President Obama went to Capitol Hill on Wednesday,Obama touts $3.6 trillion spending outline

President Obama went to Capitol Hill on Wednesday to rally support among skeptical Senate Democrats for his $3.6 trillion spending plan, focusing attention on the core initiatives that unite the party while downplaying the issues that divide it.



Centrist Democrats who have complained that Obama's spending plan would drive the annual budget deficit to unacceptable levels held their tongues during the 45-minute lunchtime meeting. They asked no questions about deficits or about the administration's controversial push to force its signature investments in health care and education through the Senate without Republican votes.

Despite the meeting's friendly tone, tensions over those issues continued to simmer as budget leaders in both chambers worked on competing blueprints that would trim Obama's spending request and sharply curtail his plans for tax cuts - all in an effort to lower deficits over the next five years.

While acknowledging the adjustments to Obama's budget request, Democrats cheered the fact that budget leaders in both chambers would permit Obama's most ambitious and costly initiatives on health care, education and climate change to move forward as long as they do not interfere with deficit reduction.

Welcome unity

"There has to be some realism here," said Sen. Chuck Schumer, D-N.Y. "We're all unified on four main goals ... and that is not easy to do."

White House Budget Director Peter Orszag also claimed victory on the most significant aspects of the president's agenda.

"We are very pleased that the House and Senate budget committees are taking up resolutions that are fully in line with the president's key priorities," Orszag said. The blueprints under consideration "may not be identical twins to what the president submitted, but they are certainly brothers that look an awful lot alike."

In the House, Budget Committee Chairman John Spratt, D-S.C., unveiled a spending plan that would slice more than $150 billion from Obama's proposal for the fiscal year that begins in October, reducing next year's deficit to $1.22 trillion, compared with $1.38 trillion under Obama's request. The House blueprint would cut the deficit to just under $600 billion by 2014, forcing the government to borrow $3.9 trillion over the next five years - about $500 billion less than Obama's proposal.

Much of the savings for next year would come by jettisoning Obama's plan to spend more on the Treasury Department's financial-sector bailout, a move that would reduce the deficit but would not prevent the president from seeking the cash.

Other trims

Spratt also rejected Obama's proposal to extend a tax break for businesses that lose money. And he trimmed $7 billion from a funding request for other government agencies, with the bulk of the reduction targeting international programs.

The House proposal would make bigger changes in future years, slicing another $60 billion from Obama's request for nondefense programs and rejecting the president's proposal to permanently exempt millions of middle-class families from the expensive alternative minimum tax.

Like the Senate, the House also scrapped Obama's plan to extend an $800 tax cut for working families that was temporarily enacted in the economic stimulus package.

The House and Senate budget committees expect to vote on their budget plans today and send them to their respective chambers for approval next week. Differences between the two chambers would then have to be resolved in a conference committee after the Easter break.

Obama would not have to sign the resulting resolution, which would not have the force of law. But it would set guidelines for lawmakers as they craft spending bills and draft legislation to implement Obama's policies.

Also Wednesday, Obama endorsed a fellow Democrat in a competitive special congressional election and was the main draw at two Democratic National Committee fundraisers.

"Sign up and pitch in to elect Scott Murphy to Congress," the president implored in an early morning e-mail to at least 50,000 people in New York's 20th Congressional District. Tying his agenda to the election's outcome, he added that electing Murphy would "make a big impact on my efforts to bring about a lasting economic recovery."

By evening, Obama headlined two fundraisers in Washington expected to bring in an estimated $3 million.



News Source : sfgate.com

President Obama went to Capitol Hill on Wednesday,Obama touts $3.6 trillion spending outline

Seven English Councils Have Been Accused Of "Negligence"

Seven English councils have been accused of "negligence" for putting money into Icelandic banks days before they went bust last October.

The authorities paid nearly £33m into the banks between 30 September, when their credit ratings were downgraded, and 7 October when they collapsed. The Audit Commission criticised Kent County Council, which it found had paid in £8.3m in early October. Kent said it had been open about its conduct and hoped to get the cash back. But the fate of the £954m deposited by councils and other public bodies in Icelandic banks remains uncertain.

'Great concern'

These investments do not have the same protection as individual deposits in Icelandic banks, guaranteed by British ministers after the meltdown of Iceland's banking system. Although the overall amount of money at risk accounts for just 3% of councils' total cash reserves, 18 authorities have more tied up in Icelandic banks than in their own reserves. Spending watchdog the Audit Commission said most councils had "heeded warnings" about the declining credit worthiness of Icelandic banks during 2008 and taken action accordingly. However, it said that some had ignored the risks while a handful had behaved "negligently". It reserves particular criticism for institutions which continued to deposit money after 30 September, when the credit ratings of Glitnir and Landsbanki were downgraded to "adequate" - below that deemed acceptable under guidance to town halls. According to the commission, the South Yorkshire Pensions Authority deposited £10m on 2 October while Kent County Council made two deposits totalling £8.3m on 1 and 2 October. Other councils which made deposits during the period in question were: North East Lincolnshire Council, Redcar and Cleveland Borough Council, Restormel Borough Council, the London Borough of Havering and Bridgnorth District Council. Alleged mistakes by authorities included the failure, by one, to open an e-mail notifying it of the ratings change, use of obsolete information and exceeding limits for deposits in a single bank. "There is no doubt that the circumstances leading up to the collapse of Icelandic banks were highly exceptional but the potential loss of nearly a billion pounds is of great concern," said Steve Bundred, chief executive of the Audit Commission - which itself deposited £10m in Icelandic banks. The affair highlighted the "variable standards" within finance departments when it came to managing council investments. "Good treasury managers recognised those risks and managed them appropriately," Mr Bundred added. "Others either did not appreciate the risks or underestimated their significance." The Local Government Association, which represents 300 councils in England and Wales, said councils which deposited money after 30 September had carried out reviews as to why this took place, adding that some were contractually obliged to do so. It stressed that three out of four English councils had no money tied up in Icelandic banks while the total amount of deposits halved between January and October 2008. "The events of last October were part of a bigger financial crisis that affected not just councils but also other parts of the public sector as well as charities, businesses, savers and the Audit Commission itself," said LGA chairman Margaret Eaton. Kent County Council said it had been open about its conduct, admitting it had mistakenly made a £3.3m deposit on 1 October, and argued the commission needed to address its own situation. "The position and language used by the Audit Commission is quite extraordinary," said Councillor Nick Chard, the council's cabinet member for finance. "It really is a case of the pot calling the kettle black. "I find this a convenient smokescreen for the Audit Commission which has twice the level of exposure in Icelandic Banks that Kent County Council has".

Investment advice

After the extent of councils' financial exposure became clear, ministers identified about a dozen local authorities that might face short-term problems as a result of the Icelandic situation. Trouble-shooters were sent to three councils but it later emerged that none had required emergency financial assistance. Ministers were also forced to defend their investment advice to councils, describing it as "prudent and sensible". It is still hoped that much of the money will be recovered. Administrators for Heritable, the UK arm of Landsbanki and UK-based Kaupthing, Singer and Friedlander have indicated the banks may have sufficient assets to cover the bulk of liabilities. Officials from the Treasury and the Icelandic government have held a series of meetings to try and resolve the crisis after it led to a short-lived diplomatic spat last autumn.

Sews Source :news.bbc.co.uk

Seven English Councils Have Been Accused Of "Negligence"

A Suicide Bombing In North-Western Pakistan

At least five people have been killed in a suicide bombing in north-western Pakistan, local officials say.

About 20 people were also reported to have been injured in the explosion at a restaurant in the town of Jandola in South Waziristan. Officials said a group of militants opposed to Pakistan's top Taleban commander had been in the restaurant. Violence in Pakistan has surged in recent months amid a wave of attacks blamed on Islamist militants. Some of the injured were reported to be in a critical condition, and officials said the number of dead was expected to rise. The South Waziristan region is dominated by local Taleban warlord Baitullah Mehsud, who has been accused of plotting the 2007 assassination of former Prime Minister Benazir Bhutto. The attack targeted supporters of Turkistan Bittani, a pro-government tribal leader who is a rival of Mehsud. Bittani was not in the restaurant at the time of the attack. The blast comes a day after a US drone killed seven militants in the same area. Correspondents say that more than 35 similar strikes have killed more than 340 people in Pakistan since August 2008, shortly before the election of President Asif Ali Zardari.

News Source : news.bbc.co.uk

A Suicide Bombing In North-Western Pakistan

Taiwanese Former President Chen Shui-bian Goes On Trial

The trial of Taiwanese former President Chen Shui-bian on corruption charges has opened in the capital, Taipei.

Mr Chen, 57, denies accusations that he and his wife made millions of dollars through forgery and money laundering. He says he is a victim of a "government purge" and that he does not believe he will receive a fair trial. Since leaving office in 2008, Mr Chen has been a vocal critic of the new government's support for China, which claims sovereignty over Taiwan. Mr Chen, his wife Wu Shu-chen, and 12 others were indicted on charges of corruption, money laundering, embezzlement and document forgery charges, a spokesman for the prosecutors' office said. The couple stand accused of embezzling millions of dollars in public funds and accepting a huge bribe in a land purchase deal. Altogether, the money involved adds up to an estimated $15m (£10m). In February, Mrs Wu pleaded guilty to accepting a $2.2m (£1.5m) political donation in connection with a land purchase deal, but denied that it had been a bribe, as alleged by prosecutors. She admitted charges of forging documents in a separate case but denied using the money for personal gain. Nine other accused have also pleaded guilty.


'Stand tall'

Mr Chen was taken into the Taipei courtroom in handcuffs to face the start of the formal proceedings against him. His trial will initially investigate the alleged land deal before moving on to other charges, and is expected to last for several months. The BBC's Cindy Sui in Taipei says people in Taiwan have been engrossed in the case, with some people shocked by the alleged crimes but others believing it is an example of political revenge. Mr Chen says the charges against him are politically motivated, and constructed by the ruling Kuomintang (KMT) government "in order to gain favours and protection from the Beijing authorities". Relations between Beijing and Taipei have been improving since the KMT, under President Ma Ying-jeou, took office last year. Mr Chen has also challenged the impartiality of the judging panel, saying the fact they had not allowed him out on bail in December was "punitive". "I must stand tall and appeal to the world. I must protest and tell my story for the sake of human rights and justice in Taiwan," AFP news agency quoted him as saying. However, the KMT party said Mr Chen had failed to "set an example" as a national leader and would have to prove his innocence. The court date follows more than two months of pre-trial hearings. If found guilty. Mr Chen could spend the rest of his life in prison. Taiwan has been ruled separately from China since the end of the Chinese civil war in 1949, when the defeated Kuomintang retreated to Taiwan to create a self-governing entity. But Beijing sees the island as a breakaway province which should be reunified with the mainland, by force if necessary.

News Source :news.bbc.co.uk

Taiwanese Former President Chen Shui-bian Goes On Trial

Scenes of mourning in Oakland

As Oakland prepared for Tuesday night's vigil to honor the four officers slain in East Oakland on Saturday, residents brought flowers, notes, pictures and candles to a sidewalk memorial. The display is at the corner of 74th Avenue and MacArthur Boulevard, where the first two officers were shot.

Parolee Lovelle Mixon, 26, gunned down Sgt. Mark Dunakin, 40, and Officer John Hege, 41, who had pulled Mixon over for a routine traffic stop. Mixon fled to his sister's apartment about half a block away and barricaded himself inside.

About two hours later, as a police SWAT team entered the apartment where he was hiding, Mixon opened fire, killing Sgt. Daniel Sakai, 35, and Sgt. Ervin Romans, 43.

The three-block stretch of MacArthur where Tuesday night's vigil was held is among the most crime-ridden areas of the city. Neighbors complain of frequent robberies, drug dealing and shootings and said they are devastated by the officers' deaths.

Investigators are trying to determine why Mixon fired on the two motorcycle officers who pulled him over.

News Source : sfgate.com

Scenes of mourning in Oakland

Obama pledges economic recovery

Barack Obama has told Americans he sees signs of economic recovery, but urged them to be patient and look beyond their "short-term interests".

The US president said his draft budget would build a stronger economy which would mean America did not face a repeat crisis in 10 or 20 years.

"We will recover from this recession," he told a prime-time news conference in Washington DC.

His $3.6tn (£2.5tn) budget faces its first tests in Congress this week. Mr Obama said his economic strategy, and his new budget which was now being prepared, was based on creating new jobs, rejuvenating the housing market, and creating new liquidity and lending by the banks.

He stressed that immediate action was necessary, and urged both Congress and Americans in general to support his plan. Opposition to the package, which features increased health care coverage, higher education spending and a new "cap-and-trade" system on greenhouse gas emissions, is coming from his own Democratic Party as well as the Republican opposition. In a wide-ranging question-and-answer session that touched on the environment, the drugs trade and stem-cell research, Mr Obama said he expected "steady progress" in resolving disputes with Iran. He said the status quo in the Israeli-Palestinian conflict was unsustainable, adding that it was critical for the US to advance a two-state solution.

'Signs of progress'
In an eight-minute address at the start of the hour-long session, Mr Obama said his administration had "put in place a comprehensive strategy designed to attack this crisis on all fronts". "And we are beginning to see signs of progress," he said. "The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this 10 or 20 years from now." "We have made the tough choices necessary to cut our deficit in half by the end of my first term - even under the most pessimistic estimates," he argued. Mr Obama urged US citizens to be patient.
"It will take time, it will take patience, and it will take an understanding that when we all work together, when each of us looks beyond our own short-term interests to the wider set of obligations we have to each other, that's when we succeed," he said. Asked about the flow of illegal drugs into the US, Mr Obama said his administration would go beyond the $700m plan announced on Tuesday to support Mexico in its fight against the powerful drugs cartels. He also praised his Mexican counterpart, Felipe Calderon, for his efforts against the cartels.

Budget fight

The stage is set at Congress for a tough fight over the budget with Mr Obama, who has been in office for barely two months, correspondents say. On Wednesday, he is due to meet Senate Democrats in a bid to rally support for an increased deficit, reckoned to be $1.4tn for next year. The House budget committee will begin writing its version of the budget plan the same day, and on Thursday the Senate budget committee will begin crafting its budget plan for 2010 and the four subsequent years. Republicans complain that the draft budget expands government and raises taxes on the rich and some small businesses. "There is little or no Republican support for this budget," Senate Republican leader Mitch McConnell told Reuters news agency. A Congressional budget office analysis released last Friday estimates that President Obama's budget would generate deficits totalling $9.3tn over the next decade. "If these plans are carried out, we run the risk of looking like a Third World country," Mr McConnell was quoted by the Associated Press as saying. Kent Conrad, the Democratic chairman of the Senate budget committee, is preparing to slash Mr Obama's 11% increase for non-defence appropriations to perhaps 6%. "We cannot have debt pile on top of debt," he said. "In the short term, yes, we have got to have added deficits and debt to give lift to this economy, but longer term, we have got to pivot." Mr Obama is also preparing for a European trip next week that includes the London G20 summit on the global economic crisis.

News Source : news.bbc.co.uk

Obama pledges economic recovery

No more tax cuts, Gordon Brown warned

Queen Elizabeth II greets Governor of the Bank of England Mervyn King

Britain cannot afford further tax cuts or public spending rises in next month’s Budget because of the state of government finances, Gordon Brown has been told by the Bank of England.

In a highly unusual intervention, the Bank’s Governor, Mervyn King, said that the Government must be “cautious” as Britain faces “very large fiscal deficits”.

The warning is likely to anger the Prime Minister, who yesterday called on other countries to deliver “the biggest financial stimulus the world has ever seen”.

However, the Treasury is thought to agree privately with Mr King’s assessment that further British intervention is unaffordable.

Mr Brown is understood to be considering another multi-billion-pound fiscal stimulus package of tax cuts and spending rises in the Budget.

Mr King’s warning undermines not only Mr Brown’s plans but also the foundations of the G20 summit that the Prime Minister is hosting in London next week, since the meeting is broadly regarded as a platform for world leaders to agree to spend extra billions on averting a global depression.

Many suspect that Mr Brown will use the summit as an opportunity to present a generous package of tax breaks for savers, particularly pensioners.

These plans may be in jeopardy if the Treasury heeds the Governor’s warning.

It is rare for any leading public official — let alone the Governor of the Bank of England — to deliver such a public warning over the country’s finances in the run-up to the Budget. However, appearing before the Treasury select committee yesterday, Mr King gave warning of the dangers of borrowing any more.

“I’m sure the Government will want to be cautious in this respect,” Mr King said. “There is no doubt we are facing very large fiscal deficits over the next two to three years.

“Given how big those deficits are, I think it would be sensible to be cautious about going further in using discretionary measures to expand the size of those deficits.

“The level of the fiscal position in the UK is not one that would say: 'Well, why don’t we just engage in another significant round of fiscal expansion?’ ”

Immediately after the hearing at the House of Commons, Mr King was invited to Buckingham Palace for a private audience with the Queen. The meeting, at Her Majesty’s request, represented the first time she has met the incumbent Bank Governor.

Following Mr King’s comments, No 10 aides insisted that a further fiscal stimulus package was still on the agenda and had not been ruled out. An official said the Government would do “whatever it takes to create the growth and jobs we need”.

Yesterday, in a speech to the European Parliament just hours after Mr King’s appearance before MPs, the Prime Minister called on countries attending the G20 summit to borrow and spend unprecedented amounts.

He said: “We can together deliver the biggest financial stimulus the world has ever seen, the biggest cut in interest rates, the biggest reform of the international financial system, the first international principles governing banking remuneration, the first comprehensive action against tax havens and for the first time in a world crisis, new help for the poor.”

There are growing fears that the Government may be over-extending the public finances in response to the recession.

Some fear the combined cost of banking bail-outs alongside economic measures could cause Britain to lose its top-level credit rating, raising the prospect of having to call on the International Monetary Fund (IMF) for help.

Alistair Darling, the Chancellor, announced a £20 billion fiscal stimulus package last year. However, this included a cut in VAT which many retailers have indicated is not boosting the economy.

Stephen Byers, the former cabinet minister, called on Mr Brown yesterday to ditch the VAT cut, questioning “whether it has run its course”.

The Conservatives are already being forced to scale back their tax-cutting plans. They have also urged Mr Brown to show restraint.

George Osborne, the shadow chancellor, said: “This is hugely significant, as it completely vindicates the big decision taken by David Cameron and myself on the economy, and it leaves Gordon Brown’s political plans for the G20 and the Budget in tatters.”

The IMF has warned that Britain is facing the biggest government deficit in the Western world even before it has pledged any extra cash to be spent on the recession. It said the shortfall in its books will hit a record 11 per cent of gross domestic product — some £150 billion — next year, far greater than any other Western nation.

Vince Cable, the Liberal Democrat Treasury spokesman, said: “The Government has lost all credibility when it comes to fiscal stimuli since it wasted £12.5 billion on an ineffective temporary VAT cut.”

Mr Brown was yesterday embarking on a global diplomatic mission to garner support ahead of next week’s summit at the ExCel centre in London.

In a speech to the European Parliament, the Prime Minister said that Europe was “uniquely placed” to lead international negotiations on solving the economic crisis a

News Source :telegraph.co.uk

No more tax cuts, Gordon Brown warned

U.S. Taking Steps to Control Violence on the Mexican Border

WASHINGTON — The Obama administration said Tuesday that it would move hundreds of federal agents to the country’s southern border to prevent a spillover of drug-related violence from Mexico, and that it would focus more efforts on stopping weapons and money from flowing south.

In a briefing with reporters on Tuesday, the secretary of homeland security, Janet Napolitano, said that 360 agents would be sent to the Border Patrol and to Immigration and Customs Enforcement units along the 2,000-mile border, and that 100 agents would be sent to Bureau of Alcohol, Tobacco, Firearms and Explosives units there.

Officials said 100 of the redeployed Border Patrol agents, and several new canine teams, would inspect people and vehicles leaving the United States, aided by mobile X-ray units for cars and more sophisticated license-plate readers.

Ms. Napolitano called the redeployment “a very robust movement of personnel.” She added, “If anything, this is really the first wave of things that will be happening.”

Law enforcement personnel will also be added to the United States Embassy in Mexico, and an estimated $30 million in stimulus funds will be spent to support the work of local and state law enforcement agencies along the border.

The plan will also draw on $700 million appropriated by Congress under the so-called Merida Initiative, put into effect by former President George W. Bush, to provide training and equipment to Mexican law enforcement agencies. Many of the measures announced Tuesday expanded on programs that were started by Mr. Bush.

Ms. Napolitano said the administration was still considering requests by the governors of Texas and Arizona to deploy the National Guard — a step she supported when she was governor of Arizona. She said she would discuss the request next week with Gov. Rick Perry, when she stops in Texas on her way to Mexico.

Ms. Napolitano is one of many administration officials who have planned trips to Mexico in response to growing concern in the United States about violence there.

Deputy Secretary of State James B. Steinberg said Tuesday, “We see this as a critical partnership, one that requires as much high-level attention as any bilateral relationship we have.”

Officials said the plans announced Tuesday were a kind of down payment on President Obama’s promise to pursue a “comprehensive strategy” for securing the United States’ southern border and helping President Felipe Calderón of Mexico in a battle against cartels whose bloodletting has touched every corner of Mexico and whose organizations have stretched into many parts of the United States.

During a news conference on Tuesday night, Mr. Obama said the Mexican drug cartels “have gotten completely out of hand,” and he praised Mr. Calderón, saying the president “has been very courageous in taking on these drug cartels.”

In a shift from the policies of previous administrations, Mr. Obama has emphasized that the drug war is a “shared responsibility,” expressing support for Mexico’s fight and vowing to lead one on this side of the border as well.

Ms. Napolitano echoed that thinking on Tuesday, calling the fight against drugs “a demand issue and a supply issue.”

An estimated 90 percent of the illegal drugs that enter the United States pass through Mexico, while some 90 percent of the weapons seized from drug traffickers or at crime scenes in Mexico come from north of the border. Meanwhile, the southbound cash flow is estimated in the tens of billions of dollars.

The White House press secretary, Robert Gibbs, said Tuesday that Washington’s relationship with Mexico was getting “sustained, high-level, comprehensive attention.” He said the efforts against traffickers would be led by the White House in coordination with the Departments of State, Justice and Homeland Security.

As a former border-state governor, Ms. Napolitano emphasized the importance of coordinating her agency’s efforts with state and local officials on the front lines of the drug fight. She has sent a high-level member of her staff to meet with law enforcement officials along the southern border. And each week, she confers by telephone with border sheriffs and police departments.

When asked whether the shift in personnel signaled a shift in the focus of Homeland Security away from the threat of terrorism, Ms. Napolitano said, “Absolutely not.”

“Our department has a very broad mission,” she said. “We have to be able to multitask. One of the changes in the threat environment has been what is going on in Mexico. So we need to make changes in order to deal with that particular threat.”

News Source : news.google.com

U.S. Taking Steps to Control Violence on the Mexican Border

Obama claims gains in fight against economic woes

WASHINGTON – President Barack Obama claimed early progress Tuesday night in his aggressive campaign to lead the nation out of economic chaos and declared that despite obstacles ahead, "we're moving in the right direction." At the second prime-time news conference of his presidency, Obama also toned down his criticism of bonuses to executives at bailed-out AIG, and shot back at Republican critics of his budget. In office for 64 tumultuous days, Obama cast his budget — now under review in Congress — as essential if the economy is to recover. The tax and spending plan "is inseparable from this recovery because it is what lays the foundation for a secure and lasting prosperity," he said. The president also defended the U.S. dollar in the wake of China's suggestion for a universal currency, saying: "The dollar is extraordinarily strong right now," and "I don't believe that there is a need for a global currency." The news conference, lasting 55 minutes, came at a pivotal, early moment in Obama's young presidency. Democrats in Congress are readying budget proposals that will largely determine how much of his first-term agenda will be passed, Treasury Secretary Timothy Geithner is churning out near-daily proposals to solve the nation's economic crisis and the administration is struggling with public and congressional outrage over bonuses paid to executives of bailed-out AIG. Additionally, Obama departs next week for his first European trip as commander in chief, with the global economy a major focus. Flexible on some points, Obama was unyielding on others. Pressed on why he seemed to delay before condemning the AIG bonuses, Obama said, "It took us a couple of days because I like to know what I'm talking about before I speak." The news conference was dominated by questions about the economy. Obama defended the steps his administration has taken to counter the recession and an unprecedented credit crisis. He said teachers and others have jobs today because of the economic stimulus measure that Congress passed, and the nation is "beginning to see signs of increased sales and stabilized housing prices for the first time in a long time." He said full-fledged recovery is months away, and he added, "It will take patience." At the same time, he said, "we're in a better place because of the decisions that we made." Obama put in a plug for the request Geithner made to Congress earlier in the day for extraordinary authority to take over failing companies like American International Group Inc., much as the Federal Deposit Insurance Corp. now does for banks. "It is precisely because of the lack of this authority" that AIG's problems threatened to bring down the entire U.S. economy, he said. Top Democrats in Congress reacted positively to the proposal, although it is not clear when legislation might be considered. Obama has been vocal in his unhappiness over the $165 million in retention bonuses paid to executives at AIG, although his favorable reference to business men and women seeking profits was a new twist. "Bankers and executives on Wall Street need to realize that enriching themselves on the taxpayers' dime is inexcusable, that the days of outsized rewards and reckless speculation that puts us all at risk have to be over," he said. "At the same time, the rest of us can't afford to demonize every investor or entrepreneur who seeks to make a profit. That drive is what has always fueled our prosperity, and it is what will ultimately get these banks lending and our economy moving once more," he said. On other issues, Obama: • Said the American people are assessing his ability as chief executive based on his skills and work, not the color of his skin. He said there was justifiable pride in January, when he was inaugurated as the first black president. • Strongly defended his proposal to raise taxes on the wealthy by reducing the value of the deductions they may take for items such as home mortgages or charitable donations. It's a "realistic way for us to raise some revenue from people who benefited enormously over the last several years. Its not going to cripple them. They will still be well-to-do," he said. • Called his decision to expand federal support of embryonic stem cell research the "right thing to do and the ethical thing to do." He said he wrestled with the ethics of the decision but is hopeful that the science will lead to help for people with debilitating diseases. • Said the recent elections in Israel would not make it easier to create a stable environment with side-by-side Israeli and Palestinian states. The president opened the news conference with a prepared statement read from a screen, turning the event's opening moments into a brief speech delivered to a nationwide TV audience in addition to the roomful of reporters. He said his administration was taking steps to make sure banks have money to lend "even if the economy gets worse." Obama said he did not feel the government should call on Americans to make sacrifices beyond those imposed by the recession and credit crisis. "Folks are sacrificing left and right ... across the board, people are making adjustments large and small," he said. Obama was quick with a retort when asked about Republican criticism of his budget, with its huge projected deficits. "First of all," he said he inherited a deficit of over $1 trillion from his predecessor. And secondly, he said the Republicans have yet to offer an alternative to his own tax and spending plan. Obama has emphasized a desire to cut projected deficits in half by the end of his current term, although recent estimates make it appear almost impossible barring an extraordinary series of events. Given concern in Congress over the red ink, Senate Democrats are drafting a separate budget plan that assumes Obama's proposed middle class tax cut expires after two years — the sort of sleight of hand that other administrations of both parties have used in the past. While Congress' budget does not go to the White House for a president's signature, the White House traditionally seeks to influence its provisions. Obama restated his objectives Tuesday night — health care overhaul, a new energy policy and more money for education and deficit control. Obama stepped to the microphone one day after his administration unveiled a plan to melt the credit freeze by helping banks shed bad loans. Under the proposal, the government will finance the purchase by private investors of as much as $1 trillion of the $2 trillion in bad assets still held by the nation's banks, in the hopes of freeing banks to begin lending more freely and churn up economic activity. On Wednesday, Obama is heading to Capitol Hill to lobby Senate Democrats. Before Obama's speech, Senate GOP leader Mitch McConnell emphasized Republican criticism of the president's proposed budget as an over-spending, over-taxing disaster. A Congressional Budget Office analysis released last Friday estimates Obama's budget would generate deficits totaling $9.3 trillion over the next decade "If these plans are carried out, we run the risk of looking like a Third World country," said McConnell, R-Ky. Obama's job approval rating is 63 percent, according to Gallup polling. That number has been relatively stable recently, down from the 68 percent when the president took office mostly on a loss of support among Republicans.

News Sources news.yahoo.com

Obama claims gains in fight against economic woes

Nicolette Sheridan's Desperate ratings grabber tonight on ABC

Tonight's episode of Desperate Housewives will finally answer the question, "Just how will Edie Britt (Nicolette Sheridan) die?" If the promos hold true, tonight's offing promises to be the most shocking episode ever, not to be confused with the of-used most shocking rose ceremony ever from another ABC ratings giant. Neil McDonough, the actor who plays revenge-bent Dave Williams, has kept us entertained over the past two seasons during which he has torched a nightclub, framed Lynette's son for murder, sent Mrs. McClusky to the nuthouse and killed his own therapist, not to mention his late night chats with the ghosts of his dead wife and daughter.

Dave's plot to get Katherine and Mike (Dana Delaney and James Denton) to accompany him on a weekend stay at a cabin finally comes to fruition. Edie has been delving into his sordid past and viewers saw a fax come in revealing more of his past crimes, just as Edie walked out the door, leaving the question will she find out his secrets in time? (by the way, who uses a fax machine anymore, except the 800-insurance company of the jerk who hit me a few months back then had the audacity to request correspondence via fax?...sorry I digress)


It's been no secret that Nicolette Sheridan will be leaving the show, heck she tried to a few seasons back when Edie attempted suicide by hanging, only to be cut down just in the nick of time during the next episode. I'm just hoping she won't be the only casualty of Dave's rampage. I am banking they also off Katherine, so Mike and Susan (Teri Hatcher) can get back together.

In Desperate casting news, look for veteran character actress Gloria LeRoy to join the cast as yet unseen, but longtime resident of Wisteria Lane, who according to reports will figure into Edie exit in a surprising way. Some of you will remember the now 77-year-old actress as the trampy Mildred "Boom-Boom" Turner on All In The Family.

Also joining the cast later this season, Sarah Knowlton, formerly of Medium and House, who is set to play a woman that figured into a storyline with Tom (Doug Savant). And watch for the return of Lily Tomlin in the role of Mrs. McClusky's sister, Roberta in the season ender, and in case you missed it, last week Swoozie Kurtz joined the cast as Susan's fellow art teacher, who developed a lesbian crush on Susan.

As for Nicolette Sheridan, who knows, with the popularity of remakes of 90210 and the forthcoming Melrose Place, maybe she's just clearing her plate to return to Knots Landing. I can see Paige Matheson moving back to the cul-de-sac and filling the stilettos of Donna Mills' Abby Fairgate Cunningham Ewing Sumner, can't you?

Nicolette Sheridan's Desperate ratings grabber tonight on ABC