CNBCs Steve Liesman pens an op-ed in the New York Daily News on Obama's speech to Wall St: "[W]hat the surviving titans of Wall Street did was nod their heads politely as the regulator in chief laid out why and how the nation's financial system needs to be overhauled. Then, no doubt, many went back to their offices and resumed opposing his reforms."

"The speech … received mixed reviews from finance executives. Industry representatives said afterward they welcomed some of the president's ideas, but they remained strongly opposed to one of his more controversial proposals: creating a federal agency to regulate consumer loans," the Boston Globe says.

In an interview yesterday with John Harwood of CNBC and the New York Times, Obama made two points that if he somehow could convince the country these two facts were true, he'd be having a MUCH easier time selling the country on the government's ability to handle the revamp of the health care system. "One thing I'm pleased about, though, is that when you talked to me earlier in this year, I was concerned that we might have to put more in to stabilize the
financial system. We had a 20--$250 billion reserve just in case things
turned south on us."
 
Harwood then interjected, "And now you know you don't have to do that."
 
Said Obama, "Now we know that we don't have to do it. We've seen a couple of dozen banks who have repaid so far $70 billion in money that they received from TARP. We--taxpayers have gotten a 17 percent interest rate on that investment. And so we're not out of the woods, the financial system hasn't stabilized, but what we're seeing at least is some sense of normalcy returning. And as I said today on Wall Street, the key is making sure that normalcy doesn't translate into complacency."

The biggest issue for the president in the next 18 months is not health care; it's jobs. "Despite fresh signs that the worst may be over for the beleaguered U.S. economy, there has been no letup in public fears about possible financial hardship ahead and there is broad concern that not enough is being done to avert another meltdown, according to a new Washington Post-ABC News poll."

More: "Nearly six in 10 Americans are now concerned about job or pay losses in the coming months, little changed since February, and there has been no increase in the percentage who see the federal government's stimulus efforts as having an impact, even as the pace of layoffs has eased in recent months. And there is lukewarm public confidence that the government is enacting measures to stave off another financial crisis. Overall, 49 percent say they are confident that sufficient new financial regulations are being put into place, but just one in 10 expresses a lot of faith that this is happening. Fewer respondents think that major financial institutions are adapting their business practices to make another meltdown less likely (41 percent say they are confident this is occurring; 8 percent are "very confident" it is)."

The Hill: "President Barack Obamas address to the AFL-CIO on Tuesday will shed light on a precarious friendship that will be tested in the near future. Though the president is expected to celebrate his relationship with unions that fervently supported his 2008 campaign, differences between Obama and organized labor will be at the forefront during his address at the AFL-CIOs convention. On healthcare, Obama has voiced support for a public insurance option but is not insisting on one. Obama supports a card-check bill that would make it easier for unions to organize, but has not thrown his weight into the congressional debate to force Congress to move on it more quickly."  

The New York Post has the details of Presidents Obama's and Clintons lunch together after Obama's speech to Wall St. yesterday: "They took over a pricey pasta palace in Greenwich Village for a private lunch yesterday as the Secret Service guarded the doors, and traffic on local streets came to a standstill. Obama was chauffeured to Il Mulino on West Third Street to see Clinton after delivering a speech on Wall Street. The two men -- who exchanged bitter words during the 2008 Democratic primary campaign -- gave only hints about how they spent the 90-minute meal."

Finally, R.I.P. Jody Powell... Like current White Press Secretary, Robert Gibbs, Powell was one of the few press secretaries that also was in the room with the president at those critical moments.

Canada isn't inclined to extend its Afghanistan troop commitment even if asked directly by Obama. 
 
Those new Eastern European democracies are missing George W. Bush. Is President Obama more "old Europe"? 
 
The U.S. military has active combat operations in Somalia? Something "we know' and yet "we don't know." Get our drift?

"House Republican Leader John Boehner (Ohio) announced Monday he would vote against any resolution disapproving of Wilson's conduct, which led Democrats to charge the minority leader with flip-flopping on the matter of whether Wilson should offer an apology on the floor. Most Republicans are expected to vote against the resolution of disapproval. Aides said a handful of GOP institutionalists appalled by the outburst or vulnerable members from districts won by Obama might defect from Boehner's position," The Hill says.

By the way, Wilson autographed a picture of his outburst for a supporter.

"Democrats on the Senate Finance Committee are poised to demand changes to the healthcare legislation being drafted by their chairman. Finance Committee Chairman Max Baucus (D-Mont.) plans to introduce his proposal for healthcare reform on Wednesday with a committee mark up to begin the following Tuesday. Based on the comments by several committee Democrats after a meeting Monday evening, that mark up could be a lengthy one." More: "Near the top of the list for the panels Democrats is worry that health insurance subsidies will not be sufficiently generous nor available to enough people despite the fact that the bill would legally require most people to obtain coverage. Beyond premiums, some Democrats are concerned that Baucus's proposal would not do enough to protect middle-class families from high healthcare expenses."

ARKANSAS: A new poll shows Sen. Blanche Lincoln (D-Ark.) in better shape than other recent polling had her, but she is still well under 50 percent support. The Daily Kos/Resarch 2000 poll shows Lincoln leading recently declared candidate state Sen. Gilbert Baker (R) 44-37 and businessman Curtis Coleman (R) 45-37.

CONNECTICUT: Let's get ready to rumble? "World Wrestling Entertainment (WWE) CEO Linda McMahon appears primed to run for Senate in Connecticut and should make an announcement very soon, according to sources with knowledge of her deliberations."

MASSACHUSETTS: "The US Senate race came into sharper focus yesterday as a surprise candidate, Boston Celtics co-owner and wealthy private equity investor Stephen G. Pagliuca, emerged from the wings in a possible pursuit of the Democratic nomination, while US Representative Stephen F. Lynch prepared for his formal announcement tomorrow."

NEW YORK: "Rick Lazio, the former Long Island congressman who tried to take on Hillary Rodham Clinton in 2000 for US Senate, will formally declare he's running for governor next Monday, The Post has learned. Lazio's announcement, set for Albany next Monday, means that unlike 2000, when he deferred to Rudy Giuliani's expected campaign against Clinton, he is not waiting for the former mayor to decide his 2010 plans about a possible gubernatorial run."

NEW JERSEY: The Washington Post's Cillizza calls the tightening in poll numbers between gubernatorial nominees Chris Christie (R) and Jon Corzine (D) a Christie comedown story, rather than a Corzine comeback narrative. Cillizza: "Corzine's problem is that even as Christie's numbers have dropped, his numbers have stayed about the same. Of the 10 polls conducted since the start of August, Corzine's share of the vote has never gone higher than 42 percent and generally hovers in the 39/40 percent range. But New Jersey Democrats point to the fact that in nearly every election cycle Republicans look like they might pull out a victory in New Jersey only to see the Democratic candidate ultimately prevail. Why? New Jersey voters pay very little attention to politics but when they do finally dial in to the political season, they tend to revert back to their Democratic tendencies."

VIRGINIA: Gubernatorial nominees Bob McDonnell (R) and Creigh Deeds (D) will debate twice this week first, today before members of local bar associations and then, on Thursday, at a full-blown debate in sponsored by the Fairfax County Chamber of Commerce. NBC's David Gregory will moderate the latter one.

From NBC's Kelly O'Donnell
On the Senate floor, a resolution was read -- and then passed -- to name the Caucus Room in the Russell Senate Office building the "Kennedy Caucus Room."

All three Kennedy brothers' service in the Senate was described in the resolution. Both JFK and RFK announced their candidacies for the presidency in the Caucus Room, which is on the third floor of the Russell building, just steps from Ted Kennedy's office.

Rep. Patrick Kennedy, Ted's son, was present for this honor.

It was introduced by Sen. Chris Dodd, and Sen. John Kerry spoke as well.

It was passed approx 6:05 pm ET.

From NBC's Bobby Cervantes and Ali Weinberg
The National Rifle Association's Institute for Legislative Action today
endorsed Republican Bob McDonnell in Virginia's gubernatorial race --
reversing its endorsement from four years ago, when it backed Creigh
Deeds in the 2005 McDonnell-Deeds attorney general contest that
McDonnell won.
 
Chris Cox, executive director of the NRA group, said in a conference
call with reporters that McDonnell has been "steadfast and forthright"
in his support of Virginians' gun rights during his tenure as that
state's attorney general.
 
In particular, Cox cited McDonnell's involvement in the 2007 case
District of Columbia v. Heller, in which the Supreme Court narrowly
ruled that the 2nd Amendment protects an individual's right to possess
a firearm for lawful purposes, irrespective of military service.

McDonnell was one of 33 state attorney generals who signed onto an amicus brief petitioning the court to hear the case.
 
"[The case] will color 2nd Amendment law for many, many decades going forward," Cox said, adding that McDonnell also worked on that brief through the NRA's office.
 
Cox also commended then-Attorney General McDonnell's support for outlawing "straw purchases" of guns, in which a licensed gun owner buys a firearm for someone else, during his tenure. New York City Mayor Michael Bloomberg sent a team of undercover agents to make these purchases in Virginia gun stores in 2007. McDonnell sent a letter to current Gov. Tim Kaine (D), encouraging him to pass legislation prohibiting the sting operations.
 
Addressing the perceived about-face in endorsements, Cox said Virginians were "shocked and disappointed" when Creigh flip-flopped and voted for "arbitrary and necessary laws," Cox said, adding that today wasn't about Deeds and the past. After the tragic Virginia Tech shootings, Deeds supported closing the gun-show loophole.
 
"Obviously, a lot's changed in the last four years since the 2005 attorney general race," Cox said. "Two things that haven't changed are the NRA and Bob McDonnell. The one thing that did change was Creigh Deeds."

From NBC's Savannah Guthrie
Rep. Joe Wilson's (R-SC) opponent in SC-2 has raised more than $1.5 million, according to the DCCC.

"Since Republican Congressman Joe Wilson's outburst on the House floor his Democratic opponent, former Marine Rob Miller, has received over 40,000 individual grassroots contributions raising more than $1.5 million," Jessica Santillo, Southern regional press secretary for the DCCC, wrote in an e-mail.

A Republican source says Wilson has raised more than $1 million.

*** UPDATE *** Wilson's tally is apparently up to $1.5 million.

From NBC's Ken Strickland
Republican Sen. Chuck Grassley says he wants a less costly health-care bill than the one being drafted by a bipartisan group of Finance Committee members. 

Grassley, who's a member of the so-called Gang of Six said today, "I have proposed it being smaller. I suggested ways to get it smaller, but I don't want to get into those ways."

The latest cost estimate from the Congressional Budget Office put the cost just under $880 billion, according to Committee Chairman Max Baucus.

But Grassley said, "Frankly, I think with the big budget deficit the smaller it is the better."

As Baucus prepares to release his proposal this week, Grassley refused to say whether he supports it and will give it the bipartisan support President Obama seeks.

"It's the same answer I would have given you three months ago... nothing's done until it's done," he said. "There is a great deal of intention in moving in that direction"

From NBC's Kelly O'Donnell and Domenico Montanaro
In what's known as "one-minute speeches" on the House floor, where members can address any topic, Rep. Joe Wilson spoke at 2:03 pm ET to his colleagues. No apology, but Wilson plans to discuss what he calls his "hand-out concerns" about health care legislation.

Wilson spoke about his town hall meetings during recess that he claimed were record in size for South Carolina. Wilson said he had not seen "such passionate events full of patriots" in his 25 years of public service.

He also held up papers with his alterative views on health care.  He argued that most people want health-care reform, but "not a government-run takeover."

He ended his one-minute speech with a salute to servicemembers, "God bless our U.S. troops."

Wilson is a retired Army National Guard colonel and has sons in uniform and two who've served in the current wars.

While Wilson did not address his outburst Wednesday, two Republicans who followed him did and urged the House to move on, according to notes House Radio and TV Gallery notes.
 
Rep. Louie Gohmert (TX) raised the specter of hypocrisy toward House Speaker Nancy Pelosi, as he pointed out that she initially said it was time to move on.

Rep. Steve King (IA) called Wilson's outburst a breach of decorum, but that since Wilson called the White House to apologize and since the White House accepted, that should be the end of it.

Wilson is known to participate in "one minutes" practically daily. They tend to focus on his issues of interest, like how  he believes health reform will provide care to illegal immigrants. He chose not to participate on Thursday, the day after the president's speech to the joint session.

But today, he seemed to be back to business as usual.

"I suppose he's trying to show that he will not be muzzled," a Democratic aide said.

*** UPDATE *** Rep. John Boehner says he'll vote "no" on a resolution that would reprimand Wilson. This despite reports that Boehner actually asked Wilson to apologize not only to the president, but on the House floor.

"Rep. Wilson has apologized to the President, and the President accepted his apology," Boehner said in a statement. "Last Thursday, Speaker Pelosi said that she believed it was time to move on and discuss health care. I couldn't agree more, and that's why I plan to vote 'no' on this resolution. Instead of pursuing this type of petty partisanship, we should be working together to lower costs and expand access to affordable, high-quality health coverage on behalf of the American people."

From NBC's Domenico Montanaro
Democrats and Republicans alike have taken to the U.S. House floor to talk of civility and respect and good sportsmanship.

What's happening here? Has post-partisanship broken out all over? Is this a watershed? Are they about to announce a breakthrough on health care and moving toward finding a real bipartisan solution based on logic and reason?

Don't hold your breath.

This is all about the very important House Resolution 6: Recognition of National Coaches Appreciation Week. It recognizes coaches who make a difference in the lives of children.

From NBC's Ken Strickland
Here's the state of play following a Gang of Six meeting this morning:

Senate Finance Committee Chairman Max Baucus reiterated the point that he's on track to introduce a bill to the committee this week -- perhaps as early as tomorrow. While Republican negotiators are still in the room, it's still unclear if they'll sign on to it. Baucus is optimistic: "We're working toward a bipartisan bill."

Democratic group member Kent Conrad said the issues addressed today were medical malpractice lawsuits, illegal immigrants, and the financial impact on states once Medicaid is expanded. He also said the Congressional Budget Office sent new cost estimates on its proposal. It comes in under $880-billion and doesn't increase the deficit, he said.

The gang meets again this afternoon at 4:00 pm ET; and committee Democrats meet at 5:30 pm.

From NBC's Athena Jones
NEW YORK -- In a stern speech here at Federal Hall, President Obama today sought to remind Wall Street and the American public how close the financial system came to the brink of collapse, called on financial firms rescued by taxpayer dollars to act more responsibly, and urged Congress to pass updated "rules of the road" for the industry.

The president used his 30-minute address -- pegged to the first anniversary of Lehman Brothers' collapse -- to highlight the steps the administration has taken to jump-start an economic recovery and to make the case for strengthening financial regulations.

"Common-sense rules of the road do not hinder the markets but make them stronger," Obama said. "One year ago, we saw in stark relief how markets can err; how a lack of common-sense rules can lead to excess and abuse; how close we can come to the brink. One year later, it is incumbent on us to put in place those reforms that will prevent this kind of crisis from ever happening again."

Treasury Secretary Tim Geithner, Christina Romer, the chair of the Council of Economic Advisers and Paul Volcker, the head of the president's Economic Recovery Advisory Board joined Rep. Barney Frank (D-MA), other members of Congress, New York officials and dozens of bank officials and financial and consumer advocates who were on hand for the speech.

As a candidate, Obama spoke frequently about the need for new regulations on Wall Street that could adequately monitor the 21st century tools and techniques like the credit-default swaps that allowed banks to shift the risk from iffy loans on to others, helping to contribute to a credit squeeze that threatened very existence of dozens of financial firms and worsened the recession.

Earlier this year, the administration outlined some of the changes it wanted Congress to pass, including 1) establishing a new agency tasked with helping to protect consumers from unintelligible contracts and hidden fees, 2) new rules that would close regulatory gaps by creating a council to monitor systemic risk, and 3) providing for stricter regulation of hedge funds and financial instruments like derivatives.

"The system as a whole isn't safe until it is safe from the failure of any individual institution," he said.

The House Financial Services Committee, which Rep. Frank chairs, is heading up the work on Capitol Hill on a regulatory bill. A Frank aide said the bill was on track to hit the House floor by late October or early November. The administration also plans to continue to push for worldwide changes to financial regulation at the G20 meeting in Pittsburgh next week.

Obama -- who told the crowd he "did not run for president to bail out banks or intervene in the capital markets" -- defended his administration's broad and far-reaching steps to help rescue the economy -- including actions taken to stabilize financial firms and the home and credit markets. He said the only way to successfully address the challenges presented by the financial crisis was to address them together.

"Eight months later, the work of recovery continues and though I will never be satisfied while people are out of work and our financial system is weakened, we can be confident that the storms of the past two years are beginning to break," he said. "In fact, while there continues to be a need for government involvement to stabilize the financial system, that necessity is waning."

He explained that banks had repaid $70 billion in taxpayer bailout funds and said that in cases where the government's stake had been sold completely, they had earned 17% on their investment. Today's speech also included some tough words for Wall Street, as Obama argued that firms bailed out by taxpayers "owe a debt to the American people."

"They shouldered the burden of the bailout and they are still bearing the burden of the fallout -- in lost jobs, lost homes and lost opportunities," he said. "It is neither right nor responsible after you've recovered with the help of your government to shirk your obligation to the goal of wider recovery, a more stable system, and a more broadly shared prosperity. So I want to urge you to demonstrate that you take this obligation to heart."

Saying "normalcy cannot lead to complacency", he called on those companies to do more to help struggling homeowners stay in their homes by modifying their mortgage terms, help communities and small businesses get credit, improve financial education, and embrace new the new regulations he's proposed.

From NBC's Domenico Montanaro
A House Democratic leadership aide says Rep. Joe Wilson (R-SC) may have apologized to White House Chief of Staff Rahm Emanuel, but "Rahm is not a member of this body."

The aide says that Majority Whip Jim Clyburn (D-SC) approached Wilson on the House floor on Thursday and told him that, after Wilson said he would not apologize any further. Wilson told Clyburn he was done apologizing, and that he had already apologized to Emanuel.

"Rahm is not a member of this body," Clyburn told Wilson on the House floor. He added that there is a swell of Democrats looking to push a "resolution of disapproval" and that he could put an end to this by apologizing to the body formally. He said he would not, and Clyburn said he would then go ahead with the resolution. The resolution is being written (as this is being written) and could be introduced as early as tomorrow.

What do Democrats base the resolution on?
1. A violation of the code of conduct, and
2. A violation of H.CON.RES 179 -- a rule in place for the joint session that says the president is recognized to speak. Democrats say Wilson spoke out of order.

The leadership aide said the booing of President Bush on social security by Democrats was "wrong then. This breach is wrong now."

"Everyone wants to focus on the issues," the aide said, "but not responding to this kind of conduct means consent for this kind of conduct."

When asked if Democrats risk making Wilson look like a martyr, the aide simply said, "It's the right thing to do."

Asked why Clyburn, who is from a neighboring congressional district, is presenting this rather than any other member, the aide said their history and the subject of race is "not a matter for this action in the House." But one for "editorial writers."

From NBC's Domenico Montanaro
With President Obama speaking to Wall St. today about financial regulation, the committee that is spearheading those reforms in the House says a bill is on track to hit the floor by late October or early November.

The Financial Services Committee, headed by Massachusetts Rep. Barney Frank, is pushing to announce more details "very soon," according to an aide.

Committee leadership hopes to have hearings, then markups in October, hit the floor by late October or early November.

The most politically difficult items in trying to get reform passed: a Consumer Financial Protection Agency, or CFPA, and a Systemic Risk Regulator.

Industry has been pushing back hard and has been a significant obstacle to reform getting through.

A Republican leadership aide said of the industry's opposition, "I can't imagine they don't have an opinion."

From NBC's Kelly O'Donnell
Following GOP Rep. Joe Wilson's insistence that he won't apologize on the House floor a "resolution of disapproval" is being drafted now, and the earliest it would be introduced is tomorrow, according to House leadership aide.
 
The aide says: "The issue at hand is one of conduct, not speech. Congressman Wilson's outburst during the joint session was a breach of decorum and brought discredit to the House. It is common for members to address such breaches themselves rather than force action by the full House. Failure to respond would mean consent for that kind of conduct. In the absence of an apology, the House must act to admonish his behavior. These are the standards members are held to when they take the oath of office."

From NBC's Mark Murray
Last Friday, we wondered what kind of role race was playing in some of the opposition to President Obama. Well, days after Joe Wilson's outburst last week, it's a topic that others also are raising.

Here's Maureen Dowd yesterday: "Surrounded by middle-aged white guys — a sepia snapshot of the days when such pols ran Washington like their own men's club — Joe Wilson yelled 'You lie!' at a president who didn't. But, fair or not, what I heard was an unspoken word in the air: You lie, boy!"

Dowd continued, "Wilson's shocking disrespect for the office of the president — no Democrat ever shouted "liar" at W. when he was hawking a fake case for war in Iraq — convinced me: Some people just can't believe a black man is president and will never accept it."

And here's Politico's Jonathan Martin reporting from last week's DNC meeting in Austin, TX: "Eight months into Barack Obama's presidency, as criticism of his administration seems to reach new levels of volume and intensity each week, the whispers among some of his allies are growing louder: That those who loathe the nation's first African-American president, and especially those who would deny his citizenship, are driven at least in part by racism... 'As far as African-Americans are concerned, we think most of it is,' said Rep. Eddie Bernice Johnson (D-Texas), when asked in an interview in between sessions how much of the more extreme anger at Obama is based upon his race. 'And we think it's very unfortunate. We as African-American people of course are very sensitive to it.'"

More: "Rep. Mike Honda (D-Calif.), chairman of the Congressional Asian Pacific American Caucus, agreed with his colleague that elements of the opposition can't accept the reality of a black president. 'There's a very angry, small group of folks that just didn't like the fact that Barack Obama won the presidency,' Honda said, adding: 'With some, I think it is [about race].' Said Rep. Barbara Lee (D-Calif.) about the race factor: 'There are some issues that have been swept under the rug and we're not witnessing them come out.'"

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Blessings and curses: Lehman Brothers' collapse a year ago was both a blessing and a curse for Barack Obama. A blessing because it turned the final month and a half of the presidential race into a contest over the economy, which the Republicans and (especially) John McCain were ill-suited to win. (But it would be wrong to suggest that the Lehman collapse was the reason Obama won -- by mid-September 2008, the Palin bounce was fading, McCain lost the three debates, and the political environment had always favored the Democrats.) But it was a curse, too, given the anemic economy Obama inherited, and the future of that economy will largely determine Obama's political fate. On this one-year anniversary of Lehman's collapse, President Obama heads to New York City today to give a speech about the economy. Interestingly, the speech, as well as the rest of his agenda this week, could end up helping Obama's cause on health care. Any day the president is focused more on the economy than any other issue is a good day as far as Rahm Emanuel and the White House is concerned. One thing we learned over the summer was that Congress accomplished more on the sausage-making front (on health care and energy) when the White House was focused on other issues.

*** The deets on the speech: Obama's speech today will take place at 12:10 pm ET. According to an administration official, Obama will 1) discuss his plan to wind down government involvement in the financial sector, 2) argue for financial regulations to prevent future economic crises, 3) recount the actions his administration took to stabilize the economy, and 4) urge Wall Street to begin taking responsibility for its actions and stress its obligations to the American people. The audience, at Federal Hall on Wall Street, will consist of members of the financial community, members of Congress, Treasury Secretary Tim Geithner, adviser Christina Romer, the president's Economic Recovery Advisory Board, and consumer and progressive advocates. 

*** The fatigue factor: Regarding Point #1 -- Obama's promise that the government will unwind its involvement in the financial industry -- this is the root of the president's political problem right now. The government's intervention in the financial industry and the auto industry is proving to be an impediment to galvanizing the public on health care. Just take a look at the new Washington Post/ABC poll: The underlying message is that Obama is trying to do too much, and that government, like a credit card, is overextended. This is clearly something that frustrates the president. Note his reaction last night on "60 Minutes," when CBS' Kroft asked him the "fatigue" question. Obama tried to remind Kroft and viewers that this wasn't started on his watch. But as many of us warned folks back in the spring, the public has about a six-month memory. And, voila, it was at about at Month Six when the public started holding the president more responsible for all of the country's economic related ills -- fair or not. It comes with the job. 

*** No game-changer? Here's more from the Washington Post/ABC poll that was conducted AFTER Obama's speech: Obama's approval/disapproval on health care is 48%-48% (up from 46%-50% last month); 46% favor his reform efforts and 48% oppose them; and 54% say the more they hear about Obama's plans, they less they like them. Also, among seniors, 56% of them think reform will weaken Medicare. 

*** Whither the public option: The media seem to have declared the public option dead, thanks to comments from the two Maine-iacs -- Olympia Snowe and Susan Collins -- over the weekend. But what's dead? The idea itself? Or the legislation that would immediately implement it? It looks like a game of trigger vs. co-ops, with the trigger more alive than some realize.

*** Speaking of blessings and curses…: Meanwhile, the conservative Tea Party protest in DC over the weekend was a blessing and curse for the Republican Party. A blessing because it demonstrated, once again, a grassroots backlash against the current administration that the GOP can potentially tap into this November (in NJ and VA) and 2010. That's possibly why Republican leaders -- from South Carolina Sen. Jim DeMint to Mike Pence-- addressed the audience that was estimated to number in the tens of thousands. But it also could be a curse, given that Republicans are attaching themselves to a movement that contains some not-so happy elements. As the New York Times recounted, one sign called Obama "the parasite in chief," while others likened him to Hitler. And another read, "Bury Obama Care with Kennedy." Still, what made Saturday's protest unique was that it was from the right, not the left. Over the last few decades, conservatives have never been as active on the protest front. The intensity we're seeing is something that Republicans for both 2010 and 2012 need to figure out how to channel. 

*** A game of chicken: South Carolina GOP Rep. Joe Wilson says he's NOT apologizing on the House floor for his "You lie!" outburst at Obama on Wednesday. Democratic leaders have threatened to reprimand Wilson if he doesn't issue that kind of apology. "The American people are fed up with the political games in Washington, and I refuse to participate in an effort to divert our attention away from the task at hand of reforming health insurance and creating new jobs," Wilson said in a statement yesterday. "Having apologized on Wednesday to the White House, we agreed that we must move forward in a civil manner to do the work the American people have sent us here to do. Health insurance reform is too important to take a backseat to political partisanship." While last week's outburst seemed to give life to Wilson's opponent – who raised almost $1 million in grassroots contributions!!! -- the GOP congressman seems to be embracing his newfound celebrity, and nothing would financially benefit him more now than a formal rebuke on the House floor.

*** 'A real revelation': In an interview on TODAY this morning timed to the publication of their late father's book, "True Compass," Rep. Patrick Kennedy and Ted Kennedy Jr. told Matt Lauer that the book was a real revelation to them, NBC's Andrea Mitchell reports. Patrick said his father had always been "old Irish" -- not speaking of his emotions and private thoughts. So, for him, reading the book "was an enormous revelation." Ted Jr. said that after reading the book, "his voice was speaking to me in a powerful way. I was comforted." Speaking of his parent's divorce, Mitchell adds, Ted Jr. said that like many couples at the time, they got married very young. He said he thought his father was "very gracious to my mother" about the reasons for their divorce. Asked about Chappaquiddick, Patrick said that "someone else would have been paralyzed" but that his father "spent his life trying to make up for his failings… He carried on."
 
*** 2009 watch: Football fans in the DC market were treated to a slew of airings of a new TV ad in which Bob McDonnell looks to the camera to defend himself over attacks on his character via that 20-year old graduate thesis that he wrote when he was 34. The ad is striking for one simple reason: It's airing two weeks after the issue first surfaced. Clearly, the thesis story had an impact. The question for McDonnell: Can he ever put this issue to rest, or will we see TV ads in October also trying to repair the damage? By the way, McDonnell, strategically, deserves credit for trying to not let this fester, not putting their head in the proverbial sand. Still, it's not a good sign for the front-runner.

Countdown to Election Day 2009: 50 days
Countdown to Primary to Replace Ted Kennedy: 85 days
Countdown to Special Election to Replace Kennedy: 127 days
Countdown to Election Day 2010: 414 days

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The Washington Post previews Obama's speech today on the economy. "President Obama will head to Wall Street on Monday to try to breathe new life into efforts to overhaul the financial regulatory system, an undertaking he has said is essential to halting the abuses and failures that led to the current crisis. While the health-care debate has raged nationwide throughout the summer, financial reform virtually vanished from the public radar, even as an army of lobbyists worked on Capitol Hill to reshape the president's agenda."

"In New York, Obama will try to retake the initiative, capping other recent efforts in which top government officials have emphasized improvements in the economy and made the case anew for rewriting the nation's financial rulebook. He will urge members of the financial community 'to take responsibility, not only to support reforming the regulatory system but also to avoid a return to the practices on Wall Street that led us to the financial crisis,' an administration official said Sunday." 

Bloomberg adds, "Obama will use the backdrop of Federal Hall in New York City to try and revive efforts at revamping market regulations. The president will urge the financial community to support that goal and he will emphasize the need for global coordination on financial oversight, according to an administration official speaking on the condition of anonymity." 

The New York Times: "Between financial rescue missions and the economic stimulus program, government spending accounts for a bigger share of the nation's economy -- 26 percent -- than at any time since World War II. The government is financing 9 out of 10 new mortgages in the United States. If you buy a car from General Motors, you are buying from a company that is 60 percent owned by the government. If you take out a car loan or run up your credit card, the chances are good that the government is financing both your debt and that of your bank. And if you buy life insurance from the American International Group, you will be buying from a company that is almost 80 percent federally owned." 

"Five of the biggest banks -- Goldman, JPMorgan, Wells Fargo, Citigroup and Bank of America -- posted second-quarter profits totaling $13 billion. That's more than double what they made in the second quarter of 2008 and nearly two-thirds as much as the $20.7 billion they earned in the second quarter of 2007 -- when the economy was considered strong. The failure of Lehman Brothers -- the biggest bankruptcy in U.S. history -- and the panicky sales of Bear Stearns to JPMorgan and Merrill Lynch to Bank of America transformed Wall Street and gave fewer competitors increased market power."   

The Washington Post on the new Post/ABC poll: "President Obama continues to face significant public resistance to his drive to initiate far-reaching changes to the country's health-care system, with widespread skepticism about central tenets of his plan, according to a new Washington Post-ABC News poll. But after a summer of angry debate and protests, opposition to the effort has eased somewhat, and there appears to be potential for further softening among critics if Congress abandons the idea of a government-sponsored health insurance option, a proposal that has become a flash point in the debate. The gap in passion, which had shown greater intensity among opponents of the plan, has also begun to close, with supporters increasingly energized and more now seeing reform as possible without people being forced to give up their current coverage."

On Saturday, Obama spoke to 15,000 in Minneapolis. 

"Hospitals and drug makers like what they see in the early version of a health-care plan that may evolve into the one that ends up on President Barack Obama's desk. But insurers and doctors say they aren't happy. Neither are advocates for low-income workers and some business groups representing employers."

Rep. Joe Wilson has now raised more than $700,000 since his outburst Wednesday during the president's address to Congress.

His likely 2010 opponent, Rob Miller, has raised almost $1 million. 

Americans United has a new TV ad arguing that a vote against health-care reform is bad politics. 

The Boston Globe: "Senator Olympia J. Snowe, a Republican from Maine who is one of the most influential voices in the debate, said the public option is politically out of the question. Senator Dianne Feinstein, Democrat of California, which is experiencing grievous budget problems, said the bill must not foist new costs on states, and Senator Susan M. Collins, a Republican from Maine, said cost was the number one concern, as I talk to my constituents. On Saturday thousands of people from across the country converged on the mall, angrily protesting Obama's health care plans, deficit spending, and overall agenda. Some of the protesters held signs praising U.S. Representative Joe Wilson of South Carolina, who said yesterday that he would not apologize from the House floor."

More: "In his 60 Minutes interview, Obama also acknowledged he has nearly given up working out a deal on health care with all but a few Republicans, the majority of whom he said were interested only in using the issue to restore their party to power."

"Iowa Sen. Tom Harkin, a Democrat who recently filled the late Sen. Ted Kennedy's seat as chairman of the Health, Education, Labor and Pensions Committee, said Sunday that a Senate health-care reform bill would include a "strong" public option and that it would get through by the holiday recess," CNN reports.

The Hill: Adm. Mike Mullen, the chairman of the Joint Chiefs of Staff, will take center stage Tuesday as the Senate Armed Services Committee hears his nomination to stay on as President Barack Obama's top military adviser. Mullen will have to answer a myriad of questions about the security situation in Afghanistan. He is up for another two-year term as the chairman of the Joint Chiefs of Staff. He can serve for a total of four years.  

MASSACHUSETTS: State Attorney General Martha Coakley faces a big fundraising hurdle, the Boston Globe writes. "How big? If $5 million is the goal, she must raise an average of $58,000 every day for the next 86 days. Even if the target is a more modest $3 million, that's $34,000 a day. Coakley has advantages in being the only statewide elected official in the race, but fund-raising is not one of them. Because cash raised for state campaigns cannot be used in a federal election, she started the race with zero money and no federal campaign account before Sept. 3, the date of her campaigns statement of organization. 'I think to reach voters in the state, even in a short period of time, a campaign would have to have between $5 million and $7 million,' said Martin T. Meehan, the former US representative who has more than $4.8 million in his dormant campaign account but declined to enter the race to continue as chancellor at the University of Massachusetts at Lowell." 

NEW JERSEY: A new Monmouth University/Gannett poll puts Republican nominee Chris Christie eight points ahead of his opponent Jon Corzine, 47%-39%. But Patrick Murray, Monmouth's polling director, says the numbers indicate there is a lot of churning in this electorate. Despite the incumbent's continued unpopularity, there is still a sense that anything can happen. A Quinnipiac University poll released last week had Christie leading by 10. And Christie had led by 14 in the last Monmouth poll. Still, 39% for an incumbent is pretty low. 

The Philadelphia Inquirer reports that national Democratic and Republican groups have funneled more than $5 million into the New Jersey gubernatorial race. As far as the implications of this year's gubernatorial races in New Jersey and Virginia to the 2010 elections, University of Virginia political science professor Larry Sabato is wary of overstating an effect. He noted that since 1965, only two off-year governors races preceded same-party successes or failures in the midterms.

TENNESSEE: Incumbent Democratic Rep. Steve Cohen, a white Jew who represents a majority African-American district, is receiving another primary challenger from a black Democrat -- and the race is over race. "A Congressional race in Tennessee has become freighted with racial overtones almost a year before the election, with a prominent black politician saying the white incumbent cannot properly represent black voters… The black candidate, former Mayor Willie W. Herenton of Memphis, has argued that Tennessee needs a black voice in its currently all-white delegation."

"'To know Steve Cohen is to know that he really does not think very much of African-Americans,' Mr. Herenton said in a recent radio interview on KWAM. 'He's played the black community well.'"

VIRGINIA: Despite Democrat Creigh Deeds' jabs at Bob McDonnell's conservative stances on abortion, homosexuality and working women, Republican Bob McDonnell sidesteps those issues as he tries to stay above the fray, the Washington Post writes. "McDonnell's strategy has proven difficult the past two weeks after the release of the thesis, but the campaign insists it's the right one. Of Deeds strategy, which also includes repeated attempts to tie McDonnell to the policies of George W. Bush, McDonnell said, 'He's talking about former presidents and former governors and divisive social issues'… He's talking about things people don't care about. So why would I engage him?'"

From NBC's Mike Viqueira
The White House tonight is providing the below clarification on what the president's health-care proposals would mean when it comes to the issue of illegal immigrants.

The question, as we all know, arises from the Wilson "You lie" outburst, and the core claim that notwithstanding specific bill language barring illegal immigrants from participating in the "exchange," as a practical matter, there is no way of verifying the citizenship of applicants -- which is the current state of play. Republicans say that then means illegal immigrants would end up being enrolled in plans -- bill language or no bill language.

Today, for the first time as far as we know, the administration is backing a provision that would require proof of citizenship before someone could enroll in a plan selected on the exchange.

Here, the administration also concedes that hospitals would be compensated with public funds for the care of undocumented immigrants.

The bullet points sent tonight by the White House:

• Undocumented immigrants would not be able to buy private insurance on the exchange. Those who are lawfully present in this country would be able to participate.
• Undocumented immigrants would be able to buy insurance in the non-exchange private market, just as they do today. That market will shrink as the exchange takes hold, but it will still exist and will be subject to reforms such as the bans on pre-existing conditions and caps.
• Verification will be required when purchasing health insurance on the exchange. One option is the SAVE program (Systematic Alien Verification for Entitlements) which states currently use to make sure that undocumented immigrants don't participate in safety-net programs for which they are ineligible.
• There would be no change in the law that requires emergency rooms to treat people who need emergency care, including undocumented immigrants. There is already a federal grant program that compensates states for emergency room costs associated with treatment of undocumented immigrants, a provision sponsored by a Republican lawmaker.

THE WEEK AHEAD: Obama to address Wall St, heads to PA for Specter fundraiser and AFL-CIO, Ted Kennedy book out, Values Voters Summit, Meet the Press and a First Read fact check: Health insurance for illegal immigrants?

For our mailbox, submit your questions for next week in the comments section below. We might pick yours.

From NBC's Kelly O'Donnell
Aides to House Speaker Nancy Pelosi say that if embattled GOP Rep. Joe Wilson does not apologize for his outburst directed at the president on the House floor next week, the House will likely introduce a "resolution of disapproval."

From NBC's Mark Murray
As the New York Times previewed, Senate Armed Services Chairman Carl Levin today delivered remarks on the Senate floor arguing that the Obama administration shouldn't send more U.S. combat troops to Afghanistan until it has worked first to boost the Afghan security forces.

"I recently returned from a trip to Afghanistan, where I was joined by my colleagues Senators Jack Reed and Ted Kaufman," he said. "The situation in Afghanistan is serious. Security has deteriorated. But if we take the right steps, we can ensure that Afghanistan does not revert to a Taliban-friendly government that could once again provide a safe haven for al Qaeda to terrorize us and the world."

More: "[W]e should increase and accelerate our efforts to support the Afghan security forces in their efforts to become self-sufficient in delivering security to their nation -- before we consider whether to increase U.S. combat forces above the levels already planned for the next few months."

While other Democrats -- including Speaker Nancy Pelosi -- are expressing doubts about sending more troops into Afghanistan, Republicans are backing Obama's expected troop increase.

Here's a statement from House Minority Whip Eric Cantor: "Although we have made progress through the sacrifices of our brave men and women in the field, the enemy is not yet defeated in a war we simply cannot afford to lose. We owe an immeasurable debt to our troops and their families for their sacrifices. I also applaud the President for his continued support for the War in Afghanistan and for his commitment to provide the men and women in uniform, and the generals on the battlefields, the necessary resources to achieve victory."  

From NBC's Bobby Cervantes
The Republican ticket's top three candidates in Virginia's statewide elections this November said in a conference call with reporters on Thursday that any health-care reform proposals in the state should avoid excessive government intrusion and instead focus on offering private-sector incentives.

On the day after President Obama's health-care address to Congress, GOP gubernatorial nominee Bob McDonnell, Lt. Gov. Bill Bolling, and attorney general hopeful Ken Cuccinelli offered their ideas on health reform.

With an emphasis on free market reform principles, the trio was adamant about rejecting proposals that introduce heavy government mandates and tax increases. "Last night, when we heard the president outline his vision for health care reform at the national level, we think he took wrong approach," Bolling said. "The wrong approach is for government to take over our health-care delivery system. The right approach is to try to access and affordability in the private sector."

While he found some common ground with some details of the president's address -- most notably, medical malpractice reform -- McDonnell disparaged the so-called public option.   

"It's yet another federal dictate and another mandate on the free enterprise system that's common with this administration," he said, adding that sooner or later, it will "lead to a complete take over by the federal government."