Barack Obama took the oath of office as the 44th president on Capitol Hill this morning. "What is required of us now is a new era of responsibility—a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task," he said in his inaugural address in front of a crowd of nearly 2 million on the National Mall. After a busy day of festivites, the Obamas will spend their first night in the White House as George and Laura Bush make their return to civilian life in Texas. The Times has posted the full text of Obama's speech.

The new administration got right down to work on their first afternoon in the White House, with 15 Obama officials setting up computers, turning up the heat, and trying out their new office phones. But amid all the housekeeping came a more serious order of business: Chief of Staff Rahm Emanuel signed an order authorized by the new president freezing all new or proposed regulations at all government agencies and departments until the new administration can review them. The order puts the brakes on all the regulations the Bush administration tried to push through in its last days. But Bush can’t be mad: Obama’s taking a page from the former president’s own playbook—he did it to Clinton.

To the strains of Beyoncé singing Etta James’ classic At Last, the Obamas grooved their way through the first presidential dance at the Neighborhood Ball this evening. The two were scheduled to whirl their way through 10 balls on inauguration night, with the last at 2:45 a.m. Drawing the most attention—and kudos from Barack—was Michelle’s inaugural ball gown, a one-shoulder flowing white Jason Wu creation. The president was slightly more rumpled in a tuxedo, with his white bowtie slightly askew.

Though the Obamas watched the start of this afternoon’s inaugural parade from the steps of the Capitol and then set off in their presidential motorcade to the White House, they weren’t about to spend the whole parade in their armored limo: They stepped out on Pennsylvania Avenue on the section that runs past the National Archives and the Navy Memorial and walked for about eight minutes. With the temperature hovering around 28 degrees (16 with wind chill), the president donned a burgundy scarf, black overcoat, and black gloves. Lining the 1.7-mile route were police, troops, and Secret Service agents, all part of the tightest security for an official event in the city’s history, with 28,000 law enforcement and military personnel deployed.

The Obama Cabinet officially gained seven new members this afternoon, with the Senate approving the (controversy-free) nominations of Energy Secretary Steven Chu, Education Secretary Arne Duncan, Homeland Security Secretary Janet Napolitano, Interior Secretary Ken Salazar, Veterans Affairs Secretary Eric Shinseki, and Agriculture Secretary Tom Vilsack. Peter Orszag, the new director of the Office of Management and Budget, was also approved as part of the single voice vote. But Secretary of State-designate Hillary Clinton’s nomination was held up over an objection by Texas Republican Sen. John Cornyn. She’ll be forced to undergo a roll call vote tomorrow.

The pomp and circumstance of the inaugural celebrations in the capital failed to lift the gloom on Wall Street this afternoon, as concern about the worsening global recession overcame any joy for Obama. The Dow had its worst Inauguration Day drop in history, plunging 332.13 points to close at 7,949.09, and the S&P 500 was down 5.3 percent, to 805.22—it’s off to its worst ever start to a year. Big losers were State Street Corp., down 59 percent, and Wells Fargo and Bank of America, both slumping more than 23 percent. Predicting US financial losses from the current crisis will reach $3.6 trillion, New York University professor and financial Nostradamus Nouriel Roubini summed up the grim mood from Dubai: “The problems of Citi, Bank of America, and others suggest the system is bankrupt.”

The Great Recession’s death toll is mounting: The latest victim is Irish financier Patrick Rocca, who shot himself this week as the prospect of losing his property empire loomed. Rocca, 41, was “a poster boy for Ireland’s Celtic tiger economy,” The Times of London reports, who “lent Bill Clinton his helicopter whenever he was in Ireland for a round of golf and rubbed shoulders with Tony Blair at gala dinners.” But neighbors saw the tycoon Monday wandering around the grounds of his luxury home in pyjamas; when his wife left to pick up the children from school later that day, he killed himself. Rocca, whose death has rocked Dublin society, had more than 20 million euros invested in Anglo Irish, which the Irish government is nationalizing.

en. Ted Kennedy was taken out of President Barack Obama's inaugural luncheon on a stretcher this afternoon after having a seizure. The long-serving senator from Massachusetts, 76, has brain cancer and was rushed to a nearby hospital, but hours later was reported to be alert, laughing, and answering questions. Sen. Robert Byrd, 91, who earlier was reported to have been removed in his wheelchair from the same Capitol Hill lunch after having trouble eating, now says he did leave the event early but that his health was not the reason.

How did the world react to Obama’s inauguration? In Istanbul and Costa Rica, at least, it was business as usual. But there were cheers in Berlin as Bush’s helicopter took off. Dubliners drank away their economic worries and toasted “O’Bama,” while the president’s former classmates and teachers gathered in Jakarta to wish “Barry” well. Londoners hailed Obama’s inaugural shout-out to non-believers, and a Ghana DJ celebrated a black man getting “into the black house.” And in Beijing, there were fireworks. Just not for Obama.

When Securities and Exchange Commission chairman Christopher Cox resigned his post effective noon Tuesday, he ended a beleaguered 3 1/2-year tenure marred by criticism from lawmakers, investors, and his own inspector general over the SEC’s failure to notice the Madoff Ponzi scheme or avert the collapses of Bear Stearns and Lehman Brothers. Bloomberg has an in depth look at the SEC reign of the 56-year-old Cox—under whom the SEC  in 2008 extracted $1 billion in fines and illegal profits from companies and individuals, down from $1.6 billion in 2007 and more than $3 billion each of the three years before that.

Though most Americans have expressed their disapproval for years, the Bushes have called 1600 Pennsylvania Avenue their home until this morning. In the final step of transition, George and Laura Bush boarded a helicopter bound for a homecoming in Midland, Texas. President Obama and his wife Michelle kept with tradition and gave them a proper send-off from alongside the Capitol. Earlier in the day, as Bush left the White House for the last time, he blew a kiss from his presidential motorcade.

Putting a memorable end to a memorable ceremony, the Rev. Joseph Lowery thanked God for letting Obama's message of "Yes, we can" inspire the nation. Lowery, 87, founded the Southern Christian Leadership Council, worked with Martin Luther King, organized the Montgomery bus boycott and participated in the Selma march. In his benediction, Lowery prayed for an end to "exploitation" and "favoritism toward the rich."

Moments after taking office, President Obama made a factual error in his inaugural speech—and the Associated Press pounced. "It didn't take long for Barack Obama to make the first mistake of his presidency," the wire service wrote. Obama was wrong when he told the crowd that 44 Americans have taken the presidential oath. "While there have been 44 presidential administrations, there have been only 43 presidents," the AP corrected. "Grover Cleveland served two nonconsecutive terms in the late 1800s." Obama wasn't the only one to trip under pressure. Chief Justice John Roberts mixed the order of the oath of office as he was swearing-in the new president. Roberts then seemed to confuse Obama. ABC News has a full transcript of the exchange.

While Obama pledged change, fashion experts are saying that Michelle Obama's dress symbolized it. "Since the Elizabethan Era, shades of yellow have symbolized renewal and hope," writes Anne Bratskeir in Newsday. Cuban-American designer Isabel Toledo was chosen over bigger names to outfit the new first lady on the big day. Perhaps Michelle's pick of designer speaks to her husband's diplomatic goal of improving relations with Cuba. Malia and Sasha Obama, meanwhile, stayed warm in royal blue and pink coats, respectively, from J. Crew's children's line.

After a stirring inaugural speech in which President Obama repeatedly called on Americans to assume a greater share of responsibility for their nation's well being, Elizabeth Alexander followed with an inaugural poem along similar themes, invoking the difficult tasks of generations past and the small triumphs of working individuals. "Say it plain, that many have died for this day," she read. "Sing the names of the dead who brought us here, who laid the train tracks, raised the bridges, picked the cotton and the lettuce, built brick by brick the glittering edifices they would then keep clean and work inside of. Praise song for struggle; praise song for the day. Praise song for every hand-lettered sign; The figuring it out at kitchen tables."

That was it? After weeks of buildup in which progressive groups took President Obama to task for selecting Rick Warren to deliver the inaugural invocation, the pastor delivered an apolitical message celebrating the civil rights victory embodied by the day and acknowledging the challenges of our time. "Today we celebrate the hinge point of history in the inauguration of the first African-American president of the United States, a land of unequal possibility where the son of an African immigrant can rise to the highest leadership," Warren said. "Dr. King and his witnesses are shouting in heaven." While Warren kept his speech nonpartisan, he did not keep it nondenominational as he invoked Jesus Christ directly by name rather than employing more broadly inclusive language.

America has a new president, and with him, a brand new White House web presence. As President Obama put his hand on Lincoln's bible, his administration relaunched WhiteHouse.gov with a new group blog spearheaded by Macon Phillips, the Director of New Media for the White House. "Just like your new government, WhiteHouse.gov and the rest of the administration's online programs will put citizens first," he wrote. There's that not much to see yet, but there's a slideshow of all 44 presidents. Obama's story, his bio says, "is the American story."

Time Warner Inc's Warner Bros. Entertainment announced today that it will cut 800 jobs—or 10 percent of its workforce—in the coming weeks. The company has taken a hit in the bad economy and is slimming down to cut costs. In an email to worldwide staff, Chairman and CEO Barry Meyer announced that the company is "very sad" about the cuts.

Former presidents Jimmy Carter and Bill Clinton ignored each other during the inauguration procedure of friendly hand-shakes and small talk. "The two men did not appear to acknowledge each others presence at all," ABC News reported. "A total snub." Why the bad blood? Clinton was apparently never a fan of Carter's presidency and Carter was not pleased about Clinton's antics with Monica Lewinsky. During the recent Oval Office meeting of living ex-presidents, Carter was noticeably apart from the others.

Congressmen who got used to George Bush’s cold shoulder can warm up to Barack Obama.: “Obama has signaled he will be far more involved with the legislative process than his predecessor and will give lawmakers of both parties more sway in shaping the product from the start,” writes The Wall Street Journal. Obama’s pre-inaugural lobbying for the TARP funds provides an early indicator of how he may operate. Obama personally worked the phones, calling up to a dozen senators, and he dispatched aides like Larry Summers, David Axelrod, and Jason Furman to meetings. Obama also never offered his own public stimulus plan, suggesting outlines, but allowing Congress to hammer out the details of its $825 billion package. “The approach marks a departure from George W. Bush's legislative strategies. On major domestic policy initiatives, such as his 2001 and 2003 tax cuts as well as his Social Security partial privatization plan, Mr. Bush produced detailed proposals upfront.”

If only the rest of government were as efficient as the White House moving team. The removal of the Bushes' things and the arrival of the Obama’s “is over and done with in a matter of hours, without a single moving man setting foot inside the Executive Mansion.” The 93-member White House residence staff is in charge. “It’s controlled chaos,” said Bill Clinton’s former social secretary. “They have about four to five hours to completely unpack, put everything away in the closets, put the family pictures up and to really make the house the Obamas’ home by the time they come in from the parade. It’s really quite an extraordinary switchover.”

Obamania has so overtaken Washington D.C. that even the Bushies apparently couldn’t find a room in the city: They threw their farewell party in Glen Echo Park, Maryland. Dubbed “Crossing the Finish Line,” the party was thrown by White House Chief of Staff Joshua Bolten and his predecessor Andrew Card. Attendees were instructed to wear coats, as the party would be chilly, and Card apparently had difficulty securing a band. Karl Rove, Dana Perino, Condi Rice, and Alberto Gonzales were all spotted. George and Laura Bush showed up too, for a speech. "This is objectively the finest group of people ever to serve our country," the outgoing president said. "Not to serve me, not to serve the Republican Party, but the United States of America."

You have to give Dick Cheney credit: eight years ago his frail heart was a major question mark, and yet he leaves the White House in hearty enough shape even if a hunting buddy or two is a little worse for wear. Well, almost—the Vice President wrenched his back while moving out and will attend Obama's inauguration in a wheelchair. In a spot of good news for Cheney, however, a federal judge knocked down a lawsuit brought on by historians that charged that the notoriously secretive VP was conspiring to keep his records out of the National Archives. The plaintiffs complain that without a government injunction, Cheney's office will ignore laws regarding preservation of various records associated with the administration. "Why did he fight this order so much if he did not have the intent to leave with these papers? I'm guessing that a lot of it will not be there," a professor at the University of Wisconsin Law School, Stanley I. Kutler, said.

New York Governor David Paterson is being coy. "I can say I don't know who the next senator for New York is right now. I would swear to it," he said at a press conference yesterday. “I would figure by this weekend we would come up with a candidate," he said. "I have narrowed the field but don't seem to stay with the same pick for a period of time. I've tried . . . different scenarios." Yesterday, several contenders told the New York Post that Paterson is “certain” to choose Caroline Kennedy.

When Barack Obama is sworn in today, he may be causing a change where he leasts expects it: in Hollywood. Industry insiders are already foreseeing a shift in values in showbiz, where African-American films have traditionally been lower-budget and geared towards "black-only" audiences. "But will America's embrace of the son of a white mother and a black father inspire Hollywood to be less rigid about dividing the world into convenient black and white demographics?" Patrick Goldstein asked in the Los Angeles Times. "If Hollywood really wants to show some respect for the Obama revolution, it's time for the movie business to break some ground of its own."

Barack Obama had little to say about the war in Gaza, and not much to add to the terrorist attacks in Mumbai, either, instead choosing to defer to President Bush on all matters abroad since the election. That's all going to change now, and the world is readying itself for a jolting set of new foreign policy initiatives after eight years in which the country's standing around the globe has plummeted. According to The Washington Post, Obama will appoint former Senator George Mitchell as his Middle East envoy as one of his first actions as president, making the Arab-Israeli conflict that he has kept silent about for so long a top priority. Obama began his primary campaign largely as the anti-Iraq War candidate and tomorrow the new president will meet with top military officials to give them new orders to begin implementing the 16-month withdrawal plan he argued for during the election.

A new kind of spangled star was in D.C. this weekend--those from Hollywood, who flocked to the nation's capitol to witness history, sit on panels and host events throughout the city. "We were greeted by a chorus of courage," actor/producer Ashton Kutcher said of his reception. Kutcher and wife Demi Moore presented a movie she directed, The Presidential Pledge, before a large crowd at a local high school. Some celebrities who catalyzed the get-out-the-vote efforts think they are partly responsible for today's celebration. "I think it is very important to give us some credit," Sean Combs said onstage at a Howard University symposium with Queen Latifah and Ludacris. "We have stepped up and will continue to step up."

Could this be more exciting than the inauguration itself? The Obama girls fulfilled every tween’s fantasy on Monday night, joining the Jonas Brothers on stage at the first-ever Inaugural Kids Concert for a little celebratory dancing. Malia, 10, and Sasha, 7—attending with their mom; Jill Biden and her grandkids; and hundreds of screaming fans—also met a slew of other stars. Politico reports Malia played it cool when it came time to meet Corbin Bleu of High School Musical, though Michelle “played like the fawning fan, shaking his hand like a star-struck teen.” Jill Biden later took to the stage with her grandchildren, telling the crowd: “Military families are true American heroes. Thank you all for what you do for our country every day.”

Barack Obama may be stuck with an ugly political battle in his first month, as Democrats warn that a second bailout bill for banks and auto companies could be needed within weeks. The first $700 billion package is already running low and banks have fallen into a second crisis period with giants like Citigroup and Bank of America already floundering despite receiving billions to prop them up earlier. Britain has already expanded their bailout by $147 billion recently on the news. Begging Congress for more funds would be an unwelcome distraction for Obama as he tries to rally support for his ambitious stimulus package, currently priced at $825 billion.

How’s this for a shift? Bush, at noon Tuesday, will go from most powerful man in the world to simple Texas rancher. He’ll still get taxpayer-funded motorcades for the next 10 years, but there’ll be no more Air Force One. On his last morning as president, he’lll welcome the Obamas and Bidens to the White House for coffee; then, around 11 a.m., the Bushes and Obamas will ride together to the Capitol for the inauguration ceremony. After Obama’s big address, the Obamas will accompany the Bushes to the east steps of the Capitol for the outgoing leader’s final ride on Marine One, which he’ll take to Andrews Air Force Base for a departure ceremony with staff. Finally it’s on to Crawford on the plane formerly known as Air Force One, with a stop first in his hometown, Midland, for a welcome home event.

In a deal Russia and Ukraine say will make gas cutoffs to European customers a thing of the past, the two countries have signed a 10-year agreement to restore the flow of Russian gas to Europe. The signing brought no joy to the European Union, however, which depends on Russia for 20 percent of its natural gas. It testily called for a delivery timetable after a two-week standoff between Russia and Ukraine over how much the latter should pay for the gas that flows from Russia. The crisis couldn’t have come for a worse time for the two Eastern European neighbors, both of which are showing “fresh signs of buckling under the strain of the financial crisis,” The Wall Street Journal reports.

Oops! Joe Biden is known as a gaffe machine, but it appears the foible runs in the family. Jill Biden, at a taping of Oprah with her husband today, said the vice president-elect was given his pick of plum roles in the Obama administration: vice president or secretary of state. “Joe had the choice of being secretary of state or vice president,” she said, to audible shushing from Joe. “I said, ‘Joe, if you are secretary of state, you will be away, I’ll never see you. We will see you at a state dinner once in a while.' But I said if you are vice president, the entire family, because they worked so hard for the election, they can be involved.” Over to you, Hillary.