Media coverage of the Administration's proposed budget savings, which included reports in two network newscasts, tends to sound a skeptical note on the cuts' significance. The AP says "the White House's exercise in fiscal discipline this week amounts to micro-cutting -- proposals that would trim half a percent of the overall budget -- and don't address the sacrosanct entitlements of Social Security and Medicare." ABC World News reported that the White House" wants to trim a tiny fraction, $17 billion," and the President is "arguing that seemingly small amount is a major step in the right direction." The Hill reports "White House press secretary Robert Gibbs was bombarded with questions about the relatively meager cuts that amount to 0.5 percent of the budget, but he insisted that the president's budget 'will bring non-defense discretionary spending to the lowest level as a share of our GDP since we began keeping records in 1962.'"
The Politico, meanwhile, says "the Obama administration is attempting a tricky political feat: trying to portray the $3.55 trillion federal budget...Obama has proposed as an exercise in austerity and efficiency." The New York Times reports that "Administration advisers called the cuts just a beginning, but some Republicans said they were less than impressed." The CBS Evening News meanwhile, briefly noted that "Republican critics" pointed out that "$17 billion amounts to only one half of one percent of the proposed budget."
Some print reports, meanwhile, suggest there may be strong congressional opposition to what the Washington Post calls "President Obama's modest proposal to slice $17 billion from 121 government programs." The plan, adds the Post, "quickly ran into a buzz saw of opposition on Capitol Hill yesterday, as an array of Democratic lawmakers vowed to fight White House efforts to deprive their favorite initiatives of federal funds."
The AP also reports that "some of Obama's proposed trims are recycled from George W. Bush's hit list and won't be popular with some Democrats." Meanwhile, USA Today reports, "Federal programs deemed ineffective by President Obama and targeted for elimination in his proposed budget include five that stand to get about $500 million in economic stimulus funds, documents show."
80% Of Proposed Cuts Are Defense-Related The Washington Times reports Obama "has targeted the Department of Defense to absorb more than 80 percent of the cuts he has proposed in next year's budget for discretionary programs." The Defense Department "will take a $9.4 billion hit, constituting 82 percent of the cuts."
The release of data regarding the "stress tests" on US banks is receiving extensive media coverage, leading two out of three network broadcasts and making front-page headlines in major papers. Overall, the coverage offers a cautiously optimistic view of the state of the banking industry. On its front page, for example, the New York Times refers to "an almost tangible sense of relief among the banks and investors" after the results were released, and the AP reports that the tests "have helped lift a cloud of uncertainty that has hung over the economy." Similarly, the Wall Street Journal says the "worst-case estimates of banks' total losses and capital shortfalls were smaller than some had feared."
However, media accounts are also noting the potential $75 billion shortfall in 10 large institutions, as well as the possibility of continuing losses in the banking sector if the recession were to deepen. NBC Nightly News reported the government "has determined that the big banks in this country will be fine during this economic downturn. All they need is a lot more money." Despite the "$750 billion in government bank bailout money, they need more -- $74 billion more."
The Wall Street Journal notes the government "projected that 19 of the nation's biggest banks could suffer losses of up to $599 billion through the end of next year if the economy performs worse than expected." The Washington Post reports that the tests "showed that despite a deepening recession, the government will require only two of the nation's 19 major banks to raise new capital totaling $9.5 billion, far less than what many analysts had projected." The Washington Times, meanwhile, notes that "while some economists and investors have criticized the tests as not rigorous enough.
ABC World News said that "with these stress tests results today, the Administration believes it has taken a decisive step toward restoring public confidence and putting these banks on more solid footing." CBS Evening News showed Treasury Secretary Geithner saying, "Our hope is that with these actions today, banks are going to be able to get back to the business of banking." The Los Angeles Times reports "Geithner said the banks had made significant improvements in their balance sheets in the first three months of the year."
Fox News Special Report noted that Geithner and "the chair of the Federal Reserve said the stress tests show the nation's largest banks... have enough capital to handle the credit losses expected over the next couple of years." The Washington Post notes "the banks and the government are eager to avoid converting these shares, which would give the government greater control over the companies."
The Washington Post reports "some major banks managed to wrest concessions from the government in closed-door negotiations over their 'stress tests' that helped them put the best face on their results, financial analysts, industry officials and sources said." The Politico reports Geithner told Charlie Rose in an interview taped on Wednesday that the test results "were finalized after intense negotiation between the government and the banks."
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The New York Times reports that in replacing Justice Souter, President Obama "will almost surely pick another liberal. But Mr. Obama may also consider Justice Souter as a kind of counterexample and choose a bigger and bolder figure, one who sets agendas, forges consensus and has a long-term vision about how to shape the law" such as Souter's predecessor, Justice William Brennan.
Meanwhile, the Washington Post reports on the "smattering of opposition groups" aligned with Republicans who will "make the conservative case against whomever President Obama chooses to replace retiring Justice David H. Souter." Just hours "after news of Souter's retirement broke last week, more than four dozen conservative activists hastily put together a conference call to plot their attack."
The Hill reports the Congressional Black Caucus "is launching a campaign to persuade President Obama to appoint one of their members to the Supreme Court seat that will be vacated by Justice David Souter." They are "pressing the merits of Rep. Bobby Scott (D-Va.), who would increase the number of African- Americans on the court to two."
The New York Times says in an editorial that it is "never too early, it appears, to start the character assassination, especially against one possible candidate, Judge Sonia Sotomayor." But the Appeals Court Judge is "often mentioned" because "as a woman of Puerto Rican descent, she offers diversity. She would be the first Hispanic justice and would raise the number of women on the court back to two."
Major national papers covered the disclosure of the Director of National Intelligence's memo that documented when congressional leaders were briefed on enhanced interrogation techniques. The coverage tended to focus on how the memo indicates that House Speaker Nancy Pelosi was present at a briefing that discussed the interrogation of a prisoner who had been waterboarded.
The Wall Street Journal reports that a new intelligence document CIA Director Leon Panetta said was compiled "in response to requests from Republican lawmakers" says "Congressional leaders were briefed in detail about techniques used in the Central Intelligence Agency's interrogation program." The memo appears "to conflict with recent statements from" Pelosi, "who was then the top Democrat on the House intelligence committee."
The Washington Post reports, "The memo, issued to Capitol Hill by the Office of the Director of National Intelligence and the Central Intelligence Agency, notes that the Pelosi-Goss briefing covered 'EITs including the use of EITs' on Abu Zubaida. EIT is an acronym for enhanced interrogation technique." The "issue of what Pelosi knew and when she knew it has become a tussle on Capitol Hill."
The Los Angeles Times reports, "A chart compiled by the CIA shows that Pelosi...was briefed on Sept. 4, 2002, on the agency's interrogation of alleged Al Qaeda operative Abu Zubaydah," but the chart "does not list the specific methods covered during the briefing." The Times adds, "the CIA declined to comment on why the chart does not make clear whether waterboarding was covered in the Pelosi briefing," although "in other entries on the chart, waterboarding is specifically mentioned."
The Washington Times reports, "Republicans have warned that any investigation of Bush administration officials should also look at the approval of top Democrats in Congress, who they say had been briefed on what the CIA was doing but kept silent until it was politically opportune to denounce the practices," and Attorney General Eric Holder "did not rule out" going so far in any investigation.
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Elizabeth Edwards appeared on Oprah Winfrey's program on Wednesday to discuss her reaction to the affair of her husband, John Edwards, during his presidential campaign. ABC World News reported Elizabeth Edwards "told Oprah it was just two days into her husband's campaign for the presidency that he confessed to having a one-night stand." Elizabeth Edwards: "My first thing to do was, you need to get out of the campaign. And he said, truthfully, he was right, it was hard to argue with this, that if you want to raise a lot of questions...you get out of a campaign you got into two days before." ABC added Elizabeth Edwards "hasn't addressed why she wrote the book, was willing to reopen these wounds. She says she stayed in her marriage because nobody's perfect."
NBC Nightly News also reported on Elizabeth Edwards' appearance on "Oprah," noting her "decision to go public is raising a lot of questions, and it has its critics. Maureen Dowd of the New York Time wrote, 'it's just a gratuitous peek into their lives and one that exposes her kids by peddling more dregs about their personal family life.' Including questions about whether John Edwards fathered a little girl with his former mistress."
The Politico reports that ex-Pennsylvania Gov. Tom Ridge (R) said yesterday "that he will not run for the Senate next year, denying Republicans of a high-profile and popular candidate to" challenge Sen. Arlen Specter (D). Ridge's statement "is a blow to Republicans who were hoping Specter's switch to the Democratic Party would put the Senate race in play." Meanwhile, the AP reports that Rep. Joe Sestak (D) on Thursday told the AP that he is still seriously considering a primary challenge to Specter, adding, "The Democratic political establishment reached into the GOP establishment to give us the Democratic candidate for the future. It's not theirs to make, it's ours to make."
A Rasmussen Reports poll of 700 likely Texas Republicans primary voters conducted May 6 shows Texas Gov. Rick Perry (R) leading Sen. Kay Bailey Hutchison (R) 42%-38% in an expected gubernatorial primary contest. According to the survey, "Perry leads by 15 percentage points among conservative voters," while "Hutchison leads by 35 points among the moderates."
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Jay Leno: "President Obama announced today plans to either trim or eliminate 121 programs. The programs he wants to eliminate -- Sean Hannity, Rush Limbaugh, Bill O'Reilly..."
Jay Leno: "Ooh, the big story, earlier today -- I can't wait to see the ratings on this -- Elizabeth Edwards was discussing her marriage on 'Oprah.' And this weekend, John Edwards will discuss his marriage on 'Cheaters.'"
David Letterman: "General Motors has reported a $6 billion loss." But "once they get through bankruptcy they hope to go back making cars that nobody wants." So "that will be nice."
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