Drug Violence In Mexico Threatens U.S. Borders

Obama To Lobbies: I'm Ready To Fight
President Barack Obama challenged the nation's vested interests to a legislative duel, saying he will fight to change health care, energy and education in dramatic ways that will upset the status quo.
Small Troop Drawdown Will Leave 'Robust Force' for Iraq's Elections
ABC News' Martha Raddatz reports: In a letter to the troops in Iraq, the top U.S. commander, Gen. Ray Odierno says that "following an initial drawdown over the next six months, our forces will remain at a robust level through...
Commander-in-sneaks: Obama's hoops

by Mark Silva

President George W. Bush had his mountain bike.

President Barack Obama has his basketball.

The former president would slip out of the White House on a Saturday morning, if slipping entails a high-speed motorcade, and head for the woods.

This morning, on a cold and overcast day in Washington, the president and friend Marty Nesbitt (pictured here), wearing sweat suits, climbed into the presidential SUV at the White House for a short ride around the Ellipse in a slow-speed motorcade to the Department of Interior.

Obama aide Reggie Love, riding in another SUV, carried the first basketball.

"Who knew they had a basketball court?'' the Dallas Morning News' Todd Gillman, performing Saturday pool duty, wrote of the trip.

Like the former president's weekly bike rides, which were performed out of eyesight of the pool reporters, the president's game on the court at Interior was played in private.The outing ran a little under two hours.

It might have been a rough game: Nesbitt, who had joined the president in taking in a game of the Bulls and Wizards the night before at the Verizon Center, wore a brace on his right leg and walked with a limp as they returned to the White House.

Press aide Ben Finkenbinder's T-shirt was darkened with sweat from his first basketball game with the boss, and played the event like a dutiful press aide would: No details on the players, score or highlights of the game.

(Photo of the president's friend, Martin Nesbitt, returning to the White House after a basketball game at the Deparment of Interior, by Pablo Martinez Monsivais) / . With thanks to print pooler Todd Gillman).

Drug Violence In Mexico Threatens U.S. Borders

A brutal wave of drug violence is ravaging cities near the U.S.-Mexico border, and governments of both countries pointed fingers at each other this week over who's to blame.

Feds, Citigroup Agree To Rescue Plan
The government has reached deal to significantly boost its ownership stake in Citigroup. In return, it has demanded changes be made on the banking giant's board and other conditions, according to the Associated Press.
Obama watermelon joke unseats mayor

by Frank James

The soon-to-be-ex-mayor of Los Alamitos. Calif. sounds like he's maybe not the sharpest knife in the draw.

Not only did he e-mail a doctored photo of the White House South Lawn covered in watermelons under the words: "No Easter egg hunt this year" but he then came up with a lame explanation of what happened.

According to the Associated Press:

Grose said he didn't mean to offend anyone and claimed he was unaware of the racial stereotype linking black people with eating watermelons.

Ahem, Mayor Grose, if you were unaware of the stereotype then what made the e-mail worth sending out?

He did the honorable thing by announcing his plan to resign Monday.

But he ruined a good apology and fall on the sword with his laughable explanation.

Here's an excerpt:

Grose came under fire for sending the picture to what he called "a small group of friends." One of the recipients, a local businesswoman and city volunteer, publicly scolded the mayor for his actions.

Grose says he accepts that the e-mail was in poor taste and has affected his ability to lead the city. Grose said he didn't mean to offend anyone and claimed he was unaware of the racial stereotype linking black people with eating watermelons.

Countering The Online World Of 'Pro-Anorexia'

In recent years, Web sites promoting the eating disorders anorexia and bulimia have proliferated. People with eating disorders are often isolated, depressed and seeking emotional support, one researcher says. Now, those recovering from anorexia are building sites to provide supportive online communities.

CIA Chief Provides Economic Intel Brief

Obama Budget Lays Out "Hard Choices"
President Barack Obama is sending Congress a "hard choices" budget that would boost taxes on the wealthy and curtail Medicare payments to insurance companies and hospitals to make way for a $634 billion down payment on universal health care.
CIA Chief Provides Economic Intel Brief
ABC News' Luis Martinez reports: Highlighting the potential impact the worldwide economic downturn may have on global security and foreign policy, new CIA Director Leon Panetta said today that the agency is now producing a new daily intelligence document for...
Newspaper readership down, Online up

by Mark Silva

Today, on the day that the Rocky Mountain News announces that it will be printing its final edition on Friday, it's worth considering what freedom of the pressand the proliferation of a strong presshas done for democracy in America.

Today, we also have freedom of the Web.

And increasingly, Americans, free to roam like the buffalo, are turning to the Internet for their news.

Before anyone celebrates the decline of newspaper readership and the increase in Internet viewership, it's worth considering the financial resources that strong newspapers and magazines bring to bear in the investigation of corruption in government, wrongdoing in private life and abuse of power in general.

The business model of the Web-site and the resources it takes to publish one aren't likely to sustain the sort of prize-winning journalism that Americans have come to cherish as a national tradition and indeed expectation. There are several strong newspapers behind this Web-site, for instancestruggling with the economic troubles that have besieged the national in general, for sure, yet still robust enough to deliver the sort of journalism that brought to light the corruption of the former governor of Illinois.

The Pew Research Center has found that, among those surveyed last year, just 39 percent of Americans said they had read a newspaper the day before, either in print or online. That was down from 43 percent in 39 percent in 2006.

The proportion reporting that they had read solely a print version of a newspaper fell by roughly a quarter, from 34 to 25 percent. And the 14 percent of Americans who said they had read a newspaper online was up 9 percent.

"The balance between online and print readership changed substantially between 2006 and 2008,'' Pew reports. "In 2008, online readers comprised more than a third of all newspaper readers. Two years earlier, fewer than a quarter of newspaper readers viewed them on the Web. This is being driven by a substantial shift in how younger generations read newspapers.

"In 2008, nearly equal percentages in Generation Y (born 1977 or later) read a newspaper online and in print; 16% said they read only a print newspaper, or both the Web and print versions, while 14% said they read a newspaper only on the internet, or both online and in print. In 2006, more than twice as many in Gen Y said they read a printed newspaper than the online version (22% vs. 9%).

"There is a similar pattern in newspaper readership for Generation X (born between 1965 and 1976). In 2008, 21% read only a print newspaper, or both an online and a print newspaper; 18% read a newspaper only on the Web, or both online and in print. In 2006, 30% of Gen X read a newspaper in print, while just 13% read a web version.

"Baby Boomers (born between 1946 and 1964) and the Silent/Greatest Generations (born before 1946) continue to read newspapers at higher rates than do those in younger age cohorts.

"However, the proportion of Baby Boomers who said they read a newspaper yesterday slipped between 2006 and 2008, from 47% to 42%. The decline among Baby Boomers has come entirely in print readership (from 42% to 34%).''

See the Pew report on newspaper readership.

Obama Unveils Budget

President Obama releases his first budget. The administration has outlined plans for health care, education and clean energy.

U.S. Scolds China On Human Rights

U.S. Scolds China On Human Rights
The United States hit China for a litany of human rights abuses last year even though Secretary of State Clinton suggested during her recent Beijing visit that the issue would take a back seat to broader concerns like the global financial crisis.
Obama Likely to Announce Iraq Pullout This Week, Official Says
ABC News' Martha Raddatz reports: President Obama will likely announce a pullout of U.S. troops from Iraq later this week, according to a Defense Department official. Obama has been given three plans by the current top U.S. commander in Iraq,...
Bobby Jindal: Mr. Rogers, Kenneth, 2012?

by Mark Silva

The morning after President Barack Obama's first big speech to Congress, people seem to be talking as much about the first big national appearance of Louisiana Gov. Bobby Jindal, he of the state where they used to say that half the place is under water and half the place is under indictment -- his words last night, in the GOP reply to Obama.

The criticism for Jindal runs the gamut from the political -- suggesting that the young Republcan governor is tacking so hard to the right that any notion of him having a shot at the GOP's presidential nomination in the near future is inextricably linked to a fateful decision by the party out of power: How far right will they take it? -- to the personal.

The personal has more to do with mannerisms -- "Was that Mr. Rogers?'' some asked today of the televised reply by Jindal to the president's address to a joint session of Congress. And the trappings of the response.

"Bobby Jindal, or Kenneth from 30 Rock,'' asks another.

Mr. Rogers, as one Swamp reader suggested, may be a stretch -- though Mr. Jindal's Neighborhood is catchy. But Kenneth?

"Let me start off by saying we certainly want the same things for our country as our president,'' Jindal said in an interview on NBC News' Today show this morning, discussing his many differences with the president, and the president himself: "We may disagree on the approach, but I think he's a good, decent, honest man.''

People's partisan stripes may be showing just a little too boldly in this debate, however. We thought we heard last night, as we listened to Jindal's response aired on MSNBC, an editorial sigh from the newsteam as Jindal stepped out to the mic.

We're pretty sure, this morning after, that we hear MSNBC Hardball host Chris Matthews exclaiming not quite far enough under his breath or out of shot of his mic: "My God...'' Then the newsroom laugh track.

We've seen cleaner moments in television, but then again, this is big:

In fairness to Jindal, and those Democrats who want to make light of him, the governor has gone out of his way to praise Obama -- today calling the president "an incredibily gifted speaker, maybe a once in a generational speaker.''

See Jindal's "American Can Do Anything'' speech here:

Good evening. I'm Bobby Jindal, Governor of Louisiana.

Tonight, we witnessed a great moment in the history of our Republic. In the very chamber where Congress once voted to abolish slavery, our first African-American President stepped forward to address the state of our union. With his speech tonight, the President completed a redemptive journey that took our nation from Independence Hall ... to Gettysburg ... to the lunch counter ... and now, finally, the Oval Office.

Regardless of party, all Americans are moved by the President's personal storythe son of an American mother and a Kenyan father, who grew up to become leader of the free world. Like the President's father, my parents came to this country from a distant land. When they arrived in Baton Rouge, my mother was already 4 ½ months pregnant. I was what folks in the insurance industry now call a 'pre-existing condition.' To find work, my dad picked up the yellow pages and started calling local businesses. Even after landing a job, he could still not afford to pay for my deliveryso he worked out an installment plan with the doctor. Fortunately for me, he never missed a payment.

As I grew up, my mom and dad taught me the values that attracted them to this countryand they instilled in me an immigrant's wonder at the greatness of America. As a child, I remember going to the grocery store with my dad. Growing up in India, he had seen extreme poverty. And as we walked through the aisles, looking at the endless variety on the shelves, he would tell me: 'Bobby, Americans can do anything.' I still believe that to this day. Americans can do anything. When we pull together, there is no challenge we cannot overcome.

As the President made clear this evening, we are now in a time of challenge. Many of you listening tonight have lost jobs. Others have seen your college and retirement savings dwindle. Many of you are worried about losing your health care and your homes. And you are looking to your elected leaders in Washington for solutions.

Republicans are ready to work with the new President to provide those solutions. Here in my state of Louisiana, we don't care what party you belong to if you have good ideas to make life better for our people. We need more of that attitude from both Democrats and Republicans in our nation's capital. All of us want our economy to recover and our nation to prosper. So where we agree, Republicans must be the President's strongest partners. And where we disagree, Republicans have a responsibility to be candid and offer better ideas for a path forward.

Today in Washington, some are promising that government will rescue us from the economic storms raging all around us.

Those of us who lived through Hurricane Katrina, we have our doubts.

Let me tell you a story.

During Katrina, I visited Sheriff Harry Lee, a Democrat and a good friend of mine. When I walked into his makeshift office I'd never seen him so angry. He was yelling into the phone: 'Well, I'm the Sheriff and if you don't like it you can come and arrest me!' I asked him: 'Sheriff, what's got you so mad?' He told me that he had put out a call for volunteers to come with their boats to rescue people who were trapped on their rooftops by the floodwaters. The boats were all lined up ready to gowhen some bureaucrat showed up and told them they couldn't go out on the water unless they had proof of insurance and registration. I told him, 'Sheriff, that's ridiculous.' And before I knew it, he was yelling into the phone: 'Congressman Jindal is here, and he says you can come and arrest him too!' Harry just told the boaters to ignore the bureaucrats and start rescuing people.

There is a lesson in this experience: The strength of America is not found in our government. It is found in the compassionate hearts and enterprising spirit of our citizens. We are grateful for the support we have received from across the nation for the ongoing recovery efforts. This spirit got Louisiana through the hurricanesand this spirit will get our nation through the storms we face today.

To solve our current problems, Washington must lead. But the way to lead is not to raise taxes and put more money and power in hands of Washington politicians. The way to lead is by empowering youthe American people. Because we believe that Americans can do anything.

That is why Republicans put forward plans to create jobs by lowering income tax rates for working families ... cutting taxes for small businesses ... strengthening incentives for businesses to invest in new equipment and hire new workers ... and stabilizing home values by creating a new tax credit for home-buyers. These plans would cost less and create more jobs.

But Democratic leaders in Congress rejected this approach. Instead of trusting us to make wise decisions with our own money, they passed the largest government spending bill in historywith a price tag of more than $1 trillion with interest. While some of the projects in the bill make sense, their legislation is larded with wasteful spending. It includes $300 million to buy new cars for the government, $8 billion for high-speed rail projects, such as a 'magnetic levitation' line from Las Vegas to Disneyland, and $140 million for something called 'volcano monitoring.' Instead of monitoring volcanoes, what Congress should be monitoring is the eruption of spending in Washington, DC.

Democratic leaders say their legislation will grow the economy. What it will do is grow the government, increase our taxes down the line, and saddle future generations with debt. Who among us would ask our children for a loan, so we could spend money we do not have, on things we do not need? That is precisely what the Democrats in Congress just did. It's irresponsible. And it's no way to strengthen our economy, create jobs, or build a prosperous future for our children.

In Louisiana, we took a different approach. Since I became governor, we cut more than 250 earmarks from our state budget. And to create jobs for our citizens, we cut taxes six timesincluding the largest income tax cut in the history of our state. We passed those tax cuts with bipartisan majorities. Republicans and Democrats put aside their differences, and worked together to make sure our people could keep more of what they earn. If it can be done in Baton Rouge, surely it can be done in Washington, DC.

To strengthen our economy, we need urgent action to keep energy prices down. All of us remember what it felt like to pay $4 at the pumpand unless we act now, those prices will return. To stop that from happening, we need to increase conservation ... increase energy efficiency ... increase the use of alternative and renewable fuels ... increase our use of nuclear powerand increase drilling for oil and gas here at home. We believe that Americans can do anythingand if we unleash the innovative spirit of our citizens, we can achieve energy independence.

To strengthen our economy, we also need to address the crisis in health care. Republicans believe in a simple principle: No American should have to worry about losing their health coverageperiod. We stand for universal access to affordable health care coverage. We oppose universal government-run health care. Health care decisions should be made by doctors and patientsnot by government bureaucrats. We believe Americans can do anythingand if we put aside partisan politics and work together, we can make our system of private medicine affordable and accessible for every one of our citizens.

To strengthen our economy, we also need to make sure every child in America gets the best possible education. After Katrina, we reinvented the New Orleans school systemopening dozens of new charter schools, and creating a new scholarship program that is giving parents the chance to send their children to private or parochial schools of their choice. We believe that, with the proper education, the children of America can do anything. And it should not take a devastating storm to bring this kind of innovation to education in our country.

To strengthen our economy, we must promote confidence in America by ensuring ours is the most ethical and transparent system in the world. In my home state, there used to be saying: At any given time, half of Louisiana is under waterand the other half is under indictment. No one says that anymore. Last year, we passed some of the strongest ethics laws in the nationand today, Louisiana has turned her back on the corruption of the past. We need to bring transparency to Washington, DCso we can rid our Capitol of corruption ... and ensure we never see the passage of another trillion dollar spending bill that Congress has not even read and the American people haven't even seen.

As we take these steps, we must remember for all our troubles at home, dangerous enemies still seek our destruction. Now is no time to dismantle the defenses that have protected this country for hundreds of years, or make deep cuts in funding for our troops. America's fighting men and women can do anything. And if we give them the resources they need, they will stay on the offensive ... defeat our enemies ... and protect us from harm.

In all these areas, Republicans want to work with President Obama. We appreciate his message of hopebut sometimes it seems we look for hope in different places. Democratic leaders in Washington place their hope in the federal government. We place our hope in youthe American people. In the end, it comes down to an honest and fundamental disagreement about the proper role of government. We oppose the National Democrats' view that says -- the way to strengthen our country is to increase dependence on government. We believe the way to strengthen our country is to restrain spending in Washington, and empower individuals and small businesses to grow our economy and create jobs.

In recent years, these distinctions in philosophy became less clearbecause our party got away from its principles. You elected Republicans to champion limited government, fiscal discipline, and personal responsibility. Instead, Republicans went along with earmarks and big government spending in Washington. Republicans lost your trustand rightly so.

Tonight, on behalf of our leaders in Congress and my fellow Republican governors, I say: Our party is determined to regain your trust. We will do so by standing up for the principles that we share ... the principles you elected us to fight for ... the principles that built this into the greatest, most prosperous country on earth.

A few weeks ago, the President warned that our nation is facing a crisis that he said 'we may not be able to reverse.' Our troubles are real, to be sure. But don't let anyone tell you that we cannot recoveror that America's best days are behind her. This is the nation that cast off the scourge of slavery ... overcame the Great Depression ... prevailed in two World Wars ... won the struggle for civil rights ... defeated the Soviet menace ... and responded with determined courage to the attacks of September 11, 2001. The American spirit has triumphed over almost every form of adversity known to manand the American spirit will triumph again.

We can have confidence in our futurebecause, amid today's challenges, we also count many blessings: We have the most innovative citizens ...the most abundant resources ... the most resilient economy ... the most powerful military ... and the freest political system in the history of the world. My fellow citizens, never forget: We are Americans. And like my dad said years ago, Americans can do anything.

Thank you for listening. God bless you. And God bless America."

Dexter Filkins: No End In Sight In Afghanistan

The New York Times foreign correspondent Dexter Filkins reports that the Taliban are waging an increasingly aggressive campaign in Afghanistan — a fact evidenced by a 40 percent increase in Afghan civilian deaths in 2008.

Unemployed Lawmakers Still Look For Work

Unemployed Lawmakers Still Look For Work
A handful of incumbents who lost Congressional races last fall have yet to land full-time jobs. Chris Shays is weighing job prospects, Nick Lampson is looking to start a nonprofit, and Thelma Drake is "just slowing it down" for a while.
Navy Admiral Studies Prison Conditions at U.S. Detention Facility
ABC News' Luis Martinez reports: The U.S. Navy's number two admiral said Monday that the detention facility at Guantanamo meets the standards of humane treatment, but additional steps are needed to increase "socialization" of the men imprisoned there. In a...
Burris: Even the elevators are against him

by James Oliphant and Mike Dorning

Poor Roland Burris.

The guy just can't buy a break right now.

The embattled senator just emerged from his hour-long meeting with Sen. Dick Durbin, the Senate Majority Whip and the senior senator from Burris' state of Illinois. Durbin wanted to hear Burris' explanation of his ties to disgraced former Gov. Rod Blagojevich for himself.

At the end of the session, Burris tried to sneak out through the side door in Durbin's third-floor office in the Capitol. Unfortunately for him, Chicago reporters who have covered Durbin know about the door, which leads almost directly to an elevator.

The meant that when a young aide emerged from Durbin's office and hit the "down" button, some in the press corps staking out the meeting knew what was up. Burris emerged and was quickly cornered by a handful of reporters in front of the elevator.

Burris said he had a "good discussion" with Durbin, but would not elaborate.

Then for a few long moments, he stood there, alone, and said nothing, perhaps setting some kind of record for the longest a senator has ever stood in the Capitol without saying anything.

Burris looked plaintively at the indicator light above the golden elevator doors. The car was still two floors below. You could almost hear him crying "Come on!"

More questions. He finally said he was "under orders" not to talk about the meeting.

"Under orders from who, sir?" someone asked.

"My lawyer," Burris said.

"Under orders not to talk about whether you will run in 2010?"

The elevator doors parted, but Burris' exit path was blocked. A Capitol worker was hauling a palette of debris. The junior senator finally jumped inside, maneuvering his body past the cart and the worker. The young aide slid inside as well, off to (relative) safety.

No word on whether the worker believes Burris should resign. Or the page operating the elevator.

(An aside to aspiring press aides: First, you hit the button to call the elevator, then you wait for the car to come and the doors to open before you have your politician emerge.)

Obama Expected To Set Optimistic Tone In Address

President Obama hasn't minced words about the dire state of the U.S. economy. But he's being urged to take a more optimistic tone in his first address to a joint session of Congress on Tuesday night, as Americans grow increasingly alarmed about their financial security.

Obama Vows To Halve Deficit In 4 Years
President Barack Obama brought together dozens of advisers and adversaries to discuss how to curb a burgeoning federal deficit laden with Social Security, Medicare and Medicaid obligations.
Bill Ayers: Afghanistan surge 'mistake'

by Mark Silva

Alan Colmes of the FOX News Channel sat down with Bill Ayers, the University of Illinois at Chicago education professor and erstwhile Underground Weatherman. And Colmes will rejoin his erstwhile on-air partner, Sean Hannity, tonight to report on their talk.

Ayers had this to say about President Barack Obama committing an additional 17,000 troops to Afghanistan: "It's a mistake. It's a colossal mistake. And, you know, we've seen this happen before, Alan. We've seen a hopeful presidency, Lyndon Johnson's presidency, burn up in the furnace of war."

"I fear that this brilliant young man, this hopeful new administration, could easily burn their prospect of a great presidency in the war in Afghanistan or elsewhere,'' Ayers says in the interview airing at 9 pm EST on FOX's Hannity."

And Ayers had this to say about his own days in the anti-Vietnam War protests, the group he cofounded sometimes having made its point with bombs:

"I don't regret anything I did it to oppose the war. It was -- I did it to oppose the war. I don't regret it. I don't look back on those things and regret them, but I'm willing to rethink them. And there are many things which I'm going to rethink."

Ayers' friendship with Obamathe former Illinois senator served on civic board with him, and the professor hosted a small fundraiser for Obama's first state legislative campaignbecame a target of the Republican rivals' campaign criticism last year. GOP running mate Sarah Palin accused Obama of "pallin' around with terrorists.''

On Economy, Obama Looks To Balance Hope, Hype

As President Obama prepares to speak to a joint session of Congress on Tuesday, aides say he is trying to strike the right balance as he talks about the ailing economy. That means delivering a strong dose of medicine, but without making the patient feel worse.

Obama Seeks To Halve Budget Deficit
Barack Obama wants to cut the federal deficit in half by the end of his first term, mostly by scaling back Iraq war spending, raising taxes on the wealthiest and streamlining government, an official said Saturday.
Schwarzenegger: 'Team player' w Obama

by Mark Silva

Gov. Mark Sanford, Republican chief executive of South Carolina, says he won't be taking all of that federal stimulus money, complaining that, in a nation of $52 trillion of promises that aren't paid for, this is simply another $1 trillion mistake.

"I say to himI take it,'' responds Gov. Arnold Schwarzenegger, Republican chief executive of California. "I am more than happy to take his money.''

As the nation's governors convened in Washington this weekend, Schwarzenegger, who campaigned for former President George W. Bush and for Republican Sen. John McCainwith "pump you up'' rallies in Columbus, Ohio, where he made his name as a bodybuildersays it's time that everyone rally together.

"I feel very strongly that President Obama right now needs team players,'' Schwarzenegger said this morning in an appearance on ABC News' This Week With George Stephanopoulos. "The idea is to get together with this administration.... And work together. It's a very difficult time right now where we have to work together.''

As for the tax increases on wealthier Americans that Obama will be making part of his budget plans to cut the federal budget deficit in half by the end of his termtax increases that he had committed to during his election campaign against McCain, with the erasure of Bush's tax cuts -- the Cali-foh-nian isn't too keen on that, but understands this: "I think that writing is on the wallI don't like that of course, But I understand that he has do what he think is best for the country...

And Schwarzenegger, who made his name on the big screen as The Terminator, will be making good on his own cinematic promise: "I'll be back.''

He will be shooting a cameo appearance in a film with friend Sylvester Stallone. The governor has done three cameos since election already. As for the Academy Awards tonight, he calls "The Reader" one of the best movies he's ever seen and hopes his friend Mickey Rourke does well for his turn in "The Wrestler."

See an excerpt of the interview at the link above and see a script of the interview, courtesy of ABC News' This Week with George Stephanopoulos below:

STEPHANOPOULOS: Good morning, and welcome to "This Week." Our
headliner today, Arnold Schwarzenegger on California's narrow escape
from budget disaster, his reversal on taxes...

SCHWARZENEGGER: I say this again: I will not raise taxes.

STEPHANOPOULOS: ... working with President Obama, and wrestling
with his own party.

SCHWARZENEGGER: We've got to bring people to the center.

STEPHANOPOULOS: Is California's crisis the rest of the country's
future? Then...

FEDERAL RESERVE CHAIRMAN BEN BERNANKE: If we do not stabilize
the financial system, the fiscal policy will not lead to a sustained
recovery.

STEPHANOPOULOS: ... can the banks be saved? Will the
president's stimulus and housing plans work? What's next for the
economy? A powerhouse roundtable on the challenges ahead, with George
Will, Nobel Prize-winner Paul Krugman, BusinessWeek columnist Suzy
Welch, and the economist called "Dr. Doom" for predicting the crash,
Nouriel Roubini.

And, as always, the Sunday funnies.

JAY LENO, TALK SHOW HOST: They're leaning towards the Swedish
model for banks. It's -- and I've got another idea. How about
opening banks with all Swedish models? See, that's a bank I could go
to.

(END VIDEO CLIP)

ANNOUNCER: From the heart of the nation's capital, "This Week"
with ABC News chief Washington correspondent George Stephanopoulos,
live from the Newseum on Pennsylvania Avenue.

STEPHANOPOULOS: Hello again. Our headliner this morning, still
looking fresh after a week of all-nighters dealing with the California
budget crisis, Governor Arnold Schwarzenegger.

Welcome back.

SCHWARZENEGGER: Thank you.

STEPHANOPOULOS: So back in Sacramento, you're getting it from
both sides. Democrats say you cut spending too much; Republicans say
you raised taxes too much. Is D.C. the safest place for you this
weekend?

SCHWARZENEGGER: Well, I think that it is always terrific. And I
have told you that many times that, when you're in the center, you get
attacked from the left and you get attacked from the right. And this
is a good sign, actually, because that means that you're in the right
place.

Because remember one thing: What is good for the people is not
always good for politics. That's the important thing here.
STEPHANOPOULOS: But it seems like the most anger you're getting
comes from your own party, the Republican Party. There's a petition
circulated at the California convention -- Republican Party convention
this weekend bashing you for going back on taxes and saying you owe
former Governor Gray Davis an apology for the recall campaign you ran
against the car tax back in 2003.

I want to show people a little bit of that campaign.

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: When I get to Sacramento, I will immediately
destroy the car tax, so watch what's going to happen over there to a
car. Watch over there.

(PLAUSE)

Hasta la vista, baby, to the car tax!

(END VIDEO CLIP)

STEPHANOPOULOS: So do you owe Gray Davis an apology?

SCHWARZENEGGER: No, absolutely not. I mean, there's quite a
difference, because remember one thing: When the last time they had
the crisis in 2003, nothing was accomplished. Now we have this
crisis, we got the legislators together, the Democrats and the
Republicans.

We had the biggest budget deficit, $42 billion, got them together
and met in the middle, that not only did we have, you know, had the
cuts all for about $15 billion, but we had a revenue increase of
around $12 billion, and on top of that we got huge reforms out of
that, reforms that no one has ever dreamt of for the last 60 years in
California.

The reason why we went through this roller coaster ride,
financial roller coaster ride in California was because we didn't have
a great budget system. We never had a rainy day fund; we didn't have
a cap; we didn't have mid-year cutting authority or any of those
things. For the first time in 60 years, we got all of this now as
part of the budget negotiations. This is a huge coup.

STEPHANOPOULOS: But you're...

SCHWARZENEGGER: And it is a great, great asset for the people of
California.

STEPHANOPOULOS: But you're not out of the woods yet. A lot of
those reforms still have to pass in referendums. And if the bond
issue, for example, doesn't pass, you're going to be right back in
negotiations.

SCHWARZENEGGER: I can tell you one thing, that when you go and
gather signatures for a referendum, then there is, you know, kind of a
50-50 shot. But usually when you have both parties pass a referendum,
that means that both parties are going to go out and campaign for
those referendums.

If it's the budget reform, if is the lottery, all the kind of
things -- and the open primaries -- I think all of those things, you
will see that both parties will go out there and -- and -- and
campaign, even though the parties sometimes are against some of those
initiatives.

STEPHANOPOULOS: But back in 2003, you were unequivocal, "I will
not raise taxes." You ran that car tax issue so hard. So -- so as
you look back, was it wrong to make the promise?

SCHWARZENEGGER: No, absolutely not, because you...

STEPHANOPOULOS: Why not?

SCHWARZENEGGER: I'll tell you why. Because I made it very clear
that I'm against raising taxes, and even today I hate tax increases.
But I also made it very clear...

STEPHANOPOULOS: But so did Gray Davis. And he just felt the
budget crisis made it necessary.

SCHWARZENEGGER: But -- but I also made it very clear that I will
never sign a pledge that I will not raise taxes. Why? Because I
said, if there's an emergency, I want to have the options to raise
taxes if there's an emergency.

Right now, you have to admit, we have a fiscal emergency. We
have a financial crisis. We have a housing crisis, all of those
things. And we had a $42 billion deficit. That's the same as having
an earthquake or some other disaster.

It's an emergency. And under those circumstances, we can raise
taxes. And remember one thing: It has nothing to do with Gray Davis
or any other specific politicians. You had people like Ronald Reagan
increasing taxes and increasing spending by 13 percent. You had
Wilson increase taxes. You had Deukmejian increase taxes. And I had
to increase taxes.

SCHWARZENEGGER: You do the kind of things that are right for the
people, that are right for the state, rather than what is right for
your party. It was not right for my party. The Republicans, the
party itself hates it, even though I had other Republicans vote right
along on that budget. That's how we got it passed, because we need
two-thirds of the votes in order to pass a budget.

STEPHANOPOULOS: So when you -- we're looking at a similar budget
crisis in the coming years here in the United States. Does the
Republican Party have to re-think its absolute opposition to tax
increases of any kind?

SCHWARZENEGGER: Well, no, I think that the Republican Party or
any party has to always think, when you make a decision, "Do I want to
make a decision that's based -- that's best for the party? Or am I a
public servant and have to serve the people, what is best for the
people?"

And in this particular case, in order to solve a $42 billion
deficit, the only way you can do that is a combination of making
severe cuts and also having some revenue increases.

STEPHANOPOULOS: How -- how long is it going to take California
to dig itself out of this hole?

SCHWARZENEGGER: I think that you will see that there's a
nationwide and a worldwide crisis right now. I think every country in
the world is scrambling right now and does really have some serious
problems with revenues with their businesses, with their housing, and
with all of those things. I mean, it's -- it's worldwide. All the
other states have the same kind of problem.

So I think that it would take -- and yesterday we had some
briefings where Bernanke was to give a speech and other people,
experts. It is very clear that we will see kind of a pick-up again,
if you will, beginning of next year, that we will...

STEPHANOPOULOS: But not this year?

SCHWARZENEGGER: ... when we -- when will we come back to normal
again? I think that could take years from now to get back to where we
were.

STEPHANOPOULOS: And you think President Obama's stimulus package
is an important component of that. You are at odds with a lot of
Republicans, especially here in Washington. They almost all voted
against it. The chair of the Republican Governors Association, Mark
Sanford, Governor Mark Sanford of South Carolina, said it's a huge
mistake.

(BEGIN VIDEO CLIP)

GOV. MARK SANFORD, R-S.C.: We're a nation that has $52 trillion
of accumulated liability, $52 trillion of political promises that have
been made, but not paid for. And the idea of stacking up another
trillion, another trillion, another trillion, we really do get to that
tipping point.

(END VIDEO CLIP)

STEPHANOPOULOS: What's your response to him?

SCHWARZENEGGER: Well, Governor Sanford says that he does not
want to take the money, the federal stimulus package money. And I
want to say to him: I'll take it. I'm more than happy to take his
money or any other governor in this country that doesn't want to take
this money, I take it, because we in California can need it.

I think that it is a terrific package. I think that, if you ask
1,000 people for their opinion what is their ideal stimulus package,
you will have a 1,000 different answers. So everyone's is a little
different.

I think that he has done a great job. And I think California
benefits tremendously from that $80 billion that is tax benefits there
of around $35 billion. There's other advantages, $45 billion of
monies that go to transportation, to education, to health care, and
all those different areas.

And there's even some money in there that could benefit our --
our revenues or, I should say, our budget itself. We have a trigger
language built in there so that, if some money comes to that, then we
will reduce the cuts and we will increase the spending.

STEPHANOPOULOS: But Governor -- Governor Sanford and Governor
Jindal and several other Republican governors are not only against the
stimulus package in principle, because it's going to add to our debt,
they say that some of the specific provisions, like some of the
unemployment provisions, are going to guarantee -- make tax increases
necessary in their states in future years. Is that what's going to
happen in California?

SCHWARZENEGGER: Well, no, I don't see it this way. I see only a
benefit to the state of California. That President Obama is going to
eventually do a tax increase on the wealthier people, I think that
writing is on the wall. I think he has talked about that during his
campaign.

STEPHANOPOULOS: It's in the budget now.

SCHWARZENEGGER: And I don't like that, of course, but, I mean, I
understand that he is to do what he thinks is best for the -- for the
country, as much as I had to make decision what is best for the state
of California. So I think there are certain things that are
inevitable, especially when you have a crisis like this.

STEPHANOPOULOS: So when you see Governor Sanford, when you see
the Republican leadership here in Capitol Hill absolutely opposed to
this, are they being unrealistic?

SCHWARZENEGGER: No, I think that people have different opinions.
I mean, I think that Governor Sanford is a very, very smart guy, but
he has a different way of looking at that. And a lot of my colleagues
look at this differently.

I look at it in a more optimistic way, and I feel very strongly
that I think that President Obama right now needs team players. He --
this is why we're here in Washington right now. We have, you know,
more than 40 governors coming together here in Washington, and our
idea is to get together with the White House, with this
administration, and to work together, to have Congress, the White
House, and the governors, and everyone work together, because it's a
very difficult time now, where we have to play together, rather than
using politics and always attacking everything...

(CROSSTALK)

STEPHANOPOULOS: You know, Senator Arlen Specter of Pennsylvania
agrees with you. And he was one of the Republicans who voted for the
president's package. And he says that the rest of the party risks
becoming the party of Herbert Hoover. Are you worried about that?

SCHWARZENEGGER: Well, you know, people always, you know, say
that the Republicans are always the party of no and, you know,
attacking the Democrats. You know, I don't think that the Republican
Party is any different than the Democratic Party. I think that
politics -- the horrible thing about politics is that, the more they
attack each other, the more that they try to derail each other, the
worse it is for the people. That's why...

STEPHANOPOULOS: But these are real differences of principle.

SCHWARZENEGGER: I know, but that's why I said, you know, you've
got to go beyond just the principles. You've got to go and say, "What
is right for the country right now?" I mean, I see that as kind of
like, you go to a doctor, the doctor's office, and say, "Look, can you
examine me?" The doctor says, "You have cancer."

What you want to do at that point is you want to see this team of
doctors around you, have their act together, be very clear, and say,
"This is what we need to do," rather than see a bunch of doctors
fighting in front of you and arguing about the treatment. I mean,
that is the worse thing. It creates insecurity in the patient.

The same is with the people in America. That creates insecurity
when you have those two parties always arguing and attacking each
other, rather than coming together and saying to the American people,
"Here's the recipe. This is going to be tough, but this is what we
need to do for the next two years. And we both believe in that."
That will bring calmness to the market and stability to the market.

STEPHANOPOULOS: So you think Republican leaders in Washington
should be cooperating more with President Obama?

SCHWARZENEGGER: I think that, if they -- they should make an
effort to work together and to find what is best for the people,
because by derailing everything, it's not going to help anybody, and
it creates instability and insecurity.

And I think, also, the Obama administration -- I mean, as you
know, the president is very clear when -- in his message. And he's a
very great speaker and articulates really well. But there's people
around him that they -- they also have to have that same clarity when
they go out there, and make people feel at ease and that they have
their act together.

And I think that, all together, we can really bring this country
back, because I tell you, no matter where you look, this is still by
far the best country in the world. There is no one that can come even
close to us.

STEPHANOPOULOS: Yet California has one of the worst foreclosure
crises in the country right now. President Obama laid out his plan to
deal with that this week. And a lot of critics said that this is, you
know, creating a moral hazard, it's bailing out people when those who
were responsible with their mortgage, they're getting no government
help.

SCHWARZENEGGER: Well, you know, there is people that are failing
with their mortgages because they have been laid off, they've lost
their jobs. There's others that they signed up to a deal where they
didn't know there will be this bump in the interest rate and all this.

What we have in -- in California is we have sat down with the
lenders and we have worked out a voluntary agreement with them to go
and do modifications, loan modifications, where we had them reduce the
interest rate or where we amortized the -- the loans out further,
another extra 10 years.

And so I think that's what the -- the federal government -- as a
matter of fact, Sheila Bair has recommended that already more than a
year ago, and she has been terrific with that housing crisis.

So I think that everyone is making the effort, but things change,
also, all the time. Right now, for instance, the big thing is that we
know that in -- in commercial real estate, there will be a shoe
dropping very soon, because I think all of those companies that are
now, you know, having financial trouble or getting bankrupt, they will
not be able to make their payments, the lease payments and so on, and
they will pull out. And all of a sudden, you have a real estate
building with only half of the places rented.

STEPHANOPOULOS: But on this question of fairness, what do you
say to the homeowner who didn't buy too much house, who took an extra
job to make sure they -- they made their mortgage payments, and they
see their next-door neighbor getting bailed out?

SCHWARZENEGGER: Well, first of all, every situation is
different, as you know, that maybe have a job, you can still afford
your house. Maybe your neighbor has just lost their job. Isn't it
nice when you, for instance, work something out with the bank, where
the bank says, "Look, while you're in this situation, we're going to
stop you from having to pay. I mean, we understand that you cannot
make the payment. We don't want to throw you out of the house. For
the next six months, we will not charge you for your -- for your
mortgage payment"?

So I think that people just need a little bit of help. What does
the bank do when they get stuck with a house that is 40 percent -- has
40 percent less value? I mean, that has been a huge problem in this
country in general, because eventually they think that the banks have
to -- and the lending institutions have to figure out what to do with
that asset. You know, should it be written off, those trillions of
dollars of assets?

STEPHANOPOULOS: You've talked often about how you first came to
the United States in part because of your hatred of socialism, of the
whole socialist system. So I wonder, when you look at government
coming in, taking over mortgage companies, taking over insurance
companies, the prospect now of nationalization of banks, is that
something you now see as necessary?

SCHWARZENEGGER: Well, I -- first of all, I think that we have a
really good system here in America. You don't have to talk about
nationalization. All it basically says is that if a bank doesn't have
the money to -- to give their customers, so if it, you know, defaults
in some way, that the federal government comes in, because it secures
those moneys.

SCHWARZENEGGER: And so they come in, and they help out, that
they go with the bank, because they cannot make the payments anymore,
and -- and to business. So the federal government always had that
right to take over. So it's not nationalizing anything. I don't see
it as such. There's a difference of the way it is in Europe, where
the -- where the federal government owns some of those banks, whereas
here only if there is a problem financially that the federal
government comes in and takes over and helps out.

STEPHANOPOULOS: Well, and we're seeing that now...

SCHWARZENEGGER: And that's a huge service to the people of
America, to have that security to know that, no matter what happens,
the federal government will step in and will get your money.

STEPHANOPOULOS: But then the question is, these -- these capital
infusions from the federal government may give them essentially
majority stake in some of the biggest banks in the country. Is that
something you're prepared to accept?

SCHWARZENEGGER: Well, with some banks, that's maybe necessary.
I think the most important thing is, how do we create stability in
this country? And I think this is why it is very important that the
administration has a very clear message and not change it.

I think that what America has really gone through, a huge
challenge just this last year, because we have had a different
administration. They have a different way of thinking. No -- no one
here is right or wrong, but a different way of thinking.

Then, in the middle of this crisis, you had a change of
administration. Now this administration is in for a month. You can't
expect them all of a sudden to have all the answers and all of those
things. They need still time to warm up and to get going.

And he has some -- Obama has some terrific people there in those
leadership positions. And so I have total confidence in them.

STEPHANOPOULOS: You've had a lot of praise for the president and
his team and his plans over the last several weeks. And a lot of
Republicans hear that and say, "Wait a second. You don't agree with
us on the stimulus. You're supporting President Obama on energy and
the environment and his budget plans. You don't agree with us on
abortion or gay rights. So why are you still a Republican?"

SCHWARZENEGGER: Well, because I still believe in the Republican
principles, but remember one thing, that it doesn't really matter if
you're a Republican or Democrat. I think that so many people get
caught up with this whole thing.

We are elected to be public servants. So what does it matter if
you're a Democrat or a Republican? When people need to have roads
built, when we talk about infrastructure in America, we need $1.7
trillion to $2 trillion of infrastructure in America. Who cares if
you're a Republican or Democrat? Everyone is using the roads.
Everyone would use high-speed rail. Everyone uses the infrastructure
and all of those things, the schools, the kids.

It doesn't matter. We should go beyond all this. Is it a
Republican idea or is it a Democratic idea? Which philosophy does it
fall under? It doesn't matter.

STEPHANOPOULOS: You're trying...

SCHWARZENEGGER: We've got to rebuild America. And we've got to
help people, be public servants, not party servants.

STEPHANOPOULOS: You're trying to further that by having this
system of open primaries...

SCHWARZENEGGER: That's right.

STEPHANOPOULOS: ... in California. Whoever -- everyone runs,
the top two finishers, whatever party they come from, they're on the
ballot in the general election. You seem to have unified both parties
with that idea, the Republican Party leadership, Democratic Party
leadership both against it. Do you really think it can make a
difference?

SCHWARZENEGGER: It will make a huge difference. And remember
one thing: It's always great when the Democratic Party and the
Republican Party is against something, because that means it's good
for the people. That is the bottom line.

Open primaries is good for the people because then people don't
have to make decision and say things to appeal with their party so
they can win the primary and then, all of a sudden, they have to come
to the middle. So to say something totally different that is one
campaign and, later on, they have to campaign for the overall to -- to
-- to win the election.

So I think it's horrible to have to move around. Let's open up
the primaries, no different than when you have a mayoral race. Like
in Los Angeles right now, Villaraigosa -- there's an open primary.
There's an open election, where you have the first two -- the two top
candidates then have a run-off election. That's the way to do it. It
doesn't matter which party it is.

If the people choose one, if they're Democrat, then so be it. If
they choose the Republican, if they choose a Democrat and a
Republican, and they have them go for the run-off election, that's the
way it ought to be.
STEPHANOPOULOS: Yet you still call yourself a Republican. And
you're here with a lot of your fellow Republican governors this week.
And I wonder what you think the prescription is for the Republican
Party to go now from minority status to get the majorities back in the
House and the Senate, to get the White House back.

SCHWARZENEGGER: It's very simple. Listen to the people. The
best thing you can do, no matter what party you're in, listen to the
people. In California, we know that 64 percent of the people have
said that we should solve this budget crisis, the $42 billion deficit,
with tax increases and with spending cuts. So what I have done is
what the majority of Californians want to do.

The Republican there were not in touch with of what the majority
of people want to do in California. And the same is nationwide.
You've got to listen to the people. If the nation is screaming out
loud, "We need health care reform. We want to have universal health
care. We want to have everyone insured. We want to bring the costs
down. We want everyone to have access." I mean, that's what they
want; that's what you do.

STEPHANOPOULOS: Even if it requires tax increases?

SCHWARZENEGGER: Even -- if -- no, even though it maybe is
against your principles or philosophy, you still have to go, because
that's what the people want you to do. And the same is in California.
So I will go again after health care reform. I will be going after,
you know, education reform, which, of course, we've got some good one,
because of the categoricals dropped by $6 billion, our categoricals,
so more money goes into the classroom now.

So you've got to do what the people want you to do rather than
getting stuck in your ideology.

STEPHANOPOULOS: There was also a report on the Web site TMZ this
week about your own future. It said you might be taking a bit part in
Sly Stallone's movie. Then you came back the next day and said, no,
I've got to get through the budget crisis first. You're through the
budget crisis now. Are you going to do it?

SCHWARZENEGGER: Well, no. As you know, since I've become
governor, I've done three cameos when friends asked me. And Sly asked
me if I would do a cameo. I said, "Of course I'll help you and do a
cameo. There's no two ways about that."

But it had nothing to do with the budget crisis or with the
budget negotiations, because that will be done some times in April,
May or June. I have no idea.

STEPHANOPOULOS: OK. So you still might do it?

SCHWARZENEGGER: Oh, yes, no, absolutely. I enjoy him. He's a
terrific director and writer and a great actor. And we hang out a lot
of times together.

STEPHANOPOULOS: How about after 2010? You're term-limited. Do
you run for Senate or do you go back to the movies?

SCHWARZENEGGER: I have no idea. You know, I'm not thinking now
about what I'm going to do, because remember one thing: As soon as I
stepped into this political arena, when I became governor, it was not
about "me." It was about "we." We turned that "me" upside-down. It
was about "we."

I mean, it's all about California. It's all about the people. I
have been very successful in creating some of the reforms that we
needed. If it is worker's comp reform, if it is rebuilding California
and their infrastructure, if it is the open primary, if it is the
redistricting that we won just last November, I'm a reformist. I want
to go in there and reform and fix what is broken in California. And I
will be relentless with that, and I never, ever give up.

STEPHANOPOULOS: We're out of time. What's your Oscar pick
tonight?

SCHWARZENEGGER: I really don't know. I mean, I think that "The
Reader" to me was one of the best movies, you know, one of the best
movies that I've ever seen. I think that movie has a great shot.
And, of course, "The Wrestler," my buddy, you know...

STEPHANOPOULOS: Mickey Rourke.

SCHWARZENEGGER: ... Mickey Rourke is a terrific actor. I wish
that he will be successful and do as well tonight. So there are some
really good movies...

(CROSSTALK)

STEPHANOPOULOS: And we asked all of our viewers for their
favorite political movie. Yours?

SCHWARZENEGGER: I think "The Reader."

STEPHANOPOULOS: "The Reader." Oh, political movies.

SCHWARZENEGGER: You mean all-time?

STEPHANOPOULOS: All-time.

SCHWARZENEGGER: Oh, political movie. "The Candidate," maybe, I
think, is -- is one of those great movies.

STEPHANOPOULOS: Governor Schwarzenegger, thanks very much.

SCHWARZENEGGER: Thank you very much. Thank you.

STEPHANOPOULOS: So "The Candidate" from Arnold Schwarzenegger.
All of you picked "All the President's Men."

Storytelling, Ghetto Film School-Style

In a converted former piano factory overlooking the East River in the Bronx, kids learn top-notch film school techniques — and don't pay a cent for the experience. It's the Ghetto Film School, and its mission is to teach the art of narrative storytelling to kids from New York City.

Christian Filmmakers Creating An Industry Of Faith

Obama: Broadest, Quickest Tax Cuts Ever
The president said his signature two-year "Making Work Pay" tax break will affect 95 percent of working families, and, in six weeks' time, a typical family will start taking home at least $65 more every month.
Police Move to Arrest Suspect in Chandra Levy Case
ABC News' Rhonda Schwartz, Imtiyaz Delawala and Pierre Thomas report: Police investigating the 2001 “cold case” murder of Washington intern Chandra Levy plan to seek a warrant for the arrest of a convicted felon, currently serving jail time, who has...
Maybe Burris should sleep with open eye

by Frank James

When we heard White House Press Secretary Robert Gibbs talking during his media briefing yesterday about how Sen. Roland Burris, aka, "The Real Roland," should spend his weekend, a few of us reporters heard what we thought sounded like an ominous warning:

And I think it might be important for Senator Burris to take some time this weekend to either correct what has been said and certainly think of what lays in his future.

That sounded like one of those "messages" you never want to get from the Chicago Mob.

Clearly, the White House would like to see the Burris story go away, embarrassing distraction that it is.

So was this the White House's way of saying to Burris, "Nice mausoleum you got there; sure would hate to see anything happen to it?"

Or did it portend that he might be receiving a dead fish, like what reportedly happened to a pollster who once got on the wrong side of Rahm Emanuel, now White House chief of staff?

It all reminded us of that famous scene from the Godfather where the Hollywood mogul wakes up in bed next to a horse's head. Not good.

Burris doesn't seem to be taking advice from the Tribune these days. After all, the Chicago Tribune editorial just advised him to resign and he hasn't... yet.

But he might want to sleep with one eye open.

Christian Filmmakers Creating An Industry Of Faith

As Hollywood crowns its favorite movies and actors at the Oscars on Sunday, another group is trying to create a rival movie industry. Fed up with sex and violence in mainstream entertainment, conservative Christians are turning out their own films. And they've made surprising inroads.

Drag-queen homecoming queen: GMU

Clinton: Bad Time For China Rights Debate
U.S. Secretary of State Hillary Rodham Clinton said Friday that the debate with China over human rights, Taiwan and Tibet cannot be allowed to interfere with attempts to reach consensus on other broader issues.
South Korea Loves Hillary Clinton Too
ABC News' Martha Raddatz reports from Seoul, South Korea: Secretary of State Hillary Clinton continued her whirlwind tour of Asia with a stop in Seoul, South Korea. And she continued to pour on the charm, too. A day after appearing...
Drag-queen homecoming queen: GMU

by Mark Silva

This just in from the suburbs of Washington, D.C., from the heart of a sprawling standard metropolitan statistical area that is turning the old dominion, the commonwealth of Virginia, from red to blue on the political spectrum:

Students at George Mason University have elected a drag queen as homecoming queen.

Ryan Allen pulled a cultural, and figurative, mind-you, smack-down on two women for the title. This is the state school that gained national fame for its run at college basketball's Final Four three years ago.

Now GMU is staking a new claim to fame: Reann Ballslee, the nom de plumage of the drag-turned-homecoming queen.

Allen, who is gay and performs in drag at area nightclubs, entered the campus competition as a joke. Yet now he happily views his victory as proof that a diverse student body has come of the modern-age.

The senior from Virginia's Goochland County won the pageant at a sold-out homecoming basketball game against Northeastern.

Illinois Governor Calls For Burris To Resign

Gov. Pat Quinn called Friday for fellow Democrat Roland Burris to resign from the U.S. Senate and implored Illinois lawmakers to quickly pass a law setting up a special election to fill any vacancy.

Obama Discusses Trade, Climate Change In Canada

Obama In Canada: Short Trip, Long Agenda
Barack Obama's first foreign trip as presidenta down-to-business visit with an essential economic ally, Canadais light on time but loaded with touchy matters.
Hillary Goes 'Awesome' but Won't Sing for Cameras
ABC News' Martha Raddatz reports from Jakarta, Indonesia: Secretary of State Hillary Clinton had a very fun appearance on a local youth-oriented variety show here in Jakarta, the title of which translates to "Awesome." "I heard I was going to...
Afghanistan fight worthwhile: U.S. poll

by Mark Silva

It's worth taking note of the fact, months before the Marines send another Expeditionary Force into Afghanistan and the Army deploys a new Stryker brigade, that American public opinion offers some support for an increasing U.S. military commitment Afghanistan.

Yet, as the Obama administration prepares to deploy another 12,000 combat troops and 5,000 support personnel to a theater where 30,000 Americans already are serving, it's also worth noting that Americans have a sober view of how things are going in Afghanistan: 52 percent saying moderately or very badly and 44 percent saying moderately or very well.

An overwhelming number70 percent -- worry that the Taliban will reclaim control of the nation that it was controlling before the U.S.-led invasion in the aftermath of the Sept. 11, 2001, terrorist attack if U.S. forces are withdrawn, according to the findings of a recent Gallup Poll.

While nearly one third of those surveyed favor setting a timetable of two years or less for the continuing U.S. military presence in Afghanistan, 48 percent say the U.S. should keep troops there until the situation improves. And if history is any indication around Kabul, that could be a long time.

"Americans, for the most part support the underlying rationale for the U.S. presence in Afghanistan,'' Gallup reports. "Only 30 percent say it was a mistake to send troops to Afghanistan, compared with 66 percent who disagree.''

By comparison, since October 2006, a majority of Americans have consistently said the United States made a mistake in sending troops to Iraq.

The measure of opinion about Afghanistan was taken Jan. 30-Feb. 1, in a survey of 1,027 adults with a possible 3 percentage point margin of error.

Obama Discusses Trade, Climate Change In Canada

The president makes his first foreign trip, with Afghanistan also on the agenda as he meets with Canadian Prime Minister Stephen Harper.

Obama Unveils $75B Mortgage Relief Plan

Obama Unveils $75B Mortgage Relief Plan
President Barack Obama's plan to tackle the foreclosure crisis will spend $75 billion in an effort to prevent up to 9 million Americans from losing their homes.
Guantanamo Review in Full Swing: Attorney General to Visit Facility Next Week
ABC News' Jason Ryan Reports: After his speech today on race relations in America commemorating Black History Month, Attorney General Eric Holder said on Monday he and the Acting head of the Justice Department's National Security Division, Matthew Olsen, will...
A.G. Holder: 'Race-protected cocoons'

by Mark Silva

Eric Holder, the nation's first African-American attorney general, addressed the employees of the Justice Department on the occasion of Black History Month today with an assessment that, on matters of race, America remains "essentially a nation of cowards,'' in some ways not much better than it looked 50 years ago.

Look around the shopping mall on a Saturday, he suggestedone of the "race-protected cocoons'' where segregation persists.

Provocative words from the administration of the first African-American president, Barack Obama, one who campaigned not as a black man but as an agent of "change,'' yet who nonetheless presented the United States with an historic testthe election of a black president. During the campaign, Obama directly confronted the question of race with an address calling for fulfillment of that "more perfect union.''

"Though this nation has proudly thought of itself as an ethnic melting pot, in things racial we have always been and I believe continue to be, in too many ways, essentially a nation of cowards," said Holder, a former federal judge whom Obama made the nation's chief law enforcement officer.

"We, as average Americans, simply do not talk enough with each other about race,'' said Holder, urging people of all races to use Black History Month as a platform for honest discussion of racial matters, including disparities in health care, education and income.

"If we are to make progress in this area, we must feel comfortable enough with one another and tolerant enough of each other to have frank conversations about the racial matters that continue to divide us,'' Holder told hundreds of Justice employees, suggesting that, while blacks and whites are integrated in many quarters, they still are segregated in their free time in "race-protected cocoons.''

"Saturdays and Sundays, America in the year 2009 does not in some ways differ significantly from the country that existed almost 50 years ago. This is truly sad," Holder said.

"If we're going to ever make progress, we're going to have to have the guts, we have to have the determination, to be honest with each other,'' Holder told reporters after the speech. "It also means we have to be able to accept criticism where that is justified.''

Bristol Palin Speaks Out

Obama Set To Make History, Again
President Barack Obama is ready to sign into law the most sweeping economic package in decades, a rescue plan meant to reinvigorate job creation, consumer spending and public optimism.
Bristol Palin Speaks Out
ABC's Teddy Davis and Sara Just report: Bristol Palin, the 18-year-old daughter of Alaska Gov. Sarah Palin, told Fox News in her first interiew since giving birth that she would like to be an advocate against teen pregnancy. "Everyone should...
Obama: 'A destiny of our own making'

by Mark Silva

"I don't want to pretend that today marks the end of our economic problems,'' President Barack Obama said today, calling the $787-billion economic stimulus bill that he signed "the beginning of the first steps to set our economy on a firm foundation.''

Obama, traveling to Denver to sign a measure that cleared Congress with only three Republican senators and no Republican members of the House supporting it last week, thanked the Democratic leaders of Congress for swift passage of the package.

"What makes this recovery plan so important is not just that it will save or create 3.5 million jobs,'' he said. "We're putting Americans to work on work that needs doing... We are remaking the American landscape with the largest new investment in our infrastructure since Eisenhower built the Interstate highways.''

Michael Steele, chairman of the Republican National Committee, offered another perspective on the bill today: "Americans looking for jobs and struggling to pay bills will be disappointed by the spending package written by congressional Democrats and signed by President Obama today. The transparency and bipartisanship that President Obama promised the American people was sacrificed to pass a pork-laden bill without any public review or meaningful Republican support.''

The spending in the plan represents the biggest federal investment in education ever, the president said, and does more to advance the cause of health care than anything done in the past decade.

"The road to recovery will not be straight. We will make progress and there will be slippage along the way. There will be hazards and reverses... But I have every confidence that if we are willing to do the critical work that needs to be done.... Then we will leave the struggling economy behind us....

"It's about rejecting the notion that our fate is somehow written for us,'' the president said, "and instead laying claim to a destiny of our own making.''

'So Damn Much Money': The Influence Of Lobbyists

When former DNC chair Robert Strauss said, "There's just so damn much money in it," Robert Kaiser knew he had a title for his book on the multi-billion dollar world of political lobbying.

Politically, Stimulus Fight Has Just Begun

Politically, Stimulus Fight Has Just Begun
The plan to turn around the worst financial crisis facing the country in more than 50 years now carries not only enormous fiscal stakes but also political stakes that are nearly as large.
Clinton Tough on North Korea on First Trip Abroad
ABC News' Martha Raddatz reports: On her first flight abroad as secretary of state, Hillary Clinton told reporters that choosing Asia for her initial overseas foray demonstrated how indispensable Asia is to the "opportunities and challenges of the 21st century."...
Bernanke's foreclosure-crisis tie

by Frank James

Federal Reserve Chairman Ben Bernanke may be taking the housing foreclosure crisis more personally than a lot of other Washington policymakers since his childhood home in Dillon, S.C. was recently in foreclosure.

The Wall Street Journal has the story. An excerpt:

DILLON, S.C. -- Travis Jackson walks through his modest ranch house, admiring the kitchen's built-in spice rack and the red-oak floors. He draws back the curtains, and sunlight illuminates the pride on his face.

The young banker just bought Federal Reserve Chairman Ben Bernanke's childhood home at a foreclosure sale.

"This is where it all happened," marvels Mr. Jackson, a 27-year-old loan officer at First Citizens Bancorp, which is down the street from the old Bernanke place. "Kind of a surreal feeling, isn't it?"

Mr. Bernanke's family sold the property more than a decade ago. It ended up on the block late last year after its former owners fell behind on their mortgage payments.

Not quite sure what Jackson means when he says "it all happened" in that house. I mean, we're talking Bernanke here. Thinking of Bernanke working on quadratic equations at the kitchen table doesn't quite have the same impact for me as imagining during a visit to Monticello what Thomas Jefferson was up to.

Still, there is something unquestionably perverse about the house where Bernanke grew up being foreclosed on.

(Bernanke photo by Joshua Roberts/Bloomberg News)

The Week Ahead In Politics

Host Alex Cohen chats with NPR's Senior Washington Editor Ron Elving about what's on tap, including Obama's reasons for scrapping the car czar, questions around Illinois' Sen. Roland Burris, and Obama's trip out West.

NBA stars critique Barack Obama's game

Embedded video from CNN Video

By John McCormick and Stacy St. Clair, updated

The morning after a romantic Valentine's Day dinner out, President Barack Obama hit the basketball court Sunday to burn off a few calories and visit with some Chicago friends.

The presidential game, which lasted about two hours and was followed by a haircut at an apartment building near Obama's home, was on the University of Chicago's Lab School campus, according to a media pool report. No word yet on who he played with.

The game came after a Saturday evening meal enjoyed by Obama and his wife, Michelle, at a Gold Coast restaurant owned by Oprah Winfrey's one-time personal chef, Art Smith.

After a three-day weekend at home, the First Family is scheduled leave for Washington from O'Hare International Airport aboard Air Force One about 10 a.m. Monday.

Obama's basketball game was dissected on nation television on Sunday, when CNN's "State of the Union with John King" asked several NBA stars to review his moves.

"He's smart at the game," former Los Angeles Lakers star Earvin "Magic" Johnson said. "First thing up he's passing, nice post pass, nice set up, always looking for the other man."

After another clip, New Orleans Hornets guard Chris Paul takes not of Obama's left-handedness and says "lefties always can shoot."

After a three-pointer, King asks whether Obama has enough swagger after sinking a bucket.

"Nah, he's got plenty of swagger," said Phoenix Suns' guard Steve Nash. "Plenty of swagger. You can tell."

Basketball Hall-of-Famer Bill Russell of the Boston Celtics called Obama a "pretty good re-bounder."

Johnson, who attended Obama's inauguration, made clear that he likes Obama's game on and off the court.

"He sees the play before it develops," he said. "That is how he is running the country. I don't want people to say you are linking the president to a point guard. I'm not doing it...What I'm saying is that a point guard got to think five minutes ahead."

White House Spokesman Robert Gibbs had been asked about the importance of basketball to the president during an appearance on King's show.

"There are very few days in which I don't see, at some point in the day, the president either handling or dribbling a basketball," Gibbs said. "I know he's anxious to get out on the court. He is going to play with some friends in Chicago here today. It's been a part of his life for a very long time, growing up in Hawaii and playing with his friends on a playground, and even playing with those very same friends now."

Gibbs said the review by professional players might even be a little intimidating for the nation's most powerful man.

"I can only imagine that if I were to call him now, he would be a little nervous that people like Bill Russell were going to critique his game," he said. "That's pretty serious."

It is a basketball-heavy day for Obama, who will appear in a public service announcement for volunteerism during tonight's NBA All-Star Game.

For their first big date since the inauguration, the Obamas selected Table Fifty-Two, an upscale establishment where the menu features decadent southern fare such as pan-seared catfish, low-country shrimp with stone-ground grits and buttermilk fried chicken. Red velvet cake was the dessert special Saturday evening.

Smith, a renowned cookbook author who served Winfrey for 10 years, greeted the couple as they entered the restaurant while fellow diners applauded and cheered. The Obamas smiled and waved before heading to a private dining room on the second floor, patrons said. Their meal lasted for about two hours according to media pool reports.

"Everyone seemed to be in awe. Everyone's phones opened up," said Brandon Byrne, 22, a Northwestern student who was celebrating Valentine's Day at the restaurant.

"It's crazy. You're eating dinner 30 feet from the most famous person in the world."

Located in the former Biggs Mansion carriage house on Elm Street, the 36-seat main dining room embraces its cottage chic decor with a stone bar, hickory flooring and a pressed copper ceiling. Tables are extremely difficult to secure, with diners making Valentine's Day reservations as early as November.

The Obamas' date destination had become a popular parlor game for Chicago foodies, with some assuming they'd hit old favorites such as Spiaggia or Topolobampo.

Outside Topolobampo, Kimberly Blake Fadim sat in her car waiting to see the president.

"I want him to meet me directly so I can personally deliver my résumé," said Fadim, a sandwich delivery driver who'd like to work for the next secretary of health and human services.

The dinner also offered the Obamas a chance to celebrate passage of a $787 billion economic stimulus package he has made a hallmark of his early presidency. In his weekly radio and Internet address Saturday, the president called the measure "a major milestone on our road to recovery."

The massive spending plan cleared Congress Friday largely along party lines. "I will sign this legislation into law shortly," Obama said during his address, "and we'll begin making the immediate investments necessary to put people back to work doing the work America needs done."

-- Tribune reporter Mary Owen contributed.

Are We Supposed To Be Spending Or Saving?

These days the government seems to be telling us to spend, spend, spend — but isn't that what got us into this financial mess in the first place? Economics columnist David Leonhardt offers some principles for spending wisely.

Congress Strengthens Exec Pay Limits

Congress Strengthens Exec Pay Limits
Over the White House's objections, Sen. Chris Dodd inserted strict rules into the $787 billion economic stimulus package limiting bankers' bonuses.
Exec pay cap = Sen. Dodd job protection?

by Frank James

You don't have to be a Wall Street money magnet to be concerned about the unintended consequences from a provision tucked into the $787 billion economic stimulus bill that would limit executive pay.

Reports for a few days have said Sen. Chris Dodd placed in the legislation limits on bonuses and other compensation for senior executives whose companies receive federal money.

The New York Times has a report with a good description of the limits.

The pay restrictions resemble those that the Treasury Department announced this month, but are likely to ensnare more executives at many more companies and also to cut more deeply into the bonuses that often account for the bulk of annual pay.

The restriction with the most bite would bar top executives from receiving bonuses exceeding one-third of their annual pay. Any bonus would have to be in the form of long-term incentives, like restricted stock, which could not be cashed out until the TARP money was repaid in full...

... The revised rules do not impose a formal cap on executive compensation, unlike the Treasury proposal. Under that plan, banks were barred from paying more than $500,000 in salary until they repaid the TARP funds to the government. (Banks were permitted to offer bonuses in restricted stock.) Senator Dodd's rules, however, go a step further, prohibiting banks from awarding restricted stock to 25 top executives equal to more than one-third of their annual cash compensation until the banks have repaid all the money owed.

In addition, the Congressional rules would affect not just a bank's top management, but also star traders, investment bankers, fund managers and commission-based sales representatives. They have traditionally received multimillion-dollar payouts based on their year-end results.

As sources quoted by the NYT and others say, one unintended consequence is that financial institutions will just raise salaries to offset the limits on bonuses.

Another is the risk of a brain drain at the very time when the financial industry and the economy can least afford it.

Yet another possibility is that financial institutions will repay the federal money they received sooner than they would have otherwise to get out from under the restrictions.

There's a requirement in the Troubled Asset Relief Program that if a bank repays the government it must then raise replacement capital in the private markets. Banks may just decide to go that route at greater expense and risk to themselves.

Then there's always the chance that banks that could use the cash to strengthen their balance sheets will forgo it altogether or wait until they are forced by federal regulators to take federal money.

Fearing any and all of these possibilities, the Obama Administration opposed Dodd's limits. Yet Dodd insisted on them.

Why, especially since so many of the bankers who will be affected are his wealthiest constituents living in Greenwich, Conn.?

Perhaps he's really angry at Wall Street types and wants to crack down on them. even though many are presumably his friends.

Here's another possibility worth considering. Though there are a lot of wealthy Wall Streeters in Connecticut, there are a lot more middle-class people there. And Dodd needs those middle-class votes next year in what could be a very challenging re-election bid.

Part of what makes it so difficult is Dodd, Senate Banking Committee chairman, was a "friend of Angelo" as in Angelo Mozillo, the former CEO of Countrywide. As such Dodd received mortgage loans at favorable interest rates.

Being a one-time friend of Angelo's has made Dodd seem much less a friend of the people. Quinnipiac University has a recent poll that suggested that Dodd could be vulnerable.

As CNN reported:

Fifty-one percent of registered voters in Connecticut questioned in a Quinnipiac University survey released Tuesday say they definitely won't or probably won't vote for Dodd in November 2010, when the five-term Democratic senator is up for re-election. Forty-two percent say they'll definitely or probably vote for Dodd.

Only 41 percent of those surveyed approve of the way Dodd is handling his job, with 48 percent disapproving. That's Dodd's worst approval rating ever in Quinnipiac University polling.

The survey also suggests that a majority of Connecticut voters, 54 percent, say they are not satisfied with the senator's response to allegations that he received preferential mortgage treatment, with 24 percent saying they are satisfied with Dodd's explanation. Fifty-six percent indicate they are less likely to vote for Dodd in 2010 because of the controversy. And voters are split on whether Dodd is honest and trustworthy.

Dodd is chairman of the Senate Banking Committee, which has oversight over the banking industry and mortgages. Dodd's two mortgages through Countrywide Financial Corporation's VIP program are being investigated by a Senate ethics panel. The senator said he sought no special treatment from Countrywide when he refinanced his Washington, DC and Connecticut homes six years ago. He acknowledged participating in the VIP program, but Dodd said he thought the program gave upgraded customer service rather than reduced rates.

The Dodd provision in the stimulus legislation will certainly give Dodd a way to change the subject when Republicans hit him with the "friend of Mozillo" charge when his re-election campaign gets into high gear next year.

Dueling Columnists: Can Left And Right Get Along?

There's been at a new social emphasis on bipartisanship in the early days of the Obama administration. So far it's brought about more thank you notes than votes. But it's irresistible to wonder, on this Valentine's Day, if there is any kind of a future for bipartisan love?