Cheat Sheet
The Best In Brief
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Congressional Republicans are prepared to vote against President Obama's $825 billion stimulus package when it comes up for a vote tomorrow. House Republican Leader John Boehner and Minority Whip Eric Cantor have instructed their colleagues that there is no point in backing Obama's plan. The president may have swayed a few votes when he visited Capitol Hill this afternoon to lunch with Republicans, but he may also have to shore up support among Democrats, whom Senate Minority Leader Mitch McConnell said this morning are "drifting away" from the original plan.
Illinois Gov. Rod Blagojevich was a no-show at Day 2 of his impeachment trial, but his voice was heard loud and clear, as state senators listened to taped conversations between their governor and his associates. The recordings lacked the colorful language of other famous Blago phone calls—no cursing out the Obama team—but they did show a governor frantic to beat a year-end deadline before tougher ethics rules about campaign contributions went into effect.
Call them the mini-Madoffs. They may have stolen from investors a fraction of Bernie Madoff’s $50 billion haul, but others caught running Ponzi schemes have been turning up in record numbers in recent weeks. What’s causing them to surface now? The New York Times reports it’s a “combination of a deteriorating economy and heightened skepticism about outsize returns after the revelations about Mr. Madoff.” Among the gems The Times digs up: New Yorker Nicholas Cosmo (he promised 48 to 80 percent returns), Haitian immigrant George Theodule (“man of God”), and Arthur Nadel (Sarasota philanthropist), as well as disgraced Clinton donor Norman Hsu (remember him?).
Two-time Pulitzer Prize-winning novelist John Updike, who penned over 50 books beginning in the 1950s, died today at the age of 76. "A literary writer who frequently appeared on best seller lists, the tall, hawk-nosed Updike wrote novels, short stories, poems, criticism, the memoir Self-Consciousness and even a famous essay about baseball great Ted Williams,” the Associated Press reported. Updike won his Pulitzers for Rabbit Is Rich and Rabbit at Rest as well as two National Book Awards. The cause of death was lung cancer.
As tributes to John Updike begin rolling in, perhaps it’s best to remember the author by some lines from a poem he wrote himself, “Perfection Wasted”: “And another regrettable thing about death/is the ceasing of your own brand of magic/which took a whole life to develop and market…”
Looks like Dick Fuld may be hearing the pitter-patter of little feet—his creditors’ feet, that is. The former Lehman Brothers chief appears to have sold his seaside mansion in Jupiter Island, Fla., bought in 2004 for $13.75 million, to his wife, Kathy, for $100. Fuld, 62, took some $260 million between 2003 and 2007, but was left with no bonus or severance payments after Lehman went belly-up in October. Now he’s “at the center of a federal probe into whether Lehman misled investors about the firm’s declining performance,” The Washington Post’s Investigations blog reports, and some legal experts are questioning whether the sale of the mansion is an attempt to divest himself of assets ahead of possible investor lawsuits or bankruptcy proceedings.
In his last full day in office, Bush formally rejected a number of high-profile petitions for clemency, the Justice Department says. Bids by disgraced former Rep. Randy “Duke” Cunningham, “junk bond” king Michael Milken, American Taliban John Walker Lindh, and Native American activist Leonard Peltier were struck down, forcing all to wait two years to reapply for a pardon or one year for a commutation. Bush made no formal rulings on media baron Conrad Black, Cheney pal Scooter Libby, or Israel spy Jonathan Pollard, leaving their petitions alive. Bush seemed “to go out of his way to deny the high rollers, the prominent people,” an official familiar with the pardon denial list told the Los Angeles Times.
There’s a new administration in Washington, but the bank bailouts continue! The Treasury Department today handed out its first cash infusions under Obama—$386 million to 23 small to midsize banks that are described as “healthy, “viable,” and “local.” The Obama team stresses the goal of the fund is “increasing the flow of financing available to small businesses and consumers.” Notably, there’s no mention of Bush’s unfortunate TARP in today’s announcement; instead, the Capital Purchase Program is highlighted. And, USA Today’s On Deadline blog points out, the list of banks receiving the cash is “included in the announcement itself, not ‘hidden’ behind a separate link.”
Joaquin Phoenix’ recent antics—wild, matted hair and beard; shambolic partying; proclaimed intentions to give up acting for rapping—have had some fans fearing he might be going crazy. His shambling three-song rap debut, at a Las Vegas nightclub on Jan. 16, only solidified the feeling. But they needn’t have worried: Entertainment Weekly’s Hollywood Insider blog reports the two-time Oscar nominee may be “perpetrating an elaborate Andy Kaufman-style hoax,” all filmed by his friend and brother-in-law Casey Affleck for a faux documentary to “lampoon pompous actors and punk the media.” Phoenix told a source, “It’s a put-on. I’m going to pretend to have a meltdown and change careers, and Casey is going to film it.”
Her husband’s already hard at work at his new job, and now it’s Jill Biden’s turn. The nation’s second lady traveled to Alexandria, Va., today to begin a new job at Northern Virginia Community College, where she’ll teach two English courses this semester as an adjunct professor. “I am thrilled to return to the classroom to continue working with community college students, whom I greatly admire and enjoy teaching,” she said in a statement. The job should be a familiar one: Dr. Biden has taught English for nearly three decades, half of that time at Delaware Technical & Community College.
America might as well begin bracing itself for a Sarah Palin revival right now. The Alaska governor has launched a political action committee to raise funds for local and national candidates, a sign that she’s planning a presidential run in 2012. SarahPAC is located not in Alaska, but in Arlington, VA. According to SarahPAC.com, “SarahPAC believes the Republican Party is at the threshold of an historic renaissance that will build a better future for all.”
For those of you who loved Rick Warren’s prayer at inauguration: Good news! The pastor is trying to expand his brand at newsstands near you. Purpose Driven Connection, a new quarterly publication from Warren and Reader’s Digest Association, hits shelves this week. According to The Wall Street Journal, “a subscription includes access to a Facebook-like Christian social-media Web site and DVD guides for leading a prayer group.” There is some concern that the magazine will fail because of the tough economic climate, and its narrow Christian focus, but Alyce Alston, president of Reader’s Digest’s Health & Wellness and Home & Garden segments says, "My focus and goal has been on creating products that have huge demand among a Christian audience. If I can do that well, it will monetize itself."
The Age of Bush isn't quite finished: Michigan Representative John Conyers, the chairman of the House Judiciary Committee, issued a subpoena for Karl Rove yesterday, requiring his testimony on February 2 on questions about the 2006 U.S. attorney firings. "Change has come to Washington, and I hope Karl Rove is ready for it," Mr. Conyers said. "After two years of stonewalling, it's time for him to talk." President Obama, meanwhile, is caught between a rock and a hard place. The Wall Street Journal notes that "presidents have a history of guarding the principle of executive privilege, even when it is claimed by a predecessor of a different political stripe." Rove's attorney said he will consult Obama's White House counsel over the new president's position, and "At the end of the day Rove will do what he is told."
Not a week after Star magazine's cover asked why Angelina Jolie and Brad Pitt were hiding their 6-month-old twins Knox and Vivienne, the Brangelina clan shot back with a full tour de force photo op. The stars and all six of their children made a smiling flash-friendly trip through the Narita International Airport in Tokyo earlier today. The photos, which are likely causing reduced productivity among fans, are sure to dispel any what's-wrong-with-the-babies talk that dogged Tom Cruise and Katie Holmes.
Somewhere, Rush Limbaugh is going apoplectic: Barack Obama granted his first official presidential interview last night to an Arabic-language station. Obama told the Saudi-owned Al Arabiya that "Now, my job is to communicate the fact that the United States has a stake in the well-being of the Muslim world, that the language we use has to be a language of respect. I have Muslim members of my family. I have lived in Muslim countries." He went on to criticize phrases like "war on terror." "The language we use matters," he said. "We cannot paint with a broad brush a faith as a consequence of the violence that is done in that faith's name."
Obama’s pick for Treasury, Timothy Geithner—he of the missed Medicare and Social Security tax payments and iffy nanny—has finally been confirmed by a Senate roll call vote, 60-34. Four Democrats joined in the “nay” vote: Senator Russ Feingold of Wisconsin, Senator Robert Byrd of West Virginia, Senator Tom Harkin of Iowa, and Senator Bernie Sanders of Vermont (the last is actually an independent who caucuses with the Democrats). Politico reports Obama went to the Treasury Department and appeared with his newest Cabinet member for his swearing-in.
Them’s fighting words in today’s New York Post: “He’s a liar,” Fredric Dicker writes of Governor David Paterson’s professed ignorance over the source of the leak about Caroline Kennedy’s “potentially embarrassing personal issues.” "I would love to know who is responsible [for the leaks about Kennedy], but at this point, I've been unable to determine that," Paterson said yesterday. Dicker alleges, however, that “the person responsible for the smear was an individual whose identity is well known to the press, whose full-time job is to do the governor's bidding, and who is intelligent enough not to call reporters to damage Kennedy's reputation without approval from the top—and that means Paterson. … The truth is that not only does Paterson know who the source of the leak was, but that Paterson is the only person in a position to have given the information to the leaker.”
President Obama promised more transparency in government, we just didn't know he meant it literally. Vice President Joe Biden's new home at the U.S. Naval Observatory can now clearly be seen on Google Earth, despite being obscured for years while Dick Cheney was in office. The aerial image of the hilltop home displays in perfect clarity, and although Google says the de-pixilation was updated as new imagery became available from third-party suppliers, the timing mysteriously coincided with the new term of the vice president. The site was built in 1893 and has been the home to vice presidents since 1977.
Attention "celebrity stalkers and terrorists": The window to buy an Oscar ticket for $175,000 is quickly closing, as The Academy of Motion Pictures Arts and Scientists is arguing that such sales are illegal and will give unsavory types, such as yourselves, access (we hope you've been saving). Should you get your hands on a ticket, which can be purchased from McMurry Inc., be warned that you will be considered a trespasser, as the tickets are non-transferrable. Also included in the package are a 7-day stay in L.A., hotel accommodations, a sightseeing trip.
President Obama is hoping for a peace settlement in the Middle East, but Israel's next government may not be willing to cooperate: The New York Times reports that in Israel "there appears to have been a shift further to the right, reflecting a feeling among many voters that an even tougher approach may now be required." Recent polls show Benjamin Netanyahu's right-wing Likud party has solidified or increased its lead ahead of the upcoming election, while the nationalist Yisrael Beiteinu has made the biggest gains. Bloomberg reports that in Egypt, meanwhile, President Hosni Mubarak is facing increasing pressure at home for his efforts to broker a ceasefire between Israel and Hamas. "If negotiations fall apart, Egypt's credibility as self-declared regional stabilizer and leader of the Arab world will be damaged."
An early sign that President Obama will make effective use of his bully pulpit: The White House has apparently pressured Citigroup to scrap its plans for a new $50 million corporate jet. Obama administration officials called Citigroup yesterday and told it “to fix it.” Twenty-four hours earlier, Citigroup, which has so far received $45 billion in bailout funds, defended the jet as a smart business deal. At a press conference yesterday, White House Press Secretary Robert Gibbs said, "The president said this during the transition, as it related to the auto companies using private jets: [He] doesn't believe that's the best use of money at this point.”
Just like everything else these days, the Rose Art Museum at Brandeis University is hanging up a "SALE" sign. The University, which faces up to $10 million in debt, will take paintings by Andy Warhol, Jasper Johns, and Roy Lichtenstein off its walls and sell them to the highest bidder. The museum, which holds more than 8,000 pieces, will close this summer.
It looks like you won’t be seeing Bill Kristol on your local soup line anytime soon. A day after The New York Times ended his weekly column, The Washington Post announced that Kristol will resume contributing a monthly column and occasional pieces to its op-ed page, as he did before writing for The Times. At Politico, meanwhile, Michael Calderone floats a list of conservatives who might replace Kristol at the Times: David Frum, Byron York, Megan McArdle, Ross Douthat, Peggy Noonan, and—gulp—Rush Limbaugh.
There seems to be growing consensus that not only will Slumdog Millionaire win the Academy Award for best film, but that it deserves to win it. Dennis Lim at Slate throws some much-needed water on all the hype: “If Slumdog has struck a chord, and it certainly seems to have done so in the West, it is not because the film is some newfangled post-globalization hybrid but precisely because there is nothing new about it. It traffics in some of the oldest stereotypes of the exoticized Other: the streetwise urchin in the teeming Oriental city. (The success of Slumdog has apparently given a boost to the dubious pastime of slum tourism—or "poorism," as it's also known.) And not least for American audiences, it offers the age-old fantasy of class and economic mobility, at a safe remove that for now may be the best way to indulge in it.”
Never underestimate the power of cheap entertainment during an economic catastrophe. Netflix Inc. announced its profit increased 45 percent in the last quarter, a result based on the strength of lower subscription costs and the proliferation of its online video rentals. After the announcement, Netflix shares rose 7.4 percent to $32.38 in after-hours trading, according to MarketWatch. The company's expenses declined in the past year, as the cost to acquire each new subscriber fell to $26.67 from $34.58, and revenue rose to $359.6 million from $302.4 million. Nearly 9.39 million subscribers use the rental service.
There's one morning call that gives new meaning to talking heads. Politico reveals that "every workday for nearly a generation," James Carville, Paul Begala, Rahm Emanuel and George Stephanopoulos have a four-way phone confab. "I refer to it as the 17-year-long conference call," said Emanuel, Obama's new chief of staff, who calls in at 6 a.m. "You can tap into it anytime you want." Politico says "Washington's prevailing political and media interpretation [to the day's news]--at least on the Democratic side--is being hatched on these calls," which are constantly ongoing among the four power players. Carville's wife Mary Matalin said the foursome "talk like they are girls."
Your daily guilt trip: According to The Times of London, researchers are predicting that, if sea ice continues to melt at its current rate, emperor penguins—the adorable Antarctic birds featured in March of the Penguins—could be extinct by the end of the century. The study focused on a single population at Terre Adelie, whose population would decline from 3,000 to about 400 under the current model. Researchers at the Woods Hole Oceanographic Institute based their calculations on models from the International Committee on Climate Change.
We already knew Bono, Angelina, Larry Summers, Lloyd Blankfein, and even David Paterson weren’t going to Davos. But now comes word that Google’s Sergey Brin and Morgan Stanley CEO John Mack will skip the World Economic Forum’s annual event. Add to the list of no-shows Ken Griffin of Citadel Investments, whose fund lost 47 percent in 2008, and a co-chairman last year, Chevron CEO David O’Reilly. Things have gotten so bad at the Swiss resort, Condé Nast Portfolio reports, that the biggest story emerging from Davos is who’s not showing up.
It was all-Blago-all-the-time on television yesterday. How'd the governor's publicity tour go while his trial was elsewhere getting under way? Blagojevich sat down with Diane Sawyer, Larry King, and The View, referred to the plights of Nelson Mandela and Mahatma Gandhi, and blamed his surely imminent ouster on the Illinois legislature's desire to raise taxes by Memorial Day, saying "The fix is in" for his departure. He divulged that he considered Oprah to replace President Obama's Senate seat in Illinois (which was news to her). Blago's former lawyer, meanwhile, said "I never require a client to do what I say, but I do require them to at least listen." In Illinois, State Senator Frank Watson said of his state: "We're the laughingstock of the nation."
Remember back in September, when the Treasury Department set up a $200 billion emergency fund for mortgage giants Fannie Mae and Freddie Mac? Well, Freddie’s already scooped up $13.8 billion of that money and said Jan. 23 it will need $35 billion more. But Fannie had been holding off—until now. The country’s largest source of home-loan money said late Monday it needed between $11 billion and $16 billion to stay afloat in a deteriorating housing market. The request was “much worse” than expected, a fixed-income strategist tells Bloomberg, adding that one or both of the government-sponsored enterprises “may exceed the Treasury’s backstop this year.”
