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Following opening remarks from Patrick Leahy, senators launched into the question-and-answer portion of Sonia Sotomayor's Senate Judiciary Committee hearings. "The process of judging is the process of keeping an open mind," Sotomayor responded. She continued that unlike what she learned in law school, "the law is not legal theory—it's facts." Senate Judiciary Chairman Patrick Leahy then asked her to explain the infamous "wise Latina" comment. "Here's your chance," he said to Sotomayor, "you tell us what's going on here, Judge." Sotomayor responded: "Thank you for giving me an opportunity to explain my remarks. No words I have ever spoken or written have received so much attention." She continued: "I want to state upfront, unequivocally, and without doubt I do not believe that any ethnic, racial or gender group has an advantage from sound judging." She said she was "trying to inspire" students "to believe that their life experiences would enrich the legal system. I do believe that every person has an equal opportunity to be a good and wise judge, regardless of their background or life experiences.”
After much debate and delay, House Democratic leaders have finally unveiled the health-care-reform bill. Despite the inclusion of a government-run insurance option, a surtax on the wealthy, and rebates that will cost drug companies more than $50 billion, the bill lacked a price tag. Democrats assure that they will be able to foot the rumored $1 trillion bill, with lawmakers making the decision to tax the wealthy up to 5.4 percent. President Obama approved the bill, saying in a statement, “The House proposal will begin the process of fixing what’s broken about our health-care system, reducing costs for all, building on what works, and covering an estimated 97 percent of all Americans. And by emphasizing prevention and wellness, it will also help improve the quality of health care for every American.”
Community-college graduation rates are a key component in bolstering the economy, President Obama said Tuesday in a speech in which he also outlined plans to retrain unemployed workers and safeguard the U.S. from global job competition. As part a $12 billion plan, Obama’s proposals would budget $9 billion to increase student success, $2.5 billion for building and technology upgrades, and $500 million for online-course grants, all in an effort to help five million more Americans earn degrees and certificates by 2020. Obama’s plan depends on whether Congress will replace legislation on a subsidized student loan program with loans through the Education Department, which the Congressional Budget Office estimated would save $87 billion over the next decade. "The financial strain that our colleges are experiencing cannot be overemphasized," said the president of the American Association of Community Colleges. "New federal assistance will help our colleges weather the current financial storm but, just as importantly, position community colleges to help sustain the nation's long-term prosperity."
Do reports of Dick Cheney's alleged assassination squads remind you of Munich? That’s because they should: Newsweek reports that the plan was “to hunt down and kill terrorists using commando teams similar to those deployed by Israel after the 1972 Munich Olympic massacre, according to a former senior US official.” Two sources also tell Newsweek that Dick Cheney was not involved in creating or monitoring the operation, which never got off the ground. CIA Director Leon Panetta said he ended the program last June when he first became aware of it, but former-director George Tenet first put it on hold in 2004 after deciding it “posed an unacceptable risk of failure or exposure,” according to former intelligence officials. The CIA never totally scrapped the plan, thinking it might become necessary at some point. They didn’t inform Congress of the plan because it wasn’t operational, not because the vice president told them not to, according to two former officials. Other officials, however, confirmed the account that Cheney was involved in the program and its secrecy.
The national deficit may be soaring, but that hasn't stopped Goldman Sachs from reporting its highest quarterly profit: its net income rose to $3.44 billion, or $4.93 a share, up from last year's $2.05 billion, or $4.58 a share, the company reported on Tuesday. The earnings exceeded the expectations of 22 analysts surveyed by Bloomberg. Revenue at Goldman this year totaled $13.76 billion in the second quarter—up from $9.42 billion last year.
She may have resigned as governor, but nothing else has changed when it comes to Sarah Palin’s political agenda. In an op-ed for The Washington Post, Palin circumvents the national media, who “would rather focus on the personality-driven political gossip,” to rail on President Obama’s cap-and-trade energy plan, which, she writes, would “inflict permanent damage” on America. Palin writes that major job losses both in the energy sector and other industries will ensue from the plan as costs of business rise, and that America should depend on Alaska and other energy-rich states rather than foreign oil. “The answer doesn’t lie in making energy scarcer and more expensive!” Palin writes, adding that we need to “tap the resources that God created right underfoot on American soil.”
Abstinence be damned: Teens in Britain are getting one often overlooked bit of advice—that sex can be fun. The National Health Service is recommending teachers stress the healthy and pleasurable sides of sex rather than only harping on mechanics and deterrence, and have distributed a pamphlet titled Pleasure. Aside from boasting a section on masturbation entitled “an orgasm a day,” the pamphlet (which is given to teachers, not students) promotes sexual awareness and responsibility on an emotional level and is being touted by professionals as the cure for out-of-date sex education. The initiative is not without its dissidents: “I think this is medically wrong and emotionally wrong and will increase teenage pregnancy and impact negatively on the formation of a long-term loving relationship,” said the headmaster of one college. But proponents acknowledged the failure of the current system to teach adequate sex ed and want teachers to be given a new way to discuss sex with students.
The wave of violence in Mexico is becoming even more gruesome. Twelve bodies of federal police officers were found on the side of a remote highway in Michoacán, Mexico, with signs of torture. The ambushed officers were apparently killed execution style, with single shots to the head. The killings are the latest in violence spurred by President Felipe Calderón's declaration of war on the drug cartels in 2006, which has since led to the deaths of almost 10,000 people. In the past month, 13 other bodies have been found along the same stretch of highway, and 16 police officers were wounded over the weekend in Michoacán, with at least 32 people killed in the past few days.
Life often imitates art—but sometimes art can ruin lives. Robert De Niro’s estate lost more than $1 million after abstract Expressionist paintings by his late father sold without permission as part of a scam by a New York gallery. Art dealer Lawrence Salander was indicted on additional charges for stealing $5 million from several estates as part of an $88 million art investment scam (for which he was arrested in March). Former tennis champion John McEnroe and Bank of America were duped in the original scam. The Lachaise Foundation and the estate of sculptor Elie Nadelman were also victims.
Say it ain’t so! Sex and the City actress and consummate cougar Kim Cattrall has split from her longtime boyfriend, chef Alan Wyse. Apparently channeling her on-camera alter ego, 52-year-old Cattrall dated the 32-year-old for five years before breaking things off in Samantha-and-Smith fashion. "They remain friends," said publicist Jill Fritzo, while a rep for the actress told E! News the pair parted ways “a while ago.” What’s next for Cattrall? Maybe she'll find her next beau while filming the second Sex and the City movie, slated to premiere in May 2010.
We’re pretty sure this won’t work: RNC Chairman Michael Steele said that he’ll woo minorities to the GOP with “fried chicken and potato salad.” Steele made the remark after someone interrupted his answer to a serious question about how he will diversify the GOP by shouting, “I’ll bring the collard greens.” Perhaps this is a minority-recruitment strategy that Young Republican Chairwoman Audra Shay can get behind?
A Southwest Airlines jet made an emergency landing in West Virginia Monday night after a football-sized hole opened in the fuselage. The 737 aircraft was en route from Nashville to Baltimore when the pilot reported a hole at the back of the 137-seat plane. The cabin quickly depressurized, and oxygen masks were activated. After about 30 minutes, the aircraft landed safely in Charleston, where police were waiting. Said one passenger: "We heard a loud pop, and one of the panels [on the ceiling] was sucked up tight against the ceiling. You could definitely tell there was a hole there." The incident caused Southwest to call for an overnight inspection of its entire fleet of Boeing 737-300s.
Debbie Rowe might have been paid to go away—again. Michael Jackson’s ex-wife and the mother of his eldest children has accepted a $4 million payoff to forfeit parental rights back to the family, The New York Post reported this morning. This wasn’t the first time Rowe’s accepted money from the Jacksons to go away, either: Right after the birth of Prince Michael, Rowe reportedly accepted $8 million—plus $900,000 annually—to let Jackson raise the children. And when Jackson was accused of molestation in 2001, Rowe reclaimed her parental rights—only to immediately forfeit them in exchange for another $4 million. Now, after his death, she’s doing it again: forfeiting her restored rights to Katherine Jackson for another $4 million. Said a source close to the Jacksons: “It’s one final payday. They felt it was like a ransom-type thing ... [Rowe] jumped back into the picture because she wanted money.” But now she is denying a payoff took place and Rowe's lawyer is demanding the Post print a retraction.
Get ready for some mortal-on-immortal romance. Natalie Portman is the newest star to sign onto the film adaptation of Thor, an early Marvel comic featuring the adventures of the Norse god of thunder. Kenneth Branagh is set to direct and the film will also star newcomer Chris Hemsworth as Thor. Portman plays the god's nurse and love interest, Jane Foster, who gets involved in a love triangle with Thor and his human alter-ego Donald Blake, before briefly becoming a god herself. Marvel Studios says the role will be updated for the film, so surprises might be in store even for devoted Thor fans.
A week after Google hit Microsoft by announcing it plans to launch an online operating system, Microsoft is throwing a counterpunch: It announced on Monday that it will launch a free, online version of Microsoft Office next year. The Financial Times describes the move, targeting Google Docs, as “one of the most radical steps yet by Microsoft.” The “lightweight” version of the software will allow users to edit documents and Powerpoint presentations, and will have more features than Google Docs.
A tragic story is getting even more complicated: A fourth suspect was arrested Monday in the murder of a Florida couple who had 16 children, many of whom had special needs and were adopted. Police say at least six people were involved in the crime and that there were "other motives" than just robbery. Surveillance video from the couple's home shows five people wearing masks and dressed in black entering the house from two entrances. Nine of the children were in the home when the murders took place, and one escaped to a neighbor's house to seek help. The men were only at the home for 10 minutes, according to the tapes, and the crime was "very well-planned and methodical," according to police.
Honduran President Manuel Zelaya said he is willing to resort to bloodshed to retake his country if his rival Roberto Micheletti doesn't step down within the week. "Let me come back—me with the people and you with your bayonets," he said. "And instead of shooting innocent kids, shoot me." When Zelaya attempted to return to Honduras on July 5, a week after being ousted at gunpoint, the army blocked the airport's tarmac and a teenager died after shots were fired into a crowd of protesters. Honduras has been kicked out of the OAS because of the coup, and Micheletti has yet to be recognized by any country as Honduras' leader. Negotiations are taking place in Costa Rica, but Zelaya says Micheletti is sabotaging the talks by using the time to consolidate his power.
While benefiting from a $10 billion government payment, Goldman Sachs executives sold nearly $700 million of stock after Lehman Brohters collapsed last September. During a comparable period a year earlier, Goldman partners sold less than $450 million in stock. The sell-off comes at an awkward time for the leading financial firm―executives were cashing in right as the U.S. government was providing assistance to the financial sector. The bank was expected to report strong second-quarter earnings Tuesday based on rebounding trading profits.
Well, that was fast. Steven Rattner, President Obama's chief adviser on the car industry, is stepping down from his position five months after it was revealed that his firm paid middlemen in New York to help win state pension business. The former New York Times reporter and major Democratic Party contributor had been responsible for overseeing the restructuring of GM and Chrysler, and just successfully steered GM through bankruptcy court, but came under fire for the dealings of his Wall Street firm, Quadrangle. No mention of New York State Attorney General Andrew Cuomo's investigation into Quadrangle was made in the announcement of Rattner's resignation. Ron Bloom, a former official with the United Steelworkers union, will replace Rattner at the head of Obama's auto task force.
What's a chief diplomat from New York supposed to do? Michael Bloomberg said Hillary Clinton double-crossed New York City by deciding that foreign diplomats should be exempt from certain property taxes, costing the city $260 million. "It's totally unfair," the mayor said. Clinton's former colleague Senator Chuck Schumer also expressed dismay: "We're going to find a way to make sure that these embassies pay and that New York is made whole." The State Department said it is making the change because other countries have threatened to change property taxes on American property abroad. Adding insult to injury, Bloomberg says the State Department is late on paying the city $66 million for police security at United Nations missions.
Hillary Clinton is ready for her moment in the spotlight. Her aides say that despite keeping a low profile in the media this year, the Secretary of State is ready to articulate her own policy agenda, and will do so in a high-profile speech on Wednesday at the Council on Foreign Relations. Clinton’s speech is expected to outline her foreign-policy strategy, and explain some of the things she’s already done this year, while relying on themes from her life as first lady and U.S. senator. It will be a “framing speech” about how the nation’s actions this year fit into a larger foreign-policy strategy, and will likely echo a recent town hall meeting, when she said: “We are prioritizing development along with diplomacy as part of our global agenda.”
President Obama has put the Senate Finance Committee on notice: “Obama told Sen. Max Baucus he wants [health care] legislation ready by week's end in the Finance Committee that Baucus chairs,” according to the Associated Press. The deadline underscores Obama’s determination to have health care legislation before Congress’s August recess. The House, meanwhile, is expected to introduce legislation on Tuesday that will prohibit insurance companies from denying coverage to or charging more from individuals with pre-existing conditions.
As some retail sales are showing signs of hope, American family-run businesses are really feeling the crunch. According to the Bureau of Labor Statistics, businesses with 19 employees or less—nearly all of them family run—lost 757,000 jobs from the second quarter of 2007 through the third quarter of 2008. The New York Times reports that more American families are shuttering businesses that have been the family for generations, and are being forced to lay off relatives. In the words of Scott Peterson, whose business maintaining flag polls has been in the family since 1926, "We're losing, other than our own physical bodies, everything."
The threat hasn't abated: The World Health Organization Tuesday gave the green light to drug makers to start manufacturing vaccines for the H1N1 flu, which will go to doctors, nurses, and other technicians first. Calling the illness "unstoppable," the WHO is pressuring all countries to administer vaccinations—as well as to continue vaccinating against seasonal flu, which kills anywhere between 250,000 and 500,000 people globally per year. Countries are asked to decide who gets priority after doctors, but new studies may help make the decision as the virus is found to affect the younger population and the severely obese. About nine out of 10 patients treated for the flu in an intensive care unit were obese, and had unusual symptoms such as blood clots in their lungs, making obesity a risk factor for severe reaction to the strain. Another study found that the blood of people born before 1920 carries the antibodies needed to fight off the 1918 flu strain (of the 1918 pandemic), adding a level of immunity to the swine flu, a distant cousin.
Welcome, prisoner no. 61727-054. Ponzi-schemer Bernard Madoff reached the federal prison in Butner, North Carolina Tuesday, his home for the foreseeable future. The 71-year-old, sentenced to 150 years, has a projected release date of November 14, 2139, pending good behavior. The prison is known for its hospitable facility. The Butner Federal Correctional Complex is located about 45 miles northwest of Raleigh. Others serving time there include Adelphia Communications founder John Rigas and his son Timothy, both convicted of securities fraud.
A sexual affair isn’t quite the liability it used to be: Senator John Ensign of Nevada told the Las Vegas Sun that he plans to seek reelection in 2012 despite his having had an affair with a staffer at his office and reports that his parents’ paid off his mistress’s family. “I fully plan on running for reelection,” Ensign said on Monday. “I’m going to work to earn their respect back.” Ensign says he has received calls and emails from Nevada and Washington encouraging him to run for reelection.
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