And just like that, one of New York’s most tempestuous electoral careers came to an end. Former NYC Mayor Rudy Giuliani is expected to make an announcement Tuesday saying he will not run for the U.S. Senate, the New York Daily News reports, and that he will endorse former Rep. Rick Lazio for governor, despite surveys indicating he was the clear favorite to win primaries for either office. "Next year should be an interesting cycle for Republicans, and he sees it as an opportunity to engage in targeted races across the country," says a source close to Giuliani. The former mayor plans to stay in the private sector and start helping other members of the GOP, but his move paved way for freshman Sen. Kirsten Gillibrand—appointed earlier this year by Gov. David Patterson—to take the lead in the Senate race because she will face no big-name Republicans.

Is RNC Chairman Michael Steele putting personal profit ahead of his party? Republicans who have previously held his post are speaking out against Steele’s continued side career as a for-pay speaker, earning between $8,000 and $20,000 (plus first-class travel and lodging) for appearances. Steele already earns $223,500 per year for his elected post, and Frank J. Fahrenkopf—RNC chairman under President Reagan—protests, "The job of a national chairman is to give speeches. That's what the national party pays him for." Jim Nicholson, who held the post from 1997-2000, said the job "demands so much of your time that you can work 24/7 and not get everything done, so taking time out to speak for the benefit of one's own bank account is not appropriate." Steele's office deflected the criticism, saying that Steele is following appropriate rules and "has been giving inspirational speeches based on his personal story long before he was elected RNC chairman."

President Obama said that the Senate's progress toward passing a health-care bill is “a big victory for the American people.” He disputed Republican criticism that the bill would increase the federal deficit, saying that the nonpartisan Congressional Budget Office had found it would reduce the deficit by $132 billion over 10 years. The Senate will hold several more procedural votes this week, with a final vote Christmas Eve. If it passes, as expected, it will be merged with the House version of the bill, voted on again, and then sent to the president to sign, which Obama hopes will happen before his State of the Union address.

Minnesota Governor Tim Pawlenty said he thinks Sarah Palin is “a political rock star,” even if she stole his thunder in ’08, when he was widely considered a shoo-in for John McCain’s VP nomination. In a new interview with Newsweek, Pawlenty opens up about the woman who eclipsed him—and who could steal his thunder for a 2012 presidential run, as well. “You guys are obsessed with Palin,” he told his interviewer, adding that he realized before the media did that he wouldn’t get McCain’s vice-presidential nod—and before McCain deigned to inform him. “[I realized it] when they didn’t take me out of the slot to speak in Denver outside the Democratic convention only days before ours was starting. I didn’t just fall off the rutabaga cart, so I figured it out.” But with the bulk of the GOP’s 2012 energy focused on scene-stealing Palin and the deep-pocketed Mitt Romney, Pawlenty admits, “There is a legitimate question about whether somebody who is basically unknown, isn't independently wealthy, isn’t famous, would have a chance.”

Brittany Murphy's autopsy is complete, but the cause of death remains "deferred." The L.A. County Coroner said there were no signs of foul play, but will wait until the toxicology, histopathy, and neutropathology reports are complete to identify what actually killed the starlet, or if she truly died of natural causes (despite many sources close to Murphy thinking otherwise). A source did reveal to TMZ however, that her body appeared "normal" and that she was not overly thin. Husband Simon Monjack says his "world was destroyed" following the news of his wife's death, but he appreciates the kind words from fellow celebrities, like Murphy's Just Married co-star and ex-boyfriend Ashton Kutcher. TMZ previously reported that authorities found "a lot" of prescriptions in the house, and that Murphy had been taking prescription meds for the flu-like symptoms she complained of for several days before her death. Murphy's mother reportedly told paramedics that her daughter had Type-2 diabetes, a condition that could have triggered a heart attack in conjunction with prescription meds.

Mexico City became the first Latin American city to legalize same-sex marriage Monday when the capital's local assembly passed a gay marriage bill 39-20, prompting an ebullient public celebration in the Roman Catholic nation’s capital. Religiosity remains, however, a sticking point with the bill’s impassioned opponents: College of Catholic Attorneys President Armando Martinez says the new law has "given Mexicans the most bitter Christmas," and conservatives have already vowed to challenge gay marriage law in the courts. The bill will change the definition of marriage as well as allowing same-sex couples to adopt and enjoy the same legal rights as heterosexual couples. Only seven countries allow gay marriage: Belgium, Canada, Norway, the Netherlands, Spain, South Africa, and Sweden.

Builders in Nazareth began digging for what they thought was room for a new Christian center, but archaeologists revealed that what they found was the remains of a home that may have belonged to Jesus' neighbors. The home was one of 50 belonging to Jewish families who lived in the hamlet, and archaeologist Yardena Alexandre, excavations director at the Israel Antiquities Authority, said Jesus may have played around the house with his cousins and friends. Archaeologists identified remains of a courtyard, a hideout from Roman soldiers, and a rooftop water system after the builders dug up a former convent's courtyard, merely yards from the Basilica of the Annunciation. "This may well have been a place that Jesus and his contemporaries were familiar with," said Alexandre.

Maybe Bernard Madoff can teach him the prison-yard ropes? Anthony D. Marshall was sentenced to one to three years in prison Monday for defrauding his mother, the late Brooke Astor. The sentence is based on the most serious of the 14 counts against Marshall: first-degree larceny for giving himself a $1 million raise for managing his mother’s finances. The 85-year-old Marshall must report to prison January 19.

Good news for travelers: Starting in 120 days, the maximum amount of time that an airline can legally keep you stranded on the tarmac will be three hours. Transportation Secretary Ray LaHood announced the change on Monday. Under the new rule, airlines will also have to provide food and water within two hours of a plane being delayed on the tarmac, and lavatories must remain operable the whole time.

Will the wedding be in a barn or an ice rink? Carrie Underwood is engaged to hockey beau Mike Fisher, the country-music star's rep confirmed today. The wedding date hasn't been set, but "the couple couldn't be happier.” Underwood and her hubby-to-be worked hard to keep their relationship under the radar, but both were excited to announce their engagement. The details are still private, but Fisher reportedly proposed at his home Sunday afternoon.

Republican National Committee Chairman Michael Steele said Democrats are “flipping a bird to the American people” by pushing the health-care bill through the Senate. “This is a bad bill. It's bad law. It's bad for America. It is bad certainly for individuals and enough is enough. I am tired of the Congress thumbing their nose and flipping a bird to the American people," Steele told reporters on a conference call Monday. He added that he is “honored” to work with "grassroots activists, tea partiers and others who are fighting the good fight."

Avatar may not be as successful as Titanic, but revised calculations show James Cameron's film made an opening gross of $77 million, more than the $73 million  originally announced. Domestically, this amount places Avatar narrowly behind  record-holder I Am Legend, which opened at $77.2 million, and the film also had a higher-than-expected take overseas, grossing $165.5 million in its foreign debut. Although the blizzard that hit the East Coast this weekend may have hampered turnout, the tiny 3 percent drop from Saturday to Sunday, considered an "unheard of feat," shows the sci-fi flick is largely benefiting from word-of-mouth.

Hope Roman Polanski is getting comfy in his Swiss chalet: A California state appellate court denied the director’s request to dismiss his three-decade-old child sex case Monday. Polanski wanted the case to be thrown out due to alleged prosecutorial and judicial misconduct. A year ago, a panel of three judges unanimously ruled that Polanski must surrender to U.S. authorities before moving forward on the claims of misconduct. But the acclaimed director’s lawyers argued that the “fugitive disentitlement doctrine” did not apply to Polanski due to the aforementioned misconduct claims. Though the justices concluded that the trial court did not abuse the use of the doctrine in question and refused to dismiss the action against Polanski, they made clear that the allegations of misconduct were “extremely serious,” urging those involved to investigate and respond accordingly.

The infamous “Arbeit Macht Frei” sign that was stolen Friday from former death camp Auschwitz has been located in northern Poland, authorities say. Five men between the ages 25 and 39 have been detained for questioning, and the sign has reportedly been chopped up into three pieces, one for each word. Polish police say that the alleged thieves are not neo-Nazis.

Who will be the first to catch a Tiger? The big shows are apparently trying to book the golf star for his first interview since news broke of his affairs. What exactly does that involve? "They're figuring out who might be some intern's cousin's neighbor who caddies at the golf resort that Tiger Woods played at three years ago," says one former producer. The Today show may have damaged its chances by interviewing two women who say they slept with Tiger. If he goes on Oprah Winfrey, it’ll be a sign he’s looking to improve his image with women; if he goes to ESPN or HBO, he’ll be going for his hardcore sports fans.

Last week, The Times of London revealed a secret two-page Iranian document suggesting that Iran has been secretly working on a neutron initiator--the part of a nuclear bomb that triggers the explosion. Iranian President Mahmoud Ahmadinejad made his first public comment on the document during an interview set to air Monday on ABC World News. When confronted with a copy of the document by Diane Sawyer, Ahmadinejad refused to look at it, saying, "No, I don't want to see this kind of document. These are some fabricated papers issued by the American government." Senior White House adviser David Axelrod later called Ahmadinejad's accusation " nonsense." Ahmadinejad also dismissed Sawyer's questions about whether Iran is testing a nuclear initiator, and said, "I think that some of the claims about our nuclear issues have turned into a repetitive and tasteless joke."

In a well-received speech on leadership at West Point, General Electric CEO Jeff Immelt said that "the richest people made the most mistakes with the least accountability," a line that could actually apply to himself. Investors feel irked that under Immelt's leadership, the company has missed earnings, lost its AAA credit rating, acquired a medical company in a troubled deal, and gotten stiffed by Comcast in the NBC Universal sale. As if that isn't enough, Immelt sold Rockefeller Center space to save money, but now has to rent space to stash employees. He also relocated NBC-U's digital business to New Jersey for a tax credit, a move that drove away staff. On the upside, GE revenue has grown an average of 8 percent per year under Immelt, although stock value has dropped 61 percent. The final straw may be the federal fraud lawsuit against him for allegedly rigging GE's stock price and cooking the books to make profits appear steady back to his first year as chief in 2002. As an unnamed GE bondholder put it, "the GE board is starting to ask themselves questions about Immelt." Immelt recently made Forbes' overpaid bosses list. His average salary is $14.4 million per year.

CBS will debut the reality show Undercover Boss right after the Super Bowl, giving it one of the most coveted time slots in television. The series will follow corporate executives going undercover in the lowest-rung jobs in their companies. The premiere will feature the head of Waste Management cleaning portable toilets and sifting through garbage at a landfill. The Super Bowl typically gets the biggest TV audience of the year.

Taylor Swift has been named the Associated Press’ entertainer of the year—and there’s nothing Kanye West can do to take it away. For those who’ve seen Swift holding armfuls of statuettes at ceremonies or taking on Saturday Night Live hosting duties, her newest honor is not particularly surprising. But the 20-year-old artist herself was a bit shocked. “This was so unexpected,” Swift told the AP upon learning of the most recent title, which Tina Fey won last year. “I could not be more grateful.” Swift already took home awards for album of the year at the Country Music Association Awards and artist of the year at the American Music Awards in 2009, among others. In 2010, Swift plans to release her third album, which she started writing immediately after the release of Fearless, the album that’s brought her much success. “I love to plan 20 steps ahead of myself,” Swift told the AP. “It’s a really fun competition game that I play with myself, trying to top what I’ve done last.”

Try not to weep over your portfolio this holiday season: The 2000s were, according to The Wall Street Journal, the worst decade ever for stocks. The 0.5 percent that stocks on the New York Stock Exchange have lost on average per year since 1999 is the most in the nearly 200 years of recorded stock-market history—more even than the 1930s. The 1990s were the best decade ever, with a 17.6 percent average annual gain.

Twitter Inc., will finally have a profitable year, Bloomberg reports. In October, Twitter agreed to allow Google and Microsoft's Bing to make its micro messages searchable for a reported $15 million and $10 million respectively. Until earlier this year, making money wasn't even a focus for Twitter, which poured almost all of its time into product improvement. Twitter, which started in 2006, is also planning to roll out an advertising program early next year, and will also begin charging for commercial accounts, which will allow businesses to analyze tweet traffic.

Don’t laugh, he’ll probably be president one day: Billy Bush, the cousin of George W. Bush, apparently is so difficult to work with that he drove Access Hollywood co-anchor Nancy O’Dell from the show. "The atmosphere at Access Hollywood is like walking on a landmine because of Billy," an insider dishes. "He throws tantrums and tirades and oftentimes for no apparent reason. It was one of several things that had Nancy at her wit's end after 13 years." According to the source, Bush “really wants to be the next Ryan Seacrest.”

Reality star Tila "Tequila" Ngyuen announced via Twitter on Sunday that she is "about to become a SURROGATE MOTHER for my brother and his Wife!!...That is my xmas present to them. I'm pregnant." The 27-year-old previously grabbed headlines after announcing her supposed engagement to Casey Johnson on Dec. 9.

Businesses are hiring more and more temporary workers, suggesting that they might soon take the next step and hire permanent employees if they believe the economy will keep improving. Temp hiring has been on the rise for four months, whereas in the period after the last two recessions, in the early 1990s and in 2001, employers added temps for only two or three months before bringing on more permanent workers. Unemployment fell in 36 states in November, in part because of the growing ranks of temp workers, who are easier for cautious employers to shed if business goes bad.

Federal Reserve Chairman Ben Bernanke is on track to be appointed to a second term by the U.S. Senate, but does he deserve it? The Washington Post takes a damning look at how the Fed’s approach to regulation under Bernanke left banks exposed to the financial crisis. “[R]ather than looking for warning signs, the Fed had joined—and at times defined—the mainstream consensus among policymakers that financial innovations had made banking safer,” The Post writes. In May 2007, Bernanke said "Importantly, we see no serious broad spillover to banks or thrift institutions from the problems in the subprime market. The troubled lenders, for the most part, have not been institutions with federally insured deposits.” His statement was flat-out wrong: Five of the 10 largest subprime lenders during the previous year were banks regulated by the Federal Reserve.

Senate Democrats should be able to approve health-care reform before Christmas after the legislation cleared a key hurdle along party lines early Monday morning. The 1 a.m. procedural vote went 60-40, with potential last-minute spoilers Joe Lieberman and Ben Nelson both voting aye. (Nelson secured $100 million in Medicare funding for his state of Nebraska to sweeten the deal.) The bill must pass two more procedural votes, the first of which is scheduled for Tuesday morning, and the final vote is tentatively scheduled for 7 p.m. on Christmas Eve.

New trouble for Mahmoud Ahmadinejad: The death on Sunday of Grand Ayatollah Hossein Ali Montazeri, one of the founding members of the Iranian republic, caused the Iranian regime to tighten security due to fears that mourners could quickly turn into protestors. In Tehran, mourners chanted, “This is the month of blood. The regime is coming down.” Fueling the flames was military prosecutors’ accusation that prison guards tortured at least three students to death in July. Top leaders have denied torture for months. The Wall Street Journal calls the reversal “one of the biggest blows to Tehran's credibility since government protests first erupted six months ago.”

Against her husband’s wishes, the Los Angeles County Coroner is began an autopsy on Brittany Murphy on Monday, according to TMZ. The 32-year-old actress had flu-like symptoms, including vomiting, before her death early Sunday morning. TMZ reports that authorities found "a lot" of prescriptions in the house, and that Murphy had been taking prescription meds for the flu-like symptoms she complained of for several days before her death. Murphy's mother reportedly told paramedics that her daughter had type-2 diabetes, a condition that could have triggered a heart attack in conjunction with prescription meds.