, like AIG, could affect the world economy.

Geithner said he'd give more details of the administration's regulatory plan Thursday when he testified again before the committee.

House Financial Services Committee Chairman Barney Frank, D-Mass., appeared supportive of the administration's call.

"We need to give somebody somewhere in the federal government ... the authority to do what the FDIC can do with banks," Frank said. "It's called resolving authority, but giving somebody . . . a form of bankruptcy power given under the Constitution ... allows us to avoid the choice of all or nothing: Nothing in the case of Lehman Brothers, all in the case of AIG."

Lawmakers grilled the two senior officials anew about the $165 million in bonuses paid to AIG employees. Geithner and Bernanke restated their displeasure over AIG's retention bonuses and vowed to work with Congress to prevent excessive bonuses or rewards going to the employees of firms that receive federal bailout money.

Bernanke testified Tuesday that he had considered suing to block the AIG bonuses but his legal counsel persuaded him not to. Bernanke said that if the Treasury had the power it now sought, "the bonus issue would not have arisen."

"I share the anger and frustration of the American people, not just about the compensation practices at AIG and in other parts of our financial system, but that our system permitted a scale of risk-taking that has caused grave damage to the fortunes of all Americans," Geithner said.

However, while Geithner said he found the bonuses repugnant, he said that there was no choice but to pay them because they were part of legally binding contracts.

"We need to strike the right balance between encouraging investment and prudent risk-taking to get our financial system moving again, and, on the other hand, placing limits on executive compensation to avoid taxpayer-funded rewards for failure," he said.

(EDITORS: STORY CAN END HERE)

Last week the House of Representatives rammed through legislation to levy a 90 percent tax on bonuses to employees with household incomes that exceed $250,000 a year at companies that receive at least $5 billion in federal assistance.

After financial industry executives began warning that such punitive terms may make them reluctant to cooperate with federal efforts to end the financial crisis, and after legal authorities warned that the legislation probably is unconstitutional, reservations began to emerge. Obama said on "60 Minutes" that he wanted to oppose rewarding bad behavior with bonuses but also wanted to ensure that his administration did nothing to impede economic recovery, and that he would try to balance the two goals as he weighed whatever Congress did regarding the AIG bonuses.

AIG head Edward Liddy has asked his employees who got bonuses to return at least half of the amounts voluntarily. On Monday, New York Attorney General Andrew Cuomo said that nine out of 10 of AIG's top bonus recipients were returning all the money. He also said that 15 of the 20 largest recipients from AIG's Financial Products division had agreed to give back the money, an estimated $30 million.

The Senate is postponing debate on its own bill aimed at reclaiming the bonuses through taxes, a delay intended to let passions die down and reason prevail. Senate Majority Leader Harry Reid, D-Nev., said Tuesday that "the issue is not over, and that's an understatement," but didn't set timing for further action.

___

ON THE WEB

Bernanke's testimony: http://www.federalreserve.gov/newsevents/testimony/bernanke20090324a.htm

Geithner's testimony: http://www.ustreas.gov/press/releases/tg67.htm

New York Fed testimony: http://www.ny.frb.org/newsevents/speeches/2009/dud090324.html

President Obama's 2010 budget outline: http://tinyurl.com/bcbxk6

Concord Coalition's budget analysis: http://tinyurl.com/cwjb2e

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Palin criticizes Obama for Special Olympics quip

2009-03-23T10:58:00.002-04:00

From TheMatadorOnline.com newsroom:

By Erika Bolstad

McClatchy Newspapers

(MCT)

WASHINGTON _ Alaska Gov. Sarah Palin on Friday criticized President Barack Obama's gaffe about the Special Olympics, calling his off-handed remark on the Tonight Show "degrading," especially since it was "coming from the most powerful position in the world."

"These athletes overcome more challenges, discrimination and adversity than most of us ever will," Palin said in a statement released Friday. "By the way, these athletes can outperform many of us and we should be proud of them. I hope President Obama's comments do not reflect how he truly feels about the special needs community."

Obama apologized for his remark shortly after his Thursday night appearance on NBC's Tonight Show with Jay Leno. His gaffe came toward the end of the interview, when the Tonight Show host ribbed Obama about his less-than-stellar bowling skills, which were derided on the campaign trail. Obama joked he had been practicing and recently bowled a 129. Leno offered tongue-in-cheek praise, saying "that's very good, Mr. President."

"It's like _ it was like Special Olympics, or something," Obama responded.

Palin, whose son, Trig, was born with Down syndrome last year, appeared in a video promoting this year's winter Special Olympics games in Boise, Idaho. In it, she held Trig and talked about how important participating in the Special Olympics will be to her son's future happiness, especially in a sports-loving family.

"Thanks to Special Olympics, we know for certain that Trig is going to have every opportunity to enjoy sports and competition that all of our other children have," Palin said in the video. She riffed on her infamous hockey-mom-and-lipstick line from when she was introduced last summer to the nation as Sen. John McCain's vice presidential running mate.

"You know what the difference is between a hockey mom and a Special Olympics hockey mom?" Palin said. "Nothing."

The president's hasty apology came shortly after the Tonight Show was taped in California. White House spokesman Bill Burton released a statement while the president was flying back to Washington D.C. on Air Force One.

"The President made an offhand remark making fun of his own bowling that was in no way intended to disparage the Special Olympics," Burton said. "He thinks that the Special Olympics are a wonderful program that gives an opportunity to shine to people with disabilities from around the world."

En route to Washington, the president also called and offered an apology to the chairman of the Special Olympics, Tim Shriver, whose mother Eunice Kennedy Shriver founded the Special Olympics in 1968. Shriver told "Good Morning America" that there's a Special Olympics athlete from Detroit who has bowled three perfect games and would be thrilled to offer the president some tips.

(EDITORS: STORY CAN END HERE)

California Gov. Arnold Schwarzenegger also weighed in. His wife, Maria Shriver, is Tim Shriver's brother; both Schwarzenegger and his wife have served as Special Olympics ambassadors.

"I know where his heart is at," Schwarzenegger said of the president, outside the White House Friday afternoon. "He loves Special Olympics, and he will do everything he can to help Special Olympics. And every one of us sometimes makes a mistake. Something comes out of your mouth and you say 'Oops, I wish I wouldn't have said that.' I've had many of those."

Maria Shriver was a little more critical: "Oftentimes we don't realize that when we laugh at comments like this it hurts millions of people throughout the world," she said. "People with special needs are great athletes and productive citizens, and I look forward to working with the president to knock down myths and stereotypes about this community."

Friday afternoon, White House spokesman Robert Gibbs repeated the president's apology during his daily briefing.

"I know that the president believes that the Special Olympics are a triumph of the human spirit, and I think he understands that they deserve a lot better than _ than the thoughtless joke that he made last night, and he apologizes for that," Gibbs said.

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

Banks lend heavily to insiders amid credit crunch, bailouts

2009-03-23T10:58:00.001-04:00

From TheMatadorOnline.com newsroom:

By Stella M. Hopkins

McClatchy Newspapers

(MCT)

CHARLOTTE, N.C. _ Banks nationwide hold $41 billion in loans to directors, top executives and other insiders, a portfolio that experts say should be stripped of secrecy.

Insider lending to directors is particularly troublesome because it could cloud the judgment of people charged with protecting shareholders and overseeing bank management, the experts say.

At Charlotte-based Bank of America, those loans more than doubled last year, to $624.2 million _ the biggest dollar jump in the country. The largest of them likely went to three directors or their companies. The surge came during the third quarter as credit markets froze, the government prepared to infuse banks with billions in tax dollars and the board approved the purchase of troubled Merrill Lynch.

Bank of America ranked fourth on the list of biggest insider lenders. At the top was JPMorgan of New York, which held $1.48 billion in insider loans, mostly by directors or their companies.

At No. 2, Charlotte-based Wachovia, which was sold to Wells Fargo of San Francisco at the end of 2008, finished the year with $747 million in insider loans. All of the loans were held by the bank's directors or their companies, with just five holding the largest.

Ranking third on the list was M&I Marshall & Ilsley of Milwaukee, with $644.4 million, and Chicago's Northern Trust was at No. 5 with $524.5 million.

Insider loans, ranging from home mortgages to multimillion-dollar lines of credit for big companies, are legal but are largely shrouded from public scrutiny.

Banks don't have to explain increased insider lending. They don't have to disclose individual loan amounts or terms for any insiders, including executives. Directors and their businesses, often the largest insider borrowers, are completely shielded. Directors must approve insider loans greater than $500,000, so they sometimes vote on loans for each other or the executives they oversee.

Insider favoritism is against the law. Bankers and regulators say the loans are subject to greater scrutiny to ensure insiders aren't getting better terms and are creditworthy.

But top corporate governance experts contend that insider lending carries serious potential for conflict of interest among bank officials and must be stripped of secrecy. They argue that lending to directors, the watchdogs of management, must be revealed so shareholders can gauge their independence. And disclosure should be paramount for banks receiving government aid, said Ed Lawrence, a University of Missouri-St. Louis finance professor and co-author of a 1989 study that was a rare look at insider lending.

Seven of the 10 banks with the largest insider loans received a total of more than $50 billion in the banking bailout late last year, according to a Charlotte Observer analysis of banks' federal filings.

"It's good for the public to know ... where the money is going," Lawrence said. "When you start taking public money, we hold them to a much higher standard."

The majority of the nation's 8,000-plus banks make insider loans, some very small. At the end of last year, banks had $41 billion of insider loans, up 5.7 percent from a year earlier, according to The Charlotte Observer's analysis.

Insider loans accounted for less than 2 percent of the banks' assets, amounts that are generally unlikely to seriously damage banks if the loans go sour. The loans tend to make up a larger percentage of business for smaller banks.

Not all large banks are big insider lenders. Wells Fargo, for example, was about the size of Wachovia before the San Francisco bank swooped up the wounded Charlotte institution late last year. Wells ended last year with $20 million of insider loans, a fraction of Wachovia's $747 million. Neither bank would discuss the disparity.

Most publicly traded companies were banned from making insider loans in 2002, part of the regulatory rush following the collapse of Enron and other accounting scandals.

But banks were excluded from the ban, partly because they're in the business of lending and also because the loans have been subject to extensive regulation for more than 25 years.

The loans were blamed for bank problems during the nation's S&L crisis. Lawrence and others have linked insider lending to bank failures. In December, the chairman of a large Irish bank resigned after revelations he had $109 million of secretive insider loans. In January, the government seized the Dublin bank.

"Studies of bank failures have found that insider abuse, including excessive or poor quality loans made ... is often a contributing factor to the failure," says the "Insider Activities" handbook from the Comptroller of the Currency, the lead regulator for big national banks.

Banks can be hurt by even the perception of insider favoritism, the guide says.

"We don't have a difficulty with insider loans when they're properly written and extended," said Ray Grace, the North Carolina deputy banking commissioner who heads bank supervision for state-chartered firms. "It makes a certain amount of sense that a director or bank officer take that business to their own bank rather than shop it to a competitor."

A key requirement is that insider loans be on the same terms as those to similar outsiders.

"This is a highly scrutinized area, so usually any problems would be caught early," said Mindy West, a Federal Deposit Insurance Corp. chief whose job includes crafting instructions for bank examiners.

Large banks, such as Bank of America, have regulatory officials on site. Smaller banks are typically examined every 12 to 18 months. Regulatory officials request insider loan details for review prior to their regular bank examinations, West said. The FDIC has regulatory authority over about 5,100 banks.

New loans and increases in existing loans are especially likely to be scrutinized, West said. And a loan balance that doubled would probably trigger a second look.

(EDITORS: BEGIN OPTIONAL TRIM)

Longtime governance expert Charles Elson doesn't advocate banning insider loans, although he was startled the loans can run into hundreds of millions. But, he said, banks need to make full disclosure, revealing names, amounts and terms. He is especially concerned about disclosure for loans to directors and their interests.

"Management, who can dictate the terms of the loan, are being overseen by the director who is a beneficiary," said Elson, who is director of the University of Delaware's Weinberg Center for Corporate Governance. "It compromises the director's ability to be objective."

As borrowers, directors might be less rigorous when evaluating the CEO or other executives, he said. They might be unwilling to buck management when approving deals.

Wachovia's board approved its 2006 acquisition of mortgage lender Golden West Financial, a vote that ultimately helped push the bank near collapse. Shortly before that approval, the bank had $1.47 billion in insider lending. Fifteen borrowers held the largest loans. Banks aren't required to disclose details of past lending so there's no way to identify those borrowers.

At the end of 2008, all of the bank's $747 million in insider loans were held by directors or their companies, said Julia Bernard, a spokeswoman for Wells Fargo, which bought Wachovia last year. Five borrowers held the largest loans. Bernard said most of the loans were made before 2008.

Wachovia's former chairman and longtime director, Lanty Smith, did not respond to two calls for comment.

(END OPTIONAL TRIM)

Nel Minow, co-founder of The Corporate Library, said directors should take their business elsewhere if they aren't comfortable with disclosure.

"Do you want them as directors or do you want them as customers?" she said. "To the extent there's even the perception of conflict of interest, it's very important for them to be very transparent."

(EDITORS: STORY CAN END HERE)

___

TOP 10 INSIDER LENDERS

JPMorgan Chase, New York, $1.48 billion

Wachovia, Charlotte, N.C., $747 million

M&I Marshall & Ilsley, Milwaukee, $644.4 million

Bank of America, Charlotte, $624.2 million

Northern Trust, Chicago, $523.5 million

Union Bank, San Francisco, $499.3 million

BB&T, Winston-Salem, N.C., $493.8 million

Commerce Bank, Kansas City, Mo., $467.9 million

Regions Bank, Birmingham, Ala., $444.3 million

Comerica Bank, Dallas, $391.5 million

(Note: Wells Fargo, based in San Francisco, bought Wachovia on Dec. 31.)

___

(Database editor Ted Mellnik contributed to this report. Stella Hopkins can be reached at shopkins@charlotteobserver.com.)

___

© 2009, The Charlotte Observer (Charlotte, N.C.).

Visit The Charlotte Observer on the World Wide Web at http://www.charlotte.com/

Distributed by McClatchy-Tribune Information Services.

Obama gives Treasury secretary vote of confidence during '60 Minutes' interview

2009-03-23T10:57:00.001-04:00

from TheMatadorOnline.com newsroom:

By Mark Silva

Tribune Washington Bureau

(MCT)

WASHINGTON _ The besieged secretary of the Treasury gets a strong vote of confidence from President Barack Obama in a TV interview to be broadcast Sunday.

In a 90-minute session with "60 Minutes" interviewer Steve Kroft, Obama tells Kroft that if Timothy Geithner were to tender his resignation, he would tell him, "Sorry, buddy, you've still got the job."

The president stressed that neither he nor Geithner has mentioned resignation. But Obama said that criticism is natural, in light of the circumstances.

"It's going to take a little bit more time than we would like to make sure that we get this plan just right," Obama said. "Of course, then we'd still be subject to criticism _ 'What's taken so long? You've been in office a whole 40 days and you haven't solved the greatest financial crisis since the Great Depression.' "

The president also discussed the proposed bonus tax for companies that have collected federal bailout money, health care, assistance for automakers, and the situation in Afghanistan and Pakistan.

Addressing national security, Obama had an answer for Vice President Dick Cheney's recent contention that the new president has put the nation at greater risk with his plans to close the detention center at Guantanamo Bay and prohibit torture of prisoners.

"How many terrorists have actually been brought to justice under the philosophy that is being promoted by Vice President Cheney?" Obama said. "It hasn't made us safer. What it has been is a great advertisement for anti-American sentiment."

Asked about released prisoners who have returned to terrorist groups, Obama said: "There is no doubt that we have not done a particularly effective job in sorting through who are truly dangerous individuals ... to make sure (they) are not a threat to us."

But the president said the Bush administration's policy on detainees at Guantanamo _ including long incarcerations without trial _ is "unsustainable."

Excerpts from the interview, taped Friday, will air on "60 Minutes" Sunday at 7 p.m. EDT.

___

© 2009, Tribune Co.

Visit the Chicago Tribune on the Internet at http://www.chicagotribune.com/

Distributed by McClatchy-Tribune Information Services.

Obama defends emptying Guantanamo

2009-03-23T10:55:00.001-04:00

From TheMatadorOnline.com newsroom:

By Carol Rosenberg

McClatchy Newspapers

(MCT)

MIAMI _ President Barack Obama said in an interview broadcast Sunday the Bush administration did not properly vet Guantanamo detainees before freeing them. Still, he defended his plan to empty the prison camps to mend global relations.

Obama made the remarks in excerpts released by CBS "60 Minutes" a week after former Vice President Dick Cheney said the president's plans to dismantle GOP-led detainee policy were risky.

"How many terrorists have actually been brought to justice under the philosophy that is being promoted by Vice President Cheney?" Obama retorted. "It hasn't made us safer. What it has been is a great advertisement for anti-American sentiment."

The Bush administration sent to other countries some 500 detainees in its periodic rounds of releases since opening the controversial prison camps in January 2002. The Obama White House has approved release of only one so far from Guantanamo _ a former British resident who was sent to London.

Justice Department officials are now sifting the files of the 220 war on terror captives at Guantanamo to decide who can be sent home, who can be resettled in third countries and who should face trials.

Spokesmen for Secretary of Defense Robert Gates have claimed a sizable recidivist rate of former detainees who have rejoined the Taliban or attacked U.S. forces or allies. In a few instances, Pentagon spokesmen have cited specific cases, but mostly pointed to secret intelligence reports and scarce public proof.

"There is no doubt that we have not done a particularly effective job in sorting through who are truly dangerous individuals...to make sure they are not a threat to us," said Obama.

But he said his predecessor's policy of indefinite detention at Guantanamo without trial was "unsustainable."

(EDITORS: STORY CAN END HERE)

Only a few dozen have been charged in the now frozen war court the Bush administration championed. Of the three who were convicted _ Osama bin Laden's driver and media secretary and an Australian foot soldier _ two have been set free in Australia and Yemen.

Obama has said he prefers traditional prosecutions for which cases can be built in U.S. courts _ an approach that Cheney cast as an effort to transform war policies into law enforcement practices.

Cheney's remarks on last Sunday's CNN broadcast sparked a new round of national debate on the future of the prison camps.

A former Bush appointee, retired Army Col. Lawrence Wilkerson, reignited a feud with the former vice president by reminding on a Web site that Bush-era intelligence suggested some at Guantanamo are innocent.

The Obama administration has been steadily breaking with Bush detainee policy since the president signed an Executive Order instructing his government to empty the prison camps within his first year in office.

Attorney General Eric Holder, who is leading the Cabinet level review of what to do with the detainees, toppled one taboo last week:

He told reporters he could imagine the U.S. resettling on American soil some Muslims from China who had been cleared of being "enemy combatants," but cannot go home from Guantanamo for fear of religious persecution in their communist homeland.

Gates, a holdover from the Bush years, had urged legislation that banned ex-Guantanamo captives from being settled in the United States.

___

© 2009, The Miami Herald.

Visit The Miami Herald Web edition on the World Wide Web at http://www.herald.com/

Distributed by McClatchy-Tribune Information Services.

Sesame Street and Madoff...?

2009-03-21T14:12:00.001-04:00

Seperating Fact from BS

2009-03-12T12:07:00.001-04:00

So who really is telling the truth in politics? A special Web site from the St. Petersburg Times helps seperate fact from fiction:

http://www.politifact.com/truth-o-meter/

Obama decries earmarks, signs bill with 9,000 of them

2009-03-12T08:59:00.000-04:00

By Steven Thomma and David Lightman

McClatchy Newspapers

(MCT)

WASHINGTON _ As a candidate, Barack Obama once said that a president has to be able to do more than one thing at a time. Wednesday he proved it, though not in the way he had in mind.

He criticized pork barrel spending in the form of "earmarks," urging changes in the way that Congress adopts the spending proposals. Then he signed a spending bill that contains nearly 9,000 of them, some that members of his own staff shoved in last year when they were still members of Congress.

"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," Obama said.

He said, however, that it was crucial for him to sign the $410 billion bill as soon as it arrived at the White House from Congress because it's needed to finance much of the government for the rest of this fiscal year. It was largely written last year but was held back while Republican George W. Bush was president because he opposed it.

"I am signing an imperfect ... bill," Obama said, "because it's necessary for the ongoing functions of government, and we have a lot more work to do. We can't have Congress bogged down at this critical juncture in our economic recovery."

Obama proposed changing the way special projects are financed, including competitive bidding for spending that goes to for-profit businesses. Aides also said the White House Office of Management and Budget would review the spending bill for examples of wasteful spending. The president then could send those back to Congress as proposed cuts, called rescissions, for an up-or-down vote.

Although Obama insisted that the recently enacted $787 billion plan to stimulate the economy be free of any earmarks _ spending on special projects usually in senators' home states or representatives' districts _ he made no such demand of this spending bill.

"The president could have done better. He couldn't have eliminated the earmarks in this bill, but he could have at least cut them back significantly," said Steve Ellis, the vice president of Taxpayers for Common Sense, a budget watchdog group. "We appreciate how he kept them out of the stimulus, but we think he's only batting .500."

"The American people know actions speak louder than words," said Rep. John Boehner, R-Ohio, his party's leader in the House of Representatives. "The president's new promises on earmark reform would carry greater weight if they had been accompanied by a veto keeping his earlier promises on earmark reform."

The bill contains 8,816 earmarks worth $7.6 billion, according to Taxpayers for Common Sense.

Notable among them are $155.9 million worth of projects that six members of the Obama administration who were members of Congress last year, when the bill was originally written, inserted into the bill.

Top among them was Vice President Joe Biden. As a senator from Delaware, Biden added 56 earmarks that cost a total of $52.1 million, including $13.7 million for the Intracoastal Waterway from the Delaware River to the Chesapeake Bay and $190,000 to help build a children's museum in Wilmington.

Others:

_White House Chief of Staff Rahm Emanuel, who as a House member from Illinois added 16 earmarks worth about $8.3 million, including money for a Chicago planetarium and suburban children's museum.

_Interior Secretary Ken Salazar, formerly a Democratic senator from Colorado, $44.6 million.

_Transportation Secretary Ray LaHood, formerly a Republican congressman from Illinois, $26.5 million.

_Labor Secretary Hilda Solis, formerly a Democratic House member from California, $15.5 million.

_Secretary of State Hillary Clinton, formerly a Democratic senator from New York, $6.7 million.

The White House has pledged to send legislation to Congress seeking the rescission of all earmarks sponsored by current members of the Obama administration.

(EDITORS: STORY CAN END HERE)

Geographically, Alaska topped the list, with 100 earmarks valued at $143 million, or $209.71 per capita. Next was North Dakota, with $110 million or $172 per capita.

The data show that it pays to be a top Appropriations Committee official. Hawaii, the home state of Senate Appropriations Committee Chairman Daniel Inouye, came in third, at $165 million, or $128.12 per capita. Fourth was Mississippi, represented by top Republican Appropriations member Thad Cochran, with $324 million in earmarks, or $110.59 per capita.

Last on the list: Arizona, the home state of Sen. John McCain, with $54 million, or $8.41 per capita. McCain railed against the practice throughout the weeklong Senate debate, just as he did in last year's presidential campaign, but his effort to effectively erase earmarks from the bill failed by a big margin Monday night.

___

© 2009, McClatchy-Tribune Information Services.

Visit the McClatchy Washington Bureau on the World Wide Web at www.mcclatchydc.com.

_____

PHOTOS (from MCT Photo Service, 202-383-6099): OBAMA

Obama picks ex-NYC health commissioner to head FDA

2009-03-12T08:58:00.002-04:00

By Noam N. Levey

Tribune Washington Bureau

(MCT)

WASHINGTON _ President Barack Obama has decided to tap former New York City Health Commissioner Margaret Hamburg to head the Food and Drug Administration, turning to a former Clinton administration official to help right the beleaguered regulatory agency, a source briefed on the choice said Wednesday.

Hamburg, 53, a physician who has worked extensively on bio-terrorism issues, is now a senior scientist at the Nuclear Threat Initiative, a Washington-based foundation focused on threats from nuclear, biological and chemical weapons.

Though less experienced as a regulator, Hamburg has extensive government experience. She served as health commissioner in New York for six years in the 1990s before becoming assistant secretary for planning and evaluation in the Clinton administration's Department of Health and Human Services.

Another leader in public health, Baltimore health commissioner Dr. Joshua Sharfstein, 39, is widely expected to be named Hamburg's deputy.

A pediatrician by training, Sharfstein led the Obama transition team's assessment of the FDA. He also has worked as an aide to Rep. Henry Waxman, D-Calif., who is a leading critic of the pharmaceutical industry.

The president will be looking to Hamburg and Sharfstein _ whose choices were first reported by the Wall Street Journal _ to strengthen the FDA's regulatory oversight after controversies involving its drug and device approvals and its response to outbreaks of food-borne illness.

(EDITORS: STORY CAN END HERE)

(EDITORS: BEGIN OPTIONAL TRIM)

Just two months ago, inspectors from the Government Accountability Office, the investigative arm of Congress, said the agency was fast-tracking approvals of medical devices without sufficient review.

And agency scientists recently called on the new administration to remove senior medical device regulators, whom they accused of corrupting the FDA's review process.

"Current senior FDA employees are too close with the industries they regulate," said Rep. Bart Stupak, D-Mich., a frequent critic who chairs the Energy and Commerce Subcommittee on Oversight and Investigations. "The new FDA commissioner must recognize that the FDA works for the American people, not drug companies and food producers." Other critics complain the agency has been too slow to approve generic drugs that could help reduce health care costs.

Lawmakers, meanwhile, have been agitating to transfer the FDA's responsibility for regulating food to a new agency, a drive that has gained momentum with each new food scandal.

The FDA is still wrestling with last year's deadly salmonella outbreak involving peanut plants. More than 600 people were sickened in the months-long outbreak, and at least nine deaths were attributed to salmonella.

FDA leaders have taken some steps to respond to the criticism, including increasing their focus on overseas inspections. But much of the reform effort has been on hold as the Obama administration worked to fill the agency's top posts at the agency, a process delayed by setbacks in selecting a new secretary of Health and Human Services.

(END OPTIONAL TRIM)

The FDA has not had a commissioner since December, when Bush appointee Andrew von Eschenbach resigned.

As health commissioner in New York, Hamburg was widely praised for a major initiative to control the spread of tuberculosis, reducing the city's infant mortality rates and boosting child immunizations. She sits on the board of medical supply distributor Henry Schein Inc., but would have to surrender the position if confirmed by the Senate.

Hamburg would have a great deal of work to do at the FDA, said Rep. Rosa DeLauro, D-Conn., a leading champion of stronger federal regulation of food.

"After years of failing to perform its responsibilities adequately and allowing industry influence to permeate its culture, reforming the FDA will represent an enormous undertaking," DeLauro said. "The next commissioner faces a significant and long-term challenge in changing the culture at the agency and ensuring that the FDA once again emphasizes independent science."

___

© 2009, Tribune Co.

Distributed by McClatchy-Tribune Information Services.

Obama makes case for taking time to get economy out of deep hole

2009-03-12T08:58:00.001-04:00

By Kevin Diaz

Star Tribune (Minneapolis)

(MCT)

WASHINGTON _ President Obama, in his 51st day on the job, acknowledged that he has yet to reassure a nervous public about his game plan for stabilizing the financial system that has pulled the rug out from under the economy."We can always do a better job," he said Wednesday during a roundtable discussion with 15 regional newspapers, including the Star Tribune of Minneapolis.

"I recognize the degree of concern that people have. We've been in office all of seven weeks so far. This is a crisis that was eight years in the making, maybe longer, in certain aspects. The buck stops with me and we're responsible, but it's going to take some time."

The meeting was Obama's second with regional reporters who cover Washington, part of an aggressive media strategy that has seen the new president reach out to bloggers and columnists across the political spectrum.

"This is my monthly occasion to break out of the Washington bubble," Obama said in the West Wing's Roosevelt Room. "I enjoy the keen insights of people outside of Washington."

The president walked into the room with a casual "Hey, how you guys doing?" He spent the next hour holding forth on topics ranging from Mexican border violence to 57 extra police officers in Minneapolis, citing the latter as evidence of the benefits of his recently passed $787 billion economic stimulus package.

"Obviously, our overarching focus right now is the economy," Obama said. "I'm very mindful of the hardships that are taking place all throughout the country."

Speaking slowly and deliberately, like the college professor he was, Obama made clear that his administration is in its infancy and that he still has the public on his side.

"The truth of the matter is the American people I think understand that it's going to take some time," he said. "If you look at the public polling, they recognize that it's going to take a while to dig ourselves out of the hole."

Obama noted that it's been only two weeks since he laid out his plans in a joint session of Congress. "The reviews were pretty good," he said.

(EDITORS: BEGIN OPTIONAL TRIM)

He noted that one aspect of the stimulus package _ extra money to preserve police officer jobs _ was highlighted by Minneapolis Mayor R.T. Rybak, a co-chairman of Obama's presidential campaign in Minnesota. "People are getting the message that slowly, surely, we are making progress on these fronts," Obama said.

(END OPTIONAL TRIM)

As for the unanimous opposition to his stimulus plan from House Republicans, including the three from Minnesota, Obama said "Saying 'no' is easy. ... I'm not impressed by just being able to say no."

For early signs of hope, Obama pointed to his new housing plan to provide relief to homeowners facing foreclosure. "You're already starting to see an uptick in refinancings that are providing families with relief," he said. "And in certain pockets of the country, you're starting to see housing prices stabilize after a long drop."

The president acknowledged, however, that there's "significant uncertainty" in the markets about the banking sector, which has been decimated by bad loans and mortgages. "That's obviously a particular concern to Wall Street," he said.

One problem is that the administration is still in the process of "stress-testing" or evaluating the financial strength of banks. "What we don't want to do is to prejudge those tests, or make a lot of statements that cause a lot of nervousness around banks that are already having difficulties," Obama said. "On that particular issue we've got to explain to people _ and as I said, we can always do better _ why it is so important to get lending going again, to get credit flowing to businesses and consumers.

"I'll be making statements about this tomorrow and the next day and in my radio addresses next week. And the main message I'm going to be delivering is that it's going to take some time to get out of this deep hole we're in. But we're going to get out."

By the time Obama took his last question, his water glass was still more than half full.

___

© 2009, Star Tribune (Minneapolis)

Visit the Star Tribune Web edition on the World Wide Web at http://www.startribune.com

Distributed by McClatchy-Tribune Information Services.

Obama: No U.S. troops to Mexico border

2009-03-12T08:57:00.000-04:00

By Todd J. Gillman

The Dallas Morning News

(MCT)

WASHINGTON _ President Barack Obama is keeping close watch on the violence from Mexico's drug war, but he said Wednesday so far it hasn't spilled into this country enough to justify sending troops to the border.

"We've got a very big border with Mexico," he said. "I'm not interested in militarizing the border."

Last month, Texas Gov. Rick Perry visited El Paso, Texas _ whose neighbor, Ciudad Juarez, has taken the brunt of drug violence that has claimed more than 7,000 lives in Mexico in 14 months _ and called on Washington to send a thousand troops or border agents.

"We're going to examine whether and if National Guard deployments would make sense and under what circumstances they would make sense," Obama told The Dallas Morning News in an hour-long talk with 14 regional newspapers. "I don't have a particular tipping point in mind."

Mexican President Felipe Calderon declared a war on drug cartels nearly two years ago, setting off waves of violence as rival gangs fight for turf and resist the government crackdown. Obama emphasized he will continue working closely with Mexico and said within "a few months" he will offer a comprehensive policy to curtail U.S. demand for drugs and curb the southbound flow of cash and guns that give the cartels "extraordinary power."

"It's really a two-way situation," he said, promising a combination of border security, law enforcement, prevention and treatment.

"We're fighting with one hand tied behind our back because our effort to lower demand is grossly underfunded," Obama said. "The average person who's seeking serious substance abuse treatment in a big city like Dallas or Chicago typically has a three-, four- or six-month waiting list to get enrolled."

Obama has said little until now about the horrific violence in Mexico, which has included beheadings, assassinations of top anti-drug officials and police, running gun battles in border cities and the resignations of law enforcement officials who flee into the U.S. for safety.

Obama lauded Calderon for "taking some extraordinary risks under extraordinary pressure to deal with the drug cartels."

In 2007, then-President George W. Bush hammered out a deal with Calderon, called the Merida Initiative, to provide equipment and training to help Mexico take on the traffickers and weed out corruption.

Obama noted recent high-level contacts between U.S. and Mexican officials as a sign of the ongoing partnership.

(EDITORS: STORY CAN END HERE)

Last Friday, Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, met with counterparts in Mexico and offered more intelligence and surveillance, as well as training based on lessons learned against insurgents in Iraq and Afghanistan. Homeland Security Secretary Janet Napolitano and Attorney General Eric Holder have already met with top Mexican officials, too.

On Wednesday, Obama named a national drug czar, Seattle Police Chief Gil Kerlikowske. Bush had given the post Cabinet rank. Obama removed that designation but said that's not a reflection on how seriously he takes the effort to curtail drug use.

"We do have to treat this as a public health problem, and we do have to have significant law enforcement,' he said. "If we can reduce demand, obviously that allows us to focus more effectively where interdiction is needed."

(EDITORS: STORY CAN END HERE)

As a candidate, Obama called the "war on drugs ... an utter failure." He also said he was open to legalizing marijuana for medical purposes.

Asked Wednesday if he believes this country is still engaged in a war on drugs, he avoided the phrase but promised not to weaken drug laws and to pursue border security and law enforcement while putting fresh emphasis on prevention and treatment.

(EDITORS: STORY CAN END HERE)

President George W. Bush's drug czar, John Walters, agreed on the need for a multifaceted approach.

"It's not an endless battle, and it's not a war like the Vietnam War," said Walters in a separate interview. "The issue of the 'war' has become a kind of metaphor for using inappropriate means, or focusing on force, or focusing on the supply side rather than the demand side. We have learned that we need balance."

(EDITORS: STORY CAN END HERE)

Obama also offered assurance Americans won't be put at risk when he closes the prison at Guantanamo Bay, Cuba, and transfers some detainees to U.S. facilities. Texas Republicans in Congress are among those who have denounced his plan, insisting he send terror suspects elsewhere.

"We already have experience with terrorists who are in federal prisons," Obama said. "And there's been no indication that the safety or security of prison guards or of surrounding communities have been compromised."

On food safety, Obama said he has ordered the Agriculture Department and the Health and Human Services Department to work more closely and develop better procedures, after a salmonella outbreak traced to peanut processors in Texas and Georgia. The nation needs "better warning signals" from food producers and an ability to track contamination more quickly, he said.

___

© 2009, The Dallas Morning News.

Visit The Dallas Morning News on the World Wide Web at http://www.dallasnews.com/

Distributed by McClatchy-Tribune Information Services.

Obama says NASA's next leader must end agency's 'drift'

2009-03-12T08:56:00.000-04:00

By Mark K. Matthews

The Orlando Sentinel

(MCT)

WASHINGTON _ President Barack Obama said Wednesday that NASA is an agency afflicted by "a sense of drift" and that it needs "a new mission that is appropriate for the 21at century."

Obama said the first priority of a new agency administrator _ whom he promised to appoint "soon" _ would be "to think through what NASA's core mission is and what the next great adventures and discoveries are under the NASA banner."

Until that happens, he said during a session with reporters from the Orlando Sentinel and other regional newspapers, the White House would delay any major policy decisions about the agency.

That would likely ensure the retirement of the space shuttle in 2010 _ as Obama called for in the budget proposal he gave Congress last month _ and pave the way for massive job losses at Kennedy Space Center and the surrounding Space Coast in Florida.

Obama took only one question about NASA. He said nothing about whether he wants to continue the Bush administration's Constellation program, intended to send astronauts to the moon by 2020. The program's Ares I rocket is behind schedule and over budget, leading to speculation that it will miss its targeted 2015 launch date and further reduce the skilled work force at KSC.

He was also silent about the fate of the $100 billion international space station. Once the shuttle is retired, NASA will depend on Russian Soyuz spacecraft for access to the station.

Obama made clear that the agency, which has been without an administrator since his Jan. 20 inauguration, could not continue on its current course.

"Shaping a mission for NASA that is appropriate for the 21st century is going to be one of the biggest tasks of my new NASA director," he said. "What I don't want NASA to do is just limp along. And I don't think that's good for the economy in the region, either."

Several names have been floated as possible replacements for former agency chief Michael Griffin. Congressional and space-industry sources said the current front-runner appears to be Steve Isakowitz, a former NASA official now with the Department of Energy who is said to have the strong support of Sen. Barbara Mikulski, D-Md.

Other candidates include former NASA astronaut Charles Bolden, a favorite of Florida's Democratic Sen. Bill Nelson, and two retired Air Force generals, Lester L. Lyles and J. Scott Gration.

Since taking office, Obama has said little about NASA. The only clues to his policy aims were included in his proposed 2010 budget, which called for the shuttle's retirement next year but added one additional launch if it can be done "safely and affordably."

But with eight missions needed after Discovery to finish construction of the space station, it could be difficult to cram another launch into the schedule before the 2010 deadline. The bonus mission Obama touted would ferry a physics experiment to the space station.

The end of the shuttle era is expected to devastate Kennedy Space Center and the Space Coast. KSC's main function is to launch shuttles and other NASA rockets. With nothing to fly, there would be little work.

NASA estimates that at least 3,500 KSC jobs would be lost, while shuttle contractors put the estimate at 10,000. With each NASA job credited with creating 2.8 others in the community, an additional 9,870 to 28,200 jobs would be at risk.

(EDITORS: STORY CAN END HERE)

During his hourlong press briefing, Obama touched on several other topics:

_High-speed rail: He said he wishes he could have shoehorned more than $8 billion in his economic-stimulus package for high-speed rail. Florida officials are interested in a high-speed-rail project that would connect Tampa, Orlando and Miami.

One advocate, U.S. Rep. John Mica, R-Winter Park, said he couldn't be "more enthusiastic" about Obama's support. "I have to be careful how much I praise him," Mica joked. "It's one of the most exciting things I have ever been involved in."

_Voting Rights Act: The president voiced his continued support for Department of Justice reviews of states, primarily Southern, that wish to implement changes that could affect minorities' voting rights. "That's not such a huge hurdle to jump through," he said. Several Florida counties are affected by the law.

_Mexican drug violence: Obama said he has not yet decided whether to send National Guard troops to the U.S.-Mexico border to combat growing drug-related violence. "We are going to examine whether, and if, National Guard deployments would make sense and under what circumstances they would make sense . . .," he said. But he noted: "We have a very big border with Mexico, so I'm not interested in militarizing the border."

___ WHO'S IN MIX?

President Obama says a new NASA chief will be named "soon." Top candidates:

_Steve Isakowitz: Insiders say ex-NASA official is in lead.

_Charles Bolden: Ex-astronaut has Florida Sen. Bill Nelson's support.

_Lester L. Lyles, J. Scott Gration: Retired Air Force generals.

___

© 2009, The Orlando Sentinel (Fla.).

Visit the Sentinel on the World Wide Web at http://www.orlandosentinel.com/.

Distributed by McClatchy-Tribune Information Services.

Obama Tracker

2009-03-11T09:21:00.002-04:00

With Obama now more than half way through his 100 day 'honeymoon,' his recent activity was the talk last night on SmithtownRadio.com Live with Amanda Boitano, Dean Laurence, Megan Russ, Trevor Higgins and James Brierton.

As promised, here is the NPR widget tracking his first 100 days:

Obama Holds First Press Conference

2009-02-09T19:59:00.003-05:00

President Barack Obama held his first press conference Monday as president. From the East Room of the White House, President Obama talked about his stimulus bill to help the economy.

We want to know what you think. Click below to make a comment. We'll be sharing some of your comments on air!

*Update:

Monday, February 9th, 2009 at 8:10 pm
The first press conference
President Obama is holding his first press conference. You can watch it streaming at WhiteHouse.gov/live.

He opened up with some brief remarks, which you can read in full (as prepared for delivery) below.

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OPENING REMARKS OF PRESIDENT BARACK OBAMA -- AS PREPARED FOR DELIVERY
First Presidential Press Conference
East Room, The White House
Monday, February 9th, 2009

Good evening. Before I take your questions tonight, I’d like to speak briefly about the state of our economy and why I believe we need to put this recovery plan in motion as soon as possible.

I took a trip to Elkhart, Indiana today. Elkhart is a place that has lost jobs faster than anywhere else in America. In one year, the unemployment rate went from 4.7% to 15.3%. Companies that have sustained this community for years are shedding jobs at an alarming speed, and the people who’ve lost them have no idea what to do or who to turn to. They can’t pay their bills and they’ve stopped spending money. And because they’ve stopped spending money, more businesses have been forced to lay off more workers. Local TV stations have started running public service announcements that tell people where to find food banks, even as the food banks don’t have enough to meet the demand.

As we speak, similar scenes are playing out in cities and towns across the country. Last Monday, more than 1,000 men and women stood in line for 35 firefighter jobs in Miami. Last month, our economy lost 598,000 jobs, which is nearly the equivalent of losing every single job in the state of Maine. And if there’s anyone out there who still doesn’t believe this constitutes a full-blown crisis, I suggest speaking to one of the millions of Americans whose lives have been turned upside down because they don’t know where their next paycheck is coming from.

That is why the single most important part of this Economic Recovery and Reinvestment Plan is the fact that it will save or create up to 4 million jobs. Because that is what America needs most right now.

It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money which leads to even more layoffs. And breaking that cycle is exactly what the plan that’s moving through Congress is designed to do.

When passed, this plan will ensure that Americans who have lost their jobs through no fault of their own can receive greater unemployment benefits and continue their health care coverage. We will also provide a $2,500 tax credit to folks who are struggling to pay the cost of their college tuition, and $1000 worth of badly-needed tax relief to working and middle-class families. These steps will put more money in the pockets of those Americans who are most likely to spend it, and that will help break the cycle and get our economy moving.

But as we learned very clearly and conclusively over the last eight years, tax cuts alone cannot solve all our economic problems – especially tax cuts that are targeted to the wealthiest few Americans. We have tried that strategy time and time again, and it has only helped lead us to the crisis we face right now.

That is why we have come together around a plan that combines hundreds of billions in tax cuts for the middle-class with direct investments in areas like health care, energy, education, and infrastructure – investments that will save jobs, create new jobs and new businesses, and help our economy grow again – now and in the future.

More than 90% of the jobs created by this plan will be in the private sector. These will not be make-work jobs, but jobs doing the work that America desperately needs done. Jobs rebuilding our crumbling roads and bridges, and repairing our dangerously deficient dams and levees so that we don’t face another Katrina. They will be jobs building the wind turbines and solar panels and fuel-efficient cars that will lower our dependence on foreign oil, and modernizing a costly health care system that will save us billions of dollars and countless lives. They’ll be jobs creating 21st century classrooms, libraries, and labs for millions of children across America. And they’ll be the jobs of firefighters, teachers, and police officers that would otherwise be eliminated if we do not provide states with some relief.

After many weeks of debate and discussion, the plan that ultimately emerges from Congress must be big enough and bold enough to meet the size of the economic challenge we face right now. It is a plan that is already supported by businesses representing almost every industry in America; by both the Chamber of Commerce and the AFL-CIO. It contains input, ideas, and compromises from both Democrats and Republicans. It also contains an unprecedented level of transparency and accountability, so that every American will be able to go online and see where and how we’re spending every dime. What it does not contain, however, is a single pet project, and it has been stripped of the projects members of both parties found most objectionable.

Despite all of this, the plan is not perfect. No plan is. I can’t tell you for sure that everything in this plan will work exactly as we hope, but I can tell you with complete confidence that a failure to act will only deepen this crisis as well as the pain felt by millions of Americans. My administration inherited a deficit of over $1 trillion, but because we also inherited the most profound economic emergency since the Great Depression, doing too little or nothing at all will result in an even greater deficit of jobs, incomes; and confidence. That is a deficit that could turn a crisis into a catastrophe. And I refuse to let that happen. As long as I hold this office, I will do whatever it takes to put this country back to work.

I want to thank the members of Congress who’ve worked so hard to move this plan forward, but I also want to urge all members of Congress to act without delay in the coming week to resolve their differences and pass this plan.

We find ourselves in a rare moment where the citizens of our country and all countries are watching and waiting for us to lead. It is a responsibility that this generation did not ask for, but one that we must accept for the sake of our future and our children’s. The strongest democracies flourish from frequent and lively debate, but they endure when people of every background and belief find a way to set aside smaller differences in service of a greater purpose. That is the test facing the United States of America in this winter of our hardship, and it is our duty as leaders and citizens to stay true to that purpose in the weeks and months ahead. After a day of speaking with and listening to the fundamentally decent men and women who call this nation home, I have full faith and confidence that we can. And with that, I’ll take your questions.

Bulletin: Baseball star Alex Rodriguez

2009-02-07T11:01:00.001-05:00

Bulletin: Baseball star Alex Rodriguez tested positive for steroids in 2003, sources tell Sports Illustrated.

Bulletin: Supreme Court Justice Ruth

2009-02-05T13:16:00.001-05:00

Bulletin: Supreme Court Justice Ruth Bader Ginsburg has undergone surgery for pancreatic cancer.

Bulletin: Tom Daschle withdraws his

2009-02-03T12:54:00.001-05:00

Bulletin: Tom Daschle withdraws his nomination to be secretary of Health and Human Services.

BREAKING: Blago is Gone-o

2009-01-29T19:41:00.002-05:00

Illinois governor Rod Blagojevich has been unanimously removed from office and permanently barred from ever holding public office in the state of Illinois. No word as to where he, Eliot Spitzer, Ted Stevens, and other disgraced public officials will go for their spring break.

Sources: Rep. Gillibrand to Become Senator

2009-01-22T19:25:00.004-05:00

Bulletin: New York Gov. David Paterson will announce tomorrow who will be replacing Hillary Clinton as New York State Senator.

Late last night, news broke that Caroline Kennedy, rumored to be the number one pick for the seat, withdrew her name from the race citing "personal issues."

**Update: N.Y. Gov. Paterson will name Rep. Kirsten Gillibrand to replace Hillary Clinton in the Senate, a source tells FOX News

Kennedy Out of NY Senate Run

2009-01-21T22:22:00.002-05:00

Bulletin: Caroline Kennedy has pulled her name out of the running for New York's open senate seat. On that same note - Hillary Clinton was official confirmed as Secretary of State today.

Well you can't win them all I guess.... and I'm referring to keeping Clinton way out of the picture. Heck maybe a New Yorker (you know... someone from New York who actually knows a little something about the Empire State and isn't just using it as a leap off point for the White House... not like that worked out anyway) can actually get a senate seat now.

Inauguration: Obama Retakes Oath

2009-01-21T20:37:00.001-05:00

CNN: President Obama has retaken the oath of office after a mix-up during the inaugural ceremony, the White House says.

Inauguration: More Video

2009-01-20T23:01:00.005-05:00

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After Two Years...

2009-01-20T21:26:00.002-05:00

After two very long years it all came down to this - an hour on the front steps of the U.S. Capital in Washington, D.C.

When SmithtownRadio.com launched its political coverage 'January 20, 2009' seemed like a decade away. Well after months of live coverage (from Super Tuesday to the Hofstra Presidential Debate to Election Night), SmithtownRadio.com said farewell to the election/campaign season with a 3-hour long live broadcast today from the auditorium.

There was standing room only in the auditorium and little theatre at noon today as over 700 students and staffed witnessed history first hand - the swearing in of Barack Obama - the first African American to become president of the United States.

Our show has been boiled down to 60 seconds in the above video but that surely does not do justice. Below are some additional links:

>Facebook Video: Super Tuesday Recap
>Facebook Video: Election Season Recap
>YouTube Video: Amanda Boitano's Own Election Montage
>Video: Our Entire 3 Hour Inauguration Coverage
> Part I
> Part II

Bush's Farewell Address

2009-01-15T22:35:00.000-05:00

8:01 P.M. EST

THE PRESIDENT: Fellow citizens: For eight years, it has been my honor to serve as your President. The first decade of this new century has been a period of consequence -- a time set apart. Tonight, with a thankful heart, I have asked for a final opportunity to share some thoughts on the journey that we have traveled together, and the future of our nation.

Five days from now, the world will witness the vitality of American democracy. In a tradition dating back to our founding, the presidency will pass to a successor chosen by you, the American people. Standing on the steps of the Capitol will be a man whose history reflects the enduring promise of our land. This is a moment of hope and pride for our whole nation. And I join all Americans in offering best wishes to President-Elect Obama, his wife Michelle, and their two beautiful girls.

Tonight I am filled with gratitude -- to Vice President Cheney and members of my administration; to Laura, who brought joy to this house and love to my life; to our wonderful daughters, Barbara and Jenna; to my parents, whose examples have provided strength for a lifetime. And above all, I thank the American people for the trust you have given me. I thank you for the prayers that have lifted my spirits. And I thank you for the countless acts of courage, generosity, and grace that I have witnessed these past eight years.

This evening, my thoughts return to the first night I addressed you from this house -- September the 11th, 2001. That morning, terrorists took nearly 3,000 lives in the worst attack on America since Pearl Harbor. I remember standing in the rubble of the World Trade Center three days later, surrounded by rescuers who had been working around the clock. I remember talking to brave souls who charged through smoke-filled corridors at the Pentagon, and to husbands and wives whose loved ones became heroes aboard Flight 93. I remember Arlene Howard, who gave me her fallen son's police shield as a reminder of all that was lost. And I still carry his badge.

As the years passed, most Americans were able to return to life much as it had been before 9/11. But I never did. Every morning, I received a briefing on the threats to our nation. I vowed to do everything in my power to keep us safe.

Over the past seven years, a new Department of Homeland Security has been created. The military, the intelligence community, and the FBI have been transformed. Our nation is equipped with new tools to monitor the terrorists' movements, freeze their finances, and break up their plots. And with strong allies at our side, we have taken the fight to the terrorists and those who support them. Afghanistan has gone from a nation where the Taliban harbored al Qaeda and stoned women in the streets to a young democracy that is fighting terror and encouraging girls to go to school. Iraq has gone from a brutal dictatorship and a sworn enemy of America to an Arab democracy at the heart of the Middle East and a friend of the United States.

There is legitimate debate about many of these decisions. But there can be little debate about the results. America has gone more than seven years without another terrorist attack on our soil. This is a tribute to those who toil night and day to keep us safe -- law enforcement officers, intelligence analysts, homeland security and diplomatic personnel, and the men and women of the United States Armed Forces.

Our nation is blessed to have citizens who volunteer to defend us in this time of danger. I have cherished meeting these selfless patriots and their families. And America owes you a debt of gratitude. And to all our men and women in uniform listening tonight: There has been no higher honor than serving as your Commander-in-Chief.

The battles waged by our troops are part of a broader struggle between two dramatically different systems. Under one, a small band of fanatics demands total obedience to an oppressive ideology, condemns women to subservience, and marks unbelievers for murder. The other system is based on the conviction that freedom is the universal gift of Almighty God, and that liberty and justice light the path to peace.

This is the belief that gave birth to our nation. And in the long run, advancing this belief is the only practical way to protect our citizens. When people live in freedom, they do not willingly choose leaders who pursue campaigns of terror. When people have hope in the future, they will not cede their lives to violence and extremism. So around the world, America is promoting human liberty, human rights, and human dignity. We're standing with dissidents and young democracies, providing AIDS medicine to dying patients -- to bring dying patients back to life, and sparing mothers and babies from malaria. And this great republic born alone in liberty is leading the world toward a new age when freedom belongs to all nations.

For eight years, we've also strived to expand opportunity and hope here at home. Across our country, students are rising to meet higher standards in public schools. A new Medicare prescription drug benefit is bringing peace of mind to seniors and the disabled. Every taxpayer pays lower income taxes. The addicted and suffering are finding new hope through faith-based programs. Vulnerable human life is better protected. Funding for our veterans has nearly doubled. America's air and water and lands are measurably cleaner. And the federal bench includes wise new members like Justice Sam Alito and Chief Justice John Roberts.

When challenges to our prosperity emerged, we rose to meet them. Facing the prospect of a financial collapse, we took decisive measures to safeguard our economy. These are very tough times for hardworking families, but the toll would be far worse if we had not acted. All Americans are in this together. And together, with determination and hard work, we will restore our economy to the path of growth. We will show the world once again the resilience of America's free enterprise system.

Like all who have held this office before me, I have experienced setbacks. There are things I would do differently if given the chance. Yet I've always acted with the best interests of our country in mind. I have followed my conscience and done what I thought was right. You may not agree with some of the tough decisions I have made. But I hope you can agree that I was willing to make the tough decisions.

The decades ahead will bring more hard choices for our country, and there are some guiding principles that should shape our course.

While our nation is safer than it was seven years ago, the gravest threat to our people remains another terrorist attack. Our enemies are patient, and determined to strike again. America did nothing to seek or deserve this conflict. But we have been given solemn responsibilities, and we must meet them. We must resist complacency. We must keep our resolve. And we must never let down our guard.

At the same time, we must continue to engage the world with confidence and clear purpose. In the face of threats from abroad, it can be tempting to seek comfort by turning inward. But we must reject isolationism and its companion, protectionism. Retreating behind our borders would only invite danger. In the 21st century, security and prosperity at home depend on the expansion of liberty abroad. If America does not lead the cause of freedom, that cause will not be led.

As we address these challenges -- and others we cannot foresee tonight -- America must maintain our moral clarity. I've often spoken to you about good and evil, and this has made some uncomfortable. But good and evil are present in this world, and between the two of them there can be no compromise. Murdering the innocent to advance an ideology is wrong every time, everywhere. Freeing people from oppression and despair is eternally right. This nation must continue to speak out for justice and truth. We must always be willing to act in their defense -- and to advance the cause of peace.

President Thomas Jefferson once wrote, "I like the dreams of the future better than the history of the past." As I leave the house he occupied two centuries ago, I share that optimism. America is a young country, full of vitality, constantly growing and renewing itself. And even in the toughest times, we lift our eyes to the broad horizon ahead.

I have confidence in the promise of America because I know the character of our people. This is a nation that inspires immigrants to risk everything for the dream of freedom. This is a nation where citizens show calm in times of danger, and compassion in the face of suffering. We see examples of America's character all around us. And Laura and I have invited some of them to join us in the White House this evening.

We see America's character in Dr. Tony Rehcasner, a principal who opened a new charter school from the ruins of Hurricane Katrina. We see it in Julio Medina, a former inmate who leads a faith-based program to help prisoners returning to society. We've seen it in Staff Sergeant Aubrey McDade, who charged into an ambush in Iraq and rescued three of his fellow Marines.

We see America's character in Bill Krissoff -- a surgeon from California. His son, Nathan -- a Marine -- gave his life in Iraq. When I met Dr. Krissoff and his family, he delivered some surprising news: He told me he wanted to join the Navy Medical Corps in honor of his son. This good man was 60 years old -- 18 years above the age limit. But his petition for a waiver was granted, and for the past year he has trained in battlefield medicine. Lieutenant Commander Krissoff could not be here tonight, because he will soon deploy to Iraq, where he will help save America's wounded warriors -- and uphold the legacy of his fallen son.

In citizens like these, we see the best of our country - resilient and hopeful, caring and strong. These virtues give me an unshakable faith in America. We have faced danger and trial, and there's more ahead. But with the courage of our people and confidence in our ideals, this great nation will never tire, never falter, and never fail.

It has been the privilege of a lifetime to serve as your President. There have been good days and tough days. But every day I have been inspired by the greatness of our country, and uplifted by the goodness of our people. I have been blessed to represent this nation we love. And I will always be honored to carry a title that means more to me than any other - citizen of the United States of America.

And so, my fellow Americans, for the final time: Good night. May God bless this house and our next President. And may God bless you and our wonderful country. Thank you. (Applause.)

END 8:14 P.M. EST

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Return to this article at:
http://www.whitehouse.gov/news/releases/2009/01/20090115-17.html

Witness History Firsthand and Live

2009-01-13T18:31:00.002-05:00

Join SmithtownRadio.com and the Political Awareness Club for a live viewing of President-elect Obama's Inauguration on the steps of the U.S. Capital in Washington D.C. next Tuesday.

The event will be aired live on SmithtownRadio.com and projected on a big screen in the auditorium.

The event begins at 11:30 a.m. Our coverage begins, and doors to the auditorium will open, at 11 a.m. for a pre-show and political dialog.

ONLY STUDENTS ACCOMPANIED BY A CLASS WILL BE ADMITTED. So please talk to your period 6-9 teachers about it. They will be receiving information regarding the viewing from the main office via e-mail shortly.

For those of you not enrolled as a student, you can of course join in our conversation on the SmithtownRadio.com Political Blog and in our live listener chat room.

Coverage will be simulcast on http://www.thematadoronline.com/.

CNN's Dr Sanjay Gupta may

2009-01-06T16:08:00.001-05:00

CNN's Dr Sanjay Gupta may become Obama's Surgeon General

2008-12-31T21:40:00.002-05:00

Happy New Year from Times Square!

Auto Bailout Passes House

2008-12-10T21:05:00.002-05:00

Bulletin: The House of Representatives has passed $14 billion bailout for Detriot's Big three automakers

If It's Sunday... It's Time for Gregory

2008-12-07T14:07:00.002-05:00

David Gregory has been named the host of NBC's "Meet the Price." Tom Brokaw took over hosting duties for the late Tim Russert several months ago until a permanent replacement could be found.

Hopes of Dem. Filibuster Shattered

2008-12-02T21:09:00.000-05:00

CNN: GOP Sen. Saxby Chambliss wins a Georgia runoff, ending Democratic hopes of a filibuster-proof majority, CNN projects.

Who is the 'Bureau of Economic Research'

2008-12-01T21:16:00.002-05:00

On Monday, the Bureau of Economic Research annouced the U.S. has been in a recession since December of 2007. Who is the Bureau of Economic Research... excellent question...:

"The Business Cycle Dating Committee of the National Bureau of Economic Research met by conference call on Friday, November 28. The committee maintains a chronology of the beginning and ending dates (months and quarters) of U.S. recessions. The committee determined that a peak in economic activity occurred in the U.S. economy in December 2007. The peak marks the end of the expansion that began in November 2001 and the beginning of a recession. The expansion lasted 73 months; the previous expansion of the 1990s lasted 120 months. "

"The National Bureau of Economic Research (NBER) is a private, nonprofit research organization dedicated to studying the science and empirics of economics, especially the American economy. "

"The NBER was founded in 1920. Its first staff economist and Director of Research was Wesley Mitchell. Simon Kuznets was working at the NBER when the U.S. government asked him to help organize a system of national accounts in 1930, which was the beginning of the official measurement of GDP and other related indices of economic activity. Due to its work on national accounts and business cycles, the NBER is well-known for providing start and end dates for recessions in the United States."
>http://wwwdev.nber.org/cycles/dec2008.html

Hillary to Be Obama's Sec. of State

2008-11-20T22:38:00.001-05:00

CNN is report that President-elect Obama is expected to nominate Hillary Clinton as Sectary of State after Thanksgiving.

Developing: Attorney General Collapses

2008-11-20T22:37:00.001-05:00

Attorney General Michael Mukasey collapses in DC while giving speech, developing story...

Ted Stevens Defeated

2008-11-18T21:29:00.001-05:00

CNN: Alaska Sen. Ted Stevens defeated for re-election by Democrat Mark Begich, according to release from Begich's campaign

The Matador: Hot off the Press!

2008-11-14T10:01:00.001-05:00

SmithtownRadio.com's co-political directors Dean Laurence and Amanda Boitano wrap up the entire election season in a special President Election pull-out in the all new edition of The Matador, available in English classes and anytime on www.TheMatadorOnline.com.

Update

2008-11-04T21:02:00.003-05:00

It has been reported that Mr. Brannigan's senior year high school prom date is in Chicago among voters and supporters by the lake. It's expected to be a "slamin'" party.

In addition, her brother - Internet Director for the Obama campaign - has confessed to wanting to throw up from the tension.

We'll check back with Chicago later in the night. Unless Mr. Brannigan falls asleep -- then we'll check back tomorrow.

Election Night Coverage

2008-11-04T20:28:00.002-05:00

Just wanted to let you know that your coverage so far has been great. Voter turnout in my neck of the woods was heavy at 6am when I voted and continues to be heavy as late as 8:30 pm when I last past my polling place in the Port Jeff Station area .

Keep up the good work.

Kings Park -- Update

2008-11-04T18:32:00.003-05:00

Mid-afternoon voting was light and elderly at William T. Rodgers Middle School. The San Remo district of Kings Park saw long lines in the gym, while the other district had little-to-no foot traffic.

One voting machine was taken out of use due to faulty gears.

One elderly gentleman was given preferred treatment. An election inspector allowed the aged voter to cut the line, yet this caused a problem. As each voter signed in, their party affiliation and their number in the booth was recorded. So, in short, the man whose spot the old fellow took was of a different party.

In addition to this brief election snapshot, there were no baked goods for sale by the PTA.

Many see this snack slight as a sign that the economy is still in trouble, and people are tightening their belts. While others feel this is confirmation that there is no god.

Live Election Coverage

2008-11-04T15:38:00.001-05:00

Be sure to join SmithtownRadio.com's James Brierton, Megan Russ, Dean Laurence and Amanda Boitano for LIVE ELECTION COVERAGE beginning at 7 pm et. They'll be broadcasting until all the results are in. As well, they'll be taking your calls and e-mails. So be sure to log onto www.SmithtownRadio.com to join the interactive broadcast!

Cool Stuff

2008-10-29T22:55:00.001-04:00

Just thought this was cool and wanted to share it: http://www.cnn.com/2008/POLITICS/10/28/typography.irpt/index.html

"Barack Obama Political Message"

2008-10-28T21:49:00.004-04:00

The "Barack Obama Political Message," as it is being called, will air tomorrow night at 8 pm et on CBS, NBC, FOX and MSNBC.

The 30-minute advertisement was paid for by Obama's campaign.

ABC will be showing a new episode of Pushing Daises... whatever that is.

I guess McCain feels no need to follow suit. I wonder what the ratings on this will be...?

Update: Won't FOX being showing the World Series game? As well, for those interested, BET and Univision will also air the "political message," or as CBS.com calls it: BARACK OBAMA PAID POLITICAL MESSAGE (tentative title) ... yes the tentative title part is actually in there...

Update Update: Reuters: "Obama's television broadside may also force a 15-minute delay in the Fox network's broadcast of the fifth game of the World Series -- the fiercely-followed championship of U.S. Major League Baseball -- coincidentally between teams from Pennsylvania and Florida, states that are both major battlegrounds in the November 4 election."

As well, the report says tomorrow is also the anniversary of "Black Tuesday, " the infamous day in which the stock market crashed in 1929.

The Election Will Be Here Sooner Than You Think

2008-10-23T11:17:00.001-04:00

Especially as an East student with next Tuesday and Wednesday's mock election.

Social study teachers will be taking their students to cast their votes next week on one of the two days. The Leadership class, which is organizing the election, tell us the results will be available a short time after the polls close.

Will East lean blue like the rest of the state? We'll find out next week. We'll be sure to post the results once we have them.

TheMatadorOnline.com Launches Elect '08

2008-10-22T14:37:00.002-04:00

With less than two weeks until Election Day, www.TheMatadorOnline.com has launched Elect '08. The page houses all the latest political and election news from Reuters, CNN and from The Matador Online newsroom.

www.SmithtownRadio.com will have live Election Night coverage on November 4th.

Live from Hofstra... maybe not the smarest idea

2008-10-16T22:50:00.005-04:00

Maybe not the smartest but we loved it...

For those of you who tuned in for the live pre-date show than you know the night's excitement.

To make a long story short, a group of anti-war Iraq vets rallied up about 250 protesters and stormed toward a police barricade. The vets were demanding access to the debate and supporting them was the crowd, chanting "Let them in!"

The protesters marched across four lanes of traffic on Hempstead Turnpike to meet face to face... or maybe more nose to nose... with police horseback and tactical officers. They were eventually pushed back across the street... where they then chanted "Shame on you!"

The AP is reporting 15 protesters were arrested and at least one injured.

We've compiled some of our materia together to bring you inside the action:

>RAW Protest footage (by Dean Laurence)
>Edited Protest Footage (by Dean Laurence)
>Our Apperance on CNN.com Live (about 2:30 in)
>Photo gallery of protest (by Dean Laurence)
>Man on the Street: Speaking with protesters (by Megan Russ, James Brierton, Dean Laurence, Amanda Boitano)
>Podcast: Pre-Debate Show w\ James Brierton, Amanda Boitano, Dean Laurence and Megan Russ

*NEW: iReports Witness Protests at Prsidential Debate (by James Brierton / iReport.com blog)

PS: I still have no idea who won Project Runway... oh well

Debate the Debate!

2008-10-15T08:24:00.003-04:00

With the presidential candidates meeting for one last time on Long Island - history could be made in our own backyards.

SmithtownRadio.com will be broadcasting live from Hofstra this evening with a special Pre-Debate show airing at 8:30 p.m. et. We'd like to use some of your comments on air so feel free to start debating early.

To join the debate click "Comments" below...

Debate the Debate is BACK!

2008-10-14T21:55:00.001-04:00

SmithtownRadio.com and TheMatadorOnline.com's Political Blog will again host Debate the Debate for Wednesday's debate at Hofstra.

Comments will be shared throughout on the night on SmithtownRadio.com. Coverage begins LIVE at 8:30 p.m. from outside the debate hall!

A fresh thread will be posted Wednesday afternoon to begin the dicussion.

LIVE from Hofstra

2008-10-10T22:47:00.001-04:00

James Brierton, Dean Laurence and Megan Russ will have LIVE coverage of this Wednesday's third and final presidential debate live from Hofstra University.

Be sure to join them on the live stream for live coverage and be sure to join the rest of our political staff here on the blog to 'Debate the Debate!'

Palin Abused Her Power

2008-10-10T20:36:00.001-04:00

An Alaskan legislative panel has found Gov. Sarah Palin abused her power in the firing of a state official but she did not violate the law.

Thoughts?

Forget Green… Nassau Goes Blue

2008-10-08T19:45:00.001-04:00

from walkradio.com...
Nassau County has now joined much of the rest of the state in terms of its political stance.

Registered Democrats now outnumber Republicans in Nassau County, once one of the country’s foremost Republican strongholds.

The historic shift in voter registration “marks a watershed event in the national political landscape,” said Party Chairman Jay Jacobs on Wednesday.

The county’s move comes just a week for Democratic Sen. Barack Obama and Republican Sen. John McCain will debate in Nassau for the third and final presidential debate. The debate will be held next Wednesday at Hofstra University.

For decades the county had been such a Republican stronghold that President Ronald Reagan once said, “When a Republican dies and goes to heaven it looks a lot like Nassau County.”

The county’s shift can be traced back to 2001 when County Executive Tom Suozzi took office.

As of Tuesday, Democrats outnumbered registered Republican voters by 118 votes. In 2002, the Republican had the stronghold by more than 66,000 votes.-The AP contributed to this report

Ask and You Shall Recieve

2008-10-08T08:15:00.000-04:00

Our Political Blog exploded last night when we asked you to debate the debate with us.

Comments flowed into the joint venture from SmithtownRadio.com and TheMatadorOnline.com throughout the debate.

"Obama doesn't approve of the idea of helping the upper class make jobs for the middle class? Booooo," said a reader by the name of Andrew.

"Agreed. He seems to belive it's the federal governments job to create jobs. Funny i don't see anything about government getting involved in the market anywhere in the constitution," said Steve, another reader responding to Andrew's comment. "Alot of talk about Energy tonight. Seems interesting."

SmithtownRadio.com's Scott Springer was not so sure, "I personally don't agree with the whole trickle-down theory Andrew and Steve seem to be supporting. It appears to me that the lack of government intervention and moderation in the private sector is what has driven our economy to the shambles it is in now," said Springer, co-host of SmithtownRadio.com's Sports Talk. "Regardless, I'm enjoying the setup of the town meeting style debate as well as the presence of a competent moderator."

Another SmithtownRadio.com personality also chimed in, "Overall, I think Obama is making a better impression," said co-political director Amanda Boitano. "He's not fumbling around for words and he's speaking in a more booming, forceful voice. He's showing much more confidence, and that is reassuring."

Tonight's most prolific blogger was a reader by the name of Jonathan: "Sorry McCain...you propose storing nuclear spent fuel rods in Nevada but refuse to allow it to pass through your home state of Arizona and you want me to think that you believe it's still safe?"

Smithtown alumni even joined in on last night's debate. Former editor-in-chief of The Matador and 2006 graduate Laruen Weiss wrote in: "Ok, they need to stop bringing up Achmadinejad and the whole 'no pre-conditions' thing because they continuously misinterpret what Obama said. This has to be the fourth time McCain or Palin has brought this up in debate! Ridiculous."

Readers are still invited to chime in by clicking the Political Blog button on our homepage. The blog, launched earlier in the election season, brings readers the latest dirt and discussion from the political front.

Presidential Debate 2.0

2008-10-07T20:03:00.004-04:00

Tonight at 9 pm et on www.SmithtownRadio.com the presidential candidates will meet again for the 2nd Presidential Debate.

During and after the debate be sure to leave your comments here on the Political Blog and be a part of the [heated] discussion!!!

Bush Signs Bailout Bill

2008-10-03T16:44:00.003-04:00

enough said...

Second time's a charm... the House passed the $700 billion bailout bill earlier today.

The Senate passed it in one try earlier this week after making some amendments and adding some "sweetners." I'm sooo happy those children will be getting those wooden arrows to play with now :)

VP Debate

2008-10-02T22:29:00.002-04:00

Have thoughts after tonight's one and only VP debate? Click comment and share your thougts...

LIVE: Sentate to Vote on Bailout

2008-10-01T17:49:00.002-04:00

SmithtownRadio.com is working hard to bring you all the latest on the Economic Crisis as news continues to development.

On Monday night, SmithtownRadio.com Co-Political Director Amanda Boitano and Kevin Perry, former Editor-in-Chief of The Matador and now a Special Correspondent for SmithtownRadio.com, joined me for a special broadcast following the crash on Wall Street and the rejection of the bailout bill in the House. With the Senate voting tonight on a newly revised bailout bill, Kevin and I will again take to the mic to bring you all the latest.

The Senate (which is never very specific with their schedules on these things) is set to vote on the bill tonight. We suspect at some point during the 8 pm et hour to begin our coverage. We'll bring you live audio from the Senate floor, as well as the latest analysis of the bill.

I hope you'll join Kevin and I later tonight on www.SmithtownRadio.com.

Dow Closes Up Tues

2008-09-30T16:18:00.001-04:00

The Dow closed up 485 points Tuesday, an increase of 4.68%. Tuesday's closed marked one of the biggest single day climbs in history.

Investors are said to be optimistic that the government will pass a bailout bill shortly.

Congress is expected to reexamine the controversial $700 billion bailout bill later this week.

The Dow closed down nearly 778 points down Monday, the equivalent of $1.2 trillion in market value and a 7% drop. Monday marked the worst single day point loss ever – even topping the 648 points loss on September 17, 2001 – the first day of trading after the September 11 attacks.

Stocks took a nose dive Monday after speculation began to spread that the House of Representatives would vote down the controversial bailout plan – which they did – 228-to-205 – just after 2 pm et Monday.

Hillary to Replace Biden?

2008-09-29T20:46:00.001-04:00

"Several US websites are today claiming vice-presidential candidate Joe Biden is set drop out of the US election to be replaced by Hillary Clinton on the Democratic presidential ticket."
http://www.belfasttelegraph.co.uk/news/politics/biden-to-be-replaced-by-hillary-on-obama-ticket-13985924.html

Thoughts...?

Breaking News: House Rejects Bailout Plan

2008-09-29T14:50:00.000-04:00

The Dow is down about 500 points following a 228-to-205 vote in the House of Representatives that rejected the 700 billion bailout plan. The Senate is scheduled to vote on the bill Wednesday.

BREAKING NEWS: Palin's Daughter Pregnant

2008-09-01T13:31:00.003-04:00

It is now being reported by all major news networks that Bristol Palin, the 17-year-old daughter of GOP VP pick Sarah Palin, is pregnant.

A representative is stating that Bristol is five months into her pregnancy, will keep her child, and is planning on marrying the father, known only as Levi.

This was announced as a response to rampant internet rumors that Trig, Sarah Palin's fifth child, is actually her grandchild. Bloggers are claiming that Trig is Bristol Palin's first child. The Palin family as well as McCain reps have openly denied these claims.

BREAKING NEWS: McCain VP Choice

2008-08-29T10:47:00.002-04:00

Sen. McCain has chosen Alaskan Gov. Sarah Palin as his VP choice for his race to the White House

Barack's Big Night

2008-08-28T23:19:00.003-04:00

As I sit here, the CNN camera is panning out on Invesco field and the DNC has officially come to a close. What a fascinating, thought at sometimes extremely boring, 4 days it has been. I can't say I watched the whole thing because I honestly would blow my brains out if I had to hear speech after speech from local congressmen from Nowheresville, Iowa. I did check out the "Big 4" speeches though. Michelle Obama, Hillary Clinton, Bill Clinton and last but not least Barack Obama.

Michelle Obama's speech was kind of hokey but it spoke about Barack's character. I personally do not find Michelle Obama too compelling but I think she got the job done and made a safe speech that was presented well. I was impressed as I had never seen her speak on such a large scale before and I thought she did quite well. It wasn't anything too memorable though and as I sit here 4 days later I am having trouble recalling anything major, so let's move on.

I have to confess, I am hot for Hillary. I thought she made an excellent speech throwing her support fully behind Obama while chronicling her historic campaign. Many argued that she didn't do enough to make the case for why exactly we should be voting Obama other than he is the "lesser of two evils" but I feel that really isn't her job. She worked to unite the party, pleged her support but the only one who can truly convince voters to vote Barack Obama is Barack Obama himself. Overall I felt it was a very good speech (not to mention her orange pantsuit was quite flattering)

Next came Bill Clinton. Bill has always been an excellent orator and this time he did not disappoint. In stark contrast to his wife he came out attacking John McCain and defending Barack Obama to the point that he drew many parallels between his own 1992 campaign and Obama's. He went on the offensive and refute claims that Obama is too young, too unexperienced etc. Bill's speech style of drawing parallels was very effective especially with his McCain attacks sprinkled in. I think it was a complete 180 degree turn from the lukewarm attitude he had towards Obama just a few weeks ago and regardless of whether Clinton's speech was genuine or not I think it was A+. He made a lot of stupid moves during Hillary's campaign but I think this was a redeemer.

The most anticipated event of this evening was Barack Obama's speech to accept the nomination. I must admit, I have been reluctant to accept Obama. While I agree with his policies I have been on the "not enough experience" bandwagon, not to mention I have yet to find anyone who can name anything notable he has ever done in the senate. I was weary of his general speeches that preached idealism and hope (which is great) but lacked a clear path to get there. Tonight I sat down expecting a trademark Obama optimist speech, but I was pleasantly surprised. Instead of hiding from McCain's criticism Obama took it head on point by point and refuted every attack used against him by the GOP and backed up his point with specifics and numbers (two things I like). It wasn't as enthralling as his previous speeches, but it did the job and I feel it cleared up any doubt for a lot of people. I still have my doubts, but I'm glad he can move past the hope and change to get to the real substance and meat of the issues. I now have much more confidence in Barack Obama and am glad to see the Democratic party united as so many had feared it would not be. Now don't get me wrong I liked the speech tonight and I liked that he confronted each issue head on, but I think he has a long way to go and I'm really interested to see how the debates play out.

Four days later, I can't say I have started to drink the Obama Kool-Aid but as someone who was very skeptical of Obama's plans and ability to execute those plans I do feel better about him being the nominee and I hope Barack can continue to prove himself so I can fully support him and the change we all need.

Democratic National Convention

2008-08-24T23:10:00.000-04:00

Programming Note:
The final episode of SmithtownRadio.com Live will air Monday night at 8 pm et from the CNN Center in Atlanta and the SmithtownRadio.com studios on Long Island. In addition to weekly programming, the show will feature coverage of the opening night of the Democratic National Convention in Denver.

Breaking News: Obama Chooses VP

2008-08-23T08:00:00.002-04:00

Sen Barack Obama has chosen Sen Joe Biden as his VP candidate.

Aussies or Pansies?!?

2008-06-20T08:45:00.002-04:00

Ah, Gordon Ramsay. The foul-mouthed celebrity chef who seemingly takes as much pleasure in breaking down his protege cooks as he does a chicken for stock, has offended Australia's politicians.

A recent article in the London Times report that Australia's parliament has launched an inquiry and is recommending an overhaul of broadcast standards in an effort to protect viewers from objectionable language on television.

All this from a country founded by criminals. Why this offense of sensibilities? Was it the sting-ray execution of Steve 'Crocodile Hunter' Irwin that has so rattled the citizens of the land down under? Could it be that the country's greatest export - The Wiggles - have somehow softened the steely resolve? No longer a 'g'day, mate' -- but a 'good day friend.' Put not another shrimp on the Barby -- rather put a wimp over a low heat so as not to cause harm or hurt.

I actually have no point here. But it's a sad day when everyone is going soft all over the world. Thank god the Russians are still poisoning ex-KGB agents!

http://www.timesonline.co.uk/tol/news/world/article4175687.ece

Al Gore Endores Obama

2008-06-16T21:40:00.003-04:00

Just in: Al Gore has endorses Sen. Obama.

A little sucking up on Gore's part in hopes of being VP again....? Maybe? Let's get a list of potential VPs going...

NBC's Tim Russert Dies

2008-06-13T17:54:00.002-04:00

NBC Washington Bureau Chief and host of "Meet the Press" died earlier today. 58-year-old Tim Russert was working in the bureau when he collapsed and was taken to a local hospital. A family spokesperson has confirmed Russert died of an apparent heart attack. Longtime NBC Anchor Tom Brokaw says Russert's death came during a political campaign that "he loved."

-The AP contributed to this report

Clinton Ends Bid for White House

2008-06-07T13:09:00.002-04:00

Clinton ends bid for White House. Endorses Obama.

Reporting from the Bronx...

2008-06-06T19:03:00.002-04:00

HSE was just recognized as a top fundraiser for NY Blood Assc. @ Yankee Stadium. -James reporting from the Bronx

Hello Kevin Perry! Hello Mr. Nadramia!

2008-06-05T10:19:00.006-04:00

The Political Blog would like to welcome The Matador's Co-Editor-in-Chief Kevin Perry to the blog, as well as SmithtownRadio.com advisor Mr. Nadramia!

>Kevin's already left his first mark on the blog...
>Click here to view Kevin's profile

>Click here to see Mr. Nadramia's profile

(ps: That's a photo of Kevin... not Nadramia... but I'll see what I can dig up... maybe Gallucci can help me with that...)

Will she finally quit...?

2008-06-04T22:38:00.002-04:00

Sources tell CNN, ABC News and other major news networks that Clinton will drop out of the race for the White House before Friday. Unlike yesterday (where her campaign fired back at an AP report complaining a similar fate), there has been no word from the Clinton camp about today's reports. (You know... maybe she just didn't step down last night in order to make the AP look bad...)

Anyway, now the question remains - VP Clinton? I doubt it - she's too big on herself to hold such a title... but we'll see...

Send in your comments - we want to see what you think...

Clinton Does Not Concede

2008-06-03T22:09:00.002-04:00

Despite the fact that Sen. Clinton gave a lengthy, passed tense speech to supporters in New York City minutes after the news networks gave Sen. Obama the victory, Sen. Clinton did not concede the race, as the AP had reported earlier today she would. She told supporters that she would not be making a deciding whethe to carry on or not tonight.

Obama Wins Democratic Nomination, News Networks Project

2008-06-03T21:25:00.002-04:00

Projects by major news networks shows that Sen. Obama has enough delegates to win the democratic nomination.

Still no word if Clinton will concede the race as the AP reported earlier today...

More news as it warrants on the blog and on SmithtownRadio.com! Let us know what you think! Leave us a comment and it may find its way on-air!

Developing: Clinton Conceding?

2008-06-03T11:42:00.002-04:00

The AP is reporting that Sen. Clinton will conceded the race for democratic delegates tonight. Within minutes of the news breaking, the Clinton campaign fired back and said they were not ready to admit defeat.

Tonight are the final two democratic primaries - Montana & South Dakota. Obama currently has 2,076 delegates while Clinton has only 1,917. In the race for super delegates, Obama has 335 to Clinton's 293. A candidate needs 2,118 to win the nomination.

More on this story throughout the day and evening...

Smithtown Budget Vote '08

2008-05-19T14:06:00.003-04:00

As an aside, SmithtownRadio.com will be covering Tuesday night's budget vote for the Smithtown Central School District live.

Juniors James Brierton and Amanda Boitano will kick-off coverage at 9 p.m. ET from the SmithtownRadio.com Election Center. Junior Dean Laurence will be reporting live from Election Headquarters at the New York Ave. school administration building. Junior Megan Russ will also be contributing. Mr. Brannigan will be acting as facility advisor to the night's coverage.

Listeners are invited to participate in our coverage by commenting here on the blog! Your responds may even be read on-air!