In Denver yesterday, President Obama signed his economic stimulus bill, one that NBC Nightly News termed "the biggest spending bill in American history. Less than a month in office and the President made dramatic history with a simple stroke of the pen." Obama himself, says the Denver Business Journal, referred to the bill as "the most sweeping economic recovery package in the nation's history." In his remarks, which are generating largely positive coverage, Obama sounded a cautiously optimistic tone about the country's economic prospects, and touted the legislation as a step to preserve the "American dream." ABC World News said the President's "tone shifted...as he went from talking about the economic catastrophe the nation would face if Congress did not act, to talking about how the nation would turn the corner because of the stimulus bill, a bill so large that one White House aide joked it needed to be strapped in with a seat belt on Air Force One."
Likewise, the Wall Street Journal says Obama's speech "was largely upbeat, with less emphasis on the nation's economic troubles and more focus on the good things ahead." The Politico similarly reports Obama made a "rhetorical pirouette." The AP reports, "White House press secretary Robert Gibbs, asked by reporters, would not rule out another stimulus in the future, though he said a sequel was not in the works 'at this point.'"
The Politico reports Obama "seems to prefer certain parts of the country," states "that are crucial to Democratic political victories past and future." McClatchy says Obama is "adopting the 'permanent campaign' as a major tool for how he conducts his presidency." The Denver Post reports the President "said the new law will 'convert crisis into opportunity," and the Rocky Mountain News notes that "Obama finished his 14-minute speech at about 1:20 and members of the audience literally jumped from their seats, applauding."
Not all were quite as enthusiastic. The Denver Post reports that as "Obama's pen touched paper today to make the federal stimulus bill law, hundreds of people rallied on the west side of the Colorado Capitol to decry the stimulus as irresponsible." CNN's The Situation Room reported that the bill is now "Obama's baby and burden, all $787 billion of it." USA Today reports "conservatives and Republican leaders in Congress say the plan won't do enough to stimulate the broken economy and will leave a staggering debt." The New York Times notes leaders "of the Democratic Senate and House campaign committees said in interviews that they would try to ensure that Republicans paid a price in 2010 for having opposed the measure." The bill signing was also reported by the Colorado Springs Gazette, the Washington Post, the Washington Times, the Los Angeles Times, the Arizona Republic, Roll Call, and The Hill.
Congressional Approval Rises To 31% USA Today reports, "Despite a partisan battle over the $787 billion economic stimulus bill passed last week, Congress scored its highest approval rating from the public in nearly two years, according to a Gallup Poll released Tuesday." USA Today adds that "about 31% of Americans approve of what Congress is doing -- a jump of 12 percentage points from January." Glenn Thrush notes in The Politico that "over the same period, GOP voters' House and Senate approval rating slipped from 23 to 19 percent."
Although a main purpose of the Troubled Asset Relief Program was to increase bank lending, a new report casts doubt that recipients of TARP funds are following through. The AP reports the "20 largest banks that received government rescue funds slightly reduced their lending to consumers and businesses in the last three months of 2008." The report "is the latest sign that the bailout has done little to increase bank lending." According to the Washington Post, "The banks that got the most government money, Bank of America and Citigroup, led the retreat." The Wall Street Journal adds that Treasury officials acknowledge that "the expected decline in fourth-quarter lending was a sign that the program wasn't working as intended."
Greenspan: Banks Need Billions More The Financial Times reports former Federal Reserve chairman Alan Greenspan said yesterday that the Obama administration "will have to go back to Congress for more money to recapitalise the banking system." Greenspan's "comments suggest the need for hundreds of billions of dollars over and above the funds remaining" in the TARP.
Graham: GOP Open To Nationalizing Banks The Financial Times reports, "Nationalisation is gaining rapid acceptance among Washington opinion-formers," including Republicans. The Times notes that Sen. Lindsey Graham "says that many of his colleagues, including John McCain...agree with his view that nationalisation of some banks should be 'on the table'."
US Has Lost $86.5 Billion On Preferred Shares The Hill reports that the federal government "has lost $86.5 billion in the stock market since the end of October courtesy of the Wall Street bailout."
As required by the initial federal government loans, General Motors and Chrysler submitted their restructuring plans to the Treasury Department on Tuesday. The plans would increase the carmakers' total assistance request to $39 billion, which media reports suggest was a reflection of the ongoing economic downturn's impact on sales. The press coverage, while matter-of-fact, suggests the new submission shows an industry in grave condition.
The Detroit Free Press reports General Motors Corp. "will need at least $2 billion by March to stave off bankruptcy, telling the Obama administration it may take up to a total of $30 billion in federal aid to keep the company afloat." The Detroit News reports there were "new details included in the plan, which prescribes global cuts that hit workers, dealers, bondholders and facilities."
The Detroit News reports Chrysler LLC "wants an additional $2 billion in federal aid on top of the $4 billion received to date and the $3 billion it has requested but has not been granted." The Detroit Free Press reports Chrysler "will need an additional $5 billion to survive the U.S. recession." The Los Angeles Times calls the automakers' turnaround plans a "startling statement on the economic ruin they face."
The story was the lead on NBC and CBS last night. NBC Nightly News reported GM and Chrysler say they "can fix what's broken but it will take a lot more money." ABC World News reported, "For GM and Chrysler, these plans do come with new requests for about $17 billion in more bailout money, and that is hardly encouraging." The CBS Evening News added, "Workers at both companies are worried," and CNN's The Situation Room reported, "No word yet from the Administration on how long it's going to take to review and approve the carmakers' plans."
The Financial Times reports General Motors and Chrysler "insist that a series of cost-cutting measures will be sufficient to keep them out of bankruptcy protection, provided they receive billions more dollars in aid from the US government." The Wall Street Journal reports the recovery plans "would cement GM's fall from the top of the global auto industry to a smaller, more flexible car company relying less on its core U.S. market for sales."
USA Today adds, "More work is needed, the White House hinted," and AFP reports the White House "acknowledged late Tuesday that 'more will be required' to ensure the viability of troubled US automakers General Motors and Chrysler." The New York Times reports in a front page story that the "cash crisis will require fast action by the administration's new cabinet-level Presidential Task Force on Autos, which is overseeing the reorganization of G.M. and Chrysler." The AP, the Washington Post, The Hill, the Washington Post, the Washington Times, and the Washington Post report the story.
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With probes into his testimony before the Illinois legislature's impeachment panel now underway in Washington and Springfield, Sen. Roland Burris is facing increasing pressure to resign his seat. The CBS Evening News noted that "after denying it in sworn testimony, Burris let it slip" Monday "night that he did, in fact, offer to help raise money for now impeached Governor Rod Blagojevich, even as he lobbied him for President Obama's Senate seat." This morning, both the Chicago Tribune and the Washington Post are calling on Burris to resign. The Tribune says, "Disgraceful all around. There's only one honorable action for Burris: resign." The Post, meanwhile, editorializes that "this latest revelation makes a mockery of his professions of no quid pro quo."
The Politico reports "Democrat Mike Quigley, a candidate for White House Chief of Staff Rahm Emanuel's former congressional seat," is also "calling on Burris to resign." McClatchy says that in Illinois, "local legislators aren't buying...Burris' contention that he never got a chance to tell an Illinois House impeachment committee about his conversations with Gov. Rod Blagojevich's brother."
The Washington Post reports, "Democrats and Republicans in Illinois contend that Burris repeatedly failed to disclose his contacts with Blagojevich's inner circle at a time when state and national politicians were asking whether the decision was free from scandal." ABC World News reported that "the Senate Ethics Committee launched an investigation" into Burris. The New York Times notes that "Senate Ethics Committee rules allow the panel to begin an investigation based not just on formal complaints but also news accounts and other information." The Wall Street Journal, Roll Call and The Hill also report on the Senate Committee probe.
Sangamon County State's Attorney John Schmidt told the Chicago Sun-Times that "he is now reviewing sworn testimony submitted by...Burris." Burris said "he will fully cooperate with Schmidt and any other authorities involved in any probe a day after he acknowledged attempting to raise money for...Blagojevich."
The Chicago Tribune, meanwhile, reports Burris is finding "no goodwill from fellow politicians. Republicans and even some Democrats in Illinois called for his resignation, and in Washington, senators who had barely begun to accept his controversial appointment chafed at the revived scandal." USA Today also reports the story.
The Washington Post reports on its front page that in the three-plus months since the presidential election, Gov. Sarah Palin (R) has faced choppy waters upon her return to Alaska, part due to "a residual anger among Democrats for the attack-dog role Palin assumed in the McCain campaign, lingering resentment from Republicans for the part she may have played in McCain's defeat, and a suspicion crossing party lines that the concerns of Alaska, at a time of economic crisis, will now be secondary to her future in national politics."
CBS News reported on its 'Political Hotsheet' blog that Louisiana Gov. Bobby Jindal (R), "a potential 2012 GOP presidential candidate, has suggested his state may not be interested in all of the roughly $4 billion allotted to it in the economic stimulus package." Jindal said in a TV interview, "We'll have to review each program, each new dollar to make sure that we understand what are the conditions, what are the strings and see whether it's beneficial for Louisiana to use those dollars."
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The Hill reports that a Quinnipiac University survey of 1,065 New York registered voters conducted Feb. 10-15 shows New York Sen. Kirsten Gillibrand (D) "trailing" NY4 Rep. Carolyn McCarthy (D) 34%-24% in a hypothetical 2010 primary match-up. The Hill notes, "McCarthy has said she is pushing forward with a primary challenge to the new senator because she has voted too conservatively on gun control." Meanwhile, in a hypothetical general election match-up, Gillibrand leads NY3 Rep. Peter King (R) 42%-26%
The AP reports, "Two of Ohio's most prominent Democrats" yesterday said they would run for the open Senate seat -- Secretary of State Jennifer Brunner (D) and Lt. Gov. Lee Fisher (D). The Hill reports that Fisher and Brunner "are the first major Democrats to jump in, and they join former Rep. Rob Portman, who appears to have the GOP field to himself." Roll Call reports Reps. Tim Ryan (D) and Zack Space (D) "are also mentioned as possible Senate candidates, but neither lawmaker has made any moves that would indicate they are preparing to run for the seat."
The Hill reports, "Discerning any major differences between" KS1 Rep. Jerry Moran (R) and KS4 Rep. Todd Tiahrt (R) in the Kansas Senate race "requires a microscope," but state Republicans see Moran as "a better match up" against potential Democratic candidate Gov. Kathleen Sebelius (D).
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Bloomberg News reports that a Quinnipiac University survey of 1,065 New York registered voters conducted Feb. 10-15 shows New York Gov. David Paterson (D) trailing New York AG Andrew Cuomo (D) 55%-23% in a in a hypothetical 2010 primary match-up. The Hill adds that the poll showed Paterson and ex-New York City Mayor Rudy Giuliani (R) tied at 43%-43% in a hypothetical general election match-up, while Cuomo leads Giuliani 51%-37%.
CNN reported on its 'Political Ticker' blog that RNC Chief Michael Steele "is following through on his pledge to pump cash into the special election race in New York's 20th congressional district," committing $80k to TV spots supporting Jim Tedisco (R). The Washington Post says on its 'The Fix' blog that the ad is "an early sign that" Steele intends "to wade into downballot races to reassert the party's competitiveness across the country and in the northeast in particular."
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Jay Leno: "Yesterday, of course, Presidents Day. And Congress commemorated George Washington's throwing a dollar across the Potomac by tossing $787 billion down a rat hole."
Jay Leno: "And, you know, you got to admit, President Obama gives great speeches. ... Like, today," instead "of just saying, 'Oh, from North to South,' he said, 'From the windy plains of the Dakotas to the sunny skies of Arizona.'" That sounds "so much better than, 'From the sleaze ball criminal element of Wall Street to the broke-a@# beaches of California.'"
David Letterman: "You remember Hillary Clinton?" She has been "married to Bubba for quite a while." Well, she is "now the secretary of state," and she is on her "first big round the world tour." She is on "her big Asian tour. She wants to normalize relations with North Korea. No word yet about normalizing relations with Bill."
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