Much of the media coverage of President Obama's summit on fiscal responsibility was generally positive, with a number of reports (particularly on network TV) focusing on the President's outreach to the opposition. ABC World News reported the summit "ended with the President publicly taking questions for 45 minutes from some of his sharpest congressional critics." Roll Call reports the story under the headline "Summit Seeks To Revive Bipartisanship," and the Washington Post similarly says "the 3 1/2 -hour session was designed to demonstrate that the White House could foster a civilized conversation among an ideologically diverse group of lawmakers, academics, economists and interest groups." The Wall Street Journal, Financial Times and AP run similar stories.
But not all the media coverage of the summit is positive this morning. The Politico, for example, notes "Obama...made clear that he believe he was inheriting the current budget mess from Bush -- even though roughly a quarter of the $1.3 trillion deficit stems directly from Obama's recently economic stimulus package." Also striking a skeptical note, Roll Call reports, "Who woulda thought that President Barack Obama would take a PR cue from former President George W. Bush?" Obama's deficit pledge is "a neat trick, given that Obama's reported deficit projection in four years is a whopping $533 billion, which itself would be a record if it weren't for the current year's ocean of red ink." In 2004, "while running for re-election," Bush also "proposed cutting the budget deficit 'in half' by 2009."
Dana Milbank, in his "Washington Sketch" column, writes in the Washington Post that "the summit was about symbolism -- conveying the sense that Obama, at a time of fiscal profligacy, cares about fiscal restraint -- and by that measure, it succeeded admirably." The AP says "Obama's ambitious goal of cutting the federal deficit in half relies on a perfect -- some might say improbable -- convergence of factors: a recovered economy, a tax boost for the rich and success in easing foreign entanglements." And under the headline, "Big Stimulus Bill Sparks Long-term Fiscal Fears," McClatchy reports that despite "all the White House hoopla Monday about 'fiscal responsibility,' Washington is showing little inclination to practice what it's preaching." The "$787 billion stimulus package that...Obama signed Feb. 17 adds an estimated $185 billion to the already-record federal deficit for fiscal 2009, pushing it up to about $1.4 trillion."
The Chicago Tribune reports that "Obama is planning a new strategy of putting as many of the expected costs on the books as possible, senior White House officials say, in order to make clear the full extent of the challenges facing the country. ... Paradoxically, Obama's strategy of piling costs into the budget could also make it easier for him to keep his promise to cut the federal deficit in half by the end of his first term. ... In other words: Loading in stimulus spending, war appropriations and other special costs will raise the deficit immediately. But barring unforeseen circumstances, those costs are likely to be gone or at least sharply reduced by the end of Obama's present term."
Summers "Fell Asleep On The Podium" The Financial Times reports that "Lawrence Summers, head of the National Economic Council, fell asleep on the podium" during the summit.
On the eve of his first formal address to Congress, ABC World News reported that a new poll shows "by a margin of 68% to 25%, the public says it approves of" President Obama's "overall job performance." The Washington Post reports on its front page, "About nine in 10 Democrats and seven in 10 independents said Obama is living up to the central promise of his campaign: bringing change to Washington." But "most Republicans said he is not." Also on its front page, the New York Times reports a New York Times/CBS News poll shows Obama's job approval rating at 63%. USA Today notes the new USA Today/Gallup Poll shows Obama has "a reservoir of support and a 62% job approval rating."
Although not a formal State of the Union address which is delivered after a President's first year in office the President will press his agenda tonight, calling on Congress to enact a host of policies. USA Today reports the President's speech "will sound much like a typical State of the Union." He is "following a television-driven tradition in which new presidents use their first speech in the ornate House chamber to rally support for their ideas." Obama "plans to discuss what he called 'our urgent national priorities,' including plans to create jobs, stem home foreclosures, revive financial institutions and improve health care."
The Hill reports President Obama "will face an anxious public, impatient Democrats and skeptical Republicans during his first address to Congress on Tuesday." Obama is "promising to work with Congress to make major changes to entitlement spending and restructure defense and homeland security priorities while the nation is waging two wars and seeking to prevent another terrorist attack on U.S. soil."
On MSNBC's Hardball, Pennsylvania Gov. Ed Rendell said President Obama "can't be overconfident and he can't convey to the American people he thinks this is going to be easy. This is going to be tough, no question about it, but I think he can show some confidence in the fact we are moving in the right direction."
With the GOP response, Gov. Bobby Jindal of Louisiana will take a higher profile role. The Washington Post describes Jindal as "the anointed boy wonder of a Republican Party left battered by the 2008 election and hungry for new leadership" and says it will be "the grandest opportunity" of his "young political life." CNN reported on its website, "The GOP, still reeling from election beatings in 2006 and 2008, is looking to revamp itself by rebuilding from the states up and reaching out to young voters. At 37," Jindal "embodies that mission, experts say."
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Media reports are attributing the continuing stock market drop to investors' pessimism about both the economy and the Administration's plans to right it. Under the headline "Stocks Fall As US Bank Plan Detailed ," for example, the Financial Times reports "US stocks fell to their lowest level since 1997 as federal authorities on Monday fleshed out a plan that could give the government a significant stake in leading banks." ABC World News reported, "Another day, another 250 points."
The CBS Evening News opened its broadcast asking, "Where were you May 7th, 1997? That's the last time blue chip stock prices closed as low as they did today." A follow-up story on the CBS Evening News says the markets' "decline has been broad-based and brutal." The AP reports the Dow "dropped 250.89, or 3.41 percent, to 7,114.78. It last closed this low on May 7, 1997 when it finished at 7,085.65."
The Wall Street Journal reports "the decline in the stock market was unusually broad and went well beyond the jittery financial sector," as "investor jitters" spread "to parts of the market that had previously held up." The Washington Post, under the headline "Dow, S& P Slip To 1997 Levels; Investors Still Wary of Recovery Plans," runs a similar story. USA Today, Los Angeles Times and Christian Science Monitor also report the Wall Street numbers.
White House Seeks To Reassure On Banks With mixed success, the Obama Administration yesterday sought to lay to rest investors' fears that the upcoming "stress test" for major banks would lead to their nationalization. The Administration's plan was the lead story on NBC last night, with some sources treating it as an indication that some form of increased government ownership of the troubled major banks was likely.
The Wall Street Journal reports the Obama Administration "and federal bank regulators sought Monday to quell fears about the viability of major U.S. banks, saying the government 'stands firmly behind the banking system during this period of financial strain to ensure it will be able to perform its key function of providing credit to households and businesses.'" NBC Nightly News reported, "There is a belief right now that the government is going to have to take bigger stakes in the banks if it hopes to stabilize the financial system." The Washington Post draws a different conclusion, reporting that the Obama Administration "revamped the terms of its emergency aid to troubled financial firms, setting a course that could culminate with the government nationalizing some of the country's largest banks by taking a controlling ownership stake." The Christian Science Monitor also reports the story.
Negotiations with Citigroup, which reportedly involve the government taking up to a 40% stake in the troubled bank, fueled speculation about the Administration's intentions. USA Today reports the proposal "to expand the government's stake in Citigroup is fanning fears that a federal takeover will ultimately be needed to shore up the distressed banking industry." CNBC's Charlie Gasparino reported Citigroup shares "gained almost 10%....on the news that the megabank and government were moving close to a de facto nationalization."
The Politico reports the incoming chairman of Citigroup, Richard Parsons, "showed up at the White House Monday, fueling talk that the federal government might take a massive ownership stake in the troubled banking behemoth." The Washington Times also reports the story.
The Chicago Tribune reports White House Chief of Staff Rahm Emanuel's "Washington lodging arrangements, a rent-free basement room in a Capitol Hill home owned by Rep. Rosa DeLauro (D-Conn) and her pollster husband, have inspired debate among tax experts and in Republican-leaning parts of the blogosphere." One issue "is whether Emanuel, who served in the House with DeLauro until early January, should have listed the room either as a gift or as income on his congressional financial disclosure forms." Other issues include "whether Emanuel has a tax liability for the arrangement."
Emanuel's Movie Outing Takes Unusual Turn In his blog at The Politico, Ben Smith says a "surprised fellow moviegoer passes on word that Rahm Emanuel took time out Saturday night to see The Wrestler at the E Street Cinema last night with a Secret Service Agent." The source said, "The guy sitting next to Rahm -- literally sharing an armrest with him -- had a seizure of some kind. Rahm used some vulgarities to impress upon the movie theater staff -- who wanted to move the guy out of the movie theater so they could restart the film -- that they should wait until EMS got there."
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The Politico says the "campaign to oust Sen. Roland Burris from the Senate seems to be losing momentum." Sen. Richard Durbin "says he wants to have a face-to-face meeting with Burris before making any significant announcement." Senate Majority Leader Harry Reid "didn't offer significant words of support for Burris," but "he also declined to call for his resignation."
Congressional Quarterly reports Minority Leader Mitch McConnell said the Senate Ethics Committee "has jurisdiction over discrepancies in Burris' statements. ... 'I think in this particular instance, it ought to work quickly and resolve these differences and make a recommendation to the full Senate,' McConnell said."
The Hill says, "Even though members of the Congressional Black Caucus are no longer rushing to his aid, a bold ethics committee move could reignite the racial tensions surrounding Burris's selection." The Chicago Tribune reports Burris's attorneys "continued to prepare a document they say will show he has not changed his story about how he secured the Senate seat from Gov. Rod Blagojevich."
According to Roll Call, "Illinois Democratic sources" maintain it is "unlikely that Burris will resign unless his legal bills become too cumbersome."
The Hill reports that Mitt Romney's (R) Free and Strong America political action committee "is helping out nearly a dozen Republicans targeted by national Democrats for their votes against the economic stimulus package, inserting himself back into the debate over the nation's economic health." In a post in the 'Top of the Ticket' blog on the website of the Los Angeles Times, Andrew Malcolm says "anytime you see these guys like Romney, and more recently Gov. Sarah Palin, create their own PACs to support like-minded politicians (and their own political forays), they're also creating a financial means to accumulate" favors owed "from those fellow party members they help for use down the road."
Romney isn't the only 2008 contender using his PAC to keep up his profile -- on its front page, the Arkansas Democrat-Gazette reported that Mike Huckabee (R) "is still working to sow seeds of influence among the" GOP, and his PAC is set to hold a series of 120 house parties Thursday night in an "effort to string together a nationwide web of grass-roots organizers."
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The New York Daily News reports that former President Bill Clinton "will headline a fund-raiser next month for newly minted" New York Sen. Kirsten Gillibrand (D), "sending a strong signal to potential primary challengers that Team Clinton is firmly behind her candidacy." The New York Post reports that Gillibrand, "who's been threatened with a primary battle from her left ever since Gov. Paterson tapped her to be New York's junior senator," gets a "big boost" from the announcement.
The Chicago Tribune reports that the Service Employees International Union "is spending $250,000 on TV ads that begin airing" today in support of state Rep. Sara Feigenholtz's (D) bid in the IL5 special election, but her major opponent, state Rep. John Fritchey (D), says, "SEIU spent millions of dollars to get Rod Blagojevich elected twice, and they are going to try to use the same technique now."
The AP reports that an attorney for Minnesota's Norm Coleman (R) "said Monday that his side is on course to finish presenting evidence this week on rejected absentee ballots" it wants" added to the vote totals in the disputed Senate contest, opening the way to examining other issues in the race next week.
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The late night shows were in reruns last night.
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