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  • Economy is top priority

    From NBC's Domenico Montanaro
    Could it be any clearer that the economy is the top priority? So far, President Obama's speech, 40 minutes in, has focused exclusively on the economy.

    He also made sure that "those who sent us here" were his audience right off the bat. This isn't about selling something to Congress; it's about reassuring the American people that Washington is doing something to try to help -- whether you agree or disagree with what's being done.

    "We will rebuild, we will recover," and emerge "stronger than before," the president said.

    One of the criticisms from the right (and President Bill Clinton) was that Obama wasn't being hopeful enough -- though Obama often says the country will recover.

    He made it clear that the country could and would recover. He struck a professorial tone on explaining the credit crisis. And he got bipartisan applause in talking about accountability for banks.

    "My job, our job," Obama said to the elected officials, "is to solve the problem."

  • U.S. to cut Iraq force in half in 19 mos.

    From Jim Miklaszewski and Courtney Kube
    U.S. military and administration officials tell NBC News that President Obama is expected to announce that more than half of the American troops will be withdrawn from Iraq within 19 months.

    The plan, expected to be announced later this week, would draw down the number of forces from the current 142,000 to around 50,000.

    Although the plan falls short of Obama's campaign pledge to withdraw all U.S. combat forces from Iraq within 16 months, one senior military official said, "It's close."

    The official also points out, however, that the remaining force of 50,000 would still contain a sizeable "combat element" to provide rapid reaction assistance to Iraqi combat forces and force protection for the remaining American troops and U.S. government civilians.

    The sources say the 19-month timetable was one of three options presented to President Obama for the withdrawal of forces -- 16, 19 and 23-month withdrawal plans.

    A senior military official said that it was up to the president to weigh the risks in withdrawal and "the shorter the timetable the greater the risk" to U.S. forces and Iraqi security.

    The officials also point out that the 19-month timetable is also contingent on the "conditions at the ground."

    According to a senior military official, "We're looking into a crystal ball here. The 19-month withdrawal is based on assumptions -- (on improved security) -- and if those assumptions don't hold up, all bets are off, and we'd have to adjust."

  • Jindal's response

    From NBC's Domenico Montanaro
    Louisiana Gov. Bobby Jindal, in delivering the Republican response to President Obama's address, will strike similar themes to the president on working together, but will also criticize Democratic economic philosophy and take a swipe at the president for not being hopeful enough.

    His speech is entitled, "Americans Can Do Anything," and he will draw on his biography for that inspiration: "As I grew up, my mom and dad taught me the values that attracted them to this country -- and they instilled in me an immigrant's wonder at the greatness of America," he will say, according to select released prepared remarks. "As a child, I remember going to the grocery store with my dad. Growing up in India, he had seen extreme poverty.  And as we walked through the aisles, looking at the endless variety on the shelves, he would tell me: 'Bobby, Americans can do anything.' I still believe that to this day."

    He strikes a chord of bipartisanship, saying, "Republicans are ready to work with the new President to provide those solutions. Here in my state of Louisiana, we don't care what party you belong to if you have good ideas to make life better for our people."

    Sound familiar?

    "We need more of that attitude from both Democrats and Republicans in our nation's capital," Jindal will continue to say. "All of us want our economy to recover and our nation to prosper," Jindal will say. "So where we agree, Republicans must be the President's strongest partners. And where we disagree, Republicans have a responsibility to be candid and offer better ideas for a path forward." 

    But bipartisanship is conditional, as he will also go on to criticize Democrats on economic philosophy.

    "To solve our current problems, Washington must lead," he will say. "But the way to lead is not to raise taxes and put more money and power in hands of Washington politicians. The way to lead is by empowering you -- the American people. Because we believe that Americans can do anything. ... Democratic leaders say their legislation will grow the economy. What it will do is grow the government, increase our taxes down the line, and saddle future generations with debt. Who among us would ask our children for a loan, so we could spend money we do not have, on things we do not need? That is precisely what the Democrats in Congress just did. It's irresponsible. And it's no way to strengthen our economy, create jobs, or build a prosperous future for our children."

    And Republicans' problem? Not having been fiscally responsible.

    "In recent years, these distinctions in philosophy became less clear -- because our party got away from its principles," Jindal will say. "You elected Republicans to champion limited government, fiscal discipline, and personal responsibility. Instead, Republicans went along with earmarks and big government spending in Washington. Republicans lost your trust -- and rightly so."

    He also channels Bill Clinton, taking a swipe at Obama for not being hopeful enough.

    "A few weeks ago, the president warned that our nation is facing a crisis that he said, 'We may not be able to reverse,'" Jindal will say. "Our troubles are real, to be sure. But don't let anyone tell you that we cannot recover -- or that America's best days are behind her."  

  • Obama tonight: 'We will rebuild'

    From NBC's Mark Murray
    The White House just released this excerpt from President Obama's address to Congress tonight: "But while our economy may be weakened and our confidence shaken; though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before."
     
    More: "The weight of this crisis will not determine the destiny of this nation. The answers to our problems don't lie beyond our reach. They exist in our laboratories and universities; in our fields and our factories; in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth. Those qualities that have made America the greatest force of progress and prosperity in human history we still possess in ample measure. What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more."

    The White House also released First Lady Michelle Obama's guests. See below for more.

    Dr. Jill Biden
    Leonard Abess Jr., CEO, City National Bank of Florida (Miami, FL)
    Ty'Sheoma Bethea, Student (Dillon, SC)
    Elizabeth Carballo, Student (Washington, DC)
    Richard G. DeCoatsworth, Police Officer (Philadelphia, PA)
    Earl Devaney, Chair, Recovery Act Transparency and Accountability Board
    Mayor Bob Dixson (Greensburg, KS)
    Governor Jim Douglas (Montpelier, VT)
    Mary Henley (Richmond, VA)
    SPC Jonathon N. James, US Army (Mountain View, AR)
    Valerie B. Jarrett, Senior Advisor and Assistant to the President for Intergovernmental Affairs and Public Liaison
    Blake Jones, Co-Founder and President, Namaste Solar (Boulder, CO)
    Shannon Kendall (Georgetown, TX)
    Victoria Kirby, Student (Washington, DC)
    Geneva Lawson, Safe-Deposit Custodian, City National Bank of Florida (Miami, FL)
    Lilly Ledbetter (Jacksonville, AL)
    General Alfonso E. Lenhardt, US Army (Washington, DC)
    Roxanna Garcia Marcus, Development Manager, Year Up (Washington, DC)
    Abbey Meacham, Firefighter (Forest, VA)
    Akrem Muzemil, Student (Washington, DC)
    Sergeant John E. Rice, USMC (Bethesda, MD)
    Juan Francisco Rodriguez, Student, Bell Multicultural High School (Washington, DC)
    Phil Schiliro, Assistant to the President for Legislative Affairs
    Alvaro Simmons, Chief Operating Officer, Mary's Center (Washington, DC)
    Governor Ted Strickland (Columbus, OH)

  • Commerce pick to be named tomorrow

    From NBC's Domenico Montanaro
    President Obama is expected to announce former Gov. Gary Locke as his nominee for Commerce Secretary tomorrow, a senior administration official tells First Read.

    Locke would be Obama's third nominee for the position.

  • Durbin tells Burris to resign

    From NBC's Ken Strickland
    In a meeting with Roland Burris today, Illionis Sen. Dick Durbin told Burris under the circumstance he should resign.

    Burris said he would not.

    Burris also told Durbin he has not made up his mind about running in 2010.

  • Pelosi greets crew that landed in Hudson

    From NBC's Mike Viqueira

    House Speaker Nancy Pelosi greeted the crew of Flight 1549 in her offices moments ago, thanked them on behalf of the American people, and then asked "Sully" to autograph a copy of the People magazine where they were featured.

    Sully promptly complied, then spoke briefly. He said he is, as you might imagine, "grateful for the outcome" of the flight, and added that he and his colleagues felt as if they had been "chosen by circumstance" to be "temporary spokesmen" for the industry.

    Jeff Skiles also spoke briefly, along with Reps. Miller, Tauscher, and McNerney. The crew will be guests in the speaker's gallery box this evening for the big speech.

  • Steele vs. Collins/Snowe/Specter?

    From NBC's Mark Murray
    In an interview yesterday on FOX, new RNC chair Michael Steele suggested that the three Republicans who voted for the stimulus -- Susan Collins and Olympia Snowe of Maine, and Arlen Specter of Pennsylvania -- would face primary challenges, and he left open the possibility that the three might not receive funds from the RNC. (Hat tips: the Washington Post's Greg Sargent and Politico's Ben Smith.)

    "Will you, as RNC head, recommend no RNC funds being provided to help them?" Steele was asked.
     
    "Oh, yes, I'm always open to everything, baby, absolutely," Steele said.

    [Youtube:ocqIEAaPVok]

    Steele's comments signaled a stark departure from past practice (the National Republican Senatorial Committee provided significant help to Specter in his '04 primary contest against Pat Toomey) and seemed to violate Ronald Reagan's famous 11th Commandment (never speak ill of another Republican).

    One former RNC official said that he couldn't imagine past party chairs undercutting a sitting senator, especially one who's up for re-election in 2010 like Specter (and in a state that Obama carried by 10 percentage points, 54%-44%!).

    "I just don't think we're at a point where the party can threaten senators and ask them to adhere to some type of monolithic ideology," the official said. "In fact, the party's almost always been at its strongest when it was broad and had its big tent out. I get what Steele is trying to do in terms of channeling the anger and frustration at the stimulus bill, but there's probably a more artful way of doing it."

    Originally, when First Read reached out to the RNC for comment, we were told that Steele's words spoke for themselves.

    But the RNC later reversed course. "The RNC has no intention of getting involved in primaries," a party official told First Read. "We work with state parties to elect Republicans and will continue to do that."

  • House passes chimp bill

    From NBC's Mike Viqueira

    Your U.S. House has passed a measure that would make it more difficult to keep an ape as a pet.

    A week after a woman lay in critical condition after being mauled by a pet chimpanzee, the Captive Primate Safety Act passed bya 323-95 voted, with 93 Republicans in opposition.

    The act would apply to the sale and transport of monkeys, great apes, lemurs, etc. The measure "makes it unlawful for a person to sell or purchase a live animal of any prohibited wildlife species in interstate or foreign commerce," according to a Library of Congress summary.

    Animals that assist disabled individuals would be excempt from the ban.

    Senate action is unclear at this point. The House sponsor is Rep. Earl Blumenauer (D-OR).

  • Jindal advertising to promote response

    From NBC's Domenico Montanaro
    Louisiana Gov. Bobby Jindal delivers tonight's response to President Obama's address to Congress.

    And Jindal is advertising to promote it.

    I came across an ad on YouTube that linked back to a Jindal response Web site "Paid for by Friends of Bobby Jindal." On the site, you can read about Jindal, donate or even log onto his Facebook page. (The response is also being promoted prominently on the front page of BobbyJindal.com.)

    From the site: "You can receive early excerpts of the speech by signing up in the form to the right. Not only will you receive the early excerpts, but you will also be able to watch the speech on this page (www.bobbyjindal.com/sotu)."

    Evan Tracey, who tracks advertising at TNS Media Intelligence/CMAG, tells First Read that the Jindal Web ads are low-cost (compared to TV or radio). About a few thousand dollars was spent on them, and they are running on sites to targeted demographics, particularly "the base and opinion leaders," Tracey said.

    The ads highlight ambitiousness on one hand -- raising Jindal's profile two years out from re-election and three years from the presidential election -- as well as Web savviness on the other. The Republican Party has talked about getting younger and trying to make up ground with Obama on the tech front. This is at least one sign that Jindal is trying to show he recognizes that and is ahead of the curve.

    Jindal's multi-million-dollar 2008 fundraising haul and his placement in response to Obama (and advertising to promote it) all suggest to political observers that the Louisiana governor has more than Louisiana governor in his sights.

    *** UPDATE *** By the way, Jindal will not be at CPAC. "We get more invites than we can accept," writes Jindal's Press Secretary Kyl Plotkin.

  • Holder is tonight's stay-away

    From NBC's Pete Williams
    Attorney General Eric Holder is the cabinet member who will not attend tonight's presidential speech.

    By custom, one member of the cabinet is designated to go to -- as we say these days -- "a secure location," in case that person is needed to carry on as head of the government. Since 9/11, the stay-away is typically a member of the national security team.

  • Senate vote set for Solis confirmation

    From NBC's Ken Strickland
    This morning, Senate Democratic and Republican leaders reached an agreement on how to move forward on Hilda Solis' nomination to be Labor secretary. The final confirmation vote will be today at 4:30 pm ET.

    The new agreement removes the procedural vote that had be scheduled for earlier today that would have required 60 votes to advance the nomination to the next step. Now there will only be one vote on the nomination -- with a simple majority required for her confirmation.

    Solis is expected to be easily confirmed, and if that happens, that will leave just two of the major cabinet posts unfilled: Commerce and HHS.

  • First thoughts: Tonight's address

    From Chuck Todd, Mark Murray, and Domenico Montanaro
    *** Tonight's address: In what will be the latest in big speeches he has delivered, President Obama tonight will address a joint session of Congress at 9:01 pm ET. Technically, it's not a State of the Union address. But with the televised entry into the chamber, the handshakes, the standing ovations, the primetime slot, and the opposition's official response, there won't be much of a difference. (Bush and Clinton also gave addresses to Congress shortly after their inaugurations.) Aides say the president's speech is expected to outline the rest of his domestic agenda, including health care, education, and energy, as well as his policies towards Iraq and Afghanistan. These aides also note that the speech will echo familiar themes. Will the president feel the need to calm the markets tonight? Sure, most of the address is going to be about domestic priorities that touch the economy, but those topics aren't just about the economic bailout. That said, when Obama talks about health care, education, and energy, he'll do so under the economic umbrella. By the way, national service is also something that will be mentioned in the speech tonight and could be fast-tracked to get Ted Kennedy's maximum involvement.

    *** Report card time: Just in time for tonight's address, there are two new report cards -- via Washington Post/ABC and New York Times/CBS polls -- that show Obama has earned high marks in his first month as president. In both surveys, more than six in 10 approve of his job, strong majorities think he's bringing about real change, and majorities approve of the just-passed economic stimulus. As for Republicans, it appears that their unified opposition to the president isn't paying dividends just yet. According to both polls, about three-quarters believe Obama has been trying to work with Republicans, while just 3 in 10 Americans think the GOP is doing the same with the president. Moreover, the WashPo/ABC poll shows that while 50% approve of congressional Democrats, only 38% approve of their Republican counterparts, although that GOP score is up 13 points since the middle of last year. Perhaps the most worrisome number for the GOP in that poll: "Democrats maintain an edge of nearly 2 to 1 over Republicans as the party that Americans prefer to confront 'the big issues' over the next few years." But remember one thing: Republicans need to worry about keeping their remaining customer base happy. And while that isn't playing well right now, do they have another choice? That's the conundrum for the GOP right now.

    *** The power of the bully pulpit: One example why Obama is winning the charm war -- and why Republicans are not -- was yesterday's televised Q&A with congressional Democrats, Republicans, and policy experts at the conclusion of his "Fiscal Responsibility Summit." Obama taking questions from these folks resembled a formal White House press conference, or better yet the British prime minister's question hour with Parliament. Writing about yesterday's Q&A, the Washington Post's Stephen Stromberg made this point: the "more Obama makes it seem like he is reaching out, the higher the price the Republicans will have to pay in order to oppose him." The Q&A was a great example of the power of the bully pulpit, and why Obama is winning the bipartisanship argument without necessarily being bipartisan (outside of soliciting GOP opinions without really acting on them).

    *** Jindal's rebuttal: Giving tonight's GOP response to Obama's primetime address is Louisiana Gov. Bobby Jindal, who's already been in the spotlight the past few days -- opposing part of Obama's stimulus and appearing on Meet the Press. Perhaps it's our 24-7 focus on politics, but with all the attention Jindal has received, it's still a bit jarring to us that Jindal has served only about a year as governor and is just 37 years old. As we've noted before, giving the response isn't always a stepping-stone to future success. One past responder who's back in the news: former Washington Gov. Gary Locke, who is "likely" to be Obama's Commerce pick.

    *** Three times a charm? Speaking of Locke, it appears Obama has settled on the former governor to be his third pick to lead Commerce (following the failed Bill Richardson and Judd Gregg appointments). Locke, a Chinese-American, has done a slew of trade missions to China, particularly when he was governor of Washington, which happens to be a big free-trade state. This is actually a big deal to business since he's a free-trade guy.

    *** Another summit? President Obama let slip yesterday that he'll be convening yet another summit at the White House next week -- this one on health care. It was pretty clear yesterday, and will be clearer tonight, that the administration is going to make a strong push to get major health-care legislation passed in the next few months. But don't expect a drawn-out battle. That was one of the lessons that everyone learned from the 1990s… If major health-care legislation isn't passed by the Fourth of July, can it get passed before the Nov. 2010 elections?

    *** On Capitol Hill today: Per NBC's Ken Strickland, Senate Democratic leaders say they're optimistic they'll have the 60 votes needed today to advance a bill that would give DC voting rights with a seat in the House of Representatives. (It would also give Utah an additional House seat.) While a successful vote would be a giant step forward for DC voting rights advocates, Strick says, several additional steps remain on both sides of the Capitol and likely before the courts. The vote is procedural, designed to break a filibuster on the bill. Once that hurdle is cleared, the bill then must push its way through the amendment process, which could include contentious measures on things like DC gun rights. What's more, the House has yet to pass its version of the bill, which is slightly different from the Senate version. And even if/when both chambers pass the same bill, it's all but guaranteed to face immediate court challenges on the constitutionality of giving the DC a voting seat in the House. That part to the process could take years to resolve.

    *** Remember that Solis confirmation? Strickland also notes that while it seems apparent to Senate Democrats that Hilda Solis will eventually be confirmed as Obama's Labor secretary, Republicans are making Majority Leader Harry Reid jump through hoops to get her there. This morning, Solis' nomination will face a procedural vote on the Senate floor that neither Eric Holder nor Timothy Geithner faced in their somewhat bumpy rides to confirmation. This vote will happen immediately following the one on DC voting rights. Strick adds that Republicans are forcing Reid to muster 60 votes to advance the nomination because of her ties to a pro-labor lobbying group, as well as her support for the contentious Employee Free Choice Act. Reid's office is optimistic that the majority leader will be able to reach an agreement with Republicans for Solis to have her final confirmation vote before week's end, possibly as early as this afternoon.
     
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  • First 100 days: The grades are in

    According to the new Washington Post/ABC poll, "68 percent of poll respondents approve of Obama's job performance… Sixty-four percent said they approve of how Obama is handling appointments to the Cabinet and other top positions in the administration, despite tax problems and stumbles that have led to three of his top nominees withdrawing from consideration."

    More: "Although Obama has encountered near-unanimous GOP opposition to his stimulus plan in Congress and widespread criticism for a housing bailout plan that some say rewards people who have been fiscally irresponsible, 64 percent of those polled back the economic recovery package, and the same percentage support the mortgage proposal. The broad support for the recovery package comes as just 10 percent said the bill was too heavy on spending and too light on tax cuts, the primary contention of the Republican leadership in Congress. Overall, 60 percent of poll respondents approve of how Obama is dealing with the economy." 

    The New York Times on its latest NYT/CBS poll: "The aura of good will surrounding Mr. Obama at this stage of his presidency is similar to the one that benefited Ronald Reagan as he led the nation out of economic gloom. With a job approval rating of 63 percent, Mr. Obama is in a strong position to sell his economic policies. Yet the poll also captured skepticism about how effective his plans will prove to be in addressing the deep recession, as well as a strain of populism that could test his ability to retain public support for efforts to prop up key sectors of the economy."

    This is also good news down the road for Obama: "Americans are under no illusions that the country's problems will be resolved quickly, but the poll suggested that they will be patient when it comes to the economy, with most saying it would be years before significant improvement."

    The New York Daily News previews Obama's State-of-the-Union-like address to Congress tonight. "'He will talk about how tough things are for some Americans, but he will also say that we can, and will, pull ourselves out of this,' said one official. To put a human face on the impact of the economic meltdown, Obama will be able to point to several hard-hit folks invited to sit in First Lady Michelle Obama's section. The "Hero of the Hudson," US Airways pilot Chesley (Sully) Sullenberger, is also expected to attend."

    Politico's Martin: "When President Barack Obama appears in the Capitol on Tuesday night to address a joint session of Congress and millions of Americans watching at home, he'll face a challenge familiar to his predecessors: how to balance inspiration and exhortation with detail and specifics -- a challenge made more difficult by the moment at which he arrives in the House chamber."

    Republican pollster David Winston writes in Roll Call, "For President Obama, tonight's address has become more than an economic report card to Congress or even another attempt to sell his economic recovery plan. This address to Congress has become a structural positioning speech. He must decide whether he is going to continue to pursue a single-party approach to governing based on the 'we won' doctrine or embrace a true consensus approach to solving the nation's serious problems. What much of Washington's chattering class has forgotten in all the hype about partisanship over the past month is the fact that the majority party defines the level of bipartisanship, not the other way round."

    The Chicago Tribune: "White House Chief of Staff Rahm Emanuel's Washington lodging arrangements, a rent-free basement room in a Capitol Hill home owned by Rep. Rosa DeLauro (D-Conn) and her pollster husband, have inspired debate among tax experts and in Republican-leaning portions of the blogosphere. One issue is whether Emanuel, who served in the House with DeLauro until early January, should have listed the room either as a gift or as income on his Congressional financial disclosure forms. Emanuel's disclosure filings contain no mention of his use of the room."

  • First 100 days: The fiscal summit

    "A White House summit that opened discussions on how to make sweeping changes in entitlement programs concluded yesterday with a pledge to immediately pursue an effort to provide health insurance to most Americans, which could increase spending in the short term but would be designed to save money later."

    USA Today: "President Obama pledged Monday to target Medicare, farm subsidies, tax breaks for companies that ship jobs overseas and no-bid contracts in Iraq in the proposed 2010 budget he will unveil later this week. Turning his attention from short-term economic stimulus to long-term fiscal discipline, Obama said he will urge Congress to require that any spending increases or tax cuts be paid for, rather than add to a $1.3 trillion deficit. That requirement was dropped as the Bush administration waged wars in Afghanistan and Iraq." 

    The New York Times says that "Mr. Obama called on Mr. McCain to offer any thoughts" during the Q&A session at the end of the president's Fiscal Responsibility Summit. "Mr. McCain praised Mr. Obama for holding the event, then suggested one priority should be dealing with out-of-control military contracts. Exhibit A was the program to replace the current Marine One helicopters, with costs mushrooming to $11.2 billion from $6.1 billion. The Defense Science Board issued a new study blaming 'poor communication' about aircraft requirements between the government and contractors. Lockheed Martin declared Monday that it was 'committed to the program's success' and would meet any conditions imposed by an Obama administration review."

    "'Your helicopter is now going to cost as much as Air Force One,' Mr. McCain told Mr. Obama. 'I don't think there is any more graphic demonstration of how good ideas have cost taxpayers an enormous amount of money.' Mr. Obama agreed. 'The helicopter I have now seems perfectly adequate to me,' he said to laughter. 'Of course, I've never had a helicopter before, you know? Maybe I've been deprived and I didn't know it. But I think it is in example of the procurement process gone amok. And we're going to have to fix it.'"

    Roll Call's Dennis draws a parallel between Obama's deficit-cut call and George W. Bush's. "In 2004, while running for re-election, Bush proposed cutting the budget deficit 'in half' by 2009. But that was only after a large surplus morphed into a large deficit during his first term. Bush technically succeeded in reaching his goal -- and even projected a return to budget surpluses -- before the bottom dropped out of the economy on his way out the door. Which is why one might want to take any of these budget projections with, say, a trillion-dollar grain of salt, or two."

    The New York Times writes that President Obama has settled on former Washington Gov. Gary Locke to be his third pick for Commerce secretary. "Mr. Locke, a two-term governor, former state legislator and onetime county executive, would bring a technocratic, pro-business record to the post. As the first Chinese-American to serve as a governor in the United States, Mr. Locke would also be the third person of Asian descent in Mr. Obama's cabinet, after Energy Secretary Steven Chu and Veterans Affairs Secretary Eric K. Shinseki."  
     
    If the AIG bailout -- the biggest single corporate bailout to date -- is not working, then what do we do? "A.I.G. declined to provide details of its new financial problems, citing the 'quiet period' just before it issues fourth-quarter results. But some people familiar with A.I.G.'s negotiations said it was on the brink of reporting one of the biggest year-end losses in American history. Such losses lead to a bigger problem. A further credit rating downgrade would force the company to raise more capital, according to a person involved in the negotiations. The losses appeared to be across the board, unlike the insurer's losses of last September, which were confined mostly to derivative contracts called credit-default swaps."

    "A.I.G. has not been writing new credit-default swap contracts, and had tried to put the swaps disaster behind it. In November the company worked out a relief package with the Federal Reserve Bank of New York, in which the most toxic of its swap contracts were put into a kind of quarantine, so they could no longer hurt its balance sheet. But A.I.G. had written several other classes of credit-default swaps, which it kept on its books. "

  • Congress: Trouble at home?

    The Boston Globe looks at the risk for some Republicans in voting "no" on the stimulus. "When Obama addresses a joint session of Congress in a televised speech tonight to outline his budget priorities and policy agenda, he will face 176 House Republicans who voted unanimously against his stimulus bill. Fewer than one dozen share [Washington State Republican Dave] Reichert's predicament: He represents a district carried by Obama in November, in this case by 15 percentage points. He is the type of endangered Republican most sought by Obama's gestures of bipartisan outreach, but also the type whom the new president's successes would be most likely to dislodge from office." 
     
    Shape up or ship out? "At this morning's House Republican Conference meeting, party leaders will unveil a new campaign fundraising and infrastructure program designed to strengthen vulnerable incumbents and hold Members more accountable if they expect any help from the National Republican Congressional Committee in 2010," Roll Call writes. It's called the "Patriot" program and is part of the design to "overhaul" the NRCC "after back-to-back election cycles in which the GOP suffered major losses." And check out this bit: "As one Republican source put it Monday, the effort is also designed to 'end the welfare state that the NRCC has become over the past six to eight years' by setting strict benchmarks for Members and adding one big stick to the process. Namely, those candidates who aren't working to help themselves will be cut off from NRCC financial assistance."

    Think Democratic leadership is going to yank Roland Burris soon? Think again. "There is already a process in place that includes investigations by Illinois state officials and the Senate Ethics Committee," Reid spokesman Jim Manley said, per Roll Call. "Let's let the appropriate process play out and let all the facts come to light. But, in the meantime, he is still a Member of the Senate." 
     
    More PMA news: "Several clients of The PMA Group, which was raided by the FBI in November, are slated to receive earmarks worth at least $8 million in the omnibus spending bill funding the federal government through the rest of fiscal 2009, according to a list of projects put together by Rep. Jeff Flake (R-Ariz.)."

  • 2009/2010: The replacements

    CALIFORNIA: The race to replace Hilda Solis in Congress is underway: "At first glance, given the demographics of the district -- about half of Democratic voters are Hispanic -- state Sen. Gil Cedillo (D) should be favored to replace Solis in a race that, for now, also includes State Board of Equalization Chairwoman Judy Chu (D) and former investment banker Emanuel Pleitez (D). But conventional wisdom in this race could be turned on its head in several ways."
     
    ILLINOIS: The Hill checks in with the Democratic race to succeed Rahm Emanuel. Three Democrats have emerged. 
     
    KENTUCKY: "Bunning's office originally misspelled Ginsburg's name in the statement but later corrected it. Meanwhile, Republican Kentucky state Senate President David Williams would not rule out a possible run in the primary. Williams has met with the National Republican Senatorial Committee, the GOP campaign arm in Washington, according to a person familiar with the situation who requested anonymity because the meeting was private." 
     
    MISSOURI: Roy Blunt's decision to run for the Senate has set off a flurry for the Republican nomination to replace him. 
     
    NEW YORK: And Bill Clinton will headline a Kirsten Gillibrand fundraiser March 11 in New York City.

  • Obama stresses fiscal responsibility

    From NBC's Athena Jones
    President Obama returned to the theme fiscal responsibility in speeches today, while also arguing that health-care reform was essential to long-term deficit reduction.

    In a morning speech to the National Governors Association in the State Dining Room, the president repeated the warning he gave to some 80 mayors last week to spend stimulus dollars wisely. He also announced he was asking Vice President Joe Biden to oversee the administration's efforts to implement the $787 billion recovery plan.

    "Contrary to the prevailing wisdom in Washington these past few years, we cannot simply spend as we please and defer the consequences to next budget, the next administration, or the next generation," he said. "That's why today I'm pledging to cut the deficit we inherited by half by the end of my first term in office."

    Obama said he would reinstate the pay-as-you-go rule requiring any new expenditure to be set off by a cut in spending.

    Today's events kicked off another big week for the president. Last week, he signed the stimulus bill and announced a plan to stem housing foreclosures. This week, he is set to address a joint session of Congress tomorrow night and will present his a budget he says will provide a "full and honest accounting of the money we plan to spend and the deficits we will likely incur."

    He said this year's budget would represent "important progress towards fiscal responsibility," but he also noted that more must be done to address long-term challenges like the rising cost of health care, which he called the "single-most pressing fiscal challenge we face by far."

    The administration plans to convene a health-care summit early next week. Today, Obama announced that states would be able to access $15 billion federal assistance starting Wednesday to help them cover the costs of Medicaid programs.

    In a reference to some of the criticisms of the stimulus package from Republican governors like Louisiana's Bobby Jindal, a possible 2012 prospect, Obama said healthy debate was important, but that there was a lot of agreement about many elements of the plan and that using a "broad brush" to paint the bill as wasteful spending smacked of politics. There will be "ample time for campaigns down the road," he told the crowd.

    The president signaled that other domestic issues like health care, education, and energy -- all of which were addressed by the stimulus package and legislation like the expansion of SCHIP signed into law last month -- would take center stage now that the recovery plan had passed.

  • Locke 'likely pick' for Commerce

    From NBC's Chuck Todd and Domenico Montanaro
    Former Washington Gov. Gary Locke is the "likely pick" for Commerce Secretary, according to sources familiar with the decision process.

    Locke, of course, would be the president's third choice to lead the large and diverse Cabinet agency which deals with the economy, the census and even the weather.

    Locke was a two-term governor of Washington, who didn't leave with the higest of approval ratings.

    Locke served as governor of Washington from 1996 to 2005. He graduated from Yale in 1972 and got his law degree from Boston University in 1975.

    More to come.

  • Obama shows who's boss

    From NBC's Domenico Montanaro
    Sen. Tom Carper (D-DE) set the table for President Obama to tee off on bipartisanship, encouraging him publicly to continue to reach out to Republicans.

    "I'm just a glutton for punishment," Obama said in response before adding, "I'm going to keep on talking to Eric Cantor because someday, sooner or later, he's going to say, you know Obama, he had a good idea."

    We've noted before that his efforts on bipartisanship are downpayments for other pieces of legislation.

    Video: At the end of his economic summit, Obama says bipartisan support will help stabilize the economy.

    Isn't it pretty difficult for Cantor to sharpen the knives when Obama's flattering him from the podium?

    By the way, that faux press conference at the fiscal responsibility summit was one of the more remarkable images we've seen since Obama's been elected president. 

    With Obama behind a podium -- a foot higher than the other elected officials made to look the part of White House correspondents, as they were called on to ask questions -- was there any doubt who's the boss?

  • Burris to attend Obama address

    From NBC's Kelly O'Donnell

    Sen. Roland Burris will be a much-watched face in the crowd tomorrow night as members of Congress welcome President Obama to deliver his primetime address.

    When Burris returns Tuesday from what turned into a news-making, controversy-filled recess for the embattled Illinois senator, Hill sources say he plans to reach out to Senate leadership and colleagues in a quiet attempt to "smooth feathers" over his varied accounts of contacts with ousted Illinois Gov. Rod Blagojevich prior to his appointment.

    The Burris game plan is to press on and plead for "patience," despite calls for his resignation. Aides say he intends to make a few announcements about new senior staff positions being filled in his Senate office in coming days, and also to politically convey that he is "getting to work." 

    Burris spent part of Saturday meeting with federal investigators in Chicago about the Blagojevich probe. Sources say Burris was told he is not a target.

  • Bunning apologizes

    From NBC's Ken Strickland and Mark Murray
    In a written statement today, Kentucky GOP Sen. Jim Bunning apologized for remarks he made about Supreme Court Justice Ruth Bader Ginsburg, in which he predicted that she would pass away in nine months.

    "I apologize if my comments offended Justice Ginsberg," Bunning said. "That certainly was not my intent. It is great to see her back at the Supreme Court today and I hope she recovers quickly. My thoughts and prayers are with her and her family."

    Note: Bunning's office misspelled Ginsburg's last name. 

  • Bush hitting the speakers' circuit

    From NBC's Abby Livingston

    First Read stumbled onto this -- President George W. Bush is hitting the speakers' circuit, as is former First Lady Laura Bush.  
     
    The Web site pitches the former president this way: "George W. Bush offers his thoughts on eight years in the Oval Office, the challenges facing our nation in the 21st century, the power of freedom, the role of faith, and other pressing issues."

    The former first lady is pitched as: "One of the most popular first ladies in history, is a compelling advocate for issues of national and global concern."
     
    Calls to the company representing the former president, the Washington Speakers Bureau, have not yet been returned. However, ex-presidents typically net north of $100,000 when making speeches.

  • Gallup poll: Obama approval at 63%

    From NBC's Mark Murray and Chuck Todd
    According to the latest Gallup poll, President Obama's approval rating is now at 63%, which is down five percentage points from his initial rating in January. Also, his disapproval number has doubled from 12% in January to 24% now.

    But be careful if you're trying to draw a dramatic conclusion about this slight downward tick. The only group of voters that has moved away from Obama are Republicans, who went from 41% approval in January to 30% now. However, Democrats' approval has remained steady (88% then, 89% now). And -- perhaps most importantly -- so has approval among independents (63% then, 63% now).

  • New York: We'll take their stimulus $

    From NBC's Mark Murray
    New York Sens. Chuck Schumer and Kirsten Gillibrand say that if GOP Govs. Haley Barbour (Mississippi), Bobby Jindal (Louisiana), and Mark Sanford (South Carolina) don't want portions of their stimulus money, then they'll take it.

    "New York receives 78 cents from the federal government for every dollar we send to Washington," the senators wrote President Obama. "If other states are willingly refusing federal support in this time of economic crisis, New York should benefit given our 'donor state' status."

    "If any governor -- Democrat or Republican -- leaves stimulus money on the table, then we respectfully request that funds be distributed to New York," they added. "We will put the money to good use, investing in education and new infrastructure, such as health care IT and high speed rail."

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