A truly awful day on Wall Street erased any memory of yesterday’s rally, as indexes across the board dropped 4 percent. The Dow Jones Industrial Average slid 281.40 points, or 4.09 percent, to close at 6,594.44—its lowest since April 15, 1997—while the S&P 500 lost 4.25 percent and the Nasdaq 4 percent. Banks led the race to the bottom, with Citigroup dipping below $1 a share for the first time ever before closing at $1.02, and Moody’s put out a warning on Wells Fargo and JPMorgan Chase. “The banks are a disaster,” one trader told The Wall Street Journal. GM also fell under $2 a share after auditors warned of a possible bankruptcy.

Looks like Sanjay Gupta is staying on CNN, after all: The medical correspondent has taken his name out of the running for surgeon general. CNN reports he’s “opting to devote time to his reporting and his medical career.” Gupta’s lack of experience or training in public health and history of industry ties had been called into question after his name first surfaced as Obama’s top choice for the Cabinet post. The doctor is discussing his decision tonight on Larry King. So who will be surgeon general? A petition is circulating on behalf of Medscape General Medicine editor George Lundberg, M.D.

President Obama sought to seize the advantage in the decades-long fight over health care Thursday at a White House summit on the issue. With small discussions planned for the 120 participants, the gathering was aimed at providing momentum for his planned restructuring of the nation's health care system. "I guess we could wait another few years, as families in this country have waited for quite some time for somebody to step forward and take control and bring down health care costs," spokesman Robert Gibbs said. "But the president has decided that instead of waiting as has been done before, he's going to step forward and try to do that, starting now." With that in mind, Obama's budget included a "down payment" of $634 billion toward health care—just part of the $1 trillion-plus likely to be needed. The summit included a report about health care compiled from more than 30,000 participants nationwide.

It’s time to dust off Air Force One: The president and first lady will make their first official visit to Europe at the end of the month. The March 31-April 5 trip will focus on the global financial crisis and security issues, White House press secretary Robert Gibbs says. First up is a stop in London for the Group of 20 summit on April 2; next, the first couple travels to Baden-Baden and Kehl, Germany, and later Strasbourg, France, for a NATO summit April 3-4. The trip wraps up April 5 with an EU-US summit in Prague.

Treasury Secretary Tim Geithner’s staffing problems just got worse: His chosen chief deputy, former Securities and Exchange Commission member Annette Nazareth, has taken herself out of the running. The not yet nominated Nazareth, 53, was frustrated at her drawn-out selection process and concerned that she would face a Senate grilling over her SEC tenure, Bloomberg reports. (She helped design the oversight regime that failed to catch Wall Street massive risk taking.) Her withdrawal couldn’t have come at a worse time for Geithner, who has no confirmed deputy or undersecretaries to help him deal with the global financial crisis.

Might the RNC’s first black chairman not make it even two months in office? From the swarm of recent whisperings that the Republican Party is unhappy with Steele emerges the first actual call for his resignation: According to The Hill, “In an e-mail to fellow RNC members obtained by The Hill, Dr. Ada Fisher, North Carolina's national committeewoman, said Steele is ‘eroding confidence’ in the GOP and that members of his transition team should encourage him to step aside.” Fisher, one of the three black members of the RNC, sent it to Steele’s personal email and wrote, “"I don't want to hear anymore [sic] language trying to be cool about the bling in the stimulus package or appealing to D.L. Hughley and blacks in a way that isn't going to win us any votes and makes us frankly appear to many blacks as quite foolish.”

Michelle Obama fans, take note: The first lady sat down with talk show queen Oprah Winfrey at the White House a few weeks ago, and the interview is airing tomorrow. Policy, Barack, style tips, and Portuguese water dogs will likely be part of the discussion. But strangely, Michelle doesn’t get a full hour with The Big O: She’ll have to share the show with Tyler Perry and Winfrey’s new cocker spaniel. Tune in at 4 p.m. Eastern time.

In today's economy, even bad news is greeted with relief that it's not worse. The number of new jobless claims dipped to 639,000 from 670,000 last week (the most since 1982) and an expectation of 650,000. Still, that's another 639,000 filing for unemployment benefits. "The number of people claiming benefits for more than a week fell slightly to 5.1 million from 5.12 million, after rising to record-highs for five straight weeks," the Associated Press reports. Factoring in the 1.4 million also receiving extended benefits and the true number on "benefit rolls" is 6.5 million, way up from last year's 2.8 million.

Uh oh: According to the Associated Press, “General Motors Corp.'s auditors have raised ‘substantial doubt’ about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan.” GM faces a March 31 deadline to have signed agreements with debt holders and the United Auto Workers. According to an auditors’ report, "The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern." In pre-market trading, GM’s share price fell 18 percent to $1.80.

Singer Chris Brown, 19, was charged with two felony counts today in LA related to the alleged assault against his girlfriend, singer Rihanna, 21, on the eve of the Grammy Awards last month. He faces up to five years in prison on the charges of felony assault and making a criminal threat. According to a police report leaked earlier today, Brown was riled after Rihanna read a text message to him from another woman. "He allegedly tried to push her out of [his] Lamborghini and hit her head against the passenger window," Us reports. "He then punched her while still driving; blood filled Rihanna's mouth...Brown allegedly told Rihanna, 'I'm going to beat the ---- out of you when we get home.'" He then threatened to kill her and beat her to the point where she nearly lost consciousness.

James Otis, a Los Angeles-based film maker and alleged follower of the famously ascetic Gandhi, put the Indian leader's glasses, sandals, and pocketwatch up for auction today, despite the Indian government's attempt to block the sale, The Times of London reports. Gandhi's possessions went on the block in New York with an estimated reserve price of $20,000 to $30,000, although the items fetched much more: $1.8 million. Otis, who is working on a four-hour Gandhi documentary with Martin Sheen and Gandhi historian Lester Kurtz, was reportedly flying to New York to meet with Indian diplomats, but the auction went ahead anyway. Indian businessman Vijay Mallya, the country's seventh-richest man, was reported to be the winning bidder; he says he plans to return the items to his homeland.

If L. Paul Bremer had treated plans for post-invasion Iraq with as much care as he reserves for his oil paintings, the world might be a better place. “I’m sort of a realist school, I guess you would say,” says Bremer, who headed the Coalition Provisional Authority immediately after the toppling of Saddam Hussein’s government in 2003, of his artwork. Six years ago, Bremer helped unleash an insurgency when he unilaterally dissolved the Iraqi army. Now he is studiously training to be an oil painter. “It’s difficult,” he says of his new work, “because I have to develop the skills that are not necessarily there, as far as I can tell.” The humbled diplomat is selling his images of barns, snowy fields, and more barns for up to $450 a pop.

Michael Viner, head of Phoenix Books, the publishing house that just paid six figures for Rod Blagojevich’s memoirs, fancies himself a public servant. Far from just monetarily rewarding the impeached Illinois governor for the allegedly corrupt practices of his administration, Phoenix Books is, according to Viner, educating the public by giving it a close-up look at ties between lobbyists and politicians. “If through Mr. Blagojevich’s book we learn how the system works from someone who is as critical of himself as the system that he used, and perhaps abused, then this is a cautionary tale worth telling,” the CEO writes. He adds: “I only ask that the public at large give him a fairer trial than the railroad ride he was given out of his role as governor.”

When Gordon Brown arrived in Washington D.C. this week, many speculated he was hitching his wagon to Barack Obama’s rising star, but Quentin Letts writes in Forbes that he was, in fact, hitching it to Ted Kennedy’s fading one as well. Of Britain’s decision to knight Kennedy, Letts write “Although Queen Elizabeth II will have been informed, it is most unlikely she instigated the idea. It has a strong flavor of political opportunism, if not desperation...The Kennedy knighthood gambit was an insurance policy. If the White House visit went off like a dud cannon (which it did), Sen. Ted's gong might help to retrieve some publicity and ensure applause, albeit of the dutiful variety.”

Karl Rove and other Bush-era figures finally reached a deal this week allowing them to testify under oath before Congress about their role in the U.S. Attorneys scandal, but that doesn't mean Rove has to like it. Deriding the event as a likely "show trial," Rove said that even though House Democrats subpoenaed other White House staffers as well, like White House counsel Harriet Miers, beating him up in Congress was the true prize in their investigation. "I understand they may be the hors d'oeuvres, but I'm the main course," Rove told Fox News. "Some Democrats would love to have me barbecued." Rove reiterated his assertion that he did nothing wrong in passing on complaints about several U.S. Attorneys who were later fired. Their resignations prompted a scandal over the politicization of the Justice Department that led to the resignation of then-Attorney General Alberto Gonzales as well as a variety of lower-ranking White House officials.

The only survivor of the overturned boat that left three football players lost at sea has recounted the details of his last moments with his friends. Shortly after the wreck, two of the NFL stars on the fishing trip apparently became delirious with exhaustion, took off their life vests and simply drifted out to sea, according to Nick Schuyler, who is recovering at a Tampa hospital. Schuyler spent many more hours sitting on the hull of the boat with his friend, William Bleakley. The pair openly talked of their demise. Eventually, Bleakley became sick with dehydration and hypothermia. Schuyler revived him using mouth to mouth, then Bleakley claimed to see a light in the distance, swam toward it, and was not seen again.

Sasha and Malia Obama don't have to wait for their new dog to arrive to have fun at their White House: their parents surprised them yesterday with a new swing set right near the Oval Office. The Chicago Tribune reported that the first daughters "squealed with delight when they saw the set and played on it for almost an hour" despite the chilly weather. The swing set is a "Rainbow Castle" design by South Dakota-based Rainbow Play Systems Inc. Though the set-up is not that extreme apparently, the paper reports "the cedar and redwood playground boasts four swings, a slide, a fort and a climbing wall. It also has a picnic table with brass plates etched with the names of all 44 presidents."

Is Rush Limbaugh the leader of the Republican Party? The Democratic Party certainly hopes so. To that end, the DNC has purchased a billboard in Limbaugh’s hometown of West Palm Beach, Florida, featuring a hand holding his trademark cigar, and is hosting a contest for the billboard’s caption. The winner gets a t-shirt!

Markets surged upwards yesterday on speculation that China might significantly increase stimulus spending in order to boost its economic growth this year, but Premier Wen Jiabao disappointed investors today by not announcing any increase in the original package. Nonetheless, he pledged that China would spend as necessary to get it through tough times, even if it meant taking on higher deficits than the country has been accustomed to in recent years, and set a goal of 8 percent growth this year as a target. "As long as we adopt the right policies and appropriate measures and implement them effectively, we will be able to achieve this target," Wen said.

The Dallas Cowboys have tired of outspoken and underachieving wide receiver Terrell Owens and cut him from the team. The 35-year-old receiver set numerous club records with the Cowboys, but last year formed an alliance with fellow wideout Roy Williams and the pair lobbied against teammates and their offensive coordinator in the midst of a run at the playoffs. It's hard to believe, but T.O.'s tenure with the Cowboys—which included an uneasy relationship with Bill Parcells, an accidental overdose, a tear filled post-playoff loss press conference, and the uprising against the coaching staff—is actually relatively tame when compared with his previous stints in Philadelphia and San Francisco.

Some unexpected fallout from the R. Allen Stanford Ponzi scheme: “One Ton, One Kilo,” an exhibition by Chris Burden at the Gagosian Gallery in Beverly Hills, has been postponed indefinitely as the artist looks for 220 pounds of gold bars—about $3.3 million worth—needed to assemble he piece. The original stash is tied up in the civil action against Stanford: Stanford Coins and Bullion, which sold Gagosian the gold, is frozen by court order. This would all be more unfortunate, we suppose, if the art exhibit didn’t sound so tacky in the first place.

More bad news by way of the Washington Post this morning, which asks if the collapse of globalization might be at hand. Singapore has long been a hub for migrant labor to help power its manufacturing industry, but exports dropped 35 percent in January and a rebound may be a long time coming, prompting thousands of foreign workers to leave for home. By the end of 2010, economists from Credit Suisse predict an exodus of 200,000 foreigners will leave Singapore in response to the declining economy. Economist Jeffrey Sachs said that a weakening economy and increasingly protectionist actions from hard-hit countries could turn back the clock on globalization not just in Singapore but around the world. "It happened in the 20th century in the wake of World War I and the Great Depression, and could happen again," Sachs said. "Nationalism is rising and our political systems are inward looking, the more so in times of crisis."

Even more damning evidence is surfacing against alleged abuser Chris Brown. Multiple law enforcement sources told TMZ.com that on the night of the reported attack, Rihanna told LAPD cops that Brown had a history of violence, and his attacks became "more violent" with time. Additional photos of the bruised singer, taken the day after the attack, are reportedly much worse than the one photo that has surfaced. The Los Angeles Country district attorney could charge Brown today with felony domestic battery.

Wacko Jacko is set to wow crowds once more. Michael Jackson is holding a press conference at the London O2 arena later today, where it's expected that the singer will announce a long-running set of summer shows. He could cash in major money for two months of flashy on-stage gyrations, reports The Telegraph. The singer has maintained a very low profile-the only question that remains is if fans are willing to overlook his 2005 acquittal of child molestation charges.

It's change you can see: after only 44 days on the job, Obama's hair is already flecked with gray, which appears to wax and wane depending on when his hair was last cut. The presidential barber, Zariff, denied the charges of bloggers who have suggested that Obama dyes his hair gray to appear more distinguished or black to appear younger. "I can tell you that his hair is 100 percent natural," Zariff said. "He wouldn't get it colored." Experts say that whitening hair can be a sign of stress common among presidents, which certainly would make sense in Obama's case. The president may seem as cool as a Bebop club in the middle of winter, but with two wars and a collapsed economy on his hands it's no wonder he's aging fast.

Horton Foote, famous playwright and chronicler of American life, died today at 92. Foote wrote scripts for To Kill a Mockingbird, and Tender Mercies, and plays such as The Young Man from Atlanta. He won a Pulitzer Prize and two Oscars. According to the New York Times, Foote was a "writer's writer" who depicted America's "wistful odyssey through the 20th century" by describing ordinary people with ordinary problems. Frank Rich once called Foote "one of America's living literary wonders," and said that his plays contained ""a subtlety that suggests a collaboration between Faulkner and Chekhov."

Here’s an exciting part of the Obama administration’s push for transparency: an online Hillary tracker! The State Department has rolled out an interactive map that shows the secretary of state’s whereabouts as she travels abroad—her current location, her next stop, and her previous trips. A quick look at the map shows that on her current mission, which lasts until March 7, Clinton has made stops in Egypt, Israel, and the Palestinian Territories; she’s now in Belgium; and she’s scheduled to drop by Switzerland and Turkey. Fun fact: She’s traveled 6,328 miles on this trip to date, and 57,944 in total in her new job.

Hours after undergoing open heart surgery, Barbara Bush is said to be resting comfortably in a Houston hospital. The former first lady and Bush family matriarch, 83, went under the knife at The Methodist Hospital to have her aortic valve replaced after experiencing shortness of breath last week, her spokesman said. “I expect her to recover fully and soon resume her normal activities,” her heart surgeon said after replacing the valve a biologic valve. Her husband, George H.W., is at her side in the intensive care unit; she’s expected to be in the hospital for another seven to 10 days. Bush also underwent surgery in November for a perforated ulcer.

Pharmaceutical companies took a major judicial hit on Wednesday when the Supreme Court ruled 6-3 that injured users of their products could sue them for damages in state courts. The lawsuit pitted a Vermont man who lost an arm after being injected with an anti-nausea drug against the drug's manufacturer, Wyeth. The company tried to argue that because its drug had been approved beforehand by the federal Food and Drug Administration that it shouldn't be liable for any damages, a sweeping claim that would have protected pharmaceutical manufacturers from a host of future lawsuits. The manufacturers of Vioxx, Merck, paid out $4.85 billion in a settlement in 2007 over side effects from its painkiller, for example, and a spokesperson for the company said they were disappointed by Wednesday's decision, which might have shielded them from similar suits.

How big is the Obama administration’s housing plan? It’ll cost $75 billion over the next several years, and it’s intended to help 9 million homeowners avoid foreclosure. That doesn’t mean it’s a perfect solution, of course. “This is not going to save every person’s home,” acknowledges White House press secretary Robert Gibbs. The program calls for government-controlled mortgage-finance giants Fannie Mae and Freddie Mac to refinance mortgages at today’s low market rates, but is limited to borrowers who owe up to 5 percent more than their home’s current value—leaving out severely “underwater” borrowers. Also excluded: mortgages of more than $729,750 for a single-family home, mortgages obtained after Jan. 1, 2009, investors, and people with mortgages on second or third homes. “Some people will not qualify,” says an administration official. “And some people who do qualify will not succeed.”

Wal-Mart continues to be the go-to store for recession shoppers. As other retailers reported mixed numbers, Wal-Mart announced its same-store sales in February were up 5.1 percent, more than double analysts' predictions. "We believe falling gas prices significantly boosted household disposable income in February and therefore allowed for both more trips and more spending towards discretionary categories," a company executive explained. Other stores weren't so lucky: Target's same-store sales fell 4.1 percent and American Eagle dipped 7 percent.

Yankee fans will have to wait until the end of spring to see Alex Rodriguez return to the field, ESPNdeportes.com reports. According to his brother, A-Rod will be missing spring training and opening day because of surgery needed to remove a cyst on his hip. "It's a big blow for the whole family. Alex is destroyed," Joe Rodriguez said. "We were all very excited to see him play with the Dominican Republic in the World Baseball Classic. But the most important thing is to have a successful surgery so that Alex may continue his career." ESPN reports the surgery is set for Monday in Colorado. "If true, this is far more damaging to the Yankees than any steroid revelations... There's no replacement on the roster for A-Rod," NBC New York adds.

Check the shelves of Family Dollar: The share price of Citigroup dropped to 99 cents today at 11:22 a.m., marking an 85 percent decline this year and a market value for the company of $5.5 billion. In 2006, the share price was $55.70 and the company’s market value was $277.2 billion. The New York Stock Exchange, earlier this year, suspended a rule that delisted companies trading below $1 a share. By the end of the day, the bank’s share price had rallied slightly, to close at $1.02.

The markets are continuing their wild ride. The Dow, up 149 points yesterday, skidded down more than 300 points this afternoon. The S&P 500 was off 3 percent to hit its lowest level since 1996 and JPMorgan's stock lost 10 percent of its value after news that Moody's may cut the bank's credit rating. As has been the norm, other bank stocks like Bank of America and Wells Fargo were down more than 8 percent. Another sign of the times: Citigroup's stock broke below the $1 barrier. "You have to have stability in the banks for a sustainable rally—we're not there yet," said one trader.