Daily Roundup

Leader: President of Cool

- Barack Obama may have already been the President of Cool, but he just keeps getting cooler in the eyes of the American people. A new WSJ/NBC poll puts Obama's popularity higher than ever-- almost 70% of Americans have a favorable opinion of the President, and nearly 50% have a "very favorable" opinion. This is all despite 70% of Americans are "very dissatisfied" with the economy.

- Meanwhile, the Republican Party is rending itself in two, with an ongoing spat between the GOP establishment and Rush Limbaugh, the "bloated face and drug-addled  voice of the Republican Party." (In the words of Paul Begala)  And remember the time Rush was pulled off ESPN for being a racist? What a guy. Not surprisingly, the poll finds favorability of Republicans at an all-time low.

- Yesterday on MSNBC, Simon spoke of the unpopularity of the GOP, and the failure of the Party to engage with the real problems faced by our country. Simon wants a constructive Republican Party-- not one rooting for the failure of the Obama administration. 

Politics

- Mike Quigley, Cook County Commissioner, has claimed the Democratic nomination for the special election to fill Rahm Emanuel's congressional seat, making him the favorite for the election a month from now.

- President Obama has nominated John Berry, former director of the National Zoo, to direct the office of personnel management-- effectively overseeing the entire federal workforce.  Is he just the right man for the job, or is this also brilliant tongue-in-cheek humor from our President?

- Gebe Martinez, writing in Politico, wonders if President Obama has forgotten about immigration. The issue has certainly been getting less attention after the release of Obama's budget blueprint that doesn't make much mention of it.

Economy

- Fed Chairman Ben Bernanke gave a tacit endorsement to President Obama's use of aggressive government action to combat the recession. Bernanke in the NY Times: "Our economy and financial markets face extraordinary challenges, and a failure by policy makers to address these challenges in a timely way would likely be more costly in the end."

- Bernanke also laid pretty hard into AIG yesterday.  Here he is: "I think if there's a single episode in this entire 18 months that has made me more angry, I can't think of one, than AIG."

International

- Marc Lacey, covering Cuba, writes that Raul Castro, in his first year as president, has not been the reformer he said he would be. This week, however, Castro may be taking that criticism to heart, as he seems to be shaking things up a bit in the bureaucracy.

- This week's attack on the Sri Lankan cricket team in Pakistan is under investigation, and suspects are in custody.  Still, the negative impact this will have on regional diplomacy and the morale of Pakistani cricket fans is significant.

One More Thing

- Were you thinking about buying Crooked Rod's tell-all book? Better not.  Glenn Beck will hunt you down and kill you like a dog if you buy it.  Spencer Ackerman has my favorite counter-challenge.

- He is Senator Ted Kennedy no longer. Now he's Senator Sir Ted Kennedy.

- Last, the DCCC is making it easier than ever for Republicans to apologize to Rush Limbaugh:

Leader: Dow Jones' Terrible, Horrible, No Good, Very Bad Day

- Remember 1997?  Yeah, me neither.  Yesterday, the Dow hit its lowest point-- below 7,000-- since April of that forgotten year.  There was no single reason for the decline, but AIG's loss of $61 billion contributed, as did reports on the foul state of the construction industry. Business Week notes that the market is in "uncharted territory," and nobody quite knows what's next.

- Senators John McCain and Byron Dorgan want to create a "Senate Select Committee on the Financial Crisis," to investigate the causes behind the collapse of our economy, and to recommend changes to prevent this from happening again.

Politics

- President Obama is serious about healthcare reform, and is similarly serious about avoiding the missteps made by the Clinton team 16 years ago.

- Obama's hefty budget will likely require the government to hire additional employees numbering in the tens of thousands, according to the WaPo.

- A batch of legal opinions issued during the Bush presidency were released yesterday, and, taken together, they offer the clearest picture yet of the broad executive authority assumed by the Bush White House as it prosecuted the war on terror both overseas and on American soil.  

- In related news of Bush-era government criminality, the CIA has fessed up to destroying 92 videos showing harsh interrogations, and the interrogators will likely be off the legal hook.  

- The wind chill is putting DC temperatures in the single digits right now, but apparently that's a good thing: A new report says that the U.S. has among the most ample "wind resources" in the world.

Economy

- Consensus is emerging that, though the government takeover of Fannie Mae and Freddie Mac was intended as a temporary measure, the mortgage giants will likely never fully return to private hands.

International

- President Obama sent Russian President Dmitri Medvedev a letter last month, saying that if Russia would help prevent Iran from obtaining long-range missiles, the U.S. would back off the development of missile defense systems in Eastern Europe. The letter apparently struck a relatively strict tone, saying the threat had to go away, and that simply engaging would not be enough.

- The U.S. Department of Defense estimates that the two major Mexican drug cartels have enlisted as many as 100,000 foot soldiers, making it a military force to rival the Mexican Army. 

One More Thing

- We have bequeathed at least one of our country's great proclivities to the people of Iraq: A fondness for huge cars.  Hummers are particularly popular, but "dealers said that high-ranking government and security officials favor large GMC Yukons, while families looking for cheap but reliable American SUVs tend to opt for the Jeep Grand Cherokee." Terrific.

- Last, RNC Chair Michael Steele audaciously claims to the "de facto leader" of the Republican Party.  At least somebody in the GOP is standing up to Rush:

UPDATE: Well, so much for standing up to Rush.  Steele apologized this morning.

Leader: AIG Arg!

- AIG lost more money ($62 billion) last quarter than any company has in history.  As has become their habit, they've come crawling to the government for a fourth bailout, and Administration officials have determined that it is less expensive to keep pumping liquidity into the company than it would be to let the insurance giant fail. The government agreed yesterday to supply an additional $30 billion to AIG. Will this be the last time?  Nobody really thinks so.

- Reversing the terms of the original TARP bailout, AIG will now be excused from paying dividends to its government sponsors, and the interest rate on all debt will be reduced. The government does, however, hold an 80% stake in the company, and the two sides are working together to find ways the government can ultimately get some return on the $180 billion taxpayers have provided in direct aid and loans.

- Joe Nocera had a good column in the NY Times last Friday explaining how AIG has managed to lose on such a grand scale.

Politics

- Kansas Governor Kathleen Sebelius will be the Secretary of Health and Human Services.  We wish her the best of luck in reforming this country's crazy health care system.

- Voters on the north side of Chicago will go to the polls tomorrow to choose a replacement congressman for the inimitable Rahm Emanuel.  There are three front-runners, and three others with a shot.  Nuts!

- Matt Bai wrote a terrific profile of Newt-- yes, that Newt-- for the NYT Magazine yesterday. Is it a good thing for conservatives to have this man back at the helm? Hard to say.

Economy

- HSBC, while avoiding the beggar-thy-government route, has announced that it wil seek $18 billion from investors, and plans to cut 6,000 jobs as it prepares to weather this financial storm.

- UBS, on the other hand, is raising the salaries of its investment bankers.  I have nothing to say on this subject.

- Paul Krugman has an edifying look back at how we ended up awash in easy money, and how this became a problem.

International

- Western Europe rejected a bailout for Eastern Europe. German Chancellor Angela Merkel led the charge against Hungary's proposal of $240 billion to keep the eastern fringe of the EU solvent. Merkel refused to lump all Eastern European countries together in one assessment, but Ferenc Gyurcsany, Prime Minister of Hungary, warned of a "new Iron Curtain" that would divide the continent.  

- Following a bomb attack that killed the Army Chief of Staff in Guinea, a group of Army troops shot and killed João Bernardo Vieira, the President of neighboring Guinea-Bissau. Both countries have suffered instability in recent months, and this will not make matters any better.

One More Thing

- The SNOWPOCALYPSE has descended on the eastern seaboard of our country.  Readers in Minnesota are bound to be unimpressed, but 5-7 inches of this stuff is pretty alarming for us here in DC.  Don't expect much out of your government today.

- One of the highlights of this year's CPAC conference was this young lad talking about what conservatism really means.  He's thirteen, and he does funny voices:

Leader: Budget, Budget, Everywhere!

- There's only one story today, as everyone has spent the past 24 hours poring through the 10-year budget blueprint issued by President Obama. The 2010 budget clocks in around $3.6 trillion, including a $1.75 trillion deficit, and is a sharp repudiation of three decades of conservative dominance. Bob Greenstein of the CBPP calls the budget "bold courageous and honest," but points out Obama has set himself up for some serious political struggles with Congress.  

-  In the NY Times, David Leonhardt analyzes the way this budget marks the end of the Reagan era, seeking to reverse the trend of growing inequality over the past 30 years. Dan Balz of the WaPo writes that Obama is now "gambling with his own future;" also in the Times,  John Harwood looks at the coming political battles.

- The WaPo breaks the budget down, agency by agency, for your education and enjoyment. They've also got this useful graphic that shows where the money comes from and where it goes (the color red means deficit). Here's who's not so happy with the budget: Big investors, student lenders, David Brooks, and people who make a lot of money.

Economy

- The government will take a 36% stake in Citigroup, and plans to convert many of its preferred shares to common stock.  Chief Executive Vikram Pandit will remain at the helm, though the bank's board of directors will get the shake-up.

International

- President Obama will head to Camp Lejeune, NC today, to officially announce his plan to end the Iraq war by August of 2010.  He will go, surprisingly enough, with the support of Sen. John McCain, who got on board with Obama's plan after extracting promises that, if violence increased, the plan could change.

One More Thing

- OMB director Peter Orszag is the coolest.

- Last, Stephen Colbert challenges Michael Steele to a frank discussion of core conservative principles in the form of freestyle rap:

0:3

Leader: Health Care Piggy Bank

- As a part of the budget he will announce today, President Obama is proposing the creation of a "health care piggy bank" that will be a down payment in a push toward universal coverage.  The fund will grow to $634 billion over ten years, and will be funded largely by tax increases on the wealthiest two percent of Americans and spending cuts. The NY Times calls this plan a "pronounced move to redistribute wealth."

- The President has "eight principles" that will guide his health reform effort. Ezra Klein, healthcare blogowonk-in-chief, responds to those principles here: they're not shocking, he says, but what really matters comes now, as Congress turns those principles into a plan.

- Every major stakeholder in the current healthcare system will find a lot to dislike in the plan, especially Medicare insurers, according to the WSJ.  Under Obama's plan, they'll have to competitively bid to offer plans, which the Administration hopes will lower per-patient expenses.

Politics: Jindal Bites It

- Governor Bobby Jindal's grand launch onto the national stage ended with him landing face-first in the mud. He has been broadly and harshly panned on the right and left for a speech that was substance-free, and a delivery that was mawkish and saccharine. (For which he has been compared to Kenneth on 30 Rock.  Zing.)

- Despite his performance, Marc Ambinder says the lame speech doesn't hurt Jindal's chances for a presidential bid. GOP cheerleader Bill Kristol, responding mainly to Obama's speech on Tuesday, concedes that the Republicans are in serious trouble. Jindal is just one manifestation of that, as I wrote in a post yesterday. 

Economy: GM Slide

- Hot news this morning, GM is in worse shape than even many gloomsayers predicted, as the auto manufacturer posted a $9.6 billion loss in the fourth quarter. After asking the government for $30 billion to restructure last week, it's hard to know what's next for GM.

International: Iraq Withdrawal & Mexican Drug War

- The Obama Administration's plan to draw down troop levels in Iraq will not begin in earnest until after the Iraqi elections in December, and will then go on apace until August 2010.  At that point, as many as 50,000 troops would remain in Iraq in an advisory and training capacity.

One More Thing

-  Perhaps going on the advice of Sen. Ted Kennedy, the Obamas have decided to get Portuguese Water Dog.  Despite Michelle's opposition, I stand with the Obama girls that Frank is a great name for their dog.

- There's an elk in Eagle, Colorado with a bar stool stuck on its head.  Don't worry, elk, we've all been there.

- Last, they finally caught that dang raccoon that had taken up residence on the White House grounds. Apparently, it was lured out with salmon. Sadly, several members of the press corps, also attracted by the fishy smell, were caught in the trap with the raccoons:

Leader: Speechification

- President Obama addressed Congress last night, but his serious yet confident speech sounded like it was directed more at the American people themselves. He did not equivocate about the dire situation in which our economy is now snarled, but he vowed that, with his plan, "We will rebuild, we will recover, and the United States of America will emerge stronger than before."

- Obama's program featured not just his three-legged economic recovery plan, but emphasis on moving toward energy independence, improving our education system, and especially reforming health care-- which he set as a priority for 2009. The tone of the speech has received broad praise, for remaining serious, but offering more optimism than other, recent speeches. In the Washington Times, Simon called the speech "A critical moment in Mr. Obama's evolution from candidate to president."

- Louisiana Governor Bobby Jindal's response to Obama's speech was broadly panned. He took aim at the recovery and reinvestment plan particularly, seeming to reject the idea of federal spending altogether-- strange considering the speech was coming from the Governor's mansion of the state that may have benefitted most from federal spending in recent years.

Economy

- Martin Wolf of the FT compares the upcoming G20 summit to the 1933 London Summit that ended in failure. He writes the speech that President Obama needs to give, to bring the other major markets of the world into a pact to save the world economy.

- A group of insanely wealthy Americans, evidently displeased that UBS is planning to follow orders from the U.S. justice department and disclose the names of people who used their services to avoid paying taxes, are filing a suit against UBS to keep the bank's big mouth shut.

- Arianna Huffington identifies credit cards as the "next domino" in the credit crisis.  As people depend more and more on their cards to make ends meet, and as more and more people lose their jobs, and as more and more of the debt is held by risky borrowers.... Yikes.

International

- The Pakistani Supreme Court has barred Nawaz Sharif, the leader of the major opposition party, from elected office, on account of past criminal activity. Yet more political instability in Pakistan may be on the way. Meanwhile, in the Swat Valley, the Pakistani Taliban extended the cease fire, strengthening the status quo in a way that could lead to the valley becoming a permanent safe haven for terror.

- George Clooney, twice named People magazine's sexiest man alive, announced yesterday that  President Obama planned to choose a special envoy to the Darfur conflict in western Sudan. Darfur activists have applauded the move.

One More Thing

- Sen. David Vitter is up for reelection in 2010, and it promises to be a battle, as he will try to overcome revelations that he was involved in the D.C. Madam prostitution ring. The irony speaks for itself, then, that a porn star-- the 2007 Golden G-String winner, no less-- will be competing for his seat.

- Somebody left Keith Olbermann's mic on last night, and caught this brilliant mutter as Gov. Jindal walked out to give his counter-address:

Leader: Poll Dancing

- A trio of new polls find that President Obama is still broadly popular, but has a lot of work to do reassuring Americans about their economy. A majority of Americans support spending to create jobs, and keep people in their homes, while a minority support bailing out banks and auto manufacturers. Simon is the lead quote in the USA Today article: 

"Look, the American people are pleased with the direction Barack Obama is taking, but there are still parts of the economic recovery plan that people are not sure about. He has to make it very clear that his focus is on the struggle of everyday people, and not on those with means."

- The NY Times/CBS poll gives Obama a 63% approval rating, the USA Today poll puts the number at  62%, and the Washington Post/ABC poll has 68%.  Republicans get much lower approval ratings across the board. 

Politics

- As a substitute for the State of the Union address, President Obama will speak before Congress tonight, and will, of course, focus on the economy. He will be looking to reassure Americans about the swiftly growing deficit, while laying out future objectives that may include fixing our health care system, moving toward energy independence, and rebuilding our education system. Time has the five things you should look for in the speech tonight.

- Speaking of healthcare, the WaPo reports that health care reform-- both lowering costs and expanding coverage-- will be Obama's top fiscal priority for the remainder of this year. 

- Eve Fairbanks of TNR is mystified: Why are Republicans recycling all of John McCain's failed campaign tactics?

- Former Washington governor Gary Locke is now the likely choice to head the commerce department.  The Seattle Times says he has a "squeaky clean" image, which sounds like what we need.

Economy

- AIG is looking for a third government bailout, as it braces for a report of a $60 billion loss in the fourth quarter-- what would be the biggest loss in corporate history.  This comes on top of news that the government is in talks with Citigroup that could lead to a 40% government ownership stake in the bank.

- The WaPo reports that the Obama Administration is clearing the path toward bank nationalization.

International

- Embattled Japanese Prime Minister Taro Aso will be the first foreign head of state to visit with President Obama, signaling a renewed emphasis on the importance of this bilateral relationship.  Will it help Aso's political fortunes in Japan? Maybe, maybe not, but that doesn't seem to be Obama's objective either way.

- The North Korean government says it is planning to launch a satellite into space, a likely reference to an impending missile test.  The missile may be an advanced version of the Taepodong-2, a missile with the capability of hitting Alaska, and possibly the west coast of the US.  

One More Thing

- Is it the economy? Is it the rise of DVR technology? Is it the availability of television on your cell phone?  What ever it is, Americans are watching more TV than ever, an average of 151 hours per month, per person-- that's five hours every day. Holy crap.

- Twitter feels like it's hitting a tipping point.  Politico ran a story about DC's top ten twitterers, and everyone's in a tizzy:

Leader: Big Gov in the Big Citi?

- The government is in talks with mega-bank Citigroup-- talks that could result in American taxpayers taking as much as a 40% stake in the bank.  Bank execs are hoping the figure will be closer to 25%, though talks could fall apart altogether. One objection to the this potentiality is that the move would dilute the value of the stock currently in the hands of shareholders.

- The NY Times reports that over the next few weeks, the Obama Administration will be doing stress tests on twenty of the nation's biggest banks, to gauge how concerned they should be about the potential collapse of our financial system.

Politics

- President Obama wants to work on solving issues with the long-term solvency of the Social Security program, but is catching flak from the left, where congressional leaders would rather spend political capital on other issues.

- Republican Governors are divided over how to best respond to economic pressures. Some want to work with the Obama Administration, others don't even want his dirty, dirty money. Among Obama's allies? Arnold "The Governator" Schwartzenegger, who takes a decidedly pragmatic approach to governing.

- John Heilemann has a great piece in New York magazine, looking at the new public faces of the Republican Party in Bobby Jindal and Michael Steele.  They certainly don't look like most of the Republican Party.  Do they really harbor change?

- Pork is back on Capitol Hill, where less than half the number of lawmakers who pledged to forgo earmarks for pet projects last year have signed up to do the same this year.

Economy

- Mary Schapiro, the new head of the SEC is making bold moves to reverse the errors of her predecessors, and strengthen regulations and enforcement that failed to catch major acts of fraud.

International

- Mexico's drug war is hitting a tipping point in American media.  The WSJ has a great article reporting on the unbridled power of the Mexican cartels. Time writes on the rise of vigilante justice as an answer to the state's failure to provide security. Three former Latin American heads of state authored an op-ed, also in the WSJ, calling the U.S.' war on drugs a failure, and calling for more effective policy.

- A brand new report from the Senate Foreign Relations committee, authored primarily by Sen. Richard Lugar and his staff, calls for normalization of relations with Cuba.  The title says it all: "Changing Cuba Policy-- In the United States National Interest."

- The NY Times reports that U.S. special forces in northern Pakistan have been training the Pakistani military to fight the Taliban and Al Qaeda.  Given that Pakistan ceded the Swat Valley to Taliban militants just last week, their military probably needs all the help it can get.

One More Thing

- Socks, the former first kitty, has left us. RIP, socks.

- Jonathan Jarvis put together this visualization of the credit crisis. This is maybe the best, most straightforward explanation of why our economy has fallen apart that I've seen. Ten minutes, but worth a watch:

Leader: California Dreamin'

-Every day, California comes closer to dropping off the continent into the Pacific Ocean. The state legislature very nearly expedited that process, but recovered at the last moment, and our most populous state will remain with us-- for now, anyway. State lawmakers ended a three-month deadlock on the budget, eliminating a $42 billion shortfall with tax increases, big spending cuts, and lots of borrowing. Whether the legislature can keep the compromise together will be a whole new challenge.

- In other California news, the legislature is moving toward initiating an open primary system for the state, beginning in 2010.  This system would allow all voters to choose a candidate from any party, and the top two vote-getters would move on to the general election-- regardless of party. To pass the constitutional amendment, the measure needs a majority of California voters to be in favor.  This is no sure thing.

Politics

- The Hill makes the stunning observation that nationalizing American banks poses certain political difficulties for President Obama.  Apparently, it would make him seem like a bit of a lefty.

- Senator Pat Leahy makes the case for a Truth Commission in the pages of Time. Some say we should just move past the Bush years, Leahy thinks we need to get to the bottom of what happened, so that it never happens again.

- Gas prices have been down for a while, which means people are buying more gas, which means gas prices are going up again.  Such is the paradox of free markets.

Economy

- The sky is falling! And the sky fell to its lowest point in six years yesterday.

- Searching for parallels to the current recession, Paul Krugman looks back at the Panic of 1873. He's just as pessimistic as the Fed officials he quotes.

International

- Benjamin Netanyahu has gained the mandate to form Israel's government, and become the next Prime Minister. The leader of the hawkish Likud party will likely have to bring centrist and even left-wing partners into his coalition.

- Secretary of State Hillary Clinton appears to be on a full-on listening tour in Asia.  After her awesome stop at TRL Jakarta, she's been hitting a veritable salad bar of different speaking gigs, making it clear that America wants to listen.

One More Thing

- Last, I have no comment except that this is slightly ridiculous and completely amazing:

Leader: Keeping People in Their Homes!

- Speaking in foreclosure hotbed Phoenix, Arizona yesterday, President Obama unveiled his grand plan to stem foreclosures and help struggling homeowners refinance their mortgages. The plan could cost as much as $275 billion, with $75 billion to subsidize loan modifications that would directly help keep people in their homes, and another $200 billion in financial backing to Fannie Mae and Freddie Mac to increase the amount of available credit, and allow homeowners to refinance.

- The plan goes further than many analysts expected, and has drawn praise both from consumer advocate groups and the financial industry. Simon Johnson at The Baseline Scenario calls the plan "impressively comprehensive," but wonders if it goes far enough.  He suspects Obama was limited by his reluctance to ask Congress for more money.

Politics

- The Environmental Protection Agency has begun work to regulate carbon dioxide emissions for the first time.  The EPA is acting on a Supreme Court order to determine whether CO2 is a "pollutant that endangers public health and welfare"-- an order that was ignored throughout the Bush years.

- Kansas Governor Kathleen Sebelius is emerging as the leading contender to head the department of Health and Human Services.  

- Attorney General Eric Holder laid the smack-down yesterday in a speech marking Black History Month for Justice Department employees.  He called the U.S. a "nation of cowards," when it came to addressing race relations, and said the country needs to seriously address its racial issues and "have frank conversations about the racial matters that continue to divide us."

- Returning to a storyline that I used to enjoy but now am terribly bored of: Does Norm Coleman have a chance of retaining his Senate seat?  Survey says: not really.

Economy

- In the dramatic conclusion of an investigation that has been ongoing for nearly a year, Swiss mega-bank UBS has agreed to disclose the names of some of its American investors, violating the secrecy that has been the cornerstone of Swiss banking for centuries.  UBS admitted to helping some 19,000 Americans defraud the United States by avoiding taxes-- as much as $300 million every year. UBS will probably only disclose the names of a few hundred clients. 

- Fed Chairman Ben Bernanke called for "extraordinary measures" beyond the ARRA package to help our economy recover, in a speech at the National Press Club yesterday.  Five minutes later, the Fed released a new set of economic estimates for the fall-- far bleaker than the previous report.

International

- Scott Kraft of the LA Times reports from New Mexico on the drug war raging just south of our border.  Locals are afraid of the war spilling over the border-- last time that happened, Pancho Villa led a raid that left 18 Americans dead and ignited an international incident. CNN compares the rising tide of violence to a "civil war."

- Obama will make his first foreign trip as president today, visiting America's biggest trading partner and primary oil provider-- that's right: Canada. Obama will be looking to soothe fears about protectionist impulses.

One More Thing

- Last, somehow, Secretary of State Hillary Clinton ended up booked on what appears to be TRL Jakarta.  It's.... awesome: